Title 179 W. Va. C.S.R.

Lottery Commission Lottery Commission

Series 01 West Virginia Lottery State Lottery Rules

W. Va. Code R. § 179-1-1 General

1.1. Scope and Purpose. -- The purpose of this rule is to provide for the organization and structure of the operation of the West Virginia Lottery, provide for licensing of agents for the sale and dispensing of lottery tickets and materials and lottery games, and the operation of computer terminals for lottery games.

1.2. Authority -- W. Va. Code §§29-22-5, 9(b), 9(c), 10, 16 and 17.

1.3. Filing Date – April 14, 2022.

1.4. Effective Date – July 1, 2022.

1.5. Sunset Provision. -- This rule shall terminate and have no further force or effect upon August 1, 2027.

W. Va. Code R. § 179-1-2 Definitions

2.1. "Act" or "State Act" means the State Lottery Act, West Virginia Code §29-22-1 et seq.

2.2. "Agency" and “Lottery” mean the State Lottery, its Director and the State Lottery Commission and its Commissioners which operate and administer the West Virginia State Lottery, pursuant to authority granted under the Act.

2.3. "Bank" means and includes all commercial banks, mutual savings banks, savings and loan associations, credit unions, trust companies, and any other type or form of banking institution organized under the authority of the State of West Virginia or the United States of America whose principal place of business is within the State of West Virginia and which is designated to perform banking institution functions, activities, or service in connection with the operations of the Lottery for the deposit and handling of lottery funds, the accounting of the funds and the safekeeping of records.

2.4. “Bar code validation” means a system which allows any winning lottery ticket, printed with computer readable bar codes to be read electronically.

2.5. "Bonus-Incentive Plan" means one or more incentive plans the Commission may develop as additional compensation for the agents and retailers. The bonuses and incentives combined may not exceed one percent (1%) of annual gross sales from lotteries authorized pursuant to W.Va. Code §29-22-1 et seq.

2.6. "Certification" means a multi-state lottery association declaration of the number of winners and authorization of the payment of prizes for the PowerBall® game and winners of any other game offered through a multi-state lottery association of which the West Virginia Lottery is a member.

2.7. "Certified Drawing" means a number selection event about which the Lottery and an independent certified public accountant attest that the drawing equipment functioned properly and that a random selection of a winning combination occurred.

2.8. "Commission" or "State Lottery Commission" means the State Lottery Commission created by the State Lottery Act.

2.9. "Depository" means any person, including a bank or state agency, or lottery Vendor of Record performing activities or services in connection with the operation of the Lottery for the deposit and handling of lottery funds, the accounting for lottery funds, and the safekeeping of lottery tickets or record of play.

2.10. "Director" means the individual appointed by the Governor to provide management and administration necessary to direct the Lottery office or any other person to whom the Director's authority is lawfully delegated.

2.11. “Dormant account” means an iLottery account, which has had no patron initiated activity for a period of sixteen (16) months.

2.12. "Drawing" means the procedure determined by the Director by which the Lottery selects the winning combination in accordance with the game rules of the particular lottery game.

2.13. "Draw Game" means a lottery game in which a player pays a fee to a lottery agent and selects a combination of digits, numbers, or symbols, the type and amount of play, and the drawing date, and receives a computer-generated lottery ticket with those selections recorded for a drawing.

2.14. "Employee of the Agency" means a person who is an employee of the agency and the commission unless the context clearly indicates otherwise.

2.15. "Game" means any individual or particular type of lottery authorized by the agency.

2.16. “iLottery” and/or “interactive Lottery” means a system that provides for the distribution of lottery products through numerous channels that include, but are not limited to, web applications, mobile applications, mobile web, tablets and social media platforms that allow a registered iLottery player to interface through a portal for the purpose of obtaining lottery products and ancillary services, such as account management, game purchase, game play and prize redemption.

2.17. "Instant Game" means a game in which a lottery ticket is purchased and upon removal of a latex covering on the front of the lottery ticket or the opening of the sealed lottery ticket, the ticket bearer determines his or her winnings, if any, which are payable upon presentation to a lottery retailer or to the Lottery for payment.

2.18. "Lottery Game" means the public gaming system or games established and operated by the Lottery office.

2.19. "Lottery Retailer" and/or "Sales Agent" means any person or third party, not including Special Licensed Retailers, licensed by the Commission to sell and dispense lottery tickets and materials or lottery games, and to operate electronic terminals and lottery games for sales and dispensing, unless otherwise authorized.

2.20. "Lottery Ticket" or "Tickets" means a printed card or slip, formally known as a ticket, or other tangible evidence of participation used in any lottery games or gaming systems, including but not limited to iLottery, instant and draw games.

2.21. "Multi-factor authentication" means a type of strong authentication that uses two of the following to verify a patron's identity:

2.21.1. Information known only to the patron, such as a password, pattern, or answers to challenge questions; or

2.21.2. An item possessed by a patron such as an electronic token, physical token or an identification card; or

2.21.3. A patrons biometric data, such as fingerprints, facial or voice recognition.

2.22. "Person" means a human being, association, corporation, club, trust, estate, society, governmental entity, company, joint stock company, receiver, trustee, assignee, referee, and anyone acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of human beings.

2.23. “Personally identifiable information” or “PII” means any data that could potentially be used to identify a particular person. Examples include, but are not limited to, a full name, Social Security Number, driver’s license number, birth date, age, bank account number, credit card number, debit card number, and email address. Generally two or more of these can identify a specific person depending on the uniqueness of the identifiers within a specific geographic area.

2.24. "Play Numbers" means the numbers or symbols appearing in the designated areas as under the removable covering on the front of the ticket.

2.25. "Prize" means any award, financial or otherwise, awarded by the Commission.

2.26. "Provisional License" means a license issued by the Commission which temporarily authorizes a person to act as a lottery retailer or lottery sales agent pending processing of the annual license or renewal.

2.27. “Special Licensed Retailer” means any person or third party, not including a Lottery Sales Agent or Lottery Retailer, licensed by and contracting with the commission to provide iLottery gaming systems pursuant to W. Va. Code §29-22-9(c), §29-22-10.

2.28. "Ticket Bearer" means the person who has signed the lottery ticket, has possession of the unsigned lottery ticket, or has been registered to own the lottery ticket.

2.29. "Ticket Number" means a unique series of numbers, or a serial number which identifies that particular lottery ticket as a unique, authorized, and recorded ticket of a game.

2.30. "Ticket Stock Number" means the printed number or numbers appearing on the back of, or associated with, each lottery ticket.

2.31. "Unclaimed Prize" means the prize on a winning lottery ticket for which no claim is made within 180 days after the drawing or winner selection event which made the lottery ticket a winning ticket or 180 days after the announced end of an instant game.

2.32. "Unclaimed Prize Account" means the West Virginia Lottery account to which all unclaimed prizes are transferred after the 180 day period specified in subsection 2.31 of this rule.

2.33. "Validation" means the process of determining whether a lottery ticket presented for payment is a winning lottery ticket.

2.34. "Validation Number" means the multi-digit number associated with, or found on the face of the lottery ticket. There must be a validation number associated with each lottery ticket.

2.35. “Vendor of Record” means a third party who contracts with the lottery, directly or indirectly, to carry out or perform lottery activities provided for therein.

2.36. "Winner of an instant game" means the holder of an instant lottery ticket determined to have the required match or the specific alignment of the play numbers, digits or symbols or the required sum of the play numbers or digits in accordance with the game rules for the specific game.

2.37. "Winner selection" means the drawing process, physically or programmatically used by the West Virginia State Lottery Commission to select the winning numbers in draw games with the drawings results presented to the public by the Lottery Commission.

2.39. "Winning Combination" means numbers or symbols chosen during the drawing process used by the West Virginia State Lottery Commission to select the winning numbers in draw games with the drawings results presented to the public by the Lottery Commission.

W. Va. Code R. § 179-1-3 Financial Administration

3.1. Collection of Accounts - Agents and retailers shall establish private banking accounts in which to deposit payments for the purchase of lottery tickets or receipts from draw sales.

3.1.a. The funds in each of the accounts established under this section shall be swept by electronic funds transfer (“EFT”) and/or an Automated Clearing House (“ACH”) transfer to an account of the State Treasurer as provided for in paragraph 3.2.b.1 of this section.

3.1.b. The Director may authorize other methods of collection such as intra-governmental transfers in the case of other state agencies.

3.2. State Lottery Fund - The Director shall implement the State Lottery Fund which shall consist of a group of accounts within the State Treasury.

3.2.a. The accounts shall be established in accordance with applicable provisions of state law, and any applicable rules of the State Treasurer.

3.2.b. In implementing the State Lottery Fund, the following accounts shall be used:

3.2.b.1. Revenues and Transfers Account - This account shall consist of all revenue received from the sale of lottery tickets. Transfers shall be made from this account for prizes, net profit, and operation and administration expenses, in amounts and for the purposes established by W.Va. Code §29-22-18. Net profits shall be transferred to the accounts to which the Legislature has appropriated them. If net profits for any particular year exceed the amount appropriated by the Legislature, the excess funds shall be held in this account until such time as they are appropriated. The funds in this account shall be invested in the State Consolidated Fund until the point of transfer and are interest bearing.

3.2.b.2. Operation and Administration Expenses Account - This account shall consist of transfers made from the Revenues and Transfers Account not to exceed fifteen percent (15%) of net lottery revenue. In the event that the balance of this account is equal to or greater than two hundred fifty thousand dollars ($250,000), any excess over that amount shall be considered and allocated as net profit.

3.2.b.3. Jackpot Prize Trust Account - This account shall consist of jackpot prizes accumulated for the purpose of buying annuities for the payment of prizes due the winners over a period of years. Also, as the annuities mature, the funds shall be held in this account until payment is made to the winners.

3.3. Prize Disbursement Account - The Director shall establish a Prize Disbursement Account, in a private banking institution, which shall permit the immediate payment of lottery prizes, by check, EFT and/or an ACH payment, to the winners.

3.3.a. The total expenditures from the Prize Disbursement Account and the Jackpot Prize Trust Account combined with any prizes paid by the sales agents and retailers, shall be a minimum annual average of forty-five percent (45%) of gross amount received.

3.3.b. The Prize Disbursement Account shall be a demand deposit account established by the Director in accordance with applicable law and rules of the State Treasurer funded daily by transfers from the Revenue and Transfers Account.

3.3.c. Access to the account for purposes of drawing checks shall be limited to those persons expressly authorized by the Director to operate secure check writing machines and who are provided security keys and computer keys for their operation incident to their official duties.

3.3.d. All checks issued from the Prize Disbursement Account shall prominently display the logo of the West Virginia Lottery.

3.3.e. Checks in payment of prizes drawn upon the Prize Disbursement Account may be issued under the signature of the Director or the authorized facsimile of his or her signature.

3.3.f. The Director may also cause checks to be issued from the Prize Disbursement Account to lottery sales agents and lottery retailers to fulfill obligations of a bonus-incentive plan.

3.3.g. The agency shall settle retailer and agent accounts no less frequently than weekly, unless the Director specifies a different time.

3.3.h. The Director may make payments from the Prize Disbursement Account to sales agents and retailers for purposes of refund or credit for unsold lottery tickets, other lottery ticket sales adjustments or instant game account adjustments.

W. Va. Code R. § 179-1-4 Licensing

4.1. The Commission shall license as lottery sales agents and as lottery retailers those persons who will, in the judgment of the Commission, meet the statutory requirements for licensing, promote the sale of lottery tickets and materials, promote the best interest of the Lottery and of the State, and achieve the goals of the statute.

4.1.a. Any person interested in obtaining a license as a lottery retailer or licensed lottery sales agent shall first file an application with the Director on a form supplied for that purpose by the Director. The application form shall be designed to solicit sufficient relevant information from an applicant to permit the Director to make the determination required by the Lottery Act and this rule for issuance of a license by the Commission.

4.1.b. The license of a licensed lottery sales agent or lottery retailer in any capacity is a privilege personal to that person and is not a legal right. The license is revocable by the Director. A licensed lottery sales agent or lottery retailer may surrender the license to the Director.

4.2. Eligibility for licensing. Any person may submit an application for licensing as a lottery agent or retailer, except:

4.2.a. No person may submit an application who will engage in business solely as a licensed lottery sales agent or lottery retailer, except for those third party vendors licensed by and contracted with the Lottery to provide iLottery sales as a Special Licensed Retailer;

4.2.b. No person under the age of twenty-one (21) may submit an application for licensing as a lottery sales agent or lottery retailer;

4.2.c. No person may submit an application who is a member of the Commission or an employee of the agency, or who is the spouse, child, brother, sister or parent, by blood or marriage, residing as a member of the same household or in the principal place of abode of a member of the Commission or employee of the agency;

4.2.d. No person may submit an application who is a vendor of lottery tickets or material or data processing services, or, which is owned by, controlled by, or affiliated with a vendor of lottery tickets or materials or data processing services, provided that this rule does not apply to the operation of iLottery by a Special Licensed Retailer;

4.2.e. No foreign corporation may submit an application unless it is currently registered to do business within the State of West Virginia; and,

4.3. Disqualification, grounds of refusal of a license.

4.3.a. The Commission shall require all new applicants for licenses to furnish fingerprints for a national criminal records check by the Criminal Identification Bureau of the West Virginia State Police and the Federal Bureau of Investigation. The fingerprints shall be furnished by all persons required to be named in the application and shall be accompanied by a signed authorization for the release of information by the Criminal Investigation Bureau and the Federal Bureau of Investigation.

4.3.b. The Commission may require any applicant seeking the renewal of a license to furnish fingerprints for a national criminal records check by the Criminal Identification Bureau of the West Virginia State Police and the Federal Bureau of Investigation. The West Virginia Lottery may require all or any part of the persons required to be named in an application to provide fingerprints and the fingerprints shall be accompanied by a signed authorization for the release of information by the Criminal Investigation Bureau and the Federal Bureau of Investigation.

4.3.c. The Commission shall refuse to grant a license to any person who is subject to an exception to subsection 4.2. of this rule or to any applicant who has been convicted of a violation of:

4.3.c.1. W. Va. Code §29-22-1 et seq.;

4.3.c.2. Any felony; or

4.3.c.3. Any crime related to theft or gambling unless within the discretion of the Commission, it is determined that an appropriate amount of time has elapsed since the conviction to ensure rehabilitation of the applicant: Provided, that upon conviction of the crimes enumerated in this subdivision 4.3.c.3 of this subsection a current licensee is disqualified from holding a license for a period of at least five years: Provided, however, that no applicant may be licensed if convicted of the crimes enumerated in this paragraph within the five year period immediately preceding the filing of an application for a license.

4.4. Issuance of licenses. Upon receipt, review and investigation of applications and applicant background, the Commission may issue annual licenses for sales or distribution of lottery tickets in accordance with this rule. The Commission shall license only those persons or entities which, in its opinion, will best serve the public interest and public trust in the Lottery and promote the sales of lottery tickets. Prior to issuing any license, the Commission shall consider the following factors:

4.4.a. The moral character and reputation of the applicant;

4.4.b. The financial responsibility and security of the applicant and his or her business or activity;

4.4.c. The accessibility of the public to the licensed premises proposed by applicant;

4.4.d. The number and sufficiency of existing licenses to serve the public interest;

4.4.e. The volume of applicant's expected lottery ticket sales;

4.4.f. The security and efficient operation of the Lottery;

4.4.g. Whether the applicant is ineligible under any provisions of the Lottery Act;

4.4.h. Whether the applicant has received or will hold, either as principal, entity, subsidiary agent, or subcontractor more than twenty-five percent (25%) of the licenses to act as lottery sales agent in any one (1) county or municipality, or more than five percent (5%) of the licenses issued statewide, unless eligible for consideration for an exception under the Act;

4.4.i. Whether the applicant has provided false or misleading information or has misrepresented information regarding qualifications or fitness for licensure;

4.4.j. Whether the applicant is a West Virginia corporation or is currently licensed to do business within the State of West Virginia and whether the applicant's state taxes are current; and

4.4.k. Whether any person listed on the application owes an unpaid debt to the West Virginia Lottery other than a debt extinguished by bankruptcy discharge.

4.5. Revocation; grounds for removal or suspension of license or non-renewal of license.

4.5.a. The Commission may, for any reason outlined in this section, or for other cause shown revoke, suspend, or decline to renew a license of a lottery sales agent or lottery retailer.

4.5.b. If at any time after issuance of a license, it is determined by the Director that a licensed lottery sales agent or lottery retailer would no longer meet the standards for the issuance of a license provided in this rule, he or she may immediately suspend the license. The suspension shall remain in effect until the reason for suspension has abated, or in the alternative, he or she may ask the Commission to revoke the license.

4.5.c. If the licensed lottery sales agent or lottery retailer fails to observe and comply with the procedures and the rules of the Commission or with the provisions of the Lottery Act, or orders or instructions of the Director, the Commission may suspend or revoke the license of that person.

4.5.d. Additional grounds for suspension or revocation of license.

4.5.d.1. Non-compliance with Lottery Act or Rules. The Director may suspend or recommend to the Commission that it revoke the license of a licensed lottery sales agent or lottery retailer who does not comply with the Lottery Act and all rules, conditions, standards and other policies adopted, promulgated or issued under the Lottery Act, by the Commission or the Director.

4.5.d.2. Violation of prohibitions. The Commission may suspend or revoke the license of any licensed lottery sales agent or lottery retailer who violates one of the prohibitions set out in the subparagraphs of this paragraph.

4.5.d.2.A. A licensed lottery sales agent or lottery retailer shall not sell a lottery ticket at a price greater than or less than that stated by the Commission.

4.5.d.2.B. A licensed lottery sales agent or lottery retailer shall not sell a lottery ticket at a location or premises different than that shown on the license certificate.

4.5.d.2.C. A licensed lottery sales agent or lottery retailer shall not permit any other person to sell lottery tickets consigned to him or her; provided that a licensed lottery sales agent or lottery retailer may sell lottery tickets through his or her employees.

4.5.d.2.D. No licensed lottery sales agent or lottery retailer shall sell a lottery ticket to any person under eighteen (18) years of age.

4.5.d.2.E. No licensed lottery sales agent or lottery retailer, directly or indirectly, on behalf of himself or herself, or another, nor any organization, shall invite, solicit, demand, or offer or accept any payment, contribution, favor, or other consideration to influence the award, renewal or retention of a license.

4.5.d.2.F. A lottery ticket shall not be purchased with food stamps or other government food subsidy coupons and the licensed lottery sales agent or lottery retailer shall not accept as consideration for a lottery ticket food stamps or other government food subsidy coupons nor any other coupons whatsoever unless specifically sanctioned and/or offered by the West Virginia Lottery Commission and securely identified as sanctioned.

4.5.d.2.G. A licensed lottery sales agent or lottery retailer shall not transfer lottery ticket stock, used for lottery terminals, between stores in the same chain unless the transfer is consented to in writing by a person authorized by the Director to consent.

4.5.d.2.H. A licensed lottery sales agent or lottery retailer shall not transfer lottery tickets between individual stores in the same chain unless such is requested of, and approved by the Lottery and the move recorded on the Lottery gaming systems.

4.5.d.2.I. A licensed lottery sales agent or lottery retailer shall not sell any lottery ticket, lottery chance or lottery product unless the game being sold is approved by the Commission.

4.5.d.2.J. Licensed lottery sales agents and retailers may sell lottery tickets on a credit basis by accepting only a bank issued credit or debit card for the purchase thereof. Licensed lottery sales agents and retailers may establish a minimum amount for a debit or credit card transaction but in no event can a single transaction for the purchase of lottery tickets exceed $200.00.

4.5.d.3. Grounds relating to the honest and efficient conduct of the Lottery. The Director may suspend or recommend to the Commission the revocation of a licensed lottery sales agent's or lottery retailer's license for any of the following:

4.5.d.3.A. The licensed lottery sales agent or lottery retailer has made a fraudulent misrepresentation in connection with his or her application for a license, in any of his or her reports, or to any person in connection with a lottery transaction;

4.5.d.3.B. The licensed lottery sales agent or lottery retailer has failed to maintain the sales levels set for him or her by the Director;

4.5.d.3.C. The licensed lottery sales agent or lottery retailer has begun to engage in the sale of lottery tickets as his or her sole business, occupation or activity;

4.5.d.3.D. The licensed lottery sales agent or lottery retailer has failed to take adequate security precautions for the safe handling of lottery tickets, lottery materials or lottery ticket sales proceeds due from the licensed lottery sales agent's or lottery retailer's ticket sales;

4.5.d.3.E. The licensed lottery sales agent or lottery retailer has failed to regularly, promptly and accurately settle the accounts of his or her lottery transactions and pay the amounts due from the licensed lottery sales agent's or lottery retailer's ticket sales;

4.5.d.3.F. The licensed lottery sales agent or lottery retailer has failed to notify the Director of any change in ownership;

4.5.d.3.G. The licensed lottery sales agent or lottery retailer has failed to open his or her books or records for reasonable inspection by the Lottery Commission or Director;

4.5.d.3.H. The licensed lottery sales agent or lottery retailer has failed to display his or her license or required advertising and display material; or

4.5.d.3.I. The licensed lottery sales agent or lottery retailer has failed to make a report of a violation of this rule or the retailer’s conviction of any felony or crime related to theft or gambling. At any time during the term of his or her license, if a lottery retailer or a licensed lottery sales agent is convicted of a felony or a gambling related offense, the lottery retailer or licensed lottery sales agent or licensee shall within fourteen (14) days, notify the Director, in writing, of the conviction and the offense. For purposes of this section, a licensed lottery sales agent or lottery retailer includes any natural person or in the case of other persons, as defined in subsections 2.14 and 2.15 of this rule, any person who holds ownership or a controlling interest in the entity.

4.6. Transfers of licenses; licensed premises.

4.6.a. Licenses nontransferable. Each license shall authorize a specified person to sell lottery tickets at a specified location. No license may be transferred to another person. If the control of a licensed lottery sales agent or lottery retailer changes hands, the licensed lottery sales agent or lottery retailer may not sell any more lottery tickets until he or she has submitted a new license application and the Director has issued a new license.

4.6.b. Change of location. If a licensed lottery sales agent or lottery retailer changes the location of his or her place of business, he or she shall not sell lottery tickets at the new location until the Director has authorized the transfer of lottery sales agent's or lottery retailer's license to the lottery sales agent's or lottery retailer's new location. The Director shall consider all information concerning the licensed lottery sales agent's or lottery retailer's new location in the manner which would be required were the licensed lottery sales agent or lottery retailer making an initial application for a license at that location.

4.7. License term and renewal, fees.

4.7.a. Provisional licenses. Pending a final resolution of any question arising in respect of a licensing decision, the Director may issue a license subject to any terms and conditions he or she considers appropriate. Any provisional license expires on the expiration date shown on its face which in any case shall not be more than one (1) year from the date the provisional license is issued.

4.7.b. Annual license. Every holder of a license, other than a provisional license, shall renew the license annually, by July 1.

4.7.c. Temporary license. For specific events and activities or under special conditions and for limited duration the Director may issue to organizations or other persons a temporary license for the duration of the event or conditions with special terms the Director considers desirable.

4.7.d. License fees.

4.7.d.1. Upon initial application for licensing as a lottery retailer, the applicant shall pay to the Commission a non-transferable non-refundable license fee of twenty-five dollars ($25.00).

4.7.d.2. Upon initial application for installation of a lottery sales terminal, the applicant shall submit a fee of two hundred fifty dollars ($250), which shall be a deposit refundable only under certain terms to be set out in the Lottery contract for lottery sales agents.

4.7.d.3. Upon application for renewal of licensing as a lottery retailer or licensed lottery sales agent, all lottery retailers shall submit a uniform annual fee of twenty-five dollars ($25.00).

4.7.d.4. After the initial year of operation as a lottery sales agent, the agent may be charged a uniform weekly service fee of five dollars ($5.00) as long as the agent weekly average sales of meet or exceed the uniform standards set by the Commission. When any agent's weekly average sales is less than the minimum amount set by the Commission, the agent may be required to reimburse the Commission for the difference of the minimum amount set by the Commission and the agent’s weekly average sales. The weekly average sales standards shall be set in a reasonable and uniform amount to cover the Commission's estimated cost of providing services and equipment related to the sale of lottery products at the agent’s licensed location: Provided, That such services and equipment are limited to those provided pursuant to the relevant terms of the Lottery’s contract with its central system and services vendor and at no point shall any reimbursement exceed three hundred fifty dollars ($350).

4.7.d.5. In the event that a business changes ownership and a lottery terminal is in place and operating and the new owner meets all other requirements for licensing as a lottery retailer, there shall be no initial installation fee and the agent may be charged the uniform weekly service fee of up to five dollars ($5.00) effective from the first day of operation.

4.8. Bonds

4.8.a. Each lottery sales agent shall participate in the Financial Guarantee Bond program provided by the Lottery in the amount of at least ten thousand dollars ($10,000) for each terminal on the premises. The bond shall be renewed on an annual continuing basis. Payment for bonding shall be made by Electronic Funds Transfer from the sales agents' bank accounts to the lottery's Revenues and Transfers Account each year.

4.8.b. If it is determined by the Director that the lottery sales agent should be bonded for an amount and in a form and manner different from the Financial Guarantee Bond of at least ten thousand dollars ($10,000), or if other security should be provided by the agent to ensure the performance of the agent's duties and responsibilities as a licensed lottery agent or the indemnification of the Commission, the Director shall determine the amount, form and manner of the coverage.

4.9. Contract

4.9.a. The Director shall enter into a contract with each lottery retailer and licensed lottery sales agent. The contract shall set out the duties, responsibilities, and obligations pertaining to the parties to the contract. The contract shall continue in effect during the period which the retailer or agent complies with applicable statutes, rules, fee requirements, and any other duties or requirements under the terms of the contract.

W. Va. Code R. § 179-1-5 Instant Games

5.1. The Director may select, operate and contract to and for the operation of instant games which meet the criteria generally set forth in this section.

5.2. Instant game criteria.

5.2.a. The price of an instant game lottery ticket shall not be more than $50.00 except by special promotions authorized by the Director.

5.2.b. Winners of an instant game are determined by the matching or specified alignment of the play numbers, digits and symbols on the lottery ticket. The ticket bearer shall notify the Lottery of the win and submit the winning lottery ticket to the Lottery as specified by the Director. The winning lottery ticket shall be validated by the Lottery through the use of the validation number and any other means as specified by the Director.

5.2.c. The instant game shall be designed to pay out prizes in amounts on a numerical frequency to be determined by the Director.

5.2.d. The duration of lottery ticket sales for an instant game shall be determined by the Director. The start date and closing date of the instant game shall be publicly announced.

5.2.e. The frequency of drawing and the method of selection of a winner in any instant game shall be determined by the Director in specific game rules.

5.2.f. At the Director's discretion, an instant game may include a special prize drawing or drawings as well as other methods of awarding the moneys accumulated in the unclaimed prize fund which will also stimulate the broad variety of games offered by the West Virginia Lottery. The Director shall follow Commission procedure for the payment of additional prizes from the unclaimed prize fund within the game rules structure.

5.2.g. The procedures for claiming instant prizes are as follows:

5.2.g.1. A claimant shall present the winning lottery ticket for a prize of $600 or less to any lottery retailer or licensed lottery sales agent or mail the signed lottery ticket to the Director. Additionally, selected retailers approved by the commission may redeem lottery tickets for a prize of $600 to $5,000. The lottery retailer or licensed lottery sales agent shall verify the claim and, if the claim is a valid winner, make payment of the amount due the claimant. In the event the lottery retailer or licensed lottery sales agent cannot verify the claim, the claimant shall fill out a claim form, as provided by the Director, which may be obtained from any lottery retailer or licensed lottery sales agent and present or mail the completed form, together with the disputed lottery ticket to the Director. A payment in the form of a check, EFT and/or an ACH payment or credit to an established iLottery account shall be made to the claimant in payment of the amount due if the claim is validated by the Director. In the event that the claim is not validated by the Director, the claimant shall be promptly notified that his or her claim is denied.

5.2.g.2. The claimant of a prize of more than $600 shall complete a claim form and mail or present the form together with the winning lottery ticket to the Director, or designee. Upon validation by the Director, a check shall be forwarded to the claimant in payment of the amount due, less any applicable federal and state income tax withholdings and less any withholding requested by the child support enforcement division. In the event that the claim is not validated by the Director, the claim shall be denied and the claimant shall be notified within five (5) days of the determination.

5.2.g.3. Any lottery ticket not passing all the validation checks specified by the Director is invalid and ineligible for any prize and shall not be paid. However, the Director may, solely at his or her option, replace an invalid lottery ticket with an unplayed lottery ticket or tickets of equivalent sales price from any other current game or issue a refund of the sales price. In the event a defective lottery ticket is purchased, the only responsibility or liability of the Director is the replacement of the defective lottery ticket with another unplayed lottery ticket or tickets of equivalent sale price from any other current game.

5.3. Confidentiality of tickets. No licensed lottery sales agent or lottery retailer or its employees or agents shall attempt to ascertain the numbers or symbols appearing in the designated areas under the removable latex coverings or otherwise attempt to identify winning lottery tickets by any means.

5.4. The Director is not required to provide Commission members with copies of specific rules for instant games.

5.5. Official end of game.

5.5.a. The Director shall announce the official end of each instant game. A player may submit a winning lottery ticket of $600 or less to the licensed lottery sales agent or lottery retailer from whom the lottery ticket was purchased or to the Lottery’s administrative office or other designated site and a winning lottery ticket of more than $600 to the Lottery’s administrative office or other designated site for prize payment up to one hundred eighty (180) days after the official end of game. In order to participate in a special prize drawing, a player shall redeem a lottery ticket which qualifies for entry into that special prize drawing within the time limits set forth by the Director governing the conduct of that specific game.

5.5.b. A lottery retailer or licensed lottery sales agent may continue to sell lottery tickets for each instant game up to one hundred eighty (180) days after the official end of that game.

5.5.c. A licensed lottery sales agent or lottery retailer shall return to the Lottery full packs of unsold and unopened lottery tickets for each game within thirty (30) days of the official end of that game in order to receive credit from the Lottery as provided for in the licensed lottery sales agent or lottery retailer contract. The Lottery has no obligation to grant credit for lottery tickets returned more than thirty (30) days after the official end of that game.

5.6. Lottery Ticket validation requirements. Any lottery ticket not passing all the validation requirements in this subsection and the specific validation requirements contained in the rules for its specific game is invalid and ineligible for any prize. To be a valid West Virginia Lottery instant game lottery ticket, it shall meet all of the following validation requirements:

5.6.a. The lottery ticket was issued by the Director in an authorized manner;

5.6.b. The lottery ticket is not to be altered, mutilated, unreadable, reconstructed, or tampered with in any manner;

5.6.c. The lottery ticket is not counterfeit in whole or in part;

5.6.d. The lottery ticket is not stolen nor appears in any list of omitted lottery tickets on file with the Lottery;

5.6.e. The lottery ticket is complete and not blank or partially blank, miscut, misregistered, defective, or printed or produced in error;

5.6.f. The lottery ticket has the correct number of play symbols, a readable bar code or equivalent symbol. The symbols must be present in their entirety, legible, right-side up, and not reversed in any manner;

5.6.g. The validation number of an apparent winning lottery ticket appears on the Lottery's official list of validation numbers of winning lottery tickets; and a lottery ticket with that validation number has not been previously paid; and,

5.6.h. The lottery ticket passes all additional confidential validation requirements established by the Director.

5.7. Any lottery ticket not passing all the validation requirements in subsection 5.6 of this section and the specific validation requirements contained in the rules for its specific game is invalid and ineligible for any prize.

W. Va. Code R. § 179-1-6 Draw games

6.1. The Director may select, operate and contract for the operation of draw games which meet the criteria generally set forth in this subsection.

6.1.a. The base price of a draw game lottery ticket shall not be less than fifty cents (.50).

6.1.b. The manner and frequency of drawings may vary with the type of draw games.

6.1.c. The times, locations, and drawing procedures shall be determined by the Director.

6.1.d. A ticket bearer entitled to a prize shall submit the winning lottery ticket as specified by the Director. The winning lottery ticket shall be validated by the Lottery’s administrative staff or by a licensed lottery sales agent through use of the validation number and any other means as specified by the Director.

6.1.e. At the Director's discretion, a draw game may include a prize drawing or drawings as well as other methods of awarding the moneys accumulated in the unclaimed prize fund which will also stimulate the broad variety of games offered by the West Virginia Lottery. The Director shall follow Commission procedure for the payment of additional prizes from the unclaimed prize fund within the game rules structure.

6.1.f. Procedures for claiming draw game prizes are as follows:

6.1.f.1. To claim a draw game prize of six hundred dollars ($600.00) or less within one hundred eighty (180) days of the drawing, the claimant shall present the winning draw game lottery ticket to any lottery sales agent or to the Lottery.

6.1.f.1.A. If the claim is presented to a licensed lottery sales agent, the licensed lottery sales agent shall validate the claim. If the lottery ticket is determined to be a winning lottery ticket, the licensed lottery sales agent shall make payment of the amount due the claimant. If the licensed lottery sales agent cannot validate the claim, the claimant may obtain and complete a claim form and submit it with the disputed lottery ticket to the Lottery by mail or in person. Upon determination that the lottery ticket is a winning lottery ticket, the Lottery shall present or mail a check, initiate an EFT and/or an ACH payment, or credit an established iLottery account to the claimant for the amount due. If the lottery ticket is determined to be a nonwinning ticket, the claim shall be denied and the claimant shall be promptly notified. Nonwinning lottery tickets shall not be returned to the claimant.

6.1.f.1.B. If the claim is presented to the Lottery, the claimant shall complete a claim form, as provided by the Director, and submit it with the winning lottery ticket to the Lottery by mail or in person. Upon determination that the lottery ticket is a winning lottery ticket, the Lottery shall present or mail a check, initiate an EFT and/or an ACH payment, or credit an established iLottery account to the claimant for the amount due, less any applicable federal and state income tax withholdings and less any withholding requested by the child support enforcement division. If the ticket is determined to be a non-winning lottery ticket, the claim shall be denied and the claimant shall be promptly notified. Non-winning lottery tickets shall not be returned to the claimant.

6.1.f.2. To claim a draw game prize of more than six hundred dollars ($600), within the limit of one hundred eighty (180) days after the date of the drawing, the claimant shall obtain and complete a claim form, as provided by the Director, and submit it with the winning lottery ticket to the Lottery by mail or in person. Upon determination that the ticket is a winning ticket, the Lottery shall present or mail a check, initiate an EFT and/or an ACH payment, or credit an established iLottery account to the claimant for the amount due, less any applicable federal and state income tax withholdings and less any delinquent child or spousal support obligation claimed by the bureau for child support enforcement. If the lottery ticket is determined to be a non-winning ticket, the claim shall be denied and the claimant shall be promptly notified. Non-winning lottery tickets shall not be returned to the claimant.

6.2. Drawing and end of sales prior to drawings.

6.2.a. Drawings shall be conducted in a location and at days and times designated by the Director.

6.2.b. The Director shall announce the time for the end of sales prior to the drawings for each type of draw game. Licensed lottery sales agents and Lottery Terminals shall not process orders for draw game lottery tickets for that drawing after the time established by the Director.

6.2.c. The Director shall designate the type of equipment to be used, shall establish procedures to randomly select the winning combinations for each type of draw game, for physical drawings shall require the presence of an independent accountant to witness all pre- and post-drawing tests, and the drawing or winner selection, and for programmatically drawn results shall determine regular audits of the equipment, results, and procedures of those drawings.

6.2.d. The Director shall test prior to and after each drawing the physical equipment used or audit and have certified random any programming used to determine the winning combination to assure proper operation and lack of tampering or fraud. Drawings shall not be certified until all validation checks or audits are completed. No prizes shall be paid until after the drawing is certified. 6 2.e. All draw game drawings shall be recorded and provided to the public in real-time or near real-time provided facilities are available and operational.

6.2.f. The Director shall establish procedures governing the conduct of drawings for each type of draw game. The procedures shall include provisions for deviations which include but are not limited to:

6.2.f.1. A drawing equipment malfunction before validation of the winning combination;

6.2.f.2. A video and/or audio malfunction during the taping of the drawing;

6.2.f.3. A fouled drawing;

6.2.f.4. A delayed drawing; or

6.2.f.5. Other equipment, facility and/or personnel difficulties.

6.2.g. Whenever a deviation occurs, the drawing shall be certified and the deviation documented on the certification form. The winning combination shall be provided to the public.

6.2.h. If, during any drawing for a game, a mechanical failure or operator error causes an interruption in the selection of all digits or symbols, a "Foul" shall be called by the Lottery Drawing Official. Any digit or symbol drawn prior to a "Foul" being called shall stand and be declared official after passing lottery validation tests.

6.2.i. The Director shall delay payment of all prizes if any evidence exists, or there are grounds for suspicion, that tampering or fraud has occurred. Payment shall be made after an investigation is completed and the drawing certified. If the drawing is not certified, another drawing shall be conducted to determine the actual winner.

6.3. Validation requirements.

6.3.a. To be a valid winning draw game lottery ticket, all of the following conditions shall be met:

6.3.a.1. All printing on the lottery ticket shall be present in its entirety, be legible, and correspond, using the computer validation file, to the combination and date printed on the lottery ticket. The lottery ticket is not valid unless the ticket number and other information is recorded in the Lottery computer and transaction master file;

6.3.a.2. The lottery ticket shall be intact;

6.3.a.3. The lottery ticket shall not be altered, mutilated, unreadable, reconstructed, or tampered with in any manner;

6.3.a.4. The lottery ticket shall not be counterfeit or an exact duplicate of another winning ticket;

6.3.a.5. The lottery ticket shall have been issued by an authorized licensed lottery sales agent in an authorized manner;

6.3.a.6. The lottery ticket shall not have been stolen or canceled;

6.3.a.7. The lottery ticket shall not have been previously paid; and

6.3.a.8. The lottery ticket shall pass all other confidential security checks of the Lottery.

6.3.b. Any lottery ticket failing any validation requirements listed in subdivision 6.3.a.1 of this rule is invalid and ineligible for a prize subject to the condition of subdivisions 5.10.3 and 5.10.4 of this rule.

6.3.c. The Director may replace an invalid draw game lottery ticket with an on-line ticket for a future drawing of the same game. The Director may pay the prize for a ticket that is partially mutilated or is not intact if the draw game lottery ticket can still be validated by the other validation requirements, at his or her discretion.

6.3.d. In the event a defective draw game lottery ticket is purchased, the only responsibility or liability of the Lottery or the lottery sales agent is the replacement of the defective draw game lottery ticket with another draw game lottery ticket for a future drawing of the same game.

6.4. Payment of prizes by licensed lottery sales agents.

6.4.a. A licensed lottery sales agent shall pay to the ticket bearer prizes of six hundred dollars ($600) or less for any validated claims presented within the claim limit of one hundred eighty (180) days of the drawing to that licensed lottery sales agent. These prizes shall be paid during all normal business hours of that licensed lottery sales agent, provided, the on-line system is operational and claims can be validated.

6.4.b. A licensed lottery sales agent may pay prizes in cash or by business check, certified check, money order, bank issued debit or credit card or other manner as approved by the commission. A licensed lottery sales agent that pays a prize with a check which is dishonored, in addition to full payment of the amount of the check and all nonsufficient funds charges and any other legitimate banking charge, may be subject to suspension or revocation of its license.

6.5. Notification to Commission. The Director shall provide Commission members with copies of specific game rules for on-line games. The Chairman or a quorum of the Commission may ask for review of the on-line game rules at the next scheduled meeting of the Commission following receipt of draft rules, and shall adopt or refer rules to lottery staff for revision at that meeting.

W. Va. Code R. § 179-1-7 Payment of prizes - general provisions for instant and draw games

7.1. Each lottery retailer or licensed lottery sales agent shall pay all prizes authorized to be paid by the lottery retailer or licensed lottery sales agent by this rule during its normal business hours at the location designated on its license.

7.2. A claim shall be entered in the name of a single natural person. Groups, family units, organizations, clubs or other organizations shall designate one individual in whose name the claim is to be entered.

7.3. Unless otherwise provided in the rules for a specific type of game, a claimant shall sign the back of the lottery ticket, or provide the digital bar code from his or her mobile device and complete and sign a claim form provided by the Director. The claimant shall submit the claim form and claimant's lottery ticket to the Lottery in accordance with the instructions as stated on the claim form and on the back of the lottery ticket or the game rules provided on the mobile device at the time of the lottery ticket purchase. In the event of a difference or conflict in the name appearing on, or associated with, the lottery ticket and the claim form, the name which appears on the lottery ticket controls. The claimant, by submitting the claim, agrees to the following provisions as a prerequisite to payment of the prize:

7.3.a. The discharge of the State, the Lottery Commissioners, its officials, officers and employees of all further liability upon payment of the prize; and

7.3.b. The authorization to use the claimant's name and the taking and use of photographs for any reasonable publicity purposes the Director considers desirable upon award of the prize.

7.4. A prize must be claimed within the time limits prescribed by the Director in the instructions for the conduct of a specific game, but in no case shall a prize be claimed later than one hundred eighty (180) days after the official end of that instant game or the draw game drawing for which that draw game lottery ticket was purchased.

7.5. The Director or Commission may deny awarding a prize to a claimant if the lottery ticket is stolen, unissued, mutilated, altered, unreadable, counterfeit in whole or in part, mis-cut, mis-registered, defective, printed or produced in error, multiply printed, or blank or partially blank.

7.6. No person entitled to a prize may assign the right to claim it, except:

7.6.a. That payment of a prize may be made to any court-appointed legal representative, including, but not limited to, guardians, executors, administrators, receivers, or other court-appointed assignees; or

7.6.b. For the purpose of paying federal, state or local tax; or to satisfy executions, judgments, or orders or other processes legitimately obtained from federal or state courts; or

7.6.c. Transfers of remaining lottery annuity prize payments may be assigned pursuant to W.Va. Code §46A-6H-1 et seq.

7.7. In the event that there is a dispute or it appears that a dispute may occur relative to any prize, the Commission or Director may refrain from making payment of the prize pending a final determination of the dispute by the Commission or by a court of competent jurisdiction.

7.8. A lottery ticket that has been legally issued by a licensed lottery sales agent or lottery retailer is a bearer instrument until signed. The person who signs the lottery ticket is considered the ticket bearer. Payment of any prize may be made to the bearer, and all liability of the State, its officials, officers, commission, and employees of the agency terminates upon payment.

7.9. All prizes shall be paid within a reasonable time after the claims are verified by the Director and a winner is determined. The date of the first installment payment of each prize to be paid in installment payments shall be the date the prize event is validated and certified. Subsequent installment payments shall be made annually from the date of the event in accordance with the type of prize awarded.

7.10. The Director may, at any time, delay any payment in order to review a change in circumstance relative to the prize awarded, the payee, the claim, or any other matter that may have come to the Director's attention. All delayed payments shall be made immediately upon the Director's confirmation and continue to be paid on each originally scheduled payment date thereafter. If any prize is payable for the life of the claimant, only an individual may claim that prize, and if the individual is claiming on behalf of a group, a corporation, or the like, the life of the claim shall not exceed twenty (20) years.

7.11. The Director's decisions and judgments in respect to the determination of a winning lottery ticket or any dispute arising from the payment or awarding of prizes are final and binding upon all participants in the Lottery.

7.12. All prizes or portions of prizes which remain unpaid at the time of a prize winner's death are payable to the prize winner's estate.

7.13. The Director may rely wholly on the presentment of certified copies of a court's appointment of an administrator or executor, guardian, conservator or any other evidence of a person entitled to the payment of any prize winnings then due.

7.14. The payment to the estate of a deceased owner of any prize winnings by the Director absolves the Commission, Director and employees of the agency of any further liability for payment of the prize winnings. The Director need not look to pay the prize winnings beyond the estate or appointed representative.

7.15. The Commission or Director may petition any court of competent jurisdiction to request a determination of the payee for payment of any prize winnings which are or may become due the estate of a deceased winner or a winner under a disability because of minority, mental deficiency, or physical or mental incapacity.

7.16. Whenever the winner of a lottery prize is also a lottery sales agent or lottery retailer, or is an owner or officer of a partnership of corporation that is a lottery sales agent or lottery retailer, the Director may offset any debt due the West Virginia Lottery against the amount of the prize due to the winner of the prize.

W. Va. Code R. § 179-1-8 Use of West Virginia Lottery Trademarks

8.1. Lottery sales agents and retailers may use, and display the Lottery Logo, trademark, and other advertising materials without charge to the user or compensation to the Commission for its use.

8.2. Any use of the Lottery Logo or other trademarked or copyright materials, other intellectual property, or copy in advertising or production of consumer articles requires a prior written request and execution of the Lottery's License Agreement.

8.3. An applicant for licensing shall submit a form provided by the Director. The form shall require information of sufficient quantity and detail to allow the determination of suitability for licensing of the applicant by the Director.

8.4. Any request for authorization properly submitted shall include a representative sample or samples of the materials for which authority is sought.

8.5. After review of the request and representative sample, the Director may issue a tentative authorization to proceed with production of proofs or samples of the merchandise.

8.6. The applicant may be required to submit the final proofs or samples representative of actual production items to the Director for his or her final approval before proceeding to produce the items for sale or distribution.

8.7. Upon receipt of notice of final approval, or upon execution of the License Agreement by both parties, if no final approval is required, the license may initiate production of goods or materials over the specified duration of the Licensing Agreement as set forth in this section.

8.8. The Director may, over the period of the License Agreement, exercise supervision over the quality of the materials produced under license, and may require as a condition to continuation of the license, changes in quality of the goods or material produced.

8.9. The Director and Commission may at any time terminate an agreement to license in the event that the licensee fails to meet the requirement of the agreement, or in the event that the continuation of the license is not considered to be in the best interest of the Lottery or of the State of West Virginia.

W. Va. Code R. § 179-1-9 Fingerprint submission for background investigation

9.1. Pursuant to W. Va. Code §§29-22-8 and 29-22-23, the Commission may investigate the background of employees and vendors with proper authorization. West Virginia Code § 29-22-4 provides that no person may be eligible for appointment as Commissioner if convicted of a felony.

9.2. The Commission shall require all new employees of the Commission, any contract or temporary employee, and any newly appointed Commissioners or Director to furnish fingerprints for a national criminal records check by the Criminal Identification Bureau of the West Virginia State Police and/or the Federal Bureau of Investigation. The fingerprints shall be accompanied by a signed authorization for the release of information by the Criminal Investigation Bureau and the Federal Bureau of Investigation and the West Virginia Division of Motor Vehicles (“WVDMV”). The Commission and the WVDMV shall define the scope of authorized access by interagency agreement and the Commission’s security personnel shall be granted access to WVDMV records in accordance to the terms of such agreement.

9.3. The Commission shall require vendors or contractors who have access to Lottery headquarters or to Lottery Computer Networks to furnish fingerprints for a national criminal records check by the Criminal Identification Bureau of the West Virginia State Police and/or the Federal Bureau of Investigation. The fingerprints shall be accompanied by a signed authorization for the release of information by the Criminal Investigation Bureau and the Federal Bureau of Investigation.

W. Va. Code R. § 179-1-10 Additional requirements for Special Licensed Retailers operating iLottery

10.1. A Special Licensed Retailer shall have its iLottery gaming system tested and certified by an Independent Testing Laboratory approved by the Commission.

10.2. In order to prevent unauthorized use of an iLottery gaming system to place a wager when a patron is not within the boundaries of the State of West Virginia, the iLottery gaming system must utilize a geolocation system to reasonably detect the physical location of a patron attempting to access any iLottery gaming system to purchase a lottery ticket and to monitor and block unauthorized attempts to access the iLottery gaming system in order to purchase a lottery ticket when the patron is not within the boundaries of the State of West Virginia.

10.2.a. The geolocation system shall ensure that any patron is located within the boundaries of the State of West Virginia when purchasing a lottery ticket and shall be equipped to dynamically monitor the patron’s location and block unauthorized attempts to access the iLottery gaming system in order to purchase a lottery ticket throughout the duration of the patron session.

10.3. A iLottery gaming system shall provide the following:

10.3.a. A secured method of log-in authentication, including an option for multi-factor authentication;

10.3.b. Mechanisms enabling patrons to implement limits on gaming, including, but not limited to, a specific mechanism by which a patron can suspend play for a period time, also known as a “cool-down” period;

10.3.c. A mechanism that allows for a patron to self-exclude from play on the iLottery gaming system.

10.3.d. A mechanism that allows for the monitoring, control and notification to the West Virginia Lottery of any suspicious gaming activity related to the iLottery gaming system.

10.3.e. Methods to protect the disclosure of Personally Identifiable Information (“PII”) of patrons.

10.4. An iLottery account shall be considered a dormant account if there is no patron initiated activity for a period of sixteen (16) months. The Special Licensed Retailer must comply with the Uniform Unclaimed Property Act of West Virginia set forth in W. Va. Code § 36-8-1, et seq., with respect to the closing and refunding of the account balance.

Series 02 Administrative Appeals Procedure

W. Va. Code R. § 179-2-1 General

1.1. Scope and Purpose. -- The following procedural rule sets forth the practice and procedure established by the West Virginia State Lottery Commission to govern administrative appeal hearings before the commission. The purpose of this rule is to adopt a single procedural rule that provides a fair and orderly administration and effectuation of the statutory purpose of the appeal under both the State Lottery Act, W.Va. Code '29-22-1 et seq. as well as the Racetrack Video Lottery Act, W.Va. Code '29-22A-1 et seq.

1.2. Authority. -- W. Va. Code ''29-22-14(b) and 29-22A-15.

1.3. Filing Date. -- December 3, 1998.

1.4. Effective Date. -- January 1, 1999.

1.5. Repealer - Proposed amended procedural rule 179 CSR 2 completely rewrites present procedural rule 179 CSR 2 which was filed and effective November 14, 1986; therefore, upon final filing of this procedural rule, former procedural rule 179 CSR 2 is repealed.

W. Va. Code R. § 179-2-2 Petition For Appeal; Form and Content

2.1. If the West Virginia State Lottery Commission [hereafter @the commission@] or the director of the West Virginia State Lottery [hereafter @the director@] refuses to issue a license or permit, or suspends or revokes a license or permit, an order will be made and entered to that effect including a statement of the reasons for that action and a copy of that order will be mailed to the applicant, or the license or permit holder, by certified mail, return receipt requested, or in the alternative, the order will be served in the same in the manner provided for the service of legal process.

2.2. Any applicant or license or permit holder adversely affected by such an order has the right to a hearing before the commission or before a person designated by the commission as hearing examiner.

2.3. Any person aggrieved by any action of the commission acting under the provisions of W. Va. Code article 29-22 also has the right to a hearing before the commission or before a person designated by the commission as hearing examiner.

2.4. A petition in writing requesting a hearing must be served upon the director within ten days, either following the receipt of the order by the applicant, or license or permit holder or following the action of the commission or director giving rise to the petition.

2.5. The petition for a hearing must be in writing and include an original and one copy. The petition must contain the following:

2.5.a. A clear and concise statement of each error which the petitioner alleges to have been committed by the commission or the director in refusing to issue a license or permit, or suspending or revoking a license or permit, with each assignment of error being shown in separately numbered paragraphs.

2.5.b. A clear and concise statement of fact upon which the petitioner relies as sustaining each assignment of error.

2.5.c. A prayer [request] setting forth the relief sought.

2.5.d. The signature of the petitioner.

2.5.e. A statement by the petitioner under penalty of perjury that his or her statements are true.

2.6. Any person not initially a party to the proceeding who can demonstrate that he or she is the real party in interest concerning the issue in dispute, or that he or she may be adversely affected by a possible decision of the commission, will be permitted to petition the commission or hearing examiner for intervention if such petition is received before the conclusion of the hearing.

W. Va. Code R. § 179-2-3 Costs; Security Deposit

3.1. If the hearing is held under provisions of the Racetrack Video Lottery Act, W.Va. Code '29-22A-15(d) requires the person demanding a hearing to give security for the cost of the hearing in the amount of three hundred dollars in the form of certified check, cashier's check or money order, which must accompany the petition demanding a hearing. No security for costs is required for any other hearing.

W. Va. Code R. § 179-2-4 Discovery

4.1. Subsequent to the receipt of an appeal petition by the director, the parties may employ pre-hearing discovery measures. The hearing examiner will recognize an informal set of guidelines based on the West Virginia Rules of Civil Procedure as a model.

W. Va. Code R. § 179-2-5 Subpoenas and Subpoenas Duces Tecum [Art. 22A Appeals, Only]

5.1. In all hearings held under this rule, oral and documentary evidence may be required through the use of subpoenas and subpoenas duces tecum. Subpoenas or subpoenas duces tecum may be issued by either the commission or its duly appointed hearing examiner and the following provisions shall govern and control:

5.1.a. Every subpoena or subpoena duces tecum must be served at least five days before its return date, either by personal service made by any person eighteen years of age or older, or by registered or certified mail, but a return acknowledgment signed by the person to whom the subpoena or subpoena duces tecum is directed is required to prove service by registered or certified mail.

5.1.b. All subpoenas and subpoenas duces tecum must be issued in the name of the West Virginia Lottery commission. Service of subpoenas and subpoenas duces tecum issued at the insistence of the commission are the responsibility of the commission, but any party requesting issuance of a subpoena or subpoena duces tecum is responsible for service of any such subpoena. Any person who serves a subpoena or subpoena duces tecum is entitled to the same fee as sheriffs who serve witness subpoenas for the circuit courts of this state and fees for the attendance and travel of witnesses shall be the same as for witnesses before the circuit courts of this state.

5.1.c. All fees shall be paid by the director if the subpoena or subpoena duces tecum is issued, without the request of an interested party, at the insistence of the director.

5.1.d. All fees related to any subpoenas or subpoena duces tecum issued at the insistence of an interested party will be paid by the interested party.

5.1.e. All requests by an interested party for a subpoena and subpoena duces tecum must be in writing and contain a statement acknowledging that the requesting party agrees to pay such fees.

5.1.f. Any person receiving a subpoena or subpoena duces tecum issued hereunder must honor the same as though it were issued by a circuit court of this state and must appear as a witness or produce such books, records or papers as are requested in response to a subpoena or subpoena duces tecum. In case of disobedience or neglect of any subpoena or subpoena duces tecum served on any person or the refusal of any witness to testify to any matter regarding which he or she may be lawfully interrogated, the circuit court of the county in which the hearing is being held, or the judge thereof in vacation, will, upon application by the commission, compel obedience by contempt proceedings as in the case of disobedience of the requirements of a subpoena or subpoena duces tecum issued from the circuit court or a refusal to testify therein.

W. Va. Code R. § 179-2-6 Appearance and Practice Before the Commission or Hearing Examiner

6.1. A quorum of the West Virginia Lottery Commission or a hearing examiner or lesser group of commission members designated by it may conduct any hearing.

6.2. The service of a petition for hearing upon the director does not operate to suspend the execution of any suspension or revocation of a lottery license or of a video lottery license or permit with respect to which a hearing is being demanded.

6.3. The commission, or the hearing examiner whom it appoints, shall set a date for any hearing demanded and will notify the person demanding a hearing not later than seven days before the hearing date of the date and time of the hearing.

6.4. The hearing will be held within thirty days after receipt of the petition.

6.5. Hearings may not be delayed by a motion for continuance made less that ten days before the date set for the hearing unless both parties agree to the continuance.

6.6. The petitioner may appear individually, or by legal counsel. If the petitioner is a corporation, partnership, limited partnership, limited liability company or other recognized form of doing business that is not a sole proprietorship, an officer of a corporation, a partner of a partnership or member of a limited liability company may represent the petitioner.

6.7. All persons appearing before the hearing examiner in the capacity of legal counsel are to conform to the standards of ethical conduct required of attorneys before the courts of the State of West Virginia. If any person does not conform to the standards, the hearing examiner may decline to permit the person to continue to appear in a representative capacity in the proceeding.

6.8. The hearing examiner may require the parties to file briefs and reply briefs, to present oral argument or both.

6.9. The commission encourages oral argument in lieu of the filing of briefs.

6.10. The time schedule for filing of briefs and reply briefs will be established by the commission or the hearing examiner prior to the conclusion of the hearing.

W. Va. Code R. § 179-2-7 Submission on Briefs and Record

7.1. With the approval of the commission or the hearing examiner, the petitioner=s or the petitione=s duly authorized representative may waive the right to a hearing and agree to submit the case for decision upon the petition and record, with or without a written brief. Waivers and agreements must be in writing or upon the record.

W. Va. Code R. § 179-2-8 The Hearing

8.1. The petitioner will be given an opportunity for argument within the time limits fixed by the commission or the hearing examiner whom it appoints following submission of evidence. The commission or hearing examiner, upon request of the petitioner, will accept briefs in addition to or in lieu of argument. Briefs must be filed according to the schedule established by the commission or the hearing examiner prior to the conclusion of the hearing.

8.2. The commission or the hearing examiner may admit any relevant evidence, except that it will observe the rules of privilege recognized by law. A finding is to be supported by the kind of evidence commonly relied upon by reasonably prudent men in the conduct of their affairs, whether or not the evidence would be admissible before a jury. The commission or the hearing examiner may exclude any evidence which is irrelevant, unduly repetitious or lacking in substantial probative effect.

8.3. An audio recording will be made of all hearings held pursuant to this article. Any party may request a duplicate set of audio cassette tapes and must pay a per-tape cost for the tape(s). Any party may request that a typewritten transcript be made. Parties requesting and/or receiving typewritten transcripts will share the pro rata costs of preparing the transcript.

8.4. After the conclusion of the hearing and within ten days of receipt of the transcript (if one was prepared) and the due date(s) set for any briefs, the hearing examiner will prepare a recommended decision, supported by findings of fact and conclusions of law, affirming, modifying or vacating the earlier order of the commission or director.

8.5. The commission, within ten days of receipt of the recommended decision will, by a majority of those commissioners voting, either accept or reject the recommended decision.

8.6. If the commission accepts the recommended decision, it will order the director to sign and acknowledge the recommended decision as its own, after having reviewed the transcript and all attached exhibits.

8.7. If the commission rejects the recommended decision, it will within ten days or receipt of the recommended decision prepare a decision setting forth its own findings of fact and conclusions of law.

8.8. If the commission has not elected to appoint a hearing examiner, then after the conclusion of the hearing and within ten days of receipt of the transcript (if one was prepared) and receipt of any briefs, it will prepare a decision setting forth its own findings of fact and conclusions of law.

8.9. The decision of the commission is final unless vacated or modified upon judicial review.

8.10. A copy of the decision will be served upon each party to the hearing and each attorney of record, if any, in person or by registered or certified mail.

W. Va. Code R. § 179-2-9 Appeal

9.1. Petition for appeal may be filed with the circuit court of Kanawha County, West Virginia or in the circuit court of the West Virginia county in which the petitioner resides or does business.

9.2. An appeal to circuit court must be filed no later than thirty days after the date upon which the petitioner receives notice of the final decision of the commission.

W. Va. Code R. § 179-2-10 Filing and Service of Documents and Orders

10.1. All documents required to be filed in an appeal under these rules must be filed with the director of the West Virginia Lottery. Delivery may be made by one of the following means:

10.1.a. Personal delivery to the West Virginia Lottery offices at 312 MacCorkle Avenue, S.E., Charleston, West Virginia during regular business hours and excluding Saturdays, Sundays and legal holidays.

10.1.b. United States mail addressed to P.O. Box 2067, Charleston, West Virginia 25327-2067.

10.1.c. Private delivery companies such as Airborne, DHL, Federal Express and United Parcel Service.

10.1.d. Facsimile transmission to either 304-558-3321 or 304-558-0129.

10.2. Filing of the petition and subsequent documents is in each case effective upon delivery and not upon mailing as determined by postmark.

10.3. Copies of all documents filed in an appeal under these rules must be served upon all other parties.

10.4. Service of documents will be accomplished by personal delivery or by registered or certified mail, return receipt requested. Whenever a party is represented by an attorney who has signed any document filed on behalf of such party or otherwise entered an appearance on behalf of such party, service thereafter must be made upon the attorney.

10.5. All documents required to be served will be accompanied by proof of service in the form of a certificate of service. The certificate of service must include a statement of how service was accomplished. Among those documents required to be served are: Petition for an administrative hearing, notice of appeal to circuit court, the final order and any motions made. Also included are any documents the commission or hearing examiner adopts as being necessary for procedural purposes.

179CSR2

Series 03 Licensees And The Americans with Disabilities Act

W. Va. Code R. § 179-3-1 General

1.1. Scope and Purpose. - The purpose of this rule is to provide procedures for lottery retailers and licensed lottery sales agents to meet their responsibilities concerning accessibility at retailer locations for disabled customers pursuant to the Americans with Disabilities Act (ADA), 42 United States Code, ''12101-12213 and 47 United States Code, '225 and '611. .

1.2. Authority. -- W. Va. Code ''29-22-5 and 10; and Paxton v. State of West Virginia, Department of Tax and Revenue, 451 S.E. 2d 779 (W.Va. 1994).

1.3. Filing Date -- March 26, 1996.

1.4. Effective Date -- April 15, 1996.

W. Va. Code R. § 179-3-2 Definitions

For the purposes of this rule, the following words and phrases have the meaning ascribed to them in this Section unless the context of the rule clearly indicates otherwise.

2.1. AAccessibility of the public to the licensed premises proposed by applicant@ means the ability of a significant number of customers to frequent a business location and to thereby be exposed to the availability of lottery games; and it also means the ability of a person with a disability covered by the Americans With Disabilities Act to play lottery games at that location.

2.2. "Act" or "State Act" means the State Lottery Act, W. Va. Code '29-22-1 et seq.

2.3. AADA@ means the Americans with Disabilities Act of 1990, 42 United States Code, ''12101-12213 and 47 United States Code, '225 and '611.

2.4. "Agency" means the State Lottery, its Director and the State Lottery Commission which operate and administer the West Virginia State Lottery, pursuant to authority granted under the Act.

2.5. AApplicant@ means a person who has filed an application to become a lottery retailer or lottery sales agent.

2.6. "Commission" or "State Lottery Commission" means the State Lottery Commission created by the Act.

2.7. "Director" means the individual appointed by the Governor to provide management and administration necessary to direct the Lottery office or any other person to whom the Director's authority is lawfully delegated.

2.8. ADisability@ with respect to an individual means that the individual has a physical or mental impairment that substantially limits one or more of the major life activities of the individual; or, that the individual has had a record of such an impairment; or, that the individual is regarded as having such an impairment.

2.9. AEnforcement Authority@ means the United States Department of Justice; or, the West Virginia Human Rights Commission, W. Va. Code '5-11-1 et seq.; or, any West Virginia municipal or county building code inspection officer.

2.10. "Lottery Game" means the public gaming system or games established and operated by the state lottery office.

2.11. ALottery licensed facility@ means a place of public accommodation operated by a licensed lottery sales agent or a lottery retailer, including all or any portion of buildings, structures, sites, complexes, equipment, walks, passageways, parking lots, or other real or personal property including the site where the building, property, structure, or equipment is located, to the extent used in the conduct of lottery activities.

2.12. "Lottery Retailer" or "Retailer" means any person licensed by the Commission to sell and dispense instant tickets and materials or lottery games.

2.13. "Lottery Sales Agent" or "Sales Agent" or "On-Line Agent" means any person licensed by the Commission to sell and dispense lottery tickets and materials, and to operate electronic terminals, and lottery games in the sales and dispensing of lottery tickets and materials.

2.14. "Lottery Ticket" or "Tickets" means tickets or other tangible evidence of participation used in lottery games or gaming systems.

2.15. AReadily achievable@ means an action to be taken by a lottery retailer or lottery sales agent that is easily accomplished and able to be carried out without much difficulty or expense. In determining whether an action is readily achievable, factors to be considered include:

2.15.1. The nature and cost of the action needed;

2.15.2. The overall financial resources of the site or sites involved in the action; the number or persons employed at the site; the effect on expenses and resources; legitimate safety requirements that are necessary for safe operation, including crime prevention measures; or the impact otherwise of the action upon the operation of the site;

2.15.3. The geographic separateness and the administrative or fiscal relationship of the site or sites in question to any parent corporation or entity;

2.15.4. If applicable, the overall financial resources of any parent corporation or entity with respect to the number of its employees; the number, type, and location of its facilities; and

2.15.5. If applicable, the type of operation or operations of any parent corporation or entity, including the composition, structure, and functions of the workforce of the parent corporation or entity.

W. Va. Code R. § 179-3-3 Accessibility of the Public to the Licensed Premises

3.1. Standard - The general standard for determing accessibility of lottery games to the disabled customer is the ability of that customer to buy a lottery ticket and\or to play a lottery game.

3.2. Prohibition of discrimination.

3.2.1. No lottery retailer or lottery sales agent shall discriminate against any individual on the basis of a disability in the full and equal enjoyment of lottery related goods, services, facilities, privileges, advantages, or accommodations or any lottery licensed facility. 3.2.2.. Integrated accessibility. A lottery licensed facility shall afford lottery related goods, services, facilities, privileges, advantages, and accommodations to any individual with a disability in the most integrated setting appropriate to the needs of the individual.

3.3. Readily Achievable Barrier Removal.

3.3.1. General. An applicant/lottery retailer shall remove architectural and communication barriers in a lottery licensed facility, where such removal is readily achievable.

3.3.2. Examples. Examples of readily achievable steps to remove barriers include, but are not limited to the following actions:

3.3.2.1. Installing ramps.

3.3.2.2. Making curb cuts in sidewalks and entrances.

3.3.2.3. Creating designated accessible parking spaces.

3.3.2.4. Widening doors.

3.3.2.5. Rearranging tables, chairs, vending machines, display racks, and other furniture.

3.3.2.6. Installing offset hinges to widen doorways.

3.3.2.7. Installing accessible door hardware.

3.3.2.8. Modifying certain exclusionary policies such as:

3.3.2.8.1. Allowing service animals to enter the facility.

3.3.2.8.2. Communicating with hearing-impaired Lottery players to the best of the ability of the Lottery retailer or the retailer’s employees.

3.4. Alternatives to barrier removal. Where an applicant, a lottery retailer or a licensed lottery sales agent can assert that barrier removal in its lottery licensed facility is not readily achievable in conjunction with federal guidelines, the applicant, lottery retailer or licensed lottery sales agent shall make lottery tickets and related services available through alternative methods, if those methods are readily achievable. Examples of alternatives to barrier removal include the following actions:

3.4.1. Providing curb services.

3.4.2. Relocating activities to accessible licensed locations.

W. Va. Code R. § 179-3-4 Licensing and Relicensing

4.1. When a person applies for, or seeks renewal of, a license to sell lottery tickets, the West Virginia Lottery will provide that person the appropriate form to complete and file which, among other things, will inquire whether the person’s business location to be licensed or relicensed complies with the ADA requirements for accessibility.

4.1.1. On the appropriate form, the licensee or applicant shall check the appropriate box:

Upon licensing or relicensing as the case may be, Lottery games are accessible to customers with disabilities as required by the Americans With Disabilities Act -- Q yes Q no

4.1.2. Only persons who check the yes box are eligible for licensing or relicensing.

4.1.3. The West Virginia Lottery will return the application form and fee to any applicant for a license who must check the Ano@ box.

4.1.4. The West Virginia Lottery will return the license renewal form, will not charge the $25 fee, and will not issue a new license to a licensee who checks the Ano@ box.

4.2. Any applicant who modifies his or her premises to comply with ADA requirements may then reapply and check the Ayes@ box.

4.3. Any former licensee who modifies his or her premises to comply with ADA requirements may then resubmit the license renewal form and check the Ayes@ box.

W. Va. Code R. § 179-3-5 Enforcement Provisions

5.1. Enforcement of this provision is pursu,ant to W.Va. Code ''5-11-8(c) and the ADA. If it is determined that a lottery retailer or licensed lottery sales agent is not in compliance with the ADA, W.Va. Code ''5-11-1 et seq., and this rule, the enforcement authority shall complete the Certification of Non-Compliance, West Virginia Lottery Form ADA-NC which will be distributed to each enforcement authority and which may also be obtained by writing to the West Virginia Lottery, P.O. Box 2067, Charleston, West Virginia, 25327-2067. The enforcement authority shall forward the original completed copy of that Certification to the same address.

5.2. Upon receipt by the West Virginia Lottery of a completed Certification of Non-Compliance from the enforcement authority, the West Virginia Lottery shall notify the cited lottery retailer or lottery sales agent of the certification and that the retailer is within thirty days of the possible suspension of its license. The Lottery is authorized to continue sales at the cited retail location for up to thirty (30) days to allow the retailer to bring itself into compliance with the requirements of the ADA. If a cited lottery retailer or lottery sales agent fails to comply with the requirements of the ADA within thirty (30) days, its lottery license shall be suspended by the Director and no further lottery sales shall occur at the cited location until the retailer is determined to be in compliance.

W. Va. Code R. § 179-3-6 Appeals

6.1. If the Director suspends or revokes a license, or refuses to grant a license because of the provisions of this rule, the aggrieved party is entitled to a hearing by filing a written request with the West Virginia State Lottery Commission within fifteen days of the Director’s notice. Upon receipt of the request, the Commission shall set a hearing date within thirty (30) days and shall notify the aggrieved party in writing at least seven (7) days in advance of the time, date and place of hearing.

6.2. Procedures - The procedures and forms pertaining to an appeal of the Director’s actions under this rule are in every case governed by the West Virginia State Lottery Commission’s procedural rule, Procedures, Appeals and Other Procedures, 179 CSR 2. The Commission shall supply a copy of this procedural rule and forms to any person upon request and without charge. The Commission shall supply a copy of this procedural rule and forms to any licensee or license applicant who files an appeal with the West Virginia State Lottery Commission.

179CSR3

Series 04 Limited Gaming Facility Rules

W. Va. Code R. § 179-4-1 General

1.1. Scope and Purpose. -- The purpose of this rule is to license and regulate one limited gaming facility located within an historic resort hotel; to license and regulate gaming suppliers and facility employees; and to define and regulate the operation of Monte Carlo-style games and video lottery games at the limited gaming facility.

1.2. Authority. -- W. Va. Code §29-25-5.

1.3. Filing Date. -- April 26, 2010.

1.4. Effective Date. -- June 1, 2010.

PART 1.DEFINITIONS

W. Va. Code R. § 179-4-2 Definitions

For the purposes of this rule the following words and phrases have the meaning ascribed to them in this Section unless the context of the rule clearly indicates otherwise, or unless inconsistent with the manifest intention of the State Lottery Commission.

2.1. "Act" means the Limited Gaming Facility Act, W. Va. Code §29-25-1 et seq.

2.2. “Adjusted gross receipts” means the dollar amount that is won by the limited gaming facility licensee through play at live authorized games of chance, which is the total of United State currency, chips, front money or markers contained in the drop box, plus ending chip inventory, minus opening chip inventory, plus chip credits minus table fills, minus match play coupons.

2.3. "Agency" and “Lottery” mean the West Virginia State Lottery, its Director and the West Virginia State Lottery Commission and its Commissioners which operate and administer the West Virginia State Lottery, pursuant to authority granted under the Act and under the state lottery act, W. Va. Code §29-22-1 et seq.

2.4. "Application" means all materials and information comprising the applicant's request for the limited gaming facility license, supplier's license, or occupational license submitted by the applicant to the Commission, including, but not limited to, the instructions, forms, and other documents required by the Commission for purposes of application for a license under the Act and this rule.

2.5. "Associated equipment" means any of the following:

2.5.a. Any equipment which is a mechanical, electromechanical, or electronic contrivance, component, or machine and which is used indirectly or directly in connection with gaming;

2.5.b. Any equipment that would not otherwise be classified as a gaming device, including, but not limited to, links, modems, and dedicated telecommunication lines, that connects to progressive video lottery terminals;

2.5.c. Computerized systems that monitor video lottery terminals, table games, and other gambling games approved by the Commission;

2.5.d. Equipment that affects the proper reporting of gross receipts;

2.5.e. Devices for weighing and counting money; and

2.5.f. Any other equipment that the Commission determines requires approval as associated equipment to protect the integrity of gaming and ensure compliance with the Act and this rule.

2.6. "Attributed interest" means any direct or indirect interest in a business entity determined by the Commission to be held by an individual through holdings of the individual's immediate family or other persons and not through the individual's actual holdings.

2.7. "Bill changer" means an electromechanical device attached either on or into a video lottery terminal for the purpose of dispensing an amount of tokens or credits equal to the amount of cash or cash equivalency inserted into the bill changer. The bill changer shall accept and analyze the legitimacy of United States or foreign currency accepted by the bill changer. If a credit is issued, then the player shall have the option of taking the entire amount of credits in tokens or utilizing any portion of the registered credits to activate the video lottery terminals as a wager.

2.8. “Cage” and “cage area” means a secure work area within the casino for cashiers and a storage area for the casino’s working fund of cash and gaming chips; it also serves as a depository control for gaming credit instruments.

2.9. "Cash" means United States currency and coin or foreign currency and coin that has been exchanged for its equivalent United States currency and coin value.

2.10. "Cash equivalent" means an asset, other than recognized credit cards or credit extended by the limited gaming facility licensee, that is readily convertible to cash. All instruments that constitute a cash equivalent shall be made payable to the limited gaming facility licensee, bearer, or cash. If an instrument is made payable to a third party, the instrument shall not be considered a cash equivalent. Cash equivalent instruments include, but are not limited to, any of the following:

2.10.a. Travelers checks;

2.10.b. Certified checks, cashier's checks, and money orders;

2.10.c. Personal checks or drafts;

2.10.d. Credit extended by the limited gaming facility licensee, a recognized credit card company, or banking institution; and

2.10.e. Any other instrument that the Commission considers a cash equivalent.

2.11. “Casino” means a facility licensed by the Commission to offer to the public both video lottery games and West Virginia Lottery table games under W.Va. Code §29-25-1 et seq.

2.12. "Casino operations" means operations of the limited gaming facility other than gambling operations, including the purveying of food, beverages, and retail goods and services in the gaming area of the historic hotel.

2.13. "Casino surveillance room" means a room or rooms at the limited gaming facility for monitoring and recording casino operations and gambling operations by the limited gaming facility licensee.

2.14. "Chip" means a small disk issued by the limited gaming facility licensee representing a set value that is used for making wagers at authorized games of chance and is redeemable for only cash, the limited gaming facility licensee’s check or in redemption of a marker.

2.15. "Commission" or "State Lottery Commission" means the State Lottery Commission created by the State Lottery Act, W. Va. Code §29-22-1 et seq. In context, “Commission” may also mean the state lottery office.

2.16. "Complaint form" means the form, prescribed by the Commission, that a patron shall complete and submit to file a patron complaint.

2.17. "Counterfeit chips or tokens" means chip-like or token-like objects that have not been approved under this rule, including objects commonly referred to as slugs, but not including legal coins of the United States or any other nation.

2.18. "Count room" means the room or rooms designated for the counting, wrapping, and recording of the limited gaming facility licensee's gaming receipts.

2.19. "Dependent" means any individual who received over 1/2 of his or her support in a calendar year from any other individual.

2.20. “Designated gaming area” means one or more specific floor areas of the limited gaming facility within which the commission has authorized operation of video lottery terminals or authorized games of chance, or the operation of both video lottery terminals and authorized games of chance.

2.21. "Director" means the individual appointed by the Governor to provide management and administration necessary to direct the Lottery office or any other person to whom the Director's authority is lawfully delegated.

2.22. "Drop" means the total amount of tokens removed from the drop bucket of a video lottery terminal, the currency removed from the bill changers, and the dollar amount of the currency, coins, chips, tokens, or credits removed from the live gaming devices. If a patron is using an electronic card, then the drop includes the amount deducted from a patron's account as a result of video lottery terminal play.

2.23. "Drop box" means the box attached to a live gaming device table that is used to collect, but is not limited to, any of the following items:

2.23.a. Currency;

2.23.b. Coin;

2.23.c. Chips;

2.23.d. Cash equivalents;

2.23.e. Damaged chips;

2.23.f. Documents verifying the extension of credit;

2.23.g. Request for fill and credit forms;

2.23.h. Fill and credit slips;

2.23.i. Error notification slips;

2.23.j. Table inventory forms; and

2.23.k. All other forms used by the limited gaming facility licensee and deposited in the drop box as part of the audit trail.

2.24. "Drop bucket" means the container in the locked portion of a video lottery terminal or the cabinet of a video lottery terminal that is used to collect the tokens retained by the video lottery terminal which are not used to make automatic payments from the video lottery terminal and which are subject to authorized removal.

2.25. "Electronic card" means a card or voucher purchased from, or provided by, the limited gaming facility licensee for use at the licensee's casino as a substitute for tokens for the conduct of gaming on a video lottery terminal.

2.26. “Excluded person" means a person whose name appears on an exclusion list of any jurisdiction, or a person whose name does not appear on an exclusion list, but who is excluded or ejected as a result of meeting one or more of the exclusion criteria specified in this rule.

2.27. "Exclusion list" means a list or lists that contain identities of persons who are to be excluded or ejected from any gambling operation in any jurisdiction.

2.28. "Financial statement" means any of the following:

2.28.a. A balance sheet;

2.28.b. An income statement;

2.28.c. A profit and loss statement;

2.28.d. A statement of cash flow; or

2.28.e. A sources and uses of funds statement.

2.29. "Front money" means a patron deposit that is used in lieu of credit to guarantee payment of a marker issued or to establish a line of credit for wagering purposes.

2.30. "Game" means any individual or particular type of casino game authorized by the West Virginia State Lottery Commission.

2.31. "Gaming area" means the room or rooms in the limited gaming facility in which gaming is conducted.

2.32. “Gaming day” means the twenty-four hour period that begins at 7:00:00 a.m. and concludes at 6:59:59 a.m.

2.33. "Gaming equipment or supplies" means layouts for live table games; any representatives of value, including, without limitation, chips, tokens, or electronic debit cards and related hardware and software that do not affect the result of a game; or a machine, mechanism, device, or implement that affects the result of a gambling game by determining a win or loss, including, without limitation, any of the following:

2.33.a. Video lottery terminals;

2.33.b. Software;

2.33.c. Cards; and

2.33.d. Dice.

2.34. "Hearing officer" means the Commission member, the Director or the administrative hearing officer designated by the Director to conduct or assist the Commission in the conduct of a hearing on any matter within the jurisdiction of the Commission.

2.35. “Historic resort hotel” means a resort hotel registered with the United States Department of the Interior as a national historic landmark in its national registry of historic places having not fewer than five hundred guest rooms under common ownership and having substantial recreational guest amenities in addition to the gaming facility.

2.36. "Holding company" means any person, other than an individual, that:

2.36.a. Directly or indirectly owns, has the power or right to vote or control, or holds with the power to vote five percent or more of the stock, equity interest, or other voting security of a person that holds, or has applied for, the limited gaming facility license or a supplier's license; or

2.36.b. Directly or indirectly holds, or substantially owns, any power, right, or security through any interest in a subsidiary or successive subsidiaries, regardless of how many subsidiaries may intervene between the holding company and the holder or applicant for, or holder of, the limited gaming facility license or a supplier's license.

2.37. "Immediate family" means any of the following, whether by whole or half blood, marriage, adoption, or effect of law:

2.37.a. A spouse, other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance;

2.37.b. A parent;

2.37.c. A child;

2.37.d. A dependent;

2.37.e. A sibling;

2.37.f. A spouse of a sibling;

2.37.g. A father-in-law; or

2.37.h. A mother-in-law.

2.38. "Indirect interest" means an interest, claim, right, legal share, or other financial stake in a person that is determined by the Commission to exist by virtue of a financial or other interest in another person.

2.39. "Individual" means any natural person.

2.40. "Intermediary company" means any corporation, firm, partnership, trust, limited liability company, or other form of business entity that:

2.40.a. Is a holding company of a person that has applied for or holds the limited gaming facility license or a supplier license; or

2.40.b. Is a direct-line subsidiary of any holding company of a person that has applied for or holds the limited gaming facility license or supplier license.

2.41. "Internal control system" means the internal procedures, administration, and accounting controls designed by the limited gaming facility licensee for the purpose of exercising control over the gambling operation and its assets.

2.42. "Junket" means an arrangement to induce persons who are selected or approved for participation on the basis of their ability to satisfy a financial qualification obligation related to their ability or willingness to come to the limited gaming facility for the purpose of gambling and who receive as consideration all or part of the cost of transportation, food or entertainment directly or indirectly paid by the limited gaming facility licensee or its agent.

2.43. "Junket representative" means a person, other than the limited gaming facility licensee or the limited gaming facility license applicant, who receives payment for the referral, procurement, or selection of persons who may participate in a junket to the limited gaming facility in West Virginia, based upon the person's actual or calculated potential to wager or lose, regardless of whether the activities of the junket representative occur within the State of West Virginia.

2.44. "Key person" means any of the following entities:

2.44.a. An officer, director, trustee, partner, or proprietor of a person that has applied for or holds the limited gaming facility or a supplier license or an affiliate or holding company that has control of a person that has applied for or holds the limited gaming facility license or a supplier license;

2.44.b. A person that holds a combined direct, indirect, or attributed debt or equity interest of five percent or more in a person that has applied for or holds the limited gaming facility license or a supplier license;

2.44.c. A person that holds a combined direct, indirect, or attributed equity interest of five percent or more in a person that has a controlling interest in a person that has applied for or holds the limited gaming facility license or a supplier license;

2.44.d. A managerial employee of a person that has applied for or holds the limited gaming facility license or a supplier license in West Virginia, or a managerial employee of an affiliate or holding company that has control of a person that has applied for or holds the limited gaming facility license or a supplier license in West Virginia, who performs the function of principal executive officer, principal operating officer, principal accounting officer, or an equivalent officer;

2.44.e. A managerial employee of a person that has applied for or holds the limited gaming facility license or a supplier license, or a managerial employee of an affiliate or holding company that has control of a person that has applied for or holds the limited gaming facility license or supplier license, who will perform or performs the function of gaming operations manager, or will exercise or exercises management, supervisory, or policy-making authority over the proposed or existing gambling operation, casino operation, or supplier business operations in West Virginia and who is not otherwise subject to occupational licensing in West Virginia; or

2.44.f. An institutional investor who has a controlling interest in the licensee. For purposes of this rule, the term institutional investor does not include owners of common stock of a licensee by a state or federally licensed banking institution, nor does it include ownership of a licensee’s stock by an institutional investor such as a pension fund or a mutual fund registered with the United State Securities and Exchange Commission, as well as a registered investment company, a registered investment advisor, a collective trust fund or a qualified insurance company as those entities are defined in the Investment Company Act of 1940 and the Investment Advisors Act or 1940, that is holding the stock only as an investment and not for purposes of control of the licensee or permit holder.

2.45. "Licensee" means a person who holds a license under the Act.

2.46. "Limited gaming facility license" means a license issued by the Commission to one person to own or operate one casino in West Virginia under the Act.

2.47. “Live game" means a table game that is played at a gaming table operated by employees of the licensed limited gaming facility who are physically present at the table during all table game play.

2.48. "Live gaming device" means any non-electrical or non-electromechanical apparatus used to gamble upon, including, but not limited to, any of the following:

2.48.a. A roulette wheel and table;

2.48.b. A blackjack table;

2.48.c. A craps table; or

2.48.d. A poker table; or

2.48.e. Other Commission-approved table games.

2.49. “Lottery,” when the first letter is capitalized, means the State Lottery of West Virginia, its Director and the State Lottery Commission and its Commissioners who operate and administer the State Lottery, pursuant to authority granted under the Act and under the State Lottery Act, W.Va. Code §29-22-1 et seq., and the Authorized Gaming Facility Act, W.Va. Code §29-25-1 et seq.

2.50. "Lottery casino premises office" means dedicated office space in the limited gaming facility which is for the exclusive use of the West Virginia Lottery for performing any of its functions and which is separate from, and does not include, the surveillance room.

2.51. "Lottery central control computer" means one or more computer systems which are approved by the Commission and:

2.51.a. Are connected to all video lottery terminals in the limited gaming facility to record and contemporaneously monitor the play and cash flow and security of each video lottery terminal;

2.51.b. Are capable of monitoring the activities of the live gaming devices, including, but not limited to, any of the following or their equivalents:

2.51.b.1. Table fills;

2.51.b.2. Table credits; and

2.51.b.3. Table gaming receipts, disbursements, and revenues;

2.51.c. Are capable of tracking the activities of the live gaming devices, including, but not limited to, the following or their equivalents:

2.51.c.1. Table game inventories; and

2.51.c.2. Employee gratuity receipt and disbursement accounting;

2.51.d. Are capable of monitoring the activities of the main bank and all cages, including, but not limited to, the following or their equivalents:

2.51.d.1. Manual payouts;

2.51.d.2. Hopper credits and hopper fills; and

2.51.d.3. Table credits and fills;

2.51.e. Are capable of tracking the activities of the main bank and all cages, including, but not limited to, the following or their equivalents:

2.51.e.1. A receipt and record of hard and soft count;

2.51.e.2. A record of gaming receipts, disbursements and revenues;

2.51.e.3. A cashier checkout;

2.51.e.4. The Main bank and cage inventory;

2.51.e.5. Deposits;

2.51.e.6. Cash transaction reports; and

2.51.e.7. Patron credit;

2.51.f. Are capable of monitoring the limited gaming facility licensee's casino accounting package; and

2.51.g. Are linked by dedicated telecommunication lines to Commission-designated computer terminals located in Commission offices on and off the limited gaming facility’s premises. The terminals shall be able to access, receive, and display the information required and prescribed by the Commission.

2.52. “Lottery-specified identifier symbol” means a logo, symbol or icon that is the intellectual property of the State Lottery Commission created and designated specifically for use on West Virginia Lottery table game equipment and supplies as allowed by W.Va. Code §29-25-34.

2.53. "Lottery surveillance room" means dedicated office space in the limited gaming facility for the exclusive use of the West Virginia Lottery for the monitoring and recording of gaming or any other activities.

2.54. "Main bank" means the casino department that is responsible for at least all of the following:

2.54.a. Cashing customer checks;

2.54.b. Establishing hold check privileges;

2.54.c. Redeeming chips or tokens, or both;

2.54.d. Providing working funds to all operational departments;

2.54.e. Deposits of front money;

2.54.f. Maintaining custody of all inventory;

2.54.g. Processing markers; and

2.54.h. Assuming responsibility for all of the following individuals and physical structures:

2.54.h.1. Casino cashiers;

2.54.h.2. Change attendants;

2.54.h.3. Main bank vault or vaults; and

2.54.h.4. Any other structure that houses tokens, chips, or other representatives of value that the main bank is accountable for.

2.55. "Marker" means an electronic or written document that evidences an extension of credit to a patron by the limited gaming facility licensee, including any writing taken in consolidation, redemption, or payment of a previous marker.

2.56. “Match play coupon” means a promotional item in paper or plastic form with a fixed stated play ratio and value that is issued and used by the limited gaming facility licensee, and the stated value of which, when presented by a patron with gaming chips which are in the stated ratio in value to the stated value of the promotional item, is included in the amount of the patron’s wager in determining the amount the patron receives as the result of a winning wager made with the gaming chips and their accompanying promotional item.

2.57. "Non-value chip" means a chip which is clearly and permanently impressed, engraved, or imprinted with the name of the limited gaming facility licensee, but which does not bear a value designation.

2.58. "One-on-one continuous surveillance" means that a licensed surveillance employee is dedicated to continuously monitor a given area without interruption or distraction as prescribed by the Commission.

2.59. "Patron complaint" means a complaint a patron has regarding winnings and losses or the conduct of gambling at the limited gaming facility.

2.60. "Payout" means the winnings that result from a wager.

2.61. “Person" means a human being, association, corporation, club, trust, estate, society, governmental entity, company, joint stock company, receiver, trustee, assignee, referee, and anyone acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of human beings.

2.62. "Picture identification" means a driver license or other piece of identification which is issued by a governmental entity and which has a picture of the individual affixed to, or otherwise part of, the document.

2.63. "Pit" means the area enclosed or encircled by the arrangement of the gaming tables in which casino gambling personnel administer and supervise the live games played at the tables by patrons located outside the perimeter of the area.

