Miss. Admin. Code Title 13 — Gaming

MISSISSIPPI GAMING COMMISSION MISSISSIPPI GAMING COMMISSION

Part 1 Part 1: Organization and Administration

Chapter 1 GENERAL PROVISIONS Rule 1.1 Appointment Of Committees. The Commission may at its discretion appoint committees to study and report to the Executive Director or the Commission any matter appropriate to the Commission's administration of the Act or these regulations. (Adopted: 09/25/1991; Amended: 01/22/1998.)

13 Miss. Admin. Code Pt. 1, R. 1.2 Definitions

The terms defined in the Mississippi Gaming Control Act have the same meaning in these regulations as they have in that Act, unless the context otherwise requires. As used in these regulations, the following terms have the following definitions, unless the context requires otherwise. (a) "Act" means the Mississippi Gaming Control Act. (b) "Operating licensee" means the person or entity licensed to actually operate a particular gaming establishment. (c) "Executive Director" includes any duly authorized agent of the Executive Director. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-5 (Rev. 2004).

Chapter 2 PUBLIC AND CONFIDENTIAL RECORDS

13 Miss. Admin. Code Pt. 1, R. 2.1 Definitions

As used in this regulation (a) "Agency work product" means any paper, document, or other record prepared within the Commission, in performance of statutory authority, which contains opinions or recommendations submitted for consideration in the performance of decisional or policy making functions or information supplied by any governmental agency or an informer or on the assurance that the information will be held in confidence. "Agency work product" includes, but is not limited to, the following documents prepared by members, agents, attorneys, and employees of the Commission: 1. Investigative summaries concerning applicants for licensure, finding of suitability, registration, or other affirmative Commission approval; 2. Investigatory files compiled for law enforcement purposes; 3. Investigative reports; 4. Work papers and notes of members, agents, attorneys, and employees of the Commission; 5. Audit reports, including work papers, whether for special or regular audits; 6. Orders to show cause and related documents; and 7. Reports regarding loans to licensees, submitted to the Commission pursuant to Regulation II-I.

(b) "Applicant records" means those records which contain information and data pertaining to an applicant's criminal record, antecedents and background, and the applicant's financial records, furnished to or obtained by the Commission from any source incident to an investigation for licensure, finding of suitability, registration, or other affirmative approval. (c) "Certification fees" means the fees charged by Commission personnel incident to the certification of documents. (d) "Confidential record" means any paper, document or other record or data reduced to a record which is not open to public inspection. (e) "Duplication fees" mean a charge for duplicating documents for release to the requesting person. (f) "Financial records" mean those records which relate to the finances, earnings, or revenue of an applicant, licensee, registered company, or person to whom any approval has been granted. (g) “Investigation” means any investigation conducted by the Commission or its staff pursuant to the Mississippi Gaming Control Act and the regulations promulgated thereunder, including, but not limited to, an investigation pursuant to an application for a gaming license, continuation of a gaming license, finding of suitability, registration, approval, other license, or periodic compliance investigation. (Adopted: 11/18/1999.) (h) "Law enforcement agency" means any governmental agency involved in the investigation of criminal activity or the arrest, detention, or prosecution of persons suspected of engaging in criminal activity. (i) "Public record" means any paper, document, or other record required to be kept or necessary to be kept, in the discharge of a duty imposed by law, not declared confidential by statute or regulation. Public records are open to public inspection and include, but are not limited to, the following: 1. Minutes of Commission regular and special public meetings, and all public hearings conducted by the Commission, or its agents, including exhibits entered in the public record as public documents at those meetings or hearings; 2. A list of all applications made under the Act and the record of all formal actions taken with respect to such applications by the Executive Director or the Commission; 3. Agendas of Commission meetings; 4. With the exception of documents filed under seal pursuant to section 3, legal documents filed with the Commission concerning contested cases brought by or against the Executive Director, including, without limitation, disciplinary actions, proceedings concerning the possible inclusion of persons on the list of excluded persons, petitions for redetermination, and requests for refund, except that the summary of evidence filed with a disciplinary complaint and the evidence to which it refers is confidential until such documents are entered in the public record as public documents at a commission hearing on the complaint; 5. Commission files on the enactment, amendment, or repeal of regulations; 6. The Act and the regulations promulgated thereunder; 7. Licenses; 8. The following public documents submitted to the Commission and the United States Securities and Exchange Commission by publicly traded corporations: i. Annual and quarterly reports to the United States Securities and Exchange Commission;

ii. Notices of annual meetings and proxy material provided to the shareholders; and iii.Registration statements declared effective by the United States Securities and Exchange Commission; and 9. Reports and correspondence of the Commission specifically prepared for public distribution. (Adopted: 09/25/1991; Amended: 11/18/1999.)

History

• Source: Miss. Code Ann. § 75-76-5 (Rev. 2004);

13 Miss. Admin. Code Pt. 1, R. 2.2 Confidential Records

Confidential records may only be released as prescribed in this regulation. Confidential records include, but are not limited to:

(a) Agency work product; (b) Applicant records; (c) Financial records; (d) Transcripts of investigative and other closed hearings including, but not limited to, work permit and personnel hearings; (e) Preliminary filings with the Commission by applicants, licensees, or registered publicly traded corporations including, but not limited to: 1. Preliminary documents filed by publicly traded corporations with the United States Securities and Exchange Commission; and 2. Reorganization and financing proposals; (f) Work permit records, lists of work permit holders, and records of persons engaged in the gaming industry acquired or compiled by the Commission; (g) Records or data provided to members, agents, and employees of the Commission on the assurance that such information will be held in confidence and treated as confidential information; (h) Records or data provided to members, agents, or employees of the Commission with a request for confidentiality, which request has been granted by the Executive Director or the Commission Chairman; (i) Any records required to be submitted to the Commission which contain information that is privileged, unless the holder of the privilege has waived the privilege; (j) Licensees' responses to orders to show cause; (k) Documents that are confidential under the Act, these regulations, or other law, proffered or introduced as evidence in contested matters, provided such documents are received in evidence as confidential exhibits; (l) Those documents or portions of documents filed in contested matters under seal pursuant to section 3 of this regulation; (m) Internal control systems submitted by applicants or licensees; (n) Correspondence containing information deemed confidential by applicable law or regulation; and (o) Any records which contain any information relating to confidential investigations or confidential informants of the Commission. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-87 (Rev. 2004).

13 Miss. Admin. Code Pt. 1, R. 2.3 Sealing Of Documents

(a) The Commission Chairman or the hearing examiner may allow any person interested in a contested case brought before the Commission by or against the Executive Director to file a document or portions of a document with the Commission under seal if: 1. The document or portions of the document contain information that is confidential pursuant to the Act or these regulations; 2. The person makes a request in writing or on the record of a public hearing to allow the filing of the document or portions of the document under seal, setting forth the reasons that such filing under seal should be permitted; 3. The person requesting the filing of the document or portions of the document under seal has, to the extent practicable, segregated the portions of the document containing confidential information from the remainder of the document so that no more of the document than is necessary is filed under seal; and 4. The Commission Chairman or the hearing examiner finds that the public interest in maintaining the confidentiality of the information outweighs the public interest in making the information public. (b) The Commission Chairman or the hearing examiner may not allow the filing of the following documents under seal: 1. Complaints for disciplinary action; 2. Answers to complaints for disciplinary action; 3. Any Commission order. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-111

13 Miss. Admin. Code Pt. 1, R. 2.4 Access To Public Records

A request for access to public records must be made to a custodian of records of the Commission. The Executive Director shall designate the custodians of the Commission's records. The custodians of records shall require payment of any duplication, or certification fees prior to release of copies of the records. As soon as practicable after payment of the required fees, the custodians of records shall provide copies of all public records requested. The Executive Director may waive payment of the required fees. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-19

13 Miss. Admin. Code Pt. 1, R. 2.5 Access To Confidential Records

(a) Except as otherwise provided in this section, the Commission may only release confidential records if ordered to do so by a court of competent jurisdiction following compliance with Miss. Code Ann. §75-76-153. (b) All requests for access to confidential records must be made in writing to the Executive Director. (c) Pursuant to a written request, as described in subsection (b), from any duly authorized agent of any agency of the United States Government, any state, or any political subdivision of this state, the Commission may release confidential records to the agency requesting them, except as

otherwise provided in subsection (d), upon a finding by the Executive Director that the release is consistent with the policy of this state as reflected in the Act. (d) Notwithstanding any other section of this regulation, the Commission may only release work permit records: 1. Pursuant to subsection (c), if the agency requesting the records is a law enforcement agency; or 2. Pursuant to subsection (e). (e) Pursuant to a written request, as described in subsection (b), the Executive Director or the Commission may release confidential records to the person requesting them upon an express written finding by the Executive Director or the Commission that the release of the confidential record(s) is necessary for the effective administration of the Act. The release of confidential records is necessary for the effective administration of the Act when, in the discretion of the Executive Director or the Commission: 1. It is the most effective means of furthering or accomplishing any objective authorized by the Act or these regulations; 2. It is not in conflict with the policy underlying the Act; and 3. There are no practical, effective alternative means of furthering or accomplishing the objective. (f) Notwithstanding anything to the contrary contained in this regulation, the Executive Director may enter into agreements with other governmental agencies for the exchange or release of confidential information: 1. Provided that the Executive Director determines that the release of information contemplated by the agreement will be consistent with the policy of this state as reflected in the Act, pursuant to subsection (c) of this section; or 2. If work permit records will be released to any governmental agency other than a law enforcement agency pursuant to the agreement, provided that the Executive Director makes an express written finding that the release of work permit records contemplated by the agreement are necessary for the effective administration of the Act, pursuant to subsection (e) of this section. (g) Once the Executive Director enters into an agreement pursuant to subsection (f) of this section, the agreement constitutes compliance with subsections (c), (d), and (e) of this section, and the Executive Director is not required to make separate findings each time that confidential information is released pursuant to the agreement. (h) The Executive Director or the Commission may require any party receiving confidential information to agree in writing or on the record of any hearing to any limitations that the Executive Director or the Commission deems necessary prior to giving that party the confidential information. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-133

13 Miss. Admin. Code Pt. 1, R. 2.6 Unauthorized Procurement Of Records Prohibited

An applicant, licensee, registered company, or enrolled person shall not, directly or indirectly, procure or attempt to procure from the Commission information or records that are not made available by proper authority. Any violation of this regulation constitutes reasonable cause for disciplinary action or to deny any application. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-19

Chapter 3 ENROLLMENT OF ATTORNEYS, ACCOUNTANTS, AND AGENTS. Rule 3.1 Eligibility To Practice. No person shall be eligible to practice before the Commission unless such person is enrolled in accordance with these regulations, except that any individual may appear, without enrollment, on his own behalf or on behalf of a member of his immediate family, if such appearance is without compensation; and a member of a partnership, an officer of a corporation, or an authorized regular employee of an individual, partnership, corporation, or other business entity may likewise appear without enrollment in any matter relating to such individual or business entity. (Adopted: 09/25/1991.)

13 Miss. Admin. Code Pt. 1, R. 3.2 Scope Of Practice

Practice before the Commission shall be deemed to include all matters relating to the presentation of a client's matter to the Commission, the Executive Director, or a hearing examiner, including the preparation and filing of applications, reports, systems of internal control, financial statements, or other documents submitted to the Commission on behalf of such client. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 1, R. 3.3 Qualifications For Enrollment

The following persons may be admitted to practice before the Commission:

(a) Attorneys at law admitted to practice before the Supreme Court of the State of Mississippi and who are lawfully engaged in the active practice of their profession. (b) Certified public accountants and public accountants qualified to practice under Mississippi law and who are lawfully engaged in active practice as such. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 1, R. 3.4 Procedures For Enrollment

An attorney or accountant meeting the qualifications described in section 3 shall be deemed automatically enrolled at the time the attorney or accountant first appears for or performs any act of representation on behalf of a client in any matter before the Commission. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 1, R. 3.5 Rule 3.5

Enrollment For A Particular Matter (a) The following persons may, upon motion of an enrolled person, be admitted to practice before the Commission for the purposes of a particular case or matter: 1. Attorneys at law who have been admitted to practice before the courts of any state or territory or the District of Columbia, and who are in good standing with the court by which they are licensed. 2. Certified public accountants or public accountants who have duly qualified to practice as such in their own names, under the laws and regulations of any state or

territory or the District of Columbia, and who are in good standing with the entity by which they are licensed. (b) No person enrolled for a particular matter may practice before the Commission except in association with the enrolled person who sponsored his enrollment. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 1, R. 3.6 Suspension And Revocation Of Enrollment

(a) A person's enrollment to practice before the Commission shall be suspended automatically without a hearing if his professional license is suspended or revoked. (b) Any person enrolled to practice before the Commission may have his enrollment to practice suspended or revoked if, after a hearing, the Commission finds that: 1. The person made a materially false or misleading statement with regard to his application for enrollment; 2. The person willfully failed to exercise diligence in the preparation or presentation of any application, report, or other document filed with the Commission, or knowingly misrepresented any material fact to the Commission; 3. The person willfully violated or aided and abetted in the violation of any provision of the Act or these regulations; 4. The person does not possess the requisite qualifications or expertise to represent others before the Commission, lacks character or integrity, or has engaged in unethical or improper conduct. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 1, R. 3.7 Rule 3.7

Reinstatement (a) Any agent whose enrollment is suspended under section 6(a) shall be deemed automatically reinstated to practice before the Commission at the time he is reinstated to practice law or accounting by the applicable licensing authority. (b) Any agent whose enrollment is suspended or revoked under section 6(b) may be reinstated by the Commission, upon application, for good cause shown. An applicant for reinstatement shall be afforded an opportunity for a hearing before the Commission on the application, and shall pay all reasonable costs of the proceeding. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-29

13 Miss. Admin. Code Pt. 1, R. 3.8 Proof Of Authority

The Commission may require all persons seeking to appear before it to disclose the identity of those they represent and to present proof that they are authorized to act on their behalf. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 1, R. 3.9 Effect Of Representation

(a) Any person represented by an attorney, accountant, agent, or other person before the Commission shall be bound by the acts or omissions of such representative to the same extent as if he had acted or failed to act personally. (b) In any appearance by an attorney, accountant, agent, or other representative at any hearing or meeting of the Commission, the person represented shall be deemed to have waived all privileges with respect to any information in the possession of such attorney, accountant, agent, or representative, or any testimony by him, except for privileges afforded by the constitution of this state or the United States, where applicable. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 1, R. 3.10 Obligations Of Truthfulness And Diligence

(a) Enrolled persons shall not be intentionally untruthful to the Commission, nor withhold from the Commission any information which the Commission is entitled to receive, nor interfere with any lawful effort by the Commission to obtain such information. (b) Enrolled persons shall exercise due diligence in preparing or assisting in the preparation of documents for submission to the Commission. (c) Enrolled persons have a continuing responsibility on behalf of their clients to monitor the accuracy and completeness of information submitted to the Commission in any matter pertaining to their clients. Whenever an enrolled person becomes aware that information furnished to the Commission is no longer accurate and complete in any material respect, the enrolled person shall promptly furnish the Commission with appropriate supplemental and corrected information. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 1, R. 3.11 Knowledge Of Client's Omission

An enrolled person who knows that a client has not complied with the Act or the regulations of the Commission, or that a client has made a material error in or a material omission from any application, report, or other document submitted to the Commission, shall advise his client promptly of the fact of such noncompliance, error, or omission. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 1, R. 3.12 Certification Of Documents

Every application, report, affidavit, written argument, brief, statement of fact, or other document prepared or filed on behalf of a client represented by an enrolled person, must be signed by the enrolled person, and the signature shall be deemed to constitute a certification that the document was prepared in conformity with the requirements of the Act and regulations. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 4 EMPLOYMENT OF CERTAIN PUBLIC SERVANTS Rule 4.1 Prior approval required for hiring of public servant. No licensee or applicant for a license, without prior approval of the Mississippi Gaming Commission, shall hire any public servant of the government of the State of Mississippi or its political subdivisions, whose

13 Miss. Admin. Code Pt. 1, R. 4.2 Grounds for Denial of Approval

Approval may be denied in the following instances: (a) Employment deemed to be in violation of the ethics laws of the State of Mississippi; (b) Public servant has been instrumental in licensing or other agency approval of licensee or applicant; (c) Employment poses a threat to the public interest of the State of Mississippi or to the effective regulation and control of gaming; (d) Employment creates or enhances the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto; or (e) Any other cause deemed reasonable by the Commission. (Adopted: 06/28/1993.)

History

• Source: Miss. Code Ann. § 75-76-21

13 Miss. Admin. Code Pt. 1, R. 4.3 Future Employment Consideration

The Mississippi Gaming Commission will make a determination concerning future employment within thirty (30) days after written notice is served on the Executive Director and each commissioner. Failure to make a determination within the time allotted will constitute approval. Such requests will be treated as confidential. (Adopted: 06/28/1993.)

History

• Source: Miss. Code Ann. §§ 75-76-21; 75-76-61

13 Miss. Admin. Code Pt. 1, R. 4.4 Future Employment Grievance

Any public servant, licensee, or applicant aggrieved by a decision of the Mississippi Gaming Commission, regarding future employment, may request a hearing utilizing the procedural rules applicable to denial of a work permit. (Adopted: 06/28/1993.)

History

• Source: Miss. Code Ann. §§ 75-76-21; 75-76-61

Part 2 Part 2: Licensing

Chapter 1 APPLICATIONS

13 Miss. Admin. Code Pt. 2, R. 1.1 Procedures

(a) In General. It is the declared policy of the State of Mississippi that all establishments where gambling games are conducted or operated must be licensed and controlled so as to better protect the public health, safety, morals, good order and welfare of its inhabitants. Any license, registration, finding of suitability, or approval by the Commission shall be deemed to be a revocable privilege and no person holding such a license, registration, finding of suitability, or approval is deemed to have acquired any vested rights therein. (b) An application for a state gaming license or any other affirmative Commission action is seeking the granting of a privilege, and the burden of proving his qualification to receive any license, registration, finding of suitability or approval, is at all times on the applicant. The applicant must document compliance with all applicable federal, state and local rules, regulations and permit requirements. An applicant must accept any risk of adverse publicity, embarrassment, criticism, or other action, or financial loss which may result from action with respect to an application and expressly waive any claim for damages as a result thereof. (c) An application for a license, finding of suitability, or registration, besides any other factor attaching to such an application by virtue of the Act and these regulations, shall constitute a request to the Executive Director for a recommendation and to the Commission for a decision upon the applicant's general suitability, character, integrity, and ability to participate or engage in, or be associated with, the gaming industry in the manner or position sought by the application, or the manner or position generally similar thereto; and, by filing an application with the Executive Director, the applicant specifically consents to the making of such a recommendation by the Executive Director and such a decision by the Commission at their election when the application, after filing, becomes moot for any reason other than death. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-63

13 Miss. Admin. Code Pt. 2, R. 1.2 Other Commission Considerations For Licensing

(a) In General. This chapter sets forth some criteria which the Commission will consider when deciding whether to issue a license to conduct gaming on an establishment, vessel, or cruise vessel on Mississippi jurisdiction bodies of water. The various criteria set forth may not have the same importance in each instance and other factors may present themselves in the consideration of an application for a license. The criteria are not listed in any order of priority. (b) Revenue provided by facility. The Commission will consider the amount of revenue to be provided by the proposed facility to the state and local communities through direct taxation on its operation indirect revenues from tourism, ancillary businesses, creation of

new industry, and taxes on employees and patrons. (c) Establishment, vessel, or cruise vessel viable and properly financed. The Commission will consider whether the proposed establishment, vessel, or cruise vessel is economically viable and properly financed. (d) Adequate security. The Commission will consider whether the proposed establishment, vessel, or cruise vessel is planned in a manner which provides adequate security for all aspects of its operation and for the people working, visiting, or traveling on the establishment, vessel, or cruise vessel. (e) Efficient and safe operation. The Commission will consider whether the proposed establishment, vessel, or cruise vessel is planned in a manner which promotes efficient and safe operation of all aspects of its facility including, but not limited to, docking facilities, all areas of establishment, vessel, or cruise vessel concession areas, and management areas. (f) Efficient, safe and enjoyable for patrons. The Commission will consider whether the proposed establishment, vessel, or cruise vessel is planned in a manner which promotes efficient, safe, and enjoyable use by patrons including, but not limited to, establishment, vessel, or cruise vessel structure, parking facilities, concessions, the casino, access to cashier windows, and rest rooms. (g) Compliance with applicable state and local laws. The Commission will consider whether the proposed establishment, vessel, or cruise vessel is in compliance with applicable state and local laws regarding fire, health, construction, zoning, and other similar matters. (h) Employ appropriate persons. The Commission will consider whether the applicant will employ the persons necessary to operate the establishment, vessel, or cruise vessel in a manner consistent with the needs, safety, and interests of all persons who will be on the establishment, vessel, or cruise vessel. (i) Population of area establishment, vessel, or cruise vessel will serve. The Commission will consider the population of the area to be served by an establishment, vessel, or cruise vessel together with location of other establishments, vessels, or cruise vessels within and without the state of whatever nature. (j) Character and reputation. The Commission will consider the character and reputation of all persons identified with the ownership and operation of the establishment, vessel, or cruise vessel or licensed business, and their capability to comply with the rules of the Commission and the Mississippi Code. (k) Economic development. The Commission will consider whether the proposed operation will maximize economic development. The operation, to the extent practicable, should exhibit a good faith effort to choose Mississippi businesses and residents in the awarding of contracts for goods, services and entertainment. The applicant shall demonstrate to the Commission all efforts made to comply with this regulation at the time of the initial licensing and all subsequent licensures. (l) Tourism. The Commission will consider whether the proposed operation is beneficial to Mississippi tourism. (m) Employment opportunities. The Commission will consider the number and quality of employment opportunities for Mississippians created and promoted by the proposed operation. The applicant shall demonstrate to the Commission all efforts made to comply with this regulation at the time of the initial licensing and all subsequent licensures. (n) Shore development. The Commission will consider the amount and type of shore

developments associated with the gaming establishment, vessel, or cruise vessel project. (o) Miscellaneous. The Commission will consider such other factors as may arise in the circumstances presented by a particular application. (Adopted: 09/25/1991; Amended: 02/23/2006.)

History

• Source: Miss. Code Ann. §§ 75-76-63, 75-76-34, 75-76-3

13 Miss. Admin. Code Pt. 2, R. 1.3 Licenses And Other Commission Actions

(a) Gaming License. A license which authorizes the holder to operate a gaming establishment. A gaming license is granted for a period of no longer than three (3) years from the date of issue. A gaming license may be granted for a period of less than three (3) years within the discretion of the Commission. At the expiration of a license, if the Commission is satisfied, after careful review of the licensee’s current report, verified by the affidavit of an officer of the licensee, that there has been no substantial change in the information provided in the application for the initial license, the Commission may, upon receipt of all prescribed fees and cost, continue the license for a period no longer than three (3) years. No more than two (2) continuances may be granted for each license and any continuance of a license is subject to the Commission’s power to revoke, suspend, condition or limit as if it were the initial license. (b) Manufacturer's License. A license which authorizes the holder to manufacture, assemble, or modify any gaming device in the State of Mississippi or for use or play in Mississippi. A manufacturer’s license is granted for a period of no longer than three (3) years from the date of issue. A manufacturer’s license may be granted for a period of less than three (3) years within the discretion of the Commission. At the expiration of a license, if the Commission is satisfied, after careful review of the licensee’s current report, verified by the affidavit of an officer of the licensee, that there has been no substantial change in the information provided in the application for the initial license, the Commission may, upon receipt of all prescribed fees and cost, continue the license for a period no longer than three (3) years. No more than two (2) continuances may be granted for each license and any continuance of a license is subject to the Commission’s power to revoke, suspend, condition or limit as if it were the initial license. (c) Distributor's License. A license which authorizes the holder to lend, lease, sell, give, or distribute in any other manner any gaming device in the State of Mississippi or outside the State of Mississippi for use or play in Mississippi. A distributor’s license is granted for a period of no longer than three (3) years from the date of issue. A distributor’s license may be granted for a period of less than three (3) years within the discretion of the Commission. At the expiration of a license, if the Commission is satisfied, after careful review of the licensee’s current report, verified by the affidavit of an officer of the licensee, that there has been no substantial change in the information provided in the application for the initial license, the Commission may, upon receipt of all prescribed fees and cost, continue the license for a period no longer than three (3) years. No more than two (2) continuances may be granted for each license and any continuance of a license is subject to the Commission’s power to revoke, suspend, condition or limit as if it were the initial license. (d) Registration. A commission action which authorizes an entity to be a holding company

with respect to another entity which holds or applies for a state gaming license. (e) Other Licenses Or Findings Of Suitability. The Act and these regulations require or permit the Commission to require that certain persons directly and actively involved in the administration or supervision of the gaming activities of gaming licensees be found suitable to hold a gaming license so long as that involvement continues. 1. The following persons shall apply for a finding of suitability and must be found suitable by the Commission in order to be involved with a licensee: i. Each person who serves as Chairman of the Board of Directors of any corporation, public or private, licensed or registered by the Commission; and ii. Each person who has a vote on any issue before the Board of Directors of any corporation, public or private, licensed or registered by the Commission and who is also an employee of the corporation or any of its subsidiaries. 2. The following persons shall apply for a finding of suitability and may be found suitable by the Commission after review of the application: i. Each person who serves as the Chairman of the audit or compliance committees of any corporation, public or private, licensed or registered by the Commission, and ii. Any executive, employee, or agent of a gaming licensee that the Commission determines as having the power to exercise a significant influence over decisions concerning any part of the operation of a gaming licensee. 3. Whenever it is the judgment of the Commission that the public interest and the policies set forth in the Act will be served by requiring any employee to be found suitable, the Commission shall serve notice of such determination upon the licensee. The Commission shall not be restricted by the title of the job performed but shall consider the functions and responsibilities of the person involved in making its decision as to suitability status. Examples shall include, but are not limited to, persons acting in the capacity of a property level general manager, assistant general manager, or executive level personnel actively and directly engaged in the administration or supervision of the activities of a licensee. Grounds for requiring suitability of an executive, employee or agent which are deemed to serve the public interest and the policies of the Act include but are not limited to the following: i. The individual is new to the industry, to the particular gaming establishment, or the position, and has significant influence and control and the Commission has little or outdated information concerning his or her character, background, reputation or associations; or ii. Information has been received by the Commission which, if true, would constitute ground for a finding of suitability to be associated with a gaming enterprise. 4. The licensee shall, within thirty (30) days of placing an employee into a position as described above shall present notification to the Executive Director who shall inform the licensee whether the application for a finding of suitability is necessary. Failure of the licensee to respond as required by this section shall constitute grounds for disciplinary action. 5. Any individual whose application for finding of suitability is required pursuant to this regulation may request the Commission in writing to review its determination of

that individual’s status within the gaming organization any time within ten (10) days following the filing of a completed application as required by this regulation. In the event the Commission determines that the applicant is not required to be found suitable or that the public interest and policies of the Act do not require the finding of suitability of the individual at the time, then the applicant shall be allowed to withdraw his application and he may continue in his employment. 6. An applicant for a finding of suitability has the burden of proving his qualification to receive and maintain a finding of suitability pursuant to Mississippi Code Annotated § 75-76-67. If the nature of the job changes from that for which the applicant is found suitable, he may be required to submit himself to a new determination of his suitability. A finding of suitability is granted for a period of no longer than ten (10) years from the date of issue. A finding of suitability may be granted for a period of less than ten years within the discretion of the Commission. i. A holder of a finding of suitability must file with the Investigations Division of the Commission the “Investigations Division Annual Report”, providing all information requested on forms provided by the Commission, and any other information requested by the Executive Director. Such “Investigations Division Annual Report” shall be due by June 30 th of each year, with the exception of the calendar year the license is granted. ii. A holder of a finding of suitability shall immediately inform the Commission of any arrest or conviction. (f) Any executive, employee, or agent of a gaming licensee who is listed or should be listed in the annual employee report may be required to apply for a finding of suitability at the direction of the Commission. (g) Approvals. The Mississippi Gaming Control Act and these regulations require commission approval for certain acts of licensees or transactions directly or indirectly involving licensees. Such approvals by themselves do not constitute the licensing or a finding of suitability of any person involved, but merely an approval for the particular transaction involved. The Executive Director shall have complete discretion in determining whether to grant prior approval for a contract or agreement which would otherwise be prohibited under Miss. Code Ann. §75-76- 61(5), or an employment relationship which would otherwise be prohibited under Miss. Code Ann. §75-76-61(6). Notwithstanding the foregoing, however, no such prior approval shall be granted unless the Commission has previously given unanimous approval of the contract, agreement or employment relationship. (h) Gaming Site Approval and Approval to Proceed with Development. The Commission may, in its discretion, grant approval of gaming sites. The Commission has divided the approval process into two separate phases: 1. Gaming site approval; and 2. Approval to proceed with development.

History

• Source: Miss. Code Ann. § 75-76-63

13 Miss. Admin. Code Pt. 2, R. 1.4 Gaming Site Approval

The Commission has the authority to determine the legality and suitability of gaming sites, and a finding of suitability of a gaming site constitutes the Commission’s finding that the location

is both suitable for gaming and complies with applicable gaming laws and regulations. Gaming site approval is a revocable privilege, and no holder acquires any vested right therein. The Commission has final authority in reviewing and approving each site as it pertains to meeting the requirements of this regulation. When requesting approval the applicant must provide the following information, together with evidence satisfactory to the Commission in support thereof: (a) A survey and supporting conveyances indicating the specific location of the property and the location where gaming would be conducted on the property. 1. For an inland site approval located in the three (3) most southern counties in Mississippi, the survey: i. Must be performed by a qualified surveyor of tidal surveys and establish the nineteen (19) year mean high water line; ii. Must establish that no gaming activities will be conducted more than eight hundred (800) feet from the mean high water line, or, if in Harrison County, no farther north than the southern boundary of Highway 90, whichever is greater, as provided in Miss. Code Ann. § 97-33-1(b)(ii); iii. Must establish that the applicant owns and/or leases the parcel(s) that will contain the gaming structure and the parcel(s) that contain or border the relevant mean high water line; in the case of multiple parcels, the survey must establish that all parcels are contiguous but for easements and rights-of-way for public streets and highways (which shall not be counted in the 800 foot distance calculation) as provided in Miss. Code Ann. § 97-33-1(b)(iii); (b) The current use of any adjacent property as well as the location of the nearest residential area, church and school. (c) Certification from the appropriate governing authorities that all applicable zoning ordinances allow gaming at the proposed site.

History

• Source: Miss. Code Ann. §§ 75-76-225; 75-76-209; 75-76-27; 75-76-79; 75-76-33; 75-76-79

13 Miss. Admin. Code Pt. 2, R. 1.5 Approval To Proceed With Development

With respect to obtaining the Commission’s approval to proceed with development, the following information, together with documentation to support this information, shall be submitted to the Commission: (a) Architectural plans or renderings showing details of all proposed construction and renovation for the project, together with a footprint of the project. Include a description of the construction and type of parking facilities, as well as parking lot capacity. Commission approval requires that the project include a 500-car, or larger parking facility in close proximity to the casino complex, and infrastructure facilities shall include a 300-room, or larger hotel of at least a three diamond rating as defined by an acceptable travel publication to be determined by the Commission. In addition, infrastructure facilities must include a restaurant capable of seating at least 200 people and a fine dining facility capable of seating at least 75 people, and the casino floor must be at least 40,000 square feet. The project will also have or support an amenity that will be unique to the market and will encourage economic development and promote tourism. The Commission will have authority in determining the quality of the amenity and the ultimate approval of the amenity, and may in its discretion reduce the requirements above

should it determine that there is a justification to do so in certain markets. The Commission will further determine, in its discretion, if the prerequisite hotel and dining facilities may be supplanted by an amenity of high value to the overall tourism market in that the amenity will likely encourage economic development and promote tourism. As used herein, infrastructure facilities are not such items as parking facilities, roads, sewage and water systems, or civic facilities normally provided by cities and/or counties. The qualifying infrastructure must be owned or leased by (i) the holder of the site approval, or (ii) an affiliated company of the holder of the site approval where both the affiliated company and the holder of the site approval have identical direct or indirect equity ownership. This regulation shall apply to any new applicant for a gaming license for a new gaming facility and to the acquisition or purchase of a licensee or gaming facility for which gaming operations have ceased prior to the time of acquisition or purchase. This regulation, however, shall not apply to any licensee which has been licensed by the Commission, or to any person which has received Approval to Proceed with Development from the Commission, prior to December 31, 2013. (or to such licensee upon any licensing renewal after such date). Any change to the plan, or placement or design of the establishment, cruise vessel or vessel, shall be submitted in advance to the Executive Director for determination of whether such a change constitutes a material change. If the Executive Director determines that a material change has occurred, Commission approval is required for the same. (b) Statements reflecting the total estimated cost of construction or renovation of the establishment, vessel, or cruise vessel and shore and dock facilities, distinguishing between known costs and projections, and separately identifying: 1. Facility design expense; 2. Land acquisition costs; 3. Site preparation costs; 4. Construction costs or renovation costs; 5. Equipment acquisition costs; 6. Cost of interim financing; 7. Organization, administrative and legal expenses; 8. Projected permanent financing costs; 9. Qualified infrastructure costs; and 10. Non-qualifying infrastructure costs. (c) A construction schedule for completion of the project, including an estimated date of project completion. Indicate whether a performance bond will be required by the applicant to be furnished by the contractor. (d) Current financial statements, including, at a minimum, a balance sheet and profit and loss statement for the proposed licensee. (e) A detailed statement of the sources of funds for all construction and renovation proposed by the site development plans. Any funding, whether equity or debt, to be obtained must be supported by firm written commitments satisfactory to the Commission. The applicant will have 120 days in which to close all financing and start construction or the approval is deemed void. (f) Evidence that the following agencies (if applicable) were notified of the development and/or do not oppose the site development: 1. U.S. Corps of Engineers

2. U.S. Coast Guard 3. Mississippi Department of Transportation 4. Mississippi Department of Environmental Quality 5. Department of Marine Resources 6. Port and Harbor Commission 7. Levee Board 8. City and County government 9. Such other agencies as the Executive Director deems appropriate. The application for a Gaming Operator’s License shall be filed no later than ninety (90) days after the Commission grants approval to proceed with development. The gaming site approval will expire three (3) years from the date approval to proceed with development is granted unless the Commission grants an extension. Approval to proceed with development is not subject to sale, assignment or transfer.

History

• Source: Miss. Code Ann. §§ 75-76-61, 75-76-77, 75-76-27, 75-76-45

13 Miss. Admin. Code Pt. 2, R. 1.6 Opening Of A Casino

Before any gaming facility may open to the public, all infrastructure requirements must be fully operational. The development shall be completed in accordance with the approved plan and be ready for operation within the gaming site approval time period. Gaming site approval may be extended, within the discretion of the Commission. Gaming shall not be conducted on any approved site unless the Commission has issued an operator’s license to the person that owns, leases or controls the cruise vessel or structure where gaming activities will be conducted as provided in Miss. Code Ann. § 97-33-1(b)(i). If the casino is in any of the three (3) most southern counties of the state, and public trust tidelands are not leased from the state in order to meet the requirements of Rule 1.4, the licensee will be required to pay an annual in-lieu tidelands assessment as required in Miss. Code Ann. § 29-1-107(4)(c) at the time of issuance of the operator’s license, unless otherwise exempted by statute. (Adopted: 09/25/1991; Amended: 10/13/1994; Amended: 07/23/2003; Amended: 02/23/2006; Amended: 06/21/2007.)

History

• Source: Miss. Code Ann. §§ 75-76-77; 75-76-61

13 Miss. Admin. Code Pt. 2, R. 1.7 Compliance Review And Reporting System

(a) Whenever the Commission is acting upon any application of a licensee or registrant, or pursuant to its powers provided in Miss. Code Ann. §75-76-103, and if the Commission determines that circumstances exist which require additional management review by a licensee or registrant, the Commission may impose a condition upon any license or order of registration to require implementation of a compliance review and reporting system by the licensee or registrant. (b) The terms of the condition may include, but shall not be limited to: 1. That the condition shall expire on a certain date or after a designated period of time without commission action; 2. That the condition may be administratively removed by the Executive Director should a specified activity cease or a specified event occur; or That a periodic review shall be conducted by the Executive Director and upon such review the Executive Director may recommend and the Commission may remove or continue

to require the condition. (c) Notwithstanding the provision of paragraph (b) above, upon application, a licensee or registrant may request modification or removal of the condition imposed and the Commission may, after considering the recommendation of the Executive Director, modify or remove the condition. (d) The compliance review and reporting system shall be created for the purpose of monitoring activities relating to the licensee’s or registrant’s continuing qualifications under the provisions of the Act and regulations of the Commission in accordance with a written plan to be approved by the Executive Director administratively or as otherwise ordered by the Commission. (e) The written plan must provide for the operation of the compliance review and reporting system and must designate who shall be responsible for said system. The plan must provide for involvement of at least one person knowledgeable of the provisions of the Act and the regulations of the Commission. The plan must require periodic reports to senior management of the licensee or registrant. Such reports shall be advisory and the licensee or registrant shall maintain responsibility for compliance with the Act and regulations of the Commission. Copies of the reports must be provided to the Commission. (f) The activities to be monitored must be set forth in the written plan and must be determined by the circumstances applicable to the licensee or registrant. Without limitation, the activities that may be required to be monitored pursuant to the compliance review and reporting system include the following: 1. Associations with persons denied licensing or other related approvals by the Commission or who may be deemed to be unsuitable to be associated with a licensee or registrant; 2. Business practices or procedures that may constitute grounds for denial of a gaming license or registration; 3. Compliance with other special conditions that may be imposed by the Commission upon the licensee or registrant; 4. Review of reports submitted pursuant to the Act and regulations of the Commission; 5. Compliance with the laws, regulations, or orders of duly constituted governmental agencies or entities having jurisdiction over the gaming affairs, or such other business activities which the 6. Executive Director or the Commission may deem necessary or proper, of the licensee, the registrant, or its affiliates; and Review of such other activities determined by the Commission as being relevant to the licensee’s or registrant’s continuing qualifications under the provisions of the Act and the regulations of the Commission. (Adopted: 09/25/1991; Amended: 08/18/1994; Amended: 10/22/1998; Amended: 11/19/1998; Amended: 01/21/1999; Amended: 11/18/1999; Amended: 01/18/2001; Amended: 07/23/2003; Amended: 10/27/2005; Amended: 02/23/2006.)

History

• Source: Miss. Code Ann. §§ 75-76-61, 75-76-63, 75-76-77, 75-76-103

13 Miss. Admin. Code Pt. 2, R. 1.8 Information Required; Failure To Provide Complete And Accurate Information

Constitutes Grounds For Delay Or Denial Of Application; Amendments. (a) In addition to the information required by Miss. Code Ann. § 75-76-73, an applicant shall provide to the Executive Director, on forms furnished by the Executive Director, complete information regarding the proposed operation, including but not limited to, a certification that any establishment, vessel or cruise vessel to be used by the proposed operation has been inspected and approved by all appropriate authorities as soon as such certification is complete, fingerprints of each individual applicant, the nature, source, and amount of any financing, the proposed uses of all available funds, the amount of funds available after opening for the actual operation of the establishment, and economic projections for the first three (3) years of operation of the establishment. In addition, the applicant shall provide complete information regarding his or her background for the ten year period preceding submission of the application. (b) In all cases in which the premises to be used for the proposed operation are not wholly owned by the applicant, the applicant shall provide to the Executive Director complete information pertaining to the interest held by any person other than the applicant, including the name and address of the owner or owners of the premises, a copy of all agreements entitling the applicant to possession of the premises and such other information as the Executive Director may require. (c) Pursuant to Miss. Code Ann. §75-76-73, the Commission or the Executive Director may require an applicant to provide such other information and details as they need to discharge their duties properly. Failure to supply any information promptly after receiving the Executive Director's or the Commission's request constitutes grounds for delaying consideration of the application or for denial. (d) It is grounds for denial of an application or disciplinary action for any person to make any untrue statement of material fact in any application, or in any statement or report filed with the Executive Director or Commission, or willfully to omit to state in any such application, statement or report any material fact which is required to be stated therein, or which is necessary to make the facts stated not misleading. (e) All information included in an application must be true and complete as of the dates submitted and an applicant shall promptly supply by amendment, any information based on facts occurring after the original application so as to make such information not misleading as of the dates of any action taken by the Executive Director and the Commission. (f) An application may be amended in any respect by leave of the Executive Director at any time prior to final action thereon by the Commission. Any amendment to an application shall have the effect of establishing the date of such amendment as the filing date of the application with respect to the time requirements for action on the application. Request for amendment to an application must be in writing. (Adopted: 09/25/1991; Amended: 02/23/2006.)

History

• Source: Miss. Code Ann. §§ 75-76-63, 75-76-67, 75-76-73

13 Miss. Admin. Code Pt. 2, R. 1.9 Additional Application Information Required

Every application to become a license holder shall contain the following additional information: (a) Give actual establishment, vessel, or cruise vessel blueprints, including a layout of each

floor stating the projected use of each area. (b) State whether the establishment, vessel, or cruise vessel has been or will be certified by the United States Coast Guard, if applicable. (c) Set forth the proposed route to be taken, identifying the body of water, and include any relevant Army Corps of Engineer data or Mississippi Departments of Environmental Quality and the Department of Wildlife, Fisheries and Parks data on that body of water. (d) State the number of miles from the nearest population center and describe briefly the transportation facilities serving that population's center. (e) Describe the casino size and configuration of slot machines, video games of chance and table games. (f) State the availability of fire protection and the adequacy of law enforcement on the establishment, vessel, or cruise vessel, both at the docking facilities and along the proposed excursion route. Provide emergency evacuation plans for hurricane and flooding disasters. (g) Describe the arrangements for food and drink concessions, indicating the names and addresses of concessionaires and the terms of the concession contracts, if applicable. (h) Indicate the type of slot machines and video games of chance to be used; also, indicate the proposed distributors and manufacturers of this equipment. (i) Describe the physical location, size and floor plan of the section of the establishment, vessel, or cruise vessel reserved for patrons under 21 years of age. Provide plans for activities and staffing of this section. (j) Indicate establishment, vessel, or cruise vessel days and periods of time that the gaming areas will be in operation. (k) Describe the proposed management of the facility, management personnel by function, and tip distribution policies. (l) Include any and all known feasibility studies made available to the applicant which have been done on the type of gaming in the particular locale where the applicant intends to conduct gaming. (m) Describe procurement policies that emphasize the utilization of Mississippi employees, resources, goods and services in the operation of the gaming establishment, vessel, or cruise vessel. (Adopted: 09/25/1991; Amended: 07/23/2003; Amended: 02/23/2006.)

History

• Source: Miss. Code Ann. §§ 75-76-63, 75-76-67, 75-76-73

13 Miss. Admin. Code Pt. 2, R. 1.10 Separate Applications For Each Establishment

Separate applications are required for each establishment for which a gaming license is sought, irrespective of the ownership of such establishment. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-73

13 Miss. Admin. Code Pt. 2, R. 1.11 Application And Investigative Fees

(a) Simultaneously with the submission of its application for a gaming license, the applicant shall pay a non-refundable application fee of Five Thousand Dollars ($5,000.00) along with all other fees provided for in the Gaming Control Act. These fees shall be payable

to the Mississippi Department of Revenue. (b) An applicant for any subsequent gaming license, continuance of a gaming license, finding of suitability, registration, approval, or other license pertaining to a particular establishment shall pay such investigative fees and costs as determined by the Executive Director. Any licensee which is the subject of a periodic compliance investigation shall pay such investigative fees and cost as determined by the Executive Director. The Executive Director shall estimate the investigative fees and costs and may require a deposit to be paid by the applicant or licensee in advance as a condition precedent to beginning or continuing an investigation. If, at any time, the Executive Director determines that the investigative fees and costs are likely to exceed the deposits paid by the applicant or licensee, the Executive Director may require additional deposits. (c) The Executive Director and Commission will not take final action to approve any application unless all application and investigative fees and costs have been paid in full. The Executive Director may recommend denial and the Commission may deny the application if the applicant has failed or refused to pay all application and investigative fees and costs. (d) Upon final action on the application, the Executive Director shall give to the applicant an itemized accounting of the investigative fees and costs incurred. The Executive Director shall refund to any applicant who made deposits pursuant to Subsection (b) of this Regulation, any balance remaining in the investigative account of the applicant after all investigative fees and costs have been paid. (Adopted: 09/25/1991; Amended: 11/18/1999.)

History

• Source: Miss. Code Ann. §§ 75-76-183, 75-76-189, 75-76-183, 75-76-177

13 Miss. Admin. Code Pt. 2, R. 1.12 Timetable For Financing And Construction

(a) License applicants shall submit, simultaneously with submission of their completed application, a timetable for financing arrangements (including applications for approval of public offerings or private placements), and commencement and completion of construction activities and setting forth the date upon which gaming activities will commence. This timetable will be subject to approval by the Commission, and monitored for compliance by the Executive Director. (b) The Commission may grant extensions of time upon the recommendation of the Executive Director. (c) License applicants shall not advertise or promote the opening of their proposed casino nor the commencement of employee training for that proposed casino until the applicant is granted a license by the Mississippi Gaming Commission. After the granting of a license, the licensee may advertise or promote the opening of their casino and/or the commencement of employee training for that casino. Applicants may request a waiver of this regulation from the Executive Director stating compelling reasons for an exception to this regulation. The granting of any waiver by the Executive Director shall be subject to revocation. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-75-187, 75-76-175, 75-76-93

13 Miss. Admin. Code Pt. 2, R. 1.13 Withdrawal Of Application

(a) A request for withdrawal of an application may be made at any time prior to final action upon the application by the Commission by filing a written request to withdraw with the Executive Director. (b) The Executive Director may, in his discretion, deny the request, or grant the request with or without prejudice. If the request is denied or granted with prejudice, the applicant may appeal to the Commission within ten (10) days of the Executive Director's decision. (c) If a request for withdrawal is granted with prejudice, the applicant is not eligible to apply again for licensing or approval until after expiration of one (1) year from the date of such withdrawal. (d) The Executive Director shall notify the applicant in writing whether its request for withdrawal has been granted with or without prejudice or denied.

History

• Source: Miss. Code Ann. §§ 75-76-23, 75-76-67, 75-76-63

Chapter 2 QUALIFICATIONS

13 Miss. Admin. Code Pt. 2, R. 2.1 Criteria For Cruise Vessels And Vessels

(a) Cruise Vessel: 1. Complies with all U.S. Coast Guard regulations; 2. Has a minimum overall length of one hundred fifty feet (150'); 3. Has a minimum draft of six feet (6'); and 4. Is certified by the U.S. Coast Guard to carry at least two hundred (200) passengers. (b) Vessel: 1. For purposes of the Mississippi Gaming Control Act, includes every 2. Description of floating watercraft or other floating artificial contrivance; 3. Has a minimum overall length of one hundred fifty feet (150'); 4. Shall comply with all state and local safety and health ordinances and/or regulations. (Adopted: 11/14/1990; Amended: 07/16/1998.)

History

• Source: Miss. Code Ann. § 75-76-67

13 Miss. Admin. Code Pt. 2, R. 2.2 Location

(a) The legislature has declared gaming operations legal if licensed by the Commission and conducted upon establishments, vessels and cruise vessels located in certain statutorily described areas where voters have not voted to prohibit gaming. The Commission, as authorized by law and in conformity with the power and responsibility vested in it by the legislature, finds that gaming licensees may operate at the following locations. Nothing in this section shall act to prevent the Commission from denying a gaming license or preliminary site approval based on the unsuitability of a particular site. 1. Cruise Vessels. Waters within the State of Mississippi which lie adjacent to the three (3) most southern counties of the State. In addition to the Mississippi Sound, this would include St. Louis Bay, Biloxi Bay and Pascagoula Bay. However, the rivers, bayous, lakes and back bays leading into these bays, including but not limited to the Jourdan River, Wolf River, Bernard Bayou, Tchoutacabouffa River, Pascagoula River and Escatawpa River, Biloxi River, Big Lake and Back Bay of

Biloxi are not within the authorized area. In determining where the river ends and the bay begins, an imaginary line shall be drawn from the foremost land mass at the intersection of the river and bay, straight across the river to the foremost land mass of the intersection on the other side. In determining where Back Bay of Biloxi ends and Biloxi Bay begins, an imaginary line shall be drawn beginning at a point 1200 feet west of the center line of Interstate 110 on the northern shore to a point on the center line of Interstate 110 on the southern shore. 2. Vessels. Vessels must be on the Mississippi River or navigable waters within any county bordering on the Mississippi River when such navigable waters run into the Mississippi River. Navigable waters mean any rivers, creeks, bayous or other bodies of water that are used or susceptible of being used as an artery of commerce and which either in their natural or improved condition are used or suitable for use as an artery of commerce or are used for the docking or mooring of a vessel, notwithstanding interruptions between the navigable parts of such rivers, creeks, bayous or other bodies of water by falls, shallows, or rapids compelling land carriage. Vessels may be located (1) on the Mississippi River, including oxbow lakes immediately adjacent to the Mississippi River, that communicate with the Mississippi River and are characterized by currents which reverse seasonally, running one direction when the Mississippi River rises, and the opposite direction when it falls, and (2) on navigable waters. i. “Navigable Waters” are defined as rivers, creeks, bayous or other naturally occurring bodies of water that, at the time of application and prior to improvements to accommodate a vessel empty into the Mississippi River in the county where the applicant casino is located; are located within a county where gaming is legal, in other words, do not border a county where gaming is illegal; are used or susceptible of being used as an artery of commerce for substantial commercial traffic; either in their natural or improved condition are used or suitable for use as an artery of commerce for substantial commercial traffic or are used for docking or mooring of a vessel; and are of a sufficient depth and width at least thirty (30) days of the calendar year to accommodate a vessel of at least 150’ in length and the proposed width of the applicant vessel. ii. Naturally occurring interruptions between the navigable parts of such rivers, creeks, bayous or other bodies of water by falls, shallows, or rapids compelling land carriage do not deprive it of its classification of navigable. Artificial impediments to navigation for substantial commercial traffic do not deprive rivers, creeks, bayous or other bodies of water of their status as navigable. iii. In accordance with the above, vessels must be west of the main line levee that runs from the border between the states of Mississippi and Tennessee to the end of the main line levee in Warren County and west of the naturally occurring levee system or bluffs from Warren County to the border between Wilkinson County, Mississippi and West Feliciana Parish, Louisiana, except vessels may be located on the Yazoo River within Warren County and the Big Black River where it forms the border between Warren and Claiborne Counties.

3. Establishments. The part of the structure in which licensed gaming activities are conducted is located entirely in an area which is located no more than eight hundred (800) feet from the mean high-water line (as defined in Section 29-15-1) of the waters within the State of Mississippi, which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi, including the Mississippi Sound, St. Louis Bay, Biloxi Bay and Pascagoula Bay, or, with regard to Harrison County only, no farther north than the southern boundary of the right-of-way for U.S. Highway 90, whichever is greater; and In the case of a structure that is located in whole or part on shore, the part of the structure in which licensed gaming activities are conducted shall lie adjacent to state waters south of the three (3) most southern counties in the State of Mississippi, including the Mississippi Sound, St. Louis Bay, Biloxi Bay and Pascagoula Bay. When the site upon which the structure is located consists of a parcel of real property, easements and rights-of-way for public streets and highways shall not be construed to interrupt the contiguous nature of the parcel, nor shall the footage contained within the easements and rights-of-way be counted in the calculation of the distances specified in the above paragraph. 4. The Executive Director may make a recommendation to the Commission regarding the qualification of a location for gaming operations upon the request of an applicant for an operator’s license or upon a finding by the Executive Director that such determination is necessary and in accord with public policy. 5. These amendments shall apply to all existing, pending, renewal and new applicants for a license or preliminary site approval. (Adopted: 11/14/1990; Amended: 12/12/1990; Amended: 07/16/1998; Amended: 04/26/2001; Amended: 07/23/2003; Amended: 02/23/2006.)

History

• Source: Miss. Code Ann. §§ 75-76-3, 75-76-29, 75-76-33

13 Miss. Admin. Code Pt. 2, R. 2.3 Unsuitable Locations

The Executive Director may recommend that an application for a license be denied if the Executive Director believes that the place or location for which the license is sought is unsuitable for the conduct of gaming operations. The Commission may deny an application for a state gaming license if it deems that the place or location for which the license is sought is unsuitable for the conduct of gaming operations. Without limiting the generality of the foregoing, the following places or locations may be deemed unsuitable: (a) Premises located within the immediate vicinity of residential areas, churches, schools and children's public playgrounds. (b) Premises where gaming is contrary to any county or city, ordinance, including, but not limited to, zoning ordinances restricting the permissible locations for gaming facilities, so long as such ordinances do not have the effect of absolutely excluding or prohibiting legal gaming; (c) Premises which fail to meet federal, state or local health and safety standards, and any other applicable laws or regulations including, but not limited to Coast Guard regulations. (d) Premises frequented by minors. The Executive Director may recommend and the Commission may determine that premises frequented by minors are nevertheless suitable

if the applicant demonstrates that it has taken sufficient precautions to separate areas of the premises frequented by minors from the gaming operation. (e) Premises lacking adequate supervision or surveillance. (f) Premises difficult to police, or where adequate fire protection may be difficult. (g) Any other premises where the conduct of gaming would be inconsistent with the public policy of the State of Mississippi. (h) The Legislature has declared certain public policy relating to gaming. In response to these directives, the Mississippi Gaming Commission has adopted certain rules as guidelines to adhere to this policy. (i) The Commission, in conformity with this policy and guidelines in its rules and regulations when determining suitability of a site in which primary access is from a foreign jurisdiction, finds that: 1. Access to any site on the west side of Mississippi River would require primary access from a foreign jurisdiction; 2. Revenues from tourism and ancillary business would by necessity adhere to jurisdictions other than Mississippi; 3. The population of the area served would be substantially non-Mississippi; 4. It would not maximize economic development of Mississippi; 5. Is not beneficial to Mississippi tourism; 6. Employment opportunities would serve other than Mississippians; 7. Shore developments would substantially be on foreign jurisdictions; 8. Fire and police protection would fall on the shoulders of the foreign jurisdiction due to the inaccessibility of the site. There would be an undue burden on the Commission to strictly regulate as dictated by the Legislature. 9. Any establishment that must be accessed by agents traveling through foreign jurisdictions, frequently, if not daily, puts an unacceptable burden on that agent as well as the State. The lost time through travel is a highly inefficient use of state assets and additionally requires the agent to abandon on a daily basis the protection afforded to him by the state and submit to the laws of the foreign jurisdiction. The Mississippi Gaming Commission therefore declares it to be the policy of the Commission that any location that requires primary access from foreign jurisdictions to be unsuitable for a gaming establishment. (Adopted: 09/25/1991; Amended: 10/13/1994.)

History

• Source: Miss. Code Ann. §§ 75-76-29, 75-76-57

13 Miss. Admin. Code Pt. 2, R. 2.4 Safety Standards

(a) Fire Safety Standards. Any establishment to be constructed for dockside gaming that will be permanently moored or on a land based structure, will be required to meet (1) the fire safety standards of the Mississippi Fire Prevention code, Section 45-11-101, (2) additional requirements for places of amusement as listed in Sections 45-11-21 through 45-11-55 of the Mississippi Code, (3) the fire safety standards contained in the National Fire Protection Association ("NFPA") Standard 307, Standard for the Construction and Fire Protection of Marine Terminals, Piers, and Wharfs, and (4) the NFPA Life Safety Code. However, to the extent local fire safety standards exceed the foregoing standards, the local standards must be followed.

(b) Coast Guard, Department of Homeland Security Standards. Any vessel, cruise vessel or structure that is subject to the regulations of 46 CFR, Chapter 1, Subchapter S “Subdivision and Stability”, shall maintain compliance with Part 170 of Subchapter S and all Subparts thereunder which apply to the vessel or cruise vessel. Evidence of compliance with these requirements and all required testing shall be available to the Mississippi Gaming Commission upon request. (c) Building Standards. All licensees must comply with the state and/or local building codes applicable to the gaming establishment and all required infrastructure facilities and amenities that are part of the gaming development and operation. (Adopted: 09/25/1991; Amended: 06/28/1993; Amended 02/23/2006.)

History

• Source: Miss. Code Ann. §75-76-3

13 Miss. Admin. Code Pt. 2, R. 2.5 Home Port; Excursions

(a) Whenever any person intends to apply for a gaming license pursuant to the Act, he shall file a notice of intent to apply for a gaming license with the Commission. (b) The notice of intent must completely and accurately describe the proposed gaming establishment, including its size, the number and types of games to be operated, the vessel's home port, whether the vessel will make excursions and, if so, the approximate routes, frequency, and duration of such excursions. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-73

13 Miss. Admin. Code Pt. 2, R. 2.6 Change Of Vessel, Location, Home Port Or Excursions

A licensee shall not change its establishment or its vessel, the location of its establishment or vessel, home port of its vessel, or the routes, frequency, or duration of any excursions without the prior approval of the Commission. Notwithstanding the foregoing, the Executive Director may allow a licensee to temporarily change the routes, frequency, or duration of excursions pending final approval by the Commission. (Adopted: 09/25/1991; Amended: 02/23/2006.)

History

• Source: Miss. Code Ann. § 75-76-29

13 Miss. Admin. Code Pt. 2, R. 2.7 Officials Not To Hold Gaming Licenses Or Related Approvals

(a) Prohibition. No state gaming license, finding of suitability, or approval, the granting of which requires an application to be made to the Commission, shall be held by nor granted to any person holding office in, or employed by, any agency of the State of Mississippi or any of its political subdivisions when the duties of such office or agency pertain to the enforcement of the provisions of the Act. (b) Inclusions. This regulation applies specifically, but without limitation, to the following categories of persons in gaming enforcement: 1. Persons affiliated with the attorney general's office of the State of Mississippi; 2. Persons affiliated with any district attorney's office within the state; 3. Persons affiliated with any sheriff's office or police department within the

state; 4. Members, agents, or employees of the Commission; 5. Any member of the judiciary; or 6. Any local City or County officials. (c) Waivers. The Commission may waive the prohibition contained within subsection (a) of this regulation if it makes a written finding that such waiver is not inconsistent with the state policy set forth in the Act, and the functions, duties, or responsibilities of the person otherwise restricted from holding the license, finding of suitability, or approval do not involve matters relating to the enforcement of the provisions of the Act. (d) Non-transferability Of Waivers. A waiver granted pursuant to this section is applicable only to the specific matter for which it is granted and shall not be transferable to any other license, finding of suitability, or approval applied for or held by the person otherwise prohibited from holding or being issued the same. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-63, 75-76-67

13 Miss. Admin. Code Pt. 2, R. 2.8 Licensing Of A Natural Person Under The Age Of Twenty-One

The Commission will not ordinarily grant a state gaming license or finding of suitability to an individual under twenty-one years of age. This policy would not affect the licensing or finding of suitability of a trust where the settlor or beneficiary is under the age of twenty-one years. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-155

13 Miss. Admin. Code Pt. 2, R. 2.9 Notice To County Or Municipality; Objection By County Or Municipality

(a) Whenever the Commission receives a completed application for a gaming license proposing to operate a gaming establishment in a particular county or municipality, the Executive Director shall, within ten (10) days after receipt of the application, notify the board of supervisors of the county and, if applicable, the chief executive of the municipality, in which the proposed operation will be located, of the receipt of the application, and specify the name of the applicant and the proposed location for the gaming establishment. (b) The county or municipality in which the applicant proposes to operate a gaming establishment may file a duly enacted resolution specifying any objections or endorsements with the Executive Director within thirty (30) days after receipt of the notice provided by the Executive Director pursuant to sub-part (a) above. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-61, 75-76-63

13 Miss. Admin. Code Pt. 2, R. 2.10 Hurricane Preparedness Policy

It is the policy of the Mississippi Gaming Commission to require, as a condition of licensure, that cruise vessels utilized for gaming on the Mississippi Gulf Coast, in the Biloxi Bay or in the Bay of St. Louis, that are not self-propelled, to be moored to withstand a Category 4 hurricane with 155 mile per hour winds and 15 foot tidal surge. Casinos will be required

through their State license or relicense application to follow emergency declarations made by local or State emergency management officials. (Adopted: 10/13/1994; Amended: 02/23/2006.)

History

• Source: Miss. Code Ann. § 75-76-3

13 Miss. Admin. Code Pt. 2, R. 2.11 Hurricane Emergency Procedure - Casino Operations

(a) DEFINITIONS. As used in this regulation. 1. EMERGENCY MANAGEMENT DIRECTOR/COORDINATOR: The individual in the local area responsible for coordination and leadership in developing civil preparedness and emergency management. 2. EMERGENCY OPERATIONS CENTER: A central location used by command and control agencies or personnel. Usually located in a hardened building to increase protection for personnel. (b) IDENTIFICATION OF AGENCIES AND ABBREVIATIONS. As used in this regulation. 1. BVA - Bill Validator Acceptors. 2. EOC - Emergency Operations Center. 3. MEMA - Mississippi Emergency Management Agency. 4. MGC - Mississippi Gaming Commission. (c) GENERAL. This regulation requires that establishments and cruise vessels utilized for gaming affected by Rule 2.10, Hurricane Preparedness Policy, shall be subject to this regulation. The purpose of this regulation is to describe the requirements casino management shall incorporate into their company emergency plan for use in closing and reopening the casino establishments, or cruise vessels in the event of a hurricane situation. In order to provide the most effective response to hurricane threats, coordination shall be through the MGC. This office will be in close and constant contact with MEMA and local Emergency Management through the Harrison County Emergency Operations Center. In the event of an emergency under this regulation, each casino shall have immediately available to MGC personnel the closure procedures as outlined and approved by this agency to be used as a check list for closure. 1. The response activities presented here are applicable to hurricane threats only and will provide adequate direction for casino management and will affect only the casino establishments and cruise vessels. All land based non-gaming facilities will receive direction from the Emergency Management Director. To expedite action, these directions may be passed through the MGC. (a) The procedures for closure and re-opening will not be identical for each casino due to the various sizes and shapes. Therefore, careful consideration must be made in preparation of each plan (b) The MGC will coordinate with MEMA on each plan to ensure procedures are adequate to ensure compliance with the Mississippi Gaming Control Act and Mississippi Gaming Commission Regulations. 2. The items identified in the following sections are not all inclusive. Each plan will be approved based on the individual casino, its design, layout, and internal controls. 3. Each casino effected by this regulation must develop a detailed time phased casino hurricane emergency operation’s plan with supporting procedures and documents. The detailed plan must be designed to follow the warning and watch system

normally used by the National Weather Service and promulgated locally by the County Emergency Management Agency. This tiered system should provide adequate notification for management to initiate a phased preparation for closure. Include the following items: i. Emergency plan review to ensure it is adequate and current. Changes made to the facility must be incorporated. ii. Identify a point of contact with current telephone and facsimile numbers and e- mail address to the MGC. iii. Identify critical personnel who will be working closures. iv. Identify training requirements and schedule for training personnel. v. Review, identify, and update storm tracking responsibilities. vi. Provide steps to procure any emergency supplies needed during closure actions such as bags, plastic wrap, wood, and tape. vii. Develop a short notice closure program containing only the critical actions mandatory for closure and evacuation. viii. Provide procedures and methods for communicating with emergency agencies. 4. Each casino shall be responsible for the following preparedness duties: i. Instruct employees on disaster plans and their actions or roles. ii. Coordinate with supporting companies and agencies to ensure all are aware of individual casino requirements. iii. Secure adequate storage facilities for critical records and equipment. iv. Stock adequate supplies used in the emergency plan. v. Maintain a constant schedule of maintenance and repair of equipment such as emergency generators. 5. Each casino shall be responsible for the following response during an emergency: i. Activate casino emergency operations staff. ii. Initiate time phased casino emergency plan. 6. The Emergency Operation’s Plan shall include the following procedures: i. When TROPICAL STORM WATCH is issued: • Provide casino representative for any meetings necessary with the MGC. • Inform the MGC where accounting back-up tapes will be stored. Preferred storage area is an institutional vault. • Ensure adequate storage space is available for critical items such as accounting records, computers, BVAs, table floats, etc. • Review manpower situation to ensure sufficient personnel are available. • Review requirements for boarding and/or taping windows. • Ensure security and surveillance requirements will be maintained. ii. If TROPICAL STORM WARNING is issued: • Verify actions outlined in TROPICAL STORM WATCH have been completed. • Ensure plans cover power loss. • Continue to monitor the storms progress.

iii. If HURRICANE WATCH is issued: • Provide procedures for scaling down operations. • Review drop schedules and predicted storm land fall to request time changes if needed. • Provide procedures for departments to review work schedules to allow employees to leave if possible so they can evacuate. • Maintain contact with the MGC agent assigned in preparation for possible closure order. iv. If HURRICANE WARNING is issued: • Establish procedures to receive closure order from MGC. • Identify procedures for securing gaming cheques located in floats, for accomplishing table box drops, securing cards and dice, securing BVAs in the slot machines, securing monies in change booths, and count rooms. • Identify which entry will be primary entrance and exit during closure. • Identify procedures to ensure surveillance and security will be maintained. • Identify procedures to ensure fire and other safety codes or regulations will be met for as long as possible. • Identify critical records, documents, and accounting backup tapes and removal procedure. • Identify procedures for closing and securing KENO areas. • Identify any other procedures casino management feels necessary to safely close the casino. • Open lines of communication with MGC. • Completely close and evacuate casino as required. (d) Each casino shall be responsible for the following recovery action: 1. Continue response actions as required by the County Emergency Management Agency. 2. Assess damage to establishments, casino vessel and supporting structures. 3. Implement repairs to facilities. 4. Request permission to reopen when safe environment is determined. The decision to reopen will be made by the MGC in conjunction with MEMA and local emergency management agencies. 5. Identify company personnel responsible for accomplishing damage assessment to work with the specialized teams from MEMA or the County Emergency Management Agency. 6. Identify procedures for maintaining power, fire alarms, and safety items. 7. Identify reopening team members. 8. Identify means to ensure surveillance and security coverage will be provided to comply with MGC regulations. 9. Identify procedures to install drop boxes, floats, BVAs, and any other materials placed into storage. 10. Identify procedures to start the slot computer accounting system. 11. Identify distribution procedures for cards and dice. (e) If EOC personnel find that the risk of completing closure requirements will place casino

personnel in imminent danger of loss of life, the Executive Director of the MGC or his designee may, at their discretion, override certain closure procedures or order immediate evacuation of the cruise vessel or gaming establishments. (Adopted: 03/21/1996; Amended: 02/23/2006.)

History

• Source: Miss. Code Ann. § 75-76-3

Chapter 3 INVESTIGATIONS AND HEARINGS.

13 Miss. Admin. Code Pt. 2, R. 3.1 Investigations

The Executive Director shall investigate all applications for licenses or other Commission approvals and report all material facts to the Commission. The Executive Director may investigate, without limitation, the background of the applicant, the suitability of the proposed premises for gaming, the proposed establishment's compliance with all applicable standards, laws, and regulations, the suitability of the applicant's financing, and the applicant's business probity. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-103

13 Miss. Admin. Code Pt. 2, R. 3.2 Waiver Of Privilege

An applicant shall waive any statutory or common law privilege afforded by the laws of the State of Mississippi or of any other jurisdiction in which the applicant or any information pertaining to the application is located. Refusal to waive such a privilege shall constitute grounds for denial of the application. An applicant may claim any privilege afforded by the Constitution of the United States, or of the State of Mississippi, in refusing to answer questions by the Executive Director and the Commission. Since the burden of proving his qualifications is upon the applicant, however, a claim of privilege with respect to any testimony or evidence pertaining to an application may constitute sufficient grounds for denial. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 2, R. 3.3 Summoning Of Applicants

The Executive Director or Commission may summon any person named in an application to appear and testify before them or their agents at such time and place as they may designate. All such testimony shall be under oath and may embrace any matter which the Commission, the Executive Director, or their authorized agents deem relevant to the application. Failure to appear and testify fully at the time and place designated, unless excused, constitutes grounds for denial of the application without further consideration by the Executive Director or the Commission. Any request for excuse of appearance must be in writing and filed with the Executive Director at least five (5) days prior to the scheduled appearance. The applicant may appeal a denial of excuse of appearance by the Executive Director to the Commission. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-27

13 Miss. Admin. Code Pt. 2, R. 3.4 Notice Of Hearing

The Executive Director shall give written notice to all applicants of his recommendation regarding their applications and the time and place that their application for a gaming license will be considered by the Commission. If the Executive Director recommends denial of an application, he shall also provide a written statement of the reasons for the recommendation. Applicants may be represented at the meetings by their attorneys or agents. The Commission will notify the applicant in writing of the disposition of his application. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-27

Chapter 4 GENERAL PARTNERSHIPS AND JOINT VENTURES.

13 Miss. Admin. Code Pt. 2, R. 4.1 Licensing Of Partners And Joint Venturers

When a general partnership or joint venture applies for any license, registration, or finding of suitability required or permitted to be granted by the Commission, each individual partner and joint venturer must file a complete application with the Executive Director and be separately found suitable by the Commission, although only one license, in the name of the partnership or joint venture, will be issued for a particular establishment. (Adopted: 09/25/1991.)

Rule 4.2. Application Fees. The general partnership or joint venture which applies for a license, registration or finding of suitability is required to file only one $5,000.00 application fee, but each individual partner and joint venturer is required to pay investigative fees and each partner or joint venturer shall be jointly and severally liable for the payment of supplemental investigative fees of the other partners or joint venturers. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-227
• Source: Miss. Code Ann. § 75-76-183

Chapter 5 CORPORATE LICENSEES.

13 Miss. Admin. Code Pt. 2, R. 5.1 Definitions

As used in this regulation, the following terms have the following meanings: (a) "Control," "controlling," and "controlled by" mean a relationship between two entities whereby one possesses, indirectly or directly, the power to direct or cause the direction of the management and policies of the other, whether through the ownership of voting securities, by contract, or otherwise. The phrase "under common control with" means two entities which are controlled by the same entity. (b) A person shall be deemed to "own," "hold" or "have" a security of, or interest in, a corporation or other form of business organization if such person has either directly or indirectly, a record or beneficial interest therein. (c) The terms "sale" and "sell" include every contract of sale of, contract to sell, or

disposition of, a security or interest in a security whether or not for value. The terms include an exchange of securities and any material change in the rights, preferences, privileges or restrictions of or on outstanding securities. (d) The term "security" means any interest or instrument commonly known as a "security", including without limitation, any stock, membership in any corporation or association, bond, debenture or other evidence of indebtedness, investment contract, voting trust certificate, certificate of deposit for a security, or any certificate of interest or participation in, temporary or interim certificate for, receipt for or warrant or register to subscribe to or purchase any of the foregoing. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-199

13 Miss. Admin. Code Pt. 2, R. 5.2 Individual Licensing Of Shareholders Of Corporate Licensee

(a) Except as provided in subsection (b), each individual must be found suitable to hold a gaming license before he may: 1. Own an equity security issued by a corporate licensee, or 2. Hold any security issued by a corporate licensee which gives the holder voting rights in the corporation. (b) This section does not apply to any employee who owns stock through a stock bonus plan, pension plan, or other employee benefit program established by the licensee, so long as the plan is administered by the licensee or the trustee or the administrator of the plan is found suitable by the Commission, and so long as the employee does not hold legal title to the security for any longer than is reasonably necessary to facilitate the transfer to the plan and does not exercise any voting rights or receive any dividends during such period. Notwithstanding the foregoing, the Commission may require any person holding a beneficial interest in such a plan to be found suitable. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-211

13 Miss. Admin. Code Pt. 2, R. 5.3 Procedure For Complying With Miss

Code Ann. §75-76-213. The reports required pursuant to Miss. Code Ann. §75-76-213 shall consist of applications signed by the President and the Secretary of the corporate licensee on a form provided by the Executive Director. The information required on the form shall include, but not be limited to, the following information: (a) The name, address and telephone number of the applicant. (b) If the report is being filed pursuant to Miss. Code Ann. §75-76-213, the name, address, and telephone number of any person to whom a security is being issued or transferred, the current ownership of the corporation, and the future ownership of the corporation if the issuance or transfer of the securities is approved. (c) If the application is made pursuant to subsection 2 Miss. Code Ann. §75-76-213, the name, address, telephone number, and capacity of the corporate officer or director. If the new officer or director is replacing a former officer or director, the name, address, telephone number and capacity of the former officer or director, and a statement regarding the reason for the change in officers or directors.

(d) A complete and accurate application for licensing filed on behalf of the person to whom any security is being issued or transferred or any new officer or director of the corporation. The Executive Director shall investigate the person to whom the corporate licensee proposes to issue or transfer any security or the proposed new corporate officer or director and make a recommendation to the Commission with regard to the licensing of the proposed stockholder, officer or director. If the Commission licenses the proposed stockholder, officer or director, the issuance or transfer of the security or the change in corporate officers or directors is deemed approved. If the Commission denies such license or if the Executive Director permits withdrawal of the application upon the request of the applicant, then the transfer or issuance of the security or the change of officers or directors is disapproved. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-213

13 Miss. Admin. Code Pt. 2, R. 5.4 Compliance With Miss

Code Ann. §75-76-211. (a) The Commission may request persons, affiliated entities and greater than 5% equity owners to submit an application for finding of suitability pursuant to Miss. Code Ann. Section 75-76-211 (1972). (b) Any person, entity and greater than 5% equity owner required or requested to submit an application for finding of suitability to the Commission must submit such within the thirty (30) days provided by Miss. Code Ann. §75-76-211. The term Entity includes, but is not limited to, corporation, general partnership, limited partnership, limited liability company, revocable trust and irrevocable trust. (c) Any person, entity and greater than 5% equity owner may be found unsuitable by the Commission and it shall constitute grounds for denial of any subsequent application by such person, entity and greater than 5% equity owner. The corporate licensee may be deemed to have failed to require the submission of an application for finding of suitability by such person, entity and greater than 5% equity owner in violation of Miss. Code Ann. §75-76-211. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-211

13 Miss. Admin. Code Pt. 2, R. 5.5 Approvals Required

The following transactions involving corporate licensees are ineffective unless approved in advance by the Commission: (a) Any act or transaction by virtue of which any other corporation or other form of business organization becomes a controlled affiliate of a corporate licensee; (b) Any act or transaction by virtue of which any other corporation or other form of business organization becomes under common control with a corporate licensee, unless the corporation or other business organization is wholly owned by a licensee, by persons who are licensed or who have been found suitable with respect to ownership of the corporate licensee, or by any combination thereof; (c) The imposition of any restriction on the transfer of an equity security issued by a corporate licensee, whether imposed by the issuer or by the holder or by any other person, except the following:

1. Any restriction on resale which is required for compliance with the Federal Securities Act, or the Federal Securities Exchange Act, or a general securities law of any state; 2. Any restriction which results from a "stop transfer order" given to a transfer agent by the holder of a security on the grounds that the certificate has been lost or stolen; and 3. Any restriction which arises from a binding contract to sell or hypothecate a security in a current transaction which will be consummated, if at all, in nine months or less. (d) Any guarantee of securities issued by a corporate licensee pursuant to a public offering or private placement and any hypothecation of assets by a corporate licensee to secure the payment or performance of obligations evidenced by securities issued pursuant to a public offering or private placement, except where continuous or delayed approval has been granted pursuant to Part 2, Rule 8.7. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-211

13 Miss. Admin. Code Pt. 2, R. 5.6 Statement Of Restrictions On Equity Securities

The statement required by Mississippi Code Annotated 75-76-207 shall be substantially as follows: (a) “The sale, assignment, transfer, pledge or other disposition of this security is ineffective unless approved in advance by the Mississippi Gaming Commission. If at any time such commission finds that an owner of this security is unsuitable to continue to have an involvement in gaming in such state, such owner must dispose of such security as provided by the laws of the State of Mississippi and the regulations of the Mississippi Gaming Commission thereunder. Such laws and regulations restrict the right under certain circumstances: 1. To pay or receive any dividend or interest upon such security; 2. to exercise, directly or through any trustee or nominee, any voting right conferred by such security; or 3. to receive any remuneration in any form from the corporation, for services rendered or otherwise.” (Adopted: 08/20/1998.)

History

• Source: Miss. Code Ann. § 75-76-211

Chapter 6 LIMITED PARTNERSHIP LICENSEES.

13 Miss. Admin. Code Pt. 2, R. 6.1 Definitions

As Used In This Regulation: (a) "Contribution" means cash, property, services rendered, or a promissory note or other binding obligation to contribute cash or property or to perform services, which a partner contributes to a limited partnership in his capacity as a partner. (b) "Delayed licensing" means an approval granted by the Commission to a limited partner of a limited partnership licensee, enabling the limited partner to receive a share or

percentage of revenues derived in the conduct of gaming prior to the limited partner being licensed. (c) "Foreign limited partnership" means a partnership formed under the laws of any state of the United States other than this state or any foreign country and having as its partners one or more general partners and one or more limited partners. (d) "Partnership agreement" means any valid, written agreement of the partners as to the affairs of a limited partnership and the conduct of its business. (e) "Capital account" means a particular limited partner's contribution plus the limited partner's proportionate share of the income of the limited partnership licensee, minus the limited partner's proportionate share of any of the losses of the limited partnership licensee and any distributions to the limited partner. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-199

13 Miss. Admin. Code Pt. 2, R. 6.2 Required Provisions And Certificate Of Limited Partnership

Pursuant to Miss. Code Ann. §75-76-223, the following provisions must be included in the Certificate of Limited Partnership of every limited partnership that applies for or holds a state gaming license: (a) "Notwithstanding anything to the contrary, expressed or implied in this agreement, the sale, assignment, transfer, pledge, or other disposition of any interest in the partnership is void unless approved in advance by the Commission. If at any time the Commission finds that an individual owner of any such interest is unsuitable to hold that interest, the Commission shall immediately notify the partnership of that fact. The partnership shall, within ten (10) days from the date that it receives the notice from the Commission, return to the unsuitable owner the amount of his capital account as reflected on the books of the partnership. Beginning on the date when the Commission serves notice of a determination of unsuitability, pursuant to the preceding sentence, upon the partnership, it is unlawful for the unsuitable owner: (b) To receive any share of the profits or distributions of any cash or other property other than a return of capital as required above; (c) To exercise, directly or through any trustee or nominee, any voting right conferred by such interest; or (d) To receive any remuneration in any form from the partnership, for services rendered or otherwise. Any limited partner granted delayed licensing that is later found unsuitable by the Commission shall return all evidence of any ownership in the limited partnership to the limited partnership, at which time the limited partnership shall return to the unsuitable limited partner the amount of his capital account, and the unsuitable limited partner shall no longer have any direct or indirect interest in the limited partnership." (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-223

13 Miss. Admin. Code Pt. 2, R. 6.3 Delayed Licensing Of Limited Partners

Miss. Code Ann. §75-76-219 and this regulation, the Commission may waive licensing of certain limited partners and, in lieu thereof, grant approval of delayed licensing for a limited

partner. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-219

13 Miss. Admin. Code Pt. 2, R. 6.4 Eligibility For Delayed Licensing

(a) A limited partnership that holds or has applied for a gaming license may file an application for approval of delayed licensing of its limited partners. (b) Only limited partners whose aggregate effective ownership percentage in the limited partnership is less than ten percent (10%) will be considered for delayed licensing approval. For purposes of determining aggregate effective ownership percentage, an applicant who owns any part of a legal entity that is a limited partner shall be deemed to have the percentage ownership interest held by the legal entity, in addition to the percentage ownership that the applicant holds directly. (c) A general partner is not eligible for delayed licensing. (d) If the Commission rules that a limited partnership is eligible for delayed licensing of its limited partners, the Commission shall direct the Executive Director, based upon such investigation as he deems appropriate, to recommend to the Commission which of the limited partners who have applied for delayed licensing, if any, should be granted delayed licensing. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-227

13 Miss. Admin. Code Pt. 2, R. 6.5 Application For Delayed Licensing By Individual Limited Partners

Once a limited partnership has been found eligible for delayed licensing pursuant to Rule 6.4, each limited partner seeking delayed licensing shall file an application for delayed licensing pursuant to Rule 6.6 of this regulation. A limited partner may file an application for delayed licensing prior to the Commission's ruling on the eligibility of the limited partnership, but the application will not be considered by the Executive Director and Commission until the Commission rules that the limited partnership is eligible for delayed licensing. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-227

13 Miss. Admin. Code Pt. 2, R. 6.6 Procedure For Consideration Of Application For Delayed Licensing

Any application for delayed licensing, whether by the limited partnership pursuant to Rule 6.4, or by an individual limited partner pursuant to Rule 6.5 of this regulation, shall be made to the Executive Director on forms furnished by the Executive Director. The Executive Director shall investigate the applicant and make a recommendation to the Commission which shall determine whether to grant or deny the application for delayed licensing. The Executive Director has full and absolute power and authority, to the extent permitted by law, to recommend the granting, denial, limitation, conditioning or restriction of any application for delayed licensing required or permitted by law or this regulation for any cause deemed reasonable by the Executive Director. The Commission shall have full and absolute power and authority to grant, deny, limit, condition, or restrict any application for delayed licensing

required or permitted by the Act or this regulation for any cause deemed reasonable by the Commission. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-227

13 Miss. Admin. Code Pt. 2, R. 6.7 Information To Be Provided By Applicants For Delayed Licensing

In addition to the information required by Miss. Code Ann. §75-76-73 and Rule 6.2 of these regulations, each limited partner applying for approval of delayed licensing shall provide the following information: (a) A listing of any other business interests between the applicant and any general partner or any other limited partner existing prior to, at the time of, or after the formation of the limited partnership. (b) Whether the applicant has a familial relationship, either by blood, marriage or adoption, with a general partner or any other limited partner. (c) A certification that the applicant does not have and will not have a material relationship to, or material involvement with, a general partner of the limited partnership with respect to the operations of the limited partnership. A person may be deemed to have a material relationship to, or material involvement with, a general partner if he is a shareholder, controlling person or key employee of a legal entity that is a general partner, or if, as an agent, consultant, advisor, or otherwise, he exercises a significant influence upon the management or affairs of such general partner. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-225

13 Miss. Admin. Code Pt. 2, R. 6.8 Standards

The Executive Director shall consider all relevant facts in recommending and the Commission shall consider all relevant facts in determining whether to grant an approval of delayed licensing to a limited partnership, and thereafter to a limited partner. Without limiting the generality of the foregoing, the Executive Director and Commission shall consider the effects of the action or approval requested by the applicant, the benefits for the State of Mississippi and the following: (a) The effect of granting delayed licensing and the benefits, if any, to the State of Mississippi. (b) Whether the applicant, either individually or in conjunction with other limited partners, has any direct or indirect control or significant influence over a general partner, or the management of the limited partnership's business or gaming operation, or the ability to acquire such control. (c) Whether the limited partnership agreement has clear and specific provisions restricting the priority rights of the limited partnership with respect to income, losses, or other distributions, during the term of the limited partnership or upon its dissolution, of limited partners seeking delayed licensing; vesting in the general partner(s) the sole and exclusive right to manage and control the partnership's business; defining the scope of the general partner(s)' authority and any limitations thereon; restricting the right of limited partners to remove or elect general partners, except to the extent necessary to

elect a general partner upon the retirement, death, or disability of a general partner who is a natural person; and whether any additional assessment or capital contribution can be required of the limited partners. (d) Whether the applicant has, or has had a material relationship with a general partner. Without limiting the generality of the foregoing an applicant who has a familial relationship, either by blood, marriage or adoption, to a general partner may be deemed to have such a material relationship. (e) The commonality of business interests between a general partner and any limited partners prior to, or existing at, formation of the limited partnership. (f) Whether the applicant had a key role in forming the limited partnership. (g) The relative level of risk for each general and limited partner. (h) The business probity of each general partner, in gaming or otherwise. (i) The presence or absence of restrictions on the limited partners. (j) Whether a substantial portion of the assets of the limited partnership were owned by the applicant and other limited partners prior to formation of the limited partnership. (k) Whether a substantial portion of the depreciable assets involved in the proposed gaming operation will be owned by the limited partnership or leased or loaned to the limited partnership by one more limited partners. (l) Whether a limited partner has guaranteed any obligation of the limited partnership. (m) The number of persons and entities involved in the limited partnership. The Commission will not ordinarily grant delayed licensing status to a limited partnership with fewer than ten (10) limited partners. (n) The various percentage ownership interests in the limited partnership. (o) The terms of any agreements which provide for a buy-out of a limited partner's interest in the event the limited partner is found unsuitable for licensing. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-211

13 Miss. Admin. Code Pt. 2, R. 6.9 Post Approval Monitoring After Approval Of Delayed Licensing

The partnership agreement of a limited partnership that seeks delayed licensing must obtain language to the effect that the licensing of any limited partner granted delayed licensing may be activated at any time pursuant to this regulation. The granting of delayed licensing to a limited partner by the Commission shall be a revocable approval. The Executive Director and Commission shall not relinquish jurisdiction. Any limited partner receiving approval for delayed licensing from the Commission has no legal vested right or privilege inherent in that approval, nor shall the limited partners that have been granted delayed licensing accrue any privilege in the licensing of the limited partnership. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-225

13 Miss. Admin. Code Pt. 2, R. 6.10 Powers Of The Executive Director And Commission After Delayed Licensing Approval

After granting delayed licensing to any limited partner, the Executive Director and Commission may exercise, without limitation, any of the following powers:

(a) The Executive Director may at any time recommend to the Commission that the Commission activate the licensing process for any limited partner granted delayed licensing. Without limiting the generality of the foregoing, the Executive Director may recommend that the licensing of any limited partner be activated if he believes that: 1. A limited partner has thereafter developed a material relationship with or to a general partner; 2. A limited partner, individually or in conjunction with other limited partners, has acquired the ability to exercise significant control or influence over the management of the limited partnership's gaming operations or business affairs; 3. A limited partner, individually or in conjunction with other limited partners, has exercised, for any reason, significant control or influence over the management of the limited partnership's gaming operations, either directly or indirectly, even if such control is contemplated or authorized by the partnership agreement; 4. There is reason to believe that the limited partner cannot demonstrate its suitability pursuant to the provisions of Miss. Code Ann. §75-76-67; 5. The aggregate effective ownership percentage held by a limited partner granted delayed licensing has increased to ten percent (10%) or more; or 6. Any other cause he deems reasonable. (b) The Commission, after considering the recommendation of the Executive Director, may activate the licensing process for any limited partner granted delayed licensing at any time. (c) The Commission may, at the time it grants delayed licensing to a limited partner, delegate to the Executive Director the authority to activate, without Commission approval, the licensing process for any particular limited partner. (d) The Executive Director may issue an order requiring the escrow of funds, profits, or other monies due any limited partner granted delayed licensing from the licensed limited partnership for any cause deemed reasonable. Any such escrow ordered by the Executive Director automatically terminates at the conclusion of the next regular Commission meeting unless: 1. The Executive Director recommends that the Commission activate the licensing process for the limited partner that is the subject of the order; 2. The Executive Director delays a determination of whether he should recommend that the licensing process be activated at the request of the limited partner who is the subject of the order; or 3. The Executive Director activates the licensing process pursuant to a delegation of authority from the Commission. (e) Any escrow ordered by the Executive Director pursuant to Subsection (d) automatically terminates if the Commission decides not to activate the licensing process for the limited partner that is the subject of the order or if the Commission licenses the limited partner. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-219

13 Miss. Admin. Code Pt. 2, R. 6.11 Delayed Licensing Approval Not Transferable

Delayed licensing approval shall be personal to the limited partner granted delayed licensing. A limited partner's interest that is held under delayed licensing may not be transferred,

assigned, encumbered or hypothecated in any manner without the prior approval of the Commission, upon recommendation of the Executive Director. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-219

Chapter 7 HOLDING COMPANIES

13 Miss. Admin. Code Pt. 2, R. 7.1 Escrow Of Securities

If the Executive Director files a complaint for disciplinary action against any holding company, affiliated licensee, or officer, director or shareholder of any holding company or affiliated licensee, or calls any such person forward for a finding of suitability, the Commission may order that securities issued by a holding company or affiliated licensee be placed in escrow on specified terms and conditions during the pendency of the disciplinary or licensing proceeding. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-237

13 Miss. Admin. Code Pt. 2, R. 7.2 Compliance With Miss

Code Ann. §75-76-237. The Commission may determine that a holding company has failed to comply with Miss. Code Ann. §75-76-237 and is therefore subject to disciplinary action, if any holding company or intermediary company: (a) Pays the person found unsuitable pursuant to Miss. Code Ann. §75-76-237 any dividend or interest upon any securities or any payment or distribution of any kind whatsoever; (b) Recognizes the exercise by any such unsuitable person, directly or indirectly, or through any proxy, trustee or nominee, of any voting right conferred by any securities or interest in any securities; (c) Pays to any such unsuitable person any remuneration in any form, for services rendered or otherwise, or permits the affiliated gaming licensee to make any such payment; or (d) Makes any other payment or distribution, of any kind whatsoever, in respect to any such security or interest by way of, or pursuant to payment of principal, redemption, conversion, exchange or liquidation or any other transaction. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-237

13 Miss. Admin. Code Pt. 2, R. 7.3 Rule 7.3

Approval By Commission Required For All Issues Or Transfers By A Holding Company Or Intermediary Company Of Its Securities. No holding company shall issue or transfer any security of which it is the issuer without the prior approval of the Commission. Every approval required by this regulation shall be sought by the filing of an application signed by the President or a Vice-President, and the Secretary or Assistant Secretary of the holding company on a form provided by the Executive Director. Information required on the form shall include, but not be limited to, the following information: (a) The name, address and telephone number of the holding company; (b) The name, address and telephone number of any person to whom the security is being issued or transferred;

(c) Current ownership of the holding company, and future ownership of the holding company for which the issuance or transfer of securities is approved; and (d) The names of all licensed gaming establishments in which the holding company owns any interest. The Executive Director shall investigate the person to whom the holding company proposes to issue or transfer any security and make a recommendation to the Commission with regard to the licensing of the proposed transferee. If the Commission licenses the proposed transferee, issuance or transfer of the securities is deemed approved. If the Commission denies such license or if the Executive Director permits withdrawal of the application upon the request of the applicant, then the transfer or issuance of the security is disapproved. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-237

13 Miss. Admin. Code Pt. 2, R. 7.4 Rule 7.4

Licensing Of General Partners Of Limited Partnership Holding Companies And Officers And Directors Of Corporate Holding Companies. Each general partner of a limited partnership holding company and each officer and director of a corporate holding company must be licensed before the limited partnership or corporation may become a holding company. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-227

13 Miss. Admin. Code Pt. 2, R. 7.5 Certain Transactions Prohibited

(a) Except as permitted by subsection (b), no restrictions on the transfer of an equity security issued by a holding company, whether imposed by the issuer or by the holder or by any other persons, shall be effective for any purpose whatsoever unless such restrictions are approved in advance by the Commission or unless such restrictions are otherwise required by the Act or these regulations. No agreement not to encumber an equity security issued by a holding company shall be effective for any purpose whatsoever unless such agreement is approved in advance by the Commission. (b) The following restrictions on the transfer of a security are permitted without the necessity of prior approval pursuant to subsection (a): 1. Any restriction on resale which is required for compliance with the Federal Securities Act, or the Federal Securities Exchange Act, or a general securities law that states; 2. Any restriction which results from a "stock transfer order" given to a transfer agent by the holder of a security on the grounds that a certificate has been lost or stolen; and 3. Any restriction which results from a binding contract to sell or hypothecate a security in a current transaction which will be consummated if at all in nine (9) months or less. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-201, 75-76-207, 75-76-247

13 Miss. Admin. Code Pt. 2, R. 7.6 Certain Payees

Any person who receives payments from a holding company computed on the basis of the earnings or profits of a holding company, or on the basis of the receipts from gaming of an affiliated licensee of such holding company, may be required to be found suitable. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-57

13 Miss. Admin. Code Pt. 2, R. 7.7 Exclusion Of Publicly Traded Corporations

Part 2 Chapter 7 shall not apply to publicly traded corporations who have publicly traded equity securities. Part 2 Chapter 7 shall apply to publicly traded corporations whose registration is based solely on publicly traded debt securities. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-57

Chapter 8 PUBLICLY TRADED CORPORATIONS

13 Miss. Admin. Code Pt. 2, R. 8.1 Definitions

(a) "Corporate acquisition opposed by management" means an attempt to acquire control of a publicly traded corporation that is an affiliated company by means of a tender offer that is opposed by the board of directors of the affiliated company. (b) "Current market price" means the average of the daily closing prices for the 20 consecutive trading days immediately preceding the date of a transaction or the closing price on the day immediately preceding the date of such transaction, whichever is higher. For the purpose of this definition, the closing price for each day shall be the last reported sale price, regular way, or in case no such reported sale takes place on such date, the average of the last reported bid and asked prices, regular way, in either case on the principal national securities exchange registered under the Securities Exchange Act of 1934 on which such security is admitted to trading or listed, or if not listed or admitted to trading on any national securities exchange, the closing price of such security, or in case no reported sale takes place, the average of the closing bid and asked prices, on GNOSTIC or any comparable system, or if such security is not listed or quoted on GNOSTIC or any comparable system, the closing sale price, or in case no reported sale takes place, the average of the closing bid and asked prices, as furnished by any member of the National Association of Securities Dealers, Inc., selected from time to time by the issuer for that purpose. (c) "Exceptional repurchase of securities" means the direct or indirect purchase by a corporation of securities representing beneficial ownership of more than one percent (1%) of its voting securities, whether in a single transaction or a series of related transactions, at a price more than ten percent above the current market price of such securities on the date of the agreement to purchase such securities from any person, other than a person who has been an executive officer or a member of the board of directors for at least the past two years, who, on the date of the agreement to purchase, is the beneficial owner of more than three percent of the voting securities of such corporation and has been the beneficial owner of more than three percent of such securities for less

than one year, unless such purchase has been approved by the affirmative vote of a majority of the holders of voting securities [voting on the transaction] exclusive of the selling security holder, or is pursuant to the same offer and terms as made to all holders of voting securities of such class, other than holders, if any, who have consented in writing to be excluded from the class of offerees, executive officers, or members of the board of directors. For the purpose of this definition, when determining whether a corporation has purchased more than one percent of its voting securities, the amount of voting securities of such corporation shall be deemed to include voting securities issuable pursuant to purchase rights where the price of the purchase rights is less than the current market price of such securities on a given determination date provided, however, that in any event, the amount of such voting securities beneficially owned by a selling security holder pursuant to purchase rights shall be included to determine the amount of the corporation's voting securities for purposes of such computation if not otherwise included based on the foregoing provision. (d) "Executive officer" with respect to a publicly traded corporation, means the president, secretary, treasurer, any vice president in charge of a principal business function (such as sales, administration or finance) and any other person who performs similar policy- making functions for a publicly traded corporation. (e) "Federal Securities Act" means Title 15 United States Code sections 77a-77aa, as amended from time to time, and the rules and regulations of the United States Securities and Exchange Commission now or hereafter promulgated thereunder. (f) "Federal Securities Exchange Act" means Title 15 United States Code section 78a-78kk, as amended from time to time, and the rules and regulations of the United States Securities and Exchange Commission now or hereafter promulgated thereunder. (Adopted: 09/25/2000.) (g) "Full disclosure" with respect to a transaction or to a series of transactions means a descriptive statement thereof which contains all material facts, and which contains no false or misleading declarations of material fact. (Adopted: 10/27/2005.) (h) "Plan of recapitalization" means a plan proposed by the board of directors of a publicly traded corporation that is an affiliated company, which plan: 1. Contains recommended action in response to a corporate acquisition opposed by management, which acquisition cannot be consummated until approval has been obtained pursuant to Section 14, and which acquisition has not been consummated, withdrawn or terminated; 2. Involves either a cash dividend to voting securities or an exchange of voting securities held by security holders in return for a payment of cash or the issuance of securities of the issuer or a combination of cash and securities of the issuer, with an aggregate value in excess of fifty percent of the aggregate current market price of the voting securities of the company on the day of the public announcement of the plan of recapitalization; and 3. Is financed in substantial part by borrowing from financial institutions or the issuance of debt securities. (i) "Public offering" means a sale of securities that is subject to the registration requirements of section 5 of the Federal Securities Act, or that is exempt from such requirements solely by reason of an exemption contained in section 3(a)10, 3(a)11 or 3 (c) of said Act or

Regulation A adopted pursuant to section 3(b) of said Act. (j) "Purchase rights" means a security or contractual right in securities issued or issuable on the exercise of options, warrants or other beneficial interest in securities obtained for value upon the issuance of securities, or on conversion of other securities. (k) "Speculative securities" means: 1. Securities, the value of which depends substantially upon proposed or promised future promotion or development rather than on material existing assets, conditions or operating results; or 2. Securities, an investment in which involves an extraordinary risk of loss to the investor. (l) "Tender offer" means a public offer by a person other than the issuer to purchase voting securities of a publicly traded corporation that is an affiliated company, made directly to security holders for the purpose of acquiring control of the affiliated company. (m) "Voting security" means a security the holder of which is entitled to vote for the election of a member or members of the board of directors or board of trustees of a corporation or a comparable person or persons in the case of a partnership, trust or other form of business organization other than a corporation. (Adopted: 09/25/1991; Amended: 09/25/2002; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. §§ 75-76-199, 75-76-21

13 Miss. Admin. Code Pt. 2, R. 8.2 Powers Of Commission And Executive Director

(a) Without in any way limiting the generality of the provisions of the Act, in connection with any recommendation or action, the Executive Director or Commission may provide: 1. That a time period be accelerated or extended; or 2. That as a condition to the processing of an application or to the granting of an approval: i. An application be supplemented in any particular and to any extent either before or after the Commission has acted thereon; ii. An applicant or other person urging the approval or denial of an application appear personally before the Executive Director and Commission and submit to interrogation under oath or otherwise; iii. Funds, securities, instruments or agreements be placed in escrow upon specified conditions; iv. A transaction be in compliance with the applicable laws and regulations of any federal, state, or local governmental entity or agency; v. A transaction be approved by an applicant's board of directors; vi. An opinion of an applicant's legal counsel be furnished to the Commission; vii. An opinion of an applicant's auditors be furnished to the Commission; viii. All or any portion of an application be examined or evaluated by a consultant to the Commission at the expense of the applicant. (b) The Commission has the power to delegate to the Executive Director, in its order granting approval, the power to issue an interlocutory stop order. The interlocutory stop order may be issued for any cause deemed reasonable by the Executive Director. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-21, 75-76-27

13 Miss. Admin. Code Pt. 2, R. 8.3 Commission Review Of Stop Orders

If a stop order is issued by the Executive Director pursuant to the provisions of this regulation, the Commission shall, upon request of the person that is the subject of the order, conduct a hearing on the merits of the matter no later than its next regular meeting for which notice of the hearing pursuant to Mississippi Law is practicable. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-21, 75-76-27

13 Miss. Admin. Code Pt. 2, R. 8.4 Standards For Action By Executive Director And Commission

The Executive Director and Commission will consider all relevant material facts in determining whether to recommend or grant an approval required or permitted by this regulation. The Executive Director and Commission may consider not only the effects of the action or approval requested by the applicant, but whatever other facts are deemed relevant, including but not limited to the following: (a) The business history of the applicant, including its record of financial stability, integrity, and success of its operations; (b) The current business activities and interests of the applicant, as well as those of its executive officers, promoters, lenders, and other sources of financing, or any other individuals associated therewith; (c) The current financial structure of the applicant, as well as changes which could reasonably be anticipated to occur to such financial structure as a consequence of the proposed action of the applicant; (d) The gaming-related goals and objectives of the applicant, including a description of the plans and strategy for achieving such goals and objectives; (e) The relationship between such goals and objectives and the requested approval; (f) The adequacy of the proposed financing or other action to achieve the announced goals and objectives; (g) The present and proposed compensation arrangement between the applicant and its directors, executive officers, principal employees, security holders, lenders, or other sources of financing; (h) The equity investment, commitment or contribution of present or prospective directors, officers, principal employees, investors, lenders, or other sources of financing; (i) The dealings and arrangements, prospective or otherwise, between the applicant and any investment bankers, promoters, finders or lenders, and other sources of financing; (j) The effect of the proposed action on existing and prospective security holders of the applicant, both before and after the intended action; (k) Whether the applicant has made full and complete disclosure of all material facts relative to the proposed action to the Executive Director and the Commission and made provision for such disclosure to all prospective security holders; (l) Whether the proposed action tends not to work a fraud upon the public; (m) Whether a proposed public offering contains speculative securities; (n) Whether a proposed transaction will create a significant risk that the publicly traded corporation and its affiliated companies will not:

1. satisfy their financial obligations as they become due; or 2. satisfy all financial and regulatory requirements imposed by the Act and these regulations. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-29

13 Miss. Admin. Code Pt. 2, R. 8.5 Corporate Licensees

(a) A publicly traded corporation is not eligible to apply for or hold a state gaming license or manufacturer’s, seller's, or distributor's license. A publicly traded corporation may be found suitable to acquire or hold an interest in a corporate licensee. (b) A person shall not make a public offering of any security issued by a corporate licensee. (c) The provisions of subsection (b) do not prevent a corporate licensee from guaranteeing a security issued by an affiliated company pursuant to a public offering, nor from hypothecating its assets to secure the payment or performance of the obligations evidenced by a security issued by an affiliated company pursuant to a public offering, provided that the prior approval of the Commission is obtained. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-71

13 Miss. Admin. Code Pt. 2, R. 8.6 Public Offerings Of Affiliated Companies

Prior approval of the Commission is required for any public offering of any securities of an affiliated company: (a) Which is not a publicly traded corporation if the securities will be offered by such an affiliated company or by a controlling person thereof. (b) Which is a publicly traded corporation if the securities will be offered by such affiliated company and if such securities or the proceeds from the sale thereof are intended to be used: 1. To pay for construction of gaming facilities in Mississippi to be owned or operated by the affiliated company or a subsidiary of the affiliated company; 2. To acquire any direct or indirect interest in gaming facilities in Mississippi; 3. To finance the operation by the affiliated company or a subsidiary of such affiliated company of gaming facilities in Mississippi; or 4. To retire or extend obligations incurred for one or more such purposes. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-53

13 Miss. Admin. Code Pt. 2, R. 8.7 Continuous Or Delayed Public Offerings

(a) An affiliated company which is a publicly traded corporation may apply for approval of a continuous or delayed public offering of its securities if such an affiliated company: 1. Has a class of securities listed on either the New York Stock Exchange, the American Stock Exchange, the National Association of Securities Dealers Automatic Quotation System, or other equivalent domestic or foreign stock exchanges which are regulated in a manner which is determined to protect

investors and the State of Mississippi; or has stockholders' equity in an amount of $15 million or more as reported in its most recent report on Form 10-K or Form 10-Q filed with the United States Securities and Exchange Commission immediately preceding the application; and 2. Has filed all reports required to be filed by section 13 or section 15(d) of the Federal Securities Exchange Act during the preceding 12 months, or for such a shorter period that such affiliated company has been required to file such reports. (b) The Commission may grant approval of a continuous or delayed offering for a period of up to three years. An approval granted pursuant to this regulation does not constitute an approval of other related transactions for which separate Commission or Executive Director approval is otherwise required by the Act or these regulations. (c) If an application is approved, the affiliated company shall notify the Executive Director of its intent to make the public offering and identify the type and amount of securities it proposes to sell and the date on which it is anticipated the sale will occur. If such notification is not written, it must be followed, as soon as practicable, with a written confirmation which need not precede such sale. (Adopted: 09/25/1991; Amended: 07/16/1998; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. § 75-76-53

13 Miss. Admin. Code Pt. 2, R. 8.8 Certain Public Offerings And Stockholder Approvals

The Commission may find a publicly traded corporation unsuitable to be a holding company of a corporate license if at a time when the applicant was not subject to the jurisdiction of the Commission it obtained the approval or consent of its stockholders to have a material involvement with gaming in the State of Mississippi, and in connection with such offering, approval or consent, it did not make a full disclosure of all material facts to the offerees or its stockholders relating to such material involvement including, without limitation, a description of the nature and scope of the state and applicable local laws of Mississippi regarding gaming control. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-53

13 Miss. Admin. Code Pt. 2, R. 8.9 Approval Of Securities Issuable On Exercise Of Options Or Warrants Or Conversion Of Other Securities

If the Commission approves a public offering of securities which involves securities issuable on exercise of purchase rights, such approval is deemed continuing for the entire period of it's exercise or convertibility and further approval is not required for the actual issuance of such securities. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-5

13 Miss. Admin. Code Pt. 2, R. 8.10 Application For Approval Of Public Offering

A person applying for approval of a public offering pursuant to this section shall make a full disclosure of all material facts relating thereto to the Executive Director and Commission. To

the extent applicable, the application must include the following information: (a) A description of the securities to be offered. (b) The terms upon which the securities are to be offered. (c) The gross and net proceeds of the offering, including a detailed list of expenses. (d) The use of proceeds. (e) The name and address of the lead underwriter and the participating underwriters, if any. (f) The forms of the underwriting agreement, the agreement among underwriters, if any, and the selected dealers agreements, if any. (g) A statement of intended compliance with all applicable federal, state, local and foreign securities laws. (h) The names and addresses of the applicant's general counsel, local counsel, special securities counsel, independent auditors, and any special consultants on the offering. (i) If any securities to be issued are not to be offered to the general public, the names and addresses of the other offerees and the form of the offering thereto. (j) True copies or descriptions of all papers filed with the United States Securities and Exchange Commission and all material communications between the applicant and the United States Securities and Exchange Commission or, if the offering is not subject to the registration requirements of Section 5 of the Federal Securities Act other than by reason of an exemption contained in regulation A adopted pursuant to Section 3 of said Act, copies or description of all papers filed with, and all material communications between the applicant and such other governmental entity charged with securities regulation, if any. A copy of each registration statement and each amendment thereto must be filed with the Executive Director by the end of the next business day after their filing with the United States Securities and Exchange Commission. All other papers required to be included pursuant to this subsection must be filed with the Executive Director as soon as practicable. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-53

13 Miss. Admin. Code Pt. 2, R. 8.11 Coordination

The Executive Director and Commission will ordinarily permit an application for approval of a public offering pursuant to this regulation to be completed over a period of time as documents and information become available in accordance with the normal and customary practice in the securities industry. An application may be filed without all the information required by Rule 8.10 if all such information required by the Executive Director and Commission is supplied prior to the sale of the securities. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-255

13 Miss. Admin. Code Pt. 2, R. 8.12 Approval Of Acquisition Of Control

A publicly traded corporation shall not directly or indirectly acquire control of a corporate licensee or affiliated company, and a person shall not acquire control of a publicly traded corporation which is an affiliated company, without the prior approval of the Commission. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-255

13 Miss. Admin. Code Pt. 2, R. 8.13 Application For Approval Of Acquisitions Of Control

An application for approval of a transaction subject to Rule 8.11 above must contain full disclosure of all material facts relating thereto, and include to the extent applicable: (a) The information required by Miss. Code Ann. §75-76-255(1) (b). (b) The terms and provisions of the contemplated transaction. (c) A statement of any contemplated management and operating changes to be effected after completion of the contemplated transaction, and (d) Copies or descriptions of all material documents and correspondence filed with the United States Securities and Exchange Commission in connection with the contemplated transaction, if any, or, if the transaction is not subject to the Federal Securities Act, copies or descriptions of all material documents and correspondence filed with such other governmental entity charged with securities regulation, if any. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-255

13 Miss. Admin. Code Pt. 2, R. 8.14 Approval Of Plan Of Recapitalization

Except as provided by Rule 8.16 below, a publicly traded corporation that is an affiliated company shall not consummate a plan of recapitalization without the prior approval of the Commission. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-255

13 Miss. Admin. Code Pt. 2, R. 8.15 Approval Of Exceptional Repurchases Of Securities

Except as provided by Rule 8.16 below, a publicly traded corporation that is an affiliated company shall not make an exceptional repurchase of securities without the prior approval of the Commission. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-255

13 Miss. Admin. Code Pt. 2, R. 8.16 Exempt Transactions

Unless otherwise required by the provisions of the Act or these regulations, and notwithstanding the provisions of Rule 8.14 and 8.15 above, the approval of the Executive Director or Commission is not required before a publicly traded corporation that is an affiliated company may repurchase securities issued by such corporation if: (a) The repurchase is made pursuant to contractual rights or arrangements, including without limitation puts and price guarantees, given the issuer of such securities or his designee at the time of the original issuance of the security; (b) The repurchase is made for purposes of compromising a bona fide dispute with a security holder arising from the original issuance of such securities; (c) The repurchase is made pursuant to calls or redemptions of any securities in accordance with the terms and conditions of the governing instruments of such securities;

(d) The repurchase involves securities evidenced by a scrip certificate, order form, or similar document that represents a fractional interest in a share of stock or similar securities; (e) The repurchase is made pursuant to a statutory procedure for the purchase of dissenting security holders' securities; (f) The repurchase is made in order to comply with any court or administrative order; (g) The repurchase is made in accordance with or to effectuate the provisions of any employee compensation arrangement, employee stock plan, or employee benefit program including, without limitation, an employee stock ownership plan or to eliminate or cancel outstanding employee stock options or create a "disposition" for federal income tax purposes as to securities acquired as a result of the exercise of an employee incentive stock option as defined under the Internal Revenue Code; (h) The repurchase involves a transaction or series of related transactions occurring within a fiscal quarter in which the aggregate price of the securities purchased is less than the greater of $1 million or five percent (5%) of the consolidated net worth of the corporation purchasing the securities determined using the most recent audited financial statements of the corporation or the financial statements most recently filed by the corporation with the Securities and Exchange Commission; or (i) The repurchase is made pursuant to a publicly announced open market securities repurchase program in which the price and other terms of sale are not negotiated between the purchaser and seller. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-255

13 Miss. Admin. Code Pt. 2, R. 8.17 Application For Approval Of Recapitalization Plan Or Exceptional Securities Repurchases

An application for approval of a plan of recapitalization subject to Rule 8.14 or an exceptional repurchase of securities subject to Rule 8.15 must contain full disclosure of all material facts relating thereto, and include to the extent applicable: (a) The terms and provisions of the contemplated transaction; (b) A statement of any contemplated management and operating changes to be effected after completion of the contemplated transaction. (c) An analysis showing on a pro forma basis the effect of the transaction on the financial statements of the publicly traded corporation that is an affiliated company. (d) A general description of the source of funds for the purchase and any financing arrangements. (e) Copies or descriptions of all material documents and correspondence filed with the United States Securities and Exchange Commission in connection with the contemplated transaction, if any, or, if the transaction is not subject to the Federal Securities Act, copies or descriptions of all material documents and correspondence filed with any other governmental entity charged with securities regulation. (f) Any other documents, papers, reports, or other information deemed relevant by the Executive Director. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-255

13 Miss. Admin. Code Pt. 2, R. 8.18 Powers Of Commission

The Commission may determine, upon the recommendation of the Executive Director, at the time of initial application by a publicly traded corporation for registration as a holding company or at any time thereafter that the public interest and the purposes of the Act require that any individual who has a material relationship to, or material involvement with, a publicly traded corporation and is subject to the jurisdiction of the Act should apply for a finding of suitability or licensing. A person may be deemed to have a material relationship to, or material involvement with, a corporation if he is a controlling person or key employee of the corporation, or if he, as an agent, consultant, advisor or otherwise, exercises a significant influence upon the management or affairs of the corporation. The foregoing powers of the Commission are not limited to individuals having a formal and direct involvement or relationship with a publicly traded corporation nor to individuals who are beneficial owners of any stated percentage of the outstanding equity securities of a public traded corporation. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-255

13 Miss. Admin. Code Pt. 2, R. 8.19 Beneficial Owners Of Voting Securities

(a) The Commission shall consider the provisions of Miss. Code Ann. §75-76-263 in making its determination as to which beneficial owners of voting securities of publicly traded corporations must or may be required to be found suitable or to be licensed. (b) All rules and regulations of the Securities and Exchange Commission applicable in determining whether a person is the beneficial owner of a particular equity security for purposes of Section 13(d) of the Federal Securities Exchange Act may be considered by, but shall not be binding upon, the Commission in making its determination whether, and the extent to which, a person is the beneficial owner of a voting security for the purposes of Miss. Code Ann. §75-76- 263 of these regulations. (c) Miss. Code Ann. §75-76-263 applies to every person who is, directly or indirectly, the beneficial owner of any voting security in a publicly traded corporation which is registered with the Commission, irrespective of the time of acquisition of such ownership. (d) If any securities of a publicly traded corporation are held in street name, by a nominee, an agent or trust, the publicly traded corporation shall render maximum assistance to the Executive Director, upon his request, to determine the beneficial ownership of such securities. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-263

13 Miss. Admin. Code Pt. 2, R. 8.20 Officers And Employees

(a) The Commission shall require an application for a finding of suitability and may require licensing of any officer or employee of a publicly traded corporation whom the Commission finds to be actively and directly engaged in the administration or supervision of, or any other significant involvement with, the activities of a corporate licensee. (b) The Commission may require an application for licensing or a finding of suitability by any officer or employee of a publicly traded corporation whose application is not

otherwise required pursuant to subparagraph (a) of this regulation and Mississippi Code Annotated §75-76-257, if the Commission determines that the policies of the state regarding gaming would be served by such action. (c) The following officers and employees of the publicly traded corporation are deemed to be actively and directly engaged in the administration or supervision of, and significantly involved with, the activities of the corporate licensee and therefore are required to be licensed or found suitable: 1. Each employee who is involved in gaming and who is also a director of the publicly traded corporation; and 2. The president, any person performing the function of principal executive officer or principal operating officer, the principal accounting officer, and secretary. (Adopted: 09/25/1991; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. §§ 75-76-263

13 Miss. Admin. Code Pt. 2, R. 8.21 Directors

(a) The Commission shall require an application for a finding of suitability and may require licensing of any director whom the Commission finds to be actively, and directly engaged in the administration or supervision of the gaming activities at a licensed gaming establishment of a licensee. (b) The Commission may require an application for licensing or finding of suitability by any director of a publicly traded corporation whose application is not otherwise required by subparagraph (a) of this regulation and Mississippi Code Annotated §75-76-257, if the Commission determines that the policies of the state regarding gaming would be served by such action. (c) The following persons of the publicly traded corporation are deemed to be actively and directly engaged in the administration or supervision of the gaming activities of the licensee and therefore are required to be licensed or found suitable: 1. Each person who serves as chairman of the board of directors; 2. Each person who, individually or in association with others, is the beneficial owner of greater than five percent (5%) of any class of voting securities of the registered publicly traded corporation for which he serves as a director; 3. Each person, whether as director or otherwise, who serves on the executive committee of the board of directors, or who serves on any comparable committee to which is delegated the authority of the board of directors to act in any matter involving the activities of a licensee; and 4. Each person who has a vote on any issue before the Board of Directors who is also an employee of the corporation. (d) The following persons of the publicly traded corporation are deemed to be actively and directly engaged in the administration or supervision of the gaming activities of the licensee and therefore are required to complete an application for suitability which will be reviewed and in the Commission’s determination may be subject to a full finding of suitability investigation: 1. Each person, whether as director or otherwise, who serves as the Chairman on the audit committee; and 2. Each person, whether as director or otherwise, who serves as the Chairman on the

compliance committee. (Adopted: 09/25/1991; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. § 75-76-263

13 Miss. Admin. Code Pt. 2, R. 8.22 Appointments And Elections

Except in a transaction subject to Rule 8.12 which involves a change of control of a publicly traded corporation as a whole, an individual may be appointed or elected to a position described in Rules 8.20 or 8.21 without the prior approval of the Commission and may occupy the position and exercise the authority and duties thereof until otherwise ordered by the Commission. The Commission may impose stricter requirements, including a requirement of prior approval, on any publicly traded corporation or with respect to any individual at any time. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-263

13 Miss. Admin. Code Pt. 2, R. 8.23 Institutional Investors

(a) “Institutional investor” means: 1. A bank as defined in Section 3(a)(6) of the Federal Securities Exchange Act; 2. An insurance company as defined in Section 2(a)(17) of the Investment Company Act of 1940, as amended; 3. An investment company registered under Section 8 of the Investment Company Act of 1940, as amended; 4. An investment advisor registered under Section 203 of the Investment Advisors Act of 1940, as amended; 5. Collective trust funds as defined in Section 3(c)(11) of the Investment Company Act of 1940, amended; 6. An employee benefit plan or pension fund that is subject to the Employee Retirement Income Security Act of 1974, as amended, excluding an employee benefit plan or pension fund sponsored by a corporation registered with the Commission; 7. A state or federal government pension plan; 8. A group comprised entirely of persons specified in (1) through (7); or 9. Such other persons as the Commission may determine for reasons consistent with the policies expressed in the Mississippi Gaming Control Act. To qualify as an institutional investor, a person other than a state or federal government pension plan must meet the requirements of a “qualified institutional buyer” as defined in Rule 144A of the Federal Securities Act. (b) An institutional investor that becomes or intends to become subject to Mississippi Code Annotated §75-76-263(3) as a result of its beneficial ownership of voting securities of a corporation licensed or registered with the Commission may apply to the Executive Director for a waiver of the requirements of Mississippi Code Annotated §75-76-263(3) with respect to the beneficial ownership of the voting securities of such corporation if such institutional investor holds the securities for investment purposes only; provided, however, that an institutional investor shall not be eligible to receive or hold a waiver if

the institutional investor beneficially owns, directly or indirectly, except as otherwise provided in subsection (c), more than 25 percent of the voting securities and if any of the voting securities were acquired other than through a debt restructuring. Voting securities acquired before a debt restructuring and retained after a debt restructuring or as a result of an exchange, exercise or conversion, after a debt restructuring, of any securities issued to the institutional investor through a debt restructuring, shall be deemed to have been acquired through a debt restructuring. A waiver granted under this section shall be effective only as long as the institutional investor’s direct or indirect beneficial ownership interest in such voting securities meets the limitations set forth above, and should the institutional investor’s interest exceed such limitations at any time, it shall be subject to Miss. Code Ann. §75-76-263(3), and the institutional investor shall apply within thirty (30) days thereof and without any request by the Executive Director, as otherwise provided in Miss. Code Ann. § 75-76-263(5), for a finding of suitability. (c) An institutional investor that has been granted a waiver pursuant to subsection (b), may beneficially own more than 25 percent, but not more than 29 percent, of the voting securities of a publicly traded corporation licensed or registered with the Commission, only if such additional ownership results from a stock repurchase program conducted by such publicly traded corporation, and upon the condition that such institutional investor does not purchase or otherwise acquire any additional voting securities of the publicly traded corporation that would result in an increase in the institutional investor’s ownership percentage. (d) An institutional investor shall not be deemed to hold voting securities for investment purposes only unless the voting securities were acquired and are held in the ordinary course of business as an institutional investor and not for the purpose of causing, directly or indirectly, the election of a majority of the members of the board of directors, any change in the corporate charter, bylaws, management, policies or operations of the corporation licensed or registered with the Commission or any of its gaming affiliates, or any other action which the Commission finds to be inconsistent with investment purposes only. The following activities shall not be deemed to be inconsistent with holding voting securities for investment purposes only: 1. Voting, directly or indirectly through the delivery of a proxy furnished by the board of directors, on all matters voted on by the holders of such voting securities; 2. Serving as a member of any committee of creditors or security holders formed in connection with a debt restructuring; 3. Nominating any candidate for election or appointment to the board of directors in connection with a debt restructuring; 4. Accepting appointment or election as a member of the board of directors in connection with a debt restructuring and serving in that capacity until the conclusion of the member’s term; 5. Making financial and other inquiries of management of the type normally made by securities analysts for informational purposes and not to cause a change in its management, policies or operations; and 6. Such other activities as the Commission may determine to be consistent with such investment intent. (e) A request for a waiver must include: 1. A description of the institutional investor’s business and a statement as to why the

institutional investor is within the definition of “institutional investor” set forth in subsection (a) above. 2. A certification made under oath and the penalty of perjury, that the voting securities were acquired and are held for investment purposes only as defined herein and a statement by the signatory explaining the basis of his authority to sign the certification and to bind the institutional investor to its terms. The certification shall also provide that the applicant agrees to be bound by and comply with the Mississippi Gaming Control Act and the regulations adopted thereunder, to be subject to the jurisdiction of the courts of Mississippi, and to consent to Mississippi as the choice of forum in the event any dispute, question, or controversy arises regarding the application or any waiver granted under this section. 3. A description of all actions, if any, taken or expected to be taken by the institutional investor relating to the activities described in subsection (d). 4. The name, address, telephone number and social security number of the officers and directors, or their equivalent, of the institutional investor as well as those persons that have direct control over the institutional investor’s holdings of voting securities of the corporation licensed or registered with the Commission. 5. The name, address, telephone number and social security or federal tax identification number of each person who has the power to direct or control the institutional investor’s exercise of its voting rights as a holder of voting securities of the corporation licensed or registered with the Commission. 6. The name and address of each person that beneficially owns more than 5 percent of the institutional investor’s voting securities or other equivalent, together with the percentage ownership of each such person. 7. A list of the institutional investor’s affiliates. 8. A list of all securities of the corporation licensed or registered with the Commission that are or were beneficially owned by the institutional investor or its affiliates within the preceding year, setting forth a description of the securities, their amount, and the date of acquisition or sale. 9. A list of all regulatory agencies with which the institutional investor or any affiliate that beneficially owns voting securities of the corporation licensed or registered with the Commission files periodic reports, and the name, address, and telephone number of the person, if known, to contact at each agency regarding the institutional investor. 10. A disclosure of all criminal or regulatory sanctions imposed during the preceding 10 years and of any administrative or court proceedings filed by any regulatory agency during the preceding 5 years against the institutional investor, its affiliates, any current officer or director, or any former officer or director whose tenure ended within the preceding 12 months. As to a former officer or director, such information need be provided only to the extent that it relates to actions arising out of or during such person’s tenure with the institutional investor or its affiliates. 11. A copy of the institutional investor’s most recent Schedule 13D or 13G and any amendments thereto filed with the United States Securities and Exchange Commission concerning any voting securities of the corporation registered with the Commission. 12. A copy of any filing made under 15 U.S.C. 18a with respect to the acquisition or

proposed acquisition of voting securities of the corporation registered with the Commission. 13. Any additional information the Executive Director or the Commission may request. (f) The Commission shall consider all relevant information in determining whether to grant a waiver requested pursuant to subsection (b), including but not limited to: 1. Whether the waiver is consistent with the policy set forth in Mississippi Code Annotated §§ 75-76-3 and 245; 2. The factors set forth within 13 Miss. Admin. Code Pt. 2, R. 8.4; and 3. Any views expressed to the Commission by the corporation or any licensed affiliate thereof. (g) An institutional investor that has been granted a waiver of a finding of suitability and that subsequently intends not to hold its voting securities of the corporation for investment purposes only, or that intends to take any action inconsistent with its prior intent shall, within 2 business days after its decision, deliver notice to the Executive Director in writing of the change in its investment intent. The Executive Director may then take such action under the provisions of Miss. Code Ann. § 75-76-263(3) as he deems appropriate. (h) A waiver of the requirements of Miss. Code Ann. § 75-76-263(3) that has been granted pursuant to this section and Miss. Code Ann. § 75-76-201(2) shall not be construed as a waiver of or exemption from the prior approval requirements of 13 Miss. Admin. Code Pt. 2, R. 8.12. An institutional investor that intends to apply for a waiver of the requirements of Miss. Code Ann. § 75-76-263(3) pursuant to this section must also simultaneously apply to the Commission for an exemption from the prior approval requirements of 13 Miss. Admin. Code Pt. 2, R. 8.12 if the proposed acquisition would give the institutional investor, directly or indirectly, the power to direct or cause the direction of the management and policies of the corporation. (i) If the Executive Director finds that an institutional investor has failed to comply with the provisions of this section, or should be subject to a finding of suitability to protect the public interest, the Executive Director may, in accordance with Miss. Code Ann. § 75- 76-263(3), require the institutional investor to apply for a finding of suitability. The institutional investor affected by the action taken by the Executive Director may request a hearing on the merits of such action. The hearing shall be included on the agenda of the next regularly scheduled Commission meeting occurring more than 10 working days after the request for hearing. Upon good cause shown by the institutional investor, the Executive Director may waive the 10-day requirement and place such hearing on an earlier Commission agenda. The Commission, for any cause deemed reasonable, may by a majority vote, sustain, modify or reverse the decision of the Executive Director, or remand the matter to the Executive Director for such further investigation and reconsideration as the Commission may order. While the application for a finding of suitability or Commission review of the Executive Director’s action requiring the filing of such application is pending, the institutional investor shall not, directly or indirectly, cause or attempt to cause any management, policy, or operating changes in the corporation or any gaming affiliate and shall not purchase or otherwise acquire any additional voting securities of the corporation. (j) Any corporation licensed or registered with the Commission or any registered or licensed subsidiary thereof shall immediately notify the Executive Director of any information about, fact concerning or actions of, an institutional investor holding any of its voting

securities, that may materially affect the institutional investor’s eligibility to hold a waiver under this section. (Adopted: 11/20/2002.)

History

• Source: Miss. Code Ann. § 75-76-263

Chapter 9 TRANSFERS OF OWNERSHIP; LOANS; LEASES

13 Miss. Admin. Code Pt. 2, R. 9.1 Transfers Of Ownership In General

(a) No person shall sell, purchase, assign, lease, grant or foreclose a security interest, hypothecate or otherwise transfer, convey or acquire in any manner whatsoever any interest of any sort whatever in or to any licensed gaming operation or any portion thereof, or enter into or create a voting trust agreement or any other agreement of any sort in connection with any licensed gaming operation or any portion thereof, except in accordance with law and these regulations. (b) No licensee shall permit any person to make any investment whatever in, or in any manner, participate in the profits of, any licensed gaming operation, or any portion thereof, except in accordance with law and these regulations. (c) No person shall transfer or convey in any manner whatsoever any interest of any sort whatever in or to any licensed gaming operation, or any portion thereof, to, or permit any investment therein or participation in the profits thereof by, any person acting as agent, trustee or in any other representative capacity whatever for or on behalf of another person without first having fully disclosed all facts pertaining to such representation to the Executive Director. No person acting in any such representative capacity shall hold or acquire any such interest or so invest or participate without first having fully disclosed all facts pertaining to such representation to the Executive Director and obtained written permission of the Commission to so act. (d) This regulation shall apply to transfers of interest in corporate licensees and holding companies but shall not apply to transfers of interest in publicly traded corporations. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-207

13 Miss. Admin. Code Pt. 2, R. 9.2 Approval Required

(a) Except as and to the extent provided in these regulations pertaining to emergency situations, no individual who is the owner of any interest in a licensed gaming operation shall in any manner whatsoever transfer any interest therein to any person, firm or corporation, and no such transfer shall become effective for any purpose without the prior approval of the Commission. (b) Applications for a transfer of interest to a person who is not already the owner of an interest in the licensed gaming operation, except the granting of a possessory security interest in equity securities of a licensee or of a holding company, shall be made by the transferee applying for licensing or registration pursuant to the Act and these regulations. (c) Evidence of the transferor's agreement to transfer the interest applied for must accompany the application. Licensing or registration of the transferee shall be deemed to constitute approval of the transfer by the Commission. (d) Applications for approval of the granting of a possessory security interest shall be made

in writing to the Executive Director. The application shall set forth all material facts relating to the transaction and be accompanied by copies of the documents evidencing the transaction. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-207

13 Miss. Admin. Code Pt. 2, R. 9.3 Duties Of Corporations And Agents

No licensee or holding company, or officer, director or transfer agent thereof, shall cause or permit any stock certificate or other evidence of beneficial interest therein to be registered in its books or records in the name of any nominee, agent, trustee or any other person other than the true and lawful owner of the beneficial interest therein without written permission of the Executive Director to do so. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-207

13 Miss. Admin. Code Pt. 2, R. 9.4 Escrow Required

Except as and to the extent provided in these regulations pertaining to emergency situations, no money or other thing of value constituting any part of the consideration for the transfer or acquisition of any interest in a licensed gaming operation, in a licensee or in a holding company shall be paid over, received or used until complete compliance has been had with all prerequisites set forth in the law and these regulations for the consummation of such transaction; but such funds may be placed in escrow pending completion of the transaction. Any loan, pledge or other transaction between the parties or with other parties may be deemed an attempt to evade the requirements of this regulation and, as such, in violation of this regulation. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-207

13 Miss. Admin. Code Pt. 2, R. 9.5 Emergency Situations

If a transfer of an interest in a licensed gaming operation, in a licensee or in a holding company, is contemplated and, in the opinion of the Commission, the exigencies of the situation require that the proposed transferee or transferees be permitted to make available funds or credit for use in connection with such licensed gaming operation or establishment during the pendency of an application for a license or to be permitted to acquire such interest, the Commission may waive the requirements of Rule 9.4 of this regulation in accordance with the procedures hereinafter set forth. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-207

13 Miss. Admin. Code Pt. 2, R. 9.6 Application For Permission To Participate

(a) A proposed transferee of an interest who desires to make available funds or credit for use in the operation of the licensed establishment or games prior to actual completion of the

transfer of interest in accordance with the foregoing regulations shall make written application to the Executive Director for permission to so participate, setting forth, under oath, facts showing the necessity of such participation, together with the following information: 1. The extent to which and the manner in which the proposed transferee desires to participate pending completion of the proposed transfer. 2. A complete financial statement and a statement showing sources of all funds to be used in connection with the proposed transfer of interest and in the participation prior to transfer. 3. A full and complete statement of the proposed plan for effecting the proposed transfer of interest, including: i. The extent of the interest to be transferred; ii. The date on which it is desired to complete the transfer; iii. The total consideration to be paid and the time and manner of payment hereof; iv. Details of any other financial arrangements between all parties involved; and v. Details of all other pertinent arrangements between the parties. 4. Full, true and correct copies of all documents pertaining to the proposed transaction or transactions, including all agreements between the parties, leases, notes, mortgages or deeds of trust, and pertinent agreements or other documents with or involving third parties. 5. The names and addresses of all persons with whom the proposed transferee expects to be associated in connection with the operation of the licensed games or establishment, or both. i. If two or more individuals desire to participate in the operation of a licensed establishment or games as a group, whether as individuals or as stockholders, officers or directors of a corporation or other business entity, joint application may be made in accordance with subsection (a) above. ii. If the emergency requiring immediate participation consists of the actual or threatened insolvency of a licensee or holding company, the application will not be granted unless the applicant demonstrates the immediate and unqualified availability of sufficient funds and credit to cure such emergency to the same extent that such funds and credit would be required in connection with an application for licensing or registration not involving actual or threatened insolvency. iii. The Executive Director may require an applicant for permission to participate to furnish such additional information as it may desire before acting on the application. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-209

13 Miss. Admin. Code Pt. 2, R. 9.7 Permission To Participate

After receipt of a proper application for permission to participate and such additional information as the Executive Director or the Commission may require, and after such investigation as the Executive Director or the Commission deems necessary, the Commission

may grant emergency permission for a proposed transferee to make available funds or credit in the operation of the licensed games or establishment, licensee or holding company. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-209

13 Miss. Admin. Code Pt. 2, R. 9.8 Extent Of Participation Permitted

(a) Pending final action on the application of a proposed transferee, the existing licensee or licensees will be held responsible for the conduct of the licensed games or establishment, for all license fees payable, and for all acts or omissions of proposed transferees participating in the operation. (b) Except as hereinafter provided, no proposed transferee who has been granted such emergency permission to participate shall be permitted to withdraw or receive any portion of the profits of such establishment or licensee or holding company derived from gaming until final approval of the proposed transfer of interest has been granted by the Commission. If granted, such approval shall be retroactive to the date of emergency permission to participate. (c) A proposed transferee who has been granted emergency permission to participate and who actually renders services may be paid a salary or otherwise be compensated for such actual services, but such salary or other compensation shall not exceed the usual and customary compensation in the industry for similar services. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-209

13 Miss. Admin. Code Pt. 2, R. 9.9 Application For License

Any proposed transferee to whom emergency permission to participate has been granted shall, within ten (10) days thereafter if he has not already done so, make formal application for licensing, registration, or approval as required by law and these regulations. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-209; 75-76-105

13 Miss. Admin. Code Pt. 2, R. 9.10 Effect Of Permission To Participate; Withdrawal

(a) The granting of emergency permission to participate is a revocable privilege, and is not to be construed as a finding on the part of the Commission that the proposed transferee is qualified or suitable to hold a state gaming license or to be registered or to be approved. Such permission will be without prejudice to any action that the Commission may take with respect to any application for final approval of the proposed transfer of interest. (b) Emergency permission to participate may be withdrawn summarily at any time in the absolute discretion of the Commission, without notice or hearing or other proceedings of any kind. (c) Upon receipt of notice that emergency permission to participate has been withdrawn the proposed transferee shall be immediately disassociated from any participation whatever in the operation of the licensed establishment, licensee or holding company. Any money or other thing of value which may have been invested or made use of in the operation of

the licensed establishment, licensee or holding company shall be forthwith returned to the proposed transferee or deposited in escrow in compliance with Section 4 of this regulation. Any participation whatever on the part of a proposed transferee after notice of withdrawal of emergency permission to participate may be deemed to be in violation of law and these regulations and, as such, grounds for denial of the application of the proposed transferee and also grounds for disciplinary action against the existing license, registration or approval. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-209; 75-76-105

13 Miss. Admin. Code Pt. 2, R. 9.11 Loans To Licensees And Other Reportable Transactions

(a) Any licensee that receives, accepts, or makes use of any cash, property, credit, guaranty, benefit or any form of security loaned to, or provided for or on behalf of the licensee or an officer, director, agent employee or stockholder of the licensee, in a transaction required to be reported under subsections (b) or (c) hereof, must report the transaction to the Executive Director in the manner required herein within thirty (30) days after the transaction is consummated. A transaction is considered consummated the earlier of the contract date or the date the cash, property, credit, guaranty, benefit or security is received. (b) Except as exempted from reporting as provided in subsection (e) hereof, each of the following transactions must be reported to the Executive Director if the dollar amount of the transaction or the fair market value of the assets involved exceeds $300,000.00 or the average monthly payment exceeds $50,000.00: 1. Deposits received by the licensee pursuant to an arrangement for use of space at the licensee’s establishment. 2. Installment purchase contracts. 3. Property donated to the licensee. 4. All renewals, changes or modifications to the terms or conditions of transactions previously reported under this section must be reported. (c) Except as exempted from reporting as provided in subsection (e) hereof, each of the following transactions must be reported to the Executive Director if the dollar amount of the transaction exceeds $50,000.00: 1. Loans, mortgages, and trust deeds. 2. Capital contributions and loans by a person who is a stockholder, partner or proprietor of the licensee. 3. Safekeeping deposits that are commingled with the licensee’s funds. 4. Lines of credit. 5. Accounts payable and accrued expenses due to unaffiliated persons where the payment terms or actual length of payments exceed twelve (12) months. 6. Conversions of accounts payable, accrued expenses or other liabilities to notes payable. 7. Debts forgiven by a lender. 8. Guaranties received by the licensee. 9. Accruals of salary due to an individual directly or indirectly owning an interest in the licensee where the accrual period exceeds ninety (90) days.

10. Financing of gaming devices or associated equipment installed and used during a trial period authorized by the Executive Director. 11. Cash, property, credit, services, guaranty, benefit or any form of security loaned to or provided for or on behalf of the licensee by a licensed or unlicensed affiliate or subsidiary, registered parent of the licensee, stockholder, partner, or proprietor of the licensee. 12. All renewals, changes or modifications to the terms or conditions of transactions previously reported under this section must be reported. (d) For purposes of this regulation, those transactions in subsections (b) and (c) that occur no more than thirty (30) days apart from a single source shall be considered a single transaction and must be reported if the total amount exceeds the thresholds stated. (e) The following transactions need not be reported to the Executive Director regardless of the dollar amount of the transaction, fair market value of the assets involved, or average monthly payment: 1. Draws against a previously reported extension of credit. 2. Except for items specifically described in subsections (b) or (c), goods or services which are exchanged for other goods or services of an affiliate of the licensee. 3. Short-term cash loans which have a payback period of less than seven (7) days and are provided to the licensee on a regularly recurring basis, provided the terms and conditions of the arrangement have not changed, and provided the initial loan or financing arrangement has been reported. 4. Loans and other financing activities that were approved by Commission action, provided the terms and conditions of the arrangements have not changed. 5. Funds received by the licensee in satisfaction of accounts or notes receivable. 6. Payments of gaming winnings over time to patrons pursuant to Section III. A. 9, provided that any required approvals have been obtained. 7. Deposits or payments received by the licensee in conjunction with a convention or similar event. 8. Financing activity that has been filed and administratively approved by the Commission or Executive Director. (f) The report to the Executive Director required by this section must include the names and addresses of all parties to the transaction, the amount and source of the funds, property or credit received or applied, the nature and amount of the security provided by or on behalf of the licensee, the purpose of the transaction, and any additional information the Executive Director may require. The report must also identify the dates of each loan or contribution. The report must be made on the Loan to Licensees and Lease Transaction Reporting Form, or such other form as the Executive Director may hereafter require, with a fully executed copy of the financing agreement, and signed by an owner or key employee under oath. (g) In the event a party to any transaction reportable pursuant to this regulation is a person other than the reporting licensee or its affiliate, subsidiary or registered holding company, or a financial institution or related subsidiary, or a publicly traded company, the report must be accompanied by a supplemental filing which must include that person’s federal tax identification number or social security number and date of birth, banking references, and source of funds, and any additional information the Executive Director may require. The report must be made on the Loan to Licensees and Lease Supplemental Information

Form, or such other form as the Executive Director may hereafter require. (h) If, after such investigation as the Executive Director deems appropriate, the Commission finds that a reported transaction is inimical to the public health, safety, morals, good order or general welfare of the people of the State of Mississippi, or would reflect, or tend to reflect, discredit upon the State of Mississippi or the gaming industry, it may order the transaction rescinded within such time and upon such terms and conditions as it deems appropriate. (i) A bankruptcy filing by a licensee does not relieve that licensee of the reporting requirements of this regulation. (j) The Executive Director may waive one or more of the provisions of this section or require a report of a transaction not otherwise addressed in this section or a supplemental filing, upon a finding that the waiver, reporting requirement or supplemental filing is consistent with the public policy of the State of Mississippi, as set forth in Section 75-76-3 of the Mississippi Code, as amended. (Adopted: 09/25/1991; Amended: 09/21/2000.)

History

• Source: Miss. Code Ann. § 75-76-103

13 Miss. Admin. Code Pt. 2, R. 9.12 Rule 9.12

Finding Of Suitability Of A Person Holding An Option To Acquire An Interest In A General Partnership, Limited Partnership, Or Corporate Licensee. (a) No person shall acquire or be granted an option to purchase an interest in a general partnership, limited partnership, or corporate licensee without first notifying the Executive Director, on such forms as may be required by the Executive Director, of the terms and conditions upon which the option was granted or acquired. (b) The Commission may, upon a recommendation by the Executive Director, require the application of any person for a determination of suitability to hold an option to purchase or otherwise obtain an interest in a general partnership, limited partnership, or corporate licensee. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-237

13 Miss. Admin. Code Pt. 2, R. 9.13 Leases

(a) Definitions. In addition to the terms defined in the Act and the regulations thereunder, the following definitions shall apply in this regulation: 1. "Lessor" means any person who leases or rents any property, real or personal, to an operating licensee or to a person who, in turn, leases or rents property to an operating licensee. 2. "Lease" means any formal or informal, written or oral, contract or understanding or arrangement whereby any operating licensee obtains the use or possession of any property, real or personal, to be used, occupied, or possessed in connection with any gaming establishment. The term "lease" includes, without limitation, payments made to an affiliated person under a real property lease or a personal property lease. 3. "Operating licensee" means the person or entity to whom a state gaming license has been issued for the conduct of gaming. The term does not include persons or entities which have been issued licenses or findings of suitability as officers, directors,

stockholders, or key employees. (b) Each of the following transactions must be reported by the operating licensee to the Executive Director if the dollar amount of the transaction exceeds $50,000.00: 1. Leases, including leaseback transactions and capital leases. 2. Leases, other than vehicle leases, where an option to purchase exists. 3. Leases of any associated equipment. 4. All renewals, changes or modifications to the terms or conditions of transactions previously reported under this section must be reported. (c) For purposes of this regulation, those transactions in subsection (b) that occur no more than thirty (30) days apart from a single source shall be considered a single transaction and must be reported if the total amount exceeds the threshold stated. (d) Reports by operating licensee. The operating licensee shall report to the Executive Director all leases to which it is a party not later than 30 days after the effective date of the lease and shall include the following information: 1. The name, address, and a brief statement of the nature of the business of the lessor. 2. A brief description of the material terms of the lease. 3. A brief description of any business relationships between the operating licensee and the lessor other than by the lease. The report must be made on the Loan to Licensees and Lease Transaction Reporting Form, or such other form as the Executive Director may hereafter require, with a fully executed copy of the lease, and signed by an owner or key employee under oath. (e) In the event a party to any transaction reportable pursuant to this regulation is a person other than the reporting licensee or its affiliate, subsidiary or registered holding company, or a financial institution or related subsidiary, or a publicly traded company, the report must be accompanied by a supplemental filing which must include that person’s federal tax identification number or a social security number and date of birth, banking references, and source of funds, and any additional information the Executive Director may require. The report must be made on the Loan to Licensees and Lease Supplemental Information Form, or such other form as the Executive Director may hereafter require. (f) If, after such investigation as the Executive Director deems appropriate, the Commission finds that a reported transaction is inimical to the public health, safety, morals, good order or general welfare of the people of the State of Mississippi, or would reflect, or tend to reflect, discredit upon the State of Mississippi or the gaming industry, it may order the transaction rescinded within such time and upon such terms and conditions as it deems appropriate. (g) A bankruptcy filing by a licensee does not relieve that licensee of the reporting requirements of this regulation. (h) Leases between two Mississippi licensees are exempt from this reporting requirement. (i) The Executive Director may waive one or more of the provisions of this section or require a report of a transaction not otherwise addressed in this section or a supplemental filing, upon a finding that the waiver, reporting requirement or supplemental filing is consistent with the public policy of the State of Mississippi, as set forth in Section 75-76-3 of the Mississippi Code, as amended. (Adopted: 09/25/1991; Amended: 09/21/2000.)

History

• Source: Miss. Code Ann. §§ 75-76-3, 75-76-103

13 Miss. Admin. Code Pt. 2, R. 9.14 Death Or Disability Of Licensee

(a) In the event of the death or judicially established disability of a licensee or a stockholder of a corporate licensee, the spouse, next of kin, personal representative or guardian of such deceased or disabled person or the person in charge of the licensed establishment, or, in the case of a corporate licensee, a managing officer of such corporation, shall notify the Executive Director immediately of the fact of such death or disability. (b) In case such deceased or disabled person is the sole licensee for an establishment, the Executive Director may, in his sole and absolute discretion, authorize the spouse, next of kin, personal representative or guardian for a license to operate such establishment. (c) In any case in which the interest held by such deceased or disabled person in any licensed establishment would pass by operation of law or otherwise to his estate or to any person other than a co-licensee, such person or the personal representative or guardian of the deceased or disabled person shall, within thirty (30) days after the date of death or disability, make application to the Executive Director for a temporary license as successor in interest, representative or guardian, whichever is appropriate. (d) The Executive Director may, if satisfied of the necessity of such action, recommend to the Commission that a temporary license be issued to the applicant for such period of time as he may deem necessary. Such temporary license will entitle the person named therein to take part in the operation of such establishment and to receive profits therefrom as successor in interest, representative or guardian of the deceased or disabled person. Such temporary license may not be assigned in whole or in part. (e) No licensee shall permit any spouse, heir, next of kin, personal representative or guardian to take part in the operation of the licensed establishment, nor pay over to such person any part of the profits of such operation which accrue after the date of death or disability, unless such person is either a co-licensee or the holder of a temporary license as successor in interest, representative or guardian. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-21, 75-76-23

13 Miss. Admin. Code Pt. 2, R. 9.15 Insolvency Of A Licensee

(a) In the event that a licensee files any petition with the bankruptcy court for relief as a debtor or has such a petition filed against it, or a receiver is appointed for such licensed business or an assignment of such business is made for the benefit of creditors, the licensee, trustee, receiver or assignee, as the case may be, shall immediately notify the Executive Director of such fact in writing. Such written notice shall have attached a copy of the petition filed with the court, and any relevant court orders such as orders appointing trustees, receivers, or assignees. (b) No licensed establishment shall be operated by any trustee, receiver or assignee for the benefit of creditors until such operation has been authorized by the Commission. (c) Any such trustee, receiver, or assignee desiring to continue operation of the licensed establishment shall immediately make application for permission to do so. Application shall be made in the same manner as an application for an initial license; but the operation, if approved, shall be deemed to continue under the existing license of the establishment. (d) Permission for such trustee, receiver, or assignee to continue the operation of the licensed

establishment may be summarily withdrawn at any time in the discretion of the Commission without the necessity of any hearing or proceedings for revocation or suspension. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann §§ 75-76-21, 75-76-23

Chapter 10 GAMING EMPLOYEES

13 Miss. Admin. Code Pt. 2, R. 10.1 Work Permits Required

(a) No person shall be employed as a gaming employee unless such person is the holder of a valid work permit issued by the Commission. (b) Every licensee, shall, before employing any person in connection with the licensed gaming operation, ascertain that such person holds a valid work permit issued in accordance with this regulation, and shall cause his employment records to reflect such fact. No work permit shall be effective for more than three (3) years from the date of issue. A permit may be issued for a period of less than three (3) years within the discretion of the Executive Director. A work permit expires unless renewed within ten (10) days after a change of place of employment as a gaming employee, or if the holder is unemployed as a gaming employee within the jurisdiction of the Mississippi Gaming Commission for more than ninety (90) days. The ninety (90) day period shall be tolled upon the opening of an investigation pursuant to Rule 11.5 herein into alleged violations of The Gaming Control Act or other applicable law, with said tolling period to conclude upon final disposition of said investigation, including revocation of the affected work permit. Complete renewal applications must be received by the Mississippi Gaming Commission at least sixty (60) days prior to the date of expiration of an employee’s existing work permit. (c) Every gaming employee shall keep his work permit on his person and available for inspection at all times when actively engaged in the conduct of gaming operations. The employee must wear a name badge while on duty identifying the employees common name, casino name and job title if in a supervisory position. (d) Each work permit holder shall report any arrest and/or criminal charges and final dispositions to the Mississippi Gaming Commission within ten (10) days after such conviction or arrest or other disposition. (e) Each employee of a holding company, intermediary company or affiliated company of a licensee who is directly or indirectly engaged in the administration or supervision of the gaming operations or physical security activities of such licensee and performs such duties at any time on the premises of the licensee shall obtain a work permit. (f) Each employee of a holding company, intermediary company or affiliated company, contract employee, agent, attorney, accountant or other representative performing services, other than maintenance, for the licensee must hold a valid work permit or finding of suitability in order to enter surveillance, count room or any cage area. (Adopted: 09/25/1991; Amended: 10/22/1998; Amended: 02/19/2003.)

History

• Source: Miss. Code Ann. §§ 75-76-57, 75-76-61, 75-76-131(8)

13 Miss. Admin. Code Pt. 2, R. 10.2 Application For Work Permit; Procedure

(a) The Mississippi Gaming Commission will process all work permit applications, to include taking photographs and fingerprints from all applicants. The Commission shall conduct background investigations on all work permit applicants. The applicant shall provide any information requested by the Executive Director in order to allow for a complete investigation of the applicant’s background. (b) An applicant for a work permit shall pay the application fee established by the Executive Director, which shall be sufficient to cover the costs of processing the application. (c) The Executive Director shall investigate the applicant and may either grant or deny the work permit. The burden is on the applicant at all times to prove suitability for a work permit. (d) The Executive Director shall refuse to issue a work permit if the applicant has: 1. Committed, attempted or conspired to commit a crime which is a felony in Mississippi or an offense in any other jurisdiction which would be a felony if committed in Mississippi; regardless of whether the charges have been non- adjudicated or expunged; (e) The Executive Director may refuse to issue a work permit if the applicant has: 1. Failed to disclose, misstated or otherwise attempted to mislead the Commission with respect to any material fact contained in the work permit application; 2. Knowingly failed to comply with the provisions of the Gaming Control Act, MGC regulations, and /or internal controls of a gaming licensee as filed with and approved by the Commission; 3. Committed, attempted or conspired to commit any crime of moral turpitude, embezzlement or larceny or any violation of any law pertaining to gaming or any crime which is inimical to the declared policy of Mississippi concerning gaming including, but not limited to, the following: any misdemeanor theft convictions, excluding first time conviction for false pretense/bad checks (false pretense) during the three (3) years prior to the date of application; i. Any misdemeanor drug convictions during the three (3) years prior to the date of application; ii. Any misdemeanor convictions pertaining to gaming or gambling during the three (3) years prior to the date of application; iii. Any misdemeanor convictions pertaining to crimes of violence during the three (3) years prior to the date of application; and iv. Any pattern of criminal offenses making an applicant unsuitable; 4. Been identified in published reports of any federal or state legislative or executive body as being a member or associate of organized crime, or as being of notorious and unsavory reputation; 5. Been placed and remains in the constructive custody of any federal, state or municipal law enforcement authority when the crime involved would be a crime constituting grounds for denial of an application; 6. Had a work permit revoked or committed any act which is a ground for the revocation of a work permit or would have been a ground for revoking a work permit if the applicant had been holding a work permit at that time. 7. Failed to complete the application process for a gaming work permit by: i. Failing to submit to additional fingerprinting where initial fingerprints are

insufficient for proper analysis; ii. Failing to provide the Commission with court records and/or other requested documents detailing the disposition of previous arrests and/or convictions as well as facts and circumstances of the underlying offense(s); or iii. Failing to provide any other requested information necessary to determine the suitability of the applicant. The above enumerated reasons for denial shall not limit the Executive Director’s discretion to deny an applicant if that applicant has committed, attempted or conspired to do any act which is inimical to the best interest of gaming in Mississippi. (Adopted: 09/25/1991; Amended: 03/29/1993; Amended: 10/22/1998.)

History

• Source: Miss. Code Ann. §§ 75-76-63, 75-76-67

13 Miss. Admin. Code Pt. 2, R. 10.3 Procedure For Hearing After Denial By Executive Director

(a) If the Executive Director denies an application for a work permit and the applicant requests a hearing pursuant to Miss. Code Ann. 75-76-131(5), the hearing examiner shall schedule a hearing as soon as practicable after receipt of the request. (b) At the hearing, the Executive Director shall present any evidence supporting his reasons for denial and the applicant shall then present any evidence controverting the Executive Director’s reasons. (c) Each party may cross-examine all witnesses and may subpoena witnesses to testify or produce evidence at the hearing. The hearing examiner shall issue subpoenas upon the request of a party, but for good cause shown may limit or quash any subpoena issued. (d) No discovery shall be permitted except upon a finding of good cause justifying the discovery sought. (e) The standard of review to be used by a hearing examiner is identical to the scope of review a court would have of a final commission action. The Hearing Examiner is to focus on the Commission regulations, policies and procedures, as well as the Commission’s adherence to its own regulations and fairness of enforcing the Gaming Control Act and Mississippi Gaming Commission Regulations; then determine only whether the Commission is in compliance with those regulations. (f) Notwithstanding any other regulations concerning denial of work permits, the Hearing Examiner shall have discretion to recommend grant or denial of a permit and the Mississippi Gaming Commission shall have discretion to grant or deny a permit, except as proscribed by statute. Factors to be considered in the exercise of discretion include, but are not limited to: 1. The nature and character of the offense or other matters alleged against the applicant, including all surrounding facts and circumstances, whether or not resulting in conviction; 2. The length of time since commission of the offense or other matters alleged; 3. All criminal history of the applicant, including arrests, considering the type, frequency and number of arrests and convictions, before and after the offense or matter alleged; and 4. Whether it is in the best interests of gaming for the applicant to hold a work permit. (g) Hearing Examiners shall be chosen as follows; either from the Attorney General’s office, a contracted private party or an individual whose expertise is relevant to properly

interpret and enforce the Gaming Control Act and Mississippi Gaming Commission Regulations. Hearings may be conducted by telephone if the parties agree. (Adopted: 09/25/1991; Amended: 03/29/1993; Amended: 10/22/1998)

History

• Source: Miss. Code Ann. §§ 75-76-75

13 Miss. Admin. Code Pt. 2, R. 10.4 Revocation of Work Permit; Procedure

(a) The Executive Director shall recommend that the Commission revoke the work permit of a gaming employee if the gaming employee: 1. is convicted of any violation of the Gaming Control Act or if in investigating an alleged violation of the Gaming Control Act by any licensee the Executive Director or the Commission finds that a gaming employee employed by the licensee has been guilty of cheating. (b) The Executive Director may recommend that the Commission revoke the work permit of a gaming employee if, subsequent to being issued a work permit, the gaming employee: 1. fails to disclose, misstates or otherwise misleads the Commission with respect to any fact contained within any application for a work permit. 2. commits, attempts or conspires to do any of the acts prohibited by the Gaming Control Act; 3. knowingly possesses or permits to remain in or upon any licensed premises any cards, dice, mechanical devise or any other cheating device whatever the use of which is prohibited by statute or ordinance; 4. conceals or refuses to disclose any material fact in any investigation by the Executive Director or the Commission; 5. commits, attempts or conspires to commit larceny or embezzlement against a gaming licensee or upon the premises of a licensed gaming establishment; 6. is convicted in any jurisdiction other than Mississippi of any offense involving or relating to gambling; 7. accepts employment without prior commission approval in a position for which he is required to be licensed under this chapter after having been denied a license for a reason involving personal unsuitability or after failing to apply for licensing when requested to do so by the Commission or the Executive Director; 8. is refused the issuance of any license, permit or approval to engage in or be involved with gaming in any jurisdiction other than Mississippi, or had any such license, permit or approval revoked or suspended; 9. is prohibited under color of governmental authority from being present upon the premises of any gaming establishment for any reason relating to improper gambling activities or any illegal act; 10. contumaciously defies any legislative investigative committee or other officially constituted bodies acting on behalf of the United States or any state, county or municipality which seeks to investigate crimes relating to gaming, corruption of public officials, or any organized criminal activities; Or, 11. is convicted of any felony or misdemeanor, other than one constituting a violation of the Gaming Control Act. (c) A work permit shall not be issued to a person whose work permit has previously been revoked pursuant to this section or to whom the issuance or renewal of a work permit has

been denied, except with the unanimous approval of the Commission members. Applicants who have been denied or revoked pursuant to Rule 10.2(d) are not eligible to request unanimous approval. (Adopted: 10/22/1998.)

History

• Source: Miss. Code Ann. § 75-76-137

13 Miss. Admin. Code Pt. 2, R. 10.5 Procedure for Hearing After Recommendation of Revocation By Executive Director

(a) If the Executive Director recommends the revocation of a gaming work permit, the matter will be set for hearing before a hearing examiner. The Hearing Examiner shall schedule a hearing as soon as practicable after receipt of the recommendation from the Executive Director. (b) At the hearing, the Executive Director shall present any evidence supporting his reasons for revocation and the applicant shall then present any evidence controverting the grounds for revocation. (c) Each party may cross-examine all witnesses to testify or produce evidence at the hearing. The hearing examiner shall issue subpoenas upon the request of a party, but for good cause shown may limit or quash any subpoena issued. (d) No discovery shall be permitted except upon a finding of good cause justifying the discovery sought. (e) The Hearing Examiner is to focus on the Commission regulations, policies and procedures, as well as the Commission’s adherence to its own regulations and fairness of enforcing the Gaming Control Act and Mississippi Gaming Commission Regulations; then determine only whether the Commission is in compliance with those regulations. (f) Notwithstanding any other regulations concerning revocation of work permits, the Hearing Examiner shall have discretion to recommend revocation or continuation of a work permit and the Mississippi Gaming Commission shall have discretion to revoke or continue a work permit, except as proscribed by statute. Factors to be considered in the exercise of discretion include, but are not limited to: 1. the nature and character of the offense or other matters alleged against the applicant, including all surrounding facts and circumstances, whether or not resulting in conviction; 2. the length of time since commission of the offense or other matters alleged; 3. all criminal history of the applicant, including arrests, considering the type, frequency and number of arrests and convictions, before and after the offense or matter alleged; and 4. whether it is in the best interests of gaming for the applicant to hold a work permit. (g) Hearing Examiners shall be chosen as follows; either from the Attorney General’s Office, a contracted private party or an individual whose expertise is relevant to properly interpret and enforce the Gaming Control Act and Mississippi Gaming Commission Regulations. Hearings may be conducted by telephone if the parties agree. (h) The Commission or its Hearing Examiner may recall and declare void work permits or other approvals that were granted contrary to the provisions of the Gaming Control Act or Mississippi Gaming Commission Regulations. (Adopted: 10/22/1998.)

History

• Source: Miss. Code Ann. § 75-76-137

13 Miss. Admin. Code Pt. 2, R. 10.6 Work Permit Applications After Objection Or Revocation

(a) An application filed pursuant to Miss. Code Ann. §75-76-131 for the reconsideration of an objection to the issuance of a work permit or for the reinstatement of a work permit previously revoked must not be entertained by the Commission for a period of one (1) year following either a decision by the Commission upon the same matter or the failure of the person seeking the work permit to pursue all administrative remedies provided by Section 66. (b) Applications for reconsideration of work permit actions by the Commission will be referred to the Executive Director for investigation and review. The Executive Director shall thereafter make a recommendation to the Commission regarding the application. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-131

13 Miss. Admin. Code Pt. 2, R. 10.7 Employee Report

(a) Annually, on or before the 1st of July, each licensee shall submit an “Annual Employee Report” to the Executive Director on a form to be furnished by the Executive Director. The report shall identify every individual who is directly or indirectly engaged in the administration or supervision of the gaming operations or physical security activities of such licensee. The following classes of gaming employees are presumed to be actively and directly engaged in the administration or supervision of gaming: 1. All individuals who are compensated in any manner in excess of $100,000.00 per annum; 2. All individuals who may approve or extend gaming credit in any amount, or whose recommendations in this regard are ordinarily sought or followed; 3. All individuals who have authority to hire or terminate gaming employees; 4. All individuals who have the authority to supervise or direct a shift of any gaming or security activity, including but not limited to supervision or direction of the pit area, keno games, slot machines, or any persons having authority to supervise or direct such persons; 5. All individuals who supervise the count teams and all individuals responsible for directing each shift involving a count team; 6. All individuals who may approve or extend to casino patrons complimentary house services other than beverages only; 7. All individuals who supervise or direct other employees engaged in the control of gaming assets and revenues and record keeping, including the recording of cash and evidences of indebtedness, and the maintenance, review or control of the records, accounts, and reports of transactions which are required to be kept pursuant to these regulations; 8. Any individual who has been specifically represented to the Executive Director or Commission by a licensee or any officer or director thereof as being important or necessary to the operation of the gaming establishment; 9. All persons who individually or as part of a group formulate management policy.

(b) The “Annual Employee Report” shall also include a description of the gaming duties, casino responsibilities, and casino authority delegated to each individual identified in the report, if requested by the Investigations Division of the Commission. (c) Any changes, additions, or deletions to any information contained within the annual employee report which occurs subsequent to the filing of the report and prior to the filing of the report for the next calendar year shall be reported to the Executive Director in writing no less than ten (10) days after the end of the calendar quarter during which the change, addition, or deletion occurred. (d) The Annual Employee Report and subsequent reports of changes, additions, or deletions shall be confidential and may not be disclosed except upon order of the Commission or pursuant to the terms of Mississippi Code Annotated §75-76-153. (Adopted: 09/25/1991; Amended: 07/16/1998; Amended: 10/22/1998; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. §§ 75-76-139, 75-76-153

Chapter 11 GAMING SCHOOLS

13 Miss. Admin. Code Pt. 2, R. 11.1 Gaming School License Required

(a) No gaming school shall enroll any student or offer any course to the public of this state or do any other business whatsoever in this state whether for compensation or not, relating to the teaching of gaming or playing or dealing techniques unless such gaming school is the holder of a valid Gaming School License issued by the Commission. (b) An application for a Gaming School License shall describe the training to be offered in sufficient detail to allow the Commission to properly evaluate that training. This description shall include but need not be limited to: 1. The course or program tile; 2. The number of persons involved in such training and the maximum number of students that will be permitted to enroll in any one session of such training; 3. A description of the plan of instruction to be used; 4. The tuition and other charges of costs to the persons trained; 5. The name, license number and employer of every instructor to be utilized for such training; 6. The name, license number and employer of any support personnel to be used in such training; 7. The location where such training is to be conducted; and 8. Any certificate or other documentation to be awarded to persons successfully completing such training program. (Adopted: 11/04/1992.)

History

• Source: Miss. Code Ann. § 75-76-34

13 Miss. Admin. Code Pt. 2, R. 11.2 Gaming School Employee License Required

(a) No natural person shall be employed by a licensed gaming school as an instructor, administrative employee or sales representative unless he or she has first established his or her qualifications in accordance with Section 75-76-34 (K) of the Mississippi Gaming Control Act and the regulations of the Commission unless such gaming school employee

is the holder of a valid gaming school employee license; provided, however, that notwithstanding the provisions of this section, the licensure of clerical personnel shall be required. (b) Notwithstanding any other requirements of this subchapter, guest lecturers who do not possess a gaming school employee's license may be employed provided that prior notice is filed with the Commission and that an individual who possesses a valid employee's license is responsible for the conduct of the class and is in attendance during the sessions conducted by the guest lecturer. (Adopted: 11/04/1992.)