2.64. “Player tracking system” means an electronic system attached to and integrated with one or more video lottery terminals at the limited gaming facility licensee that is accessed by persons who have voluntarily agreed to be participants in a player club or player benefits program by whatever name called. This type of computer system is sometimes called a cash management system or a slot accounting system by the general gaming industry.

2.65. “Progressive game” means a video lottery game with a jackpot feature. Only when a video lottery terminal displays the required sequence of numbers, letters or symbols is the jackpot won. At all other times, the jackpot wager contributions are allowed to accumulate, or “progress,” in a jackpot prize pool until the jackpot prize is won. In this regard, it is similar to other jackpot games offered by the Lottery, such as PowerBall®.

2.66. "Predecessor company" means an entity which no longer exists in its original form, but which has assets that have been acquired, in substantial part, by another person or which has undergone certain internal changes, such as a change in identity, form, or capital structure.

2.67. "Public offering" means a sale of securities that is subject to the registration requirements of section 5 of the securities act of 1933, 15 U.S.C. § 77e, or that is exempt from the registration requirements solely by reason of an exemption contained in either of the following provisions:

2.67.a. Section 3(a)(10), 3(a)(11), or 3(c) of the securities act of 1933, 15 U.S.C. § 77c(a)(10), 15 U.S.C. § 77c(a)(11), or 15 U.S.C. § 77c(c); or

2.67.b. Regulation A or regulation D adopted under section 3(b) of the securities act of 1933, 15 U.S.C. § 77c(b).

2.68. "Publicly held company" or "publicly traded corporation" means any of the following:

2.68.a. A person, other than an individual, to which either of the following provisions applies:

2.68.a.1. The person has one or more classes of voting securities registered under section 12 of the Securities and Exchange Act of 1934, 15 U.S.C. § 78l;

2.68.a.2. The person issues securities and is subject to section 15(d) of the Securities and Exchange Act of 1934, 15 U.S.C. § 78o(d); or

2.68.a.3. Another person, other than an individual, required to file under the Securities and Exchange Act of 1934, 15 U.S.C. § 78a et seq.;

2.68.b. A person, other than an individual, created under the laws of a foreign country to which both of the following provisions apply:

2.68.b.1. The person has one or more classes of voting securities registered on the foreign country's securities exchange or over-the-counter market, including any person, other than an individual, that has securities registered or is an issuer under this definition solely because it guaranteed a security issued by an affiliate under a public offering and is considered by the Securities and Exchange Commission to be a co-issuer of a public offering of securities under rule 140 of the Securities and Exchange Act of 1934, 15 U.S.C. § 78;

2.68.b.2. The Commission has determined that the person's activities are regulated in a manner that protects the investors and the State of West Virginia, including any person, other than an individual, that has securities registered or is an issuer under this definition solely because it guaranteed a security issued by an affiliate under a public offering and is considered by the Securities and Exchange Commission to be a co-issuer of a public offering of securities under rule 140 of the Securities and Exchange Act of 1934, 15 U.S.C. § 78; and

2.68.c. A person, other than an individual, that has shares which are traded on an established securities market or traded on a secondary market.

2.69. "RAM" or "random access memory" means the electronic component used for computer work space and storage of volatile information in a video lottery terminal.

2.70. "Randomness" means the unpredictability and absence of pattern in the outcome of an event or sequence of events.

2.71. "Random number generator" means hardware, software, or a combination of hardware and software devices for generating number values that exhibit the characteristics of randomness.

2.72. "Registered agent" means an individual designated to accept service of legal process on behalf of another person.

2.73. "Related party" means one of the following:

2.73.a. An individual or business entity that has a pecuniary interest in the limited gaming facility licensee, a license applicant, or an affiliate thereof, if the limited gaming facility licensee, license applicant, or affiliate is not a publicly held company;

2.73.b. A holder of five percent or more of the outstanding shares of the limited gaming facility licensee, a license applicant, or an affiliate thereof, if the limited gaming facility licensee, license applicant, or affiliate is a publicly held company;

2.73.c. A key person of the limited gaming facility licensee, a license applicant, or an affiliate of the limited gaming facility licensee or a license applicant;

2.73.d. An affiliate of the limited gaming facility licensee or a license applicant;

2.73.e. An immediate family member of a holder of five percent or more of the outstanding shares of the limited gaming facility licensee, a license applicant, or an affiliate of the limited gaming facility licensee or a license applicant; 2.73f. A relative of a key person of the limited gaming facility licensee, a license applicant, or an affiliate of the limited gaming facility licensee or a license applicant;

2.73.g. A relative of an affiliate of the limited gaming facility licensee or a license applicant;

2.73.h. A trust for the benefit of, or managed, by the limited gaming facility licensee, a license applicant, or an affiliate or a key person of the limited gaming facility licensee or a license applicant;

2.73.i. Any other person who is able to significantly influence the management or operating policies of the limited gaming facility licensee, a license applicant, or an affiliate of the limited gaming facility licensee or a license applicant; or

2.73.j. An institutional investor that has a controlling interest in a person that has applied for or holds the limited gaming facility license or supplier license.

2.74. "Related party transactions" means transactions relating to gambling or video lottery operations between the limited gaming facility licensee or license applicant and at least one of the following:

2.74.a. A related party;

2.74.b. An immediate family member; or

2.74.c. A dependent.

2.75. "Relative" means any of the following entities whether by whole or half blood, marriage, adoption, or natural relationship:

2.75.a. A spouse, other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance.

2.75.b. A parent;

2.75.c. A grandparent;

2.75.d. A child;

2.75.e. A grandchild;

2.75.f. A sibling;

2.75.g. An uncle;

2.75.h. An aunt;

2.75.i. A nephew;

2.75.j. A niece;

2.75.k. A first cousin;

2.75.l. A father-in-law;

2.75.m. A mother-in-law;

2.75.n. A son-in-law;

2.75.o. A daughter-in-law;

2.75.p. A brother-in-law;

2.75.q. A sister-in-law; or

2.75.r. A dependent.

2.76. "Sole proprietor" means an individual who owns 100% of the assets and who is principally liable for the debts of a business, regardless of whether another person guarantees payment of the debts.

2.77. "Subsidiary" means a person, other than an individual, including, without limitation, a firm, partnership, trust, limited liability company, or other form of business organization in which an equity interest is owned, subject to a power or right of control, or held with the power to vote directly, indirectly, or in conjunction with a holding company or intermediary company.

2.78. "Substantial creditor" means the holder of a debt instrument against a person which is secured or unsecured, matured or unmatured, liquidated or unliquidated, absolute, fixed, or contingent, and which has an aggregate amount of $100,000.00 or more.

2.79. "Substantial owner" means the holder, whether owned directly, indirectly or attributed, of any of the following:

2.79.a. Five percent or more of the total combined voting power of a corporation or five percent or more of the total value of shares of all classes of stock of a corporation;

2.79.b. Five percent or more interest in a partnership.;

2.79.c. Five percent or more of the value of a trust computed actuarially; or

2.79.d. Five percent or more of the legal or beneficial interest in any other person.

2.80. “Substantial recreational guest amenities” means hotel services including room service, internal access to full-service restaurants, optional guest room turn-down service, valet parking, luggage services, spas and/or a fitness center, golf courses, swimming pools, twenty-four hour housekeeping services, concierge service, in-room movies service, high-speed Internet connectivity in guest rooms, and ample rooms and services for physically handicapped patrons.

2.81. "Supplier" means a person who provides the limited gaming facility with goods or services regarding the realty, construction, maintenance, or business to the limited gaming facility including, but not limited to any of the following:

2.81.a. Junket enterprises;

2.81.b. Casino security businesses;

2.81.c. Manufacturers of gaming devices, video lottery terminals, supplies, articles or equipment;

2.81.d. Distributors of gaming devices, supplies, articles or equipment; and

2.81.e. Persons who service gaming devices or equipment.

2.82. "Surety bond" means a contractual arrangement between the surety, the principal, and the obligee that the surety agrees to protect the obligee if the principal defaults in performing the principal's contractual obligation. The bond is the instrument that binds the surety.

2.83. "Suspected problem area" means an area where unusual occurrences have been observed or good reason exists to believe unusual occurrences will occur.

2.84. "Table drop" means the total dollar amount of United States and foreign currency, chips, marker or credit contained in the drop box of a live gaming device.

2.85. "Table win" means the dollar amount which is won by the limited gaming facility licensee through play at a live game and which is the total of the table drop, plus ending chip inventory, minus opening chip inventory, plus chip credits, minus fills.

2.86. "Theoretical payout percentage" means the sum of the number of cash equivalents, credits, or tokens expected to be paid as a result of the jackpots divided by the number of different possible outcomes.

2.87. "Tilt condition" means a programmed error state for a video lottery terminal that occurs when the video lottery terminal detects an internal error malfunction or attempted cheating. The video lottery terminal ceases processing further input, output, or display information other than that indicating the tilt condition itself.

2.88. "Token" means a representation of value which is redeemable for cash only at the issuing limited gaming facility gambling operation and which is issued and sold by the limited gaming facility licensee for use in the video lottery terminal at its gambling operation.

2.89. "Value chip" means a chip that is clearly and permanently impressed, engraved, or imprinted with the name of the limited gaming facility and the specific value of the chip.

2.90. “Video lottery terminal” means a commission-approved interactive electronic terminal device which is connected with the commission’s central computer system, and which is used for the purpose of playing video lottery games authorized by the commission. A video lottery terminal may simulate the play of one or more video lottery games.

2.91. “Video lottery terminal drop” means the total value of tokens contained in the drop bucket and the currency collected from bill chargers. If a patron is using an electronic card, then the drop includes the amount deducted from a patron’s account as a result of video lottery terminal play.

2.92. "Voting security" means a security that the holder is entitled to vote generally 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 another form of business organization other than a corporation.

2.93. "Wager" means an item that is representative of value risked on a gambling game authorized under the Act and this rule.

2.94. "Wide-area progressive system" means a system of video lottery terminals which are approved by the Commission and which are linked across telecommunication lines as part of a network connecting separate video lottery gaming locations licensed by the Commission with an aggregate prize or prizes. “Wide-area progressive system” can also mean a system connecting video lottery terminals at one or more licensed video lottery location in West Virginia with one or more locations in one or more other states where all locations are operated, licensed and governed by one or more state lotteries as is permitted by article 6, section 36 of the West Virginia Constitution.

PART 2. ADMINISTRATIVE PROVISIONS

W. Va. Code R. § 179-4-3 Provisions Pertaining to Applications, Records and Commission Authority

3.1. In the interpretation of any rules adopted by the Commission, an ambiguity shall be resolved in favor of the interpretation which would provide either of the following:

3.1.a. The greater assurance of integrity in either the operation or regulation of casino gambling; or

3.1.b. Heightened public confidence in the regulation or regulatory processes relating to casino gambling.

3.2. If a provision of a rule promulgated by the Commission or the application of a rule to any person or circumstance, is held invalid by a court of competent jurisdiction, then the provision or application shall not affect other provisions that can be given effect without the invalid provision or application.

3.3. The limited gaming facility licensee and each supplier licensee shall maintain, in a place secure from theft, loss, or destruction, adequate records of its business and accounting operations relating to the gaming operations regulated by this rule. The limited gaming facility licensee or a supplier licensee shall make the records available to the Commission, upon request, within a reasonable time period prescribed by a subpoena duces tecum or by written request of the Director, or his or her designee. A limited gaming facility licensee shall keep and maintain the books, records, or documents in a manner and form approved or required by the Commission.

3.3.a. The limited gaming facility licensee or a supplier licensee shall hold the records for the current year and the two previous years. Records held off-site shall be retrieved and presented to the Commission’s representative within five days of the request to do so. The records shall include, but not be limited to, all of the following:

3.3.a.1. All correspondence with, or reports to, the Commission or any local, state, or federal governmental agency;

3.3.a.2. All correspondence concerning the acquisition, construction, maintenance, or business of a proposed or existing the limited gaming facility;

3.3.a.3. A personnel file on each employee; and

3.3.a.4. All accounting records, ledgers, subsidiary records, computer generated data and internal audit records pertaining to gambling or video lottery activities.

3.3.b. Notwithstanding the foregoing provisions of subdivision 3.3.a of this rule, a limited gaming facility licensee or supplier licensee shall hold copies of all promotional and advertising material, records, or complimentary distributions for the limited gaming facility for at least one year.

3.3.c. The limited gaming facility shall organize and index all required records in a manner that enables the Commission to locate, inspect, review, and analyze the records with reasonable ease and efficiency.

3.3.d. Nothing in subsection 3.3 of this rule shall be construed to require disclosure of documents subject to the attorney-client privilege if the licensee or applicant informs the Director of the existence of the document, a general description of its contents, and the basis for the privilege.

3.4. Unless otherwise permitted or required, a person shall submit all forms, fees, documents, papers, and other materials to Lottery Headquarters in the manner and form prescribed by the Commission.

3.5. An action of the West Virginia Lottery regarding an applicant or licensee relates only to the applicant's or licensee's qualification for licensure under the Act and this rule and does not indicate or suggest that the Commission has considered or passed on the qualifications or application of the applicant or licensee for any other purpose.

3.6. A licensee shall disclose changes in information.

3.6.a. Except as otherwise provided in this rule, if an obligation has been placed upon a licensee to report or submit information to the West Virginia Lottery, the reporting or submission may be accomplished by providing the information to an employee of the West Virginia Lottery.

3.6.b. A licensee or an applicant for a license has a continuing duty to disclose any material changes in information provided to the West Virginia Lottery within thirty days of the time that the applicant or licensee becomes aware of the change. The duty to disclose changes in information continues throughout any period of licensure granted by the West Virginia State Lottery Commission. A licensee or applicant shall make sure that all required release of information forms submitted to the West Virginia Lottery are current.

3.7. An applicant or licensee shall disclose representatives.

3.7.a. An applicant or licensee shall file with the West Virginia Lottery a list of persons authorized to act on the applicant's or licensee's behalf as to any matter before the Commission. An attorney appearing on behalf of an applicant or licensee in a matter before the Commission shall promptly file an appearance identifying his or her client and the matter in which the attorney will appear.

3.7.b. A person holding or applying for the limited gaming facility license or supplier license shall establish and identify a registered agent within the State of West Virginia for the purpose of accepting service of process, notices, and other forms of communication for the person holding or applying for a limited gaming facility license or supplier license.

3.8. A limited gaming facility licensee or supplier licensee shall conduct a reasonable investigation of the background of employees whose duties are related to, or involved in, the conduct of gambling operations in the State of West Virginia to reasonably ensure that the employee is eligible and suitable for the employment under the licensing standards and other requirements of the Act and this rule. A limited gaming facility licensee or supplier licensee shall keep and maintain written records of investigations for all employees. The limited gaming facility licensee or supplier licensee shall make the written records available to the Commission, upon request, within a reasonable time period prescribed by the West Virginia Lottery. Licensure by the Commission may not be relied on by the licensee as the sole criterion for hiring a job applicant.

3.9. Provisions for investigative hearings.

3.9.a. The Commission, when necessary, may conduct hearings for the purpose of investigating an applicant, an application, a licensee, or a third party to gather information regarding eligibility and suitability for licensure, alleged violations of the Act or this rule, or other Commission action under the Act or this rule.

3.9.b. The Commission may require an applicant, a licensee, or a key person or employee of an applicant or licensee to testify or to produce any documents, records, or other materials at a proceeding conducted under this rule.

3.9.c. The Commission, through the Director or his or her designee, may issue subpoenas and subpoenas duces tecum for the production of persons, documents, or other items at a proceeding conducted under this rule.

3.9.d. All testimony at proceedings conducted under this rule shall be given under oath or affirmation administered by a Commission member, hearing officer, or the Director or a person designated by the Director.

3.10. Participation in games by owners, directors, officers, key persons, or gaming employees prohibited. An officer, director, key person, managerial employee, or occupational licensee of the limited gaming facility licensee shall not play or be permitted to play any gambling game at the limited gaming facility except in the course of employee training or when that person is demonstrating to one or more patrons how to play a permitted casino game or video lottery game. A person regulated by this rule shall not be permitted to redeem chips or tokens for any other person, except that a person may redeem chips or tokens in the course of his or her employment with the limited gaming facility.

3.11. Receipt of commercially reasonable consideration for contracts and transactions are required. An applicant for, or holder of the limited gaming facility or supplier license may not enter into or perform any contract or transaction in connection with gambling operations or casino operations related to the limited gaming facility license or supplier license for which application has been made or which the licensee holds unless the applicant or licensee transfers or receives consideration that is commercially reasonable.

3.12. The Commission delegates to the Director all power and authority to act in the name of the West Virginia Lottery with respect to all reasonable, necessary, and appropriate actions to administer and carry out the administrative and executive functions of the West Virginia Lottery, including, but not limited to, the power to do any of the following:

3.12.a. Issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of documents and materials;

3.12.b. Administer oaths;

3.12.c. Issue and renew occupational licenses under this rule;

3.12.d. Request and accept documents, plans, procedures, amendments to procedures, and other information necessary for the West Virginia Lottery to carry out its duties under the Act and this rule;

3.12.e. Conduct investigations, inspections, audits, share information with law enforcement agencies; and engage in other functions necessary to the proper administration and enforcement of the Act and this rule; and

3.12.f. Grant requests and waivers, answer inquiries, issue interpretations, and otherwise take any action that is reasonably requested by applicants and licensees in furtherance of, and consistent with, the efficient administration and enforcement of the provisions of the Act and this rule, as determined to be necessary or appropriate by the Director.

3.13. The limited gaming facility licensee or license applicant shall maintain a central repository of all of its contracts at its facility that relate to its gambling and video lottery operations. The Director and designated West Virginia Lottery employees shall be allowed unrestricted access to the repository and any contract or transaction entered into by the limited gaming facility licensee or license applicant upon demand. The licensee or applicant may be required by the Director to submit promptly copies of any contract upon written request of the Director.

W. Va. Code R. § 179-4-4 Reserved

W. Va. Code R. § 179-4-5 Duty of Reasonable Care

A limited gaming facility licensee, limited gaming facility license applicant, supplier license applicant or supplier licensee shall exercise reasonable care to ensure that each contract or transaction the licensee or license applicant enters into meets the requirements of the Act and this rule.

W. Va. Code R. § 179-4-6 Commission Reports

The Commission shall specify from time to time the nature and frequency of reports a licensee shall make to the Commission to ensure compliance with the Act or this rule.

W. Va. Code R. § 179-4-7 Mandatory Contract Notification

7.1. The Commission may direct a licensee or applicant to cancel any contract or transaction relating to gambling and/or video lottery operations that the Commission determines does not comply with the Act and this rule. A contract relating to gambling and/or video lottery operations entered into by a limited gaming facility licensee or license applicant shall contain a provision permitting the limited gaming facility licensee or license applicant to terminate the contract if the Commission determines that the contract does not comply with the Act or this rule.

7.2. A limited gaming facility licensee or license applicant shall include a contract described in this rule in the quarterly and annual reports submitted under this rule.

W. Va. Code R. § 179-4-8 Confidential Records

Materials, or portions of materials, submitted under the Act or this rule may be identified as confidential by a licensee, an applicant for a license, or any other person. If the materials are exempt from disclosure by statute, the materials shall not be disclosed by the Commission, except to other federal and state gambling regulating agencies and law enforcement agencies.

W. Va. Code R. § 179-4-9 Waiver, Restriction or Alteration of Requirements

The Commission may, in writing, waive, restrict, or alter any requirement or procedure set forth in this rule, if the Commission determines that the requirement or procedure is impractical or burdensome, that the waiver, restriction, or alteration is in the best interest of the public and the gaming industry, and that the waiver, restriction, or alteration is not outside the technical requirements necessary to serve the purpose of the requirement or procedure.

W. Va. Code R. § 179-4-10 General Reporting Requirements; Obligation to Report Certain Events

A person who holds or applies for the limited gaming facility license or a supplier license shall provide an immediate oral report, followed by a written report, of suspected criminal activity related to the person's proposed or existing gambling operation or casino operation or supplier operations in West Virginia. Additionally, a person who applies for or holds the limited gaming facility license or supplier license shall provide written notice to the Commission at the time the person becomes aware of any of the following:

10.1. A violation or apparent violation of the Act or this rule by any of the following entities:

10.1.a. A person who applies for or holds the limited gaming facility license or a supplier license;

10.1.b. A key person, an employee of a person applying for or holding the limited gaming facility license or a supplier license, or a key person of a holding company or affiliate that is in control of a key person, an employee of a person applying for or holding the limited gaming facility license or a supplier license; or

10.1.c. A person who acts, or is authorized to act, on behalf of or in furtherance of the interests of the limited gaming facility license or supplier license applicant or licensee, or a holding company or affiliate that is in control of the applicant or licensee;

10.2. The initiation of any investigation that could, or any action that does, result in the imposition of any civil, criminal, or administrative sanction or penalty upon a person who applies for or holds the limited gaming facility license or a supplier license;

10.3. To the extent known, the initiation of any investigation that could, or any action that does, result in the imposition of any civil, criminal, or administrative sanction or penalty upon a person who applies for or holds an occupational license;

10.4. The filing of any criminal, civil, or administrative complaint against a holding company or affiliate that has control of the applicant or holder of the limited gaming facility license or a supplier license that relates to the eligibility and suitability of the applicant or licensee to hold the limited gaming facility license or a supplier license in West Virginia under the Act and this rule;

10.5. The receipt of a subpoena that requires testimony by the person applying for or holding the limited gaming facility license or a supplier license, or by a key person, holding company or affiliate in control of the person applying for or holding the limited gaming facility license or a supplier license, that relates to the gambling or casino operations or business practices of the applicant or licensee in West Virginia or any other jurisdiction;

10.6. The receipt of a complaint or other notice filed with a public body regarding a delinquency in the payment of, or a dispute over the filings concerning the payment of, a tax required under federal, state, or local law, including all of the following information:

10.6.a. The tax amount;

10.6.b. The type of tax;

10.6.c. The taxing agency; and

10.6.d. The time periods involved.

10.7. A bankruptcy, receivership, or debt adjustment initiated by or against the person applying for or holding the limited gaming facility license or a supplier license or an officer, director, or the immediate parent company who is in control of the person applying for or holding the limited gaming facility license or a supplier license.

10.8. A compliance review conducted by the internal revenue service in accordance with title 31 of the United States Code, 31 U.S.C. § 5311 et seq., relating to the person applying for or holding the limited gaming facility license or a supplier license, an officer, a director, a holding company, or an affiliate that is in control of the person applying for or holding the limited gaming facility license or a supplier license. The person applying for or holding the limited gaming facility license or a supplier license shall provide the Commission with a copy of the compliance review report or its equivalent within 10 days of the receipt of the report;

10.9. A suspicious activity report or a currency transaction report, or both. Copies of the reports may be made available for viewing by authorized Commission personnel;

10.10. A material violation of Commission-approved internal control procedures related to security or to the transfer, collection, distribution, or accounting of monies and a statement of the corrective action taken by the limited gaming facility licensee with respect to the violations;

10.11. A material violation of an agreement with a governmental authority in West Virginia; or

10.12. Any action, occurrence, or nonoccurrence for which the Commission has instructed the person applying for or holding limited gaming facility license or a supplier license to provide notice.

W. Va. Code R. § 179-4-11 Licensee’s Duty to Disclose Violation of Licenses

A person who holds or applies for a license shall immediately notify the Commission, in writing, if the person becomes aware that a limited gaming facility, supplier, or occupational licensee is in violation of the Act or this rule .

W. Va. Code R. § 179-4-12 Applicant's Obligation to Report Certain Events

Whenever this rule requires a licensee to provide notice to the Commission of a fact or occurrence, an applicant for a license shall provide a written notice to the Commission under the same circumstances that a licensee is required to provide notice, except to the extent that the Commission may waive the requirements.

W. Va. Code R. § 179-4-13 Contents of Notice and Supplementation Requirement

The written notices required under the Act and this rule shall provide the detail that is reasonably required to describe the reported event and shall be supplemented at the times, and in the detail, that the Commission requests.

W. Va. Code R. § 179-4-14 Reserved

W. Va. Code R. § 179-4-15 Restricted Transactions

15.1. A licensee or applicant, or an affiliate, key person, or representative of a licensee or applicant, shall not knowingly give, convey, transfer, or enter into a contract to convey or transfer, a direct or indirect interest in the applicant or licensee to any of the following entities during his or her board membership or employment and for a period of four years after the date that his or her board membership or employment terminates:

15.1.a. A member of the Commission;

15.1.b. The Director of the West Virginia Lottery;

15.1.c. An employee of the West Virginia Lottery; or

15.1.d. An immediate family member residing in same household of any of the entities listed in subdivisions (a) to (c) of this subsection.

15.2. A licensee or applicant for a license, or an affiliate, key person, or representative of a licensee or applicant, shall not knowingly employ, or enter into a contract for goods or services with, any of the following entities during his or her casino-related employment and for a period of four years after the date that his or her board membership or casino-related employment terminates:

15.2.a. A member of the West Virginia State Lottery Commission;

15.2.b. The Director or an employee of the West Virginia Lottery;

15.2.c. An immediate family member residing in the same household of any of the entities listed in subdivisions (a) and (b) of this subsection; or

15.2.d. Any other person whom the Commission determines is, or was in the past year, able to significantly affect, influence, or control any of the entities listed in subdivisions (a) to (c) of this subsection by reason of business, financial, personal, or social association or relationship.

15.3. A licensee or applicant for a license, or an affiliate, key person, or representative of a licensee or applicant, shall not knowingly give, convey, transfer, or enter into a contract to convey or transfer, a direct or indirect interest in the licensee or applicant for a license to an employee of the West Virginia Lottery, any immediate family member residing in the same household of an employee of the West Virginia Lottery during his or her Lottery employment and for a period of two years after the date his or her Lottery employment terminates, or any other person whom the Commission determines is, or was in the past four years, able to significantly affect, influence, or control an employee by reason of business, financial, personal, or social association or relationship.

15.4. A licensee, applicant, or an affiliate, key person, or representative of a licensee or applicant, shall not knowingly employ, or enter into a contract for goods or services with, any of the following entities during his or her casino-related state police employment and for a period of two years after the date that his or her casino-related state police employment terminates:

15.4.a. A Member of the West Virginia State Police;

15.4.b. An employee of the West Virginia Lottery;

15.4.c. An immediate family member residing in the same household of either of the entities listed in subdivisions (a) and (b) of this subsection; or

15.4.d. Any other person whom the Commission determines is, or was in the past four years, able to significantly affect, influence, or control entities listed in subdivisions (a) and (b) of this subsection by reason of business, financial, personal, or social association or relationship.

15.5. A person may not apply for or be granted a license under the Act if any of the following entities has any direct or indirect interest in the person and the person knows of the interest:

15.5.a. A current member of the West Virginia State Lottery Commission;

15.5.b. The Director of the West Virginia Lottery;

15.5.c. An employee of the West Virginia Lottery;

15.5.d. An employee of the State Police assigned to the West Virginia Lottery;

15.5.e. An immediate family member residing in the same household of any of the entities listed in subdivisions (a) to (d) of this subsection; or

15.5.f. Any other person whom the Commission determines is, or was in the past year, able to significantly affect, influence, or control the entities listed in subdivisions (a) to (e) of this subsection by reason of business, financial, personal, or social association or relationship.

15.6. A person may not apply for or be granted a license under the Act if any of the following entities has a financial interest or a direct or indirect pecuniary or ownership interest in the person and less than four years has passed since the date on which the Commission membership or term of a former member, or the employment of the Director or supervisory employee terminated and the person knows of the interest:

15.6.a. A former member of the West Virginia State Lottery Commission;

15.6.b. A former Director or supervisory employee of the West Virginia Lottery;

15.6.c. An immediate family member residing in the same household of any of the following entities listed in subdivisions (a) and (b) of this subsection; or

15.6.d. Any other person whom the Commission determines is, or was in the past year, able to significantly affect, influence, or control the entities listed in subdivisions (a) through (c) of this subsection by reason of business, financial, personal, or social association or relationship.

15.7. A person may not apply for or be granted a license under the Act if any of the following entities has a direct or indirect interest in the person and less than two years has passed since the former employee's employment terminated and the person knows of the interest:

15.7.a. A former employee of the West Virginia Lottery;

15.7.b. A former state police employee formerly assigned to the West Virginia Lottery;

15.7.c. An immediate family member residing in the same household of any of the entities listed in subdivisions (a) through (c) of this subsection; or

15.7.d. Any other person whom the Commission determines is, or was in the past year, able to significantly affect, influence, or control the entities listed in subdivisions (a) to (c) of this subsection by reason of business, financial, personal, or social associations or relationship.

15.8. A person may not apply for or be granted a license under the Act if any of the following entities has a direct or indirect interest in the person and less than two years has passed since the former employee's employment terminated and the person knows of the interest:

15.8.a. A former employee of the West Virginia Lottery;

15.8.b. A former state police employee formerly assigned to the West Virginia Lottery;

15.8.c. An immediate family member residing in the same household of any of the entities listed in subdivisions (a) through (c) of this subsection; or

15.8.d. Any other person whom the Commission determines is, or was in the past year, able to significantly affect, influence, or control the entities listed in subdivisions (a) to (c) of this subsection by reason of business, financial, personal, or social associations or relationship.

15.9. A former Commission member or employee of the West Virginia Lottery may appear before the Commission as a fact witness about actions by the Commission member or employee during his or her tenure as a member of the Commission or employee of the West Virginia Lottery. A licensee, applicant, or the Commission shall not compensate a fact witness for his or her appearance other than by a standard witness fee and reimbursement for travel expenses as established by statute.

15.10. A licensee or an applicant for a license, or an affiliate, key person, or representative of a licensee or applicant for a license, shall not knowingly employ, or enter into any contract for gaming goods or services with a state, local, or federal law enforcement officer.

W. Va. Code R. § 179-4-16 Restrictions on Gift-Giving

16.1. A licensee or an applicant for a license, or an affiliate, key person, or representative of a licensee or applicant for a license, shall not directly or indirectly give or offer to give any gift, gratuity, benefit, compensation, travel, lodging, food or beverage, or any other thing of value to any of the following entities:

16.1.a. A member of the West Virginia State Lottery Commission;

16.1.b. The Director of the West Virginia Lottery;

16.1.c. An employee of the West Virginia Lottery;

16.1.d. An immediate family member residing in the same household of any of the individuals listed in subdivisions (a) to (c) of this subsection; or

16.1.e. Any other person whom the Commission determines is, or was in the past two years, able to significantly affect, influence, or control the entities listed in subdivisions (a) to (d) of this subsection by reason of business, financial, personal, or social association or relationship.

W. Va. Code R. § 179-4-17 Restrictions on the Limited Gaming Facility Licensee Interest in a Supplier Licensee

An applicant applying for or holder of the limited gaming facility license shall not own an interest of more than 10% in a supplier licensed under the Act or this rule.

W. Va. Code R. § 179-4-18 Review of Information at Licensee's or Applicant's Premises; Costs

18.1. At the option of the Director, the Director or his or her designee may review, at the premises of the custodian of the information, any information that the Act, this rule, the Director, or his or her designee requires from any of the following entities:

18.1.a. A license applicant;

18.1.b. A licensee;

18.1.c. An affiliate of a license applicant or licensee; and

18.1.d. A person who holds more than a 5% direct or indirect interest in an applicant or licensee.

18.2. If information is reviewed at the premises of the custodian of the information then the license applicant or licensee shall, as soon as practicable, reimburse the Commission for all incremental expenses incurred in performing the review at the premises of the custodian of the information, including travel, food, and lodging. Reimbursement shall be exclusive of all other fees required under the Act and this rule.

W. Va. Code R. § 179-4-19 Reserved

PART 3. LICENSES

W. Va. Code R. § 179-4-20 Applications

20.1. An application for a license under the Act and this rule is a request by the applicant seeking a revocable privilege. The Commission shall grant a license if the applicant meets the licensing requirements of the Act and this rule.

20.2. An applicant for a license under the Act and this rule shall, at all times, have the burden of demonstrating to the Commission, by clear and convincing evidence, that the applicant is eligible, qualified, and suitable to be granted and retain the license for which application is made under the applicable licensing standards and requirements of the Act and this rule.

20.3. A license issued by the Commission under the Act or this rule is a revocable privilege granted by the Commission. A person who holds a license does not acquire, and shall not be considered to acquire, a vested property right or other right, in the license.

20.4. The Commission shall use reasonable efforts to avoid unnecessary publicity concerning information included in the applications and other documents that are or could reasonably be considered sensitive; however, an applicant or licensee shall accept any risk of adverse publicity, public notice, notoriety, embarrassment, criticism, financial loss, or other unfavorable or harmful consequences that may occur in connection with, or as a result of, the application and licensing process or the public disclosure of information submitted to the Commission with a license application or at the Commission's request under the Act and this rule.

20.5. An applicant or licensee may claim any privilege afforded by the Constitution or laws of the United States or of the state of West Virginia in refusing to answer questions or provide information requested by the Commission. However, a claim of privilege with respect to any testimony or evidence pertaining to the eligibility, qualifications, or suitability of an applicant or licensee to be granted or hold a license under the Act and this rule may constitute cause for denial, suspension, revocation or restriction of the license.

20.6. An applicant and licensee shall:

20.6.a. Notify the Commission of a material change in the information submitted in the license application submitted by the applicant or licensee or a change in circumstance, that may render the applicant or licensee ineligible, unqualified, or unsuitable to hold the license under the licensing standards and requirements of the Act and this rule;

20.6.b. Maintain the applicant's or licensee's eligibility, qualifications, and suitability to be issued and hold the license held or applied for under the Act and this rule; and

20.6.c. Provide any information requested by the Commission relating to licensing or regulation; cooperate with the Commission in investigations, hearings, and enforcement and disciplinary actions; and comply with all conditions, restrictions, requirements, orders, and rulings of the Commission in accordance with the Act and this rule.

20.7. An applicant, licensee or person required to be qualified as part of an application for the issuance of, or a request for renewal of, a license shall furnish fingerprints for a national criminal records check by the Criminal Identification Bureau of the West Virginia State Police and the Federal Bureau of Investigation. The fingerprints shall be furnished by all persons required to be named in the application and shall be accompanied by a signed authorization for the release of information by the Criminal Investigation Bureau and the Federal Bureau of Investigation.

W. Va. Code R. § 179-4-21 Classification of Licenses

The Commission may classify an activity to be licensed in addition to, different from, or at a different level than, the following license classifications:

21.1. License to operate a gaming facility. The person who operates a casino gambling operation is required to hold a license to operate a gaming facility;

21.2. Supplier license. Persons who supply equipment, goods, or services to the limited gaming facility licensee who are directly related to or affect gambling operations authorized and regulated under the Act and this rule are required to hold a license to supply the gaming facility. There are two different classes of supplier license, as follows:

21.2.a. Supplier license, level one, for suppliers that qualify as manufacturers under W.Va. Code §29-25-2(y); and

21.2.b. Supplier license, level two, for all other suppliers;

21.3. Occupational license. An individual who is employed by a gaming facility licensee whose work duties are directly related to, or involved in, the gambling operation or performed in a restricted area of the casino or in the gaming area of the casino, or who is a gaming operations manager, a general manager or department manager having oversight or operational responsibility for operation of the gaming facility, or an equivalent, shall hold a valid occupational license that is the level required for his or her position before the individual may perform any of the duties of his or her position. There are two different classes of occupational license, as follows:

21.3.a. Occupational license, level one, for policy-making positions; and

21.3.b. Occupational license, level two, for other positions.

21.4. Management services license.

W. Va. Code R. § 179-4-22 Fees, Fines, Charges, Assessments

22.1. All fees, fines, charges, and assessments provided for under this rule shall be submitted in a timely manner to the Commission in the form of a certified check, cashier's check, or money order made payable to: "West Virginia Lottery," or in the form of an electronic wire transfer, or by another method of payment that is acceptable to the Commission.

22.2. The license application fee shall be used by the Commission to conduct an appropriate background investigation of the applicant as prescribed by the Commission, the Act, and this rule. The Commission shall not refund any portion of a remitted license application fee. An applicant, or the limited gaming facility licensee on the applicant’s behalf, shall submit the following nonrefundable license application fees to the Commission, together with the required application form or forms, for the corresponding license classification to which the fees relate:

22.2.a. The limited gaming facility license: $65,000.00;

22.2.b. Supplier licenses: $100.00;

22.2.c. Occupational licenses: $100.00; and

22.2.d. Management services license: $100.00

22.3. The following license renewal fees shall be submitted to the Commission by the licensee for each subsequent renewal of the license under the Act and this rule:

22.3.a. Limited gaming facility license:

22.3.a.1. For the second year that it is licensed the licensee shall pay $250,000;

22.3.a.2. For the third year that it is licensed the licensee shall pay $500,000; and

22.3.a.3. For every year after the third year that it is licensed the licensee shall pay an amount calculated by determining the annual average gross receipts of the West Virginia pari-mutuel racetracks with table game licenses for the last full fiscal year of adjusted gross receipts available, and dividing that number into the licensed gaming facility operator’s adjusted gross receipts for the same full fiscal year of adjusted gross receipts to obtain a percentage, and by multiplying the resulting percentage by $2,500,000.00. In the event that the calculation results in an amount less than $500,000, then the limited gaming facility licensee must pay $500,000. In the event that the calculation results in an amount greater than $2,500,000.00, then the limited gaming facility licensee must pay $2,500,000.00;

22.3.b. Supplier license: $100.00;

22.3.c. Occupational license: $100.00; and

22.3.d. Management services license: $100.00.

22.4. A supplier license and a management services license each expires at the end of the twelfth month following its initial effective date. For example, if one of the licenses were issued on the fifteenth day of May in one year, it must be renewed before the first day of June in the following year.

W. Va. Code R. § 179-4-23 Persons Required to be Qualified for Issuance and Renewal of Gaming Facility Operator, Supplier, and Management Services Provider Licenses

23.1. The Commission shall not issue or renew the license of a gaming facility, supplier, or management services provider unless the individual qualifications of every person required by the Act and this rule to qualify, as part of the application or request for the issuance or renewal of the license, shall have first been determined by the Commission eligible, qualified, and suitable in accordance with the relevant licensing standards set forth in the Act and this rule.

23.2. The following persons are required to qualify as part of the application for the issuance, or request for renewal, of the limited gaming facility license, a supplier license, or a management services provider license:

23.2.a. If the person who makes application for a gaming facility, supplier or management services provider license is a person whose stock, equity interest, or ownership interest is publicly traded and regulated by the Securities and Exchange Commission, each of the applicant's key persons;

23.2.b. If the person who makes application for the limited gaming facility, supplier or management services provider license is not a person whose stock is publicly traded and regulated by the securities and exchange Commission, each of the applicant's key persons and each person, other than a publicly traded corporation and its 5% or less shareholders, that has a combined direct, indirect, or attributed interest of 5% or more in the applicant; and

23.2.c. A person who is required to apply for the limited gaming facility, supplier or management services provider license under the Act and this rule.

23.3. The Commission may at any time require a person that applies for or holds the limited gaming facility license or a supplier license to establish the qualifications of any other affiliate, investor, creditor, employee, agent, or representative of the applicant or licensee or any other person that is connected, related, or associated with the applicant whom the Commission determines must be qualified under the Act and this rule.

23.4. A person required to qualify as part of the application or request for issuance or renewal of the limited gaming facility license or a supplier license shall complete and file, with the Commission, an application or annual renewal report and the required disclosure forms in the manner and form prescribed by the Commission.

23.5. A person that applies for or holds the limited gaming facility license or a supplier license shall ensure that all persons who are required by the Act and this rule to establish their qualifications as part of the applicant's application for the issuance, or the licensee's maintenance or renewal, of the limited gaming facility license or a supplier license have filed, with the Commission, all required applications, reports, and disclosure forms in the manner and form prescribed by the Commission.

W. Va. Code R. § 179-4-24 Limited Gaming Facility Licensing Procedures

24.1. Except to the extent the Commission may require different or additional procedures, an applicant for a limited gaming facility license shall provide all of the following documents before licensing:

24.1.a. Application;

24.1.b. Payment of application fee;

24.1.c. The canvass of votes of the local option election proving passage of casino gaming at the historic resort hotel; and

24.1.d. Fingerprint images for the background investigation by the Commission;

24.2. The Commission shall review these documents and the analysis of the documents and issue or decline to issue the license, or may require that the applicant provide additional information.

W. Va. Code R. § 179-4-25 Limited Gaming Facility License Application

25.1. A person applying for the limited gaming facility license and a person required to be qualified as part of the application shall complete and submit an application and disclosure form or forms in the manner and form prescribed by the Commission. An applicant shall make the application and disclosure form or forms under oath on forms provided by the Commission. The application and disclosure form or forms shall contain all information required by the Commission.

25.2. The limited gaming facility license application procedures are as follows:

25.2.a. The Commission shall use reasonable efforts to avoid unnecessary publicity concerning information included in the applications and other documents that are or could reasonably be considered sensitive, however, upon application, an applicant shall assume and accept, in writing, under oath, all risk of adverse publicity, notoriety, embarrassment, criticism, financial loss, or other unfavorable or harmful consequences that may occur in connection with the application process or the public disclosure of information submitted with the application and disclosure form or forms.

25.2.b. Upon application, an applicant shall also expressly waive and give up, in writing, under oath, all claims for damages that may result from the application and licensing process.

25.2.c. Upon application, an applicant shall also consent, in writing, under oath, to being subject to the inspections, investigations, audits, searches, and seizures under section eighteen of the Act for the duration of the limited gaming facility license for which application is made.

25.2.d. Upon applying for, or while holding, the limited gaming facility license under the Act and this rule, an applicant or licensee shall also authorize and consent, in writing, under oath, to release and disclose, to the Commission and its authorized representatives and agents, all otherwise confidential records that the Commission requests that are in the possession or control of the applicant or a third party, including, without limitation, tax records, financial records, business records or other records pertaining to the applicant or licensee held by a federal, state, or local governmental agency or by a credit bureau or financial institution.

25.2.e. The Commission shall conduct a background investigation of an applicant. The Commission shall also use the information provided in the application and disclosure form or forms as a basis for a background investigation, which the Commission shall conduct on each applicant, and to evaluate and determine the eligibility, qualifications, and suitability of the applicant to receive the limited gaming license under the licensing standards and criteria provided in the Act and this rule. A misrepresentation or omission in the application is cause for the denial, suspension, restriction, or revocation of the limited gaming license by the Commission.

25.2.f. An applicant shall provide the name, address, and telephone number of a representative to act as a liaison to the Commission. The applicant shall facilitate, assist, and cooperate with the Commission in its conduct of background investigations of the applicant under the Act and this rule.

25.2.g. The Commission shall not issue or renew a limited gaming license unless the applicant and each person required to be qualified as part of the application for issuance or request for renewal of the license has completed and filed, with the Commission, all required applications, license renewal forms, and disclosure forms in the manner and form prescribed by the Commission and provides all information, documentation, assurances, waivers and releases required by the Act and this rule.

25.2.h. An applicant shall file the required application forms before the expiration of deadlines established and published by the Commission.

25.2.i. An applicant is under a continuing duty to disclose any material or substantive changes in the information or documentation provided in or with the application, renewal, and disclosure forms submitted to the Commission.

25.2.j. A person applying for the limited gaming facility license shall request an amendment to its application if it knows or should have known that there has been a change in any of the following:

25.2.j.1. A change of the applicant's key persons or the key persons of its holding companies or affiliates that have control of the applicant;

25.2.j.2. A change in the type of business organization or entity;

25.2.j.3. An adverse change of more than 2 percentage points in capitalization or debt to equity ratio;

25.2.j.4. A change of investors or debt holders, or both; or

25.2.j.5. A change of the source of funds.

25.2.k. A limited gaming license application may be withdrawn upon written notice to the Commission before Commission action on the application. The application fee shall not be refunded to a withdrawing applicant.

25.2.l. The Commission may allow information, documents, or other materials submitted by an applicant in a withdrawn application to be incorporated by reference into a subsequent application.

25.3. The limited gaming license application shall require the person applying for the license, and each person who has control of the applicant to be qualified as part of the application, to submit all of the information and documentation required in this subsection and its subdivisions on forms prescribed by the Commission. Persons who are considered to have control of an applicant including: (1) Each person associated with a corporate applicant or the immediate parent company of the applicant (but not including a bank or other licensed lending institution which holds a mortgage or other lien acquired in the ordinary course of business) who has the ability to control the activities of the corporate applicant or elect a majority of the board of directors of that corporation; (2) Each person associated with a non-corporate applicant who directly or indirectly holds any beneficial or proprietary interest in the applicant or who the Commission determines to have the ability to control the applicant; and (3) Key personnel of an applicant, including any executive, employee or agent, having the power to exercise significant influence over decisions concerning any part of the applicant's business operation, shall provide the following information to the Commission:

25.3.a. Disclosure forms, in the manner and form prescribed by the Commission, for the applicant and each person required to be qualified as part of the applicant's application under the Act and this rule. The forms shall contain the information, documentation, assurances, waivers and releases prescribed in the Act and this rule;

25.3.b. The name, address, and telephone number of the applicant's primary contact person and registered agent authorized to accept notices, subpoenas, summons, and other legal documents from the Commission on behalf of the applicant;

25.3.c. The names, addresses, phone numbers, dates of birth, social security numbers, fingerprints, photographs, and other personal, business, and financial background information relating to the identification, character, reputation, integrity, business probity, ability and experience, financial means, experience, responsibility, and record of law abidance of all of the following persons to the extent known and identifiable by the person applying for the limited gaming facility license:

25.3.c.1. The person that applies for the limited gaming facility license;

25.3.c.2. The key persons of the person applying for the license;

25.3.c.3. The key persons of the immediate parent company who has control of the person applying for the license;

25.3.c.4. Other persons who are required to be qualified as part of the application; and

25.3.c.5. Civil litigation and criminal history of all of the following entities to the extent known and identifiable by the person applying for the limited gaming facility license:

25.3.c.5.A. The person applying for the limited gaming facility license;

25.3.c.5.B. The key persons of the applicant;

25.3.c.5.C. The key persons of the immediate parent company who has control of the person applying for the license; and

25.3.c.5.D. Other persons who are required to be qualified as part of application;

25.3.d. Information and documentation required by the Commission to establish and determine the identity, eligibility, suitability, and qualification of the applicant or any other person required to be qualified, as part of the application, as a financial source under the Act or this rule;

25.3.e. Information and documentation required by the Commission to establish and determine the financial stability, integrity, and responsibility of the person applying for the limited gaming license and a holding company, affiliate, or intermediary company that is required to be qualified as part of the application under the Act and this rule and to establish and determine the integrity of the applicant's financial sources and adequacy of the applicant's financial resources to develop, construct, renovate, maintain, and operate the proposed casino in accordance with the requirements of the Act and this rule. The information shall include, without limitation, a description of the capitalization for the proposed limited gaming facility and the amount and source of all debt and equity involved in the capitalization for the proposed limited gaming facility;

25.3.f. Information and documentation required by the Commission to establish and determine sufficient business ability on the part of the person applying for the limited gaming license and the applicant's key persons to properly manage and operate the proposed limited gaming operation in a successful and efficient manner and in accordance with the requirements of its certified development agreement and the Act and this rule;

25.3.g. Information and documentation required by the Commission concerning the proposed site of the applicant's proposed limited gaming facility;

25.3.h. Information and documentation required by the Commission concerning the proposed gaming room, including, without limitation, floor plans showing the location of each gaming point and device, and the location and coverage of all closed circuit television cameras;

25.3.i. Information and documentation required by the Commission concerning the applicant's construction or renovation program for the applicant's proposed casino, infrastructure, and support facilities, including, without limitation, all of the following information and documentation:

25.3.i.1. A certified copy of the County Commission’s canvass of votes pertaining to the local option election required by section seven of the Act;

25.3.i.2. An affidavit signed by the person applying for the license that the applicant has no outstanding un-appealed delinquencies of taxes and fees due the State of West Virginia;

25.3.i.3. The estimated construction time and anticipated date of opening;

25.3.i.4. The status of all required governmental and regulatory permits and approvals and any conditions of all required governmental and regulatory permits and approvals;

25.3.i.5. Sufficient documentation that the applicant is the owner or wholly owned by the owner of an existing historic resort hotel within the meaning of the Act; and

25.3.i.6. The architect, general contractor, construction manager, and primary subcontractors, environmental and traffic consultants, and interior designer used or to be used on the construction or renovation project;

25.3.j. Information and documentation required by the Commission concerning the organizational and operational plans for the proposed limited gaming operation, including, without limitation, the recruitment, employment, supervision, and training of employees, management contracts, and leases;

25.3.k. Information and documentation required by the Commission concerning the applicant's plans for providing food and beverage and other concessions in the gaming area of the historic resort hotel, the status of all relevant required governmental and regulatory permits and approvals, and any conditions of all relevant required governmental and regulatory permits and approvals;

25.3.l. The names, business addresses, telephone numbers, and principal contact persons of the applicant's identified suppliers of gaming-related equipment, goods, and services used in the gaming areas of the historic resort hotel regardless of the value of purchases from each supplier;

25.3.m. Information and documentation required by the Commission concerning the applicant's plans and procedures for extending credit for gambling and the collection of gambling-related debts;

25.3.n. Information and documentation required by the Commission concerning the applicant's plans and procedures for player tracking or slot management systems;

25.3.o. Information and documentation required by the Commission concerning all of the following:

25.3.o.1. The applicant's internal controls;

25.3.o.2. Accounting policies and procedures;

25.3.o.3. Security and surveillance; and

25.3.o.4. Other policies and procedures related to the integrity and protection of its assets and proposed gambling operation and the safety of its patrons and the public;

25.3.p. Information and documentation required by the Commission concerning any agreements, covenants, or options by the person applying for the limited gaming license or the key persons of the applicant or any holding company or affiliate that has control of the applicant to lease or purchase the actual or proposed site of the applicant's proposed casino;

25.3.q. Information and documentation required by the Commission regarding the types of insurance the applicant has or will obtain, including, without limitation, the following types of insurance:

25.3.q.1. Liability;

25.3.q.2. Casualty;

25.3.q.3. Fire;

25.3.q.4. Theft; and

25.3.q.5. Worker's compensation;

25.3.r. Confidential information and documentation required by the Commission from the applicant and other persons required to be qualified as part of the application, including, without limitation, the following:

25.3.r.1. Confidential business and financial information;

25.3.r.2. Confidential taxpayer information;

25.3.r.3. Confidential trade secrets related to the conduct of the proposed gambling operation, including, without limitation, all of the following with respect to the applicant:

25.3.r.3.A. Security and surveillance plans;

25.3.r.3.B. Internal control procedures;

25.3.r.3.C. Salary structure and payroll;

25.3.r.3.D. Market research and feasibility studies; and

25.3.r.3.E. Advertising, marketing, and promotional plans; and

25.3.r.4. Confidential personal information;

25.3.s. Information or documentation required by the Commission which is exempt from public disclosure under the West Virginia Freedom of Information Act [W. Va. Code §29B-1-4] or which the applicant or filer wishes to be treated as confidential as a separate part of the application under a cover clearly labeled "Confidential Information." An applicant shall submit the information or documentation in the manner and form prescribed by the Commission;

25.3.t. All required written waivers, assurances, releases and affidavits, which an applicant shall submit in the manner and form prescribed by the Commission;

25.3.u. A statement listing the name, position or title, and business address and telephone number of each individual who completed or prepared any part of the application for the applicant;

25.3.v. A surety bond required by the Act in an amount to be determined by the Commission; and

25.3.w. Other information or documentation that the Commission may consider material and necessary to establish the identification, eligibility, suitability, and qualification of the applicant or any other person required to be qualified or licensed as part of the application under the licensing standards and requirements of the Act and this rule.

25.4. Upon initial licensing and subsequent annual renewal, the applicant for the limited gaming facility operator license shall provide the Commission with a copy of the contract it holds with the historic resort hotel that permits it to operate the limited gaming facility on the existing historic resort hotel premises, if the limited gaming facility operator is not the owner of the historic resort hotel.

W. Va. Code R. § 179-4-26 Issuance of a Limited Gaming License

26.1. The Director or his or her designee shall conduct a thorough review of the application submitted by the applicant, of the background investigation of persons involved with the applicant and the fiscal and physical qualifications of the applicant and its facilities, and report to the Commission, in writing, whether the applicant has satisfactorily complied with the conditions and requirements of the Commission, the Act, and this rule for granting and issuing a limited gaming license to the applicant. The Director shall ensure that a copy of his or her written report to the Commission is served on the applicant.

26.2. Upon receipt of the Director's report, the Commission shall docket the issue for its next regular or special meeting for purposes of taking further evidence and rendering its final decision on the application.

26.3. The Commission shall place restrictions and conditions on the limited gaming facility license, including, but not limited to, all of the following:

26.3.a. The licensee shall maintain its required bond in accordance with the Act;

26.3.b. The licensee's gambling operation shall undergo, and successfully complete, a sufficient number and type of practice gambling operations to ensure that the gambling operation is conducted in compliance with the Act and this rule; and

26.3.c. The licensee shall satisfactorily complete or comply with any incomplete or non-complying aspects of its proposed casino, support facilities, and casino and gambling operations within specified time frames established by the Commission.

W. Va. Code R. § 179-4-27 Payment of the Annual License Renewal Fee

The licensed gaming facility operator shall pay the annual license renewal fee required by W.Va. Code §29-25-9(l) by electronic funds transfer or by check. In either case, the licensee’s fee payment must be received by the West Virginia Lottery on or before the anniversary date of the issuance of the license preceding the start of the license year.

W. Va. Code R. § 179-4-28 Limited Gaming Facility License Renewal

28.1. At least two months before a license expires, the Commission shall send to the licensee, by mail to the last known address, a renewal application form and notice that states:

28.1.a. The date on which the current license expires; and

28.1.b. The date by which the Commission must receive the renewal application for the renewal to be issued and mailed before the existing license expires.

28.2. Before the license expires the licensee may renew it if the licensee:

28.2.a. Continues to meet all qualification requirements for a limited gaming license;

28.2.b. Pays to the Commission the appropriate license renewal fee as determined by the Commission in its application of subsection 22.3 of this rule;

28.2.c. Submits to the Commission a renewal application in the form that the Commission requires accompanied by satisfactory evidence of compliance with any additional requirements set by the Commission for license renewal; and

28.2.d. Submits to the Commission evidence satisfactory to the Commission of the gaming facility operator’s compliance with the plan described in subsection b, section nine of the Act to create at least one hundred full time equivalent positions with a salary and benefit package commensurate with existing employees at the historic resort hotel. Notwithstanding any provision of subsection d, section nine of the Act, the failure to substantially comply with the plan, as determined by the Commission, may constitute grounds for the denial of the renewal of the license.

28.3. The Commission shall renew the license if the licensee meets the requirements of this section.

W. Va. Code R. § 179-4-29 Limited Gaming Facility Licensee's Duty to Remain Eligible, Qualified and Suitable; Duty to Disclose Material Changes

29.1. To assure compliance with the Act and this rule, the Commission shall continue its investigation throughout the period of licensure for purposes of monitoring and determining whether the licensee is eligible and suitable to hold the license.

29.2. A limited gaming facility licensee has a continuing duty to remain eligible, qualified, and suitable to hold the limited gaming license under the licensing standards, criteria, and requirements of the Act and this rule.

29.3. Issuance of the limited gaming facility license does not create a property right. Issuance of the license instead gives to the holder a revocable privilege granted by the State of West Virginia conditioned upon the holder's continuing eligibility, qualifications, and suitability to hold the license under the Act and this rule.

29.4. A limited gaming facility licensee has a continuing duty to notify promptly the Commission, in writing, without undue delay, of any material change in the information provided in its application or renewal report or reports and any other change in circumstances reasonably related to its eligibility, qualifications, and suitability to be issued, or continue holding, a limited gaming license under the licensing standards, criteria, and requirements of the Act and this rule.

W. Va. Code R. § 179-4-30 Required Notification of Anticipated or Actual Changes in Directors, Partners, and Officers of the Limited Gaming Facility Licensee and its Immediate Parent Company, if any

30.1. A person that applies for or holds a limited gaming facility license and the applicant’s immediate parent company, if any, shall notify the Commission, in writing, as soon as is practicable, of the appointment, nomination, election, resignation, incapacitation, or death of any member of, or partner in, its board of directors or partnership or of any officer or key person who is directly involved in the management or conduct of gambling operations in West Virginia.

30.2. In the event that the applicant or licensee or any controlling person of the applicant or licensee is a publicly traded corporation, then information otherwise required to be furnished by the license with respect to stockholders, directors and executive officers of the publicly traded corporation shall be limited to information concerning only those executive officers of the publicly traded corporation whose ongoing and regular responsibilities relate or are expected to relate directly to the operation or oversight of the gaming facility.

W. Va. Code R. § 179-4-31 Notification of New Financial Sources Required

31.1. An applicant or a limited gaming facility licensee, or any holding company, affiliate, or person who has control of a person that applies for or holds a limited gaming facility license shall notify the Commission, in writing, as soon as practicable, if it intends to enter into a transaction related in any way to the development and operation of the West Virginia limited gaming facility that may result in any new financial backers, investors, mortgages, bondholders, or holders of indentures, notes, or other evidences of indebtedness of the applicant or licensee.

31.2. In the event that the applicant or licensee or any controlling person of the applicant or licensee is a publicly traded corporation, then information otherwise required to be furnished by the license with respect to stockholders, directors and executive officers of the publicly traded corporation shall be limited to information concerning only those executive officers of the publicly traced corporation whose ongoing and regular responsibilities relate or are expected to relate directly to the operation or oversight of the limited gaming facility.

W. Va. Code R. § 179-4-32 Notification by Publicly Traded Applicants, Licensees, or Holding Companies Required

32.1. A publicly traded company that applies for or holds a limited gaming license or a publicly traded holding company or affiliate that has control of a limited gaming license applicant or licensee shall notify the Commission, as soon as practicable after it becomes aware that, with regard to any the publicly traded company, any person or individual has beneficially acquired any of the following:

32.1.a. The ability to control the publicly traded applicant or licensee or the publicly traded holding company or affiliate that has control of the limited gaming facility license applicant or licensee; or

32.1.b. The ability to elect one or more directors of the publicly traded applicant or licensee or of the publicly traded holding company or affiliate that has control of the limited gaming facility license applicant or licensee. To the extent known by the applicant or licensee, the required notification shall include, without limitation, the name, business address, phone number, and other personal identification information for each person.

32.2. If a publicly traded limited gaming license applicant or licensee, publicly traded holding company, or a limited gaming license applicant or licensee either files or is served with any schedule 13D, 13G, or 13F filing under the Securities Exchange Act of 1934, 15 U.S.C. § 78 et seq., copies of the filing shall be submitted to the Commission by the publicly traded limited gaming facility license applicant, licensee, or holding company within 10 business days after receipt or filing.

W. Va. Code R. § 179-4-33 Qualification of New Directors, Officers, or Other Key Persons

An individual required to be qualified or licensed under the Act or this rule by virtue of his or her position with a West Virginia limited gaming facility licensee shall not perform any duties or exercise any powers of the position related to West Virginia limited gaming facility operations until he or she has been determined to be qualified or otherwise authorized by the Commission, under the Act and this rule.

W. Va. Code R. § 179-4-34 Qualification of New Directors and Officers of Holding Company

A proposed new director, partner, officer, or key person required to be qualified or licensed under the Act or this rule by virtue of his or her position the immediate parent company who has control of a West Virginia limited gaming facility license applicant or licensee shall not perform any duties or exercise any powers of the position related to West Virginia limited gaming facility operations until he or she has been determined to be qualified or otherwise authorized by the Commission, under the Act and this rule. §§179-4-35 through 38 – Reserved.

W. Va. Code R. § 179-4-39 Notice of License Renewal

At least sixty days before a license expires, the commission shall send to the licensee, by mail to the last known address, a renewal application form and notice that states:

39.1. The date on which the current license expires;

39.2. The date by which the commission must receive the renewal application for the renewal to be issued and mailed before the existing license expires; and

39.3. The amount of the renewal fee.

W. Va. Code R. § 179-4-40 Supplier License Required to Provide Gaming-Related Devices, Supplies and/or Services

40.1. When a person will supply or provide a limited gaming facility with gaming devices, gaming supplies or services which directly affect the play and results of casino and video lottery games authorized, conducted, and played under the Act and this rule, the person shall hold a supplier's license.

40.2. The two different classes of supplier licenses that a supplier may hold are as follows:

40.2.a. Supplier license, level one, for suppliers that qualify as manufacturers under W.Va. Code §29-25-2(y); and

40.2.b. Supplier license, level two.

40.3. In determining whether a person is qualified to be licensed as a level one supplier under this rule, the Commission shall consider, without limitation, whether:

40.3.a. The person engages in the business of designing, building, constructing, assembling, or manufacturing video lottery terminals, the electronic components of the video lottery terminals, the random number generator of the video lottery terminals, or the cabinets in which they are housed;

40.3.b. The person’s product is intended for sale, lease or other assignment to the limited gaming facility; and

40.3.c. The person contracts directly with the limited gaming facility licensee for the sale, lease, or other assignment of the product to the limited gaming facility licensee.

40.4. Level one suppliers shall:

40.4.a. Manufacture terminals and associated equipment for placement in this state in accordance with the specifications and procedures specified in West Virginia Code §§ 29-22A-5 and 6;

40.4.b. Manufacture terminals and associated equipment to ensure timely delivery to the limited gaming facility licensee;

40.4.c. Maintain and provide an inventory of spare parts to assure the timely repair and continuous operation of licensed video lottery terminals intended for placement at the limited gaming facility;

40.4.d. Provide to the limited gaming facility licensee and permitted service technicians technical assistance and training in the service and repair of video lottery terminals and associated equipment so as to assure the continuous authorized operation and play of the video lottery terminals;

40.4.e. Obtain certification of compliance under the provisions of part fifteen of the Federal Communication Commission rules for all video lottery terminals placed in this state; and

40.4.f. Transport all video lottery terminals into this state in accordance with West Virginia Code § 29-22A-14.

40.5. The commission shall provide level one suppliers, or applicants applying for a level one supplier licensee, the protocol documentation data necessary to enable the respective level one supplier’s video lottery terminals to communicate with the commission central computer for transmitting auditing program information and for activation and disabling of video lottery terminals.

40.6. In determining whether a person is qualified to be licensed as a level two supplier under this rule, the Commission shall consider, without limitation, whether the person meets one or more of the following criteria:

40.6.a. The person manufactures, supplies, distributes or services equipment, items or articles specifically designed for use for the conduct of gaming as it relates to West Virginia Lottery table games, including, but not limited to, a person who manufactures, supplies, distributes, services, or repairs cards, dice, gaming chips, prize tokens, drop boxes, and credit voucher machines;

40.6.b. The person provides services directly related to the operation, security, surveillance, regulation, or management of gaming in the limited gaming facility; or

40.6.c. The person provides other goods or services determined by the Commission to be used in, or incident to, the operation of West Virginia Lottery table games and video lottery, and the Commission determines that the person must be licensed as a supplier to protect the public and enhance the credibility and integrity of gaming in West Virginia, and the person is not already required to be licensed as a level one supplier.

W. Va. Code R. § 179-4-41 Supplier's License Application

41.1. To qualify for a supplier license, an applicant shall meet the requirements of this rule. Each applicant who is an individual who is a controlling person of an applicant that is not an individual shall be of good moral character and reputation, and shall have the necessary experience and financial ability to successfully carry out the functions of a gaming facility supplier. The Commission may adopt rules establishing additional requirements for a gaming facility supplier.

41.2. An applicant for a license to supply gaming devices, equipment and supplies to a gaming facility shall demonstrate that the gaming devices, equipment and supplies that the applicant plans to sell or lease to the licensed operator of the gaming facility, conform or will conform to standards established by rules of the Commission and applicable state law.

41.3. A person applying for a supplier's license and any person required to be qualified as part of the application shall complete and submit application and disclosure forms in the manner and form prescribed by the Commission. The application and disclosure forms shall be made under oath on prescribed forms provided by the Commission and shall contain all information prescribed and required by the Commission.

41.4. Application procedures for a supplier's license are as follows:

41.4.a. The Commission shall use reasonable efforts to avoid unnecessary publicity concerning information included in the applications and other documents that are or could reasonably be considered sensitive. However, upon application, an applicant shall assume and accept, in writing, under oath, all risk of adverse publicity, notoriety, embarrassment, criticism, financial loss, or other unfavorable or harmful consequences that may occur in connection with the application process or the public disclosure of information submitted with the application.

41.4.b. Upon application, an applicant shall also expressly waive and give up, in writing, under oath, all claims for damages that may result from the application and licensing process.

41.4.c. Upon application, an applicant shall also consent, in writing, under oath, to being subject to the inspections, investigations, audits, searches, and seizures for the duration of the supplier's license for which application is made, if the license is issued.

41.4.d. Upon application, an applicant shall also authorize and consent, in writing, under oath, to release and disclose to the Commission and its authorized representatives and agents all otherwise confidential records of the applicant that the Commission requests from the applicant or from third parties, including, without limitation, tax records and financial records held by a federal, state, or local governmental agency, a credit bureau, or a financial institution while applying for, or while holding, a supplier's license under the Act and this rule.

41.4.e. The Commission shall use the information provided in the prescribed application and disclosure form as a basis for an appropriate background investigation, which the Commission shall conduct on each applicant, and for evaluating and determining the eligibility, qualifications, and suitability of the applicant to receive the license for which application is made. The Commission shall make the evaluation and determination under the licensing standards and criteria provided in the Act and rules of the Commission. A misrepresentation or omission in the application is cause for denial, suspension, restriction, or revocation of a license by the Commission.

41.4.f. A person applying for a supplier license shall provide the name, address, and telephone number of a representative to act as a liaison to the Commission and West Virginia Lottery Security background investigators, and shall facilitate, assist, and cooperate with the Commission and West Virginia Lottery Security in their conduct of background investigations under the Act and this rule.

41.4.g. The Commission shall not issue a supplier's license or renewal license unless the person applying for the license, and each person required to be qualified as part of the application for issuance or renewal of the license, has completed and filed with the Commission all required applications, license renewal reports and disclosure forms in the manner and form prescribed by the Commission, has provided all information, documentation, assurances, waivers, and releases, and has paid the fees required by the Act and this rule.

41.4.h. An applicant shall file all required application forms before the expiration of deadlines established and published by the Commission.

41.4.i. An applicant is under a continuing duty to disclose any material changes in the information or documentation provided in or with the application, renewal, and disclosure forms submitted to the Commission.

41.4.j. A person applying for a supplier license shall request amendment of its application when it knows, or should have known, that there has been a change in any of the following:

41.4.j.1. The applicant's key persons or the key persons of any holding company or affiliate that has control of the applicant;

41.4.j.2. The type of business organization or entity;

41.4.j.3. A holding company or affiliate;

41.4.j.4. A change of more than a 5% in the capitalization or a 1% change in the debt-to-equity ratio;

41.4.j.5. The investors or debt holders, or both; or

41.4.j.6. A source of funds.

41.4.k. A publicly traded corporation shall be considered to have complied with this rule if it has complied with the reporting requirements provided by section twelve of the Securities and Exchange Act of 1934, as amended (15 U.S.C. §78).

41.4.l. A supplier's license application may be withdrawn upon written notice to the Commission before Commission action on the application if all background investigation costs of the Commission have been paid in full by the person applying for a supplier license.

41.4.m. The Commission may allow information, documents, or other materials submitted by an applicant in a withdrawn application to be incorporated by reference into a subsequent application.

41.5. A supplier's license application shall require that the person applying for the license and a person required to be qualified as part of the application submit all of the following information and documentation on forms prescribed by the Commission:

41.5.a. The name of the person applying for a supplier license and any holding company or affiliate that has control of the applicant and the person's, company's, or affiliate's respective business address, phone number, federal identification number, and West Virginia taxpayer identification number;

41.5.b. To the extent known and identified by the applicant, the identity and home and business addresses and phone numbers of the key persons of the person applying for a supplier license, of a holding company or affiliate that has control of the applicant, and of any other person required to be qualified as part of the applicant's application under the Act and this rule; and

41.5.c. Applications and disclosure forms completed by the person applying for a supplier license and by the key persons of the applicant, a holding company or affiliate that has control of the applicant, and any other identified person required to be qualified as part of that applicant's application. The applications and disclosure forms shall contain all information and documentation that the Commission requires to determine the eligibility, qualifications, and suitability of each person under section thirteen of the Act, including, without limitation, all of the following information and documentation for each person:

41.5.c.1. Copies of all filings which are required by the Securities and Exchange Commission and which are issued and filed by the applicant, a holding company, or an affiliate that has control of the applicant during the preceding fiscal year;

41.5.c.2. All of the following properly executed documents in the manner and form prescribed by the Commission:

41.5.c.2.A. Consents to inspections;

41.5.c.2.B. Consents to warrantless searches and seizures;

41.5.c.2.C. Waivers of liability for disclosures of information; and

41.5.c.2.D. Consents to examination of confidential accounts and records;

41.5.c.3. Photographs and fingerprints of each individual person required to be qualified as part of the application. The photographs and fingerprints shall be taken at a time and place designated by the Director. Photos that have been taken within 90 days of submitting an application may be sent with the applicable disclosure form to fulfill the photo requirement;

41.5.c.4. All of the following information for each individual person required to be qualified as part of the application:

41.5.c.4.A. Name;

41.5.c.4.B. Aliases and nicknames;

41.5.c.4.C. Date of birth;

41.5.c.4.D. Physical description;

41.5.c.4.E. Citizenship;

41.5.c.4.F. Marital history and family data; and

41.5.c.4.G. Home and business addresses and phone numbers;

41.5.c.5. Personal, business, and financial information relevant to the moral character, reputation, integrity, business probity, experience and ability, and financial experience, stability, and responsibility of the person applying for a supplier license and each person required to be qualified as part of the application;

41.5.c.6. A listing of the jurisdictions in which the person applying for a supplier license and each person required to be qualified as part of that application holds or has held a supplier license or other gaming-related license;

41.5.c.7. Information regarding any previous civil litigation that involves the business practices of, or criminal arrests, charges, or dispositions involving, the person applying for a supplier license and each person required to be qualified as part of the application;

41.5.c.8. Information regarding the incorporation, partnership, or other business structure and organization of the person applying for the supplier license and the applicant's key persons and any holding company or affiliate that has control of the applicant;

41.5.c.9. Information regarding the equipment, goods, and services that the person applying for a supplier license will provide or supply to the limited gaming licensee or limited gaming license applicants, including, without limitation, information regarding inventory, prices, and the knowledge, skill, education, training, and experience of the applicant and the managerial employees and sales and service representatives who will represent the applicant and conduct its business in West Virginia;

41.5.c.10. Information regarding any previous bankruptcy proceedings filed by or against the person applying for a supplier license or any other person required to be qualified as part of the application;

41.5.c.11. Information regarding any previous formal legal proceedings to adjust, deter, suspend, or otherwise work out payment of any debt owed by the person applying for a supplier license or any other person required to be qualified as part of the application;

41.5.c.12. Information regarding any present or previous tax delinquency or complaints, notices, or liens filed against the person applying for a supplier license, or any other person required to be qualified as part of the application, for nonpayment of local, state, or federal taxes and fees;

41.5.c.13. Information regarding any previous violation of, or noncompliance with, supplier licensing or regulatory requirements in West Virginia or any other jurisdiction by the person applying for a supplier license or any other person required to be qualified as part of the application;

41.5.c.14. Information regarding any previous violation of, or noncompliance with, any other licensing and regulatory requirements involving other regulated gaming or nongaming-related activity in West Virginia or any other jurisdiction by the person applying for a supplier license or any other person required to be qualified as part of the application;

41.5.c.15. Information regarding whether the person applying for a supplier license or any other person required to be qualified as part of the application has ever held a supplier license or other gaming-related license that was restricted, suspended, or revoked in West Virginia or any other jurisdiction;

41.5.c.16. Other information which is required by the Commission regarding the person applying for a supplier license and any other person required to be qualified as part of the application and which is considered necessary by the Commission to protect the public and enhance the credibility and integrity of gaming in West Virginia and to properly evaluate the applicant's eligibility, qualifications, and suitability to be licensed as a supplier under the Act and this rule.

W. Va. Code R. § 179-4-42 Supplier’s License Issuance; Standards and Criteria

42.1. A person that is required to be licensed as a supplier under the Act and this rule shall, before issuance of a supplier's license, produce information, documentation, and assurances in its application to establish all of the following by clear and convincing evidence:

42.1.a. The applicant and all other persons required to be qualified as part of the application are eligible, qualified, and suitable for licensure under the licensing standards, criteria, and requirements set forth in section eleven of the Act and this rule;

42.1.b. The financial stability and responsibility of the applicant;

42.1.c. The applicant and all other persons required to be qualified as part of the application demonstrate a level of skill, experience, knowledge, and ability necessary to supply the equipment, goods, or services that the applicant seeks permission to provide to the limited gaming facility licensee and license applicants in compliance with the Act and this rule;

42.1.d. The applicant and all other persons required to be qualified as part of the application have not been convicted of a misdemeanor related to theft, bribery, gambling, or involving moral turpitude, or any felony;

42.1.e. The applicant and all other persons required to be qualified as part of the application do not appear on the exclusion list of any jurisdiction;

42.1.f. The applicant and all other persons required to be qualified as part of the application are in substantial compliance with all local, state, and federal tax laws; and

42.1.g. The applicant has adequate liability and casualty insurance.

W. Va. Code R. § 179-4-43 Supplier License Application; Commission Action

The Commission shall take the following action on an application for a supplier license:

43.1. After the completion of the background investigation, the Director shall report to the Commission, in writing, regarding the staff's background investigation of the applicant. Upon receipt of the Director's report, the Commission shall grant or deny the application.

43.2. If the Commission grants the application, it shall direct the Director to issue a supplier license.

43.3. If the Commission denies the application, then it shall instruct the Director to issue the applicant a notice of denial by certified mail.

43.4. If the applicant fails to request a hearing by certified mail within ten days of the applicant’s receipt of the notice of denial to contest the denial, the notice of denial becomes the final order of the Commission.

W. Va. Code R. § 179-4-44 Denied License; Reapplication

44.1. A person whose application for a supplier license has been denied may not reapply for a supplier license for a period of 1 year from the date on which the Commission voted to deny the application unless the Commission allows reapplication at an earlier date.

44.2. A person whose application for a supplier license was denied may seek leave of the Commission to reapply by addressing the request to the Commission. The Commission may require the applicant to present oral or written argument outlining why an exception should be made.

W. Va. Code R. § 179-4-45 Annual License Renewal Fee; Report

45.1. Each year, a licensed gaming facility supplier shall pay to the Commission an annual license renewal fee of one hundred dollars.

45.2. Prior to annual renewal, the licensee shall file a written report with the Commission containing the following information:

45.2.a. If the licensee is a publicly traded corporation regulated by the Securities and Exchange Commission, a current list, to the extent known by the licensee at the time of submitting the report, of all key persons, affiliates and affiliated companies, the key persons of any person that has control of the licensee, and the identity of all other persons required to be qualified as part of the licensee's request for renewal of the license under the Act and this rule;

45.2.b. If the licensee is not a publicly traded corporation regulated by the Securities and Exchange Commission, a current list, to the extent known by the licensee at the time of submitting the report, of all key persons, affiliates and affiliated companies of the licensee, the key persons of any persons that have control of the licensee, and all other persons, other than publicly traded corporations and their 5% or less shareholders, that have more than a 1% direct, indirect, or attributed pecuniary or equity interest in the licensee;

45.2.c. To the extent that information has changed or has not been previously reported to the Commission, updated personal, business, and financial information, required by the Commission, related to the eligibility, suitability, and general fitness of the licensee under the Act and this rule to continue to hold the license for which renewal is requested. The information shall include, without limitation, changes regarding the identification, integrity, moral character, reputation, and relevant business experience, ability and probity, and financial experience, ability, and responsibility of the licensee and each of the persons required to be qualified for renewal of the license under the Act and this rule;

45.2.d. A statement under oath by the licensee's managing officer or director that the information provided in the licensee's annual renewal report is current, complete, true, and accurate, and that the licensee has fulfilled its obligation under the Act and this rule to notify the Commission of any change in information provided in its original license application and subsequent annual license renewal reports previously filed with the Commission;

45.2.e. Financial statements and reports regarding the current capital structure and financial condition of the licensee, prepared by the licensee in the manner and form prescribed by the Commission, indicating the licensee's current financial ability to conduct and maintain its supplier business in a financially responsible manner, in accordance with the requirements of the Act and this rule, and satisfy its financial obligations in accordance with financing agreements and other contractual obligations; and

45.2.f. Other information and documentation that the Commission may require to determine the licensee's eligibility, suitability, and qualification to have its license renewed under the licensing standards of the Act and this rule.

W. Va. Code R. § 179-4-46 Renewal of Supplier License

46.1. A supplier license may be renewed by the Commission if all of the following requirements are met:

46.1.a. The licensee continues to be in good standing with the Commission; and

46.1.b. The licensee submits the $100.00 license renewal fee, in the manner and form required by the Commission, not less than ten days before expiration of the license.

46.2. The Commission may refuse to renew a supplier license and issue a notice of non-renewal if the licensee fails to file its annual renewal report in a timely manner, or if the Director reports in writing to the Commission, after reviewing the licensee's annual renewal report, that the license should not be renewed because the licensee's annual renewal report does not provide the information and documentation prescribed and required by the Commission to establish and determine that the licensee is eligible, qualified, or suitable to continue to be licensed and that the licensee is prepared, ready, and able to continue providing goods and services to the limited gaming facility in compliance with the Act and this rule.

46.3. A supplier licensee who is served with a notice of non-renewal under this rule may request a hearing under this rule.

46.4. The notice of non-renewal does not constitute a finding by the Commission that the supplier licensee is ineligible, unqualified, or unsuitable for licensure or is otherwise in violation of the licensing requirements of the Act or rules of the Commission, unless the licensee fails to request a hearing under this rule in a timely manner. In this case, “timely” means “within ten calendar days.”

46.5. If the licensee does not request a hearing in a timely manner, then the notice of non-renewal becomes the final order of the Commission.

W. Va. Code R. § 179-4-47 Occupational License Requirement; License Classes; Application; Exemptions

47.1. A natural person employed by the West Virginia limited gaming facility whose work duties are related to, or involved in, the gambling operation, or are performed in a restricted area of the casino or in the gaming area of the casino at the facility, shall hold an occupational license of the level required for the natural person’s position before the individual may perform any of the duties of his or her position.

47.2. This rule applies to both full-time and part-time employees.

47.3. The two different classes of occupational licenses that an employee may hold are as follows:

47.3.a. Occupational license, level one, the highest level of occupational license; and

47.3.b. Occupational license, level two.

47.4. An occupational licensee may perform any work duties or activities included within the level of occupational license held by the licensee for which they are qualified and included in any lower level of occupational license.

47.5. The Commission shall not process an application for an occupational license unless the application includes a written statement from an applicant for or the limited gaming facility that the applicant has been or will be hired upon receiving the appropriate occupational license for which application is made.

47.6. The Commission may exempt any person from the occupational licensing requirements of this rule if the Commission determines that the person is regulated by another governmental agency or that licensing is not considered necessary to protect the public interest or accomplish the policies and purposes of the Act.

W. Va. Code R. § 179-4-48 Occupational License, Level One

A natural person who will be employed by the limited gaming facility in a position that includes any of the following responsibilities or authority, regardless of job title, shall hold, before employment, a current and valid level one occupational license or a valid temporary level one occupational license issued under this rule:

48.1. The supervision of specific areas or departments related to, or involved in, the gambling operation, including, without limitation, a person who does any of the following:

48.1.a. Functions as a casino shift manager;

48.1.b. Functions as a pit manager;

48.1.c. Functions as a poker shift manager;

48.1.d. Functions as a slot shift manager;

48.1.e. Supervises the repair and maintenance of slot machines and bill changers;

48.1.f. Supervises surveillance investigations or the operation of the surveillance department during a shift;

48.1.g. Supervises security investigations or the operation of the security department during a shift;

48.1.h. Functions as a cage manager;

48.1.i. Supervises the operation of the cashiers' cage, table games cage, or slot machine cage during a shift;

48.1.j. Functions as table games operations manager;

48.1.k. Functions as casino manager;

48.1.l. Functions as table games financial controllers;

48.1.m. Functions as personnel and human resources activities manager for table games;

48.1.n. Supervises the hard count room or soft count room; or

48.1.o. Supervises the patron check collection unit.

48.2. The authority to develop or administer policy or long-range plans or to make discretionary decisions regulating gambling operations, including, without limitation, a person who does any of the following:

48.2.a. Functions as a director, officer, or comparable noncorporate employee of the limited gaming facility licensee or of a supplier licensee;

48.2.b. Functions as a casino manager;

48.2.c. Functions as a video lottery department manager;

48.2.d. Functions as a director of surveillance;

48.2.e. Functions as a director of security;

48.2.f. Functions as a controller;

48.2.g. Functions as a credit manager;

48.2.h. Functions as an audit department executive;

48.2.i. Functions as a management information system department manager;

48.2.j. Manages a marketing department;

48.2.k. Functions as an assistant manager of a casino department;

48.2.l. Manages casino administrative operations;

48.2.m. Has authority to authorize the issuance of patron credit or cash complimentaries in the amount of $10,000.00 or more;

48.2.n. Functions as an audit manager; or

48.2.o. Supervises a person who is required to hold level one or level two occupational license; or

48.3. The authority to develop or administer policy or long-range plans or to make discretionary decisions regulating the management of the limited gaming facility and other casino operations including, without limitation, a person who does the following:

48.3.a. Manages the operation of a hotel; or

48.3.b. Manages the personnel and human resource activities of the limited gaming facility.

W. Va. Code R. § 179-4-49 Occupational License, Level Two

49.1. A natural person who will be employed by the limited gaming facility licensee whose employment duties predominantly involve the maintenance, servicing, repair, or operation of gambling games, gaming, gaming machines, devices or equipment, or assets associated with the limited gaming facility licensee, or regularly requires work in a restricted casino area shall hold, before employment, a current and valid occupational license, level two, unless required to hold an occupational license, level one, including, without limitation, a person who is or does any of the following:

49.1.a. Functions as a dealer;

49.1.b. Functions as a box person;

49.1.c. Functions as a floor attendant;

49.1.d. Performs under the supervision of an audit department manager, the duties and responsibilities of the internal audit department;

49.1.e. Performs under the supervision of a controller, the duties and responsibilities of the casino accounting department;

49.1.f. Has access to active accounting documents related to casino gaming activity;

49.1.g. Conducts surveillance investigations and operations;

49.1.h. Assists in the operation of slot machines and bill changers, including, without limitation, a person who participates in manual jackpot payouts and fills payout reserve containers;

49.1.i. Identifies persons or groups of patrons to receive complimentaries based on actual patron play, authorizes complimentaries, or determines the amount of the complimentaries;

49.1.j. Analyzes casino operations data and makes recommendations to managerial employees relating to, without limitation, all of the following:

49.1.j.1. Casino marketing;

49.1.j.2. Complimentaries;

49.1.j.3. Junkets;

49.1.j.4. Gaming;

49.1.j.5. Special events;

49.1.j.6. Promotions; and

49.1.j.7. Player ratings;

49.1.k. Enters data in gaming-related computer systems or develops, maintains, installs, or operates gaming-related computer software systems;

49.1.l. Collects and records patron checks and personal checks that are dishonored and returned by a bank;

49.1.m. Develops marketing programs to promote casino gaming including, without limitation, coupon redemption and other complimentary distribution programs;

49.1.n. Distributes, reconsiders, accounts for, or inventories coupons that are considered in the calculation of gross revenue;

49.1.o. Processes or maintains information on credit applications or the redemption of counter checks;

49.1.p. Processes coins, currency, gaming chips, gaming plaques, slot tokens or cash equivalents;

49.1.q. Repairs or maintains the closed circuit television system equipment that is required by this rule;

49.1.r. Is being trained to become a limited gaming facility employee;

49.1.s. Provides physical security in the casino;

49.1.t. Controls and maintains the slot machine inventory, including replacement parts, equipment and tools used to maintain slot machines;

49.1.u. Performs as the secretary to the supervisor of the surveillance department, internal audit department, casino accounting department or credit department;

49.1.v. Repairs gaming equipment other than video lottery terminals;

49.1.w. Performs responsibilities associated with the installation, maintenance or operation of computer hardware for casino computer systems;

49.1.x. Is employed as a video lottery service technician;

49.1.y. Performs video lottery ticket redemption services; or

49.1.z. Is an employee of the casino gambling operation whom the Commission considers necessary to be licensed to ensure compliance with the Act and this rule and to protect the public and ensure the credibility and integrity of gaming in the state.

W. Va. Code R. § 179-4-50 “Person” Applying for Occupational License

For the purposes of applying for or holding an occupational license, a “person” shall mean a natural person.

W. Va. Code R. § 179-4-51 Applications for Occupational Licenses

51.1. An applicant for an occupational license, level one or level two, shall complete and submit an application and personal disclosure form to the Commission. The applicant shall submit the application and disclosure form in the manner and form prescribed by the Commission at Lottery Headquarters or any other location specified by the Commission. The application and personal disclosure forms prescribed by the Commission may require the applicant to provide any of the following information and documents with respect to the applicant:

51.1.a. The applicant’s name, including any aliases or nicknames;

51.1.b. The applicant’s date of birth and copy of his or her birth certificate;

51.1.c. The applicant’s physical description;

51.1.d. The applicant’s current address and residence history;

51.1.e. Marital history, dependents, and other family data;

51.1.f. The nature of the applicant's position with or interest in the limited gaming facility;

51.1.g. The applicant’s current home and business or work telephone numbers;

51.1.h. The applicant’s employment history of the applicant;

51.1.i. Record of military service;

51.1.j. Government positions and offices presently and previously held, and offices, trusteeships, directorships, or fiduciary positions presently or previously held with any business entity;

51.1.k. Licenses and other government permits or approvals presently and previously held by the applicant;

51.1.l. A denial, suspension, or revocation by a government agency of any license, permit, or certification held by, or applied for by, the applicant;

51.1.m. The convictions of the applicant for a misdemeanor related to theft, bribery, gambling, or involving moral turpitude, or any felony;

51.1.n. The information specified and required by the Act, including a photograph and the applicant’s fingerprints taken at a time or place, or both, specified by the Commission;

51.1.o. Financial information for the applicant, including, but not limited to:

51.1.o.1. A statement of assets and liabilities and net worth;

51.1.o.2. Bank accounts;

51.1.o.3. Loans;

51.1.o.4. Notes;

51.1.o.5. Real estate interests;

51.1.o.6. Mortgages and liens;

51.1.o.7. Life insurance;

51.1.o.8. Pension funds;

51.1.o.9. Real estate and income tax payables;

51.1.o.10. Credit score;

51.1.o.11. Vehicles; and

51.1.o.12. Other assets;

51.1.p. Judgments and petitions for bankruptcies or insolvency concerning the applicant or any business entity in which the applicant held a 5% or more interest, other than a publicly traded company, or in which the applicant services as an officer or director;

51.1.q. A garnishment or attachment of wages, charging order or voluntary wage execution, or other formal proceedings to adjust, defer, suspend, or otherwise work out the payment of a debt of the applicant;

51.1.r. Other confidential financial and business information;

51.1.s. The applicant’s education and training;

51.1.t. All required waivers and affidavits prescribed by the Commission; and

51.1.u. Other information or documents that the Commission considers necessary and relevant to determine the applicant's identity, eligibility, qualifications, and suitability for licensure under the Act or this rule.

51.2. In addition to completing the application and personal disclosure forms required by subsection 51.1 of this rule, Occupational Level One and Level Two licensees working as service technicians or floor attendants shall:

51.2.a. Maintain all skills necessary for the timely repair and service of licensed video lottery terminals and associated equipment so as to ensure the continued, approved operation of those terminals;

51.2.b. Attend all commission mandated meetings, seminars and training sessions concerning the repair and maintenance of licensed video lottery terminals and associated equipment;

51.2.c. Promptly notify the commission of any electronic or mechanical video lottery terminal malfunctions; and

51.2.d. Provide to the Lottery, manufacturer training certificates enabling the licensee or license applicant to perform tasks on each brand of video lottery terminal operating at the gaming facility.

51.3. If the information provided by the applicant pursuant to the Act or this section of the Rules indicates that the applicant does not meet the Commission’s standards for holding an occupational license, then the Commission may require the applicant to take reasonable action in order to qualify for an occupational license. The reasonable action may include, but is not limited to, requiring the applicant to address outstanding judgments, liens, and collections.

W. Va. Code R. § 179-4-52 Occupational Licensing Procedures

52.1. An applicant for an occupational license shall submit, together with the required application fee, a completed application that has been endorsed by an authorized representative of the limited gaming facility by whom the applicant will be employed if the applicant is licensed.

52.2. After the Commission has received the completed occupational license application, appropriate application fee, photograph, and fingerprints, the Commission shall review the applicant's application and conduct a criminal history check on the applicant.

52.3. If a preliminary review of the application and the criminal history check does not uncover or indicate any apparent deficiencies in the application or other circumstances that may require denial of the application under the licensing standards of the Act and this rule, then the Director may issue a temporary occupational license to the applicant. The temporary occupational license authorizes the applicant to perform the employment duties for which the license is sought, pending Commission action on the applicant's license application. A temporary license issued under this rule is valid for not more than 90 days, but may be renewed upon expiration by the Director if the criteria in this subsection are satisfied.

52.4. The Director shall issue a temporary identification badge to the temporary occupational licensee. The color of the temporary identification badge shall be different from the occupational license identification badge that is given to an occupational licensee upon issuance of a full occupational license. The temporary identification badge shall contain and display information as prescribed by the Commission.

52.5. Temporary occupational licensees shall wear and clearly display a legible name tag and shall have their temporary identification badge in their possession at all times during work hours at the limited gaming facility.

52.6. A person shall pay a fee of $10.00 to the Commission for any necessary replacement of a temporary identification badge.

52.7. A temporary identification badge shall not be transferred and shall be immediately returned to the Commission if the temporary licensee resigns or if his or her employment at the limited gaming facility is terminated.

52.8. If, upon further investigation and review of the temporary licensee's application, the Director determines that the applicant is not eligible or suitable for licensure under the Act and this rule, then the Director may, upon written notice to the licensee and the licensee's employer, revoke the temporary license and order the immediate return of the temporary identification badge to the Commission.

52.9. If a temporary occupational license expires or is revoked, then the licensee shall not continue his or her employment and shall not perform the work duties for which the license is required.

52.10. If an applicant's temporary license expires or is revoked, the Director shall immediately forward the temporary licensee's application to the Commission for action together with a written report to the Commission recommending granting or denying the application. The Director's report shall state the reasons for his or her recommendation for Commission action on the application.

52.11. Before issuance of an occupational license, an occupational license applicant shall have the burden of producing the information, documentation, and assurances in his or her application to establish, by clear and convincing evidence, that the applicant is eligible, qualified, and suitable to receive the occupational license for which application is made, under the licensing standards in the Act and this rule.

52.12. The applicant shall demonstrate to the Commission a level of skill, knowledge, and/or experience reasonably necessary to perform the job duties required for the occupational license for which application is made. However, an applicant may still be employed by the limited gaming facility to perform the duties if the limited gaming facility agrees to provide necessary training to the applicant.

52.13. An applicant who has knowingly made a false statement of a material fact to the Commission, who has been suspended from operating a gambling game, gaming device or gambling operation in another jurisdiction by a board or other governmental authority of that jurisdiction having responsibility for the regulation of gambling or gaming activities, who has been convicted of any felony, or a misdemeanor involving an offense of moral turpitude, gambling, theft, bribery, or fraud, or has otherwise demonstrated, either by a police record or other satisfactory evidence, a lack of respect for law and order, or who has failed to meet any monetary obligation in connection with a gaming facility or any other form of gaming is not eligible, qualified, or suitable to be issued an occupational license.

52.14. Unless waived by the Commission, an applicant whose name appears on the exclusion list of any jurisdiction, is not eligible, qualified, or suitable to be issued an occupational license

52.15. An applicant shall also have good moral character, reputation, and integrity, and comply with any other licensing standard that the Commission considers necessary to ensure compliance with the Act, this rule, and the Commission’s minimum internal control standards, and protect the public and the credibility and integrity of gaming in the state.

W. Va. Code R. § 179-4-53 Commission Action on Occupational License Applications

53.1. After the completion of the background investigation, the Director shall report to the Commission, in writing, regarding the staff's background investigation of the occupational license applicant. Upon receipt of the Director's report, the Commission shall grant or deny the application.

53.2. If the Commission grants the application, it shall direct the Director to issue an occupational license.

53.3. If the Commission denies the application, then it shall direct the Director to issue the applicant a notice of denial by certified mail.

53.4. A notice of denial does not constitute a finding that the applicant is ineligible, unqualified, or unsuitable to be licensed unless the applicant fails to request a hearing in a timely manner under this rule to contest the denial. If the applicant fails to request a hearing in a timely manner, then the notice of denial becomes the final order of the Commission. For purposes of this section, “timely” means “within ten calendar days.”

W. Va. Code R. § 179-4-54 Requirements for Occupational License Identification Badge

54.1. Upon a finding of suitability for licensure and payment of the appropriate license fee, the Commission shall issue an occupational license identification badge for the applicant. The license identification badge shall be in the form prescribed by the Commission.

54.2. The occupational license shall contain all of the following information:

54.2.a. The occupational licensee's first name, last name, and job title;

54.2.b. The occupational license number assigned by the Commission;

54.2.c. The level of the occupational license.;

54.2.d. The signature of the Director of the West Virginia Lottery;

54.2.e. The date that the occupational license was issued and the date that the occupational license will expire; and

54.2.f. Any other information prescribed by the Commission.

54.3. The limited gaming facility shall receive and maintain copies of the occupational license certificates for the respective occupational licensees it employs.

54.4. The occupational license shall remain the property of the Commission at all times. The occupational license may be revoked, suspended, canceled, or restricted by the Commission. The Commission may refuse to renew the license when it is reviewed under this rule.

54.5. Neither the occupational license nor the licensee identification badge shall be transferred to another person. If the occupational licensee resigns or the occupational licensee's employment is terminated, the occupational licensee shall return the license identification badge to the Commission.

54.6. The licensee identification badge shall be a card of a color designated by the Commission and meet the specifications of this rule. The colors of the licensee identification badges shall be different from the color of the temporary identification badge.

54.7. An occupational licensee shall wear and clearly display a legible name tag that is issued by the limited gaming facility licensee and approved by the Commission. Additionally, an occupational licensee shall keep the state license identification badge in his or her possession while on duty as well as while off duty when in the casino gaming area of the limited gaming facility.

54.8. An occupational licensee shall pay to the Commission a fee of $10.00 for any necessary replacement of a licensee identification badge or the occupational license certificate. The Commission shall assess the fee each time an occupational licensee obtains a replacement identification badge or occupational license certificate.

54.9. The occupational licensee identification badge shall be a card of the appropriate color that meets all of the following requirements:

54.9.a. The front side of the occupational licensee’s identification badge shall:

54.9.a.1. Be a card bearing the name and logo of the West Virginia Lottery;

54.9.a.2. Display the licensee’s photograph;

54.9.a.3. Display the licensee’s first name and job title;

54.9.a.4. Display the occupational license number assigned by the Commission;

54.9.a.5. Display the level of the occupational license;

54.9.a.6. Display the signature of the Director of the West Virginia Lottery; and

54.9.a.7. Display the date the license identification badge and occupational license were issued and the date that the identification badge and occupational license will expire.

54.9.b. The back side of the occupational license identification badge shall:

54.9.b.1. Display the licensee’s signature and the applicant's first and last name;

54.9.b.2. Display the licensee’s date of birth;

54.9.b.3. Display other information considered necessary by the Commission to identify the occupational licensee, the casino of employment, the appropriate level of occupational license, and any conditions or restrictions that have been placed on the occupational license;

54.9.c. The Commission shall ensure that occupational license identification badges are constructed so that the badges can be easily affixed to, and displayed clearly on, an occupational licensee's clothing.

54.9.d. The occupational license identification badges remain the property of the Commission at all times.

W. Va. Code R. § 179-4-55 Reapplication for Denied License

55.1. A person whose application for an occupational license has been denied may not, without permission of the Commission, reapply for an occupational license of the same or higher level for a period of one year from the date on which the Commission voted to deny the application.

55.2. A person whose application for an occupational license was denied may seek leave of the Commission to reapply within the one year period by addressing the request to the Commission through the Director. The Commission may require the applicant to present oral or written argument to the Commission outlining why an exception should be made.

W. Va. Code R. § 179-4-56 Annual Renewal Fees; Renewal of Occupational Licenses

56.1. On each anniversary of the issuance of an occupational license, the licensee, or the limited gaming facility in the licensee’s behalf, shall pay to the West Virginia Lottery an annual renewal fee.

56.2. An occupational licensee shall request renewal of the license, on a form prescribed by the Commission, not less than 30 days before the expiration of the occupational license. The occupational licensee shall complete the form and provide the Commission with any information or documents that the Commission considers necessary to confirm the licensee's identity and determine the licensee's continued eligibility, suitability, and qualification to have his or her occupational license renewed under licensing standards set forth in the Act and this rule. The license renewal request form may include information related to any or all of the following about the licensee’s:

56.2.a. Integrity;

56.2.b. Reputation;

56.2.c. Moral character;

56.2.d. Employment history;

56.2.e. Criminal record;

56.2.f. Past history of licensure;

56.2.g. Administrative law abidance;

56.2.h. Civil litigation; and

56.2.i. Financial responsibility.

56.3. A licensee shall submit the form requesting renewal of an occupational license with the annual license fee. The Commission may perform a background investigation on any occupational licensee seeking renewal of any license.

56.4. The Commission may refuse to renew an occupational license if the occupational licensee no longer meets the requirements set forth in the Act, this rule, or the Commission’s minimum internal control standards. The requirements include maintaining the standard for licensure that is set forth under section fifty-one of this rule. If the occupational licensee does not meet these requirements, then the Commission may deny renewal or it may issue a temporary license pursuant to section fifty-two-three of this rule, pending the applicant’s reasonable efforts to meet the minimum qualifications for an occupational license.

56.5. The Director shall investigate and review the licensee's renewal application and shall report in writing to the Commission whether the licensee is eligible, qualified, and suitable to have his or her occupational license renewed.

56.6. Upon receipt and review of the Director's report, the Commission shall decide whether to renew the occupational license.

56.7. If the Commission decides to renew the license, then it shall direct the Director to issue a new license to the applicant.

56.8. If the Commission decides not to renew a license, then it shall direct the Director to issue a notice of denial to the applicant by certified mail.

56.9. A list of occupational license applicants whose licenses were issued, renewed or denied shall be sent to the limited gaming facility.

56.10. An occupational licensee who is served with a notice of denial under this rule may request a hearing under this rule and the West Virginia Lottery’s Procedural Rule 179 CSR 2.

56.11. The notice of denial shall not constitute a finding by the Commission that the occupational licensee is ineligible, unqualified, or unsuitable for licensure or is otherwise in violation of the licensing requirements of the Act or rules of the Commission, unless the licensee fails to request a hearing within ten days of its receipt of the notice of denial.

56.12. If the licensee does not request a hearing in a timely manner, then the notice of denial becomes the final order of the Commission.

56.13. All occupational licensees must obtain a new license as of July first of each year. Due to the volume of re-licensing during the final three months of each fiscal year, any applicant for an occupational permit on and after April 1 of each year will be licensed until June 30th of the following year (example: April 20, 2003 thru June 30, 2004).

W. Va. Code R. § 179-4-57 License Required to Provide Management Services; Standards and Criteria; Commission Action; Denied License; Reapplication; Renewal

57.1. When a person that is not a natural person will provide the limited gaming facility licensee with substantial management services, such as managing the day-to-day operation of authorized games of chance or all casino games, the person shall hold a management services provider license.

57.2. To qualify for a license, the applicant shall meet the requirements of this rule. Each controlling natural person of an applicant shall be of good moral character and reputation, and shall have the necessary experience and financial ability to successfully carry out the functions of a management services provider.

57.3. A person applying for a management service provider’s license and a person required to be qualified as part of the application shall complete and submit the application and disclosure forms in the manner and form prescribed by the Commission. The application and disclosure forms shall be made under oath on prescribed forms provided by the Commission.

57.4. The application procedures for a management services provider’s license are as follows:

57.4.a. Upon application, an applicant shall assume and accept, in writing, under oath, all risk of adverse publicity, notoriety, embarrassment, criticism, financial loss, or other unfavorable or harmful consequences that may occur in connection with the application process or the public disclosure of information submitted with the application;

57.4.b. Upon application, an applicant shall also expressly waive and give up, in writing, under oath, all claims for damages that may result from the application and licensing process;

57.4.c. Upon application, an applicant shall also consent, in writing, under oath, to being subject to inspections, investigations, audits, searches, and seizures for the duration of the management service provider’s license for which application is made, if the license is issued;

57.4.d. Upon application, an applicant shall also authorize and consent, in writing, under oath, to release and disclose to the Commission and its authorized representatives and agents all otherwise confidential records of the applicant that the Commission requests from the applicant or from third parties, including, without limitation, tax records and financial records held by a federal, state, or local governmental agency, a credit bureau, or a financial institution while applying for, or while holding, a management services provider’s license under the Act and this rule;

57.4.e. The Commission shall use the information provided in the prescribed application and disclosure form as a basis for an appropriate background investigation for evaluating and determining the eligibility, qualifications, and suitability of the applicant to receive the license for which application is made. The Commission shall make the evaluation and determination under the licensing standards and criteria provided in the Act and rules of the Commission. A misrepresentation or omission in the application is cause for denial, suspension, restriction, or revocation of a license by the Commission;

57.4.f. A person applying for a management services provider’s license shall provide the name, address, and telephone number of a representative to act as a liaison to the Commission’s background investigators, and shall facilitate, assist, and cooperate with the Commission in its conduct of background investigations under the Act and this rule;

57.4.g. The Commission shall not issue a management services provider’s license or renewal license unless the person applying for the license, and each person required to be qualified as part of the application for issuance or renewal of the license, has completed and filed with the Commission all required applications, license renewal reports and disclosure forms in the manner and form prescribed by the Commission, has provided all information, documentation, assurances, waivers, and releases, and has paid the fees required by the Act and this rule;

57.4.h. An applicant shall file all required application forms before the expiration of deadlines established and published by the Commission;

57.4.i. An applicant is under a continuing duty to disclose any material changes in the information or documentation provided in or with the application, renewal, and disclosure forms submitted to the Commission;

57.4.j. A person applying for a management services provider’s license shall request amendment of its application when it knows, or should have known, that there has been a change in any of the following:

57.4.j.1. The applicant's key persons or the key persons of any holding company or affiliate that has control of the applicant;

57.4.j.2. The type of business organization or entity;

57.4.j.3. A holding company or affiliate;

57.4.j.4. The investors or debt holders, or both; or

57.4.j.5. A source of funds.

57.4.k. A publicly traded corporation shall be considered to have complied with this rule if it has complied with the reporting requirements provided by section twelve of the Securities and Exchange Act of 1934, as amended (15 U.S.C. §78);

57.4.l. A management services provider’s license application may be withdrawn upon written notice to the Commission before Commission action on the application if all background investigation costs of the Commission have been paid in full by the person applying for a management services provider’s license; and

57.4.m. The Commission may allow information, documents, or other materials submitted by an applicant in a withdrawn application to be incorporated by reference into a subsequent application;

57.5. A management services provider’s license application shall require that the person applying for the license and a person required to qualify as part of the application submit all of the following information and documentation on forms prescribed by the Commission:

57.5.a. The name of the person applying for a management services provider’s license and any holding company or affiliate that has control of the applicant and the person's, company's, or affiliate's respective business address, phone number, federal identification number, and West Virginia taxpayer identification number;

57.5.b. To the extent known and identified by the applicant, the identity and home and business addresses and phone numbers of the key persons of the person applying for a management services provider’s license, of a holding company or affiliate that has control of the applicant, and of any other person required to be qualified as part of the applicant's application under the Act and this rule; and

57.5.c. Applications and disclosure forms completed by the person applying for a management services provider’s license and by the key persons of the applicant, a holding company or affiliate that has control of the applicant, and any other identified person required to be qualified as part of that applicant's application. The applications and disclosure forms shall contain all information and documentation that the Commission requires to determine the eligibility, qualifications, and suitability of each person under section thirty-three of the Act, specifically including photographs and fingerprints of each individual person required to be qualified as part of the application. The photographs and fingerprints shall be taken at a time and place designated by the Director. Photos that have been taken within ninety days of submitting an application may be sent with the applicable disclosure form to fulfill the photo requirement. Each applicant shall submit the following kinds of information:

57.5.c.1. All of the following information for each natural person required to be qualified as part of the application:

57.5.c.1.A. Name;

57.5.c.1.B. Aliases and nicknames;

57.5.c.1.C. Date of birth;

57.5.c.1.D. Physical description;

57.5.c.1.E. Citizenship;

57.5.c.1.F. Marital history and family data; and

57.5.c.1.G. Home and business addresses and phone numbers;

57.5.c.2. Personal, business, and financial information relevant to the moral character, reputation, integrity, business probity, experience and ability, and financial experience, stability, and responsibility of the person applying for a management services provider’s license and each person required to be qualified as part of the application;

57.5.c.3. A listing of the jurisdictions in which the person applying for a management services provider’s license and each person required to be qualified as part of that application holds or has held a management services provider’s license or other gaming-related license;

57.5.c.4. Information regarding any previous civil litigation that involves the business practices of, or criminal arrests, charges, or dispositions involving, the person applying for a management services provider’s license and each person required to be qualified as part of the application;

57.5.c.5. Information regarding the incorporation, partnership, or other business structure and organization of the person applying for the management services provider’s license and the applicant's key persons and any holding company or affiliate that has control of the applicant;

57.5.c.6. Information regarding the services that the person applying for a management services provider’s license will provide to the limited gaming facility licensee, including, without limitation, information regarding the knowledge, skill, education, training, and experience of the applicant and the managerial employees who will represent the applicant and conduct its business in West Virginia;

57.5.c.7. Information regarding any previous bankruptcy proceedings filed by or against the person applying for a management services provider’s license or any other person required to be qualified as part of the application;

57.5.c.8. Information regarding any previous formal legal proceedings to adjust, deter, suspend, or otherwise work out payment of any debt owed by the person applying for a management services provider’s license or any other person required to be qualified as part of the application;

57.5.c.9. Information regarding any previous violation of, or noncompliance with, management services provider licensing or regulatory requirements in West Virginia or any other jurisdiction by the person applying for a management services provider’s license or any other person required to be qualified as part of the application;

57.5.c.10. Information regarding any previous violation of, or noncompliance with, any other licensing and regulatory requirements involving other regulated gaming in West Virginia or any other jurisdiction by the person applying for a management services provider’s license or any other person required to be qualified as part of the application;

57.5.c.11. Information regarding whether the person applying for a management services provider’s license or any other person required to be qualified as part of the application has ever held a management services provider’s license or other gaming-related license that was restricted, suspended, or revoked in West Virginia or any other jurisdiction; and

57.5.c.12. Other information which is required by the Commission regarding the person applying for a management services provider’s license and any other person required to be qualified as part of the application and which is considered necessary by the Commission to protect the public and enhance the credibility and integrity of gaming in West Virginia and to properly evaluate the applicant's eligibility, qualifications, and suitability to be licensed as a management services provider under the Act and this rule.

57.6. A person that is required to be licensed as a management services provider under the Act and this rule shall, before issuance of a management services provider’s license, produce information, documentation, and assurances in its application to establish all of the following by clear and convincing evidence:

57.6.a. The applicant and all other persons required to be qualified as part of the application are eligible, qualified, and suitable for licensure under the licensing standards, criteria, and requirements set forth in section thirty-three of the Act and this rule;

57.6.b. The financial stability and responsibility of the applicant;

57.6.c. The applicant and all other persons required to be qualified as part of the application demonstrate a level of skill, experience, knowledge, and ability necessary to supply management services that the applicant seeks permission to provide to the casino licensee in compliance with the Act and this rule;

57.6.d. The applicant and all other persons required to be qualified as part of the application have not been convicted of any disqualifying crime listed in section sixteen of the Act; and

57.6.e. The applicant and all other persons required to be qualified as part of the application do not appear on the exclusion list of any jurisdiction.

57.7. The Commission shall take the following action on an application for a management services provider license:

57.7.a. After the completion of the background investigation, the Director shall report to the Commission, in writing, regarding the staff's background investigation of the applicant. Upon receipt of the Director's report, the Commission shall grant or deny the application;

57.7.b. If the Commission grants the application, it shall direct the Director to issue a management services provider’s license;

57.7.c. If the Commission denies the application, then it shall instruct the Director to issue the applicant a notice of denial by certified mail; and

57.7.d. If the applicant fails to request a hearing by certified mail within ten days of the applicant’s receipt of the notice of denial to contest the denial, the notice of denial becomes the final order of the Commission.

57.8. A person whose application for a management services provider license has been denied may not reapply for a management services provider license for a period of one year from the date on which the Commission voted to deny the application unless the Commission allows reapplication at an earlier date.

57.9. A person whose application for a management services provider license was denied may seek leave of the Commission to reapply by addressing the request to the Commission. The Commission may require the applicant to present oral or written argument outlining why an exception should be made.

57.10. Each year, a management service provider licensee shall pay to the Commission an annual license renewal fee of one hundred dollars in order to maintain its license. Additionally, prior to annual renewal, the management service provider licensee shall file a written report with the Commission containing the following information:

57.10.a. If the licensee is a publicly traded corporation regulated by the Securities and Exchange Commission, a current list, to the extent known by the licensee at the time of submitting the report, of all key persons, affiliates and affiliated companies, the key persons of any person that has control of the licensee, and the identity of all other persons required to be qualified as part of the licensee’s request for renewal of the license under the Act and this rule;

57.10.b. If the licensee is not a publicly traded corporation regulated by the Securities and Exchange Commission, a current list, to the extent known by the licensee at the time of submitting the report, of all key persons, affiliates and affiliated companies of the licensee, the key persons of any persons that have control of the licensee, and all other persons, other than publicly traded corporations and their 5% or less shareholders, that have more than a 1% direct, indirect, or attributed pecuniary or equity interest in the licensee;

57.10.c. To the extent that information has changed or has not been previously reported to the Commission, updated personal, business, and financial information, as the Commission may require, related to the eligibility, suitability, and general fitness of the licensee under the Act and this rule to continue to hold the license for which renewal is requested. The information shall include, without limitation, changes regarding the identification, integrity, moral character, reputation, and relevant business experience, ability and probity, and financial experience, ability, and responsibility of the licensee and each of the persons required to be qualified for renewal of the license under the Act and this rule;

57.10.d. A statement under oath by the licensee's managing officer or director that the information provided in the licensee's annual renewal report is current, complete, true, and accurate, and that the licensee has fulfilled its obligation under the Act and this rule to notify the Commission of any change in information provided in its original license application and subsequent annual license renewal reports previously filed with the Commission;

57.10.e. Financial statements and reports regarding the current capital structure and financial condition of the licensee, prepared by the licensee in the manner and form prescribed by the Commission, indicating the licensee's current financial ability to conduct and maintain its management services provider business in a financially responsible manner, in accordance with the requirements of the Act and this rule, and satisfy its financial obligations in accordance with financing agreements and other contractual obligations; and

57.10.f. Other information and documentation that the Commission may require to determine the licensee's eligibility, suitability, and qualification to have its license renewed under the licensing standards of the Act and this rule.

57.11. A management service provider license shall be renewed by the Commission if all of the following requirements are met:

57.11.a. The licensee continues to be in good standing with the Commission; and

57.11.b. The licensee submits the $100.00 annual license renewal fee, in the manner and form required by the Commission, not less than ten days before expiration of the license.

57.12. The Commission may refuse to renew a management service provider license and issue a notice of non-renewal if the licensee fails to file its annual renewal report in a timely manner, or if the Director reports in writing to the Commission, after reviewing the licensee's annual renewal report, that the license should not be renewed because the licensee's annual renewal report does not provide the information and documentation prescribed and required by the Commission to establish and determine that the licensee is eligible, qualified, or suitable to continue to be licensed and that the licensee is prepared, ready, and able to continue providing goods and services to the limited gaming facility in compliance with the Act and this rule.

57.13. A management service provider licensee who is served with a notice of non-renewal under this rule may request a hearing under this rule.

57.13.a. The notice of non-renewal does not constitute a finding by the Commission that the management service provider licensee is ineligible, unqualified, or unsuitable for licensure or is otherwise in violation of the licensing requirements of the Act or rules of the Commission, unless the licensee fails to request a hearing under this rule within ten calendar days.

57.13.b. If the licensee does not request a hearing in a timely manner, then the notice of non-renewal becomes the final order of the Commission.

W. Va. Code R. § 179-4-58 Reviews of Finances of Licensees

58.1. On behalf of the Commission, the Lottery Director and the Lottery administrative staff are directed to engage in systematic reviews of the finances of the entities that help the Lottery Commission to operate the regulated, controlled, owned and operated West Virginia State Lottery games. These entities may include persons licensed under the Act.

58.2. Depending on the operation, the reviews could occur monthly, quarterly or annually as directed by the Commission's Audit Committee. The reviews should include, but are not limited to:

58.2.a. A monthly financial report, or balance sheet and income statement;

58.2.b. Any contract that can or would alter or restrict the ongoing business objectives of the licensee, permit agent or vendor without implicit Commission approval;

58.2.c. Quarterly 10-Q's; and

58.2.d. Year end financial statements and 10-k's, if public entities.

W. Va. Code R. § 179-4-59 [Reserved]

PART 4. CONDUCT OF GAMING

W. Va. Code R. § 179-4-60 Rules of Game; Purpose

A limited gaming facility licensee shall submit its game rules to the Commission for approval to ensure all of the following:

60.1. The games offered by the limited gaming facility licensee are performed only in accordance with the Act and this rule;

60.2. The functions, duties, and responsibilities associated with the limited gaming operation are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel, and to ensure that an employee of the limited gaming facility licensee is not in a position to perpetuate and conceal errors or irregularities in the normal course of his or her duties; and

60.3. The limited gaming operation is conducted by the limited gaming facility licensee with integrity and in accordance with the Act and this rule.

W. Va. Code R. § 179-4-61 Hours of Operation

61.1. Gaming is authorized during hours set from time to time by the West Virginia Lottery Commission.

61.2. The limited gaming facility licensee may request to operate twenty-four hours a day, seven days a week, and the Commission may approve the request.

W. Va. Code R. § 179-4-62 Minimum and Maximum Wagers

62.1. With the approval of the commission, the operator of a gaming facility may set minimum wagers for any West Virginia Lottery table game.

62.2. Video lottery terminals operated at the limited gaming facility may not allow more than five dollars to be wagered on a single game. The following game options do not violate the $5.00 wager limit on a single game because none require the insertion of more than $5.00 to play the game:

62.2.a. The "Double-Up" option in poker games;

62.2.b. The "Splitting" option in blackjack games;

62.2.c. The "Insurance" option in blackjack games; and

62.2.d. The "Let It Ride" option in blackjack games.

W. Va. Code R. § 179-4-63 Floor Plans

63.1. A limited gaming facility licensee or license applicant shall submit a floor plan or floor plans outlining each floor of the casino and the location, number, or position of each video lottery terminal and gaming table position. A licensee or license applicant shall submit the floor plan or floor plans to the Commission not less than 30 days before the commencement of gambling operations.

63.2. The limited gaming facility licensee shall provide notice to the Commission of material changes in the casino floor plan before implementing the change.

63.3. The Deputy Director for Lottery Security, in consultation with the law enforcement member of the Commission, shall review any changes in floor plans and security camera locations. If no law enforcement member of the Commission is appointed at the time consultation is needed, the Deputy Director for Lottery Security shall consult with the Chairman of the Commission. Changes in floor plans and security camera locations do not require a vote of the Commission.

W. Va. Code R. § 179-4-64 Authorized Games

64.1. The limited gaming facility licensee shall not permit a game to be played if the game is not approved by the Commission.

64.2. The Commission shall authorize one or more variations of the following table games to be played at the limited gaming facility:

64.2.a. Baccarat;

64.2.b. Twenty-one or blackjack;

64.2.c. Poker;

64.2.d. Craps;

64.2.e. Roulette;

64.2.f. Wheel of fortune;

64.2.g. Video lottery games authorized by W. Va. Code §29-22A-1 et seq.; and

64.2.h. Other Monte Carlo-style table game expressly permitted by the Commission.

64.3. The Commission shall not authorize the following games to be played at the limited gaming facility:

64.3.a. punchboard;

64.3.b. Faro;

64.3.c. Numbers ticket;

64.3.d. Push card;

64.3.e. Jar ticket; and

64.3.f. Pull tab.

64.4. Notwithstanding the foregoing provisions of this section, the West Virginia Lottery Commission may license the limited gaming facility to sell regular West Virginia Lottery games authorized by W. Va. Code §29-22-1 et seq.

W. Va. Code R. § 179-4-65 Submission and Approval of Game Rules

65.1. The limited gaming facility licensee or license applicant shall submit its casino and video lottery game rules to the Commission in accordance with this rule. The rule for each West Virginia Lottery table game shall include a schematic showing all printing and positions on the table’s felt. The State Lottery Commission’s specified identifier symbol shall appear on the table felt at the location of the limited gaming facility licensee’s choosing, and shall be at least three-inches-by-three-inches in size. The location of the symbol shall be clearly visible to patrons playing the West Virginia Lottery table game.

65.2. All game rules shall be in compliance with the provisions of the Act, this rule, and minimum internal control standards issued by the Commission.

65.3. The limited gaming facility licensee or license applicant shall submit game rules in the following manner:

65.3.a. The limited gaming facility licensee or license applicant shall submit game rules to the Commission not less than 30 days before the commencement of gambling operations or the play of the game, or both.

65.3.b. The Commission shall vote to approve or disapprove the rules of the game in total or in part after the rules are presented by the Director. In the alternative, the Commission may delegate this approval to the Director.

65.3.c. Any portion of the game rules not approved may be revised and resubmitted by the limited gaming facility licensee or license applicant within the time period established by the Commission. This method shall be followed until all portions of the game rules have been approved or approval cannot be obtained.

65.3.d. Game rules may not be used by the limited gaming facility licensee or license applicant unless the rules of the game conform to the Commission’s minimum internal control standards and have been submitted and approved, in writing, by the Commission. The Commission shall approve the proposed rules of the game if the rules satisfy all of the following criteria:

65.3.d.1. The rules fulfill the purposes stated in the Act and this rule;

65.3.d.2. The rules ensure that the game will be played with integrity;

65.3.d.3. The rules are written in language that is plain to the player;

65.3.d.4. The rules will be readily available to patrons within the casino; and

65.3.d.5. Other requirements necessary to protect the public and ensure public confidence in gaming.

65.4. If the Commission determines, at any time, that approved rules of the game are not adequate to ensure compliance with the Act and this rule or the integrity of the game, then the Commission may direct the limited gaming facility licensee, in writing, to amend its rules of the game.

W. Va. Code R. § 179-4-66 Amendments to Game Rules

All of the following provisions apply to amendments to rules of the game:

66.1. Unless otherwise provided by the Commission, the limited gaming facility licensee or license applicant shall submit an amendment to the rules of the game, including variations of games, to the Director not less than 30 days before utilizing the rules of the game; and

66.2. The Commission shall vote to approve or disapprove the amendment to the game rules in the same manner that an initial submission is approved or disapproved. In the alternative, the Commission may delegate this approval to the Director.

W. Va. Code R. § 179-4-67 Table Limits

67.1. The rules of the game submitted by the limited gaming facility licensee or license applicant shall require that table limits for each table be clearly posted for the public.

67.2. The limited gaming facility licensee may amend the minimum and maximum wager at a table if the new maximum wager is not above the house maximum wager for the game. The limited gaming facility licensee may amend the minimum and maximum wagers of a table if both of the following actions are taken:

67.2.a. A sign is posted at the gaming table advising patrons of the new minimum and maximum wagers in effect for the table; and

67.2.b. Patrons at the table are advised of the change.

67.3. The limited gaming facility licensee may raise the house limit for individual patrons by following procedures for raising the limits that have been submitted with the rules of the game and approved in accordance with this rule.

W. Va. Code R. § 179-4-68 Playing Card Specifications

All playing cards used by the limited gaming facility licensee shall be in compliance with all of the following specifications:

68.1. Unless otherwise provided in this rule, or in the game rules document, all decks of cards shall be one complete standard deck of fifty-two cards in four suits and at least one joker. The four suits shall be hearts, diamonds, clubs, and spades. Each suit shall consist of all of the following numerical cards:

68.1.a. Two to ten;

68.1.b. A jack;

68.1.c. A queen;

68.1.d. A king; and 68.1e. An ace.

68.2. The backs of each card in a deck shall be identical and no card shall contain any marking, symbol, or design that will enable a person to know the identity of any element printed on the face of the card or that will differentiate the back of that card from any other card in the deck;

68.3. All edges shall be perfectly square with each side at a precise 90 degree angle to each adjacent side of the card;

68.4. The radius of all 4 corners shall be exactly the same;

68.5. The name, trade name, or logo of the limited gaming facility licensee or license applicant and a Lottery-specified identifier symbol shall be imprinted on the back side of each playing card twice in a mirror image. The mirror imaged name, trade name, or logo of the limited gaming facility licensee or license applicant shall be spaced a minimum of 3/4 of an inch apart;

68.6. If playing cards have a white border, then the border shall be a minimum of 3/16 of an inch on each side of the card;

68.7. In the hearts suit, the hearts shall be a red color;

68.8. In the diamonds suit, the diamond pips shall be a red color;

68.9. In the spades suit, the spades shall be a black color;

68.10. In the clubs suit, the trefoil-shaped figure shall be a black color;

68.11. All finished card decks are to be packaged using a cellophane or shrink wrap in boxes that have a tamper-resistant security seal and a tear band;

68.12. The playing card manufacturer's identification name shall be placed on each deck box; and

68.13. The playing card manufacturer's identification name shall be placed on each box containing decks of playing cards.

W. Va. Code R. § 179-4-69 Dice Specifications

All dice used by the limited gaming facility licensee shall be in compliance with all of the following specifications:

69.1. The dice shall be formed in the shape of a perfect cube and of a size no smaller than 0.750 inches on each side nor larger than 0.775 inches on each side;

69.2. The name, trade name, or logo of the limited gaming facility licensee and a Lottery-specified identifier symbol shall be imprinted on or in each die used by the limited gaming facility licensee or license applicant;

69.3. The dice shall be transparent and made exclusively of cellulose, except for the following:

69.3.a. Spots;

69.3.b. The name, trade name, or logo of the limited gaming facility licensee and a Lottery-specified identifier symbol; and

69.3.c. The serial number or letters, or both;

69.4. The surface of each side of the die shall be perfectly flat and the spots contained in each side of the die shall be perfectly flush with the area surrounding the spots;

69.5. The edges and corners of each die shall be perfectly square and form 90 degree angles with each adjacent side;

69.6. The texture and finish of each side shall be exactly identical to the texture and finish of all other sides;

69.7. The weight of each die shall be equally distributed throughout the cube, and no side of the cube may be heavier or lighter than any other side of the cube;

69.8. The dice shall have 6 sides bearing white circular spots from 1 to 6, respectively, with the diameter of each spot equal to the diameter of every other spot on the die;

69.9. The dice shall have spots arranged so that all of the following provisions are satisfied:

69.9.a. The side containing one spot is directly opposite the side containing 6 spots;

69.9.b. The side containing two spots is directly opposite the side containing five spots; and

69.9.c. The side containing three spots is directly opposite the side containing four spots.

69.10. Each spot shall be placed on the die by drilling, or the equivalent, into the surface of the cube and filling the drilled out portion with a compound that is equal in weight to the weight of the cellulose drilled out and that forms a permanent bond with the cellulose cube.

69.11. Each Lottery-specified identifier symbol shall be printed in a manner that shall not change the weight or balance of the die.

W. Va. Code R. § 179-4-70 Removal of Cards or Dice From Play

70.1. The limited gaming facility licensee shall remove any dice or playing cards if there is an indication of any of the following:

70.1.a. The dice or playing cards have been tampered with;

70.1.b. The dice or playing cards are flawed; or

70.1.c. The dice or playing cards are defective and the defect may affect the integrity or fairness of the game.

70.2. If there is an indication that dice or playing cards have been tampered with, then the pit manager, or his or her equivalent, shall place the dice or playing cards in an envelope, seal the envelope, and give the envelope to Lottery Security. The pit manager, or his or her equivalent, shall note all of the following information on the outside of the envelope:

70.2.a. The date and time the dice or playing cards were removed from play;

70.2.b. The live gaming device from which the dice or playing cards were removed from play;

70.2.c. The characteristics that indicate that the dice or playing cards were tampered with; and

70.2.d. The name of all occupational licensees at the live gaming device from which the dice or playing cards were removed, and the name of the pit manager, or his or her equivalent, who removed the dice or playing cards from play.

70.3. Except for dice that are removed from play due to the possibility of tampering, all dice shall be canceled when removed from play. Dice may be canceled by any of the following means:

70.3.a. Drilling a circular hole that is not less than 1/4 of an inch in diameter through the center of each die;

70.3.b. Destroying the die by shredding; or

70.3.c. Canceling the die in any other manner approved by the Director.

70.4. Except for playing cards that are removed from play due to the possibility of tampering, all playing cards shall be canceled by one of the following methods:

70.4.a. Drilling a circular hole that is not less than 1/4 of an inch in diameter through the center of each card in the deck;

70.4.b. Shaving not less than two corners of each playing card so that each side is no longer at 90 degree angles with each adjacent side;

70.4.c. Shredding the cards; or

70.4.d. Canceling the cards by any other method approved by the Director.

70.5. This rule shall not prevent a licensee from removing cards and dice from a game at any time in its discretion.

W. Va. Code R. § 179-4-71 Storage of Cards or Dice

71.1. All dice or playing cards that are not being used at a live gaming device shall be kept in locked compartments on the licensed premises.

71.2. Dice and playing cards shall not be left at a live gaming device while unattended.

71.3. The limited gaming facility licensee shall maintain an inventory of all dice and playing cards on forms prescribed by the Commission. The inventory shall contain all of the following information:

71.3.a. The date on which dice and playing cards were received;

71.3.b. The quantity of the dice and playing cards received;

71.3.c. The name, business address, and business telephone number of the manufacturer from which the dice or playing cards were received;

71.3.d. The quantity of dice and playing cards that are placed into play each day;

71.3.e. The quantity of dice and playing cards that are removed from play due to suspected tampering and the date of the removal; and

71.3.f. The quantity of dice and playing cards that are removed from play and canceled each day.

71.4. The limited gaming facility licensee shall conduct a physical inventory of the dice and playing cards every 3 months. The limited gaming facility licensee shall record the results of the physical inventory on forms prescribed by the Commission. The limited gaming facility licensee shall reconcile inventory maintained in subsection (3) of this section with the results of the physical inventory. The limited gaming facility licensee shall immediately report any discrepancies in the inventory forms and the physical inventory to the Commission.

W. Va. Code R. § 179-4-72 Inspection of Cards

72.1. When playing cards are accepted for play at a live gaming device, the occupational licensee accepting the playing cards shall inspect the playing cards to ensure the playing cards comply with this rule.

72.2. Playing cards shall be inspected by sorting the cards sequentially by suit and inspecting the sides of the cards for crimps, bends, cuts, shaving, or any other defect that would affect the integrity or fairness of the game.

W. Va. Code R. § 179-4-73 Inspection of Dice

73.1. Before dice are placed into play at a live gaming device, the pit manager, or his or her equivalent, shall inspect the dice to ensure the dice comply with this rule.

73.2. Dice shall be inspected by all of the following methods on a flat surface that allows the inspection of the dice to be monitored by the surveillance system:

73.2.a. A micrometer or any other approved instrument that performs the same function;

73.2.b. A balancing caliper; or

73.2.c. A steel set square and magnet.

73.3. The limited gaming facility licensee shall store the micrometer or other approved instrument, the balancing caliper, and/or the steel set square and magnet in a secure place that is not accessible by the public.

W. Va. Code R. § 179-4-74 Casino Gaming Wagering; Cashless Wagering System Required

74.1. The limited gaming facility licensee may not permit any form of wagering except as authorized by this rule.

74.2. The limited gaming facility licensee may receive wagers only from an individual present in a licensed gaming facility.

74.3. All limited gaming facility operations shall use a cashless wagering system whereby all players’ money is converted to tokens, electronic cards, chips, or other approved media that can only be used for wagering in a licensed gaming facility.

74.4. Except as permitted for video lottery games under the Racetrack Video Lottery Act, W. Va. Code §29-22A-1 et seq., wagering may not be conducted with money or other negotiable currency.

W. Va. Code R. § 179-4-75 Cashing-In

The limited gaming facility licensee shall comply with all federal regulations and state laws and rules for the reporting of income or the withholding of taxes from winnings or the filing of currency transaction reports, or both. A patron shall produce an identification card confirming information required by all federal regulations and state rules for the withholding of taxes from winnings or currency transaction reports, or both, before the disbursement of winnings. If no identification card is tendered by the patron, distributed winnings may be subject to backup withholdings as provided by the Internal Revenue Code.

W. Va. Code R. § 179-4-76 Submission of Chips For Review and Approval

76.1. The limited gaming facility licensee shall submit, to the Commission for approval, a sample of each denomination of value and non-value chips in its primary and secondary sets and shall not use the chips for gaming purposes until approved by the Director.

76.2. In requesting approval of the chips, the limited gaming facility licensee shall first submit to the Commission, before having any chips manufactured, a detailed schematic of its proposed chips, or a sample chip, which shall show the front, back, and edge of each denomination of value chip and each non-value chip, and the design and wording to be contained on the chip, all of which shall be depicted on the schematic or chip as they will appear, both as to size and location, on the actual chip. Once the design schematics or chip is approved by the Commission, a value or non-value chip shall not be issued or used until a sample of each denomination of value chip and each color of non-value chip is also submitted to, and approved by, the Commission.

76.3. The limited gaming facility licensee, or any licensed supplier or unlicensed supplier, shall not manufacture for, sell to, distribute to, or use in, any casino outside West Virginia any value or non-value chips that have the same edge design as chips approved for use by the West Virginia limited gaming facility.

W. Va. Code R. § 179-4-77 Chip Specifications

77.1. All of the following specifications apply to value chips:

77.1.a. A chip issued by the limited gaming facility licensee shall be round in shape and have the name of the limited gaming facility, the Lottery-specified identifier symbol and the specific value of the chip clearly and permanently impressed, engraved, or imprinted on the chip, except that the limited gaming facility licensee may issue gaming chips without a value impressed, engraved, or imprinted on the chip for roulette.

77.1.b. A value chip may be issued by the limited gaming facility licensee in denominations of 50 cents, $1.00, $2.00, $2.50, $3.00, $5.00, $20.00, $25.00, $100.00, $500.00, $1,000.00, and $5,000.00. The limited gaming facility licensee may determine the denominations to be used in its casino and the amount of each denomination for the conduct of casino gaming operations;

77.1.c. Each denomination of value chip shall have a primary color different from every other denomination of value chip. Value chips shall fall within the colors set forth in this subdivision when the chips are viewed both in daylight and under incandescent light. In conjunction with the primary colors, the limited gaming facility licensee shall use contrasting secondary colors for the edge spots on each denomination of value chip. Unless otherwise approved by the Director, the limited gaming facility licensee shall not use a secondary color on a specific denomination of chip identical to the secondary color used by a casino outside the boundaries of the State of West Virginia on the same denomination of the value chip. The primary color that the limited gaming facility licensee shall use for each denomination of value chip is as follows:

77.1.c.1. 50 cents “Mustard yellow;"

77.1.c.2. $1.00 "White;"

77.1.c.3. $2.00 “Tan;”

77.1.c.4. $2.50 "Pink;"

77.1.c.5. $3.00 “Brown;”

77.1.c.6. $5.00 "Red;"

77.1.c.7. $20.00 "Yellow;"

77.1.c.8. $25.00 “Green;"

77.1.c.9. $100.00 "Black;"

77.1.c.10. $500.00 "Purple;"

77.1.c.11. $1,000.00 "Fire orange;" and

77.1.c.12. $5,000.00 "Gray;"

77.1.d. Each denomination of value chip used by the limited gaming facility licensee shall, unless otherwise authorized by the Commission, be in compliance with all of the following specifications:

77.1.d.1. It shall have a center portion containing the value of the chip and the name of the limited gaming facility of a different shape from each other denomination;

77.1.d.2. It shall be designed so that the specific denomination of the chip can be determined on closed circuit black and white television when placed in a stack of chips of other denominations;

77.1.d.3. At the limited gaming facility licensee’s option, or at a later time that may be determined by the Commission, each chip shall have an embedded radio frequency microchip that uniquely identifies the chip itself, the issuing gaming facility, and denomination of the chip; and

77.1.d.4. It shall have the Lottery-specified identifier symbol.

77.1.e. The Commission may approve a value chip in denominations that deviate from the requirements of this rule if deviation is specifically identified by the limited gaming facility licensee and if the deviation does not affect the control, security, or integrity of the chips or the operation of the games.

77.2. All of the following provisions apply to non-value chips:

77.2.a. Each non-value chip used by the limited gaming facility shall be issued solely for the purpose of gaming at roulette. Each non-value chip at each roulette table shall:

77.2.a.1. Have the name of the limited gaming facility issuing it impressed, engraved, or imprinted into its center;

77.2.a.2. Contain a design, insert, or symbol differentiating it from the non-value chips being used at every other roulette table in the casino;

77.2.a.3. Have the word "roulette" impressed on it; and

77.2.a.4. Be designed, manufactured, and constructed so as to prevent, to the greatest extent possible, the counterfeiting of the chips;

77.2.b. Non-value chips issued at a roulette table shall only be used for gaming at that table and shall not be used for gaming at any other table in the limited gaming facility. The limited gaming facility licensee or its employees shall not allow a casino patron to remove non-value chips permanently from the table from which the chips were issued;

77.2.c. An individual at a roulette table shall not be issued or permitted to wager with non-value chips that are identical in color and design to value chips or to non-value chips being used by another individual at the same table. When a patron purchases non-value chips, a non-value chip of the same color shall be placed in a slot or receptacle attached to the outer rim of the roulette wheel. At that time, a marker button denoting the value of a stack of chips of that color shall be placed in the slot or receptacle;

77.2.d. Non-value chips shall only be presented for redemption at the table from which they were issued and shall not be redeemed or exchanged at any other location in the casino gaming operation. When presented for redemption, the dealer at the table shall exchange the chips for an equivalent amount of value chips, which may then be used by the patron in gaming or redeemed in the manner provided for value chips; and

77.2.e. The limited gaming facility licensee may permit, limit, or prohibit the use of value chips in gaming in roulette. However, it is the responsibility of the limited gaming facility licensee to keep an accurate account of the wagers being made at roulette with value chips so that the wagers made by one player are not confused with wagers made by another player at the table.

W. Va. Code R. § 179-4-78 Primary, Secondary, and Reserve Sets of Gaming Chips

78.1. Unless otherwise authorized by the Commission, the limited gaming facility shall have a primary set of value chips, a separate secondary set of value chips, and a non-value chip reserve that conform to the color and design specification set forth in this rule. An approved secondary set of value chips and reserve non-value chips shall be placed into active play if the primary set is removed.

78.2. The secondary set of value chips shall have different secondary colors than the primary set of value chips. A secondary set of value chips is required for all denominations in use in the limited gaming facility.

78.3. The limited gaming facility licensee shall have a non-value chip reserve for each color used in the casino and a design insert or symbol of the reserve chips shall be different from the non-value chips comprising the primary set.

78.4. The limited gaming facility licensee shall remove the primary set of gaming chips from active play if any of the following provisions apply:

78.4.a. A determination is made by the limited gaming facility licensee or the Commission that the casino gaming operation is receiving a significant number of counterfeit chips; or

78.4.b. Any other impropriety or defect in the use of the primary set of chips makes removal of the primary set necessary.

78.5. If the primary set of chips is removed from active play, then the limited gaming facility licensee shall immediately notify the Commission of the reason for the removal.

W. Va. Code R. § 179-4-79 Issuance and Use of Tokens for Gaming in Video Lottery Terminals

79.1. The limited gaming facility licensee shall not issue, or cause to be used, in its casino gaming operation, any tokens for gaming in video lottery terminals unless the tokens are approved by the Commission. In requesting approval of the tokens, the limited gaming facility licensee shall first submit, to the Commission, a detailed schematic of its proposed token. The schematic shall show its front, back, and edge, its diameter and thickness, and any logo, design, or wording to be contained on the token, all of which shall be depicted on the schematic as they will appear, both as to size and location, on the actual token. Once the design schematics are approved by the Commission, a token shall not be issued or used until a sample of the token is also submitted and approved by the Commission.

79.2. The limited gaming facility licensee may, with the approval of the Commission, issue metal tokens designed for gaming in its video lottery terminals. The tokens shall:

79.2.a. Clearly identify the name and location of the limited gaming facility operation issuing them.

79.2.b. Clearly state the face value of the token;

79.2.c. Contain the statement "Not Legal Tender;"

79.2.d. Contain on at least one face a statement approved by the Commission as to form and content that notifies a patron that the token will be accepted to activate play only in video lottery terminals operated by the limited gaming facility licensee that issued it;

79.2.e. Not be deceptively similar to any current or past coin of the United States of America or of a foreign country;

79.2.f. Be of a size or shape or have other characteristics that will physically prevent their use to activate lawful vending machines or other machines designed to be operated by coins of the United States of America;

79.2.g. Not be manufactured from a ferromagnetic material or from a three-layered material consisting of a copper-nickel alloy clad on both sides of a pure copper core or from a copper based alloy unless the total zinc, nickel, aluminum, magnesium, and other alloying metal is more than 25% of the token's weight;

79.2.h. Incorporate the anti-counterfeit features and other security measures the Commission requires; and

79.2.i. Be disk-shaped and conform to all of the following measurements:

79.2.i.1. The diameter of the five-cent denomination tokens shall be between 0.795 and 0.805 inches and the width shall be between 0.072 and 0.078 inches;

79.2.i.2. The diameter of the 10 cent denomination tokens shall be between 0.870 and 0.880 inches and the width shall be between 0.058 and 0.067 inches;

79.2.i.3. The diameter of the 25 cent denomination tokens shall be between 0.979 and 0.989 inches and the width between 0.064 and 0.070 inches;

79.2.i.4. The diameter of the 50 cent denomination tokens shall be between 1.235 and 1.248 inches and the width between 0.077 and 0.083 inches;

79.2.i.5. The diameter of the $1.00 denomination tokens shall be between 1.460 and 1.470 inches and the width between 0.098 and 0.104 inches;

79.2.i.6. The diameter of the $2.00 denomination tokens shall be between 1.335 and 1.348 inches and the width between 0.098 and 0.104 inches;

79.2.i.7. The diameter of the $5.00 denomination tokens shall be between 1.750 and 1.760 inches and the width between 0.119 and 0.125 inches;

79.2.i.8. The diameter of the $10.00 denomination tokens shall be between 1.695 and 1.705 inches and the width between 0.133 and 0.139 inches;

79.2.i.9. The diameter of the $25.00 denomination tokens shall be between 1.645 and 1.655 inches and the width between 0.093 and 0.099 inches; and

79.2.i.10. The diameter of the $100.00 denomination tokens shall be between 1.595 and 1.605 inches and the width between 0.077 and 0.083 inches.

79.3. Notwithstanding the specifications for denominations contained in paragraphs 79.2.i.1 through 79.2.i.10 of this rule, the limited gaming facility shall not acquire or use tokens of any denomination greater than the maximum amount allowed by law to be wagered on a single game.

79.4. Tokens approved for issuance by the limited gaming facility licensee shall be in compliance with all of the following provisions:

79.4.a. Be issued to a patron upon payment for the tokens, or in accordance with a complimentary distribution program authorized under the Act or this rule;

79.4.b. Be capable of insertion into designated video lottery terminals operated by the limited gaming facility for the purpose of activating play;

79.4.c. Be available as a payout from the hopper of video lottery terminals; and

79.4.d. Be redeemable by the patron in accordance with the Act and this rule.

W. Va. Code R. § 179-4-80 Distribution of Coupons for Complimentary Chips and Tokens

The limited gaming facility licensee may, for specified marketing purposes, provide patrons of its casino gaming operation with coupons redeemable for complimentary chips or tokens, if both of the following requirements are satisfied:

80.1. The processes and procedures for the control, accountability, and distribution of coupons for chips and tokens and for the redemption of the coupons are provided for in the limited gaming facility licensee's internal control system and are in conformance with the internal control system; and

80.2. Periodic internal audits validate the integrity and accountability of the processes and procedures authorized and required under this rule.

W. Va. Code R. § 179-4-81 Exchange of Chips and Tokens

81.1. The limited gaming facility licensee shall issue chips to an individual only at the request of the individual and shall not issue chips as change in any other transaction. The limited gaming facility licensee shall issue chips only to casino patrons at cashier's cages or at the live gaming devices and shall redeem chips only at a cashier's cage.

81.2. The limited gaming facility licensee shall issue its tokens only at the request of a patron and only from a cashier's cage, token dispenser, or employees in the video lottery terminals area. The limited gaming facility licensee shall redeem tokens only at a cashier's cage.

81.3. The limited gaming facility licensee shall redeem chips or tokens only from its patrons and shall not knowingly redeem chips or tokens from any non-patron source, except when non-gaming employees of the historic resort hotel present chips or tokens for redemption as provided in the approved internal control system of the casino.

81.4. The limited gaming facility licensee shall promptly redeem its own chips and tokens by cash or by check dated the day of the redemption on an account of the limited gaming facility licensee, as requested by the patron, except when the chips and tokens were obtained or used unlawfully.

81.5. The limited gaming facility licensee may demand the redemption of its chips or tokens from any individual in possession of them. An individual shall redeem the chips or tokens upon presentation of an equivalent amount of cash by the limited gaming facility licensee.

81.6. The limited gaming facility licensee shall cause to be posted and keep posted, in a prominent place, both of the following signs:

81.6.a. Visible at or near each cashier's cage, a sign that reads as follows: "Gaming chips issued by any other casino in the world may not be wagered or redeemed in this casino;" and

81.6.b. Visible at or near each cashier’s cage, a sign that reads as follows: "Tokens issued by any other casino or racetrack in the world may not be wagered or redeemed in this casino."

W. Va. Code R. § 179-4-82 Receipt of Gaming Chips From Supplier

82.1. When chips are received from the supplier, they shall be opened and checked by not less than two employees of the limited gaming facility licensee from different departments. The limited gaming facility licensee shall promptly report to the Commission any deviation between the invoice accompanying the chips and the actual chips received or any defects found in the chips or tokens. The supplier licensee shall give the Commission prior notification of the delivery of chips to the limited gaming facility licensee. The limited gaming facility licensee shall not accept the delivery of chips unless the Commission has been given prior notification of the delivery.

82.2. After checking the chips received, the limited gaming facility licensee shall cause to be reported, in a chip inventory ledger, all of the following information:

82.2.a. The denomination of the chips received;

82.2.b. The number of each denomination of chip received;

82.2.c. The number and description of all non-value chips received;

82.2.d. The date of the receipt; and

82.2.e. The signature of the individuals who checked the chips.

82.3. If any of the chips received are to be held as reserve chips and not used either at the gaming tables or at a cashier's cage, then a licensee shall ensure that the chips are stored in a separate locked compartment either in the vault or in a cashier's cage and are recorded in the chip inventory ledger as reserve chips.

82.4. A limited gaming facility licensee shall ensure that any chips received that are part of the secondary set of chips of the casino are recorded in the chip inventory ledger as secondary chips and are stored in a locked compartment in the casino vault separate from the reserve chips.

W. Va. Code R. § 179-4-83 Inventory of Chips

83.1. Chips shall be taken from or returned to either the reserve chip inventory or the secondary set of chips in the presence of not less than two individuals from two of the following independent departments of the limited gaming facility: Security; accounting; auditing; or the casino department. The denominations, number, and amount of chips taken or returned shall be recorded in the chip inventory ledger together with the date and signatures of the individuals carrying out the process.

83.2. The limited gaming facility licensee shall, on a monthly basis, compute and record the unredeemed liability for each denomination of chips to ensure that an inventory of chips in circulation is made and to ensure that the result of the inventory is recorded in the chips inventory ledger. On a monthly basis, the limited gaming facility licensee shall ensure that an inventory of chips in reserve is made and ensure that the result of the inventory is recorded in the chip inventory ledger. A limited gaming facility licensee shall submit the procedures it will use to compute the unredeemed liability and to inventory chips in circulation and reserve to the Commission for approval. A physical inventory of chips in reserve is required annually if the inventory procedures incorporate the sealing of the locked compartment.

83.3. During non-gaming hours, the limited gaming facility licensee shall ensure that all chips in the possession of the casino are stored in the chip bank, in the vault, or in a locked compartment in a cashier's cage. However, chips may be locked in a transparent compartment on gaming tables if there is adequate security as approved by the Commission.

W. Va. Code R. § 179-4-84 Use of Tokens

Tokens approved by the Commission for issuance by the limited gaming facility licensee shall:

84.1. Be issued to a patron upon payment for the tokens or in accordance with a complimentary distribution program approved by the Commission;

84.2. Be capable of insertion into a video lottery terminal at the casino to activate play;

84.3. Be available as a payout from the hopper of a video lottery terminal; and

84.4. Be redeemable by a patron in accordance with the Act and this rule.

W. Va. Code R. § 179-4-85 Destruction of Chips and Tokens

85.1. Before destroying chips or tokens, the limited gaming facility licensee shall notify the Director, in writing, of the date and the location at which the destruction will be performed, the denomination, number, and amount of value chips to be destroyed, the description and number of nonvalue chips to be destroyed, the denomination, number, and amount of tokens to be destroyed, and a detailed explanation of the method of destruction. Unless otherwise authorized by the Commission, the destruction of chips or tokens shall be carried out in the presence of not less than two individuals, one of whom shall be an employee of the West Virginia Lottery. The licensee shall ensure that the denomination, number, and amount of value chips, and the number and description of non-value chips, destroyed are recorded in the chip inventory ledger together with the signatures of the individuals carrying out the destruction and the date on which the destruction took place.

85.2. The limited gaming facility licensee shall submit to the Commission for approval, procedures to record the receipt, inventory, storage, and destruction of tokens.

W. Va. Code R. § 179-4-86 Destruction of Counterfeit Chips and Tokens

86.1. The following provisions apply to the destruction of counterfeit chips and tokens:

86.1.a. The limited gaming facility licensee shall notify the Commission and the Director, by telephone and also in writing, immediately upon the discovery of a counterfeit chip or chips or token or tokens that results in a loss of more than $1,000.00 to the licensee;

86.1.b. The Commission may take possession of the counterfeit chips or tokens; and

86.1.c. The Commission shall determine the disposition of any counterfeit chip or token, including, but not limited to, destruction of a counterfeit chip or token, in accordance with this rule.

86.2. The following provisions apply to the destruction of counterfeit chips and tokens:

86.2.a. Unless the Commission or a law enforcement officer instructs in writing, or a court of competent jurisdiction orders otherwise in a particular case, the limited gaming facility licensee shall destroy or otherwise dispose of counterfeit chips and tokens discovered in the casino in a manner approved by the Commission;

86.2.b. The limited gaming facility licensee shall notify the Commission, in writing, not less than 30 days before counterfeit chips or tokens are destroyed. The limited gaming facility licensee shall notify the Commission of all of the following information:

86.2.b.1. The number and denominations, actual and purported, of the coins and counterfeit chips and tokens destroyed or otherwise disposed of under this rule;

86.2.b.2. The date on which the coins and counterfeit chips and tokens were discovered;

86.2.b.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;

86.2.b.4. The names of the occupational licensees carrying out the destruction or other disposition on behalf of the limited gaming facility licensee; and

86.2.b.5. Other information considered necessary by the Commission to ensure compliance with the Act and this rule.

86.3. Unless otherwise approved by the Commission, not less than two people, one of whom is an agent of the West Virginia Lottery, shall be present when the counterfeit chips or tokens are destroyed.

W. Va. Code R. § 179-4-87 Persons Permitted to Enter Designated Gaming Area

87.1. An individual is only permitted to enter the designated gaming area at the licensed gaming facility if that person is a:

87.1.a. Registered overnight guest at the historic resort hotel;

87.1.b. Registered participant at a convention or event being held at the historic resort hotel, as long as at least four hundred guest rooms are occupied at the historic resort hotel on a calendar day;

87.1.c. Member of a homeowner or facility association that entitles members to substantial privileges at the historic resort hotel; or

87.1.d. Overnight guest of a member of a homeowner or facility association that entitles members to substantial privileges at the historic resort hotel.

87.2. In order to establish if at least four hundred guest rooms are occupied for the purpose of permitting convention or event participants who are not overnight guests to enter the designated gaming area, the limited gaming facility operator shall must submit each gaming day a written report to the Commission’s on-site security supervisor that states the number of guest rooms and guest cottages registered as occupied at the historic resort hotel on which the gaming facility is located for the gaming day.

87.2.a. The report shall be submitted no later than 9:00 p.m. on the gaming day and shall contain any other relevant information that the Commission considers necessary to verify that four hundred rooms are in fact occupied during the gaming day.

87.2.b. As a condition of continuing eligibility for reimbursement from the Capital Reinvestment Fund established in West Virginia Code §29-25-32, the historic resort hotel shall make its room occupancy records available upon request for examination by the Commission.

87.3. In the event that the limited gaming facility operator is not also the owner of the historic resort hotel, then the limited gaming facility operator shall establish, as a condition of licensing, that there is a binding agreement between the limited gaming facility operator and the historic resort hotel that the historic resort hotel will provide the necessary information to the limited gaming facility operator regarding room occupancy at the historic resort hotel. This agreement shall also require that the historic resort hotel provide the Commission with information regarding room occupancy upon the Commission’s request.

W. Va. Code R. § 179-4-88 Submission of Accounting Procedures and Internal Controls for Coupon Distribution Program

88.1. Not less than 30 business days before the initiation of the coupon distribution program the limited gaming facility licensee shall submit internal control procedures concerning the coupon distribution program to the Commission. The internal control procedures shall include, at a minimum, all of the following information:

88.1.a. The casino departments that will be responsible for administering the coupon distribution program;

88.1.b. The security measures that will be taken with respect to the coupons, including, but not limited to, all of the following information:

88.1.b.1. The manner in which the coupons will be ordered;

88.1.b.2. The manner in which the coupons will be inventoried upon receipt by the limited gaming facility licensee;

88.1.b.3. The manner in which the coupons will be stored and the individuals who will have access to the coupons;

88.1.b.4. The manner in which discrepancies will be handled; and

88.1.b.5. The manner in which coupons will be voided;

88.1.c. The manner in which the coupons will be distributed;

88.1.d. The schedule for conducting routine inventories of active unissued coupons. The inventory shall be conducted monthly by not less two individuals from separate casino departments. The results of the inventory shall be recorded in the coupon control ledger;

88.1.e. The manner in which coupons will be removed from the inventory, recorded, and voided once the coupons become inactive;

88.1.f. The manner in which the casino department responsible for distributing the coupons can requisition coupons from the casino department responsible for storing the coupons;

88.1.g. The maximum number of days in advance of an event that coupons can be requisitioned by the casino department responsible for issuing the coupons. The requisition document shall contain, at a minimum, all of the following information:

88.1.g.1. The date the requisition is prepared;

88.1.g.2. The day and date for which the coupons are needed;

88.1.g.3. The type or types of coupons that are requested;

88.1.g.4. The number of coupons required;

88.1.g.5. The name, title, and occupational license number of the individual completing the requisition; and

88.1.g.6. The name, title, occupational license number, and signature of the supervisor authorizing the requisition;

88.1.h. The manner in which the coupons will be issued. The limited gaming facility licensee shall require that coupons shall be stamped with the date of issuance;

88.1.i. The location of the locked cabinet in which the coupons will be stored before the distribution of the coupons;

88.1.j. The manner in which coupons may be redeemed for chips or tokens, or both, by patrons;

88.1.k. The manner in which coupons redeemed by patrons will be canceled;

88.1.l. The manner in which the coupons distributed, coupons not distributed, and coupons issued will be reconciled;

88.1.m. The manner in which coupons that have been issued, but not distributed to patrons in the appropriate time frame, will be voided and reconciled; and

88.1.n. The manner in which a dealer or cage employee shall receive and account for coupons redeemed by patrons.

88.2. In addition to including the information listed in subsection 88.1 of this rule, the limited gaming facility licensee’s internal control procedures shall require that:

88.2.a. The casino department responsible for storing the coupons shall complete all of the following information before the coupons are given to the casino department responsible for distributing the coupons:

88.2.a.1. The name, title, occupational license number, and signature of the representative filling the order;

88.2.a.2. The beginning serial number of the coupons issued;

88.2.a.3. The ending serial number of coupons issued;

88.2.a.4. The total number of and type of coupons issued;

88.2.a.5. The name, title, occupational license number, and signature of the supervisor; and

88.2.a.6. A record and explanation of any coupons that were voided due to discrepancies;

88.2.b. The casino department responsible for storing the coupons shall enter the information in paragraphs 88.1.g.2 to 88.1.g.4 of this subdivision in the coupon control ledger.

88.3. The Commission shall, in writing, approve the internal control procedures in total or in part.

88.4. The limited gaming facility licensee shall revise and resubmit any portion of the internal control procedures not approved by the Commission within the time frame established by the Commission. The limited gaming facility licensee shall revise and resubmit the internal control procedures until all portions of the internal control procedures have been approved or approval cannot be obtained.

88.5. The limited gaming facility licensee may not use an internal control procedure unless the internal control procedure has been approved by a vote of the Commission.

88.6. If the Commission determines, at any time, that approved internal control procedures are not adequate to ensure compliance with the Act and this rule, it may direct the limited gaming facility licensee to amend its internal control procedure in accordance with this rule.

W. Va. Code R. § 179-4-89 Amendments to Internal Control Procedures

The limited gaming facility licensee shall make amendments to the internal control procedures with respect to complimentary chip and token programs as follows:

89.1. Unless otherwise provided by the Commission, the limited gaming facility licensee shall submit amendments to the internal control procedures to the Commission not less than twenty business days before utilizing the amended internal control procedure;

89.2. The Commission or its designee shall, in writing, approve the amendment to the internal control procedure in total or in part; and

89.3. The limited gaming facility licensee shall not use an amendment to internal control procedures unless the amendment to the internal control procedure has been approved, in writing, by the Commission.

W. Va. Code R. § 179-4-90 Coupon Accounting Procedures and Distribution Program

90.1. Not less than two casino departments shall be responsible for administering the coupon accounting procedures and distribution program. One casino department shall be responsible for storing the coupons and the other department shall be responsible for issuing the coupons.

90.2. The limited gaming facility licensee shall ensure that coupons received from a supplier are opened and examined by not less than two individuals from different casino departments. The limited gaming facility licensee shall ensure that any deviations in the coupons ordered and coupons received are recorded in compliance with this rule and are reported immediately to the appropriate supervisor.

90.3. The limited gaming facility licensee shall maintain a coupon control ledger in the manner prescribed by the Commission. The coupon control ledger shall contain, at a minimum, all of the following information:

90.3.a. The date the coupons were received;

90.3.b. The type and quantity of coupons received;

90.3.c. The beginning serial number of the coupons received;

90.3.d. The ending serial number of the coupons received;

90.3.e. The purchase order number or requisition number for the coupons received;

90.3.f. The signatures and occupational license numbers of all individuals who examined the coupons upon receipt of the coupons;

90.3.g. The date the coupons were issued to the casino distribution department;

90.3.h. The beginning serial number of the coupons issued to the casino distribution department;

90.3.i. The ending serial number of the coupons issued to the casino distribution department;

90.3.j. The number and quantity of coupons issued to the casino distribution department;

90.3.k. The balance of unissued coupons on hand;

90.3.l. The name, title, occupational license number, and signature of the representative issuing the coupons;

90.3.m. The name, title, occupational license number, and signature of the representative receiving the issued coupons;

90.3.n. A record of any coupons that are distributed to patrons; and

90.3.o. A record and explanation of any deviations from the licensed gaming facility licensee’s coupon specifications noted.

90.4. The casino department responsible for distributing the coupons shall maintain a daily coupon reconciliation form. One daily coupon reconciliation form shall be completed to account for all individuals responsible for distributing coupons to patrons. The daily coupon reconciliation form shall contain, at a minimum, all of the following information:

90.4.a. The date;

90.4.b. The type of coupon being issued;

90.4.c. The beginning and ending serial numbers of the coupons the individual has to distribute to patrons;

90.4.d. The quantity of coupons the individual has to distribute to patrons;

90.4.e. The total number of coupons the individual distributed to patrons;

90.4.f. The beginning and ending serial numbers of coupons not distributed to patrons;

90.4.g. The total number of coupons not distributed to patrons;

90.4.h. The serial numbers of any coupons that were voided and the reason the coupons were voided;

90.4.i. The name, title, occupational license number, and signature of the individual distributing the coupons to patrons and completing the form;

90.4.j. The name, title, occupational license number, and signature of the occupational licensee’s supervisor; and

90.4.k. Any variations discovered and an explanation of the variations.

90.5. In lieu of any manual procedures prescribed in this section, the Commission may approve a limited gaming facility licensee’s automated process if the control of the automated process is sufficient for the Commission’s purposes.

W. Va. Code R. § 179-4-91 Coupon Requirements

91.1. Coupons used in the complimentary chips and token program shall be original instruments and shall contain, at a minimum, all of the following information:

91.1.a. Any serial number assigned to the coupon;

91.1.b. A description of the value of the coupon;

91.1.c. The location or locations where the coupon may be redeemed;

91.1.d. The name of the limited gaming facility licensee;

91.1.e. The date or dates for which the coupon is valid;

91.1.f. The Lottery-specified identifier symbol; and

91.1.g. Any other information considered necessary by the Commission to ensure compliance with the Act and this rule.

91.2. If a multiple-part coupon is used, then each part of the coupon shall contain the information set forth in this subsection.

91.3. Coupons shall be designed and manufactured so that the denomination and type of coupon can be determined using the surveillance system.

W. Va. Code R. § 179-4-92 Records

92.1. The limited gaming facility licensee shall maintain the records required by this rule for the current year and the previous two years unless they are sooner audited by the Commission or its designee.

92.2. The limited gaming facility licensee shall allow the Commission access to, or provide copies of, the records maintained under this rule upon request by the Commission.

92.3. All records required to be held by the Commission for a specific period of time may be required to be retained for longer periods pursuant to other state or federal laws.

W. Va. Code R. § 179-4-93 Cashing Winning Video Lottery Tickets; Calculating the Ten-Day Rule

A video lottery credit ticket or voucher must be cashed within 10 days after it is printed. The ten-day period shall be calculated as follows:

93.1. Redemption of a video lottery credit ticket or voucher can only occur during the scheduled hours of video lottery gaming as those hours have been approved by the Commission;

93.2. Ten days is calculated by excluding the day the credit ticket or voucher was printed and including the tenth subsequent day until the close of video lottery gaming that began on that tenth subsequent day. This ten-day calculation may not be extended regardless of whether the tenth day falls on a Saturday, Sunday or legal holiday, or when the limited gaming facility is closed. Examples:

93.2.a. Example 1 – A video lottery credit ticket or voucher is printed at 5:00 p.m. on November 10. On November 20, the limited gaming facility begins video lottery gaming at noon and ends video lottery gaming at 2:00 a.m.. That video lottery credit ticket or voucher is redeemable until 2:00 a.m.

93.2.b. Example 2 - A video lottery credit ticket or voucher is printed at 1:00 a.m. on November 11; this is counted as game day November 10. On November 20, the limited gaming facility begins video lottery gaming at noon and ends video lottery gaming at midnight. That video lottery credit ticket or voucher is redeemable until midnight on November 20.

93.2.c. Example 3 - A video lottery credit ticket or voucher is printed on January 18; under normal conditions, the deadline for cashing would be January 28. Flooding occurs which closes the limited gaming facility on January 20; the limited gaming facility does not reopen until February 20. February 20 will be considered to be day ten for cashing video lottery vouchers printed on January 18.

W. Va. Code R. § 179-4-94 Increasing the Number of Authorized Video Lottery Terminals at the Limited Gaming Facility

94.1. Upon the granting of its license, the operator of the limited gaming facility shall request an initial number of video lottery terminals to be placed in the gaming facility. The Commission may grant the whole amount requested, or may grant only a portion of the amount requested by the operator.

94.2. Any expansion of the number of video lottery terminals authorized for the limited gaming facility beyond that initial amount may only be granted after the following procedure has been followed:

94.2.a. The requesting gaming facility shall provide to the Director of the West Virginia Lottery, at least sixty (60) days before a meeting where the Commission has docketed the expansion issue, a pro forma statement showing the change of the limited gaming facility’s financial position over the twelve month period immediately following the meeting at which the West Virginia Lottery Commission may approve the expansion. If the expansion is to be in stages, or is to begin more than eight months after Commission approval, the Commission may elect to approve a reduced number of video lottery terminals for the expansion. If the expansion is not completed within eight (8) months, the Commission may require updated financial information.

94.2.b. The requesting limited gaming facility licensee shall provide to the Director of the West Virginia Lottery, at least sixty (60) days before a meeting where the Commission has docketed the expansion issue, complete floor plan drawings of the video lottery gaming areas of the licensed limited gaming facility showing proposed locations of additional video lottery terminals and relocation of present video lottery terminals. All video lottery terminals, both present and future, shall be identified by manufacturer name and model number. Closed circuit television security cameras and their view or sweep angles shall also appear on the floor plans.

94.2.c. If the expansion of the number of authorized video lottery terminals will require the limited gaming facility licensee or a subcontractor to add temporary [construction, etc.] or permanent [service technicians, floor attendants, validation managers, security officers, etc.] employees to the limited gaming facility’s workforce, the requesting limited gaming facility licensee shall provide to the Director of the West Virginia Lottery, at least sixty (60) days before a meeting where the Commission has docketed the expansion issue, a detailed statement of the number of new jobs in each identifiable job category together with an estimate of the annual payroll costs increase over the subsequent 24-month period. The licensee shall estimate the number of West Virginia residents who will be employed by the requested expansion.

94.2.d. Within thirty (30) days of receipt of information required by this section, the Director shall forward copies of the information to each Commissioner. If the Commissioners and the Director determine that the application materials are complete and in order, the Director shall publish the notice required by this section of the rule.

94.2.e. At least thirty (30) days before a meeting where the Commission has docketed the expansion issue, the West Virginia Lottery shall place a 2” by 2” commercial advertisement in a daily newspaper of general circulation in the county where the licensed limited gaming facility is located. The advertisement shall run at least once per week for four successive weeks and shall appear either in the newspaper’s sports pages or entertainment pages. The ad shall contain the following facts:

94.2.e.1. The licensee currently operates ‘x’ number of video lottery terminals;

94.2.e.2. The licensee is currently authorized by the West Virginia Lottery Commission to operate up to ‘y’ number of video lottery terminals;

94.2.e.3. The licensee is seeking permission from the West Virginia Lottery Commission to operate ‘z’ number of additional video lottery terminals;

94.2.e.4. The West Virginia Lottery Commission has scheduled a public meeting to consider the licensee’s expansion request at a particular time and place determined by the Director of the West Virginia Lottery. [The meeting shall be held at a neutral site away from the limited gaming facility’s property]; and

94.2.e.5. To determine whether the proposed expansion is in the best interest of the citizens of West Virginia, the Commission will accept written or oral statements from citizens at the meeting; however, written statements must be received by the Director of the West Virginia Lottery at least one business day before the scheduled Commission meeting.

94.2.f. The expansion issue will be removed from the Commission’s monthly meeting agenda if the limited gaming facility licensee fails to provide any required information by the appropriate deadline, or if the information is judged by the Director and Commission to be insufficient. The expansion issue will be returned to the Commission’s monthly meeting agenda once the limited gaming facility licensee provides the Commission with the additional information.

W. Va. Code R. § 179-4-95 Video Lottery Electronic Player Tracking Systems

95.1. The player tracking systems at the licensed limited gaming facility with video lottery machines under the control and regulation of the West Virginia Lottery may exist under certain conditions set forth in this rule.

95.2. A manufacturer of associated hardware and software having to do with player tracking, shall not distribute and/or install player tracking hardware and software within video lottery terminals at the limited gaming facility licensee unless it has received a manufacturer permit from the West Virginia Lottery Commission.

95.3. An electronic player tracking system must complete a three-step approval process prior to installation:

95.3.a. Step 1: The manufacturer shall submit to the Director a complete, comprehensive and technically accurate description and explanation in both technical and lay language of the equipment and its intended usage. The Lottery technical staff will review the documentation and may pose telephone or written questions to clarify certain points. The Director shall send written notice of the Lottery’s approval for testing to the Commission, the manufacturer and the laboratory authorized by the Lottery Commission, upon clarification of all questions posed by the Lottery technical staff. Any system that does not fully comply with this Act, the West Virginia Racetrack Video Lottery Act, and all Lottery Commission Rules must be rejected by letter to the manufacturer.

95.3.b. Step 2. All hardware and software of an electronic player tracking system for placement in the limited gaming facility licensee is subject to testing and approval from the Lottery’s designated testing laboratory.

95.3.c. Step 3. When the Commission receives the laboratory testing report, it shall vote whether to approve the installation of the player tracking system. In no instance may the limited gaming facility licensee install or implement a video lottery electronic player tracking device without the Commission’s authorization.

95.4. All data captured by the licensed limited gaming facility as part of a player tracking system must be obtained with full disclosure to the participating parties. Eligibility requirements, such as age, employment or residence shall be set forth by the limited gaming facility licensee in a written policy and subject to approval by the Lottery Director and disclosed to all potential participants.

95.5. Each player who chooses to allow his or her personal information to be included in an electronic database as part of a tracking system, must be informed by the licensed limited gaming facility, in writing, in advance of participation, as to all possible uses of the information he or she provides. As an example: “The limited gaming facility licensee may use the information without compensation to the participant.”

95.6. The data obtained through electronic tracking mechanisms is the sole property of the limited gaming facility licensee which purchased the player tracking system. When the limited gaming facility licensee’s corporate ownership encompasses multiple entities, the player tracking information shall not be viewed as the property of all of the entities, but only the individual licensed subsidiary for which the data was intended by the player.

95.6.a. The West Virginia Lottery reserves the right to monitor and view the information obtained from player tracking endeavors at the limited gaming facility licensee. At no time shall personal information obtained from an electronic player tracking system for video lottery at the limited gaming facility licensee be sold or shared with entities external to the limited gaming facility licensee other than its parent company, if any, and the West Virginia Lottery shall not in any event make the information part of its files or records.

95.6.b. The Lottery shall only take physical possession of the information upon request by the West Virginia State Police to do so. If the Lottery takes physical possession of the information on behalf of the West Virginia State Police, then the physical possession of the information shall be considered to be information retained for the benefit of the West Virginia State Police for the purpose of the detection or investigation of a crime, and as such is exempt from discovery under the West Virginia Freedom of Information Act pursuant to West Virginia Code §29B-1-4(4). The West Virginia Lottery shall transfer complete physical possession of the requested information to the West Virginia State Police as soon as practicable.

95.7. Mail, E-mail or telephone contact with any player on the tracking list is not limited to a specific number of contacts per calendar month; however, no contacts of the limited gaming facility licensee may be made with any player who has requested in-writing that no contacts be made to him or her. The text of all of the contacts must be approved in advance by the Director of the West Virginia Lottery or his or her designee under the Director’s general statutory power to review advertising. Inducements offered to players on the tracking list shall be limited to cash, meals, beverages, travel, lodging, merchandise and free video lottery plays. At the player’s request, the licensee may substitute cash for a non-cash inducement only if the licensee has advertised the cash equivalent value of the non-cash inducement in advance to member players. Any player on a tracking list at the limited gaming facility licensee may request that the limited gaming facility licensee stop sending the player promotional offers, including free slot play, match play coupons, and coupons for amenities on the premise of the limited gaming facility licensee.

95.8. If the limited gaming facility licensee collects player tracking data, then it shall ensure that participating players may have all information concerning player identities, residency, play profiles, credits or points earned and such items, as collected by a tracking system, erased from a track’s database upon the request of the player or the request of his or her executor, administrator, guardian, committee, or attorney-in-fact. To this end, the limited gaming facility licensee employing a player tracking system shall operate a 24-hour-per-day “hot line” telephone answering system to accommodate a player’s decision to remove his or her name from the player list. The hot line may be staffed by personnel, or it may be operated as a monitored electronic system, or a combination of the two. The limited gaming facility licensee may require the player to sign a subsequent release form to assure that the player and not some other person was the person who made the telephone request. A record of the name removed shall be retained for West Virginia Lottery inspection. Furthermore, the information may not be used in any other way, or given or sold to any entity once player information is removed from the record. The player may not thereafter be re-enrolled unless the player requests re-enrollment in writing. The necessary exception to this general rule is the allowance of a grace period during which time mass mailing campaigns already in progress will be allowed to complete the cycle if there is no practical way to remove the requesting player’s name from the lists.

95.9. If the limited gaming facility licensee operates a player tracking system, then it shall prepare a detailed annual report of player data that has been removed from the record, including the reasons for the removals, which shall be available for inspection by the Director or his or her designee. This annual report shall be based on the calendar year and shall be completed and available for Lottery review at the licensed limited gaming facility not later than March 31st of the following year.

95.10. Any player disputes relating to the awarding of points, gifts or free plays shall be resolved by the licensed limited gaming facility independent of the Lottery. Any unearned credits awarded to a player in error by a player tracking system shall not constitute a charge against gross terminal income. The limited gaming facility licensee shall prepare and submit to the West Virginia Lottery a semi-annual report detailing player tracking complaints and their resolutions.

95.11. Any reports generated by a player tracking system shall not in any case form the basis for a claim by the limited gaming facility licensee against the West Virginia Lottery concerning calculations by the Lottery’s central control computer.

W. Va. Code R. § 179-4-96 Paper Currency

The Director may approve bill acceptor software changes. The Commission shall approve new bill acceptors (hardware/initial software).

W. Va. Code R. § 179-4-97 Approval of Non-Tested Video Lottery Terminals and Games for Specific Non-Gaming Purposes and For Limited Periods Of Time

For the limited purpose of allowing an un-tested video lottery terminal or video lottery game into West Virginia for non-gaming functions such as trade shows, demonstrations for the Lottery and like functions, the Director may approve the video lottery terminal or game. The time frame for the approval may not exceed thirty days.

W. Va. Code R. § 179-4-98 Local and Wide Area Intrastate Progressive Games

98.1. A progressive game may be offered to the public in four different ways:

98.1.a. It may be contained entirely within the memory of one video lottery terminal;

98.1.b. It may be linked with other like-programmed video lottery terminals at the limited gaming facility licensee;

98.1.c. It may be linked among the limited gaming facility licensee and one or more of West Virginia’s four pari-mutuel racetracks; or

98.1.d. It may link to the limited gaming facility licensee and to one or more similar venues in one or more states.

98.2. The limited gaming facility licensee may not conduct a progressive game without the expressed consent of the State Lottery Commission.

98.3. To accumulate the “jackpot” prize, the game is designed by its licensed manufacturer to pay part of the payout limit for the regular game being played and to accrue the residual part of the payout limit to pay a pari-mutuel jackpot prize. Example: “A ninety five percent (95%) payout game may be configured as ninety-one and one-half percent (91½%) payment for the regular game and three and one-half percent (3½%) reserved to fund the jackpot.”

98.4. As the jackpot builds, regular game prizes are paid to players who win lower prizes but who don’t win the jackpot. Once someone wins the jackpot prize, the jackpot starts to build again with a designed reset amount.

98.5. In a progressive game confined to a single video lottery terminal, a jackpot may be transferred to another progressive video lottery terminal at the same location in the event of the video lottery terminal malfunction or replacement of the video lottery terminal for some other good reason.

98.6. When the maximum jackpot limit is reached, the jackpot amount must be permitted to remain available until it is won by a player or transferred to another progressive link.

98.7. Records shall be maintained of the amounts shown on a jackpot meter or display. The records shall be retained for a period of three years unless written permission to destroy them earlier is obtained.

98.8. The video lottery terminal shall be linked to at least one meter showing the payoff or jackpot amount that is visible to all players who are playing a video lottery terminal that may potentially win the progressive amount. This meter is the progressive meter.

98.9. By an agreement executed among the limited gaming facility licensee and one or more licensed racetracks and approved by the Commission, groups of video lottery terminals at the limited gaming facility licensee and each licensed racetrack may be linked together with other such groups of terminals at the limited gaming facility licensee and all other licensed racetracks and the central monitoring system at the West Virginia Lottery to form a wide-area [multi-racetrack] progressive game with a single jackpot.

98.10. All video lottery terminals connected to a wide-area progressive system shall:

98.10.a. Require the same maximum wager; or

98.10.b. If requiring different maximum wagers, use the expected value of winning the top award by setting the offs of winning the top awards, within .1% of the target value, in proportion to the amount wagered for the eligible progressive combinations. The method of equalizing the expected value of winning the top award shall be conspicuously displayed on each terminal connected to the system.

98.11. The central monitoring system for the intrastate wide-area progressive game is the Lottery’s computer system located in the computer room of the West Virginia Lottery or its hot backup site. In all cases, the limited gaming facility licensee and the licensed racetracks will supply and test central monitoring system software to ensure that it is sufficient to control the wide-area games and to provide adequate and correct reports that are required by the West Virginia Lottery.

98.12. The following procedure outlines how a jackpot is to be verified:

98.12.a. When a jackpot is won, every participating licensee, upon its request, shall have the opportunity to inspect the video lottery terminal, the EPROM, the error events received by the central monitoring system and any other data which could reasonably be used to ascertain the validity of the jackpot.

98.12.b. The central monitoring system shall produce reports that will clearly demonstrate the method of arriving at the jackpot amount. This includes the credits contributed at the beginning of the polling cycle immediately following the previous jackpot win and all credits contributed up to, and including, the polling cycle, which includes the jackpot signal. Credits contributed to the system after the jackpot occurs in real-time, but during the same polling cycle are considered to have been contributed to the progressive amount prior to the jackpot win.

98.12.c. Jackpots above a set threshold amount may be paid in down-payment and balance installments to allow for transfer of contribution funds to the payer licensee as long as each video lottery terminal clearly displays the information related to short term, installment payments. The second or balance payment shall be paid to the winner not later than ten (10) state business days after the jackpot is won.

98.12.d. Every three seconds the protocol updates the terminal controller to determine the jackpot. Two or more jackpots that occur in the same three second window will be determined to have occurred simultaneously; and therefore, each “winner” shall receive his or her pro rata share of the amount shown on the meter. The time stamped on the ticket is irrelevant in determining a winner; the primary evidence of a winner or winners shall be the information contained on the host system. The possibility of jackpot sharing shall be clearly displayed on each progressive video lottery terminal.

98.13. The following outlines the accounting and reporting procedure for a jackpot:

98.13.a. In calculating gross terminal revenue for each track and the limited gaming facility, the Lottery shall deduct from each participating licensee, the amount of established percentage contribution multiplied by the daily amount played at the track and the limited gaming facility for each progressive game. The sum of the contributions to all local progressives and wide-area progressives in play at each racetrack will be a reduction from the reported gross terminal revenue. The contribution percentage may be different for each progressive. The West Virginia Lottery shall maintain a record of the contributions, by licensee, for each individual progressive.