History

• Source: Miss. Code Ann. § 75-76-34

13 Miss. Admin. Code Pt. 2, R. 11.3 Standards For Qualification

(a) Each operator required to be licensed in accordance with commission regulations shall, prior to the issuance of a Gaming School License, produce such information, documentation and assurances to establish by clear and convincing evidence: 1. The financial stability, integrity and responsibility of the applicant; 2. The applicant's good character, honesty and integrity; 3. That the applicant, either himself or through his employees, has sufficient business ability and experience to establish, operate and maintain his enterprise with reasonable prospects for successful operation; 4. That all owners/management and supervisory personnel, and sales representatives qualify under the standards set forth under the provisions of these regulations; 5. The integrity of all financial backers, investors, mortgagees, bondholders, and holders of indentures, notes or other evidence of indebtedness, either in effect or proposed, which bears any relationship to the enterprise; 6. The integrity of all officers, directors, and trustees of the applicant; 7. If the gaming school is a corporation, that it: i. Either is incorporated in this state or is authorized to do business in this state; ii. Maintains a registered office in the premises licensed or to be licensed and has designated and maintains in this state a registered agent; iii. Complies with all requirements of the laws of this state pertaining to corporations. 8. If the gaming school is not a corporation, that it maintains an office in this state and has designated to the Commission and maintains in this state an agent for the acceptance of service of process; and 9. The appropriate individuals associated with or employed by the gaming school be properly qualified as required by the Gaming Control Act and these regulations. (Adopted: 11/04/1992.)

History

• Source: Miss. Code Ann. § 75-76-34

13 Miss. Admin. Code Pt. 2, R. 11.4 Application Requirements

(a) The principal(s) of each operator, employee and student must set forth by application that he or she does not fall within any one (1) of the following categories:

1. Is under indictment for, or has been convicted in any court of a felony; 2. Is a fugitive from justice; 3. Is an unlawful user of any controlled substance, is addicted to any controlled substance or alcoholic beverage, or is an habitual drunkard; 4. Is a mental defective, has been committed to a mental institution, or has been voluntarily committed to a mental institution on more than one (1) occasion; 5. Has been discharged from the Armed Forces under dishonorable conditions; or 6. Has been found at any time by the Executive Director or commission to have falsified any information. 7. Has been denied a work permit or license or excluded or ejected from a casino operation in another gaming jurisdiction. (Adopted: 11/04/1992.)

History

• Source: Miss. Code Ann. § 75-76-63

13 Miss. Admin. Code Pt. 2, R. 11.5 Investigations

(a) The Commission may, within its discretion, make such inquiry or investigation concerning an operator, employee, student or any other person involved with an applicant or licensee as it may deem appropriate either at the time of the initial application and licensure or at any time thereafter. It shall be the continuing duty of each applicant to provide full cooperation to the Commission in the conduct of such inquiry or investigation and to provide any supplementary information requested by the Commission. (b) The Commission shall require fingerprints of the operator(s), employees and students of the gaming schools or other methods of identification and shall forward all fingerprints taken pursuant to regulations to the Federal Bureau of Investigation. (Adopted: 11/04/1992.)

History

• Source: Miss. Code Ann. § 75-76-103

13 Miss. Admin. Code Pt. 2, R. 11.6 Investigative Fees

(a) Simultaneously with the submission of its application for a gaming school license, the operator(s) shall pay a non-refundable application/investigation fee of one thousand ($1,000.00) along with all other fees provided for in the Gaming Control Act. These fees shall be payable to the Mississippi Department of Revenue. (b) Simultaneously with the submission of its application for a gaming school employee license, the applicant shall pay a non-refundable application/investigation fee of one hundred dollars ($100.00) along with all other fees provided for in the Gaming Control Act. These fees shall be payable to the Mississippi Department of Revenue. (c) Each student upon enrolling at a licensed gaming school shall pay a non-refundable fee which is the same fee imposed for work permits. (d) The Executive Director may require an additional deposit to be paid by the applicant or employee as a condition precedent to beginning or continuing the investigation where the investigative fees and costs are likely to exceed the deposit paid. (e) If the Executive Director denies an application for an Operator License, Instructor/Administrator License or a Student Work Permit License, the procedure for a

hearing after denial will be the same as outlined in Part 2, Rule 10.3 of the Mississippi Gaming Commission Regulations. (Adopted: 11/04/1992; Amended: 03/20/1997.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 2, R. 11.7 Age Requirements

All employees and students of the gaming school shall be at least twenty-one (21) years of age. (Adopted: 11/04/1992.)

History

• Source: Miss. Code Ann. § 75-76-155

13 Miss. Admin. Code Pt. 2, R. 11.8 Courses and Programs of Instruction

(a) No person or school, whether or not a governmental agency, shall offer any course or program of instruction or enroll any student in any course or program of instruction unless an approval authorizing such course or program of instruction shall have first been obtained from the Commission. (b) For each course or program submitted to the Commission for approval, the gaming school shall submit a course or program outline in sufficient detail for proper evaluation which outline shall include, but need not be limited to: 1. The course or program title; 2. The objective or goal the course or program is intended to meet; 3. For courses, the content in outline form showing the major elements or items of instruction, the number of teacher contact hours of instruction for each element of the course, the number of laboratory or practice hours required and the total number of hours for the course; 4. The entrance requirements, if any, such as education, physical fitness or dexterity, and the procedure for determining compliance with such; 5. The proposed tuition and other charges or cost to the student; 6. The maximum number of students that will be permitted to enroll in any one session of the course or program taking into account the facilities available; 7. A copy of all textual material to be used in the course of program of instruction. (c) The administrator of the gaming school shall file a plan outlining the curriculum and the minimum requirements for each area of instruction. (d) Subsequent changes in curriculum shall be submitted for approval of the Executive Director. (e) Upon satisfactory completion of any course or program or instruction, the gaming school shall, in writing, certify directly to the Commission that the student has completed the said course or program of instruction. (Adopted: 11/04/1992.)

History

• Source: Miss. Code Ann. § 75-76-34

13 Miss. Admin. Code Pt. 2, R. 11.9 Facilities, Supplies and Equipment

(a) The physical facilities and equipment of each gaming school shall be sufficient for attainment of the school's purposes and shall be safe and adequate in quality, size and

number to effectively accommodate students, faculty and staff. The school shall have sufficient space, equipment and supplies on hand to provide a shop, laboratory or classroom space for each of the students in attendance at every session of instruction or training. 1. No gaming school shall alter its physical facility unless prior notice, which shall include a diagram detailing the proposed change, has been submitted to and approved by the Commission. (b) Physical facilities of all gaming schools shall meet all applicable State, county and local laws, regulations and ordinances with regard to space, safety, health, fire, construction, sanitation, heating, lighting, ventilation, zoning and environmental protection and such other standards as may from time to time be adopted by the Commission. 1. The gaming school shall be at least four hundred (400) feet from any church, school, kindergarten or funeral home. However, within an area zoned commercial or business, the minimum distance shall not be less than one hundred (100) feet. (c) Facilities leased or rented which house the instructional program of the school shall be bound by contract or lease agreement between the owner of the school and the owner of the facilities. Said contract or lease agreement shall stipulate length of lease, conditions of lease and shall be signed by both parties. A copy of the agreement must be filed with the Commission prior to the issuance of a certificate of operation. (d) Unless the Commission shall otherwise determine, all gaming equipment utilized by a gaming school shall conform to all requirements set forth in the regulations of the Commission governing gaming equipment utilized by casino licensee. Each gaming school shall keep an itemized list of its dealing shoes, gaming tables, slot machines, and roulette and big six wheels. 1. Unless the Commission shall otherwise determine, each table for blackjack, roulette, craps, baccarat and big six shall have the name of the gaming school, or some other identifying attribute as approved by the Commission, permanently imprinted thereon in letters at least one inch in height and shall, as shall each slot machine, also have permanently affixed on it a serial number which, together with the location of the table or machine, shall be filed with the Commission. (e) Unless the Commission shall otherwise determine, all gaming chips and plaques utilized by a gaming school shall be distinctly dissimilar to any gaming chips and plaques utilized by a casino licensee. 1. No gaming school shall issue or cause to be utilized in its gaming school any gaming chips or plaques until such gaming chips and plaques are submitted to and approved by the Commission. (f) Each gaming school shall provide adequate security of its premises for the protection of its equipment. No such equipment shall be removed from the premises of the school or sold or transferred to any person without the prior approval of the Commission; provided, however, the gaming chips and plaques may be removed by students for practice purposes without the necessity of any approval of the Commission. 1. Each gaming school shall require all employees and students to possess a work permit and have it on their person while on school premises. 2. Upon graduation a student may, upon written request to the Commission, enter the gaming school for the purpose of practice after obtaining prior approval. The gaming school shall properly document each practice session attended by the

graduate. (g) Gaming chips and plaques and equipment of a gaming school shall be used for training, instructional and practice purposes only. Utilization of same for actual gaming by any person shall be prohibited and may constitute cause for the suspension or revocation of the gaming school license. (h) Each gaming school shall have a telephone listed in the local telephone directory. (Adopted: 11/04/1992.)

History

• Source: Miss. Code Ann. § 75-76-34

13 Miss. Admin. Code Pt. 2, R. 11.10 Causes for Suspension

(a) Any of the following shall be cause for suspension, refusal to renew or revocation of a gaming school license of gaming school employee license, although suspension, refusal to renew or revocation may be made for sufficient cause other than those listed: 1. Violation of any provision of the Gaming Control Act or the Mississippi Gaming Commission rules and regulations; 2. Conduct which would disqualify the applicant, or any other person required to be qualified, if such person were applying for original licensure; 3. Failure to comply with all applicable Federal, State and local statutes, ordinances and regulations; 4. A material departure from any representation made in the application for licensure. (Adopted: 11/04/1992.)

History

• Source: Miss. Code Ann. § 75-76-34

13 Miss. Admin. Code Pt. 2, R. 11.11 Duration of License

(a) Licensure pursuant to Mississippi Gaming Commission Regulations is granted for a term of two years, and for a term of two years for all subsequent renewals within the discretion of the Commission. 1. A change in any item that was a condition of the original license or a license renewal must be approved by the Commission. A change in ownership shall invalidate any approval previously given by the Commission. The proposed new owner shall be required to submit an application for licensure and evidence that he is qualified for licensure. (Adopted: 11/04/1992; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. § 75-76-85

Chapter 12 FOREIGN GAMING

13 Miss. Admin. Code Pt. 2, R. 12.1 Application For Preliminary Approval For Involvement In Foreign Gaming

(a) Unless a licensee has been granted continuous approval for involvement in foreign gaming, the licensee may apply for preliminary approval for a proposed involvement in foreign gaming. The application shall be made on such forms as may be prescribed by the Executive Director. The licensee shall pay an application/ investigation fee of

two thousand dollars ($2,000). The applicant shall pay the cost of any additional investigation as required by the Executive Director. (b) A preliminary approval for a proposed involvement in foreign gaming constitutes a finding by the Commission that, based upon consideration of the information submitted by the licensee, it finds no present reason to object to the proposed involvement. The preliminary approval may be limited or conditioned in any manner deemed reasonable by the Commission. (c) A preliminary approval does not: 1. Constitute final approval for the proposed involvement in foreign gaming; or 2. Obligate the Commission to grant final approval for the proposed involvement in foreign gaming. (d) The Commission shall consider all relevant information in considering the application for preliminary foreign gaming approval including, but not limited to, the following: 1. The business history of the licensee, including its record of financial stability, and the integrity, duration, scope and success of its operations in Mississippi and elsewhere; 2. The current business activities and investments of the licensee and its gaming affiliates; 3. The regulatory history of the licensee and its affiliates in Mississippi and in foreign jurisdictions; 4. The availability and accessibility in Mississippi of information to the Commission regarding the Mississippi operation and the operation in the foreign jurisdictions for which application has been made; 5. The extent of personnel capable of managing both the licensee's Mississippi gaming businesses and the foreign operation; 6. Whether a foreign gaming operation will create a significant risk that the licensee or its gaming affiliates will not satisfy their financial obligations as they become due; 7. Whether a foreign gaming operation will create a significant risk that the licensee or its gaming affiliates will not satisfy all financial and regulatory requirements imposed by the laws of Mississippi and the regulations of the commission; and 8. The current financial status and structure of the applicant, both within and without Mississippi, including historical and perspective balance sheets and statements of operation for business activities in Mississippi and other jurisdictions, key financial statistics such as debt to equity ratios and other financial data. (e) A preliminary approval for a proposed involvement in foreign gaming granted by the Commission pursuant to this regulation shall terminate automatically if: 1. The licensee or its affiliate has not commenced in involvement in foreign gaming within two (2) years after grant of the preliminary approval; 2. The licensee or its affiliate has commenced the involvement in foreign gaming but the licensee has failed to file with the Executive Director the supplemental application for final foreign gaming approval required by paragraph 7 hereof; or 3. The preliminary approval has not been extended by the Commission. (f) A licensee who has received preliminary approval of a proposed involvement in foreign gaming must continuously and promptly inform the Executive Director of each and every material action or step taken concerning the proposed involvement, leading up to the

execution of a definitive agreement for the proposed involvement.

(g) Unless a licensee has been granted continuous approval for involvement in foreign gaming and said continuous approval is in effect at the time of commencement of involvement in foreign gaming, a licensee granted preliminary approval for involvement in foreign gaming must file with the Executive Director an application for final approval for involvement in foreign gaming as soon as practicable, but in no event later than thirty (30) days after the execution of a definitive agreement pertaining to the proposed involvement or at such time as any application for licensing or related approval is made to the foreign jurisdiction for the proposed involvement, whichever occurs first. (h) If the Commission does not grant or deny the application for final approval for involvement in foreign gaming for which preliminary approval was granted within ninety (90) days after the filing of such application, unless waived by the applicant, the licensee may commence the involvement in foreign gaming for which final approval was sought. (Adopted: 12/30/1992.)

History

• Source: Miss. Code Ann. § 75-76-34

13 Miss. Admin. Code Pt. 2, R. 12.2 Application For Final Approval For Involvement In Foreign Gaming

(a) Unless a licensee has been granted continuous approval for involvement in foreign gaming, an application for final approval for involvement in foreign gaming must be filed with the Executive Director as soon as practicable and in no event later than thirty (30) days after the execution of a definitive agreement pertaining to the proposed involvement or at such time as any application for licensing or related approval is made to the foreign jurisdiction, whichever occurs first. The application shall be made on such forms as may be prescribed by the Executive Director. Failure to timely file an application may constitute grounds for denial. (b) The application must: 1. Provide information about the proposed involvement in foreign gaming, to the extent it is practicable, as would be required in an application for a similar involvement in Mississippi gaming; 2. Provide a description of the regulatory system that will govern the proposed involvement in foreign gaming; and 3. An application/investigation fee of two thousand dollars ($2,000.00). The application shall pay the cost of any additional investigation as required by the Executive Director. (c) The applicant shall file with the application a descriptive index of all application forms and related documents filed with the foreign jurisdiction by the applicant or by any entity affiliated with the applicant. (d) The applicant shall maintain within the State of Mississippi, and make available for examination by the Executive Director, executed copies of all application forms and related documents filed with the foreign jurisdiction by the applicant or by any applicant affiliated with the applicant. (e) The Commission shall consider all relevant information in considering the application, including, but not limited to, the following: 1. Whether the applicant has provided sufficient reason for belief that the foreign gaming operation for which involvement is proposed will be conducted in

accordance with the standards of honesty and integrity required of gaming activities in Mississippi and will pose no threat to gaming control in this state; 2. Whether an effective accounting system will be implemented in the foreign gaming operation for which involvement is proposed that will prevent the employment of any techniques that could result in the avoidance of any Mississippi gaming license fees or taxes; 3. The business history of the licensee, including its record of financial stability, and the integrity, duration, scope and success of its operations in Mississippi and elsewhere; 4. The current business activities and investments of the licensee and its gaming affiliates; 5. The regulatory history of the licensee and its affiliates in Mississippi and in foreign jurisdictions; 6. The availability and accessibility in Mississippi of information to the Commission regarding the Mississippi operation and the involvement in the foreign jurisdiction for which application has been made; 7. The extent of personnel capable of managing both the licensee's Mississippi gaming businesses and the foreign gaming operation; 8. Whether the foreign gaming operation will create a significant risk that the licensee or its gaming affiliates will not satisfy their financial obligations as they become due; 9. Whether the foreign gaming operation will create a significant risk that the licensee or its gaming affiliates will not satisfy all financial and regulatory requirements imposed by the laws of Mississippi and the regulations of the Commission; and 10. The current financial status and structure of the applicant, both within and without Mississippi, including historical and perspective balance sheets and statements of operation for business activities in Mississippi and other jurisdictions, key financial statistics such as debt to equity ratios and other financial data. (f) The final approval may be limited or conditioned in any manner deemed reasonable by the Commission. (Adopted: 12/30/1992.)

History

• Source: Miss. Code Ann. § 75-76-205, 75-76-251, 75-76-273

13 Miss. Admin. Code Pt. 2, R. 12.3 Rule 12.3

Application For Continuous Approval For Involvement In Foreign Gaming (a) A licensee who has been granted continuous approval for involvement in foreign gaming is exempt from compliance with preliminary approval and final approval, unless otherwise required by the Commission. (b) An application for continuous approval for involvement in foreign gaming shall be: 1. Made on such forms as may be prescribed by the Executive Director; 2. Accompanied by an application fee of four thousand dollars ($4,000.00), the applicant shall pay the cost of any additional investigation as required by the Executive Director; and 3. Be supplemented by such information as the Executive Director may request. (c) By filing the application, the licensee agrees: 1. To conduct any foreign gaming operations in accordance with the standards of

honesty and integrity required for gaming activities in this state; 2. That foreign gaming operations will be lawfully conducted in the foreign jurisdiction, and that the licensee's involvement will pose no threat to gaming control in Mississippi; and 3. To utilize an effective accounting system in the foreign jurisdiction which is designed to prevent the employment of techniques to avoid payment of Mississippi license fees and taxes. (d) The Commission shall consider all relevant information in determining whether to grant continuous approval including, but not limited to, the following: 1. The business history of the applicant, including its record of financial stability, and the integrity, duration, scope and success of its operations in Mississippi and elsewhere; 2. The current business activities and investments of the applicants and its gaming affiliates; 3. The current financial status and structure of the applicant, both within and without Mississippi, including historical and perspective balance sheets and statements of operation for business activities in Mississippi and other jurisdictions, key financial statistics such as debt to equity ratios and other financial data; 4. The regulatory history of the applicant and its affiliates in Mississippi and in foreign jurisdictions; 5. The availability and accessibility in Mississippi of information regarding the Mississippi operation and any foreign operation; 6. The extent of personnel capable of managing both the Mississippi operation and the foreign operation; 7. Whether a foreign gaming operation will create an significant risk that the applicant or its gaming affiliates will not satisfy their financial obligations as they become due; and 8. Whether a foreign gaming operation will create a significant risk that the applicant or its affiliates will not satisfy all financial and regulatory requirements imposed by the laws of Mississippi and the regulations of the Commission. (e) The Commission may grant continuous approval to participate in foreign gaming for a period of up to two (2) years and may impose whatever conditions upon a continuous approval to participate in foreign gaming operations it deems reasonable. (f) A licensee who has received continuous approval to participate in foreign gaming must continuously and promptly inform the Executive Director of each and every material action or step taken concerning a specific transaction, leading up to the execution of a definitive agreement for the conduct of foreign gaming. (g) After receiving continuous approval, a licensee intending to commence foreign gaming operations shall notify the Executive Director of his intent as soon as practicable, but in no event later than forty-five (45) days before actual commencement of the operations and shall provide documentation related to such proposed operation that must include in addition to any other information required by the Executive Director: 1. The information required by Mississippi Gaming Commission Regulation Part 2, Rule 12.2 (c) and (d); 2. A complete description of the dealings or arrangements between the applicant, affiliates and unaffiliated parties or foreign governments; and

3. A complete description of sources of financing for the proposed venture. (h) Upon commencement of foreign gaming operation in each jurisdiction, the licensee shall: 1. Engage the services of an independent public accounting firm of good standing and reputation to perform a certified audit, or reasonable equivalent, of the foreign gaming operation for the purpose of rendering an opinion; 2. Submit an annual operational and regulatory status report specifically addressing regulatory compliance, audit procedures and surveillance procedures relating to the foreign gaming operation; 3. Report to the Executive Director within thirty (30) days after the end of each quarter regarding the occurrence or absence of the following: i. Any changes in ownership or control of any interest in the subject foreign gaming operation; ii. Any changes in officers, directors or key personnel earning at least one hundred thousand dollars ($100,000.00) or more, or its equivalent; iii. All gaming-related complaints, disputes, orders to show cause and disciplinary actions instituted by the foreign jurisdiction. This must include, but not be limited to, all matters, contested or not, in which a gaming regulatory agency presides or is a party thereto; iv. All arrests made of employees of the foreign affiliate of the licensee involving gaming cheating or theft in the foreign jurisdiction. The report must include the name, position, charge, arresting agency and a brief description of the event; and v. All arrests or convictions of officers, directors, key employees and equity owners of the licensee's affiliate in the foreign jurisdiction, regarding offenses which would constitute a gross misdemeanor or felony in the State of Mississippi. The report must include the name, position, charge, arresting agency and a brief description of the event. 4. Comply with any additional reporting or other requirements as may be imposed by the Commission; 5. File with the Executive Director copies of annual audited financial statements of the foreign gaming operation; 6. Provide to the Executive Director access to all files, books, records, photographs and memoranda related to the foreign operations and provide copies of said documents when requested, and provide immediate access to all gaming-related areas to the Executive Director or his representative upon request; and 7. The Executive Director may, in his sole discretion and at the applicant's expense, employ an independent public accounting firm to make observations of the foreign gaming operation and to render a report to the Executive Director; and may conduct, at the expense of the licensee, other on-site inspections of the foreign gaming operation. (i) Unless otherwise ordered by the Commission, the Executive Director may issue an interlocutory stop order. The stop order may be issued for any cause deemed reasonable by the Executive Director. If a stop order is issued by the Executive Director pursuant to the provisions of this regulation, the Commission shall, upon request of the person that is the subject of the order, conduct a hearing on the merits of the matter no later than its next regular meeting for which notice of the hearing is practicable.

(j) The Commission may revoke, suspend, condition, limit or restrict any approval granted pursuant to this section. A continuous approval shall not apply to any jurisdiction which by law would prohibit the Executive Director and commission access to the books, records, documents, files, photographs, exhibits, memoranda or other records of the foreign affiliate; or to any gaming operation which is unlawful or which in any manner violates any federal, state, county or local law, statue or regulation. (Adopted: 12/30/1992.)

History

• Source: Miss. Code Ann. §§ 75-76-251, 75-76-253, 75-76-273

13 Miss. Admin. Code Pt. 2, R. 12.4 Waiver Of Certain Foreign Gaming Activities

(a) Pursuant to Miss. Code Ann. §75-76-271(5), the Mississippi Gaming Commission finds that consistent with the public policy of this state concerning gaming, the requirements of Miss. Code Ann. §75-76-269 through 75-76-277, inclusive, are waived for the following activities: 1. Any activity conducted within the fifty (50) states or any territory of the United States or, on board any cruise ship embarking from a port located therein; and 2. Any activity conducted outside the area described in subsection (a) (1) for which casino operator’s licensure or its equivalent is not required in order to legally conduct said activity. (b) Notwithstanding the foregoing subsection, a licensee must report any activity described in subsection (a) (1) by notifying the Executive Director in writing no later than thirty (30) days after the commencement of said activity. (Adopted: 06/21/2007.)

History

• Source: Miss. Code Ann. § 75-76-271

Chapter 13 LABOR ORGANIZATIONS

13 Miss. Admin. Code Pt. 2, R. 13.1 Labor Organization Registration Required

(a) Each labor organization, union or affiliate thereof representing or seeking to represent employees requiring work permits by the Commission and employed by a licensee, shall register with the Commission annually. (b) The Commission may exempt any labor organization, union or affiliate thereof from registration requirements where it is found that such labor organization, union or affiliate: 1. Is not the certified bargaining representative of any employee holding a work permit or employed by a licensee; and 2. Is neither involved nor seeking to be involved actively, directly, or substantially in the control or director of the representative of any such employee. Such exemption shall be subject to revocation upon disclosure of information which indicates that the affiliate does not or no longer meets the standards for exemption. (Adopted: 01/20/1993.)

History

• Source: Miss. Code Ann. § 75-76-131

13 Miss. Admin. Code Pt. 2, R. 13.2 Registration Statement

(a) In order to register, a labor organization, union or affiliate thereof shall file with the

Commission a "labor organization registration statement." The registration statement shall be completed and approved by the Executive Director prior to the labor organization becoming the certified bargaining representative for employees holding work permits and employed by a licensee. (b) Said statement shall be in the form prescribed by the Commission and shall include, without limitation, the following: 1. The names of all labor organizations affiliated with the registrant; 2. Information as to whether the registrant is involved or seeking to be involved actively, directly or substantially in the control or direction of the representation of any employee holding a work permit and employed by a licensee; 3. Information as to whether the registrant holds, directly or indirectly, any financial interest whatsoever in any licensee whose employees it represents; 4. The names of any pension retirement and welfare systems maintained by the registrant and all officers and agents of such systems; 5. The names of all officers, agents and principal employees of the registrant; and 6. All written assurances, consents, waivers and other documentation required of a registrant by the Commission. (Adopted: 01/20/1993.)

History

• Source: Miss. Code Ann. § 75-76-131

13 Miss. Admin. Code Pt. 2, R. 13.3 Registration Renewal

A labor organization registration shall be effective for one year. Any such registration may be renewed upon filing of an updated "labor organization registration statement" no later than one hundred twenty (120) days prior to the expiration of the current registration. The Commission shall act upon such application for renewal no later than thirty (30) days prior to the date of expiration of the current registration. (Adopted: 01/20/1993.)

History

• Source: Miss. Code Ann. § 75-76-131

13 Miss. Admin. Code Pt. 2, R. 13.4 Continuing Duty To Disclose

Every registered labor organization shall be under a continuing duty to promptly disclose to the Commission any change in the information contained in the "labor organization registration statement" or otherwise requested by the Commission. (Adopted: 01/20/1993.)

History

• Source: Miss. Code Ann. § 75-76-133

13 Miss. Admin. Code Pt. 2, R. 13.5 Federal Reports Exception

Notwithstanding the reporting requirements imposed by the regulations of the Commission, no labor organization, union, affiliate thereof or person shall be required to furnish any information which is included in a report filed by any labor organization, union, affiliated or person with the Secretary of Labor, pursuant to 29 U.S.C., section 431, et seq. (Labor- Management Reporting and Disclosure Act) or 29 U.S.C., section 1001 et seq. (Employee Retirement Income Security Act) if a copy of such report, or if the portion thereof containing

such information, is also furnished to the Commission. (Adopted: 01/20/1993.)

History

• Source: Miss. Code Ann. § 75-76-133

13 Miss. Admin. Code Pt. 2, R. 13.6 Qualification of Officers, Agent and Principal Employees

Every officer, agent and principal employee of a labor organization, union or affiliate thereof required to register with the Commission pursuant to this chapter and the regulations of the Commission shall be qualified in accordance with criteria contained in Mississippi Gaming Commission regulations. (Adopted: 01/20/1993.)

History

• Source: Miss. Code Ann. § 75-76-131

13 Miss. Admin. Code Pt. 2, R. 13.7 Qualification Procedure

(a) In order to be qualified, every officer, agent and principal employee of a labor organization, union or affiliate thereof required to register with the Commission pursuant to the regulations of the Commission shall file with the Commission a "labor organization individual disclosure form," which shall be completed, signed and filed in accordance with the requirements of this chapter, provided, however, that such a form need not be filed by an officer of a national or international labor organization where that officer exercises no authority, discretion or influence over the operation of such labor organization with regard to any employment matter relating to employees holding work permits and employed by a licensee; and provided, further, that any such officer of a national or international labor organization may be directed by the Commission to file a "labor organization individual disclosure form" or to provide any other information in the same manner and to the same extent as may be required of any other officer of a labor organization which is required to register under this chapter. (b) Each officer, agent or principal employee required to file a "labor organization individual disclosure form" shall do so initially at the time the pertinent labor organization, union or affiliate thereof applies or should apply for registration within thirty (30) days of the date the individual is elected, appointed or hired, whichever is later. (c) Following an initial finding of qualification, each qualified individual who has filed an initial "labor organization individual disclosure form" shall annually file with the Commission a properly completed, updated "labor organization individual disclosure form." Such form shall be filed with the Commission at the same time as the related labor organization renewal application. (Adopted: 01/20/1993.)

History

• Source: Miss. Code Ann. § 75-76-139

13 Miss. Admin. Code Pt. 2, R. 13.8 Waiver of Disqualification Criteria

Notwithstanding the qualification requirements as to any such officer, agent or principal employee, the Commission may waive any disqualification criteria upon a finding that the interests of justice so require. (Adopted: 01/20/1993.)

History

• Source: Miss. Code Ann. § 75-76-131

13 Miss. Admin. Code Pt. 2, R. 13.9 Interest in Licensee Prohibited

Neither a labor organization, union, or affiliate thereof nor its officers, agents and principal employees not otherwise individually holding work permits in accordance with the Gaming Control Act and employed by a licensee may hold any financial interest whatsoever in the licensee whose employees they represent. (Adopted: 01/20/1993.)

History

• Source: Miss. Code Ann. § 75-76-131

13 Miss. Admin. Code Pt. 2, R. 13.10 Failure to Comply; Consequences

(a) No labor organization, union or affiliate thereof required to register with the Commission shall receive any dues from or on behalf of or administer any pension, retirement or welfare funds from or on behalf of any employee holding a work permit and employed by a licensee or its agent: 1. If the said labor organization, union, or affiliate thereof shall fail to properly register with the Commission or provide all information requested by the Commission in accordance with the provisions of this chapter or the regulations of the Commission; 2. If any officer, agent or principal employee of such labor organization, union, or affiliate thereof shall fail to qualify in accordance with the provisions of this chapter or the regulations of the Commission; or 3. If the said labor organization, union, affiliate thereof or any officer or agent thereof shall hold a prohibited interest in a licensee. (b) Nothing herein shall be construed to limit the right of the Commission to impose any sanctions or take any action authorized by these regulations of the Gaming Control Act. (Adopted: 01/20/1993.)

History

• Source: Miss. Code Ann. § 75-76-137

Part 3 Part 3: Operations

Chapter 1 IN GENERAL

13 Miss. Admin. Code Pt. 3, R. 1.1 Methods Of Operation

(a) It is the policy of the Commission to require that all establishments wherein gaming is conducted in this state be operated in a manner suitable to protect the public health, safety, morals, good order and general welfare of the inhabitants of the State of Mississippi. (b) Responsibility for the employment and maintenance of suitable methods of operation rests with the licensee, and willful or persistent use or toleration of methods of operation deemed unsuitable will constitute grounds for license revocation or other disciplinary action. (Adopted: 09/25/1991; Amended: 09/17/1996.)

History

• Source: Miss. Code Ann. § 75-76-3

13 Miss. Admin. Code Pt. 3, R. 1.2 Grounds For Disciplinary Action

The Commission deems any activity on the part of any licensee, his agents or employees, that is inimical to the public health, safety, morals, good order and general welfare of the people of the State of Mississippi or that would reflect or tend to reflect discredit upon the State of Mississippi or the gaming industry, to be an unsuitable method of operation and shall be grounds for disciplinary action by the Commission in accordance with the Mississippi Gaming Control Act and the regulations of the Commission. Without limiting the generality of the foregoing, the following acts or omissions may be determined to be unsuitable methods of operation: (a) Failure to exercise discretion and sound judgment to prevent incidents which might reflect on the repute of the State of Mississippi and act as a detriment to the integrity of the industry; (b) Permitting persons who are visibly intoxicated to participate in gaming activity; (c) Complimentary service of intoxicating beverage in the casino area to persons who are visibly intoxicated; (d) Failure to conduct advertising and public relations activities in accordance with decency, dignity, good taste, honesty and inoffensiveness; (e) Catering to, assisting, employing or associating with, either socially or in business affairs, persons of notorious or unsavory reputation or who have extensive police records, or persons who have defied congressional investigative committees, or other officially constituted bodies acting on behalf of the United States, or any state, or persons who are associated with or support subversive movements, or the employing either directly or through a contract, or any other means, of any firm or individual in any capacity where the repute of the State of Mississippi or the gaming industry is liable to be damaged because of the unsuitability of the firm or individual or because of the unethical methods of operation of the firm or individual; (f) Employing in a position for which the individual could be required to obtain a finding of suitability, any person who has been denied a state gaming license on the grounds of unsuitability or who has failed or refused to apply for a finding of suitability when so requested by the Commission; (g) Employing in any gaming operation any person whom the Commission or any court has

found guilty of cheating or using any improper device in connection with any game, whether as a licensee, dealer, or player at a licensed game or device; as well as any person whose conduct of a licensed game as a dealer or other employee of a licensee resulted in revocation or suspension of the license of such licensee; (h) Failure to comply with or make provision for compliance with all federal, state and local laws and regulations pertaining to the operations of a licensed establishment including, without limiting the generality of the foregoing, payment of all license fees, withholding any payroll taxes, liquor and entertainment taxes and antitrust and monopoly statutes. (i) The Mississippi Gaming Commission in the exercise of its sound discretion can make its own determination of whether or not the licensee has failed to comply with the aforementioned, but any such determination shall make use of the established precedents in interpreting the language of the applicable statutes. Nothing in this section shall be deemed to affect any right to judicial review; 1. Possessing or permitting to remain in or upon any licensed premises any cards, dice, mechanical device or any other cheating device whatever, the use of which is prohibited by statute or ordinance, or 2. Conducting, carrying on, operating or dealing any cheating or thieving game or device on the premises, either knowingly or unknowingly, which may have in any manner been marked, tampered with or otherwise placed in a condition, or operated in a manner, which tends to deceive the public or which might make the game more liable to win or lose, or which tends to alter the normal random selection of criteria which determine the results of the game; (j) Failure to conduct gaming operations in accordance with proper standards of custom, decorum and decency, or permit any type of conduct in the gaming establishment which reflects or tends to reflect on the repute of the State of Mississippi and act as a detriment to the gaming industry; (k) Issuing credit to a patron to enable the patron to satisfy a debt owed to another licensee or person, including an affiliate of the licensee. This subsection shall not prohibit a licensee from collecting a debt owed to an affiliate of the licensee; (l) Denying commission member, employee or agent, upon proper and lawful demand, access to, inspection or disclosure of any portion or aspect of a gaming establishment as authorized by applicable statutes and regulation. (Adopted: 09/25/1991; Amended: 09/17/1996.)

History

• Source: Miss. Code Ann. § 75-76-3

13 Miss. Admin. Code Pt. 3, R. 1.3 Unauthorized Games

No licensee shall permit any game other than those specifically named in the Act as a "game" or "gambling game" to be operated without first applying for and receiving permission from the Commission to operate such game and, if permission is granted, thereafter obtaining all required licenses for the same. (Adopted: 09/25/1991; Amended: 09/17/1996.)

History

• Source: Miss. Code Ann. §§ 75-76-3

13 Miss. Admin. Code Pt. 3, R. 1.4 Changing Of Games

(a) The Commission will issue to all nonrestricted licensees a certificate of payment of fees indicating the actual games authorized to be exposed for play in the establishment. When a

licensee wishes to change games he shall request permission of the Executive Director and obtain an amended certificate from the Commission. (b) Failure to comply with the above requirements will result in assessment of fees on the new game without allowance of credit for the game replaced. Penalties provided by law for failure to pay license fees when due may also be assessed. (Adopted: 09/25/1991; Amended: 09/17/1996.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 3, R. 1.5 Unlicensed Games Or Devices

(a) No gambling games shall be operated upon the premises of a licensee, nor shall a licensee expose in an area accessible to the public any game, or gaming device which may be used in the operation of a gambling game without first having paid all current fees and taxes applicable to such games. (b) Whenever a licensee desires to temporarily remove or suspend a game from a licensed status, the licensee shall provide advanced written notice to the Executive Director stating the type and number of games sought to be suspended, the initial date and duration of the proposed suspension, and in addition to such notice, the licensee shall thereafter physically remove the game or gaming device from any area exposed to the public; provided, however, a game or gaming device may remain in a public area while in an unlicensed status if the licensee, in addition to the foregoing written notification, removes from the game or gaming device all detachable fixtures such as drop boxes, chip racks, wheelheads, cages, and other similar removable items, and also covers any nondetachable chip rack and any chip rack space with a device capable of being locked and sealed in place; thereafter, the game or gaming device shall be inspected and sealed by the Executive Director and allowed to remain in a public area. (c) Before any game or gaming device suspended from a licensed status in accordance with the foregoing procedure may be reactivated and placed into play, the licensee shall advise the Executive Director in writing of its intention and date to reactivate such game, and pay all fees and taxes applicable to said game, and upon the Executive Director's reinspection of any game or gaming device previously sealed, the game or gaming device may be exposed to play. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 3, R. 1.6 Posting Of Rules

Each licensee shall conspicuously display the rules of each gambling game it exposes for play. This section may be satisfied if published rules are maintained in a location readily accessible to players and notice of the location of such rules is posted conspicuously in the casino. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-3

13 Miss. Admin. Code Pt. 3, R. 1.7 Publication Of Payoffs

(a) Payoff schedules or award cards applicable to every licensed game or slot machine shall be displayed at all times either on the table or machine or in a conspicuous place immediately adjacent thereto. In the case of crap, keno and faro games the foregoing requirement will

be satisfied if published payoff schedules are maintained in a location readily accessible to players and notice of the location of such schedule is posted on or adjacent to the game. (b) Payoff schedules or award cards must accurately state actual payoffs or awards applicable to the particular game or device and shall not be worded in such manner as to mislead or deceive the public. Maintenance of any misleading or deceptive matter on any payoff schedule or award card or failure on the part of a licensee to make payment in strict accordance with posted payoff schedules or award cards may be deemed an unsuitable method of operation. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-3

13 Miss. Admin. Code Pt. 3, R. 1.8 Gaming By, and Issuance of Gaming Credit to Owners, Directors, Officers And Employees

(a) Except as provided in Subsection 2, no officer, director, owner, general manager, or key employee of an entity which holds a gaming license in this state, or of an affiliate or an affiliated company of an entity which holds a gaming license in this state, shall play or place a wager at any gambling game or slot machine owned, leased or possessed: 1. By that gaming licensee; or 2. By an affiliate or an affiliated company of that gaming licensee. i. Subsection 1 shall not apply to the playing or wagering on poker. ii. An employee may not play or place a wager at any gambling game or slot machine located on the premises of the employing licensee or an affiliate or an affiliated company of that employing licensee: • That is part of a wide area progressive slot system or network; or • while dressed in any uniform required by the employing licensee to be worn during the performance of his or her job duties. • A licensee shall not issue credit for purposes of gaming to any employees of that licensee or of an affiliate or affiliated company of an entity which holds a gaming license in this state, whether or not such credit is evidenced by a player card, wagering account or credit instrument. (b) This section does not prohibit an employee from playing gambling games in the course and scope of his employment as a shill or proposition player or as part of an investigation, provided that the licensee notifies the Executive Director in writing that the employee will be so employed. (Adopted: 09/25/1991; Amended: 07/21/1997; Amended: 11/18/1999)

History

• Source: Miss. Code Ann. § 75-76-211

13 Miss. Admin. Code Pt. 3, R. 1.9 Periodic Payments

(a) Except as provided in this regulation, a licensee shall remit the total prizes awarded to a patron as the result of conducting any game, including a tournament, contest, or promotional activity (hereinafter collectively referred to as “gaming or promotional activity”) conducted in Mississippi upon validation of the prize payout. (b) As used in this section of the regulation:

1. “Approved funding sources” means cash, U.S. GSE securities or U.S. Treasury securities that are used for the funding of a trust pursuant to subsection (c)(2) hereof or the reserve method of funding periodic payments pursuant to subsection (c)(3) hereof. 2. “Brokerage firm” means an entity that: i. Is both a broker-dealer and an investment adviser; ii. Has one or more classes of its equity securities listed on the New York Stock Exchange or American Stock Exchange, or is a wholly-owned subsidiary of such an entity; and iii. Has assets under management in an amount of $10 billion or more as reported in its most recent report on Form 10-K or Form 10-Q filed with the United States Securities and Exchange Commission, or is a wholly-owned subsidiary of such an entity. 3. "Broker-dealer" means any person engaged in the business of effecting transactions in securities for the account of others or for his own account and: i. Is registered as a broker-dealer with the Mississippi Secretary of State pursuant to Section 75-71-301 of the Mississippi Code of 1972, as amended; or ii. Is exempt from registration pursuant to Section 75-71-105(b) of the Mississippi Code of 1972, as amended, and is registered as a broker-dealer with the United States Securities and Exchange Commission and the National Association of Securities Dealers pursuant to Title 15 USC 78o, as amended. iii. “Executive Director” means the Executive Director of the Mississippi Gaming Commission or his designee. iv. “Date of calculation” means the last day for which a discount rate was obtained prior to the conclusion of the validation period. 4. “Discount rate” means the current prime rate as published in the Wall Street Journal. For those licensees using the reserve method of funding pursuant to subsection (c)(3) hereof, “discount rate” means either: i. The aforementioned current prime rate; or ii. A blended rate computed from the various U.S. GSE securities or U.S. Treasury securities selected by the licensee for which quotes are obtained at least three times a month. 5. “Independent financial institution” means an institution that is not affiliated through common ownership with the licensee and is either: i. A bank or national banking association that is authorized to do business in this state, a banking corporation formed or regulated under the laws of this state or a wholly owned subsidiary of such a banking association or corporation that is formed or regulated under the laws of this state or a national bank with an office in Mississippi; or ii. An insurance company admitted to transact insurance in the State of Mississippi with an A.M. Best Insurance rating of at least “A+” or such other equivalent rating. 6. “Investment Adviser” means any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing or selling securities, or who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities and:

i. Is registered as an investment adviser with the Mississippi Secretary of State pursuant to Section 75-71-303 of the Mississippi Code of 1972, as amended; or ii. Is exempt from registration pursuant to Section 75-71-105(g) of the Mississippi Code of 1972, as amended, and is registered as an investment adviser with the United States Securities and Exchange Commission pursuant to Title 15 USC 80b-3a, as amended. 7. “Periodic payments,” for purposes of this regulation only, means a series of payments that are paid at least annually for prizes awarded through gaming or promotional activity. 8. “Present value” means the current value of a future payment or series of payments, discounted using the discount rate. 9. “Qualified prize” means the sum of periodic payments, awarded to a patron as a result of any gaming or promotional activity, payable over a period of at least 10 years. 10. “Qualified prize option” means an option that entitles a patron to receive from a licensee a single cash payment in lieu of receiving a qualified prize, or any remaining portion thereof, which shall be exercised no later than 60 days after validation of the qualified prize. 11. “Reserve” means a restricted account consisting of approved funding sources used exclusively to satisfy periodic payments of prizes arising from all gaming or promotional activity conducted in Mississippi. Any existing funding methods previously approved by the Executive Director or Commission must comply with this Regulation as of its effective date. The reserve shall not be less than the sum of the following: i. The present value of the aggregate remaining balances owed on all prizes awarded to patrons who are receiving periodic payments. For balances previously funded using U.S. GSE securities or U.S. Treasury securities, the discount rate on the date of funding shall be used for calculating the present value of this portion of the reserve. ii. An amount sufficient to pay the single cash payments offered in Conjunction with qualified prize options for prizes previously awarded for which elections have not been made by the patrons; iii. An amount sufficient to fully fund the present value of all prizes currently on public display for which periodic payments are offered; iv. If cash is used as the approved funding source, an amount equal to satisfy the current liabilities to all patrons receiving periodic payments due and payable within 12 months; and v. Any additional amounts administratively required by the Executive Director. 12. “Restricted account” means an account with an independent financial institution described in subsection (b)(5) hereof, or a brokerage firm, which is to be exclusively used for the reserve method of funding of gaming or promotional activity as provided in this regulation. 13. “Single cash payment” means a single discounted, lump-sum cash payment in the amount of the present value of the total periodic payments otherwise due and owing for a qualified prize, less the amount of any partial payment of such qualified prize previously made by the licensee to a patron.

14. “Trust” means an irrevocable fiduciary relationship in which one person is the holder of the title to the property subject to an equitable obligation to keep or use the property for the benefit of another. 15. “U.S. Government Sponsored Enterprise” or “U.S. GSE” means, for purpose of this regulation, either the Federal National Mortgage Association, also known as Fannie Mae, or the Federal Home Loan Mortgage Corporation, also known as Freddie Mac. 16. “U.S. GSE securities” means negotiable, senior, non-callable, debt obligations issued by a U.S. GSE that on the date of funding possesses an issuer credit rating equivalent to the highest investment grade rating given by Standards & Poor’s Rating Services and Moody’s Investors Service. 17. “U.S. Treasury securities” means a negotiable debt obligation issued and guaranteed by the U.S. Government. 18. “Validation period” means the period of time between when a patron has met the conditions required to receive a prize, and when the prize payout is validated. The validation period shall not exceed 72 hours, unless otherwise extended by the Executive Director. (c) Periodic payments of prizes awarded to a patron as a result of conducting any gaming or promotional activity may be made if the method of funding the periodic payments provides such payments to a patron through the establishment of any one of the following funding methods: 1. An irrevocable surety bond or an irrevocable letter of credit with an independent financial institution which will provide for either the periodic payments or a single cash payment for the remaining periodic payments should the licensee default on paying the scheduled periodic payments for any reason. The form of the written agreement establishing an irrevocable surety bond or the irrevocable letter of credit, and a written commitment to execute such bond or letter from the financial institution shall be submitted to the Executive Director for written approval no less than 45 days prior to the commencement of the gaming or promotional activity. 2. An irrevocable trust with an independent financial institution in accordance with a written trust agreement, the form of which shall be submitted to the Executive Director for written approval at least 45 days prior to the commencement of any new gaming or promotional activity, and which provides periodic payments from an unallocated pool of assets to a group of patrons and which shall expressly prohibit the patron from encumbering, assigning or otherwise transferring in any way his right to receive the deferred portion of the prizes except to his estate. The assets of the trust shall consist of approved funding sources in an amount sufficient to meet the periodic payments as required. 3. A reserve maintained at all times by a licensee, together with the continuing satisfaction of and compliance with certain financial ratios and tests, and monitoring and reporting procedures related thereto. The conditions under which a reserve method may be used shall be prescribed by the Executive Director in a written notice distributed to licensees and all interested persons. The Executive Director, after whatever investigation or review he deems necessary, may grant, on a case-by-case basis, written approval of such other conditions as the Executive Director deems appropriate and consistent with this regulation. Licensees shall

notify the Executive Director in writing at least 45 days prior to the commencement of any new gaming or promotional activity for which periodic payments may be used. The reserve method for funding periodic payments shall not be implemented or used until approved in writing by the Executive Director. 4. Another method of providing the periodic payments to a patron consistent with the purpose of this regulation and which is approved by the Commission prior to the commencement of the gaming or promotional activity. Proposed modifications to a periodic payment plan previously approved by the Commission shall be submitted to the Executive Director for review at least 45 days prior to the effective date of change. The Executive Director, after whatever investigation or review he deems necessary, may administratively approve in writing the modification or require the licensee to submit the requested modification to the Commission for review and approval. (d) The funding of periodic payment plans shall be completed within 30 days of the conclusion of the validation period, or where a qualified prize option is offered for such prize payout, within 30 days of the date the patron makes an election thereunder. Where a single cash payment is elected, the licensee shall pay to the patron in cash, certified check or wire transfer the full amount less any prior payment(s) within 15 days after receiving the patron’s written notification of such election. (e) Periodic payments shall not be used for prize payouts of $100,000.00 or less. Periodic payments for total amounts won greater than $100,000.00 shall be paid as follows: 1. For amounts won greater than $100,000.00, but less than $200,000.00, payments shall be at least $10,000.00 annually; 2. For amounts won equal to or in excess of $200,000.00, payments shall be no less than 1/20th of the total amount annually; 3. For amounts won equal to or in excess of $5,000,000.00, payments shall be made in the manner set forth in (2), above, or in such manner as approved by the Commission upon application by the licensee; and 4. The first installment payment shall be made upon the conclusion of the validation period, notwithstanding that a qualified prize option may be offered to the patron. In the event that a qualified prize option is offered to a patron, it shall not be construed as a requirement that the patron shall receive a single cash payment instead of periodic payments. Waivers of subsections (e)(1), (2) and (3) hereof that have been previously granted by the Commission shall remain in full force and effect pursuant to the current terms and provisions of such waivers. (f) The licensee shall provide the Executive Director with an appropriate, signed legal document, prior to the commencement of any gaming or promotional activity for which periodic payments are to be offered, that shall irrevocably and unconditionally remise, release, indemnify and forever discharge the State of Mississippi and the Commission and its members, employees, agents and representatives, including those of the Attorney General’s Office, of and from any and all claims, actions, causes of actions, losses, damages, liabilities, costs, expenses and suits of any nature whatsoever, in law or equity, including reasonable attorney’s fees, arising from any act or omission of the Commission and its members, employees, agents and representatives. (g) For any gaming or promotional activity for which periodic payments are used, the licensee shall provide a notice on each gaming device or, if no gaming device is used,

then in each gaming or promotional area specifically setting forth the terms of the periodic payment plan, and include in all radio, television, other electronic media, or print advertising that such prizes will be awarded using periodic payments. (h) Notwithstanding any other regulation to the contrary, if a licensee offers a qualified prize option to a patron who is awarded a qualified prize, the licensee shall provide the option to the patron in writing within 7 days after the conclusion of the validation period. Such written option shall explain the method used to compute the single cash payment, including the discount rate on the date of calculation, and shall state that the patron is under no obligation to accept the offer of a single cash payment and may nevertheless elect to receive the periodic payments for the qualified prize. (i) The licensee shall maintain the following amounts, as applicable, related to each gaming or promotional activity that uses periodic payments in calculating its minimum bankroll requirement for the purpose of complying with Rule 1.13: 1. For periodic payment plans approved in accordance with subsection (c)(1) hereof, the installment payments due within the next 12-month period for all amounts won or on public display for which the licensee will be making periodic payments. 2. For periodic payment plans approved in accordance with subsection (c)(2) hereof, the first installment payment, if not yet paid, and the present value of all future payments: i. For amounts won or awarded but for which the funding has not been completed; and ii. For all prizes which have not been won or awarded but are on public display, including a progressive meter. 3. An alternative amount and/or method required by the Executive Director to satisfy the minimum bankroll requirement for other approved funding plans used for periodic payments. (j) At all times the licensee is responsible for the payment of all prizes resulting from any gaming or promotional activity upon conclusion of the validation period, regardless of the method used to fund the periodic payments allowed under this regulation. In the event of a default by any financial institution with which the licensee has contracted to guarantee or make periodic payments, the licensee will be liable for the periodic payments owed to patrons. (k) At least annually, the licensee shall verify that the independent financial institution and brokerage firm being used to guarantee or remit periodic payments to patrons or hold approved funding sources related thereto continues to meet the applicable qualifications required by subsection (b) hereof. In the event that such entities are found to no longer meet the defined requirements, the licensee shall immediately notify the Executive Director of the change in status and within 30 days provide a written plan to comply with these requirements. (l) At least 60 days prior to cessation of operations, a licensee responsible for remitting periodic payments to patrons shall submit a plan to satisfy the liability for approval. The Executive Director, after whatever investigation or review he deems necessary, may grant written approval of the plan or may require such other conditions as the Executive Director deems necessary to satisfy the licensee’s liabilities. (m) Copies of the related contracts and agreements executed pursuant to subsections (c)(1), (c)(2) and (c)(4) hereof shall be submitted to the Executive Director within 30 days after

execution. For all methods of funding periodic payments, the licensee must maintain documents, executed contracts and agreements for a period of no less than the duration of the periodic payments plus five years thereafter. (n) Where a licensee is found to be in noncompliance with the funding requirements provided in this regulation, the Executive Director may require the licensee to immediately cease offering any gaming or promotional activity for which periodic payments are used and/or he may require other or additional corrective action. (o) Any failure of the licensee to maintain full compliance with each and every provision set forth in this regulation, including the Executive Director’s requirements established pursuant to subsection (c)(3) hereof, or any failure of the licensee to immediately notify the Executive Director of any noncompliance thereof, shall constitute an unsuitable method of operation. Such noncompliance may subject the licensee to disciplinary action. Any approvals granted by the Commission and/or the Executive Director pursuant to this Regulation shall not relieve the licensee of its responsibilities and obligations to fully comply with this Regulation. (p) The Commission may waive one or more of the requirements of this regulation if it makes a written finding that such waiver is consistent with the public policy set forth in Section 75-76- 3(3) of the Mississippi Code of 1972, as amended. (Adopted: 09/25/1991; Amended: 09/21/2000; Amended: 11/20/2002)

History

• Source: Miss. Code Ann. § 75-76-3

13 Miss. Admin. Code Pt. 3, R. 1.10 Finder's Fees

(a) Except as limited by subsection (b), the term "finder's fee" means any compensation in money in excess of the sum of $10,000.00, or real or personal property valued in excess of the sum of $10,000.00 which is paid or transferred or agreed to be paid or transferred to any person in consideration for the arranging or negotiation of an extension of credit to a licensee, a registered company, or applicant for licensing or registration if the proceeds of such extension of credit are intended to be used for any of the following purposes: 1. The acquisition of an interest in a gaming establishment or registered company. 2. To finance the gaming operations of a licensed gaming establishment. (b) The term "finder's fee" shall not include: 1. Compensation to the person who extends the credit. 2. Normal and customary payments to employees of the person to whom the credit is extended if the arranging or negotiation of credit is part of their normal duties. 3. Normal and customary payments for bona fide professional services rendered by lawyers, accountants, engineers and appraisers. 4. Underwriting discounts paid to a member of the National Association of Securities Dealers, Inc. (c) It is an unsuitable method of operation for any licensee, registered company or applicant for licensing or registration to pay a finder's fee without the prior approval of the Commission, acting upon a recommendation of the Executive Director. An application for approval of payment of a finder's fee shall make a full disclosure of all material facts. The Commission may disapprove any such application if the person to whom the finder's fee is proposed to be paid does not demonstrate that he is suitable to hold a state

gaming license. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-3,75-76-175

13 Miss. Admin. Code Pt. 3, R. 1.11 Collection Of Gaming Credit

(a) Only bonded, duly licensed collection agencies, or a licensee's employees, junket representatives, attorneys, or affiliated or wholly-owned corporation and their employees may collect, on the licensee's behalf and for any consideration, gaming credit extended by the licensee. (b) Notwithstanding the provisions of subsection (a), no licensee shall permit any person who has been found unsuitable, or who has been denied a gaming license or work permit, or who has had a work permit revoked, to collect, on the licensee's behalf and for any consideration, gaming credit extended by the licensee. (c) Each licensee shall maintain for the Executive Director's inspection records that describe credit collection arrangements and that include any written contracts entered into with the persons described in subsection (a), unless such persons are the licensee's key employees or junket representatives. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-181

13 Miss. Admin. Code Pt. 3, R. 1.12 Reports Of Violations

Each licensee shall immediately notify the Commission by telephone of the discovery of any violation or suspected violation of any criminal statute of this state or the United States, the Act or any regulation promulgated thereunder. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-27

13 Miss. Admin. Code Pt. 3, R. 1.13 Minimum Bankroll Requirements

Each licensed gaming establishment shall maintain, in such manner and amount as the Executive Director may approve or require, cash or cash equivalents in an amount sufficient to reasonably protect the licensee's patrons against defaults in gaming debts owed by the licensee; and sufficient to reasonably protect the licensee’s creditors and vendors against defaults on short-term debts owed by the licensee. The Executive Director shall distribute to licensees and make available to all interested persons a formula approved by the Commission by which licensees determine the minimum bankroll requirements of this section. If at any time the licensee's available cash or cash equivalents should be less than the amount required by this section, the licensee must immediately notify the Executive Director of this deficiency. Failure to maintain the minimum bankroll required by this section, or a higher bankroll as required by the Executive Director pursuant to this section, or failure to notify the Executive Director of any deficiencies, constitutes reasonable cause for disciplinary action. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-3

13 Miss. Admin. Code Pt. 3, R. 1.14 Posting Of Address Of Gaming Commission

Each licensed gaming establishment shall conspicuously post on the premises the address of the Mississippi Gaming Commission. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-3

13 Miss. Admin. Code Pt. 3, R. 1.15 Admission Fees

(a) All licensees charging an admission fee must give a ticket good for one admission to each person having entered the casino operation for the purpose of gambling. Said ticket shall be valid for a period of the next twenty-four (24) hours after the patron's initial admission and shall have the date and time of initial admission imprinted on the ticket. (b) All licensees charging an admission fee shall have an entrance that has been approved by the Executive Director. Said entrance shall not block ingress or egress to the casino. All patrons must enter through an approved entrance. (Adopted:12/30/1992; Amended: 12/16/1993.) (c) All monies collected from admission fees shall be accounted for and itemized on a form provided by the Commission, which are due on a weekly basis as directed by the Executive Director. (d) All fees free passes shall be logged with the patron’s name and the day in which the pass was issued and utilized. Such logs are not public records within the meaning of the Gaming Control Act and shall only be made available for inspection by Gaming Commission enforcement personnel. (e) All persons who have oral or written arrangements with a licensee regarding junkets, admissions or transportation to and from the casino, shall be immediately identified and brought forward to the Commission for an investigation of suitability, pursuant to MGC Reg. Part 3 Chapter 7. (Adopted: 12/30/1992; Amended: 12/16/1993.)

History

• Source: Miss. Code Ann. § 75-76-3

13 Miss. Admin. Code Pt. 3, R. 1.16 Tournaments and Promotions

(a) A Licensee conducting tournaments shall submit the rules and procedures for the tournament to the Mississippi Gaming Commission 7 days prior to commencement of the activity. The MGC must be notified of any change to the original rules and/or the procedures, including cancellations. Rules must be made easily accessible to patrons by signage conspicuously displayed in the casino. The rules must contain the verbiage: The MGC reserves the right to investigate any and all complaints and disputes regarding tournaments. Such disputes and complaints will be resolved in accordance with the Mississippi Gaming Control Act and Mississippi Gaming Commission regulations. Management reserves the right to cancel, change, and modify the tournament with prior notification to the Mississippi Gaming Commission. (b) A Licensee must maintain a record of all tournaments and promotions and make available the rules and procedures to the Mississippi Gaming Commission and

patrons upon request. Licensees shall notify each patron who has a complaint of the patron complaint resolution process, which includes tournaments and promotional activities. (c) Disciplinary action may be taken against a licensee offering a promotion or tournament that is illegal or against Miss. Code Ann. § 75-76-3.

Chapter 2 OPERATION OF GAMING DEVICES.

13 Miss. Admin. Code Pt. 3, R. 2.1 Counting Of Gaming Devices For Purposes Of Tax And License Fees

(a) Tax and license fees shall be paid on one slot machine when: 1. Only one person has the opportunity to insert currency into a single receptacle; and 2. That person has the opportunity to receive cash, premiums, merchandise, tokens or anything of value whatsoever based upon a single means of determining such win or based upon multiple payout lines within a single display unit. (b) Tax and license fees shall be paid on more than one machine and shall be assessed on the number of means of determining such win or winnings when: 1. The slot machine affords one person the opportunity to insert currency into a multiple number of receptacles; and 2. That person has the opportunity to receive cash, premiums, merchandise, tokens or anything of value whatsoever based upon multiple means of determining such win or winnings. (c) Tax and license fees shall be paid on more than one machine and shall be assessed per player position when: 1. The slot machine affords more than one person the opportunity to play; and 2. Affords each person the opportunity to win independently of and separate from any other person. (d) Whenever a slot machine is available for play by the public, there must be present on the premises a responsible person to assist an agent of the Commission in counting and certifying the number of slot machines exposed for play, accessing system reports and conducting diagnostic testing as would be required by an agent during an MGC investigation. (e) Each licensee shall authorize this responsible person to verify and sign the slot count form. (f) Not having a responsible person available on the premises to assist in the counting of slot machines is an unsuitable method of operation and the count conducted at that time by the agent of the Commission will be presumed to be an accurate and correct tally of machines exposed for play for the purpose of administering license fees and the annual tax. (g) All slot machine drop buckets and currency acceptor boxes shall be removed from their respective slot machines at times submitted in writing and approved by the Executive Director. At least two persons shall perform the drop function and shall be present at all times during the drop, one (1) of whom is independent of the department responsible for the generation of revenue being counted. Surveillance shall actively monitor all drop activities. The removal of slot machine drop buckets and currency acceptor boxes shall be without any interruptions so that an observer may be able to observe proper identification of drop buckets. The drop buckets and currency acceptor boxes must be transported directly to the count room where they shall be stored in a secure place or

immediately counted. In the event of a currency acceptor box electronic or mechanical malfunction, the licensee may perform an emergency drop on the malfunctioning device. Such emergency drop must be recorded on the casino surveillance systems. (Adopted: 09/25/1991; Amended: 06/25/2003; Amended 06/25/2010.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 2.2 Progressive Slot Machines

(a) As used in this section: 1. "Progressive jackpot" means a slot machine payoff that increases automatically over time or as the machine or another operated by a single licensee is played. 2. "Base amount" means the amount of the progressive jackpot initially offered before it increases. 3. "Incremental amount" means the difference between the amount of a progressive jackpot and its base amount. 4. “Wide area progressive jackpot” means a payoff on a slot machine that is part of a network of machines located at the establishments of more than one licensee, which payoff increases automatically over time or as that machine or others that are part of the network are played. (b) A meter that shows the amount of the progressive jackpot must be conspicuously displayed at or near the machines to which the jackpot applies. At least weekly each licensee shall record the amount shown on each progressive jackpot meter at the licensee's establishment except for those jackpots that can be paid directly by the slot machine or those offered in conjunction with a wide area progressive system. Explanations for meter reading decreases must be maintained with the progressive meter reading sheets, and where the payment of a jackpot is the explanation for a decrease the licensee shall record the jackpot payout form number on the sheet or have the number reasonably available. Each licensee shall record the base amount of each progressive jackpot the licensee offers. A progressive controller used to control communications between linked progressive machines shall be housed in a secure environment with accessibility only available to authorized personnel. (c) A licensee may limit a progressive jackpot to an amount that is equal to or greater than the amount of the jackpot when the limit is imposed. The licensee shall post a conspicuous notice of the limit at or near the machine or machines to which the limit applies. (d) A licensee shall not reduce the amount displayed on a progressive jackpot meter or otherwise reduce or eliminate a progressive jackpot unless: 1. A player wins the jackpot; 2. The licensee adjusts the progressive jackpot meter to correct a malfunction or to prevent the display of an amount greater than a limit imposed pursuant to subsection(c) and the licensee documents the adjustment and the reasons for it; 3. The licensee distributes the incremental amount to another progressive jackpot at the licensee's establishment and; i. The licensee documents the distribution; ii. Any machine offering the jackpot to which the licensee distributes the incremental amount does not require that more money be played on a single

play to win the jackpot than the machine from which the incremental amount is distributed; iii. Any machine offering the jackpot to which the incremental amount is distributed complies with the minimum theoretical payout requirement of Regulation Part 4 Rule 2.4; and iv. The distribution is completed within thirty (30) days after the progressive jackpot is removed from play or within such longer period as the Executive Director may for good cause approve. 4. The Executive Director, upon a showing of exceptional circumstances, approves a reduction, elimination, distribution, or procedure not otherwise described in this subsection, which approval is confirmed in writing. (e) A licensee shall not reserve progressive slot machines for specific patrons. (f) The operation of wide area progressive slot machines as part of a network of separate gaming facilities licensed by the Commission with an aggregate prize or prizes is allowed. The licensee of a wide area progressive slot system is subject to subsections (b) and (c) as well as any additional conditions imposed by the Commission. The licensee of a wide area progressive slot system shall not reduce the amount displayed on a wide area progressive jackpot meter or otherwise reduce or eliminate a wide area progressive jackpot unless: 1. A player wins the wide area progressive jackpot; 2. The wide area progressive licensee adjusts the progressive jackpot meter to correct a malfunction or to prevent the display of an amount greater than a limit imposed pursuant to subsection (c) above and that licensee documents the adjustment and the reasons for it; 3. The wide area progressive licensee distributes the incremental amount to another wide area progressive system or in proportional amounts to the slot systems of the separate establishments which are part of the network of participating gaming facilities and subsections (d)(3)(i) through (iv) above are satisfied. 4. The Executive Director, upon a showing of exceptional circumstances, approves a reduction, elimination, distribution, or procedure not otherwise described in this subsection, which approval is confirmed in writing. (g) Licensees shall preserve the records required by this section for at least three (3) years after they are made unless the Executive Director approves otherwise in writing. (Adopted: 09/25/1991; Amended: 03/16/2000.)

History

• Source: Miss. Code Ann. § 76-75-55

Chapter 3 CARD GAMES

13 Miss. Admin. Code Pt. 3, R. 3.1 Definitions

As used herein, the following terms shall have the following meanings: (a) Ante: A player's initial wager or predetermined contribution to the pot prior to the dealing of the first hand. (b) Call: A wager made in an amount equal to the immediately preceding wager. (c) Card game shill: An employee engaged and financed by the licensee as a player for the purpose of starting and/or maintaining a sufficient number of players in a card game.

(d) Card room bank: An imprest fund which is a part of and accountable to the licensee's casino cage or bankroll but which is maintained in the card room exclusively for the purposes set forth in Rules 8.5 and 8.6 of this regulation. (e) Card table bank: An imprest inventory of cash and chips physically located in the table tray on the card table and controlled by the licensee through accountability established with the card room bank. The card table bank shall be used only for the purposes set forth in Rule 8.5 of this regulation. (f) Check: To waive the right to initiate the wagering, but to retain the right to call after all the other players have either wagered or folded. (g) Hand: One game in a series, one deal in a card game, or the cards held by a player. (h) Pot: The total amount anted and wagered by players during a hand. (i) Promotional Progressive Pots and Pools: Pots and pools that are contributed to by poker patrons and distributed back to poker patrons based upon the occurrence of a predetermined event. (j) Proposition player: A person paid a fixed sum by the licensee for the specific purpose of playing in a card game who uses his own funds and who retains his winnings and absorbs his losses. (k) Raise: A wager made in an amount greater than the immediately preceding wager. (l) Rake-off: A percentage of the pot which may be taken by the licensee for maintaining or dealing the game. (m) Stake: The funds with which a player enters a game. (n) Stakes player: A person financed by the licensee to participate in a game under an arrangement or understanding whereby such person is entitled to retain all or any portion of his winnings. (o) Table tray: A receptacle used to hold the card table bank. (p) Time buy-in: A charge to a player, determined on a time basis, by the licensee for the right to participate in a game. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-5, 75-76-23

13 Miss. Admin. Code Pt. 3, R. 3.2 Card Game Drop Box Procedures

(a) Each card table shall have one card game drop box with the drop slot located at least four inches in front of the table tray and to the right thereof, unless the table is equipped with a drop slot located at least two inches to the right of and even with the top right-hand corner of the table tray, with a cover over the drop slot, which when activated will cause the rake to drop directly into the drop box. The card game drop box shall be a locked container marked with a permanent number corresponding to a permanent number on the card table and permanently marked to indicate game and shift, all of which markings shall be clearly visible at a distance of 20 feet. The locked drop box shall be locked to the card table with a lock that is keyed separately from the locked drop box itself. (b) All card game drop boxes shall be removed from their respective card tables at the times previously submitted in writing to and approved by the Executive Director. The removal of card game drop boxes shall be without any interruptions so that an observer may be able to observe the markings on the boxes. The boxes must be transported directly to the room designated for counting where they shall be stored in a secure place or immediately

counted. In the event of electronic or mechanical malfunction, or any other situation which prevents the placement of money in the drop box, the licensee may perform an emergency drop on the malfunctioning device. Emergency Drops require a secondary written notification to be filed with the Mississippi Gaming Commission. Such emergency drop must be recorded on the casino surveillance systems. Recordings of any emergency drop must be retained for fourteen (14) days. (c) For each card table where a jackpot eligible card game may be played, a jackpot drop box shall be installed with the drop slot located at least four inches in front of the table tray and to the left thereof, unless the table is equipped with a drop slot located at least two inches to the left of and even with the top left-hand corner of the table tray, with a cover over the drop slot, which when activated will cause the jackpot rake to drop directly into the jackpot drop box. The jackpot drop box shall be a locked container marked with a permanent number corresponding to a permanent number on the card table and permanently marked, all of which markings shall be clearly visible at a distance of 20 feet. The locked container shall be locked to the card table and shall be separately keyed from the container itself. (d) All jackpot drop boxes shall be removed from their respective card tables at the times previously submitted in writing to and approved by the Executive Director. The removal of jackpot drop boxes shall be without any interruptions so an observer may be able to observe the markings on the boxes. The boxes must be transported directly to the room designated for counting where they shall be stored in a secure place or immediately counted. In the event of electronic or mechanical malfunction, or any other situation which prevents the placement of money in the drop box, the licensee may perform an emergency drop on the malfunctioning device. Emergency Drops require a secondary written notification to be filed with the Mississippi Gaming Commission. Such emergency drop must be recorded on the casino surveillance systems, and a copy of this recording must be available for inspection by the Mississippi Gaming Commission for fourteen (14) days after the emergency drop is performed. (Adopted: 09/25/1991; Amended: 07/26/1993; Amended: 06/25/2003; Amended: 06/25/2010.)

History

• Source: Miss. Code Ann. § 75-76-23

13 Miss. Admin. Code Pt. 3, R. 3.3 Sale Of Stakes

No cash or chips received for the sale of stakes shall be commingled with any rake-offs or other compensation received by the licensee from the players for the right to play. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-23

13 Miss. Admin. Code Pt. 3, R. 3.4 Accounting For Transactions Between Card Table Bank And Card Room Bank

(a) When the card table bank is to be replenished with chips from the card room bank, all cash or chips to be transferred must be counted down by the dealer in public view on the card table and verified by the person who transports the cash or chips. (b) The transfer shall be preceded by the placement of appropriately designated marker buttons on the card table of a value equivalent to the cash or chips to be transferred

to the card room bank. Such marker buttons may only be removed by the dealer after the transaction has been completed. (c) Upon written approval of the Executive Director, those licensees wishing to utilize the casino cage in lieu of a card room bank may do so provided that the same procedures as set forth in this section and Rule 3.5 and Rule 3.11 of this regulation, and related provisions thereto, shall be followed by the casino cage for such transactions. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 3, R. 3.5 Limitations On The Use Of Card Room Banks And Card Table Banks

(a) Card room banks shall be used exclusively for the purposes of the issuance and receipt of shill funds, the maintenance of card table banks used in card games, and the purchase and redemption of chips by players. (b) Card table banks shall be used only for the purposes of making change or handling player buy-ins. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 3, R. 3.6 Rake-off And Time Buy-in

(a) The amount of any rake-off must be conspicuously posted at or near the table. Rake-offs shall only be pulled from the pot by the dealer in an obvious manner after each wager and call or at the completion of the hand. The rake-off shall be placed in a designated rake circle and shall remain in the designated rake circle until a winner is declared and paid. The rake-off shall then be dropped into the card game drop box. (b) The designated rake circle must be clearly visible to all players and shall be positioned in a location on the table where it is at least four inches from and in front of the table tray and at least eight inches from the table drop slot, unless the table is equipped with a drop slot located at least two inches to the right of and even with the top right-hand corner of the table tray, with a cover over the drop slot, which when activated will cause the rake to drop directly into the drop box; such drop slot shall serve as the rake circle. (c) All time buy-ins or other fees charged shall be immediately placed into the card game drop box. (d) The amount of any jackpot rake must be conspicuously posted at or near the table. The jackpot rake shall only be pulled from the pot by the dealer in an obvious manner as specified in the jackpot rules and procedures. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 3, R. 3.7 Posting Of Card Game Rules

Each licensee shall conspicuously display the rules of each card game it exposes for play. This section may be satisfied if published rules are maintained in a location readily accessible to players and notice of the location of such rules is posted conspicuously in the casino card room.

History

• Source: Miss. Code Ann. § 75-76-23

13 Miss. Admin. Code Pt. 3, R. 3.8 Bad Beat Jackpot

(a) A licensee may elect to offer a card room promotional activity involving a jackpot for one or more pre-designated high value hands when such a hand is held by a player as a losing hand. Such a promotion is defined as a Bad Beat Jackpot. (b) The jackpot shall be paid from a separate fund created and maintained from pot contributions at tables where a Bad Beat Jackpot will be offered. This fund shall meet the following criteria: 1. The fund shall consist of a primary jackpot amount with no more than two additional jackpot amounts. The primary jackpot will be the current Bad Beat Jackpot, which the amount shall be prominently and conspicuously displayed in the card room. 2. The remaining levels, if utilized, may be maintained without public display. The next available jackpot amount will automatically become the primary jackpot once the current Bad Beat Jackpot is paid out. 3. A separate escrow account shall be maintained for the purpose of re-seeding the lowest jackpot level. Funds in the escrow account shall be used for the purpose of re-seeding the Bad Beat Jackpot. 4. A second separate fund may be established by the casino licensee to fund card room promotions provided the funds are awarded to card room patrons participating in jackpot eligible card games of the type supplying the funds. 5. No more than thirty percent (30%) of the jackpot rake shall be distributed into the promotional fund. 6. The Bad Beat Jackpot levels shall not be capped or frozen. 7. The Bad Beat Jackpot levels shall not be used to fund promotional activities except that a small percentage of the primary jackpot may be offered as a mini-bad beat jackpot. 8. Any changes to the bad beat promotion may only be implemented after the current Bad Beat Jackpot is won. (c) A licensee offering a Bad Beat Jackpot shall post the rules in a conspicuous location within the card room. The rules shall include at a minimum: 1. The jackpot rake 2. The time of the day when the jackpot will be updated, which shall be no less than once per gaming day 3. The games eligible for the Bad Beat Jackpot 4. The qualifying hands with all specific requirements 5. The players qualifying for a portion of the jackpot 6. The percent of the jackpot awarded to each qualifying player 7. The procedure for Bad Beat Jackpot verification 8. The minimum age requirement to participate in the Bad Beat Jackpot

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 3.9 Discontinuing A Bad Beat Jackpot

(a) Once a bad beat jackpot has been established, the licensee shall not discontinue the jackpot except by a player winning the jackpot or unless the Executive Director approves otherwise.

(b) The licensee shall submit a proposal for discontinuing the bad beat jackpot to the local Mississippi Gaming Commission District Office. The proposal shall include the: 1. Proposed date for discontinuation of the jackpot. 2. Proposed manner for dispersing all jackpot levels and the escrow fund (i.e. changing the qualifying hands, etc.). (c) The licensee, upon approval by the Executive Director to discontinue the jackpot, shall cease taking a jackpot rake. (d) The licensee, upon approval by the Executive Director to discontinue the jackpot, may remove an amount equal to the initial jackpot seed from the escrow account. (e) The licensee shall post notification of the intent to discontinue the bad beat jackpot in a prominent and conspicuous manner in the card room.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 3.10 Card Tournaments

(a) The rules and procedures for all card room tournaments shall be submitted by the licensee to the Mississippi Gaming Commission at least ten (10) working days prior to commencement of the tournament. (b) A casino licensee may offer complimentary card room tournament entries provided the dollar value of the entry is added to the tournament prize pool. (c) All tournament wagers must be made with approved tournament chips provided by the licensee. No currency or other things of value shall be used as wagers. (d) Tournament chips shall never be redeemed for cash or other things of value except that the total represented by the players’ accumulation of tournament chips shall be used to determine the winner and/or final place in a tournament. (e) Card room tournaments shall only be conducted upon the licensees’ premises and only in areas approved by the Mississippi Gaming Commission. (f) Card room tournaments shall be video recorded by the licensees’ surveillance department. (g) Card room tournament rules may permit remaining players at the final table to split the prize pool between or among themselves without the necessity of continuing tournament play to finality, provided: 1. The agreement is unanimous. 2. The agreement is voluntary. 3. The option to split the prize pool is clearly stated in the tournament rules. (h) The card room tournament director shall not encourage the final players to end tournament play early and shall ensure that every player understands all agreements concerning an early end to the tournament and splitting of the prize pool must be voluntary and unanimous. (i) If the card room tournament director feels any player is being coerced or improperly pressured into an agreement with the other players, the tournament director shall not permit an early end to the tournament.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 3.11 Restrictions On Use Of Shills And Proposition Players

(a) Shills may not check and raise or play in any manner between themselves or in collusion

with others to the disadvantage of other players within the game. (b) Each establishment employing shills or proposition players shall identify such shills or proposition players upon request and shall display a sign clearly legible from each table which states: "Mississippi gaming regulations allow the use of shills and proposition players. Shills and proposition players shall be identified by management upon request." (c) Each licensee shall maintain, in a manner as in the case of all other employees, employment records on each individual engaged as a shill or proposition player. Each licensee must also maintain a list of all shills and proposition players at the card room bank, readily available for inspection. (d) Persons who participate in the management or supervision of games subject to this regulation shall not be permitted to act as a shill or proposition player. (e) All advances to and winnings of a shill shall be utilized only for wagering in card games or turned in to the card room bank at the conclusion of play. (f) No more than a combination of two shills and proposition players may play in a card game. (g) Shills may only wager chips or coins. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-23

13 Miss. Admin. Code Pt. 3, R. 3.12 Restrictions On Other Players

(a) Stakes players shall not be utilized by any licensee. (b) No dealer may wager in any game in which he is dealing. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-25

13 Miss. Admin. Code Pt. 3, R. 3.13 Promotional Progressive Pots and Pools

(a) The dollar amount of funds contributed by players into the pools is returned when won in accordance with the posted rules with no commission or administrative fee withheld. Payouts for promotional progressive pots, pools and any other promotion are to be prominently displayed or readily made available for patron review. (b) Payouts for promotional progressive pots or pools of any amount and any other promotion for an amount greater than or equal to $600.00 are documented to show the date, time, dollar amount of payout or description of personal property (e.g., car), reason for the payout (e.g., promotion name) and the signatures of the two employees one of which must be a card room manager verifying the payout.