98.13.b. The Lottery shall collect the daily contributions made to the wide-area jackpots through an electronic debit from the limited gaming facility licensee and each licensee racetrack as a part of the daily electronic funds transfer process. Contributions shall be posted to the limited gaming facility licensee’s general ledger account.

98.13.c. The West Virginia Lottery will calculate the percentage of contributions from the limited gaming facility licensee and each participating licensee racetrack for each instance in which a jackpot is won. This percentage will be used to determine the limited gaming facility licensee’s and each licensee racetrack’s portion of the reset value. The reset portion will be collected through an electronic debit from each participating racetrack and the limited gaming facility as a part of the daily sweep for the day the jackpot was won. Within eight (8) state business days the Lottery shall make an electronic fund transfer of the total jackpot amount to the limited gaming facility licensee or the licensee racetrack where the jackpot was won.

98.13.d. When the wide-area progressive game is operated by a permitted manufacturer rather than by the Lottery’s central monitoring computer system, the manufacturer’s monitoring system shall supply daily reports to the Lottery and/or its designee, that support and verify the economic activity of the games, indicating the amount of, and basis for, the current jackpot contribution by that racetrack or that limited gaming facility. The reports shall include, but not be limited to, a detailed report that lists for each video lottery terminal, summarized by location, the cash in, credits played, credits won and cash out amounts, and progressive contribution totals as those terms are commonly understood by the West Virginia Lottery and the participating licensees.

98.13.e. A copy of the journals prepared by the Lottery in compiling the wide-area contributions and calculation of the reset contribution shall be made available in electronic format to any licensee participating in a wide-area progressive system that requests a copy.

98.13.f. In the event a participating licensee ceases operations and a jackpot is awarded subsequent to the last day of the final month of the licensee’s operation, the licensee may not make claim to any part of its contributions to that particular progressive game prize pool.

W. Va. Code R. § 179-4-99 Who May Access Video Lottery Terminals

The only natural persons permitted to open the main access door to a video lottery terminal located at the licensed gaming facility and to access the interior of the video lottery terminal for any reason must either:

99.1. Have an occupational license for the purpose of employment at the licensed gaming facility as a video lottery service technician;

99.2. Have an occupational license for the purpose of employment at the licensed gaming facility as a floor attendant;

99.3. Is an authorized employee of the West Virginia Lottery; or

99.4. Is an authorized employee of the West Virginia Lottery’s independent testing laboratory.

W. Va. Code R. § 179-4-100 Promotional Credits

100.1. Promotional credits shall only be deducted from the gross terminal income when the Commission has approved, in advance, the total amount and conditions under which the promotional credits may be redeemed at the licensed limited gaming facility or at a licensed racetrack.

100.2. The “total amount” of promotional credits that the licensed gaming facility or a licensed racetrack may redeem shall be based on a maximum percentage of that gaming facility or racetrack’s credits played for the time period in the previous calendar year that corresponds with the time period for the proposed arrangement. For example: If Racetrack A proposed a maximum percentage of 3% for January, February, and March of 2010, then the maximum amount of promotional credits allowed to be redeemed by Racetrack A shall be 3% of that racetrack’s credits played for January, February, and March of 2009. In its first year of operation, the gaming facility’s proposed maximum percentage shall be based on the credits played of the licensed racetrack that generated the least credits played in the preceding calendar year.

100.3. The Commission may only approve the gaming facility or a racetrack’s proposal for a specific time frame.

100.3.a. Redeemable promotional credits may not be carried forward beyond the approved time frame.

100.3.b. Available redemption of promotional credits shall be ascribed to the amount of allowable promotional credits approved for the time frame in which the promotional credits were actually redeemed.

100.4. Any promotional credits redeemed beyond the amount allowed by the Commission under this rule are the responsibility of the gaming facility or racetrack, and shall not constitute a deduction from the gross terminal income.

100.5. The Director may recommend the total amount of promotional credits to be used by the gaming facility or a racetrack, and the time period in which that amount may be redeemed. The gaming facility or a racetrack may agree to the Director’s recommendation, or may present a separate proposal before the Commission. The Commission is not required to adopt the Director’s recommendation, or to accept a proposal made by the gaming facility or any racetrack, but instead it may approve its own proposed percentage and time frame.

100.6. The allowance of promotional credits to the gaming facility or a racetrack is a revocable privilege. The Commission may withdraw its approval of promotional credits for the gaming facility or a racetrack for reasons including, but not limited to:

100.6.a. Evidence of theft, fraud, fraudulent schemes, or other activity relating to promotional credits that would threaten the integrity of the game;

100.6.b. Evidence that use of approved promotional credits by the gaming facility or a racetrack would be against the public interest of the State of West Virginia;

100.6.c. A substantial malfunction with the promotional credits or the programs that enable the Lottery to accurately account for promotional credits; or

100.6.d. Actions on the part of the gaming facility or racetrack that seriously encumber the Lottery’s ability to implement, continue, or account for promotional credits.

PART 5. INTERNAL CONTROL PROCEDURES

W. Va. Code R. § 179-4-101 Minimum Internal Control Standards; Purpose

101.1. The Commission shall establish minimum internal control standards for the operation of West Virginia Lottery table games at the limited gaming facility, which shall apply to all persons and entities licensed under this Act, as well as all related parties.

101.2. The limited gaming facility licensee shall establish its own minimum internal control standards for the operation of West Virginia Lottery table games at the limited gaming facility, which must be approved by the Commission.

101.3. For each video lottery game, the supplier with a level one license that manufactured that video lottery game shall establish rules for that game, which must be approved by the Commission.

101.4. The procedures of the internal control system are designed to ensure all of the following:

101.4.a. That assets of the limited gaming facility licensee are safeguarded;

101.4.b. That the financial records of the limited gaming facility licensee are accurate and reliable;

101.4.c. That the transactions of the limited gaming facility licensee are performed only in accordance with the specific or general authorization of this part;

101.4.d. That the transactions are recorded adequately to permit the proper recording of the adjusted gross receipts, fees, and all applicable taxes;

101.4.e. That accountability for assets is maintained in accordance with generally accepted accounting principles;

101.4.f. That only authorized personnel have access to assets;

101.4.g. That recorded accountability for assets is compared with actual assets at reasonable intervals and appropriate action is taken with respect to any discrepancies;

101.4.h. That the internal control functions, duties, and responsibilities are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel and that no employee of the limited gaming facility licensee is in a position to perpetuate and conceal errors or irregularities in the normal course of the employee's duties; and

101.4.i. That gaming is conducted with integrity and in accordance with the Act and this rule.

W. Va. Code R. § 179-4-102 Commission Approval of Internal Control System

102.1. The limited gaming facility’s internal control system must meet the provisions of the Commission’s minimum internal control standards.

102.2. limited gaming facility licensee shall describe, in a manner that the Commission may approve or require, its administrative and accounting procedures in detail in a written system of internal control. A written system of internal controls shall include a detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of this rule. Additionally, the description shall include a separate section for all of the following:

102.2.a. An organizational chart depicting appropriate segregation of internal control functions and responsibilities;

102.2.b. A description of the duties and responsibilities of each position shown on the organizational chart;

102.2.c. A detailed, narrative description of the administrative and accounting procedures designed to satisfy the requirements of this rule; and

102.2.d. A separate section for all of the following:

102.2.d.1. The physical characteristics of the drop box and tip box;

102.2.d.2. The transportation of drop and tip boxes to and from gaming tables;

102.2.d.3. The procedures for table inventories;

102.2.d.4. The procedures for opening and closing gaming tables;

102.2.d.5. The procedures for fills and credits;

102.2.d.6. The procedures for accepting and reporting tips and gratuities;

102.2.d.7. The procedures for transporting chips and tokens to and from gaming tables;

102.2.d.8. The procedures for shift changes at gaming tables;

102.2.d.9. The drop bucket characteristics;

102.2.d.10. The transportation of drop buckets to and from video lottery terminals;

102.2.d.11. The procedures for chip and token purchases;

102.2.d.12. The procedures for hopper fills;

102.2.d.13. The procedures for the transportation of video lottery terminals;

102.2.d.14. The procedures for hand-paid jackpots;

102.2.d.15. The layout and physical characteristics of the cashier's cage;

102.2.d.16. The procedures for accounting controls;

102.2.d.17. The procedures for the exchange of checks submitted by gaming patrons;

102.2.d.18. The procedures for credit card and debit card transactions;

102.2.d.19. The procedures for the acceptance, accounting for and redemption of patron's cash deposits;

102.2.d.20. The procedures for the control of coupon redemption and other complimentary distribution programs;

102.2.d.21. The procedures for federal cash transactions reporting; and

102.2.d.22. The procedures for computer backups and assuring the retention of financial and gambling operation; and

102.2.e. Other items as the Commission may require.

102.3. Not less than 90 days before the gambling operation commences, unless otherwise directed by the Commission, the limited gaming facility licensee shall submit, to the Commission, a written description of its internal control system that is designed to satisfy the requirements of subsections 102.1 and 102.2 of this rule. If the written internal control system is the initial submission to the Commission, then a letter shall be submitted from an independent certified public accountant selected by the applicant or licensee and approved by the Commission stating that the licensee's written system has been reviewed by the accountant and is in compliance with the requirements of subsections 102.1 and 102.2 of this rule. The Commission shall review each submission required by this subsection of this rule and shall determine whether it conforms to the requirements of subsections 102.1 and 102.2 of this rule and whether the system submitted provides adequate and effective controls for the operations of the licensee. If the Commission finds any insufficiencies, then the Commission shall specify the insufficiencies, in writing, and submit the written insufficiencies to the licensee. The limited gaming facility licensee shall make appropriate alterations. The limited gaming facility shall not commence gambling operations until a system of internal controls is approved.

W. Va. Code R. § 179-4-103 Amendments to Internal Control Procedures

All of the following provisions apply to amendments to the internal control procedures:

103.1. Unless otherwise provided by the Commission, amendments to any portion of the internal control procedures shall be submitted to the Commission not less than 30 days before the amended internal control procedure is used;

103.2. The Commission shall vote to approve the amendment to the internal control procedure in total or in part; and

103.3. An amendment to internal control procedures may not be used by the limited gaming facility licensee unless the amendment to the internal control procedure has been approved by a vote of the Commission;

W. Va. Code R. § 179-4-104 Internal Control Emergency Procedures

104.1. In the event of an emergency, the limited gaming facility licensee may temporarily amend an internal control procedure. The Director must concur that an emergency exists before the limited gaming facility licensee may amend an internal control procedure.

104.2. The limited gaming facility licensee shall report any emergency temporary amendment of the internal control procedures to the Director or his or her designee immediately.

104.3. The limited gaming facility licensee shall submit a description of the emergency temporary amendment of the internal control procedures and the circumstances necessitating the emergency amendment to the Commission promptly within five calendar days of the amendment.

104.4. As soon as the circumstances necessitating the emergency temporary amendment to the internal control procedures abate, the limited gaming facility licensee shall resume compliance with the approved internal control procedures. §179-4-105 through 110. [Reserved]

PART 6. SECURITY AND SURVEILLANCE

W. Va. Code R. § 179-4-111 Surveillance and Recording Systems; Staffing; Installation of Different or New Types of Audio or Visual Recording or Surveillance Technology

111.1. The limited gaming facility licensee shall require that the casino surveillance room be staffed by an occupational licensee employed to work in the surveillance department at all times that any of the following occur:

111.1.a. Gaming;

111.1.b. The drop box collection process;

111.1.c. The hard count process;

111.1.d. The currency collection process;

111.1.e. The soft count process;

111.1.f. The temporary holding cell is occupied;

111.1.g. Armored car cash deliveries and pickups; and

111.1.h. Other times considered necessary by the Commission to ensure compliance with the Act and this rule.

111.2. Subject to approval of the Commission, the limited gaming facility licensee may install different or new types of audio or visual recording or surveillance technology in the casino and related facilities for purposes of compliance with the Act or this rule.

W. Va. Code R. § 179-4-112 Surveillance and Commission Surveillance Room Specifications

112.1. There shall be recording and monitoring rooms in the limited gaming facility. The room for the exclusive use of the Commission shall be designated the "Commission Surveillance Room." The room for the use of the surveillance employees of the gambling operation shall be designated the "Casino Surveillance Room." The casino security office shall be separate from the casino surveillance room and be located in a different area of the building.

112.2. Each surveillance room shall:

112.2.a. Be located out of the general view of patrons and non-surveillance employees; and

112.2.b. Have access limited to surveillance room personnel and persons with a legitimate need to enter the area.

112.3. Within the suite of offices set aside by the limited gaming facility licensee for the use of Commission personnel, one of the rooms shall be equipped with surveillance monitoring equipment that will allow representatives of the Commission to view any camera scene the casino monitors without intervention or assistance of casino personnel.

W. Va. Code R. § 179-4-113 [Reserved]

W. Va. Code R. § 179-4-114 Secured Delivery Station Specifications

The limited gaming facility licensee shall provide a secure structure designated the "secured delivery station" that shall be covertly surveilled and monitored during all hours of operation.

W. Va. Code R. § 179-4-115 Required Surveillance Equipment

115.1. The limited gaming facility licensee shall install a closed circuit television system in accordance with this rule.

115.2. The casino shall have a sufficient number of monitors in the surveillance rooms to adequately protect patrons and ensure the integrity of casino gaming. The Commission surveillance room and the casino surveillance room shall have appropriate switching capabilities to ensure all surveillance cameras are accessible to monitors in each room, except for the camera and monitor that allow the Commission, to monitor employees in the casino surveillance room. The equipment in the Commission surveillance room shall be able to monitor and record, without being overridden, anything visible by monitor to employees of the limited gaming facility licensee.

115.3. A table game shall have cameras which continuously monitor and record all games during all hours of casino operations.

115.4. The Commission surveillance room shall have a color television monitoring system which is in compliance with the requirements for surveillance equipment in this rule and which is capable of monitoring employees in the casino surveillance room.

115.5. The equipment used in the closed circuit television system shall be in compliance with all of the following requirements:

115.5.a. A color television camera shall provide resolution for observing chips, dice, playing cards and positions on the roulette wheel;:

115.5.b. The cameras shall be equipped with lenses of sufficient magnification capabilities to allow the operator to clearly distinguish the value of all of the following:

115.5.b.1. Chips;

115.5.b.2. Dice;

115.5.b.3. Tokens;

115.5.b.4. Playing cards; and

115.5.b.5. Positions on the roulette wheel.

115.5.c. Each monitor shall have a date and time generator that is synchronized to a central clock which can be displayed on any of the monitors while recording on videotape, video pictures, or other means of electronic recording.

115.5.d. There shall be sufficient recorders to allow for the simultaneous recording of the coverage described in this rule, off-line playback, and duplication capabilities.

115.5.e. Surveillance equipment must have a backup power supply so that the generator remains accurate despite power interruptions.

W. Va. Code R. § 179-4-116 Closed Circuit Television Required Surveillance

116.1. The surveillance closed circuit television system shall be capable of covertly monitoring activities on the casino floor and related areas, including patron parking areas and patron passages leading to and from the casino operation and gambling operation areas, as required in this rule.

116.2. The Commission may require additional areas be monitored to ensure compliance with the Act and this rule and to ensure the safety of patrons and the integrity of gambling.

W. Va. Code R. § 179-4-117 Closed Circuit Television Surveillance System Coverage

117.1. All of the following areas of the limited gaming facility shall be covertly monitored in accordance with this rule:

117.1.a. Live gaming devices;

117.1.b. Pits;

117.1.c. Video lottery terminal areas;

117.1.d. The main bank;

117.1.e. The soft count room;

117.1.f. Occupied temporary holding facilities; and

117.1.g. The secured delivery station.

117.2. The surveillance system shall provide an overall view of live table games that permits clear identifying of all of the following:

117.2.a. Dealers;

117.2.b. Patrons;

117.2.c. The hands of all participants;

117.2.d. Facial views of all participants;

117.2.e. All pit personnel; and

117.2.f. The activities of all pit personnel;

117.3. The playing surface of the tables shall be viewed with sufficient clarity to determine all of the following:

117.3.a. All wagers;

117.3.b. Card values; and

117.3.c. Game results.

117.4. The playing surface of the tables shall be viewed with sufficient clarity to clearly observe, in detail, all of the following:

117.4.a. Chip trays;

117.4.b. Token holders;

117.4.c. Cash receptacles;

117.4.d. Tip boxes;

117.4.e. Dice;

117.4.f. Shuffle machines;

117.4.g. Card shoes; and

117.4.h. The Lottery-specified identifier symbol.

117.5. Video lottery terminal surveillance systems shall be capable of providing all of the following:

117.5.a. A reasonably clear view of all gaming patrons;

117.5.b. A facial view of all gaming patrons with sufficient clarity to allow identification of the patron;

117.5.c. A view of the video lottery terminal with sufficient clarity to observe the results of the game;

117.5.d. An overall view of the areas around the video lottery terminal; and

117.5.e. A view of bill validators with sufficient clarity to determine the bill value and the amount of credit obtained;

117.6. The surveillance system shall be capable of providing a reasonably clear view of all of the following:

117.6.a. Activity by players and employees, alone or in concert, that may constitute cheating or stealing;

117.6.b. The failure of employees to follow proper procedures and internal controls;

117.6.c. The treatment of disorderly persons;

117.6.d. The treatment of persons on the exclusion list;

117.6.e. Arrests and evictions;

117.6.f. The treatment of ill or injured patrons;

117.6.g. Movement of cash, tokens, cards, chips, or dice on the casino floor by the licensed limited gaming facility. Upon notification of intended movement of any cash, tokens, cards, chips, or dice, both of the following provisions shall be complied with:

117.6.g.1. The surveillance system personnel shall record the notification in the Activities log; and

117.6.g.2. During the course of routine surveillance, the progress of the movement shall be monitored to ensure that all procedures and internal controls are followed.

117.7. Areas where any of the following items are stored shall be monitored by a dedicated camera capable of continuous recording or motion activation:

117.7.a. Cash;

117.7.b. Tokens;

117.7.c. Chips;

117.7.d. Cards;

117.7.e. Dice; and

117.7.f. Drop buckets containing tokens or any monetary equivalent.

117.8. Areas where any of the following items are transported or stored shall be monitored by a dedicated camera capable of continuous recording or motion activation:

117.8.a. Uncounted tokens;

117.8.b. Chips;

117.8.c. Cash; and

117.8.d. Cash equivalents.

W. Va. Code R. § 179-4-118 Closed Circuit Television Surveillance System Recording Requirements

118.1. The surveillance shall visually record any activity considered necessary by the Commission to ensure compliance with the Act and to ensure protection of the public and the integrity of gaming. These activities shall be set forth in an interpretive rule of the Commission.

118.2. All soft count activities shall be both audibly and visually recorded.

W. Va. Code R. § 179-4-119 Retention of Recorded Activities

119.1. A recording of routine activity shall contain a date and time reading and shall be retained for not less than fourteen days for table games and for not less than thirty days for video lottery terminals.

119.2. An original recording of a violation of internal controls or criminal activity shall immediately be provided to the Commission. A copy of the recording shall be retained for not less than 14 days after the original is provided to the Commission. The recording shall contain a date and time reading and be marked with all of the following:

119.2.a. The date and time the recording was made;

119.2.b. The identity of the employee responsible for the monitoring; and

119.2.c. The identity of the employee who removed the recording from the recorder.

W. Va. Code R. § 179-4-120 Segregated and Secured Telephone Communication

The limited gaming facility licensee shall provide, in the West Virginia Lottery’s surveillance room and in the West Virginia Lottery casino office, a segregated and secured telephone communications system for use by the Commission and the West Virginia State Police.

W. Va. Code R. § 179-4-121 Daily Surveillance Logs; Visitors; Logs

121.1. The limited gaming facility licensee shall maintain a daily surveillance log and a log of visitors to the surveillance room. A daily surveillance log shall:

121.1.a. Be continuously maintained by surveillance personnel;

121.1.b. Be changed with each shift change of personnel;

121.1.c. Be chronological;

121.1.d. Contain, at a minimum, all of the following information:

121.1.d.1. The date and time of each entry;

121.1.d.2. The identity of the employee making the entry.;

121.1.d.3. A summary of the Activity recorded;

121.1.d.4. A detailed statement of whether the Activity was monitored; and

121.1.d.5. A detailed statement concerning the disposition of the tape, if recorded.

121.1.e. Unless otherwise directed by the Commission, include entries for all of the following information:

121.1.e.1. The identity of the surveillance room personnel each time they enter or depart the surveillance room;

121.1.e.2. The notification of any maintenance or repair of any gaming device or money handling equipment;

121.1.e.3. Live table drop box exchanges;

121.1.e.4. Video lottery terminal drop bucket exchanges;

121.1.e.5. Transfers of cash, chips, tokens, cards, or dice;

121.1.e.6. The beginning, end, and any interruptions of the soft count;

121.1.e.7. The beginning, end, and any interruptions of the hard count;

121.1.e.8. An observed violation of this rule or of the licensee's internal control procedures;

121.1.e.9. An observed criminal activity;

121.1.e.10. A pertinent telephone call;

121.1.e.11. Pertinent radio transmission;

121.1.e.12. Malfunction or repair of surveillance equipment;

121.1.e.13. Any emergency activity;

121.1.e.14. Surveillance conducted on anyone or any activity that appears unusual, irregular, or illegal or appears to violate the Act or this rule;

121.1.e.15. Surveillance conducted at the request of the limited gaming facility licensee, an employee of the limited gaming facility licensee, a Commission employee, or the West Virginia State Police;

121.1.e.16. Other notations considered necessary by surveillance room personnel or the Commission to ensure compliance with the Act and this rule; and

121.1.f. Be retained for not less than 90 days.

121.2. A visitors log shall:

121.2.a. Include the signature of anyone other than surveillance room personnel on duty, who accesses the surveillance room;

121.2.b. Identify all visitors;

121.2.c. State the department or agency the visitor represents;

121.2.d. State the reason for access to the room;

121.2.e. Provide the date and time of arrival and departure from the room; and

121.2.f. Be retained not less than 90 days.

121.3. All surveillance room tapes, logs, and reports shall:

121.3.a. Be retained in a manner to allow them to be easily retrieved by any of the following:

121.3.a.1. Date;

121.3.a.2. Location of activity; or

121.3.a.3. Type of activity; and

121.3.b. Be furnished to the Commission or personnel of the West Virginia State Police assigned to the Commission immediately upon demand. The limited gaming facility licensee may retain a copy of any tape, log, or report at the licensee's own expense.

W. Va. Code R. § 179-4-122 Commission’s Casino Premises Office

122.1. The limited gaming facility licensee shall provide free of any charge a secure and segregated suite at the casino premises for the exclusive use of the Commission. The room shall be in addition to the Commission surveillance room and shall be a size approved by the Commission based on the casino’s size and Commission staffing needs within the casino. The Commission casino premises office shall have a secure telephone line that has a different number than the telephone line of the limited gaming facility. The secure telephone line shall provide not less than two extensions and direct emergency lines as described in this rule. The limited gaming facility licensee shall provide parking in proximity to the casino for use of the Commission on a basis consistent with parking made available to supervisory personnel of the limited gaming facility. The actual number of spaces shall be determined by the Commission.

122.2. The live feeds from all surveillance cameras in the limited gaming facility shall be sent to the Commission surveillance office. The Commissions surveillance office shall be able to use the dual feed without intervention of the limited gaming facility surveillance office.

W. Va. Code R. § 179-4-123 Surveillance Equipment; Maintenance and Malfunctions

123.1. The limited gaming facility licensee shall inform an on-site Commission representative if surveillance equipment is expected to be out of service for more than 30 minutes due to maintenance or malfunction.

123.2. Unless otherwise directed by the Commission, the limited gaming facility licensee shall replace equipment expected to be out of service for more than 30 minutes with alternate camera coverage or, at the discretion of the Commission, shall cover the equipment with live surveillance.

123.3. The Commission will periodically inspect the surveillance room to ensure all of the following:

123.3.a. All of the equipment is working properly;

123.3.b. Camera views are not blocked or distorted by improper lighting or obstructions; and

123.3.c. All required surveillance capabilities are in place.

W. Va. Code R. § 179-4-124 Emergency Procedures

124.1. Before commencing casino gambling operations, the licensee or applicant shall submit, to the Commission, the West Virginia State Police and the fire department in closest proximity to the limited gaming facility, an emergency action plan for the response to, and management of, fire and medical emergencies, terrorist activities and natural disasters in all areas of the casino. The plan shall include procedures for notification of the West Virginia Lottery security division, the West Virginia State Police, and/or fire or emergency medical personnel, and procedures for expedited and unimpeded access of the personnel into all areas of the limited gaming facility in the event of a fire, medical, or other emergency. The plan shall also include an inspection schedule allowing the West Virginia lottery security division, the West Virginia State Police and local fire department personnel to inspect all areas of the casino for compliance with applicable fire and emergency laws, codes, and ordinances.

124.2. In an emergency, the safety of patrons and personnel is the first priority.

124.3. In an emergency if sufficient time exists, the limited gaming facility licensee shall:

124.3.a. Secure all records;

124.3.b. Replace all recordings;

124.3.c. Set recorders for slow speeds;

124.3.d. Activate dedicated cameras and recording devices; and

124.3.e. Set all other available cameras and recorders.

124.4. A licensee shall place cameras and recording devices in areas where unusual occurrences have been observed or where reason exists to believe unusual occurrences will occur.

W. Va. Code R. § 179-4-125 Incident Training Required

125.1. The limited gaming facility licensee shall require licensed casino surveillance and security personnel to undergo annual incident training.

125.2. The training shall be geared to prepare casino surveillance and security personnel in the proper procedures to follow in the event of a fire, robbery attempt, bomb threat, terrorist activity, medical emergency, or other major occurrence.

125.3. A limited gaming facility licensee’s incident training may be observed or joined by the West Virginia Lottery, the West Virginia State Police, and/or the local fire department.

W. Va. Code R. § 179-4-126 Surveillance Plan

126.1. The limited gaming facility licensee shall submit a surveillance plan to the Commission not less than sixty days before the commencement of gambling operations. The plan shall include both of the following:

126.1.a. A floor plan that shows the placement of all surveillance equipment; and

126.1.b. A detailed description of the surveillance system and its equipment.

126.2. The limited gaming facility licensee shall resubmit the surveillance plan with alterations required by the Director not less than 30 days before the institution of the alterations. Alterations recommended by Commission personnel may be implemented as agreed to by the licensee and the Commission.

126.3. The limited gaming facility licensee shall submit all of the following alteration information:

126.3.a. Details of the change, including the floor plan;

126.3.b. The reason for the change; and

126.3.c. Expected results of the change.

126.4. The limited gaming facility licensee shall submit the surveillance plan to the Commission for approval. The limited gaming facility licensee can commence operations if a surveillance plan is approved. The Commission shall advise the limited gaming facility licensee of its decision in writing. The limited gaming facility licensee shall not commence operations or institute alterations if the surveillance plan or alterations are disapproved.

W. Va. Code R. § 179-4-127 Surveillance of Employees

An employee whose duties will be monitored in accordance with this rule shall be informed before commencing his or her duties that his or her surveillance is a requirement of employment.

W. Va. Code R. § 179-4-128 Communications Equipment

The limited gaming facility licensee shall assure that portable telephone or 2-way radio communication equipment, or both, may be operated from all areas of the limited gaming facility including, but not limited to, secure or underground areas. §179-4-129 and 130. [Reserved].

PART 7. SEIZURE, FORFEITURE AND DISCIPLINARY HEARINGS

W. Va. Code R. § 179-4-131 Commission License as Revocable Privilege; Reasons for Investigation of, or Disciplinary Action Against, Licensee; Hearing Procedure

131.1. A West Virginia Lottery Commission licensee has a continuing duty to maintain suitability for licensure. A Commission license does not create a property right, but is a revocable privilege contingent upon continuing suitability for licensure.

131.2. The Commission may initiate an investigation or a disciplinary action, or both, against a licensee if the Commission has reason to believe that at least one of the following provisions applies:

131.2.a. The licensee is not maintaining suitability for licensure;

131.2.b. The licensee is not complying with licensure conditions; or

131.2.c. The licensee is not complying with the Act or this rule.

131.3. The Commission shall appoint a Commission member or an administrative hearing officer to conduct a hearing after a complaint has been filed and shall generally follow the West Virginia Lottery’s Administrative Appeal Procedures rule, 179 CSR 2. The hearing officer may provide the Commission with proposed findings of facts and conclusions of law. The Commission is under no obligation to adopt the hearing officer’s recommendations, however it may do so, either in part or in whole.

131.4. The person demanding a hearing shall give security for the cost of the hearing in the amount of three hundred dollars in the form of a certified check, a cashier’s check or a money order, which shall accompany the petition demanding a hearing. The fee of three hundred dollars may be waived by the Commission for good cause shown. The Commission may order the amount of the security to be changed to another amount to reflect the actual costs of holding appeal hearings.

W. Va. Code R. § 179-4-132 Actions Available to Hearing Officer and Commission

132.1. The Commission may impose any of the following remedies regarding seizure and destruction of one or more video lottery terminals under W. Va. Code §29-22A-5(f):

132.1.a. Seize and destroy any video lottery terminals that are not in compliance with section six [W. Va. Code §29-22A-6] of the Racetrack Video Lottery Act; or

132.1.b. Impose any appropriate action set forth in subdivision (2) of this subsection on a person who possesses any gaming device that is not in compliance with the Act or this rule.

132.2. The Commission may impose any of the following remedies in a disciplinary action against a licensee:

132.2.a. Suspend the license of the limited gaming facility;

132.2.b. Suspend the license of the supplier of the video lottery terminal; or

132.2.c. Impose a civil penalty of up to $10,000.00 against the limited gaming facility licensee and/or the licensed supplier of the non-complying video lottery terminal.

W. Va. Code R. § 179-4-133 Special Proceedings

133.1. The Commission may suspend the license issued to the limited gaming facility without notice or hearing if the Commission determines that the safety or health of patrons or employees would be threatened by the continued operation of the casino or that the Action is necessary for the immediate preservation of the integrity of casino gaming, the West Virginia Lottery, public peace, health, safety, morals, good order, or general welfare.

133.2. If the Commission determines that an emergency exists, then the Commission may suspend the limited gaming facility's license, a supplier's license, or an occupational license after a hearing conducted by a hearing officer. The resulting order shall include a brief statement of the facts and the law that justifies the Commission's decision to take the specific action.

133.3. The suspension of the limited gaming facility's license may continue until the Commission determines that the cause for the suspension of the license has been abated.

133.4. The Commission may revoke the limited gaming facility's license if the Commission determines that the licensee has not made satisfactory progress toward abating the hazard to the safety or health of patrons or employees within a reasonable period of time. §179-4-134 and 135. [Reserved].

PART 8. ACCOUNTING RECORDS AND PROCEDURES

W. Va. Code R. § 179-4-136 Ownership Records

The limited gaming facility licensee shall keep and provide to the Commission upon request, all of the following records:

136.1. If the limited gaming facility or any controlling person of the licensee, or an applicant for the limited gaming facility license, is a publicly traded corporation, a list of those executive officers of the publicly traded corporation whose ongoing and regular responsibilities relate or are expected to relate directly to the operation or oversight of the gaming facility.

136.2. If the limited gaming facility licensee is a corporation, but is not a publicly traded corporation, then all of the following records:

136.2.a. A certified copy of the articles of incorporation and any amendments;

136.2.b. A certified copy of the bylaws and any amendments;

136.2.c. A certificate of good standing from the state of its incorporation;

136.2.d. If the corporation is operating as a foreign corporation in West Virginia, a certificate of authority from the West Virginia Secretary of State’s Office authorizing it to do business in West Virginia;

136.2.e. A list of all current and former officers and directors for a period of two years before West Virginia licensure;

136.2.f. A certified copy of minutes of all meetings of the stockholders and directors for a period of two years before West Virginia licensure;

136.2.g. A current list of all current stockholders, including the names of beneficial owners of shares held in street or other names;

136.2.h. The name of a company and a current list of all stockholders in the company, including the names of beneficial owners of shares held in street or other names, in which the corporation has a direct, indirect, or attributed interest;

136.2.i. A copy of the stock certificate ledger or its electronic equivalent;

136.2.j. A complete record of all transfers of stock to the extent available to the licensee or applicant;

36.2.k. A schedule of amounts paid to the corporation for the issuance of stock and other capital contributions and the dates the amounts were paid;

136.2.l. A schedule of all dividends distributed by the corporation; and

136.2.m. A schedule of all direct or indirect salaries, wages, and other remuneration, including prerequisites, paid during the calendar or fiscal year by the corporation to all officers, directors, and stockholders that have an ownership interest, at any time during the calendar or fiscal year, that is five percent or more of the outstanding capital stock of any class of stock;

136.3. If the limited gaming facility licensee is a limited liability company, then all of the following records:

136.3.a. A certified copy of the articles of organization;

136.3.b. A certified copy of the operating agreement;

136.3.c. A list of all current and former managers, including names and addresses;

136.3.d. A list of the members, including all of the following information:

136.3.d.1. Names;

136.3.d.2. Addresses;

136.3.d.3. The percentage of interest in net assets, profits, and distributions of cash held or attributable to each;

136.3.d.4. The amount and date of each capital contribution of each member;

136.3.d.5. The date the interest was acquired; and

136.3.d.6. The method of determining a member's interest;

136.3.e. A schedule of all withdrawals of company funds or assets by members;

136.3.f. A schedule of direct or indirect salaries, wages, and other remuneration, including prerequisites, paid to each member during the calendar or fiscal year;

136.3.g. A copy of the membership ledger or its electronic equivalent;

136.3.h. A complete record of all transfers of membership interests; and

136.3.i. A schedule of amounts paid to the company for the issuance of membership interests and other capital contributions and the dates the amounts were paid;

136.4. If the limited gaming facility licensee is a partnership, then all of the following records:

136.4.a. A certified copy of the partnership agreement;

136.4.b. A certificate of limited partnership of its domicile;

136.4.c. A list of the partners, including all of the following information:

136.4.c.1. Names;

136.4.c.2. Addresses;

136.4.c.3. The percentage of interest in net assets, profits, and losses held by each partner;

136.4.c.4. The amount and date of each capital contribution of each partner; and

136.4.c.5. The date the interest was acquired.

136.4.c.6. The description of the form of the person's partnership interest, for example, limited partner.

136.4.d. A schedule of all withdrawals of partnership funds or assets.; and

136.4.e. A schedule of direct or indirect salaries, wages, and other remuneration, including prerequisites, paid to each partner during the calendar or fiscal year; and

136.5. If the limited gaming facility licensee is a sole proprietorship, then all of the following records:

136.5.a. A schedule showing the name and address of the proprietor and the amount and date of his or her original investment;

136.5.b. A schedule of the dates and amounts of subsequent additions to the original investment and any withdrawals; and

136.5.c. A schedule of direct or indirect salaries, wages, and other remuneration, including prerequisites, paid to the proprietor during the calendar or fiscal year.

W. Va. Code R. § 179-4-137 Accounting Records

137.1. The limited gaming facility licensee shall maintain complete, accurate, legible, and permanent records of all transactions pertaining to its revenues and expenses, assets, liabilities, and equity in conformance with generally accepted accounting principles. The Commission may direct the limited gaming facility licensee to alter the manner in which the records are maintained if the licensee's records are not in accordance with generally accepted accounting principles or if the records are not in sufficient detail.

137.2. The accounting records shall be maintained using a double entry system of accounting with transactions recorded on the accrual basis and supported by detailed subsidiary records.

137.3. The detailed subsidiary records shall include, at a minimum, all of the following:

137.3.a. Detailed general ledger accounts identifying all revenue, expenses, assets, liabilities, and equity for the limited gaming facility licensee;

137.3.b. A record of all investments, advances, loans, and accounts receivable balances due the establishment;

137.3.c. A record of all loans and other accounts payable by the limited gaming facility licensee;

137.3.d. A record of all accounts receivable written off as uncollectible by the limited gaming facility licensee;

137.3.e. Journal entries prepared by the limited gaming facility licensee;

137.3.f. Tax work papers used in preparation of any state or federal tax return;

137.3.g. Records that identify table drop, table win, and percentage of table win to table drop for each live game and records accumulated for each type of live game by shift or by another accounting period approved by the Director;

137.3.h. Records supporting the accumulation of the costs for complimentary services and items. A complimentary service or item provided to patrons in the normal course of a casino business shall be recorded at an amount based upon the full retail price normally charged for the service or item;

137.3.i. Records that identify the purchase, receipt, and destruction of gaming chips and tokens from all sources, including receipts from bill validators;

137.3.j. Records required to fully comply with all the federal financial record-keeping requirements enumerated in 31 Code of Federal Regulations, part 103;

137.3.k. Records required by the limited gaming facility licensee's internal control system;

137.3.l. Work papers supporting the daily reconciliation of cash accountability; and

137.3.m. Other records that the Commission requires to be maintained.

137.4. If the limited gaming facility licensee fails to maintain the records used by it to calculate the gross revenues from the operation of limited gaming facility table games, then the Commission may compute and determine the amount upon the basis of an audit conducted by the Commission using available information.

W. Va. Code R. § 179-4-138 Standard Financial and Statistical Records

138.1. The limited gaming facility licensee, unless specifically exempted by the Commission, shall file monthly, quarterly, and annual reports of financial and statistical data in a format prescribed by the Commission. Reports prepared on Microsoft Word® and Microsoft Excel® may be emailed to casinoreports@wvlottery.com to comply with the reporting requirements of this rule. As technology changes and improves, the Commission may by interpretive rule specify another means of reporting.

138.2. The Commission shall periodically prescribe a set of standard reporting forms and instructions to be used in filing monthly, quarterly, and annual reports.

138.3. The Commission shall review and modify or approve each limited gaming facility’s uniform chart of accounts, including account classifications, in order to ensure consistency, comparability, and appropriate disclosure of financial information. The prescribed chart of accounts is the minimum level of detail to be maintained for each accounting classification by the limited gaming facility licensee.

138.4. Annual reports shall be based on the licensee’s fiscal year. Quarterly reports shall be based on the licensee’s fiscal quarters.

138.5. Monthly reports shall be based on calendar months unless another accounting period is approved by the Commission. Quarterly and monthly reports shall contain a cumulative year-to-date column in this rule to facilitate analysis.

138.6. The reports required to be filed in this rule shall be sworn to and signed by the following entities:

138.6.a. If the reports are from a corporation, then the chief executive officer and one of the following individuals:

138.6.a.1. The chief Financial Officer;

138.6.a.2. The treasurer; or

138.6.a.3. The comptroller.

138.6.b. If the reports are from a limited liability company, then by a manager;

138.6.c. If the reports are from a partnership, then by a general partner and financial director;

138.6.d. If the reports are from a sole proprietorship, then by the proprietor; or

138.6.e. If the reports are from any other form of business association, then by the chief executive officer.

138.7. A report shall be addressed to the Commission and postmarked not later than the required filing date. The required filing dates are as follows:

138.7.a. A monthly report is due on the thirteenth calendar day of the following month;

138.7.b. A quarterly report is due on the fifteenth calendar day of the second month following the end of the quarter; and

138.7.c. An annual report is due on the fifteenth calendar day of the third month following the end of the year.

138.8. If there is a termination or suspension of the limited gaming facility license, a voluntary or involuntary change in the company, or a material change in ownership, then the limited gaming facility licensee shall file an interim quarterly report as of the date the event occurs, unless the event has already been disclosed in a regular quarterly report or unless exempted by the Commission. The filing date shall be 30 calendar days after the date the event occurs.

138.9. An adjustment that results from the quarterly and annual audits shall be recorded in the accounting records. If an adjustment was not reflected in the limited gaming facility licensee's quarterly or annual reports and if the West Virginia Lottery concludes that the adjustment is significant, then it may require a revised report from the limited gaming facility licensee. The revised filing is due within 30 calendar days after written notification to the limited gaming facility licensee.

W. Va. Code R. § 179-4-139 Special Audits and Licensee Annual Compliance Reports

139.1. To assure the integrity of gaming and compliance with the Act and this rule, the Commission may require a special audit of the limited gaming facility licensee to be conducted by West Virginia Lottery personnel or an independent certified public accountant who is, or whose firm is, licensed in West Virginia, or by a nationally recognized accounting firm. The Commission shall establish the scope, procedures and reporting requirements of a special audit.

139.2. The limited gaming facility licensee shall prepare and submit annual compliance reports in a manner and form prescribed by the Commission. The annual compliance report shall address all of the following areas:

139.2.a. Compliance with procedures to ascertain that gross receipts are determined and state taxes paid, in conformity with the Act and this rule;

139.2.b. Compliance with Commission-approved internal control procedures, accounting procedures, credit procedures, dispute procedures, and Commission-imposed security and safety requirements;

139.2.c. A material deviation from the limited gaming facility licensee's approved internal control procedures, accounting procedures, credit and dispute procedures, and Commission-imposed security and safety requirements;

139.2.d. Corrective action taken by the licensee to resolve deficiencies observed in subdivisions (a) to (c) of this subsection; and

139.2.e. Other matters required by the Commission to measure the licensee's compliance with the Act and this rule.

139.3. The limited gaming facility licensee who is a public reporting company under the Securities and Exchange Act of 1934 shall submit a copy of all reports required by the Securities and Exchange Commission to the Director in a format prescribed by the Commission. The reports shall be due on the same filing dates as required by the Securities and Exchange Commission.

139.4. The limited gaming facility licensee shall bear the expense of preparing an audit which is required by this rule and which is performed by an independent certified public accountant. Qualified personnel of the limited gaming facility licensee shall prepare compliance reports and the limited gaming facility licensee shall bear the expense of preparing the compliance reports.

139.5. The reporting year-end of the holder of the limited gaming facility license shall be the licensee’s fiscal year.

W. Va. Code R. § 179-4-140 Accounting Controls Within the Cashier's Cage

140.1. The assets for which a cashier is responsible shall be maintained on an imprest basis. At the end of each shift, the cashiers assigned to the outgoing shift shall record, on a cashier's count sheet, the face value of each cashier's cage inventory item counted and the total of the opening and closing cashier's cage inventories and shall reconcile the total closing inventory to the total opening inventory. The cashiers shall sign the completed cashier's count sheet attesting to the accuracy of the information contained on the cashier's count sheet.

140.2. At the conclusion of each day, at a minimum, a copy of the cashier's count sheet and related documentation shall be forwarded to the accounting department.

140.3. All accounting controls within the cashier's cage shall conform with the approved internal control system.

W. Va. Code R. § 179-4-141 Procedures for Exchange of Checks Submitted by Gaming Patrons and Granting Credit

141.1. Except as otherwise provided in this rule, the limited gaming facility licensee shall not make a loan, or otherwise provide credit to an individual to enable an individual to take part in gambling. The failure to deposit a negotiable instrument for collection by the next banking day after presentment by the patron is considered an extension of credit.

141.2. The limited gaming facility licensee may extend credit to a patron only in the manner provided in its internal control system approved by the Commission.

141.3. The internal control system shall ensure both of the following:

141.3.a. That each credit transaction is promptly and accurately recorded in appropriate credit records; and

141.3.b. That credit may be extended only in a commercially reasonable manner considering the assets, liabilities, prior payment history, and income of the patron to the extent available.

141.4. The limited gaming facility licensee shall not extend credit beyond the approved credit line.

141.5. The limited gaming facility licensee shall provide, to the Director, a monthly report detailing credit issued, an aging of outstanding credit amounts, collection activities taken with respect to aging accounts, accounts written off as uncollectible, and settlement of disputed items.

141.6. The value of chips or tokens issued to a patron upon the extension of credit, the receipt of a check or other instrument, the adding of the amount to the patron’s master hotel bill or through a complimentary distribution program shall be included in the computation of gross receipts.

W. Va. Code R. § 179-4-142 Handling Cash at Gaming Tables

142.1. A gaming employee who receives any currency or cash equivalents from a patron in the gaming area shall promptly place the currency or cash equivalent in the drop box.

142.2. A cash wager shall not be allowed to be placed at any gaming table. The cash shall be converted to chips before a wager is accepted.

W. Va. Code R. § 179-4-143 Tips or Gratuities

143.1. A gaming employee shall not accept currency as a tip or gratuity from any patron. This subsection does not apply to waiters, waitresses, bartenders, or other food or beverage servers in the casino.

143.2. A limited gaming facility employee who holds a level one occupational license shall not solicit or accept a tip or gratuity from a player or patron of the limited gaming facility operation. A gambling operation key person or employee shall not solicit a tip or gratuity. The limited gaming facility licensee shall not permit any practices prohibited by this rule.

143.3. All of the following provisions apply to tips and gratuities given to a dealer:

143.3.a. A dealer shall immediately deposit tips and gratuities in a locked box reserved for that purpose. If non-value chips are received at a roulette table, then a dealer shall not remove the marker button indicating the specific value of the chips from the slot or receptacle attached to the outer rim of the roulette wheel until after a dealer, in the presence of a supervisor, has converted the non-value chips into value chips. The value chips shall be immediately deposited in a locked box reserved for deposit and storage of tips and gratuities to the dealer; and

143.3.b. Tips and gratuities shall be accounted for by a recorded count conducted by not less than two employees designated by the licensee; and

143.3.c. Tips may be pooled among employees including level one licensees at the limited gaming facility licensee’s discretion.

W. Va. Code R. § 179-4-144 Deposits of Wagering Tax; Weekly Tax Return

144.1. The limited gaming facility licensee shall maintain a separate depository account for receipt and disbursement of adjusted gross receipts. The limited gaming facility licensee shall provide to the Commission weekly and other periodic reconciliations of funds deposited into this account and disbursements made from this account including the weekly transfer from the limited gaming facility licensee to the commission.

144.2. Each Wednesday, the limited gaming facility licensee shall, by electronic funds transfer, pay the privilege tax contained in the corresponding tax return emailed to the Commission as required by subsection three of this section.

144.3. Each Wednesday, the limited gaming facility licensee shall submit electronically to the Commission a privilege tax return for the adjusted gross receipts from authorized games of chance and video lottery covering the previous calendar (Sunday through Saturday) week. The limited gaming facility shall complete the Commission’s prescribed electronic format and shall email the return to casinotaxreturn@wvlottery.com. As technology changes and improves, the Commission may by interpretive rule specify another means of reporting.

W. Va. Code R. § 179-4-145 Human Resource Benefit Fund

145.1. Pursuant to West Virginia Code § 29-25-22a, the historic resort hotel shall be reimbursed by the Commission for each dollar it expends for sickness and accident benefits, medical coverage, and pension coverage for its employees, so long as the amount requested to be reimbursed does not exceed the amount in the Human Resource Benefit Fund. The historic resort hotel is entitled to reimbursement from the Human Resource Benefit Fund regardless of whether it is the operator of the limited gaming facility located on its premises.

145.2. As a condition of continuing eligibility for reimbursement of certain fringe benefits from the Human Resources Benefit Fund, the historic resort hotel shall follow the requirements set forth in the Act and this rule, as well as comply with related requests of the Commission.

145.3. Prior to reimbursement from the Human Resource Benefit Fund, the historic resort hotel shall submit a request to the Commission. This request shall be in a format prescribed by the Commission. The request shall be submitted to the Commission electronically. The request made to the Commission shall include:

145.3.a. The amount of requested reimbursement;

145.3.b. The fringe benefit for which the historic resort hotel requests reimbursement;

145.3.c. The date of payment on the fringe benefit; and

145.3.d. Any other information that the Commission considers necessary for its determination of whether or not to approve reimbursement.

145.4. Semi-annually, the Commission shall audit the source records of the historic resort hotel to ensure that proper amounts have been requested for reimbursement by the Commission.

145.4.a. Semi-annually, following the completion of the Commission’s audit of employee benefit records of the historic resort hotel, the Human Resources Benefit Fund Advisory Board shall meet and review the audit results and report the results to the Commission; and

145.4.b. The Commission shall consider recommendations made by the Human Resource Benefit Fund Advisory Board in determining what information should be included in the historic resort hotel’s request for reimbursement, as well as in determining other matters related to the operation of the Human Resource Benefit Fund.

145.5. The historic resort hotel shall maintain records of requests made to the Commission for a period of eighteen months after the request is made, and shall provide the Commission with the records upon the Commission’s request. §179-4-146 through 150. [Reserved]

PART 9. CREDIT

W. Va. Code R. § 179-4-151 Purpose of Credit Extension Procedures; Establishment of Procedures

151.1. Procedures for the extension of credit by the limited gaming facility licensee to a patron shall not include the use by a patron of a major credit card to pay for chips, tokens, coins or vouchers, or rendering to a patron a total hotel bill that includes gaming charges of not more than $1,000. Rather, the procedures regulate the issuance of credit directly by the limited gaming facility to a gaming patron. The limited gaming facility licensee shall submit procedures for extending credit for the following reasons:

151.1.a. To ensure that markers issued by the limited gaming facility licensee are issued only in accordance with the specific or general authorization of this rule;

151.1.b. To ensure that the functions, duties, and responsibilities of the licensee's employees involved in the extension of credit are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel;

151.1.c. To ensure that a casino employee is not in a position to perpetuate and conceal errors or irregularities in the normal course of his or her duties; and

151.1.d. To ensure that procedures are conducted with integrity and in accordance with the Act and this rule.

151.2. The limited gaming facility licensee is responsible for establishing policies and procedures to extend credit to patrons. The policies and procedures shall provide that each credit transaction is promptly and accurately recorded.

W. Va. Code R. § 179-4-152 Submission of Written Extension of Credit Procedures to the West Virginia Lottery

152.1. The limited gaming facility licensee shall submit procedures for extending credit to the West Virginia Lottery.

152.2. Procedures for extending credit shall be in compliance with this rule.

152.3. Both of the following provisions apply to the submission of extension of credit procedures:

152.3.a. The limited gaming facility licensee shall submit procedures for extending credit to the Commission not less than 30 days before the commencement of gambling operations; and

152.3.b. Procedures for extending credit may not be used by the limited gaming facility licensee unless the procedures for extending credit have been submitted, in writing, and approved by the Commission.

152.4. The Commission may disapprove any portion of the policies or procedures concerning the extension of credit. If the Commission disapproves a policy or procedures concerning the extension of credit, then the Director shall notify the limited gaming facility licensee, in writing, of the disapproval.

152.5. Access to the credit information, outstanding credit instruments, and credit instruments that have been written off is restricted to occupational licensees who require access and who are authorized by management to have access.

W. Va. Code R. § 179-4-153 Amendments to Procedures for Extending Credit

153.1. Both of the following provisions apply to an amendment to procedures for extending credit:

153.1.a. Unless otherwise authorized by the Commission, an amendment to a portion of the procedures for extending credit shall be submitted to the Commission not less than 45 days before using the procedures for extending credit; and

153.1.b. The limited gaming facility licensee shall not use an amendment to procedures for extending credit unless the amendment to the procedures for extending credit has been submitted, in writing, to the West Virginia Lottery.

153.2. The Commission may approve, approve with modification or disapprove any portion of an amendment to the policies or procedures concerning the extension of credit. If the Commission disapproves an amendment, then the Commission shall notify the limited gaming facility licensee, in writing, of the disapproval. The limited gaming facility licensee may not use any amendment that has been disapproved.

W. Va. Code R. § 179-4-154 Procedures for Extending Credit

154.1. Procedures for establishing credit shall, at a minimum, include the following:

154.1.a. Procedures for verification of the credit application;

154.1.b. Procedures for the review and approval of the credit limit for the patron, including specific minimum credit-worthiness standards a patron requesting credit must meet, such as a minimum credit rating number, and the casino maximum credit limit for a patron;

154.1.c. Procedures for the computerized or manual issuance of markers;

154.1.d. A designation of the licensed occupational positions that are authorized to issue markers;

154.1.e. A description of the marker and the information and signatures required to authorize the marker;

154.1.f. A description of the procedures for processing payments against credits received by the casino licensee;

154.1.g. Procedures to be followed in connection with accepting front money deposits;

154.1.h. Procedures to be followed in connection with cashing checks or drafts by the limited gaming facility licensee, including identifying the types of checks that may be cashed;

154.1.i. Procedures to be followed in the handling of returned checks;

154.1.j. Procedures for the collection of past due markers and returned checks, and procedures for the write-off of past due markers and returned checks;

154.1.k. Procedures to increase or decrease an established credit line; and

154.1.l. Other procedures considered necessary by the Director or the Commission to ensure compliance with the Act and this rule.

154.2. The limited gaming facility licensee shall not extend credit to a patron who has exceeded an established credit line.

154.3. A credit file shall be completed and maintained for each patron to whom credit is extended. This file shall include, at a minimum, all of the following:

154.3.a. A credit application, including, but not limited to, all of the following information:

154.3.a.1. The patron's name; 154.3.a.2.. The requested credit line;

154.3.a.3. The patron’s current home address;

154.3.a.4. The patron’s current home telephone number;

154.3.a.5. The patron’s date of birth;

154.3.a.6. The patron’s current Place of employment and position held;

154.3.a.7. The patron’s employer's address and telephone number;

154.3.a.8. The patron's bank address;

154.3.a.9. The patron’s checking account number; and

154.3.a.10. The patron’s Social Security number;

154.3.b. The authorized credit limit;

154.3.c. A photocopy of the patron's identification;

154.3.d. A history of all credit issued to the patron and payments received or written off by the limited gaming facility licensee; and

154.3.e. Verification of the credit application and approval of credit establishment.

W. Va. Code R. § 179-4-155 Verification of Credit

155.1. The limited gaming facility licensee may verify a patron's outstanding indebtedness, as required by this rule, by contacting a consumer credit bureau that is reasonably likely to possess information concerning the patron or a casino credit bureau, or both, to determine whether the patron has any liabilities or if there is any derogatory information concerning the patron's credit history.

155.2. Credit bureau contact shall be considered a verification of the outstanding indebtedness provided by the patron. If credit bureau contact is not immediately possible, then the limited gaming facility licensee may use an alternative source that has made the required contact. The limited gaming facility licensee shall record the source of verification and the method by which the verification was performed in the patron's credit file.

155.3. If neither credit bureau has information relating to a patron's outstanding indebtedness, then the limited gaming facility licensee shall record this information in the patron's credit file.

W. Va. Code R. § 179-4-156 Issuance of Markers

156.1. The limited gaming facility licensee shall establish procedures for the computerized or manual issuance of markers, including, at a minimum, all of the following:

156.1.a. A designation of the licensed occupational positions that are authorized to issue markers and a description of their duties;

156.1.b. A description of where markers can be issued.

156.1.c. A description of the marker and the information and signatures required to authorize the marker. Both of the following provisions specify requirements for a marker:

156.1.c.1. The limited gaming facility licensee shall submit the form of its markers to the Commission prior to its use;

156.1.c.2. The form must be a 3-part, numbered form;

156.1.c.3. The marker shall include, but not be limited to, all of the following information:

156.1.c.3.A. The patron's name and casino account number;

156.1.c.3.B. The dollar amount of the marker;

156.1.c.3.C. The casino marker number;

156.1.c.3.D. The current time and date;

156.1.c.3.E. The required signatures; and

156.1.c.3.F. A description of the term of repayment, including the rate of interest, if any;

156.1.d. A description of the distribution of each part of the marker;

156.1.e. Verification of the patron's identity through identification credentials before the issuance of the marker;

156.1.f. Verification of available credit;

156.1.g. A description of the recording of the credit transaction;

156.1.h. A description of accountability and control over the markers; and

156.1.i. Other information considered necessary by the Commission to ensure compliance with this rule.

156.2. A computer record and computerized log shall be maintained identifying the information in subdivisions 156.1a through 156.1.i of this rule for not less than the current year and the two preceding years.

W. Va. Code R. § 179-4-157 Receipt of Payments

The limited gaming facility licensee shall establish policies and procedures approved by the West Virginia Lottery in accordance with this rule to ensure that all payments received on outstanding credit instruments are recorded in a timely fashion. The procedures shall, at a minimum, include all of the following:

157.1. A description of the procedure for processing payments received by the limited gaming facility licensee in any manner;

157.2. Requirements for the consolidation of markers;

157.3. A detailed description of the distribution of all parts of redeemed and consolidated markers and redemption vouchers; and

157.4. A detailed allocation of principal and interest on each payment made, if any.

W. Va. Code R. § 179-4-158 Front Money Deposits

158.1. The limited gaming facility licensee shall establish procedures approved by the Commission in accordance with this rule in connection with front money deposits. The limited gaming facility licensee shall establish policies and procedures approved by the Commission in accordance with this rule to ensure that all applicable currency transaction reporting requirements will be enforced in accordance with applicable state and federal law.

158.2. Any of the following may be accepted from patrons for the purpose of customer deposits:

158.2.a. Cash or a cash equivalent;

158.2.b. Value chips issued by the limited gaming facility licensee; and

158.2.c. Tokens issued by the limited gaming facility licensee.

158.3. Deposits or withdrawals shall be documented on a voucher that is not less than a 2-part, numbered form. The voucher shall be completed by the casino cage cashier and shall include, at minimum, all of the following information:

158.3.a. The patron's name and signature;

158.3.b. The date of receipt or disbursement;

158.3.c. The amount of deposit;

158.3.d. The type of deposit; and

158.3.e. The casino cashier's signature.

158.4. The limited gaming facility licensee shall provide, to the Commission, a monthly report detailing, at a minimum, all of the following:

158.4.a. Outstanding credit;

158.4.b. Checks returned and held;

158.4.c. Collection activities taken; and

158.4.d. Settlement of disputed items.

158.5. All of the following checks shall be deposited not later than the business day after the day the checks are received or dated:

158.5.a. Cashier's checks;

158.5.b. Money orders;

158.5.c. Credit card advance checks;

158.5.d. Traveler's checks; and

158.5.e. Wire transfer service checks.

158.6. Personal checks shall be deposited not later than the business day after the day the checks are received or dated, unless otherwise agreed to by the limited gaming facility licensee and the patron.

W. Va. Code R. § 179-4-159 Check Cashing

159.1. The limited gaming facility licensee shall establish policies and procedures approved by the Commission in accordance with this rule in connection with cashing checks or drafts by the limited gaming facility licensee. Only the following types of checks may be cashed by the limited gaming facility licensee:

159.1.a. Personal checks;

159.1.b. Drafts;

159.1. c. Cashier's checks;

159.1.d. Money orders;

159.1.e. Credit card and debit card advance checks;

159.1.f. Traveler's checks; and

159.1.g. Wire transfers and other kinds of checks approved by the Commission;

159.2. The limited gaming facility licensee shall establish check-cashing privileges and limits that shall, at a minimum, incorporate the procedures established this rule.

159.3. When checks are cashed for a patron, the limited gaming facility licensee shall:

159.3.a. Examine the patron's picture identification and compare the signature on the identification credential to the signature on the check to ensure agreement. If the signatures do not match, then the limited gaming facility licensee shall not extend credit to the patron;

159.3.b. Immediately stamp the check "for deposit only;"

159.3.c. Date and time stamp the check;

159.3.d. Initial the check; and

159.3.e. Count out, in full public view and in the view of the surveillance camera, the funds requested by the patron.

159.4. If a patron’s personal check is cashed, then the cashier shall perform the procedures outlined in subsection 159.3 of this rule and shall:

159.4.a. Record the picture identification number if the check is under $500.00 and check-cashing privileges have not been established by the patron;

159.4.b. Determine if the patron's available credit is sufficient to cover the amount of the personal check, if applicable;

159.4.c. Refuse to cash a patron’s personal if the patron has a balance outstanding to the limited gaming facility licensee, due to checks previously cashed by the limited gaming facility licensee, for more than 30 days;

159.4.d. Hold a personal check against established credit lines for the earlier of 7 days or the date that the check cleared the financial institution upon which it was drawn.

W. Va. Code R. § 179-4-160 Handling of Returned Checks

160.1. The limited gaming facility licensee shall establish policies and procedures approved by the Commission in the same manner as the procedures for extension of credit for the handling of returned checks.

160.2. A returned check shall be received and documented on a returned check log by a department independent of the casino cage or credit department, or both. If the licensee uses a check-cashing service, then the licensee shall establish a procedure for the retention of copies of returned checks.

160.3. The limited gaming facility licensee shall establish procedures for collecting and recording checks returned to the limited gaming facility licensee after deposit, including redeposit procedures.

160.4. The limited gaming facility licensee’s collections department shall maintain a continuous record of all returned checks. The records shall contain all of the following information:

160.4.a. The original date of the check;

160.4.b. The name and address of the drawer of the check;

160.4.c. The amount of the check;

160.4.d. The date the check was dishonored; and

160.4.e. The date or dates and amount or amounts of any collections received on the check after being returned by a bank.

160.5. A returned check is considered the issuance of credit and shall be handled in accordance with the collection of credits.

160.6. The limited gaming facility licensee shall describe its procedures for notifying the casino cage, credit departments, or the equivalent of credit departments of returned checks and of the prohibition from granting further credit to patrons whose checks have been returned and remain unsatisfied.

W. Va. Code R. § 179-4-161 Collection of Past Due Accounts

The limited gaming facility licensee shall establish policies and procedures for the collection of past due markers and returned checks. The procedures shall be approved by the Commission in the same manner as the extension of credit.

W. Va. Code R. § 179-4-162 Write-Off of Past Due Accounts

The limited gaming facility licensee shall establish policies and procedures for the write-off of past due markers and returned checks. The procedures shall be approved by the Commission. The procedures shall, at a minimum, shall satisfy both of the following provisions:

162.1. Establish a write-off committee; and

162.2. Authorize write-off by the write-off committee. §179-4-163 through 170. [Reserved]

PART 10. EXCLUSION OF PERSONS

W. Va. Code R. § 179-4-171 Exclusion List; Duty to Exclude

171.1. Entry into the limited gaming facility of the historic resort hotel shall be denied to any person who is excluded under this rule. If the Director places a person on the Commission exclusion list, the person is prohibited from entering the limited gaming facility until a determination is made by the Commission or a court to the contrary.

171.2. The limited gaming facility licensee shall exclude or eject any excluded person from its premises if the limited gaming facility licensee or the licensee's agents know or reasonably should know that the person is on the exclusion list.

171.3. The limited gaming facility licensee shall inform the Commission, in writing, of the names of persons that it knows or should know meet the criteria for placement on an exclusion list and the reason the person meets the exclusion criteria.

171.4. This rule does not preclude the limited gaming facility licensee from ejecting or barring a person from its casino for reasons considered necessary by the licensee. The limited gaming facility licensee may seek to have a person it has ejected or barred from its premises placed on the exclusion list.

W. Va. Code R. § 179-4-172 Distribution and Availability of Exclusion Lists

The Commission shall maintain a list of persons to be ejected or excluded from the limited gaming facility. The exclusion list shall be a public record. The list may be distributed to law enforcement agencies. All of the following information, to the extent known, shall be provided for each excluded person:

172.1. The person’s full name and date of birth and all aliases;

172.2. A physical description of the person;

172.3. The effective date the person's name was placed on the exclusion list;

172.4. A photograph of the person, if available;

172.5. The person's occupation and current home and business addresses; and

172.6. Other information considered necessary by the Director to facilitate identification of the person placed on the exclusion list.

W. Va. Code R. § 179-4-173 Criteria for Exclusion and Placement on Exclusion List

The Director may place a person on the exclusion list pending a hearing if any of the following provisions apply to the person:

173.1. The person has been convicted of a felony in any jurisdiction or has been convicted of a misdemeanor in any jurisdiction involving gambling, theft, dishonesty, or fraud;

173.2. The person has violated the Act, this rule, or the minimum internal control standards adopted by the Commission;

173.3. The person has performed any act, or has a reputation, that would adversely affect public confidence and trust in the integrity of gaming;

173.4. The person is included on any valid and current exclusion list from another jurisdiction in the United States; and

173.5. The person has realized that he or she has a compulsive gambling disorder and has requested in writing to be excluded from the limited gaming facility and/or all of the state’s four pari-mutuel racetracks’ video lottery gaming areas.

W. Va. Code R. § 179-4-174 Procedure for Entry of Names on Exclusion List

174.1. Upon a determination that a person comes under any of the criteria for exclusion, the person may be subject to exclusion and the Director shall file a notice of exclusion. The notice shall include all of the following information:

174.1.a. The identity of the person;

174.1.b. The nature and scope of the circumstances or reasons that the person should be placed on the exclusion list;

174.1.c. Names of potential witnesses; and

174.1.d. A recommendation as to whether the exclusion or ejection is be permanent. The notice shall also inform the person of the availability of a hearing before the Commission.

174.2. A person excluded from the limited gaming facility shall make a request for a hearing within thirty days from the date the notice of exclusion was served.

174.3. If a person is excluded or ejected from the casino or the video lottery gaming area of a licensed racetrack, then the person is prohibited from further entering the casino or the video lottery gaming area of a licensed racetrack until a determination is made by the Commission on the merits of a filed notice of exclusion or a requested hearing. If a determination by the Commission is appealed, then the exclusion shall continue until the judicial review is completed unless otherwise ordered by the court.

174.4. If the Commission or a subsequent judicial review finds in favor of an excluded person, then the person's name shall be removed from the exclusion list and the excluded person's exclusion shall be terminated as of the date of the decision of the Commission or the court. If the finding is against the excluded person, then the excluded person's name shall remain on the exclusion list. If a hearing is not requested, then the excluded person's name shall remain on the exclusion list.

174.5. If the notice of exclusion provides for a temporary exclusion, then the Director shall set the term of the temporary exclusion. In making this time determination, the Director may consider the recommendation of the West Virginia Lottery staff. A temporary exclusion shall not be less than one hundred eighty days. A temporary exclusion shall only apply to a person excluded or ejected for disruptive conduct. All other exclusions shall be permanent.

W. Va. Code R. § 179-4-175 Petition for Removal From Exclusion List

175.1. A person who has been placed on any exclusion list may petition the Commission, in writing, and request that his or her name be removed from the exclusion list.

175.2. The provisions of W. Va. Code §29A-5-1 et seq. and the West Virginia Lottery’s Administrative Appeals Procedures rule 179 CSR 2 shall apply to protests of exclusion under this section. §179-4-176 through 180. [Reserved]

PART 11. DISPUTE PROCEDURES

W. Va. Code R. § 179-4-181 Patron Dispute Process

181.1. The limited gaming facility licensee shall attempt to resolve all patron disputes and has a period of 10 business days to investigate a patron complaint and resolve the dispute.

181.2. If the limited gaming facility licensee and the patron cannot resolve the dispute, then the licensee shall advise the patron of the patron's right to file a complaint form with the Commission. The complaint may be received by a West Virginia Lottery employee in the casino. The casino will forward a copy of the complaint to West Virginia Lottery headquarters. The limited gaming facility licensee shall provide a patron with a complaint form upon request.

181.3. A complaint shall contain, at a minimum, all of the following information:

181.3.a. The name, address, and telephone number of the patron;

181.3.b. A summary of the nature of the patron complaint, including the date and time on which the incident leading to the dispute occurred;

181.3.c. The physical location and/or identity of the West Virginia Lottery table game or gaming device where the complaint arose, if applicable;

181.3.d. A list of the names, if known, of any occupational licensees that were involved in, or a witness to, the incident that led to the patron dispute;

181.3.e. The name, address, and telephone number, if known, of any witnesses to the incident that led to the patron dispute;

181.3.f. A summary of the limited gaming facility licensee's attempt to resolve the patron dispute; and

181.3.g. Other information considered necessary by the Director or the Commission.

181.4. If possible, the West Virginia Lottery representative shall interview the complaining patron in the West Virginia Lottery office in the casino at the time the patron submits his or her complaint. During that interview, the representative may retrieve and view any available recorded security images for a more detailed understanding of the alleged incident.

181.5. A patron shall submit the complaint in writing within five calendar days of the incident that led to the patron dispute. The West Virginia Lottery representative shall provide a copy of the complaint to the limited gaming facility licensee at the same time that the representative submits the complaint copy to West Virginia headquarters.

181.6. The limited gaming facility licensee shall submit an answer to the complaint to the Commission in writing within fourteen business days of receiving a copy of the patron's complaint. The limited gaming facility licensee shall provide a copy of the answer to the complaining patron at the same time that the limited gaming facility licensee submits the answer to the West Virginia Lottery.

181.7. Until the Commission has released the recorded images that are connected to the complaint, the limited gaming facility licensee shall not destroy, erase or record over the images.

W. Va. Code R. § 179-4-182 Investigation; Possible Disciplinary Action

The Commission shall determine if a patron dispute requires investigation. If the Commission determines that an investigation is necessary, then the West Virginia Lottery security division shall conduct the investigation. If it is determined that the limited gaming facility licensee or an occupational licensee violated the Act, this rule, or the minimum internal control standards adopted by the Commission, then the Commission may initiate disciplinary action.

W. Va. Code R. § 179-4-183 Appeals by License Applicants, License Holders and Patrons

183.1. A person who appeals an adverse decision or action by the Commission or the Director pursuant to section seventeen of the Act shall give security for the cost of the hearing in the amount of three hundred dollars in the form of a certified check, cashier’s check or money order, which shall accompany the petition demanding a hearing.

183.2. The Commission may from time to time increase or decrease the amount of security by interpretive rule or Commission order, giving consideration to the actual average cost of holding an administrative hearing.

183.3. The fee may be waived by the Commission or Director for good cause shown.

179CSR4

179CSR4

Series 05 West Virginia Lottery Limited Video Lottery Rule

W. Va. Code R. § 179-5-1 General

1.1. Scope and Purpose. -- The purpose of this legislative rule is to implement, clarify and explain provisions of the Limited Video Lottery Act codified in W. Va. Code §29-22B-101.

1.2. Authority. -- W. Va. Code §29-22B-402.

1.3. Filing Date. -- April 14, 2022.

1.4. Effective Date. -- July 1, 2022. 1.5 Sunset Provision -- This rule shall terminate and have no further force or effect on August 1, 2027. §179-5-2 Definitions of terms and words.

2.1. “Advertising” as used in West Virginia Code §29-22B-702(13) and §29-22B-706(12) means a media advertisement, utilizing social media, an outdoor sign, or a sign inside the licensee’s premises that may be seen from the outside of the premises, that conveys to the average reader or hearer that limited video lottery gaming is available at the retail establishment or from the licensed operator.

2.2. “ABCA” means the office and agency known as the alcohol beverage control commissioner created in W. Va. Code §60-2-1.

2.3. “Act” and “the act” mean the Limited Video Lottery Act codified in W. Va. Code §29-22B-1 et seq.

2.4. “Central computer”, "central control computer" or "central site system" means any central site computer provided to and controlled by the commission to which video lottery terminals communicate for purposes of information retrieval and terminal activation and to disable programs. “Central computer” includes the computer at the commission’s hot backup site when it is functioning as the central control computer.

2.5. “Control” means the authority to direct the management and policies of an applicant for a license or a holder of a license. The following persons are considered to have control of an applicant:

2.5.a. Each person associated with a corporate applicant, including any corporate holding company, parent company or subsidiary company of the applicant, except that: 2.5.a.1 A bank or other licensed lending institution that holds a mortgage or other lien acquired in the ordinary course of business does not have control of the applicant; 2.5.a.2 An investment advisor who is registered with the United States Securities and Exchange Commission and whose beneficial interest in the applicant is held strictly for investment purposes, who has the ability to control the activities of the corporate applicant or to elect a majority of the board of directors of that corporation does not have control of the applicant; and 2.5.a.3 An institutional investor who is registered with the United States Securities and Exchange Commission and whose beneficial interest in the applicant is held strictly for investment purposes, who has the ability to control the activities of the corporate applicant or to elect a majority of the board of directors of that corporation. The applicant or licensee has the burden of proving that the interest is held for investment and not for direct or indirect control of the applicant or licensee; and

2.5.b. Each person associated with a noncorporate applicant who directly or indirectly holds any beneficial or proprietary interest in the applicant or who the commission determines to have the ability to control the applicant; and

2.5.c. Key personnel of an applicant, including any executive, employee or agent, having the power to exercise significant influence over decisions concerning any part of the applicant’s business operation.

2.6. “Gross profits” means the portion of gross terminal income collected by the commission from the permittee that remains after the commission deducts two percent of gross terminal income for administrative expenses.

2.7. “Gross terminal income” means the total amount of cash inserted into video lottery terminals operated by a licensee, minus the total value of game credits which are cleared from the video lottery terminals in exchange for winning redemption tickets printed by the video lottery terminals. Gross terminal income may also be determined by subtracting total credits won from total credits played. Either method will yield the same gross terminal income for the period.

2.8. “Incomplete applications” as used in W.Va. Code §29-22B-509(b) means applications that have not included one or more of the required elements for licensure:

2.8.a. Fingerprint information;

2.8.b. All lottery forms completely filled in;

2.8.c. Payment of the non-refundable fee for license; and

2.8.d. An ABCA private club liquor license number or class “A” nonintoxicating beer license number.

2.9. “Indirect ownership” means an interest a person owns in an entity or in property solely as a result of application of constructive ownership rules without regard to any direct ownership interest (or other beneficial interest) in the entity or property. “Indirect ownership” shall be determined under the rules applicable to determining whether a gain or loss between related parties is recognized for federal income tax purposes as provided for in 26 U.S.C. §267 of the Internal Revenue Code and regulations of the Secretary of the United States Treasury.

2.10. “License” or “video lottery license” means the written authorization granted by the commission pursuant to the Act and this rule that permits the person named in the license to engage in the activity for which the license was issued during the period of time for which the license was issued, unless the license is surrendered by the licensee, or is cancelled or revoked by the director or the commission, before its expiration date. The activity for which the license was issued may not be engaged in during any period of time for which the license has been suspended by the director or the commission. The commission issues four types of licenses: (A) a limited video lottery retailer’s license, (B) a manufacturer’s license, (C) an operator’s license and (D) a service technician’s license.

2.11. “Licensed limited video lottery location approved by the commission” as it appears in W. Va. Code, §29-22B-1201(a) includes:

2.11.1. A location approved by the commission that is in excess of one hundred fifty feet from a business in accordance with W. Va. Code §29-22B-1202 that sells petroleum products capable of being used as fuel in an internal combustion engine as determined by the commission during the license application review; or

2.11.2. A location approved by the commission that is a separate room or building which is a part of, contiguous to, or adjoining an “Authorized West Virginia Truck Stop.”

2.11.2.a. An Authorized West Virginia Truck Stop is a facility that (i) is also a convenience store, (ii) has separate diesel islands for fueling commercial vehicles, (iii) has overnight parking spaces for commercial vehicles, (iv) is open 24 hours, and (v) has at least fifty (50) parking spaces.

2.11.2.b. The applicant must attest to all qualification requirements prior to licensure of a limited video lottery retailer to operate video lottery terminals at the location of an Authorized West Virginia Truck Stop, and provide sufficient proof of compliance with all requirements in subdivision 2.12.2 of this subsection.

2.11.3. The provisions of any interpretive rule providing restrictions within the definition of the term “licensed limited video lottery location approved by the commission” shall continue in full force and effect except as to any such restriction that is explicitly superseded or modified by the provisions of this subsection.

2.12. “Modified terminal not approved by the commission” as used in subsection 15.1 of this rule, means a video lottery terminal whose assembly or operational functions are not identical to the video lottery terminal that was tested by the commission’s independent testing laboratory and approved by the commission for sale or lease to a permittee in West Virginia.

2.13. “Operating video lottery terminals” as the term is used in subsection 27.1 of this rule means terminals that are accepting and processing limited video lottery wagers in a day. A video lottery terminal that does not accept and process any limited video lottery wagers during a day will not be counted as operating on that day.

2.14. “Other act beyond the control of the permittee,” as used in W.Va. Code §29-22B-1113(b), means a natural or man-made occurrence that was not caused by any person having direct or indirect ownership or control of the permittee. These occurrences include, but are not limited to, the following:

2.14.1. Failure of the electric power utility, the telephone utility, the water utility or the natural gas utility to provide electric power, telephone service, water or (if needed) natural gas to the restricted access adult-only facility;

2.14.2. The rendering of the restricted access adult-only facility uninhabitable by reason of smoke or water damage from a fire in an adjacent location of the building or structure in which the restricted access adult-only facility is located;

2.14.3. A declaration of a civil emergency that closes the premises in which the restricted access adult-only facility is located; or

2.14.4. A hardware or software malfunction in a video lottery terminal that can be corrected only by the licensed manufacturer that built the video lottery terminal, if the malfunction is registered by the manufacturer with the commission before the downtime limit expires.

2.15. “Petroleum products” as used in W.Va. Code §29-22B-328(b) and elsewhere in this rule means gasoline and special fuels as those terms are defined by W.Va. Code §11-14C-2.

2.16. “Pin ball machine” as it appears in W.Va. Code §29-22B-331 means an electro-mechanical amusement device in which a solid metal ball propelled by a plunger scores points as it rolls down a slanting surface among pins and targets. Flippers located on each side of the slanted surface allow the person playing the machine to keep the ball in play thereby scoring more points. “Pinball machine” does not include any electronic simulation that does not use a mechanical plunger, mechanical flippers or a physical solid metal ball to operate the game.

2.17. “Restricted access adult-only facility” means and is limited to:

2.17.a. A private club licensed by the ABCA under W. Va. Code §60-7-1 et seq. that is also licensed by the commission as a limited video lottery retailer to allow members and their guests to play video lottery games, subject to the following restrictions:

2.17.a.1. When a private club is frequented by minors and their parents, the private club is not a restricted access adult-only facility unless all of its video lottery terminals are located in a separate room suitable for the location of video lottery terminals with adult-only restricted access, the interior of which is not visible to persons outside the room. The commission shall determine whether the separate room is suitable for the location of video lottery terminals.

2.17.a.2. When a place of business includes a private club licensed under W. Va. Code §60-7-1 et seq. and the place of business sells petroleum products, the private club may not have a limited video lottery retailer’s license. This restriction applies even though the video lottery terminals would be located in a separate room, or in a building that is part of, contiguous to or adjoining a place of business that sells petroleum products. This restriction applies even though the private club or the business that sells petroleum products, or both businesses, are located in owned or leased space and even though the private club and the business that sells petroleum products are owned or operated by unrelated parties for purposes of application of 26 U.S.C. §267 of the Internal Revenue Code.

2.17.b. A place of business that (A) does not sell petroleum products, (B) has a Class “A” nonintoxicating beer license issued by the ABCA under W. Va. Code §11-16-1 et seq. allowing the holder to sell nonintoxicating beer for consumption on the premises, and (C) meets all of the following:

2.17.b.1. The business derives at least 40% of its annual gross receipts at that location from sales of nonintoxicating beer to consumers and of the gross receipts from sales of nonintoxicating beer, at least 80% are from sales of nonintoxicating beer for consumption on the premises.

2.17.b.1.A. Example 1. ZXY pizza shop has a Class “A” nonintoxicating beer license. Annual gross receipts at that location from all sources is $2 million. Of this amount, $750,000 is from sales of nonintoxicating beer. Because gross receipts from sales of nonintoxicating beer is less than 40 percent of gross receipts from all sales of goods and services, the pizza shop is not eligible for a limited video lottery license.

2.17.b.1.B. Example 2. ZXY pizza shop has a Class “A” nonintoxicating beer license. Annual gross receipts at that location from all sources is $2 million. Of this amount, $850,000 is from sales of nonintoxicating beer. Annual gross receipts from sales of nonintoxicating beer for consumption on the premises is $637,500 while annual gross receipts from sales of nonintoxicating beer for off-premises consumption is $212,500. In this example, more than 40 percent of annual gross receipts are from sales of nonintoxicating beer. However, because annual gross receipts from sales of nonintoxicating beer for consumption on the premises is less than 80 percent of gross receipts from all sales of nonintoxicating beer, the pizza shop is not eligible for a limited video lottery license.

2.17.b.1.C. A business that has a Class “A” nonintoxicating beer license and wants to obtain or retain a limited video lottery license shall make and retain adequate records of its sales of goods and services. At a minimum, the records shall show, for each business location, total annual gross receipts, total annual gross receipts from all sales of nonintoxicating beer and total annual gross receipts from sales of nonintoxicating beer for consumption on the premises. When the business location has a Class “A” nonintoxicating beer license, the records separately shall show for each business day gross receipts derived from sales of nonintoxicating beer for consumption on the premises and gross receipts derived from sales of nonintoxicating beer for consumption off the premises. Whether nonintoxicating beer is sold for consumption on or off the premises is determined at the time nonintoxicating beer is sold to the customer. If nonintoxicating beer is sold for consumption off the premises, the sale is to be recorded as a sale for off-premises consumption even though the customer, after receiving the nonintoxicating beer in a sealed container, opens the container and consumes the product in whole or in part on the premises.

2.17.b.1.D. In the absence of adequate records, the commission shall presume that annual gross receipts from sales of nonintoxicating beer is less than 40 percent of total annual gross receipts from all sales of goods and services at the business location.

2.17.b.1.E. When the business does not keep adequate books and records of gross receipts from sales on nonintoxicating beer for consumption on the premises and of gross receipts from sales of nonintoxicating beer for consumption off the premises, the commission shall presume that gross receipts from sales of nonintoxicating beer for consumption on the premises is less than 80 percent of all sales on nonintoxicating beer.

2.17.b.2. The business maintains a suitable kitchen and dining facility and related equipment for serving meals for on-premises consumption;

2.17.b.3. The business regularly prepares and sells meals for consumption on the premises;

2.17.b.4. The business has a separate room suitable for the location of video lottery terminals with adult-only restricted access, the interior of which is not visible to persons outside the room. The commission shall determine whether the separate room is suitable for the location of video lottery terminals; and

2.17.b.5. The business meets any additional requirement(s) or standard developed by the commission for a Class A” beer licensee.

2.18. “Ten days after the date the ticket is printed,” as that phrase is used in subsection 7.1 of this rule, is calculated by excluding the day the ticket was printed and including the tenth subsequent day until the close of video lottery gaming that began on the tenth subsequent day.

W. Va. Code R. § 179-5-3 Review of continuing eligibility for license

3.1. The commission shall determine on a continuing basis the eligibility of licensees to hold a license by one or more of the following means:

3.1.a. The commission shall review the qualifications of each licensee on at least an annual basis;

3.1.b. The commission shall perform spot audits at retailer locations and at operator locations; and

3.1.c. The commission shall review reports of violations discovered by lottery investigators and ABCA inspectors during site visits to locations of operators, limited video lottery retailers and service technicians.

3.2. Each limited video lottery retailer shall continue to hold either a private club license or a class A nonintoxicating beer license issued by the ABCA;

3.2.a. If the ABCA suspends or cancels the retailer’s private club license or class A nonintoxicating beer license, the director shall disable and cause not to operate the retailer’s video lottery terminals at the location where the ABCA license is suspended and shall re-enable the video lottery terminals only when the suspension or cancellation is lifted by the ABCA; and

3.2.b. If the ABCA revokes the retailer’s private club license or class A nonintoxicating beer license, the director shall disable and cause not to operate the retailer’s video lottery terminals at the licensed location and shall recommend to the commission that the limited video lottery retailer’s license for that location be revoked.

3.3. If any condition that a licensee must meet for licensure changes after a license is granted, other than conditions in subsection 4.3 of this rule, the director shall suspend the license until the condition is corrected, and shall disable and cause not to operate during the period of suspension the licensee’s video lottery terminals.

3.4. Renewal of a suspended license and the collection of the annual license fee will be held in abeyance until the reason for the underlying suspension is remedied whenever the limited video lottery license is suspended during the time when limited video licenses are renewed.

3.5. The commission may proceed to revoke the limited video lottery license whenever a suspension lasts longer than 30 days, whether the suspension is by the ABCA or by the commission.

W. Va. Code R. § 179-5-4 Application forms and other documents

4.1. The commission shall approve the forms of application to be used, including, but not limited to:

4.1.a. An application form;

4.1.b. A personal data form;

4.1.c. FBI fingerprint cards; and

4.1.d. IRS form 8821 to disclose income tax filings, when necessary.

4.2. All application, registration and disclosure forms and other documents submitted to the lottery commission, by or on behalf of an applicant for purposes of determining qualification for a limited video lottery license, shall be sworn to or affirmed before an officer qualified to administer oaths.

4.3. If the commission and the State Police implement an electronic fingerprint capturing technology, the requirement for submission of fingerprint cards for initial application and license renewal is waived as redundant for persons whose fingerprints are on file with the commission in electronic form.

W. Va. Code R. § 179-5-5 Bonding requirements for operators and limited video lottery retailers who are permittees

5.1. Before any operator or limited video lottery retailer is issued a permit to own or lease video lottery terminals from a licensed manufacturer, the permittee shall post a bond executed by a surety company authorized to transact surety business in West Virginia, or an irrevocable “letter of credit,” as defined in W. Va. Code §46-5-103, issued by a national or state bank or other financial institution acceptable to the commission to ensure the performance of the permittee’s duties and responsibilities under the Act and this rule and indemnification of the commission.

5.1.a. For the license year beginning the October 1, 2001, the annual bond or irrevocable letter of credit posted shall be in an amount equal to $1,500 multiplied by the number of video lottery terminal stated in the permit. When an amended permit is issued for additional video lottery terminals, the permittee shall post a supplemental bond or irrevocable letter of credit for the additional lottery terminals or, in the permittee’s discretion, a replacement bond or irrevocable letter credit for the number of video lottery terminals stated in the amended permit;

5.1.b. For license years beginning after September 30, 2002, the commission shall obtain a single financial guarantee bond covering all permittees as provided in W. Va. Code §29-22B-515;

5.1.b.1. The commission shall obtain a blanket bond covering all permittees by competitive bidding procedures through the purchasing division of the department of administration and shall apportion the cost of the bond premium among all participating permittees on a per-terminal basis;

5.1.b.2. Each permittee shall participate in the financial guarantee blanket bond program provided by the commission in the amount of at least $2,000 for each terminal owned or leased by the permittee. The commission shall renew the blanket bond on an annual continuing basis. Bonding premium payments shall be made by electronic funds transfer from the permittee’s bank accounts to the commission’s revenues and transfers account each year; and

5.1.b.3. If it is determined by the director that one or more permittees should be bonded for an amount and in a form and manner different from the financial guarantee bond of at least $2,000, or if other security should be provided by the permittee to ensure the performance of the permittee's duties and responsibilities or the indemnification of the commission, the director shall determine and impose the amount, form and manner of the coverage, and shall also report his or her determination to the commission.

5.2. The bond specified in subdivision 5.1.b of this section shall be issued by a surety company authorized to transact surety business in West Virginia and the company must be approved by the West Virginia insurance commissioner as to solvency and responsibility.

5.3. A permittee who is a video lottery retailer that has permits for two or more restricted access adult-only facilities may post a bond or irrevocable letter of credit until October 1, 2002 for the number of video lottery terminals stated in all permits held by the permittee.

5.4. Whenever a permittee has no valid bond or irrevocable letter of credit or blanket bond under this section, for the amount determined by this section, the commission shall disable and cause not to operate every video lottery terminal of the permittee that is placed in a licensed retail location until the appropriate bond or irrevocable letter of credit is received by the commission and becomes effective.

W. Va. Code R. § 179-5-6 Additional duties of limited video lottery retailers

6.1. In addition to the additional duties as listed in W.Va. Code §29-22B-702, a limited video lottery retailer shall:

6.1.a. Ensure that the central site system controller/validator unit is at all times turned on, supplied with electric power, supplied with printer paper and connected to each limited video lottery terminal and to the data communications connection to the commission’s central site system;

6.1.b. Acquire and install one or more security cameras, at least one video cassette recorder, memory disk or other device that will record the video feed from the security cameras, and the necessary cabling to connect the cameras to the video cassette recorder or other device in the restricted access adult-only facility on the premises of a licensed limited video lottery retailer;

6.1.c. Ensure that security cameras are placed and remain placed in the specific locations that have been approved by the commission, and are not relocated within the facility without the prior written approval of the director;

6.1.d. Ensure that security cameras are correctly aimed at the video lottery terminals and are always operating 24 hours a day;

6.1.e. Ensure that video recorders tied to the security cameras are operating 24 hours a day;

6.1.f. Ensure that videotapes or other storage media are changed when they are completely recorded, and that no tape or other storage media are reused more than the tape or media manufacturer’s recommended number of times;

6.1.g. Ensure that videotapes or other storage media are retained for at least 60 days after they are recorded;

6.1.h. Pay for all credits won upon presentment of a valid winning video lottery ticket from a video lottery terminal located on the premises where it is presented for payment;

6.1.i. Clear printer paper jams and bill acceptor jams and replace ticket paper in the printer unit in a competent and timely manner based on training received from a licensed service technician;

W. Va. Code R. § 179-5-7 Additional duties of limited video lottery retailer regarding payment of credits. 7.1 A limited video lottery ticket must be presented for payment no later than ten days after the date the ticket is printed. 7.1.a This ten-day calculation will not be extended regardless of whether the tenth day falls on a Saturday, Sunday or legal holiday; and 7.1.b When an act of God such as a flood renders the video lottery gaming system at a retail location inoperative in the opinion of the West Virginia State Lottery Commission, the ten-day time period will be deemed to be interrupted until such time as the video lottery gaming system is restored to operation

W. Va. Code R. § 179-5-8 Supplemental duties of manufacturers

8.1. In addition to the additional duties imposed on all licensees by W.Va. Code §29-22B-705, a manufacturer shall:

8.1.a. Pay no compensation or inducement of any kind to any operator or retailer, or give or transfer anything of value to any operator or retailer, beyond a nominal consideration of one dollar per year. “Anything of value” does not include the following transactions:

8.1.a.1. A lease agreement for video lottery terminals with the option to purchase the video lottery terminals at the end of the lease term, so long as the terms are reasonable and customary as determined by the commission; and

8.1.a.2. A loan for the purchase of video lottery terminals so long as the terms are reasonable and customary as determined by the commission; and

8.1.b. Prepare training courses for applicants seeking to be licensed as service technicians and prepare and administer course proficiency tests approved by the commission at the conclusion of each course;

W. Va. Code R. § 179-5-9 Supplemental duties of service technicians

9.1. In addition to the additional duties imposed on all licensees by W.Va. Code §29-22B-707, a manufacturer shall train retailers and their employees how to clear printer paper jams and bill acceptor jams and replace ticket paper in the printer unit in a competent and timely manner; and

W. Va. Code R. § 179-5-10 Additional requirements for testing of video lottery terminals and associated equipment

10.1. The commission shall review and approve one or more independent testing laboratories for the purpose of inspecting and testing video lottery terminals, associated equipment and software to be operated or used in West Virginia under this rule;

10.1.a. Any testing laboratory appointed by the commission for these functions shall, at the time of appointment, have a minimum of 5 years of experience testing video gaming equipment on behalf of government regulators of video gaming devices such as the video lottery terminals regulated by this rule;

10.1.b. The testing laboratories shall report all testing results to the commission, both video lottery terminals, associated equipment and software that comply with the Act and this rule, as well as video lottery terminals, associated equipment and software that do not comply; and

10.1.c. The testing laboratories shall test to assure the commission in writing that the video lottery terminals, associated equipment and software tested comply with all requirements and specifications set forth in the Act and this rule.

10.2. The commission shall require that hardware modifications and modifications of software be submitted to a designated testing laboratory by the commission. Modified hardware and software must be approved by the commission before it may be used in limited video lottery in West Virginia.

10.3. The commission may also require that the manufacturer transport two working models of a video lottery terminal with all components as it will be set up in retail locations, including any associated equipment that may be used, to the designated testing laboratory for testing, examination and analysis. When this is required, the manufacturer shall pay the cost of transportation of one video lottery terminal to lottery headquarters and a second video lottery terminal to the commission’s hot backup computer site.

W. Va. Code R. § 179-5-11 Additional video lottery hardware and software specifications not found in W.Va. Code §§29-22B-901 through 912

11.1. A video lottery terminal shall not allow more than five dollars ($5.00) to be wagered on a single game; however, the following game options do not violate the five dollar wager limit on a single game because none require the insertion of more than $5.00 to play the game:

11.1.a. The double-up option in poker games;

11.1.b. The splitting option in blackjack games;

11.1.c. The insurance option in blackjack games; and

11.1.d. The let-it-ride option in blackjack games.

11.2. A video lottery terminal may not be designed or configured to allow more than one individual to use video lottery terminal at the same time.

11.3. Each video lottery terminal must contain a single printing mechanism capable of printing an original ticket and retaining an exact legible copy within the video lottery terminal, or other means of capturing and retaining an electronic copy of the ticket data as approved by the commission for at least eleven days after the ticket is printed;

11.3.a. If an impact printer is used by the video lottery terminal, the retained audit tape must be a different color paper from the ticket paper received by the player;

11.3.b. If a thermal printer is used and the duplicate information is stored electronically in the video lottery terminal, any duplicate ticket printed by the terminal must have the prominent word “DUPLICATE” printed on the face of the ticket; and

11.3.c. In addition to the information required to be printed on the ticket by W.Va. Code §29-22B-905, the unique terminal identification number shall be recorded on the ticket when credits accrued on a video lottery terminal are redeemed for cash.

11.4. The commission shall provide a label for each video lottery terminal prominently displaying information on how to locate and contact persons or organizations available for help, assistance or treatment for persons who may have a gambling addiction, together with the telephone number “1-800-GAMBLER” or another help line telephone number that the commission may later choose.

11.4.a. Each limited video lottery retailer shall conspicuously post the following printed statement provided by the commission in at least 24-pitch type size: “CAUTION - Gambling and playing this machine can be hazardous to your health, your finances, and your future.”

W. Va. Code R. § 179-5-12 Only licensed manufacturers may sell or lease video lottery terminals to permittees

12.1. Only a licensed manufacturer of video lottery terminals may sell, lease or otherwise transfer ownership or possession of video lottery terminals for use in this state to a person who possesses at the time of delivery a valid permit to own or lease one or more video lottery terminals and a valid operator’s license or a valid limited video lottery retailer’s license issued by the commission.

12.2. One permittee may not sell, lease or otherwise transfer ownership or possession of a video lottery terminal to another permittee.

12.3. With the prior written approval of the commission, a licensed manufacturer may broker the sale of video lottery terminals it has manufactured from one permittee to another permittee provided the acquiring permittee is authorized by the commission to acquire the video lottery terminals.

W. Va. Code R. § 179-5-13 Modifications to previously approved video lottery terminals

13.1. Changes to previously-approved EPROMs, the motherboard or any other hardware within the logic area of the video lottery terminal, as well as coin acceptors, bill acceptors and printers shall be approved in writing by the commission before live wagering at retail locations may occur using any modified hardware or software.

13.2. Changes to previously approved software that affects in any way the operation or payout of a video lottery terminal must be approved in writing by the commission before live wagering at retail locations may occur using any payout.

13.3. Changes to the video lottery terminal cabinet, including all printed material that appears on the cabinet or its clear glass or plastic front must be approved in writing by the director prior to use with the modification;

W. Va. Code R. § 179-5-14 Unapproved video lottery terminals; action on licenses; civil penalty

14.1. A video lottery terminal is deemed prima facie to be contraband if a manufacturer or other person supplies the video lottery terminal or a video lottery terminal modification to a licensed permittee or license limited video lottery retailer and the new or modified terminal has not been approved by the commission.

14.2. When video lottery terminals have been seized and destroyed as provided in W.Va. Code §29-22B-1204, the commission shall suspend the licenses of the permittee and the licensed manufacturer for not less than one week or more than five weeks;

14.2.a. When the license of an operator is suspended, the commission shall disable and cause not to operate all video lottery terminals owned or leased by the operator in the state of West Virginia;

14.2.b. When the license of a limited video lottery retailer who is a permittee is suspended, the commission shall disable and cause not to operate all video lottery terminals owned or leased by the licensee at the retail location for which the license was suspended; and

14.2.c. When the license of a manufacturer is suspended, the commission shall disable and cause not to operate all video lottery terminals manufactured by the manufacturer and operating in the state of West Virginia.

14.3. In addition to suspension of licenses, the commission may impose a civil money penalty as provided in W. Va. Code §29-22B-1601.

W. Va. Code R. § 179-5-15 Initial permit fee payment

15.1. For persons authorized to own or lease video lottery terminals without going through the bid process, the fee shall initially be paid at the time the permit is issued for the number of video lottery terminals stated on the permit.

15.2. For persons authorized to own or lease video lottery terminals as a result of a bidding process, the amount bid per terminal shall be paid in lieu of the initial $1,000 per terminal fee.

W. Va. Code R. § 179-5-16 Reservation of authority to have video lottery terminals on or before August 1, 2001 by persons who held a private club license or Class “A” nonintoxicating beer license on January 1, 2001

16.1. On or before August 1, 2001, every person who on the January 1, 2001 held a private club license issued as provided W. Va. Code §60-7-1 et seq., or a Class “A” nonintoxicating beer license issued as provided in W. Va. Code §11-16-1 et seq., and who wants to offer video lottery terminals, as defined in this rule, for the enjoyment of the licensee’s customers may file an application to be licensed as a limited video lottery retailer under this rule.

16.2. The applications shall be submitted on forms supplied by the director. Each application shall:

16.2.a. Be signed by the applicant or a person authorized to sign the application filed for a person who is not an individual; and

16.2.b. Provide all of the information requested by the commission.

16.3. The commission shall return to the applicant, for completion and re-filing an application that is incomplete in any material respect.

16.4. The application shall also elect and state whether the applicant intends to own or lease up to 2 video lottery terminals (up to 7 in the case of eligible fraternal and veterans’ organizations) from a licensed manufacturer or obtain them from a licensed operator.

16.5. A licensee who elects to own 2 video lottery terminals (or 7 in the case of certain fraternal and veteran organizations) may obtain additional video lottery terminals from an operator or by being a successful bidder under W.Va. Code §29-22B-1107 provided the total number of video lottery terminals on the licensee’s premises does not exceed the number specified in subsection 16.4 of this section.

16.6. An applicant, upon payment of $1,000 per video lottery terminal the applicant intends to own or lease, shall be issued a permit to purchase or lease from a licensed manufacturer the number of video lottery terminals stated in the permit if the applicant held a private club license on January 1, 2001, and the applicant elects to own or lease up to 2 video lottery terminals from a licensed manufacturer (or up to 7 video lottery terminals in the case of an eligible fraternal or veterans’ organization), and the applicant qualifies as a private club for a limited video lottery license.

16.7. An applicant who intends to own or lease video lottery terminals, upon payment of $1,000 per video lottery terminal, shall be issued a permit to purchase or lease from a licensed manufacturer the number of video lottery terminals stated in the permit if the applicant held a Class “A” nonintoxicating beer license on January 1, 2001, but did not also hold a private club license on that date for the location for which the application for a limited video lottery retailer’s license is submitted.

16.8. The commission, when issuing a limited video lottery retailer’s license to an applicant who qualifies as a private club for a limited video lottery license, shall also issue the applicant a certificate reserving up to 2 video lottery terminal authorizations (or up to 7 video lottery terminals authorizations in the case of an eligible fraternal or veterans’ organization) as requested in the application filed on or before August 1, 2001 if the applicant held a private club license on January 1, 2001, and the applicant does not elect to own or lease up to 2 video lottery terminals from a licensed manufacturer (or up to 7 video lottery terminal authorizations in the case of an eligible fraternal or veterans’ organization);

16.8.a. The applicant may then contract with an operator for video lottery terminals and give the certificate of reservation to the operator; and.

16.8.b. The operator, upon submitting to the commission a true copy of its contract with the licensed video lottery retailer along with the certificate of reservation issued to the retailer by the commission and payment of $1,000 per video lottery terminal stated in the certificate of reservation shall be issued a permit or an amended permit.

16.8.c. When a retailer that received a certificate of reservation, and has transferred that certificate of reservation to an operator, loses its limited video lottery retailer license, the underlying permit received in exchange for the retailer’s certificate of reservation is void after the passage of 100 days for the number of terminals represented by the certificate of reservation.

16.9. When the commission issues a limited video lottery retailer’s license to an applicant who held a Class “A”nonintoxicating beer license on January 1, 2001, but did not also hold a private club license on that date for the location for which the application for a limited video lottery retailer’s license is submitted, and the applicant does not elect to own or lease up to 2 video lottery terminals from a licensed manufacturer (or up to 7 video lottery terminal authorizations in the case of an eligible fraternal or veterans’ organization), the commission shall also issue the applicant a certificate reserving up to 2 video lottery terminal authorizations (or up to 7 video lottery terminals authorizations in the case of an eligible fraternal or veterans’ organization) as requested in the application if it was filed on or before August 1, 2001;

16.9.a. The licensee may then contract with an operator for video lottery terminals and may give the certificate of reservation to the operator; and

16.9.b. The operator, upon submitting to the commission a true copy of its contract with the licensed video lottery retailer along with the certificate of reservation issued to the retailer by the commission and payment of $1,000 per video lottery terminal stated in the certificate of reservation shall be issued a permit or an amended permit.

16.10. An applicant shall not be issued a permit to purchase or lease video lottery terminals from a licensed manufacturer or a certificate of reservation if the applicant held a private club license or Class “A” nonintoxicating beer license on January 1, 2001, and if on August 1, 2001, the person does not qualify for issuance of a limited video lottery license. The person shall be required to obtain all video lottery terminals from a licensed operator or be a successful bidder under W.Va. Code §29-22B-1107 if the person qualify in the future for a limited video lottery retailer’s license.

16.11. An applicant shall not be issued a permit to purchase or lease video lottery terminals from a licensed manufacturer or a certificate of reservation if the applicant held a Class “A” nonintoxicating beer license on January 1, 2001 but not a private club license as of that date, and if on August 1, 2001, the person does not qualify for issuance of a limited video lottery license as a holder of a Class “A” nonintoxicating beer license. The person shall obtain all video lottery terminals from a licensed operator or be a successful bidder under W.Va. Code §29-22B-1107 for authorization to purchase or lease video lottery terminals from a licensed manufacturer if the person is issued a private club license after December 31, 2000, and qualifies for a limited video lottery retailer’s license.

16.12. A certificate of reservation issued by the commission that is not converted to a permit by December 31, 2004 is void.

W. Va. Code R. § 179-5-17 The bidding process

17.1. Mailed and courier-delivered bids shall be addressed as follows:

Submit one (1) original bid to:

State of West Virginia Department of Administration Purchasing Division 2019 Washington Street, East P.O. Box 50130 Charleston, WV 25305-0130

17.2. The outside envelope/package(s) should be clearly marked:

17.2.a. Buyer: , Director;

17.2.b. Req.: Video Lottery Permit Bids;

17.2.c. Date: (opening) ________; and

17.2.d. Time: (opening) ________ .

17.3. Bids submitted by facsimile, or by other means not specifically provided for in this rule, shall be rejected.

17.4. Failure of the United States Postal Service or a courier service to make timely delivery of any bid shall not act to validate any bid not in the hands of the Purchasing Division by the time and date specified in the class II-O advertisement.

17.5. Each bid shall indicate both the number of video lottery terminals for which the permit is sought and the per-terminal bid for which the permit is sought.

17.6. No bid may be altered or withdrawn after the appointed hour for the opening of the bids.

17.7. The Purchasing Division officials will open all received bids in the same room;

17.7.a. The Lottery’s representatives shall reject any bid bid package does not comply with this rule or W. Va. Code §§29-22B-1101 through 1103;

17.7.b. The Lottery’s representatives will next determine whether the bid sent to the Purchasing Division contains a bid bond equal to 100 percent of the per-terminal bid amount multiplied by the number of video lottery terminal authorizations requested by the bid;

17.7.b.1. If no bond or State Treasurer’s receipt is found, the bid shall be rejected; or

17.7.b.2. If the amount of the bond is less than 100 percent of the per-terminal bid amount multiplied by the number of video lottery terminal authorizations requested, the bid shall be rejected; and

17.7.c. The Lottery’s representatives shall next reject any bid as non-responsive if the per terminal bid amount is less than the minimum per-terminal bid amount established by the West Virginia State Lottery Commission prior to the first publication and included in the published notice;

17.7.d. The Lottery’s representatives shall reduce the number of terminal authorizations requested in the bid if a successful bid would grant to the bidder a total number of video lottery terminals greater than 7.5% of the total available terminals authorized by the Act. If the bidder is an operator, a retailer or fraternal organization operating one location, lottery representatives shall limit the number of terminal authorizations requested in the bid to 10. When the bidder is an independently owned video lottery retailer operating its own machines and has more than one licensed retail location, the number of video lottery terminal authorizations may not exceed 10 multiplied by the number of retail locations for which the bidder holds a limited video lottery retail license;

17.7.e. Whenever there are two or more bids of the same dollar amount and the number of authorizations for which the bids were submitted exceeds the number of authorizations still available to fill the bids, the commission shall award the permit based upon the drawing of lots among the bidders; and

17.7.f. Once all bids are opened, those bids that have passed all qualitative checks will be arranged in per-terminal amount from highest bid to lowest bid and the results posted by representatives of the Lottery in a spreadsheet or on a marker board. Each listing shall show the following information:

17.7.f.1. Name of the Bidder;

17.7.f.2. Per terminal amount bid in US dollars;

17.7.f.3. Number of terminal authorizations requested; and

17.7.f.4. Number of terminal authorizations remaining after this bid opening is completed.

17.8. All permits shall be signed by the director of the lottery in the name of the state of West Virginia and shall state number of video lottery terminals the permit authorizes the holder to own or lease from licensed manufacturers.

W. Va. Code R. § 179-5-18 Examples of the preference for current permit holders

18.1. The preference for current permit holders allowed by W.Va. Code §29-22B-1108 shall be computed by adding 5 percent of the bid price submitted by the current permit holder to the amount of the bid submitted by that holder;

18.1.a. Example for year 2031. Operator “A” holds a current permit to own or lease 500 video lottery terminals. Operator “A” submits a bid of $4,000 per terminal for authorization to own or lease 500 terminals during the 10-year period that begins July 1, 2031. The minimum bid amount set by the commission is $4,000 per terminal authorization. When the bids are opened and the amounts of the per terminal bids are arranged from highest to lowest, it is apparent that operator “A” is not a successful bidder for some or all of the permits sought by operator “A.” Before the permits are awarded, the commission will apply the 5 percent preference to bids submitted by a current permittee whose bids equal or exceed the minimum per terminal bid authorization amount set by the commission. With this preference added, operator “A’s” bid of $4,000 per terminal authorization is effectively $4,200 per terminal authorization. Because of this preference, operator “A” is a successful bidder for 500 video lottery terminal authorizations. The amount due from operator “A” will be $2.1 million plus applicable license fees. The amount due shall be paid to the commission on or before the dated set by the commission.

18.2. The preference may not be calculated on any bid that is for less than the minimum per terminal authorization bid price set by the commission.

18.3. For all bids conducted subsequent to June 30, 2011, the commission shall give a priority preference to allow current permit holders to acquire permits which are held by those permit holders at the minimum stated bid price before those permits are made available for bid to other applicants, as set forth in W. Va. Code §29-22B-1107(a).

W. Va. Code R. § 179-5-19 Operator - retailer contracts

19.1. A true copy of all contracts the applicant has entered into with persons who hold a limited video lottery retailer’s license issued under the Act for placement of video lottery terminals in the premises of the limited video lottery retailer for whom authorizations were reserved shall be attached to the application along with a true copy of the certificate of reservation issued by the commission to that video lottery retailer.

19.2. The contract between the operator and the limited video lottery retailer shall be in writing and be signed by the parties, or their duly authorized representative when the party is a person who is not an individual;

19.2.a. The commission shall supply a contract elements form to provide quick and easy review of the important terms and elements of each contract;

19.2.b. The operator submitting each contract shall list the required information and contract terms from the signed contract onto the commission-supplied form and shall staple the form onto the appropriate contract prior to filing the contract with the commission; and

19.2.c. The operator shall provide to the commission an affidavit stapled to each contract, which is signed and attested to by the operator’s chief executive stating that this contract is the only contract, agreement or understanding, written or oral, between the operator and the licensed video lottery retailer concerning the placement and operation of limited video lottery terminals, and that the operator will execute no further limited video lottery agreements with the retailer so long as this attached agreement is in force for video lottery terminals on the premise of the retailer stated in the contract. Any other agreements between the operator and the limited video lottery retailer shall be identified by the operator and are subject to review by the commission. Those agreements shall be negotiated in good faith and for fair market consideration, and shall not be for excess or unreasonable consideration designed to circumvent the requirement of this subdivision 19.2.c of this subsection.

W. Va. Code R. § 179-5-20 Additional requirements regarding the 150-foot requirement for location of a limited video lottery retailer license

20.1. A retailer license will not be denied based solely on the proposed establishment being closer than 150 feet to an existing limited video lottery retail licensee or in a structure where another limited video lottery licensee was already licensed to conduct video lottery games so long as the initial application for a limited video lottery retailer license for the premises was applied for on or before July 1, 2002 if an applicant applies for a limited video lottery license for a specific premise which was a licensed ABCA location under a valid and continuing private club liquor license or a Class “A” nonintoxicating beer license on or before January 1, 2001, and if an ABCA license for that premises is still in effect at the time of the filing of the application for a limited video lottery license for the same premise.

20.2. After July 1, 2002, the initial exemption from the 150-foot restriction and the single structure under one roof restriction as stated in subsection 20.1 of this rule shall be considered waived for the premises whenever a premises that has initially been licensed by the commission as a limited video lottery retail location ceases to offer limited video lottery gaming for at least 180 consecutive days. Until the 180-day period has passed, no new limited video lottery retailer license shall be granted for a premises closer than 150 feet to the previously-licensed premises.

20.3. The award of the license shall be determined based on the date the applications were received in the state lottery office when two or more applications for a limited video lottery retailer’s license are pending at the same time, if the proposed premise of each applicant would be in the same structure under one roof, and each applicant meets all other requirements for a retailer license;

20.3.a. The license shall be awarded to the applicant who first filed a complete application; and

20.3.b. The license shall be issued by the commission by lots when the applications were received on the same day.

20.4. The award of a retailer license shall be determined based on the date the applications were received in the state lottery office when two applications for limited video lottery retailer’s licenses are pending at the same time for premises that are within 150 feet of each other, and neither premise is within 150 feet of an existing licensee;

20.4.a. The license shall be awarded to the applicant who first filed a complete application; and

20.4.b. The license shall be issued by the commission by lots when the applications were received on the same day.

20.5. The award of a retailer license shall be determined based on the date the applications were received in the state lottery office when more than two applicants for limited video lottery retailer’s license are pending at the same time for premises that are within 150 feet of one or more other applicants;

20.5.a. The license shall be awarded to the applicant who first filed a complete application if complete applications were received on the same day, the commission shall first eliminate one or more applicants if by doing so, the remaining applicants would comply with the 150-foot restriction; and

20.5.b. The award of the license shall be determined by the commission by lots when elimination of one or more applicants will not make other applicants eligible.

W. Va. Code R. § 179-5-21 Testing and installation of approved lottery terminals

21.1. The request for original approval or subsequent modification shall be made directly to one of the commission’s designated independent testing laboratories.

21.2. The request for modification shall contain a detailed description of the type of change, the reasons for the change and technical documentation of the change.

21.3. Each video lottery terminal approved for placement at a licensed location shall conform to the exact specifications of the video lottery terminal prototype tested and approved by the independent testing laboratory, and approved by the commission.

21.4. The director shall disable and cause not to operate during the suspension period every video lottery terminal supplied by the operator to all licensed video lottery retailers when an operator’s license is suspended.

21.5. The director shall disable and cause not to operate during a license suspension period every video lottery terminal owned or leased by the permittee when the license of a video lottery retailer who is also a permittee is suspended.

21.6. The director shall disable and cause not to operate during the suspension period every video lottery terminal supplied by the manufacturer to permittees that are placed in licensed video lottery retailer locations when a manufacturer’s license is suspended.

W. Va. Code R. § 179-5-22 Transportation from manufacturer and registration of video lottery terminals

22.1. A manufacturer transporting or arranging for the transportation of one or more video lottery terminals into this state shall, prior to shipment, provide the commission with the number or other identification mark that identifies the security seal on the container within the cargo compartment of the carrier delivering one or more video lottery terminals to a permittee.

22.2. Notices required by this section twenty-two and W.Va. Code §29-22B-1205 shall be either by United States mail, by courier service, by facsimile or by Internet electronic mail using the format prescribed by the commission.

22.3. No operator or limited video lottery retailer who holds a permit to own or lease a video lottery terminal may transport, or arrange for the transportation of, a video lottery terminal to a non-licensed retail location, or to a licensed limited access adult-only location if the transported terminal or terminals will result in more video lottery terminals in the new location than has been authorized by the commission.

W. Va. Code R. § 179-5-23 Training for service technician licensees and license applicants

23.1. Instructors for service technician training classes shall be employed by the manufacturer or be retained by the manufacturer under contract.

23.2. No individual may act as an instructor who is an officer, principal or employee of a person that holds a limited video lottery license as an operator, retailer or service technician.

W. Va. Code R. § 179-5-24 Master keys

24.1. Each licensed manufacturer shall provide the commission with 40 copies of the master key for access into the logic area door of the manufacturer’s video lottery terminals placed in operation.

24.2. No manufacturer may provide any copies of the logic area access key to any operator, retailer, service technician or to any other person other than the commission.

24.3. The object of subsections 24.1 and 24.2 of this section is that one master key shall be capable of opening all video lottery terminals the manufacturer sells or leases to permittees for use in locations governed by the Act and this rule.

W. Va. Code R. § 179-5-25 Sealing the logic area of the video lottery terminal and the controller unit

25.1. The commission shall provide logic box and controller unit security seals for each video lottery terminal and controller unit in operation.

25.2. The seal shall be affixed by commission personnel to prevent unauthorized access to the video lottery terminal logic unit or tampering with the controller unit.

25.3. Any licensee that discovers a broken or torn seal shall immediately report the incident to the lottery commission by telephone and shall also report to the commission in writing within thirty-six hours by facsimile or Internet electronic mail;

25.3.a. The reporting licensee shall identify himself or herself by name and by license number;

25.3.b. The reporting licensee shall identify the video lottery terminal by location, license number and decal number;

25.3.c. The reporting licensee shall report the date and time when the broken or torn seal was discovered; and

25.3.d. The reporting licensee may state the hard meter reading of the video lottery terminal at the time the broken or torn seal was discovered.

25.4. Upon receipt of a report that a seal has been broken or torn, the commission shall disable the video lottery terminal.

25.5. The video lottery terminal shall remain disabled until completion by the commission of an investigation of the seal damage.

W. Va. Code R. § 179-5-26 Repairs to logic board or circuitry

26.1. Reports required by W.Va. Code §29-22B-1304 may be delivered by United States mail, by courier service, by facsimile or by Internet electronic mail using the format prescribed by the commission.

W. Va. Code R. § 179-5-27 Accounting for the state’s share of gross terminal income

27.1. The gross terminal income from all operating video lottery terminals of a permittee shall be calculated monthly by the commission based on the calendar month.

27.2. The commission shall send a statement to each permittee of the following information for each machine covered by the permittee’s permit that was in service for any portion of the calendar month covered by the calculations:

27.2.a. Credits played;

27.2.b. Credits won;

27.2.c. Gross terminal income;

27.2.d. Two percent of gross terminal income for the commission’s administrative expenses;

27.2.e. Gross profits;

27.2.f. The commission’s share rate applicable to gross profits for the current quarter; and

27.2.g. The commission’s two percent of gross terminal income plus the commission’s net terminal income to be swept from the permittee’s account by electronic fund transfer.

27.3. Each licensed permittee shall maintain in its bank account an amount equal to or greater than the commission’s two percent of gross terminal income plus the commission’s net terminal income from its operation of video lottery machines, to be electronically transferred by the lottery commission on the tenth day of the month that follows the month for which the report is made. If the tenth day of the month falls on a Saturday, Sunday or legal holiday, as that term is defined in W. Va. Code §2-2-1, the due date shall be the next day that is not a Saturday, Sunday or legal holiday.

27.4. If a permittee fails to maintain the bank account balance required in W.Va. Code §29-22B-1401(b), the commission may disable all of a permittee’s video lottery terminals until full payment of all amounts due is made;

27.4.a. If the commission receives a non-sufficient funds message from the permittee’s depository bank:

27.4.a.1. The director shall suspend the permittee’s license until the permittee has paid the full amount owed to the Lottery by cashier’s check, or certified check, or money order, or cash, and also has paid the one hundred percent civil penalty provided for in W.Va. Code §29-22B-1407(a); and

27.4.a.2. The director shall issue a warning letter containing an explanation the consequences of a future non-sufficient funds message; and

27.4.b. If the permittee does not settle for all moneys and penalties due to the commission within thirty days after the commission’s demand for payment of non-sufficient funds amounts, the director shall recommend to the commission that the permittee’s license and ten-year permit be revoked; and

27.4.c. If the commission receives three non-sufficient funds messages within any twelve consecutive month period, the director shall recommend to the commission that the permittee’s license and ten-year permit be revoked.

27.5. Interest shall accrue on any unpaid balance due the commission at the rates charged for state tax delinquency under W.Va. Code §11-10-17a;

27.5.a. The interest shall begin to accrue on the date payment is due to the commission and shall continue to accrue until the amount due, including applicable interest, is paid; and

27.5.b. Payments shall be applied first to interest and then to the balance of the amount due the commission.

27.6. The statement required in this section may be transmitted to the permittee by United States mail, facsimile or Internet e-mail.

W. Va. Code R. § 179-5-28 Resolution of discrepancies

28.1. The commission will not withhold from money it owes to an operator and pay that money to a retailer unless directed to do so by a state court of record.

W. Va. Code R. § 179-5-29 Pay over of state’s share of gross terminal income when electronic funds transfer is inoperative

29.1. The commission shall monthly transfer from each permittee’s bank account the state’s share of gross terminal income as calculated under subdivision 27.2.g of this rule.

29.2. The permittee shall remit payment by mail if the electronic transfer of funds is not operational or the commission notifies the permittee that remittance by this method is required.

29.3. Using the commission’s statement under W.Va. Code §29-22B-1408, the permittee shall report, for each video lottery terminal operated by a licensee, the following information on forms prepared and supplied by the commission:

29.3.a. Credits played;

29.3.b. Credits won;

29.3.c. Gross terminal income;

29.3.d. Two percent of gross terminal income for the commission’s administrative expenses;

29.3.e. Gross profits;

29.3.f. The commission’s share rate applicable to gross profits for the current quarter; and

29.3.g. The lottery commission’s two percent of gross terminal income plus the commission’s net terminal income to be swept from the permittee’s account by electronic fund transfer.

29.4. The permittee shall remit to the commission the amount calculated in subdivision 29.3.g of this rule;

29.4.a. The remittance shall be sealed in a properly addressed and stamped envelope and deposited in the United States mail no later than noon on the tenth day of the month that follows the month for which the report is made; and

29.4.b. If the tenth day of the month falls on a Saturday, Sunday or legal holiday, the due date shall be the next day that is not a Saturday, Sunday or legal holiday.

29.5. The rule regarding non-sufficient funds messages from the permittee’s depository bank contained in subsection 27.4 and subdivisions 27.4.a through 27.4.c of this rule also apply to payments made by check to the commission under provisions of this section.

W. Va. Code R. § 179-5-30 Examination of permittee and retailer books and records

30.1. The commission has the right to examine all accounts, bank accounts, financial statements and records in a retailer licensee’s possession, under its control or in which it has an interest, when the retailer is not also a permittee, and the licensed retailer shall authorize all third parties in possession or in control of the accounts or records to allow examination of any of those accounts or records by the commission.

W. Va. Code R. § 179-5-31 Additional requirements concerning appeal of an order

31.1. A petition for hearing shall be served on the commission by delivery in one of the following ways:

31.1.a. Personal delivery to the West Virginia lottery’s central office at the address stated in the order, during regular business hours and excluding Saturdays, Sundays and legal holidays;

31.1.b. United States mail, postage prepaid, addressed to the post office box stated in the order;

31.1.c. Delivery to the West Virginia lottery’s central office by private companies such as Airborne, DHL, Federal Express and United Parcel Service; or

31.1.d. Facsimile transmission to telephone number stated in the order. When the petition is delivered by facsimile transmission, the original of the petition and required security shall immediately be delivered to the commission using one of the delivery methods set forth in subdivisions 31.1.a, 31.1.b or 31.1.c.

31.2. Filing of the petition and subsequent documents is in each case effective upon delivery to the West Virginia lottery’s central office and is not effective upon mailing or pickup by a private delivery company.

31.3. Copies of all documents filed in an appeal under this section must be served upon all other parties.

W. Va. Code R. § 179-5-32 Judicial review

32.1. The petition for appeal shall be filed in conformity with the requirements of W. Va. Code §29A-5-4.

32.2. Any party to the proceeding in circuit court or the Intermediate Court of Appeals, as provided for in W. Va. Code §51-11-1, et seq., may appeal an adverse decision of said court to the Supreme Court of Appeals of West Virginia, as provided in W. Va. Code §29A-5-4(h).

32.3. The application for appeal to the supreme court of appeals shall be filed within the time provided by law for civil appeals generally in W. Va. Rules of Appellate Procedure, Supreme Court of Appeals of West Virginia.

W. Va. Code R. § 179-5-33 Restrictions on retailer and operator advertising and promotion activities; restriction on retailer corporation and doing-business-as names of retail license locations

33.1. A limited video lottery licensed operator shall not conduct video lottery advertising.

33.2. A limited video lottery licensed retailer and/or operator shall not conduct video lottery Advertising or video lottery promotional activities: Provided, that a limited video lottery retailer may display a sign on the exterior of the establishment that states “Limited Video Lottery Location” which sign is of uniform size and design, no greater than eighteen (18) inches by eighteen (18) inches, produced and distributed to retailers by the lottery commission;

33.3. A limited video lottery licensed retailer and/or operator may use the words “Limited Video Lottery Location” on one sign used to identify that the location has video lottery machines. Such sign shall conform to the following guidelines:

33.3.a. The sign shall not to exceed six (6) square feet in size as an addition to a sign currently being used by the licensed retailer and/or operator setting forth name of the approved retailer, or the area in which the words “Limited Video Lottery Location” appear on any new sign developed pursuant to this rule shall not exceed six (6) square feet in size;

33.3.b. The sign shall be affixed in one location on the outside of the licensed retail location; and the sign can be double-sided if the existing sign identifying the name of the licensed retail location is also double-sided;

33.3.c. The sign shall have a white background with a single color of black, red or dark blue lettering;

33.3.d. The font used in the sign shall be Helvetica or Arial and said font cannot exceed three inches in height or width per character; and

33.3.e. The sign can be illuminated but shall not have flashing or intermittent lights.

33.4. A limited video lottery licensed retailer and/or operator may use social media platforms to identify the licensed retail location. The use of social media to depict an image of the outdoor signage and indoor décor of the licensed retail location is permitted. Additionally, licensed retailers may use a written description of the licensed retail location and activities offered therein, including a description of the video lottery machines. Pictures of video lottery machines are strictly prohibited. Additionally, all social media advertising, regardless of form, shall include the statement “Gambling Problem? Call 1-800-Gambler. Must be 21 to Play.” All social media advertising must also abide by the terms of the social media platform regarding gambling;

33.5. A limited video lottery licensed retailer and/or operator may use the words “Limited Video Lottery” in an advertisement to hire an employee, which can be utilized in print media or placed online using social media;

33.6. A limited video lottery licensed retailer and/or operator shall not use words commonly associated with gambling either in its corporate name or in its doing-business-as (“DBA”) name;

33.7. A limited video lottery licensed retailer and/or operator shall not use gambling symbols including but not limited to playing cards, roulette wheels, slot machines or dice on any sign or in any directions or advertising visible from outside the licensed retailer’s establishment; and

33.8. Nothing contained in this section prohibits the advertising on radio and television of scratch off “instant” lottery games, online numbers games such as PowerBall®, racetrack video lottery games or new lottery games other than limited video lottery games.

W. Va. Code R. § 179-5-34 Prohibition against a business selling petroleum products establishing a separate room or building which is a part of, contiguous to, or adjoining the place of business as a restricted access adult-only facility

34.1. The commission may grant a license to and renew the license of an applicant for a limited video lottery retailer license for a restricted access adult-only facility that is contiguous to or adjoining a business that sells petroleum products so long as all of the following requirements are met:

34.1.a. The restricted access adult-only facility is not owned or operated either directly or indirectly by a direct or indirect owner of the business selling petroleum products; and

34.1.b. If the facility is leased, directly or indirectly, from the business selling petroleum products or from the direct or indirect owner of that business, the lease must be for a fixed monthly fair market rent and may not be based, in whole or in part, on the gross or net income of the video lottery terminals or on the video lottery income of the tenant licensee; or

34.1.c. If the facility is leased, directly or indirectly, from the landlord who directly or indirectly also leases space to the business selling petroleum product, the lease must be for a fixed monthly fair market rent and may not be based, in whole or in part, on the gross or net income of the video lottery terminals or on the video lottery income of the tenant licensee.

34.2. The commission shall not grant a license to an applicant for a restricted access adult-only facility that fits within one or more of the following situations:

34.2.a. A business that sells petroleum products has subdivided its building or space within a building in order to create a restricted access adult-only facility to be owned or operated either directly or indirectly by a direct or indirect owner of the business that sells petroleum products;

34.2.b. The owner of a commercial business facility leased to a business that sells petroleum products has subdivided the facility on or after April 21, 2001, in order to create a restricted access adult-only facility to be owned or operated either directly or indirectly by a direct or indirect owner of the lessor;

34.2.c. A business that sells petroleum products has subdivided its parcel of land in order to create a restricted access adult-only facility to be owned or operated either directly or indirectly by a direct or indirect owner of the business selling petroleum products;

34.2.d. The owner of a commercial business facility leased to a business that sells petroleum products has subdivided the parcel of land on which the business selling petroleum products operates in order to create a restricted access adult-only facility on a separate parcel to be owned or operated either directly or indirectly by a direct or indirect owner of the lessor or the business selling petroleum products ;

34.2.e. The restricted access adult-only facility is in a facility that is contiguous to, adjoining, or on a parcel of real property adjoining a business that sells petroleum products and is owned or operated either directly or indirectly by a direct or indirect owner of the business selling petroleum products;

34.2.f. The restricted access adult-only facility is leased from an adjoining or contiguous business selling petroleum products, and the consideration for the lease is based in whole or in part on the gross or net income of the video lottery terminals or on the video lottery income of the tenant; or

34.2.g. The restricted access adult-only facility is leased from the same landlord who also leases space to an adjoining or contiguously located business selling petroleum products, and the consideration for the lease is based in whole or in part on the gross or net income of the video lottery terminals or on the video lottery income of the tenant.

34.3. For purposes of determining whether property is “directly or indirectly” owned or leased by or from a related person, the related party rules set forth in 26 U.S.C. §§267 and 707, as amended, apply, including any regulations for that section issued by the United States Secretary of the Treasury, which are hereby incorporated by reference.

W. Va. Code R. § 179-5-35 Prohibition Against Extending Credit

35.1. A video lottery retailer shall not extend credit, in any manner, to a player to enable the player to play a video lottery game.

35.2. For purposes of this rule, a video lottery retailer shall be deemed to be extending credit when he or she knows or has reason to know that the proceeds of the check will be used to play or continue to play a video lottery game.

W. Va. Code R. § 179-5-36 Permits to purchase, own and operate video lottery terminals; expiration date

36.1. The commission shall issue an amended permit which shall expire at 12:00 a.m. in this state on July 1, 2031 when the number of video lottery terminals a permittee is allowed to own or lease increases or decreases.

36.2. A permit to own or lease video lottery terminals issued after July 1, 2021 for the 10-year period that ends June 30, 2031, expires at 12:00 a.m. in this state on July 1, 2031, unless it is surrendered or revoked before that time. When the number of video lottery terminals a permittee is allowed to own or lease increases or decreases, the commission shall issue an amended permit which shall expire at 12:00 a.m. in this state on July 1, 2031.

36.3. A person licensed as a limited video lottery retail shall continuously meet the qualifications for issuance of that license. If the limited video lottery license is surrendered or revoked by the commission, the licensee’s permit to own or lease video lottery terminals shall also be surrendered or revoked.

36.4. A licensee’s permit expires at 12:00 a.m. on the 31st day if the person’s license as a limited video lottery retailer expires and the license is not renewed within 30 days after the expiration date. The person shall then obtain all video lottery terminals on the premises for which the license is issued from a licensed operator or as a result of a successful bid under W.Va. Code §29-22B-1107 if the person subsequently reapplies for a limited video lottery retailer’s license and the license is issued.

36.5. A permit to own or lease video lottery terminals is a revocable privilege granted pursuant to the provision of the Act and this rule. Issuance of a permit or a license under the Act does not create (A) any property interest in the permit or the license, (B) any right to transfer or encumber the permit or license, (C) any vested right in the permit or license, or (D) the accrual of any value to the privilege of participating in any limited video lottery activity.

36.6. An application for a limited video lottery retailer’s license may not include more than one physical location. A separate application shall be submitted for each location at which the applicant wants to offer video lottery terminals if a person owns or operates two or more physical locations licensed by the ABCA.

Series 06 Notice And Conduct Of Meetings

W. Va. Code R. § 179-6-1 General

1.1. Scope. -- This procedural rule establishes requirements for notice of meetings and general rules for conduct of said meetings.

1.2. Authority. -- W. Va. Code §§6-9A-3 and 29-22-5.

1.3. Filing Date. -- June 17, 2004.

1.4. Effective Date. -- July 18, 2004.

W. Va. Code R. § 179-6-2 Preface

2.1. The West Virginia Legislature has provided in W. Va. Code §6-9A-1 that all regular and special meetings of governing bodies shall be open to the people of the State and that the people shall be given reasonable advance notice of the time, date and location of such meetings being convened: Provided, however, that governing bodies may hold executive sessions as part of duly convened regular, special or emergency meetings under certain circumstances as permitted by law.

2.2. The Legislature has provided in W. Va. Code §6-9A-3 that each governing body shall promulgate rules by which the time, place and agenda of all regularly scheduled meetings and the time, place and purpose of all special meetings are made available, in advance, to the public and news media, except in the event of an emergency requiring immediate official attention;

2.3. W. Va. Code §29-22-4(c) provides that the state lottery commission shall hold at least one meeting each month, and additional meetings may be called by the chairman, the Lottery director or a majority of the commission members.

W. Va. Code R. § 179-6-3 Notice of Meetings

3.1. The State Lottery Commission shall meet at its headquarters building located at 312 MacCorkle Avenue in the City of Charleston, or at such other locations as the commission may from time to time deem necessary.

3.2. Regular and Special Meetings -- Notice of regularly scheduled meetings and special meetings shall be provided through the State Register, administered by the West Virginia Secretary of State's office, and also shall be posted on the Commission's website at http://www/wvlottery.com. Meeting notices shall be published in the state register at least five days prior to the date of the meeting. Each notice shall contain the time, date, and location of the meeting. The agenda of the meeting shall be posted on the commission’s website and made available in the commission’s Charleston headquarters at least three days prior to the date of the meeting. This advance period excludes the day of the meeting, along with Saturdays, Sundays and legal holidays.

3.3. Emergency Meetings -- The notice of any emergency meeting shall be published in the State Register, at any time prior to the meeting, and on the Commission's website, and shall include the date, time, place and purpose of the meeting. Any notice of an emergency meeting shall state the facts and circumstances of the emergency.

3.4. The minutes of the commission’s meetings shall be open to the inspection of any member of the public at the Charleston office, as provided by W. Va. Code §6-9A-5.

W. Va. Code R. § 179-6-4 Conduct of Meetings

4.1. All meetings must be open to the public, although the commission may, either on its own initiative or upon the request of an interested party, hold an executive session during a meeting after its presiding officer has identified the authorization under W. Va. Code §6-9A-4 for the holding of such executive session and has presented it to the governing body and to the general public, as required by W. Va. Code §6-9A-4. An executive session will only be held upon a majority affirmative vote of the commission members present or attending by teleconference.

4.2. Persons desiring to address the commission are encouraged to make arrangements in advance with the commission. However, advance arrangements are not necessary as such person may sign in prior to the scheduled commencement of any regular or special meeting. Any speaker shall provide his/her name, mailing address, telephone number and the subject to be addressed. Presentations shall be limited to five minutes, unless otherwise designated by the commission. Delegations are encouraged to use a spokesperson to present their concerns or proposals.

4.3. The chairman may have a person removed from the meeting room if the person, in the opinion of the chair, is disrupting the meeting to such an extent as to compromise the orderly conduct of the meeting. A motion to review the decision of the chair to have a person removed from the meeting shall have precedence over all other business, and a simple majority of members present and voting shall be necessary to overrule the initial decision of the chair.

W. Va. Code R. § 179-6-5 Meeting by Conference Call

5.1. Occasions may arise when one or more commission members are not available to attend a meeting in person. On such occasions, members may attend and participate in the meeting by telephone or video teleconference to the same extent as if physically present. A speakerphone or other audio/video device shall be used at the meeting site to enable those present, including the public, to hear/see the members who are attending and participating by telephone or video teleconference.

179CSR6

179CSR6

Series 07 Lottery Interpretive Rule

W. Va. Code R. § 179-7-1 General

Scope and Purpose. - The purpose of this interpretive rule is to disclose how the State Lottery Commission will interpret, clarify and explain provisions of either the Racetrack Video Lottery Act codified in W.Va. Code §29-22A-1 et seq., or the Limited Video Lottery Act codified in W.Va. Code §29-22B-101 et seq., or in both acts.

Authority. - W. Va. Code - §29A-3-4

1.3. Filing Date. - October 4, 2017 Effective Date. - November 4, 2017 §179-7-2 Interpretation of terms and words found in the Limited Video Lottery Act.

2.1. “Fraternal society,” as the term is found in W.Va. Code §29-22B-1101(c), means a retail licensee that is either a fraternal beneficiary society that is exempt from federal income tax under section 501(c)(8)of the Internal Revenue Code of 1986, as amended, or a domestic fraternal society that is exempt from federal income tax under section 501(c) (10) of the Internal Revenue Code, and was an existing chapter or local unit of a national tax exempt fraternal benefit society or a domestic fraternal society organized under the lodge system on the first day of January two thousand one. 2.2 “Licensed limited video lottery location approved by the commission,” as the term is found in W.Va. Code §29-22B-1201(a), means the location in excess of the following straight-line distances from any of the following places:

2.2.a. The location is at least one hundred fifty feet from, or has an external structural connection not amounting to a common internal wall to, a premises that already has a retail license for video lottery terminals, a business that sells petroleum products capable of being used as fuel in an internal combustion engine, or the perimeter of a public park;

2.2.b. The location is at least three hundred feet from a church, school, or daycare center; or

2.2.c. The location is an Authorized West Virginia Truck Stop pursuant to W.Va. Code of State Rules § 179-5-2.12.a.

2.3. “Monitor,” as the word is found in W.Va. Code §29-22B-702, means that the licensed premises must be staffed at all times when limited video lottery games are being played. This interpretation means that a person who views the video lottery licensed premises on a video screen in a place outside the premises described in the licensees license from the Alcohol Beverage Control Administration and the license from the State Lottery Commission is not monitoring “ …video lottery terminals to prevent access or play by persons who are under the age of twenty-one years or who are visibly intoxicated,” as required by section 702(8) of the Act. This interpretation is also in keeping with W.Va. Code §29-22B-1201(c) that says, Personnel of the limited video lottery retailer shall be present during all hours of operation at each video lottery terminal location. These personnel shall make periodic inspections of the restricted access adult-only facility in order to provide for the safe and approved operation of the video lottery terminals and the safety and well-being of the players. 2.4 “Veterans organization,” as the term is found in W.Va. Code §29-22B-1101(c), means a retail licensee that is exempt from federal income tax under section 501(c)(19) of the Internal Revenue Code and was an existing chapter, post or local unit of a national tax exempt veterans organization organized under the lodge system on the first day of January two thousand one.

W. Va. Code R. § 179-7-3 Interpretation of terms and words found in the Racetrack Video Lottery Act

3.1. As used in W.Va. Code §29-22A-8(l), the word “voids” in the sentence that says, The sale of more than five percent of a license or permit holder's voting stock, or more than five percent of the voting stock of a corporation which controls the license or permit holder or the sale of a license or permit holder's assets, other than those bought and sold in the ordinary course of business, or any interest therein, to any person not already determined to have met the qualifications of section seven of this article voids the license unless the sale has been approved in advance by the commission, means that the license is void after due process has been afforded to the licensee or permit holder and a final order has been entered. In that same sentence, the word “person” does not include acquisition of common stock of a licensee or permit holder by a state or federally licensed banking institution, nor does it include acquisition of licensee or permit holder’s stock by an institutional investor such as a pension fund or a mutual fund registered with the United States Securities and Exchange Commission, as well as a registered investment company, a registered investment advisor, a collective trust fund or a qualified insurance company as those entities are defined in the Investment Company Act of 1940 and the Investment Advisors Act of 1940, that is holding the stock only as an investment and not for purposes of control of the licensee or permit holder. 3.2 W.Va. Code §29-22A-6(c)(3) now reads in part as follows:

(c) Each video lottery terminal shall meet the following maximum and minimum theoretical percentage payout during the expected lifetime of said terminal: … (3) Each terminal shall have a probability greater than one in seventeen million of obtaining the maximum payout for each play.

The Commission’s interpretation of W.Va. Code §29-22A-6(c)(3) is that the word “play” means the initial time a video lottery terminal’s play button is pushed, or its play lever is pulled, or the initial spin of its reels after the video lottery terminals receive a base wager. When there are several “plays” within a game as the term “game” is defined by W.Va. Code §29-22A-3(y), only the initial play is used to determine the 1-in-17 million odds calculation. Odds for subsequent optional selections such as bonus features are not used in determining compliance with W.Va. Code §29-22A-6(c)(3). In addition, where the game being played is an interstate or international lottery game authorized under W.Va. Code §29-22-5(a)(5), the odds of the interstate or international game shall be set by the participating government lotteries by contract or agreement.

W. Va. Code R. § 179-7-4 Interpretation of the application of procedures found in 179 CSR 3 pertaining to lottery licensees and the Americans with Disabilities Act. 4.1 In definition section 179 CSR 3; §2.2, the word “Act” means the State Lottery Act, West Virginia code §§29-22-1. It is the interpretation of the State Lottery Commission that the rule should apply to all licensees of the Commission. This is also to include licensees under the Racetrack Video Lottery Act, West Virginia Code §29-22A-1 et seq.; the Limited Video Lottery Act, W.Va. Code §29-22B-101 et seq.; the Racetrack Table Games Act, W.Va. §29-22C-1 et seq.; and the Limited Gaming Facility Act, W.Va. Code §29-25-1 et seq. Under this interpretation, the procedures of 179 CSR 3 applies to any finding by a building official or the West Virginia Human Rights Commission that a licensed lottery location is not in compliance with the ADA

Kokochak v. W.Va. State Lottery Comm., 25 W.Va. 614, 695 S.E.2d 185, April 26, 2010; W.Va. C.S.R. 179-5-2.12.

BPO Elks Lodge #198 v. W.Va. State Lottery Comm., 225 W.Va. 614, 695 S.E.2d 185, April 26, 2010.

179CSR7

179CSR7

Error! Main Document Only.

Series 08 Racetrack Table Games Rule

W. Va. Code R. § 179-8-1 General

1.1. Scope. -- The purpose of this rule is to license and regulate up to four pari-mutuel racetracks licensed by the State Lottery Commission, license gaming suppliers and facility employees and management services providers, and define and regulate the operation of table games at licensed racetracks.

1.2. Authority -- W. Va. Code §29-22C-4(b)(5).

1.3. Filing Date -- April 14, 2008.

1.4. Effective Date -- July 1, 2008.

PART 1. DEFINITIONS

W. Va. Code R. § 179-8-2 Definitions

For the purposes of this rule the following words and phrases have the meaning ascribed to them in this Section unless the context of the rule clearly indicates otherwise, or unless inconsistent with the manifest intention of the State Lottery Commission.

2.1. "Act" means the West Virginia Lottery Racetrack Table Games Act, West Virginia Code §29-22C-1 et seq.

2.2. "Adjusted gross receipts" means the dollar amount that is won by the casino licensee through play at live table games, which is the total of United States currency, chips, front money or markers contained in the drop box, plus ending chip inventory, minus opening chip inventory, plus chip credits, minus table fills, minus match play coupons.

2.3. "Attributed interest" means any direct or indirect interest in a business entity determined by the Commission to be held by an individual through holdings of the individual's immediate family or other persons and not through the individual's actual holdings.

2.4. “Cage” and “cage area” means a secure work area within the casino for cashiers and a storage area for the casino’s working fund of cash and gaming chips; it also serves as a depository control for gaming credit instruments.

2.5. "Cash" means United States currency and coin that may be exchanged for its equivalent United States currency and coin value.

2.6. "Cash equivalent" means an asset that is readily convertible to cash. All instruments that constitute a cash equivalent shall be made payable to the casino licensee, bearer, or cash. If an instrument is made payable to a third party, the instrument shall not be considered a cash equivalent. Cash equivalent instruments include, but are not limited to, any of the following:

2.6.a. Travelers checks;

2.6.b. Certified checks, cashier's checks, and money orders;

2.6.c. Personal checks or drafts;

2.6.d. Credit extended by the casino licensee, a recognized credit card company, or banking institution; and

2.6.e. Any other instrument that the Commission considers a cash equivalent.

2.7. “Casino” means a facility licensed by the Commission to offer to the public both video lottery games under W. Va. Code §29-22A-1 et seq. and W. Va. Code §29-22C-1 et seq.

2.8. "Casino license" means a license issued by the Commission to one person to own and operate one casino in West Virginia under the Racetrack Table Games Act and the Racetrack Video Lottery Act.

2.9. “Casino licensee” means the holder of a license issued by the Commission to one person to own and operate one casino in West Virginia under the Racetrack Table Games Act and the West Virginia Lottery Racetrack Video Lottery Act.

2.10. "Casino operations" means operations of the casino other than gaming operations, including the purveying of food, beverages, and retail goods and services in the gaming areas of the racetrack.

2.11. "Casino surveillance room" means a room or rooms at the casino for monitoring and recording casino operations and gaming operations by the casino licensee.

2.12. "Chip" means a small disk issued by the casino licensee representing a set value that is used for making table game wagers and is redeemable only for cash, the casino licensee’s check or in redemption of a marker.

2.13. "Commission" or "State Lottery Commission" means the State Lottery Commission created by the State Lottery Act, West Virginia Code §§29-22-4 and 5. In context, “Commission” may also mean the state lottery office described in West Virginia Code §§29-22-6 and 7.

2.14. "Complaint form" means the form, prescribed by the Commission, that a patron shall complete and submit in order to file a patron complaint.

2.15. "Counterfeit chip" means a chip that has not been approved under this rule.

2.16. "Count room" means the room or rooms designated for the counting, wrapping, and recording of the casino licensee's gaming receipts.

2.17. "Dependent" means any individual who received over one-half of his or her support in a calendar year from any other individual.

2.18. “Designated gaming area" means one or more specific floor areas of a licensed racetrack within which the commission has authorized operation of racetrack video lottery terminals or table games, or the operation of both racetrack video lottery terminals and West Virginia Lottery table games: Provided, That for the sole purpose of controlling access to such games by employees hired by the casino licensee on or before the fifteenth day of September, two thousand seven, who are at least eighteen years of age and not older than twenty years of age, “designated gaming area” shall mean any floor area of a licensed racetrack which is within two feet of any gaming table.

2.19. "Director" means the individual appointed by the Governor to provide the management and administration necessary to direct the Lottery office or any other person to whom the Director's authority is lawfully delegated.

2.20. "Drop" means the total dollar amount of the currency, coins, chips, tokens, front money and/or markers removed from the live gaming devices. If a patron is using an electronic card, then the drop includes the amount deducted from a patron's account.

2.21. "Drop box" means the dual key-locked box attached to a live gaming device table that is used to collect, but is not limited to, any of the following items:

2.21.a. Currency;

2.21.b. Coin;

2.21.c. Chips;

2.21.d. Cash equivalents;

2.21.e. Damaged chips;

2.21.f. Documents verifying the extension and redemption of credit;

2.21.g. Requests for fill and credit forms;

2.21.h. Fill and credit slips;

2.21.i. Error notification slips;

2.21.j. Table inventory forms; and

2.21.k. All other forms used by the casino licensee and deposited in the drop box as part of the audit trail.

2.22. "Excluded person" means a person whose name appears on an exclusion list of any jurisdiction, or a person whose name does not appear on an exclusion list, but who is excluded or ejected as a result of meeting one or more of the exclusion criteria specified in this rule.

2.23. "Exclusion list" means a list or lists that contain identities of persons who are to be excluded or ejected from any gaming operation in any jurisdiction.

2.24. "Financial statement" means any or all of the following

2.24.a. A balance sheet;

2.24.b. An income statement;

2.24.c. A profit and loss statement;

2.24.d. A statement of cash flow; or

2.24.e. A sources and uses of funds statement.

2.25. "Front money" means a patron deposit that is used in lieu of credit to guarantee payment of a marker issued or to establish a line of credit for wagering purposes.

2.26. “Game" means any individual or particular type of casino table game authorized by the Commission.

2.27. "Gaming area" means the room or rooms in the casino in which table games are conducted.

2.28. "Gaming equipment or supplies" means gaming tables; the felt layouts for live table games; roulette wheels and wheels of fortune; playing cards and dice; drop boxes and count room specialized equipment; any representatives of value, including, without limitation, chips, or electronic debit cards; related hardware and software that do not affect the result of a table game; or machines, mechanisms, devices, or implements that affect the result of a table game by determining a win or loss.

2.29. "Hearing officer" means the Commission member, the Director or the administrative hearing officer designated by the Director to conduct or assist the Commission in the conduct of a hearing on any matter within the jurisdiction of the Commission.

2.30. "Holding company" means any person, other than an individual, that:

2.30.a. Directly or indirectly owns, has the power or right to vote or control, or holds with the power to vote more than five percent of the stock, equity interest, or other voting security of a person that holds, or has applied for, the casino license or a supplier's license; or

2.30.b. Directly or indirectly holds, or substantially owns, any power, right, or security through any interest in a subsidiary or successive subsidiaries, regardless of how many subsidiaries may intervene between the holding company and the holder or applicant for, or holder of, the casino license or a supplier's license.

2.31. "Immediate family" means any of the following, whether by whole or half blood, marriage, adoption, or effect of law:

2.31.a. A spouse, other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance;

2.31.b. A parent;

2.31.c. A child;

2.31.d. A dependent;

2.31.e. A sibling;

2.31.f. A spouse of a sibling;

2.31.g. A father-in-law; or

2.31.h. A mother-in-law.

2.32. "Indirect interest" means an interest, claim, right, legal share, or other financial stake in a person that is determined by the Commission to exist by virtue of a financial or other interest in another person.

2.33. "Individual" means any natural person.

2.34. "Intermediary company" means any corporation, firm, partnership, trust, limited liability company, or other form of business entity that:

2.34.a. Is a holding company of a person that has applied for or holds the casino license or a supplier license; or

2.34.b. Is a direct-line subsidiary of any holding company of a person that has applied for or holds the casino license or supplier license.

2.35. "Internal control system" means the internal procedures, administration, and accounting controls designed by the casino licensee for the purpose of exercising control over the gaming operation and its assets.

2.36. "Junket" means an arrangement to induce persons who are selected or approved for participation on the basis of their ability to satisfy a financial qualification obligation related to their ability or willingness to come to the casino for the purpose of gaming and who receive as consideration all or part of the cost of transportation, food or entertainment directly or indirectly paid by the casino licensee or its agent.

2.37. "Junket representative" means a person, other than the casino licensee or the casino license applicant, who receives payment for the referral, procurement, or selection of persons who may participate in a junket to the casino in West Virginia, based upon the person's actual or calculated potential to wager or lose, whether or not the activities of the junket representative occur within the State of West Virginia.

2.38. "Key person" means any of the following entities:

2.38.a. An officer, director, trustee, partner, or proprietor of a person that holds the casino license or has applied for or holds a supplier license or an affiliate or holding company that has control of a person that has applied for or holds the casino license or a supplier license;

2.38.b. A person that holds a combined direct, indirect, or attributed equity interest of more than five percent in a person that has applied for or holds the casino license or a supplier license;

2.38.c. A person that holds a combined direct, indirect, or attributed equity interest of more than five percent in a person that has a controlling interest in a person that has applied for or holds a casino license or a supplier license;

2.38.d. A managerial employee of a person that has applied for or holds the casino license or a supplier license in West Virginia, or a managerial employee of an affiliate or holding company that has control of a person that has applied for or holds the casino license or a supplier license in West Virginia, who performs the function of principal executive officer, principal operating officer, principal accounting officer, or an equivalent officer;

2.38.e. A managerial employee of a person that has applied for or holds the casino license or a supplier license, or a managerial employee of an affiliate or holding company that has control of a person that has applied for or holds the casino license or supplier license, who will perform or performs the function of gaming operations manager, or will exercise or exercises management, supervisory, or policy-making authority over the proposed or existing gaming operation, casino operation, or supplier business operations in West Virginia and who is not otherwise subject to occupational licensing in West Virginia.; or

2.38.f. An institutional investor who has a controlling interest in the licensee. For purposes of this rule, the term institutional investor does not include owners of common stock of a licensee by a state or federally licensed banking institution, nor does it include ownership of a licensee’s stock by an institutional investor such as a pension fund or a mutual fund registered with the United States Securities and Exchange Commission, as well as a registered investment company, a registered investment advisor, a collective trust fund or a qualified insurance company as those entities are defined in the Investment Company Act of 1940 and the Investment Advisors Act of 1940, that is holding the stock only as an investment and not for purposes of control of the licensee or permit holder.

2.39. "Licensee" means a person who holds a license under the Act.

2.40. "Live game" means a table game that is played at a gaming table operated by employees of the licensed casino who are physically present at the table during all table game play. 2.41 "Live gaming device" means any apparatus used to play table games including, but not limited to, any of the following:

2.41.a. A roulette wheel and table;

2.41.b. A blackjack table;

2.41.c. A craps table;

2.41.d. A poker or other card game table; or

2.41.e. Other Commission-approved table games.

2.42. “Lottery,” when the first letter is capitalized, means the State Lottery of West Virginia, its Director and the State Lottery Commission and its Commissioners that operate and administer the State Lottery, pursuant to authority granted under the Act and under the State Lottery Act, W. Va. Code §29-22-1 et seq., the Racetrack Video Lottery Act, W. Va. Code §29-22A-1 et seq., and the West Virginia Lottery Racetrack Table Games Act, W. Va. Code §29-22C-1 et seq.

2.43. “Lottery-specified identifier symbol” means a logo, symbol or icon that is the intellectual property of the State Lottery Commission created and designated specifically for use on approved table gaming equipment and supplies as allowed by W. Va. Code §29-22C-8(e)(4).

2.44. "Main bank" means the casino department that is responsible for at least all of the following:

2.44.a. Cashing customer checks;

2.44.b. Establishing hold check privileges;

2.44.c. Redeeming chips or tokens, or both;

2.44.d. Providing working funds to all operational departments;

2.44.e. Deposits of front money;

2.44.f. Maintaining custody of all chip inventories;

2.44.g. Processing markers; and

2.44.h. Assuming responsibility for all of the following individuals and physical structures:

2.44.h.1. Casino cashiers;

2.44.h.2. Change attendants;

2.44.h.3. Main bank vault or vaults; and

2.44.h.4. Any other structure that houses tokens, chips, or other representatives of value that for which the main bank is accountable.

2.45. "Marker" means an electronic or written document that evidences an extension of credit to a patron by the casino licensee, or a front money withdrawal, including any writing taken in consolidation, redemption, or payment of a previous marker.

2.46. “Match play coupon” means a promotional item in paper or plastic form with a fixed stated play ratio and value that is issued and used by a licensee, and the stated value of which, when presented by a patron with gaming chips which are in the stated ratio in value to the stated value of the promotional item, is included in the amount of the patron's wager in determining the amount the patron receives as the result of a winning wager made with the gaming chips and their accompanying promotional item.

2.47. "Non-value chip" means a chip which is clearly and permanently impressed, engraved, or imprinted with the name of the casino licensee, but which does not bear a value designation.

2.48. "One-on-one continuous surveillance" means that a licensed surveillance employee is dedicated to continuously monitor a given area without interruption or distraction as prescribed by the Commission.

2.49. "Patron complaint" means a complaint a patron has regarding winnings and losses or the conduct of gaming at the casino.

2.50. "Person" means a human being, association, corporation, club, trust, estate, society, governmental entity, company, joint stock company, receiver, trustee, assignee, referee, and anyone acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of human beings.

2.51. "Picture identification" means a driver’s license or other piece of identification which is issued by a governmental entity and which has a picture of the individual affixed to, or which is otherwise part of, the document.

2.52. "Pit" means the area of arrangement of a group of gaming tables in which casino gaming personnel administer and supervise the live table games played at the grouping of tables.

2.53. "Predecessor company" means an entity which no longer exists in its original form, but which has assets that have been acquired, in substantial part, by another person or which has undergone certain internal changes, such as a change in identity, form, or capital structure.

2.54. "Publicly held company" or "publicly traded corporation" means any of the following:

2.54.a. A person, other than an individual, to which either of the following provisions applies:

2.54.a.1. The person has one or more classes of voting securities registered under section 12 of the Securities and Exchange Act of 1934, 15 U.S.C. § 78l;

2.54.a.2. The person issues securities and is subject to section 15(d) of the Securities and Exchange Act of 1934; or

2.54.a.3. Another person, other than an individual, required to file under the Securities and Exchange Act of 1934; and

2.54.b. A person, other than an individual, created under the laws of a foreign country to which both of the following provisions apply:

2.54.b.1. The person has one or more classes of voting securities registered on the foreign country's securities exchange or over-the-counter market, including any person, other than an individual, that has securities registered or is an issuer under this definition solely because it guaranteed a security issued by an affiliate under a public offering and is considered by the Securities and Exchange Commission to be a co-issuer of a public offering of securities under rule 140 of the Securities and Exchange Act of 1934, 15 U.S.C. § 78;

2.54.b.2. The Commission has determined that the person's activities are regulated in a manner that protects the investors and the State of West Virginia, including any person, other than an individual, that has securities registered or is an issuer under this definition solely because it guaranteed a security issued by an affiliate under a public offering and is considered by the Securities and Exchange Commission to be a co-issuer of a public offering of securities under rule 140 of the Securities and Exchange Act of 1934; and

2.54.c. A person, other than an individual, that has shares which are traded on an established securities market or traded on a secondary market.

2.55. "Registered agent" means an individual designated to accept service of legal process on behalf of another person.

2.56. "Related party" means one of the following:

2.56.a. An individual or business entity that has a pecuniary interest in the casino licensee, a license applicant, or an affiliate thereof, if the casino licensee, license applicant, or affiliate is not a publicly held company;

2.56.b. A holder of more than five percent of the outstanding shares of the casino licensee, a license applicant, or an affiliate thereof, if the casino licensee, license applicant, or affiliate is a publicly held company;

2.56.c. A key person of the casino licensee, a license applicant, or an affiliate of the casino licensee or a license applicant;

2.56.d. An affiliate of the casino licensee or a license applicant;

2.56.e. An immediate family member of a holder of more than five percent of the outstanding shares of the casino licensee, a license applicant, or an affiliate of the casino licensee or a license applicant;

2.56.f. A relative of a key person of the casino licensee, a license applicant, or an affiliate of the casino licensee or a license applicant;

2.56.g. A relative of an affiliate of the casino licensee or a license applicant;

2.56.h. A trust for the benefit of, or managed, by the casino licensee, a license applicant, or an affiliate or a key person of the casino licensee or a license applicant;

2.56.i. Any other person who is able to significantly influence the management or operating policies of the casino licensee, a license applicant, or an affiliate of the casino licensee or a license applicant; or

2.56.j. An institutional investor that has a controlling interest in a person that has applied for or holds the casino license or supplier license.

2.57. "Relative" means any of the following entities whether by whole or half blood, marriage, adoption, or natural relationship:

2.57.a. A spouse, other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance.

2.57.b. A parent;

2.57.c. A grandparent;

2.57.d. A child;

2.57.e. A grandchild;

2.57.f. A sibling;

2.57.g. An uncle;

2.57.h. An aunt;

2.57.i. A nephew;

2.57.j. A niece;

2.57.k. A first cousin;

2.57.l. A father-in-law;

2.57.m. A mother-in-law;

2.57.n. A son-in-law;

2.57.o. A daughter-in-law;

2.57.p. A brother-in-law;

2.57.q. A sister-in-law; or

2.57.r. A dependent.

2.58. "Sole proprietor" means an individual who owns one hundred percent of the assets and who is principally liable for the debts of a business, regardless of whether another person guarantees payment of the debts.

2.59. "Subsidiary" means a person, other than an individual, including, without limitation, a firm, partnership, trust, limited liability company, or other form of business organization in which an equity interest is owned, subject to a power or right of control, or held with the power to vote directly, indirectly, or in conjunction with a holding company or intermediary company.

2.60. “Sufficient amenities,” as the term is used in W. Va. Code §29-22C-8(g)(3), means hotel services including room service, internal access to full-service restaurants, optional guest room turn-down service, valet parking, luggage services, spas and/or a fitness center, swimming pool, twenty-four hour housekeeping services, concierge services, in-room movies service, high-speed Internet connectivity in guest rooms, and ample rooms and services for physically handicapped patrons.

2.61. "Supplier" means a person who provides the casino with table gaming goods and services to the related goods at the casino including, but not limited to any of the following persons:

2.61.a. Manufacturers of gaming devices, supplies, articles or equipment; and

2.61.b. Distributors of gaming devices, supplies, articles or equipment.

2.62. "Surety bond" means a contractual arrangement between the surety, the principal, and the obligee in which the surety agrees to protect the obligee if the principal defaults in performing the principal's contractual obligation. The bond is the instrument that binds the surety.

2.63. "Value chip" means a chip that is clearly and permanently impressed, engraved, or imprinted with the name of the casino and the specific value of the chip.

2.64. "Voting security" means a security that the holder is entitled to vote generally 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 another form of business organization other than a corporation.

PART 2. ADMINISTRATIVE PROVISIONS

W. Va. Code R. § 179-8-3 Provisions Pertaining to Applications, Records and Commission Authority

3.1. In the interpretation of any rules adopted by the Commission, an ambiguity shall be resolved in favor of the interpretation which would provide either of the following:

3.1.a. The greater assurance of integrity in either the operation or regulation of casino gaming; or

3.1.b. Heightened public confidence in the regulation or regulatory processes relating to casino gaming.

3.2. If a provision of a rule promulgated by the Commission or the application of a rule to any person or circumstance, is held invalid by a court of competent jurisdiction, then the provision or application shall not affect other provisions that can be given effect without the invalid provision or application.

3.3. The casino licensee and each supplier licensee shall maintain, in a place secure from theft, loss, or destruction, adequate records of its business and accounting operations relating to the gaming operations regulated by this rule. The casino licensee or a supplier licensee shall make the records available to the Commission, upon request, within a reasonable time period prescribed by a subpoena duces tecum or by written request of the Director, or his or her designee. A casino licensee shall keep and maintain the books, records, or documents in a manner and form approved or required by the Commission.

3.3.a. The casino licensee or a supplier licensee shall hold the records for the current year and the two previous years. Records held off-site shall be retrieved and presented to the Commission’s representative within five days of the request to do so. The records shall include, but not be limited to, all of the following:

3.3.a.1. All correspondence with, or reports to, the Commission or any local, state, or federal governmental agency;

3.3.a.2. A personnel file on each employee; and

3.3.a.3. All accounting records, ledgers, subsidiary records, computer generated data and internal audit records pertaining to table gaming activities.

3.3.b. Notwithstanding the foregoing provisions of subdivision 3.3.a of this rule, a casino licensee or supplier licensee shall hold copies of all promotional and advertising material, records, or complimentary distributions for the casino for at least one year.

3.3.c. The casino shall organize and index all required records in a manner that enables the Commission to locate, inspect, review, and analyze the records with reasonable ease and efficiency.

3.3.d. Nothing in subsection 3.3 of this rule shall be construed to require disclosure of documents subject to the attorney-client privilege if the licensee or applicant informs the Director of the existence of the document, a general description of its contents, and the basis for the privilege.

3.4. Unless otherwise permitted or required, a person shall submit all forms, fees, documents, papers, and other materials to Lottery Headquarters in the manner and form prescribed by the Commission.

3.5. A licensee shall disclose changes in information.

3.5.a. Except as otherwise provided in this rule, if an obligation has been placed upon a licensee to report or submit information to the West Virginia Lottery, the reporting or submission may be accomplished by providing the information to an employee of the West Virginia Lottery.

3.5.b. A licensee or an applicant for a license has a continuing duty to disclose promptly any material changes in information provided to the West Virginia Lottery as soon as the applicant or licensee becomes aware of the change. The duty to disclose changes in information continues throughout any period of licensure granted by the West Virginia State Lottery Commission. A licensee or applicant shall make sure that all required release of information forms submitted to the West Virginia Lottery are current.

3.6. An applicant or licensee shall disclose representatives.

3.6.a. An applicant or licensee shall file with the West Virginia Lottery a list of persons authorized to act on the applicant's or licensee's behalf as to any matter before the Commission. An attorney appearing on behalf of an applicant or licensee in a matter before the Commission shall promptly file an appearance identifying his or her client and the matter in which the attorney will appear.

3.6.b. A person holding or applying for the casino license or supplier license shall establish and identify a registered agent within the State of West Virginia for the purpose of accepting service of process, notices, and other forms of communication for the person holding or applying for a casino license or supplier license.

3.7. A casino licensee or supplier licensee shall conduct a reasonable investigation of the background of employees whose duties are related to, or involved in, the conduct of gaming operations in the State of West Virginia to reasonably ensure that the employee is eligible and suitable for the employment under the licensing standards and other requirements of the Act and this rule. A casino licensee or supplier licensee shall keep and maintain written records of investigations for all employees. The casino licensee or supplier licensee shall make the written records available to the Commission, upon request, within a reasonable time period prescribed by the West Virginia Lottery. Licensure by the Commission may not be relied on by the licensee as the sole criterion for hiring a job applicant.

3.8. Provisions for investigative hearings.

3.8.a. The Commission, when necessary, may conduct hearings for the purpose of investigating an applicant, an application, a licensee, or a third party to gather information regarding eligibility and suitability for licensure, alleged violations of the Act or this rule, or other Commission action under the Act or this rule.

3.8.b. The Commission may require an applicant, a licensee, or a key person or employee of an applicant or licensee to testify or to produce any documents, records, or other materials at a proceeding conducted under this rule.

3.8.c. The Commission, through the Director, may issue subpoenas and subpoenas duces tecum for the production of persons, documents, or other items at a proceeding conducted under this rule.

3.8.d. All testimony at proceedings conducted under this rule shall be given under oath or affirmation administered by a Commission member, hearing officer, or the Director or a person designated by the Director.

3.9. Participation in games by owners, directors, officers, key persons, or gaming employees prohibited. An officer, director, key person, managerial employee, or occupational licensee of the casino licensee shall not play or be permitted to play any table game at the casino except in the course of employee training or when that person is demonstrating to one or more patrons how to play a permitted table game. A person regulated by this rule shall not be permitted to redeem chips or tokens for any other person, except that a person may redeem chips or tokens in the course of his or her employment with the casino.

3.10. Receipt of commercially reasonable consideration for contracts and transactions are required. A casino licensee or an applicant for, or holder of a supplier license may not enter into or perform any contract or transaction in connection with the operation of table games related to the casino license or supplier license for which application has been made or which the licensee holds unless the applicant or licensee transfers or receives consideration that is commercially reasonable.

W. Va. Code R. § 179-8-4 Related Party Contracts or Transactions

A related party transaction shall be in compliance with the internal control procedures submitted under section 3.16 of this rule or otherwise set by the Commission.

W. Va. Code R. § 179-8-5 Duty of Reasonable Care

A casino licensee, supplier license applicant or supplier licensee shall exercise reasonable care to ensure that each contract or transaction the licensee or license applicant enters into meets the requirements of the Act and this rule.

W. Va. Code R. § 179-8-6 Commission Reports

The Commission shall specify from time to time the nature and frequency of reports a licensee shall make to the Commission to ensure compliance with the Act or this rule.

W. Va. Code R. § 179-8-7 Mandatory Contract Notification

7.1. The Commission may direct a licensee or applicant to cancel any contract, purchase order or transaction relating to table games operations that the Commission determines does not comply with the Act and this rule. A contract relating to table games that is entered into by a casino licensee shall contain a provision permitting the casino licensee to terminate the contract if the Commission determines that the contract does not comply with the Act or this rule.

7.2. A casino licensee shall include a contract described in this rule in the quarterly and annual reports submitted under this rule.

W. Va. Code R. § 179-8-8 Confidential Records; Limited Release

Materials, or portions of materials, submitted under the Act or this rule may be identified as confidential by a licensee, an applicant for a license, or any other person. If the materials are exempt from disclosure by statute, the materials shall not be disclosed by the Commission, except to other federal and state gaming regulating agencies and law enforcement agencies.

W. Va. Code R. § 179-8-9 General Reporting Requirements; Obligation to Report Certain Events

9.1. A person that holds a casino license, or that holds or applies for a supplier license, shall provide an immediate oral report, followed by a written report, of suspected criminal activity related to the person's proposed or existing gaming operation or casino operation or supplier operations in West Virginia. A person who holds the casino license or supplier license shall provide written notice to the Commission at the time the person becomes aware of any of the following:

9.1.a. A violation or apparent violation of the Act or this rule by any of the following entities:

9.1.a.1. A person that applies for or holds a casino license;

9.1.a.2. An employee of a casino license or a casino license applicant, a key person of a casino licensee’s or license applicant’s holding company or affiliate that is in control of a key person;

9.1.a.3. A person that or holds a supplier license;

9.1.a.4. An employee of a person applying for or holding a supplier license, a key person of a supplier licensee’s or license applicant’s holding company or affiliate that is in control of a key person; or

9.1.a.5. A person who acts, or is authorized to act, on behalf of or in furtherance of the interests of the casino license or supplier license applicant or licensee, or a holding company or affiliate that is in control of the applicant or licensee.

9.1.b. The initiation of any investigation that could, or any action that does, result in the imposition of any civil, criminal, or administrative sanction or penalty upon a person who applies for or holds the casino license or a supplier license;

9.1.c. To the extent known, the initiation of any investigation that could, or any action that does, result in the imposition of any civil, criminal, or administrative sanction or penalty upon a person who applies for or holds an occupational license;

9.1.d. The filing of any criminal, civil, or administrative complaint against a holding company or affiliate that has control of the applicant or holder of the casino license or a supplier license that relates to the eligibility and suitability of the applicant or licensee to hold the casino license or a supplier license in West Virginia under the Act and this rule;

9.1.e. The receipt of a subpoena that requires testimony by the person applying for or holding the casino license or a supplier license, or by a key person, holding company or affiliate in control of the person applying for or holding the casino license or a supplier license, that relates to the gaming or casino operations or business practices of the applicant or licensee in West Virginia or any other jurisdiction;

9.1.f. The receipt of a complaint or other notice filed with a public body regarding a delinquency in the payment of, or a dispute over the filings concerning the payment of, a tax required under federal law or under West Virginia state or local law, including all of the following information:

9.1.f.1. The tax amount;

9.1.f.2. The type of tax;

9.1.f.3. The taxing agency; and

9.1.f.4. The time periods involved.

9.1.g. A bankruptcy, receivership, or debt adjustment initiated by or against the person applying for or holding the casino license or a supplier license or an officer, director, or the immediate parent company who is in control of the person applying for or holding the casino license or a supplier license.

9.1.h. ompliance review conducted by the Internal Revenue Service in accordance with title 31 of the United States Code, 31 U.S.C. § 5311 et seq., relating to the person applying for or holding the casino license or a supplier license, an officer, a director, a holding company, or an affiliate that is in control of the person applying for or holding the casino license or a supplier license. The person applying for or holding the casino license or a supplier license shall provide the Commission with a copy of the compliance review report or its equivalent within 10 days of the receipt of the report;

9.1.i. A violation of Commission-approved internal control procedures related to security or to the transfer, collection, distribution, or accounting of monies and a statement of the corrective action taken by the casino licensee with respect to the violations;

9.1.j. A violation of an agreement with a governmental authority in West Virginia; or

9.1.k. Any action, occurrence, or nonoccurrence for which the Commission has instructed the person applying for or holding casino license or a supplier license to provide notice.

W. Va. Code R. § 179-8-10 Licensee’s Duty to Disclose Violation Lf licenses

A person who holds or applies for a license shall immediately notify the Commission, in writing, if the person becomes aware that a casino, supplier, occupational licensee or management services provider licensee is in violation of the Act or this rule.

W. Va. Code R. § 179-8-11 Applicant's Obligation to Report Certain Events

Whenever this rule requires a licensee to provide notice to the Commission of a fact or occurrence, an applicant for a license shall provide a written notice to the Commission under the same circumstances that a licensee is required to provide notice, except to the extent that the Commission may waive the requirements.

W. Va. Code R. § 179-8-12 Contents of Notice and Supplementation Requirement

The written notices required under the Act and this rule shall provide the detail that is reasonably required to describe the reported event and shall be supplemented at the times, and in the detail, that the Commission requests.

W. Va. Code R. § 179-8-13 Restricted Transactions

A member of the Commission, the Director, an employee of the West Virginia Lottery or an immediate family member residing in their same household shall not hold or obtain a direct or indirect interest in a racetrack casino licensee, a licensed supplier or a licensed management services entity.

W. Va. Code R. § 179-8-14 Restrictions on Gift-Giving

14.1. A licensee or an applicant for a license, or an affiliate, key person, or representative of a licensee or applicant for a license, shall not directly or indirectly give or offer to give any gift, gratuity or other thing of value to any of the following entities:

14.1.a. A member of the Commission;

14.1.b. The Director;

14.1.c. An employee of the West Virginia Lottery Office;

14.1.d. An immediate family member residing in the same household of any of the individuals listed in subdivisions (a) to (c) of this subsection; or

14.1.e. Any other person whom the Commission determines is, or was in the past two years, able to significantly affect, influence, or control the entities listed in subdivisions (a) to (d) of this subsection by reason of business, financial, personal, or social association or relationship.

14.2. In construing the phrase “gift, gratuity or other thing of value” in subsection 14.1 of this rule, the definitions and exceptions in the State Ethics Act, specifically W. Va. Code §6B-1-3(k) and §6B-2-5(c), are also definitions and exceptions for this section 14.

W. Va. Code R. § 179-8-15 Restrictions on the Casino Licensee Interest in a Supplier Licensee

A casino licensee shall not own an interest of more than ten percent in a licensed supplier.

W. Va. Code R. § 179-8-16 Review of Information at Licensee's or Applicant's Premises; Costs

16.1. At the option of the Director, he or she may review, at the premises of the custodian of the information, any information that the Act, this rule or the Director requires from any of the following entities:

16.1.a. A license applicant;

16.1.b. A licensee;

16.1.c. An affiliate of a license applicant or licensee; and

16.1.d. A person who holds more than a five percent direct or indirect interest in an applicant or licensee.

PART 3. LICENSES

W. Va. Code R. § 179-8-17 Applications

17.1. An application for a license under the Act and this rule is a request by the applicant seeking a revocable privilege. The Commission may grant a license if the applicant meets the licensing requirements of the Act and this rule.

17.2. An applicant for a license under the Act and this rule shall, at all times, have the burden of demonstrating to the Commission, by clear and convincing evidence, that the applicant is eligible, qualified, and suitable to be granted and retain the license for which application is made under the applicable licensing standards and requirements of the Act and this rule.

17.3. A license issued by the Commission under the Act or this rule is a revocable privilege granted by the Commission. A person who holds a license does not acquire, and shall not be considered to acquire, a vested property right or other right, in the license.

17.4. The Commission shall use reasonable efforts to avoid unnecessary publicity concerning information included in the applications and other documents that are or could reasonably be considered sensitive; however, an applicant or licensee shall accept any risk of adverse publicity, public notice, notoriety, embarrassment, criticism, financial loss, or other unfavorable or harmful consequences that may occur in connection with, or as a result of, the application and licensing process or the public disclosure of information submitted to the Commission with a license application or at the Commission's request under the Act and this rule.

17.5. An applicant or licensee may claim any privilege afforded by the Constitution or laws of the United States or of the state of West Virginia in refusing to answer questions or provide information requested by the Commission. A claim of privilege with respect to any testimony or evidence pertaining to the eligibility, qualifications, or suitability of an applicant or licensee to be granted or hold a license under the Act and this rule may constitute cause for denial, suspension, revocation or restriction of the license.

17.6. An applicant and licensee shall:

17.6.a. Notify the Commission of a material change in the information submitted in the license application submitted by the applicant or licensee or a change in circumstance, that may render the applicant or licensee ineligible, unqualified, or unsuitable to hold the license under the licensing standards and requirements of the Act and this rule;

17.6.b. Maintain the applicant's or licensee's eligibility, qualifications, and suitability to be issued and hold the license held or applied for under the Act and this rule; and

17.6.c. Provide any information requested by the Commission relating to licensing or regulation; cooperate with the Commission in investigations, hearings, and enforcement and disciplinary actions; and comply with all conditions, restrictions, requirements, orders, and rulings of the Commission in accordance with the Act and this rule.

17.7. An applicant, licensee or person required to be qualified as part of an application for the issuance of, or a request for renewal of, a license shall furnish fingerprints for a national criminal records check by the Criminal Identification Bureau of the West Virginia State Police and the Federal Bureau of Investigation. The fingerprints shall be furnished by all persons required to be named in the application and shall be accompanied by a signed authorization for the release of information by the Criminal Investigation Bureau and the Federal Bureau of Investigation.

W. Va. Code R. § 179-8-18 Classification of Licenses

18.1. The Commission may classify an activity to be licensed in addition to, different from, or at a different level than, the following license classifications:

18.1.a. Racetrack table games license/casino licenses;

18.1.b. Supplier licenses;

18.1.c. Occupational licenses. An individual who is employed by a casino licensee and whose work duties are directly related to, or involved in, the table games operations or are performed in a restricted area of the casino or in the table games area of the casino, or who is a table game operations manager, a general manager or department manager having oversight or operational responsibility for operation of the gaming facility, or an equivalent, shall hold a valid occupational license that is the level required for his or her position before the individual may perform any of the duties of his or her position. There are two different classes of occupational license, as follows:

18.1.c.1. Level 1 licenses for policy-making positions; and

18.1.c.2. Level 2 licenses for other positions; and

18.1.d. Management services license.

W. Va. Code R. § 179-8-19 Fees, Fines, Charges, and Assessments

19.1. All fees, fines, charges, and assessments provided for under the Act shall be submitted in a timely manner to the Commission in the form of a certified check, a cashier's check, a money order or the casino licensee’s business check made payable to: "West Virginia Lottery," or in the form of an electronic funds transfer, or by another method of payment that is acceptable to the Commission.

19.2. The license application fee shall be used by the Commission in part or in full to conduct an appropriate background investigation of the applicant as prescribed by the Commission, the Act, and this rule. The Commission shall not refund any portion of a remitted license application fee. An applicant, or the casino licensee in the applicant’s behalf, shall submit the following nonrefundable initial license application fees to the Commission, together with the required application form or forms, for the corresponding license classification to which the fees relate:

19.2.a. The racetrack table games/casino license: $1,500,000.00;

19.2.b. Supplier license: $100.00;

19.2.c. Occupational license: $100.00; and

19.2.d. Management services license: $100.00.

19.3. The following license annual renewal fees shall be submitted to the Commission by the licensee for each subsequent renewal of the license under the Act and this rule:

19.3.a. Racetrack table games license: $2,500,000.00;

19.3.b. Supplier license: $100.00;

19.3.c. Occupational license: $100.00; and

19.3.d. Management services license: $100.00.

19.4. A supplier license and a management services license each expires at the end of the twelfth month following its initial effective date. For example, if one of these licenses was issued on the fifteenth day of May in one year, it must be renewed before the first day of June in the following year.