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 4 OTHER GAMES

13 Miss. Admin. Code Pt. 3, R. 4.1 Operation Of Progressive Keno Games

(a) Prior to operating a progressive keno game, the licensee must have systems of record keeping, surveillance, and internal controls relative to the operation of the progressive

keno game approved by the Executive Director. (b) A licensee may impose a limit on a progressive keno game provided the limit imposed by the licensee is greater than the amount showing on the payoff indicator at the time the limit is imposed. (c) Notice of the progressive keno game payoff limit must be prominently posted at the location of the progressive keno game, and information as to how and in what amount the payoff amount is advanced until the limit is reached shall be readily available to the public in the vicinity of the progressive keno game. (d) A payoff indicator on a progressive keno game shall not be turned back to a lesser amount unless: 1. A player wins the amount displayed on the payoff indicator; 2. An adjustment becomes necessary to prevent the payoff indicator from showing a payoff greater than the limit; or 3. There is a malfunction, in which case an explanation must be entered as part of the system of records required by section (a) of this section; or 4. There is a dispute, as governed by subsections (f) and (g) of this section. (e) Once a payoff amount appears on the payoff indicator, that amount may not be decreased except as allowed by this section and must be permitted to remain until won by a player, except as may be otherwise approved by the Executive Director. Except as otherwise provided by this section, the amount appearing on the payoff indicator is an obligation to the licensee's patrons and it shall be the responsibility of the licensee, if he shall cease operation of the progressive keno game for any reason, including a transfer of ownership of the licensed gaming establishment, to arrange for satisfaction of that obligation in a manner approved by the Executive Director. (f) In the event of a patron dispute over a payoff of a progressive keno game, the licensee shall: 1. Unless the Executive Director orders otherwise, deposit the total progressive keno payoff amount in an escrow account approved by the Executive Director until an investigation into the dispute has been completed and a decision regarding payment has been rendered; and 2. Set the progressive keno meter to its base amount and continue operating the game. (g) If a patron dispute is resolved in favor of the licensee, the progressive keno payout must be returned to the meter, less the base figure amount. (h) Video progressive keno is subject to the provisions of Part 3 Chapter 2, Rule 2.2 governing progressive slot machines. (i) A licensee who operates a progressive keno game must at all times maintain a sufficient cash reserve or minimum bankroll to ensure that all obligations to patrons are met. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 5 CHIPS AND TOKENS

13 Miss. Admin. Code Pt. 3, R. 5.1 Definitions

As used in this regulation: (a) "Chip" means a non-metal or partly metal representative of value, redeemable for cash,

and issued and sold by a licensee for use at table games or counter games at the licensee's gaming establishment. (b) "Token" means a metal representative of value, redeemable for cash, and issued and sold by a licensee for use in slot machines or for use in slot machines and at table games or counter games at the licensee's gaming establishment. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.2 Approval Of Chips And Tokens; Applications And Procedures

(a) A licensee shall not issue any chips or tokens for use in its gaming establishment, or sell or redeem any such chips or tokens, unless the chips or tokens have been approved in writing by the Executive Director. A licensee shall not issue any chips or tokens for use in its gaming establishment or sell or redeem any such chips or tokens that are modifications of chips or tokens previously approved by the Executive Director unless the modifications have been approved in writing by the Executive Director. (b) Applications for approval of chips, tokens, and modifications to previously approved chips or tokens must be made, processed, and determined in such manner and using such forms as the Executive Director may prescribe. Each application must include, in addition to such other items or information as the Executive Director may require: 1. An exact drawing, in color of each side and the edge of the proposed chip or token, drawn to actual size or drawn to larger than actual size and in scale, and showing the measurements of the proposed chip or token in each dimension; 2. Written specifications for the proposed chips or tokens; 3. The name and address of the manufacturer; and 4. The licensee's intended use for the proposed chips or tokens. (c) If, after receiving and reviewing the items and information described in subsection (b), the Executive Director is satisfied that the proposed chips or tokens conform with the requirements of this regulation, the Executive Director shall notify the licensee in writing and shall request, and the licensee shall thereupon submit, a sample of the proposed chips or tokens in final, manufactured form. If the Executive Director is satisfied that the sample conforms with the requirements of this regulation and with the information submitted with the licensee's application, he shall approve the proposed chips or tokens and notify the licensee in writing. As a condition of approval of chips or tokens issued for use at a specific table or counter game, the Executive Director may prohibit the licensee from using the chips or tokens other than at the specified game. The Commission may retain the sample chips and tokens submitted pursuant to this subsection. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.3 Specifications For Chips And Tokens

(a) Chips and tokens must be designed, manufactured, and constructed in compliance with all applicable statutes, regulations, and policies of the United States, this state, and other states, and so as to prevent counterfeiting of the chips and tokens to the extent reasonably possible. Chips and tokens must not deceptively resemble any current or past coinage of

the United States or any other nation. (b) In addition to such other specifications as the Executive Director may approve: 1. The name of the issuing gaming establishment must be inscribed on one side of each chip and token; 2. The value of the chip or token must be inscribed on one side of each chip and token, other than chips used exclusively at roulette; 3. The manufacturer's name or a distinctive logo or other mark identifying the manufacturer must be inscribed on at least one side of each chip and token; and 4. Each chip must be designed so that when stacked with chips and tokens of other denominations and viewed on closed-circuit, black-and-white television, the denominations of the chip can be distinguished from that of the other chips and tokens in the stack. (c) The names of the city or other locality and the state where the establishment is located must be inscribed on at least one side of each chip and token unless the Executive Director finds, after application by a licensee, that such an inscription is not necessary because: 1. The name of the issuing establishment is unique to one readily identifiable establishment in all gaming jurisdictions; and 2. The inclusion of the city or other locality and the state is not necessary or beneficial for any regulatory purpose relating to the applicant. (d) Any application submitted pursuant to subsection (c) must be signed by the chief executive officer of the applicant and be on a form prescribed by the Executive Director. (e) Any approval for the deletion of such an inscription shall be in writing and be limited to that period of time in which the name of the licensee is limited to one establishment and conditioned so that it may be withdrawn in the future if the Executive Director determines that the deletion results in confusion with the chips or tokens of another establishment or if such inclusion is deemed necessary or beneficial for any regulatory purpose. (Adopted: 09/25/1991; Amended: 06/20/1996.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.4 Additional Specifications For Tokens

(a) Tokens must not be manufactured from material possessing sufficient magnetic properties so as to be accepted by a coin mechanism, other than that of a slot machine. (b) Tokens must not be manufactured from a three-layered material consisting of a copper- nickel alloy clad on both sides of a pure copper core, nor from a copper-based material, unless the total of zinc, nickel, aluminum, magnesium, and other alloying materials is at least twenty percent (20%) of the token's weight. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.5 Use Of Chips And Tokens

(a) A licensee that uses chips or tokens at its gaming establishment shall: 1. Comply with all applicable statutes, regulations, and policies of this state and of the United States pertaining to chips or tokens;

2. Sell chips and tokens only to patrons of its gaming establishment and only at their request; 3. Promptly redeem its own chips and tokens from its patrons; 4. Post conspicuous signs at its establishment notifying patrons that federal law prohibits the use of the licensee's tokens, and that state law prohibits the use of the licensee's chips, outside the establishment for any monetary purpose whatever; and 5. Take reasonable steps, including examining chips and tokens and segregating those issued by other licensees to prevent sales to its patrons of chips and tokens issued by another licensee. (b) A licensee shall not accept chips or tokens as payment for any goods or services offered at the licensee's gaming establishment with the exception of the specific use for which the chips or tokens were issued and shall not give chips or tokens as change in any other transaction. (c) A licensee shall not redeem its chips or tokens if presented by a person who the licensee knows or reasonably should know is not a patron of its gaming establishment, except that a licensee shall promptly redeem its chips and tokens if presented by: 1. Another licensee who represents that it redeemed the chips and tokens from its patrons and received them unknowingly, inadvertently, or unavoidably; or 2. An employee of the licensee who presents the chips and tokens in the normal course of employment. (d) A licensee shall not knowingly sell, use, permit the use of, accept, or redeem chips or tokens issued by another licensee, except as follows: 1. A licensee may redeem tokens issued by another licensee if: i. The tokens are presented by a patron for redemption to a cashier of the licensee's gaming establishment and the patron states that he or she received the tokens at the licensee's establishment from the payout chutes of slot machines or from an employee of the licensee; or ii. The tokens are presented by a patron at a table game, and the licensee redeems the tokens with tokens of its own, places the redeemed tokens in the table's drop box, and separates and properly accounts for the redeemed tokens during the count performed pursuant to the licensee's system of internal control; and 2. A licensee may redeem chips issued by another licensee if: i. The chips are presented by a patron for redemption at the cashier's cage of the licensee's gaming establishment; or ii. The chips are presented by a patron at a table game and the licensee redeems the chips with chips of its own, placed the redeemed chips in the table's drop box, and separates and properly accounts for the redeemed chips during the count performed pursuant to the licensee's system of internal control. (e) Chips whose use is restricted to uses other than at table games or other than at specified table games may be redeemed by the issuing licensee at table games or non-specified table games if the chips are presented by a patron, and the licensee redeems the chips with chips issued for use at the game, places the redeemed chips in the table's drop box, and separates and properly accounts for the redeemed chips during the count performed pursuant to the licensee's system of internal control. (Adopted: 09/25/1991.)

History

• Source: Miss Code Ann. §§ 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.6 Redemption And Disposal Of Discontinued Chips And Tokens

(a) A licensee that permanently removes from use or replaces approved chips or tokens at its gaming establishment, or that ceases operating its gaming establishment whether because of closure or sale of the establishment or any other reason, must prepare a plan for redeeming discontinued chips and tokens that remain outstanding at the time of discontinuance. The licensee must submit the plan in writing to the Executive Director not later than thirty (30) days before the proposed removal, replacement, sale, or closure, unless the closure or other cause for discontinuance of the chips or tokens cannot reasonably be anticipated, in which event the licensee must submit the plan as soon as reasonably practicable. The Executive Director may approve the plan or require reasonable modifications as a condition of approval. Upon approval of the plan, the licensee shall implement the plan as approved. Any discontinued chips or tokens must be destroyed within 3 years of being removed from the gaming floor unless otherwise approved by the Executive Director. (b) In addition to such other reasonable provision as the Executive Director may approve or require, the plan must provide for: 1. Redemption of outstanding, discontinued chips and tokens in accordance with this regulation for at least 120 days after the removal or replacement of the chips or tokens or for at least 120 days after operations cease as the case may be, or for such longer or shorter period as the Executive Director may for good cause approve or require; 2. Redemption of the chips and tokens at the premises of the gaming establishment or at such other location as the Executive Director may approve; 3. Publication of notice of the discontinuance of the chips and tokens and of the redemption and the pertinent times and locations in at least two newspapers of general circulation in this state at least twice during each week of the redemption period, subject to the Executive Director's approval of the form of the notice, the newspapers selected for publication and the specific days of publication; 4. Conspicuous posting of the notice described in paragraph (3) at the gaming establishment or other redemption location; and 5. Destruction or such other disposition of the discontinued chips and tokens as the Executive Director may approve or require. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.7 Destruction Of Counterfeit Chips And Tokens

(a) As used in this section, "counterfeit chips or tokens" mean any chip-or token-like objects that have not been approved pursuant to this regulation, including objects commonly referred to as "slugs," but not including coins of the United States or any other nation. (b) Unless a peace officer instructs or a court of competent jurisdiction orders otherwise in a particular case, licensees shall destroy or otherwise dispose of counterfeit chips and tokens discovered at their establishments in such manner as the Executive Director may approve or require. (c) Unless a peace officer instructs or a court of competent jurisdiction orders otherwise in a

particular case, licensees may dispose of coins of the United States or any other nation discovered to have been unlawfully used at their establishments by including them in their coin inventories or, in the case of foreign coins, by exchanging them for United States currency or coins and including same in their currency or coin inventories, or by disposing of them in any other lawful manner. (d) Each licensee shall record, in addition to such other information as the Executive Director may require: 1. The number and denominations, actual and purported, of the coins and counterfeit chips and tokens destroyed or otherwise disposed of pursuant to this section; 2. The month during which they were discovered; 3. The date, place, and method of destruction or other disposition, including, in the case of foreign coin exchanges, the exchange rate and the identity of the bank, exchange company, or other business or person at which or with whom the coins are exchanged; and 4. The names of the persons carrying out the destruction or other disposition on behalf of the licensee. (e) Each licensee shall maintain each record required by this subsection for at least three (3) years, unless the Executive Director approves or requires otherwise. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.8 Promotional And Tournament Chips And Tokens

(a) As used in this section, "promotional chip" means a chip- or token-like object issued by a licensee for use in promotions or tournaments at the licensee's gaming establishment. (b) Promotional chips must be designed, manufactured, approved, and used in accordance with the provisions of this regulation applicable to chips and tokens, except as follows: 1. Promotional chips must be of such shape and size and have such other specifications so as to be distinguishable from other chips and tokens as determined by the Executive Director; 2. Each side of each promotional chip must conspicuously bear the inscription "No Cash Value"; 3. Promotional chips must not be used, and licensees shall not permit their use, in transactions other than the promotions or tournaments for which they are issued; and 4. The provisions of Rule 5.7 of this regulation shall not apply to promotional chips. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.9 Other Instrumentalities

Other instrumentalities with which gaming is conducted must be designed, manufactured, approved, used, discontinued, destroyed, or otherwise disposed of in accordance with the provisions of this regulation applicable to chips and tokens, except as follows: (a) Such other instrumentalities must be of such shape, size, and design and have such other specifications as the Executive Director may approve or require; and

(b) The Executive Director, in his discretion, may deny approval of instrumentalities other than chips and tokens or may grant approval subject to such conditions as he considers appropriate. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.10 Receipt Of Gaming Chips Or Tokens From Manufacturer Or Distributor

(a) When chips or tokens are received from the manufacturer or distributor thereof, they shall be opened and checked by at least two (2) employees of the licensee from different departments. Any deviation between the invoice accompanying the chips or tokens and the actual chips or tokens received or any defects found in such chips or tokens shall be reported promptly to the Executive Director. (b) After checking the chips received, the licensee shall record in a chip inventory ledger the denomination of the chips received, the number of each denomination of chip received, the description of all chips received, the date of such receipt, and the signature of the individuals who checked such chips. (c) If any of the chips received are to be held in reserve and not utilized either at the gaming tables or at a cashier's cage, they shall be stored in a separate locked compartment either in the vault or in a cashier's cage and shall be recorded in the chip inventory ledger as reserve chips. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.11 Inventory Of Chips

(a) Chips shall be taken from or returned to the reserve chip inventory in the presence of at least two (2) individuals. The denominations, number and amount of chips so taken or returned shall be recorded in the chip inventory ledger together with the date and signatures of the individuals carrying out this process. (b) Each licensee shall, on a monthly basis, compute and record the unredeemed liability for each denomination of chips. The result of such inventory must be recorded in the chip inventory ledger. On a monthly basis, each licensee shall conduct an inventory of chips in reserve and the result of such inventory must be recorded in the chip inventory ledger. If the reserve chips are stored in a locked compartment that is sealed and tamper resistant, a physical inventory must be conducted annually, unless the compartment is opened, at which time an inventory must be conducted. (Amended: 03/15/2007.) (c) During nongaming hours all chips in the possession of the licensee shall be stored in the chip bank, in the vault, or in a locked compartment in a cashier's cage, except that chips may be locked in a transparent compartment on gaming tables provided that there is adequate security as approved by the Executive Director. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 5.12 Appeal To Commission

If the Executive Director denies any application required or permitted by this regulation, or withdraws any approval previously granted, the licensee may appeal the Executive Director's decision to the Commission within ten (10) days after the date of the decision. The appeal must be in writing and specify the reasons the licensee believes the Executive Director's decision is erroneous. No judicial review of the Commission's decision is permitted. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 6 SURVEILLANCE

13 Miss. Admin. Code Pt. 3, R. 6.1 Definitions

As used in this regulation: (a) "PTZ camera" means a video camera which possesses, at a minimum, pan, tilt, and zoom capabilities or features comparable thereto. (b) "Dedicated camera" means a video camera which is required by this regulation or an order of the Executive Director, Commission or a court of competent jurisdiction, to continuously monitor and record a specified activity and/or area. (c) “Monitor room” means the designated room on the licensee’s property that houses the surveillance system, is used exclusively for casino surveillance purposes and is dedicated to providing the coverage prescribed by this regulation. (d) “Immediate notification” means notification to the Executive Director or their designee by telephone within 15 minutes of the discovery of any activity so prescribed by this regulation. (e) “Immediate access” means access without delay and upon demand of the Commissioners, Executive Director or any of his agents. (f) Satellite monitoring” means any feed from the surveillance system transmitted outside of the surveillance room. (Adopted: 09/25/1991; Amended: 09/21/2000.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 6.2 Access To Monitor Rooms

Access to monitor rooms shall be limited only to those personnel who are employed exclusively for surveillance purposes and those personnel whose names appear on the monitor room access list approved by the Executive Director; such access list shall be submitted either quarterly or upon any revision. (a) The Commissioners, the Executive Director, and their agents shall, upon presentation of proper credentials, at all times be provided immediate access to the monitor room and any other surveillance areas; and shall be provided immediate access to all documentation including, but not limited to, logs, correspondence, electronic mail, facsimile transmissions and any other reports, in any form, generated by or within the surveillance department. Confidential files maintained solely by the Director or Manager of Surveillance shall be made available upon request. (b) Additional personnel may be granted access, with prior written approval from the

Executive Director, for management purposes, or to repair, install or maintain equipment residing in the monitor room. Any person that is not employed exclusively for surveillance purposes, must, upon entry to the monitor room, enter their name, the date, the reason for their visit and the time they arrived and departed from the monitor room on a visitor’s log. The visitor’s log shall be maintained in the monitor room for inspection by the Executive Director and shall be retained in a format approved by the Executive Director for a period of three (3) years. (c) Surveillance coverage reviews requested by management shall be conducted in an area separate from that which contains working monitors and/or any real-time observations and/or coverage. (Adopted: 09/25/1991; Amended: 09/21/2000.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 6.3 Surveillance Systems: General Requirements And Minimum Standards

This regulation sets forth the minimum standards that must be followed by licensees with respect to surveillance systems and monitor rooms. The Executive Director may, in his sole discretion, require a licensee to comply with surveillance system requirements that are more stringent than those set forth in this regulation. The Director or Manager of Surveillance shall be held responsible for the licensee’s compliance with each section of this regulation. (a) Every licensee shall install, maintain and operate at all times a surveillance system either comprised of cameras, monitors, video recorders and a video printer; or an alternative system approved by the Executive Director that provides the coverage required by this regulation. (b) The surveillance system must include date and time generators that display on each recording the date and time of the recorded events. The displayed date and time must not obstruct the recorded view and shall periodically be synchronized, at least weekly, with all other equipment in the monitor room. (c) Satellite monitoring stations must be approved by the Executive Director. Monitor room equipment must have complete override of any satellite monitoring station. (d) With exception to satellite monitoring stations approved by the Executive Director, all equipment utilized to monitor or record views of gaming operations obtained by the surveillance system must be and remain located in the monitor room. Monitor room equipment must have complete override of any satellite monitoring or recording equipment approved by this section. The entrance to the monitor room must be located away from the view of casino employees and the general public. (e) The monitor room must be staffed and the surveillance equipment monitored at all times by trained surveillance personnel. A minimum of two (2) surveillance personnel shall staff each shift in the monitor room with one person dedicated to viewing live coverage of gaming operations at all times. (f) The surveillance system, monitor room and its equipment must be directly and securely wired in a way to resist tampering. An auxiliary power source must be available and capable of providing uninterrupted power to the surveillance system in the event of a power loss and provide sufficient lighting to operate the surveillance system. The auxiliary power source shall be tested quarterly, and a report maintained by the surveillance department.

(g) Each camera in the surveillance system located in public gaming areas and that are designated to view gaming activities must be placed behind a dome and in a way to prevent tampering. (h) The surveillance system must record all casino gaming transactions in color, and casino games where color may be a determining factor in a game outcome. (i) The video printer used in the surveillance system must generate instantaneously upon command, a clear, still black and white or color copy or photograph of the images depicted in any recording made by the surveillance system. (j) The licensee must have the capability of creating first generation copies of any recording made by the surveillance system. (k) Every licensee shall maintain equipment in the monitor room to provide an interface with the slot data and/or accounting system that shall display signals sent from each of the licensee’s electronic gambling devices. At a minimum, the following signals shall be displayed on such equipment: jackpot, machine door access, drop door access, BVA door access, illegal machine access and auxiliary door access. (l) Every licensee shall maintain in the monitor room the following for inspection by the Executive Director and his agents: current surveillance system plans and/or schematics with a list of camera numbers, type and coverage provided; the licensee’s internal controls and procedures for all gaming departments observed by the surveillance system. (m) Every Licensee shall maintain in the monitor room current revenue drop route maps that are utilized during the monitoring of all revenue drops. (n) The individual responsible for the operation of the Surveillance Department shall not share any duties with the individual responsible for the operation of the Security Department. The duties of the Security and Surveillance Departments shall be separate and distinct and neither department nor individual responsible for either department shall have supervisory authority over the other. (o) Adequate lighting shall be present in all areas of the casino floor, count rooms, and security interview rooms to enable the surveillance system to provide clear viewing and reproductions. (Adopted: 09/25/1991; Amended: 09/21/2000; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 6.4 Surveillance Systems: Count Rooms And Casino Cage

(a) Every licensee shall install, maintain, and operate at all times a surveillance system that monitors and records clear unobstructed views of all areas and transactions within: 1. The count room, and any area where uncounted currency is stored during the drop and count process, including walls, corners, doors, drop boxes, vaults, safes, and counting surfaces. All counting surfaces must be transparent; and 2. The casino cage, including customer windows, employees' windows, cash drawers, vaults, safes, counters, chip storage, and fill windows. (b) All transactions within the count room must be recorded with sufficient clarity to permit identification of each employee and his movements, and to permit identification of all currency and paperwork. The count room shall have audio monitoring capabilities. (c) All transactions within the casino cage, must be recorded with sufficient clarity to permit identification of each employee and his movements, and to permit identification of all

currency and paperwork. (d) The surveillance department shall follow and record all gaming revenue drops, including emergency drops, and all revenue counts. Start and completion times of all revenue drops and counts shall be documented in the log required by Rule 6.10(b) of this regulation. At a minimum, this shall include coverage of the removal and transport of the revenue from the gambling device to the secure location on the casino floor and transportation of the revenue to the count room. (Adopted: 09/25/1991; Amended: 09/21/2000; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 6.5 Surveillance Systems: Table Games And Card Rooms

(a) Every licensee who operates table games or a card room shall install, maintain and operate at all times a surveillance system that monitors and records clear and unobstructed views of all active table games or card table surfaces, including table bank trays, with sufficient clarity to permit identification of all chip, cash, dice and card values and the outcome of the game. Roulette tables and wheels must be recorded so as to permit views of both the table and the wheel on one monitor screen - The Commission requires that each licensee exercise its best efforts to provide this coverage. (b) Every licensee who operates table games or a card room shall install, maintain, and operate at all times a surveillance system that shall monitor and record clear and unobstructed views of the following: 1. All table game and card room areas with sufficient clarity to permit identification of all dealers, patrons, spectators and pit personnel; and 2. All drop boxes and table numbers. 3. Simultaneous coverage of both the table game area and the table game surface; (c) Every licensee who operates table games or a card room shall install, maintain, and operate at all times a surveillance system that shall monitor and record clear and unobstructed views of the following: 1. Continuous, uninterrupted and simultaneous coverage of the table game surface and progressive meter of any table game with a progressive jackpot; 2. Continuous, uninterrupted and simultaneous coverage of the table game surface and the secondary bonusing event of any table game that offers such an event. 3. All card room or podium banks, including any drawers, cabinets and safes contained therein. (Adopted: 09/25/1991; Amended: 09/21/2000.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 6.6 Surveillance Systems: Keno Games

Every licensee who operates a keno game shall install, maintain, and operate at all times a surveillance system that continuously monitors and records clear, unobstructed and uninterrupted views of the following while the game is exposed for play: (a) All keno desks, and satellite stations, including counters, windows, cash drawers, keno boards, supervisor work areas, and transaction areas, with sufficient clarity to permit identification of cash, all parts of a keno ticket, the patrons and employees; and

(b) The keno ball drawing device and the random number generator in computerized systems, with sufficient clarity to identify the number on each ball drawn. (Adopted: 09/25/1991; Amended: 09/21/2000.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 6.7 Surveillance Systems: Slot Machines

(a) Every licensee who exposes slot machines for play shall install, maintain, and operate at all times a surveillance system that continuously monitors and records clear, overall, and continuous views of all areas that contain slot machines with sufficient clarity to identify all patrons and employees, candle, drop door and auxiliary fill compartment doors. (b) Every licensee who exposes slot machines for play shall install, maintain, and operate at all times a surveillance system that shall monitor and record clear and unobstructed views of all cash redemption machines. (c) Every licensee who offers sports wagering shall install, maintain and operate a surveillance system that monitors and records clear unobstructed views of general activities in the betting areas to include all ticket writer/cashier windows and all sports betting kiosks. (Adopted: 09/25/1991; Amended: 09/21/2000; Amended: 07/25/2010.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 6.8 Surveillance Systems: Casino Security Offices

The surveillance system must cover all areas of any security office wherein any persons may be detained, questioned, interviewed or interrogated by casino security officers. Security office coverage must include both audio and video, be recorded at all times that a person is detained, questioned, interviewed or interrogated therein, and the signal must terminate in the surveillance room. In each office or room covered by this section, a sign must be conspicuously displayed which states that the area is under constant audio and video surveillance. (Adopted: 09/25/1991; Amended: 09/21/2000; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 6.9 Casino Surveillance System Equipment Malfunctions

(a) Every licensee shall establish and maintain a log of any and all casino surveillance system equipment malfunctions and retain the log for a period of three years. (b) Any gaming area that is unable to be covered by surveillance or meet the coverage requirements due to a malfunction of cameras or recording equipment must cease gaming activity until the malfunction can be repaired. The Executive Director may, at their discretion, determine whether other security measures may be required. (Adopted: 09/25/1991; Amended: 09/21/2000; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 6.10 Surveillance System Recording Requirements

(a) In addition to any other recording requirements that are or may be imposed by this

regulation, every licensee shall record all views, activities, and locations as the Executive Director may from time to time require. (b) Every licensee shall record and maintain a shift activity log of all specific activities observed by casino surveillance personnel, and any activities that appear unusual or irregular, or that violate or appear to violate the Mississippi Gaming Control Act, the regulations promulgated thereunder or internal control or procedure or any commonly known criminal statute of this state or the United States and notify the Executive Director by telephone immediately. The log entry shall be recognized by a unique number or identifier by the employee(s) making the entry in digital systems and signed by the employee(s) that utilize an analog system. Such log shall be maintained in a format approved by the Executive Director and retained for a period of three (3) years. (c) Any violation of the licensee’s system of internal controls observed by surveillance personnel shall be entered in the log required by Rule 6.10(b) of this regulation. (d) All recordings produced by a surveillance system must present a clear and unobstructed view of the scene depicted thereon. (e) Every licensee must retain all video recordings for at least fourteen (14) days after the recording is produced, unless a shorter time period is allowed by another section of this regulation, or by order of the Executive Director, the Commission or a court of competent jurisdiction. (f) All recordings must be made in a format approved by the Executive Director. (Adopted: 09/25/1991; Amended: 09/21/2000; Amended: 10/27/2005.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 6.11 Surveillance System Plans; Alterations To Surveillance System

(a) Every applicant for a gaming license shall submit to the Executive Director, a surveillance system plan no later than ninety (90) days prior to the start of gaming operations, and shall comply with the requirements set forth in this regulation no later than seven (7) days prior to the start of gaming operations. (b) The surveillance system plan must include a casino floor plan that shows the placement of all surveillance equipment in relation to the locations required by this regulation to be covered, and a detailed description of the casino surveillance system and its equipment. In addition, the plan may include other information that evidences compliance with this regulation by the applicant. (c) Every licensee shall submit, prior to implementation, to the Executive Director for approval, any proposed reduction to its surveillance system in any area required by this regulation. (Adopted: 09/25/1991; Amended: 09/21/2000.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 7 JUNKET REPRESENTATIVES

13 Miss. Admin. Code Pt. 3, R. 7.1 Definitions

(a) "Collection representative" means any person who may approve or extend gaming credit or collects gaming credit instruments negotiated by a preferred guest. The term does not include:

1. Persons holding a Mississippi gaming license or their employees, or 2. A bonded collection agency licensed by local government authorities in the jurisdiction where it has its principal place of business, or 3. Any licensed attorney. (b) “Complimentary” means a service, item, or accommodation provided to a person at no cost, or at a reduced price not generally available to the public under similar circumstances; that term shall include any service, item, or accommodation provided at no cost, or at a reduced price due to the anticipated or actual gaming activities of that person. (c) "Junket representative" means any person who contracts with a gaming licensee or its affiliate to provide services consisting of arranging transportation or lodging for preferred guests at a licensed gaming establishment. It also means any person who contracts with a gaming licensee or its affiliate to provide services as a collection representative. The term does not include travel agencies that receive compensation based solely on the price of the transportation or lodging, or permanent full-time employees of a gaming licensee or its affiliates. (d) "Preferred guest" means any person, 21 years of age or older, who receives complimentary transportation, food, lodging, entertainment or other consideration with a retail price in excess of $200.00 from a licensed establishment in a twenty-four-hour period as an inducement to gamble. (e) "Secondary representative" means any person other than clerical personnel or ticket takers not otherwise exempt under subsections (a) or (b) who receives compensation in any form from a junket representative for assisting a junket representative. (Adopted: 09/25/1991; Amended: 10/22/1998.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 7.2 Filing And Determination Of Suitability

(a) A licensee shall not enter into a contract with a junket representative for services until the junket representative has been investigated and issued a junket representative permit from the Commission. No contract may be entered into between any licensee and junket representative that would exceed the expiration date of the junket representative permit. (b) A filing for junket representative must include the following: 1. The name, address, tax identification number, and type of organization of the junket representative. 2. A copy of any proposed agreement between the licensee and the junket representative. 3. If the junket representative is to guarantee any payment due to a licensee from any preferred guest, a personal financial questionnaire. 4. The designation of persons whom the junket representative may use as a secondary representative. 5. A statement on a form approved by the Commission that the junket representative: i. Submits to the jurisdiction of the State of Mississippi and the Commission; ii. Designates the Secretary of State as its representative upon whom service of process may be made; and Agrees to be governed and bound by the laws of the State of Mississippi and the regulations of the Commission.

6. Such additional information as the Executive Director or Commission may request. In the event the junket representative is not an individual, all officers and principals of the junket representative shall supply the required information. All information required by this section shall be supplied on forms furnished or approved by the Executive Director. (c) An application to receive a junket representative permit shall not be granted unless the Commission is satisfied that the applicant is 1) a person of good character, honesty and integrity; 2) a person whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this State or to the effective regulation and control of gaming, or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto; and 3) in all other respects qualified to be permitted consistent with the declared laws of this State. (d) A licensee may only compensate a junket representative that holds a valid junket representative permit from the Commission, provided that the licensee receives written notification from the Executive Director that the junket representative is in good standing with the Commission and has: 1. Submitted a copy of the signed agreement between the licensee and the junket representative and such additional information as the Executive Director or Commission may request; and 2. A current filing with the Executive Director and is in compliance with the requirements of this Chapter. (e) A licensee may not compensate a junket representative on the basis of theoretical or actual win attributed to a preferred guest unless such junket representative holds a junket representative permit issued by the Commission. Such permit qualifications are those imposed on applicants and holders of a work permit. A junket representative permit is valid for a period of three years. Nothing in this section shall prevent the Executive Director from requiring a finding of suitability from the Commission of any junket representative. (f) The Commission may require at any time a finding of suitability of a junket representative. The Commission shall give written notice to the junket representative and any licensee having an agreement with the junket representative on file with the Executive Director that the junket representative will be required to file an application for finding of suitability. The Commission retains jurisdiction to determine the suitability of a junket representative even if the licensee terminates its relationship with the junket representative or the junket representative is otherwise no longer functioning as a junket representative. (g) If the Commission finds a junket representative to be unsuitable, the filing of such junket representative is thereupon canceled. A licensee or junket representative shall, upon written notification of a finding of unsuitability, immediately terminate all relationship, direct or indirect, with such junket representative. Failure to terminate such relationship constitutes reasonable cause for disciplinary action. No determination of suitability of a junket representative shall preclude a later determination by the Commission of unsuitability. (Adopted: 09/25/1991; Amended: 10/22/1998.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 7.3 Required Reports And Record Keeping

(a) Each licensee shall provide to the Executive Director within one month following each calendar quarter, separate lists of junket representatives, which shall include: 1. Status of current relationship with the licensee; 2. Compensation in that quarter paid to a junket representative for each service provided to a licensee; 3. The number of preferred guests attributed to each junket; and 4. The arrival time and date of each junket; 5. The departure time and date of the junket; and 6. Such other information as required by the Executive Director. (b) The licensee shall retain in its files for a three-year period and make available for inspection by the Executive Director, and upon request, the following information: 1. The origin and dates of stays by preferred guests arranged by a junket representative; 2. The total amount of gaming credit extended to such preferred guests, which remains unpaid following their departure; 3. The name and address of each preferred guest; 4. Complimentary services, items or accommodations provided to preferred guests; 5. The amount of gaming credit owed by such preferred guest prior to arrival; and 6. Such other information as required by the Executive Director regarding any business arrangement between the licensee and the junket representative. (Adopted: 09/25/1991; Amended: 10/22/1998.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 7.4 Mandatory Requirements

(a) Every agreement, including any agreement of employment, entered into by a licensee and a junket representative shall be conditioned as follows: 1. If the Commission determines the junket representative is unsuitable, the agreement shall thereupon terminate unless otherwise ordered by the Commission. 2. The agreement is not effective and the junket representative is not entitled to and may not be paid any compensation until the licensee receives notice that the Executive Director has granted a junket representative permit to the junket representative. (b) Annually, on or before July 15, each junket representative shall file a list of all secondary representatives on a form furnished or approved by the Executive Director. Each licensee shall send a notice annually, on or before June 1, to each junket representative under contract with it, advising the junket representative of the requirements of this section. (c) Any changes in the junket representative's address, telephone number, officers, directors, shareholders or partners and any changes, additions, or deletions to the list of secondary representatives or arrests or convictions of any junket representative, its officers, directors, shareholders, partners or secondary representatives contained within the annual report or the initial submission required under Rule 7.2 of this regulation shall be reported by the junket representative to the Executive Director within thirty

days thereof. (Adopted: 09/25/1991; Amended: 10/22/1998.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 8 PLAYER DISPUTES

13 Miss. Admin. Code Pt. 3, R. 8.1 Service

Except as otherwise provided in this regulation: (a) All pleadings, notices, and other papers required by this regulation to be served may be served by personal delivery, electronic mail or certified mail. (b) A party serving a pleading, notice or other paper required by this regulation to be served must file with the Commission a proof of service in the form of a certificate signed by the party or his representative and stating the date and manner of service. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.2 Rule 8.2

Initiation Of Dispute Investigation (a) Any request by a patron to resolve a dispute regarding alleged winnings pursuant to Miss. Code Ann. §75-76-159 shall be submitted on forms prescribed by the Mississippi Gaming Commission. Such form may be submitted by either personal delivery, electronic mail, or first-class USPS mail to any office of the Mississippi Gaming Commission and shall be deemed filed upon receipt during the regular business hours of the Mississippi Gaming Commission. (b) Such request shall be filed by the patron no more than sixty (60) days from the date of the alleged refusal of payment by the licensee. Failure to file within the time period proscribed shall result in an immediate dismissal of the request. (c) Upon timely filing of such request, the Enforcement Division shall investigate the dispute and report such findings to the Executive Director, or their designee, for issuance of a decision.

History

• Source: Miss. Code Ann. § 75-76-33; Miss. Code Ann. §75-76-159

13 Miss. Admin. Code Pt. 3, R. 8.3 Initiation Of Hearing Procedure; Notice Of Hearing

(a) Proceedings to review a decision made by the Executive Director pursuant to Miss. Code Ann. §75-76-159 must be initiated by the filing and service of a petition in accordance with Miss. Code Ann. §75-76-161. Such petition may be filed by either personal delivery, electronic mail, or first-class USPS mail to the office of the Executive Director, and shall be deemed filed upon receipt during the regular business hours of the Mississippi Gaming Commission. (b) A copy of the petition must be served on the respondent. (c) The respondent may file and serve a written response within 15 days after being served with a copy of the petition. (d) After the time for respondent to file and serve a written response to the petition has expired, the hearing examiner shall determine the date, time and place of the hearing on the petition.

(e) Notice of the hearing must be served by the hearing examiner on each of the parties at least 20 days before the hearing, unless the hearing examiner reasonably determines that a lesser notice period is appropriate. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.4 Pre-hearing Motions

(a) Unless otherwise ordered by the hearing examiner, all pre-hearing motions must be filed and served at least ten (10) days before the hearing. (b) The moving party shall be responsible for coordinating with the hearing examiner and the responding party to set a telephonic or video-conference hearing on the motion. Any party desiring that said hearing be reported stenographically must arrange for a court reporter at that party’s expense. (c) Failure to arrange the hearing on the pre-hearing motion shall result in the motion being heard on the date of and immediately prior to the hearing on the merits of the matter. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.5 Nature Of Hearing

(a) Unless the hearing examiner reasonably determines that a different procedure is appropriate, the hearing must be conducted in accordance with the following procedures: 1. The petitioner may present an opening statement on the merits and the respondent may then make a statement of the defense. The respondent may reserve his statement of the defense for the presentation of his case. 2. After his opening statement, if made, and the respondent's statement of the defense, if not reserved, the petitioner shall present his case in chief in support of the petition. 3. Upon conclusion of the petitioner's case in chief, the respondent may move for dismissal of the petition. The hearing examiner may grant, deny, or reserve decision on the motion, with or without argument. If no motion to dismiss is made, or if such motion is denied or decision is reserved thereon, the respondent shall then present his case in defense. 4. Upon conclusion of the respondent's case, the petitioner may present rebuttal evidence. 5. After the presentation of the evidence by the parties, the petitioner may present a closing argument. The respondent may then present his closing argument and the petitioner may then present a rebuttal argument. Thereafter the matter will stand submitted for decision. (b) All or part of the hearing may be conducted by telephone. (c) The hearing must be recorded by the hearing examiner on audio tape or other means of sound reproduction, unless it is reported stenographical for a party at the party's own expense, in which case the party must provide the original hearing transcript to the hearing examiner. (d) Unless otherwise ordered by the hearing examiner, the parties may submit written memoranda of points and authorities at any time before the hearing. The hearing

examiner may order or allow the parties to file written memoranda of points and authorities after the conclusion of the hearing. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.6 Presentation Of Evidence

(a) Oral evidence may be taken only upon oath or affirmation administered by the hearing examiner. (b) Affidavits may be received in evidence as provided in subsection 3 of Miss. Code Ann. §75- 76-111. (c) Each party may: 1. Call and examine witnesses; 2. Introduce exhibits relevant to the issues of the case, including the transcript of testimony at any investigative hearing; 3. Cross-examine opposing witnesses on any matter relevant to the issues of the case, even though the matter was not covered in a direct examination; 4. Impeach any witness, regardless of which party first called him to testify; and 5. Offer rebuttal evidence. (d) If a party does not testify on his own behalf he may be called and examined as if under cross- examination. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.7 Admissibility Of Evidence

(a) The hearing need not be conducted according to technical rules relating to evidence and witnesses. Any relevant evidence may be admitted and is sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in a civil action. (b) The parties or their counsel may by stipulation agree that certain evidence be admitted even though such evidence might otherwise be subject to objection. (c) Irrelevant and unduly repetitious evidence should not be admitted. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.8 Subpoenas

At the request of a party, subpoenas must be issued by the hearing examiner as provided in subsection 1 of Miss. Code Ann. §75-76-109. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.9 Discovery

No discovery shall be permitted except upon a finding of good cause justifying the discovery sought. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.10 Official Notice

The hearing examiner may take official notice of any generally accepted information or technical or scientific matter within the field of gaming, and of any other fact which may be judicially noticed by the courts of this state. The parties must be informed of any information, matters or facts so noticed and must be given a reasonable opportunity, on request, to refute such information, matters or facts by evidence or by written or oral presentation of authorities. The manner of such refutation shall be determined by the hearing examiner. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.11 Amended Or Supplemental Pleadings

The hearing examiner may, before submission of the case for decision, permit the filing of an amended or supplemental petition or response, including an amended or supplemental pleading that conforms to the evidence presented during the hearing. A request for permission to file an amended or supplemental pleading may be made orally during the hearing or in writing. If the request is in writing, a copy must be served on the opposing party. The hearing examiner thereafter shall provide the opposing party a reasonable opportunity to make objections thereto. If an application for leave to file an amended or supplemental pleading is granted, the hearing examiner must permit the parties to introduce additional evidence with respect to any new matter contained in the pleading. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.12 Continuances

Continuances of the hearing date may be granted upon a showing of good cause by the party requesting the continuance. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.13 Communications With The Hearing Examiner or Commission

(a) Unless required for the disposition of ex parte matters authorized by statute or regulation: 1. Neither a party nor his representative shall communicate, directly or indirectly, with any Commission member or the hearing examiner regarding any matter related to the hearing, except upon notice and opportunity to all parties to participate. 2. Neither a Commission member nor the hearing examiner shall communicate, directly or indirectly, with any party or his representative regarding any matter

related to the hearing, except upon notice and opportunity to all parties to participate. (b) This section does not preclude: 1. Any Commission member or the hearing examiner from consulting with Commission counsel concerning any matter related to the hearing. 2. A party or his counsel conferring with the hearing examiner or Commission counsel on procedural matters. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.14 Default

The unexcused failure of a party to appear at the hearing may constitute a default and an admission of any facts that may have been alleged by the opposing party. The hearing examiner may take action based on such default or admission or on any other evidence without further notice to the defaulting party. If the hearing examiner takes action based on an admission, the record must include the evidence upon which the action is based. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.15 Contempt

If any person in proceedings before the Commission or hearing examiner under this regulation disobeys or resists any lawful order or refuses to respond to a subpoena, or refuses to take the oath or affirmation as a witness, or thereafter refuses to be examined, or is guilty of misconduct during the hearing or so near the place thereof as to obstruct the proceeding, the Commission may certify the facts to the circuit court in and for the county where the proceedings are held. At the request of the Commission, the court shall then issue an order directing the person to appear before the court and show cause why he should not be punished for contempt. The court order and a copy of the statement of the Commission or hearing examiner must be served on the person cited to appear. Thereafter the court has jurisdiction of the matter, and the same proceedings must be had, the same penalties may be imposed and the person charged may purge himself of the contempt in the same way as in the case of a person who has committed a contempt in the trial of a civil action before a circuit court. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.16 Burden Of Proof

The petitioner bears the burden of showing by a preponderance of evidence that the decision made by the Executive Director pursuant to Miss. Code Ann. §75-76-159 should be reversed or modified. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.17 Decision Of The Hearing Examiner

(a) After the hearing, the hearing examiner shall render a written decision on the merits that sustains, modifies or reverses the initial decision of the Executive Director. (b) The decision of the hearing examiner must contain findings of fact and a determination of the issues presented. (c) A copy of the decision must be served on each party. The decision must be accompanied by proof of service in the form of a certificate signed by an agent or employee of the Commission and stating the date and manner of service. The decision is effective and final upon service on all parties, unless otherwise ordered by the hearing examiner. If the decision is sent by mail, it will be presumed to have been served five calendar days after it is mailed. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.18 Appeal To Commission

(a) Any party aggrieved by a final decision of the hearing examiner may appeal to the Commission pursuant to Miss. Code Ann. §75-76-119. (b) The Commission's review will be limited to the evidence before the hearing examiner. The Commission may remand the case to the hearing examiner for additional evidence if sufficient reason exists for the failure to present the evidence at the hearing. (c) The Commission may affirm, modify, or reverse the decision of the hearing examiner. (d) A copy of the Commission's decision must be served on each party. The decision must be accompanied by proof of service in the form of a certificate signed by an agent or employee of the Commission and stating the date and manner of service. The decision is effective and final upon service upon all parties, unless otherwise ordered by the Commission. If the decision is sent by mail it will be presumed to have been served five calendar days after it is mailed. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 8.19 Judicial Review

Judicial review of a final decision of the Commission may be had in accordance with Miss. Code Ann. §75-76-167 through 173, inclusive, of the Act. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 9 UNSUPERVISED MINORS

13 Miss. Admin. Code Pt. 3, R. 9.1 In General

(a) Terms used in this regulation are defined, as follows: 1. “Minor” is a person younger than twenty-one (21) years of age. 2. “Gaming Areas” are the areas of the establishment, vessel, cruise vessel where gaming has been approved and is actively conducted.

3. “Nongaming Areas” are the public common areas located upon the premises of a licensee, including, but not limited to, restaurants, arcades, pools, garages and parking lots. 4. “Unsupervised minor” is a minor not in the company of a parent, guardian, or other adult responsible for the welfare of the minor. (b) The responsibility for minors lies first and foremost with parents. However, licensees should use reasonable efforts to safeguard the wellbeing of unsupervised minors. (c) A licensee shall not allow a minor to play, place wagers, or collect winnings, whether personally or through an agent, from any gaming authorized under the Gaming Control Act. A licensee shall not allow minors to loiter in gaming areas. (d) A licensee shall not allow unsupervised minors in gaming areas and shall not allow unsupervised minors in nongaming areas between the hours of 12:00 A.M. and 5:00 A.M. (e) Minors shall be allowed in licensed childcare facilities on the premises at any time. (f) If an unsupervised minor is found in violation of these regulations, security shall immediately take reasonable measures to locate the parent, guardian or other adult responsible for the welfare of the unsupervised minor. If located, the responsible person or persons will be brought to the unsupervised minor’s location and warned that they may not leave minors unattended except in accordance with this regulation. The parent, guardian or other adult responsible for the welfare of the unsupervised minor must present proper identification and the unsupervised minor will be returned to their care and custody. After the detection of a violation of this regulation, actions taken by security personnel shall be recorded in a log, which shall include the identification of the minor and, if available, the parent, guardian or other adult responsible for the welfare of the unsupervised minor and actions taken by security to remove the minor from the gaming floor. (g) Upon discovery by a licensee that a minor has obtained access to the premises and participated in gaming activities, said licensee shall notify the Commission of the activity. Both the security and surveillance departments shall immediately determine, to the extent possible: 1. How the person was able to gain access to the premises without being detected and, where possible, how the licensee plans to prevent such breaches in the future; 2. Whether and how many times said person has gained access on previous occasions; and 3. The net winnings or losses attributable to the minor. A report of the foregoing shall be prepared and forwarded to the Commission within twenty-four (24) hours after the breach is discovered. The licensee shall prepare a request to the Commission on the ultimate disposition of any available winnings attributable to the underage patron. (h) A licensee shall take reasonable efforts to caution patrons against leaving minors unattended, via signage, as well as upon registration at any lodging facilities on the premises, via a brochure. (i) A licensee shall establish company policies and procedures and train all employees who directly interact with gaming patrons on the gaming premises in techniques to identify and respond in dealing with unsupervised minors and vulnerable adults. (j) The provisions of this regulation are solely regulatory in nature and neither create a minimum standard of care toward the public nor establish a private cause of action for

non-compliance. (Adopted: 10/22/1998; Amended: 02/23/2006.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 10 PROCEDURES TO ADDRESS PROBLEM GAMBLING.

13 Miss. Admin. Code Pt. 3, R. 10.1 Definitions

The following words and terms, when used in these regulations concerning self-exclusion procedures shall have the following meanings: (a) “Self-exclusion” means voluntarily having oneself barred from the premises of any licensed gaming establishment (hereinafter “casino”) in Mississippi and from all gaming- related activities and privileges, including the issuance of gaming credit and check- cashing privileges; the receipt of direct-marketing and promotional materials regarding gaming opportunities, junket solicitations, player club memberships, complimentary goods and services and the like; and collection of any winnings or recovery of any losses during the exclusionary period. (b) “Premises” for purposes of self-exclusion shall mean “premises” as defined in the Gaming Control Act, §75-76-5(bb). (c) “Self-excluded person” means any person whose name is included on the self-exclusion list maintained by the Commission. (d) “Self-exclusion list” mean the list of names of self-excluded persons. (Adopted: 03/25/1999; Amended: 09/21/2000; Amended: 09/24/2003.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 10.2 Request For Self-Exclusion

(a) Any person may request placement on the list of self-excluded persons by acknowledging in a manner established by the Commission that the person is a problem gambler and by agreeing that, during any period of voluntary exclusion, the person may not collect any winnings or recover any losses resulting from gaming activity. The person requesting self exclusion must provide the following information to the commission in order to be placed on the list: 1. Name, including any aliases or nicknames 2. Date of Birth 3. Address 4. Social Security number if such information is voluntarily provided 5. A description of the person’s physical appearance 6. Photograph and valid identification 7. The length of the self exclusion period, which shall not be less than 3 years. (b) The request for self exclusion may only be made by the individual for whom the exclusion would apply. (c) A person requesting placement on the self-exclusion list who is employed by a casino may enter the property to carry out their duties of employment or incidental activities related to employment. Their time must be limited to the time necessary to complete the assigned duties. Each casino should establish procedures for ensuring self-excluded

employees are limited to their job duties while on casino property. New employees should be checked against the list of self-excluded patrons. (Adopted: 03/25/1999; Amended: 09/21/2000; Amended: 09/24/2003; Amended: 06/25/2010.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 10.3 Self-Exclusion List

(a) The Commission shall maintain the official self-exclusion list and provide it to casinos. (b) Each casino shall maintain its own copy of the self-exclusion list and shall establish procedures to ensure that its copy of the self-exclusion list is updated and that all appropriate employees are notified of any addition to or deletion from the list within ten (10) days of any change to the list. (c) Casinos with affiliated gaming establishments in other jurisdictions may choose to share the self-exclusion list with and invoke it in those establishments, in accordance with applicable laws and regulations in those jurisdictions, and without violation of the confidentiality requirements of these regulations. (d) Information furnished to or obtained by the Commission pursuant to these regulations shall be deemed confidential and shall not be disclosed except in accordance with these regulations. (e) No casino, its affiliates, officers or employee thereof shall disclose the self-exclusion list or portion thereof except as necessary to comply with the provisions of these regulations. Notwithstanding the foregoing, such information may be disclosed to casino employees, officers, agents and affiliated companies, to law enforcement, and in response to a subpoena request or court order in criminal or civil proceedings. (f) A self-excluded individual may request permission to visit the non-gaming areas of a specific property for purposes of attending a conference, event or other non-gaming purpose. Any such request must be made to the Executive Director and be co-sponsored by a member of management at the specific property to be visited. The decision to approve or deny the request is within the sole discretion of the Executive Director and is not an appealable decision of the Commission. (Adopted: 03/25/1999; Amended: 09/21/2000; Amended: 09/24/2003; Amended 01/17/2008.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 10.4 Duties of Casino

(a) Each casino shall ensure patrons are provided with information on how to exclude themselves by written materials located in the casino and on all casino affiliated web applications and websites. (b) Each casino shall designate a person or persons to be the contact person with the Commission for purposes of self-exclusion procedures, including receipt and maintenance of the self- exclusion list, submission of the casinos procedures, and all other communications between the Commission and the casino for self-exclusion purposes. (c) Each casino shall establish procedures and systems which: 1. Require employees of the casino, upon identification of a self-excluded person in the casino, to notify:

i. Those employees of the casino designated to monitor the presence of self- excluded persons; and ii. Designated representatives of the Commission via Email. 2. Utilize the player tracking systems and other electronic means, including checking all taxable patron winnings against the self-exclusion list, to assist in determining whether self-excluded persons are participating in any gaming activities; 3. Deny casino credit, check cashing privileges, player club membership, complimentary goods and services, junket participation and other similar privileges and benefits to any self-excluded person; 4. Ensure that self-excluded persons do not receive, either from the casino or any agent thereof, targeted mailings, telemarketing promotions, player club materials or other promotional materials relative to gaming activities at its licensed casino. (d) Each casino shall post or provide at each entrance and exit to the gaming premises, and in conspicuous places in or near gaming or cage areas and cash dispensing machines located on the gaming premises information concerning the nature and symptoms of problem gambling, the procedure for self-exclusion, including where they can obtain Self-Exclusion information and the toll free number of the Mississippi Council on Compulsive Gambling or a similar entity approved by the Executive Director that provides information and referral services for problem gamblers. (e) Upon discovery by a casino that a self-excluded person has breached his self-exclusion and obtained access to the premises, said casino shall take steps to immediately eject such person from the premises, confiscate jackpot winnings and notify the Commission via electronic mail of the breach. Winnings in the form of wagering instruments such as gaming cheques or slot vouchers may be confiscated. Each casino shall submit written procedures for handling the confiscated winnings or jackpots. (f) Each casino shall submit to the Commission for written approval a copy of its procedures pursuant adoption of these regulations within 90 days. These procedures shall include the handling of confiscated jackpots from self-excluded patrons and specify procedures for employees on the exclusion list. Any amendment to the casino’s procedures shall be submitted to the Commission at least fourteen (14) days prior to their implementation. (Adopted: 03/25/1999; Amended: 09/21/2000; Amended: 09/24/2003; Amended: 06/25/2010.) (g) No sports gaming wager that is currently pending at the time of a person’s enrollment in the self-exclusion program may be voided or cancelled unilaterally by either party solely due to that person’s enrollment. If a patron makes a sports wager prior to enrollment in the self exclusion program and the outcome is not yet decided, the patron has the right to receive the amount owed, including any winnings or pushes.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 10.5 Removal From Self-Exclusion List

Upon the expiration of the self-exclusion period, the Commission shall delete the name of the person from the self-exclusion list and make that information available to the casinos. (Adopted: 03/25/1999; Amended: 09/21/2000; Amended: 09/24/2003.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 10.6 Training Of Casino Employees

Each casino shall implement procedures for training for all new employees, and annual re- training for all employees who directly interact with gaming patrons in gaming areas. That training shall, at a minimum, consist of information concerning the nature of problem gambling, the procedures for requesting self-exclusion, and assisting patrons in obtaining information about problem gambling programs. This section shall not be construed to impose a duty upon employees of casinos to identify problem gamblers nor to impose any liability for failure to do so. Each licensee shall designate personnel responsible for maintaining the training program. (Adopted: 03/25/1999; Amended: 09/21/2000; Amended: 09/24/2003.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 10.7 Noncompliance

(a) Any casino violating any requirements of these regulations on problem gambling may be subject to disciplinary action by the Mississippi Gaming Commission. (b) Any self-excluded person violating the terms of his or her self-exclusion agreement during the self-excluded period may be subject to (1) conviction for criminal trespass, and/or (2) placement by the Commission on the involuntary exclusion list as set out in Part Five (5). of these regulations. (c) The provisions of this regulation are solely regulatory in nature and neither create a minimum standard of care toward the public nor establish a private cause of action for non-compliance. (Adopted: 03/25/1999; Amended: 09/21/2000; Amended: 09/24/2003.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 10.8 Sharing The Self-Exclusion List With Other Jurisdictions

The Commission may enter into agreements with the Louisiana Gaming Commission, the Choctaw Gaming Commission, or other regulated gaming jurisdiction for the mutual sharing of self-exclusion lists, by which the Commission would forward Mississippi’s self-exclusion list to the other commission and likewise receive from that commission the self-exclusion list from that jurisdiction. The Commission may then provide and update the casinos with the exclusion lists from those jurisdictions in the same manner and using the same procedures as is provided in these regulations for Mississippi’s self-exclusion list. In that event, all rules and regulations concerning self-exclusion in Mississippi shall be applicable to the self-exclusion lists from those jurisdictions, just as if those persons had submitted a self-exclusion request in Mississippi; likewise, those persons who have self-excluded in Mississippi will be excluded in the other jurisdictions just as they are in Mississippi. (Adopted: 03/25/1999; Amended: 09/21/2000; Amended: 09/24/2003.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 11 Security

13 Miss. Admin. Code Pt. 3, R. 11.1 Definitions

For the purpose of this section (a) “AED” means automated external defibrillator. (b) “CPR” means cardio-pulmonary resuscitation. (c) “Gaming Areas” means the portion of a licensed gaming establishment where gaming is approved and actively conducted. (d) “Gaming Premises” means any portion of a licensed gaming establishment on which gaming activities are or lawfully could be conducted in accordance with the Act or these regulations. This shall include restaurants, shops or any other operations which are located on premises which could otherwise lawfully contain gaming activities. (e) “First Aid” shall mean the knowledge and skills necessary to recognize and provide basic care for injuries and sudden illnesses until advanced medical personnel arrive. (f) “Minor” is a person younger than twenty-one (21) years of age. (Adopted: 09/24/2003.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 11.2 Designated Responders

All licensed gaming establishments shall employ and have on staff 24 hours a day personnel trained in First Aid, CPR and AED operations. Use, operation and training shall be in accordance with Miss. Code Ann. §41-60-33 (Supp.1999) and with all other applicable state laws and regulations. Current certification(s) shall be maintained and available for inspection upon request. (Adopted: 09/24/2003.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 11.3 Automatic External Defibrillators

(a) All licensed gaming establishments shall be equipped with AED units for use on the gaming premises and shall comply with all reporting requirements of Miss. Code Ann. §41-60-33 (Supp.1999). (b) It is the responsibility of all licensed gaming establishments to determine the appropriate number and placement of AED units and the number of qualified staff necessary. (Adopted: 09/24/2003.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 11.4 Liability

(a) Pursuant to Miss. Code Ann. §73-25-37, any trained employee who in good faith renders emergency care or treatment by the use of AED to any person shall be immune from civil liability for any personal injury and or death as a result of that care or treatment, or as a result of any act or failure to act, in providing or arranging further medical treatment, where the employee acts as an ordinary, reasonable prudent person would have acted under the same or similar circumstances and the employee’s actions or failure to act does not amount to willful or wanton misconduct or gross negligence. (b) Any lawful gaming establishment is also immune from civil liability for any injuries or

death that results due to any act or omission by any employee rendering such care as set out in Rule 11.4(a), unless the employer acts with willful or wanton misconduct or gross negligence. (Adopted: 09/24/2003.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 11.5 Staffing Requirements

The Security Department shall staff permanent positions at points of public ingress and egress to the gaming areas as well as positions that rove the gaming and parking areas in order to ensure protection of assets and safety of patrons and employees. Security Officers are required as escorts for access to the Cage and Count Room, to transport fills, credits and markers to and from tables as well as ensure the safety of patrons on the property.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 11.6 Required Posts

At all times the Licensee shall have a Security Officer posted at each public ingress and egress of the Gaming Areas. Any egress that cannot be utilized as an entry but is utilized as an emergency outlet will not require an Officer to be posted but will be monitored regularly.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 11.7 Drop And Count

Security officers are required as escorts for Emergency Drops. A security officer must be present and positioned to monitor at all times the removal and placement of drop boxes.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 11.8 Patron Safety

Licensees shall take steps to ensure all areas of a gaming property are regularly monitored by Security employee(s) to provide safe use for the patron(s) and employee(s). A licensee may engage a third party to provide security on the premises outside of the Gaming Areas, as long as the third party employees have no role in security over gaming activities. At no time shall a patron or employee be allowed on the gaming floor if their appearance has been disguised in a way that would prevent positive identification. A medical face mask can be worn but must be easily removable to allow for identification.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 11.9 Underage Gaming

A person under the age of twenty-one (21) shall not play, be allowed to play, place wagers or collect winnings from any gaming authorized under the Gaming Control Act. A Licensee shall establish and maintain control of the Gaming Area to prevent a minor from gaining access to gaming. A minor that gains access to a gaming device or table may result in disciplinary action

to the Licensee in the form of a Notice of Violation or an Order to Show Cause. Once a Notice of Violation is issued, the Licensee will respond within three (3) days. The response shall include at a minimum written documentation detailing the incident from the Security Department, any disciplinary action taken and action taken to prevent any further breaches to ensure compliance. Before an Order to Show Cause will be issued to the Licensee, the following will be considered: (a) How many Notices of Violation has the Licensee received for this specific violation; (b) Has the Licensee failed to take action as submitted from a previous Violation Response; (c) Did the action taken by the Licensee fail to prevent the violation from recurring; and (d) Is access to the Gaming Area occurring through a common ingress. If an Order to Show Cause is issued, the Licensee shall appear before the Executive Director.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 11.10 Monthly Security Reports

A Monthly Security Activity Report shall be submitted via e-mail to the local field office of the respective district by no later than the 10 th of the following month being reported on a form prescribed by the Mississippi Gaming Commission. The form is all inclusive of activities that should be reported by the Security Department to the Commission each month.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 3, R. 11.11 Emergency Plans

In the event of an emergency; each Licensee shall have immediately available the emergency closure procedures as approved by MGC. The Licensee’s Emergency Plan shall provide a point of contact and specify the required number of personnel that will be needed in the event of an emergency to include the title of the employee and job responsibility. Security management shall not be assigned to a specific area that would limit their ability to respond to an emergency situation. Emergency Plans shall be submitted annually to the local field office in the month of January or anytime a significant change occurs throughout the year for review.

History

• Source: Miss. Code Ann. § 75-76-33

Part 4 Part 4: Manufacturers and Distributors

Chapter 1 DEFINITIONS

13 Miss. Admin. Code Pt. 4, R. 1.1 Definitions

As used in this regulation, unless the context otherwise requires: (a) “Cashless wagering system” means the collective hardware, software (including “digital wallet”), communications technology, and other associated equipment used to facilitate wagering with instruments of value other than chips, tokens or legal tender of the United States. (b) “Conversion” means a change in a gaming device from one pre-approved configuration to another pre-approved configuration or from one approved mode of play to another approved mode of play. (c) "Distributor" is any person that sells, leases, markets, offers, or otherwise distributes any gaming device or cashless wagering system for use or play in this state or sells, leases, or otherwise distributes any gaming device or cashless wagering system from a location within this state. (d) "Distributor of associated equipment" is any person that sells, leases, markets, offers, or otherwise distributes associated equipment in this state for use by licensees. (e) “Executive Director” means the Executive Director of the Mississippi Gaming Commission or his designee. (f) "Game outcome" is the final result of the wager. (g) “Inter-casino linked system” means an inter-casino linked system including the collective hardware, software, communications technology and other associated equipment used to link and monitor games or devices located at two or more licensed gaming establishments. Systems that solely record a patron’s wagering activity among affiliated properties are not inter-casino linked systems. (h) “Inter-casino linked system modification” means a change or alteration to an inter-casino linked system made by an operator who has been previously approved by the commission to operate that system. With regard to inter-casino linked systems that link progressive payout schedules, the term includes, but is not limited to: 1. A change in a system name or theme; or 2. A change in gaming device denomination. (i) "Manufacturer" is any person that manufactures, assembles, produces, programs, or makes modifications to any gaming device or cashless wagering system for use or play in this state or for distribution outside of this state. (j) "Manufacturer of associated equipment" is any person that manufacturers, assembles, or produces any associated equipment, including inter-casino linked systems, for use by licensees. (k) “Modification” means a change or alteration in a gaming device that affects the manner or mode of play of the device. The term includes a change to control or graphics programs and, except as provided in (4) and (5) below, in the theoretical hold percentage. The term does not include: 1. A conversion;

2. Replacement of one component with another, pre-approved component; 3. The rebuilding of a previously approved device with pre-approved components; 4. A change in the theoretical hold percentage of a mechanical or electromechanical device, provided that the device as changed meets the standards of Rule 12.5(b) of this regulation; or 5. A change in the theoretical hold percentage of an electronic device which is the result of a top award jackpot or bonus jackpot payment which is paid directly by an attendant and which is not accounted for by the device. (l) “On-line slot metering system” means the collective hardware, software and other associated equipment used to monitor, accumulate, and record meter information from gaming devices within a licensed establishment. (m) ”Operator” means any person or entity holding a license to operate an inter-casino linked system in this state, or a person or entity holding a license to operate a gaming operation that operates an inter-casino linked system of affiliates. (n) "Randomness" is the observed unpredictability and absence of pattern in a set of elements or events that have definite probabilities of occurrence. (o) “Theme” means a concept, subject matter and methodology of design. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 2 IN GENERAL

13 Miss. Admin. Code Pt. 4, R. 2.1 License Required; Applications

(a) A person may act as a manufacturer, distributor, or operator only if that person holds a license specifically permitting the person to act as a manufacturer, distributor, or operator. (b) Applications for manufacturer's, distributor's, or operator’s licenses must be made, processed, and determined in the same manner as applications for gaming licenses, using such forms as the Executive Director may require or approve. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.2 Certain Themes Prohibited in Association with Gaming Devices or Slot Machines

A gaming device or gaming device modification submitted for approval by a manufacturer or made available for play by a licensee must not use a theme that is otherwise contrary to the public policy of the state or would constitute an unsuitable method of operation. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.3 Approval Of Gaming Devices; And The Operation Of New Inter-Casino Linked Systems; Applications And Procedures

(a) A manufacturer or distributor shall not distribute a gaming device in this state and a licensee shall not offer a gaming device for play unless it has been approved by the Commission or is offered for play pursuant to a field test ordered by the Executive

Director. (b) An operator of an inter-casino linked system shall not install and operate a new inter- casino linked system in this state and a licensee shall not offer any gaming device or game for play that is part of such a system unless operation of the inter-casino linked system and all gaming devices or games that are part of or connected to the inter-casino linked system have been approved by the Executive Director or are offered for play pursuant to a field test ordered by the Executive Director. (c) Applications for approval of a new gaming device or to operate a new inter-casino linked system must be made and processed in such manner and using such forms as the Executive Director may prescribe. Only licensed manufacturers may apply for approval of a new gaming device. Only operators may apply for approval to operate a new inter- casino linked system. Each application must include, in addition to such other items or information as the Executive Director may require: 1. A complete, comprehensive, and technically accurate description and explanation in both technical and lay language of the manner in which the device or inter-casino linked system operates, signed under penalty of perjury; 2. A statement under penalty of perjury in such form as required by the Executive Director, that to the best of the manufacturer's knowledge, the gaming device meets the standards of Regulations Part 4 Rule 12.4, or, in the case of an inter-casino linked system, that to the best of the operator’s knowledge, the system meets the standards of Regulations Part 4 Rule 12.4; 3. In the case of a gaming device, a copy of all executable software, including data and graphic information, and a copy of all source code for programs that cannot be reasonably demonstrated to have any use other than in a gaming device, submitted on electronically readable, unalterable media; 4. In the case of a gaming device, a copy of all graphical images displayed on the gaming device including, but not limited to, reel strips, rules, instructions and paytables; and 5. In the case of an inter-casino linked system: i. An operator’s manual; ii. An internal control system; iii. A hold harmless agreement; iv. A graphical representation in such form as required by the Executive Director of the system theme and all related signage; and v. Information sufficient to calculate a theoretical payoff schedule amount including, but not limited to, the base and reset amounts, the total contribution percentage and a breakdown of that percentage including contribution rates to all progressive payoff schedules and all reset funds, the odds of winning the progressive payoff schedule and the amount of the wager required to win the progressive payoff schedule. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.4 Minimum Standards For Gaming Devices

All gaming devices submitted for approval:

(a) Must be electronic in design and operation and must be controlled by a microprocessor or the equivalent. Microcontrollers are allowed. (b) Must theoretically pay out a mathematically demonstrable percentage of all amounts wagered, which must not be less than eighty percent (80%) or greater than one hundred percent (100%) for each wager available for play on the device. Gaming devices that may be affected by player skill must meet this standard when using a method of play that will provide the greatest return to the player over a period of continuous play. (c) Must use a random selection process to determine the game outcome of each play of a game. The random selection process must meet 95 percent confidence limits using a standard chi- squared test for goodness of fit. 1. Each possible permutation or combination of game elements which produce winning or losing game outcomes must be available for random selection at the initiation of each play. 2. For gaming devices that are representative of live gambling games, the mathematical probability of a symbol or other element appearing in a game outcome must be equal to the mathematical probability of that symbol or element occurring in the live gambling game. “Equal to” shall mean within the thousandths of a percent – i.e., .001% to .009%. For other gaming devices, the mathematical probability of a symbol appearing in a position in any game outcome must be constant. 3. The selection process must not produce detectable patterns of game elements or detectable dependency upon any previous game outcome, the amount wagered, or upon the style or method of play. (d) Must display an accurate representation of the game outcome. After selection of the game outcome, the gaming device must not make a variable secondary decision which affects the result shown to the player. (e) Must display the rules of play and payoff schedule. (f) Must not automatically alter pay-tables or any function of the device based on internal computation of the hold percentage. (g) Must be compatible to on-line data monitoring. (h) Must contain an irremovable identification plate containing the following information, appearing on the exterior of the device: 1. Manufacturer; 2. Serial Number; and 3. Model Number. (i) Must have equipment that enables the device to communicate with a central computer system accessible to the Commission, using an industry standard protocol data format approved by the Executive Director. (j) Must be capable of continuing the current game with all current game features after a malfunction is cleared. This rule does not apply if a device is rendered totally inoperable. The current wager and all credits appearing on the screen prior to the malfunction shall be returned to the patron. (k) Must have attached a locked compartment separate from any other compartment of the device for housing a drop bucket. (l) Must have a mechanical, electrical, or electronic device that automatically precludes a player from operating the device after a jackpot requiring a manual payout and requires

an attendant to reactivate the device. (m) Must meet the Technical Standards adopted pursuant to Regulation Part 8. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.5 Minimum Standards For Inter-Casino Linked Systems

All inter-casino linked systems submitted for approval: (a) Shall have a method to secure data transmissions between the games and devices and the main computer of the operator, as approved by the Executive Director; (b) Gaming devices connected to a common payoff schedule shall: 1. All be of the same denomination; or 2. If of different denominations, equalize the expected value of winning the payoff schedule on the various denominations by setting the odds of winning the payoff schedule in proportion to the amount wagered or by requiring the same wager to win the payoff schedule regardless of the device’s denomination. The method of equalizing the expected value of winning the payoff schedule shall be conspicuously displayed on each device connected to the inter-casino linked system; (c) Shall display the rules of play and the payoff schedule; (d) Shall meet the applicable minimum standards for internal control; and (e) Shall meet the Technical Standards adopted pursuant to Regulation Part 8. Any percentage changes to the rate of progression of the primary meter shall be submitted for approval of the Executive Director. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.6 Computer Monitoring Requirements Of Gaming Devices

A licensee must have a computer connected to all gaming devices to record and monitor the activities of such devices. No gaming devices shall be operated unless it is on-line and communicating to a computer monitoring system approved by the Executive Director. Such computer monitoring system shall provide on-line, real-time monitoring and data acquisition capability in the format and media approved by the Executive Director. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.7 Employment Of Individual To Respond To Inquiries From The Commission

Each manufacturer shall employ or retain an individual who understands the design and function of each of its gaming devices, cashless wagering systems, or inter-casino linked systems who shall respond within the time specified by the Executive Director to any inquiries related thereto. Each manufacturer or operator shall on or before December 31st of each year report in writing the name of the individual designated pursuant to this section and shall report in writing any change in the designation within fifteen (15) calendar days of the change. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.8 Evaluation Of New Gaming Devices

The Executive Director or his designee may require transportation of not more than two working models of a new gaming device to a designated electronics laboratory for review and inspection. The Executive Director may employ the services of an outside electronics laboratory to evaluate the device. The manufacturer seeking approval of the device must pay the cost of the inspection and investigation. The lab may dismantle the models and may destroy electronic components in order to fully evaluate the device. The Executive Director may require that the manufacturer provide specialized equipment or the services of an independent technical expert to evaluate the device. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.9 Evaluation Of Inter-Casino Linked Systems

The Executive Director or his designee may require transportation of not more than one working model of an inter-casino linked system to the commission’s offices or some other location for review and inspection. The Executive Director may employ the services of an outside electronics laboratory to evaluate the system. The associated equipment manufacturer seeking approval of the system shall pay the cost of the inspection and investigation. The Commission may dismantle the model and may destroy electronic components in order to fully evaluate the inter-casino linked system. The Executive Director may require that the operator of an inter-casino linked system provide specialized equipment or the services of an independent technical expert to evaluate the inter-casino linked system. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.10 Field Test Of New Gaming Devices And New Inter-Casino Linked Systems

(a) The Executive Director shall make a preliminary, nonbinding determination whether a new gaming device or a new system meets the governing standards. If the Executive Director makes a preliminary determination that a new gaming device or a new inter- casino linked system has met the governing standards, he may allow or require that one or more models of the gaming device or the intercasino linked system be tested at a licensed gaming establishment(s) for not less than 60 nor more than 180 calendar days under terms and conditions that he may approve or require. (b) A manufacturer shall not modify a gaming device and an operator shall not modify a new inter-casino linked system during the test period without the prior written approval of the Executive Director. (c) The Executive Director may order termination of the test period, if he determines, in his sole and absolute discretion, that the manufacturer, operator, or licensed gaming establishment has not complied with the terms and conditions of the order allowing or requiring a test period or if the new gaming device or new intercasino linked system fails to meet the governing standards. 1. If the test period is terminated due to the licensed gaming establishment’s failure to

comply with the terms and conditions of the order allowing or requiring a test period, the Executive Director may order that the test be conducted at another licensed gaming establishment. 2. A manufacturer or operator may object to the termination of the test period by filing a written objection with the Commission. The filing of an objection shall not stay the order terminating the test. If the Commission fails to order resumption of the test within 60 calendar days of the written objection, the objection will be deemed denied. If the Commission sustains the objection, the testing may be resumed under terms that may be approved or required by the Commission. (d) A licensee or manufacturer, or their agent, shall not play a new gaming device during a test period. A licensee or operator, or their agent, shall not play a gaming device or game connected to a new inter-casino linked system during a test period. (e) If the Executive Director has made a determination that a new gaming device or new inter- casino linked system is not eligible for testing at a licensed gaming establishment because the new device or new system does not meet the governing standards, he shall notify the manufacturer or operator in writing. Not later than 10 calendar days after receipt of such notification, the manufacturer or operator may object to such a determination by filing written objection with the Commission. If the Commission fails to order a test period within 60 calendar days of the written objection, the objection will be deemed denied. If the Commission sustains the objection, the new gaming device or new inter-casino linked system may be tested at a licensed gaming establishment under terms and conditions that may be approved or required by the Commission. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.11 Certification By Manufacturer

(a) After completing its evaluation of a new gaming device, cashless wagering system or inter-casino linked system, the lab shall send a report of its evaluation to the Executive Director and the manufacturer seeking approval of the device. The report must include an explanation of the manner in which the device or system operates. A separate recommendation as to whether the device should be approved shall also be provided to the Executive Director only. The manufacturer shall return the report to the Executive Director within fifteen (15) calendar days and shall either: 1. Certify under penalty of perjury that to the best of its knowledge the explanation is correct; or 2. Make appropriate corrections, clarifications, or additions to the report and certify under penalty of perjury that to the best of its knowledge the explanation of the gaming device is correct as amended. (b) The Executive Director may order additional evaluation and a field test of the new gaming device or system of up to 60 calendar days in addition to the test period provided for in Rule 12.10 of this regulation he determines that such additional evaluation is necessary. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.12 Approval Of New Gaming Devices

After completing his evaluation of the new gaming device, the Executive Director shall recommend to the Commission whether the application for approval of the new gaming device should be granted. In considering whether a new gaming device will be given final approval, the Commission shall consider whether approval of the new gaming device is consistent with the public policy of the state. Commission approval of a gaming device does not constitute certification of the device's safety. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.13 Duplication Of Program Storage Media

A licensee other than a manufacturer shall not duplicate the contents of gaming device program storage media unless its duplication process, including internal controls related thereto, has received written approval of the Executive Director. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.14 Marking, Registration, And Distribution Of Gaming Devices

(a) Except as otherwise provided in subsection (2), a manufacturer or distributor shall not distribute a gaming device in this state or from a location within this state out of state unless the gaming device has: 1. A permanent serial number which must be the same number as given the device pursuant to the provisions of the Gaming Device Act of 1962, 15 U.S.C. 1173, permanently stamped or engraved in lettering no smaller than five (5) millimeters on the metal frame or other permanent component of the device and on a removable metal plate attached to the cabinet of the device; and 2. For devices distributed in this state, the Commission approval number or, if the device has been modified since initial approval of the device, the modification approval number affixed on all program storage media placed in the device. (b) Each manufacturer or distributor shall keep a written list of the date of each distribution, the serial numbers of the devices, the Commission approval number, or, if the device has been modified since initial approval of the device, the modification approval number, and the name, state of residence, addresses and telephone numbers of the person to whom the gaming devices have been distributed and shall provide such list to the Executive Director immediately upon his request. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.15 Approval To Distribute Gaming Device into or out of Mississippi; Applications and Procedures

(a) Manufacturers and distributors shall not distribute gaming devices into or out of this state without the prior, written approval of the Executive Director or his designee. Applications for approval to distribute gaming devices into or out of this state must be

made, processed, and determined in such manner and using such forms as the Executive Director may prescribe. Each application must include, in addition to such other items or information as the Executive Director may require: 1. The full name, state of residence, address, telephone number, social security number, and driver’s license number of both the purchaser and the person to whom the shipment is being made, if neither is currently licensed by the commission. If the purchaser or person to whom the shipment is being made does not have a social security number or driver’s license number, the birth date of the purchaser or person to whom the shipment is being made may be substituted; 2. The name and permanent address of the purchaser or person to whom the shipment is being made if either is currently licensed by the Commission; 3. The destination, including the port of exit if the destination is outside the continental United States; 4. The number of devices to be shipped; 5. The serial number of each device; 6. The model number of each device and year each device was manufactured, if known; 7. The denomination of each device; 8. The expected date and time of shipment; 9. The method of shipment and name and address of carrier; 10. A statement by the purchaser under penalty of perjury that each device will be used only for lawful purposes, unless the purchaser is currently licensed by the commission or the destination is outside the United States. (b) Manufacturers and distributors shall not ship gaming devices to a destination where possession of a gaming device is unlawful. (c) Manufacturers and distributors shall, on or before December 31st of each year, give the Commission a copy of their registration with the United States Attorney General pursuant to the provisions of the Gaming Devices Act of 1962, 15 U.S.C. § 1173, for the ensuing year. (d) An agent of the Commission may inspect all gaming devices prior to distribution into or out of this state. Manufacturers and distributors shall make the gaming devices available for such inspection. (e) If the Executive Director does not deny the application for approval to distribute gaming devices into or out of this state within five (5) working days of receipt of a complete application, the application will be deemed to be approved. (f) A manufacturer or distributor shall keep a record of all shipments made into or out of state of parts specifically designed for use in a gaming device. The record must include the information set forth in subsection (a), if applicable. A manufacturer or distributor shall not ship parts specifically designed for use in a gaming device to a destination where possession of a gaming device is unlawful. (g) A fee of $100.00 per slot machine will be assessed by the Mississippi Gaming Commission (MGC) when an approved slot machine is transferred to or from a licensed operator. Notifications must be submitted to the MGC Laboratory (on approved form provided by the MGC) for processing and billing. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.16 Approval To Sell Or Dispose Of Gaming Devices

A licensee, other than a manufacturer and distributor, shall not dispose of gaming devices without the prior written approval of the Executive Director, unless the devices are sold or delivered to its affiliated companies or a licensed manufacturer or distributor, in which case approval is deemed granted. A licensee shall not request approval to sell or deliver gaming devices to a person other than its affiliated companies or a licensed manufacturer or distributor unless the devices have been marked pursuant to Rule 12.15 of this regulation. Applications for approval to sell or dispose of gaming devices must be made, processed, and determined in such manner and using such forms as the Executive Director may prescribe. Each application must include the information required by Rule 12.15 of this regulation in addition to such other items or information as the Executive Director may require. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.17 Maintenance Of Gaming Devices

A licensee shall not alter the operation of approved gaming devices and shall maintain the gaming devices in a suitable condition. Each licensee shall keep a written list of repairs made to gaming devices offered for play to the public that require a replacement of parts that affect the game outcome and shall make the list available for inspection by the Executive Director upon his request. All parts that are integral to the playing of the gaming device, related to the actual game outcome, or associated equipment of the machine must be sold by a licensed manufacturer or distributor. These parts include software, artwork, and other integral components whose installation may be considered a modification of the machine by the MGC. Simple parts that do not constitute a modification of a gaming device or associated equipment (such as simple hardware, bolts, screws, light bulbs, etc.) may be sold by a non-licensed vendor but must be equivalent in performance, specifications and dimensions as the original equipment. The Executive Director reserves the right to make a determination as to whether any seller of gaming device parts and equipment must be licensed by the Commission. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.18 Analysis Of Questioned Electronic Gaming Devices

(a) If the operation of any electronic gaming device is questioned by any licensee, patron or the Executive Director, the questioned device will be examined in the presence of the Executive Director and a representative of the licensee. If the malfunction cannot be cleared by other means to the satisfaction of the Executive Director, the patron and the licensee, the electronic gaming device will be subjected to an EPROM memory test to verify "signature" comparison by the Executive Director. (b) In the event that the malfunction cannot be determined and corrected by this testing, the electronic gaming device may be removed from service and secured in a remote, locked compartment. The electronic gaming device may then be transported to an industry- recognized laboratory selected by the Executive Director where the device will be fully

analyzed to determine the status and cause of the malfunction. All costs for transportation and analysis must be borne by the licensee. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.19 Summary Suspension Of Approval Of Gaming Devices

(a) The Executive Director may call a special Commission meeting so that the Commission may issue a summary order, with or without notice to the manufacturer, distributor, operator or licensee, suspending approval of a gaming device or system if it determines that the device or system does not operate: 1. In the manner certified by the manufacturer; 2. As approved by the Executive Director; or 3. Is experiencing malfunctions. (b) After issuing an order pursuant to subsection (a), the Executive Director may seal or seize all models of that gaming device. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.20 Approval Of Associated Equipment; Applications And Procedures

(a) A manufacturer or distributor of associated equipment shall not distribute associated equipment unless it has been approved by the Executive Director. Applications for approval of associated equipment shall be made and processed in such manner and using such forms as the Executive Director may prescribe. Each application must include, in addition to such other items or information as the Executive Director may require: 1. The name, permanent address, social security number, and driver's license number of the manufacturer or distributor of associated equipment unless the manufacturer or distributor is currently licensed by the commission. If the manufacturer or distributor of associated equipment is a corporation, the names, permanent addresses, social security numbers, and driver's license numbers of the directors and officers must be included. If the manufacturer or distributor of associated equipment is a partnership, the names, permanent addresses, social security numbers, driver's license numbers, and partnership interest of the partners must be included. If social security numbers or driver's license numbers are not available, the manufacturer's or distributor's birth date may be substituted; 2. A complete, comprehensive and technically accurate description and explanation in both technical and lay language of the associated equipment or a modification to previously approved associated equipment and its intended usage, signed under penalty of perjury; 3. Detailed operating procedures for the associated equipment; and 4. Details and results of all tests performed and the standards under which such tests were performed, together with a confirmation that the associated equipment is functioning as represented, signed under penalty of perjury. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.21 Evaluation Of Associated Equipment

The Executive Director may require transportation of not more than 2 working models of associated equipment to a designated lab for review and inspection. The lab may dismantle the associated equipment and may destroy electronic components in order to fully evaluate the equipment. The Executive Director may require the manufacturer or distributor seeking approval to provide specialized equipment or the services of an independent technical expert to evaluate the equipment and may employ an outside laboratory to conduct the evaluation. The manufacturer seeking approval of the associated equipment must pay the cost of the evaluation. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.22 Installation Of Associated Equipment

A licensee shall not install or use associated equipment that has not been approved by the Executive Director. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.23 Maintenance Of Associated Equipment

A licensee shall not alter the manner in which associated equipment operates without prior written approval of the Executive Director. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.24 Retention Of Records

All records required by this regulation must be maintained for 5 years. (Adopted: 09/25/1991; Amended: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 4, R. 2.25 Storage of Gaming Equipment (a) All licensees shall store gaming equipment only in locations approved by the Commission

1. The Commission shall approve the location of any proposed storage area or facility prior to utilization of the storage area or facility. 2. The Commission shall conduct an inspection of the storage area or facility prior to utilization of the storage area or facility and periodically for security compliance. 3. All associated equipment that requires licensure may only be stored in counties where gaming is legal. (b) Minimum standards for off-site storage facilities: 1. The storage facility must have security panels or bars over any windows, or

windows must be equipped with an alarm system; 2. Gaming equipment must not be visible from the exterior of the facility; 3. The gaming storage area must be monitored either by security personnel or a professional alarm system; 4. Slot machines must be dropped and currency boxes removed prior to storage, and slot machines shall be housed separately from other gaming equipment within the storage facility; 5. CPU boards and/or other sensitive gaming devices or supplies shall be maintained in a separate secured key controlled area with limited access. (c) Minimum standards for on-site storage facilities: 1. Gaming equipment must not be visible from the exterior of the facility; 2. The gaming storage area must have surveillance coverage to detect the movement(s) of personnel within the storage area; 3. Slot machines must be dropped and currency boxes removed prior to storage; and 4. If CPU boards are being maintained in the slot machine, the boards must be secured by a lock. (d) The licensee must provide the following information to the Commission: 1. A list of key holders who have access to the storage area or facility; 2. An access list of personnel who are permitted in the storage facility or in the gaming storage area prior to the storing of gaming equipment. Only necessary personnel should have access to this area; 3. A list of key control procedures should be established and provided for approval prior to storing equipment; 4. An inventory of all slot machines shall be maintained at the storage facility that includes manufacturer, serial number, and date of storage on a form approved by the Commission. Information on movement of the machines should be included in the inventory log; and 5. Immediate notification of vandalism or theft of gaming equipment. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

Part 5 Part 5: Exclusion of Persons

Chapter 1 IN GENERAL

13 Miss. Admin. Code Pt. 5, R. 1.1 Duty To Exclude

No excluded person shall be permitted entry into any portion of a licensed gaming establishment. When a person is placed on the exclusion list by the Executive Director, such person shall be prohibited from contact of any kind with any licensed establishment unless and until a determination is made by the Commission or a court to the contrary. It shall be the duty of the licensee and of his employees to exclude or eject from a licensed establishment any excluded person when such licensee or employee knows or reasonably should know of the presence of such excluded person. It shall further be the duty of the licensee to inform the Executive Director in writing of the names of persons such licensee reasonably believes meet the criteria for placement on an Exclusion List. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-33, 75-76-35(2)

13 Miss. Admin. Code Pt. 5, R. 1.2 Distribution And Availability Of Exclusion Lists

The Commission shall maintain a list of persons to be ejected or excluded from licensed establishments. The list shall be distributed to each licensed establishment which shall acknowledge receipt of the list in writing. The list shall also be distributed to law enforcement agencies. The following information, to the extent known, shall be provided for each excluded person: (a) The full name and date of birth and all aliases; (b) A physical description; (c) The effective date the person's name was placed on the list; (d) A photograph, if available; (e) The person's occupation and his current home and business address; and (f) Such other information as deemed necessary by the Executive Director. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-33, 75-76-35(2)

13 Miss. Admin. Code Pt. 5, R. 1.3 Criteria For Exclusion Or Ejection And Placement On An Exclusion List

The Executive Director may place a person on the exclusion list pending a hearing if such person has: (a) Been convicted of a felony in any jurisdiction, of any crime of moral turpitude or of a crime involving Gaming; (b) Violated or conspired to violate the provisions of the Act relating to involvement in gaming without required licenses, or willful evasion of fees or taxes; (c) A notorious or unsavory reputation which would adversely affect public confidence and trust in gaming; or

(d) His name on any valid and current exclusion list from another jurisdiction in the United States. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-33, 75-76-35(2)

13 Miss. Admin. Code Pt. 5, R. 1.4 Procedure For Entry Of Names

(a) Upon a determination that a person comes under any one of the criteria listed in Part 5 Chapter 1 Rule 1.3, such person shall be deemed a candidate for exclusion and a petition for exclusion may be filed by the Executive Director. Such petition shall include the identity of the candidate and the nature and scope of the circumstances or reasons that such person should be placed on the exclusion list. The petition shall also notify such person of the availability of a hearing by the Commission pursuant to Miss. Code Ann. §§ 75-76-39. Notice of the petition must be given pursuant to Miss. Code Ann. §§ 75- 76-37. (b) If the Commission or a subsequent judicial review finds in favor of the candidate or excluded person, then his name shall be removed from the exclusion list and his exclusion shall be terminated as of the date of the action by the Commission or the court. If the finding is against the candidate or excluded person, his name shall be placed on the exclusion list. If no hearing is requested, the person's name shall be placed on the exclusion list. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-33, 75-76-35(2)

13 Miss. Admin. Code Pt. 5, R. 1.5 Petition For Removal From Exclusion List

Any person who has been placed on the exclusion list may petition the Commission in writing and request that his name be removed from the list. Consideration by the Commission is not a matter of right but is within the sound discretion of the Commission. This process does not apply to the self-exclusion created by Title 13, Part 3, Rule 10 of the Mississippi Administrative Code. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-33, 75-76-35

Part 6 Part 6: Enforcement

Chapter 1 INVESTIGATIONS

13 Miss. Admin. Code Pt. 6, R. 1.1 Investigation Of Gaming Establishments, Generally

A license, registration, finding of suitability, or other affirmative approval granted by the Commission to any person authorizing that person to have any involvement in the gaming industry is a revocable privilege, and no holder thereof shall be deemed to have acquired any vested rights therein or thereunder. The Commission and the Executive Director shall observe the conduct of all such persons to the end that unqualified or unsuitable persons or persons whose operations are conducted in an unsuitable manner shall not be involved in the gaming industry in the State of Mississippi. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 6, R. 1.2 Access To Premises And Production Of Records

(a) No applicant or any person licensed, registered, found suitable or approved by the Commission shall neglect or refuse to produce records or evidence or to give information upon proper and lawful demand by any Commission member, the Executive Director or any agent of the Commission or the Executive Director, or shall otherwise interfere or attempt to interfere with any proper and lawful efforts by the Commission, the Executive Director or any agent to obtain such information. (b) Each gaming licensee, licensed manufacturer, and licensed distributor or seller shall immediately make available for inspection by any Commission member, the Executive Director, or any agent, all papers, books and records produced by any gaming business and all portions of the premises upon which gaming is conducted or where gambling devices or equipment are manufactured, sold or distributed. (c) The Executive Director or Commission may require any person licensed, found suitable, registered, or approved by the Commission to appear and testify before them or their agents with regard to any matter within their jurisdiction. Such testimony shall be under oath and may embrace any matters which the Executive Director, the Commission or their agents deem relevant to the discharge of their official duties. Any person required to appear and testify shall have the right to be represented by counsel. Any testimony so taken may be used by the Executive Director as evidence in any proceeding or matter then before him or the Commission or which may later come before him or the Commission. Failure to appear and testify fully at the time and place designated, unless excused, shall constitute grounds for revocation or suspension of any license, finding of suitability, registration or approval held by the person summoned, his principal, or employer. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 6, R. 1.3 Orders To Show Cause

The Executive Director may issue an Order to Show Cause why a license, finding of suitability, registration or approval granted by the Commission should not be limited, conditioned, suspended or revoked or why the person licensed, found suitable, registered, or approved should not be fined by the Commission. The Order to Show Cause must set forth the basic facts alleged to constitute a violation of the Gaming Control Act or these regulations and notify the person licensed, found suitable, registered or approved of his right to respond to the allegations in writing within twenty (20) days of the receipt of the Order to Show Cause. The time for response may be extended by the Executive Director upon written request. The response shall be confidential but may be provided to the Commission or any hearing examiner appointed by the Commission in subsequent disciplinary proceedings. (Adopted: 09/25/1991; Amended: 06/28/1993; Amended: 10/22/1998.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 2 DISCIPLINARY PROCEEDINGS

13 Miss. Admin. Code Pt. 6, R. 2.1 Complaint

If the Executive Director believes that any person licensed, found suitable, registered or approved by the Commission should have his license, finding of suitability, registration or approval limited, conditioned, suspended or revoked, or should be fined by the Commission, he shall file a complaint with the Commission setting forth the facts constituting reasonable cause for the disciplinary action sought. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-103

13 Miss. Admin. Code Pt. 6, R. 2.2 Service Of Complaint

The Executive Director shall cause the complaint to be served upon the respondent by registered or certified mail, or personally. Proof of service may be provided by a certificate or affidavit of service, which shall be signed by the person effecting service and which shall specify the date and manner of service. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-107

13 Miss. Admin. Code Pt. 6, R. 2.3 Appointment And Authority Of Hearing Examiner

(a) Upon receipt of the complaint, the Commission shall appoint a hearing examiner pursuant to Miss. Code Ann. §75-76-103(3). (b) The hearing examiner shall review the complaint and all matters submitted in support thereof and the respondent's answer, if any, and shall schedule a hearing as soon after receipt of the respondent's answer as practicable. (c) The hearing examiner may issue rulings on discovery issues, scheduling matters, protective orders, admissibility of evidence, and other procedural or pre-hearing matters. The hearing examiner's rulings are appealable to the Commission only in accordance with the principles of finality applicable in the courts of the State of Mississippi.

(d) The hearing examiner may alter any of the time periods provided by these regulations, upon his own initiative or upon a motion by a party or other person affected for good cause shown. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-103, 75-76-27

13 Miss. Admin. Code Pt. 6, R. 2.4 Ex Parte Communications

(a) Unless required for the disposition of ex parte matters authorized by law: 1. A party or his representative shall not communicate directly or indirectly in connection with any issue of fact or law related to a proceeding under this regulation, with the hearing examiner or any member of the Commission, except upon notice and opportunity to all parties to participate; and 2. The hearing examiner or a member of the Commission shall not communicate, directly or indirectly, in connection with any issue of fact or law related to a proceeding under this regulation, with any party or his representative, except upon notice and opportunity to all parties to participate; (b) This section shall not preclude: 1. The hearing examiner or any member of the Commission from consulting with Commission counsel or supervisory counsel concerning any matter before the Commission; or 2. A party or his representative from conferring with the hearing examiner, the Chairman, or Commission counsel concerning procedural matters that do not involve issues of fact or law related to the proceeding. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-27, 75-76-107

13 Miss. Admin. Code Pt. 6, R. 2.5 Appearance Through Counsel

(a) Parties to proceedings governed by this regulation may appear personally or through an attorney, except that a party must personally attend any hearing on the merits unless his attendance has been waived, in writing, by the hearing examiner or the Chairman. (b) When a party has appeared through an attorney, service of all notices, motions, orders, decisions and other papers shall thereafter be made upon the attorney, unless the party requests otherwise in writing. (c) When a party is represented by an attorney, the attorney shall sign all motions, oppositions, notices, requests, and other papers on behalf of the party, including a request for subpoenas. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-111

13 Miss. Admin. Code Pt. 6, R. 2.6 Pre-hearing Conferences; Scheduling

(a) After the respondent files an answer to the complaint, the hearing examiner may direct the parties to participate in a conference or conferences before the hearing on the merits, for such purposes as expediting the disposition of the action, resolving discovery issues, and facilitating the settlement of the case.

(b) The participants at any pre-hearing conference under this section shall be prepared to consider and take action with respect to any or all of the following, as determined by the hearing examiner: 1. The formulation and simplification of the issues; 2. The necessity or desirability of amendments to the complaint or answer; 3. The possibility of obtaining admissions of fact and of documents which will avoid unnecessary proof, stipulations regarding the authenticity of documents, and advance rulings from the hearing examiner on the admissibility of evidence; 4. The avoidance of unnecessary proof and of cumulative evidence; 5. The identification of witnesses and documents, the need and schedule for filing and exchanging pre-hearing briefs, and the date or dates for further conferences and for the hearing on the merits; 6. The possibility of settlement; 7. The disposition of pending motions; 8. The possibility that all evidence can be submitted by affidavits, transcripts, and other documents; and 9. Such other matters as may aid in the disposition of the action. (c) After any conference held pursuant to this regulation, the parties shall set forth in a written stipulation, to be filed with the hearing examiner, any matters no longer in dispute. As to those matters for which no agreement has been reached, but which require a ruling from the hearing examiner, the hearing examiner shall enter an order reciting the ruling. (d) At any time considered appropriate by the hearing examiner, or at the request of a party, the hearing examiner may enter a scheduling order that sets the date for the hearing on the merits and other hearings deemed necessary or appropriate by the hearing examiner and that limits the time within which the parties may: 1. Amend the complaint or answer without leave of the hearing examiner; 2. File pre-hearing motions; 3. Complete discovery; 4. File pre-hearing briefs. (e) This section shall not be interpreted to give any party or other person a right to a pre- hearing conference with the hearing examiner. The hearing examiner may direct the parties to participate in a pre-hearing conference without the hearing examiner's presence. The hearing examiner may at any time enter an order on any matter delegated to him, without consulting the parties and without granting oral argument. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-125

13 Miss. Admin. Code Pt. 6, R. 2.7 Discovery

(a) Within 20 calendar days after the service of the answer by the first answering respondent, and thereafter as each respondent answers the complaint, the parties shall confer for the purpose of complying with Subsection (b) of this Section. (b) At each conference the parties shall: 1. Exchange copies of all documents then reasonably available to a party which are then intended to be offered as evidence in support of the party's case in chief;

2. Identify, describe, or produce all tangible things, other than documents, then reasonably available to a party which are then intended to be offered as evidence in support of the party's case in chief, and upon request, arrange for the opposing parties to inspect, copy, test, or sample the same under the supervision of the parties; and 3. Exchange written lists of persons each party then intends to call as a material witness in support of that party's case in chief. Each witness shall be identified by name, if known, position, business address, and a brief description of the purpose for which the witness will be called. If no business address is available, the party shall provide a home address for the witness, or shall make the witness available for service of process. For the purpose of this paragraph, a "material witness" is a person whose testimony relates to a genuine issue in dispute which might affect the outcome of the proceeding. (c) In addition to the documents required to be produced by the Executive Director pursuant to subsection (b) of this Section, the Executive Director shall provide to a respondent who requests the same, a copy of any formal statement given to the Executive Director or his agents by that respondent during the Executive Director's investigation of the matters contained in the complaint, in accordance with this subsection. 1. Where the respondent is a corporation, partnership, or other association, the Executive Director shall provide to the requesting respondent, a copy of any formal statement made by officers or directors of the corporation, general partners of the partnership, or managing agents of the association, unless any such statement was given in confidence. 2. If any statement governed by this subsection is embodied or included in a report, summary, or other document which is not otherwise required to be produced by this Regulation, the Executive Director may produce only an excerpt of such report, summary, or document which contains the statement. 3. For the purpose of this subsection, a "formal statement" is a statement given to the Executive Director or his agent by a person knowing he is speaking to a government official or agent, and which is either signed by the person giving the statement or given under oath or affirmation such as in an investigative hearing. The term does not include discussion, conversations, or other statements obtained surreptitiously; or memoranda, notes, or other internal documents made by the Executive Director, an attorney for the Executive Director, or an agent of the Executive Director. (d) In addition to the other materials required to be produced by the Executive Director, the Executive Director shall make arrangements with a respondent who requests the same for the respondent to inspect, copy, test, or sample any other documents or tangible things the Executive Director seized from or which belong to that respondent. Such inspection, copying, testing, or sampling shall be conducted under the supervision of a representative of the Executive Director. (e) The inspection, copying, sampling, or testing of any evidence or other matter pursuant to subsections (b) and (d) of this Section, shall be accomplished without the alteration or destruction of the evidence or evidentiary value of the matter, either in whole or in part, except as otherwise ordered by the hearing examiner upon a finding that extraordinary circumstances exist. Such destruction or alteration shall not be permitted if it would prejudice any party to the action or any other law enforcement or administrative agency.

(f) It shall be a continuing obligation of the parties to produce documents, witness lists, and other matters governed by this Section as such become identified by and available to the parties. A party may amend its responses to the requirements of this section by informing the adverse party that documents previously produced or witnesses previously listed, will not be introduced in that party's case in chief. (g) The hearing examiner may order the parties to submit periodic reports regarding the parties' compliance with this Section. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-125

13 Miss. Admin. Code Pt. 6, R. 2.8 Confidential And Privileged Materials

(a) The Executive Director shall not produce documents in his possession if prohibited by state or federal law. If the Executive Director intends to introduce any such document in his case in chief, the Executive Director shall inform the hearing examiner and the hearing examiner shall make appropriate orders regarding dissemination of such documents. The hearing examiner may prohibit the admission of the evidence, or make such orders as he deems necessary to limit dissemination of the document. (b) A respondent shall not further disseminate confidential or privileged materials except to counsel of record in the action and necessary staff employed by counsel. Upon the conclusion of the action, the respondent shall return all such materials and copies to the Executive Director. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-133

13 Miss. Admin. Code Pt. 6, R. 2.9 Depositions

(a) A party wishing to take the deposition of a material witness residing within or without the State of Mississippi who will be unavailable to testify at the hearing pursuant to Miss. Code Ann. §75-76-109 (2), shall file a motion with the hearing examiner setting forth the witness' name, position, business or home address, a sufficient description of the purpose for which the witness will be called to enable the hearing examiner to determine the materiality of the witness, and the reason the witness will be unavailable to testify at the hearing. (b) Any other party may file a written opposition to the motion within five (5) days after receipt of the motion. (c) If the hearing examiner finds that the witness is a material witness and that he will be unavailable to testify at the time of the hearing, the hearing examiner shall order the deposition to be taken upon such terms and conditions as he deems appropriate. (d) A deposition of a non-party witness may be compelled by subpoena. (e) Depositions shall be taken before an officer authorized to administer oaths. A deposition shall not be taken before a person who is a relative, employee, attorney or counsel of any of the parties, or is a relative or employee of such attorney or counsel, or is interested in the proceeding. (f) Testimony shall be taken upon oath or solemn affirmation. Unless the hearing examiner orders otherwise, the testimony shall be reported by stenographic means. The cost of

transcription shall be borne by the party requesting the deposition. Such party shall provide a copy of the transcript to all parties interested in the proceeding. (g) Unless the parties and the witness agree otherwise, a deposition shall not take place on less than fifteen (15) calendar days’ notice. (h) A deposition may be used in a proceeding governed by this regulation for the same or similar purposes as depositions may be used in a court of law, or for any other purpose allowed by the hearing examiner. (i) Objection may be made at the hearing on the merits to receiving into evidence any deposition or a part thereof for any reason which would require the exclusion of the evidence if the witness were then present and testifying. If a deposition is received in evidence, any party may rebut any relevant evidence contained in the deposition. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-109

13 Miss. Admin. Code Pt. 6, R. 2.10 Subpoenas

(a) The hearing examiner shall issue subpoenas, including subpoenas duces tecum, upon the request of a party, in accordance with this Section. (b) Subpoenas may be issued only for the following purposes: 1. To compel a non-party witness to appear and give oral testimony at a deposition as provided by Rule 2.9 of this regulation; or 2. To compel any person to appear at the hearing on the merits of the case, to give testimony, or to produce documents or other tangible things. (c) Subpoenas shall be submitted to the hearing examiner for issuance on a form approved by the Commission. Concurrently with the submission of the subpoena to the hearing examiner, the requesting party shall serve a copy on all of the parties to the proceeding and shall file proof of such service with the hearing examiner. (d) Subpoenas will not be issued in blank. A subpoena submitted for issuance must contain the title and number of the case, the name of the person to whom it will be directed, the date, time and place of hearing or deposition, and the name and signature of the requesting party or his attorney. A subpoena duces tecum must, in addition, contain a complete description of specific documents or other tangible things that the witness will be required to produce at the hearing. (e) Unless the witness agrees otherwise, a subpoena issued for the purposes provided by subsection (b)(2) must be served by the requesting party at least ten (10) calendar days prior to the hearing. A subpoena will be issued during the hearing or on less than ten (10) days notice only upon order of the hearing examiner for reasonable cause shown by the requesting party. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-109

13 Miss. Admin. Code Pt. 6, R. 2.11 Protective Orders

Upon motion by a party or by a person to whom a subpoena is directed, or from whom discovery or testimony is sought, the hearing examiner may make any order which justice requires to protect a party or person from annoyance, embarrassment, oppression, or undue

burden or expense, including one or more of the following: (a) That a subpoena be quashed or modified; (b) That the discovery not be had, or that it be had only on specified terms and conditions, including a designation of the time or place; (c) That certain matters not be inquired into or produced, or that testimony or production be limited to certain matters; (d) That a deposition be conducted with no one present except persons designated by the hearing examiner, or that a deposition transcript be sealed; or (e) That a trade secret or other confidential research, development, or commercial information not be disclosed or be disclosed only in a designated way. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-109

13 Miss. Admin. Code Pt. 6, R. 2.12 Discovery Disputes

The parties shall make every effort to resolve disputes regarding discovery. Disputes that are unresolved may be brought to the hearing examiner for resolution by way of a motion to compel discovery, motion for protective order, or other appropriate motion. The disputed discovery is not stayed during the pendency of such motion, unless the hearing examiner so orders. The filing of such motion shall not extend the time to complete discovery, nor provide cause for a continuance of the hearing on the merits, unless the hearing examiner otherwise orders. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-109

13 Miss. Admin. Code Pt. 6, R. 2.13 Sanctions

If any party or his attorney fails reasonably to comply with any provision of this regulation, the Gaming Control Act, or any order entered, regarding any matter, including discovery, the hearing examiner upon motion or upon its own initiative, may impose upon such party or attorney, or both, appropriate sanctions in regard to the failure(s) as are just, including the following: (a) An order prohibiting the use of any witness, document or tangible thing which should have been disclosed, produced, exhibited or exchanged pursuant to this regulation or order of the hearing examiner; (b) An order that designated facts shall be taken to be established; (c) An order that the disobedient party may not support or oppose designated claims or defenses; (d) An order striking out pleadings or parts thereof, or staying further proceedings or dismissing the proceeding or any part thereof, or entering a judgment by default against the disobedient party; (e) The initiation of contempt proceedings as provided by Miss. Code Ann. §75-76-117. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-117

13 Miss. Admin. Code Pt. 6, R. 2.14 Conduct Of Hearings

In addition to the procedures prescribed by statute, the following procedures will apply when appropriate: (a) The respondent will be allowed to present and argue any legal objections to the complaint set forth in the answer; the Executive Director may thereupon present its answering argument; and thereafter the respondent may present rebuttal argument. The matter will then be submitted to the hearing examiner for decision. The hearing examiner may rule upon such objections immediately or take the matter under advisement and proceed with the hearing. (b) The Executive Director will present his opening statement on the merits. The respondent will then be permitted to make an opening statement of the defense, or he may reserve the same until commencement of the presentation of the defense. (c) The Executive Director will then present its case in chief in support of the complaint. (d) Upon conclusion of the Executive Director's case in chief, the respondent may move for dismissal of the complaint. The hearing examiner may hear arguments on the motion, or may grant, deny, or reserve decision thereon, with or without argument. (e) If no motion to dismiss is made, or if such motion is denied or decision reserved thereon, the respondent shall thereupon present the case for the defense. (f) Upon conclusion of the respondent's case, the Executive Director may present its case in rebuttal. (g) Upon conclusion of the Executive Director's case in rebuttal, the Executive Director shall present its closing argument, the respondent may present answering argument, and thereafter the Executive Director may present rebuttal argument. Thereupon the matter will stand submitted for decision. (h) The hearing examiner may ask questions of witnesses, and may request or allow additional evidence at any time, including additional rebuttal evidence. (i) The burden of proof is at all times on the licensee, applicant or aggrieved party to show compliance with the Gaming Control Act and Mississippi Gaming Commission Regulations. (j) Hearing Examiners shall be chosen as follows; either from the Attorney General's Office, a contracted private party or an individual whose expertise is relevant to properly interpret and enforce the Gaming Control Act and Mississippi Gaming Commission Regulations. Hearings may be conducted by telephone if the parties agree. (Adopted: 09/25/1991; Amended: 03/29/1993.)

History

• Source: Miss. Code Ann. §§ 75-76-117, 75-76-119, 75-76-123, 75-76-125

13 Miss. Admin. Code Pt. 6, R. 2.15 Evidence: Admissibility

(a) For the purpose of this Section, evidence is reliable if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs. (b) In hearings governed by this regulation, the technical rules relating to evidence and witnesses shall not apply. Any relevant evidence may be admitted, and such evidence shall be sufficient in itself to support a finding if it is reliable, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in a civil action.

(c) By way of illustration only, those matters that would be admissible in a court of law are hereby deemed to be reliable, in addition to those matters that satisfy the standards set forth in subsections (a) and (b) of this Section. (d) Irrelevant or unduly repetitious evidence shall be excluded upon request of a party or the hearing examiner's own initiative. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-111

13 Miss. Admin. Code Pt. 6, R. 2.16 Evidence: Authentication And Identification

(a) Documentary and other physical evidence may be authenticated or identified by any reasonable means, by evidence or other showing that the matter in question is what its proponent claims it to be. (b) By way of illustration only, those matters that would be accepted as authentic in a court of law, are hereby deemed to be authentic, in addition to matters that satisfy the standard set forth in subsection (a) of this section. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-111

13 Miss. Admin. Code Pt. 6, R. 2.17 Failure Or Refusal To Testify

(a) If a respondent fails to testify in his own behalf or asserts a claim of privilege with respect to any question propounded to him, the hearing examiner may infer therefrom that such testimony or answer would have been adverse to his case. (b) If any person controlling, controlled by, or under common control with, or employed by, or an agent of, a respondent fails to respond to a subpoena, or asserts a claim of privilege with respect to any question propounded to him, the hearing examiner may, taking into account all of the circumstances, infer that such testimony would have been adverse to the respondent. (c) If, on a ground other than the properly invoked privilege against self-incrimination, a respondent fails to respond to a subpoena, or fails or refuses to answer a material question propounded to him, the hearing examiner may deem such failure or refusal to be independent grounds for granting the relief requested by the Executive Director in the complaint with respect to that respondent. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. §§ 75-76-109, 75-76-111

13 Miss. Admin. Code Pt. 6, R. 2.18 Amended Or Supplemental Pleadings

(a) Upon motion of a party made before submission of the case for decision, the hearing examiner may permit the filing of an amended or supplemental complaint or answer, including amended or supplemental pleadings that conform to the evidence presented at the hearing. (b) If such motion is granted, all parties shall be permitted to introduce additional evidence with respect to any new matter contained in such amended or supplemental pleadings. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-115

13 Miss. Admin. Code Pt. 6, R. 2.19 Motions

(a) All motions shall be in writing, unless made during a hearing. (b) A motion shall state with particularity the grounds therefore, shall be supported by a memorandum of points and authorities, and shall set forth the relief or order sought. (c) Every written motion other than one which may be considered ex parte shall be filed with the hearing examiner and served by the moving party upon the adverse party or as the hearing examiner directs. (d) An opposing party shall have ten (10) calendar days after service of the motion within which to file and serve a memorandum of points and authorities in opposition to the motion. (e) The moving party shall have five (5) calendar days after service of the opposing memorandum to serve and file a reply memorandum of points and authorities if he so desires. (f) If a motion or opposition is served by mail, three (3) calendar days shall be added to the time periods specified herein for response. (g) The failure of a moving party to file a memorandum of points and authorities in support of a motion shall constitute consent to the denial of the motion. The failure of an opposing party to file a memorandum of points and authorities in opposition to any motion shall constitute consent to the granting of the motion. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-119

13 Miss. Admin. Code Pt. 6, R. 2.20 Continuances

Continuances will not be granted except for good cause shown. A motion to continue a hearing must be made at least ten (10) calendar days prior to the hearing date. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-119

13 Miss. Admin. Code Pt. 6, R. 2.21 Defaults

Failure of a respondent to file an answer to the complaint or to request a hearing, or to appear personally at a hearing on the merits without having obtained a waiver of appearance, shall constitute an admission of all matters and facts contained in the complaint filed with respect to such respondent, and shall be deemed a waiver of the right to an evidentiary hearing. In such cases the hearing examiner may take action based upon such admission or upon any other evidence, including affidavits, and without any further notices whatever to the respondent. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-107

13 Miss. Admin. Code Pt. 6, R. 2.22 Recommendation Of The Hearing Examiner And Decision Of The Commission

All findings of fact made by the hearing examiner or the Commission in disciplinary actions

shall be based upon the preponderance of the evidence. (Adopted: 09/25/1991.)

History

• Source: Miss. Code Ann. § 75-76-119

Part 7 Part 7: Internal Controls

Chapter 1 DEFINITIONS

13 Miss. Admin. Code Pt. 7, R. 1.1 Definitions In General

The following terms as used in the Mississippi Gaming Commission Regulations for Gaming Establishments will have these meanings: (a) “Baccarat Commission” means: 1. A fee assessed by a licensee on cash paid out as a loss to a patron at baccarat to modify the odds of the game; or 2. A rate or fee charged by a licensee for the right to participate in a baccarat game. (Adopted: 09/23/1999.) (b) "Business year" means the annual period used by a licensee for internal accounting purposes. (c) "Card game" means a game in which the licensee is not party to wagers and from which the licensee receives compensation in the form of a rake-off, a time buy-in, or other fee or payment from a player for the privilege of playing, and includes poker, bridge, whist, solo and panguingui and bourre. (d) "Card game drop box" means a locked container marked with a permanent number corresponding to the card table. The container shall be locked to the card table and shall be separately keyed from the container itself. (e) "Credit instrument" means a writing which evidences a gaming debt owed to a person who holds a license at the time the debt is created, and includes any writing taken in consideration, consolidation, redemption or payment of a prior credit instrument. (f) "Currency Acceptor Box" means a locked container securely attached to the gaming device for the purpose of collecting currency, wagering vouchers, and coupons. (g) "Drop" means: 1. For table games, the total amount of currency, chips and credit instruments contained in the drop boxes. 2. For slot machines, the total amount of currency and wagering vouchers removed from the drop boxes or for cashless slot machines, the amounts deducted from a player's slot account as a result of slot machine play. (h) "Drop box" means: 1. For table games, a locked container permanently marked with the game, shift, and a number corresponding to a permanent number on the table. All markings must be clearly visible from a distance of at least twenty feet. The container must be locked to the table, separately keyed from the container itself. All currency exchanged for chips or tokens or credit instruments at the table and all other items or documents pertaining to transactions at the table must be put into the container. 2. For slot machines, a container in a locked portion of the machine or its cabinet used to collect currency and wagering vouchers. (i) Unless otherwise specified, "Executive Director" means the Executive Director of the Mississippi Gaming Commission or his designee. (j) "Game" or "gambling game" means any banking or percentage game played with cards, with dice or with any mechanical, electromechanical or electronic device or machine for

money, property, checks, credit or any representative of value, including, without limiting the generality of the foregoing, faro, monte, roulette, keno, fan-tan, twenty-one, blackjack, seven-and-a-half, big injun, klondike, craps, poker, chuck-a-luck (dai shu), wheel of fortune, chemin de fer, baccarat, pai gow, beat the banker, paguingui, slot machine, or any other game or device approved by the Mississippi Gaming Commission. However, "game" or "gambling game" shall not include: 1. bingo games or raffles which are held pursuant to the provisions of Miss Code Section 97-33-51; 2. games, devices or machines designed and manufactured for bona fide amusement purposes which, as a result of the insertion of coins, tokens or tickets, award prizes based more upon the skill of the player rather than upon the element of chance, if: i. the amount of consideration required to play the game or operate the device or machine is fixed in an unvarying amount and cannot be increased or decreased to vary the potential prize, and; ii. the amount of consideration required to play the game or operate the device or machine is not more than $0.25, and; iii. a prize of some value or a token or ticket redeemable toward a prize is awarded on each play of the game or operation of the device or machine, and; iv. prizes are limited to non-cash merchandise, prizes, toys, or novelties, and; v. the maximum value of any potential prize earned on a single play of the game or operation of the device or machine has a wholesale value not exceeding five dollars ($5.00), and; vi. the game, device or machine is not classified by the United States government as requiring a federal gaming stamp under applicable provisions of the Internal Revenue Code; and 3. amusement skill devices or machines, if: i. prizes are limited to non-cash merchandise, toys or novelties; and ii. the element of skill is a determinate in the awarding of any prize; and iii. the player, on any single play of the device or machine, may not be awarded or become entitled to any prize with a wholesale value of more than $10.00; and iv. the amount of consideration required to operate the device or machine one time is fixed in an unvarying amount not to exceed $1.00; and v. there is no banking mechanism or automatic percentaging mechanism that determines whether a player wins or loses with any play of the device or machine. “Skill” for purposes of this Regulation VII. A. 10. means that a player’s experience, precision, dexterity or ability to use his or her knowledge enables him or her to obtain more frequent rewards or prizes than those obtained by another less experienced, precise, dexterous or knowledgeable player. (k) "Jackpot payout" means: 1. Currency, tokens, credit to a player's slot account, and the actual cost to the licensee of personal property, other than travel expenses, food, refreshments, lodging, or services, distributed to a slot machine player as the result of a legitimate winning wager; and 2. Cash paid directly to an independent financial institution by a licensee for the purchase of an annuity designed to pay a player's winnings over several years. (l) “Override” means manual manipulation of the computerized system to generate a jackpot

payout or fill slip by inputting or changing the dollar amount. (m) “Periodic Compliance Investigation” means an Investigation conducted for the purpose of determining a licensee’s ability to maintain compliance with the Mississippi Gaming Control Act and the regulations promulgated thereunder, including, but not limited to, internal controls for gaming establishments. (n) “Signature” means: An individual’s signature as recorded on their signature card and a legible unique identification number (i.e. work permit number, or some uniquely generated number issued by the property in order to ensure that duplicate employee numbers are not utilized by employees) assigned by the licensee. (o) "Statistical drop" means the dollar amount of chips or tokens purchased at a table by a patron with currency or credit instruments. (p) "Statistical win" means the dollar amount won by the licensee through table play. (q) “Supplemental Jackpot Payout Procedures” means a jackpot payout disbursed by the Slot Attendant or Slot Supervisor to a patron for a non-taxable jackpot from an imprest bank that was issued from the casino cage. (r) “Wagering Voucher (“Voucher”)” means: An encoded credit voucher, produced by a printer inside of a slot machine that is interfaced to a cashless wagering system. (s) “Verifier” means: 1. For a jackpot payout or other payout, a Slot Attendant, Slot Supervisor, or Slot Manager other than the initiator of the jackpot payout slip who must physically verify the payout to a patron. (t) "Wager" means a sum of money or thing of value risked on an uncertain occurrence.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 7, R. 2.1 Authority

The Mississippi Gaming Commission, or its designee, will have authority: (a) To conduct periodic audits or reviews of the books and records of licensees; (b) To review the accounting methods and procedures used by licensees; (c) To review and observe methods and procedures used by licensees to count and handle cash, chips, tokens, negotiable instruments, and credit instruments; (d) To examine the licensees' records and procedures in extending credit, and to confirm with gaming patrons the existence of an amount of debt and any settlement thereof; (e) To examine and review and require modifications of licensees' internal control procedures; (f) To examine all accounting and bookkeeping records and ledger accounts of the licensee or a person controlling, controlled by, or under common control with the licensee; (g) To examine the books and records of any licensee when conditions indicate the need for such action; and (h) To investigate each licensee's compliance with the Gaming Control Act and other regulations as it relates to internal controls or auditing procedures.

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 3 ACCOUNTING RECORDS

13 Miss. Admin. Code Pt. 7, R. 3.1 Record Keeping of Licensee

(a) Each licensee, in such manner as the Executive Director may approve or require, shall keep accurate, complete, legible, and permanent records of all transactions pertaining to gaming. Each licensee that keeps permanent digital records shall provide the State Gaming Commission, upon its request, with a detailed index. Documents may be scanned or directly stored to unalterable media with the following conditions: 1. The storage media system must contain the exact duplicate of the original document, and any multiple part documents are readily identifiable. In addition, the system must be capable of viewing side by side the original document to any multiple part documents for comparison. 2. Upon request by agents, hardware (terminal, printer, etc.), and software must be provided in order to perform audit procedures. 3. Controls must exist to ensure the accurate reproduction of records, up to and including the printing of stored documents used for audit purposes. 4. At least semi-annually, internal audit personnel must review a sample of the documents on the storage media system to ensure the clarity and completeness of the stored documents, and maintain their findings for at least three years. 5. Each licensee must meet the required standards in a field trial of the storage media system before they rely totally on the system for required record retention. 6. Unless the storage media system is used to perform audit functions, no gaming document, report, slip, form, etc., may be electronically imaged until all required document review and audit procedures have been completed. 7. Once the original gaming records are audited and subsequently electronically imaged, they must be maintained for at least ninety (90) days from the audit of the gaming records. (b) Each licensee shall keep general accounting records on a double entry system of accounting maintaining detailed supporting and subsidiary records, including: 1. Detailed records identifying revenues, expenses, assets, liabilities, and equity for each establishments; 2. Detailed records of all markers, IOU's, returned checks, hold checks, or other similar credit instruments; 3. Individual and statistical game records to reflect statistical drop, statistical win, and the percentage of statistical win to statistical drop by table for each table game, and to reflect statistical drop, statistical win, and the percentage of statistical win to statistical drop for each type of table game, either by each shift or other accounting period approved by the Executive Director, and individual and statistical game records reflecting similar information for all other games; 4. Slot analysis reports which, by each machine, compare actual hold percentages to theoretical hold percentages; 5. The records required by the minimum standards for internal control; 6. Journal entries prepared by the licensee and its independent accountant; and 7. Any other records that the Executive Director specifically requires be maintained. (c) Each licensee shall create and maintain records sufficient to accurately reflect gross income and expenses relating to its gaming operations. (d) Each licensee shall report adjusted gaming revenue totals monthly to the Executive Director. Each licensee shall also report monthly, data related to hotel properties, if applicable, reflecting number of hotel rooms, occupancy rates and average daily rates. The

adjusted gaming revenue and hotel data for each month shall be due by the close of business on the 10th day of the following month. If the 10th falls on a weekend or legal holiday, the information shall be due by close of the next business day. (Adopted: 04/21/1994; Readopted: 04/29/1995.)

History

• Source: Miss. Code Ann. § 75-76-19

Chapter 4 RECORDS OF OWNERSHIP

13 Miss. Admin. Code Pt. 7, R. 4.1 Corporate Licensee Shall Maintain Ownership Records On Premises

(a) Each corporate licensee shall keep on the premises of its gaming establishment the following documents pertaining to the corporation: 1. A certified copy of the articles of incorporation and any amendments; 2. A copy of the bylaws and any amendments; 3. A copy of the certificate issued by the Mississippi Secretary of State authorizing the corporation to transact business in Mississippi; 4. A list of all current and former officers and directors; 5. Minutes of all meetings of the stockholder; 6. Minutes of all meetings of the directors; 7. A list of all stockholders listing each stockholder's name, address, the number of shares held, and the date the shares were acquired; 8. The stock certificate ledger; 9. A record of all transfers of the corporation's stock; and 10. A record of amounts paid to the corporation for issuance of stock and other capital contributions. (b) Each partnership licensee shall keep on the premises of its gaming establishment the following documents pertaining to the partnership: 1. A copy of the partnership agreement and, if applicable, the certificate of limited partnership; 2. A list of the partners, including their names, addresses, the percentage of interest head by each, the amount and date of capital contribution of each partner, the date the interest was acquired, and the salary paid by the partnership; and 3. A record of all withdrawals of partnership funds or assets.(c). Each sole proprietorship licensee shall keep on the premises of its gaming establishment a schedule showing the name and address of the proprietor and the amount and date of the proprietor's original investment and of any additions and withdrawals. (Adopted: 04/21/1994; Readopted: 04/29/1995.)

History

• Source: Miss. Code Ann. § 75-76-27

13 Miss. Admin. Code Pt. 7, R. 5.1 Retention of Financial Records and Submission to Audits

(a) Each licensee shall prepare financial statements covering all financial activities of the licensee's establishments for each business year. If the licensee or a person controlling, controlled by, or under common control with the licensee owns or operates room, food, or beverage facilities, the financial statement must cover those operations as well as gaming operations. Licensees shall submit the financial statements to the State Gaming

Commission not later than three months following the end of the business year covered by the statement. Each financial statement must be signed by the licensee who thereby attests to the completeness and accuracy of the statement. In the event of a license termination, change in the business entity, or a change in the percentage of ownership of more than twenty percent, the licensee or former licensee shall, not later than three months after the event, submit to the Commission a financial statement covering the period since the period covered by the previous financial statement. (b) Each licensee shall prepare all financial statements utilizing a chart of accounts recognized by generally accepted accounting principles. (c) Each licensee shall furnish to the Executive Director, upon written request, statistical and financial data for the purpose of compiling, evaluating, and disseminating financial information regarding the economics and trends within the gaming industry. (d) Each licensee must submit an audit report of its financial statements to the State Gaming Commission each year. This audit must be performed by an independent accountant who holds a permit to practice public accounting in the State of Mississippi. The independent accountant, through the licensee, must submit an audit report which expresses an unqualified or qualified opinion, or disclaim an opinion on the statements taken as a whole in accordance with standards for the accounting profession established by rules and regulations of the Mississippi State Board of Public Accountancy. The preparation of statement without audit does not constitute compliance. The examination and audit must disclose whether the accounts, records and control procedures maintained by the licensee are as required by the regulations promulgated by the State Gaming Commission. (e) The licensee shall submit to the State Gaming Commission its audited statements no later than three months after the last day of the licensee's business year. If the license of a licensee is terminated within three months of a period covered by a audit, the licensee may submit compiled statements in lieu of the additional audited statement for the licensee's final period of business. (f) If a licensee changes its business year, the licensee shall prepare and submit to the State Gaming Commission audited financial statements covering the period from the end of the previous business year to the beginning of the new business year no later than three months from the end of such period. (g) All reports which directly relate to the independent accountant's examination of the licensee's financial statements must be submitted within three months after the end of the licensee's business year. (h) The Executive Director may request additional information and documents from either the licensee or the licensee's independent accountant, through the licensee, regarding the financial statements or the services performed by the accountant. (i) The licensee is responsible for the payment of all costs and fees generated by any audit required by the Commission. Failure to pay such costs and fees may result in revocation of the license. (Adopted: 04/21/1994; Readopted: 04/29/1995.)

History

• Source: Miss. Code Ann. §§ 75-76-27, 75-76-49

13 Miss. Admin. Code Pt. 7, R. 5.2 Retention of Records

Each licensee shall provide the State Gaming Commission, upon its request, with the records

required to be maintained by these regulations. Unless the Executive Director approves or requires otherwise in writing, each licensee shall retain all such records within Mississippi for at least three years after they are made. However, slot wagering instruments must only be maintained for a minimum of 90 days if the following conditions apply: (a) All information on the wagering instrument is contained on a separate system generated report and kept with the daily audit paperwork; and (b) The wagering instruments do not contain the signature of the verifier, or other evidence of internal control procedures having been performed. (Adopted: 04/21/1994; Readopted: 04/29/1995; Amended: 12/18/1997; Amended: 09/15/2004; Amended: 06/15/2006.)

History

• Source: Miss. Code Ann. § 75-76-35

13 Miss. Admin. Code Pt. 7, R. 5.3 Computation Of Gross Revenues

Gross revenue includes cash received as winnings, cash received for credit extended to a patron for purposes of gaming, and compensation received for conducting any game in which the licensee is not party to a wager, less cash paid out as losses to patrons or amounts paid to purchase annuities to fund losses paid to patrons over several years by independent financial institutions. (a) For each table game, gross revenue equals the closing bankroll plus credit slips for cash, chips, or tokens returned to the casino cage, plus drop, less opening bankroll and fills to the table. (b) For each slot machine, gross revenue equals drop less jackpot payouts, and, if the licensee retains detailed documentation supporting the deduction, the actual cost to the licensee of any personal property (other than costs of travel, food, lodging, services, food and beverages) provided for or distributed to a patron as winnings. (c) For each counter game, gross revenue equals the money accepted by the licensee on events or games that occur during the month or will occur in subsequent months less money paid out during the month to patrons on winning wagers; or the money accepted by the licensee on events or games that occur during the month plus money, not previously included in gross revenue, that was accepted by the licensee in previous months on events or games occurring in the month, less money paid out during the month to patrons on winning wagers. (d) For each card game and any other game in which the licensee is not a party to a wager, gross revenue equals all money received by the licensee as compensation for conducting the game. (e) A licensee shall not include either shill win or shill loss in gross revenue computations. (f) A licensee shall not exclude money paid out on wagers that are knowingly accepted by the licensee in violation of Gaming Control Act or the regulations of the Mississippi Gaming Commission from gross revenue. (g) If in any month the amount of gross revenue is less than zero, the licensee may deduct the excess in the succeeding months, until the loss is fully offset against gross revenue. (h) Counterfeit money or tokens, foreign currency received in gaming devices, and cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed, are not included in gross revenue. Any of the above items which were previously excluded from gross revenue, but were reimbursed at a later date, must be included in the next month's gross revenue license fee return. (i) Cash received as entry fees for contests or tournaments in which the patrons compete for

prizes are not included in gross revenue, nor are cash or the value of noncash prizes awarded to patrons in a contest or tournament considered losses. (j) All revenue received from any game or gaming device which is leased for operation on the premises of the licensee-owner to another person other than the owner, or which is located in an area on such premises which is leased by the licensee-owner to any such person, must be included as part of the gross revenue of the licensee-owner. (k) Any prizes, premiums, drawings, benefits or tickets which are redeemable for money, merchandise or other promotional allowance may only be deducted as losses when the award is a direct result of slot machine play and when the points or credits accumulated are determined by coin out. The actual cost to the licensee of any merchandise awarded to the patron shall be the basis of the deduction for any non-cash items. Accrued "points" from player tracking promotions may not be deducted but only may be deducted at such time as the said points are redeemed by the patron. All types of promotional play at a table game must be included in the computation of gross revenue. (l) Any portion of the face value of any chip, token or other representative of value won by a licensee from a patron for which the licensee can demonstrate that it or its affiliate has not received cash should not be included in the computation of gross gaming revenue. (m) Uncollected baccarat commissions should not be included in the computation of gross gaming revenue provided that proper documentation, as approved by the Executive Director of the Mississippi Gaming Commission, is maintained. (n) If a licensee provides periodic payments to satisfy a payout resulting from a wager, the initial installment payment when paid and the actual cost of the payment plan approved pursuant to Part 3 Rule 1.9 and funded by the licensee may be deducted from winnings. For any funding method which merely guarantees the licensee’s performance and under which the licensee makes payments directly out of cash flow (e.g., irrevocable letters of credit, surety bonds, or other similar methods), the licensee may only deduct such payments when paid to the patron. A licensee may deduct from winnings its pro rata share of a wide area progressive linked system payout, under the provisions of its contract with the operator of the system, and in accordance with the requirements stated herein. (Adopted: 04/21/1994; Readopted: 04/29/1995; Amended: 09/23/1999; Amended: 09/21/2000.)

History

• Source: Miss. Code Ann. §§ 75-76-45, 75-76-47, 75-76-49

Chapter 6 INVESTIGATIVE COSTS, FINES OR OTHER ASSESSMENTS

13 Miss. Admin. Code Pt. 7, R. 6.1 Cost, Fines Or Other Assessments Associated With Investigations

The applicant for a state gaming license is required to pay all or any part of the fees and costs of investigation of such applicant as may be determined by the Executive Director of the Gaming Commission. These costs shall be made payable to the Mississippi Gaming Commission within thirty days of written notice. Any fines or other assessments levied by the Mississippi Gaming Commission or the Executive Director will be considered due and payable thirty days after final determination of such fines or assessments and shall be made to the State Tax Commission. The investigative fee levied by the Mississippi Gaming Commission will be as follows: for those gaming licensees with 1500 or more gaming devices as defined in Section §75-76-5 (m), including slot machines as defined in Section §75-76-5 (ff), the fee will be $300,000.00 per year; for those gaming licensees with 1000 to 1499 gaming devices as defined in Section §75-76-5 (m), including slot machines as defined in Section §75-76-5 (ff), the fee will be $225,000.00 per

year; and for those gaming licensees with less than 1000 gaming devices as defined in Section §75-76-5 (m), including slot machines as defined in Section §75-76-5 (ff), the fee will be $125,000.00 per year. This fee will be in four (4) equal quarterly installments due within thirty (30) days of receipt of the assessment. The number of gaming devices for any licensee for purposes of the assessment will be determined annually based on the average number of gaming devices reported to the Mississippi Gaming Commission during a twelve (12) month period. This fee is only applicable to any person or party issued a gaming license, and any corporation or other entity registered as a holding company or publicly traded corporation of such licensee, and any person or individual required by Commission regulations or otherwise required by the Commission to be found suitable in connection with such licensee or holding company or publicly traded corporation registered in connection with such licensee. The remainder of fees collected in excess of the amount authorized by statute will be credited to the gaming licensees for the following year. The following fees apply to all those not subject to the investigative fee above: (a) Corporate and Investigations fee $100.00/hour plus expenses (b) Gaming laboratory fee $225.00/line item (c) Associated Equipment fee $125.00/hour (d) Work permit application fee $125.00 (e) Work permit rescheduling fee $50.00 (f) Annual report filing fee $150.00/suitability license (g) Junket permit fee $500.00/plus $500.00 investigative fee (h) Inspection/tracking fee $100.00/per machine (i) Instructor Permits $100.00 (j) Work permit replacement fee $10.00 See Miss. Code Ann. §75-76-33. (Adopted: 04/21/1994; Readopted: 04/29/1995; Amended: 04/29/2010.)

History

• Source: Miss. Code Ann. §§ 75-76-5, 75-76-33

Chapter 7 INTERNAL CONTROL

13 Miss. Admin. Code Pt. 7, R. 7.1 Internal Control Procedures

(a) Each licensee shall establish administrative and accounting procedures for the purpose of exercising effective control over the licensee's internal fiscal affairs. Minimum procedures for adoption by each licensee shall include, but are not limited to, and are designed to reasonably ensure that: 1. Assets are safeguarded; 2. Financial records are accurate and reliable; 3. Transactions are performed only in accordance with management's general or specific authorization; 4. Transactions are recorded adequately to maintain accountability for assets; 5. Access to assets is permitted only in accordance with management's specific authorization; 6. Recorded accountability for assets is compared with actual assets at reasonable intervals and appropriate action is taken with respect to any discrepancies; and 7. Functions, duties, and responsibilities are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel. (b) Each licensee and each applicant for a license shall describe its administrative and

accounting procedures in detail in a written system of internal control. Each licensee and applicant for a license shall submit a copy of its written system to the Mississippi Gaming Commission at least six (6) weeks before gaming begins at its establishment. Each written system must include: 1. An organizational chart depicting appropriate segregation of functions and responsibilities; 2. A description of the duties and responsibilities of each position shown on the organizational chart, as well as the names of each key employee by position; 3. A detailed, narrative description of the administrative and accounting procedures designed to satisfy the internal control requirements; 4. A written statement signed by the licensee's chief financial officer and either the licensee's chief executive officer or a licensed owner attesting that the system satisfies the internal control requirements; (c) The licensee may not implement a system of internal control procedures that does not satisfy the stated minimum standards unless the Executive Director, in his sole discretion, determines that the licensee's proposed system satisfies the requirements and approves the system in writing. Within thirty days after a licensee receives notice of the Executive Director's approval of procedures that satisfy the internal control requirements, but that do not satisfy the minimum standards, the licensee shall comply with the approved procedures, amend its written system accordingly, and submit to the Executive Director a copy of the written system as amended and a written description of the variations. (d) Before adding or eliminating a counter game, eliminating all table games, adding any computerized system that affects the proper reporting of gross revenue, adding any computerized system for monitoring slot machines or other games, or any other computerized associated equipment, the licensee must: 1. Amend its accounting and administrative procedures and its written system of internal control to comply with the minimum standards; 2. Submit to the Executive Director a copy of the written system as amended, and a written description of the amendments; 3. Comply with any written requirements imposed by the Executive Director regarding administrative approval of computerized associated equipment; and 4. After paragraphs (a) through (c) have been complied with, implement the procedures and written system as amended. (e) If the Executive Director determines that a licensee's administrative or accounting procedures or its written system does not comply with the requirements of this chapter, the Executive Director shall so notify the licensee in writing. Within thirty days after receiving the notification, the licensee shall amend its procedures and written system accordingly, and shall submit a copy of the written system as amended and a description of any other remedial measures taken. (f) A separate internal audit department (whose primary function is performing internal audit work and who is independent with respect to the departments subject to audit) will be maintained by the licensee. An independent accountant may perform this function in lieu of an internal audit department. For two or more licensees, or a licensee who may have an affiliated company licensed in another jurisdiction, who essentially have common ownership and/or management, a single internal audit department for the combined properties is adequate. The internal audit is required to develop quarterly reports providing details of all exceptions found and subsequent action taken by management to correct.

Management must provide a written response to all exceptions found within 30 days of receiving the report. Internal Audit Such reports will include the written response from management. Documentation (e.g. checklists, programs, work papers and supporting documentation of exceptions, reports, etc.) will be prepared to evidence all internal audit work performed as it relates to these requirements. The quarterly Internal Audit Reports, along with the licensees responses, shall be submitted to the Mississippi Gaming Commission no later than thirty (30) days after the end of the calendar quarter. The results of internal audit work will be reported to the general manager and executive management and/or ownership personnel who are independent of the departments under audit. All material exceptions resulting from internal audit work must be investigated and resolved, with the results of such being documented and retained for three years. At a minimum, the following audits should be performed: 1. At least semiannually: i. Table games - fill and credit procedures, pit credit play procedures, count procedures and the subsequent transfer of funds, the tracing of source documents to summarized documentation, and reconciliation to restricted copies. ii. Slot machines - jackpot payout and slot fill procedures, slot drop, count and subsequent transfer of funds, slot machine case/cabinet access, tracing of source documents to summarized documentation and reconciliation to restricted copies. iii. Key Controls – location, control, and usage of sensitive and restricted keys. iv. System Access v. Racebooks and Sports Pools 2. At least annually: i. Keno department - game write and payout procedures and a review of keno audit procedures. ii. Card games department - card game operation, monetary exchange procedures, shill transactions, drop and count procedures. iii. All other revenue sources - procedures for initial recording of other revenue, cash turn-in procedures and accounting procedures. iv. Cage and credit procedures - all cage, credit and collection procedures, and the reconciliation of trial balances to physical instruments on a sample basis. v. Cage accountability reconciled to the general ledger. vi. Bankroll Verification vii. Junkets viii. Responsible Gaming ix. Players Club and Player Tracking – procedures surrounding the earning, use, and protection of points, cash, promotional play, etc., x. Controls surrounding promotions and tournaments, surveillance, information systems and access, purchasing (associated with gaming) accounts payable (associated with gaming). 3. If changes are proposed to the approved system of internal controls, they must be submitted to the Gaming Commission prior to the intended implementation date and may not be implemented without written approval of the Executive Director. (Adopted: 04/21/1994; Readopted: 04/29/1995; Amended: 12/18/1997; Amended: 02/24/1998; Amended: 06/15/2006.)

History

• Source: Miss. Code Ann. §§ 75-76-45, 75-76-47, 75-76-49

Chapter 8 AUTHORIZED PERSONNEL

13 Miss. Admin. Code Pt. 7, R. 8.1 Personnel Authorized To Have Cage Access

(a) Each licensee shall place on file with the Commission the names of all persons authorized to enter the cashier's cage (“cage access list”), those who possess the combination or keys to the locks securing the entrance to the cage and those who possess the ability to operate the alarm systems. Cage access lists shall include individuals who have interest in the cage area. Each licensee shall also submit a list (“drop/count access list”) to the Commission for approval of employees authorized to participate in the drop and count and those employees who are authorized to be in the count rooms during the count. Each list must have the name of the individual, their job title or company and gaming work permit number. The cage and drop/count access lists shall include those persons, if any, living in the same household, who hold an interest in the licensee and shall indicate what relationship by blood, or marriage, if any, exists between any person on the lists and any other person on such list or any interest holder or employee of the gaming establishment. Drop/count access lists shall only include individuals who have a specific daily job interest in this area. Specific daily job interest includes the count team members, their immediate supervisors and vendors who service counting machines. (b) Each licensee shall submit a revised list to the Commission within ten days of any change to the cage access list. Surveillance must monitor and record all activities within the cage. Secondary notification is required to the Commission for all persons required to enter the cage and are not listed on the cage access list. At a minimum, a cage employee who possesses a valid work permit must escort all persons who enter the cage and are not on the cage access list. In addition, the Surveillance Department must be notified prior to entry. (c) Each licensee shall submit a revised list in advance for approval to the Commission of any changes to the drop/count access lists prior to the individual performing the drop and/or entering the count room. (d) Surveillance must monitor and record all activities within the count room. During the count process, personnel are not allowed to exit or enter the count room except for emergencies or scheduled breaks. At all times a Security escort will be required for vendors accessing the count room. Access to the count room during the count is restricted to individuals on the drop/count access list. The licensee is required to provide secondary notification to the Commission of access by vendors who are listed on the drop/count room access list. For access during or outside count times into the count rooms, the licensee shall at all times be in compliance with the following requirements: 1. Access into the count rooms by any individual requires a valid Commission work permit (excluding MGC and DOR personnel). Representatives of the MGC and DOR must present identification before entering the count rooms. 2. A Count Room Access Request Form must be submitted to the Commission for prior approval for any individuals not listed on the drop/count access list. All persons entering the count room during the counting of gaming revenue must wear a one piece pocketless garment with openings only for the arms, feet and neck. Unless otherwise instructed by the Commission, Security escort must be provided for access into the count rooms. 3. When the counting device requires maintenance during the count, all gaming

revenues must be secured until the vendor has finished the maintenance on the counting device and exited the count room. 4. Only count team members may handle gaming revenues. (Adopted: 04/21/1994; Readopted: 04/29/1995; Amended: 06/15/2006; Amended 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-51

Chapter 9 HANDLING OF CASH AND CHIPS

13 Miss. Admin. Code Pt. 7, R. 9.1 Cash And Chips

(a) All games shall be conducted only with the use of chips or approved tokens or other instrumentalities which have been approved by the Executive Director, or with lawful currency or coinage of the United States of America. All table game payout by licensees shall be made in the form of chips, approved tokens, and/or coinage only. Each employee in gaming operations, owner or licensee who receives currency of the United States (other than tips or gratuities) from a patron in the gaming area of a gaming establishment must promptly place the currency in the locked box in the table or, in the case of a cashier, in the appropriate place in the cashiers' cage. For those games which do not have a locked box, the cash or chips shall be placed in an appropriate place on the table, in the cash register or other repository which has been approved by the Executive Director. (b) No employee, licensee or owner of any gaming establishment may cash for another person the chips of that gaming establishment without immediately returning to the patron the cash, IOU, check, or marker redeemed with the chips. (c) All chips shall be the standard colors commonly accepted for each denomination within the industry. Those colors are: One-dollar ($1.00), white; five-dollar ($5.00), red; twenty- five ($25.00), green; one hundred dollars ($100.00), black; and five-hundred-dollar ($500.00) chips will be purple. (d) All tips and gratuities in denominations of $5.00 or greater shall be immediately deposited into a locked box reserved for that purpose that is attached to the gaming table, change cart, change belt, wall or other object, as approved by the Commission. Tips and gratuities in denominations less than $5.00 may be maintained next to the tip and gratuity locked box until the time when the sum of the tips and gratuities is equal to $5.00. At which point the tips and gratuities will be converted to $5.00 denomination and immediately deposited into the locked box reserved for that purpose. If non-value chips are received as a gratuity, a supervisor shall witness the immediate conversion of non-value chips to value chips. (Adopted: 04/21/1994; Readopted: 04/29/1995; Amended: 06/15/2006.)

History

• Source: Miss. Code Ann. § 75-76-101

13 Miss. Admin. Code Pt. 7, R. 9.2 General Drop And Count Procedures

(a) The Executive Director may, at his discretion, have an agent present at the count. Drop boxes must be removed and counted on a schedule approved by the Commission. Emergency drops will require a secondary written notification to the Commission and permanent drop schedule changes will require prior approval. The slot machine currency acceptor box count and table games drop box count must be done at separate times. The licensee must obtain written approval in advance of any permanent change to the designated drop and count. The licensee must provide secondary notification of all non-

permanent changes to the drop and count. Surveillance is required to record in writing all exceptions noted in their observation of the drop and count. Such exceptions shall be notated by the surveillance personnel’s unique employee number and a copy sent to the Accounting department and the Commission for review and determination. (b) At least two persons shall perform the drop and count functions, one of whom are independent of the generation of revenue being counted. All personnel must wear a one piece pocketless garment with openings only for the arms, feet and neck. If other equipment such as back braces, gloves, knee pads, etc. are used by the drop and/or count team members during the drop and count procedures, the licensee must have the same degree of controls on these items as the one piece garment. One piece garments and any other equipment used during the drop and/or count must be removed and inspected by the licensee when exiting the count room for breaks and at the end of each count. Each licensee must have included in their written system of internal control procedures for subjecting employees to a metal detection system and inspection for concealed funds when exiting the count rooms. (c) Each casino shall have rooms specifically designated for counting the contents of drop boxes, which shall be known as the count rooms. The count rooms shall be designed and constructed to provide maximum security for materials housed in and the activities conducted therein. Materials and/or supplies housed in the count rooms must be removed from boxes and placed on open shelves. The shelves must be placed in an area that allows the greatest amount of visibility for Surveillance. Located within the count room shall be a table constructed of clear glass or similar material for the emptying, counting and recording of the contents of drop boxes, which shall be known as the “count table”. There will be no transfer of chips, tokens, wagering vouchers, coupons or currency in or out of the count rooms until all count procedures are complete and the cage has taken possession of the drop into accountability. Cleaning and normal maintenance of the count rooms shall not be conducted until the counts have been completed and all funds cleared from the count rooms. The count begins when the count team enters the count room and ends when a member of the cage/vault department signs for the funds accepting accountability. Further, nongaming revenues, such as restaurant or bar receipts, must not be counted coinciding with the count of gaming revenue. Persons shall not: 1. Carry a pocketbook or other personal items into the count rooms. 2. Remove their hands from or return them to a position on or above the count table unless the backs and palms of the hands are first held straight out and exposed to the view of other members of the count team and the closed circuit television camera. (d) Count team members must be prepared to perform a manual count of the drop in case of currency counting malfunctions. This manual process should be included in the written system of internal controls.

History

• Source: Miss. Code Ann. §§ 75-76-5, 75-76-33, 75-76-45

13 Miss. Admin. Code Pt. 7, R. 9.3 Table Games and Slot Drop Procedures

The drop supervisor or Security must notify Surveillance when the drop is to begin in order that Surveillance may monitor the activities. Surveillance and Security must monitor at all times the removal and placement of the drop boxes from the slot machines onto the drop carts. Surveillance and the Table Games Manager must monitor at all times the removal and placement of drop boxes from the table games onto the drop carts and the transportation of the

drop cart. Each drop box removed must be tagged with its respective machine or game number if the drop boxes are not permanently marked. When funds are exposed during the currency acceptor box drop, the funds along with the currency acceptor box must be placed in a clear plastic bag that will be sealed and labeled. The bag will be placed on the drop cart; and Security must notify surveillance when this occurs. The drop cart contents are transported directly to the area designated for the counting of such monies. If more than one trip is required to remove the drop boxes, the filled carts will be securely locked in the rooms designated for counting or secured in another equivalent manner. There must be a locked cover on any carts in which the drop route includes passage through exposed areas (e.g., out of doors, etc.). There will not be any unsecured funds in the count rooms when a new drop is entering the count room.

History

• Source: Miss. Code Ann. §§ 75-76-5, 75-76-33, 75-76-45

13 Miss. Admin. Code Pt. 7, R. 9.4 Table Games And Slot Currency Acceptor Count Procedures

The work schedules of count personnel must be regularly rotated and their functions regularly rotated. Rotation shall be such that the count team is not consistently the same two individuals for more than four days per week. All doors are to be locked and personnel are not allowed to exit or enter the count room unless all boxes and monies have been secured. Licensees must include in their written system of internal control procedures for securing the funds when entering and exiting the count room. (a) Procedures and requirements for conducting the count shall be as follows: 1. If a currency counting machine is used, immediately prior to the drop box count it shall be tested prior to the actual count to ascertain if the metering device is working properly. The test must be documented, signed by at least two count team members performing the test and forwarded to accounting with other count documentation. 2. As each drop box is placed on the count table to be individually counted, one count team member shall verbalize in a tone of voice to be heard by all persons present the type of game, table number and shift (if applicable), for each table game drop box and the slot machine number for each currency acceptor box. 3. The contents of each drop box shall be emptied on the count table. Immediately after the contents of a drop box are emptied onto the count table, the inside of the drop box shall be examined by at least one (1) other count team member to ascertain by stating “empty” that all contents of the drop box have been removed. In addition, the empty drop box shall be positioned by a count team member in such a way that Surveillance may verify the drop box is empty, after which the drop box shall be locked and placed in the storage area for empty drop boxes. 4. The contents shall be separated into stacks on the count table by denomination of currency and type of form (wagering vouchers, coupons, chips etc.), record or document. An approved counting device can be used to automatically sort currency by denomination, wagering vouchers, and coupons. 5. Each denomination of currency, wagering vouchers and coupons shall be counted separately by one count team member. The currency, wagering vouchers and coupons shall be counted by a second count team member who is unaware of the result of the original count and who, after completing this count, shall confirm the accuracy of the total reached by the first count team member. If the licensee utilizes a machine that counts and automatically records the amount of currency, wagering vouchers,

and coupons and the Commission is satisfied with the accuracy of the machine, an aggregate count may be performed of all currency, wagering vouchers, and coupons collected in substitution of the second count. 6. As the contents of each table game drop box are counted, one count team member shall record on the count documentation, in ink or by computer, the type of game, table number, shift (if applicable), and the following information: i. The amount of all denominations of currency counted, ii. The amount of each denomination of currency counted, iii. The amount of coins, chips, and tokens counted, iv. The total amount counted, v. The amount of the opener, vi. The amount of the closer, vii. The serial number and amount of each fill, viii. The amount of all fills, ix. The serial number and amount of each credit, x. The amount of all credits, xi. The win or loss, and xii. The amount of coupons authorizing chip purchases. 7. Notwithstanding the requirements of Rule 9.4(a), if the licensee's system of internal controls provide for the recording on the master game report or supporting documents of fills, credits, and table inventory slips prior to commencement of the count, a count team member shall compare for agreement the totals of the amounts recorded thereon to the fills, credits, and table inventory slips removed from the drop boxes. 8. As the contents of each slot machine drop box are counted, one count team member shall record on the count documentation, in ink or by computer, the machine number and the following information: i. The amount of each denomination of currency counted; ii. The amount of all denominations of currency counted; iii. The amount of wagering vouchers and coupons counted; and iv. The total amount counted. 9. If the licensee's written system of internal controls provide for the count team functions to be conducted only by Accounting department employees with segregated functions, they shall perform all other counting, recording and comparing duties herein. 10. After preparation of the count documentation, each count team member shall attest to the accuracy of the documentation by signature. (b) Procedures and requirements at the conclusion of the count shall be as follows: 1. All currency and chips removed from the drop boxes shall be immediately presented in the count room by the count team to the cashier. Prior to having access to the information recorded on the count documentation and in the presence of the count team, the cashier shall recount either manually or mechanically the currency and chips received and attest by signature on the count documentation and transfer slip the amount received. The currency and chips are transferred to a secure area after reconciliation of the count. 2. After all signatures have been obtained and the cashier has verified the amount received, all count and supporting documentation shall be placed in a clear sealed

audit bag and be delivered by a count team member, to the Accounting department for audit and verification. (Amended: 03/15/2007.)

History

• Source: Miss. Code Ann. §§ 75-76-5, 75-76-33, 75-76-45

Chapter 10 TABLE GAMES

13 Miss. Admin. Code Pt. 7, R. 10.1 Minimum Standards of Internal Control For Table Games

The Mississippi Gaming Control Act of 1990 requires the Gaming Commission to prescribe minimum procedures for adoption by each licensee in order to exercise effective control over the internal fiscal affairs of the licensee. The following sections of this regulation apply to all table games.

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 7, R. 10.2 Fill And Credit Slips

All fills slips and credit slips shall be serially numbered forms and shall be purchased in triplicate in a continuous series utilizing the property identification logo, so that no gaming establishment may ever utilize the same documents. Only one series of each type may be used at a time in any establishment. This series must be inserted in a consecutive order in a locked machine that will permit the original and duplicate to be utilized by the establishment in accordance with the detailed rules for each type of slip set forth and will only permit the third copy to be retained intact in a continuous unbroken form by a member of the accounting department. The third series, after use, must not be available to personnel in the gaming operations of an establishment, or cashier's cage, who have access to the original and duplicate of the series, and must be retained in a secure place on the premises. All series numbers that are received by the establishment must be accounted for. All void slips shall be marked "VOID" and shall require the signatures and unique identification number of the two persons voiding the slip. Information on the fill or credit slip must include the denomination of gaming chips to be distributed to the gaming tables or being returned, the total amount of each denomination of gaming chips, the game and table number to which the gaming chips are to be distributed or returned, and the time and date of the fill or credit. For licensees in which fills or credits are computer prepared, each series shall be a two (2) part form and shall be inserted in a printer that will simultaneously print an original and a duplicate and store, in machine readable form, all information printed on the original and duplicate. The stored data shall not be susceptible to change or removal by any personnel after preparation.

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 7, R. 10.3 Procedure For Distributing Gaming Chips To Game Tables (Fills)

A request for fill shall be prepared by a table games supervisor. The request shall be a two-part form, and access to the request shall, prior to use be restricted to authorized users. All fill slips requesting chips or money must be prepared at the time a fill is made and must be signed by the cashier or his assistant and by the casino supervisor or his assistant by using the full name in a legible manner. The original fill slip and the fill shall then be hand carried from the cashier's cage to the table requesting the fill by security or another employee whose function is to transport fills.

Persons designated to transport fills may not be employed in the cage or table games areas. The dealer or boxman must count the amount of the fill and sign the form attesting that the table has received the amount of fill indicated. The person who carried the fill to the table must also certify that the fill was deposited on the table by signing his full name in a legible manner. The original fill slip shall then be deposited into the drop box on the table by the dealer, where it will appear in the soft count room with the cash receipts for the shift. The duplicate fill slip shall remain in sequence in the series at the cashier's cage, or location where they are kept, to provide a means of reconciliation of fill slips by the gaming establishment. This duplicate cannot be accessible to pit personnel.

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 7, R. 10.4 Procedure For Distributing Gaming Chips To Game Tables (Credits)

A request for credit shall be prepared by a casino supervisor to authorize the preparation of a credit slip for the removal of gaming chips from gaming tables to the cashier's cage. The access to this form shall, prior to use, be restricted to casino supervisors. The signature of the casino supervisor or his assistant must be on this form using the full name in a legible manner. A credit slip shall be prepared to authorize the removal of gaming chips from gaming tables to the cashier's cage. The signatures of the casino supervisor or his assistant, and dealer or boxman assigned to the gaming table from which the gaming chips are to be removed, must be on the original credit slip using the full name in a legible manner along with work permit number. The credit slip must be signed by the security personnel, or employee responsible for delivering the credit to the cage, at the time the funds are exchanged. The original credit slip, along with the gaming chips to be removed from the table, shall be hand carried by security or another person whose function is to transport credits to the cashier's cage. Persons designated to transport credits may not be employed in the cage or table games areas. The cashier must count the amount of the credit and certify by signature that the table has returned the amount of the credit indicated. The person carrying the credit must also sign to certify that the credit was received at the cashier's cage. The duplicate credit slip is to be deposited in the drop box by the dealer where it will appear in the counting room with the cash receipts. The original credit slip shall remain in sequence at the cashier's cage or location where they are kept to provide a means of reconciliation of credit slips for the gaming establishment.

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 7, R. 10.5 Procedure For Closing Gaming Tables

At the end of each day, or after each shift if the drop boxes are collected by shift, or whenever gaming activity at a table is concluded, the gaming chips remaining at the gaming table shall be counted by the dealer or boxman assigned to the gaming table and observed by a casino supervisor, or his assistant, assigned to the gaming table. The gaming chips counted shall be recorded on a table inventory slip by the casino supervisor or his assistant assigned to the gaming table. The table inventory slip shall be a three-part form and on the original copy of the slip ("closer") and the duplicate of the slip ("opener"), the casino supervisor shall record the date and identification of the shift ended, the game and table number, the total value of each denomination of gaming chips remaining at the gaming table, and the total value of all denominations of gaming chips remaining at the gaming table. Signatures attesting to the accuracy of the information recorded on the table inventory slips at the time of the shift's end shall be of the dealer or boxman or outgoing supervisor and the incoming casino supervisor or

his assistant assigned to the gaming table. The original closer shall be deposited by the dealer in the drop box attached to the gaming table immediately prior to the closing of the table, the first copy shall be deposited in the oncoming drop box, and the second copy opener shall be forwarded to the accounting department for later verification. The gaming chips remaining at the table shall be placed in a container which shall then be locked if the table is closed. The accounting department shall be responsible for daily verification of the opener with the closer of the preceding day. Any discrepancy must be immediately reported to the licensee who shall investigate and take any appropriate action. (Adopted: 04/21/1994; Readopted: 04/29/1995; Amended: 09/25/2002; Amended: 01/22/2003; Amended: 06/25/2003; Amended: 06/15/2006.)

History

• Source: Miss. Code Ann. § 75-76-51

Chapter 11 SLOT MACHINES

13 Miss. Admin. Code Pt. 7, R. 11.1 Minimum Standards of Internal Control for Slot Machines

The following sections are the minimum procedures or standards, prescribed by the Executive Director for adoption by each licensee and which apply to slot machines, prescribed in order to exercise effective control over the internal fiscal affairs of the licensee and to assure the accurate calculation of gross revenue. These procedures reflect the minimum required to be adopted by a licensee. Any variations must be comparable or must exceed the following criterion. All procedures or changes to approved internal control procedures must be approved by the Executive Director prior to implementation.

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 7, R. 11.2 Jackpot Payout

(a) Whenever a patron wins a jackpot that is not totally and automatically paid directly from the slot machine, a jackpot payout slip shall be prepared. (b) When voiding a jackpot payout, all parts of the slip shall indicate the reason for the void and shall be marked “VOID” diagonally. The signature of the preparer and the Slot Supervisor voiding the slip must also be written diagonally. Voided jackpot payouts must be forwarded to Accounting for retention and accountability. Voided adjustments in the computerized system shall be performed by Accounting. (c) Manual jackpot payouts shall be sequentially pre-numbered forms. Each series of jackpot payout slips shall be a three-part form and shall be inserted in a dispenser that shall be locked. The dispenser will permit an individual slip in the series and its copies to be written upon simultaneously while still in the dispenser and will discharge the original and duplicate while the triplicate remains in the dispenser. The receipt of manual jackpot payouts from the printing company must be recorded in a log, and Accounting must reconcile the log to the purchase invoice. The unused supply of forms will be locked and secured with access limited to Security or Accounting employees. Security or Accounting employees must be responsible for placing and removing the forms in/out of the dispenser. All parts of each series for manual jackpot payouts, used and unused, shall be accounted for by Accounting employees. An electronic process that replicates these procedures may be acceptable. (d) Computer generated jackpot payouts shall be a two-part sequentially numbered form. The

original and its copies are printed simultaneously. All information is stored in a machine-readable form that is not susceptible to change or removal. All parts of each series for computerized jackpot payouts shall be accounted for by Accounting employees. (e) Short pays, regardless of amount, must be paid from a short pay slip. The short pay slip must be completed to include the date, time, machine number, dollar amount of the payout (alpha and numeric), reason, and signature of the Slot Attendant and verifier for such payments.

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 7, R. 11.3 Jackpot Payout Procedures

(a) Payouts for jackpots must be authorized by a Slot Attendant or a Slot Supervisor actually observing the jackpot combination on the machine. (b) The information which shall be included on every jackpot payout slip and in all stored data for each jackpot payout is the: 1. Casino name and location; 2. Number of the slot machine on which the jackpot was registered; 3. Preprinted or concurrently-printed sequential number of the jackpot payout slip; 4. Total amount of the jackpot; 5. Winning combination of reel characters constituting the jackpot or the type of other payout (e.g. cancel credit, short pay, bonus, etc.); 6. Date and time; 7. amount to be paid; 8. Slot booth number, if applicable, from which the amount is to be paid; and 9. Signature lines. (c) All remuneration paid to a patron as a result of winning a jackpot shall be disbursed by the cashier directly to a Slot Attendant or Slot Supervisor who shall transport the winnings directly to the patron. (d) Signature Requirements: 1. Computerized Jackpot Payouts. Signatures, attesting to the accuracy of the information contained on the original and duplicate of the jackpot payout slip, shall be of the Slot Attendant or Slot Supervisor who prepared the payout slip and a cage cashier. A verifier must attest to by signature any Jackpot payouts in excess of $5,000.00. A manager must attest to the payout by signature if the amount of the jackpot is in excess of $25,000.00. The Commission must be notified prior to payments of a jackpot of $250,000.00 or greater. A Manager is defined as a Slot Supervisor, Slot Manager, Slot Director, Casino Shift Manager, Vice President of Slots, Assistant General Manager and/or General Manager. (Amended: 03/15/2007.) Supplemental slot payout procedures may be used for jackpot payouts less than $1,200.00. This procedure will not apply to system override and manual procedures. For supplemental payout procedures where the licensee does not print the jackpot payout slip prior to payment, a payout request slip must be utilized. The payout request slip must contain the same information required on the jackpot payout slip. The payout request slip must be signed by the Slot Attendant and a verifier witnessing the payout. Procedures for replenishment of supplemental jackpot payout funds must

comply with all other requirements of this regulation. Licensees utilizing payout request slips must attach the payout request slip to the duplicate copy of the jackpot payout slip. 2. Override Jackpot Payouts. System overrides must be authorized by a Slot Supervisor or Slot Manager. All override jackpot payout slips shall be marked in a way that identifies the payout as an override. Signatures attesting to the accuracy of the information contained on the original and duplicate of the override payout slip shall be of the Slot Supervisor or Slot Manager who prepared the override payout slip and cage cashier. A verifier witnessing the jackpot payout to the patron must sign the original override jackpot payout slip. 3. Manual Jackpot Payouts. Manual jackpot payout slips must be authorized by a Slot Supervisor or Slot Manager. All manual jackpot payout slips shall have the reason for the manual payout. Signatures attesting to the accuracy of the information contained on the original, duplicate and triplicate copies of the manual jackpot payout slip shall be of the cage cashier who prepared the payout slip and Slot Supervisor or Slot Manager. A verifier witnessing the payout to the patron must sign the original manual jackpot payout slip. (e) The original jackpot payout slip shall be deposited into a locked box only accessible by Accounting. The duplicate jackpot payout slip shall be retained by the cashier for end of shift reconciliation and forwarded to Accounting daily. The triplicate copy of the manual jackpot payout slip will be retained in the locked dispenser to be removed by Accounting or Security personnel.