W. Va. Code R. § 179-8-20 Persons Required to Qualify for Issuance and Renewal of Gaming Facility and Supplier Licenses

20.1. The Commission shall not issue or renew the license of a casino, supplier or management services provider unless the individual qualifications of every person required by the Act and this rule to qualify, as part of the application or request for the issuance or renewal of the license, shall have first been determined by the Commission eligible, qualified, and suitable in accordance with the relevant licensing standards set forth in the Act and this rule.

20.2. The following persons are required to qualify as part of the application for the issuance, or request for renewal, of the casino license or a supplier license:

20.2.a. If the person who makes application for the license of a casino, supplier or management services provider is a person whose stock, equity interest, or ownership interest is publicly traded and regulated by the Securities and Exchange Commission, each of the applicant's key persons;

20.2.b. If the person who makes application for the license of a casino, supplier or management services provider is not a person whose stock is publicly traded and regulated by the Securities and Exchange Commission, each of the applicant's key persons and each person, other than a publicly traded corporation and its five percent or less shareholders, that has a combined direct, indirect, or attributed interest of five percent or more in the applicant; and

20.2.c. A person who is required to apply for the license of a casino, supplier or management services provider the casino license or a supplier license under the Act and this rule.

20.3. The Commission may at any time require a person that applies for or holds the casino license or a supplier license to establish the qualifications of any other affiliate, investor, creditor, employee, agent, or representative of the applicant or licensee or any other person that is connected, related, or associated with the applicant whom the Commission determines must be qualified under the Act and this rule.

20.4. A person required to qualify as part of the application or request for issuance or renewal of the casino license or a supplier license shall complete and file, with the Commission, an application or annual renewal report and the required disclosure forms in the manner and form prescribed by the Commission.

20.5. A casino licensee and a person who applies for or holds a supplier license shall ensure that all persons who are required by the Act and this rule to establish their qualifications as part of the applicant's application for the issuance, or the licensee's maintenance or renewal, of the casino license or a supplier license have filed, with the Commission, all required applications, reports, and disclosure forms in the manner and form prescribed by the Commission.

W. Va. Code R. § 179-8-21 Casino Licensing Procedures

21.1. When the Commission receives a license application from a pari-mutuel racetrack that holds a racetrack video lottery license, together with a certified copy of the county commission’s canvass of votes showing that the pari-mutuel racetrack is authorized by the county’s voters to hold a license under the Act, and also upon the tendering of an electronic funds transfer to the Commission in the amount of one million five hundred thousand dollars, the Commission shall immediately issue the requested license to the racetrack.

21.2. Whenever a casino licensee renews its privilege to operate table games and racetrack video lottery games, it shall do so in a process that combines the requirements W. Va. Code §29-22C-1 et seq. and W. Va. Code §29-22A-1 et seq.

21.3. The license issued under subsections 21.1 and 21.2 of this rule shall be a casino license and shall signify that the Commission and the county’s voters have approved the licensee to conduct both table gaming under W. Va. Code §29-22C-1 et seq. and racetrack video lottery gaming under W. Va. Code §29-22A-1 et seq.

W. Va. Code R. § 179-8-22 Casino License Application Forms; Amendments to Application Forms and Documents

22.1. A person applying for the racetrack table games license and a person required to be qualified as part of the application may be required to complete and submit an initial application and disclosure form or forms in the manner and form prescribed by the Commission. In this case, an applicant shall make the application and disclosure form or forms under oath on forms provided by the Commission.

22.2. A casino licensee is under a continuing duty to disclose any substantive changes in the information or documentation provided in or with the application, renewal, and disclosure forms submitted to the Commission. A casino licensee shall submit an amendment to its application if it knows or should have known that there has been a change in any of the following:

22.2.a. A change of the applicant's key persons or the key persons of its holding companies or affiliates that have control of the applicant;

22.2.b. A change in the type of business organization or entity;

22.2.c. A change of more than five percentage points in capitalization or debt to equity ratio;

22.2.d. A change of debt holders;

22.2.e. A change of investors or stockholders unless the licensee is a publicly traded company; or

22.2.f. A change of the source of funds.

W. Va. Code R. § 179-8-23 Persons Who Have Control of a Licensee or Applicant

23.1. The casino licensee shall require each person who has control of the licensee to be qualified as part of the application and or annual renewal to submit all of the information and documentation required by the Commission. Persons who are considered to have control of an applicant including:

23.1.a. Each person associated with a corporate applicant or the immediate parent company of the applicant, but not including a bank or other licensed lending institution which holds a mortgage or other lien acquired in the ordinary course of business, who has the ability to control the activities of the corporate applicant or elect a majority of the board of directors of that corporation;

23.1.b. Each person associated with a non-corporate applicant who directly or indirectly holds any beneficial or proprietary interest in the applicant or who the Commission determines to have the ability to control the applicant; and

23.1.c. Key personnel of an applicant, including any executive, employee or agent, having the power to exercise significant influence over decisions concerning any part of the applicant's business operation.

W. Va. Code R. § 179-8-24 Production of Information Required by the Commission

24.1. The Commission may require the production of other information and documentation to establish and determine the identity, eligibility, suitability, and qualification of the applicant or any other person required to be qualified, as part of the application, as a financial source under the Act or this rule.

24.2. The Commission may require the production of other information and documentation to establish and determine the financial stability, integrity, and responsibility of the person applying for the casino license and a holding company, affiliate, or intermediary company that is required to be qualified as part of the application under the Act and this rule and to establish and determine the integrity of the applicant's financial sources and adequacy of the applicant's financial resources to develop, construct, renovate, maintain, and operate the casino in accordance with the requirements of the Act and this rule. The information shall include, without limitation, a description of the capitalization for the proposed casino and the amount and source of all debt and equity involved in the capitalization for the casino.

24.3. The Commission may require the production of other information and documentation to establish and determine sufficient business ability on the part of the person applying for the casino license and the applicant's key persons to manage properly and operate the proposed casino in a successful and efficient manner and in accordance with the requirements of its certified development agreement and the Act and this rule.

24.4. The Commission may require the production of other information and documentation concerning the proposed table gaming locations within the racetrack including, without limitation, floor plans showing the location of each gaming point and device, and the location and coverage of all closed circuit television cameras.

24.5. The Commission may require the production of information and documentation concerning the organizational and operational plans for the casino’s operation, including, without limitation, the recruitment, employment, supervision, and training of employees, management contracts, and leases.

24.6. The Commission may require the production of other information and documentation concerning the applicant's construction or renovation program for the applicant's casino, infrastructure, and support facilities including without limitation the estimated construction or renovation time and anticipated date of opening of the room or addition.

24.7. The Commission may require the production of other information and documentation concerning the applicant's plans for providing food and beverage and other concessions in the gaming areas, the status of all relevant required governmental and regulatory permits and approvals, and any conditions of all relevant required governmental and regulatory permits and approvals.

24.8. The Commission may require the production of the names, business addresses, telephone numbers, and principal contact persons of the applicant's identified suppliers of gaming-related equipment, goods, and services used in the gaming.

24.9. The Commission may require the production of information and documentation concerning the applicant's plans and procedures for extending credit for gaming and the collection of gaming-related debts.

24.10. The Commission may require the production of information and documentation concerning the applicant's plans and procedures for player tracking or casino management computer systems.

24.11. The Commission may require the production of information and documentation concerning any agreements, covenants, or options by the person applying for the casino license or the key persons of the applicant or any holding company or affiliate that has control of the applicant to lease or purchase the actual or proposed site of the casino.

24.12. The Commission may require the production of information and documentation regarding the types of insurance the applicant has or will obtain.

W. Va. Code R. § 179-8-25 Confidential Information in an Application

25.1. An applicant shall submit information or documentation required by the Commission which is exempt from public disclosure under the West Virginia Freedom of Information Act, W. Va. Code §29B-1-4, or which the applicant or filer wishes to be treated as confidential as a separate part of the application under a cover clearly labeled "Confidential Information." An applicant shall submit the information or documentation in the manner and form prescribed by the Commission;

25.2. An applicant shall produce all required written waivers, assurances, releases and affidavits, which shall be submitted in the manner and form prescribed by the Commission;

25.3. An applicant shall supply to the Commission a statement listing the name, position or title, and business address and telephone number of each individual who completed or prepared any part of the application for the applicant; and

25.4. An applicant shall supply any other information or documentation that the Commission may consider material and necessary to establish the identification, eligibility, suitability, and qualification of the applicant or any other person required to be qualified or licensed as part of the application under the licensing standards and requirements of the Act and this rule.

W. Va. Code R. § 179-8-26 Issuance of a Racetrack Table Games License

26.1. After the issuance of a casino license as provided in section twenty-two of this rule, the Director may conduct a thorough review of the application submitted by the applicant, of the background investigation of persons involved with the applicant and the fiscal and physical qualifications of the applicant and its facilities, and report to the Commission, in writing, whether the applicant has satisfactorily complied with the conditions and requirements of the Commission, the Act, and this rule for granting and issuing a casino license to the applicant. The Director shall ensure that a copy of his or her written report to the Commission is served on the applicant.

26.2. Upon receipt of the Director's report, the Commission shall docket the issue for its next regular or special meeting for the purposes of taking further evidence and rendering its final decision on the application.

26.3. The Commission shall place restrictions and conditions on the casino license, including, but not limited to, all of the following:

26.3.a. The licensee shall maintain its required bond in accordance with the Act;

26.3.b. The licensee's table game operations shall undergo, and successfully complete, a sufficient number and type of practice gaming operations to ensure that the gaming operation is conducted in compliance with the Act and this rule;

26.3.c. The licensee shall satisfactorily complete or comply with any incomplete or non-complying aspects of its casino, support facilities, and table gaming operations within specified time frames established by the Commission.

W. Va. Code R. § 179-8-27 Payment of the Annual License Renewal Fee

27.1. The licensee shall pay the annual license renewal fee of $2,500,000 by electronic funds transfer. The licensee’s fee payment must be received by the West Virginia Lottery on or before June 30 of each year.

27.2. The licensee shall submit to the Commission a renewal application in the form that the Commission requires accompanied by satisfactory evidence of compliance with any additional requirements set by the Commission for license renewal.

27.3. The licensee shall submit to the Commission evidence satisfactory to the Commission of the licensee’s compliance with the plan described in W. Va. Code §29-22C-8(g)(3) and subsection 2.60 of this rule to operate a hotel with significant amenities on the racetrack property, or progress toward constructing a hotel.

27.4. The Commission shall renew the license if the licensee meets the requirements of the Act and this rule.

W. Va. Code R. § 179-8-28 The Licensee's Duty to Disclose Material Changes

28.1. Issuance of the license does not create a property right. Issuance of the license instead gives to the holder a revocable privilege granted by the State of West Virginia conditioned upon the holder's continuing eligibility, qualifications, and suitability to hold the license under the Act and this rule.

28.2. A licensee has a continuing duty to notify promptly the Commission, in writing, without undue delay, of any material change in the information provided in its application or renewal report or reports and any other change in circumstances reasonably related to its eligibility, qualifications, and suitability to be issued, or continue holding, a casino license under the licensing standards, criteria, and requirements of the Act and this rule.

W. Va. Code R. § 179-8-29 Required Notification of Anticipated or Actual Changes in Directors, Partners, and Officers of the Licensee and Its Immediate Parent Company, If Any

29.1. A person that applies for or holds a racetrack table games license and the applicant’s immediate parent company, if any, shall notify the Commission, in writing, as soon as is practicable, of the appointment, nomination, election, resignation, incapacitation, or death of any member of, or partner in, its board of directors or partnership or of any officer or key person who is directly involved in the management or conduct of gaming operations in West Virginia.

29.2. In the event that the applicant or licensee or any controlling person of the applicant or licensee is a publicly traded corporation, then information otherwise required to be furnished by the license with respect to stockholders, directors and executive officers of the publicly traded corporation shall be limited to information concerning only those executive officers of the publicly traded corporation whose ongoing and regular responsibilities relate or are expected to relate directly to the operation or oversight of the gaming facility.

W. Va. Code R. § 179-8-30 Notification of New Financial Sources Required

30.1. An applicant or a racetrack casino licensee, or any holding company, affiliate, or person who has control of a person that applies for or holds a casino license shall notify the Commission, in writing, as soon as practicable, if it intends to enter into a transaction related in any way to the development and operation of its West Virginia casino that may result in any new financial backers, investors, mortgagees, bondholders, or holders of indentures, notes, or other evidences of indebtedness of the applicant or licensee.

30.2. In the event that the applicant or licensee or any controlling person of the applicant or licensee is a publicly traded corporation, then information otherwise required to be furnished by the license with respect to stockholders, directors and executive officers of the publicly traded corporation shall be limited to information concerning only those executive officers of the publicly traced corporation whose ongoing and regular responsibilities relate or are expected to relate directly to the operation or oversight of the casino.

W. Va. Code R. § 179-8-31 Notification by publicly traded applicants, licensees, or holding companies required

31.1. A publicly traded company that applies for or holds a casino license or a publicly traded holding company or affiliate that has control of a racetrack table games license applicant or licensee shall notify the Commission, as soon as practicable after it becomes aware that, with regard to the publicly traded company, any person or individual has beneficially acquired any of the following:

31.1.a. The ability to control the publicly traded applicant or licensee or the publicly traded holding company or affiliate that has control of the license applicant or licensee; or

31.1.b. The ability to elect one or more directors of the publicly traded applicant or licensee or of the publicly traded holding company or affiliate that has control of the license applicant or licensee. To the extent known by the applicant or licensee, the required notification shall include, without limitation, the name, business address, phone number, and other personal identification information for each person or individual.

31.2. If a publicly traded casino licensee or publicly traded holding company either files or is served with any schedule 13D, 13G, or 13F filing under the Securities Exchange Act of 1934, copies of the filing shall be submitted to the Commission by the publicly traded license applicant, licensee, or holding company within ten business days after receipt or filing.

W. Va. Code R. § 179-8-32 Qualification of New Directors, Officers, or Other Key Persons

An individual required to be qualified or licensed under the Act or this rule by virtue of his or her position with a West Virginia licensee shall not perform any duties or exercise any powers of the position related to West Virginia casino operations until he or she has been determined to be qualified or otherwise authorized by the Commission, under the Act and this rule.

W. Va. Code R. § 179-8-33 Qualification of New Directors and Officers of Holding Company

A proposed new director, partner, officer, or key person required to be qualified or licensed under the Act or this rule by virtue of his or her position the immediate parent company who has control of a West Virginia license applicant or licensee shall not perform any duties or exercise any powers of the position related to West Virginia casino operations until he or she has been determined to be qualified or otherwise authorized by the Commission, under the Act and this rule.

W. Va. Code R. § 179-8-34 Supplier License Required to Provide Table Games-Related Devices, Supplies and/or Services

34.1. When a person will supply or provide a casino with gaming devices, gaming supplies or services that directly affect the play and results of table games authorized, conducted, and played under the Act and this rule, the person shall hold a supplier's license. In determining whether a person is qualified to be licensed as a supplier under this rule, the Commission shall consider, without limitation, whether the person meets one or more of the following criteria:

34.1.a. The person manufactures, supplies, or distributes devices, machines, equipment, items or articles that:

34.1.a.1. Are specifically designed for use in the conduct of table gaming;

34.1.a.2. Are needed to conduct table gaming;

34.1.a.3. Have the capacity to affect the outcome of the play of a table game; or

34.1.a.4. Have the capacity to affect the calculation, storage, collection, or control of gross receipts; and

34.1.b. The person provides other goods or services determined by the Commission to be used in, or incident to, the operation of table games and the person must be licensed as a supplier to protect the public and enhance the credibility and integrity of gaming in West Virginia;

34.2. The following persons shall be licensed under the criteria specified in subdivisions 35.1a through 35.1.e of this rule:

34.2.a. A manufacturer, supplier, distributor, servicer, or repairer of any of the following:

34.2.a.1. Cards;

34.2.a.2. Dice;

34.2.a.3. Gaming chips;

34.2.a.4. Gaming plaques;

34.2.a.5. Tokens;

34.2.a.6. Dealing shoes;

34.2.a.7. Drop boxes;

34.2.a.8. Computerized gaming monitoring systems; and

34.2.a.9. Other devices, machines, equipment, items, or articles used in table gaming.

W. Va. Code R. § 179-8-35 Supplier's License Application

35.1. To qualify for a license, the applicant shall meet the requirements of this rule. Each applicant who is an individual who is a controlling person of an applicant that is not an individual shall be of good moral character and reputation, and shall have the necessary experience and financial ability to successfully carry out the functions of a gaming facility supplier.

35.2. An applicant for a license to supply gaming devices, equipment and supplies to a gaming facility shall demonstrate that the gaming devices, equipment and supplies that the applicant plans to sell or lease to the licensed casino conform or will conform to standards established by rules of the Commission and applicable state law.

35.3. A person applying for a supplier's license and a person required to be qualified as part of the application shall complete and submit application and disclosure forms in the manner and form prescribed by the Commission. The application and disclosure forms shall be made under oath on prescribed forms provided by the Commission.

35.4. Application procedures for a supplier's license are as follows:

35.4.a. Upon application, an applicant shall assume and accept, in writing, under oath, all risk of adverse publicity, notoriety, embarrassment, criticism, financial loss, or other unfavorable or harmful consequences that may occur in connection with the application process or the public disclosure of information submitted with the application;

35.4.b. Upon application, an applicant shall also expressly waive and give up, in writing, under oath, all claims for damages that may result from the application and licensing process;

35.4.c. Upon application, an applicant shall also consent, in writing, under oath, to being subject to the inspections, investigations, audits, searches, and seizures for the duration of the supplier's license for which application is made, if the license is issued;

35.4.d. Upon application, an applicant shall also authorize and consent, in writing, under oath, to release and disclose to the Commission and its authorized representatives and agents all otherwise confidential records of the applicant that the Commission requests from the applicant or from third parties, including, without limitation, tax records and financial records held by a federal, state, or local governmental agency, a credit bureau, or a financial institution while applying for, or while holding, a supplier's license under the Act and this rule;

35.4.e. The Commission shall use the information provided in the prescribed application and disclosure form as a basis for an appropriate background investigation for evaluating and determining the eligibility, qualifications, and suitability of the applicant to receive the license for which application is made. The Commission shall make the evaluation and determination under the licensing standards and criteria provided in the Act and rules of the Commission. A misrepresentation or omission in the application is cause for denial, suspension, restriction, or revocation of a license by the Commission;

35.4.f. A person applying for a supplier license shall provide the name, address, and telephone number of a representative to act as a liaison to the Commission’s background investigators, and shall facilitate, assist, and cooperate with the Commission in its conduct of background investigations under the Act and this rule;

35.4.g. The Commission shall not issue a supplier's license or renewal license unless the person applying for the license, and each person required to be qualified as part of the application for issuance or renewal of the license, has completed and filed with the Commission all required applications, license renewal reports and disclosure forms in the manner and form prescribed by the Commission, has provided all information, documentation, assurances, waivers, and releases, and has paid the fees required by the Act and this rule;

35.4.h. An applicant shall file all required application forms before the expiration of deadlines established and published by the Commission;

35.4.i. An applicant is under a continuing duty to disclose any material changes in the information or documentation provided in or with the application, renewal, and disclosure forms submitted to the Commission;

35.4.j. A person applying for a supplier license shall request amendment of its application when it knows, or should have known, that there has been a change in any of the following:

35.4.j.1. The applicant's key persons or the key persons of any holding company or affiliate that has control of the applicant;

35.4.j.2. The type of business organization or entity;

35.4.j.3. A holding company or affiliate;

35.4.j.4. The investors or debt holders, or both; or

35.4.j.5. A source of funds.

35.4.k. A publicly traded corporation shall be considered to have complied with this rule if it has complied with the reporting requirements provided by section twelve of the Securities and Exchange Act of 1934, as amended (15 U.S.C. §78);

35.4.l. A supplier's license application may be withdrawn upon written notice to the Commission. If the statutory license fee has been paid, the Commission may refund the fee to the applicant if no processing or reviews of the application have taken place; and

35.4.m. The Commission may allow information, documents, or other materials submitted by an applicant in a withdrawn application to be incorporated by reference into a subsequent application.

35.5. A supplier's license application shall require that the person applying for the license and a person required to be qualified as part of the application submit all of the following information and documentation on forms prescribed by the Commission:

35.5.a. The name of the person applying for a supplier license and any holding company or affiliate that has control of the applicant and the person's, company's, or affiliate's respective business address, phone number, federal identification number, and West Virginia taxpayer identification number;

35.5.b. To the extent known and identified by the applicant, the identity and home and business addresses and phone numbers of the key persons of the person applying for a supplier license, of a holding company or affiliate that has control of the applicant, and of any other person required to be qualified as part of the applicant's application under the Act and this rule; and 35.5.c Applications and disclosure forms completed by the person applying for a supplier license and by the key persons of the applicant, a holding company or affiliate that has control of the applicant, and any other identified person required to be qualified as part of that applicant's application. The applications and disclosure forms shall contain all information and documentation that the Commission requires to determine the eligibility, qualifications, and suitability of each person under W. Va. Code §29-22C-13, specifically including photographs and fingerprints of each individual person required to be qualified as part of the application. The photographs and fingerprints shall be taken at a time and place designated by the Director. Photos that have been taken within ninety days of submitting an application may be sent with the applicable disclosure form to fulfill the photo requirement. Each applicant shall submit the following kinds of information:

35.5.c.1. All of the following information for each natural person required to be qualified as part of the application:

35.5.c.1.A. Name;

35.5.c.1.B. Aliases and nicknames;

35.5.c.1.C. Date of birth;

35.5.c.1.D. Physical description;

35.5.c.1.E. Citizenship;

35.5.c.1.F. Marital history and family data; and

35.5.c.1.G. Home and business addresses and phone numbers; and

35.5.c.2. Personal, business, and financial information relevant to the moral character, reputation, integrity, business probity, experience and ability, and financial experience, stability, and responsibility of the person applying for a supplier license and each person required to be qualified as part of the application;

35.5.c.3. A listing of the jurisdictions in which the person applying for a supplier license and each person required to be qualified as part of that application holds or has held a supplier license or other gaming-related license;

35.5.c.4. Information regarding any previous civil litigation that involves the business practices of, or criminal arrests, charges, or dispositions involving, the person applying for a supplier license and each person required to be qualified as part of the application;

35.5.c.5. Information regarding the incorporation, partnership, or other business structure and organization of the person applying for the supplier license and the applicant's key persons and any holding company or affiliate that has control of the applicant;

35.5.c.6. Information regarding the equipment, goods, and services that the person applying for a supplier license will provide or supply to the casino licensee, including, without limitation, information regarding the knowledge, skill, education, training, and experience of the applicant and the managerial employees and sales and service representatives who will represent the applicant and conduct its business in West Virginia;

35.5.c.7. Information regarding any previous bankruptcy proceedings filed by or against the person applying for a supplier license or any other person required to be qualified as part of the application;

35.5.c.8. Information regarding any previous formal legal proceedings to adjust, deter, suspend, or otherwise work out payment of any debt owed by the person applying for a supplier license or any other person required to be qualified as part of the application;

35.5.c.9. Information regarding any present or previous tax delinquency or complaints, notices, or liens filed against the person applying for a supplier license, or any other person required to be qualified as part of the application, for nonpayment of local, state, or federal taxes and fees;

35.5.c.10. Information regarding any previous violation of, or noncompliance with, supplier licensing or regulatory requirements in West Virginia or any other jurisdiction by the person applying for a supplier license or any other person required to be qualified as part of the application;

35.5.c.11. Information regarding any previous violation of, or noncompliance with, any other licensing and regulatory requirements involving other regulated gaming in West Virginia or any other jurisdiction by the person applying for a supplier license or any other person required to be qualified as part of the application;

35.5.c.12. Information regarding whether the person applying for a supplier license or any other person required to be qualified as part of the application has ever held a supplier license or other gaming-related license that was restricted, suspended, or revoked in West Virginia or any other jurisdiction; and

35.5.c.13. Other information which is required by the Commission regarding the person applying for a supplier license and any other person required to be qualified as part of the application and which is considered necessary by the Commission to protect the public and enhance the credibility and integrity of gaming in West Virginia and to properly evaluate the applicant's eligibility, qualifications, and suitability to be licensed as a supplier under the Act and this rule.

W. Va. Code R. § 179-8-36 Supplier’s License Issuance; Standards and Criteria

36.1. A person that is required to be licensed as a supplier under the Act and this rule shall, before issuance of a supplier's license, produce information, documentation, and assurances in its application to establish all of the following by clear and convincing evidence:

36.1.a. The applicant and all other persons required to be qualified as part of the application are eligible, qualified, and suitable for licensure under the licensing standards, criteria, and requirements set forth in section twelve of the Act and this rule;

36.1.b. The financial stability and responsibility of the applicant;

36.1.c. The applicant and all other persons required to be qualified as part of the application demonstrate a level of skill, experience, knowledge, and ability necessary to supply the equipment, goods, or services that the applicant seeks permission to provide to the casino licensee and racetrack table games license applicants in compliance with the Act and this rule;

36.1.d. The applicant and all other persons required to be qualified as part of the application have not been convicted of any disqualifying crime listed in section fifteen of the Act;

36.1.e. The applicant and all other persons required to be qualified as part of the application do not appear on the exclusion list of any jurisdiction; and

36.1.f. The applicant and all other persons required to be qualified as part of the application are in substantial compliance with all local and state tax laws.

W. Va. Code R. § 179-8-37 Supplier License Application; Commission Action

37.1. The Commission shall take the following action on an application for a supplier license:

37.1.a. After the completion of the background investigation, the Director shall report to the Commission, in writing, regarding the staff's background investigation of the applicant. Upon receipt of the Director's report, the Commission shall grant or deny the application.

37.1.b. If the Commission grants the application, it shall direct the Director to issue a supplier license;

37.1.c. If the Commission denies the application, then it shall instruct the Director to issue the applicant a notice of denial by certified mail; and

37.1.d. If the applicant fails to request a hearing by certified mail, within ten days of the applicant’s receipt of the notice of denial, to contest the denial, the notice of denial becomes the final order of the Commission.

W. Va. Code R. § 179-8-38 Denied License; Reapplication

38.1. A person whose application for a supplier license has been denied may not reapply for a supplier license for a period of one year from the date on which the Commission voted to deny the application, unless the Commission allows reapplication at an earlier date.

38.2. A person whose application for a supplier license was denied may seek leave of the Commission to reapply by addressing the request to the Commission. The Commission may require the applicant to present oral or written argument outlining why an exception should be made.

W. Va. Code R. § 179-8-39 License Required to Provide Management Services

39.1. When a person that is not a natural person will provide a casino with substantial management services, such as managing the day-to-day operation of table games or all casino games, the person shall hold a management services provider license.

39.2. To qualify for a license, the applicant shall meet the requirements of this rule. Each controlling natural person of an applicant shall be of good moral character and reputation, and shall have the necessary experience and financial ability to successfully carry out the functions of a management services provider.

39.3. A person applying for a management services provider’s license and a person required to be qualified as part of the application shall complete and submit application and disclosure forms in the manner and form prescribed by the Commission. The application and disclosure forms shall be made under oath on prescribed forms provided by the Commission.

39.4. The application procedures for a management services provider’s license are as follows:

39.4.a. Upon application, an applicant shall assume and accept, in writing, under oath, all risk of adverse publicity, notoriety, embarrassment, criticism, financial loss, or other unfavorable or harmful consequences that may occur in connection with the application process or the public disclosure of information submitted with the application;

39.4.b. Upon application, an applicant shall also expressly waive and give up, in writing, under oath, all claims for damages that may result from the application and licensing process;

39.4.c. Upon application, an applicant shall also consent, in writing, under oath, to being subject to inspections, investigations, audits, searches, and seizures for the duration of the management services provider’s license for which application is made, if the license is issued;

39.4.d. Upon application, an applicant shall also authorize and consent, in writing, under oath, to release and disclose to the Commission and its authorized representatives and agents all otherwise confidential records of the applicant that the Commission requests from the applicant or from third parties, including, without limitation, tax records and financial records held by a federal, state, or local governmental agency, a credit bureau, or a financial institution while applying for, or while holding, a management services provider’s license under the Act and this rule;

39.4.e. The Commission shall use the information provided in the prescribed application and disclosure form as a basis for an appropriate background investigation for evaluating and determining the eligibility, qualifications, and suitability of the applicant to receive the license for which application is made. The Commission shall make the evaluation and determination under the licensing standards and criteria provided in the Act and rules of the Commission. A misrepresentation or omission in the application is cause for denial, suspension, restriction, or revocation of a license by the Commission;

39.4.f. A person applying for a management services provider’s license shall provide the name, address, and telephone number of a representative to act as a liaison to the Commission’s background investigators, and shall facilitate, assist, and cooperate with the Commission in its conduct of background investigations under the Act and this rule;

39.4.g. The Commission shall not issue a management services provider’s license or renewal license unless the person applying for the license, and each person required to be qualified as part of the application for issuance or renewal of the license, has completed and filed with the Commission all required applications, license renewal reports and disclosure forms in the manner and form prescribed by the Commission, has provided all information, documentation, assurances, waivers, and releases, and has paid the fees required by the Act and this rule;

39.4.h. An applicant shall file all required application forms before the expiration of deadlines established and published by the Commission;

39.4.i. An applicant is under a continuing duty to disclose any material changes in the information or documentation provided in or with the application, renewal, and disclosure forms submitted to the Commission;

39.4.j. A person applying for a management services provider’s license shall request amendment of its application when it knows, or should have known, that there has been a change in any of the following:

39.4.j.1. The applicant's key persons or the key persons of any holding company or affiliate that has control of the applicant;

39.4.j.2. The type of business organization or entity;

39.4.j.3. A holding company or affiliate;

39.4.j.4. The investors or debt holders, or both; or

39.4.j.5. A source of funds.

39.4.k. A publicly traded corporation shall be considered to have complied with this rule if it has complied with the reporting requirements provided by section twelve of the Securities and Exchange Act of 1934, as amended (15 U.S.C. §78);

39.4.l. A management services provider’s license application may be withdrawn upon written notice to the Commission before Commission action on the application if all background investigation costs of the Commission have been paid in full by the person applying for a management services provider’s license; and

39.4.m. The Commission may allow information, documents, or other materials submitted by an applicant in a withdrawn application to be incorporated by reference into a subsequent application;

39.5. A management services provider’s license application shall require that the person applying for the license and a person required to qualify as part of the application submit all of the following information and documentation on forms prescribed by the Commission:

39.5.a. The name of the person applying for a management services provider’s license and any holding company or affiliate that has control of the applicant and the person's, company's, or affiliate's respective business address, phone number, federal identification number, and West Virginia taxpayer identification number;

39.5.b. To the extent known and identified by the applicant, the identity and home and business addresses and phone numbers of the key persons of the person applying for a management services provider’s license, of a holding company or affiliate that has control of the applicant, and of any other person required to be qualified as part of the applicant's application under the Act and this rule; and

39.5.c. Applications and disclosure forms completed by the person applying for a management services provider’s license and by the key persons of the applicant, a holding company or affiliate that has control of the applicant, and any other identified person required to be qualified as part of that applicant's application. The applications and disclosure forms shall contain all information and documentation that the Commission requires to determine the eligibility, qualifications, and suitability of each person under section fifteen of the Act, specifically including photographs and fingerprints of each individual person required to be qualified as part of the application. The photographs and fingerprints shall be taken at a time and place designated by the Director. Photos that have been taken within ninety days of submitting an application may be sent with the applicable disclosure form to fulfill the photo requirement. Each applicant shall submit the following kinds of information:

39.5.c.1. All of the following information for each natural person required to be qualified as part of the application:

39.5.c.1.A. Name;

39.5.c.1.B. Aliases and nicknames;

39.5.c.1.C. Date of birth;

39.5.c.1.D. Physical description;

39.5.c.1.E. Citizenship;

39.5.c.1.F. Marital history and family data; and

39.5.c.1.G. Home and business addresses and phone numbers; and

39.5.c.2. Personal, business, and financial information relevant to the moral character, reputation, integrity, business probity, experience and ability, and financial experience, stability, and responsibility of the person applying for a management services provider’s license and each person required to be qualified as part of the application;

39.5.c.3. A listing of the jurisdictions in which the person applying for a management services provider’s license and each person required to be qualified as part of that application holds or has held a management services provider’s license or other gaming-related license;

39.5.c.4. Information regarding any previous civil litigation that involves the business practices of, or criminal arrests, charges, or dispositions involving, the person applying for a management services provider’s license and each person required to be qualified as part of the application;

39.5.c.5. Information regarding the incorporation, partnership, or other business structure and organization of the person applying for the management services provider’s license and the applicant's key persons and any holding company or affiliate that has control of the applicant;

39.5.c.6. Information regarding the services that the person applying for a management services provider’s license will provide to the casino licensee, including, without limitation, information regarding the knowledge, skill, education, training, and experience of the applicant and the managerial employees who will represent the applicant and conduct its business in West Virginia;

39.5.c.7. Information regarding any previous bankruptcy proceedings filed by or against the person applying for a management services provider’s license or any other person required to be qualified as part of the application;

39.5.c.8. Information regarding any previous formal legal proceedings to adjust, deter, suspend, or otherwise work out payment of any debt owed by the person applying for a management services provider’s license or any other person required to be qualified as part of the application;

39.5.c.9. Information regarding any previous violation of, or noncompliance with, management services provider licensing or regulatory requirements in West Virginia or any other jurisdiction by the person applying for a management services provider’s license or any other person required to be qualified as part of the application;

39.5.c.10. Information regarding any previous violation of, or noncompliance with, any other licensing and regulatory requirements involving other regulated gaming in West Virginia or any other jurisdiction by the person applying for a management services provider’s license or any other person required to be qualified as part of the application;

39.5.c.11. Information regarding whether the person applying for a management services provider’s license or any other person required to be qualified as part of the application has ever held a management services provider’s license or other gaming-related license that was restricted, suspended, or revoked in West Virginia or any other jurisdiction; and

39.5.c.12. Other information which is required by the Commission regarding the person applying for a management services provider’s license and any other person required to be qualified as part of the application and which is considered necessary by the Commission to protect the public and enhance the credibility and integrity of gaming in West Virginia and to properly evaluate the applicant's eligibility, qualifications, and suitability to be licensed as a management services provider under the Act and this rule.

W. Va. Code R. § 179-8-40 Management Services Provider’s License Issuance; Standards and Criteria

40.1. A person that is required to be licensed as a management services provider under the Act and this rule shall, before issuance of a management services provider’s license, produce information, documentation, and assurances in its application to establish all of the following by clear and convincing evidence:

40.1.a. The applicant and all other persons required to be qualified as part of the application are eligible, qualified, and suitable for licensure under the licensing standards, criteria, and requirements set forth in section fourteen of the Act and this rule;

40.1.b. The financial stability and responsibility of the applicant;

40.1.c. The applicant and all other persons required to be qualified as part of the application demonstrate a level of skill, experience, knowledge, and ability necessary to supply management services that the applicant seeks permission to provide to the casino licensee in compliance with the Act and this rule;

40.1.d. The applicant and all other persons required to be qualified as part of the application have not been convicted of any disqualifying crime listed in section fifteen of the Act; and

40.1.e. The applicant and all other persons required to be qualified as part of the application do not appear on the exclusion list of any jurisdiction.

W. Va. Code R. § 179-8-41 Management Services Provider’s License Application; Commission Action

41.1. The Commission shall take the following action on an application for a management services provider license:

41.1.a. After the completion of the background investigation, the Director shall report to the Commission, in writing, regarding the staff's background investigation of the applicant. Upon receipt of the Director's report, the Commission shall grant or deny the application;

41.1.b. If the Commission grants the application, it shall direct the Director to issue a management services provider’s license;

41.1.c. If the Commission denies the application, then it shall instruct the Director to issue the applicant a notice of denial by certified mail; and

41.1.d. If the applicant fails to request a hearing by certified mail within ten days of the applicant’s receipt of the notice of denial to contest the denial, the notice of denial becomes the final order of the Commission.

W. Va. Code R. § 179-8-42 Denied License; Reapplication

42.1. A person whose application for a management services provider license has been denied may not reapply for a management services provider license for a period of one year from the date on which the Commission voted to deny the application unless the Commission allows reapplication at an earlier date.

42.2. A person whose application for a management services provider license was denied may seek leave of the Commission to reapply by addressing the request to the Commission. The Commission may require the applicant to present oral or written argument outlining why an exception should be made.

W. Va. Code R. § 179-8-43 Occupational License Requirement; License Classes; Application; Exemptions

43.1. A natural person employed by the racetrack casino licensee whose work duties are related to the table games operation shall hold an occupational license of the level required for the individual's position before the individual may perform any of the duties of his or her position.

43.2. This rule applies to both full-time and part-time employees.

43.3. The two different classes of occupational licenses that an employee may hold are as follows:

43.3.a. Level 1, the highest level of occupational license; and

43.3.b. Level 2.

43.4. An occupational licensee may perform any work duties or activities included within the level of occupational license held by the licensee and included in any lower level of occupational license.

43.5. The Commission shall not process an application for an occupational license unless the application includes a written statement from a casino licensee that the applicant has been or will be hired by the casino licensee, subject to satisfactory completion of a gaming audition after training, upon receiving the appropriate occupational license for which application is made.

43.6. The Commission may exempt any person from the occupational licensing requirements of this rule if the Commission determines that the person is regulated by another governmental agency or that licensing is not considered necessary to protect the public interest or accomplish the policies and purposes of the Act.

W. Va. Code R. § 179-8-44 Occupational License, Level 1

44.1. A natural person who will be employed by the casino in a position that includes any of the following responsibilities or authority, regardless of job title, shall hold, before employment, a current and valid level 1 occupational license or a valid temporary level 1 occupational license issued under this rule. A level 1 license is necessary for a person who:

44.1.a. Functions as a casino manager;

44.1.b. Functions as the table games operations manager;

44.1.c. Functions as a casino shift manager;

44.1.d. Functions as a pit manager;

44.1.e. Manages surveillance operations;

44.1.f. Functions as a cage manager;

44.1.g. Manages the hard count room or soft count room;

44.1.h. Functions as a table games financial controller;

44.1.i. Manages personnel and human resource activities of the table games operation; or

44.1.j. Manages the patron check collection unit.

W. Va. Code R. § 179-8-45 Occupational License, Level 2

45.1. A natural person who will be employed by the casino licensee shall hold, before employment, a current and valid level 2 occupational license unless required to hold a level 1 occupational license. A level 2 license is necessary for a person who:

45.1.a. Functions as a dealer;

45.1.b. Conducts surveillance investigations and operations;

45.1.c. Processes coins, currency, gaming chips or cash equivalents;

45.1.d. Provides physical security in the casino;

45.1.e. Repairs table gaming equipment; or

45.1.f. Is an employee of the table games operation whom the Commission considers necessary to be licensed to ensure compliance with the Act and this rule and to protect the public and ensure the credibility and integrity of gaming in the state.

W. Va. Code R. § 179-8-46 Applications for Occupational Licenses

46.1. An applicant for a level-one occupational license shall complete and submit an application and personal disclosure form to the Commission. The applicant shall submit the application and disclosure form in the manner and form prescribed by the Commission at Lottery Headquarters or any other location specified by the Commission. The application and personal disclosure forms prescribed by the Commission may require the applicant to provide any of the following information and documents with respect to the applicant:

46.1.a. The applicant’s name, including any aliases or nicknames;

46.1.b. The applicant’s date of birth and a copy of his or her birth certificate;

46.1.c. The applicant’s physical description;

46.1.d. The applicant’s current address and residence history;

46.1.e. The nature of the applicant's position with or interest in the casino;

46.1.f. The applicant’s current home and business or work telephone numbers;

46.1.g. The employment history of the applicant;

46.1.h. The convictions of the applicant for any crime involving gaming, theft, fraud or moral turpitude;

46.1.i. The fingerprint record authorization for digital fingerprint recording by the Commission;

46.1.j. Previous bankruptcies of the applicant and garnishments, attachments, or formal proceedings to adjust, defer, suspend, or otherwise work out the payment of a debt of the applicant;

46.1.k. Whether the applicant has ever been bonded or been denied any type of bond;

46.1.l. All required waivers and affidavits prescribed by the Commission; and

46.1.m. Any other information or documents that the Commission considers necessary and relevant to determine the applicant's identity, eligibility, qualifications, and suitability for licensure under the Act or this rule.

46.2. An applicant for a level-two occupational license shall complete and submit one copy of an application to the Commission. The applicant shall submit the application in the manner and form prescribed by the Commission. The Commission may require the applicant to provide any of the following information and documents:

46.2.a. The applicant's name, including any aliases or nicknames;

46.2.b. The applicant's date of birth;

46.2.c. The applicant's physical description;

46.2.d. The applicant's current address and residence history;

46.2.e. The applicant's employment history;

46.2.f. The applicant's education and training;

46.2.g. The convictions of the applicant for any crime involving gaming, theft, fraud or moral turpitude;

46.2.h. Whether the applicant has ever been bonded or been denied any type of bond;

46.2.i. The fingerprint record authorization for digital fingerprint recording by the Commission;

46.2.j. All required waivers and affidavits prescribed by the Commission; and

46.2.k. Any other information that the Commission considers necessary and relevant to determine the applicant's eligibility, qualifications, and suitability for licensure under the Act and this rule.

W. Va. Code R. § 179-8-47 Occupational Licensing Procedures

47.1. An applicant for an occupational license shall submit, together with the required application fee, a completed application that has been endorsed by an authorized representative of the casino by whom the applicant will be employed if the applicant is licensed.

47.2. After the Commission has received the completed occupational license application, appropriate application fee, photograph, and fingerprints, the Commission shall review the applicant's application and conduct a criminal history check on the applicant.

47.3. If a preliminary review of the application and the criminal history check does not uncover or indicate any apparent deficiencies in the application or other circumstances that may require denial of the application under the licensing standards of the Act and this rule, then the Director may issue a temporary occupational license to the applicant. The temporary occupational license authorizes the applicant to perform the employment duties for which the license is sought, pending Commission action on the applicant's license application. A temporary license issued under this rule is valid for not more than ninety days, but may be extended upon expiration by the Director if the criteria in this subsection are satisfied.

47.4. The Director shall issue a temporary identification badge to the temporary occupational licensee. The color of the temporary identification badge shall be different from the occupational license identification badge that is given to an occupational licensee upon issuance of a full occupational license. The temporary identification badge shall contain and display information prescribed by the Commission.

47.5. Temporary occupational licensees shall wear and clearly display a legible name tag and shall have their temporary identification badge in their possession at all times during work hours at the casino.

47.6. A person shall pay a fee of $10.00 to the Commission for any necessary replacement of a temporary identification badge.

47.7. A temporary identification badge shall not be transferred and shall be immediately returned to the Commission if the temporary licensee resigns or if his or her employment at the casino is terminated.

47.8. If, upon further investigation and review of the temporary licensee's application, the Director determines that the applicant is not eligible or suitable for licensure under the Act and this rule, then the Director may, upon written notice to the licensee and the licensee's employer, revoke the temporary license and order the immediate return of the temporary identification badge to the Commission.

47.9. If a temporary occupational license expires or is revoked, then the licensee shall not continue his or her employment and shall not perform the work duties for which the license is required.

47.10. If an applicant's temporary license expires or is revoked, the Director shall immediately forward the temporary licensee's application to the Commission for action together with a written report to the Commission recommending granting or denial of the application. The Director's report shall state the reasons for his or her recommendation for Commission action on the application.

47.11. Before issuance of an occupational license, an occupational license applicant shall have the burden of producing the information, documentation, and assurances in his or her application to establish, by clear and convincing evidence, that the applicant is eligible, qualified, and suitable to receive the occupational license for which application is made, under the licensing standards in the Act and this rule.

47.12. The applicant shall demonstrate to the Commission a level of skill, knowledge, and/or experience reasonably necessary to perform the job duties required for the occupational license for which application is made. However, an applicant may still be employed by the casino to perform the duties if the casino agrees to provide necessary training to the applicant. 47.13 An applicant is not eligible, qualified, or suitable for an occupational license if he or she:

47.13.a. Has knowingly made a false statement of a material fact to the Commission;

47.13.b. Has been suspended from operating a gaming game, gaming device or gaming operation in another jurisdiction by a board or other governmental authority of that jurisdiction having responsibility for the regulation of gaming or gaming activities;

47.13.c. Has been convicted of an offense of moral turpitude, a gaming offense, a theft or fraud offense, or has otherwise demonstrated, either by a police record or other satisfactory evidence, a lack of respect for law and order; or

47.13.d. Has failed to meet any monetary obligation in connection with a gaming facility or any other form of gaming.

47.14. Unless waived by the Commission, an applicant whose name appears on the exclusion list of any jurisdiction is not eligible, qualified, or suitable to be issued an occupational license.

47.15. An applicant shall also have good moral character, reputation, and integrity, and comply with any other licensing standard that the Commission considers necessary to ensure compliance with the Act and this rule and protect the public and the credibility and integrity of gaming in the state.

W. Va. Code R. § 179-8-48 Commission Action on Occupational License Applications

48.1. After the completion of the background investigation, the Director shall report to the Commission, in writing, regarding the staff's background investigation of the occupational license applicant. Upon receipt of the Director's report, the Commission shall grant or deny the application.

48.2. If the Commission grants the application, it shall direct the Director to issue an occupational license.

48.3. If the Commission denies the application, then it shall direct the Director to issue the applicant a notice of denial by certified mail. The notice of denial does not initially constitute a finding that the applicant is ineligible, unqualified, or unsuitable to be licensed. If the applicant fails to request a hearing in a timely manner, then the notice of denial becomes the final order of the Commission. For purposes of this section, “timely” means “within ten calendar days.”

W. Va. Code R. § 179-8-49 Requirements for Occupational License Identification Badge

49.1. Upon a finding of suitability for licensure and payment of the appropriate license fee, the Commission shall issue an occupational license identification badge for the applicant. The license identification badge shall be in the form prescribed by the Commission.

49.2. The occupational license shall contain all of the following information:

49.2.a. The occupational licensee's first name, last name, and job title;

49.2.b. The occupational license number assigned by the Commission;

49.2.c. The level of the occupational license;

49.2.d. The signature of the Director of the West Virginia Lottery;

49.2.e. The date that the occupational license was issued and the date that the occupational license expires; and

49.2.f. Any other information prescribed by the Commission.

49.3. The casino shall maintain photocopies of the occupational license certificates for the respective occupational licensees it employs.

49.4. The occupational license remains the property of the Commission at all times. The occupational license may be revoked, suspended, canceled, or restricted by the Commission. The Commission may refuse to renew the license when it is reviewed under this rule.

49.5. Neither the occupational license nor the licensee identification badge shall be transferred to another person. If the occupational licensee resigns or the occupational licensee's employment is terminated, the occupational licensee shall return the license identification badge to the Commission.

49.6. The licensee identification badge shall be a card of a color designated by the Commission and meet the all of the following requirements:

49.6.a. The front side of the occupational licensee’s identification badge shall be a card bearing the name and logo of the West Virginia Lottery and display:

49.6.a.1. The applicant's photograph;

49.6.a.2. The applicant's first name and job title;

49.6.a.3. The occupational license number assigned by the Commission;

49.6.a.4. The level of the occupational license;

49.6.a.5. The signature of the Director of the West Virginia Lottery; and

49.6.a.6. The date the license identification badge and occupational license were issued and the date that the identification badge and occupational license will expire.

49.6.b. The back side of the occupational license identification badge shall display:

49.6.b.1. The applicant's signature and the applicant's first and last name;

49.6.b.2. The applicant's date of birth; and

49.6.b.3. Any other information considered necessary by the Commission to identify the occupational licensee, the casino of employment, the appropriate level of occupational license, and any conditions or restrictions that have been placed on the occupational license;

49.7. The colors of the permanent licensee identification badges shall be different from the color of the temporary identification badge.

49.8. An occupational licensee shall wear and clearly display a legible name tag issued by the casino licensee and shall keep the state license identification badge in his or her possession while on duty as well as while off duty when in the table gaming and security monitoring areas of the casino.

49.9. An occupational licensee shall pay to the Commission a fee of $10.00 for any necessary replacement of a licensee identification badge or the occupational license certificate. The Commission shall assess the fee each time an occupational licensee obtains a replacement identification badge or occupational license certificate.

W. Va. Code R. § 179-8-50 Reapplication for denied license

50.1. A person whose application for an occupational license has been denied may not, without permission of the Commission, reapply for an occupational license of the same or higher level for a period of one year from the date on which the Commission voted to deny the application.

50.2. A person whose application for an occupational license was denied may seek leave of the Commission to reapply within the one year period by addressing the request to the Commission through the Director. The Commission may require the applicant to present oral or written argument to the Commission outlining why an exception should be made.

PART 4. CONDUCT OF TABLE GAMING

W. Va. Code R. § 179-8-51 Rules of Table Games; Purpose

51.1. A casino licensee shall submit its table game rules to the Commission for approval to ensure all of the following:

51.1.a. The games offered by the casino licensee are performed only in accordance with the Act and this rule;

51.1.b. The functions, duties, and responsibilities associated with the casino are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel, and to ensure that an employee of the casino licensee is not in a position to perpetuate and conceal errors or irregularities in the normal course of his or her duties; and

51.1.c. The casino is operated by the casino licensee with integrity and in accordance with the Act and this rule.

W. Va. Code R. § 179-8-52 Hours of Operation

Gaming is authorized during hours set by the West Virginia Lottery Commission by its order.

W. Va. Code R. § 179-8-53 Floor Plans

53.1. A racetrack table games license applicant shall submit a floor plan or floor plans outlining each floor of the casino and the location, number, or position of each video lottery terminal and gaming table and position. A licensee or license applicant shall submit the floor plan or floor plans to the Commission not less than thirty days before the commencement of table games operations.

53.2. The casino licensee shall provide notice to the Commission of material changes in the casino floor plan before implementing the change.

53.3. The Director shall review any changes in floor plans and security camera locations. Changes in floor plans and security camera locations do not require a vote of the Commission.

W. Va. Code R. § 179-8-54 Authorized Games

54.1. The casino licensee shall not permit a table game to be played if the game is not approved by the Commission.

54.1.a. The Commission shall authorize one or more variations of the following table games to be played at the casino:

54.1.a.1. Baccarat;

54.1.a.2. Twenty-one or blackjack;

54.1.a.3. Poker;

54.1.a.4. Craps; 54.1.a.5 . Roulette;

54.1.a.6. Wheel of fortune; and 54.1.a.7 . Other table games expressly permitted by the Commission.

54.1.b. The Commission shall not authorize the following games to be played at the casino:

54.1.b.1. Punchboard;

54.1.b.2. Faro;

54.1.b.3. Numbers ticket;

54.1.b.4. Push card;

54.1.b.5. Jar ticket; and

54.1.b.6. Pull tab.

54.1.c. Notwithstanding the provisions of this section, the West Virginia Lottery Commission may license any casino to sell regular West Virginia Lottery games authorized by W. Va. Code §29-22-1 et seq.

W. Va. Code R. § 179-8-55 Submission and Approval of Game Rules

55.1. The casino licensee or racetrack table games license applicant shall submit its table game rules to the Commission in accordance with this rule. The rule for each table game shall include a schematic showing all printing and positions on the table’s felt. The State Lottery Commission’s specified identifier symbol shall appear on the table felt at the location of the casino licensee’ choosing, and shall be at least three-inches-by-three-inches in size. The location of the symbol shall be clearly visible to patrons playing the table game.

55.2. All game rules shall be in compliance with the provisions of the Act and this rule.

55.3. The casino licensee shall submit game rules in the following manner:

55.3.a. The casino licensee shall submit game rules to the Commission not less than thirty days before the commencement of table games operations or the play of the table game, or both;

55.3.b. The Commission shall vote to approve or disapprove the rules of the game in total or in part after the rules are presented by the Director. In the alternative, the Commission may delegate this approval to the Director;

55.3.c. Any portion of the game rules not approved may be revised and resubmitted by the casino licensee within the time period established by the Commission. This method shall be followed until all portions of the game rules have been approved or approval cannot be obtained;

55.3.d. Game rules may not be used by the casino licensee unless the rules of the game have been submitted and approved, in writing, by the Commission. The Commission shall approve the proposed rules of the game if the rules satisfy all of the following criteria:

55.3.d.1. The rules fulfill the purposes stated in the Act and this rule;

55.3.d.2. The rules ensure that the game will be played with integrity;

55.3.d.3. The rules are written in language that is plain to the player;

55.3.d.4. The rules will be readily available to patrons within the casino; and

55.3.d.5. The rules protect the public and ensure public confidence in gaming.

55.4. If the Commission determines, at any time, that the approved rules of the game are not adequate to ensure compliance with the Act and this rule or the integrity of the game, then the Commission may direct the casino licensee, in writing, to amend its rules of the game.

W. Va. Code R. § 179-8-56 Amendments to Game Rules

56.1. All of the following provisions apply to amendments to rules of the game:

56.1.a. Unless otherwise provided by the Commission, the casino licensee or license applicant shall submit an amendment to the rules of the game, including variations of games, to the Commission not less than thirty days before using the rules of the game; and

56.1.b. The Commission shall vote to approve or disapprove the amendment to the game rules in the same manner that an initial submission is approved or disapproved.

W. Va. Code R. § 179-8-57 Table Limits

57.1. The rules of the game submitted by the casino licensee shall require that table limits for each table be clearly posted for the public.

57.2. The casino licensee may amend the minimum and maximum wager at a table if the new maximum wager is not above the house maximum wager for the game. The casino licensee may amend the minimum and maximum wagers of a table if both of the following actions are taken:

57.2.a. A sign is posted at the gaming table advising patrons of the new minimum and maximum wagers in effect for the table; and

57.2.b. Patrons at the table are advised of the change.

57.3. The casino licensee may raise the table limit for individual patrons by following procedures for raising the limits that have been submitted with the rules of the game and approved in accordance with this rule.

W. Va. Code R. § 179-8-58 Playing Card Specifications

58.1. All playing cards used by the casino licensee shall be in compliance with all of the following specifications:

58.1.a. Unless otherwise provided in this rule, or in the game rules document, all decks of cards shall be one complete standard deck of fifty-two cards in four suits and at least one joker. The four suits shall be hearts, diamonds, clubs, and spades. Each suit shall consist of all of the following numerical cards:

58.1.a.1. Two to ten;

58.1.a.2. A jack;

58.1.a.3. A queen;

58.1.a.4. A king; and

58.1.a.5. An ace;

58.1.b. The backs of each card in a deck shall be identical and no card shall contain any marking, symbol, or design that will enable a person to know the identity of any element printed on the face of the card or that will differentiate the back of that card from any other card in the deck;

58.1.c. Edges shall be perfectly square with each side at a precise ninety degree angle to each adjacent side of the card;

58.1.d. The radius of all 4 corners shall be exactly the same;

58.1.e. The name, trade name, or logo of the casino licensee and a Lottery-specified identifier symbol shall be imprinted on the back side of each playing card;

58.1.f. In the hearts suit, the hearts shall be red in color;

58.1.g. In the diamonds suit, the diamond pips shall be red in color;

58.1.h. In the spades suit, the spades shall be black in color;

58.1.i. In the clubs suit, the trefoil-shaped figure shall be black in color;

58.1.j. All finished card decks are to be packaged using a cellophane or shrink wrap that have a tamper-resistant security seal and a tear band; and

58.1.k. The playing card manufacturer's identification name shall be placed on each deck box.

W. Va. Code R. § 179-8-59 Dice Specifications

59.1. All dice used by the casino licensee shall be in compliance with all of the following specifications:

59.1.a. The dice shall be formed in the shape of a perfect cube and of a size no smaller than 0.750 inches on each side nor larger than 0.775 inches on each side;

59.1.b. The name, trade name, or logo of the casino licensee and a Lottery-specified identifier symbol shall be imprinted on or in each die used by the casino licensee;

59.1.c. The dice shall be made exclusively of cellulose, except for the following:

59.1.c.1. Spots;

59.1.c.2. The name, trade name, or logo of the casino licensee and a Lottery-specified identifier symbol; and

59.1.c.3. The serial number or letters, or both;

59.1.d. The surface of each side of the die shall be perfectly flat and the spots contained in each side of the die shall be perfectly flush with the area surrounding the spots;

59.1.e. The edges and corners of each die shall be perfectly square and form ninety degree angles with each adjacent side;

59.1.f. The texture and finish of each side shall be exactly identical to the texture and finish of all other sides;

59.1.g. The weight of each die shall be equally distributed throughout the cube, and no side of the cube may be heavier or lighter than any other side of the cube;

59.1.h. The die shall have 6 sides bearing white circular spots from 1 to 6, respectively, with the diameter of each spot equal to the diameter of every other spot on the die;

59.1.i. The dice shall have spots arranged so that all of the following provisions are satisfied:

59.1.i.1. The side containing one spot is directly opposite the side containing 6 spots;

59.1.i.2. The side containing two spots is directly opposite the side containing five spots; and

59.1.i.3. The side containing three spots is directly opposite the side containing four spots.

59.1.j. Each spot shall be placed on the die by drilling, or the equivalent, into the surface of the cube and filling the drilled out portion with a compound that is equal in weight to the weight of the cellulose drilled out and that forms a permanent bond with the cellulose cube.

59.1.k. Each Lottery-specified identifier symbol shall be printed in a manner that shall not change the weight or balance of the die.

W. Va. Code R. § 179-8-60 Removal of Cards or Dice From Play

60.1. The casino licensee shall remove any dice or playing cards if there is an indication of any of the following:

60.1.a. The dice or playing cards have been tampered with;

60.1.b. The dice or playing cards are flawed; or

60.1.c. The dice or playing cards are defective and the defect may affect the integrity or fairness of the game.

60.2. If there is an indication that dice or playing cards have been tampered with, then the pit manager, or his or her equivalent, shall place the dice or playing cards in an envelope, seal the envelope, and give the envelope to Lottery Security. The pit manager, or his or her equivalent, shall note all of the following information on the outside of the envelope:

60.2.a. The date and time the dice or playing cards were removed from play;

60.2.b. The live gaming device from which the dice or playing cards were removed from play;

60.2.c. The characteristics that indicate that the dice or playing cards were tampered with; and

60.2.d. The name of all occupational licensees at the live gaming device from which the dice or playing cards were removed, and the name of the pit manager or his or her equivalent, who removed the dice or playing cards from play.

60.3. Except for dice that are removed from play due to the possibility of tampering, all dice shall be canceled when removed from play. Dice may be canceled by any of the following means:

60.3.a. Drilling a circular hole that is not less than 1/4 of an inch in diameter through the center of each die;

60.3.b. Destroying the die by shredding; or

60.3.c. Canceling the die in any other manner approved by the Director.

60.4. Except for playing cards that are removed from play due to the possibility of tampering, all playing cards shall be canceled by one of the following methods:

60.4.a. Drilling a circular hole that is not less than 1/4 of an inch in diameter through the center of each card in the deck;

60.4.b. Shaving not less than two corners of each playing card so that each side is no longer at ninety degree angles with each adjacent side;

60.4.c. Shredding the cards; or

60.4.d. Canceling the cards by any other method approved by the Director.

60.5. This rule shall not prevent a casino licensee from removing cards and dice from a game at any time in its discretion.

W. Va. Code R. § 179-8-61 Storage of Cards or Dice

61.1. All dice or playing cards that are not being used at a live gaming device shall be kept in locked compartments on the licensed premises.

61.2. Dice and playing cards shall not be left at a live gaming table while unattended.

61.3. The casino licensee shall maintain an inventory of all dice and playing cards on forms prescribed by the Commission. The inventory shall contain all of the following information:

61.3.a. The date on which the dice and playing cards were received;

61.3.b. The quantity of the dice and playing cards received;

61.3.c. The name, business address, and business telephone number of the manufacturer from which the dice or playing cards were received;

61.3.d. The quantity of dice and playing cards that are placed into play each day;

61.3.e. The quantity of dice and playing cards that are removed from play due to suspected tampering and the date of the removal; and

61.3.f. The quantity of dice and playing cards that are removed from play and canceled each day;

61.4. The casino licensee shall conduct a physical inventory of the dice and playing cards every three months. The casino licensee shall record the results of the physical inventory on forms prescribed by the Commission. The casino licensee shall reconcile inventory maintained in subsection 3 of this section with the results of the physical inventory. The casino licensee shall immediately report any discrepancies in the inventory forms and the physical inventory to the Commission.

W. Va. Code R. § 179-8-62 Inspection of Cards

62.1. When playing cards are accepted for play at a live gaming table, the occupational licensee accepting the playing cards shall inspect the playing cards to ensure the playing cards comply with this rule.

62.2. Playing cards shall be inspected by sorting the cards sequentially by suit and inspecting the sides of the cards for crimps, bends, cuts, shaving, or any other defect that would affect the integrity or fairness of the game.

W. Va. Code R. § 179-8-63 Inspection of Dice

63.1. Before dice are placed into play at a live gaming table, the pit manager, or his or her equivalent, shall inspect the dice to ensure the dice comply with this rule. 63.2 Dice shall be inspected by all of the following methods on a flat surface that allows the inspection of the dice to be monitored by the surveillance system:

63.2.a. A micrometer or any other approved instrument that performs the same function;

63.2.b. A balancing caliper; or

63.2.c. A steel set square and magnet.

63.3. The casino licensee shall store the micrometer or other approved instrument, the balancing caliper, and/or the steel set square and magnet in a secure place that is not accessible by the public.

W. Va. Code R. § 179-8-64 Table Game Wagering; Cashless Wagering System Required

64.1. The casino licensee may not permit any form of wagering except as authorized by this rule.

64.2. The casino licensee may receive wagers only from an individual present in a licensed gaming facility.

64.3. All table game operations shall use a cashless wagering system whereby all players’ money is converted to chips or other approved media that can only be used for wagering in a licensed casino.

64.4. Except as permitted for video lottery games under the Racetrack Video Lottery Act, W. Va. Code §29-22A-1 et seq., wagering may not be conducted with money or other negotiable currency.

W. Va. Code R. § 179-8-65 Cashing-in

The casino licensee shall comply with all Internal Revenue Service laws and regulations and state laws and rules for the withholding of taxes from winnings or the filing of currency transaction reports, or both. A patron shall produce an identification card confirming information required by all federal and state rules and regulations for the withholding of taxes from winnings or currency transaction reports, or both, before the disbursement of winnings. If no identification card is tendered by the patron, distributed winnings may be subject to backup withholdings as provided by the Internal Revenue Code.

W. Va. Code R. § 179-8-66 Submission of Chips for Review and Approval

66.1. The casino licensee shall submit, to the Commission for approval, a sample of each denomination of value and non-value chips in its primary and secondary sets and shall not use the chips for gaming purposes until approved by the Director.

66.2. In requesting approval of the chips, the casino licensee shall first submit to the Commission, before having any chips manufactured, a detailed schematic of its proposed chips, or a sample chip, which shall show the front, back, and edge of each denomination of value chip and each non-value chip, and the design and wording to be contained on the chip, all of which shall be depicted on the schematic or chip as they will appear, both as to size and location, on the actual chip. Once the design schematics or chip is approved by the Commission, a value or non-value chip shall not be issued or used until a sample of each denomination of value chip and each color of non-value chip is also submitted to, and approved by, the Commission.

66.3. The casino licensee, or any licensed supplier or unlicensed supplier, shall not manufacture for, sell to, distribute to, or use in, any casino outside West Virginia any value or non-value chips that have the same edge design as chips approved for use by the licensed casino.

W. Va. Code R. § 179-8-67 Chip Specifications; Optional Radio Frequency Identification Sensors in Each Chip

67.1. All of the following specifications apply to value chips:

67.1.a. A chip issued by the casino licensee shall be round in shape and have the name of the casino, the Lottery-specified identifier symbol and the specific value of the chip clearly and permanently impressed, engraved, or imprinted on the chip, except that the casino licensee may issue gaming chips without a value impressed, engraved, or imprinted on the chip for roulette. A chip that has a value contained on the chip is known as a "value chip" and a chip that does not have a value contained on the chip is known as a "non-value chip";

67.1.b. A value chip may be issued by the casino licensee in denominations of 50 cents, $1.00, $2.00, $2.50, $3.00, $5.00, $20.00, $25.00, $100.00, $500.00, $1,000.00, and $5,000.00. The casino licensee may determine the denominations to be used in its casino and the amount of each denomination for the conduct of casino gaming operations;

67.1.c. Each denomination of value chip shall have a primary color different from every other denomination of value chip. Value chips shall fall within the colors set forth in this subdivision when the chips are viewed both in daylight and under incandescent light. In conjunction with the primary colors, the casino licensee shall use contrasting secondary colors for the edge spots on each denomination of value chip. Unless otherwise approved by the Director, the casino licensee shall not use a secondary color on a specific denomination of chip identical to the secondary color used by a casino outside the boundaries of the State of West Virginia on the same denomination of the value chip. The primary color that the casino licensee shall use for each denomination of value chip is as follows:

67.1.c.1. 50 cents “Mustard yellow,”

67.1.c.2. $1.00 “White,”

67.1.c.3. $2.00 “Tan,”

67.1.c.4. $2.50 “Pink,”

67.1.c.5. $3.00 “Brown,”

67.1.c.6. $5.00 “Red,”

61.1.c.7. $20.00 “Yellow,”

61.1.c.8. $25.00 “Green,”

61.1.c.9. $100.00 “Black”

61.1.c.10. $500.00 “Purple,”

61.1.c.11. $1,000.00 “Fire orange,” and

61.1.c.12. $5,000.00 “Gray.”

67.1.d. Each denomination of value chip used by the casino licensee shall, unless otherwise authorized by the Commission, be in compliance with all of the following specifications:

67.1.d.1. It shall have a center portion containing the value of the chip and the name of the casino of a different shape from each other denomination;

67.1.d.2. It shall have the Lottery-specified identifier symbol;

67.1.d.3. It shall be designed so that the specific denomination of the chip can be determined on closed circuit black and white television when placed in a stack of chips of other denominations; and

67.1.d.4. At the casino’s option, or at a later time that may be determined by the Commission, each chip shall have an embedded radio frequency microchip that uniquely identifies the chip itself, the issuing casino and the denomination of the chip; and

67.1.e. The Commission may approve a value chip in denominations that deviate from the requirements of this rule if the deviation is specifically identified by the casino licensee and if the deviation does not affect the control, security, or integrity of the chips or the operation of the games.

67.2. All of the following provisions apply to non-value chips:

67.2.a. Each non-value chip used by the casino shall be issued solely for the purpose of gaming at roulette. Each non-value chip at each roulette table shall:

67.2.a.1. Have the name of the casino issuing it impressed, engraved, or imprinted into its center;

67.2.a.2. Contain a design, insert, or symbol differentiating it from the non-value chips being used at every other roulette table in the casino; and

67.2.a.3. Have the word "roulette" impressed on it;

67.2.b. Non-value chips issued at a roulette table shall only be used for gaming at that table and shall not be used for gaming at any other table in the casino. The casino licensee or its employees shall not allow a casino patron to remove non-value chips permanently from the table from which the chips were issued;

67.2.c. An individual at a roulette table shall not be issued or permitted to wager with non-value chips that are identical in color and design to value chips or to non-value chips being used by another individual at the same table. When a patron purchases non-value chips, a non-value chip of the same color shall be placed in a slot or receptacle attached to the outer rim of the roulette wheel. At that time, a marker button denoting the value of a stack of chips of that color shall be placed in the slot or receptacle;

67.2.d. Non-value chips shall only be presented for redemption at the table from which they were issued and shall not be redeemed or exchanged at any other location in the casino gaming operation. When presented for redemption, the dealer at the table shall exchange the chips for an equivalent amount of value chips, which may then be used by the patron in gaming or redeemed in the manner provided for value chips; and

67.2.e. The casino licensee may permit, limit, or prohibit the use of value chips in gaming in roulette. However, it is the responsibility of the casino licensee to keep an accurate account of the wagers being made at roulette with value chips so that the wagers made by one player are not confused with wagers made by another player at the table.

W. Va. Code R. § 179-8-68 Primary, Secondary, and Reserve Sets of Gaming Chips

68.1. Unless otherwise authorized by the Commission, the casino licensee shall have a primary set of value chips, a separate secondary set of value chips, and a non-value chip reserve that conform to the color and design specification set forth in this rule. An approved secondary set of value chips and reserve non-value chips shall be placed into active play if the primary set is removed.

68.2. The secondary set of value chips shall have different secondary colors than the primary set of value chips. A secondary set of value chips is required for all denominations in use in the casino.

68.3. The casino licensee shall have a non-value chip reserve for each color used in the casino and a design insert or symbol of the reserve chips shall be different from the non-value chips comprising the primary set.

68.4. The casino licensee shall remove the primary set of gaming chips from active play if any of the following provisions apply:

68.4.a. A determination is made by the casino licensee or the Commission that the table games operation is receiving a significant number of counterfeit chips; or

68.4.b. Any other impropriety or defect in the use of the primary set of chips makes removal of the primary set necessary.

68.5. If the primary set of chips is removed from active play, then the casino licensee shall immediately notify the Commission as to the reason for the removal.

W. Va. Code R. § 179-8-69 Distribution of Coupons for Complimentary Chips

69.1. The casino licensee may, for specified marketing purposes, provide patrons of its table games operation with coupons redeemable for complimentary chips if both of the following requirements are satisfied:

69.1.a. The processes and procedures for the control, accountability, and distribution of coupons for chips and tokens and for the redemption of the coupons are provided for in the casino licensee's internal control system and are in conformance with the internal control system; and

69.1.b. Periodic internal audits validate the integrity and accountability of the processes and procedures authorized and required under this rule.

W. Va. Code R. § 179-8-70 Exchange of Chip

70.1. The casino licensee shall issue chips to an individual only at the request of the individual and shall not issue chips as change in any other transaction. The casino licensee shall issue chips only to casino patrons at cashier's cages or at the live gaming tables and shall redeem chips only at a cashier's cage.

70.2. The casino licensee shall redeem chips only from its patrons and shall not knowingly redeem chips from any non-patron source, except when non-gaming employees present chips for redemption as provided in the approved internal control system of the casino.

70.3. The casino licensee shall promptly redeem its own chips by cash or by check dated the day of the redemption on an account of the casino licensee, as requested by the patron, except when the chips were obtained or used unlawfully.

70.4. The casino licensee may demand the redemption of its chips from any individual in possession of chips. An individual shall redeem the chips upon presentation of an equivalent amount of cash by the casino licensee.

70.5. The casino licensee shall cause to be posted and keep posted, in a prominent place a sign, visible at or near each cashier's cage, that reads as follows: "Gaming chips issued by any other casino in the world may not be wagered or redeemed in this casino.”

W. Va. Code R. § 179-8-71 Receipt of Gaming Chips From Licensed Supplier

71.1. When chips are received from the supplier, they shall be opened and checked by not less than two casino employees from different departments. The casino licensee shall promptly report to the Commission any deviation between the invoice accompanying the chips and the actual chips received or any defects found in the chips. The supplier licensee shall give the Commission prior notification of the delivery of chips to the casino licensee. The casino licensee shall not accept the delivery of chips unless the Commission has been given prior notification of the delivery.

71.2. After checking the chips received, the casino licensee shall cause to be reported, in a chip inventory ledger, all of the following information:

71.2.a. The denomination of the chips received;

71.2.b. The number of each denomination of chip received;

71.2.c. The number and description of all non-value chips received;

71.2.d. The date of the receipt; and

71.2.e. The signature of the individuals who checked the chips.

71.3. If any of the chips received are to be held as reserve chips and not used either at the gaming tables or at a cashier's cage, then a licensee shall ensure that the chips are stored in a separate locked compartment either in the vault or in a cashier's cage and are recorded in the chip inventory ledger as reserve chips.

71.4. A casino licensee shall ensure that any chips received that are part of the secondary set of chips of the casino are recorded in the chip inventory ledger as secondary chips and are stored in a locked compartment in the casino vault separate from the reserve chips.

W. Va. Code R. § 179-8-72 Inventory of Chips

72.1. Chips shall be taken from or returned to either the reserve chip inventory or the secondary set of chips in the presence of not less than two individuals from two of the following independent departments of the casino: Security; accounting; auditing; or the table games department. The denominations, number, and amount of chips taken or returned shall be recorded in the chip inventory ledger together with the date and signatures of the individuals carrying out the process.

72.2. The casino licensee shall, on a monthly basis, compute and record the unredeemed liability for each denomination of chips to ensure that an inventory of chips in circulation is made and to ensure that the result of the inventory is recorded in the chips inventory ledger. On a monthly basis, the casino licensee shall ensure that an inventory of the chips in reserve is made and ensure that the result of the inventory is recorded in the chip inventory ledger. A casino licensee shall submit the procedures it will use to compute the unredeemed liability and to inventory chips in circulation and reserve to the Commission for approval. A physical inventory of chips in reserve is required annually if the inventory procedures incorporate the sealing of the locked compartment.

72.3. During any non-gaming hours, the casino licensee shall ensure that all chips in the possession of the casino are stored in the chip bank, in the vault, or in a locked compartment in a cashier's cage. However, chips may be locked in a transparent compartment on gaming tables if there is adequate security as approved by the Commission.

W. Va. Code R. § 179-8-73 Destruction of Chips

73.1. Before destroying chips, the casino licensee shall notify the Director, in writing, of the date and the location at which the destruction will be performed, the denomination, number, and amount of value chips to be destroyed, the description and number of non-value chips to be destroyed, the denomination, number, and amount of tokens to be destroyed, and a detailed explanation of the method of destruction.

73.2. Unless otherwise authorized by the Commission, the destruction of chips shall be carried out in the presence of not less than two individuals, one of whom shall be an employee of the West Virginia Lottery.

73.3. The licensee shall ensure that the denomination, number, and amount of value chips, and the number and description of non-value chips, destroyed are recorded in the chip inventory ledger together with the signatures of the individuals carrying out the destruction and the date on which the destruction took place.

W. Va. Code R. § 179-8-74 Destruction of Counterfeit Chips

74.1. The following provisions apply to the destruction of counterfeit chips and tokens:

74.1.a. The casino licensee shall notify the Commission and the Director, by telephone and also in writing, immediately upon the discovery of a counterfeit chip or chips that results in a loss of more than one thousand dollars to the licensee;

74.1.b. The Commission may take possession of the counterfeit chips to aid the State Police in a criminal investigation; and

74.1.c. The Commission shall determine the disposition of any counterfeit chip including, but not limited to, destruction of a counterfeit chip in accordance with this rule.

74.2. The following provisions apply to the destruction of counterfeit chips:

74.2.a. Unless the Commission or a law enforcement officer instructs in writing, or a court of competent jurisdiction orders otherwise in a particular case, the casino licensee shall destroy or otherwise dispose of counterfeit chips discovered in the casino in a manner approved by the Commission; and

74.2.b. The casino licensee shall notify the Commission, in writing, not less than thirty days before counterfeit chips are destroyed. The casino licensee shall notify the Commission of all of the following information:

74.2.b.1. The number and denominations, actual and purported, of the counterfeit chips destroyed or otherwise disposed of under this rule;

74.2.b.2. The date on which the counterfeit chips were discovered;

74.2.b.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;

74.2.b.4. The names of the occupational licensees carrying out the destruction or other disposition on behalf of the casino licensee; and

74.2.b.5. Any information considered necessary by the Commission to ensure compliance with the Act and this rule.

74.3. Unless otherwise approved by the Commission, not less than two people, one of whom is an agent of the West Virginia Lottery, shall be present when the counterfeit chips are destroyed.

W. Va. Code R. § 179-8-75 Submission of Accounting Procedures and Internal Controls for Complimentary Chip Program

75.1. Not less than thirty days before the initiation of the coupon distribution program the casino licensee shall submit internal control procedures concerning the coupon distribution program to the Commission. The internal control procedures shall include, at a minimum, all of the following information:

75.1.a. The casino departments that will be responsible for administering the coupon distribution program;

75.1.b. The security measures that will be taken with respect to the coupons, including, but not limited to, all of the following information:

75.1.b.1. The manner in which the coupons will be ordered;

75.1.b.2. The manner in which the coupons will be inventoried upon receipt by the casino licensee;

75.1.b.3. The manner in which the coupons will be stored and the individuals who will have access to the coupons;

75.1.b.4. The manner in which discrepancies will be handled; and

75.1.b.5. The manner in which coupons will be voided;

75.1.c. The manner in which the coupons will be distributed;

75.1.d. The schedule for conducting routine inventories of active unissued coupons. The inventory shall be conducted monthly by not less than two individuals from separate departments. The results of the inventory shall be recorded in the coupon control ledger;

75.1.e. The manner in which coupons will be removed from the inventory, recorded, and voided once the coupons become inactive;

75.1.f. The manner in which the casino department responsible for distributing the coupons can requisition coupons from the casino department responsible for storing the coupons;

75.1.g. The maximum number of days in advance of an event that coupons can be requisitioned by the casino department responsible for issuing the coupons. The requisition document shall contain, at a minimum, all of the following information:

75.1.g.1. The date the requisition is prepared;

75.1.g.2. The day and date for which the coupons are needed;

75.1.g.3. The type or types of coupons that are requested;

75.1.g.4. The number of coupons required;

75.1.g.5. The name, title, and occupational license number of the individual completing the requisition; and

75.1.g.6. The name, title, occupational license number, and signature of the supervisor authorizing the requisition;

75.1.h. The casino department responsible for storing the coupons shall complete all of the following information before the coupons are given to the casino department responsible for distributing the coupons:

75.1.h.1. The name, title, occupational license number, and signature of the representative filling the order;

75.1.h.2. The beginning serial number of the coupons issued;

75.1.h.3. The ending serial number of coupons issued;

75.1.h.4. The total number of and type of coupons issued;

75.1.h.5. The name, title, occupational license number, and signature of the supervisor;

75.1.h.6. A record and explanation of any coupons that were voided due to discrepancies; and 75.l.h.7. The casino department responsible for storing the coupons shall enter the information in paragraphs 76.1.h.2 to 76.1.h.4 of this subdivision in the coupon control ledger;

75.1.i. The manner in which the coupons will be issued. The casino licensee shall require that coupons be stamped with the date of issuance;

75.1.j. The location of the locked cabinet in which the coupons will be stored before the distribution of the coupons;

75.1.k. The manner in which coupons may be redeemed for chips or tokens, or both, by patrons;

75.1.l. The manner in which coupons redeemed by patrons will be canceled;

75.1.m. The manner in which the coupons distributed, coupons not distributed, and coupons issued will be reconciled;

75.1.n. The manner in which coupons that have been issued, but not distributed to patrons in the appropriate time frame, will be voided and reconciled; and

75.1.o. The manner in which a dealer or cage employee shall receive and account for coupons redeemed by patrons.

75.2. The Commission shall, in writing, approve the internal control procedures in total or in part.

75.3. The casino licensee shall revise and resubmit any portion of the internal control procedures not approved by the Commission within the time frame established by the Commission. The casino licensee shall revise and resubmit the internal control procedures until all portions of the internal control procedures have been approved or approval cannot be obtained.

75.4. The casino licensee may not use an internal control procedure unless the internal control procedure has been approved by a vote of the Commission.

75.5. If the Commission determines, at any time, that approved internal control procedures are not adequate to ensure compliance with the Act and this rule, it may direct the casino licensee to amend its internal control procedure in accordance with this rule.

75.6. In lieu of manual procedures prescribed in this section 76, the Commission may approve a casino licensee’s automated process if the control of the process is sufficient for the Commission’s purposes.

W. Va. Code R. § 179-8-76 Amendments to Internal Control Procedures

76.1. The casino licensee shall make amendments to the internal control procedures with respect to complimentary chip programs as follows:

76.1.a. Unless otherwise provided by the Commission, the casino licensee shall submit amendments to the internal control procedures to the Commission not less than thirty days before using the amended internal control procedure;

76.1.b. The Commission or its designee shall, in writing, approve the amendment to the internal control procedure in total or in part; and

76.1.c. The casino licensee shall not use an amendment to internal control procedures unless the amendment to the internal control procedure has been approved, in writing, by the Commission.

W. Va. Code R. § 179-8-77 Coupon Accounting Procedures and Distribution Program

77.1. Not less than two casino departments shall be responsible for administering the coupon accounting procedures and distribution program. One casino department shall be responsible for storing the coupons and the other department shall be responsible for issuing the coupons.

77.2. The casino licensee shall ensure that coupons received from a supplier are opened and examined by not less than two individuals from different casino departments. The casino licensee shall ensure that any deviations in the coupons ordered and coupons received are recorded in compliance with this rule and are reported immediately to the appropriate supervisor.

77.3. The casino licensee shall maintain a coupon control ledger in the manner prescribed by the Commission. The coupon control ledger shall contain, at a minimum, all of the following information:

77.3.a. The date the coupons were received;

77.3.b. The type and quantity of coupons received;

77.3.c. The beginning serial number of the coupons received;

77.3.d. The ending serial number of the coupons received;

77.3.e. The purchase order number or requisition number for the coupons received;

77.3.f. The signatures and occupational license numbers of all individuals who examined the coupons upon receipt of the coupons;

77.3.g. The date the coupons were issued to the casino distribution department;

77.3.h. The beginning serial number of the coupons issued to the casino distribution department;

77.3.i. The ending serial number of the coupons issued to the casino distribution department;

77.3.j. The number and quantity of coupons issued to the casino distribution department;

77.3.k. The balance of unissued coupons on hand;

77.3.l. The name, title, occupational license number, and signature of the representative issuing the coupons;

77.3.m. The name, title, occupational license number, and signature of the representative receiving the issued coupons;

77.3.n. A record of any coupons that are distributed to patrons; and

77.3.o. A record and explanation of any deviations from the licensed gaming facility licensee’s coupon specifications.

77.4. The casino department responsible for distributing the coupons shall maintain a daily coupon reconciliation form. One daily coupon reconciliation form shall be completed to account for all individuals responsible for distributing coupons to patrons. The daily coupon reconciliation form shall contain, at a minimum, all of the following information:

77.4.a. The date;

77.4.b. The type of coupon being issued;

77.4.c. The beginning and ending serial numbers of the coupons the individual has to distribute to patrons;

77.4.d. The quantity of coupons the individual has to distribute to patrons;

77.4.e. The total number of coupons the individual distributed to patrons;

77.4.f. The beginning and ending serial numbers of coupons not distributed to patrons;

77.4.g. The total number of coupons not distributed to patrons;

77.4.h. The serial numbers of any coupons that were voided and the reason the coupons were voided;

77.4.i. The name, title, occupational license number, and signature of the individual distributing the coupons to patrons and completing the form;

77.4.j. The name, title, occupational license number, and signature of the occupational licensee’s supervisor; and

77.4.k. Any variations discovered and an explanation of the variations.

77.5. In lieu of any manual procedures prescribed in this section 77, the Commission may approve a casino licensee’s automated process if the control of the automated process is sufficient for the Commission’s purposes.

W. Va. Code R. § 179-8-78 Coupon Requirements

78.1. Coupons used in the complimentary chips program shall be original instruments and shall contain, at a minimum, all of the following information:

78.1.a. Any serial number assigned to the coupon;

78.1.b. A description of the value of the coupon;

78.1.c. The location or locations where the coupon may be redeemed;

78.1.d. The name of the casino licensee;

78.1.e. The date or dates for which the coupon is valid;

78.1.f. The Lottery-specified identifier symbol; and

78.1.g. Any other information considered necessary by the Commission to ensure compliance with the Act and this rule.

78.2. If a multiple-part coupon is used, then each part of the coupon shall contain the information set forth in this subsection.

78.3. Coupons shall be designed and manufactured so that the denomination and type of coupon can be determined using the surveillance system.

W. Va. Code R. § 179-8-79 Records

79.1. The casino licensee shall maintain the records required by this rule for at least the current year and the previous two years unless they are sooner audited by the Commission or its designee.

79.2. The casino licensee shall allow the Commission access to, or provide copies of, the records maintained under this rule upon request by the Commission.

PART 5. INTERNAL CONTROL PROCEDURES

W. Va. Code R. § 179-8-80 Purpose

80.1. The procedures of the internal control system are designed to ensure that:

80.1.a. Assets of the casino licensee are safeguarded;

80.1.b. Financial records of the casino licensee are accurate and reliable;

80.1.c. Transactions of the casino licensee are performed only in accordance with the specific or general authorization of this part;

80.1.d. Transactions are recorded adequately to permit the proper recording of the adjusted gross receipts, fees, and all applicable taxes;

80.1.e. Accountability for assets is maintained in accordance with generally accepted accounting principles;

80.1.f. Only authorized personnel have access to assets;

80.1.g. Recorded accountability for assets is compared with actual assets at reasonable intervals and appropriate action is taken with respect to any discrepancies;

80.1.h. Internal control functions, duties, and responsibilities are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel and that no employee of the casino licensee is in a position to perpetuate and conceal errors or irregularities in the normal course of the employee's duties; and

80.1.i. Gaming is conducted with integrity and in accordance with the Act and this rule.

W. Va. Code R. § 179-8-81 Commission Approval of Internal Control System

81.1. The casino licensee shall describe, in a manner that the Commission may approve or require, its administrative and accounting procedures in detail in a written system of internal control. A written system of internal controls shall include a detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of this rule. Additionally, the description shall include a separate section for all of the following:

81.1.a. An organizational chart depicting the appropriate segregation of internal control functions and responsibilities;

81.1.b. A description of the duties and responsibilities of each position shown on the organizational chart;

81.1.c. A detailed, narrative description of the administrative and accounting procedures designed to satisfy the requirements of this rule with separate sections for the:

81.1.c.1. Physical characteristics of the drop box and tip box;

81.1.c.2. Transportation of drop and tip boxes to and from gaming tables;

81.1.c.3. Procedures for table inventories;

81.1.c.4. Procedures for opening and closing gaming tables;

81.1.c.5. Procedures for fills and credits;

81.1.c.6. Procedures for accepting and reporting tips and gratuities;

81.1.c.7. Procedures for transporting chips and tokens to and from gaming tables;

81.1.c.8. Procedures for shift changes at gaming tables;

81.1.c.9. Procedures for chip and token purchases;

81.1.c.10. Procedures for the transportation of electronic gaming devices;

81.1.c.11. Layout and physical characteristics of the cashier's cage;

81.1.c.12. Procedures for accounting controls;

81.1.c.13. Procedures for the exchange of checks submitted by gaming patrons;

81.1.c.14. Procedures for credit card and debit card transactions;

81.1.c.15. Procedures for the acceptance, accounting for and redemption of a patron's cash deposits;

81.1.c.16. Procedures for the control of coupon redemption and other complimentary distribution programs;

81.1.c.17. Procedures for federal cash transactions reporting; and

81.1.c.18. Procedures for computer backups and assuring the retention of financial and gaming operation.

81.1.e. Other items required by the Commission.

81.2. Not less than ninety days before the gaming operation commences, unless otherwise directed by the Commission, the casino licensee shall submit, to the Commission, a written description of its internal control system that is designed to satisfy the requirements of subsection 81.1 of this rule.

81.2.a. If the written internal control system is the initial submission to the Commission, then a letter shall be submitted from an independent certified public accountant selected by the applicant or licensee and approved by the Commission stating that the licensee's written system has been reviewed by the accountant and is in compliance with the requirements of subsection 81.1 of this rule;

81.2.b. The Commission shall review each submission required by this subsection of this rule and shall determine whether it conforms to the requirements of subsection 81.1 of this rule and whether the system submitted provides adequate and effective controls for the operations of the licensee; and

81.2.c. If the Commission finds any insufficiencies, then the Commission shall specify the insufficiencies, in writing, and submit the written insufficiencies to the licensee. The casino licensee shall make appropriate alterations.