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 7, R. 11.4 Miscellaneous Slot Requirements

(a) Every licensee shall ensure all gaming devices are accurately communicating all activity and inactivity of the gaming devices with the computer monitoring system. System communication testing shall be performed any time gaming devices are newly installed, converted, upgraded, or moved and any time communications with the computer monitoring system have been interrupted. (b) Slot analysis reports, which compare actual hold to theoretical hold, are prepared on at least a monthly basis by the Accounting department for each slot machine. Any variances +/-4% must be investigated and findings documented. These records must be maintained at least three years and shall provide data on both month-to-date and year-to-date basis. Actual hold is equal to the dollar amount of win divided by the dollar amount of coin-in. Accurate theoretical hold worksheets must be maintained for all slot machines. (c) Before machines are permanently or temporarily removed from the gaming floor, the licensee must obtain prior approval from the Commission for the drop and removal of the slot machines. Records shall be maintained for each slot machine which indicates the date the machine was placed into service, the date the machine was removed from operation, the date the machine was placed back into operation, and any changes in machine numbers and designations. (d) A log shall be maintained inside of each slot machine to record all entries into the cabinet, in addition to a player tracking system that automatically records this information. Information is to include employee’s name, unique employee identification number, date (month, day and year) and reason for entry to the machine. These logs shall be monitored

regularly by the slot managers/supervisors. (e) EPROM duplication may only be performed by a licensed manufacturer or a licensee who has received Commission approval to duplicate EPROMs. The EPROMs of some manufacturers may be protected by federal copyright laws. The licensee should ensure that all applicable laws are complied with when duplicating EPROMs. Slot machines must have the CPU boards locked. (Amended: 03/15/2007.) (f) Access to the master program EPROMs and EPROM duplicator equipment shall be secured in a locked cabinet and the key to the cabinet is maintained under log control at the casino cage or in the electronic key box. Procedures must be developed and implemented for copying from the master game program EPROM to another EPROM, verification of duplicated EPROMs prior to being offered for play, and destruction, as needed, of EPROMs with electrical failures. These procedures must take place in an area that is monitored by surveillance utilizing a PTZ camera. Surveillance will be required to maintain tapes of all active duplicating processes for a period of thirty (30) days. Records must be maintained documenting these procedures. The records must include the following information: 1. Date; 2. Slot machine number in which a duplicated EPROM is placed. Additionally, indicate the slot machine number of the source EPROM when duplicated from an EPROM of another slot machine; 3. Manufacturer; 4. Program number; 5. Personnel involved; 6. Reason for duplication; and 7. Disposition of any permanently removed EPROM. (g) For duplicated EPROMs, labels must be printed containing all original information from the manufacturer, in addition to a unique designation that the EPROM is a duplicate.

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 7, R. 11.5 Slot Machine Wagering Voucher Procedures

(a) Slot Machine Wagering Vouchers are bar coded vouchers created through a cashless wagering system which allows collective hardware, software, communications technology, and other associated equipment to facilitate wagering. The bar coded voucher can be redeemed at the casino cage, voucher redemption kiosk, or inserted into a compatible slot machine. Vouchers redeemed must be validated through the system prior to payment. (b) Each voucher must contain the following printed information: 1. Licensee name, city and state; 2. Slot machine number or printer station number, as applicable; 3. Date and time of issuance; 4. Alpha and numeric dollar amount; 5. Sequence number; 6. Validation number; 7. Second printing of validation number on the leading edge of the voucher; 8. Unique identifier (e.g. bar code);

9. Transaction type or other acceptable method of differentiating voucher type; and 10. Expiration period or date when the voucher will expire. (c) In the event of system failure, vouchers may be approved for payment. This approval must be attested to by signature of the cashier, who must examine the voucher and confirm the validity of the voucher before payment. Vouchers paid during a period of system failure are written/stamped with a paid designation, initialed with unique identification number by the cashier and noted with the date paid. Vouchers paid without system validation must be immediately entered into the system when the system resumes operation. (d) Jackpots for games that are $1,200.00 or greater will be paid according to Mississippi Gaming Commission Regulation Part 7, Rule 11.3. For games that print a jackpot receipt, the jackpot receipt must accompany the jackpot payout slip for payment.

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 7, R. 11.6 Accounting Procedures for Slot Machines

(a) Maintenance of the slot machine computer data files shall be performed by the Accounting department. Alternatively, maintenance of the theoretical hold percentage for each slot machine may be performed by slot supervisory employees if sufficient documentation is generated and it is randomly verified by the Accounting Department. Note: Slot machine computer data files include updates to reflect additions, deletions or movements of slot machines, the theoretical hold percentages, coin-in amounts, drop amounts, payout amounts, fill amounts and win amounts for each slot machine. The slot audit shall be conducted by someone independent of the slot operations. Accounting/Audit employees shall review exception reports for all computerized slot systems on a daily basis for propriety of transactions and unusual occurrences. All noted improper transactions or unusual occurrences are investigated with the results documented. (b) The Accounting department shall daily: 1. Review all system jackpot payouts, manual jackpot payouts and voided transactions for proper completion. 2. Reconcile the jackpot payout slips to the slot machine and jackpot payout computer generated report. 3. Verify the correct total for jackpot payouts and are recorded in the accounting records used to prepare the win or loss for each slot machine. 4. For currency counter interface systems, each drop period, accounting/audit employees shall compare the totals on the currency counter report to the system-generated currency count, recorded in the slot statistical report. Discrepancies should be resolved prior to generation/distribution of slot count reports and the slot analysis report. Each slot machine shall maintain its separate accountability; and variances between the physical count and the metered counts must be investigated immediately. Explanation for these variances must be documented and retained. 5. Reconcile issued, voided, and redeemed wagering vouchers to the unpaid and expired wagering vouchers dollar amount using the reports produced by the system. Investigate and document any variance noted. 6. Calculate and record the win or loss for each slot machine. 7. Explain and report for corrections apparent meter malfunctions to the slot department and all significant differences between meter readings and amounts recorded. Meter readings shall only be altered to correct amounts that were determined to be unreasonable.

When meter amounts are corrected, indicate the correct amount in the appropriate on-line slot metering system report. 8. Report to the Slot department slot machines which are suspected of not communicating properly with the computer monitoring system. 9. The Slot department shall respond in writing for all exceptions reported by the Accounting department. 10. Compare for agreement all copies of the jackpot payout slips to triplicates or stored data. Review for the appropriate number of signatures. On a sample basis, review the propriety of signatures. 11. Account for by series number all jackpot payouts. (c) Accounting shall monthly shall document and reconcile gross revenue from the accounting records to Monthly Revenue Report and the slot analysis report by denomination. Variances shall be investigated and documentation must be maintained for all adjustments. (d) On a quarterly basis, Accounting shall perform procedures to verify that the online slot metering system is transmitting, receiving, and recording data from the slot machines properly for the following meters, as applicable to the operation. Coin–In includes the coin-in by paytable for multi-game and multi-denomination/multi-game slot machines, and the coin-in by wager type for machines which have a difference in theoretical payback percentage which exceeds 4 percent for a single-coin play versus maximum-bet play. (Adopted: 04/21/1994; Readopted: 04/29/1995; Amended: 06/21/2001; Amended: 06/15/2006.)

History

• Source: Miss. Code Ann. §§ 75-76-51, 75-76-45

Chapter 12 MINIMUM STANDARDS OF INTERNAL CONTROL FOR CARD GAMES

13 Miss. Admin. Code Pt. 7, R. 12.1 Minimum Standards Required For Card Games

This regulation prescribes the minimum standards for adoption by each licensee and which apply to card games such as poker, bridge, whist, solo, and panguingui. (a) The procedure for the collection of card game drop boxes and the count of the contents thereof will comply with all procedures applicable to the table game drop boxes. The card games drop boxes shall be removed on the same schedule with the table games and the contents therein counted on the same schedule. Removal of the boxes at any other time is prohibited. (b) A person functioning as a supervisor of equal or higher authority than those being supervised shall be present at all times the card room is operating. (c) Card table banks shall be used only for the purposes of making change or handling player buy-ins. It is to be physically located in the table tray (a receptacle used to hold the card table bank) on the card table. The card room bank is to be used only for the purposes of issuance and receipt of shill funds, the maintenance of card table banks used in card games, and the purchase and redemption of chips by players. All advances to and winnings or a shill shall be utilized only for wagering in card games or turned into the card room bank at the conclusion of play. (d) Transfers between the card table banks and the card room bank, or casino cage if a card room bank is not used, must be authorized and verified by the supervisor, card room dealer

and the runner. (e) If applicable, transfers between the card room bank and the casino cage are to be properly authorized and documented by the card room supervisor, cashier and the runner. (f) When the card table bank is to be replenished with chips from the card room bank, all cash or chips to be transferred must be counted down by the dealer in public view on the card table and verified by the person who transported the cash or chips (runner) and the dealer. (g) Rake-off, which is a percentage of the pot taken by the licensee for maintaining or dealing a game, shall only be pulled from the pot by the dealer in an obvious manner after call or at the completion of the hand. The rake-off shall be placed in a designated rake circle and shall remain there until a winner is declared and paid. The rake-off shall then be deposited into the drop box. The rake circle must be clearly visible to all players. (h) All time buy-ins, which is a charge to a player determined on a time basis by the licensee for the right to participate in a game, or any other fees charged to a patron shall be immediately placed in the drop box. (i) No cash or chips received for the sale of stakes shall be commingled with any rake-offs or other compensation received by the licensee from the players for the right to play. Stakes are the funds with which a player enters the game. (j) Playing cards, both used and unused, are to be maintained in a secure location to prevent unauthorized access and to reduce the possibility of tampering. (k) The amount of the main card room bank is to be counted, recorded and reconciled on, at least, a daily basis. At the end of the shift the amount of the table bank is counted, recorded, and reconciled by at least two persons with such count being attested to by signatures on the check- out form. (l) Issuance of shill funds shall have the written approval of the supervisor, shill returns shall be recorded and verified, and the replenishment of shill funds is to be documented. (Adopted: 04/21/1994; Readopted: 04/29/1995)

History

• Source: Miss. Code Ann. § 75-76-51

Chapter 13 CREDIT PLAY

13 Miss. Admin. Code Pt. 7, R. 13.1 Minimum Acceptable Credit Procedures

(a) The following standards represent minimum acceptable credit procedures. For any computer applications, alternate documentation and/or procedures which provide at least the level of control described by these standards will be acceptable. 1. The following information will be the minimum recorded for patrons who will have credit limits or be issued credit greater than $1,000.00 (excluding payroll checks, cashier's check and traveler's checks): i. Patron's name, ii. Current address, and iii. Signature, iv. Identification verifications, v. Authorized credit limit, vi. Documentation of credit history checks by management to approve credit limits, and vii. Credit issuances and payments. 2. Prior to extending credit, the patron's credit documentation is examined to determine

the following: i. Properly authorized credit limit, ii. Whether remaining credit is sufficient to cover the advance, and iii. Identity of the patron. 3. Credit extensions over a specific dollar amount are authorized by personnel designated by management. 4. Proper authorization of credit extension over 10 percent of the previously established limit or $1,000.00, whichever is greater, is documented. 5. The job functions of credit authorization, such as establishing the patron's credit worthiness, and credit extension, as an example monitoring patron's credit play activity, are segregated for credit extensions to a single patron of $10,000.00 or more per day. This limit applies whether credit was extended in the pit or the cage. 6. If personal checks, cashier's checks or payroll checks are cashed, the cage cashier will: i. Examine and record at least one item of patron identification such as a driver's license, ii. Record of bank number or credit card number (not required for payroll checks and cashier's checks), and iii. Make a reasonable effort to verify business authenticity of payroll checks. 7. Counter checks are not accepted by licensee unless the information required by item #1 has been documented and forms are pre-numbered. 8. When counter checks are accepted, the following will be included on the check: i. The patron's name and signature, ii. The dollar amount of the check, (both alpha and numeric), iii. Bank account number, iv. Date of issuance, and v. Signature or initial of the individual approving the check. 9. When traveler’s checks are presented: The cashier must comply with examination and documentation procedures as required by the issuer and checks in excess of $100.00 denominations are not cashed unless at least one form of identification is examined and recorded. 10. A reasonable effort must be made to collect outstanding casino accounts receivable. 11. If outstanding credit instruments are transferred to collection agencies or other collection representatives, a copy of the credit instrument is returned or payment is received. 12. A detailed listing is maintained to document all outstanding credit instruments which have been transferred to others as indicated above. 13. The above listing is prepared or reviewed by an individual independent of credit transaction and collections thereon. 14. All payments received on outstanding credit instruments are permanently recorded on the licensee's records. 15. When partial payments are made on credit instruments, they are evidenced by a multi- part receipt (or another equivalent document) which contains: i. The same preprinted number on all copies, ii. Patron's name, iii. Date of payment, iv. Dollar amount of payment (or remaining balance if a new marker is issued), v. Signature or initials of individual receiving payment, and

vi. Number of marker on which payment is being made. 16. Access to the credit information, outstanding credit instruments and written off credit instruments is restricted to those positions which require access and are so authorized by management. 17. All extensions of pit credit transferred to the cage and subsequent payments are documented on a credit instrument control form. Records of all correspondence, transfers to and from outside agencies, and other documents related to issued credit instruments are maintained. 18. Written-off credit instruments must be authorized in writing. Such authorization are made by at least two management officials who are from departments independent of the credit transaction. 19. (a) The receipt of disbursement of front money or a customer cash deposit is evidenced by at least a two-part document with one copy going to the customer and one copy remaining in the cage file. The multi-part form contains the following information: i. Same preprinted number on all copies, ii. Customer's name and signature, iii. Date of receipt and disbursement, iv. Dollar amount of deposit, and v. Type of deposit (cash, checks, chips). (b) Procedures are established to: i. Maintain a detailed record by patron name and date of all funds on deposit ii. Maintain a current balance of all customer cash deposits which are in the cage/vault inventory or accountability, and iii. Reconcile this current balance with the deposits and withdrawals at least daily. (Adopted: 04/21/1994; Readopted: 04/29/1995.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 13.2 Cage/Vault Accountability

(a) All transactions that flow through the casino cage must be summarized on a cage accountability form on a per shift basis. (b) Increases and decreases to the cage inventory must be supported by documentation. (c) The cage and vault inventories are counted by the oncoming and outgoing cashiers who shall make individual counts for comparison of accuracy and maintenance of individual accountability and recorded at the end of each shift during which activity took place. All discrepancies are noted and investigated. (d) All net changes in outstanding casino receivables are summarized on a cage accountability form or similar document on a per shift basis. (e) Such information is summarized and posted to the accounting records on at least a monthly basis. (f) A trial balance of casino accounts receivable, including the name of patron and current balance, is prepared at least monthly in the case of active accounts, or quarterly in the case of inactive or written-off accounts. (A listing of written-off items at the time of write-off, and another listing of payments on items previously written-off are acceptable). (g) The trial balance of casino accounts receivable is reconciled to the general ledger at least

quarterly. (h) In addition to internal audit standards, an individual independent of the cage, credit, and collection functions performs all of the following at least quarterly: 1. Ascertain compliance with credit limits and other established credit issuance procedures, 2. Randomly reconcile outstanding balances of both active and inactive accounts on the listing to individual credit records and physical instruments, 3. Examine credit records to determine that appropriate collection efforts are being made and payments are being properly recorded, and 4. For a minimum of seven (7) days per each month partial payment receipts are subsequently reconciled to the total payments recorded by the cage for the day and are numerically accounted for. (i) Procedures are established to: 1. Maintain a detailed record by patron name and date of all funds on deposit, 2. Maintain a current balance of all customer cash deposits which are in the cage/vault Inventory or accountability, and 3. Reconcile this current balance with the deposits and withdrawals. (Adopted: 04/21/1994; Readopted: 04/29/1995.)

History

• Source: Miss. Code Ann. § 75-76-45

Chapter 14 KEY CONTROLS Rule 14.1 General Key Controls. Every licensee’s written System of Internal Controls shall include procedures that, at a minimum, require the following: (a) No one employee can have access to more than one key to a dual key lock box. (b) Employees having control over a key which accesses a sensitive or restricted key lock box must maintain control over their key at all times. (c) Non-gaming keys must be maintained in a separate key lock box. The licensee is prohibited from commingling sensitive (dual access) keys with non-gaming keys. (d) Errors on key control documents must be lined through. Two gaming employees involved in the gaming transaction must initial with their legible unique identification number verifying the correction. (e) All count room keys, count room key box key(s), table games and card games drop box storage rack keys, currency acceptor storage rack keys, table games and card games drop box release keys, currency acceptor door keys, table games and card games drop box contents keys, currency acceptor contents keys, and any duplicate keys are to be controlled in such a way that access to the full or empty table games and card games drop boxes, currency acceptor boxes, or to the count rooms requires at least two (2) employees representing different departments and segregated functions. If the licensee maintains a key box in the count room that contains keys required to perform the count of gaming revenues, the Count Team Manager, Count Team Supervisor or Count Team Lead and Security are required to be present to check out the key to the count room door and key(s) to the count room key box. If the licensee maintains the keys required to count gaming revenues in a manual or automated key box, documentation must be completed to evidence that two count team members are present when the keys are issued and returned for the count of the gaming

13 Miss. Admin. Code Pt. 7, R. 14.2 Key Inventory And Key Access List

(a) All key box locations that contain sensitive and restricted keys must maintain a current and accurate key inventory and key access list. Sensitive keys are defined in Rule 14.3 of this regulation and restricted keys are those additional keys relative to gaming operations restricted by the Slot, Table Games, Cage, Card Games and Keno departments. (b) At a minimum, the key inventory list shall include, but is not limited to, the following: 1. Key tag/ring number, 2. Quantity of key(s) on each key tag/ring, 3. Key(s)’ name, and 4. Key(s)’ description (must match the physical markings on the key(s). (c) Access to sensitive and restricted keys is limited to only those employees specified in writing. The custodian for all key box locations must maintain an accurate key access list that contains the names and job titles of those employees authorized to access keys or signature cards for each employee with signatory authority for these keys. The key access list and/or signature cards must be on file at the key box location. (d) The licensee’s System of Internal Controls must indicate which employees have the authority to make changes, deletions, and/or additions to the key inventory and key access lists. (e) A documented physical inventory must be conducted by the key box custodian on a per- shift basis for sensitive and restricted key lock boxes utilized during the shift to ensure all keys are accounted for. The documented inventory will be forwarded to Accounting on a daily basis for review. The duplicate key box inventory shall be conducted in accordance with Rule 14.2(d) of this regulation. (f) The physical inventory logs will be forwarded to the Accounting department where they

will be reviewed for completeness. All discrepancies will be investigated, with the results of the investigation documented. (g) On a quarterly basis, an independent department (i.e. Accounting, Compliance, etc.) will conduct a documented physical inventory of sensitive and restricted key lock box locations. All discrepancies will be investigated, with the results of the investigation documented. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.3 Minimum Standards For Sensitive (Dual Access) Key Control

(a) Sensitive keys and any other keys deemed necessary by the Commission must be maintained, at a minimum, in a dual lock key box, which is securely attached to an area approved by the Commission. One access key to the dual lock box is maintained by the Custodian on duty and the other is maintained by Security. Both keys are required to open the dual lock key box. The Custodian is responsible for ensuring only authorized employees are allowed to check out and check in these keys, by verifying the employee’s authority listed on the key access list or signature card. All keys must be immediately returned to the dual lock key box once the employee has completed the task, the keys were originally checked out for. When a sensitive key, table float key, pit podium key, or card bank key are lost, misplaced, stolen, or removed from property, the licensee shall notify the MGC in writing immediately. The MGC has discretion to investigate all instances of keys lost, stolen, misplaced, or removed from property and make a determination if rekeying is necessary. The following keys 1. Count room key(s); 2. Key(s) to key lock boxes in the count room; 3. Table and Card Games’ drop box release key(s); 4. Currency acceptor door key(s); 5. Table and Card Games drop box contents key(s); 6. Currency acceptor contents and extractor unit key(s); 7. Storage rack keys for currency acceptors; 8. Storage rack keys for Table and Card Game drop boxes; 9. Key(s) to any secured area where spare or broken drop boxes (containing locks) are stored; 10. Card and dice storage area keys; 11. Locked dispensing machine key where controlled manual documents are dispensed; 12. Progressive controller key (linking two or more progressive electronic gaming devices); 13. EPROM duplicator storage cabinet key; 14. Key(s) to sensitive computer hardware in the keno area; 15. Key(s) to the keno locked ticket box; 16. Key(s) to keno master panel; 17. Key(s) to keno microfilm machine; and 18. Front door and control panel keys used to manually access the automated key box, if applicable. (b) All sensitive key locks must be uniquely keyed. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.4 Key Control Logs

(a) All key lock boxes that contain sensitive and restricted keys are controlled through restricted access and key control logs, which are completed (ditto marks, etc. are not allowed) every time a key is checked out and in. Before a key can be issued, the employee issuing the key must verify that the employee requesting the key has authority to access the key. The key control log shall include, but is not limited to, the following: 1. Date of issuance (month, day and year); 2. Time of issuance; 3. Signature of employee receiving the key(s) (The employee signing the key control log should be the individual ultimately receiving the key.); 4. Key tag/ring number(s); 5. Reason for removal of key(s) (i.e., perform slot drop, etc.); 6. Signature of employee issuing the key(s); 7. Signature of employee witnessing the issuance of key(s) and/or escorting the key(s); 8. Date of return (month, day and year); 9. Time of return, and 10. Signature of employee returning the key(s) (All keys must be returned by the same employee who signed them out.) and signature of employee witnessing the return of key(s) and/or escorting the key(s) back to the key box location (This employee must be present and observe the key check-in procedure.); and 11. Signature of employee accepting return of the key(s). (b) An employee is prohibited from transferring possession of an issued key(s) to another employee without proper documentation in the key control log, with the exception of an emergency the key(s) can be returned by the employee’s supervisor. The employee the key is transferred to must be authorized to obtain the key. An employee is further prohibited from maintaining possession of sensitive keys during breaks. Key(s) must be signed back in at the key box location, with documentation in the key control log. (c) All key control logs must be completed in ink. (d) On a daily basis, key control logs will be forwarded to the Accounting department where they will be reviewed for completeness and propriety of transactions and retained. All discrepancies will be investigated and documented. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.5 Minimum Standards for Main Cage/Vault Key Control

The kiosk door key, bill validator stacker release key, currency dispenser cassette release key, bill validator stacker content key and the currency dispenser cassette content key can be maintained in a single lock key box in the Main Cage. Access to the bill validator stacker release key, currency dispenser cassette release key, bill validator stacker content key and the currency dispenser cassette content key is restricted to Cage personnel. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.6 Minimum Standards For Table Games Key Control

(a) The table games release key to drop the table games drop box must be keyed separately from the key to access the table games drop box contents. (b) Table Games Supervisory personnel are required to accompany table game release and drop box storage rack keys and observe the entire drop process each time the drop boxes are removed from, or placed in, storage racks. During the drop process, the employees authorized to remove drop boxes from the tables are the only employees authorized to have access to the drop box release keys. Count team members may have access to the drop box release keys during the count of soft revenue, in order to reset the drop boxes. Employees authorized to drop the table games drop boxes are not allowed access to the drop box contents keys. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.7 Minimum Standards For Slot Key Control

(a) The count room, slot machine door key, currency acceptor box contents key, and currency acceptor door key must be keyed separately. If one hundred percent of the licensees’ slot machines are coin free, the slot machine belly glass and slot machine door may be keyed the same. (b) During the drop process, the drop team who are authorized to remove currency acceptor boxes from the slot machines is the only employees authorized to have access to the currency acceptor door keys. The drop team is not allowed to access the currency acceptor contents keys. (c) If a licensee utilizes currency acceptor extractor units, the controls surrounding the key(s) to the extractor units must be the same as the controls surrounding the currency acceptor content key(s). (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.8 Minimum Standards For Card Games Key Control

(a) The card game release key to drop either the drop box or the card game jackpot award drop box can be the same. The key to access the contents of either the drop box or the card game jackpot award drop box must be keyed separately. The card game release key for the drop box and card game jackpot award drop box must be keyed differently than the content key. (b) Card Games or Table Games Supervisory personnel are required to accompany card game release and drop box storage rack keys and observe the entire drop process each time the drop boxes are removed from, or placed in, storage racks. During the drop process, the employees authorized to remove drop boxes from the card games are the only employees authorized to have access to the drop box release keys. Count team members may have access to the drop box release keys during the count of soft revenue, in order to reset the drop boxes. Employees authorized to drop the card games drop boxes are not allowed access to the drop box contents keys. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.9 Minimum Standards For Manual Keno Key Control

(a) Keys to locked box tickets must be maintained by a department independent of the keno function. (b) An employee independent of the Keno department is required to accompany locked box keys to the keno area and observe repairs or refills each time locked boxes are accessed. (c) The master panel, which safeguards the wiring that controls the sequence of the game, must be locked at all times to prevent unauthorized access. (d) The master panel keys must be maintained by a department independent of the keno function. (e) An employee independent of the Keno department is required to accompany the master panel keys to the keno area and observe repairs, etc., each time the master panel is accessed. (f) Microfilm machine keys must be maintained by personnel who are independent of the keno writer function. (g) An employee independent of the keno writer function (i.e., a Keno Supervisor who doesn’t write or someone independent of keno) is required to accompany microfilm machine keys to the keno area and observe each time the microfilm machine is accessed. (h) Equipment in relation to the locked box, master panel and microfilm machine must be locked when not being accessed. All electrical connections to this equipment must be wired in such a manner so as to prevent tampering. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.10 Minimum Standards For Computerized Keno Key Control

(a) All keys, including duplicates, to sensitive computer hardware in the keno area must be maintained by a department independent of the keno function. (b) An employee independent of the Keno department is required to accompany keys to sensitive computer hardware in the keno area and observe changes or repairs each time the sensitive areas are accessed. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.11 Minimum Standards for Count Room Key Box

(a) If the licensee maintains a key box in the count room, the key box and controls surrounding the key box must be the same as those required by Rules 14.1 and 14.2 of this chapter. No one other than the count team members should have access to the count room key box. (b) At the end of the count and during breaks, the keys must be placed back into the count room key box and the key to the count room key box must be returned to the dual lock key box or automated key box. (c) The licensee must conduct a documented key inventory, which includes the signatures of the Count Team Manager, Count Team Supervisor or Count Team Lead and Security, to ensure all keys are accounted for at the conclusion of the count and before the count team exits for a break. The documented key inventory must be forwarded to Accounting for

review with the count documentation. If the licensee maintains an automated key box in their count room, a manual documented key inventory is not required. Accounting must review the reports detailed in Rule 14.14 of this chapter to ensure an accurate key accountability. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.12 Duplicate Key Controls

(a) Duplicate keys are replacement keys for broken sensitive and restrictive keys. Duplicate copies of all sensitive and restrictive keys must be maintained in a dual lock key box and must be properly secured as to limit access to authorized personnel only. The location and the controls surrounding the duplicate key box must be approved by the Commission in the licensee’s System of Internal Controls. (b) One duplicate key control log sheet must be maintained per each sensitive and restricted type key (this requirement also applies to those licensees who maintain their duplicate sensitive and restricted keys in an automated key box). The duplicate key control log will document the current issuance, receipt and inventory of all duplicate sensitive and restricted keys. When keys are removed from the duplicate key box, they must be added to the inventory of the appropriate key box location. The duplicate key control log must contain, but is not limited to, the following: 1. Date key received (month, day and year); 2. Date of issuance (month, day and year); 3. Time of issuance; 4. Key tag/ring number; 5. Number of keys made or destroyed; 6. Key name and description; 7. Signature of employee issuing key; 8. Signature of employee receiving key; 9. Reason for addition or removal of key; 10. Number of keys in beginning inventory; 11. Number of keys added or removed, and 12. Number of keys in ending inventory. (c) An inventory of duplicate keys will be maintained in such quantity that there will always be at least one duplicate key in inventory for each type of sensitive and restricted key. (d) On a quarterly basis, Accounting will conduct an audit of the duplicate key box documentation for completeness and accuracy. If any discrepancies are found they will be investigated and documented. (e) Every licensee’s System of Internal Controls must include procedures for the order and receipt of sensitive and restricted keys. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.13 Broken, Lost or Missing Keys

(a) Sensitive and restricted keys are not allowed off the premises. If a sensitive or restricted key is inadvertently taken off premises, the Commission must be notified by secondary

notification. The key control log must also indicate the key(s) taken off premises. The determination to replace locks and/or re-key is at the discretion of the Commission. (b) Broken keys, unidentified/obsolete keys, or keys for locks that have been changed, must be destroyed and discarded. The licensee’s System of Internal Controls must include key destruction procedures for broken keys, unidentified/obsolete keys, or keys for locks that have been changed. In the event a sensitive or restricted key is broken, the System of Internal Controls must include which employee shall receive and replace the broken key, disposition of the broken key and notification to the Commission, if applicable. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 7, R. 14.14 Automated Key Control System

For licensees who utilize an automated key control system for sensitive or restricted keys, their System of Internal Controls must also include the following: (a) The automated key system procedures must achieve a comparable level of controls and safeguards as required by the aforementioned key control regulations; (b) Keys must be maintained on tamper proof rings to prevent unauthorized removal; (c) A general description of the automated system and its configuration to include how access is controlled using a separate unique device to identify each employee ( e.g., Password or PIN and Hand Reader, Fingerprint, or Retina Scan, etc.); (d) System override procedures, if applicable; (e) Immediate notification to the Commission in the event of a system failure and what procedures will be utilized when the system fails; (f) The front door and control panel keys used to manually access the automated key box must be keyed separately and maintained in a manual dual lock key box with access limited to approved personnel. Such access must be documented in the key control log; (g) System capabilities to provide a complete audit trail of all access, which includes but is not limited to, identity of the key box, employee, key(s), date and time out, date and time returned, unauthorized attempts to access the key box and all entries, changes or deletions in the system and the employee who did so; (h) Each department head is required to complete a “Key Authorization Form” detailing their employees’ user access to the keys maintained in the automated key box. The “Key Authorization Form” must be provided to the automated key box administrator for entry into the automated key box system. Documentation must be completed each time there is a new employee entry, modification to an existing employee’s user access or deletion of an employee from the automated key box system. The automated key box administrator or the employee in charge of and/or employee(s) authorized to enter, modify and delete keys and employee access in the automated system, must be independent of the revenue producing department whose keys are maintained in the automated key box and this employee cannot be utilized as an escort or witness to access keys maintained in the automated key box. An employee from the Accounting department must perform a documented review after the administrator performs a key entry, modification, deletion and change in employee access in the automated system; (i) If the licensee’s automated key box system will not allow the identification description of each key on a key ring, a manual supplemental inventory must be maintained that is signed (to include their legible unique identification number) and dated by the administrator of

the automated key box; (j) The automated key box system must be able to provide reports detailing alarms for overdue keys, open doors, unauthorized attempts to access, user access list to ensure a proper segregation of duties and transactions are appropriate and any other unusual activities, (k) Back up procedures for the automated key control system must be performed daily, (l) Accounting must document their review of the following procedures on a daily basis: 1. Review the automated user access report to ensure a proper segregation of duties is exercised and transactions are appropriate; 2. Ensure all employees in the automated system are current employees with the appropriate job title to access the keys; and 3. Review automated detail reports for propriety of transactions, overdue keys, open doors, unauthorized attempts to access and any other unusual activities. (Adopted: 12/20/2007.)

History

• Source: Miss. Code Ann. § 75-76-45

Part 8 Part 8: Technical Standards for Gaming Devices and On-Line Slot Systems

13 Miss. Admin. Code Pt. 8, R. 1.1 General Term

(a) “Access Instrument” means a card, code, electronic serial number, mobile identification number, personal identification number or similar device that shall be used in conjunction with an approved cashless wagering system or electronic credit system to transfer funds for gaming purposes. (b) “Alterable Media” is any form of storage device that allows the modification of the programs or data on the device during the normal operation of the gaming device. This does not include devices typically considered to be alterable but through either software or hardware means approved by the Executive Director, have been rendered unalterable. (c) “Cashable credits” means the monetary units displayed on a credit meter that are redeemable for cash. (d) “Cashless wagering system” means the collective hardware, software (including “digital wallet”), communications technology, and other associated equipment used to facilitate wagering with instruments of value other than chips, tokens or legal tender of the United States. (e) “Complete Voucher”: A complete voucher contains all of the required information and is of a quality that can be redeemed through the use of a barcode reader. (f) “Conventional ROM Device” is a device incapable of being altered while installed in a gaming device and may contain executable programs or data that are directly addressed by a processor. (g) “Credit meter” means a slot machine indicator that displays the number of denominational credits or monetary value available to a patron for wagering. (h) “Digital Wallet”: A software component of the cashless wagering system allowing a casino patron to facilitate wagering by storing funds, making transactions and tracking payment histories on computing devices (phones/tablets). (i) “Duplicate Voucher”: A duplicate voucher is any reprinted complete or incomplete voucher. (j) “Electronic funds transfer” means a transfer of funds from an independent financial institution to a gaming device through a cashless wagering system. (k) "Executive Director" means the Executive Director of the Mississippi Gaming Commission and includes any duly authorized agent of the Executive Director. (l) “Incomplete Voucher”: An incomplete voucher contains, at a minimum, the voucher validation number printed across the printed leading edge but is not of a quality that can be redeemed through the use of a barcode reader. (m) “Leakage Current” is any electrical current which flows when a conductive path is provided between exposed portions of a gaming device and the environmental electrical ground when the gaming device is isolated from the normal AC power ground. (n) “Non-cashable credits” means the monetary units displayed on a credit meter that have no cash redemption value.

(o) “On-line slot system” means, as used in these standards, an on-line slot metering system, a cashless wagering system, or both. (p) “Promotional account” means an electronic ledger used in a cashless wagering system to record transactions involving a patron or patrons that are not otherwise recorded in a wagering account. (q) “Print Failure”: A print failure is a condition following the failed attempt to print a complete or incomplete voucher. (r) “Presentation Error”: A presentation error is a condition where a complete or incomplete voucher has been printed, however, the voucher is not presented to the patron for removal. (s) “Random Access Memory” (RAM) is the electronic component used for computer workspace and storage of volatile information in a gaming device. The term does not include memory which is used exclusively for bit-mapped video displays. (t) “Random Number Generator” is a hardware, software, or combination hardware and software device for generating number values that exhibit characteristics of randomness. (u) “Read Only Memory” (ROM) is the electronic component used for storage of non- volatile information in a gaming device. The term includes Programmable ROM and Erasable Programmable ROM. (v) “Replacement Voucher”: A replacement voucher is any voucher that is printed following a failed attempt to print a complete or incomplete voucher. (w) “Slot machine coupon” means a printed wagering instrument that has a fixed dollar wagering value that can only be used to acquire non-cashable credits. (x) “Slot machine payout receipt” means an instrument that is redeemable for cash and is either issued by a gaming device or as a result of a communication from a gaming device to associated equipment that cannot be accepted by gaming devices for wagering purposes. (y) “Slot machine wagering voucher” means a printed wagering instrument that has a fixed dollar wagering value that can only be used to acquire an equivalent value of cashable credits or cash. (z) “Tilt condition” is a programmed error state for a gaming device. A tilt condition has occurred when the device detects an internal error, malfunction, or attempted cheating, and it disallows further play until the error is resolved. (aa) “Wagering account” means an electronic ledger for a cashless wagering system patron deposit account wherein the following types of transactions are recorded: 1. Deposits and withdrawals of cash or cash equivalents at a designated area of accountability; 2. Wagering account transfers to and from gaming devices; 3. Wagering account adjustments; and 4. Other transactions approved by the Executive Director. (bb) “Wagering account transfer” means a transfer of funds between a cashless wagering system wagering account and a gaming device. (cc) “Wagering instrument” means, as used in these standards, a representative of value, other than a chip or token, that is issued by a licensee and approved by the Commission for use in a cashless wagering system and includes slot machine coupons and slot machine wagering vouchers.

(Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-51

Chapter 2 INTEGRITY OF DEVICES

13 Miss. Admin. Code Pt. 8, R. 2.1 Electrical Interference Immunity

(a) A gaming device must exhibit total immunity to human body electrostatic discharges on all player-exposed areas. For purposes of this standard, a human body discharge is considered to be an electrical potential of not greater than 20,000 volts DC discharged through a network with a series resistance of 150 to 1500 ohms shunted by a capacitance of 100 to 150 picofarads. The device must withstand this discharge repeated at one second intervals. The power source for this human body equivalent is a high-impedance source such that, in effect, the energy available for a given discharge is limited to that contained in the shunt capacitor. (b) A gaming device may exhibit temporary disruption when subjected to electrostatic discharges of 20,000 to 27,000 volts DC through a network with a series resistance of 150 to 1500 ohms shunted by a capacitance of 100 to 150 picofarads but must exhibit a capacity to recover and complete an interrupted play without loss or corruption of any stored or displayed information and without component failure. (c) Gaming device power supply filtering must be sufficient to prevent disruption of the device by repeated switching on and off of the AC power. The device must not exhibit disruption when a 1 microfarad capacitor, charged to plus or minus 680 volts DC is discharged between the hot and neutral AC supply lines, at any phase from zero to 360 degrees, with a repetition rate of 30 times per second. (d) The random number generator and random selection process must be impervious to influences from outside the device, including, but not limited to, electro-magnetic interference, electro-static interference, and radio frequency interference. A gaming device must use appropriate communication protocols to protect the random number generator and random selection process from influence by associated equipment which is conducting data communications with the gaming device. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-33

13 Miss. Admin. Code Pt. 8, R. 2.2 Change Vouchers Or Coupons

(a) A wagering instrument inserted into a gaming device that is less in amount than that gaming device’s smallest denomination shall: 1. Cause that gaming device to immediately reject the wagering instrument if that gaming device does not have an odd cents meter; or 2. Allow for the additional accumulation of wagering credits if the gaming device has an odd cents meter. (b) A wagering instrument inserted into a gaming device that is greater in amount than that gaming device’s smallest denomination and not evenly divisible by any of the gaming device’s denominations shall:

1. Cause that gaming device to immediately issue a change voucher or coupon if that gaming device does not have an odd cents meter and is equipped with a printer mechanism; 2. Allow for the additional accumulation of wagering credits; or 3. Cause that gaming device to immediately reject the wagering instrument if that gaming device is not equipped with a printer mechanism or if the printer mechanism is not functioning for any reason. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-33

13 Miss. Admin. Code Pt. 8, R. 2.3 Printers

Printer mechanisms on gaming devices must be designed to detect low paper, paper out, presentation error, printer failure and paper jam conditions. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-33

13 Miss. Admin. Code Pt. 8, R. 2.4 Physical Security

A gaming device must resist forced illegal entry and must retain evidence of any entry until properly cleared or until a new play is initiated. A gaming device must have a protective cover over the circuit boards that contain programs and circuitry used in the random selection process and control of the gaming device, including any electrically alterable program storage media. The cover must be designed to permit installation of a security locking mechanism by the manufacturer or end user of the gaming device. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-33

13 Miss. Admin. Code Pt. 8, R. 2.5 Communication with Associated Equipment

(a) Any gaming device which is capable of bidirectional communication with internal or external associated equipment must utilize a communication protocol which insures that erroneous data or signals will not adversely affect the operation of the device. (b) Any new or modified gaming device submitted for approval which is used with a progressive controller or any other associated equipment that is intended to signal a jackpot hit of any level must provide a complex signal consisting of at least eight logical transitions involving time and magnitude. The device may optionally provide an additional jackpot signal intended for use with older progressive equipment. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-33

13 Miss. Admin. Code Pt. 8, R. 2.6 Error Conditions

(a) Gaming devices must detect and display the following conditions during idle states or game play. These conditions may be automatically cleared by the gaming device upon completion of a new play sequence.

1. Power reset. 2. Door open. 3. Door just closed. (b) Gaming devices must be capable of detecting and displaying the following error conditions which must disable game play and which may only be cleared by an attendant: 1. Low RAM battery (a designated battery replacement schedule may be used in lieu of a low battery detection scheme). 2. Print Failure, if the gaming device has no other means to make a payout. A Replacement voucher may be printed once the failure condition has been cleared. 3. Printer mechanism paper jam. A paper jam condition must be monitored at all times during the print process. 4. Printer mechanism paper out, if the gaming device has no other means to make a payout. 5. Program error (Defective program storage media). 6. Reel spin error of any type including a mis-index condition for mechanical reels. The specific reel number must be identified. If a tilt occurs while the reel(s) are spinning the gaming device must spin the reel(s) at a slow speed. 7. Removal of control program storage media. 8. Uncorrectable RAM error (RAM defective or corrupted). (c) Gaming devices must be capable of detecting and displaying the following error conditions which may either be cleared by an attendant. Game play may continue if an alternative method is available to complete the transaction or the condition does not prohibit the transaction from being completed: 1. Printer mechanism low paper. 2. Print Failure. 3. Printer mechanism paper out. (d) A description of device error codes and their meanings must be affixed inside the gaming device unless the displayed device error codes are self-explanatory. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-33

13 Miss. Admin. Code Pt. 8, R. 2.7 Control Program Requirements

(a) All must employ a mechanism approved by the Executive Director to verify control programs code and data. The mechanism used must detect at least 99.99 percent of all possible media failures. If these programs and data are to operate out of volatile RAM, the program that loads the RAM must reside on and operate from a Conventional ROM Device. (b) All gaming devices having control programs or data stored on memory devices other than Conventional ROM Devices must: 1. Employ a mechanism approved by the Executive Director which verifies that all control program components, including data and graphic information, are authentic copies of the approved components. The Executive Director may require tests to verify that components used by licensees are approved components. The verification mechanism must have an error rate of less than 1 in 10 to the 38th power and must prevent the execution of any control program component if any

component is determined to be invalid. Any program component of the verification or initialization mechanism must be stored on a Conventional ROM Device that must be capable of being authenticated using a method approved by the Executive Director. 2. Employ a mechanism approved by the Executive Director which tests unused or unallocated areas of any alterable media for unintended programs or data and tests the structure of the storage media for integrity. The mechanism must prevent further play of the gaming device if unexpected data or structural inconsistencies are found; 3. Provide a mechanism for keeping a record, in a form approved by the Executive Director, anytime a control program component is added, removed, or altered on any alterable media. The record must contain the date and time of the action, identification of the component affected, the reason for the modification and any pertinent validation information; 4. Provide, at a minimum, a two-stage mechanism for validating all program components on demand via a communication port and protocol approved by the Executive Director. The first stage of this mechanism must verify all control components. The second stage must be capable of completely authenticating all program components, including graphics and data components in a maximum of 20 minutes. The mechanism for extracting the authentication information must be stored on a Conventional ROM Device that must be capable of being authenticated by a method approved by the Executive Director. 5. If approved before August 1, 2004, receive a waiver from the Executive Director for any modification to the device if the full implementation of this section cannot be met. The Executive Director may waiver portions of this section if the manufacturer can demonstrate to the Executive Director’s satisfaction that the imposition of the full standard would hinder the design of the device or pose a hardship due to limitations in the approved Platform. (c) Any gaming device executing control programs from electrically erasable or volatile memory must employ a mechanism approved by the Executive Director that ensures the integrity of all control program components residing therein, including fixed data and graphic information and ensures that they are authentic copies of the approved components. Additionally, control program components, excluding graphics and sound components, must be fully verified at the time of loading into the electrically erasable or volatile memory and upon any significant event, including but not limited to door closings, game resets, and power up. The mechanism must prevent further play of the gaming device if an invalid component is detected. (d) Unless otherwise approved by the Executive Director, any gaming device that allows the adding, removing, or alteration of any control program components through a data communication facility must employ a mechanism for preventing any change from taking place that would interrupt a game in progress. Any device, technique or network which may be used to accomplish the adding, removing, or alteration of any control program components may, at the Executive Director’s discretion, be considered a gaming device that must receive separate commission approval. (e) Gaming devices with control programs or other security programs residing in conventional Read Only Memory (ROM) devices such as EPROM’s or fusible-link PROM’s must have the unused portions of the memory device that contains the program

set to zero or some other value approved by the Executive Director. (f) Gaming device control programs must check for any corruption of random access memory locations used for crucial gaming device functions including, but not limited to, information pertaining to the play and final outcome of the most recent game, the nine games prior to the most recent game, random number generator outcome, credits available for play, and any error states. These memory areas must be checked for corruption following game initiation but prior to display of the game outcome to the player. Detection of any corruption that cannot be corrected shall be deemed to be a game malfunction and must result in a tilt condition. (g) All gaming devices must have the capacity to display a complete play history for the most recent game played and nine games prior to the most recent game. Retention of play history for additional prior games is encouraged. The display must indicate the game outcome (or a representative equivalent), intermediate play steps (such as a hold and draw sequence or a double-down sequence), credits available, bets placed, credits paid and credits cashed out. Gaming devices offering games with a variable number of intermediate play steps per game may satisfy this requirement by providing the capability to display the last 50 play steps. The Executive Director may waive this standard for a particular device or modification if the hardware platform on which the device is based was originally approved prior to the adoption of this standard as modified and the manufacturer can demonstrate to the Executive Director’s satisfaction that the imposition of the full standard would hinder the design of the device or would otherwise pose a hardship due to capacity limitations in the approved platform. (h) All gaming devices must have the capacity to display a complete transaction history for the most recent transaction with a cashless wagering system, and the previous thirty-four transactions prior to the most recent transaction, that incremented any of the meters set forth in Part 8, Rule 3.4. Retention of transaction history for additional prior transactions is encouraged. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-33

13 Miss. Admin. Code Pt. 8, R. 2.8 Bonus Or Extended Game Features

All gaming devices which offer a bonus game or extended feature which requires player selection or interaction are prohibited from automatically initiating these features unless the gaming device meets the requirements of (a) or (b) and explains the mechanism for auto- initiation on the device glass or video display. (a) The patron is presented with a choice and specifically acknowledges their intent to have the gaming device auto-initiate the bonus or extended play feature by means of a button press or other physical/machine interaction. (b) The bonus or extended feature provides only one choice to the patron i.e.: Press button to spin wheel. In this case, the device may auto initiate the bonus or extended feature after a time out period of at least 2 minutes. (Adopted: 09/15/2004; Amended 06/15/2006.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 8, R. 2.9 Reel Strips

(a) Given a physical reel strip of length L units containing N physical stops, each blank space must occupy a minimum of (L/N)*0.4 units. These blank symbols must be completely free of any portion of any adjacent symbol. (b) All non-blank and blank symbols must be centered in their respective space allocation. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 8, R. 2.10 Safety

(a) A gaming device must not present a mechanical, electrical or fire hazard when used in its intended mode of operation. (b) The power supply used in a gaming device must be designed to minimize leakage current in the event of intentional or inadvertent disconnection of the AC power ground. Leakage currents of greater than 1.0 milliamperes may be considered hazardous. The power supply must be appropriately fused or protected by circuit breakers. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 3 PROPER ACCOUNTING FOR GAMING DEVICES

13 Miss. Admin. Code Pt. 8, R. 3.1 Changes To Payout Percentage

(a) The theoretical payback percentage of a gaming device must not be capable of being changed without making a hardware or software change in the device. For purposes of this standard, the addition of an attendant paid bonus, a progressive jackpot, or a change in rate of progression of an existing progressive jackpot is not considered to be a change in the theoretical payback of the gaming device. (b) Notwithstanding subsection (1), draw poker type gaming devices may have switch selectable or menu selectable top award values so long as the selectable range does not alter the payback percentage of the device by more than 1 percent with typical field play. (c) Gaming devices which are considered to be slot machines and which have a difference in theoretical payback percentage which exceeds 4 percent for a single-coin play versus maximum-bet play, must have electronically stored digital meters of at least 6 digits which record the number of plays made in each category of wager for which the theoretical payback percentage is different from the single-coin bet category. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 8, R. 3.2 Meters

(a) All gaming devices must be equipped with electronic digital storage meters of at least 10 digits capable of displaying the information listed in this section on demand. These meters, listed below, must accumulate the following information in units equal to the denomination of the device or in dollars and cents. Devices configured for multi- denomination play must display the required information in dollars and cents.

1. Coin In. The machine must have a meter specifically labeled “Coin In” that accumulates the total value of all wagers, whether the wagered amount results from the insertion of currency or deduction from a credit meter or any other means. i. This meter shall: (a) Not include subsequent wagers of intermediate winnings accumulated during game play sequence such as those acquired from “double up” games; (b) For multi-game and multi-denomination/multi-game gaming devices, provide the information necessary, on a per paytable basis, to calculate a weighted average theoretical payback percentage; and (c) For gaming devices which are considered slot machines and which contain paytables with a difference in theoretical payback percentage which exceeds 4 percent between wager categories, maintain and display coin in meters and the associated theoretical payback percentage, for each wager category with a different theoretical payback percentage, and calculate a weighted average theoretical payback percentage for that paytable. 2. Coin Out. The machine must have a meter specifically labeled “Coin Out” that accumulates the total value of all amounts directly paid by the machine as a result of winning wagers. This meter will not record amounts awarded as the result of an external bonusing system or a progressive payout; 3. Attendant Paid Jackpots. The machine must have a meter specifically labeled “Attendant Paid Jackpots” that accumulates the total value of credits paid by an attendant resulting from a single winning alignment or combination, the amount of which is not capable of being paid by the machine itself. This does not include progressive amounts or amounts awarded as a result of an external bonusing system. This meter is only to include awards resulting from a specifically identified amount listed in the manufacturer’s par sheet; 4. Attendant Paid Cancelled Credits. The machine must have a meter specifically labeled “Attendant Paid Cancelled Credits” that accumulates the total value paid by an attendant resulting from a player initiated cash-out that exceeds the physical or configured capability of the machine to make the proper payout amount; 5. Bill In. The machine must have a meter specifically labeled “Bill In” that accumulates the total value of currency accepted. Additionally, the machine must have a specific meter for each denomination of currency accepted that records the number of bills accepted of each denomination; 6. Voucher In. The machine must have a meter specifically labeled “Voucher In” that accumulates the total value of all slot machine wagering vouchers accepted by the machine; 7. Voucher Out. The machine must have a meter specifically labeled “Voucher Out” that accumulates the total value of all slot machine wagering vouchers and payout receipts issued by the machine; 8. Electronic Funds Transfer In (EFT In). The machine must have a meter specifically labeled “EFT In” that accumulates the total value of cashable credits electronically transferred from a financial institution to the machine through a cashless wagering system;

2. Wagering Account Transfer In (WAT In). The machine must have a meter specifically labeled “WAT In” that accumulates the total value of cashable credits electronically transferred to the machine from a wagering account by means of an external connection between the machine and a cashless wagering system; 10. Wagering Account Transfer Out (WAT Out). The machine must have a meter specifically labeled “WAT Out” that accumulates the total value of cashable credits electronically transferred from the machine to a wagering account by means of an external connection between the machine and a cashless wagering system; 11. Non-Cashable Electronic Promotion In. The machine must have a meter specifically labeled “Non-Cashable Electronic Promotion In” that accumulates the total value of non-cashable credits electronically transferred to the machine from a promotional account by means of an external connection between the machine and a cashless wagering system; 12. Cashable Electronic Promotion In. The machine must have a meter specifically labeled “Cashable Electronic Promotion In” that accumulates the total value of cashable credits electronically transferred to the machine from a promotional account by means of an external connection between the machine and a cashless wagering system; 13. Non-Cashable Electronic Promotion Out. The machine must have a meter specifically labeled “Non-Cashable Electronic Promotion Out” that accumulates the total value of non- cashable credits electronically transferred from the machine to a promotional account by means of an external connection between the machine and a cashless wagering system; 14. Cashable Electronic Promotion Out. The machine must have a meter specifically labeled “Cashable Electronic Promotion Out” that accumulates the total value of cashable credits electronically transferred from the machine to a promotional account by means of an external connection between the machine and a cashless wagering system; 15. Coupon Promotion In. The machine must have a meter specifically labeled “Coupon Promotion In” that accumulates the total value of all slot machine coupons accepted by the machine; 16. Coupon Promotion Out. The machine must have a meter specifically labeled “Coupon Promotion Out” that accumulates the total value of all slot machine coupons issued by the machine; 17. Machine Paid External Bonus Payout. The machine must have a meter specifically labeled “Machine Paid External Bonus Payout” that accumulates the total value of additional amounts awarded as a result of an external bonusing system and paid by the slot machine; 18. Attendant Paid External Bonus Payout. The machine must have a meter specifically labeled “Attendant Paid External Bonus Payout” that accumulates the total value of amounts awarded as a result of an external bonusing system paid by an attendant; 19. Attendant Paid Progressive Payout. The machine must have a meter specifically labeled “Attendant Paid Progressive Payout” that accumulates the total value of credits paid by an attendant as a result of progressive awards that are not capable of being paid by the machine itself;

3. Machine Paid Progressive Payout. The machine must have a meter specifically labeled “Machine Paid Progressive Payout” that accumulates the total value of credits paid as a result of progressive awards paid directly by the machine. This meter does not include awards paid as a result of an external bonusing system; and 21. Such other meters as may be required by the Executive Director. (b) Gaming devices that are unable to comply with the full requirements of Part 8, Rule 3.4 shall: 1. For gaming devices that are unable to display the specific meter labels required, use a legend to indicate what information a specific meter accumulates. 2. For gaming devices that are unable to incorporate meters (9) through (23) due to undue hardship on the gaming device manufacturer, not be required to incorporate such meters if this requirement is waived by the Executive Director. 3. All gaming devices must be equipped with a device, mechanism or method which retains the value of all the required meters in Part 8, Rule 3.4 (that have not been waived as described above) in the event of power loss to the device. 4. Gaming devices must have electronically stored meters of at least 8 digits that record the number of games played: i. Since power reset; ii. Since door close; and iii. Since game initialization (RAM clear). 5. The gaming device must provide the means for on-demand display of the stored information. 6. Unless a tilt condition or other malfunction exists, gaming devices must have meters in units equal to the denomination of the device, in dollars and cents or in other units approved by the Executive Director, continuously displaying to a player the following information as it pertains to the current play or monetary transaction: i. Credits wagered; ii. Credits won, if applicable; iii. The credits available for wagering, if applicable. 7. Electronically stored meter information required by this section must be preserved for a minimum of 72 hours after a power loss to the gaming device. (Adopted: 09/15/2004.)

Source; Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 8, R. 3.5 Credit Play Requirements – Collectible credits

(a) Collectible credits may be accumulated from wins or from approved currency acceptors. The aggregate total of collectible credits accumulated from currency must be less than $100,000.00. (b) The maximum number of credits from currency that may be applied to any wager on a gaming device must be less than $100,000.00, except that repeated double-down (double or nothing) bets are allowed up to the ultimate lockup level of the device. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-101

13 Miss. Admin. Code Pt. 8, R. 3.6 Credit Play Requirements – Cashable credits

(a) Cashable credits may be accumulated from wins, approved currency acceptors, electronic funds transfers, wagering account transfers, or any other transfers of cashable credits. The aggregate total of cashable credits accumulated from coin and currency must be less than or equal to $100,000.00. (b) The maximum number of credits from currency that may be applied to any wager on a gaming device must be less than or equal to $100,000.00, except that repeated double- down (double or nothing) bets are allowed up to the ultimate lock-up level of the device. (c) Wagering credits available for play must be wagered in the following order: 1. Non-cashable credits; 2. Cashable credits given away by a licensee; and 3. All other credits. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-101

13 Miss. Admin. Code Pt. 8, R. 3.7 Award Cards

Award cards must be clearly identified and must be displayed at all times the device is available for play or be readily available for display on the device on demand by the player. Award cards must accurately state the award that will be paid when the player obtains a specific win. The award card must clearly indicate whether awards are designated in denominational units, dollars and cents, or some other unit. All award cards present on a gaming device must reflect any change in award value which may occur in the course of play. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-101

13 Miss. Admin. Code Pt. 8, R. 3.8 Jackpot Odds

The probability of hitting any advertised jackpot that is offered by a gaming device may not exceed 100 million to one. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-33

Chapter 4 INTEGRITY OF AND PROPER ACCOUNTING FOR ON-LINE SLOT SYSTEMS

13 Miss. Admin. Code Pt. 8, R. 4.1 Communication Security

The on-line slot system shall include secured communication as follows: (a) All communications that initiate a gaming device pay command shall employ some form of encryption that has been approved by the Executive Director. (b) All data communication shall incorporate an error detection and correction scheme approved by the Executive Director to ensure the data is transmitted and received accurately. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-3, 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.2 Error Conditions

The on-line slot system shall be capable of detecting and displaying certain conditions. These conditions shall be recorded on an error log that may be displayed or printed on demand and shall archive the conditions for a minimum of thirty (30) days. The conditions include but are not limited to: (a) Power reset or failure of a gaming device or any component of the on-line slot system. (b) Communication loss between a gaming device and any component of the on-line slot system. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.3 Program Access Control

The on-line slot system shall be capable of restricting or limiting access to any and all program components by a method approved by the Executive Director. There shall be no access to the on-line system unless it can be identified, tracked and reported by the system. All default or hard-coded passwords to an on-line system shall be deleted prior to activation of the system. There shall be no remote access to the system unless it can be identified, tracked and reported by the system. At a minimum the system must identify the login name and password, the number into which dialed, the date, time and duration of the activity, and a detailed description of the activity performed. The modem shall be disabled or unplugged except when in use for remote access. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.4 Data Access Control

The on-line slot system shall not permit the alteration of any accounting or event log information that was properly communicated from the gaming device unless documented, secure access controls are provided. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.5 On-line System Clock

(a) The on-line slot system shall maintain an internal clock that accurately reflects the current time (in hours, minutes and seconds) and date that shall be used to provide for the following: 1. Time stamping of significant events; 2. Reference clock for reporting; 3. Time stamping of configuration changes. 4. If multiple clocks are used, then a means shall be provided that will update all clocks in devices attached to the system, including the gaming devices, at least once in each 24-hour period.

(b) The on-line slot system shall maintain a history of all updates/modifications to the system. This data must be hard-coded in the update/modification and shall not be entered manually. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.6 On-line Slot System Integrity

(a) The on-line slot system shall be designed so that no single failure of any system component will cause the cessation of system operation. Alternatively, each gaming establishment must provide for back-up components or systems using a plan approved by the Executive Director. (b) The database shall be stored on redundant media so that no single failure of any portion of the system would cause the loss or corruption of data. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-3

13 Miss. Admin. Code Pt. 8, R. 4.7 Interface With Gaming Device

(a) Each gaming device interfaced with an on-line slot system using an interface component shall have the interface component either installed inside a secure area of the gaming device or shall employ a secure communication method between the gaming device and the interface component. (b) The interface component shall send information to the on-line slot system via a communication protocol approved by the Executive Director. (c) A system shall be designed such that communications that access gaming device components, including but not limited to currency accepters and printers, may only access those components through a processor that has been approved using the standards and criteria for a gaming device. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.8 Clearing Meters

An interface component shall have a mechanism whereby an error will not cause the loss of stored accounting meter information. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.9 Meter Backup Requirements

Data recorded by electronic meters shall be preserved after a power loss to an interface component and shall be maintained for a period of at least seventy-two (72) hours. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.10 Address Requirements

Interface components shall allow for the configuration of a unique identification number to be used in conjunction with the gaming device file in the on-line slot system. This identification number will be used by the on-line slot system to track all mandatory information of the associated gaming device. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.11 Required Meters

(a) The on-line slot metering system shall be equipped to read specific values of or store the information accumulated by the electronic digital storage meters in the gaming device. The following meter information is stored in units equal to the denomination of the device or in dollars and cents: 1. Coin in. 2. Coin out. 3. Attendant paid jackpots. 4. Attendant paid cancelled credits. 5. Bill in. 6. Voucher out (for the metering of payout receipts). 7. Machine paid external bonus payout. 8. Attendant paid external bonus payout. 9. Attendant paid progressive payout. 10. Machine paid progressive payout. (b) Note 1: System meters shall be referred to with the above terms and shall accumulate the information as required by Part 8, Rule 3.4. (c) Note 2: The system shall maintain paytable coin-in and theoretical payback percentage information provided by the gaming device for each multigame or multi- denomination/multi- game slot machine. (d) Note 3: The system shall maintain paytable coin-in and weighted average theoretical payback percentage information provided by each gaming device which is considered a slot machine and which contains paytables with a difference in theoretical payback percentage which exceeds 4 percent between wager categories. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.12 Recording of Meter Information

An on-line slot metering system must have a mechanism in place to record all required meters, as specified by Part 8, Rule 3.4, on demand and at the time the drop box is removed. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-99

13 Miss. Admin. Code Pt. 8, R. 4.13 Payout receipts

Systems that issue a printed payout receipt shall:

(a) Include on all payout receipts: 1. Licensee name, city and state; 2. Gaming device number; 3. Date and time of issuance; 4. Alpha and numeric dollar amount; 5. Sequence number; 6. Expiration period or date when receipt will expire, if applicable. (b) Only allow the printing of a payout receipt upon a communication initiated by a gaming device. (c) Provide for on-line, real-time validation of payout receipts. (d) Be incapable of authorizing payment on a payout receipt that has been previously paid, voided, or that is unissued. (e) For payout receipts printed at a gaming device, not allow an expiration period of less than thirty days. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-51

13 Miss. Admin. Code Pt. 8, R. 4.14 Documentation required of on-line slot metering systems

Documentation generated by an on-line slot metering system indicating information by slot machine, by denomination and in total, shall be available through the system on a day, month, year-to-date basis and for at least a previous two-year cumulative basis. Documentation for periods in excess of the two-year period that must be maintained under record retention regulations may be maintained off-line in a manner approved by the Executive Director. The system shall be designed so that documentation may be created daily or on demand and includes, at a minimum: (a) For each document: 1. Document title; 2. Version number of the current system software; 3. Date or time period of activity; and 4. Date and time the document was generated. i. Note: Documents that compare metered amounts to actual amounts shall include a dollar variance and a percentage variance. The percentage variance is the dollar variance divided by the metered amount. (b) Slot machine performance including: 1. By machine: i. Denomination or an indication that the machine is a multidenominational machine; ii. Slot machine number and game type; iii. Coin in; iv. Metered or actual drop (system configurable); v. Actual jackpot payout slips issued; vi. Actual fill slips issued; vii. Win; viii. Theoretical hold percentage; ix. Actual hold percentage;

x. Percentage variance (theoretical hold vs. actual hold); and xi. Projected dollar variance (i.e., coin in times the percentage variance). 2. By denomination and in total: i. Weighted average theoretical hold (i.e., floor par); ii. Combined actual hold percentage (all win divided by all coin in); iii. Percentage variance (floor par vs. combined actual hold percentage); and iv. Projected dollar variance (i.e., total coin in times the percentage variance). 1. Note 1: Floor pars are the sum of the theoretical hold percentages of all machines within a denomination weighted by coin in contribution. 2. Note 2: Drop, jackpot payouts, and win figures may need adjustment to determine the true slot machine performance. 3. Note 3: The system shall compute accurate theoretical hold percentages, based on coin-in contribution, for each multigame or multi- denomination/multi-game slot machine. 4. Note 4: The system shall compute accurate theoretical hold percentages for each gaming device which is considered a slot machine and which contains paytables with a difference in theoretical payback percentage which exceeds 4 percent between wager categories. (c) Meter drop vs. actual drop for each drop by machine and in total. (d) Meter attendant paid jackpots, cancelled credits, progressive payouts and external bonus payouts (in total) vs. actual attendant paid jackpots, cancelled credits, progressive payouts and external bonus payouts (in total). 1. Note: The system must produce a report (by machine and in total) that compares each type of attendant pay for those machines that have variances. (e) Meter machine paid and attendant paid external bonus payouts vs. external bonusing system machine paid and attendant paid external bonus payouts. (f) Meter voucher out vs. system payout receipts issued. (g) System payout receipts redeemed, by cashiering station, by shift. (h) System payout receipts issued, to include date issued, amount, sequence number and identification of gaming device where issued. (i) System payout receipt liabilities, by date issued and receipt sequence number. (j) Meter win vs. actual taxable win. 1. Note: “Meter win” equals “meter coin in” minus “meter coin out” minus “meter machine paid progressive payout” minus “meter machine paid external bonus payout” minus “total of meters accumulating attendant payouts” (excluding attendant paid cancelled credits). (k) Exception report. In the event data or parameters are changed, an exception report shall be produced to document: 1. Data or parameter altered; 2. Data or parameter value prior to alteration; 3. Data or parameter value after alteration; 4. Date and time of alteration; and 5. Identification of user that performed alteration. 6. By machine, a report of all required meter amounts read and recorded by the on- line slot system. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-99, 75-76-51

13 Miss. Admin. Code Pt. 8, R. 4.15 Waiver Provisions

Upon a showing of good cause, the Executive Director may waive any of the requirements of Part 8, Chapter 4. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-51

Chapter 5 INTEGRITY, SECURITY, AND CONTROL OF CASHLESS WAGERING SYSTEMS

13 Miss. Admin. Code Pt. 8, R. 5.1 Minimum Internal Control Standards For Cashless Wagering Systems

(a) A licensee may utilize a cashless wagering system that has been tested and approved by the Commission pursuant to Part 4, Rules 2.3 and 2.10 of these regulations. (b) Prior to utilizing a cashless wagering system, a licensee shall establish internal controls for the operation of the cashless wagering system. The internal controls shall be submitted to and approved by the Commission pursuant to Part 4, Rules 2.3 and 2.10 of these regulations. The internal control procedures must address the integrity, security, and control of the cashless wagering system and include: 1. A comprehensive overview of the system design; 2. Access and security controls to ensure patron access is limited to the registered account holder; 3. Methods and procedures for: i. Funding a digital wallet, including funding sources; ii. Withdrawing funds from a digital wallet; iii. Transferring digital funds to a slot machine; iv. Withdrawing digital funds from a slot machine; v. Transferring digital funds to a table game; and vi. Redemption of table game chips to a digital wallet; 4. Any limits the licensee will place on cashless wagering accounts and transactions; 5. Logical and physical access controls and restrictions, including; i. Which personnel will have discretionary authority over the cashless wagering system, including non- gaming personnel; and ii. How personnel interaction with the system will be monitored and logged; 6. Network security, including encryption methodology; 7. Backup, recovery, and redemption procedures in the event the cashless wagering system becomes inoperable; 8. Procedures for handling customer disputes; 9. Detailed revenue audit procedures; and 10. Provisions for responsible gaming. (c) Any amendment to a licensee’s internal controls must be submitted to and approved by the Commission prior to the implementation of any changes.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 8, R. 5.2 Wagering Accounts, Digital Wallet Transactions And Device Pairing

(a) If a patron establishes a wagering account online, the process shall require the patron to

provide at a minimum: 1. Legal name; 2. Date of birth; 3. Email address; 4. Physical address; 5. Social security number or tax ID number; and 6. Phone number. (b) A cashless wagering account must be initiated by a patron using an access control. Access controls must require the use of a unique access code for each account. The access code shall be selected by and only available to the account holder.

History

• Source: Miss. Code Ann. § 75-76-33

13 Miss. Admin. Code Pt. 8, R. 5.3 Additional Requirements For Cashless Wagering Systems

In addition to those requirements set forth for on-line slot metering systems, all cashless wagering systems submitted for approval shall: (a) Execute transactions in accordance with all applicable state and federal electronic funds transfer requirements or wagering account transfer requirements including receipting and fee disclosure requirements. (b) Employ some form of data encryption that has been approved by the Executive Director for all data that is transmitted to or from a gaming device. This standard does not apply to data that is transmitted between a gaming device and a gaming device interface component. (c) Provide a secure method for patron access to wagering accounts and promotional accounts. (d) For all patron initiated transactions, assign to each transaction a unique identifier of at least eight digits that includes the gaming device designation. (e) Be equipped to read and store the specific values indicated on the electronic digital storage meters in the gaming device, as applicable to the system. The following gaming device meter information is stored in units equal to the denomination of the device or in dollars and cents: 1. Voucher in. 2. Voucher out (for the metering of slot machine wagering vouchers and payout receipts). 3. Electronic funds transfer in (EFT In). 4. Wagering account transfer in (WAT In). 5. Wagering account transfer out (WAT Out). 6. Cashable electronic promotion in. 7. Cashable electronic promotion out. 8. Non-cashable electronic promotion in. 9. Non-cashable electronic promotion out. 10. Coupon promotion in. 11. Coupon promotion out. i. Note: System meters shall be referred to with the above terms and shall accumulate applicable system generated information as well as information stored on gaming device meters as required by Part 8, Rule 3.4. (f) Have a mechanism in place to record all required meters, as specified by Part 8, Rule 3.4,

at the time a drop box is removed and at any time specified by the end user. (g) Prevent an expiration period of less than thirty days for slot machine wagering vouchers. (h) Include on all slot machine wagering vouchers and coupons: 1. Licensee name, city and state; 2. Gaming device number or printer station number, as applicable; 3. Date and time of issuance; 4. Alpha and numeric dollar amount; 5. Sequence number; 6. Validation number; 7. Second printing of validation number on the leading edge of the voucher or coupon; 8. Unique identifier (e.g., bar code); 9. Transaction type or other acceptable method of differentiating ticket types; and 10. Expiration period or date when voucher or coupon will expire, if applicable. (i) Cause a relevant, informative message to be displayed whenever any player-initiated wagering account transfer or electronic funds transfer is being processed. (j) In the event communications between the system and a gaming device are lost, allow no more than one wagering instrument to be printed. (k) Require all electronic funds transfers to be recorded by the system. (l) Provide for on-line, real-time validation of wagering instruments (m) Be incapable of authorizing payment on a wagering instrument that has been previously paid, voided, or that is unissued, and the system shall display the status of the instrument. (n) Prevent the removal or erasure of events and transactions from any communication device until that information has been successfully transferred and acknowledged by the communication device next in succession. (o) Be designed to prevent unauthorized changes to cashless wagering system programs and databases. (p) Require the end user to initiate any remote access and shall only allow remote access by the system’s licensed manufacturer from that manufacturer’s place of business. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. §§ 75-76-51, 75-76-99

13 Miss. Admin. Code Pt. 8, R. 5.4 Documentation Required Of Cashless Wagering Systems

Documentation generated by a cashless wagering system shall be available through the system on a day, month, and year-to-date basis and for at least a previous two-year cumulative basis. Documentation for periods in excess of the two-year period that must be maintained under record retention regulations may be maintained off-line in a manner approved by the Executive Director. The system shall be designed so that documentation may be created daily or on demand and includes, at a minimum: (a) For each document: 1. Document title; 2. Version number of the current system software; 3. Date or time period of activity; and 4. Date and time the document was generated. (b) Wagering instrument issuances by date and identification of gaming device where issued,

by gaming device. (c) Wagering instrument redemptions by date and means of redemption (e.g., gaming device, cashier station, kiosk, etc.). (d) Wagering instrument liabilities by date issued and by instrument sequence number. (e) Wagering instruments expired by date issued, sequence number and identification of gaming device where issued. (f) Wagering instruments voided by date issued, instrument sequence number and identification of gaming device where issued. (g) Wagering account activity and balances, by patron and gaming device and shall include the date and time of each transfer to or from each gaming device. (h) Vouchers and coupons counted in the count room, by gaming device and by type of instrument. (i) Gaming device meter EFT in vs. system EFT in. (j) Gaming device meter WAT in vs. system WAT in. (k) Gaming device meter WAT out vs. system WAT out. (l) System promotional account activity and balances, by patron or by promotion, as applicable. (m) System wagering account activity (deposits, transfers to and from gaming devices, withdrawals, adjustments) and balances, by wagering account. (n) Gaming device meter cashable electronic promotion in vs. system cashable electronic promotion in. (o) Gaming device meter cashable electronic promotion out vs. system cashable electronic promotion out. (p) Gaming device meter non-cashable electronic promotion in vs. system non-cashable electronic promotion in. (q) Gaming device meter non-cashable electronic promotion out vs. system non-cashable electronic promotion out. (r) Gaming device meter voucher in vs. system voucher in forms accepted. (s) System voucher in vs. vouchers counted in the count room, by gaming device. (t) Gaming device meter voucher out vs. system voucher out forms issued. (u) Gaming device meter coupon promotion in vs. system coupon promotion in forms accepted. (v) System coupon promotion in vs. coupons counted in the count room, by gaming device. (w) Gaming device meter coupon promotion out vs. system coupon promotion out forms issued. (w) Slot machine performance report that properly includes the wagering activity recorded on the gaming device meters if the cashless wagering system is integrated with an on- line slot metering system. (x) For each individual adjustment made to a cashless wagering account or a promotional account, a summary of the adjustment to include: 1. Patron name and account number, or specific promotion, as applicable; 2. Amount of, and explanation for, the adjustment; and 3. Identification of the user completing and/or authorizing the adjustment. (y) All cashiering activities (e.g., log on, redemptions, deposits/withdrawals and adjustments to wagering accounts, log off, etc.), by cashier. (z) All exceptions to include: 1. Date and time of exception;

2. Gaming device number or user identification number and terminal location where the exception occurred; and 3. A description of the exception or a unique code that identifies the exception. (Adopted: 09/15/2004.)

History

• Source: Miss. Code Ann. § 75-76-51

13 Miss. Admin. Code Pt. 8, R. 5.5 Security Testing

The operator shall provide a layered approach to security within the cashless environment to ensure security storage and processing of date. In addition, the operator shall ensure: (a) All entry and exit points to open public network systems shall be identified, managed, monitored and controlled. (b) The operator shall monitor all its cashless systems in order to prevent, detect, mitigate and respond to cyberattacks. (c) Appropriate measures shall be in place to detect, prevent, mitigate and respond to common active and passive technical attacks. (d) Technical security tests on the cashless environment, including vulnerability assessments and penetration testing, shall be performed annually to guarantee that no vulnerabilities putting at risk the security and operation of the cashless system exist.

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 8, R. 5.6 Notice

(a) Licensees must notify the Commission of any unauthorized access of the cashless wagering system, including a patron’s wagering account pursuant to the provisions of Part 3, Rules 1.12 and 9.1(g) of these regulations.

History

• Source: Miss. Code Ann. § 75-76-45

13 Miss. Admin. Code Pt. 8, R. 5.7 Waiver Provisions

Upon a showing of good cause, the Executive Director may waive any of the requirements of Part 8, Chapter 5.

History

• Source: Miss. Code Ann. § 75-76-51

Part 9 Part 9: Racebooks and Sports Pools

Chapter 1 DEFINITIONS

13 Miss. Admin. Code Pt. 9, R. 1.1 General Terms (a) “Book” means a race book or sports pool licensed and approved pursuant to Miss

Code Ann. § 75-76-89(2) and this regulation. (b) “Chairman” means the chairman of the Mississippi Gaming Commission or the chairman’s designee. (c) “Communications technology” means the methods used and the components employed to facilitate the transmission of information including, but not limited to, transmission and reception systems based on wire, cable, radio, microwave, light, optics, or computer data networks. (d) “Executive Director” mean the Executive Director of the Mississippi Gaming Commission or the Executive Director’s designee. (e) “Nonpari-mutuel wager” means a race book or sports pool wager other than one offered to be included in a common pari-mutuel pool. (f) “Race book” means the business of accepting wagers upon the outcome of any event held at a track which uses the pari-mutuel system of wagering. (g) “Sports governing body” means the organization that prescribes final rules and enforces codes of conduct with respect to a sporting event and participants therein (h) “Sports pool” means the business of accepting wagers on collegiate or professional sporting events or athletic events or other similar events. (i) “Wagering account” means an electronic account that may be established by a patron at a casino property for the purpose of wagering pursuant to these regulations, including deposits, withdrawals, wagered amounts, and payouts on winning wagers. (j) “Wagering communication” means the transmission of a wager between a point of origin and a point of reception by aid of a communications technology. (k) “Wagering system” means the methodology and equipment approved by the Executive Director for accepting and recording wagers authorized by these regulations.

History

• Source: Miss. Code Ann. §§ 75-76-89 and 75-76-5.

Chapter 2 LICENSING

13 Miss. Admin. Code Pt. 9, R. 2.1 Licensing

(a) No person or entity may operate a race book or sports pool in Mississippi unless that person or entity holds a gaming license and has received permission from the Executive Director specifically permitting the person or entity to do so. (b) A person or entity that holds a casino operator’s license may offer a race book or sports pool within its licensed gaming operation after receiving approval to do so from the Executive Director.

(c) A person or entity that a casino operator contracts with to assist in the offering of race book or sports pool wagering by providing operational, technical or other associated support shall obtain a manufacturer license and a distributor license from the Commission. Applications for such a license must be made, processed, and determined in the same manner as applications for gaming licenses, using such forms as the Commission may require. Employees of such a non- casino entity shall be licensed or permitted consistent with the applicable provisions of the Gaming Control Act and these Regulations. (d) Each licensed operator of a race book or sports pool must also submit an internal control system for approval by the Executive Director prior to commencing operations.

History

• Source: Miss. Code Ann. §§ 75-76-89 and 75-76-63.

Chapter 3 OPERATIONS

13 Miss. Admin. Code Pt. 9, R. 3.1 Reserve Requirements

(a) Notwithstanding the minimum bankroll required of licensed gaming operators, each book shall comply with the following to calculate additional minimum reserve requirements specifically for the book: 1. Each book shall at all times maintain access to a cash reserve of not less than the greater of $50,000 or the sum of the following amounts: i. Amounts held by the book for the account of patrons; ii. Aggregate amounts accepted by the book as wagers on contingencies whose outcomes have not been determined; and iii. Amounts owed but unpaid by the book on winning wagers through the period established by the book for honoring winning wagers.

History

• Source: Miss. Code Ann. §§ 75-76-45 and 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.2 House Rules

(a) Each book shall adopt and adhere to written, comprehensive house rules governing wagering transactions with patrons. Such house rules must be immediately available to patrons at a book’s licensed premises. Without limiting the generality of the foregoing, the rules must specify the types of wagers accepted, how winning wagers will be paid, the effect of schedule changes, the redemption period for winning tickets, and the method of noticing odds or line changes to patrons. House rules must state that wagers may be accepted at other than the currently posted terms, if applicable. Prior to adopting or amending such house rules, a book shall submit such rules to the Executive Director for approval.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.3 Issuance and Control of Betting Tickets

(a) Immediately upon accepting a wager, other than a wager made through an electronic Wagering account, the book shall create a betting ticket on which the terms of the wager are

written. For all wagers, the book must have the capability to make a print, electronic or other approved record of the entire transaction. The book’s record of a player’s confirmation of all wagers shall be deemed to be the transaction of record and such records shall be made available upon request. (b) Betting tickets must bear the name and address of the book and instructions on ticket redemption in person or by mail or other approved method.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.4 Acceptance of Wagers

(a) Books may not accept wagers unless made with cash, chips, tokens, or other representatives of value approved by the Executive Director, or against credits made to a Wagering account as approved by the Executive Director or on credit extended in accordance with the licensee’s internal controls and the regulations of the Commission. A Wagering account must be established by a patron with the licensee, and an initial verification of the account must be done in-person by a patron at the licensee’s premises before the acceptance of any wager that will utilize a Wagering account. (b) A book shall accept wagers only on its licensed premises, and only at betting stations or kiosks/terminals approved by the Executive Director or through an on-site computerized Wagering system that has been approved by the Executive Director. (c) A book shall not knowingly accept money or its equivalent ostensibly as a wager upon an event whose outcome has already been determined. A licensed sports pool shall not accept a wager on an event unless the date and time at which the outcome of the event is determined can be confirmed from reliable sources satisfactory to the Executive Director or from records created and maintained by the book in such manner as the Executive Director may approve. (d) As part of its internal controls submission, a book shall provide the Executive Director with a catalog of the type of events that it intends to accept wagers on. The Executive Director reserves the right to prohibit the acceptance of wagers, and may order the cancellation of wagers and require refunds on any event for which wagering would be contrary to the public policies of the State. (e) No book or agent or employee of a book may accept a wager from a person who the book, agent, or employee knows or reasonably should know is placing the wager for the benefit of another for compensation, or is placing the wager in violation of state or federal law. (f) No book may hold a patron’s money or its equivalent on the understanding that the book will accept the money as a wager only upon the occurrence of a specified, future contingency, unless a betting ticket documenting the wager and contingency is issued immediately when the book receives the money or its equivalent. (g) A race book or sports pool may not accept wagers on a race or sporting event unless the wagering proposition is posted. Propositions may be posted by electronic or manual means, including printed media. (h) A book may not unilaterally rescind any wager without the prior written approval of the Executive Director.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.5 Wagers and payouts exceeding $10,000

(a) Prior to accepting any nonpari-mutuel wager in excess of $10,000 or making a payout in excess of $10,000 on a nonpari-mutuel winning wager the book shall: 1. Obtain the patron’s name; 2. Obtain or reasonably attempt to obtain the patron’s permanent address and social security number; 3. Obtain one of the following identification credentials from the patron; i. Driver’s license; ii. Passport; iii. Non-resident alien identification card; iv. Other reliable government issued identification credentials; or v. Other picture identification credential normally acceptable as a means of identification when cashing checks; and 4. Examine the identification credential obtained to verify the patron’s name, and to the extent possible, to verify the accuracy of the information obtained pursuant to paragraph (2).

(b) Subsequent to accepting a nonpari-mutuel wager in excess of $10,000 or making a payout in excess of $10,000 on a nonpari-mutuel winning wager the book shall record or maintain records that include: 1. The patron’s name; 2. The patron’s address; 3. The patron’s social security number; 4. A description including any document number of the identification credential examined (or credential information on file for known patrons); 5. The amounts of the wager and payout on the wager; 6. Window numbers or other identification of the locations where the wager and payout on the wager occurred; 7. The times and dates of the wager and payout on the wager; 8. The names and signatures of the book employees accepting or approving the wager and payout on the wager; and 9. Any other information as required by the Executive Director.

A book shall not implement alternative procedures to comply with this subsection without the written approval of the Executive Director. (c) As used in this section, a “known patron” means an individual patron known to the book employees accepting the wager and paying the winning wager, for whom the licensee has previously obtained the patron’s name and valid identification credential, and with respect to whom the licensee has on file and updates, at least every three years, all the information required to be recorded pursuant to this section. (d) As used in this section, a “listed patron” means a known patron for whom the book has requested and received approval from the Executive Director to exclude wagers and payments on winning wagers placed by the patron from the reporting requirements of this section. If the Executive Director does not deny the request for approval within 15 days of receipt of the request, the request will be deemed to be approved. All approvals may be revoked at any time at

the discretion of the Executive Director, and are conditioned that the patron’s wagers and payments on winning wagers remain subject to the identification and recordkeeping requirements of subsections (a) through (c) and of Rule 3.6 and Rule 3.7. A book’s written request to have a patron approved as a listed patron shall include: 1. The patron’s name; 2. The patron’s residence, mailing or business address; 3. The patron’s social security number; 4. The patron’s identification credential information including any document number and expiration date; 5. The patron’s birth date; 6. A recent photograph of the patron’s face or a copy of a current picture identification credential; 7. A description of the patron’s book wagering activity including the use of any wagering accounts or credit accounts including account numbers; 8. A statement as to why the book desires to have the patron approved as a listed patron and an acknowledgment that the book believes that the patron is not involved in illegal wagering activity; 9. The signature of the licensee or an officer of the licensee; and 10. Any other information as required by the Executive Director.

All records related to the patron’s activity supporting the request shall be available for commission review. (e) Each book shall report the wagers and payments on winning wagers required to be recorded pursuant to this section, excluding any wagers and payments on winning wagers accepted from listed patrons, on a “Book Wagering Report,” a form published or approved by the Executive Director that includes, but is not limited to: 1. The patron’s name; 2. The patron’s identity credential information; 3. The patron’s social security number; 4. Wager and payout amounts; and 5. Date of transactions.

Reports shall be submitted to the Commission no later than 15 days after the end of the month of the occurrence of the transaction and in such manner as the Executive Director may approve or require. Each book shall file an amended report if the licensee obtains information to correct or complete a previously submitted report, and the amended report shall reference to the previously submitted report. Each book shall retain a copy of each report filed for at least 3 years unless the Executive Director requires retention for a longer period of time.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.6 Multiple Wagers

(a) A book and its employees and agents shall not knowingly allow, and each book shall take reasonable steps to prevent, the circumvention of Rule 3.5 by multiple wagers within its designated 24-hour period with a patron or by the use of a series of wagers that are designed to

accomplish indirectly that which could not be accomplished directly. As part of a book’s efforts to prevent such circumventions relative to Rule 3.5 a book shall establish and implement wagering multiple transaction logs. (b) Each book shall record in a wagering multiple transaction log all nonpari-mutuel wagers in excess of $5,000, or in smaller amounts that aggregate in excess of $5,000 when any single officer, employee, or agent of the book has actual knowledge of the wagers or would in the ordinary course of business have reason to know of the wagers between the book and a patron or a person who the book knows or has reason to know is the patron’s confederate or agent. This record shall be made for nonpari-mutuel wagers occurring during a designated 24-hour period, within a monitoring area. (c) Each log entry in a wagering multiple transaction log shall be made by the employee accepting or approving the wager, immediately after accepting the wager, and shall include at a minimum:

1. Description of the patron (or suspected agent), which may include such identifiers as age, sex, race, eye color, hair, weight, height and attire, if the person is present when the wager is accepted; 2. Patron’s name (or suspected agent’s name), if known; 3. Window number or other identification of the location where the wager occurred; 4. Time and date of the wager; 5. Dollar amount of the wager; and 6. Signature or electronic signature of person accepting or approving the wager.

One log shall be maintained for each monitoring area, for each designated 24-hour period. A log is completed for each 24-hour period regardless of whether any nonpari-mutuel wagers occurred. At the conclusion of each designated 24-hour period, the last entry on the log shall be an indication that the end of the designated 24-hour period has occurred. A book shall not implement alternative procedures or records to comply with this subsection without the written approval of the Executive Director. (d) Each book shall aggregate all nonpari-mutuel wagers in excess of $5,000 or smaller amounts when any single officer, employee, or agent of the book has actual knowledge of the wagers or would in the ordinary course of business have reason to know of the wagers between the book and a patron or a person who the book knows or has reason to know is the patron’s confederate or agent during a designated 24-hour period within a monitoring area. (e) Before completing a wager that, when aggregated with other wagers pursuant to subsection d, will aggregate to an amount that will exceed $10,000, the book shall complete the identification and recordkeeping requirements described in subsection (a) of Rule 3.5. When aggregated wagers exceed $10,000, the book shall complete the recording and reporting requirements of Rule 3.5. (f) If a patron places a wager that pursuant to subsection d is to be aggregated with previous wagers for which a record has been completed pursuant to this section or Rule 3.5, the book shall complete the identification, recordation and reporting procedures described in Rule 3.5 for any additional wager regardless of amount occurring during a designated 24-hour period. (g) As used in this section: 1. “Designated 24-hour period” means the 24-hour period ending at midnight each day unless otherwise approved by the Executive Director.

2. “Monitoring area” means all race book and sports pool writing locations unless otherwise approved by the Executive Director. (h) The Executive Director may require a book to comply with the identification, recordkeeping, and reporting requirements of Rules 3.5 and 3.6 for pari-mutuel wagers. The Executive Director shall notify the book of the decision, in writing, and such decision shall be considered an administrative decision.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.7 Structured Wagers

(a) A book, its officers, employees or agents shall not encourage or instruct the patron to structure or attempt to structure wagers. This subsection does not prohibit a book from informing a patron of the regulatory requirements imposed upon the book, including the definition of structured wagers. (b) A book, its officers, employees or agents shall not knowingly assist a patron in structuring or attempting to structure wagers. (c) As used in this section, “structure wagers” or “structuring wagers” means to willfully conduct or attempt to conduct a series of wagers in any amount, at one or more books, on one or more days in any manner as to willfully evade or circumvent the recording and reporting requirements of Rule 3.5. The wager or wagers need not exceed the dollar thresholds in Rule 3.5 at any single book in any single day in order to constitute structuring within the meaning of this definition.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.8 Payment of Winning Wagers

(a) Except as otherwise provided in this subsection, books shall make payment on a winning wager to the person who presents the patron’s copy of the betting ticket representing the wager. A book need not make payment to a person who the book or an agent or employee of the book knows is not the person to whom the patron’s copy was issued. A book shall not make payment on a winning wager to a person who the book or its agent or employee knows or reasonably should know is collecting the payment on behalf of another for monetary consideration or in violation of federal law. A book may withhold payment of a winning wager if the patron refuses to supply identification or any other documentation required by state or federal law. (b) As used in this section, “affiliated books” are books that are in Mississippi licensed gaming establishments that share a common parent company. Presentment of the betting ticket and payment of the winning wager may be made at an affiliated book provided that: 1. An adequate accounting of the payment is kept for 3 years by both books; and 2. The payout is properly included in the computation of gross revenue of the licensee that initially accepted the wager. (c) Books shall honor winning betting tickets for 30 days after the conclusion of the event wagered upon unless a longer period is established by the book. The book shall state the redemption period on each betting ticket, in house rules and on notices conspicuously placed about the licensed premises. Payment by mail may be made only after presentment of the betting

ticket and all identification information and documentation required by state or federal law, and must be made not later than 10 days after presentment. (d) A licensed race book shall determine the winners of or payouts on wagers on horse and other animal races only with information the book receives from licensed disseminators pursuant to the requirements of these Regulations.

History

• Source: Miss. Code Ann. §§ 75-76-89 and 75-76-55.

13 Miss. Admin. Code Pt. 9, R. 3.9 Computerized Bookmaking Systems

(a) Before beginning operations, each book shall install and thereafter maintain a computerized bookmaking system meeting the specifications approved by the Executive Director.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.10 Layoff Bets

(a) A layoff wager means a wager placed by a Mississippi book operator with another Mississippi book operator for the purpose of offsetting patron wagers made pursuant to these regulations. A book operator may, in its discretion, accept a layoff wager from another Mississippi book operator. An operator placing a layoff wager shall disclose its identity to the operator accepting the wager.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.11 Prohibited wagers

(a) No wagers may be accepted or paid by any book on: 1. Any amateur sport or athletic event other than; i. Olympic sporting or athletic events sanctioned by the International Olympic Committee, subject to limitation by the Executive Director or the Executive Director’s designee in his sole and absolute discretion, and ii. Collegiate sporting or athletic events; 2. Any sport or athletic event which the licensee knows or reasonably should know, is being placed by, or on behalf of a coach or participant in that event. Each licensee shall take reasonable steps to prevent the circumvention of this regulation; 3. The outcome of any election for any public office; and 4. Any event which the Executive Director deems to be contrary to public policy. (b) A request for approval to accept wagers on an event other than a horse race, greyhound race, or an athletic sports event shall be made by a book on such forms approved by the Executive Director, and shall include: 1. A full description of the event and the manner in which wagers would be placed and winning wagers would be determined. 2. A full description of any technology which would be utilized to offer the event. 3. Such other information or documentation which demonstrates that: i. The event could be effectively supervised;

ii. The outcome of the event would be verifiable; iii. The outcome of the event would be generated by a reliable and independent process; iv. The outcome of the event would be unlikely to be affected by any wager placed; v. The event could be conducted in compliance with any applicable laws; and vi. The granting of the request for approval would be consistent with the public policy of the state. 4. Such additional or supplemental information as the Executive Director may require. The decision whether to grant approval to accept wagers on an event other than a horse race, greyhound race, or an athletic sports event shall be based on all relevant information including, but not limited to, the factors in subsection (b)(3) of this section. The Executive Director may subject any technology that would be utilized to offer the event to such testing, investigation and approval process as he deems appropriate. (c) The Executive Director may refer a request for approval to the commission for consideration, or grant, deny, limit, restrict or condition a request made pursuant to subsection (b) for any cause he deems reasonable. A book aggrieved by an administrative decision of the Executive Director may submit the matter for review by the commission pursuant to appropriate and applicable statutory and regulatory provisions. (d) The Executive Director is hereby granted the authority to issue an interlocutory order, revoking or suspending any administrative approval granted pursuant to subsection (c) for any cause deemed reasonable. An interlocutory order shall be deemed delivered and effective when personally served upon the book, or if personal service is impossible or impractical, when deposited, postage prepaid, in the United States mail, to the book at its address as shown in the records of the commission. If an interlocutory order revoking or suspending the administrative approval is issued, the effected book may request that the order be reviewed by the commission pursuant to appropriate and applicable statutory and regulatory provisions. (e) Whenever the Executive Director refers a request for approval to the commission for consideration, the request shall be deemed an application and the book which submitted the request shall submit the appropriate application fee as set by the commission. Such application shall be included on the agenda of the next regularly scheduled meeting of the commission occurring more than 10 working days after receipt of the application. The commission, after considering the recommendation, may grant, deny, limit, restrict or condition the application for any cause it deems reasonable and the decision of the commission shall be final and shall not be subject to any further administrative or judicial review. (f) A sports governing body may notify the commission that it desires to restrict, limit, or exclude wagering on its sporting events by providing notice on such form approved by the Executive Director.

History

• Source: Miss. Code Ann. §§ 75-76-89 and 75-76-5.

13 Miss. Admin. Code Pt. 9, R. 3.12 Reports of Suspicious Wagers

(a) As used in this section, “suspicious wager” means a wager which a sports pool licensee knows or in the judgment of it or its directors, officers, employees and agents has reason to suspect is being attempted or was placed: 1. In violation of or as part of a plan to violate or evade any federal, state or local law or regulation prohibiting wagering on any amateur non collegiate or collegiate sport or athletic event; 2. In violation of or as part of a plan to violate or evade any federal, state or local law or regulation prohibiting wagering by, or on behalf of, a coach or participant in a sport or athletic event; 3. Has no business or apparent lawful purpose or is not the sort of wager which the particular patron would normally be expected to place, and the sports pool licensee knows of no reasonable explanation for the wager after examining the available facts, including the background of the wager; or 4. With knowledge or intent to violate the integrity of the sport in which it was placed. Wagers that indicate cheating, manipulation, or interference with the regular conduct of sport shall also trigger the reporting requirements of Rule 3.19. (b) A sports pool licensee: 1. Shall file with the commission, by using a form developed by the commission, a report of any suspicious wager, if it involves or aggregates to more than $5,000 in funds or other assets; and 2. May file a report of any suspicious wager, regardless of the amount if the licensee believes it is relevant to the possible violation of any law or regulation. (c) The report in subsection (b)(1) shall be filed no later than 5 calendar days after the initial detection by the licensee of facts that may constitute a basis for filing such a report. If no suspect was identified on the date of the detection of the incident requiring the filing, a licensee may delay filing a report for an additional 5 calendar days to identify a suspect. In no case shall reporting be delayed more than 10 calendar days after the date of initial detection of a reportable transaction. In situations involving violations that require immediate attention, the licensee shall immediately notify, by telephone, appropriate staff of the commission in addition to timely filing a report. (d) A licensee shall maintain a copy of any report filed and the original or business record equivalent of any supporting documentation for a period of three years from the date of filing the report. Supporting documentation shall be identified, and maintained by the licensee as such, and shall be deemed to have been filed with the report. A licensee shall make all supporting documentation available to the commission and any appropriate law enforcement agencies upon request. (e) A licensee and its directors, officers, employees, or agents who file a report pursuant to this regulation shall not notify any person involved in the transaction that the transaction has been reported. Any report filed with the commission is confidential and may be disclosed only by the commission in the necessary administration of its duties and responsibilities under the Mississippi Gaming Control Act. Any report, whether written or oral, is absolutely privileged under the Mississippi Gaming Control Act and does not impose liability for defamation or constitute a ground for recovery in any civil action.

History

• Source: Miss. Code Ann. §§ 75-76-89, 75-76-21, and 75-76-29.

13 Miss. Admin. Code Pt. 9, R. 3.13 Wagers; Terms and Conditions

(a) A licensed gaming establishment where a book is located, or an affiliate of one or more of those entities that holds a gaming license, may award player loyalty program points based on wagers placed by a patron, however, such points may only be redeemed in accordance with the rules of the program. (b) The Executive Director may require a book to disclose its betting limits in its house rules and obtain approval from the Executive Director before changing those limits or modifying its house rules; and document and report, in such manner as the Executive Director may approve or require, wagering limits, temporary changes to such limits, or the acceptance of a wager or series of wagers from the same patron that exceeds such limits. The Executive Director shall notify the book, in writing, of the decision to impose such requirements and such decision shall be considered a reviewable administrative decision. (c) A book shall not offer a specialized wagering proposition, or set or move its wagering odds, lines or limits, in an attempt to provide a benefit to a patron. (d) A book shall not set lines or odds, or offer wagering propositions, designed for the purposes of ensuring that a patron will win a wager or series of wagers.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.14 Communications Technology

(a) Before installing or permitting the installation of any communications technology on the premises of a book, the book shall notify the Executive Director in writing of the location and number or other identifier of each communications technology and shall obtain the written approval of the Executive Director for each communications technology. The Executive Director may condition the approval in any manner the Executive Director considers appropriate. (b) Before a book accepts any wagering communications, the book must obtain the written approval of the Executive Director to accept such wagering communications and wagering instructions, and thereafter use only the communications technology approved for that purpose. The book must obtain written permission from the Executive Director by July 1st of each calendar year to continue using the communications technology. (c) As a condition to the granting of the privilege of having communications technology upon the licensed premises, the book shall be deemed to have consented to the authority of the Executive Director to require the immediate removal of any communications technology from the licensed premises at any time without prior notice of hearing. After any such removal, the book may request a hearing as to whether or not circumstances may warrant the permanent revocation of the privilege of having communications technology upon the premises. (d) Upon the request of the commission, a book shall provide a written consent for the commission to examine and copy the records of any telephone, telegraph, or other communications company or utility that pertain to the operation of the book.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 3.15 Sports Pool or Race Book Wagering by Electronic Means

(a) Notwithstanding any other provision of these regulations to the contrary, the Executive Director may authorize electronic wagering to be conducted within an approved casino and hotel facility on mobile devices as approved by the Executive Director. (b) Approved mobile gaming requires, at a minimum, the following: 1. The player shall establish a wagering account through the property where mobile gaming will be conducted, and an initial verification of the account must be done in- person by a patron at the licensee’s premises before the acceptance of any wager that will utilize mobile wagering; 2. Wagers shall only be placed within a facility approved by the Executive Director for mobile gaming; and 3. The Executive Director authorizes the device application for mobile gaming; provided that the Executive Director may establish any additional or more stringent licensing and other regulatory requirements necessary for the proper implementation and conduct of mobile gaming as authorized herein. (c) For the purposes of this provision, the approved facility shall include any area located within the property boundaries of the casino hotel facility that the Executive Director determines is legal for gaming. This shall not include parking garages or parking areas of a casino hotel facility. (d) The Executive Director shall ascertain and ensure, pursuant to rules and regulations issued by the commission to implement mobile gaming pursuant to this provision, that mobile gaming shall not extend outside of the property boundaries of the casino hotel facility authorized for gaming.

History

• Source: Miss. Code Ann. §§ 75-76-89, 75-76-89, and 97-33-1.

13 Miss. Admin. Code Pt. 9, R. 3.16 Required Personnel; Records and Forms

(a) Each book shall employ or engage the services of a sports wagering manager, or similar employee, with experience and expertise in the operations of a sports book. (b) Books shall create and maintain the records and reports required by this regulation in such manner and using such forms as the Executive Director may require or approve. The Executive Director may require books to create and maintain such other records and reports as are necessary or convenient for strict regulation of books. Except as otherwise provided in this regulation, books shall preserve the records required by this regulation for at least 3 years after they are made. The commission may at any time examine and copy the records of any book. Each book shall comply with all other applicable regulations of the commission to the extent not in conflict with this regulation.

History

• Source: Miss. Code Ann. §§ 75-76-89 and 75-76-33.

13 Miss. Admin. Code Pt. 9, R. 3.17 Accounting

(a) Each licensee shall prepare and maintain in a manner suitable to the commission, complete and accurate accounting records which includes the amount wagered at each book, the gross revenue generated from wagers, and federal excise taxes paid.

(b) The gross gaming revenue received by a licensee from sports wagering shall be calculated as the amount wagered minus the winnings returned to players on those wagers (before paying taxes and operating costs). Gross gaming revenue from sports wagering shall be added to gross gaming revenue from other gaming operations for taxation purposes.

History

• Source: Miss. Code Ann. §§ 75-76-89, 75-76-45, 75-76-47, and 75-76-49

13 Miss. Admin. Code Pt. 9, R. 3.18 Global Risk Management

(a) A book engaging in global risk management may provide direction, management, consultation, and/or instruction to the operator of a wagering pool located in a permissible jurisdiction concerning: 1. The management of risks associated with a wagering pool for a race or sporting event or any other event for which the wagering pool is permitted to accept wagers; 2. The determination of where lines, point spreads, odds, or other activity relating to betting or wagering are initially set and the determination of whether to change such lines, point spreads, odds, or other activity relating to betting or wagering; 3. Whether or not to accept or reject bets or wagers, to pool bets or wagers, or to lay off bets or wagers; 4. The use, transmittal, and accumulation of information and data for the purpose of providing global risk management; and 5. Any other activity associated with a wagering pool if approved in writing by the Executive Director prior to a book commencing direction, management, consultation, and/or instruction concerning the activity. (b) A book which intends to provide global risk management shall: 1. Enter into a written agreement to provide global risk management with any operator of a wagering pool to which the book proposes to provide global risk management. A copy of such executed agreement with an operator of a wagering pool located outside of Mississippi shall be provided to the Executive Director no later than the date on which the book commences global risk management for the operator of the wagering pool; 2. Provide details to the Executive Director regarding any permissible jurisdiction other than Mississippi where the book intends to provide global risk management no later than the date on which the book commences global risk management in such permissible jurisdiction; 3. No later than the date on which a book commences global risk management, submit the book’s systems of accounting and internal control utilized for global risk management to the Executive Director. Such systems must include provisions for complying with all federal laws and regulations; and 4. Provide such other information as the Executive Director may require concerning global risk management. (c) In addition to the requirements contained in subsection (b) of this section, at least 30 days prior to providing global risk management to a Mississippi licensee, a book shall submit to the Executive Director the written agreement for the global risk management provided to the Mississippi licensee. The Executive Director may object in writing to such agreements in the Executive Director’s sole and absolute discretion. If the Executive Director objects to an

agreement, the book shall not provide global risk management to the Mississippi licensee until the book has resubmitted the agreement to the Executive Director, and the Executive Director has indicated in writing that he does not object to the resubmitted agreement.

History

• Source: Miss. Code Ann. §§ 75-76-89, 75-76-103, 75-76-275.

13 Miss. Admin. Code Pt. 9, R. 3.19 Sports Integrity

(a) Licensees shall adopt approved internal controls to identify wagers which may indicate cheating, manipulation, interference with the regular conduct of sport, or violations of the integrity of any sport on which wagers were made. (b) Licensees shall file as soon as reasonably possible, but in no case more than twelve (12) hours, an integrity alert report detailing the suspicious activity to the Executive Director, or his designee, on forms provided by the Mississippi Gaming Commission. (c) If the Executive Director deems the threat credible, he may send the alert to other licensees and may suspend betting or require that wagers be voided on the event(s). (d) If a Licensee receives notice of suspicious activity at another property, they must respond within twelve (12) hours to confirm or deny similar betting trends and activity. (e) In the event of generating or receiving an alert, the licensees affected shall maintain all relevant information regarding the bet and the bettor. (f) Information contained in alerts may be shared with law enforcement, sports governing bodies, or other entities as deemed necessary by the Executive Director to maintain the integrity of wagering in Mississippi. A licensee and its directors, officers, employees, or agents shall maintain the confidentiality of information provided by a sports governing body to the licensee, unless disclosure is required by the Mississippi Gaming Control Act, the Commission or court order. (g) The Executive Director may impose any additional conditions reasonably necessary on a licensee to address risks to the integrity of sport and sports betting.

History

• Source: Miss. Code Ann. §§ 75-76-3, 75-76-89 and 75-76-103

Chapter 4 PARI-MUTUEL WAGERING

13 Miss. Admin. Code Pt. 9, R. 4.1 Policy

(a) It is the policy of the Commission that pari-mutuel betting on sporting events is materially different from other types of gaming and that the public health, safety, morals, good order and general welfare of the inhabitants of the State of Mississippi require stringent regulation of pari- mutuel wagering in accordance with applicable law, including, but not limited to the Interstate Horseracing Act; accordingly, licensees operating pari-mutuel wagering facilities on sporting events and races are required to comply with the following regulation in addition to the previous regulations of Part 9, and to any regulation applicable to gaming licenses in general.

History

• Source: Miss. Code Ann. §§ 75-76-5, 75-76-55, and 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 4.2 Definitions

(a) “Breakage” means odd cents arising from the computation of odds and payouts on amounts wagered on a simulcast horse race, as determined by the law governing the sending track. (b) “Casino simulcasting” means the simultaneous transmission by picture of running or harness horse or greyhound races conducted at racetracks to casino licensees and pari-mutuel wagering at Race books operated by casino licensees on the results of those races. (c) “Entrant” means a participant in a race, sporting event or contest upon which a wager may be placed as to the participants’ finishing position in the event. (d) “Entry” means two (2) or more entrants competing in a given event and coupled because of common ties as determined by the regulations governing racing at the sending track. (e) “Event” means an individual race, game or contest wherein pari-mutuel wagering is conducted upon the competing entrants. (f) “Field” means all the entrants in an event whose assigned numerical designation exceeds one less than the numbering capacity of the post positions on the tote board. (g) “Gross pool” means the total amount of money wagered on the outcome of a particular event without any deduction therefrom. (h) “Licensee” means as used herein, a person to whom a pari-mutuel wagering license has been issued by the Mississippi Gaming Commission. (i) “Out-of-State sending track” means a racetrack in a jurisdiction other than the State of Mississippi which is authorized to conduct casino simulcasting and the operator of which is lawfully permitted to conduct a horse or greyhound race and to provide simulcast horse or greyhound races to a casino licensee. (j) “Pari-mutuel” means a system of wagering on a race or sporting event whereby the winners divide the total amount bet, after deducting commission, fees, and taxes, in proportion to the amount individually wagered. (k) "Pari-mutuel machine" means a mechanical, electrical or other device which is connected to a totalisator and which generates pari-mutuel tickets and credit vouchers, reads pari-mutuel tickets and receives from the totalisator the amount to be paid for winning, cancelled or refunded pari- mutuel tickets, and reads credit vouchers and calculates the amount to be paid therefor. (l) "Pari-mutuel ticket" means a paper ticket or electronic transaction representing such ticket issued by a pari-mutuel machine or a self-service pari-mutuel machine which represents a wager on a simulcast horse race. (m) "Simulcast horse race" means a running or harness horse race or greyhound race conducted at a racetrack which is simultaneously transmitted by picture to a casino licensee. (n) “Totalisator” means a computer system which directly or indirectly through one or more other totalisator systems, receives pari-mutuel wagering information, calculates payoffs for winning pari-mutuel tickets, generates reports with respect to such information, and automatically ceases wagering, in accordance with internal controls, in the event that the transmission of data from a sending track has been interrupted. (o) “Win, place, show” refers to the entrants respectively placing first, second and third in the outcome of an event; also refers to the respective wagers or pools.

History

• Source: Miss. Code Ann. §§ 75-76-5, 75-76-55, and 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 4.3 Simulcasting

(a) A casino licensee may, with approval from the Executive Director and subject to all applicable state and federal statutes and regulations, conduct casino simulcasting and pari-mutuel wagering on races from an out-of-state sending track which has been approved by the applicable racing regulatory body of those states to participate in casino simulcasting. (b) A sending track which transmits any race to a casino simulcasting facility in this state shall offer to transmit such races to all casino simulcasting facilities in this state. (c) Agreements for casino simulcasting between a casino licensee and a sending track shall be in writing and shall be filed with the Executive Director. Such agreements may be negotiated on behalf of casino licensees by an entity jointly established by casino licensees. (d) Every agreement between a casino licensee and a sending track shall define, and provide for the distribution of, outstanding pari-mutuel tickets, and define, and provide for the allocation of losses in the event of, a minus pari-mutuel pool. Every such agreement shall also provide for manual merging in the event of a systems or communications failure and shall further set forth a procedure, acceptable to the Executive Director, which shall be followed in the event that manual merging is not possible. (e) Except as otherwise provided, sums wagered in a casino simulcasting facility on horse races at an out-of-State sending track shall be combined with comparable pari-mutuel pools at the out- of-State sending track, and the types of wagering, takeout, distribution of winnings, rules of racing and percentage of deposits remaining undistributed from pari-mutuel pools after payment is made to winning ticket holders shall be determined in accordance with the law or policy applicable to the out-of-State sending track. (f) All manufacturers, suppliers and repairers of simulcast wagering equipment, including totalisators, pari-mutuel machines, self-service pari-mutuel machines and credit voucher machines, to casino licensees shall be licensed in accordance with the provisions of the Gaming Control Act and the Mississippi Gaming Commission regulations.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 4.4 Commissions and taxes

(a) A licensee shall deduct from a gross pool commissions as established by the sending track. Applicable gaming taxes shall be applied to the commission deducted. The tax due shall not be reduced by minus pools or otherwise.

History

• Source: Miss. Code Ann. §§ 75-76-89 and 75-76-177.

13 Miss. Admin. Code Pt. 9, R. 4.5 Accounting

(a) Each licensee shall prepare and maintain in a manner suitable to the commission, complete and accurate accounting records, information and data which shall be generated by an approved computer system and which reflects the following on a daily basis for each event upon which pari-mutuel wagering was held: 1. Gross amount wagered on each event; 2. Gross and net amounts of each pool; 3. Commissions deducted;

4. Tax and breakage on each pool; 5. Number and value of tickets sold on each pool; 6. Final odds; 7. Payoff prices; and 8. The amount paid on all winning pari-mutuel tickets.

(b) A daily reconciliation of all cash received and paid on each pool of each event shall be recorded along with the cash count of the money room. (c) The gross revenue received by a licensee from pari-mutuel wagering shall be calculated and added to gross gaming revenue from other gaming operations for taxation purposes. Gross revenue includes the amount of the commission received by a licensee that is deducted from a pari-mutuel wagering pool, plus breakage and the face amount of unpaid winning tickets that remain unpaid for a period specified by the Mississippi Gaming Commission

History

• Source: Miss. Code Ann. §§ 75-76-45, 75-76-49 and 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 4.6 Operation of pari-mutuel facilities

(a) The pari-mutuel operation shall be conducted by the licensee under the control and supervision of a mutuel manager who, along with all ticket sellers, cashiers, and money counters, shall be an employee of the licensee. A pari-mutuel operation shall be conducted in an area of the licensee’s premises authorized for gaming and approved in advance by the Executive Director. (b) Should any portion of the mutuel operation be subcontracted to any person or entity other than the licensee, such arrangement shall first be approved by the Executive Director which may require such person or entity or their employees to be licensed. (c) All patron complaints made on property must be registered at an information window; a written report as to the substance and disposition of the complaint shall be made, and copy thereof delivered to the Commission as soon as reasonably practicable. (d) The general operation of the pari-mutuel shall be directed by a mutuel manager, who also may serve as a licensee’s sports book manager, who shall have extensive experience in the operation of pari-mutuel wagering. (e) Total responsibility shall rest with the mutuel manager for: 1. The entire operation of pari-mutuel wagering in accordance with this regulation; 2. The correct computation of pools, odds, breakage, payouts, commissions, and taxes; and 3. The conduct of all persons directly or indirectly employed in the mutuel department. (f) Any emergency arising from the operation of the pari-mutuel, not covered by this regulation and requiring immediate action, shall be handled by the mutuel manager who shall make the necessary decisions and render a report to the commission within 24 hours.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 4.7 Computation Equipment

(a) An electronic totalisator shall be used for each event upon which pari-mutuel wagering is conducted, unless written consent is given by the commission to use different equipment or methods. The equipment must automatically: register the total amount wagered in each mutuel pool; the total amount wagered on each participant in a game or race for win, place and show; the total amount wagered on each combination in each exotic pool offered by the sending track, and shall issue a ticket representing each wager comprising each required total. (b) A license may not be issued until such tests as required and performed by the commission have been made and the equipment conforms to the requirements of these regulations, the commission, and any other applicable governing body of the pari-mutuel wagering that is to be conducted. (c) The licensee may be required to conduct such test as the commission may prescribe from time to time upon totalisators and ancillary equipment. (d) Failure of the totalisator to meet the requirements as established by these regulations and the commission shall be grounds for ordering the suspension of pari-mutuel wagering until such time as the deficiencies have been corrected. (e) The totalisator shall calculate the total amounts in each pool and the amounts wagered on each entrant or combination from time to time as wagering progresses. Win odds, probable pays and will-pays shall be prominently displayed to the wagering public on simulcast video generated from the sending track. (f) The totalisator shall be designed so that all ticket machines shall automatically lock and close upon the activation of the off bell which must be activated no later than the start of the event. (g) A report of any faulty operation of the totalisator or tote board shall be filed with the commission within 24 hours following the malfunction. (h) Whenever the totalisator mechanism fails and a Mississippi licensee’s casino simulcast wagers are not included in the host track pools, all moneys wagered on the sporting event shall be refunded. (i) Pari-mutuel wagering records shall be retained for a period of 3 years.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 4.8 Wagers

(a) All pari-mutuel wagers shall be made only in cash, chips, tokens or other representatives of value of the licensee and must be consummated on the licensed premises. (b) No pari-mutuel ticket shall be sold to, or cashed for, a person under 21 years of age. (c) Resale of pari-mutuel tickets between individuals is prohibited and constitutes grounds for ejection from the premises wherein pari-mutuel wagering is conducted. (d) Pari-mutuel tickets shall evidence or contain: 1. A designation for each race, game or event; 2. Entrant or player number; 3. Race or game number; 4. Date; and 5. Amount wagered. (e) Pari-mutuel tickets shall be sold only through designated ticket windows or through approved self-service Pari-mutuel machines or other approved electronic method.

(f) When two or more entrants in an event are coupled on the same mutuel ticket, there shall be no refund unless all of the entrants so coupled are scratched from the wagering before the event begins. (g) When no more than five entrants start an event, show wagering on the event may be deleted or cancelled. (h) When no more than four entrants start an event, both place and show wagering on the event may be deleted or cancelled. (i) Wagering on an event may be prohibited when less than three entrants start an event and both entrants are coupled in an entry. (j) A refund shall be made of wagers placed on an entrant scratched before the betting has closed.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 4.9 Wagering, Computations and Payoffs

(a) Sums wagered at a casino simulcasting facility on horse races at an out-of-State sending track shall be combined with comparable pari-mutuel pools at the out-of-State sending track, and the types of wagering, takeout, distribution of winnings, rules of racing and percentage of deposits remaining undistributed from pari-mutuel pools after payment is made to winning ticket holders shall be determined in accordance with the law or policy applicable to the out-of-State sending track. (b) A sending track shall at all times inform a casino simulcasting facility of scratches and pool change information, and any scratch from a simulcast horse race after wagering has commenced shall be verified immediately from the sending track to the casino simulcasting facility. (c) All pari-mutuel machines in a casino simulcasting facility shall be locked at off-time. (d) No ticket may be issued after the totalisator has been locked or wagering has ceased, whichever occurs first. (e) Prior to the opening of wagering on any simulcast horse race, an operator must clearly publish its rules governing the cancellation of pari-mutuel tickets. (f) From time to time as wagering progresses, win odds, probable pays and will-pays shall be prominently displayed to the wagering public on simulcast video generated from the sending track.

History

• Source: Miss. Code Ann. § 75-76-89.

13 Miss. Admin. Code Pt. 9, R. 4.10 Payment on wagers

(a) Payment of wagers will be made only on presentation of appropriate pari-mutuel tickets. Any claim by a bettor that a wrong ticket has been delivered to him at the mutuel ticket window must be made before leaving the window, and thereafter no such claim may be considered. (b) A licensee shall cash all valid unmutilated winning tickets when such tickets are presented for payment during the course of the day when sold and for the period of at least 30 days thereafter. Subsequent thereto, the licensee shall have no liability relating to such tickets, providing the premises are conspicuously posted with signs stating that winning tickets must be presented for payment within 30 days from date of issuance (or longer period if chosen by the licensee), and that each ticket issued shall also bear a similar notation

(c) The licensee shall have no obligation or liability for tickets thrown away, lost, changed, destroyed, or mutilated beyond identification. In the case of mutilated tickets when the portions of the tickets presented are sufficient to definitely identify the ticket as a winning ticket, the licensee may accept the mutilated ticket and make payment without the necessity of the ticket holder submitting a claim to the commission. (d) In the event of a dispute over the validity of a ticket, the licensee may accept from the holder of such ticket a written and verified claim to be filed by the licensee with the commission, and the commission will render a decision as to payment. (e) Every licensee shall carry on its books an account which shows the total payoff amount of outstanding unredeemed mutuel tickets representing winning tickets not presented for payment. (f) A payoff shall not be less than the amount wagered. (g) The entire loss resulting from a minus pool shall be borne by the licensee. (h) Any error made in posting on the tote board of the payoff prices shall be promptly corrected, and the public immediately advised of the correction. (i) If an error occurs in payment upon tickets cashed or entitled to be cashed, and as a result the pool involved is not correctly distributed among the winning ticket holders, the following shall apply: 1. The licensee shall bear the cost of any overpayment. 2. In the event of under-payment: i. The licensee shall accept timely claims, pay each claim, or a part thereof, which it determines to be valid; notice shall be given to any claimant whose claim is rejected. ii. Any person whose claim is rejected by the licensee may, within 30 days from the date notice of rejection is received, request the commission to determine the validity of the claim. The failure to file such request with the commission within 30 days shall constitute a waiver of the claim, provided the claimant has received notice of a right of appeal to the commission. iii. A hearing before the commission shall be held on each claim timely filed, and the commission may determine a claim to be valid, in whole or in part, and thereafter order the licensee to make payment accordingly. iv. Claims not filed with the licensee within 30 days inclusive of the date on which the under-payment was discovered shall be deemed waived, and the licensee shall have no further liability therefor.

History

• Source: Miss. Code Ann. § 75-76-89.

Part 10 Part 10: Charitable Gaming

Chapter 1 DEFINITIONS

13 Miss. Admin. Code Pt. 10, R. 1.1 Definitions

The terms defined in the Mississippi Gaming Control Act have the same meaning in these rules as in the Charitable Bingo Law unless otherwise indicated. As used in these rules, the following terms have the following meanings, unless the context clearly indicates otherwise.

(a) “Act” means the Charitable Bingo Law, Sections 97-33-51 through 97-33-81, 97-33-101 through 97-33-109, 97-33-201 and 97-33-203, Mississippi Code of 1972. (b) “Adjusted Gross Receipts” means all revenue remaining from bingo operations after payment of prizes and payment of fees required by the Commission. (c) “Alternate Supervisor” means the person who is designated to supervise all activities and be responsible for the conduct of all games of a particular session in the absence of the bingo supervisor. (d) “Applicant” means the organization, its members, officers, agents, or employees who have applied for any license from the Commission. (e) “Automatic marking” means that numbers are marked on electronic card faces without a need for interaction by the participant. The only input required by the automatic marking functionality is by means of the calling system. The participant loads cards by input of the receipt number and/or the control number (a number identifying the cards sold to that player). (f) “Bingo” means a game of chance in which a right to participate is sold to a player and prizes are awarded, that is: 1. Played with a card, sheet, or an electronic representation thereof, bearing numbers or symbols; 2. Played with the participant covering, marking or revealing the numbers or symbols, as objects similarly numbered or designated are drawn from a receptacle and orally called; in the case of electronic representations, the requisite covering, marking or revealing may be accomplished electronically to match objects similarly numbered or designated and stored in memory in advance as winners, or which are generated randomly by an electronic process; 3. Won by the player who first covers, marks or reveals a previously designated arrangement of numbers or symbols; and 4. Played on the premises leased or owned by a licensed charitable organization and during the bingo location’s regular hours of conducting bingo games. 5. The term "bingo" includes pull-tabs made available as a companion game to bingo and played on the premises. The term "bingo" does not include any game which is played via television, telephone, satellite dish or any other telecommunications transmission or receiving device. 6. Any electronic device used to produce an electronic representation of a pull-tab must maintain an inventory recorded in computed memory, not on cartridge memory, of the numbers of winners and losers. It must also be equipped with tamper-proof electric meters as a backup to the computer memory. It may not dispense cash or coins. Paybacks will be dispensed by printed ticket only. The printer shall maintain

duplicate records of all transactions on paper, electronic file located within the sealed logic area or on web-based software. All such electronic pull-tab devices shall be approved by the Commission. Nothing herein shall prohibit the use of non-volatile memory devices that possess the ability to be checked for program integrity to a 99.9% level of competence at the site of the location owner by the Commission utilizing limited specialized equipment. Such non-volatile devices (other than standard EPROMs) shall be submitted to the Commission for final approval. 7. Other than those games as authorized by statute, bingo does not include a game whereby the player contributes to a pot and if such player wins a bingo game on a predetermined number that person wins, in addition to the regular prize, the contents of the pot. No other type game or raffle in which a person makes any wager on the chance of winning any prize may be offered or held in connection with the authorized bingo games as described in this section. Violation of this subsection may result in suspension and/or revocation of the charitable organization's bingo license. (g) “Bingo location” means the place or places where a charitable organization licensed by the Mississippi Gaming Commission has been approved to hold, operate or conduct bingo games. (h) “Bingo supervisor” means the person designated to supervise all activities, be responsible for the conduct of all games of a particular session of bingo and may enter into agreements with manufacturers, distributors and operators on behalf of the charitable organization. A bingo supervisor or alternate supervisor shall be designated for every session of bingo held by a licensed charitable organization. (i) “Chairman” means the Chairman of the Mississippi Gaming Commission. (j) “Charitable bingo supplies” means any supplies (except raffle tickets), equipment, device, goods or wares intended for use in the conducting of any charitable bingo provided by law. It includes, but is not limited to, the receptacle and numbered objects to be drawn from it, the master board upon which the objects drawn are placed, the cards or sheets bearing numbers or other designations to be covered, the boards or signs, however operated, used to announce or display the number or designation as they are drawn, and all other articles essential to the operation, conducting and playing of bingo or pull-tabs. It also includes any computer system, software or cash register designed for the primary purpose of accounting for and reporting the transactions involved in the selling of share or shares to participate in charitable bingo. Bingo game sets commonly manufactured and sold as children's games for a retail price of twenty dollars or less shall be presumed not to be bingo equipment for these purposes unless used by a licensee in the licensee's bingo activity. (k) “Charitable limited license” means a special license for the conducting of limited fund-raising bingo games for the benefit of a person, family or group of persons who, because of circumstances which cause a financial crisis of an emergency nature, are in need of immediate fund-raising relief. (l) “Charitable Organization” means: 1. Any nonprofit organization domiciled in this state that is tax exempt under Section 501 (c) or (d) of the United States Internal Revenue Code and which has on file with the Commission either a tax exemption letter issued by the United States Internal Revenue Services, or a certified copy of its application for such tax exempt status if the Commission determines that the organization is likely to be granted the tax exempt status, and is: i. Any chapter or post domiciled in this state of a nationally chartered

organization whose membership is composed of former members of the military forces of the United States of America or whose membership is composed of members of the Merchant Marine Veterans Association; ii. Any nonprofit civic, educational, wildlife conservation organization or religious organization domiciled in this state. If an organization which has on file with the Commission a certified copy of its applications for a tax exemption under Section 501 (c) or (d) of the U. S. Internal Revenue Code is not granted the exemption within twelve (12) months from the date of such application, the organization's license shall be subject to revocation pursuant to Section 97-33-61. 2. Any senior citizen recreation club, which is defined as an organization sanctioned by the local council on aging and composed of members age sixty (60) years or older, the sole function of which is to provide amusement and diversion for its members. Any organization that does not meet the standards stated above, may petition the Commission for a charitable limited license. (m) “Commercial lessor” means any person or other entity, other than a bona fide nonprofit organization licensed to conduct charitable bingo games, who leases any building, structure, or premises to organizations licensed to conduct charitable bingo games. (n) “Commission” means the Mississippi Gaming Commission. (o) “Contact Person” means the individual designated by the charitable organization to interface with the Commission. (p) “Distributor” means any person or other entity who sells, offers for sale, or otherwise furnishes to any licensed charitable organizations or operators, gaming supplies or equipment for use in the conducting of a bingo game. (q) “Electronic Bingo Card Dauber” means an electronic device or apparatus used by a bingo player to monitor bingo cards purchased at the time and place of a licensed charitable organization’s bingo session, and which: 1. Provides a means for numbers announced by a bingo caller to be input to a bingo players cards; 2. Compares the numbers input to the numbers contained on bingo cards previously stored in the electronic database of the device; 3. Identifies winning bingo patterns; and 4. Signals only the bingo player when a winner bingo pattern is achieved. (r) “Executive Director” means the executive director of the Mississippi Gaming Commission. (s) “Expenses” means ordinary, necessary and reasonable costs incurred in preparation for, or in the conduct of, the bingo operation. It does not include childcare or babysitting services, door prizes or promotional items given to participants, or transportation charges for participants. (t) “Gross Receipts” means all revenue received from bingo operations. (u) “Licensee” means any organization licensed by the Commission to conduct charitable bingo, or licensed as a manufacturer, distributor, or operator of supplies or equipment. (v) “Manufacturer” means any person or other entity who manufactures for sale, offers for sale, or otherwise furnishes, any gaming supplies or equipment for use in the conducting of a bingo game. A manufacturer can only sell to licensed distributors and licensed operators. (w) “Net proceeds” means the gross amount collected from participants less the actual prizes or winnings paid, less the actual cost or expenses of conducting the bingo game, less any administrative penalties imposed by any state agency against the charitable organization, and less

any other expense authorized under the Charitable Bingo Law or any rule promulgated thereunder. In determining "net proceeds" for manual pull-tabs see 13 Miss. Admin. Code Pt. 11, R. 2.1(b). (x) “Operator” means a person or other entity who leases to the charitable organization an electronic facsimile pull-tab device or labor saving device as described in Section 97-33-53. An operator’s license will also be issued to those persons or entities which repair and/or service electronic pull-tab devices. This person or entity may not be engaged in any other form of bingo operations, including but not limited to, being a distributor, manufacturer, or commercial lessor. (y) “Participant” means a patron of a bingo establishment who participates in a bingo game. (z) “Pay-out” means the number of credits won by a player in a video game, whether used to play additional games or collected on a ticket voucher, in proportion to the amount of cash and credit wagered. (aa) “Prize Pay-out” means the total amount paid to one or multiple winners of any one bingo game, pull-tab, or electronic pull-tab winner. (bb) “Pull-tabs” means single or banded tickets or cards each with its face covered to conceal one or more numbers or symbols, where one or more cards or tickets in each set have been designed in advance as winners. "Pull-tabs" shall also mean any device for dispensing pull-tabs or any electronic video finite pull-tab device approved under these rules. “Pull-tabs” shall also mean any progressive pull-tabs whereby the progressive pull-tab jackpot must be established only through the play of deals bearing a licensed manufacturer’s form number where each jackpot must use the identical form number for each deal contributing to the prize jackpot. The amount dedicated to the progressive jackpot must be predetermined by the manufacturer and built into the payout structure for the game. The dedicated amount must be printed by the manufacturer on either the flare for each game or on each ticket in each game. (cc) “Pull-tab set or deal” means any form, series or group of pull-tabs having the same serial number. In the case of an electronic video pull-tab device, a deal shall consist of four equivalent sets of pull-tabs, each set being identical to the other three, except as specified herein. (dd) “Reasonable Market Rental Rate” is that rate at which similar facilities or equipment available for similar purposes in the community may be leased or rented. (ee) “Session” means any five (5) hour time period within one day. A bingo location may hold no more than two (2) sessions in one day or more than eight (8) sessions in one week. A bingo location who holds only one (1) session per week may conduct one six (6) hour session. A day means a period of time of 24 hours from midnight to midnight. A week means that period of time from 12:01 a.m. Monday, through midnight the following Sunday. The session begins when the first ball is called, or when the first pull-tab is sold, or when play is activated on the electronic pull-tab devices, whichever comes first. The session will end at midnight, or when the last ball is called, the last pull-tab is sold or the electronic pull-tab devices are no longer available for play. If a bingo game extends beyond midnight, then a new session has begun on the next day. In no case may a bingo location hold more than eight (8) sessions in one week, regardless of the total number of hours played in each session. The minimum number of hours of traditional call bingo play must be: 1. For a class “a” bingo location, one (1) hour. 2. For a class “b” bingo location, one-half (1/2) hour. 3. For a class “c” bingo location, one-quarter (1/4) hour. However, if a bingo location is operating under the eighty (80) hour exception found in 13 Miss. Admin. Code, Pt. 11, R. 3.1(b), the session begins when the first ball is called, with the same

time between each ball call of the game. (ff) “Ticket voucher” means a printed ticket tendered to the player, upon request, for any remaining credits on the electronic pull-tab device. In the case of electronic finite video pull- tabs, each set being identical to the other three, except as specified herein. The voucher is redeemable for cash. The electronic pull-tab device printer shall print a ticket voucher to the player at the completion of game play if there are any remaining credits on the game. The original ticket voucher and/or duplicate audit copy must be legible and maintained as a permanent record for three (3) years. The minimum information printed on the ticket voucher shall consist of the following: The name of the licensee, the serial number of the machine, the time of day that the ticket was printed, the date, the sequential number of the ticket voucher and the value of the prize. The printing mechanism of the electronic pull-tab device shall have a paper sensing device that will prevent play if there is no longer any paper in the printer or, in the alternative, if there is insufficient paper to print a ticket voucher or an audit copy. In the case that the machine senses “paper out,” it shall void the previous cash ticket and print another upon recovery. The electronic pull-tab device must display a message when the paper is low or out on the electronic device's monitor.

History

• Source: Miss. Code Ann. §§ 97-33-53, 97-33-55, 97-33-59, and 97-33-201.

13 Miss. Admin. Code Pt. 10, R. 1.2 Fees

(a) Charitable Organization License Fees: 1. $50 fee due at time of application. 2. $50 fee per charitable organization-owned machine per month or any part of a month. Fees are due by the 15 th of succeeding month in which machine was used. 3. 1% of gross bingo proceeds of each session and 2 ½ % of all net proceeds from electronic pull-tab devices and manual pull-tabs held by a Class “A” bingo location are due by the 15 th of the succeeding month in which proceeds were earned. 4. ½ of 1% of gross proceeds of each bingo session and 2 ½ % of all net proceeds from electronic pull-tab devices and manual pull-tabs held by a Class “B” bingo location are due by the 15 th of the succeeding month in which proceeds were earned. 5. ½ of 1% of gross proceeds of each bingo session and 2 ½ % of all net proceeds from electronic pull-tab devices and manual pull-tabs held by a Class “C” bingo location are due by the 15 th of the succeeding month in which proceeds were earned. (b) Manufacturer’s License Fees: 1. $2,500 fee due at time of application. (c) Distributor’s License Fee: 1. $2,500 fee due at time of application. 2. 2 ½ % of net proceeds on manual pull-tabs are due by the 15 th of the succeeding month in which proceeds were earned. 3. $50 per machine per month (or any part of a month) is due by the 15 th of the succeeding month in which the machine was used. 4. $15 per table top and handheld electronic dauber unit per month (or any part of a month) is due by the 15 th of the succeeding month in which machine was available for use. (d) Operator’s License Fee: 1. $1,500 fee is due at the time of application.

2. $50 fee per machine per month (or any part of a month) is due by the 15 th of the succeeding month in which the machine was used. (e) Special Charitable Limited License Fees: 1. $50 fee is due at time of application.

History

• Source: Miss. Code Ann. §§ 97-33-55, 97-33-107, and 97-33-201.

Chapter 2 LICENSING

13 Miss. Admin. Code Pt. 10, R. 2.1 Eligibility for a Charitable Bingo License

A license to conduct charitable bingo shall only be issued to a charitable organization meeting the qualifications set forth in Mississippi Code Ann. 97-33-53(b) and that has a history of documented charitable activity within the three (3) year period immediately preceding its application, unless waived by the Commission for good cause shown. Such waiver shall be issued at a regular Commission meeting prior to the Commission meeting in which the application for bingo is considered. A charitable organization as defined in Mississippi Code Ann. 97-33-53(b) (1972), may only obtain one license from the Commission to conduct charitable gaming and may only conduct such authorized games at one location.

History

• Source: Miss. Code Ann. §§ 97-33-53 and 97-33-55.

13 Miss. Admin. Code Pt. 10, R. 2.2 Charitable Limited License

The Commission may issue a charitable limited license for the conducting of limited fund-raising bingo games for the benefit of a person, family or group of persons who, because of circumstances which cause a financial crisis of an emergency nature or are in need of immediate fund-raising relief. This license application must be on the forms provided by the Commission and is subject to the following restrictions:

(a) The bingo games shall consist of no more than two (2) bingo sessions annually by the same person, family or group of persons; and (b) The total amount of prizes which may be awarded on any calendar day under such charitable limited license shall not exceed Fifteen Thousand Dollars ($15,000.00) in cash or other thing or things of value; and (c) All net proceeds shall go to the specific need for which the games are conducted, as outlined in the application for such license; and (d) Complies with all other provisions of Sections 97-33-51 through 97-33-81.

A charitable limited licensee is only authorized to offer for play traditional call bingo. A charitable limited licensee may not offer pull-tabs nor electronic representations of bingo or pull-tabs.

History

• Source: Miss. Code Ann. § 97-33-59.

13 Miss. Admin. Code Pt. 10, R. 2.3 Application for a License to Conduct Charitable Bingo

(a) An application to conduct charitable bingo must be submitted to the Commission upon forms prescribed and provided by the Commission. No application will be deemed received if the information is incomplete or illegible. Any such document will be returned to the applicant.

(b) Any license issued pursuant to these rules may be issued for a period not to exceed three (3) years. (c) The application shall include the name of the charitable organization, address, current officers, all members of the board of directors, partners or principals of the charitable organization, the bingo supervisors and alternate supervisors, federal tax identification number, federal tax exemption certificate, a copy of any rental or lease agreements or contracts where bingo is to be conducted, where applicable, all proposed contracts between the charitable organization and/or the bingo location and any other entity for whatever service, product(s), etc. and any other applicable information. A list of bingo employees shall be submitted to the Commission prior to operation. The application shall include details outlining the financial support that the applicant intends to provide for the purpose for which the charitable organization is created. The details shall include an in depth description of the program services as well as the percentage of the bingo net adjusted gross receipts allocated to each program. The application shall include all expenses it expects to incur with respect to the operation of bingo. Failure to make material progress in meeting, on an annual basis, the requirements of the bingo plans submitted may be grounds to deny, suspend and/or revoke the license of the charitable organization. (d) The application is not complete unless it is dated and signed by the proposed bingo supervisor and the head of the charitable organization, who shall be the president, chairman of the board of directors, or the chief executive officer or other duly elected head of the charitable organization, certifying the information contained in the application is true and correct to the best of their knowledge. It is the intent of this section that the legally responsible official of the applicant charitable organization shall sign in their representative capacity and the application shall contain all information and statements required by the Commission. (e) All bingo games conducted must comply with all the requirements of these rules and to the requirements of the Charitable Bingo Law and such other laws and rules as may be applicable. (f) The Commission will not accept statements of purpose provided to the Secretary of State that are so general and/or vague that the Commission cannot interpret what programs the charitable organization seeks to perform. The charitable organization will either be required to more specifically define its purpose or attach specific program descriptions with budget information included.

History

• Source: Miss. Code Ann. § 97-33-55.

13 Miss. Admin. Code Pt. 10, R. 2.4 Expiration of License/Reissuance

(a) All licenses issued pursuant to these rules expire three (3) years from the date of issuance unless otherwise noted by the Commission. (b) All applications for new licenses must be submitted to the Commission on forms prescribed by the Commission, all fees must be paid and the new license must be issued by the Commission before any bingo activity can be conducted or any work can be performed. (c) Upon application for a renewal license, agents will be provided with records of the charitable organization, including but not limited to: checking account statements, cancelled checks, minutes, payroll information and lists of assets. Failure to satisfy all license criteria contained in the Charitable Bingo Law and these rules may result in denial of a license.

History

• Source: Miss. Code Ann. § 97-33-57.

Chapter 3 SUPPLIES

13 Miss. Admin. Code Pt. 10, R. 3.1 Supplies

(a) Game sheets, packets, cards, pull-tabs, etc. may only be purchased or received by the bingo location from a distributor who has obtained a license from the Gaming Commission.

(b) Bingo locations shall provide bingo cards or paper sheets to the participants for use during sessions. No participants shall be allowed to play on any bingo cards other than what is provided by the bingo location except for those participants who are legally blind. The bingo location is responsible for proper accounting of all game shares sold to legally blind participants. (c) All game sheets, packets, and cards must be pre-numbered by the manufacturer. An inventory report shall be maintained which indicates the total amount of paper on hand, purchases and set prices for each type of sheet, packet or card. Requests to change the set prices must be approved by the Commission in writing prior to the licensee initiating sales at the new price. Changes can only be implemented on a quarterly basis or after audit of inventory and approved in writing by the Commission. The daily session report will indicate the total amount of paper distributed and the prices of each. The game sheets, cards and any packets may not be cut or altered in any way and must be offered to the participants in the configuration or format as purchased from the distributor. (d) The bingo location is required to maintain on-site and immediately available for inspection by agents of the Commission all purchase invoices of all bingo supplies. (e) Detailed inventory records must be maintained on all bingo supplies. These records must be verified by means of a physical count made at least monthly by a member of the charitable organization who is not associated with bingo operations. A record of the physical count must be maintained on-site and immediately available for inspection by agents of the Commission. (f) The distributor of all gaming supplies shall maintain all sales invoices to bingo locations and provide bingo location’s purchase information to the Commission on monthly reports. This would include both sales to charitable organizations and operators. The report must include the name of the bingo location, the date of sale, the type of game supplies, the number imprinted upon those supplies and the cost of those supplies to the charitable organization.

(g) No distributor shall sell, offer to sell, or deliver any charitable bingo product to any bingo location in this State, and no bingo location shall buy or accept delivery of any licensed charitable bingo supplies except on terms of immediate payment, or on terms requiring payment no later than the fifteenth day following that on which actual delivery is made or use of electronic daubers and electronic pull-tab machines have started. If any payment is not made when due, the distributor shall immediately notify the Mississippi Gaming Commission thereof and the Commission may notify all distributors licensed in the state in writing of the default and thereafter no distributor shall sell any charitable bingo products to the bingo location in default on any terms other than immediate payment until otherwise authorized by the Commission. (h) No manufacturer shall sell, offer to sell or deliver any charitable bingo products to any

licensed distributor in this state, and no distributor shall buy or accept delivery of any licensed charitable bingo supplies except on terms on file with the Commission. If any payment is not made when due, the manufacturer shall immediately notify the Commission thereof and the Commission may notify the manufacturers licensed in the state of the default and thereafter no person shall sell any charitable bingo products to the licensed distributor until otherwise authorized by the Commission. (i) No distributor shall accept payment from any bingo location for any gaming supplies unless that payment is in the form of a check drawn on the charitable organization's separate charitable bingo account. (j) A charitable organization may not transfer surplus supplies or equipment to another charitable organization except upon written application to the Commission, on forms provided by the Commission, and with written permission of the Commission. Records must be maintained to fully document the transfer and receipt between both organizations.

(k) Charitable organizations and operators must obtain bingo supplies and equipment from distributors licensed by the Commission. (l) Licensed distributors must obtain bingo supplies and equipment from manufacturers licensed by the Commission.

History

• Source: Miss. Code Ann. §§ 97-33-67(4) and 97-33-69(6).
• Source: Miss. Code Ann. § 97-33-79.
• Source: Miss. Code Ann. § 97-33-107(1).
• Source: Miss. Code Ann. §§ 97-33-67(4) and 97-33-79.

Chapter 4 RELIGIOUS ORGANIZATIONS

13 Miss. Admin. Code Pt. 10, R. 4.1 Religious Organizations

(a) Fees based on gross proceeds shall not be collected from any bingo game held by a religious organization if all the following are satisfied:

1. The religious organization must have been in existence for at least ten (10) years; 2. The bingo games must be held on-premises owned by the religious organization; 3. No person may be compensated for operating the game; and 4. The gross proceeds for the bingo games operated by the religious organization has not exceeded Fifty Thousand Dollars ($50,000.00) for the calendar year.

(b) The religious organization is required to submit monthly reports and all information as is required from all licensed charitable organizations. (c) “Gross proceeds” is the total amount received from the participants of the bingo games. Prizes awarded and other expenses are not deducted from this figure to calculate gross proceeds. When gross proceeds are equal to Fifty Thousand Dollars ($50,000.00) for a calendar year, the religious organization must begin submitting fees based on gross proceeds and electronic pull-tab devices as provided by class of organization for the remainder of the calendar year. (d) It is the responsibility of the religious organization to anticipate when fees must be remitted. All procedures established for the payment of fees must be followed by the religious

organization. (e) The religious organization is not exempt from any provisions or rules such as reporting requirements or the number of sessions which may be held, age of participants, the amount of prizes which may be awarded, or any other rule governing bingo operations. The religious organization is not exempt from the fee imposed on pull-tab bingo.

History

• Source: Miss. Code Ann. § 97-33-107(c).
• Source: Miss. Code Ann. §§ 97-33-107(j), 97-33-107(c), and 97-33-71.

Chapter 5 BINGO REQUIREMENTS

13 Miss. Admin. Code Pt. 10, R. 5.1 Sign Required

(a) The bingo location is required to create and post in an obvious and conspicuous place close to the entrance a sign which contains a list of the games to be played during each session and the prizes which may be awarded, and the following message and information: 1. TO ALL BINGO PARTICIPANTS: PLEASE REPORT ANY IRREGULARITIES IN PROCEDURES TO THE MISSISSIPPI GAMING COMMISSION CHARITABLE GAMING DIVISION 2. The sign shall contain the address and phone numbers including the toll free number of the Mississippi Gaming Commission. (b) The sign shall be posted at all times when bingo is being conducted. Failure to post the sign at the bingo location as required could result in suspension and/or revocation of the charitable organization’s license.

History

• Source: Miss. Code Ann. § 97-77-65.

13 Miss. Admin. Code Pt. 10, R. 5.2 Returns/Due Dates

(a) All bingo returns and reports are due on the 15 th of the following month along with applicable remittance. Such returns, reports, and remittance must be postmarked by the 15 th of the following month. If the 15 th falls on a Saturday, Sunday, or a legal holiday, postmark from the next business day will be accepted. (b) The Commission may establish differing reporting requirements for different classes of licensees, so long as they are not more restrictive than those required by statute. Such classes of bingo locations are as follows: 1. Class "A" shall be composed of bingo locations which conduct bingo games in which the prizes awarded, or could be awarded, total an aggregate amount in excess of $5,000 per session; 2. Class "B" shall be composed of bingo locations which conduct bingo games in which the prizes awarded, or could be awarded, total an aggregate amount of not less than $2,500 and not more than $5,000; 3. Class "C" shall be composed of bingo locations which conduct bingo games in which the prizes awarded, or could be awarded, total an aggregate amount of less than $2,500. (c) The report must be filed on forms as supplied by the Commission. A report is due each month by each bingo location, even if there has been no activity. Not filing or filing past the due date could result in the suspension and/or revocation of the charitable organization’s license. Other appropriate changes may be announced from time to time by the Commission.

(d) The report must be signed under oath by the designated bingo supervisor whose name is on file with the Commission and the individual who prepared the report. (e) The law requires each bingo location that conducts bingo to report to the Commission in such manner and on such forms as the Commission prescribes. The statutes provide that all reports and supplemental records filed by the operation are public record and open to public inspection in accordance with the Public Records Act of 1983.

History

• Source: Miss. Code Ann. §§ 97-33-52(4), 97-33-71, 97-33-65, and 97-33-107(k).

13 Miss. Admin. Code Pt. 10, R. 5.3 Required Records

(a) A separate checking account at a local bank within the state of Mississippi shall be established for bingo by the charitable organization. Only proceeds from bingo may be deposited in such account, and only expenses relating to bingo may be drawn against such account. Any expense that the charitable organization would not incur without a bingo hall is considered a fundraising expense versus a charitable organization’s expense. Of the charitable organization’s fundraising expenses, authorized bingo expenses are outlined as follows: 1. The charitable organization may pay as compensation for all persons involved in the holding, operating or conducting of any licensed game(s) of chance an amount not to exceed Six Hundred Dollars ($600.00) per session; 2. The actual and reasonable costs of purchasing or leasing necessary supplies, equipment and materials to be used exclusively in the holding, operating or conducting of the bingo game; and 3. The actual and reasonable costs incurred in obtaining and performing necessary payroll, bookkeeping, security and janitorial services for the holding, operating or conducting of the bingo game. The reasonableness of the amounts of and the necessity for an expense authorized by this subsection shall be determined by the Commission. All disbursements related to bingo operations shall be made only by electronic transfer or check drawn on this special bank account, with the sole exception of prize payouts of under Six Hundred Dollars ($600.00) per prize. All written checks shall be made payable to a specific person or corporation, and no written check shall be made payable to cash. All electronic transfers drawn against the bingo account must be approved in writing by the bingo supervisor or designated alternate, and all written checks drawn against the bingo account must be signed by the bingo supervisor or designated alternate supervisor on file with the Commission. Only expenses authorized by statute are allowed and all disbursements from the separate bingo account must be in strict compliance with established policy of the charitable organization. All disbursements including any electronic transfers, must be fully supported by permanently filed receipts, invoices, or other sufficient documentation and must be properly and accurately recorded. (b) Any compensation paid to any worker must be made by electronic transfer or written check from the charitable organization's bingo checking account. Items provided or donated to the charitable organization without payment, or any cost incurred by the charitable organization, must be documented and include evidence from the donor that no cost was incurred by the charitable organization. (c) All receipts from bingo, except for cash used to make prize pay-outs of less than Six Hundred Dollars ($600.00) per prize, and that amount retained as a cash bank, shall be deposited in the

charitable organization’s bingo account no later than the next banking day following the bingo session. The start-up bank may be retained from session to session or deposited at the discretion of the bingo supervisor. All deposit slips must be sufficiently completed as to identify the date and source of the receipts being deposited. (d) The charitable organization’s bingo account must be reconciled monthly by someone in the charitable organization other than the person(s) authorized to sign checks on that account. (e) All deposit slips, bank statements, with photo-copied canceled checks, and other bank records must be maintained as permanent record and must be available for inspection by a duly authorized representative of the Commission (f) Each bingo location shall create and maintain accurate, legible and permanent records of all transactions pertaining to revenue and expenditures of the bingo operation. All such documents will be completed in non-erasable/permanent ink. Detailed supporting and subsidiary records which identify all revenues, expenses, assets and liabilities must be kept. These records include, but are not limited to: sales invoices and receipts, purchase invoices and receipts, shipping documents, lease agreements, inventory records, and the records of daily bingo activity (session reports) as prescribed by the rules. All records must be maintained within Mississippi for at least three (3) years. Failure to maintain complete and accurate reports could result in suspension and/or revocation of the license. (g) In addition to other record requirements, a session report shall be completed on forms provided by the Commission for each session of bingo that is held. If two (2) sessions are held on the same day, a separate report must be made for each session and be both completed and received by the Commission via electronic mail prior to the start of the next session. This record shall become permanent and must be available for inspection at all times by duly authorized representatives of the Commission. The completed report must be signed by the bingo supervisor or alternate supervisor, whose name is on file with the Commission, attesting to its correctness. Page 2 (Game Report) and page 7 (Receipts & Prize Payouts) of the session report shall be sent via electronic mail to the assigned MGC bingo agent prior to the start of the next session. Other signatures of workers will also be required as specified. (h) The session report will be completed in non-erasable ink and will include the following information: 1. General information i. Name of licensed charitable organization d/b/a bingo location ii. Date iii. Session number iv. Time session began v. Time session ended vi. Total number of participants vii. Copy of program run for that session 2. Schedule of workers i. Total number of workers ii. A complete list of workers, including both names and social security numbers, must be maintained on file at the bingo location and available for inspection by agents of the Commission. iii. The job duty to each worker (such as responsible for money count, or sale of paper sheets and runner, etc.) iv. Hours actually worked by each worker

v. Compensation paid to each worker--if none, indicate “NONE” vi. Signature of each worker attesting to correctness of hours and compensation vii. Total amount of compensation paid to all workers 3. Game report i. List by name, number and type of each game offered during the session (include pull-tabs and electronic pull-tab devices, if applicable). The program for each session must be attached to the session report. ii. Total number by type of game sheets, packets and/or cards sold to participants iii. Cost to participant per each type game sheet, packet or card sold iv. Names of worker(s) selling game sheets, packets, cards, and their signature(s) verifying the numbers of paper supplies issued and prices paid by the participants 4. Total receipts from bingo and electronic daubers i. Total receipts is the gross amount received from all participants from the sale of packets, game sheets, cards, etc., from the session. Do not include receipts from pull-tabs or electronic pull-tab devices in this total. This figure is attested by signature of the worker who has duty of cashier and another worker who verified the money count. 5. Prize report i. List the prize(s) awarded for each individual game (exclude pull-tab and electronic devices). ii. List the names of winners for each prize awarded and, if there are multiple winners, all names must be listed for each prize. iii. List the type of games for which prizes were awarded. The winning game sheet or card must be retained for a period of ninety (90) days, or until an agent does an inspection and instructs that said sheets may be destroyed. A list of winners must be retained for verification for a period of three (3) years. iv. List the amount of each prize awarded. If the prize is non-cash, a description of the prize and its fair market value shall be recorded. Also include any door prize which is awarded in a session. A door prize must be included in the per session prize limitation. v. List the total amount of all prizes for the session (exclude pull-tab and electronic pull-tab devices) vi. A receipt must be written for each prize in excess of Six Hundred Dollars ($600.00) that is awarded to a bingo participant. A receipt must be written for each prize of any amount for a variable bingo game and pull-tab progressive game (excluding consolation prizes and instant winners). The receipt booklet must be a three-part form with pre-printed numbers. The name of the charitable organization and the bingo location must be pre-printed on the receipt. 1. The original copy of the receipt is to be completed and given to the bingo participant upon determination that the participant has won a prize. The second copy is to be given to the cashier for verification of the prize when the prize is paid to the winning participant to

ensure that the original had not been tampered with or altered in any way. This second copy must be signed by the participant when he or she receives his or her winnings. This second copy is permanent record and must be attached to the session report. An unsigned prize receipt will void the prize. The third copy must be maintained in its original booklet to be used as verification and maintained on file for at least three (3) years. 2. The following information is to be included on the receipt: i. Date ii. Session number iii. Game played iv. Prize amount awarded v. Name of winner printed legibly vi. Home address of winner, including street number, city and state vii. Social security number or driver’s license number of winner viii. Signature of winner ix. Signature of worker who awarded the prize x. Signature of cashier who paid the prize 3. If the prize is Six Hundred Dollars ($600.00) or more, a check must be written to the winner. This amount must be included in the total prizes awarded. 6. Pull-tab bingo. i. List by name and serial number each deal being sold during the session. ii. List the number of pull-tabs sold. iii. List the price per pull-tab sold. iv. List the name of worker(s) selling pull-tabs and their signature verifying total issued, sequence numbers and price. v. List the total receipts from pull-tabs. 7. Prizes awarded for pull-tab bingo. i. The participant must sign all winning pull-tabs beginning with third tier from the bottom and up or the participant must sign if pull-tab is twenty-five dollars or more. A copy of the payout sheet, which is included in each deal, must be maintained as evidence of all receipts and prize payouts. ii. Total amount of prizes awarded for pull-tabs. Any winning player receiving Six Hundred Dollars ($600.00) or more and/or any amount of a progressive pull-tab win, must sign a receipt as described in 13 Miss. Admin. Code Pt. 10, R. 5.3(h)(5)(vi). iii. The winning tabs must be retained for a period of ninety (90) days or until an agent does an inspection and instructs that said pull-tabs may be destroyed. 8. Total receipts from electronic pull-tab devices. The money count report must be attached to the session report. 9. Total prizes paid to electronic pull-tab device players. All payout tickets must be signed by the participant and the cashier. All tickets must be attached to the session report for verification. Any winning player receiving Six Hundred Dollars ($600.00)

or more must sign a receipt as described in 13 Miss. Admin. Code Pt. 10, R. 5.3(h)(5)(vi). 10. Total of all receipts from bingo, including electronic daubers, pull-tabs, and electronic pull-tab devices 11. Total of all prizes awarded from bingo, including electronic daubers, pull-tabs, and electronic pull-tab devices 12. Win/Loss (gross receipts less prizes awarded) 13. Cash reconciliation i. List beginning cash on hand and have two (2) workers verify with signatures. ii. List cash receipts for the session. iii. List cash disbursements prizes under Six Hundred Dollars ($600.00). iv. List ending cash on hand and have two (2) workers verify with signatures. v. List check receipts for the session. vi. Must contain the signature of the bingo supervisor or designed alternate supervisor verifying all information on the report is true and correct. 14. For each progressive pull-tab jackpot, the bingo location must maintain, at a minimum, the following records for a period of three (3) years from the date that the progressive game prize was awarded or the game was considered closed: i. date the progressive jackpot started; ii. method or rules detailing how game is played and how the potential jackpot is won; iii. dollar amount of contribution into the jackpot per deal; iv. dollar amount of the jackpot cap; v. accumulated jackpot totals including any backup jackpots; vi. form number, serial number and sale date of the deals contributing to the jackpot; and vii. name and identification of the winner with the date and amount won. This information is to supplement the prize report information required by 13 Miss. Admin. Code Pt. 10, R. 5.3(h)(5)(vi). viii. Once a bingo location offers a progressive pull-tab for play, the bingo location must continue to offer that particular progressive pull-tab at every subsequent session at that location until the jackpot and any backup jackpots are won.

History

• Source: Miss. Code Ann. §§ 97-33-65, 97-33-69, 97-33-71, 97-33-73, 97-33-75, and 97-33-109.

13 Miss. Admin. Code Pt. 10, R. 5.4 Value of Prizes

(a) The value of all non-cash prizes shall be equal to the fair market value or normal and reasonable selling price of such prize. (b) If the prize has been donated to the charitable organization, then the donor of such prize shall prepare an invoice or statement to the charitable organization which states that the item is donated to the charitable organization and states the normal selling price or fair market value of such item. This documentation will be attached to the session report in which the prize was awarded. (c) The value of the non-cash prize is included in the total prize limitation which may be awarded for any session.

(d) The value of donated prizes may not be reported as an expenditure.

History

• Source: Miss. Code Ann. §§ 97-33-67(2) and 97-33-71(1)(e).

13 Miss. Admin. Code Pt. 10, R. 5.5 Authorized Expenditures

(a) All net proceeds derived from a bingo game authorized by the Charitable Bingo Law shall be expended only for the purposes for which the charitable organization is created. The use of bingo proceeds for any other purpose to include start-up costs, attorney fees, appellate costs or any other cost not routinely incurred by the charitable organization must be preapproved by the Commission in writing. Approvals are not necessarily prohibited but the Commission must determine if they are necessary, reasonable, and specifically described in the charitable organization’s statement of purpose. No attorney fees will be approved to defend any individual in an administrative, civil or criminal matter. (b) None of the proceeds of a bingo game shall be used to purchase, construct or improve a building, hall or other facility solely for the purpose of conducting or operating a bingo game.

(c) The total amount of prizes which may be awarded in any one (1) session by a bingo location shall not exceed Seven Thousand Five Hundred Dollars ($7,500.00) in cash or other items of value offered as a prize or Eight Thousand Dollars ($8,000.00) if only one (1) session is held in any one week. The total prize limit does not include paybacks for pull-tabs or electronic representations.

(d) The total amount of prizes which may be awarded in any one day under a charitable limited license shall not exceed Fifteen Thousand Dollars ($15,000.00).

(e) No commission, salary, compensation, reward or recompense, including but not limited to bonuses, incentive pay, loans, granting or use of bingo cards without charge or at a reduced charge, shall be paid or given to any person holding, operating, conducting or assisting in holding or operating any licensed bingo game, either directly or indirectly by the charitable organization except as authorized by Section 97-33-69 (3) and these rules.

(f) The charitable organization is prohibited from compensating any member or other person who, acting on behalf of the charitable organization, organizes, arranges, directs, oversees, consults, confers or in any manner participates in the holding of a bingo game other than the exception as authorized by statute and described in this section and in 13 Miss. Admin. Code Pt. 12, R. 5.4. Violation of this provision by the charitable organization could result in suspension and/or revocation of the license issued to the charitable organization. The burden of proof shall be upon the licensed charitable organization to prove this provision is not violated. The financial

records of the charitable organization, aside from the required bingo records, must be made available to the Commission upon request for verification. (g) A bingo location may compensate any person involved in holding, operating, or conducting any licensed game or games, provided that the total amount paid as such compensation shall not exceed Six Hundred Dollars ($600.00) for any one (1) six-hour session, and that no such employee shall be paid for more than one job function. 1. Individuals to whom such compensation may be paid include the bingo supervisor, alternate supervisors, callers, runners, cashiers, etc. The bingo supervisor and alternate supervisors, if compensated, must have a written contract on a per session basis. 2. However, neither the bingo supervisor, nor any alternate supervisor, nor any person related to any supervisor or alternate by blood, marriage, or business relationship, while being compensated as a bingo supervisor, shall receive any other compensation directly or indirectly from the charitable organization.

(h) Authorized expenditures include the actual and reasonable costs of purchasing or leasing necessary supplies, equipment and materials used exclusively in the holding of the bingo game.

(i) Authorized expenditures include the actual and reasonable cost incurred in obtaining and performing necessary bookkeeping, security and janitorial services for the holding, operating or conducting of the bingo game.

(j) No charitable organization shall pay any consulting fee to any person for any service performed in relation to the conducting of a bingo game, nor pay any concession fees to any person who provides refreshments to the participants.

(k) No lease which provides for a rental arrangement for premises or a lease of equipment may provide any payment in excess of the reasonable market rental rate. No lease payment may be based on a percentage of gross receipts or profits derived from any bingo game.

(l) The monthly report required to be filed with the Commission must list each item of expense incurred and each item of expenditure made or to be made. (m) In order to ensure that authorized bingo games are actually held for the benefit of a charitable organization, and that a bingo location’s net proceeds are expended for the purposes for which the charitable organization was created, a bingo location’s authorized expenses may not exceed sixty percent (60%) of its adjusted gross receipts from bingo activities. Where

authorized expenses exceed 60% of adjusted gross receipts due to the Covid-19 pandemic but the bingo location demonstrates to the Commission a practice of legitimate operation of games, the Commission may vote to allow temporary suspension of the 60/40 requirement. Any request for temporary suspension of the 60/40 requirement must be submitted in writing to the Commission along with supporting documentation for vote at the next monthly Commission meeting. The net adjusted gross receipts, remaining after authorized expenses, must be devoted to the specific purposes for which the charitable organization was created. Not less than sixty-five percent (65%) of the net proceeds shall be expended for direct program services. For the purpose of this section, direct program services are grants, allocations, specific assistance to individuals and approved charitable services. Direct program services do not include administrative expenses or compensation of officers, directors, etc. of the charitable organization. 1. Adjusted gross receipts are to be calculated by taking the bingo location’s gross receipts (all revenues received from bingo operations) and subtracting the amount paid out as prizes and the amount of fees paid to the Commission. 2. The authorized expenses which may be incurred by a licensed charitable organization are set forth in Section 97-33-69 of the Mississippi Code and in 13 Miss. Admin. Code Pt. 10, R. 5.5(g)-(i). 3. Every licensed charitable organization shall be in compliance with the requirements of this provision for all periods of twelve consecutive months. Failure to be in compliance with the requirements of this provision may be grounds for the Commission’s denial, suspension and/or revocation of a charitable bingo license. 4. When the Commission conducts an audit of the charitable organization and/or bingo books/records, the charitable organization will provide sufficient private office space for agents and/or authorized representatives of the Commission to utilize during said audit. (n) To ensure that all net proceeds derived from a bingo game authorized by the Charitable Bingo Law shall be expended only for the purposes for which the charitable organization is created, the Commission shall have the power to audit the flow of funds, whether gross proceeds or net proceeds, that are expended by the charitable organization to maintain at least 65% of the net proceeds from the bingo location to be expended for direct program services. The Commission shall have the power to deny, suspend and/or revoke the license of the licensee or the application of the applicant if the licensee or applicant fails to comply with the provisions of this section.

History

• Source: Miss. Code Ann. § 97-33-52(3).
• Source: Miss. Code Ann. § 97-33-67(2).
• Source: Miss. Code Ann. § 97-33-59(1).
• Source: Miss. Code Ann. § 97-33-69(2).
• Source: Miss. Code Ann. § 97-33-69(3).
• Source: Miss. Code Ann. § 97-33-69(7)(a).
• Source: Miss. Code Ann. § 97-33-69(7)(b).
• Source: Miss. Code Ann. § 97-33-69(8).
• Source: Miss. Code Ann. § 97-33-69(9).
• Source: Miss. Code Ann. §§ 97-33-52, 97-33-53(b)(1), 97-33-57, 97-33-69, and 97-33-107.

Part 11 Part 11: Charitable Gaming Equipment

Chapter 1 BINGO HARD CARDS

13 Miss. Admin. Code Pt. 11, R. 1.1 Bingo Hard Cards

(a) Every bingo location is prohibited from using non-disposable bingo cards (slide, shutter or hard cards). A non-disposable bingo card is a reusable card such as a hard card or other card that contains a slide or shutter.

History

• Source: Miss. Code Ann. §§ 97-33-109(2)(f) and 97-33-71(3).

13 Miss. Admin. Code Pt. 11, R. 1.2 Assigned Fixed Value Required on Disposable Bingo Cards

For the purpose of this rule, a disposable bingo card is a card made of paper or other suitable material which is designed or intended for use at a single bingo occasion.