81.3. The casino shall not commence gaming operations until a system of internal controls is approved.

W. Va. Code R. § 179-8-82 Amendments to Internal Control Procedures

82.1. All of the following provisions apply to amendments to the internal control procedures:

82.1.a. Unless otherwise provided by the Commission, amendments to any portion of the internal control procedures shall be submitted to the Commission not less than thirty days before the amended internal control procedure is used;

82.1.b. The Commission shall vote to approve the amendment to the internal control procedure in total or in part; and

82.1.c. An amendment to internal control procedures may not be used by the casino licensee unless the amendment to the internal control procedure has been approved by a vote of the Commission;

W. Va. Code R. § 179-8-83 Internal Control Emergency Procedures

83.1. In the event of an emergency, the casino licensee may temporarily amend an internal control procedure. The Director must concur that an emergency exists before the casino licensee may amend an internal control procedure.

83.2. The casino licensee shall report any emergency temporary amendment of the internal control procedures to the Director immediately.

83.3. The casino licensee shall submit a description of the emergency temporary amendment of the internal control procedures and the circumstances necessitating the emergency amendment to the Commission promptly within five calendar days of the amendment.

83.4. As soon as the circumstances necessitating the emergency temporary amendment to the internal control procedures abate, the casino licensee shall resume compliance with the approved internal control procedures.

PART 6. SECURITY AND SURVEILLANCE

W. Va. Code R. § 179-8-84 Surveillance and Recording Systems; Staffing; Installation of Different or New Types of Audio or Visual Recording or Surveillance Technology

84.1. The casino licensee shall require that the casino surveillance room be staffed by an occupational licensee employed to work in the surveillance department at all times that any of the following occur:

84.1.a. Gaming;

84.1.b. The currency collection process;

84.1.c. The soft count process;

84.1.d. Armored car cash deliveries and pickups; and

84.1.e. Other times considered necessary by the Commission to ensure compliance with the Act and this rule.

84.2. Subject to approval of the Commission, the casino licensee may install different or new types of audio or visual recording or surveillance technology in the casino and related facilities for purposes of compliance with the Act or this rule.

W. Va. Code R. § 179-8-85 Surveillance and Commission Surveillance Room Specifications

85.1. There shall be recording and monitoring rooms in the casino. The room for the use of the casino’s surveillance employees of the gaming operation shall be designated the "Casino Surveillance Room." The casino security office shall be separate from the casino surveillance room and be located in a different area of the building.

85.2. The casino’s surveillance room shall:

85.2.a. Be located out of the general view of patrons and non-surveillance employees; and

85.2.b. Have access limited to surveillance room personnel and persons with a legitimate need to enter the area.

85.3. Within the suite of offices set aside by the casino licensee for the use of Commission personnel, one of the rooms shall be equipped with surveillance monitoring equipment that will allow representatives of the Commission to view any camera scene the casino monitors without intervention or assistance of casino personnel.

W. Va. Code R. § 179-8-86 Detained or Arrested Persons

The casino licensee shall immediately report, to on-site Commission personnel the physical detention of a person suspected of criminal activity.

W. Va. Code R. § 179-8-87 Secured Delivery Station Specifications

The casino licensee shall provide a secure delivery station that shall be covertly surveilled and monitored during all hours of operation.

W. Va. Code R. § 179-8-88 Required Surveillance Equipment

88.1. The casino licensee shall install a closed circuit television system in accordance with this rule.

88.2. The casino shall have a sufficient number of monitors in the surveillance rooms to protect patrons adequately and ensure the integrity of casino gaming. The Commission surveillance room and the casino surveillance room shall have appropriate switching capabilities to ensure all surveillance cameras are accessible to monitors in each room, except for the camera and monitor that allow the Commission, or West Virginia State Police personnel assigned to the Commission, or both, to monitor employees in the casino surveillance room. The equipment in the Commission surveillance room shall be able to monitor and record, without being overridden, anything visible by monitor to employees of the casino licensee.

88.3. A table game shall have cameras that continuously monitor and record all games during all hours of casino operations.

88.4. The Commission surveillance room shall have a color television monitoring system which is in compliance with the requirements for surveillance equipment in this rule and which is capable of monitoring employees in the casino surveillance room.

88.5. The equipment used in the closed circuit television system shall be in compliance with all of the following requirements:

88.5.a. Color television cameras shall provide good resolution for observing chips, dice, playing cards and positions on the roulette wheel;

88.5.b. The cameras shall be equipped with lenses of sufficient magnification capabilities to allow the operator to clearly distinguish the value of all of the following:

88.5.b.1. Chips;

88.5.b.2. Dice;

88.5.b.3. Playing cards; and

88.5.b.4. Positions on the roulette wheel.

88.5.c. Each monitor shall have a date and time generator that is synchronized to a central clock which can be displayed on any of the monitors while recording on videotape, video pictures, or other means of electronic recording;

88.6. There shall be sufficient recorders to allow for the simultaneous recording of the coverage described in this rule, off-line playback, and duplication capabilities

88.7. Surveillance equipment must have a backup power supply so that the date-time generator remains accurate despite power interruptions.

W. Va. Code R. § 179-8-89 Closed Circuit Television Required Surveillance

89.1. The surveillance closed circuit television system shall be capable of covertly monitoring activities on the casino floor and related areas, including patron passages leading to and from the casino operation and gaming operation areas.

89.2. The Commission may require additional areas be monitored to ensure compliance with the Act and this rule and to ensure the safety of patrons and the integrity of gaming.

W. Va. Code R. § 179-8-90 Closed Circuit Television Surveillance System Coverage

90.1. All of the following areas of the casino shall be covertly monitored:

90.1.a. Live gaming tables;

90.1.b. Pits;

90.1.c. The main bank;

90.1.d. The soft count room; and

90.1.e. The secured delivery station.

90.2. The surveillance system shall provide an overall view of live table games that permits clear identifying of all of the following:

90.2.a. Dealers;

90.2.b. Patrons;

90.2.c. All pit personnel; and

90.2.d. Activities of all pit personnel.

90.3. The playing surface of the tables shall be viewed with sufficient clarity to determine all of the following:

90.3.a. All wagers;

90.3.b. Card values; and

90.3.c. Game results.

90.4. The playing surface of the tables shall be viewed with sufficient clarity to clearly observe, in detail, all of the following:

90.4.a. Chip trays;

90.4.b. Token holders;

90.4.c. Cash receptacles;

90.4.d. Tip boxes;

90.4.e. Dice;

90.4.f. Shuffle machines;

90.4.g. Card shoes; and

90.4.h. The Lottery-specified identifier symbol.

90.5. The surveillance system shall be capable of providing a reasonably clear view of all of the following:

90.5.a. The activity by players and employees, alone or in concert, that may constitute cheating or stealing;

90.5.b. The failure of employees to follow proper procedures and internal controls;

90.5.c. The treatment of disorderly persons;

90.5.d. The treatment of persons on the exclusion list;

90.5.e. Arrests and evictions; and

90.5.f. The movement of cash, cards, chips, or dice on the casino floor. Upon notification of the intended movement of any cash, cards, chips, or dice, both of the following provisions shall be complied with:

90.5.f.1. The surveillance system personnel shall record the notification in the Activities log; and

90.5.f.2. During the course of routine surveillance, the progress of the movement shall be monitored to ensure that all procedures and internal controls are followed; and

90.5.g. Areas where any of the following items are stored shall be monitored by a dedicated camera capable of continuous recording or motion activation:

90.5.g.1. Cash;

90.5.g.2. Chips;

90.5.g.3. Cards; and

90.5.g.4. Dice;

90.5.h. Areas where any of the following items are transported or stored shall be monitored by a dedicated camera capable of continuous recording or motion activation:

90.5.h.1. Chips;

90.5.h.2. Cash; and

90.5.h.3. Cash equivalents.

W. Va. Code R. § 179-8-91 Closed Circuit Television Surveillance System Recording Requirements

91.1. The surveillance system shall visually record any activity considered necessary by the Commission to ensure compliance with the Act and to ensure protection of the public and the integrity of table gaming. These activities shall be set forth in an interpretive rule of the Commission.

91.2. All soft count activities shall be both visually and audibly recorded.

W. Va. Code R. § 179-8-92 Retention of Recorded Activities

92.1. Date and time readings of routine activity shall be recorded and retained for not less than fourteen days.

92.2. The original recording of a violation of internal controls or criminal activity shall immediately be provided to the Commission and a copy of the recording shall be retained for not less than fourteen days.

W. Va. Code R. § 179-8-93 Segregated and Secured Telephone Communication

The casino licensee shall provide, in the West Virginia Lottery’s surveillance room and in the West Virginia Lottery casino office, a segregated and secured telephone communications system for use by the Commission personnel and by West Virginia State Police personnel assigned to assist the Commission.

W. Va. Code R. § 179-8-94 Daily Surveillance Logs; Visitors’ Logs

94.1. The casino licensee shall maintain a daily surveillance log and a log of visitors to the surveillance room. A daily surveillance log shall:

94.1.a. Be continuously maintained by surveillance personnel;

94.1.b. Be changed with each shift change of personnel;

94.1.c. Be chronological;

94.1.d. Contain, at a minimum, all of the following information:

94.1.d.1. The date and time of each entry;

94.1.d.2. The identity of the employee making the entry;

94.1.d.3. A summary of the activity recorded;

94.1.d.4. A detailed statement of whether the activity was monitored; and

94.1.d.5. A detailed statement concerning the disposition of the recording, if recorded;

94.1.e. Unless otherwise directed by the Commission, include entries for all of the following information:

94.1.e.1. The identity of the surveillance room personnel each time they enter or depart the surveillance room;

94.1.e.2. The notification of any maintenance or repair of any gaming device or money handling equipment;

94.1.e.3. Live table drop box exchanges;

94.1.e.4. Transfers of cash, chips, cards, or dice;

94.1.e.5. The beginning, end, and any interruptions of the soft count;

94.1.e.6. An observed violation of this rule or of the licensee's internal control procedures;

94.1.e.7. An observed criminal activity;

94.1.e.8. Malfunction or repair of surveillance equipment;

94.1.e.9. Any emergency activity;

94.1.e.10. Surveillance conducted on anyone or any activity that appears unusual, irregular, or illegal or appears to violate the Act or this rule;

94.1.e.11. Surveillance conducted at the request of the casino licensee, an employee of the casino licensee, a Commission employee, or the West Virginia State Police; and

94.1.e.12. Other notations considered necessary by surveillance room personnel or the Commission to ensure compliance with the Act and this rule; and

94.1.f. Be retained for not less than ninety days.

94.2. A visitors log shall:

94.2.a. Include the signature of anyone other than surveillance room personnel on duty, who accesses the surveillance room;

94.2.b. Identify all visitors;.

94.2.c. State the department or agency the visitor represents;

94.2.d. State the reason for access to the room;

94.2.e. Provide the date and time of arrival and departure from the room; and

94.2.f. Be retained not less than ninety days.

94.3. All surveillance room tapes, logs, and reports shall:

94.3.a. Be retained in a manner to allow them to be easily retrieved by any of the following:

94.3.a.1. Date;

94.3.a.2. Location of activity; or

94.3.a.3. Type of activity; and

94.3.b. Be furnished to the Commission or personnel of the West Virginia State Police assigned to the Commission immediately upon demand. The casino licensee may retain a copy of any tape, log, or report at the licensee's own expense.

W. Va. Code R. § 179-8-95 Commission’s Casino Premises Office

95.1. The casino licensee shall provide free of any charge a secure and segregated suite at the casino premises for the exclusive use of the Commission. The suite shall be located proximate to the gaming floor.

95.2. The suite shall include the Commission surveillance room and shall be a size approved by the Commission based on the casino’s size and Commission staffing needs within the casino. The live feeds from all surveillance cameras in the casino shall be sent to the Commission surveillance office. The Commission’s surveillance office shall be able to use the dual feed without intervention of the casino surveillance office.

95.3. The Commission casino premises office shall have a secure telephone line that has a different number than the telephone line of the casino. The secure telephone line shall provide not less than two extensions and direct emergency lines as described in this rule.

95.4. The casino licensee shall provide parking in proximity to the casino for use of the Commission on a basis consistent with parking made available to supervisory personnel of the casino. The actual number of spaces shall be decided by the Commission.

W. Va. Code R. § 179-8-96 Surveillance Equipment; Maintenance and Malfunctions

The casino licensee shall inform an on-site Commission representative if surveillance equipment is expected to be out of service for more than thirty minutes due to maintenance or malfunction.

W. Va. Code R. § 179-8-97 Emergency Procedures

97.1. Before commencing table games operations, the licensee or applicant shall submit to the Commission, the West Virginia State Police and the fire department in closest proximity to the casino, an emergency action plan for the response to, and management of, fire and medical emergencies, terrorist activities and natural disasters in all areas of the casino.

97.1.a. The plan shall include procedures for notification of the West Virginia Lottery, the West Virginia State Police, and/or fire or emergency medical personnel, and procedures for expedited and unimpeded access of the personnel into all areas of the casino in the event of a fire, medical, or other emergency.

97.1.b. The plan shall also include an inspection schedule allowing the West Virginia personnel, the West Virginia State Police and local fire department personnel to inspect all areas of the casino for compliance with applicable fire and emergency laws, codes, and ordinances.

97.2. In an emergency, the safety of patrons and personnel is the first priority.

97.3. In an emergency if sufficient time exists, the casino licensee shall:

97.3.a. Secure all records;

97.3.b. Replace all recordings;

97.3.c. Set recorders for slow speeds;

97.3.d. Activate dedicated cameras and recording devices; and

97.3.e. Set all other available cameras and recorders.

97.4. A licensee shall place cameras and recording devices in areas where unusual occurrences have been observed or where reason exists to believe unusual occurrences will occur.

W. Va. Code R. § 179-8-98 Incident Training Required

98.1. The casino licensee shall require licensed casino surveillance and security personnel to undergo annual incident training.

98.2. Incident training shall deal with, but is not limited to, power failure, fire, violent acts by patrons, hostage sieges and acts of terrorism.

98.3. A casino licensee’s incident training may be observed or joined by the West Virginia Lottery, the West Virginia State Police, and/or the local fire department.

W. Va. Code R. § 179-8-99 Surveillance Plan

99.1. The casino licensee shall submit a surveillance plan to the Commission not less than sixty days before the commencement of gaming operations. The plan shall include both of the following:

99.1.a. A floor plan that shows the placement of all surveillance equipment; and

99.1.b. A detailed description of the surveillance system and its equipment.

99.2. The casino licensee shall resubmit the surveillance plan with alterations required by the Director not less than thirty days before the institution of the alterations. Alterations recommended by Commission personnel may be implemented as agreed to by the licensee and the Commission.

99.3. The casino licensee shall submit all of the following alteration information:

99.3.a. The details of the change, including the floor plan;

99.3.b. The reason for the change; and

99.3.c. The expected results of the change.

99.4. The casino licensee shall submit the surveillance plan to the Commission for approval. The casino licensee may commence operations if a surveillance plan is approved. The Commission shall advise the casino licensee of its decision in writing. The casino licensee shall not commence operations or institute alterations if the surveillance plan or alterations are disapproved.

W. Va. Code R. § 179-8-100 Surveillance of Employees

Any employee whose duties will be monitored in accordance with this rule shall be informed by the casino licensee before commencing his or her duties that his or her surveillance is a requirement of employment.

W. Va. Code R. § 179-8-101 Communications Equipment

The casino licensee shall assure that portable telephone or two-way radio communication equipment, or both, may be operated from all areas of the casino including, but not limited to, secure or underground areas.

PART 7. SEIZURE, FORFEITURE AND DISCIPLINARY HEARINGS

W. Va. Code R. § 179-8-102 Commission License as Revocable Privilege; Reasons for Investigation of, or Disciplinary Action Against, Licensee; Hearing Procedure

102.1. A West Virginia Lottery Commission licensee has a continuing duty to maintain suitability for licensure. A Commission license does not create a property right, but is a revocable privilege contingent upon continuing suitability for licensure.

102.2. The Commission may initiate an investigation or a disciplinary action, or both, against a licensee if the Commission has reason to believe that at least one of the following provisions applies:

102.2.a. The licensee is not maintaining suitability for licensure;

102.2.b. The licensee is not complying with licensure conditions; or

102.2.c. The licensee is not complying with the Act or this rule.

102.3. The Commission shall appoint a Commission member or an administrative hearing officer to conduct a hearing after a complaint has been filed and shall generally follow the West Virginia Administrative Procedures Act, W. Va. Code §29A-5-1 et seq., and the Commission’s Administrative Appeal Procedures Rule, 179 CSR 2.

102.4. The person demanding a hearing shall give security for the cost of the hearing in the amount of three hundred dollars in the form of a certified check, a cashier’s check or a money order, which shall accompany the petition demanding a hearing. The fee of three hundred dollars may be waived by the Commission for good cause shown. By a uniform order of the Commission, the amount of the security may in future years be changed to another amount to reflect the actual costs of holding appeal hearings.

W. Va. Code R. § 179-8-103 Special Proceedings

103.1. The Commission may suspend the license issued to the casino without notice or hearing if the Commission determines that the safety or health of patrons or employees would be threatened by the continued operation of the casino or that the action is necessary for the immediate preservation of the integrity of casino gaming, the West Virginia Lottery, public peace, health, safety, morals, good order, or general welfare.

103.2. If the Commission determines that an emergency exists, then the Commission may suspend the casino's license, a supplier's license, an occupational license or a management services license after a hearing conducted by a hearing officer. The resulting order shall include a brief statement of the facts and the law that justifies the Commission's decision to take the specific action.

103.3. The suspension of the casino's license may continue until the Commission determines that the cause for the suspension of the license has been abated.

103.4. The Commission may revoke the casino's license if the Commission determines that the licensee has not made satisfactory progress toward abating the hazard to the safety or health of patrons or employees within a reasonable period of time.

PART 8. ACCOUNTING RECORDS AND PROCEDURES

W. Va. Code R. § 179-8-104 Ownership Records

104.1. The casino licensee shall keep and provide to the Commission upon request, all of the following records:

104.1.a. If the casino or any controlling person of the licensee is a publicly traded corporation, a list of those executive officers of the publicly traded corporation whose ongoing and regular responsibilities relate or are expected to relate directly to the operation or oversight of the casino;

104.1.b. If the casino licensee is a corporation, but is not a publicly traded corporation, then all of the following records:

104.1.b.1. A certified copy of its articles of incorporation and any amendments;

104.1.b.2. A certified copy of its bylaws and any amendments;

104.1.b.3. A certificate of good standing from the state of its incorporation;

104.1.b.4. If the corporation is operating as a foreign corporation in West Virginia, a certificate of authority from the West Virginia Secretary of State's Office authorizing it to do business in West Virginia;

104.1.b.5. A list of all current and former officers and directors for a period of two years before West Virginia licensure;

104.1.b.6. A certified copy of the minutes of all meetings of the stockholders and directors for a period of two years before West Virginia licensure;

104.1.b.7. A current list of all current stockholders, including the names of beneficial owners of shares held in street or other names;

104.1.b.8. The name of any company and a current list of all stockholders in the company, including the names of beneficial owners of shares held in street or other names, in which the corporation has a direct, indirect, or attributed interest;

104.1.b.9. A copy of the stock certificate ledger or its electronic equivalent;

104.1.b.10. A complete record of all transfers of stock to the extent available to the licensee or applicant;

104.1.b.11. A schedule of amounts paid to the corporation for the issuance of stock and other capital contributions and the dates the amounts were paid;

104.1.b.12. A schedule of all dividends distributed by the corporation; and

104.1.b.13. A schedule of all direct or indirect salaries, wages, and other remuneration, including prerequisites, paid during the calendar or fiscal year by the corporation to all officers, directors, and stockholders that have an ownership interest, at any time during the calendar or fiscal year, that is more than five percent of the outstanding capital stock of any class of stock; or

104.1.c. If the casino licensee is a limited liability company, then all of the following records:

104.1.c.1. A certified copy of the articles of organization;

104.1.c.2. A certified copy of the operating agreement;

104.1.c.3. A list of all current and former managers, including their names and addresses;

104.1.c.4. A list of the members, including all of the following information:

104.1.c.4.A. Names;

104.1.c.4.B. Addresses;

104.1.c.4.C. The percentage of interest in net assets, profits, and distributions of cash held or attributable to each;

104.1.c.4.D. The amount and date of each capital contribution of each member;

104.1.c.4.E. The date the interest was acquired; and

104.1.c.4.F. The method of determining a member's interest; and

104.1.c.5. A schedule of all withdrawals of company funds or assets by members;

104.1.c.6. A schedule of direct or indirect salaries, wages, and other remuneration, including prerequisites, paid to each member during the calendar or fiscal year;

104.1.c.7. A copy of the membership ledger or its electronic equivalent;

104.1.c.8. A complete record of all transfers of membership interests; and

104.1.c.9. A schedule of amounts paid to the company for the issuance of membership interests and other capital contributions and the dates the amounts were paid;

104.1.d. If the casino licensee is a partnership, then all of the following records:

104.1.d.1. A certified copy of the partnership agreement;

104.1.d.2. A certificate of limited partnership of its domicile;

104.1.d.3. A list of the partners, including all of the following information:

104.1.d.3.A. Names;

104.1.d.3.B. Addresses;

104.1.d.3.C. The percentage of interest in net assets, profits, and losses held by each partner;

104.1.d.3.D. The amount and date of each capital contribution of each partner;

104.1.d.3.E. The date the interest was acquired; and

104.1.d.3.F. The description of the form of the person's partnership interest, for example, limited partner; or

104.1.e. If the casino licensee is a sole proprietorship, then all of the following records:

104.1.e.1. A schedule showing the name and address of the proprietor and the amount and date of his or her original investment;

104.1.e.2. A schedule of the dates and amounts of subsequent additions to the original investment and any withdrawals; and

104.1.e.3. A schedule of direct or indirect salaries, wages, and other remuneration, including prerequisites, paid to the proprietor during the calendar or fiscal year.

W. Va. Code R. § 179-8-105 Accounting Records

105.1. The casino licensee shall maintain complete, accurate, legible, and permanent records of all transactions pertaining to its revenues and expenses, assets, liabilities, and equity in conformance with generally accepted accounting principles. The Commission may direct the casino licensee to alter the manner in which the records are maintained if the licensee's records are not in accordance with generally accepted accounting principles or if the records are not in sufficient detail.

105.2. The accounting records shall be maintained using a double entry system of accounting with transactions recorded on the accrual basis and supported by detailed subsidiary records.

105.3. The detailed subsidiary records shall include, at a minimum, all of the following:

105.3.a. Detailed general ledger accounts identifying all revenue, expenses, assets, liabilities, and equity for the casino licensee;

105.3.b. A record of all investments, advances, loans, and accounts receivable balances due the casino;

105.3.c. A record of all loans and other accounts payable by the casino licensee;

105.3.d. A record of all accounts receivable written off as uncollectible by the casino licensee;

105.3.e. Journal entries prepared by the casino licensee;

105.3.f. Tax work papers used in preparation of any state or federal tax return;

105.3.g. Records that identify table drop, table win, and percentage of table win to table drop for each live game and records accumulated for each type of live game by day or by another accounting period approved by the Director;

105.3.h. Records supporting the accumulation of the costs for complimentary services and items. A complimentary service or item provided to patrons in the normal course of a casino business shall be recorded at an amount based upon the full retail price normally charged for the service or item;

105.3.i. Records that identify the purchase, receipt, and destruction of gaming chips from all sources;

105.3.j. Records required to fully comply with all the federal financial record-keeping requirements enumerated in 31 Code of Federal Regulations, part 103;

105.3.k. Records required by the casino licensee's internal control system;

105.3.l. Work papers supporting the daily reconciliation of cash accountability; and

105.3.m. Other records that the Commission requires to be maintained.

105.4. If the casino licensee fails to maintain the records used by it to calculate the adjusted gross receipts from the operation of racetrack table games, the Commission may compute and determine the amount upon the basis of an audit conducted by the Commission using available information.

W. Va. Code R. § 179-8-106 Standard financial and statistical records

106.1. The casino licensee, unless specifically exempted by the Commission, shall file monthly, quarterly, and annual reports of financial and statistical data in a format prescribed by the Commission. Reports prepared on Microsoft Word® and Microsoft Excel® may be emailed to casinoreports@wvlottery.com to comply with the reporting requirements of this rule. As technology changes and improves, the Commission may by interpretive rule specify another means of reporting.

106.2. The Commission shall periodically prescribe a set of standard reporting forms and instructions to be used in filing monthly, quarterly, and annual reports.

106.3. The Commission shall review and modify or approve each casino’s uniform chart of accounts, including account classifications, in order to ensure consistency, comparability, and appropriate disclosure of financial information.

106.4. Annual reports shall be based on the licensee’s fiscal year. Quarterly reports shall be based on the licensee’s fiscal quarters.

106.5. Monthly reports shall be based on calendar months unless another accounting period is approved by the Commission. Quarterly and monthly reports shall contain a cumulative year-to-date column in this rule to facilitate analysis.

106.6. The reports required to be filed in this rule shall be sworn to and signed by the following entities:

106.6.a. If the reports are from a corporation, then the chief executive officer and one of the following individuals:

106.6.a.1. The chief financial officer;

106.6.a.2. The treasurer;

106.6.a.3. The comptroller;

106.6.b. If the reports are from a limited liability company, then by a manager;

106.6.c. If the reports are from a partnership, then by a general partner and financial director;

106.6.d. If the reports are from a sole proprietorship, then by the proprietor; or

106.6.e. If the reports are from any other form of business association, then by the chief executive officer.

106.7. The required filing dates for reports are as follows:

106.7.a. A monthly report is due on the thirteenth calendar day of the following month;

106.7.b. A quarterly report is due on the fifteenth calendar day of the second month following the end of the quarter; and

106.7.c. An annual report is due on the fifteenth calendar day of the third month following the end of the year.

106.8. If there is a termination or suspension of the casino license, a voluntary or involuntary change in the company, or a material change in ownership, then the casino licensee shall file an interim quarterly report as of the date the event occurs, unless the event has already been disclosed in a regular quarterly report or unless exempted by the Commission. The filing date is thirty calendar days after the date the event occurs.

106.9. An adjustment that results from the quarterly and annual audits shall be recorded in the accounting records. If an adjustment was not reflected in the casino licensee's quarterly or annual reports and if the West Virginia Lottery concludes that the adjustment is significant, then it may require a revised report from the casino licensee. The revised filing is due within thirty calendar days after written notification to the casino licensee.

W. Va. Code R. § 179-8-107 Special Audits and Licensee Annual Compliance Reports

107.1. To assure the integrity of gaming and compliance with the Act and this rule, the Commission may require a special audit of the casino licensee to be conducted by West Virginia Lottery personnel, by an independent certified public accountant who is, or whose firm is, licensed in West Virginia, or by a nationally recognized accounting firm. The Commission shall establish the scope, procedures and reporting requirements of a special audit.

107.2. The licensee shall prepare and submit annual compliance reports in a manner and form prescribed by the Commission. The annual compliance report shall address all of the following areas:

107.2.a. Compliance with procedures to ascertain that adjusted gross receipts are determined and state taxes paid, in conformity with the Act and this rule;

107.2.b. Compliance with Commission-approved internal control procedures, accounting procedures, credit procedures, dispute procedures, and Commission-imposed security and safety requirements;

107.2.c. A material deviation from the casino licensee's approved internal control procedures, accounting procedures, credit and dispute procedures, and Commission-imposed security and safety requirements;

107.2.d. Corrective action taken by the licensee to resolve deficiencies observed in subdivisions (a) to (c) of this subsection; and

107.2.e. Other matters required by the Commission to measure the licensee's compliance with the Act and this rule.

107.3. A casino licensee that is a public reporting company under the Securities and Exchange Act of 1934 shall submit a copy of all reports required by the Securities and Exchange Commission to the Director in a format prescribed by the Commission. The reports shall be due on the same filing dates as required by the Securities and Exchange Commission.

107.4. The casino licensee shall bear the expense of preparing an audit which is required by this rule and which is performed by an independent certified public accountant. Qualified personnel of the casino licensee shall prepare compliance reports and the casino licensee shall bear the expense of preparing the compliance reports.

107.5. The reporting year-end of the holder of the casino license shall be the licensee’s fiscal year.

W. Va. Code R. § 179-8-108 Accounting Controls Within the Cashier's Cage

108.1. The assets for which a cashier is responsible shall be maintained on an impress basis. At the end of each shift, the cashiers assigned to the outgoing shift shall record, on a cashier's count sheet, the face value of each cashier's cage inventory item counted and the total of the opening and closing cashier's cage inventories and shall reconcile the total closing inventory to the total opening inventory. The cashiers shall sign the completed cashier's count sheet attesting to the accuracy of the information contained on the cashier's count sheet.

108.2. At the conclusion of each day, at a minimum, a copy of the cashier's count sheet and related documentation shall be forwarded to the accounting department.

108.3. All accounting controls within the cashier's cage shall conform to the approved internal control system.

W. Va. Code R. § 179-8-109 Exchange of Checks Submitted by Gaming Patrons; Credit

Except where provided in sections one hundred thirteen through one hundred twenty-five of this rule, the casino licensee shall not make a loan, or otherwise provide credit to an individual to enable an individual to take part in gaming. The failure to deposit a negotiable instrument for collection by the next banking day after presentment by the patron is considered an extension of credit.

W. Va. Code R. § 179-8-110 Handling Cash at Gaming Tables

110.1. A cash wager shall not be allowed to be placed at any gaming table.

110.2. The cash shall be converted to chips before a wager is accepted.

110.3. A licensed gaming employee who receives any currency or cash equivalents from a patron at a gaming table shall promptly place the currency or cash equivalent in the table’s drop box.

W. Va. Code R. § 179-8-111 Tips or Gratuities

111.1. A table gaming employee shall not accept currency as a tip or gratuity from any patron. This subsection does not apply to waiters, waitresses, bartenders, or other food or beverage servers in the table gaming area of the casino.

111.2. A casino employee who holds a level one occupational license shall not solicit or accept a tip or gratuity directly from a player or patron of the casino. An key person shall not solicit a tip or gratuity.

111.3. All of the following provisions apply to tips and gratuities given to a dealer:

111.3.a. A dealer shall immediately deposit tips and gratuities in a locked box reserved for that purpose.

111.3.b. If non-value chips are received at a roulette table, the dealer shall not remove the marker button indicating the specific value of the chips from the slot or receptacle attached to the outer rim of the roulette wheel until after a dealer, in the presence of a supervisor, has converted the non-value chips into value chips. The value chips shall be immediately deposited in a transparent locked box reserved for deposit and storage of tips and gratuities to the dealer;

111.3.c. Tips and gratuities shall be accounted for by a recorded count conducted by not less than two casino employees designated by the casino licensee; and

111.3.d. Tips may be pooled among employees including level one licensees at the licensee’s discretion.

W. Va. Code R. § 179-8-112 Weekly Tax Return; Deposits of Privilege Tax

112.1. The casino licensee shall, by each Wednesday, submit electronically to the Commission a privilege tax return for the adjusted gross receipts from table gaming covering the previous calendar (Sunday through Saturday) week. The casino licensee shall complete the Commission’s prescribed electronic format and shall email the return to casinotaxreturn@wvlottery.com. As technology changes and improves, the Commission may by interpretive rule specify another means of reporting.

112.2. The casino licensee shall, by each Wednesday, by electronic funds transfer, pay the privilege tax amount contained in the corresponding tax return emailed to the Commission as required by subsection one of this section.

112.3. The casino licensee shall maintain a separate depository account for receipt and disbursement of table games adjusted gross receipts. The casino licensee shall provide to the Commission weekly and other periodic reconciliations of funds deposited into this account and disbursements made from this account including the weekly transfer from the casino licensee to the commission.

PART 9. CREDIT

W. Va. Code R. § 179-8-113 Credit Extension Procedures; Establishment of Procedures

113.1. The casino licensee may extend credit to a patron only in the manner provided in its credit procedures approved by the Commission. The casino licensee is responsible for establishing policies and procedures to extend credit to patrons. The policies and procedures shall provide that each credit transaction is promptly and accurately recorded.

113.2. The procedures proposed by a casino licensee shall ensure that:

113.2.a. Each credit transaction is promptly and accurately recorded in appropriate credit records; and

113.2.b. Credit may be extended only in a commercially reasonable manner considering the assets, liabilities, prior payment history, and income of the patron.

113.3. The casino licensee shall not extend credit beyond the approved credit line limit approved by the Commission.

113.4. The casino licensee shall provide to the Director a monthly report detailing credit issued, an aging of outstanding credit amounts, and collection activities taken with respect to aging accounts and accounts written off as uncollectible.

113.5. A credit instrument is identical to a personal check and may be deposited in, or presented for payment to, a bank or other financial institution where the patron maintains an account.

113.6. Credit instruments issued at a gambling table shall affect adjusted gross receipts in the following ways:

113.6.a. Each credit instrument issued at a gaming table is evidenced with an issuance document inserted into the drop box and becomes an increase to the table drop;

113.6.b. Each redeemed credit instrument at a gaming table will be evidenced by a redemption document inserted into the drop box and becomes a decrease to the table drop; and

113.6.c. Chips that are issued by the cage for cash or the issuance of credit instruments do not increase table drop.

113.7. Procedures approved by the Commission for the extension of credit by the casino licensee to a patron shall control and regulate the issuance of credit directly by the casino to a gaming patron. The casino licensee shall submit to the Commission its proposed procedures for extending credit which shall at a minimum:

113.7.a. Ensure that markers issued by the casino licensee are issued only in accordance with the specific or general authorization of this rule;

113.7.b. Ensure that the functions, duties, and responsibilities of the casino licensee's employees involved in the extension of credit are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel;

113.7.c. Ensure that a casino employee is not in a position to perpetuate and conceal errors or irregularities in the normal course of his or her duties; and

113.7.d. Ensure that procedures are conducted with integrity and in accordance with the Act and this rule.

W. Va. Code R. § 179-8-114 Submission of Written Extension of Credit Procedures to the Commission

114.1. The casino licensee shall submit policies and procedures for extending credit to the Commission at least thirty days before extending credit to any patron.

114.2. The Commission may approve, approve with modification or disapprove any portion of the policies or procedures concerning the extension of credit. If the Commission disapproves a policy or procedures concerning the extension of credit, then the Director shall notify the casino licensee, in writing, of the disapproval.

114.3. Access to the credit information, outstanding credit instruments, and credit instruments that have been written off is restricted to occupational licensees who require access and who are authorized by management to have access.

W. Va. Code R. § 179-8-115 Amendments to Procedures for Extending Credit

115.1. Unless otherwise authorized by the Commission, an amendment to a portion of the procedures for extending credit shall be submitted to the Commission not less than forty-five days before using the procedures for extending credit.

115.2. The Commission may approve, approve with modification or disapprove any portion of an amendment to the policies or procedures concerning the extension of credit. If the Commission disapproves an amendment, then the Commission shall notify the casino licensee, in writing, of the disapproval.

W. Va. Code R. § 179-8-116 Procedures for Extending Credit

116.1. The licensee shall propose credit procedures which shall, at a minimum, include the following:

116.1.a. Identification of the information required from a patron applying for credit;

116.1.b. A description of procedures for verification of the information obtained from a patron;

116.1.c. Procedures for establishing the credit limit for a patron, including specific minimum credit-worthiness standards a patron requesting credit must meet, such as a minimum credit rating number, and the casino maximum credit limit for a patron;

116.1.d. Procedures for the computerized or manual issuance of markers:

116.1.e. A designation of the licensed occupational positions that are authorized to issue markers;

116.1.f. A description of where on the premises markers can be issued.

116.1.g. A description of the marker and the information and signatures required to authorize the marker;

116.1.h. A description of the procedures for processing payments against credits received by the casino licensee;

116.1.i. Procedures to be followed in connection with accepting front money deposits;

116.1.j. Procedures to be followed in connection with cashing checks or drafts by the casino licensee, including identifying the types of checks that may be cashed;

116.1.k. Procedures to be followed in the handling of returned checks; and

116.1.l. Procedures for the collection of past due markers and returned checks, and procedures for the write-off of past due markers and returned checks.

W. Va. Code R. § 179-8-117 Credit Reporting to the Commission

117.1. The casino licensee shall provide to the Commission a monthly report detailing, at a minimum, all of the following:

117.1.a. Outstanding credit;

117.1.b. Checks returned and held;

117.1.c. Collection activities taken; and

117.1.d. Settlement of disputed items.

W. Va. Code R. § 179-8-118 Verification of Credit

118.1. The casino licensee may verify a patron's outstanding indebtedness, as required by this rule, by contacting a consumer credit bureau that is reasonably likely to possess information concerning the patron or a casino credit bureau, or both, to determine whether the patron has any liabilities or if there is any derogatory information concerning the patron's credit history.

118.2. A credit bureau contact shall be considered a verification of the outstanding indebtedness provided by the patron. If a credit bureau contact is not immediately possible, then the casino licensee may use an alternative source that has made the required contact. The casino licensee shall record the source of verification and the method by which the verification was performed in the patron's credit file.

118.3. If neither credit bureau has information relating to a patron's outstanding indebtedness, then the casino licensee shall record this information in the patron's credit file.

W. Va. Code R. § 179-8-119 Issuance of Markers. 119.1 The casino licensee shall establish procedures for the computerized or manual issuance of markers, including, at a minimum, all of the following:

119.1.a. A designation of the licensed occupational positions that are authorized to issue markers and a description of their duties;

119.1.b. A description of where markers can be issued;

119.1.c. A description of the marker and the information and signatures required to authorize the marker. All of the following provisions specify requirements for a marker:

119.1.c.1. The casino licensee shall submit the form of its markers to the Commission prior to its use;

119.1.c.2. The form must be a three-part, sequentially-numbered form;

119.1.c.3. The marker shall include, but not be limited to, all of the following information:

119.1.c.3.A. The patron's name and casino account number;

119.1.c.3.B. The dollar amount of the marker;

119.1.c.3.C. The casino marker number;

119.1.c.3.D. The current time and date;

119.1.c.3.E. The required signatures; and

119.1.c.3.F. A description of the term of repayment, including the rate of interest, if any;

119.1.d. A description of the distribution of each part of the marker;

119.1.e. Verification of the patron's identity through identification credentials before the issuance of the marker;

119.1.f. Verification of available credit;

119.1.g. A description of the recording of the credit transaction;

119.1.h. A description of accountability and control over the markers; and

119.1.i. Other information considered necessary by the Commission to ensure compliance with this rule.

119.2. The casino licensee shall maintain a computer record and computerized log identifying the information in subdivisions 120.1.a through 120.1.i of this rule for not less than the current year and the two preceding years.

W. Va. Code R. § 179-8-120 Receipt of Payments

120.1. The casino licensee shall establish policies and procedures approved by the West Virginia Lottery in accordance with this rule to ensure that all payments received on outstanding credit instruments are recorded in a timely fashion. The procedures shall, at a minimum, include all of the following:

120.1.a. A description of the procedure for processing payments received by the casino licensee in any manner;

120.1.b. Requirements for the consolidation of markers;

120.1.c. A detailed description of the distribution of all parts of redeemed and consolidated markers and redemption vouchers; and

120.1.d. A detailed allocation of principal and interest on each payment made, if any.

W. Va. Code R. § 179-8-121 Front Money Deposits

121.1. The casino licensee shall establish procedures approved by the Commission in accordance with this rule in connection with front money deposits. The casino licensee shall establish policies and procedures approved by the Commission in accordance with this rule to ensure that all applicable currency transaction reporting requirements will be enforced in accordance with applicable state and federal law.

121.2. Any of the following may be accepted from patrons for the purpose of customer deposits:

121.2.a. Cash or a cash equivalent;

121.2.b. Value chips issued by the casino licensee; and

121.2.c. Tokens issued by the casino licensee.

121.3. Deposits or withdrawals shall be documented on a voucher that is not less than a 2-part, sequentially-numbered form. The voucher shall be completed by the casino cage cashier and shall include, at minimum, all of the following information:

121.3.a. The patron's name and signature;

121.3.b. The date of receipt or disbursement;

121.3.c. The amount of deposit;

121.3.d. The type of deposit; and

121.3.e. The casino cashier's signature.

121.4. The casino licensee shall provide, to the Commission, a monthly report detailing, at a minimum, all of the following:

121.4.a. Outstanding credit;

121.4.b. Checks returned and held;

121.4.c. Collection activities taken; and

121.4.d. Settlement of disputed items.

121.5. All of the following checks shall be deposited not later than the business day after the day the checks are received or dated:

121.5.a. Cashier's checks;

121.5.b. Money orders;

121.5.c. Credit card advance checks;

121.5.d. Traveler's checks; and

121.5.e. Wire transfer service checks.

121.6. Personal checks shall be deposited not later than the business day after the day the checks are received or dated, unless otherwise agreed to by the casino licensee and the patron.

W. Va. Code R. § 179-8-122 Check Cashing

122.1. The casino licensee shall establish policies and procedures approved by the Commission in accordance with this rule in connection with cashing checks or drafts by the casino licensee. Only the following types of checks may be cashed by the casino licensee:

122.1.a. Personal checks;

122.1.b. Drafts;

122.1.c. Cashier's checks;

122.1.d. Money orders;

122.1.e. Credit card and debit card advance checks;

122.1.f. Traveler's checks; and

122.1.g. Wire transfers and other kinds of checks approved by the Commission.

122.2. The casino licensee shall establish check-cashing privileges and limits that shall, at a minimum, incorporate the procedures established in this rule.

122.3. When checks are cashed for a patron, the casino licensee shall:

122.3.a. Examine the patron's picture identification and compare the signature on the identification credential to the signature on the check to ensure agreement. If the signatures do not match, the casino licensee shall not extend credit to the patron;

122.3.b. Immediately stamp the check "for deposit only;"

122.3.c. Date and time stamp the check;

122.3.d. Initial the check; and

122.3.e. Count out, in full public view and in the view of the surveillance camera, the funds requested by the patron.

122.4. If a patron’s personal check is cashed, then the cashier shall perform the procedures outlined in subsection 118.3 of this rule and shall:

122.4.a. Record the picture identification number if the check is under $500.00 and check-cashing privileges have not been established by the patron;

122.4.b. Determine if the patron's available credit is sufficient to cover the amount of the personal check, if applicable;

122.4.c. Refuse to cash a patron’s personal check if the patron has a balance outstanding to the casino licensee for more than thirty days due to checks previously cashed by the casino licensee; and

122.4.d. Hold a personal check against established credit lines for the earlier of seven days or the date that the check cleared the financial institution upon which it was drawn.

W. Va. Code R. § 179-8-123 Handling of Returned Checks

123.1. The casino licensee shall establish policies and procedures approved by the Commission in the same manner as the procedures for extension of credit for the handling of returned checks.

123.2. A returned check shall be received and documented on a returned check log by a department independent of both the casino cage and the credit department. If the licensee uses a check-cashing service, then the licensee shall establish a procedure for the retention of copies of returned checks.

123.3. The casino licensee shall establish procedures for collecting and recording checks returned to the casino licensee after deposit, including redeposit procedures.

123.4. The casino licensee’s collections department shall maintain a continuous record of all returned checks. The records shall contain all of the following information:

123.4.a. The original date of the check;

123.4.b. The name and address of the drawer of the check;

123.4.c. The amount of the check;

123.4.d. The date the check was dishonored; and

123.4.e. The date or dates and amount or amounts of any collections received on the check after being returned by a bank.

123.5. A returned check is considered the issuance of credit and shall be handled in accordance with the collection of credit.

123.6. The casino licensee shall describe its procedures for notifying the casino cage, credit departments, or the equivalent of credit departments of returned checks and of the prohibition from granting further credit to patrons whose checks have been returned and remain unsatisfied.

W. Va. Code R. § 179-8-124 Collection of Past Due Accounts

The casino licensee shall establish policies and procedures for the collection of past due markers and returned checks. The procedures shall be approved by the Commission in the same manner as the extension of credit.

W. Va. Code R. § 179-8-125 Write-off of Past Due Accounts

125.1. The casino licensee shall establish policies and procedures for the write-off of past due markers and returned checks. The procedures shall be approved by the Commission. The procedures shall, at a minimum, shall:

125.1.a. Establish a write-off committee; and

125.1.b. Authorize write-off by the write-off committee.

PART 10. EXCLUSION OF PERSONS

W. Va. Code R. § 179-8-126 Exclusion List; Duty to Exclude

126.1. Entry into the casino shall be denied to any person who is excluded under this rule. If the Director places a person on the Commission’s exclusion list, the person is prohibited from entering the casino until a determination is made by the Commission or a court to the contrary.

126.2. The casino licensee shall exclude or eject any excluded person from its premises if the casino licensee or the licensee's agents know or reasonably should know that the person is on the Commission’s exclusion list.

126.3. The casino licensee shall inform the Commission, in writing, of the names of persons that it knows or should know who meet the criteria for placement on an exclusion list and the reason the person meets the exclusion criteria.

126.4. This rule does not preclude the casino licensee from ejecting or barring a person from its casino for reasons considered necessary by the licensee. The casino licensee may seek to have a person it has ejected or barred from its premises placed on the Commission exclusion list.

W. Va. Code R. § 179-8-127 Distribution and Availability of Exclusion Lists

127.1. The Commission shall maintain a list of persons to be ejected or excluded from the casino. The exclusion list is a public record. The list may be distributed to law enforcement agencies. All of the following information, to the extent known, shall be provided for each excluded person:

127.1.a. The person’s full name and date of birth and all aliases;

127.1.b. A physical description of the person;

127.1.c. The effective date the person's name was placed on the exclusion list;

127.1.d. A photograph of the person, if available;

127.1.e. The person's occupation and current home and business addresses; and

127.1.f. Any other information considered necessary by the Director to facilitate identification of the person placed on the exclusion list.

W. Va. Code R. § 179-8-128 Criteria for Exclusion and Placement on Exclusion List

128.1. The Director may place a person on the exclusion list pending a hearing if any of the following provisions apply to the person:

128.1.a. The person has been convicted of a felony in any jurisdiction or has been convicted of a misdemeanor in any jurisdiction involving gaming theft, dishonesty, or fraud;

128.1.b. The person has violated the Act or this rule;

128.1.c. The person has performed any act, or has a reputation, that would adversely affect public confidence and trust in the integrity of gaming;

128.1.d. The person is included on any valid and current exclusion list from another jurisdiction in the United States; and

128.1.e. The person has realized that he or she has a compulsive gaming disorder and has requested in writing to be excluded from the casino and/or all of the state’s four pari-mutuel racetracks.

W. Va. Code R. § 179-8-129 Procedure for Entry of Names on Exclusion List

129.1. Upon a determination that a person comes under any of the criteria for exclusion, the person may be subject to exclusion and the Director shall file a notice of exclusion. The notice shall include all of the following information:

129.1.a. The identity of the person;

129.1.b. The nature and scope of the circumstances or reasons that the person should be placed on the exclusion list;

129.1.c. The names of potential witnesses; and

129.1.d. A recommendation as to whether the exclusion or ejection should be permanent. The notice shall also inform the person of the availability of a hearing before the Commission.

129.2. A person excluded from the casino shall make a request for a hearing within thirty days from the date the notice of exclusion was served.

129.3. If a person is excluded or ejected from the casino, then the person is prohibited from further entering the casino until a determination is made by the Commission on the merits of a filed notice of exclusion or a requested hearing. If a determination by the Commission is appealed, then the exclusion shall continue until the judicial review is completed unless otherwise ordered by the court.

129.4. The name of a person on the exclusion list shall be removed from the list if the Commission or a subsequent judicial review finds in favor of an excluded person. The excluded person's exclusion shall be terminated as of the date of the decision of the Commission or the court. The excluded person's name shall remain on the exclusion list if the finding is against the excluded person. The excluded person's name shall remain on the exclusion list if a hearing is not requested.

129.5. The Director shall set the term of the temporary exclusion when the notice of exclusion provides for a temporary exclusion. The Director may consider the recommendation of the West Virginia Lottery staff when making this time determination. A temporary exclusion shall not be less than one hundred eighty days. A temporary exclusion shall apply only to a person excluded or ejected for disruptive conduct. All other exclusions shall be permanent.

W. Va. Code R. § 179-8-130 Petition for Removal From Exclusion List

130.1. A person who has been placed on any exclusion list may petition the Commission, in writing, and request that his or her name be removed from the exclusion list.

130.2. The provisions of West Virginia Code §29A-5-1 et seq. and the West Virginia Lottery’s Administrative Appeals Procedures rule 179CSR2 apply to protests of exclusion under this section.

PART 11. DISPUTE AND APPEAL PROCEDURES

W. Va. Code R. § 179-8-131 Patron Dispute Process

131.1. A patron shall submit the complaint within five calendar days of the incident that led to the patron dispute. The West Virginia Lottery representative shall provide a copy of the complaint to the casino licensee at the same time that the representative submits the complaint copy to West Virginia Lottery headquarters.

131.2. The casino licensee shall attempt to resolve all patron disputes and has a period of ten business days to investigate a patron complaint and resolve the dispute.

131.3. If the casino licensee and the patron cannot resolve the dispute, then the licensee shall advise the patron of the patron's right to file a complaint form with the Commission. The complaint may be received by a West Virginia Lottery employee in the casino, who will forward a copy of the complaint to West Virginia Lottery headquarters. The casino licensee shall provide a patron with a complaint form upon request.

131.4. A complaint shall contain, at a minimum, all of the following information:

131.4.a. The name, address, and telephone number of the patron;

131.4.b. A summary of the nature of the patron complaint, including the date and time on which the incident leading to the dispute occurred;

131.4.c. The physical location and/or identity of the gaming table or gaming device where the complaint arose, if applicable;

131.4.d. A list of the names, if known, of any occupational licensees who were involved in, or a witness to, the incident that led to the patron dispute;

131.4.e. The name, address, and telephone number, if known, of any other witnesses to the incident that led to the patron dispute;

131.4.f. A summary of the casino licensee's attempt to resolve the patron dispute; and

131.4.g. Any other information considered necessary by the Director or the Commission.

131.5. If possible, the West Virginia Lottery representative shall interview the complaining patron in the West Virginia Lottery office in the casino at the time the patron submits his or her complaint. During that interview, the representative may retrieve and view any available recorded security images for a more detailed understanding of the alleged incident.

131.6. The casino licensee shall submit an answer to the complaint to the Commission in writing within fourteen business days of receiving a copy of the patron's complaint. The casino licensee shall provide a copy of the answer to the complaining patron at the same time that the casino licensee submits the answer to the West Virginia Lottery.

131.7. Until the Commission has released the recorded images that are connected to the complaint, the casino licensee shall not destroy, erase or record over the images.

W. Va. Code R. § 179-8-132 Investigation; Possible Disciplinary Action

The Commission shall determine if a patron dispute requires investigation. If the Commission determines that an investigation is necessary, then the West Virginia Lottery security division shall conduct the investigation. If it is determined that the casino licensee or an occupational licensee violated the Act or this rule, then the Commission may initiate disciplinary action.

W. Va. Code R. § 179-8-133 Appeals by License Applicants, License Holders and Patrons

133.1. A person who appeals an adverse decision or action by the Commission or the Director pursuant to section seventeen of the Act shall give security for the cost of the hearing in the amount of three hundred dollars in the form of a certified check, cashier’s check or money order, which shall accompany the petition demanding a hearing.

133.2. The Commission may from time to time increase or decrease the amount of security by interpretive rule or Commission order, giving consideration to the actual average cost of holding an administrative hearing.

133.3. The fee may be waived by the Commission or Director for good cause shown.

PART 12. TRANSITIONAL PROVISIONS

W. Va. Code R. § 179-8-134 Gaming Tables Purchased on Behalf of the Commission for Training of Commission and Racetrack Personnel

134.1. The Council for Community and Technical College Education, and specifically Blue Ridge Community and Technical College, West Virginia Northern Community College and West Virginia State Community and Technical College, are not eligible for table gaming licenses issued by the State Lottery Commission; nevertheless, the Council and its colleges may operate as agents of the State Lottery Commission under a mutual agreement that allows keeping and exhibiting gaming tables for training purposes only.

134.2. A pari-mutuel racetrack in West Virginia that is licensed to operate racetrack video lottery games and that plans to offer table gaming subject to a successful local option election and subsequent licensing, may purchase gaming tables and related supplies and equipment at its expense for the Blue Ridge Community and Technical College, West Virginia Northern Community College and/or West Virginia State Community and Technical College for training. The racetrack shall have the items shipped directly to facilities owned or rented by the community and technical college.

134.3. All gaming tables and related supplies and equipment shall become the property of the community and technical colleges and may not thereafter be given or reverted to the donating racetrack.

134.4. Any gaming table and gaming supplies no longer needed by a community college shall be transferred to the control of the Commission.

134.5. Any casino licensee shall provide one gaming table for the training use of the Commission at Commission headquarters.

179CSR8

179CSR8

Series 09 West Virginia Lottery Sports Wagering Rule

W. Va. Code R. § 179-9-1 General

1.1. Scope and Purpose. -- The purpose of this legislative rule is to clarify and provide regulations that the Commission considers necessary for the successful implementation, administration, and enforcement of the West Virginia Lottery Sports Wagering Act codified in W.Va. Code §29-22D-1 et seq.

1.2. Authority. -- W. Va. Code §29-22D-4(c), W. Va. Code §29-22A-1 et seq., and W. Va. Code §29A-3-1 et seq.

1.3. Filing Date. – April 30, 2025.

1.4. Effective Date. – April 30, 2025.

1.5. Sunset Provision. -- This rule shall terminate and have no further force or effect upon August 1, 2030.

W. Va. Code R. § 179-9-2 Terms

The following words and terms, when used in this rule, shall have the following meanings unless the context clearly indicates otherwise:

2.1. “ACH” means Automated Clearing House, which is a network that connects all banking and financial institutions within the United States.

2.2. “Act” means the West Virginia Lottery Sports Wagering Act, W. Va. Code §29-22D-1 et seq.

2.3. “AML” means anti-money laundering.

2.4. “Authentication process” means a method used by a system to verify the validity of software.

2.5. “Cancelled wager” means a wager that has been cancelled by the system due to any issue with an event that prevents the wager’s completion.

2.6. “Commission” means the State Lottery Commission, created by W.Va. Code §29-22-1 et seq.

2.7. “Confidential Player Account Information” means player account balances and any personally identifiable information (PII) contained within the sports pool system.

2.8. “Daily Fantasy Sports” means a fantasy or simulation sports game, educational game, contest, or competition in which:

Participants own, manage, or coach imaginary teams in competitions against other participants, and not against the individual or entity responsible for creating, administering or operating such contest, for a prize and/or award;

The value of all prizes and awards offered to winning participants is established and made known to the participants in advance of the fantasy game, contest, or competition.

All winning outcomes reflect the relative knowledge and skill of participants and are determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of the sporting events; and A winning outcome is not based on the score, point spread, or performance of a single team, or combination of such teams, or any single performance of an individual athlete or player in a single event.

2.9. “Director” means the individual appointed by the Governor to provide management and administration necessary to direct the State Lottery Office pursuant to W. Va. Code §29-22-6.

2.10. “Event number” means a set of alpha and/or numeric characters that correspond to a sports event or an event ancillary to a sports event.

2.11. “Integrity monitoring system” means a system of policies and procedures approved by the Commission through which an online sports pool operator receives and sends reports from sports pool operators to assist in identifying unusual or suspicious activity.

2.12. “Internal controls” mean the internal procedures, administration, and accounting controls designed by the sports pool operator to conduct sports wagering operations, as required by the Commission pursuant to W. Va. Code §29-22D-4.

2.13. “Layoff wager” means a wager placed by a West Virginia operator with another West Virginia operator for the purpose of offsetting patron wagers made pursuant to the Act and this rule.

2.14. “MICS” means the Minimum Internal Control Standards established by the Commission pursuant to W. Va. Code §29-22D-4, available at https://wvlottery.com/about-us/rules-and-regulations/.

2.15. “Mobile applications and other digital platforms” means any mobile application or interactive platform approved by the Commission for operation of an online sports pool.

2.16. "Multi-source authentication" means a type of strong authentication that uses two of the following to verify a patron's identity:

2.16.1. Information known only to the patron, such as a password, pattern, or answers to challenge questions;

2.16.2. An item possessed by a patron such as an electronic token, physical token, or an identification card; or

2.16.3. A patron's biometric data, such as fingerprints, facial, or voice recognition.

2.17. “Online sports pool” means an operation in which wagers on sports events are made through computers or mobile applications on mobile devices or other approved interactive devices accepted through a gaming system approved by the Commission.

2.18. “Online sports pool system” means all hardware, software, and communications that comprise a type of server-based gaming system for the purpose of offering an online sports pool.

2.19. “Operator” or “sports pool operator” means a casino licensee which has elected to operate a sports pool, either independently or jointly.

2.20. “Patron session” means a period of time when a patron is logged on to an online sports pool system.

2.21. “Personally identifiable information” or “PII” means any data that could potentially be used to identify a particular person. Examples include, but are not limited to, a full name, Social Security Number, driver’s license number, birth date, age, bank account number, credit card number, debit card number, and email address. Generally two or more of these can identify a specific person depending on the uniqueness of the identifiers within a specific geographic area.

2.22. “Prohibited sports pool participant” means any individual who is prohibited from wagering pursuant to: (1) any self-exclusion list or a casino or Commission exclusion list; (2) any individual whose participation may undermine the integrity of the wagering or the sports event or who is excluded from wagering for other good cause, including but not limited to, an attempt to place a wager as an agent or a proxy; (3) any employee of the Commission; or (4) a licensed sports pool operator or any of its employees placing a wager with that sports pool operator in violation of W.Va. Code §29-22D-1 et seq.

2.23. “Promotional credit” means any amount credited to a patron by a sports pool operator, without charge, to be included in a patron's wager.

2.24. “Registrant” means certain affiliate companies, including but not limited to, sports wagering marketing affiliate companies, whose services are limited to click on ads or links for the sole purpose of directing a patron to a sports wagering site to sign up for a new sports wagering account.

2.25. “Secure transaction file” means a file that contains data, which cannot be modified without detection.

2.26. “Sports pool” or “sports pool operation” means the business of accepting wagers on any sports event by any system or method of wagering by a sports pool operator or its sports pool intermediary on site at the casino, in areas approved by the Commission.

2.27. “Sports pool intermediary” means an independent entity affiliated with a licensed sports pool operator and holding a management services provider license or supplier license, as provided in W. Va. Code §29-22D-1 et seq., to offer sports wagering activities, supplies, or services in a sports wagering lounge or through an online sports pool. The customer accounts or sports wagering accounts, of such intermediaries shall be owned by the licensed casino operators.

2.28. “Sports pool kiosk” or “kiosk” means an automated device that may be used for sports pool voucher and ticket processing and automated functions as approved by the Commission.

2.29. “Sports pool system” means all equipment and software used in conjunction with the operation of a sports pool or online sports pool.

2.30. “Sports wagering account” means an account established by a sports pool operator for an individual patron to use for online sports pool wagering.

2.31. “Sports wagering lounge” means an area in a licensed casino where a sports pool is operated.

2.32. “Sports wagering satellite lounge” means one or more secondary areas approved by the Commission where a sports pool is operated within a casino.

2.33. “Strong authentication” means a method of confirming a patron’s identity that has been demonstrated to the satisfaction of the Commission to effectively provide higher security than a user name and password alone.

2.34. “Suspicious wagering activity” means unusual wagering activity which cannot be explained and is indicative of match-fixing, the manipulation of an event, misuse of inside information, or other prohibited activity.

2.35. “Temporary sports pool facility” means an area approved by the Commission for use in sports pool operations during the construction of a sports wagering lounge and may include the utilization of designated windows at the current casino cage for purposes of placing sports wagers and also includes self-service wagering machines located at the casino or the casino hotel complex.

2.36. “Ticket” means a printed record issued or an electronic record maintained by the sports pool system that evidences a sports wager.

2.37. “Unusual wagering activity” means abnormal wagering activity exhibited by patrons and deemed by a sports pool operator as a potential indicator of suspicious activity. Unusual wagering activity may include the size of a patron’s wager or increased wagering volume on a particular event or wager type.

2.38. “Voided wager” means a wager voided by a ticket writer with supervisor approval for a specified event.

2.39. “Voucher” means a printed wagering instrument, or digital representation thereof, used in a cashless wagering system that has a fixed dollar wagering value and is redeemable for cash or cash equivalents approved by the Commission.

2.40. “Wager” means a sum of money or thing of value risked on an uncertain occurrence as defined in W. Va. Code §29-22D-3.

2.41. “Wagering event” or “event” means an occurrence of an event on which a wager authorized by the Act may be placed.

W. Va. Code R. § 179-9-3 General requirements for sports pools and online sports pools

3.1. No person or entity shall conduct sports wagering activities, including online sports wagering activities, unless licensed to do so consistent with the West Virginia Lottery Sports Wagering Act, W. Va. Code §29-22D-1, et seq., and this rule. Sports wagering activities, including online sports wagering activities, do not include the following:

3.1.1. Pari-mutuel betting on the outcome of horse or dog races, authorized by W. Va. Code §19-23-12a and W. Va. Code §19-23-12d;

3.1.2. Lottery games of the West Virginia State Lottery authorized by W. Va. Code §29-22-1, et seq.;

3.1.3. Racetrack video lottery, authorized by W. Va. Code §29-22A-1, et seq.;

3.1.4. Limited video lottery, authorized by W. Va. Code §29-22B-1, et seq.;

3.1.5. Racetrack tables games, authorized by W. Va. Code §29-22C-1, et seq.;

3.1.6. Video lottery and table games, authorized by W. Va. Code §29-25-1, et seq.; and

3.1.7. Daily Fantasy Sports (“DFS”).

3.2. A sports pool operator shall conduct sports wagering activities, including online sports wagering activities, in compliance with the requirements for West Virginia Lottery Racetrack Table Games provided in W. Va. Code §29-22C-1 et seq., and W. Va. Code of State Rules §179-8-1 et seq., when such requirements are applicable and do not conflict with the Act or this rule.

3.3. A sports pool intermediary authorized to operate a sports pool or an online sports pool, or both, shall conduct such sports wagering activities in compliance with the requirements for West Virginia Lottery Racetrack Table Games provided in W. Va. Code §29-22C-1 et seq., and W. Va. Code of State Rules §179-8-1 et seq., when such requirements are applicable and do not conflict with the Act or this rule.

3.4. Sports wagering may commence upon approval of the Director in a temporary sports pool facility for a period not to exceed 9 months if the sports wagering lounge is under construction. The Director may extend the use of the temporary facility only upon a showing of good cause.

3.5. A sports pool operator shall maintain a cash reserve of not less than the greater of $500,000 or the amount necessary to ensure the ability to cover the outstanding sports pool and online sports pool liability.

3.6. Each sports pool operator shall, prior to commencing operations and annually thereafter, perform a system integrity and security assessment of sports pool systems and online sports pool systems conducted by an independent professional selected by the licensee and subject to approval of the Commission. The independent professional’s report on the assessment shall be submitted to the Commission and shall include:

3.6.1. Scope of review;

3.6.2. Name and company affiliation of the individual(s) who conducted the assessment;

3.6.3. Date of assessment;

3.6.4. Findings;

3.6.5. Recommended corrective action, if applicable; and

3.6.6. The operator’s response to the findings and recommended corrective action.

3.7. A sports pool operator and online sports pool operator shall investigate each patron complaint and provide a response to the patron within ten calendar days. For complaints that cannot be resolved to the satisfaction of the patron related to patron accounts, settlement of wagers, and/or illegal activity, a copy of the complaint and operator’s response, including all relevant documentation, shall be provided to the Commission.

3.8. A sports pool operator or sports pool intermediary shall only accept online and mobile wagers from patrons that have been affirmatively located as being physically present in the State of West Virginia at the time of their wager: Provided, That wagers may be accepted from patrons located outside of the State of West Virginia pursuant to a sports wagering agreement with another government as provided in W. Va. Code §29-22D-14 if acceptance of such wagers does not conflict with federal law.

3.9. To conduct sports pool wagering transactions on premises, a casino shall have a cashier’s cage that has been approved for the operation of West Virginia Lottery Racetrack Table Games or meets the same requirements for cashier’s cages provided in W. Va. Code of State Rules §179-8-1 et seq. Sports pool wagering transactions shall be conducted from a sports wagering lounge booth located in the sports wagering lounge, from other window locations as approved by the Commission, from kiosks in locations approved by the Commission, or, when a lounge booth is closed, from a designated window in the cashier’s cage for redemption of winning tickets only.

3.10. Sports pool operations within a casino shall be designed to promote optimum security of the facility, and shall include the installation and maintenance of security and surveillance equipment, including closed circuit television equipment, according to specifications approved by the Commission. The Commission shall have direct access to the system and its transmissions. Nothing in this section shall preclude the Commission from permitting a sports pool operator to conduct sports pool wagering, subject to appropriate terms and conditions, in a location other than a sports wagering lounge upon petition of a sports pool operator. A sports pool operator shall submit a surveillance plan for Commission approval prior to accepting wagers in any approved sports wagering lounge, sports wagering satellite lounge, or temporary facility.

W. Va. Code R. § 179-9-4 Sports wagering integrity; confidential information

4.1. Casino operators shall have controls in place to identify unusual and suspicious wagering activity and report such activity according to the integrity monitoring system procedures approved by the Commission.

4.2. All integrity monitoring system procedures shall provide for the sharing of information with each casino operator and shall disseminate all reports of unusual activity to all sports pool intermediary licensees as well as to any regulatory agencies, governing authorities, and accredited sports governing entities as required by the Commission. All sports wagering operators shall review such reports and notify other operators of whether or not they have experienced similar activity in the manner approved by the Commission. Specific reporting requirements shall be designated by the Commission in its MICS.

4.3. If an operator finds that previously reported unusual wagering activity rises to the level of suspicious activity, they shall immediately notify all other operators, the Commission, appropriate law enforcement entities, regulatory agencies, governing authorities, and accredited sports governing entities as required by the Commission.

4.4. A sports pool operator or sports pool intermediary receiving a report of suspicious wagering activity shall be permitted to suspend wagering on events related to the report, but may only cancel related wagers after Commission approval.

4.5. Integrity monitoring systems shall provide the Commission with remote access which shall provide at a minimum:

4.5.1. All reports of unusual wagering activity;

4.5.2. If the activity was determined to be suspicious; and

4.5.3. The actions taken according to the integrity monitoring system procedures approved by the Commission.

4.6. Notwithstanding the other provisions of this section, all information and data received pursuant to administering the West Virginia Lottery Sports Wagering Act related to unusual or suspicious activity shall be considered confidential. Such data and information may not be revealed in whole or in part except upon the lawful order of a court of competent jurisdiction, or, with any law enforcement entities, regulatory agencies, governing authorities, or accredited sports governing entities as required by the Commission.

W. Va. Code R. § 179-9-5 Internal controls; house rules

5.1. Sports pool operators shall file internal controls for all aspects of sports pool and/or online sports pool wagering systems with the Commission prior to commencing operations.

5.2. The internal controls shall address the following items regarding the sports pool system, at a minimum:

5.2.1. User access controls for all sports pool personnel;

5.2.2. Segregation of duties;

5.2.3. Automated and manual risk management procedures;

5.2.4. Procedures for identifying, reporting fraud, and suspicious conduct;

5.2.5. Procedures to prevent wagering by prohibited sports pool participants;

5.2.6. Description of AML compliance standards;

5.2.7. Description of all types of wagers available to be offered by the system; and

5.2.8. Description of all integrated third party systems.

5.3. The internal controls shall detail the reconciliation of assets and documents contained in a sports wagering lounge ticket writer’s drawer, sports pool kiosks, and online sports pools.

5.4. In the event of a failure of an online sports pool system’s ability to pay winning wagers, the licensee shall have internal controls detailing the method of paying winning wagers. The licensee shall also file an incident report for each system failure and document the date, time and reason for the failure along with the date and time the system is restored with the Commission.

5.5. Casino licensees and sports pool intermediaries shall adopt comprehensive house rules which shall be approved by the Director that include the following, at a minimum:

5.5.1. Method of calculation and payment of winning wagers;

5.5.2. Effect of schedule changes;

5.5.3. Method of notifying patrons of odds or proposition changes;

5.5.4. Acceptance of wagers at terms other than those posted;

5.5.5. Expiration of any winning ticket one year after the date of the event;

5.5.6. Method of contacting the operator for questions and complaints;

5.5.7. Description of prohibited sports pool participants; and

5.5.8. Method of funding a sports wager.

5.6. The house rules, together with any other information the Commission deems appropriate, shall be conspicuously displayed in the sports wagering lounge, posted on the operator’s website, and included in the terms and conditions of a sports wagering account. Copies shall be made readily available to patrons.

W. Va. Code R. § 179-9-6 Sports wagering system requirements

6.1. Prior to operating a sports pool or online sports pool pursuant to W. Va. Code §29-22D-1 et seq., all equipment and software used in conjunction with its operation shall be submitted to an independent testing laboratory or a testing laboratory operated in an accredited jurisdiction approved by the Commission.

6.2. All wagers on sporting events authorized by W. Va. Code §29-22D-1 et seq., shall be initiated, received, and otherwise made within this State unless otherwise permitted by the Commission in accordance with applicable federal and state laws. Consistent with the intent of the United States Congress as articulated in the Unlawful Internet Gambling Enforcement Act of 2006 (31 U.S.C. §5361 et seq.) the intermediate routing of electronic data relating to a lawful intrastate wager authorized under this provision shall not determine the location or locations in which such wager is initiated, received, or otherwise made.

6.3. A sports pool system submission to a testing laboratory shall contain a description of the risk management framework, including but not limited to:

6.3.1. User access controls for all sports pool personnel;

6.3.2. Information regarding segregation of duties;

6.3.3. Information regarding automated risk-management procedures;

6.3.4. Information regarding fraud detection;

6.3.5. Controls ensuring regulatory compliance;

6.3.6. Description of AML compliance standards;

6.3.7. Description of all software applications that comprise the system;

6.3.8. Description of all types of wagers available to be offered by the system;

6.3.9. Description of all integrated third party systems; and

6.3.10. Description of the method to prevent past posting.

6.4. A sports pool system shall maintain all transactional wagering data for a period of five years.

6.5. A sports pool system shall be capable of recording the following information for each wager made:

6.5.1. Description of event;

6.5.2. Event number;

6.5.3. Wager selection;

6.5.4. Type of wager;

6.5.5. Amount of wager;

6.5.6. Date and time of wager;

6.5.7. Unique wager identifier; and

6.5.8. An indication of when the ticket expires.

6.6. All tickets generated by a cashier or at a kiosk shall contain the following information:

6.6.1. Name and address of the party issuing the ticket;

6.6.2. A barcode or similar symbol or marking as approved by the Commission, corresponding to the unique wager identifier;

6.6.3. Method of redeeming winning ticket via mail; and

6.6.4. Cashier or kiosk generating the ticket.

6.7. If the sports pool system issues and redeems a sports pool voucher, the system shall be capable of recording the following information for each voucher:

6.7.1. Amount of voucher;

6.7.2. Date, time, and location of issuance;

6.7.3. Unique voucher identifier;

6.7.4. Expiration date of the voucher; and

6.7.5. Date, time, and location of redemption, if applicable.

6.8. Sports pool vouchers issued by a sports pool system shall contain the following information:

6.8.1. Date, time, and location of issuance;

6.8.2. Amount of the voucher;

6.8.3. Unique voucher identifier;

6.8.4. Expiration date of the voucher;

6.8.5. Name of the issuing sports pool operator; and

6.8.6. An indication that the voucher can only be redeemed in exchange for a sports wager or cash.

6.9. A sports pool system that offers in-play wagering shall be capable of the following:

6.9.1. The accurate and timely update of odds for in-play wagers;

6.9.2. The ability to notify the patron of any change in odds after a wager is attempted;

6.9.3. The ability for the patron to confirm the wager after notification of the odds change; and

6.9.4. The ability to freeze or suspend the offering of wagers when necessary.

6.10. A sports pool system shall be configured to perform the following functions:

6.10.1. Creating wagers;

6.10.2. Settling wagers;

6.10.3. Voiding wagers;

6.10.4. Cancelling wagers; and

6.10.5. Preventing the acceptance of wagers from prohibited sports pool participants.

6.11. A sports pool system shall be capable of processing lost, destroyed, or expired wagering tickets.

6.12. When a sports pool wager is voided or cancelled, the system shall clearly indicate that the ticket is voided or cancelled, render it nonredeemable, and make an entry in the system indicating the voiding or cancellation of the wager and the identity of the cashier or automated process completing the voiding or cancellation.

6.13. A sports pool system shall prevent past posting of wagers and the voiding or cancellation of wagers after the outcome of an event is known.

6.14. In the event a patron has a pending sports pool wager and then self-excludes, the sports pool operator’s internal controls shall govern any cancellation or refund of the wager.

6.15. A sports pool system shall, at least once every 24 hours, perform an authentication process on all software used to offer, record, and process wagers to ensure there have been no unauthorized modifications. In the event of an authentication failure, the sports pool operator’s Information Systems Officer (ISO) and the Director, or his or her designee, must be notified within 24 hours. The results of all authentication attempts shall be recorded by the system and maintained for a minimum period of 90 days.

6.16. A sports pool system shall have controls in place to review the accuracy and timeliness of any data feeds used to offer or settle wagers. In the event that an incident or error occurs that results in a loss of communication with data feeds used to offer or redeem wagers, such error shall be recorded in a log capturing the date and time of the error, the nature of the error, and a description of its impact on the system’s performance. Such information shall be maintained for a minimum period of one year.

6.17. A sports pool operator or sports pool intermediary shall provide the Director, or his or her designee, with access to wagering transactions and related data as deemed necessary and in a manner approved by the Commission.

6.18. A sports pool system shall be capable of recording and maintaining the following information related to wagers:

6.18.1. Description of the event;

6.18.2. Event number;

6.18.3. Wager selection;

6.18.4. Type of wager;

6.18.5. Amount of wager;

6.18.6. Amount of potential payout;

6.18.7. Date and time of wager;

6.18.8. Identity of the cashier accepting the wager if applicable;

6.18.9. Unique ticket identifier;

6.18.10. Expiration date of ticket;

6.18.11. Patron name;

6.18.12. Date, time, amount, and description of the settlement;

6.18.13. Location where wager was made;

6.18.14. Location of redemption; and

6.18.15. Identity of cashier settling the wager if applicable.

6.19. For all lost tickets that are redeemed, a sports pool system shall record and maintain the following information:

6.19.1. Date and time of redemption;

6.19.2. Employee responsible for redeeming the ticket;

6.19.3. Name of patron redeeming the wager;

6.19.4. Unique ticket identifier; and

6.19.5. Location of the redemption.

W. Va. Code R. § 179-9-7 Patron Wagers

7.1. A sports pool operator or sports pool intermediary shall not accept any wager on a sports event unless it has provided written notification to the Director of the first time that wagering on a category of wagering event (for example, wagering on a particular type of professional sport) or type of wager (for example an in-play wager or exchange wager) is offered to the public. Such notice shall be submitted prior to accepting a wager on a new category of wagering event or accepting a new type of wager. Notice is not required whenever the odds change on a previously offered wagering event. The Director, or his or her designee, shall respond to such notice within 24 hours or by the next business day. The 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.

7.2. A sports pool operator or sports pool intermediary shall only accept wagers on sports events and other events for which:

7.2.1. The outcome can be verified;

7.2.2. The outcome can be generated by a reliable and independent process;

7.2.3. The outcome will not be affected by any wager placed; and

7.2.4. The event is conducted in conformity with all applicable laws.

7.3. Patron wagers pursuant to the Act placed in a sports wagering lounge or other approved area within a licensed casino shall be made with:

7.3.1. Cash;

7.3.2. Cash equivalent;

7.3.3. Credit or debit card;

7.3.4. Promotional funds;

7.3.5. Sports pool vouchers;

7.3.6. Value gaming chips; and

7.3.7. Any other means approved by the Commission.

7.4. The available wagers shall be displayed in a manner visible to the public and the operator’s close-circuit television system. The display shall include the event number, odds, and a brief description of the event.

7.5. A patron may redeem a winning wagering ticket by mail according to the sports pool operator’s internal controls.

7.6. A sports pool operator may, in its discretion, accept a layoff wager from another licensed sports pool operator. A licensed sports pool operator placing a layoff wager shall disclose its identity to the other licensed sports pool operator accepting the wager.

W. Va. Code R. § 179-9-8 Sports pool reports; wagering revenue; computation of taxes; reconciliation

8.1. The sports pool system shall be required to generate those reports necessary to record total gross sports wagering receipts, wagering liability, ticket redemption, and such other information relating to sports wagering as deemed necessary by the Commission or as required by MICS. Such reports shall distinguish information by type and status where applicable and shall meet the Commission’s MICS.

8.2. Adjusted gross wagering receipts from sports wagering subject to the 10% privilege tax shall equal the total of all wagers received less cancelled wagers and less amounts paid out for winning wagers.

8.3. To determine the daily win amount, the sports pool operator’s accounting department shall compare a win report from the sports wagering system to the reconciliation of the sports wagering drawers. The operator shall be required to calculate and report adjusted gross sports wagering receipts using the higher amount identified in such comparison, unless otherwise authorized by the Commission in its MICS.

8.4. The sports pool operator shall permit duly authorized representatives of the Commission to examine the operator’s accounts and records for the purpose of certifying total gross revenue receipts and adjusted gross sports revenue receipts. The Director shall notify the operator of any deficiencies disclosed during the gross revenue receipts certification process.

W. Va. Code R. § 179-9-9 Sports wagering kiosks

9.1. The sports pool operator or its sports pool intermediary may utilize sports pool kiosks located in the casino for wagering transactions in conjunction with a sports pool system in a location approved by the Director.

9.2. On a daily basis, a sports pool operator shall remove the bill validator boxes in the sports pool kiosks (the “sports pool kiosk drop”). The sports pool kiosk drop shall be monitored and recorded by surveillance. The sports pool operator shall submit the sports pool kiosk drop schedule to the Director.

9.3. The sports pool operator’s accounting department shall reconcile the sports pool kiosks on a daily basis pursuant to internal controls. Any variance of $ 500.00 or more shall be documented by the accounting department and reported in writing to the Director within 72 hours of the end of the gaming day during which the variance was discovered. The report shall indicate the cause of the variance and shall contain any documentation required to support the stated explanation.

9.4. All sports wagering kiosks must satisfy all MICS requirements and be detailed in the sports pool operator’s internal controls approved by the Commission.

W. Va. Code R. § 179-9-10 Accounting controls for the sports wagering lounge

10.1. A ticket writer shall begin a shift with an imprest amount of currency and coin to be known as the “sports wagering inventory.” No funds shall be added to or removed from the sports wagering inventory during such shift except:

10.1.1. In collection of sports wagers;

10.1.2. In order to make change for a patron buying a sports wagering ticket;

10.1.3. In collection for the issuance of sports wagering vouchers;

10.1.4. In payment of winning or properly cancelled or refunded sports wagering tickets;

10.1.5. In payment of sports wagering vouchers; or

10.1.6. In exchanges with the cashier’s cage, a satellite cage, or sports wagering lounge booth vault supported by proper documentation which documentation shall be sufficient for accounting reconciliation purposes.

10.2. A “sports wagering count sheet” shall be completed and signed by each ticket writer at the end of his or her shift and submitted to the shift supervisor. The information to be recorded on the sports wagering count sheet shall be set forth by the Commission in its MICS.

10.3. The count sheets shall be due by noon on the next gaming day.

10.4. The shift supervisor shall compare the ticket writer window net receipts for the shift as generated by the terminal with the sports wagering count sheet total plus the sports wagering inventory, and if the ticket writer net receipts equals the wagering count sheet total plus the wagering inventory, the shift supervisor shall sign the sports wagering count sheet attesting to its accuracy.

10.5. If the sports wagering window net receipts for the shift, as generated by the system, does not agree with the sports wagering count sheet total plus the sports wagering inventory, the shift supervisor shall record any overage or shortage. If the count does not agree, the ticket writer and the shift supervisor shall attempt to determine the cause of the discrepancy in the count. Any discrepancy that cannot be resolved by the ticket writer and the shift supervisor shall be reported in writing to the department supervisor in charge at such time. Any discrepancy in excess of $500 shall be reported to the Commission. The report shall include the following:

10.5.1. Date on which the discrepancy occurred;

10.5.2. Shift during which the discrepancy occurred;

10.5.3. Name of the ticket writer;

10.5.4. Name of the supervisor;

10.5.5. Window number; and

10.5.6. Amount of the discrepancy.

W. Va. Code R. § 179-9-11 Approval to immediately commence sports pool or online sports pool operations

11.1. Upon receiving an application for a sports wagering operator’s license, the Director shall review the request. If the Director determines that the applicant holds a valid casino license, has paid the sports wagering license fee, and is in compliance with this section, the Commission shall immediately issue a sports wagering license as provided in the Act.

11.2. Any sports pool intermediary seeking to operate a sports wagering pool or online sports wagering pool pursuant to a contract with the licensed sports pool operator must be licensed as a management services provider, as provided in the Act. Upon submitting an application fee to the Commission for a management services provider license, an applicant may submit a contemporaneous request to the Commission for an interim license authorizing the applicant to immediately act as a sports pool intermediary for up to 270 days, pending the Commission’s full review of the application for an annual license. Once approved, an annual license commencement date is the date on which an interim license was issued.

11.3. Any sports pool intermediary seeking to sell, lease, or offer services related to sports wagering equipment, systems, or other gaming items necessary to conduct sports wagering must be licensed as a supplier, as provided in the Act. Upon submitting an application fee to the Commission for a supplier license, an applicant may submit a contemporaneous request to the Commission for an interim license authorizing the applicant to immediately act as a sports pool intermediary for up to 270 days, pending the Commission’s full review of the application for an annual license. Once approved, an annual license commencement date is the date on which an interim license was issued.

11.4. All sports pool wagering and online sports pool wagering conducted under authority of an interim license approval shall comply with these rules.

W. Va. Code R. § 179-9-12 Limitations on licensed sports pool operators

12.1. Each sports pool operator, in its discretion, may provide no more than three individually branded online sports pool websites and accompanying mobile applications.

12.2. Any individually branded online sports pool website or mobile application provided by a sports pool intermediary must, on its webpage, conspicuously bear the name of the sports pool operator with which it is affiliated.

W. Va. Code R. § 179-9-13 Additional requirements for wagers placed on mobile applications and other digital platforms

13.1. A sports pool operator or sports pool intermediary shall file with the Commission, internal controls for all aspects of online sports pool operations prior to implementation and any time a change is made thereafter. The internal controls shall include detailed procedures for system security, operations, accounting, and reporting of problem gamblers.

13.2. A sports pool operator or sports pool intermediary offering online sports pools shall describe in its internal controls the method for securely issuing, modifying, and resetting a patron’s account password, Personal Identification Number (PIN), or other approved security feature, when applicable. Any method shall include notification to the patron following any modification via electronic or regular mail, text message, or other manner approved by the Director or the Commission. Such method shall include at a minimum:

13.2.1. Proof of identity, if in person;

13.2.2. The correct response to two or more challenge questions; or

13.2.3. Strong authentication.

13.3. All terms and conditions for online sports pools shall be included as an appendix to the internal controls filed with the Commission pursuant to this rule.

13.4. Each online sports pool website or mobile application shall display a responsible gaming logo in a manner approved by the Commission to direct a patron to the operator’s responsible gaming webpage. The responsible gaming webpage shall be accessible to a patron during a patron session and shall contain, at a minimum, the following:

13.4.1. A prominent message, which states “If you or someone you know has a gambling problem and wants help, call 1-800-Gambler”;

13.4.2. A direct link to the “Problem Gamblers Help Network” of West Virginia and one other organization based in the United States dedicated to helping people with potential gambling problems;

13.4.3. A clear statement of the online sports pool operator’s policy and commitment to responsible gaming; and

13.4.4. Rules governing self-imposed responsible gaming limits and the ability for the patron to establish those limits.

W. Va. Code R. § 179-9-14 Sports wagering accounts

14.1. Online sports pool wagering shall only be engaged in by patrons who have established a sports wagering account.

14.2. In order to establish a sports wagering account, a sports pool operator or sports pool intermediary shall:

14.2.1. Create an electronic patron file, which shall include at a minimum:

14.2.1.1. The patron’s legal name;

14.2.1.2. The patron’s date of birth;

14.2.1.3. The patron’s Social Security number, or the last four digits thereof, or an equivalent identification number for a noncitizen patron, such as a passport or taxpayer identification number;

14.2.1.4. The patron’s online sports pool account number;

14.2.1.5. The patron’s residential address (a post office box is not acceptable);

14.2.1.6. The patron’s electronic mail address;

14.2.1.7. The patron’s telephone number;

14.2.1.8. Any other information collected from the patron used to verify his or her identity;

14.2.1.9. The method used to verify the patron’s identity; and

14.2.1.10. The date of verification.

14.2.2. Encrypt all of the following information contained in an electronic patron file:

14.2.2.1. Any portion of the patron’s Social Security number or equivalent identification number for a noncitizen patron, such as a passport or taxpayer identification number;

14.2.2.2. The patron’s passwords and/or PINs; and

14.2.2.3. The patron’s credit card numbers, bank account numbers, or other personal financial information.

14.2.3. Verify the patron’s identity in accordance with:

14.2.3.1. Reliable forms of personal identification specified in the MICS; or

14.2.3.2. Other methodology for remote multi-source authentication, which may include third-party and governmental databases, as approved by the Commission (such as Know Your Customer or “KYC”).

14.2.4. Record the document number of the government issued identification credential examined;

14.2.5. Require the patron to establish a password or other access security feature as approved by the Commission and advise the patron of the ability to utilize strong authentication log in protection;

14.2.6. Verify that the patron is not a prohibited sports pool participant;

14.2.7. Record the patron’s acceptance of the sports pool operator’s or sports pool intermediary’s terms and conditions to participate in wagering through the mobile application or any authorized digital platform accepting wagers online;

14.2.8. Record the patron’s certification that the information provided to the operator is accurate;

14.2.9. Record the patron’s acknowledgment that the legal age for wagering in an online sports pool is 21, and that he or she is prohibited from allowing any other person to access or use his or her sports wagering account; and

14.2.10. Notify the patron of the establishment of the account via electronic mail or regular mail.

14.3. A patron shall have only one sports wagering account for each sports pool operator or sports pool intermediary. Each sports wagering account shall be:

14.3.1. Non-transferable;

14.3.2. Unique to the patron who establishes the account; and

14.3.3. Distinct from any other account number that the patron may have established with the sports pool operator.

14.4. A patron’s sports wagering account for online sports pools may be funded through the use of:

14.4.1. A patron’s deposit account established for sports wagering according to the requirements provided in W. Va. Code of State Rules §179-8-121;

14.4.2. A patron’s credit or debit card;

14.4.3. A patron’s deposit of cash or vouchers at a cashiering location approved by the Commission;

14.4.4. A patron’s reloadable prepaid card, which has been verified as being issued to the patron and is non-transferable;

14.4.5. Promotional credit;

14.4.6. Winnings;

14.4.7. Adjustments made by the sports pool operator with documented notification to the patron;

14.4.8. ACH transfer, provided that the operator has security measures and controls to prevent ACH fraud pursuant to section 14.5 below; or

14.4.9. Any other means approved by the Commission.

14.5. A failed ACH deposit attempt shall not be considered fraudulent if the patron has successfully deposited funds via an ACH transfer on a previous occasion with no outstanding chargebacks. Otherwise, the operator shall:

14.5.1. Temporarily block the patron’s account for investigation of fraud after five consecutive failed ACH deposit attempts within a 10-minute time period. If there is no evidence of fraud, the block may be vacated; and

14.5.2. Suspend the patron’s account after five additional consecutive failed ACH deposit attempts within a 10-minute period.

14.6. A sports pool operator or sports pool intermediary shall not permit a patron transfer funds from a patron account to another patron.

14.7. All adjustments to patron accounts for amounts of $500.00 or under shall be periodically reviewed by supervisory personnel as set forth in the sports pool operator’s internal controls. All other adjustments shall be authorized by supervisory personnel prior to being entered.

14.8. Online sports pool systems shall provide an account statement with account details to a patron on demand, which shall include detailed account activity for at least the six months preceding 24 hours prior to the request. In addition, an online sports pool system shall, upon request, be capable of providing a summary statement of all patron activity during the past year.