(a) Each bingo location will assign a fixed value for the amount it intends to charge, but in no case less than Six and a half cents ($0.065) for each card face of each cut and collation of a disposable bingo card it intends to use, sell, or otherwise furnish in the conduct of its gaming sessions. If the bingo location is a Class “B” or “C” bingo location, the prize for any game of a session may be a predetermined percentage of gross receipts from the sale of cards or cuts and collations for each game or group of games of a session. Prior to the call of the first ball of the game, the bingo location is required to announce the value of the prize to be given for that game. If, at the completion of any session, a Class “B” or “C” bingo location exceeds its prize limitation, that bingo location will be changed to the class in which the prize amount warrants for the remainder of the licensing period, and if changed to a Class “A” bingo location, the bingo location must post a sign which contains a list of the games to be played during each session and the prizes which may be awarded. The predetermined percentage is based on cut and collation and shall not be changed except upon a quarterly basis. (b) Each bingo location will submit a list to the Commission with the assigned fixed values it intends to charge for each disposable or electronic dauber bingo card that it intends to sell. The value of electronic dauber bingo cards must be the same as the disposable bingo cards. (c) All sales of disposable and electronic dauber bingo cards must be in accordance with the fixed assigned values as reported to the Commission. (d) Neither the fixed assigned values nor the cuts and collations of disposable or electronic dauber bingo cards can be changed without prior written approval from the Commission. (e) Bingo locations may not: (1) discount the price of any disposable or electronic dauber bingo card; or (2) accept in trade, in lieu of full or partial payment, any disposable or electronic dauber bingo card.

History

• Source: Miss. Code Ann. §§ 97-33-109(2)(f) and 97-33-71(3).

Chapter 2 MANUAL PULL TABS

13 Miss. Admin. Code Pt. 11, R. 2.1 Manual Pull Tabs

(a) A bingo location is prohibited from selling a manual pull-tab for an amount different than the face value of the pull-tab. A bingo location may not give away or sell pull-tabs at a discounted price. (b) The proceeds from manual pull-tab bingo is subject to a fee of 2 ½ % to be paid by the licensed distributor. This fee is due on or before the 15 th of each month along with the monthly report of purchases of bingo supplies and equipment by all bingo operations. Any fee received after the due date shall be subject to a penalty of 25%. 1. Proceeds are defined, for the purpose of this fee, to be the gross receipts from the sale of manual pull-tabs, less prizes awarded for manual pull-tabs. No other cost or expense shall be deducted. 2. The licensed distributor shall pay this fee on manual pull-tabs as a condition of its license, as well as collect and remit to Mississippi all applicable sales and/or use taxes. Failure to pay the fee or taxes shall result in the suspension and/or revocation of the license. (c) The revenue from bingo, electronic bingo or electronic pull-tab bingo is not subject to this fee, nor are the prizes awarded for bingo, electronic bingo or electronic pull-tab bingo allowed to be deducted in the calculation of net proceeds for pull-tabs. (d) Manual pull-tab revenue and prizes must be accounted for separately from bingo, electronic bingo or electronic pull-tabs. The bingo location is required to maintain records in such a way that the revenue prizes and costs may be easily identified upon review or audit. (e) A report shall be submitted monthly by the bingo location to the Commission that details the total number of pull-tabs sold, the price of each pull-tab (to the participant) and totals the prizes awarded. The report must be accompanied by an invoice(s) from the purchase of the pull-tabs to verify the cost deducted.

(f) If the auditor is unable to identify because of the lack of proper records, it will be assumed that all bingo revenue is subject to a 5% penalty versus a 2 ½ % fee, due to substandard record keeping.

History

• Source: Miss. Code Ann. §§ 97-33-107(b), 97-33-65, and 97-33-107(g).
• Source: Miss. Code Ann. §§ 97-33-107(b), 97-33-65, and 97-33-107(g).

13 Miss. Admin. Code Pt. 11, R. 2.2 Standards for Construction of Manual Pull-Tabs

(a) Pull-tabs shall be constructed so that it is impossible to determine the covered or concealed number, symbol, or set of symbols on the pull-tab until it has been dispensed to and opened by the participant by any method or device, including but not limited to: the use of a marking, variance in size, variance in paper fiber, or light. (b) All pull-tabs, except banded and latex covered pull-tabs, will be constructed using a two or three ply paper stock construction. (c) The manufacturer shall conspicuously print on the face or cover sheet the name of the manufacturer or trademark identifying the manufacturer. The serial number shall be printed on the game information side of the ticket. On banded pull-tabs, the serial number and the name of the manufacturer or trademark identifying the manufacturer shall be printed so both are readily visible prior to opening the pull-tab. Each deal or set shall have a separate serial number, and no serial number used on a deal of pull-tabs may be repeated on that same manufacturer’s form number within a three-year period.

(d) The cover sheet or "open here" side may show the participant how to open the pull-tab to determine the symbols or numbers. The cover sheet will contain perforated and/or clean-cut openings centered over the symbols or numbers on the back of the face sheet in such a manner as to allow easy opening by the participant after purchase of the pull-tabs, while at the same time, not permitting pull-tabs to be opened prematurely in normal handling. Perforation should exist on both horizontal lines of the opening with either a perforated or clean-cut edge on the vertical or elliptical line where the tab must be grasped for opening after bending the edge of the ticket down. On latex covered pull-tabs, either the face or back of the pull-tab may show the participant how to remove the latex to determine the symbols or numbers. On banded pull-tabs, the bands shall be color coded when individual serial numbers are repeated. (e) Pull-tabs will be glued or sealed so that it is impossible to determine the covered or concealed numbers, symbol or set of symbols on the pull-tab until it has been dispensed to and opened by the participant. (f) All pull-tabs shall be of a uniform thickness within a series. Vendable pull-tabs are defined as pull-tabs that are sold out of mechanical pull-tab dispensing devices approved for use in this state. The single opening and double-sided tabs shall have an overall bulk thickness of .045 inch per pull-tab plus or minus .003 inch. The multiple opening tabs shall have an overall bulk thickness of .026 inches per pull-tabs plus or minus .002 inches. (g) Non-vendable pull-tabs are defined as those that cannot be sold out of mechanical pull-tab dispensing devices approved for use in this state. Non-vendable pull-tabs may be dispensed from fishbowls, receptacles, or spindles; however, in no case shall non-vendable pull-tabs be dispensed from the packing box. Manufacturers of non-vendable pull-tabs may use any thickness that complies with all other rules. In no instance will any type of pull-tabs be approved where the winning tabs are distinguishable by visible variation in dimension. (h) All pull-tabs within a single pull-tab series shall also be uniform in length and width and may not vary by more than 3/64 inch between series. Vendable pull-tabs which are single opening or double sided tabs shall be 1 7/8 inches x 1 inch, plus or minus 1/8 inch. Multiple opening vendable pull-tabs shall be 3 1/2 inches x 1 7/8 inches, plus or minus 1 inch. Non-vendable pull-tabs may be manufactured in any size as long as the pull-tabs are in compliance with all other rules. (i) For winner protection, a unique symbol or printed device shall be placed in the high tier instant winner window so as to ensure that the high tier instant winner is made unique. (j) It should not be possible to detect or pick out winning from losing tickets through variations in printing, graphics or colors, especially those involving different printing plates.

History

• Source: Miss. Code Ann. §§ 97-33-107(b), 97-33-65, and 97-33-107(g).

13 Miss. Admin. Code Pt. 11, R. 2.3 Assembly and Packaging of Pull-Tabs

(a) Manufacturers of pull-tabs shall manufacture, assemble, and package each pull-tab series in such a manner that none of the winning pull-tabs, nor the location or approximate location of any of the winning pull-tabs can be determined in advance of opening the pull-tabs in any manner or by any device including, but not limited to, any pattern in manufacture, assembly, packaging, markings, or by the use of a light. (b) Winning pull-tabs shall be randomly distributed and mixed among all other pull-tabs in the series. The series shall be assembled and packaged with special care so as to eliminate any pattern as between series, or portion of series, from which the location or approximate location of any of the winning tabs may be determined.

(c) When the series is packaged in more than one package, box or other container, the entire series of individual pull tabs shall be mixed in such a manner that no individual can determine the position or approximate location of any of the winning pull-tabs or determine whether any one package or portion of a series contains a larger or smaller percentage of winning pull-tabs than the balance of the series. The packages, boxes or other containers shall not be numbered or marked in any way so as to distinguish one from the other. When a series is packaged in more than one package, the entire series or deal shall be put into play at the same time. Each series of pull-tabs shall contain a packing slip placed inside the package containing the name of manufacturer, serial number, date the series was packaged, and the name or identification of the individual who packaged the series. This information may be printed on the back of the flare or the outside of the packages, boxes or containers in which the pull-tabs are packed. (d) No distributor or manufacturer of pull-tabs shall sell or otherwise provide to any individual or entity in this state, or for use in this state, any pull-tabs series that does not conform to the following: 1. Maximum 6,000 tickets per deal; 2. $1000 maximum prize for an individual ticket; 3. Minimum payback percentage: i. Ticket price: .25. Minimum Payback: 65%. ii. Ticket price: .50. Minimum Payback: 65%. iii. Ticket price: 1.00. Minimum Payback: 65%. iv. Ticket price: 2.00. Minimum Payback: 65%

History

• Source: Miss. Code Ann. § 97-33-77.

Chapter 3 ELECTRONIC PULL-TAB DEVICES.

13 Miss. Admin. Code Pt. 11, R. 3.1 Electronic Pull-Tab Devices

(a) Electronic pull-tab machines or devices which have been approved for use by the Commission will be equipped with tamper-proof electric meters. The devices will not dispense cash or coins. Payback will be dispensed by printed ticket only. The printer must maintain duplicate copies of all transactions. These duplicate copies of all transactions may be located on electronic files and stored within the sealed logic area and/or be accessible to the Gaming Commission. (b) In order for bingo location to have electronic pull-tab devices, the bingo location must conduct a traditional bingo session at least once a week. The bingo location will be limited to the possession of fifteen (15) electronic pull-tab devices which must be permitted by agents of the Gaming Commission prior to actual operation. A daily report form provided by the Commission is required to be prepared on the electronic pull-tab device activities. If the bingo location holds two (2) sessions within one (1) day, a report for both sessions is required and must be completed and submitted via electronic mail to the Commission prior to the start of the next session. The date and the beginning and ending times of the session(s) must be included on the report. In no event may an amusement machine at the bingo location simulate play of poker, keno, lotto or lottery, twenty-one, blackjack, or any other card game or simulate play of any type of slot machine regardless of whether or not the machine has a payback feature or awards extra play credits. Time limits on the number and length of sessions notwithstanding, pull-tabs, video pull-tabs or video bingo games may be played for up to eighty (80) hours per week. The bingo location must report all out-of-session activity gross receipts and prizes on a separate report provided by the

Commission. Violation of this subsection may result in suspension and/or revocation of the charitable organization’s license. (c) Included in this report are session or daily meter readings for each machine recorded before activities begin and recorded after activities have ceased. Signatures of two (2) workers attesting to readings shall also be recorded. An agent of the Commission may randomly inspect meter reports and the electronic pull-tab device's meter readings. (d) The report must indicate the total amount played (coin in), the total amount of credits played, the total amount of credits won, and the total amount of credits paid (coins out) for each machine. (e) The original and the duplicate copies and/or electronic files of the printed ticket vouchers must be maintained. The winner must sign acceptance of receipt of the prize which indicates the amount, date and machine number. The individual who paid the prize must also sign to verify payment. The receipt must be attached to the session or daily report. (f) After all activities have ceased for the day, each electronic pull-tab device is to be opened in the presence of at least two (2) workers and the money is to be removed and tagged with the respective machine number. The money must then be counted for each machine and the results shall be entered on the daily report. (g) The coins and/or cash shall be wrapped immediately after being counted. As the coin and/or cash is being counted and wrapped, the money shall be maintained in such a manner that allows for an accurate count for each machine when the wrap is completed. (h) A count team member shall record the results of the second count as wrapped by denomination. Discrepancies between the two counts are to be investigated immediately by the bingo supervisor or alternate supervisor and explained on the report. All persons participating in the count process shall sign the report to attest to the accuracy of the amounts reported. (i) A deposit slip is prepared and the coins and/or cash shall be deposited into the bingo location’s separate checking account that is maintained by the charitable organization pursuant to 13 Miss. Admin. Code Pt. 10, R. 5.3(a). (j) The actual win/loss is calculated by taking the gross amount received determined by the count less all pay-outs as determined by credits turned in and paid to participants. This figure is to be compared to the win/loss as determined from the machine meter readings. Any significant differences must be investigated and documented on the daily report by the designated supervisor. (k) The keys to open the locked doors to the electronic pull-tab device’s coin and/or cash box must be maintained by the bingo supervisor, alternate supervisor or a worker whose duty is not cashier, money count, or the person who pays prizes to the participants.

History

• Source: Miss. Code Ann. §§ 97-33-53(a)(iv), 97-33-109(f), and 97-33-71.

Chapter 4 VIDEO BINGO AND VIDEO FINITE PULL-TAB MACHINES

13 Miss. Admin. Code Pt. 11, R. 4.1 Video Bingo Machines Operation

Prior to approval for use in the state, each video bingo machine must meet the following specifications with respect to its operation:

(a) Must use a random selection process to determine the game outcome of each play of a game. The random selection process must meet ninety-nine percent (99%) confidence limits using a standard chi-squared test for goodness of fit and any other generally accepted mathematical tests for randomness as authorized by the Commission; (b) For bingo machines, the field of numbers shall be mixed after each game by using a random

number generator; (c) For bingo machines, a field of numbers from one (1) to seventy-five (75) shall be utilized; (d) For bingo games, after the field of numbers has been mixed and before the start of the game, the field of numbers is to be frozen with all numbers used for play taken in order from the top of the frozen field; (e) For bingo games when only one bingo card is displayed, the machine may allow the player the option of manually selecting the numbers on the card. In all other cases, the bingo cards shall be generated by the random number generator and no two cards during one game may be identical; (f) Payout shall be not less than seventy percent (70%) and not more than ninety-three percent (93%); (g) The maximum prize awarded shall not exceed One Thousand Dollars ($1,000.00) per game; (h) The machine shall not dispense cash; (i) One credit shall equal twenty-five cents ($.25) in value; (j) The maximum allowable bet shall not exceed Two Dollars ($2.00) per game; (k) The machine may have two (2) electronic coin mechanisms that accept coins. Mechanical coin acceptors are prohibited; (l) The machine may have a mechanism that accepts cash in the form of bills that does not exceed Twenty Dollars ($20.00); (m) The game pay-table shall be prominently displayed and understandable to the participant. The pay-table for each subsequent coin bet must be greater than or equal to the percentage of the previous coin. The minimum payout shall not be less that the amount of the bet; (n) The game of play shall conform to standard rules of bingo; (o) In bingo games, each card shall contain twenty-four (24) numbered spaces and one (1) free spot; (p) In bingo games, the machine shall designate the winning arrangement of numbers prior to commencing play; (q) In bingo games, the participant shall have a choice of cards on which to play; (r) In bingo games, all winning cards shall be available for display on the screen including any that may be played by the machine in any game; (s) In bingo games, the machine shall display the number of balls picked and the credits awarded for the number of balls drawn in order to obtain a bingo; (t) In video bingo games, each game shall continue until a bingo is produced or the participant no longer has a chance to win; (u) The machine shall pass a static test performed by the Commission using currently acceptable testing criteria.

History

• Source: Miss. Code Ann. § 97-33-65.

13 Miss. Admin. Code Pt. 11, R. 4.2 Video Pull-Tab Machines Operation

Prior to approval for use in the state, each video pull-tab machine must meet the following specifications with respect to its operation:

(a) It shall only offer the game of video finite pull-tabs and video bingo (as set forth in this Rule); (b) Each “deal” that is visible to the participant shall be represented internally in the device as four (4) separate and distinct finite “sub-deals” all identical in the number of tabs, the number of winners and losers, and the number of winning tabs for each pay tier. After participant inserts money or bills, the participant shall press a button on the console or on the screen (in the case of a

touch screen device) which shall signal to the device that the participant is requesting a pull-tab. At this point, the device shall choose a random number between one (1) and four (4) to signify the “sub-deal” from which the pull-tab will be pulled. Subsequently, the device shall also choose a random number to determine which tab shall be displayed to the participant. If the tab selected has been previously drawn out of that “sub-deal” the device shall choose another tab in an approved manner until one is obtained that has not been previously drawn; (c) A “sub-deal” shall not be reconstructed at any time until all of the tabs in the “sub-deal” have been previously pulled out. At which point, the finite device shall regenerate the “sub-deal” to match its original state. The terminal shall not be capable of indicating to the participant, operator, distributor, or manufacturer that such “sub-deal” has been regenerated; (d) The maximum number of tabs per “sub-deal” shall be not less than four thousand (4,000) and no more than twenty thousand (20,000) tabs. The finite pull-tab game shall display either on-screen or on accompanying glass, all winning combinations and the payout awarded for achieving such payout. However, the game shall not display in any manner the number of tabs of each finite category that have the ability to be picked or how many tabs remain; (e) Each device must use a random selection process to determine the game outcome of each play of a game. The random selection process must meet ninety-nine percent (99%) confidence limits using a standard chi-squared test for goodness of fit and any other generally accepted mathematical tests for randomness as authorized by the Commission; (f) Payout shall be not less than seventy percent (70%) and not more than ninety-three percent (93%); (g) The maximum tab win amount awarded shall not exceed One Thousand Dollars ($1,000.00) per game; (h) The machine shall not dispense cash; (i) One credit shall equal twenty-five cents ($.25) in value; (j) The maximum allowable bet shall not exceed Two Dollars ($2.00) per game; (k) The machine may have two electronic coin mechanisms that accept coins. Mechanical coin acceptors are prohibited; (l) The machine may have a mechanism that accepts cash in the form of bills that do not exceed Twenty Dollars ($20.00); (m) The game pay-table shall be prominently displayed and understandable to the participant. The pay-table for each subsequent coin bet must be greater than or equal to the percentage of the previous coin. The minimum payout shall not be less that the amount of the bet; (n) The machine shall pass a static test performed by the Commission using currently acceptable test criteria; (o) Nothing herein shall limit the ability for manufacturers to implement a finite pull-tab game on a network topology where multiple player-activated terminals choose pull-tabs from a central finite pool. If such network topology has more than three (3) active games, the manufacturer may choose to implement such finite pool as described elsewhere in this section, or have the option to play from one finite pool of tabs which may not be less than eight thousand (8,000) nor more than forty thousand (40,000); (p) Any finite video pull-tab device shall not offer visual animation that simulates or displays rolling or spinning reels.

History

• Source: Miss. Code Ann. §§ 97-33-65 and 97-33-77.

13 Miss. Admin. Code Pt. 11, R. 4.3 Electronic Video Bingo or Video Finite Pull-Tab Machines Hardware

Prior to approval for use in the state, each electronic video bingo or video finite pull-tab machine must meet the following specifications with respect to its hardware:

(a) All electrical and mechanical parts and design principles shall follow acceptable codes and standards in both design and manufacture; (b) The machine shall be designed to ensure that the participant will not be subjected to any unreasonable physical, electrical or mechanical hazard; (c) The machine shall be designed to ensure there are no readily accessible game function-related points which would allow any input and that there is no access to input or output circuits unless it is necessary for the proper operation of the game; (d) The machine shall be equipped with a surge protector that will feed all AC electrical currents to the machine and a nonvolatile memory to maintain the accuracy of all electronic meters displaying information required by these rules during power fluctuations and loss. Each machine must maintain accuracy of all electronic meters and critical game information for one hundred and eighty (180) days after the power is disconnected from the machine; (e) The machine shall not have any switches, jumpers, wire posts, or other means of manipulation that could affect the operation or outcome of a game. The machine may not have any functions or parameters adjustable by and through any separate video display or input codes except for the adjustment of features that are wholly cosmetic or other operational parameters as approved by the Commission. This is to include devices known as "knockoff switches;” (f) Each machine shall have a locked external front door in which the interior of the machine shall not be readily accessible when such door is in the locked position. In addition, each machine shall have a separate internal locked logic compartment which shall be keyed differently than the front door access lock. Each machine shall have one or more locked cash compartments that store all coin or currency prior to collection. (g) The ticket printing mechanism shall be located behind the locked front door of the machine to ensure the safekeeping of the audit copy; (h) Printing of all totals from the electronic meters shall occur automatically by means of a switch attached to either the door, door lock, or cash area each time access to either the main door or the cash area occurs; (i) The printing mechanism of the electronic device shall have a paper-sensing device that will prevent play if there is no longer any paper in the printer or, in the alternative, if there is insufficient paper to print a ticket voucher, an audit copy, or insufficient space on the electronic file to input data. In the case that the machine senses “paper out,” it shall void the previous cash ticket and print another recovery; (j) The machine shall print a ticket voucher when requested by the participant if there are any remaining credits on the game. The original ticket voucher and the duplicate audit copy must remain legible for three (3) years. The minimum information printed on the ticket voucher shall consist of the following: 1. The name of the licensed establishment; 2. The serial number of the machine; 3. The time of day that the ticket was printed in hours and minutes in a twenty-four (24) hour format; 4. The date on which the ticket was printed; 5. The sequential number of the ticket voucher; and

6. The value of the prize. (k) The logic board shall have a legible, unique serial number that is stamped in permanent ink or engraved; (l) The machine shall have a non-removable identification tag affixed by the manufacturer to the machine's exterior side. The tag information must include the following: 1. Manufacturer’s name; 2. Serial number; 3. Model; 4. Date of manufacture; and 5. Any other information required by the Commission.

History

• Source: Miss. Code Ann. §§ 97-33-65, 97-33-67(5) and 97-33-77.

13 Miss. Admin. Code Pt. 11, R. 4.4 Metering System

Prior to approval for use in the state, each machine must meet the following specifications with respect to its metering system:

(a) The machine shall be equipped with either four (4) non-resettable mechanical meters housed in a readily accessible locked machine area or another approved non-resettable meters accessible by the Gaming Commission; (b) Mechanical meters shall be manufactured in such a way as to prevent access to the internal parts without destroying the meter; (c) Mechanical meters shall be hardwired as no quick connects are allowed in the meter wiring system unless such disconnect shall lock all functions of the device until a Commission seal is broken to enable a reset; (d) Mechanical meters shall be situated in a left to right or top to bottom configuration according to function and visibly labeled as follows: 1. Coins in (including the equivalent of four (4) coins per one dollar bill inserted in the bill acceptor); 2. Credits played; 3. Credits won; 4. Credit paid. (e) Electronic meters shall record and display on the video screen a minimum of the following information: 1. Total coins in for mechanism 1; 2. Total coins in for mechanism 2 (if applicable); 3. Total coins in for the bill acceptor (if applicable); 4. Combined total of coins in; 5. Total credits played; 6. Total credits won; and 7. Total credits paid. (f) Electronic meters shall have the capability to maintain correct totals no less than eight (8) digits in length; (g) In the case of a device offering the game of video finite pull-tab, the device may only be capable of displaying to the licensed manufacture the number of tickets that remain in the deal or the number of winners or losers that have been drawn or still remain in the deal. The licensed manufacturer may signal when a deal or sub-deal is close to exhaustion if regeneration of that deal

or sub-deal must be affected by some outside force that is not automatic within the machine.

History

• Source: Miss. Code Ann. §§ 97-33-53(a) and 97-33-65.

13 Miss. Admin. Code Pt. 11, R. 4.5 Software Information to be Provided to the Commission

A licensed manufacturer shall provide to the Commission information necessary to ensure the machine's software is in compliance with the Charitable Bingo Law and these administrative rules. The information shall include, but not be limited to:

(a) All technical manuals; (b) All schematics, printed wire assembly and hardware block diagrams; (c) All microprocessor manuals; (d) All source listings, including programmer's comments and flow charts for the game program(s) and printer routine(s); (e) Hexadecimal dump(s) for each compiled program; (f) Master erasable programmable read-only memory (EPROM) containing compiled game programs and character sets including those that may reside on the printer interface board; (g) Access to a compiler for the programming language used if the lab selected by the Commission is unable to compile the program with the equipment it has available; (h) A written description of the random number generator algorithm; (i) Schedule of proposed payouts, percentages and odds determinations; (j) A complete copy of the programmer's memory map; (k) A description of the methods of all testing criteria, if performed, and the results of the tests of the following: 1. Random number generator 2. Electromechanical interference 3. Radio frequency interference 4. Federal Communications Commission (FCC) standards 5. Alternating current (AC) line noise 6. Static electricity 7. Extreme temperature conditions (l) Truth tables for all programmable array logic (PAL) used; and (m) An operator's manual for each device utilized.

History

• Source: Miss. Code Ann. §§ 97-33-65, 97-33-79, and 97-33-109(2).

13 Miss. Admin. Code Pt. 11, R. 4.6 Machine Testing

(a) The Commission may not permit a particular make or model of a machine until tests prescribed by the Commission confirm the machine complies with all specifications required by the Act and the rules of the Commission. (b) The licensed manufacturer shall furnish at its expense a prototype of the machine for which a permit is sought to a laboratory selected by the Commission for testing. (c) Any and all modifications made to an approved machine must be submitted to the Commission for approval in advance. (d) The Commission may require an approved machine to be retested at a laboratory selected by the Commission if a modification has been made since original testing.

(e) The licensed manufacturer shall pay to the Commission all costs associated with the machine testing and shall be responsible for any purchase, shipping, or handling charges prior to the machine being permitted by the Commission. (f) The testing laboratory shall use established uniform testing criteria on each machine tested. Testing includes inspection of the hardware, software, and all information provided to the Commission or the testing laboratory to assure a machine meets all requirements of the Charitable Bingo Law and the rules of the Commission.

History

• Source: Miss. Code Ann. §§ 97-33-65, 97-33-79, and 97-33-109(2).

13 Miss. Admin. Code Pt. 11, R. 4.7 Approval of Machines

(a) The Commission may conditionally or finally approve machines and will maintain a list of specific models of machines based on its finding that the machines conform to the specifications provided in the rules of the Commission. 1. Final approval of each machine is required for a permit stamp to be issued even if a machine has been conditionally approved; 2. Conditional or final approval may be withdrawn by the Commission at any time upon a finding that a machine does not conform to specifications and testing standards provided in the rules of the Commission. (b) All machines placed in a bingo location for testing purposes will be assigned a temporary number by the Commission until conditional or final approval is determined. The Commission may conditionally approve machines which fail to conform to the specifications provided in the rules of the Commission provided that: 1. The manufacturer, distributor or owner provides an itemization of the nonconforming criteria and the machine complies with all other technical specifications provided in the rules of the Commission; 2. The manufacturer, distributor or owner provides a written plan specifying the time period required for modifications to conform to the specifications; 3. The itemization and plan submitted by the manufacturer, distributor or owner is accepted and approved in writing by the Commission.

History

• Source: Miss. Code Ann. § 97-33-65.

13 Miss. Admin. Code Pt. 11, R. 4.8 Machine Repair

(a) After the Commission approves the software and logic board of a machine, it will use the prescribed security seal process to guard against any unauthorized tampering or changes. (b) The Commission may require and provide an identification sticker to be attached to the logic board and the mechanical meters to verify the parts are assigned to a specific permitted machine. (c) No security seal shall be broken except when authorized by the Commission and only in the presence of Commission personnel. (d) Any repair or replacement of a machine's mechanical meter or logic board which requires the breaking of the security seal shall be reported to the Commission. An agent must be present before the seal is broken and the Commission must have an agent present during the breaking of the security seal. At that time, readings of the machine's electronic and/or mechanical meters must be recorded by an agent of the Commission and the initial readings of the electronic and/or mechanical meters shall be recorded by an agent of the Commission before the machine is again

placed in operation. (e) Agents of the Commission shall be given access to the machine to reseal the meters and verify proper operation before the machine can be returned to or placed back in operation. (f) To assure the integrity, security, and monitoring of machines in service, a permitted machine or any portion thereof may not be substituted or replaced until the replacement machine has been approved/permitted by the Commission.

History

• Source: Miss. Code Ann. §§ 97-33-65, 97-33-107 and 97-33-109.

13 Miss. Admin. Code Pt. 11, R. 4.9 Inspection and Seizure of Machines

(a) The Commission has the right at all times to make an examination of any machine authorized by the Charitable Bingo Act. Such right of inspection includes immediate access to all machines and unlimited inspection of all machine parts. (b) The Commission shall be entitled to observe the removal and verify the counting of all monies contained in a machine. The Commission may remove and physically count the monies contained in a machine after giving the machine owner or its employee, agent, or representative the opportunity to be present during the process. (c) If a machine is constructed so that the four (4) mechanical meters required by these rules cannot be easily viewed and accurately read externally from the front of the machine, the key to the locked area housing the meters must be immediately available at the bingo location premises and provided to Commission personnel upon request. (d) The Commission may immediately cease the operation and use of any machine or device which is in violation of law, any rule of the Commission or when ceasing the operation and use of said machine is deemed to be in the best interest of the public. The Commission may seize and remove any such machine or device with the appropriate court order. (e) The Commission may remove a machine or parts from a machine for laboratory testing and analysis. When parts are removed, the Commission may seal any machine left on the premises of the bingo location pending completion of the Commission's investigation. The breaking of or the removal of the Commission's seal by any individual without approval may subject the licensee to seizure of the entire machine or machines in addition to other penalties provided for in these rules.

History

• Source: Miss. Code Ann. §§ 97-33-65, 97-33-107 and 97-33-109.

Part 12 Part 12: Charitable Gaming Licensing

Chapter 1 CHARITABLE ORGANIZATION LICENSED TO CONDUCT BINGO.

13 Miss. Admin. Code Pt. 12, R. 1.1 Charitable Organization Licensed to Conduct Bingo

(a) A bingo game may be conducted in this state only for the benefit of a charitable organization that has been licensed pursuant to statutes and rules governing the bingo activity. Any license issued pursuant to these rules will be in effect for a period not to exceed three (3) years.

(b) Any charitable organization desiring to conduct bingo games must obtain a license to do so from the Commission. An applicant for a license must file an application on a form prescribed by the Commission for such purpose. The application fee, as prescribed by statute, must accompany the application. The charitable organization shall further provide copies of the previous three (3) years federal and state tax returns with the application.

(c) The fees must be paid by a check drawn on the bingo location’s checking account that is maintained by the charitable organization pursuant to 13 Miss. Admin. Code Pt. 10, R. 5.3(a).

(d) A religious organization may be refunded the application fee if, after investigation by the Commission, it is determined that such religious organization meets the criteria to be exempt from payment of the application fee. No other application fees shall be refunded for any reason including the refusal of the Commission to issue a license.

(e) In addition, any charitable organization which offers electronic pull-tabs is subject to a license fee equal to 2 ½ % of the net proceeds of electronic pull-tabs. This license fee shall be paid to the Commission monthly on forms prescribed by the Commission.

(f) The bingo location is required to remit fees based on gross proceeds of each bingo session as required by statute and rule unless the charitable organization meets the requirements to be an exempted religious organization.

(g) It is the obligation of both the lessor and the charitable organization to ensure that the facilities satisfy all local, state and federal safety and health standards. Failure to maintain the required standards can result in the suspension and/or revocation of the charitable organization’s license.

(h) The bingo location may conduct no more than two (2) five (5) hour bingo sessions within one (1) day or more than eight (8) sessions in one (1) week. A bingo location who holds only one (1) session per week may conduct a six (6) hour session.

History

• Source: Miss. Code Ann. §§ 97-33-57(3), 97-33-52(1)(a), and 97-33-69(3).
• Source: Miss. Code Ann. § 97-33-55(4).
• Source: Miss. Code Ann. §§ 97-33-55(4) and 97-33-107(c).
• Source: Miss. Code Ann. § 97-33-107(b).
• Source: Miss. Code Ann. § 97-33-107(c).
• Source: Miss. Code Ann. § 97-33-67.

Chapter 2 MANUFACTURER AND DISTRIBUTOR.

13 Miss. Admin. Code Pt. 12, R. 2.1 Manufacturer and Distributor

(a) No person or entity shall fabricate, concoct or manufacture any supplies or equipment for use in the conducting of any bingo game within this state without having obtained a manufacturer's license from the Commission. (b) No person or entity shall sell, offer to sell, or otherwise furnish any bingo supplies or equipment without having first obtained a manufacturers, distributors or operators license from the Commission. All such licensees shall report to the Commission no less than monthly on forms prescribed by the Commission. (c) Any license issued pursuant to these rules will be in effect for a period not to exceed one (1) year.

(d) Any business or entity seeking a license as a manufacturer or as a distributor of bingo gaming supplies or equipment shall submit an application(s) to the Gaming Commission on the forms provided for such purpose. A distributor is authorized to enter into agreements with charitable organizations under which the distributor supplies electronic daubers, electronic video bingo or electronic pull-tab machines to a charitable organization. Any such business or entity shall further provide copies of the previous three (3) years federal and state tax returns with the application.

(e) For new applications, payment must be made by money order, certified check, or cashier's check. No personal checks of any person, business or other entity will be accepted. (f) All application fees are non-refundable. (g) A manufacturer, distributor, or agents or employees thereof may not take part in the holding, operation or conducting of any bingo game. (h) A distributor shall be authorized to enter into service and/or maintenance agreements with charitable organizations who have purchased electronic pull-tab devices. All such agreements must be submitted to the Commission for approval prior to execution. The rate to be charged shall not exceed the reasonable market rate for such services.

History

• Source: Miss. Code Ann. § 97-33-79.
• Source: Miss. Code Ann. § 97-33-201(1)(a).
• Source: Miss. Code Ann. § 97-33-69(5).

Chapter 3 COMMERCIAL LESSOR.

13 Miss. Admin. Code Pt. 12, R. 3.1 Commercial Lessor

(a) No more than two (2) sessions may be conducted within one (1) day or more than eight (8) sessions in one (1) week on the premises of the commercial lessor. A bingo location that holds only one (1) session per week may conduct a six (6) hour session. If the rental rate submitted for the proposed premises is found by the Commission to be in excess of the reasonable market rental rate, then the same premises may not be submitted for a reasonable determination for a period of two (2) years. (b) The commercial lessor is prohibited from requiring or receiving any payment, cost or fee from the bingo location other than the rental amount provided for in accordance with the executed and approved rental agreement. The commercial lessor may not receive any percentage from the gross receipts or profits from any bingo location, nor charge any type of admission fee to the participants. (c) The commercial lessor is prohibited from entering into any agreement with a distributor or operator of bingo supplies and equipment for the use, purchase, promotion or sale of such supplies and equipment.

(d) Any commercial lessor is prohibited from having a direct or indirect interest of any kind or nature with: 1. A manufacturer, distributor or operator licensee. 2. A charitable organization or bingo location other than the lease agreement. This would include membership in such charitable organization.

(e) An officer, director or manager of a charitable organization licensed to conduct bingo may not serve as an officer, director, shareholder, proprietor or employee of a commercial lessor.

(f) Commercial lessors, including agents or employees thereof, shall not take part in the holding, operation or conducting of a bingo game.

(g) A lease may not be in excess of the reasonable market rental rate for the premises of a bingo location, and in no case shall any lease payment be based on a percentage of gross receipts or profits from a bingo game.

(h) It is the obligation of both the commercial lessor and the charitable organization to ensure that the facilities satisfy all local, state and federal safety and health standards. Failure to maintain the required standards can result in the suspension and/or revocation of the license. (i) Commercial lessors shall be subject to background investigations to ensure an arms-length relationship with the lessee. Both the commercial lessor and the executive director of the charitable organization shall sign an affidavit provided by the Commission attesting to the fact that neither

has any other form of business relationship with the other, nor is there any blood, marriage or personal relationship. They will also swear or affirm that neither has received, offered or accepted any additional compensation, reward, or recompense. No person in any way connected with the charitable organization or any family member of any person connected with the charitable organization may benefit or profit in any way from the leasing or selling of a building to the charitable organization.

History

• Source: Miss. Code Ann. §§ 97-33-203 and 97-33-201(a).
• Source: Miss. Code Ann. § 97-33-81.
• Source: Miss. Code Ann. § 97-33-81.
• Source: Miss. Code Ann. § 97-33-69(5).
• Source: Miss. Code Ann. § 97-33-69(9).
• Source: Miss. Code Ann. § 97-33-81.

Chapter 4 OPERATORS AND DISTRIBUTORS.

13 Miss. Admin. Code Pt. 12, R. 4.1 Operators and Distributors

(a) Any person or entity desiring to rent, lease, repair and/or service electronic video bingo or pull-tab machines to a licensed charitable organization for use in this state shall: 1. Comply with and meet all criteria as set forth in the Charitable Bingo Law and the rules adopted thereunder; 2. Be issued and maintain all applicable federal, state, and local licenses; 3. Apply for an operator's license or a distributor’s license on forms prescribed by the Commission, submit an application fee as prescribed in section (b) of this rule, and submit the appropriate monthly rate for any part of the month such machine is placed in service; 4. Operators must purchase all machines from a licensed distributor and/or licensed manufacturer; 5. Distributors must purchase all machines from a licensed manufacturer. (b) Operators and distributors must apply for license renewals on forms prescribed by the Commission no less than ninety (90) days prior to the expiration of the current license and submit the application fee with the renewal application. (c) Operators and distributors shall notify the Commission in writing of the shipment of any machines into the state of Mississippi no less than five (5) days prior to the date of delivery. This notification must include: 1. Make, model numbers, individual serial numbers and the number of machines to be sold or leased and shipped; 2. Intended date of shipment, destination, date of shipment, and bill of lading; and 3. An affidavit stating any differences, however slight, between the incoming machines and the prototype previously approved by the Commission. (d) A license may be suspended and/or revoked by the Commission upon the Commission's determination that the licensee has not complied with the conditions of licensing or has failed to submit a requested report. (e) The Commission may deny, restrict, suspend, limit, or revoke a license as an operator or distributor of electronic video bingo or pull-tab machines when it ascertains an applicant has solicited electronic video bingo or pull-tab business prior to being licensed by the Commission. (f) Each operator and distributor must file a report on forms prescribed by the Commission no later than the 15 th of each month and pay the per machine fee for each machine in service for any part of a month. The report must itemize each machine by its physical location and the charitable organization who is leasing such machine. (g) All application fees are non-refundable.

(h) Operators and distributors are authorized to enter into service and maintenance agreements with charitable organizations who have purchased electronic pull-tab devices. All such agreements must be submitted to the Commission for approval. The rate to be charged shall not exceed the reasonable market rate for such services as determined by the Commission. (i) All rental agreements between the distributor or operator and/or the charitable organization must be submitted to the Commission for approval prior to execution. (j) Any such applicant shall provide copies of the previous three (3) years federal and state tax returns with the application.

History

• Source: Miss. Code Ann. §§ 97-33-79(5), 97-33-201, and 97-33-203.

Chapter 5 PERMITS AND LICENSES.

13 Miss. Admin. Code Pt. 12, R. 5.1 Permitting Process

(a) Authorization to use or furnish electronic video bingo or pull-tab machines shall only be granted to: 1. A bingo location for its own machines; or 2. A licensed operator who leases, rents or otherwise furnishes such machines to a bingo location; or 3. A licensed manufacturer who leases, rents, sells or otherwise furnishes to a licensed distributor or sells to a licensed operator; 4. A licensed distributor who sells to a licensed operator or bingo location; and 5. A licensed distributor who enters into agreements with bingo locations under which the distributor supplies electronic video bingo or electronic pull-tab devices to a bingo location with the distributor’s compensation being based on the amount of play on the machine. (b) An approved operator or distributor before placing any machines at a bingo location under lease must submit to the Commission an application for a permit stamp for each machine intended for use. The application must include: 1. The make, model, serial number and quantity of machines intended for use; 2. The name of each participating charitable organization; 3. A copy of the lease or rental agreement between the charitable organization and the operator or distributor; 4. The bingo location and address where specified electronic video bingo or pull-tab machines are to be used and owner information. A separate application must be completed for each machine. (c) Upon approval of an application for placing machines at a given bingo location, a representative of the Commission may inspect, test, and approve each machine. The Commission representative will affix a permit stamp, logic board seal and hard meter seal to each machine, whereupon the machine may be transported to an approved location. Upon arrival each machine will be inspected by an agent of the Commission prior to the device’s placement into operation. (d) Permit stamps must be affixed to the exterior machine cabinet so the stamp is visible and easily readable. The machine may not be positioned or located in any way which would obscure an individual’s ability to see and read the permit stamp. (e) Except for testing purposes in which a temporary number is assigned by the Commission, no machine shall be placed in service prior to the Commission's issuance and affixing of a permit

stamp, logic board seal and hard meter seal. (f) A charitable organization that purchases a machine must follow the same procedures outlined for a distributor or operator prior to placing said machine into use.

History

• Source: Miss. Code Ann. § 97-33-65.

13 Miss. Admin. Code Pt. 12, R. 5.2 Permit Stamp, Machine Location

(a) A permit stamp for a machine is only valid for the premises identified on the approved permit application. (b) A permit stamp is further restricted to the particular machine approved by the Commission and identified on the permit application. (c) A permit stamp is not the personal property of the bingo location and may be removed by the Commission at any time. (d) No machine shall be moved from the bingo location specified in the permit application for use at another location until a new application is approved and the transfer is authorized in writing by the Commission. (e) No machine shall be moved from the bingo location specified in the permit application without prior authorization from the Commission.

History

• Source: Miss. Code Ann. § 97-33-65.

13 Miss. Admin. Code Pt. 12, R. 5.3 Expiration of License/Reissuance

(a) All electronic video bingo and pull-tab device permit stamps and operators licenses issued pursuant to these rules expire not more than one (1) year from the date of issuance. (b) All fees must be paid and a new permit stamp issued before a previously permitted machine may be operated in this state. (c) The Commission will consider the same criteria for renewal of permit stamps as for the original issuance of permit stamps. Failure to satisfy permit criteria contained herein may result in denial or removal of a permit stamp. Failure to satisfy permit criteria contained herein may additionally result in suspension and/or revocation of the license.

History

• Source: Miss. Code Ann. §§ 97-33-57, 97-33-65, and 97-33-201.

13 Miss. Admin. Code Pt. 12, R. 5.4 Compensation of Workers of Charitable Organizations

(a) A bingo location may pay eligible workers only for services actually rendered in assisting in the holding, operating or conducting of a licensed charitable bingo game. Payment shall not exceed Six Hundred Dollars ($600.00) per session to all persons compensated. (b) Contact persons, supervisors, and alternate supervisors are forbidden to enter into any agreements with a manufacturer, distributor, operator or commercial lessor except on behalf of the charitable organization as authorized by written contract. (c) The contact person, supervisor, alternate supervisor and any individual assisting in the holding, operating, or conducting of a licensed bingo game must apply to the Commission for a finding of suitability to operate bingo for a charitable organization. Any person found unsuitable may also be deemed unsuitable by the Commission to work in any capacity in the bingo hall. (d) A corporation, person or entity operating bingo or assisting in the holding, operating or conducting of a licensed bingo game, as provided in section (c) of this rule, for the benefit of a

licensed charitable organization shall be restricted to operating such games for a limit of one (1) such organization authorized to pay employees up to a maximum of Six Hundred Dollars ($600.00) per session. Such corporation, person or entity shall only be authorized to conduct such sessions at one (1) physical location or building. (e) Any corporation, person, or entity operating bingo games under contract, as previously described, shall have a written contract with the charitable organization and shall be subject to any rules promulgated by the Commission.

History

• Source: Miss. Code Ann. § 97-33-69.

13 Miss. Admin. Code Pt. 12, R. 5.5 Licenses Not Transferable

No license issued by the Commission pursuant to the Charitable Bingo Law is transferable by name nor location. Any license issued under this Act is a privilege and no personal property interest or rights of any kind exist therein and all such licenses must be surrendered to the Commission upon request.

History

• Source: Miss. Code Ann. §§ 97-33-107 and 97-33-109.

13 Miss. Admin. Code Pt. 12, R. 5.6 Applicant Suitability and Business Relationships

(a) The Commission may deny an application or revoke, suspend, restrict, or limit a license when it finds that the applicant or a business relationship between an applicant and another person or business entity is unsuitable or endangers the health, safety, or welfare of the citizens of this state. In determining the suitability of an applicant, the Commission may consider the following: 1. General character including honesty and integrity; 2. Financial security and stability, competency, and business experience in the capacity of the relationship; 3. Record of violations, if any, which may affect the legal and proper operation of charitable gaming including a violation affecting another licensee or applicant and any violation of the laws of this state, other states, and countries without limitations as to the nature of the violations; 4. Refusal to provide records, information, equipment, or access to premises to any member of the Commission or any peace officers when such access is reasonably necessary to ensure or protect public health, safety or welfare; and 5. Association or relationship to a licensed manufacturer, distributor, operator, charitable organization or commercial lessor. (b) The Commission may not issue a license to a charitable organization that has an individual associated with either the charitable organization itself or the licensed bingo location that cannot be found suitable because: 1. The person has been convicted of a felony or presently has a felony charge pending in any state or country; 2. The person has been convicted of a gambling-related offense in any state or federal court; 3. The person has been convicted of any misdemeanor theft offense or related offense, convicted of issuing worthless checks, convicted of illegal possession of stolen goods, or convicted of false swearing or who presently has any such charge pending; 4. The person is or has been a professional gambler; 5. The charitable organization’s board membership is essentially the same as another

charitable organization; or 6. The firm, organization or corporation in which any person as described in sections 1 through 4 above is an officer or director, whether compensated or not, or in which such person has a direct or indirect financial interest. 7. Any person who has a current state or federal tax lien. (c) After a charitable organization is licensed and all individuals associated with either the charitable organization itself or the licensed bingo location have been found suitable by the Commission, such suitability requirements must be maintained through the licensing period and non-compliance with same may subject the charitable organization to suspension and/or revocation of its license.

History

• Source: Miss. Code Ann. §§ 97-33-57 and 97-33-81.

13 Miss. Admin. Code Pt. 12, R. 5.7 Suspension of License Holders

The Commission may suspend any license held by a licensee when:

(a) The Commission receives: 1. A certified copy or any other credible evidence of any charge, judgment or conviction of any officers, directors, agents or employees associated with a licensee, for any violation of any criminal law or ordinance. (b) The Commission has reasonable cause to believe that any licensee or any any officer, director, agent or employee associated with a licensee has violated provisions of the Charitable Bingo Law or these rules; or (c) A licensee circulates, distributes, or communicates in any manner false or misleading advertising. (d) No suspension of a license shall exceed twenty-one (21) days without the Commission providing an opportunity for a hearing.

History

• Source: Miss. Code Ann. §§ 97-33-75 and 97-33-109.

13 Miss. Admin. Code Pt. 12, R. 5.8 Revocation of License Holders

The Commission may revoke any license held by a licensee after an opportunity for hearing when:

(a) The Commission receives: 1. A certified copy or any other credible evidence of any charge, judgment or conviction of any officers, directors, agents or employees associated with a licensee for any violation of any criminal law or ordinance. (b) The Commission has reasonable cause to believe that any licensee or any officer, director, agent or employee associated with a licensee has violated provisions of the Charitable Bingo Law or these rules; or (c) A licensee circulates, distributes, or communicates in any manner false or misleading advertising.

History

• Source: Miss. Code Ann. §§ 97-33-75 and 97-33-109.

Chapter 6 PENALTIES.

13 Miss. Admin. Code Pt. 12, R. 6.1 Penalties

(a) The Commission has authority to establish and assess penalties and fines for violations of the Charitable Bingo Laws and rules. (b) Any charitable organization who fails to remit a percentage of its gross proceeds of each bingo session, as required by statute and rule, shall be liable for the amount of the unpaid fees plus a penalty of twenty-five percent (25%) of the total additional fee due and it will be penalized Twenty Dollars ($20.00) a day for each day that the report is late up to fifteen (15) days. After fifteen (15) days, a recommendation for suspension and/or revocation of the license may be made by the Commission. (c) Any other licensee who fails to timely submit any fee established by the Charitable Bingo Laws or the rules promulgated thereunder shall be liable for the amount of the unpaid fee plus a penalty of twenty-five percent (25%) of the total additional fee due and it will be penalized Twenty Dollars ($20.00) a day for each day that the report is late up to fifteen (15) days. After fifteen (15) days, a recommendation for suspension and/or revocation of the license may be made by the Commission. (d) All licensees shall be subject to suspension and/or revocation of its license for any violations of the rules concerning the reporting of bingo revenue and expenses. Any licensee who files a late report will be penalized Twenty Dollars ($20.00) a day for each day that the report is late up to fifteen (15) days. After fifteen (15) days, a recommendation for suspension and/or revocation of the license may be made by the Commission. (e) Failure of a charitable organization to establish and maintain an adequate internal control accounting system and all records required by statute or rule will subject that charitable organization to suspension and/or revocation of its license.

(f) All licensees shall be strictly prohibited from circulating, distributing or communicating in any manner false or misleading advertising. Violations of this section will result in the suspension and/or revocation of the license.

History

• Source: Miss. Code Ann. §§ 97-33-65, 97-33-75, and 97-33-107(g).
• Source: Miss. Code Ann. § 97-33-75.

13 Miss. Admin. Code Pt. 12, R. 6.2 Rights of Licensee to Request a Hearing

(a) Any corporation, person, organization or entity holding a license under the Charitable Bingo Laws, that is aggrieved by any order, decision or other act of the Commission with respect to that license may petition the Commission, in writing, for a hearing thereon. Such petition must be filed with the Commission no later than ten (10) days after receiving notice of the Commission’s action. The Commission may set a time and place for the hearing and shall notify the petitioner of the time and place fixed for the hearing. After the hearing, the Commission may make such order in the matter as it may deem just and lawful and shall furnish a copy of the order to the affected licensee. (b) The Commission, at its option, may assign a hearing examiner to hear any matter for which a petition for a hearing has been made. The hearing examiner shall take the evidence and render a recommended decision to the Commission. The record made before the hearing examiner, as well

as the recommended decision, shall be forwarded to the Commission for a final decision. No new evidence shall be presented to the Commission. Any licensee aggrieved by the decision of the hearing examiner may, no later than fifteen (15) days after the announcement of the decision, apply in writing to the Commission for review of the decision. The Commission may either grant or deny the application for review. If granted, review is limited to the record of proceedings before the hearing examiner. The Commission may sustain, modify, or reverse the hearing examiner’s decision. The hearing examiner’s decision becomes the final decision of the Commission unless reversed by the Commission. (c) No license issued under the Charitable Bingo Law shall be revoked, nor any fine assessed against a licensee, until after a hearing is held after due notice. (d) Any licensed corporation, person, organization or entity aggrieved by the final decision of the Commission may obtain a judicial review thereof in the circuit court of the county in which the bingo games are conducted. The judicial review must be instituted by filing a petition within ten (10) days after the decision is rendered. (e) In any hearing before the Commission or the hearing examiner, the burden of proof shall be on the licensee to show compliance with the Charitable Bingo Act and the rules promulgated thereunder.

History

• Source: Miss. Code Ann. § 97-33-61.

Part 13 Part 13: Electronic Bingo Daubers

Chapter 1 MINIMUM STANDARDS FOR ELECTRONIC BINGO DAUBERS.

13 Miss. Admin. Code Pt. 13, R. 1.1 Operation of Devices

(a) No electronic bingo daubing system or any part thereof may be sold, leased, or otherwise furnished to any person in this state or used in the conduct of bingo for public play unless and until a representative sample has first been furnished to the Commission by its manufacturer at the manufacturer’s expense and has been approved by the Commission for use within the state. The Commission may require up to two (2) representative prototypes for purposes of evaluation. In the process of evaluation and testing the system or any of its components, electronic components may be destroyed or rendered inoperable. All cost of evaluation will be borne by the manufacturer/distributor. Once an electronic daubing system or any part thereof has been approved, the Commission may keep the system and any of its components for further testing, evaluation, and investigative support for as long as the Commission deems necessary. Any significant modification to any part of the system must be approved by the Commission prior to its distribution or installation. Electronic dauber systems in use at the time of adoption of electronic dauber rules will be allowed to continue in use during the testing and evaluation of the system. Sufficient reasonable time will be allowed for any modification which may subsequently be required. (b) The Commission may examine and inspect any portion of the system or any individual dauber at any time. Such examination and inspection includes immediate access to the daubing device and unlimited inspection of all parts of the daubing device or related systems. (c) If the Commission detects or discovers any problem with an electronic dauber or its associated system that affects the security and/or integrity of the bingo game or the system, the Commission may direct the bingo location to cease the sale, lease, or use of the device or system as applicable. The Commission may require the manufacturer to correct the problem or recall the device or system immediately upon notification by the Commission to the manufacturer. If the bingo location detects or discovers any defect, malfunction, or problem with any component of the system, the bingo location shall immediately remove the component from use or play and immediately notify the Commission of such action. (d) Each manufacturer selling electronic daubers and the associated system must maintain a log showing the date, model, serial number, and to whom they were sold. This information is required to be reported monthly to the Commission. (e) Each distributor or operator must maintain a log containing the date, model number and serial number in addition to the name and address of the manufacturer or distributor from whom the components were purchased. This distributor or operator must also log the name and address of any bingo location to whom the components are sold, leased, or otherwise furnished. (f) Each bingo location purchasing, leasing, or otherwise utilizing an electronic daubing system must maintain a record showing the date, model number and serial number. Additionally, all records, reports and receipts relating to an electronic dauber or its associated system’s sales, maintenance, and repairs must be retained by the bingo location on the premises where the charitable organization is licensed to conduct bingo or at a location designated in writing by the

charitable organization for a period of three (3) years for examination by the Commission. Any proposed change in the designated location must be submitted to the Commission in writing at least ten (10) days prior to the change. (g) No bingo location may display, use or otherwise furnish an electronic daubing device having been marked, defaced, tampered with, or altered in any manner which may deceive the public or affect a participant’s chances of winning. (h) No bingo location shall require a participant to use an electronic dauber in playing bingo. No bingo location shall furnish or reserve more than one (1) electronic dauber unit per participant. (i) The system may utilize an automatic mark feature that, if turned on, will mark the participant’s cards automatically on both handheld and tabletop units. The system must allow for the cancellation or correction of numbers entered in error. The receipt control number shall be displayed on the unit if the cards were loaded wirelessly. (j) When a winning pattern or “bingo” occurs, the participant must notify the bingo location by means that do not utilize the dauber unit or the associated system. (k) The device must recognize and display all bingos achieved. Additionally, the participant must present a receipt showing purchase of the card. The bingo location must verify that the numbers called for the present game constitute a win for that particular card and that the date of the receipt is current. (l) The participant must be physically present at the bingo location where the game is actually conducted and when the game is called. (m) Bingo locations shall not reserve electronic dauber units for any participant except as allowed in section (n) of this rule. (n) Bingo locations that offer electronic dauber units shall have at least two (2) devices for participants with disabilities consistent with the definitions set forth in the Americans with Disabilities Act (ADA) that would restrict the ability to mark cards. If there are no requests for the reserved devices prior to fifteen (15) minutes before the scheduled start of a session, the devices may be made available for use by any player. (o) If bingo locations charge a fee for use of the electronic dauber unit, such fees must be a flat fee and shall not be based on the number or dollar value of cards purchased. Participants with disabilities consistent with the definitions set forth in the Americans with Disabilities Act (ADA) that would restrict the ability to mark cards shall not be required to pay a rental fee or comply with the minimum purchase requirements imposed on all other participants utilizing electronic dauber units. (p) The system itself shall not be capable of dispensing currency by any means or any other form of automatic payout (i.e. ticket voucher etc.). Any prize awarded a participant will require the same level of documentation as set forth in 13 Miss. Admin. Code Pt. 10, R. 5.5(h)(5). (q) Prizes awarded from wins with the electronic representations of the dauber unit are to be included in the prize limitations set forth by 13 Miss. Admin. Code Pt. 10, R. 5.5(c) and (d). (r) Participant-owned or participant-leased devices are not considered to be “electronic bingo daubers” for the purposes of these rules and the use of such devices is strictly prohibited.

History

• Source: Miss. Code Ann. § 97-33-65.

13 Miss. Admin. Code Pt. 13, R. 1.2 Minimum Receipt Standards

(a) Each participant is to be issued a receipt at the time of payment for the amount paid to participate in each game or set of games. The receipt must be imprinted with the following

information: 1. Name of the charitable organization; 2. Session number; 3. Time and date of purchase. The circuitry and programs that maintain and control the time and date must be of the type that can only be reset by service personnel and must retain the last transaction number issued even throughout adverse conditions or power interruptions; 4. Amount paid for the opportunity to play each game or game pack; 5. Total amount paid; and 6. Receipts are to contain a control number with numbers comprised of at least six (6) digits. The circuitry and program that maintain and control this numbering scheme must be of the type that can only be reset by service personnel and must retain the last number issued even throughout adverse conditions or power interruptions. (b) Voided transactions must have the sales receipt signed by the participant and the cashier attached and are to be retained by the cashier until the session is complete and then attached to the bingo session report. (c) The system must produce a summary report on a hard copy transaction log after each session and monthly which details the following information: 1. Charitable organization; 2. Date and time of report; 3. Type of cards loaded by paper type (cut and collation); 4. Price of card type and number of each sold; 5. Voided transactions; 6. Total sales; and 7. Total number of units used. (d) Electronic credit will not be allowed. The sale of electronic representations of a specified number of cards shall be made directly by the cashier, and purchase from other personnel is strictly prohibited. (e) The price for a card face played through an electronic dauber shall be the same as the price of that of a disposable card face or bingo hard card sold separately or in combination in that session.

History

• Source: Miss. Code Ann. §§ 97-33-65 and 97-33-71.

13 Miss. Admin. Code Pt. 13, R. 1.3 Minimum Electronic Dauber Standards

(a) The device shall be designed to ensure that the participant is not subjected to any unreasonable physical, electrical or mechanical hazard. (b) Each device shall be identified with a unit identification number. (c) The device must allow the cancellation or correction of numbers entered in error. (d) Notification to the bingo location by a participant having a winning pattern or “bingo” must be made by means which do not utilize the dauber unit or the associated system. (e) Electronically stored cards must reside in a non-volatile read only storage medium. Currently acceptable means for storage of electronic cards are: 1. EPROM - Erasable Programmable Read Only Memory 2. CDROM - Compact Disc Read Only Memory 3. HDD - Hard Disc Drive (f) Electronically stored card sets shall not change without the prior approval of the Commission,

and the card sets shall be accessible to the Commission through on-site inspection. (g) Upon interruption of power to the daubing device, the device must be capable of resuming the present game with no loss of data upon the restoration of power. (h) The daubing unit shall be designed to ensure there are no readily accessible game-function related points which would allow any input and that there is no access to input or output circuits unless it is necessary for the proper operation of the game.

History

• Source: Miss. Code Ann. § 97-33-65.

13 Miss. Admin. Code Pt. 13, R. 1.4 Minimum System Requirements

(a) Access to the electronic computer system or any of its components shall be restricted to the manufacturer and Commission personnel. (b) Modification of the program which operates and controls the dauber units or the cards stored in the electronic database requires Commission approval prior to the distribution or installation of such. (c) The representation of each card will be displayed with a legible, distinct, unique card control number. This number, which corresponds to a particular arrangement of numbers on the card-face, cannot be used more than once for any game. (d) Upon the win of a participant, the system must be capable of printing a hard copy of the winning card including the card control number of the card-face. This information is to supplement the prize report information required by 13 Miss. Admin. Code Pt. 10, R. 5.3(h)(5). Only electronic card faces sold for that session and that particular game shall show as a good bingo from the verifier. All voided transactions shall be removed from the list of cards in play for a particular game, and all voided transactions should show either being voided prior to game play or after the game has been completed. (e) The distribution of the numbers displayed on the card-sets are required to be a randomly chosen distribution. Biased groups of cards are strictly prohibited. An even distribution of numbers throughout all cards in the manufacturer’s library is required. (f) Upon interruption of power to the system, the system must be capable of retaining its previous state with no loss or corruption of data upon the restoration of power. An Un-interruptible Power Supply (UPS) is recommended for system implementation but will not be considered a primary safeguard to the loss or corruption of data for testing purposes. (g) The unit number, date and time must register on the master unit when the participant logs on to the system with the input code.

History

• Source: Miss. Code Ann. § 97-33-65.

Part 15 Part 15: Fantasy Contests

Chapter 1 DEFINITIONS & FEES

13 Miss. Admin. Code Pt. 15, R. 1.1 Definitions

The terms defined in the Mississippi Gaming Control Act have the same meaning in these regulations as they have in that Act, unless the context otherwise requires. As used in these regulations, the following terms have the following definitions, unless the context requires otherwise.

(a) “Act” means the Fantasy Contest Act. (b) “Authorized internet website” means an internet website or any platform operated by a licensed operator. (c) “Commission” means the Mississippi Gaming Commission. (d) “Cash prize” means winnings in the form of cash or cash equivalents and includes credits to a player's account with an operator. (e) “Confidential information” means information related to the play of a fantasy contest by fantasy contest players obtained as a result of or by virtue of a person's employment. (f) “Entry fee” means cash or a cash equivalent that is required to be paid to an operator to participate in a fantasy contest. (g) “Executive Director” means the Executive Director of the Mississippi Gaming Commission. (h) “Fantasy contest” or “contest” means a fantasy or simulated game or contest in which: 1. Winning outcomes reflect the relative knowledge and skill of the players and are determined predominately by accumulated statistical results of the performance of individuals, including individual athletes in the case of actual sporting events; and 2. Winning outcomes are not based on the score, point spread, or any performance of any single actual sports team or combination of such teams or solely on any single performance of an individual athlete in any single actual sporting event. (i) “Operator” or “fantasy contest operator” means a person or entity that offers fantasy contests, requires an entry fee, and offers a cash prize. (j) “Highly experienced player” means a person who has either: 1. Entered more than one thousand (1,000) contests offered by a single fantasy contest operator; or 2. Won more than three (3) sports prizes of one thousand dollars ($1000.00) or more from a single fantasy contest operator. (k) “Player” means a person who participates in a fantasy contest offered by an operator. (l) “Prize” means anything of value including, but not limited to, cash or a cash equivalent, contest credits, merchandise, or admission to another contest in which a prize may be awarded. (m) “Registered player” means a person registered pursuant to this section to participate in a fantasy contest on an authorized internet website. (n) “Script” means a list of commands that a fantasy-sports-related computer program can execute to automate processes on a fantasy sports contest platform. (o) “Sporting event” means an athletic game or team competition in which an individual athlete’s performance is used to accumulate statistical results.

History

• Source: Miss. Code Ann. § 97-33-303.

13 Miss. Admin. Code Pt. 15, R. 1.2 Fees

(a) For the privilege of conducting fantasy contests in Mississippi, licensees shall pay to the Department of Revenue a fee equivalent to eight percent (8%) of the operator’s net Mississippi revenue. (b) "Net Mississippi revenue" means the amount equal to the total of all fantasy contest entry fees that an operator collects from all players, less the total of all sums paid out as cash prizes to all fantasy contest players, multiplied by the location percentage for Mississippi. (c) "Location percentage" means, for each fantasy contest, the percentage of the total entry fees collected from players located in Mississippi, divided by the total entry fees collected by that operator from all players in fantasy contests, rounded to the nearest one-hundredth of a percent (0.01%). (d) The Commissioner of Revenue shall assess and collect all taxes, fees, interest, penalties, damages, and fines imposed by this chapter, and is hereby empowered to promulgate rules and regulations to administer collection of the amounts due. The operator must register with the Department of Revenue as a fantasy operator before commencing operations with Mississippi players. Records or other documents submitted by or on behalf of the licensee to the Mississippi Gaming Commission or Executive Director shall be made available to the Commissioner of Revenue or his authorized agent upon written request. (e) The license fees levied shall be due quarterly for the periods January through March, April through June, July through September, and October through December, and payable on or before the twentieth (20 th ) day of the month next succeeding the month in which the fees accrue. The licensee shall make a return showing the net Mississippi revenue and compute the fee due for the period.

History

• Source: Miss. Code Ann. § 97-33-317.

Chapter 2 LICENSING

13 Miss. Admin. Code Pt. 15, R. 2.1 Technical Review

A fantasy contest operator shall obtain an initial, technical review and recommendation for approval from an independent testing laboratory licensed by the Commission. That written recommendation shall certify that the DFS Operator is in compliance with Mississippi Code Annotated Section 97-33-301 et. seq. and these regulations. The operator must certify annually by third-party audit that it has maintained compliance with all statutory and regulatory requirements.

History

• Source: Miss. Code Ann. § 97-33-301.

13 Miss. Admin. Code Pt. 15, R. 2.2 Licensing

An operator offering fantasy contests to be played by persons in Mississippi must obtain a license from the Commission to conduct fantasy contests within this state if the operator’s total player roster for all fantasy contests over the course of any calendar year consists of one hundred (100) or more members of the general public.

(a) An operator offering fantasy contests to be played by persons in this state must obtain a license from the Commission to conduct fantasy contests within this state. (b) An operator offering fantasy contests within this state must be lawfully conducting business within this state. (c) An application for licensure shall be made to the Executive Director on forms furnished by the Executive Director and in accordance with the rules of the Commission. The application shall include: 1. The name of the proposed licensee; 2. The location of his place or places of business; 3. The names of employees and interested individuals with substantial control of the Fantasy Contest Operator as determined by the Executive Director. 4. Complete information and details with respect to the individuals selected to be investigated by the Executive director, including antecedents, habits, character, business activities, financial affairs, criminal history and business associates, covering at least a ten (10) year period immediately preceding the date of the application; 6. Evidence of compliance with applicable requirements of the Fantasy Contest Act; and 7. Such other information and details as the Commission or Executive Director may require in order to discharge their duties properly. (d) An application for a license to conduct fantasy contests shall not be granted unless the application has satisfied the Commission that: 1. The applicant has adequate business probity, competence, and experience; and 2. The proposed financing of the entire operation is: i. Adequate for the nature of the proposed operation; and ii. From a suitable source. Any lender or other source of money or credit which the Commission finds does not meet the standards set forth in this subsection may be deemed unsuitable. (e) An application for a license to conduct fantasy contests constitutes a request for a determination of the general character, integrity, and ability to participate or engage in, or be associated with, fantasy contests of any individual associated with the applicant. Any written or oral statement made in the course of an official proceeding of the Commission or the Executive Director or any testimony of a witness testifying under oath that is relevant to the purpose of the proceeding is absolutely privileged and does not impose liability for defamation or constitute a ground for recovery in any civil action. (f) The Commission, in its discretion, may grant a license to a corporation that has complied with the provisions of Miss. Code Ann. §§ 97-33-301 through 97-33-317. (g) The Commission, in its discretion, may grant a license to a limited partnership that has complied with the provisions of Miss. Code Ann. §§ 97-33-301 through 97-33-317. (h) No limited partnership, except one whose sole limited partner is a publicly traded corporation that is licensed by the Commission, or business trust or organization, or other association of a quasi-corporate character is eligible to receive or hold any license under Miss. Code Ann. §§ 97- 33-301 through 97-33-317 unless all persons having any direct or indirect interest therein of any nature whatsoever, whether financial, administrative, policymaking, or supervisory, are individually qualified to be licensed under the provisions of Miss. Code Ann. §§ 97-33-301 through 97-33-317. (i) Only a licensee under the Gaming Control Act may offer on-premises fantasy contests in the licensee's licensed gaming establishment. An operator offering on-premises fantasy contests

under this subsection must verify that a fantasy contest player is twenty-one (21) years of age or older. (j) Each applicant for licensure as a fantasy contest operator shall pay an application fee of Five Thousand Dollars ($5,000.00). A license is valid for three (3) years. (k) An applicant shall pay all or any part of those fees and costs of investigation of such applicant as may be determined by the Executive Director. (l) A person, firm, corporation, association, agent, or employee violating the Fantasy Contest Act shall be subject to a civil penalty of not more than One Thousand Dollars ($1,000.00) for each separate violation not to exceed Fifty Thousand Dollars ($50,000.00).

History

• Source: Miss. Code Ann. § 97-33-309.
• Source: Miss. Code Ann. § 97-33-307.

Chapter 3 CONTEST RULES

13 Miss. Admin. Code Pt. 15, R. 3.1 Contest Rules

(a) Daily fantasy sports operators must have procedures in place to allow individuals to restrict themselves from entering a fantasy contest upon request and provide reasonable steps to prevent the person from entering fantasy contests offered by the operator. (b) Advertisements for contests and prizes offered by an operator shall not target prohibited participants, minors, or self-excluded persons. (c) The values of all prizes and awards offered to winning players must be established and made known to the players in advance of the contest. (d) Operators must offer introductory procedures for players that are prominently displayed on the main page of the operator's platform to explain contest play and how to identify a highly experienced player. (e) Operators must identify all highly experienced players in every fantasy contest by a symbol attached to the players' usernames, or by other easily visible means, on all platforms supported by the operator. (f) An operator shall not offer contests based on the performance of participants in collegiate, high-school, or youth sports events. (g) Representations or implications about average winnings from contests shall not be unfair or misleading. Such representations shall include, at a minimum: 1. The median and mean net winnings of all players participating in contests offered by the operator; and 2. The percentage of winnings awarded by the operator to highly experienced players participating in contests offered by the operator within the preceding calendar year. (h) Operators shall prohibit the use of third-party scripts or scripting programs for any contest and ensure that measures are in place to deter, detect, and prevent cheating to the extent reasonably possible. Cheating includes collusion and the use of cheating devices, including use of software programs that submit entry fees or adjust the athletes selected by a player. (i) Operators must segregate fantasy contest player funds from operational funds. The licensee shall submit a proposal for approval. (j) Operators must restrict the number of entries submitted by a single player for any contest as follows: 1. An operator shall not allow a player to submit more than one (1) entry in a contest involving twelve (12) or fewer players;

2. If the number of players in a contest is more than twelve (12) but fewer than thirty- seven (37), an operator shall not allow a player to submit more than two (2) entries; 3. If the number of players in a contest is at least thirty-seven (37) but no more than one hundred (100), an operator shall not allow a player to submit more than three (3) entries; and 4. In any contest involving more than one hundred (100) players, an operator shall not allow a player to submit more than the lesser of: i. Three percent (3%) of all entries; or ii. One hundred fifty (150) entries. (k) For all advertised fantasy contests, the operator must prominently include information about the maximum number of entries that may be submitted for that contest. (l) An operator may establish fantasy contests in which there is no restriction on the number of entries, if those contests constitute less than two percent (2%) of the total number of contests it offers and if the operator clearly discloses: 1. That there are no limits on the number of entries by each player in the contest; and 2. That the cost of participating in such a contest is Fifty Dollars ($50.00) or more per entry. (m) Operators must disclose the number of entries that a player may submit to each fantasy contest and provide reasonable steps to prevent players from submitting more than the allowable number. (n) Operators must reasonably provide players with an opportunity to file a Patron Dispute with the Mississippi Gaming Commission pursuant to the Fantasy Contest Act and Miss. Code Ann. § 75-76-157 through 75-76-173.

History

• Source: Miss. Code Ann. § 97-33-305.

Chapter 4 OPERATIONS

13 Miss. Admin. Code Pt. 15, R. 4.1 Player Disputes

Disputes over winnings are to be resolved under the procedures set forth in Miss. Code Ann. § 75-76-157 through 75-76-173 and conducted in accordance with 13 Mississippi Administrative Code Part 3 Chapter 8 Rule 8.1. (a) A licensed operator shall keep a record of contests for at least thirty (30) days and, in the event of a dispute, insure that all relevant data is preserved and transmitted to the Mississippi Gaming Commission.

History

• Source: Miss. Code Ann. § 97-33-313.

13 Miss. Admin. Code Pt. 15, R. 4.2 Player Registration

Operators must, at a minimum, collect player information necessary to: (a) Verify a player’s age; (b) Verify that the player is not excluded; and (c) Determine whether the player is located in Mississippi.

History

• Source: Miss. Code Ann. § 97-33-305.

13 Miss. Admin. Code Pt. 15, R. 4.3 Cash Reserve and Segregated Account Requirements

(a) The licensed operator shall maintain in the form of cash or cash equivalents, payment processor reserves and receivables, an irrevocable letter of credit, a bond, or a combination thereof, in the amount of the deposits made to the accounts of Mississippi fantasy contest players for the benefit and protection of the funds held in such accounts. For purposes of this rule cash equivalents are investments with an original maturity of three (3) months or less. (b) Funds held in player accounts of Mississippi residents shall be protected as set forth herein. A fantasy contest operator shall maintain a reserve in the form of cash, cash equivalents, or a combination thereof to protect player funds in one (1) of the following ways: 1. Cash Reserve i. The amount of the reserve shall be equal to, at a minimum, the sum of all registered players’ funds held in player accounts of Mississippi residents. ii. The reserve agreements must reasonably protect the reserve against claims of the operator’s creditors other than the authorized players for whose benefit and protection the reserve is established, and must provide the following: 1. The reserve shall be established and held in trust for the benefit and protection of authorized players to the extent the licensed operator holds money in player accounts for players; 2. The reserve must not be released, in whole or in part, except upon written instruction or approval of the Commission. The reserve must be available within ninety (90) days of written demand or written instruction. If the reserve is released to the Commission, the Commission may interplead the funds in the Hinds County Circuit Court for distribution to the authorized players for whose protection and benefit the account was established and to the other such persons as the court determines are entitled thereto, or shall take such other steps as necessary to effect the proper distribution of the funds, or may do both; 3. The licensed operator may receive income accruing on the reserve, without obtaining permission from the Commission; and 4. The licensed operator has no interest or title to the reserve. iii. The reserve must be held or issued by a federally insured financial institution and must be established pursuant to a written agreement between the licensed operator and the financial institution. iv. The proposed reserve arrangement is not effective until the Commission’s written approval has been obtained. v. The reserve arrangement agreements may be amended only with the prior written approval of the commission. 2. Special Purpose Segregated Account with a Separate Corporate Entity i. A fantasy contest operator may establish a special purpose segregated account that is maintained and controlled by a properly constituted corporate entity that is not the fantasy contest operator and whose governing board includes one (1) or more corporate directors who are independent of the fantasy contest operator.

ii. The special purpose segregated account with a separate corporate entity must hold, at a minimum, the sum of all authorized player funds held in player accounts of Mississippi residents for use in fantasy contests. iii. The special purpose segregated account must reasonably protect the funds against claims of the operator’s creditors other than the authorized players for whose benefit and protection the special purpose segregated fund is established, and must provide that: 1. The segregated account is established and held for the benefit and protection of authorized players; 2. The fantasy contest operator may receive income accruing on the segregated account. However, the fantasy contest operator has no interest in or title to the segregated account; and 3. The funds in the segregated account held for the benefit of Mississippi residents may only be distributed for the following: i. Payment to players upon completion of fantasy contests or otherwise for the reconciliation of player accounts; ii. For income earned on the account, to the fantasy contest operator; iii. To the Commission in the event that the fantasy contest operator’s license expires, is surrendered, or is otherwise revoked. The Commission may interplead the funds in the Hinds County Circuit Court for distribution to the authorized players for whose protection and benefit the account was established and to other such persons as the court determines are entitled thereto, or shall take such other steps as necessary to effect the proper distribution of the funds, or may do both; or iv. As authorized in writing in advance by any agreement approved by the Commission. iv. The corporate entity must require a unanimous vote of all corporate directors to file bankruptcy. v. The corporate entity must obtain permission from the Commission prior to filing bankruptcy or entering into receivership. vi. The corporate entity must have articles of incorporation that prohibit commingling of funds with that of the fantasy contest operator except as necessary to reconcile the accounts of players with sums owed by those players to the fantasy contest operator. vii. The corporate entity must be restricted from incurring debt other than to players pursuant to the rules that govern their accounts for contests. viii. The corporate entity must receive written approval from the Commission prior to taking on obligations of the fantasy contest operator other than obligations to players pursuant to the rules that govern their accounts for contests. ix. The corporate entity must be prohibited from dissolving, merging, or consolidating with another company without the written approval of the Commission while there are unsatisfied obligations to fantasy contest players. 3. Irrevocable letter of credit, or other method as approved by the Commission.

(c) If, at any time, the licensed operator’s total available cash and cash equivalent reserve is less than the amount required, the licensee shall notify the Commission of this deficiency within forty-eight (48) hours. (d) Each licensed operator shall continuously monitor and maintain a record of all player deposits and its cash reserves to ensure compliance with the cash reserves requirement. (e) The licensed operator shall provide the Commission with documentation of both the amount of deposits in players’ accounts and the amount in cash reserves as of the last day of each month by the twentieth (20 th ) day of the following month.

History

• Source: Miss. Code Ann. § 97-33-305(2)(k)

Chapter 5 AUDITS & INVESTIGATIONS

13 Miss. Admin. Code Pt. 15, R. 5.1 Procedures

A fantasy contest operator offering fantasy contests with an entry fee in this state shall comply with audit procedures adopted by the Commission to ensure compliance with this section. (a) The Executive Director shall make appropriate investigations: 1. To determine whether there has been any violation of Miss. Code Ann. §§ 97-33-301 through 97-33-317 or of any regulations adopted thereunder; 2. To determine any facts, conditions, practices or matters which he may deem necessary or proper to aid in the enforcement of any such law or regulation; 3. To aid in adopting regulations; 4. To secure information as a basis for recommending legislation relating to Miss. Code Ann. §§ 97-33-301 through 97-33-317; and 5. To determine annual compliance with Miss. Code Ann. §§ 97-33-301 through 97-33- 317. (b) A fantasy contest operator must annually provide a third-party audit of its operations to the Commission. This audit must be performed to certify to the Commission that the operator is complying with all operational, financial, and technical requirements of the Fantasy Contact Act and these regulations. (c) A fantasy contest operator must provide audited financial statements to the Commission within ninety (90) days after the last day of the operator’s fiscal calendar year. (d) A fantasy contest operator must comply with any additional audit procedures and requirements that the Commission may prescribe to ensure compliance with applicable laws and regulations.

History

• Source: Miss. Code Ann. §§ 97-33-305(4) and 97-33-315.

13 Miss. Admin. Code Pt. 15, R. 5.2 Investigations

(a) If after any investigation the Executive Director is satisfied that a license should be limited, conditioned, suspended, or revoked, he shall initiate a hearing by filing a Complaint with the Commission and transmit therewith a summary of evidence in his possession bearing on the matter and the transcript of testimony at any investigative hearing conducted by or on behalf of the Executive Director to the licensee.

(b) Upon receipt of the Complaint of the Executive Director, the Commission shall review all matters presented in support thereof and shall appoint a hearing examiner to conduct further proceedings. (c) After proceedings required by Miss. Code Ann. §§ 97-33-301 through 300 97-33-317, the hearing examiner may recommend that the Commission take any or all of the following actions: 1. As to operations at a licensed gaming establishment under Miss. Code Ann. § 97-33- 307(5): i. Limit, condition, suspend, or revoke the license of any licensed gaming establishment or the individual license of any licensee without affecting the license of the establishment; and ii. Order an operator to exclude an individual licensee from the operation of the registered business or not to pay the licensee any remuneration for services or any profits, income, or accruals on his investment in the licensed gaming establishment. 2. Limit, condition, suspend, or revoke any license granted to any applicant by the Commission; 3. Fine each licensee for any act or transaction for which Commission approval was required or permitted, as provided in Miss. Code Ann. § 97-33-309. (d) The hearing examiner shall prepare a written decision containing his recommendation to the Commission and shall serve it on all parties. Any party disagreeing with the hearing examiner's recommendation may ask the Commission to review the recommendation within ten (10) days of service of the recommendation. The Commission may hold a hearing to consider the recommendation whether there has been a request to review the recommendation or not. (e) If the Commission decides to review the recommendation, it shall give notice of that fact to all parties within thirty (30) days of the recommendation and shall schedule a hearing to review the recommendation. The Commission's review shall be de novo but shall be based upon the evidence presented before the hearing examiner. The Commission may remand the case to the hearing examiner for the presentation of additional evidence upon a showing of good cause why the evidence could not have been presented at the previous hearing. If the Commission does not decide to review the recommendation within thirty (30) days, the recommendation becomes the final order of the Commission. If the Commission limits, conditions, suspends, or revokes any license, or imposes a fine, it shall issue its written order therefor after causing to be prepared and filed the hearing examiner's written decision upon which the order is based. (f) Any limitation, condition, revocation, suspension, or fine is effective until reversed upon judicial review, except that the Commission may stay its order pending a rehearing or judicial review upon such terms and conditions as it deems proper. (g) Judicial review of an order or decision of the Commission may be had to the Chancery Court of the First Judicial District of Hinds County, Mississippi, as a case in equity. (h) A license is automatically revoked if the individual is convicted of a felony in any court of this state, another state, or the United States or if the individual is convicted of a crime in any court of another state or the United States which, if committed in this state, would be a felony. An appeal from the conviction shall not act as a supersedeas to the revocation required by this subsection.

History

• Source: Miss. Code Ann. § 97-33-315.