14.9. A sports pool operator shall maintain a West Virginia bank account separate from all other operating accounts to ensure the security of funds held in patron sports wagering accounts. The balance maintained in this account shall be greater than or equal to the sum of the daily ending cashable balance of all patron sports wagering accounts, pending wagers, and pending withdrawals. A sports pool operator shall have unfettered access to all patron sports wagering account and transaction data to ensure the amount held in its independent account is sufficient. The casino controller or other higher ranking employee shall file a monthly attestation with the Commission that the funds have been safeguarded pursuant to this subsection.

14.10. A sports pool operator or sports pool intermediary shall periodically re-verify a patron’s identification upon reasonable suspicion that the patron’s identification has been compromised.

14.11. An online sports pool system shall provide a conspicuous and readily accessible method for a patron to close his or her account through the account management or similar page. Any balance remaining in a patron’s sports wagering account closed by a patron shall be refunded pursuant to the operator’s internal controls.

W. Va. Code R. § 179-9-15 Geolocation requirement

15.1. In order to prevent unauthorized use of an online sports pool system to place a wager when a player is not within the permitted boundary, the sports pool operator or sports pool intermediary must utilize a geolocation system to reasonably detect the physical location of a player attempting to access the online sports pool system and place a wager; and to monitor and block unauthorized attempts to access the online sports pool system in order to place a wager when a player is not within the permitted boundary.

15.2. The geolocation system shall ensure that any player is located within the permitted boundary when placing any wager, and shall be equipped to dynamically monitor the player’s location and block unauthorized attempts to access the online sports pool system in order to place a wager throughout the duration of the patron session.

15.3. The Commission shall approve technical specifications for geolocation systems and any specific requirements related to geolocation as part of its MICS.

W. Va. Code R. § 179-9-16 Online sports pool system requirements; logging

16.1. All online sports pool systems authorized by the Act and this rule shall be designed to ensure the integrity and confidentiality of all patron communications and ensure the proper identification of the sender and receiver of all communications. If communications are performed across a public or third-party network, the system shall either encrypt the data packets or utilize a secure communications protocol to ensure the integrity and confidentiality of the transmission.

16.2. Online sports pool systems shall employ a mechanism capable of maintaining a separate copy of all of the information required to be logged in this section on a separate and independent logging device capable of being administered by an employee with no incompatible function. If the online sports pool system can be configured such that any logged data is contained in a secure transaction file, a separate logging device is not required.

16.3. Online sports pool systems shall provide a mechanism for the Commission to query and export, in a format required by the Commission, all online sports pool system data.

16.4. Requirements for system specifications and sports pool system logging shall be detailed by the Commission in the MICS. Sports pool operators and sports pool intermediaries shall address all such requirements in the internal controls submitted to the Commission for approval.

W. Va. Code R. § 179-9-17 Additional reports for online sports pool; reconciliation; test accounts

17.1. An online sports pool system shall be designed to generate the reports required by this section or otherwise required by the Commission in a format approved by the Commission’s Finance & Administration and Information Technology divisions. Additional reporting requirements shall be approved by the Commission for inclusion in the MICS.

17.2. All required reports shall be generated by the online sports pool system, even if the period specified contains no data to be presented. The report generated shall indicate all required information and contain an indication of “No Activity” or similar message if no data appears for the period specified.

17.3. All data required by this rule must be available in report image formats as well as database type formats as approved by the Director. The initial approved format is comma separated variables (CSV).

17.4. An online sports pool system shall, at a minimum, generate the daily reports for each gaming day in order to calculate the taxable revenue or to ensure the integrity of operations related to operating an online sports pool.

17.5. The sports pool operator and its sports pool intermediaries shall set up test accounts to be used to test each of the various components and operations of the online sports pool system in accordance with internal controls approved by the Commission.

W. Va. Code R. § 179-9-18 Mobile application and/or interactive platform requirements

18.1. Each system that provides content to a sports pool system shall:

18.1.1. Maintain internal controls for all aspects of gaming operations prior to implementation and any time a change is made thereafter. The internal controls shall include detailed procedures for system security, operations, and accounting;

18.1.2. Maintain internal controls approved by the Director that address compliance with all online sports pool system requirements;

18.1.3. Employ personnel responsible for duties of an IT Department, ensuring the operation and integrity of the sports wagering and reviewing all reports of suspicious behavior as determined and approved by the Commission;

18.1.4. Perform an annual system integrity and security assessment conducted by an independent professional selected by the operator, subject to the approval of the Commission. The independent professional’s report on the assessment shall be submitted to the Commission annually in compliance with the requirements provided in section 3.5 of this rule; and

18.1.5. Provide the Director with physical and logical access to the system to review and collect all data contained therein.

W. Va. Code R. § 179-9-19 Temporary approvals for expedited implementation

19.1. The Director may approve certain system, network, operational, and other standards necessary to implement sports wagering on a temporary basis as long as a deadline for full-compliance with permanent standards is provided at the time of approval. Extensions may be approved by the Director if justification is provided to show that such additional time in the temporary environment is reasonably necessary.

W. Va. Code R. § 179-9-20 Racetrack Modernization Fund and Historic Resort Hotel Modernization Fund Reimbursement

20.1. The sports pool operator shall submit requests for reimbursement from its Racetrack Modernization Fund or Historic Resort Hotel Modernization Fund allowance, whichever is applicable, to the Director for any new and unused purchases of sports pool systems or other equipment necessary to modernize the facility to accept sports wagers. The Commission may further define covered acquisitions by issuing Lottery Commission Policy Statements.

W. Va. Code R. § 179-9-21 Advertising

21.1. The Director shall approve all advertising of sports wagering systems in advance of a sports pool operator, its sports pool intermediaries, its agents, or its affiliates publishing or otherwise releasing such advertisements. Further requirements shall be defined by the Commission in its MICS.

21.2. The Commission may set a certain amount or percentage of revenue that may be used for promotional credit, but any excess promotional credit offered must be accounted for as taxable revenue. This amount will be set quarterly by Commission Order.

W. Va. Code R. § 179-9-22 Licensing and Registration

22.1. An individual or entity, employed with or contracted by a sports pool operator a sports pool intermediary, to perform certain activities for the operation of a sports wagering system having assigned duties as a sports wagering manager or a customer service representative with access to confidential player account information and the ability to modify player accounts shall be licensed as an occupational licensee. Persons or individuals holding an occupational license pursuant to the Interactive Wagering Act, W. Va. Code §29-22E-1, et seq., and Interactive Wagering Rule, §179-10-1, et seq., are not required to apply for or obtain additional occupational licensure pursuant to the Sports Wagering Act and this rule.

22.2. In addition, certain affiliate entities, such as marketing affiliate companies, that are not involved directly in the offering or placement of the wager shall be deemed to be a Registrant rather than a licensee for the purpose of licensing and registration and shall be subject to the following requirements:

22.2.1. Affiliate entities shall register with the West Virginia Lottery Commission on or before the date such entity is contractually obligated or plans to offer its services in West Virginia to West Virginia residents;

22.2.2. Affiliate entities shall renew its registration each year on or before a certain date as set by the Commission for the forthcoming year; and

22.2.3. Affiliate entities shall pay a registration fee of $100.00 at the time of initial registration and each registration renewal.

W. Va. Code R. § 179-9-23 Criteria for exclusion and placement on exclusion list

23.1. The Commission may receive complaints from various sources which may include governing bodies, leagues, individual teams, schools, law enforcement agencies, or the public, about individuals who pose a threat to the safety of patrons or participants in a sporting event or who have engaged in a pattern of conduct of harassing a sports official, coach, or participant. These complaints may be directly filed with the Commission.

23.2. The Commission may place a person on the exclusion list pending a hearing if any of the following provisions apply:

23.2.1. The person poses a threat to the safety of patrons or participants in a sporting event or has engaged in a pattern of conduct of harassing a sports official, coach, or participant;

23.2.2. The person has been convicted of a gambling-related offense, a theft, or a fraud offense in any jurisdiction; or has a prior conviction under W. Va. Code §61-2-15a;

23.2.3. The person has violated the Act, this rule, or a previous order of the Commission;

23.2.4. The person has performed any act or has a reputation, that would adversely affect public confidence and trust in the integrity of gaming;

23.2.5. The person is included on any valid and current exclusion list from another jurisdiction in the United States; or

23.2.6. The person has realized that he or she has a compulsive gaming disorder and has requested in writing to be excluded from entering all four (4) West Virginia Racetracks and Casinos and The Historic Greenbrier Casino, all of which are regulated by the West Virginia Lottery and hereafter referred to collectively as “Casinos”.

W. Va. Code R. § 179-9-24 Procedure for entry of names on the exclusion list

24.1. Complaints shall be submitted directly to the Commission in writing.

24.2. Upon a determination that a person comes under any of the criteria for exclusion, the person may be subject to exclusion and the Commission shall file a notice of exclusion informing the person of the Commission’s intent to ban the patron from sports wagering. The notice shall include all of the following information:

24.2.1. The identity of the person;

24.2.2. The nature and scope of the circumstances or reasons that the person should be placed on the exclusion list;

24.2.3. The names of potential witnesses;

24.2.4. A recommendation as to whether the exclusion or ejection should be permanent; and

24.2.5. A statement that the patron is entitled to a hearing before the Commission pursuant to §29A-5-1 et seq. of this code.

24.3. If a person is excluded from sports wagering, then the person is prohibited from further entering all West Virginia Casinos and using mobile applications for sports wagering and online gaming associated with the West Virginia Lottery.

W. Va. Code R. § 179-9-25 Distribution, availability, and accountability relating to the exclusion list

25.1. The Commission shall maintain a list of persons to be excluded from sports wagering. The West Virginia Lottery Commission will release its contents to all West Virginia Casinos, their agents and affiliates, and mobile apps and gaming through the West Virginia Lottery. The list may also be distributed to law enforcement agencies. All of the following information, to the extent known, shall be provided for each excluded person:

25.1.1. The person’s full name and date of birth and all aliases;

25.1.2. A physical description of the person;

25.1.3. The effective date the person's name was placed on the exclusion list;

25.1.4. A photograph of the person, if available;

25.1.5. The person's occupation and current home and business addresses; and

25.1.6. Any other information considered necessary by the Commission to facilitate the identification of the person placed on the exclusion list.

25.2. The exclusion list is a public record that contains a person’s confidential information, including PII. For purposes of public disclosure, the sharing of this information with third parties or the public is subject to subsection 2.2 of the State of West Virginia Confidentiality Policies and Information Security Accountability Requirements, available at www.state.wv.us/Admin/Purchase/Privacy/, which is incorporated herein by reference. Disclosure shall be limited to only the name of the person on the exclusion list.

W. Va. Code R. § 179-9-26 Petition for removal from exclusion list

26.1. The name of a person on the exclusion list shall not be removed from the list unless the Commission or a court of competent jurisdiction determines otherwise.

26.2. A person who has been placed on any exclusion list may petition the Commission, in writing, and request that his or her name be removed from the exclusion list.

26.3. The provisions of the State Administrative Procedures Act, W. Va. Code §29A-5-1, et seq., and the Lottery Administrative Appeals Procedures Rule, W. Va. CSR §179-2-1, et seq., shall apply to protests of exclusion under this section.

179CSR9

Series 10 West Virginia Lottery Interactive Wagering Rule

W. Va. Code R. § 179-10-1 General. 1.1 Scope and Purpose. -- The purpose of this legislative rule is to clarify and provide regulations that the Commission considers necessary for the successful implementation, administration, and enforcement of the West Virginia Lottery Interactive Wagering Act codified in W.Va. Code §§29-22E-1 et seq

1.2. Authority. -- W.Va. Code §29-22E-4(c), W.Va. Code §29-22A-1 et seq., and W.Va. Code §29A-3-15.

1.3. Filing Date. -- April 27, 2026.

1.4. Effective Date. -- April 27, 2026.

1.5. Sunset Provision. -- This rule shall terminate and have no further force or effect upon August 1, 2031.

W. Va. Code R. § 179-10-2 Definitions

The following words and terms, when used in this rule, shall have the following meanings unless the context clearly indicates otherwise:

2.1. “Account Creation Log” means a cumulative data set where each entry is date and time stamped and it identifies each newly created account or any account deletion. An Account Creation Log includes all information necessary to identify who performed the action and the identity of the patron.

2.2. “Act” means the West Virginia Lottery Interactive Wagering Act, W.Va. Code §29-22E-1 et seq.

2.3. “Adjustments Log” means a cumulative data set where each entry is date and time stamped, identifies the user ID of the staff performing the action, a description of the event or action taken, and the initial (before) and final (after) values of any data altered as a part of the event or action taken.

2.4. “Anti-Money Laundering (AML)” means systems or processes to detect suspicious transactions or activities concealing the origins of money obtained illegally.

2.5. "Authentication process" means a method used by a system to verify the validity of software. Such method requires the calculation of an output digest, which is compared to a secure embedded value. The output digest shall be of 128-bit complexity, at a minimum. Software shall be deemed to have been authenticated if the calculated digest equals the secure embedded value.

2.6. "Authorized interactive game" means any game authorized by the Commission for use with an interactive gaming system.

2.7. “Automated Clearing House (ACH)” means a network that connects all banking and financial institutions within the United States.

2.8. “Backup Data” means off system storage of programs and data that can be restored to resume operations in another location by installation of new hardware and operating system software.

2.9. “Cheating device” means a device, software, or hardware used or possessed with the intent to obtain an unfair advantage through fraud or deceit during the operation or play of any authorized interactive game. The term also includes any device used to alter an authorized interactive gaming or interactive gaming device or system without the interactive gaming operator’s or interactive gaming management services provider’s approval.

2.10. “Communication technology” means any method used as well as the components employed to facilitate the transmission and receipt of information, including transmission and reception by systems using wire, wireless, cable, radio, microwave, light, fiber optics, satellite or computer data networks, including the internet and intranets.

2.11. “Confidential Player Account Information” means player account balances and any personally identifiable information (PII) contained within the interactive gaming system.

2.12. “Content Delivery Network” means a geographically distributed network of servers and their data centers.

2.13. “Contest” means an authorized interactive game competition among players for cash, cash equivalents or prizes.

2.14. “Customer Service Representative” means an employee of an interactive gaming operator, management services provider or a supplier who has access to confidential player account information and has the ability to modify or adjust account data or PII.

2.15. "Data warehouse" means a system of one or more servers, located in West Virginia, for the purpose of storing transactions received from the primary gaming equipment.

2.16. “Deposit Account” means the financial instrument by which a patron originally funds their interactive gaming account.

2.17. “Director’ means the Director of the West Virginia State Lottery Commission, appointed pursuant to W.Va. Code §29-22-6.

2.18. "Dormant account" means an interactive gaming account, which has had no patron initiated activity for a period of sixteen (16) months.

2.19. "Funds on game" means the sum of pending wagers and funds transferred to a game not yet wagered, less pending wins.

2.20. "Game Availability Log” means a cumulative data set in which each entry is date and time stamped and documents the identification of the software program and the identity of the person making the change for each software program that is included in the principal gaming system.

2.21. "Game server" means the server that contains game software and control programs.

2.22. “Hardened System” means designing a system architecture whereby key servers/processes are duplicated and synchronized together to provide fault tolerance and minimize single points of failure, An example includes the use of duplicate Structured Query Language (SQL) servers that are synchronized, in the event of a failure control can be switched to the other server(s) in near real time.

2.23. “Interactive gaming” means, in addition to the definition set forth in W.Va. Code §29-22E-3(17), the placing of wagers through a server-based gaming system using a computer network of interoperable packet-switched data networks through which the operator may offer authorized interactive games to a patron who has established an interactive gaming account. Interactive gaming can be used with an Android or IOS device using an application (“App”) or through an internet web browser on any supported device using software such as, but not limited to, Internet Explorer, Firefox, and Google Chrome. "Interactive gaming” is synonymous with “i-Gaming.”

2.24. “Interactive gaming account” means a financial record established by an operator or its management services provider for an individual patron in which the patron may deposit and withdrawal funds for interactive gaming and to which the operator or its management services provider may credit winnings or other amounts due to that patron or authorized by that patron.

2.25. "Interactive gaming management services provider" means an interactive gaming licensee authorized to operate interactive gaming on behalf of or in partnership with an interactive gaming operator. ”Interactive gaming management services provider” is synonymous with “management services provider” or “MSP.”

2.26. "Interactive gaming manager" means an employee(s) of an interactive gaming operator or management services provider who is responsible for the oversight and reporting of interactive gaming at a licensed gaming facility.

2.27. "Interactive gaming network" means the linking of patrons of one or more interactive gaming operators to participate in peer-to-peer gaming.

2.28. "Interactive gaming operator" means a licensed gaming facility that has elected to operate authorized interactive gaming activities or an interactive gaming system on its own or in partnership with an interactive gaming management services provider. An “interactive gaming operator is synonymous with “operator.”

2.29. "Interactive gaming system" means all hardware, software, and communications that comprise a type of server-based gaming system for the purpose of offering authorized interactive games.

2.30. “MICS” means the Minimum Internal Control Standards established by the Commission pursuant to W.Va. Code §29-22E-15(e) that determine how interactive gaming systems are to be designed, operated and controlled.

2.31. "Multi-factor authentication" means a type of strong authentication that uses two of the following to verify a patron's identity:

2.31.1. Information known only to the patron, such as a password, pattern, or answers to challenge questions;

2.31.2. An item possessed by a patron such as an electronic token, physical token or an identification card; or

2.31.3. A patron's biometric data, such as fingerprints, facial, or voice recognition.

2.32. "Patron device" means any device that is used to interact with a gaming system for the purpose of conducting server-based gaming activity.

2.33. "Patron session" means the period of time when a patron is logged on to an interactive gaming system.

2.34. "Peer-to-peer gaming" means all gaming activity, such as poker, in which patrons compete against each other, and the interactive gaming operator receives a rake.

2.35. "Pending wager account" means the account maintained by a server-based gaming system that holds the total balance of all wagers pending disposition and all other funds attributable to uncompleted games.

2.36. “Personally identifiable information” or “PII” means any data that could potentially be used to identify a particular person. Examples include, but are not limited to, a full name, Social Security Number, driver’s license number, birth date, age, bank account number, credit card number, debit card number, and email address. Generally two or more of these can identify a specific person depending on the uniqueness of the identifiers within a specific geographic area.

2.37. "Primary interactive gaming equipment" means all hardware, software, and other technology or equipment of any kind determined by the Director to be necessary for the conduct of an authorized interactive game within the boundaries of the State of West Virginia.

2.38. “Prohibited interactive gaming participant” means any individual who is prohibited from wagering pursuant to: (1) any self-exclusion list or a casino or Commission exclusion list; (2) any individual whose participation may undermine the integrity of the wagering or who is excluded from wagering for other good cause, including but not limited to, an attempt to place a wager as an agent or a proxy; (3) any employee of the Commission; or (4) a licensed interactive gaming operator or any of its employees placing a wager with that interactive operator in violation of W.Va. Code §§29-22E-1 et seq.

2.39. “Promotion Log” means a cumulative data set where each entry is date/time stamped and it identifies each promotion and the current terms of that promotion and the identity of the person from the operator’s staff who authorized the promotion.

2.40. “Promotional Credit” means any amount credited to a patron by an interactive gaming operator or MSP, without charge, to be included in a patron’s wager.

2.41. “Rake” means that portion of the patrons’ wager that is taken by the operator.

2.42. “Random Number Generator (RNG)” means a computer program that produces random numbers in a periodic series that are used to determine outcomes in i-Gaming that depend on random chance.

2.43. “Redundant System” means a duplication of the Primary System in a separate data center including real time replication of all data and configuration files from the Primary System to the redundant system thus permitting a faster return to operations than rebuilding a system from backup data.

2.44. “Registrant” means an interactive gaming marketing affiliate whose services are limited to click on ads or links for the sole purpose of steering a patron to an interactive gaming site to sign up for a new interactive gaming account.

2.45. "Remote Gaming System (RGS)" means hardware and software used to provide authorized games to patrons in conjunction with an interactive gaming system, which may be a standalone system or integrated within another part of the interactive gaming system.

2.46. "Restricted interactive gaming credit" means interactive gaming funds that cannot be cashed out until a wagering requirement or other restriction associated with those funds is met in accordance with disclosed terms and conditions.

2.47. "Secure transaction file" means a financial record that contains data which is unalterable and cannot be modified without detection.

2.48. “Server-based gaming" means all gaming activity conducted via a patron device where a random number generator determines the outcome of a game maintained on a server or a dealer-verified outcome from a simulcast table game.

2.49. "Server-based gaming system" means all hardware, software, and communications that comprise a system utilized for the purpose of offering electronic versions of authorized casino games where material aspects of game functionality occur at the server level.

2.50. “Significant system” means a hardware or software system that communicates directly with the i-Gaming system to provide services including, but not limited to, payment processing, player authentication (also known as “know your customer” or “KYC”), geolocation services and other systems as determined by the Commission to have significant integration with the i-Gaming system.

2.51. “Software installation/removal Log” means a cumulative data set where each entry is date and time stamped and documents the identification of the software and the identity of the person performing the action.

2.52. “Stateful protocol” means a protocol in which the communication system utilized between the player and the i-Gaming servers tracks the state of the communication system.

2.53. “Stateless protocol” means a protocol [computer code or file] in which neither the player nor the i-Gaming communication systems tracks the state of the communication system.

2.54. "Strong authentication" means a method that has been approved by the Commission to provide better security than a username and password alone.

2.55. "Suspended account" means an interactive gaming account that has been temporarily disabled from engaging in wagering activity.

2.56. "Table game simulcasting system" means a system to provide live interactive gaming in conjunction with a server-based gaming system, whereby the patron views video content pertaining to gaming activities while wagering.

W. Va. Code R. § 179-10-3 General requirements for interactive gaming

3.1. An interactive gaming operator shall conduct interactive gaming activities in compliance with the requirements of the West Virginia Racetrack Video Lottery Act as set forth in W.Va. Code §29-22A-1 et seq. and the W.Va. Code of State Rules 179-5-1 et seq. and the requirements of the West Virginia Racetrack Table Games Act as set forth in W.Va. Code §29-22C-1 et seq. and W.Va. Code of State Rules 179-8-1 et seq., when such requirements are applicable and do not conflict with the Act or this rule.

3.2. An interactive gaming management services provider authorized to operate an interactive gaming system, shall conduct such interactive gaming activities in compliance with the requirements of the West Virginia Racetrack Video Lottery Act set forth in W.Va. Code §29-22A-1 et seq. and W.Va. Code of State Rules 179-5-1 et seq. and the requirements of the West Virginia Racetrack Table Games Act set forth in W.Va. Code §29-22C-1 et seq. and W.Va. Code of State Rules 179-8-1 et seq., when such requirements are applicable and do not conflict with the Act or this rule.

3.3. An interactive gaming operator shall maintain a cash reserve of the amount necessary to cover the outstanding interactive gaming account liability. Lottery personnel shall verify this amount on at least a quarterly basis.

3.4. An interactive gaming operator or an interactive gaming management services provider shall only accept wagers from patrons verified to be physically located in the State of West Virginia at the time of their wager: Provided, That wagers may be accepted from patrons located outside of the State of West Virginia pursuant to a reciprocal interactive gaming agreement with another government as provided in W.Va. Code §29-22E-14 and so long as acceptance of such wagers does not conflict with federal law.

3.5. An interactive gaming operator or an interactive gaming management services provider shall only accept wagers from patrons who are 21 years of age or older.

W. Va. Code R. § 179-10-4 Interactive gaming integrity; confidential information

4.1. An interactive gaming operator offering interactive gaming shall have controls in place to identify unusual and suspicious activity and report such activity according to the integrity monitoring system procedures approved by the Commission.

4.2. All integrity monitoring system procedures shall provide for the sharing of information with each operator and shall disseminate all reports of unusual activity to all management services providers and suppliers, as well as to any regulatory agencies and governing authorities as required by the Commission. All operators shall review such reports and notify other operators, in a manner approved by the Commission, regarding whether they have experienced similar activity. Specific reporting requirements shall be designated by the Commission in its MICS.

4.3. If an interactive gaming operator finds that previously reported unusual wagering activity rises to the level of suspicious activity, it shall immediately notify all other operators, the Commission, appropriate law enforcement entities, regulatory agencies, and governing authorities as required by the Commission.

4.4. An operator offering interactive gaming shall employ an interactive gaming manager responsible for the operation and integrity of interactive gaming and for the review of all reports of suspicious activity. The interactive gaming manager shall be a key employee. The interactive gaming manager shall immediately notify the Commission upon the detection of any person participating in interactive gaming who is:

4.4.1. Engaged in or attempting to engage in or reasonably suspected of cheating, theft, embezzlement, collusion, money laundering, or any other illegal activity;

4.4.2. Excluded pursuant to Commission policy or the Commission’s statewide exclusion list; or

4.4.3. Excluded by the interactive gaming operator.

4.5. Notwithstanding the other provisions of this section, all information and data received pursuant to the administration of the West Virginia Lottery Interactive Wagering Act related to unusual or suspicious activity shall be considered confidential. Such data and information may not be revealed in whole or in part except to the West Virginia State Police or other law enforcement entity, regulatory agency, or governing authority, or upon the lawful order of a court of competent jurisdiction. Nothing in this section shall prohibit the West Virginia Lottery from sharing data and information as a participant in an integrity monitoring association or industry group organized for the purpose of integrity monitoring.

W. Va. Code R. § 179-10-5 Internal controls; house rules; terms and conditions; patron protection page

5.1. Interactive gaming operators or their management services providers shall file internal controls with the Commission regarding all aspects of their interactive gaming operations prior to implementation as well as any time a change is proposed. The internal controls shall include detailed procedures for system security, operations, accounting, and reporting of problem gamblers.

5.2. At a minimum, the internal controls shall address the following items regarding the interactive gaming system:

5.2.1. The user access controls for all personnel;

5.2.2. The segregation of duties;

5.2.3. The automated and manual risk management procedures;

5.2.4. The procedures for identifying and reporting fraud and suspicious conduct;

5.2.5. The procedures to prevent wagering by prohibited participants;

5.2.6. A description of Anti-Money Laundering (AML) compliance standards; and

5.2.7. A description of all integrated third-party systems.

5.3. An interactive gaming operator or MSP offering interactive gaming shall describe in its internal controls its method for securely issuing, modifying, and resetting a patron's account password, Personal Identification Number (PIN), or other approved security features, where applicable. The method shall include notification to the patron via electronic or regular mail, text message, or other manner approved by the Commission. At a minimum, the method shall include:

5.3.1. Proof of identity, if in person;

5.3.2. The correct response to two or more challenge questions; or

5.3.3. Strong authentication.

5.4. In the event of a failure of an interactive gaming system’s ability to pay winning game outcomes, the interactive gaming operator or MSP shall include internal controls detailing the method of paying winning game outcomes. The interactive gaming operator or MSP shall also file with the Commission an incident report for each system failure documenting the date, time, and reason for the failure along with the date and time the system is restored.

5.5. An interactive gaming operator shall investigate each patron complaint related to interactive gaming and provide a response to the patron within ten calendar days. For complaints that cannot be resolved to the satisfaction of the patron or are related to patron accounts, game outcomes, and/or illegal activity, a copy of the complaint and the interactive gaming operator’s response, including all relevant documentation, shall be provided to the Director. Interactive gaming operators shall provide all other complaints and responses related to interactive gaming (for example, password problems, online chat disputes and technical matters) to the Director on a biweekly basis or with such frequency as required by the Commission.

5.6. All terms and conditions for interactive gaming shall be included as an appendix to the internal controls of the interactive gaming operator or MSP addressing all aspects of the operation, including the following:

5.6.1. The name of the party or parties with whom the patron is entering into a contractual relationship, including any interactive gaming operator or MSP;

5.6.2. The patron's consent to have the interactive gaming operator or MSP confirm the patron's age and identity;

5.6.3. The rules and obligations applicable to the patron other than rules of the game including, but not limited to:

5.6.3.a. Any prohibition against allowing any other person to access or use his or her interactive gaming account;

5.6.3.b. Any prohibition against engaging in interactive gaming activity, unless physically present in West Virginia;

5.6.3.c. The consent to the monitoring and recording by the operator, MSP and/or the Commission of any wagering communications and geographic location information;

5.6.3.d. The consent to the jurisdiction of the State of West Virginia to resolve any disputes arising out of interactive gaming;

5.6.3.e. Any prohibition against utilizing automated computerized software or other equivalent mechanism, such as a "bot," to engage in play; and

5.6.3.f. Any prohibition against cheating and geolocation tampering.

5.6.4. A full explanation of all fees and charges imposed upon a patron related to interactive gaming transactions;

5.6.5. The availability of account statements detailing patron account activity;

5.6.6. Privacy policies, including information about who has access to the patron’s PII;

5.6.7. The legal age policy, including a statement that it is a criminal offense to allow a person who is under the age of 21 to participate in interactive gaming;

5.6.8. A full explanation of all rules applicable to dormant interactive gaming accounts;

5.6.9. The patron's right to set responsible gaming limits and to self-exclude;

5.6.10. The patron's right to suspend his or her account for a period of no less than 72 hours;

5.6.11. An explanation of the actions that will be taken in the event a patron becomes disconnected from the interactive gaming system during game play;

5.6.12. A notice that a malfunction voids all pays and plays;

5.6.13. The estimated time period for withdrawal of funds from an interactive account; and

5.6.14. The information to be displayed on a patron protection page. At a minimum, the patron protection page shall contain the following:

5.6.14.a. A method for changing or retrieving a password or other approved access security feature and the ability to choose "strong authentication" login protection;

5.6.14.b. A method for filing a complaint with the interactive gaming operator;

5.6.14.c. A method for filing with the Director an unresolved complaint after all reasonable means to resolve the complaint with the operator have been exhausted;

5.6.14.d. A method for obtaining a copy of the terms and conditions to which the patron must agree when he or she establishes an interactive gaming account;

5.6.14.e. A method for the patron to obtain account and game history from the operator;

5.6.14.f. A notification that underage gambling is a criminal offense and that facilitating gambling activity by a person under the age of 21 is also a criminal offense in addition to being prohibited from interactive gaming;

5.6.14.g. A notification that the patron is responsible for configuring his or her device’s auto-lock feature to protect the device from unauthorized use;

5.6.14.h. A notification that a patron is prohibited from allowing any other person to access or use his or her interactive gaming account;

5.6.14.i. A notification of federal prohibitions and restrictions regarding interactive gaming, including any limitations upon interactive gaming as set forth in 18 U.S.C. § 1084 et seq. (The Wire Act) and 31 U.S.C. §§ 5361 through 5367 (The Unlawful Internet Gambling Enforcement Act or UIGEA). The notice shall explicitly state that it is a federal offense for persons physically located outside of West Virginia to engage in interactive gaming through a West Virginia operator or MSP, unless explicitly authorized by the Commission; and

5.6.14.j. A notification that the connection will be terminated if the patron device is removed from the boundaries of the State of West Virginia.

5.6.15. Whenever the terms and conditions that apply to interactive gaming are changed, the interactive gaming operator or MSP shall require a patron to acknowledge acceptance of such change. Unless otherwise authorized by the Director the patron's acknowledgement shall be date and time stamped by the interactive gaming system.

5.7. An interactive gaming operator or MSP shall maintain primary and a backup interactive gaming equipment.

5.7.1. Subject to prior approval by the Director, the interactive gaming operator’s or MSP’s gaming equipment used to conduct interactive gaming shall be located as set forth below:

5.7.2. The primary interactive gaming equipment shall be located:

5.7.2.a. In a restricted area on the premises of the licensed operator within the boundaries of the State of West Virginia; or

5.7.2.b. In another facility owned or leased by the interactive gaming operator or its MSP within the boundaries of the State of West Virginia that is secure, inaccessible to the public, and specifically designed to house that equipment. The equipment shall be under the complete control of the interactive gaming operator or its MSP. For the purposes of this subsection, a secure facility “within the boundaries of the State of West Virginia” shall be considered to be part of the interactive gaming operator’s casino location notwithstanding that the facility may not be contiguous with the interactive gaming operator’s casino location.

5.7.2.b.1. The primary server used to resolve domain name service (DNS) inquiries by an interactive gaming operator or its MSP must be physically located in a secure data center. At least one secondary server must be able to resolve DNS queries.

5.7.2.b.2. This applies to each direct interactive gaming system server, including remote gaming servers (RGS) and the player account management system (wallet). This subsection does not apply to ancillary services such as payment processors, player authentication systems (KYC), customer service systems, back-end office systems, and other ancillary systems as authorized by the Commission.

5.7.2.b.3. Any hosting data center must register as an approved provider by sending a letter to the Director documenting which vendor systems will be on site, identifying the location, key management, and the scope of services being provided. In addition, the hosting data center must provide a list of applicable certifications including, but not limited to: SOC 1 Type 1-2, PCI, and ISO 27001, which serve as documentation of the adequacy of services for hosting a complex system. Upon request of the Director, the hosting data center will provide copies of its most recent audits. The Lottery must be able to inspect the facilities at the hosting data center upon request.

5.7.3. The backup gaming equipment (redundant system) used to conduct interactive gaming shall be located:

5.7.3.a. In a restricted area on the premises of an operator’s facility within the boundaries of the State of West Virginia for a time period not to exceed 60 days unless otherwise authorized by the Director; or

5.7.3.b. In another facility owned or leased by the interactive gaming operator or its MSP within the boundaries of the State of West Virginia that is secure, inaccessible to the public, and specifically designed to house that equipment. The equipment shall be under the complete control of the interactive gaming operator or its MSP. For the purposes of this subsection, a secure facility “within the boundaries of the State of West Virginia” shall be considered to be part of the interactive gaming operator’s casino location notwithstanding that the facility may not be contiguous with the interactive gaming operator’s casino location.

5.7.4. Backup gaming equipment used to restore data to primary interactive gaming equipment shall be located within the boundaries of the State of West Virginia. Backup data may be stored in any secure data center within the United States.

5.7.5. Each interactive gaming operator or MSP must provide with its license application diagrams and narrative to document how its interactive gaming system is configured including the location of each server that is part of the primary interactive gaming system, the player account management system (wallet), each system providing content, and any remote interactive gaming system that might be combined to provide the player interface. The interactive gaming operator or MSP must define in its minimum internal controls the specific configuration of equipment including any hardened systems or redundant systems and backup requirements including any effect on the entity’s risk environment.

5.8. Interactive gaming systems shall require a patron to re-enter his or her username and password, upon 15 minutes of user inactivity as measured by the interactive gaming system.

5.9. An interactive gaming system shall not induce a patron to continue placing wagers when play is in session, when the patron attempts to end a session, or when the patron wins or loses a bet.

5.10. An interactive gaming system shall allow patrons to access a player protection page at all times while logged into their interactive gaming account. The player protection page shall include all features listed in subsection 5.6.14 above.

5.11. An interactive gaming system may offer games to patrons that do not require a wager or payment from a patron's interactive gaming account as long as the patron has not exceeded any daily time-based limit. The games offered must comply with the following requirements:

5.11.1. Any game substantially similar to a game approved by the Commission shall utilize a payout percentage equal to or less than the lowest payout percentage of the approved game;

5.11.2. Any game not substantially similar to a game approved by the Commission shall prominently display the following information prior to the start of the game and during game play:

5.11.2.a. The game is offered for entertainment purposes only;

5.11.2.b. The game is not approved by the Commission; and

5.11.2.c. The game outcomes may not be representative of those for a Commission approved game.

5.12. Games traditionally played on social networks that may require a payment for certain game features (social games) may be funded or accessed from a patron's interactive gaming account. This requires that the interactive gaming operator or its MSP also provide a clear and conspicuous notice on the initial screen that the patron is accessing a social game whose features may require payment. The social game’s terms and conditions must include a notice that the Commission does not regulate such social games.

5.13. All interactive gaming operators or MSP’s with employees who have direct contact with patrons via phone, e-mail, electronic chat, or other means, shall implement training for those employees, at the start of their employment and at regular intervals thereafter. The training shall address the following subject areas:

5.13.1. How to recognize the nature and symptoms of problem gambling behavior.

5.13.2. How to assist players in obtaining information about help for a gambling problem;

5.13.3. How to provide information about individual interactive gaming operator self-exclusion and Lottery statewide self-exclusion programs;

5.13.4. How to respond to patrons who may disclose that they have a gambling problem; and

5.13.5. How to respond to reports from third parties, such as family members, about patrons who may have a gambling problem.

5.14. Interactive gaming operators shall employ personnel responsible for the duties of an IT Department.

5.15. Each interactive gaming operator’s website shall display a responsible gaming logo in a manner approved by the Director, which shall direct a patron to the site's responsible gaming page. The responsible gaming page shall be accessible to a patron during a patron session and shall contain, at a minimum, the following:

5.15.1. A prominent message that states "If you or someone you know has a gambling problem and wants help, call 1-800-Gambler;"

5.15.2. A direct link to the Problem Gamblers Network of West Virginia;

5.15.3. A clear statement of the interactive gaming operator's or MSP’s policy and commitment to responsible gaming; and

5.15.4. The rules governing self-imposed responsible gaming limits, including the ability for the patron to establish those limits.

5.16. Interactive gaming operators or their MSP’s shall promptly notify all affected interactive gaming managers of any issues impacting the integrity of interactive gaming operations.

5.17. Each interactive gaming operator or MSP offering interactive gaming shall perform an Annual System Integrity and Security Assessment conducted by an independent professional. The selection of the independent professional shall be by the interactive gaming operator, subject to the approval of the Director. The first assessment should be completed within 90 days of commencing operations and annually thereafter. The independent professional shall timely submit the annual report on the Assessment to the Commission, which shall include:

5.17.1. Scope of review;

5.17.2. Name and company affiliation of the individual(s) who conducted the assessment;

5.17.3. Date of the assessment;

5.17.4. Findings;

5.17.5. Recommended corrective action, if applicable; and

5.17.6. Operator's response to the findings and recommended corrective action.

5.18. Each interactive gaming operator or MSP offering interactive gaming shall comply with all federal requirements including, but not limited to, suspicious activity reporting and W2-G reporting.

5.19. Patron account information shall not be retained by any management service provider, supplier, or third-party vendor after contract completion or termination without the express written consent of the interactive gaming operator.

5.20. At a minimum, interactive gaming operators and their MSPs shall adopt comprehensive house rules, which shall be approved by the APRIL 27, 2026 and which shall include the following:

5.20.1. A method of calculation and payment of winning wagers;

5.20.2. A method of notifying patrons of changes;

5.20.3. A method of contacting the operator for questions and complaints;

5.20.4. A description of prohibited participants; and

5.20.5. A method of funding a wager.

5.21. The house rules, together with any other information the Commission deems appropriate, shall be posted on its website, and included in the terms and conditions of a patron’s gaming account. Interactive gaming operators or their MSP’s shall make copies of the house rules readily available to patrons.

W. Va. Code R. § 179-10-6 Interactive gaming system requirements

6.1. Prior to operating an interactive gaming system pursuant to W.Va. Code §§29-22E-1 et seq., all equipment and software used in conjunction with the operation shall be submitted to an independent testing laboratory approved by the Commission or a testing laboratory operated in an accredited jurisdiction approved by the Commission.

6.2. All wagers on interactive gaming authorized by W.Va. Code §§29-22E-1 et seq., shall be initiated, received, and otherwise placed within the boundaries of the State of West Virginia unless otherwise permitted by the Commission in accordance with applicable federal and state laws. Consistent with the intent of the United States Congress as articulated in the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) set forth in 31 U.S.C. §§5361 through 5367, the intermediate routing of electronic data relating to a lawful intrastate wager in West Virginia shall not be a factor in determining the location or locations in which such wagers are initiated, received, or otherwise placed.

6.3. An interactive gaming system submission to a testing laboratory shall contain a description of the risk management framework, including but not limited to:

6.3.1. User access controls for all personnel;

6.3.2. Information regarding segregation of duties;

6.3.3. Information regarding automated risk-management procedures;

6.3.4. Information regarding fraud detection;

6.3.5. Controls ensuring regulatory compliance;

6.3.6. Description of Anti-Money Laundering compliance standards;

6.3.7. Description of all software applications that comprise the system;

6.3.8. Description of all types of games to be offered by the system;

6.3.9. Description of all integrated third party systems; and

6.3.10. Description of the method to prevent past posting.

6.4. An interactive gaming system shall maintain all transactional wagering data for a period of five years.

6.5. An interactive gaming system shall prevent past posting of wagers and the voiding or cancellation of wagers after the outcome of a game is determined.

6.6. In the event a patron has a pending interactive gaming wager and then self-excludes, the operator’s internal controls shall govern any cancellation or refund of the wager.

6.7. An interactive gaming system shall, at least once every 24 hours, perform an authentication process on all software used to offer, record, and process wagers to ensure there have been no unauthorized system modifications. In the event of an authentication failure, the operator’s Information Systems Officer (ISO) and the Director, or his or her designee, must be notified within 24 hours. The results of all authentication attempts shall be recorded by the system and maintained for a minimum period of 90 days.

6.8. An interactive gaming operator or MSP shall provide the Director, or his or her designee, with access to wagering transactions and related data as deemed necessary and in a manner approved by the Commission.

6.9. An interactive gaming system shall utilize sufficient security to ensure patron access is appropriately limited to the account holder. Unless otherwise authorized by the Commission, security measures shall include, at a minimum, the following:

6.9.1. A Username;

6.9.2. Password of sufficient length and complexity to ensure its effectiveness;

6.9.3. An option for users to choose "strong authentication" login protection upon account creation; and

6.9.4. Electronic notification to the patron's registered e-mail address, cellular phone, or other device each time an interactive gaming account is accessed with the option for a patron to opt out of such notification.

6.10. An interactive gaming system shall be designed with a methodology approved by the Commission to ensure secure communications between a patron device and the interactive gaming system.

6.11. An interactive gaming system shall be designed to detect and report:

6.11.1. Suspicious behavior, such as cheating, theft, embezzlement, collusion, money laundering, or any other illegal activities; and

6.11.2. Excluded persons or any person who is prohibited from entering a casino or a casino simulcasting facility.

6.12. Patron account access information shall not be permanently stored on patron devices used with an interactive gaming system. Such information shall be masked after entry and encrypted immediately after entry is complete. Patron account access information may be temporarily stored or buffered during patron entry, provided that the buffer is automatically cleared as follows:

6.12.1. After the patron confirms that the account access entry is complete; or

6.12.2. If the patron fails to complete the account access entry within five minutes.

6.13. Unless otherwise approved by the Commission, an interactive gaming system shall associate a patron's account with a single patron device during each patron session.

6.14. Each patron session shall have a unique identifier assigned by the interactive gaming system.

6.15. The interactive gaming system shall immediately terminate a patron session whenever:

6.15.1. Required by the Commission or interactive gaming operator or MSP; or

6.15.2. The patron ends a session.

6.16. Interactive gaming systems shall employ a mechanism that can detect and prevent any patron initiated wagering or withdrawal activity that would result in a negative balance of an interactive gaming account.

6.17. Interactive gaming systems shall disable a patron's account after three failed login attempts and require strong authentication to recover or reset a password or username.

6.18. Interactive gaming systems shall employ a mechanism that places an interactive gaming account in a suspended mode:

6.18.1. When requested by the patron for a specified period of time, which shall not be less than 72 hours;

6.18.2. When required by the Commission;

6.18.3. Upon a determination that a patron is a prohibited interactive gaming participant; or

6.18.4. When initiated by an interactive gaming operator or MSP who has evidence that indicates:

6.18.4.a. Illegal activity;

6.18.4.b. A negative patron account balance;

6.18.4.c. Failed ACH deposit attempts as provided for in subsection 7.5.2.; or

6.18.4.d. A violation of the terms and conditions.

6.19. When an interactive gaming account is in a suspended status, the interactive gaming system shall:

6.19.1. Prevent the patron from placing wagers;

6.19.2. Prevent the patron from depositing funds;

6.19.3. Prevent the patron from withdrawing funds from his or her interactive gaming account, unless the suspended status was initiated by the patron;

6.19.4. Prevent the patron from making changes to his or her interactive gaming account;

6.19.5. Prevent the removal of the interactive gaming account from the interactive gaming system; and

6.19.6. Prominently display to the patron that the account is in a suspended status, and notify the patron of the restrictions placed on the account, as well as any further course of action needed to remove the suspended status.

6.20. Unless the suspension was a result of a patron's self-exclusion, an interactive gaming operator or MSP shall also notify the interactive gaming account holder via electronic mail, regular mail, or other method approved by the Commission, whenever his or her account has been closed or placed in a suspended status. Such notification shall include the restrictions placed on the account and any further course of action needed to remove the restriction.

6.21. A suspended account may be restored:

6.21.1. Upon expiration of the time period established by the patron;

6.21.2. When permission is granted by the Director;

6.21.3. When the patron is no longer a prohibited person; or

6.21.4. When the interactive gaming operator or MSP has lifted the suspended status.

6.22. An interactive gaming system shall be capable of allowing a patron to establish responsible gaming limits. Any decrease in these limits shall be effective no later than the patron's next login. Any increase in these limits shall become effective only after expiration of the time period for the previous limit. The responsible gaming limits shall include:

6.22.1. A deposit limit offered on a daily, weekly, and monthly basis, which specifies the maximum amount of money a patron may deposit into his or her interactive gaming account during a particular period of time;

6.22.2. A spend limit offered on a daily, weekly, and monthly basis, which specifies the maximum amount of patron deposits that may be put at risk during a particular period of time; and

6.22.3. A time-based limit offered on a daily basis, which specifies the maximum amount of time, measured hourly from the patron's login to log off, that a patron may spend playing on an interactive gaming system, provided that if the time-based limit is reached, a patron shall be permitted to complete any round of play, or active or prepaid tournament.

6.23. A monthly report listing the total sum removed from patron accounts shall be filed with the Commission by each interactive gaming operator or its MSP. An interactive gaming operator or its MSP shall not remove or withdraw any funds from a patron's interactive gaming account unless:

6.23.1. The patron has a confirmed chargeback, in which case the removal of funds shall be limited to the amount of the chargeback;

6.23.2. The patron has engaged in cheating, collusion, chip dumping, or other illegal gaming activity;

6.23.3. By order of a court of competent jurisdiction; or

6.23.4. As otherwise approved by the Commission.

6.24. An interactive gaming system shall provide a patron with the ability to view the game outcome and subsequent account balance changes from the previous game, including a game completed subsequent to an outage such as a network disconnection or patron device malfunction.

6.25. Unless otherwise approved by the Commission, a record of all bonus and promotional i-Gaming offers related to interactive gaming shall be maintained in an electronic file that is readily available to the Commission. All bonus and promotional i-Gaming offers shall be stated in clear and unambiguous terms and shall be readily available to the patron after the offer is accepted and prior to completion of participation. Offer terms and the record of all offers shall include at a minimum:

6.25.1. The date and time presented;

6.25.2. The date and time the offer is active and expires;

6.25.3. Patron eligibility, including any limitations on patron participation;

6.25.4. Any restriction on withdrawals of funds;

6.25.5. Wagering requirements and limitations by type of game;

6.25.6. The order in which funds are used for wagers;

6.25.7. Eligible games; and

6.25.8. Rules regarding cancellation.

6.26. An interactive gaming system shall provide a clear and conspicuous method for a patron to cancel his or her participation in a bonus or promotional i-Gaming offer that utilizes restricted gaming credits. If the patron elects to proceed with cancellation, unrestricted funds remaining in a patron's interactive gaming account shall be returned according to the terms and conditions.

6.27. Once a patron has met the terms of a bonus or promotional i-Gaming offer, the interactive gaming operator or MSP shall not cap or limit winnings earned while participating in the offer.

6.28. Manual adjustments to interactive gaming data by an interactive gaming operator or MSP shall only be made by a software application approved by the Commission.

6.29. When a patron's lifetime deposits exceed the gaming deposit threshold established by the Commission, the interactive gaming system shall immediately prevent any interactive game play until the patron acknowledges the following:

6.29.1. The patron has met the gaming deposit threshold as established by the Commission;

6.29.2. The patron has the capability to establish responsible gaming limits or close his or her account; and 6.29.3 The availability of 1-800-GAMBLER.

6.30. The acknowledgement prescribed in 6.29.2 and 6.29.3 above shall be required on an annual basis thereafter.

6.31. Interactive gaming operators or MSP’s may utilize celebrity or other players to participate in peer-to-peer games for advertising or publicity purposes. Such players may have their accounts funded in whole or in part by an interactive gaming operator or MSP. An interactive gaming operator or MSP may pay a fee to the celebrity player. If a celebrity player is utilized and the celebrity player generates winnings that the interactive gaming operator or MSP does not permit the celebrity player to retain, such winnings shall be included as interactive gaming gross revenue in a manner approved by the Director.

W. Va. Code R. § 179-10-7 Patron Wagers

7.1. Prior to engaging in interactive gaming, a patron shall establish an interactive gaming account. Casino key employees and occupational licensees and employees of any management service provider or supplier, shall not be permitted to establish an interactive gaming account, with and are prohibited from wagering on, any interactive gaming system operated by the casino with which they are employed or provide services. Commission employees shall not be permitted to wager on any interactive gaming system authorized in the State of West Virginia and shall not be permitted to establish an interactive gaming account with the exception of accounts used for testing purposes. All testing accounts for West Virginia Lottery employees must be approved by the Director. The Director reserves the right to prohibit the acceptance of wagers, order the cancellation of wagers, and require refunds on any interactive game for which wagering would be contrary to the public policies of the State of West Virginia.

7.2. In order to establish an interactive gaming account, an interactive gaming operator or its MSP shall:

7.2.1. Create an electronic patron file, which, at a minimum, shall include:

7.2.1.a. The patron's legal name;

7.2.1.b. The patron's date of birth;

7.2.1.c. The entire or last four digits of the patron's Social Security number, if voluntarily provided or the equivalent for a foreign patron such as a passport or taxpayer identification number;

7.2.1.d. The patron's interactive account number;

7.2.1.e. The patron's residential address (a post office box is not acceptable);

7.2.1.f. The patron's electronic mail address;

7.2.1.g. The patron's telephone number;

7.2.1.h. Any other information collected from the patron used to verify his or her identity;

7.2.1.i. The method used to verify the patron's identity; and

7.2.1.j. The date of verification.

7.2.2. Encrypt all information contained in an electronic patron file including the following:

7.2.2.a. The patron's Social Security number or the equivalent for a foreign patron such as a passport or taxpayer identification number;

7.2.2.b. The patron's password and/or personal identification number or PIN; and

7.2.2.c. Any credit card numbers, bank account numbers, or other personal financial information.

7.2.3. Verify the patron's identity in accordance with methodology for remote multi-sourced authentication, which may include third party and governmental databases, as approved by the Commission;

7.2.4. Require the patron to establish a password or other access security feature as approved by the Commission and advise the patron of the ability to utilize "strong authentication" login protection;

7.2.5. Verify that the patron is 21 years of age, not self-excluded, on an exclusion list, or otherwise prohibited from participation in interactive gaming;

7.2.6. Record the patron's acceptance of the interactive gaming operator’s or MSP’s terms and conditions to participate in interactive gaming;

7.2.7. Record the patron's certification that the information provided to the operator or MSP by the patron who registered is accurate;

7.2.8. Record the patron's acknowledgement that the legal age for interactive gaming is 21years of age or older and that he or she is prohibited from allowing any other person to access or use his or her interactive gaming account; and

7.2.9. Notify the patron of the establishment of the account via electronic mail or regular mail.

7.3. A patron shall have only one interactive gaming account for each interactive gaming MSP. Each interactive gaming account shall be:

7.3.1. Non-transferable;

7.3.2. Unique to the patron who establishes the account; and

7.3.3. Distinct from any other account number that the patron may have established with the operator.

7.4. A patron's interactive gaming account may be funded through the use of:

7.4.1. A patron's deposit account;

7.4.2. A patron's credit or debit card;

7.4.3. A patron's deposit of cash, gaming chips, or slot tokens at a cashiering location approved by the Commission;

7.4.4. A patron's reloadable prepaid card, which has been verified as being issued to the patron and is non-transferable;

7.4.5. Cash complementaries, promotional credits, or bonus credits;

7.4.6. Winnings;

7.4.7. Adjustments made by the Operator and/or MSP with documented notification to the patron;

7.4.8. ACH transfer, provided that the operator has security measures and controls to prevent ACH fraud pursuant to 7.5 below; or

7.4.9. Any other means approved by the Director.

7.5. A failed ACH deposit attempt shall not be considered fraudulent if the patron has successfully deposited funds via an ACH transfer on a previous occasion with no outstanding chargebacks. Otherwise, the operator shall:

7.5.1. Temporarily block the patron's account for investigation of fraud after five consecutive failed ACH deposit attempts within a 10 minute time period. If there is no evidence of fraud, the block may be removed; and

7.5.2. Suspend the patron's account after five additional consecutive failed ACH deposit attempts within a 10-minute period.

7.6. Prior to any withdrawal, if a patron used a credit or debit card to fund an interactive gaming account, within the preceding ninety (90) days, any remaining balance in the account up to the amount of the deposit shall be refunded to the patron's credit or debit card account used to fund the interactive gaming account provided that a credit or debit card issuer permits the return of a withdrawal from an interactive gaming account funded by the credit or debit card of the issuer.

7.7. Funds may be withdrawn from a patron's interactive gaming account for the following reasons:

7.7.1. The funding of game play;

7.7.2. A cash-out, regardless of the deposit method used, at the cashier's cage;

7.7.3. A cash-out transfer to a patron's deposit account;

7.7.4. A cash-out transfer to a patron's reloadable prepaid cash card, which has been verified as being issued to the patron and is non-transferable;

7.7.5. Adjustments made by the interactive gaming operator or MSP with documented notification to the patron;

7.7.6. A cash-out transfer directly to the patron's individual account with a bank or other financial institution (banking account) provided that the licensee verifies the validity of the account with the financial institution; or

7.7.7. Any other means approved by the Director.

7.8. An interactive gaming operator or MSP shall not permit a patron to transfer funds to another patron.

7.9. All adjustments to patron accounts, for amounts of $500.00 or under, shall be periodically reviewed by supervisory personnel as set forth in the licensee's internal controls. All other adjustments shall be authorized by supervisory personnel prior to being entered.

7.10. Interactive gaming systems shall provide an account statement with account details to a patron on demand, which shall include detailed account activity for at least the six months preceding 24 hours prior to the request. In addition, an interactive gaming system shall, upon request, be capable of providing a summary statement of all patron activity during the past year. Information to be provided on the summary statement shall include, at a minimum, the following:

7.10.1. Deposits to the interactive gaming account;

7.10.2. Withdrawals from the interactive gaming account;

7.10.3. Win or loss statistics;

7.10.4. Beginning and ending account balances; and

7.10.5. Self-imposed responsible gaming limits history, if applicable.

7.11. An operator shall maintain a West Virginia bank account separate from all other operating accounts to ensure the security of funds held in patron interactive gaming accounts. The balance maintained in this account shall be greater than or equal to the sum of the daily ending cashable balance of all patron interactive gaming accounts, funds on game, and pending withdrawals. An operator shall have unfettered access to all patron interactive gaming account and transaction data to ensure the amount held in its independent account is sufficient. If an interactive gaming operator offers both sports wagering and interactive gaming and share a wallet, the interactive gaming operator may use one West Virginia Bank account to cover all patron liability for sports wagering and interactive gaming. The casino controller or his or her designee shall file a monthly attestation with the Commission that the funds have been safeguarded pursuant to this section.

7.12. Patron funds held in an interactive gaming account shall not be automatically transferred by an operator or MSP, nor shall an operator or MSP be permitted to require a patron to transfer funds from his or her interactive gaming account in order to circumvent the requirements of 7.11 above.

7.13. An operator shall periodically re-verify a patron's identification upon reasonable suspicion that the patron's identification has been compromised.

7.14. An interactive gaming system shall provide a conspicuous and readily accessible method for a patron to close his or her account through an account management or similar page. Any balance remaining in a patron's interactive gaming account closed by a patron shall be refunded pursuant to the licensee's internal controls.

7.15. An interactive gaming account shall be considered a dormant account if there is no patron initiated activity for a period of sixteen (16) months. The interactive gaming operator or MSP must comply with W.Va. Code Chapter 36, Article 8 of the Uniform Unclaimed Property Act of West Virginia in the closing and refunding of the account balance.

W. Va. Code R. § 179-10-8 Server-based gaming system; server-based games (table games, slot machines, and peer-to-peer gaming)

8.1. A server-based gaming system shall:

8.1.1. Comply with W.Va. Code 29-22E -1 et seq.;

8.1.2. Ensure continued operation in the event of a temporary power failure through the use of an Uninterruptable Power Supply (UPS);

8.1.3. Maintain the integrity of the hardware, software, and data contained in the server-based gaming system in the event of a shutdown;

8.1.4. Ensure that the system recovers to its prior state before any system outage;

8.1.5. Have physical and logical controls, as appropriate, to ensure that only authorized hardware components are connected to the system;

8.1.6. Ensure only approved patron device software is used to conduct gaming activity;

8.1.7. Ensure that patron devices meet minimum compatibility requirements in order to conduct gaming activity; and

8.1.8. Be designed with a method for the Commission to approve all game software installations before the game software may be offered to patrons.

8.2. Any software used in server-based gaming shall be designed with a method to permit the validation of software by creating hash signatures of critical programs to ensure that the critical programs are not modified subsequent to Commission approval, or any other method approved by the Commission.

8.3. A server-based gaming system shall perform an authentication process on all control programs on demand and at least once every 24 hours.

8.4. Server-based gaming systems shall provide a mechanism to notify the operator whenever an authentication process has failed. The operator shall immediately cease operation of the software and immediately notify the Commission.

8.5. A server-based gaming system shall be designed with a methodology approved by the Commission to ensure secure communications between a patron device and a server-based gaming system.

8.6. A server-based gaming system shall be designed with a method to identify automatically potential collusion or cheating activity and shall provide a method for a patron to report such activity to the interactive gaming operator or MSP.

8.7. Server-based gaming systems shall provide a patron with the ability to view the game outcome and subsequent account balance changes for the previous game including a game completed subsequent to an outage such as a network disconnection or client device malfunction.

8.8. The following information shall be readily available through a patron device before a patron begins play on an interactive gaming system and at all times during play, where applicable:

8.8.1. Sufficient information to identify the specific game selected;

8.8.2. Game play and payout rules, which shall not rely on sound to convey their meaning; and

8.8.3. All charges imposed on patrons, such as fees, rake, and vigorish.

8.9. Game play shall be initiated only after a patron has affirmatively placed a wager and activated play. No auto play feature shall be permitted in game software unless authorized by the Commission.

8.10. Unless otherwise authorized by the Commission, all server-based table games shall:

8.10.1. Function as approved by the Commission pursuant to the software submission process;

8.10.2. Conspicuously indicate minimum and maximum wagers; and

8.10.3. Contain help screens that provide information and rules regarding approved variations, such as the number of decks used, special odds, and supplemental wagers.

8.11. Server-based table games may be designed to permit a patron to occupy more than one betting position at an individual game, provided that same option is available in its authorized non-electronic version.

8.12. Server-based games shall operate in accordance with rules submitted to and approved by the Commission, which shall describe procedures in case of patron disconnection from the network server during a game in accordance with the following:

8.12.1. Where no patron input is required to complete the game, the game shall produce the final outcome as determined by the RNG, and the patron's account shall be updated accordingly;

8.12.2. For single patron games, in which patron input is required to complete the game, the game shall:

8.12.2.a. Upon subsequent activation, return the patron to the game state immediately prior to the interruption and allow the patron to complete the game. All wagers pending disposition shall be held in a pending wager account; or

8.12.2.b. After an approved period of time, cancel the game resulting in either the forfeiture of the patron's wager or the return of funds to the patron in accordance with a methodology approved by the Director; or

8.12.2.c. Make a selection on behalf of the patron in order to complete the game.

8.12.3. For games with multiple patrons, where the result is affected by the time to respond to a game event, such as poker or blackjack, the game shall, after an approved period of time, make a selection on behalf of the patron in order to complete the game.

8.13. Unless otherwise authorized by the Commission, server-based table game software used to conduct peer-to-peer gaming, such as poker, shall:

8.13.1. Be prohibited from utilizing automated computerized patrons to compete with patrons; and

8.13.2. Provide a patron with the option to be randomly assigned to a table where all patrons have been selected at random.

8.14. Unless otherwise authorized by the Commission, server-based table games with multiple patrons, where the result is affected by the time to respond to a game event, such as poker or blackjack, shall be designed with a game recall feature, which allows the patron to recall the last five game outcomes and associated wagers. The game recall information shall be viewable from the patron device.

8.15. A server-based gaming system, utilizing a data warehouse approved by the Director, shall be designed to transmit securely a copy of all transactions received from a server-based gaming system's primary interactive gaming equipment to the data warehouse. The data stored in the data warehouse shall be owned by the interactive gaming operator.

8.16. One or more interactive gaming operators or MSP’s may, with prior approval of the Commission, participate in an interactive gaming network in accordance with a written agreement that has been executed by each interactive gaming operator. The agreement shall:

8.16.1. Designate the party responsible for the operation and administration of the network;

8.16.2. Identify and describe the role, authority, and responsibilities of each participating interactive gaming operator and, if applicable, any third-party network provider;

8.16.3. Include a description of the process by which significant decisions that affect the operation of the network are approved and implemented by each operator; and

8.16.4. Allocate the interactive gaming gross revenue and tax liability between the participating interactive gaming operators to ensure the accurate reporting thereof.

8.17. Each party to an agreement to participate in an interactive gaming network as set forth in section 8.16 above shall be jointly and severally liable for any acts or omissions in violation of the West Virginia Lottery Interactive Wagering Act (the Act), these rules, or the policies of the Commission.

8.18. An interactive gaming operator or MSP may conduct an interactive gaming tournament for any game approved by the Commission. No interactive gaming tournament shall be conducted unless the interactive gaming operator or MSP, prior to the first time a tournament type is offered, files a written notice with the Director of its intent to offer such a tournament and subsequently obtains written approval from the Director or designee. Each interactive gaming operator or MSP shall have internal controls for each tournament type on file with the Commission, which shall address at a minimum:

8.18.1. Game type (for example, hold 'em poker);

8.18.2. Rules concerning tournament play and participation;

8.18.3. Entry fee amount(s) per participant;

8.18.4. Funding source amount(s) comprising the prize pool (for example, buy-ins, re-buys, or add-ons);

8.18.5. Prize structure on payout; and

8.18.6. Methodology for determining winner(s).

8.19. Wireless communication between the patron device and the server-based gaming system must be encrypted in transit using a method (for example, AES, IPsec or WPA2) approved by the Commission.

8.20. A server-based gaming system must mask the service set identification (SSID) of the i-Gaming network to ensure it is unavailable to the general public.

8.21. An internal clock that reflects the current date and time must be utilized in the server-based gaming system, with all servers synchronized to that source. The date and time must be visible to the patron when logged on.

8.22. All documentation related to software and application development should be available for Commission inspection and retained for the duration of its life cycle and for seven (7) years thereafter.

8.23. A server-based gaming system must be developed to minimize the loss of data when a system shuts down. Operational control must be promptly restored according to the recovery procedures defined in the MICS of the operator or MSP.

8.24. A server-based gaming system must have the ability to restore the system from the last backup.

8.25. A server-based gaming system must be able to recover all critical information from the time of the last backup to the point in time at which the system failure or reset occurred.

W. Va. Code R. § 179-10-9 Table game simulcasting

9.1. An operator shall obtain Commission approval to simulcast authorized table games.

9.2. Table game simulcasting shall utilize a simulcast control server for the purpose of recording all wagering activity and game results. The simulcast control server shall:

9.2.1. Provide the patron with real-time visual access to the live game being played;

9.2.2. Prevent anyone from accessing the game outcome prior to finalizing a wager;

9.2.3. Record dealer-verified game results before posting; and

9.2.4. Be equipped with a mechanism to void game results, if necessary.

9.3. Table games simulcasting shall include the installation and maintenance of security and surveillance equipment, including closed circuit television equipment, according to specifications approved by the Commission. The Commission shall have direct access to the system and its transmissions. An interactive gaming operator shall submit a surveillance plan for Commission approval prior to accepting wagers.

9.4. Information about wagering to be conducted during table game simulcasting shall be provided to a patron in real time and shall include all game play information that would normally be available from the table game equivalent. Such information shall include at a minimum:

9.4.1. The table number and location;

9.4.2. The table minimum and maximum wagers;

9.4.3. The number of decks used, if applicable;

9.4.4. Dealer actions, if applicable;

9.4.5. The amount wagered;

9.4.6. The game outcome;

9.4.7. Vigorish amount, if applicable;

9.4.8. Payout odds, where applicable; and

9.4.9. The amount won or lost.

9.5. The following information shall be readily available through the patron device before a patron begins play on a simulcast table game and at all times during play, where applicable:

9.5.1. Sufficient information to identify the specific game selected;

9.5.2. Game play and payout rules, which shall not rely on sound to convey their meaning; and

9.5.3. All charges imposed on the patron, such as fees and vigorish, when applicable.

W. Va. Code R. § 179-10-10 Mandatory interactive gaming system logging

10.1. Interactive gaming systems shall employ a mechanism capable of maintaining a separate copy of all of the information required to be logged in this section on a separate and independent logging device capable of being administered by an employee with no responsibility for gaming systems. If the interactive gaming system can be configured such that any logged data is contained in a secure transaction file, a separate logging device is not required.

10.2. Interactive gaming systems shall provide a mechanism for the Director to query and export, in a format required by the Director, all gaming system data.

10.3. Interactive gaming systems shall electronically log the date and time anytime an interactive gaming account is created or terminated (Account Creation Log).

10.4. An interactive gaming system shall maintain all information necessary to recreate patron game play and account activity during each patron session, including any identity or location verifications, for a period of no less than five (5) years.

10.5. Unless otherwise authorized by the Commission, when software is installed on or removed from an interactive gaming system, such action shall be recorded in a secure electronic log (Software Installation/Removal Log), which shall include:

10.5.1. The date and time of the action;

10.5.2. The identification of the software;

10.5.3. The software hash signature; and

10.5.4. The identity of the person performing the action.

10.6. Unless otherwise authorized by the Commission, when a change in the availability of game software is made on an interactive gaming system, the change shall be recorded in a secure electronic log (Game Availability Log), which shall include:

10.6.1. The date and time of the change;

10.6.2. The identification of the software;

10.6.3. The software hash signature; and

10.6.4. The identity of the person performing the change.

10.7. Unless otherwise exempted by the Commission, an interactive gaming system shall record all promotional offers (Promotions Log) issued through the system. Such log shall provide the information necessary to audit compliance with the terms and conditions of current and previous offers.

10.8. Results of all software authentication attempts shall be retained in an electronic log (Authentication Log) and accessible for a period of 90 days.

10.9. All adjustments to interactive gaming system data made using stored procedures shall be recorded in an electronic log (Adjustments Log), which lists:

10.9.1. The date and time of the adjustment;

10.9.2. The identification and user ID of person making the adjustment;

10.9.3. A description of the adjustment needed; and

10.9.4. The initial and final values of any data altered as a part of the adjustment made.

W. Va. Code R. § 179-10-11 Required reports; reconciliation; test accounts

11.1. The interactive gaming system shall be designed to generate the reports required by this section in a format approved by the Commission's Security Division.

11.2. All required reports shall be generated by the interactive gaming system, even if the period specified contains no data to be presented. The report generated shall indicate all required information and contain an indication of "No Activity" or similar message if no data appears for the period specified.

11.3. Interactive gaming systems shall provide a mechanism to export the data generated for any report to a format approved by the Commission.

11.4. An interactive gaming system shall generate the following daily reports, at a minimum, for each gaming day in order to calculate the taxable revenue or to ensure the integrity of operations:

11.4.1. A Patron Account Summary Report, which shall include transaction information for each patron account as follows:

11.4.1.a. Beginning balance;

11.4.1.b. Total amount of deposits;

11.4.1.c. Total amount of non-cashable bonuses deposited;

11.4.1.d. Total amount of non-cashable bonuses wagered;

11.4.1.e. Total amount of non-cashable bonuses expired;

11.4.1.f. Total amount of transfers to games;

11.4.1.g. Total amount of transfers from games;

11.4.1.h. Total amount of withdrawals;

11.4.1.i. Total amount of funds on game at the beginning of the gaming day (the amount of pending wagers at the end of the prior gaming day);

11.4.1.j. Total amount of funds on game at the end of the gaming day (the amount of pending wagers plus funds transferred to a game but not yet wagered);

11.4.1.k. Patron win or loss, calculated as the amount of transfers from games and ending funds on game less the amount of transfers to games and beginning funds on game;

11.4.1.l. Ending balance; and

11.4.1.m. Total amount of adjustments;

11.4.2. A Wagering Summary Report, which shall include the following by an authorized interactive game and poker variation, as applicable:

11.4.2.a. Total amount wagered;

11.4.2.b. Total amount won;

11.4.2.c. Total tournament entry or participation fees;

11.4.2.d. Rake or vigorish;

11.4.2.e. Total amount of guaranteed funds paid to players;

11.4.2.f. Total amounts due to or from an interactive gaming network; and

11.4.2.g. Win or loss calculated as the net of the total amount wagered and total amount won plus tournament entry fees, rake or vigorish, guaranteed funds, and amount due to or from an interactive gaming network.

11.4.3. A Non-cashable Promotional Account Balance Report, which shall include the ending non-cashable promotional balance in each patron account; and

11.4.4. A Forfeited Bonus Winnings Report, which shall include, by patron, the amount of winnings removed from a patron's account upon the expiration, cancellation, or forfeiture of a bonus.

11.5. An interactive gaming network shall generate the following daily reports for each participating casino operator, at a minimum, for each gaming day in order to reconcile the daily interactive gross gaming revenue:

11.5.1. A Network Patron Account Summary Report, which shall include the following transaction information for each patron account:

11.5.1.a. Patron identification number;

11.5.1.b. Total amount of transfers to games;

11.5.1.c. Total amount of transfers from games;

11.5.1.d. Win or loss statistics;

11.5.1.e. Total amount of rake; and

11.5.1.f. Total amount of entry fees; and

11.5.2. A Network Wagering Summary Report, which shall include the following game activity by authorized interactive game or poker variation:

11.5.2.a. Total amounts wagered;

11.5.2.b. Total amounts won;

11.5.2.c. Total tournament entry or participation fees;

11.5.2.d. Rake or vigorish;

11.5.2.e. Total amounts of guaranteed funds paid to players; and

11.5.2.f. Win or loss statistics, calculated as the net of the total amounts wagered and total amounts won plus tournament entry fees, rake, or vigorish, and guaranteed funds.

11.6. An operator shall utilize the Wagering Summary Report to calculate interactive gaming gross revenue on a daily basis for reporting purposes. In addition, the operator shall:

11.6.1. Prepare a Variance Report documenting the win/loss amounts from the Patron Account and Wagering Summary Reports;

11.6.2. Calculate the variance between the two amounts;

11.6.3. Document the reason for the variance; and

11.6.4. Report a manual adjustment to increase revenue by the amount of the variance whenever the total of the Patron Account Summary Report is greater than the total of the Wagering Summary Report, unless the reason for the variance as documented in 11.6.3. above is sufficient to support a determination that revenue was properly reported.

11.7. In lieu of section 11.6 above, a licensee may accumulate the daily Variance Report information on a monthly Variance Report in a manner described in its internal controls.

11.8. A gaming system shall generate the following reports related to dormant accounts on a daily basis:

11.8.1. Commencing 16 months after the creation of the first interactive gaming account, a Dormant Account Report, which shall list all patron accounts including the Pending Wager Account that have had no activity for a period of 16 months. The report shall include, at a minimum:

11.8.1.a. The patron name and account number;

11.8.1.b. The date of the last successful patron login;

11.8.1.c. The account balance; and

11.8.1.d. The gaming date; and

11.8.2. A Dormant Funds Report, which shall include:

11.8.2.a. The patron name and account number;

11.8.2.b. The date of the last successful patron login;

11.8.2.c. The account balance subject to W.Va. Code Chapter 36, Article 8 (Uniform Unclaimed Property Act); and

11.8.2.d. The gaming date.

11.9. No voids of completed wagering transactions shall occur without Director approval.

11.10. An interactive gaming system shall generate a Performance Report, which compares the theoretical Return to Patron (RTP) to the actual RTP of each game offered by that gaming system. The report shall also provide the total number of rounds of play for each game and shall be generated and reviewed monthly by the interactive gaming operator or MSP to evaluate the performance of all games offered to the public. The Performance Report shall include the data required by this section from the first day interactive gaming was offered to the date of the report.

11.11. An interactive gaming system shall generate a Patron Account Adjustments Report, which shall be reviewed on a daily basis by either the interactive gaming operator or MSP to evaluate the legitimacy of patron account adjustments. If the daily review is performed by the MSP, the interactive gaming operator shall conduct a weekly review of the Patron Account Adjustment Reports. Unless otherwise authorized by the Commission, the report shall at a minimum include:

11.11.1. The patron's name;

11.11.2. An account number;

11.11.3. The date and time of the adjustment;

11.11.4. The person who performed the adjustment;

11.11.5. The reason for the adjustment; and

11.11.6. The amount of the adjustment.

11.12. An interactive gaming system shall generate a report on a weekly basis identifying problem gamblers, including those patrons who self-report. The interactive gaming operator or its MSP shall review the report and document any action taken.

11.13. An interactive gaming system shall be capable of generating a Pending Transaction Report, which shall include and separately itemize:

11.13.1. Funds on game transactions; and

11.13.2. Deposits and withdrawals not yet cleared.

11.14. On a monthly basis, the interactive gaming operator or its MSP shall submit to the Commission a copy of the West Virginia bank statement and patron liability report that reflects the balance of the restricted account maintained to protect patron funds.

11.15. Interactive gaming operators or their MSP’s shall establish test accounts to be used to test the various components and operation of an interactive gaming system in accordance with their internal controls approved by the Commission. The internal controls shall, at a minimum, address the following:

11.15.1. The procedures for the issuance of funds used for testing, including the identification of who is authorized to issue the funds and the maximum amount of funds that may be issued;

11.15.2. The procedures for assigning each test account for use by only one person;

11.15.3. The maintenance of a record for all test accounts, to include when they are active, to whom they are issued, and the employer of the person(s) to whom they are issued;

11.15.4. The procedures for the auditing of testing activity by the interactive gaming operator or its MSP to ensure the accountability of funds used for testing and proper adjustments to interactive gross revenue; and

11.15.5. The procedures for authorizing and auditing out-of-state test activity.

11.16. Peer-to-peer games may be tested by a user with multiple test accounts provided that no patrons are involved in game play.

W. Va. Code R. § 179-10-12 Progressive jackpots

12.1. An interactive gaming system may offer a progressive jackpot that increases in value based upon an approved rate of progression and is awarded for a specific outcome or event.

12.2. The rules governing the award and the value of the progressive award shall be readily available to the patrons.

12.3. Progressive jackpot software must be approved by the Commission. The submission for Commission approval of progressive jackpot software to be used on an interactive gaming system shall include the following:

12.3.1. A description of the software controlling the interactive progressive jackpot;

12.3.2. A mechanism to authenticate the software; and

12.3.3. Rules that will be displayed to the patron that apply to the progressive jackpot.

12.4. Prior to offering, modifying, or transferring a progressive jackpot on software approved by the Commission pursuant to 12.3 above, an operator shall submit a form in a format prescribed by the Commission.

W. Va. Code R. § 179-10-13 Geolocation requirement

13.1. In order to prevent unauthorized use of an interactive gaming system to place a wager when a patron is not within the boundaries of the State of West Virginia, the interactive gaming operator or its MSP must utilize a geolocation system to reasonably detect the physical location of a patron attempting to access the interactive gaming system and place a wager and to monitor and block unauthorized attempts to access the interactive gaming system in order to place a wager when the patron is not within the boundaries of the State of West Virginia.

13.2. The geolocation system shall ensure that any patron is located within the boundaries of the State of West Virginia when placing any wager and shall be equipped to dynamically monitor the patron’s location and block unauthorized attempts to access the interactive gaming system in order to place a wager throughout the duration of the patron session.

13.3. The Commission shall approve technical specifications for geolocation systems and any specific requirements related to geolocation as part of its MICS.

W. Va. Code R. § 179-10-14 Remote gaming systems (RGS)

14.1. Each RGS that provides game content to an authorized interactive gaming operator or MSP shall:

14.1.1. Maintain internal controls for all aspects of gaming operations prior to implementation and prior to the time any subsequent change is made. The internal controls shall include detailed procedures for system security, operations, and accounting;

14.1.2. Maintain internal controls approved by the Commission;

At a minimum, employ personnel responsible for:

14.1.3.a. The duties of an IT Department;

14.1.3.b. The operation and integrity of interactive gaming;

14.1.3.c. The review of all reports of suspicious behavior; and

14.1.3.d. Ensuring compliance with standards and controls Perform an annual system integrity and security assessment conducted by an independent professional selected by the operator, subject to the approval of the Commission. The independent professional's report on the assessment shall be submitted to the Commission annually.

Install and utilize primary and backup gaming equipment in a restricted area within the boundaries of the State of West Virginia; and Provide the Director with physical and logical access to the RGS to review and collect all data contained therein.

14.2. An RGS may only offer interactive games to an operator that are approved by the Commission. An RGS shall notify the applicable interactive gaming operator(s) and the Commission when a game is disabled, regardless of the reason.

14.3. An RGS shall only void games through a procedure agreed upon between the RGS and affected interactive gaming operator(s) or after being noticed of the need for a void by the interactive gaming operator.

14.4. Each RGS shall respond to the interactive gaming operator(s) for any issue received related to a patron or other game issue with a resolution within three calendar days.

14.5. Any feature that allows a user to manually input or override any game transaction shall be submitted to the Commission for approval prior to use.

14.6. Each RGS shall monitor for and immediately report to the appropriate interactive gaming operator(s) and the Commission any malfunction or security incident that adversely affects the integrity of critical data or system functionality.

14.7. Each RGS shall obtain approval from the Commission for the use of a Content Delivery Network (CDN) prior to implementation or implementation of a change to an approved CDN.

14.8. Each RGS shall generate and distribute to each operator and the Commission the following reports in order to verify the taxable revenue reported:

14.8.1. Game Summary Report, which shall be generated on a daily basis for each licensed gaming facility and shall include the following for all completed transactions for each interactive game:

14.8.1.a. Interactive gaming authorized site name;

14.8.1.b. Interactive game name;

14.8.1.c. Total number of transactions;

14.8.1.d. Total amount wagered;

14.8.1.e. Total amount paid out; and

14.8.1.f. Total win/loss.

14.8.2. Pending Transaction Report, which shall be generated on a monthly basis and separately itemize all outstanding pending transactions for each interactive gaming authorized site. The Pending Transaction Report shall include the following:

14.8.2.a. Interactive gaming authorized site name;

14.8.2.b. Interactive game name;

14.8.2.c. Transaction date and time;

14.8.2.d. Transaction identifier;

14.8.2.e. Unique patron identifier;

14.8.2.f. Status;

14.8.2.g. Amount of the wager; and

14.8.2.h. Amount of the win, if known.

14.8.3. Void Transaction Report, which shall be generated on a daily basis and separately itemize all voided transactions for each interactive gaming authorized site. The Void Transaction Report shall include the following:

14.8.3.a. Interactive gaming authorized site name;

14.8.3.b. Interactive game name;

14.8.3.c. Transaction start date and time;

14.8.3.d. Transaction end date and time;

14.8.3.e. Transaction identifier;

14.8.3.f. Unique patron identifier;

14.8.3.g. Amount of the wager;

14.8.3.h. Amount of the win, if known;

14.8.3.i. Name of the employee or automated process performing the void; and

14.8.3.j. Reason for the void.

W. Va. Code R. § 179-10-15 Physical and environment controls for equipment

15.1. An interactive gaming system and its associated communications systems must be located in facilities that provide physical protection against damage from fire, flood, hurricane, earthquake, and other forms of natural or manmade disaster by utilizing and implementing, at a minimum, the following measures:

15.1.1. Security perimeters (barriers such as walls, card-controlled entry gates or manned reception desks) must be used to protect areas that contain interactive gaming systems components.

15.1.2. Protection of secure areas by appropriate entry controls to ensure that access is restricted to authorized personnel only;

15.1.3. Record of all access in a secure log that is available for inspection by Director;

15.1.4. An intrusion detection system in secure areas. Attempts at unauthorized access must be logged;

15.1.5. Locate interactive gaming servers in server rooms that prohibit unauthorized access;

15.1.6. House interactive gaming servers in racks located within a secure area;

15.1.7. Interactive gaming system components shall include all of the following minimum utility support:

15.1.7.a. Adequate power;

15.1.7.b. Uninterruptible power to support operations in the event of a power failure;

15.1.7.c. Adequate cooling for the equipment housed in the server room;

15.1.7.d. Protection from interception of communications or damage for power and telecommunications cabling carrying data or supporting information services; and

15.1.7.e. Adequate fire protection for the interactive gaming system components housed in the server room.

W. Va. Code R. § 179-10-16 Access to equipment

16.1. The interactive gaming operator or MSP shall limit and control access to the primary servers and any secondary servers by ensuring all of the following controls are implemented:

16.1.1. Maintain access codes and other computer security controls;

16.1.2. Maintain logs of user access, security incidents, and unusual events;

16.1.3. Coordinate and develop an education and training program on information security and privacy matters for employees and other authorized users;

16.1.4. Ensure compliance with all state and federal information security policies and rules;

16.1.5. Prepare and maintain security-related reports and data;

16.1.6. Develop and implement an incident reporting and response system to address security breaches and policy violations; and

16.1.7. Develop and implement an ongoing risk assessment program that targets information security and privacy matters by identifying methods for vulnerability detection and remediation.

16.2. Remote access to an interactive gaming system is only permitted as follows:

16.2.1. For the Director upon request and without limitation;

16.2.2. For testing purposes with prior approval and as limited by the Director; and,

16.2.3. By employees of an interactive gaming license holder with prior approval from and as limited by the Director.

16.3. All interactive gaming systems must be available for independent testing as directed by the Commission without limitation.

W. Va. Code R. § 179-10-17 Security Requirements

17.1. Networks should be logically separated so that there should be no network traffic on a network link that cannot be serviced by hosts on that link.

17.2. Networks must meet all of the following requirements to assure security:

17.2.1. The failure of any single item should not result in denial of service;

17.2.2. An intrusion detection system/intrusion system must be installed on the network and monitored.

17.2.3. Each server instance in cloud and virtualized environments should perform only one function.

17.2.4. In virtualized environments, redundant server instances cannot run under the same hypervisor.

17.2.5. Stateless protocols should not be used for sensitive data without stateful transport.

17.2.6. All changes to the network infrastructure must be logged and configuration documentation updated.

W. Va. Code R. § 179-10-18 Interim approvals for expedited implementation

18.1. The Director may approve certain system, network, operational, and other standards necessary to implement interactive gaming on an interim basis as long as a deadline for full compliance with permanent standards is provided at the time of approval. The Director may approve extensions if provided justification to show that such additional time is reasonably necessary.

18.2. Upon submitting an application to the Commission for an operator’s license and the initial license fee of $250,000, a licensed gaming facility may submit a contemporaneous request to the Director for an interim operator’s license authorizing the gaming facility to immediately commence interactive gaming operations, pending the Commission’s full review of the operator’s license application.

18.3. A licensed gaming facility receiving an interim operator’s license shall be permitted to commence interactive gaming wagering operations for a period of 270 days from the date the Commission grants an interim operator’s license. Any interactive gaming wagering operation conducted pursuant to an interim operator’s license that is not in compliance with all applicable laws and regulations relating to interactive gaming wagering shall cease operations until compliance is achieved.

18.4. After granting an interim operator’s license, the Director shall continue to review the gaming facility’s request for an operator’s license. If the Director determines that the gaming facility holding an interim operator’s license holds a valid gaming facility license, has paid the interactive gaming license fee, and is in compliance with the Act and this rule, the Commission shall issue an interactive gaming operator’s license as provided by the Act. Such license shall be valid for five years.

18.5. Any applicant seeking to operate interactive gaming pursuant to a contract with the licensed interactive gaming operator must be licensed as a management services provider. Upon submitting an application to the Commission for a management services provider license and the initial license fee of $100,000, an applicant may submit a contemporaneous request to the Director for an interim management services provider’s license authorizing the applicant to immediately act as an interactive gaming management services provider for 270 days, pending the Commission’s full review of the application for a management services provider license. Once approved, the annual license commencement date is the date upon which the interim license was issued.

18.6. Any applicant seeking to sell or lease interactive gaming equipment systems, or other items necessary to conduct interactive gaming, and offer services related to such equipment or other gaming items to an interactive gaming licensee, must be licensed under the Act. Upon submitting the application fee of $10,000.00 as provided under the Act, an applicant may submit a contemporary request to the Director for an interim license authorizing the applicant to immediately act as an interactive gaming supplier for up to 270 days, pending the Commission’s full review of the application for an annual license. Once approved, the annual license commencement date is the date upon which the interim license was issued. 18.7 All interactive gaming wagering conducted under authority of an interim license approval shall comply with these rules and the Act.

W. Va. Code R. § 179-10-19 Reciprocal agreements; prohibition of interactive gaming in establishments that do not hold an interactive gaming license

19.1. The Commission may authorize an operator in West Virginia to participate in interactive gaming with patrons located in jurisdictions outside of West Virginia pursuant to a reciprocal agreement that has been entered into by the State of West Virginia, if the Commission determines that such wagering is not inconsistent with the laws of this state, federal law or the law of the jurisdiction in which any such patrons are located or such wagering is conducted.

19.2. No organization or commercial enterprise, other than an interactive gaming operator located in West Virginia or its MSP that has located all of its equipment used to conduct interactive gaming, including computers, servers, monitoring rooms, and hubs, within the boundaries of the State of West Virginia, shall make its premises available for placing wagers using an interactive gaming system or advertise that its premises may be used for such purpose.

19.3. An organization or commercial enterprise that is determined by the Commission to have violated the provisions of this section shall be subject to a civil penalty of $1,000 per patron per day for making its premises available for placing wagers using an interactive wagering system and of $10,000 per violation for advertising that its premises may be used for such purpose, and may also be subject to the criminal penalties set forth in W. Va. Code §29-22E-20.

W. Va. Code R. § 179-10-20 Limitations on licensed i-Gaming operators

20.1. Each interactive gaming operator, at its discretion, may provide no more than three individually branded online i-Gaming websites and accompanying mobile applications.

20.2. Any individually branded i-Gaming website or mobile application provided by an MSP must conspicuously bear the name of the i-Gaming operator with whom it is affiliated on its webpage and mobile splash screen.

W. Va. Code R. § 179-10-21 Racetrack Modernization Fund and Historic Resort Hotel Modernization Fund Reimbursement

21.1. The interactive gaming system operator shall submit requests for reimbursement from its Racetrack Modernization Fund or Historic Resort Hotel Modernization Fund allowance, whichever is applicable, to the Director for any new and unused purchases of interactive gaming or other equipment necessary to modernize the facility to accept interactive gaming wagers. The Commission may further define covered acquisitions by issuing Commission Policy Statements.

W. Va. Code R. § 179-10-22 Advertising

22.1. The Director shall approve all advertising of interactive gaming systems in advance of an operator or its MSP’s, or their agents or affiliates, publishing or otherwise releasing such advertisements. The Commission may define further requirements in its MICS.

22.2. The Commission may set a certain amount or percentage of revenue that may be used for promotional credit, but any excess promotional credit offered must be accounted for as taxable revenue. This amount may be set at a frequency determined by Commission Order.

W. Va. Code R. § 179-10-23 Licensing and Registration

23.1. An individual or entity, employed with or contracted by an interactive gaming operator or a management services provider, to perform certain activities for the operation of an i-Gaming system having assigned duties as an interactive gaming manager or a customer service representative with access to confidential player account information shall be licensed as an occupational licensee. 23.2 In addition, certain affiliate companies that are not involved in the offering or placement of the wager shall be deemed to be a registrant rather than a licensee.