CHAPTER Pari 1200  GAMES OF CHANCE

 

Statutory Authority:  RSA 284:12, X; RSA 287-D:1-b

 

REVISION NOTE #1:

 

          Document #9281, effective 9-24-08, was an interim rule that made many changes to Pari 1200 in order to implement Chapters 285, 291, and 371 of the Laws of 2008.  Document #9281 adopted some new rules and amended some existing rules.  Specifically, Document #9281 readopted with amendments and renumbered Pari 1202.03 as Pari 1202.07, and readopted with amendments Pari 1212.01, Pari 1212.02, and Pari 1214.01 through Pari 1214.04.  Document #9281 also renumbered, but did not readopt at that time, other existing rules in Pari 1200, which retained the effective dates from the prior documents affecting those rules.

 

          New rules adopted by Document #9281 included:

 

                  Pari 1202.01             Pari 1202.12

                  Pari 1202.04             Pari 1215.08

                  Pari 1202.05             Pari 1217

                  Pari 1202.06             Pari 1218

                  Pari 1202.10

 

          Existing rules amended, but not readopted or renumbered, by Document #9281 included:

 

                  Pari 1201.02             Pari 1210.01

                  Pari 1205.01             Pari 1211.01

                  Pari 1205.02             Pari 1213.01

                  Pari 1205.03             Pari 1216.01

                  Pari 1207.01             Pari 1216.02

                  Pari 1207.02

 

          Existing rules renumbered by, but not contained in, Document #9281 included:

 

                  Former Number                            New Number

 

                  Pari 1202.01             Pari 1202.02

                  Pari 1202.02             Pari 1202.03

                  Pari 1202.04             Pari 1202.08

                  Pari 1202.05             Pari 1202.09

                  Pari 1202.06             Pari 1202.11

 

REVISION NOTE #2:

 

Pursuant to 2008, 25:1, effective 7-11-08, the Pari-Mutuel Commission was renamed the Racing and Charitable Gaming Commission.

 

Document #10929, effective 9-10-15 readopted with amendments Pari 1200 and made many changes to the wording, format, and numbering of the rules in Chapter Pari 1200 formerly adopted by the Pari-Mutuel Commission.  Document #10929 replaces all prior filings affecting Pari 1200.  The filings of the Pari-Mutuel Commission and the Racing and Charitable Gaming Commission affecting the former Pari 1200 include the following documents:

 

            #8691, INTERIM, eff 7-25-06

            #8804, eff 1-20-07

            #8921, eff 6-27-07

            #9281, INTERIM, eff 9-24-08

            #9413, eff 3-12-09

            #9882, eff 3-3-11

            #10575, eff 4-18-14

            #10792, INTERIM, eff 2-26-15, EXPIRED 8-25-15

 

            Prior to the filing of rules in Document #10792, effective 2-26-15, many rules in Pari 1200 had expired 1-20-15 because they had not been affected by filings after Document #8804, effective 1-20-07.  The rules in Pari 1200 filed in Document #10792, effective 2-26-15, had expired as interim rules on 8-25-15 until Pari 1200 was readopted with amendments in its entirety by Document #10929, effective 9-10-15.

 

PART Pari 1201  PURPOSE AND SCOPE

 

Pari 1201.01  Purpose.  The purpose of this chapter is to establish requirements for games of chance pursuant to RSA 287-D:1 through RSA 287-D:25.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

Pari 1201.02  Scope.  This chapter shall apply to:

 

(a)  Charitable organizations which hold or sponsor games of chance;

 

(b)  Any person acting as or otherwise performing the duties of a primary or secondary game operator;

 

(c)  Any person or entity acting as or otherwise performing the duties of a game operator employer; and

 

(d)  Any person or entity owning or leasing a facility at which games of chance are held.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

PART Pari 1202  DEFINITIONS

 

Pari 1202.01  “Charitable organization” means “charitable organization” as defined by RSA 287-D:1, IV, “namely any bona fide religious, charitable, civic, veterans’, or fraternal or church organization, including police and firemen’s organizations which shall have been registered with the secretary of state for at least 2 years. A charitable organization shall not include auxiliary units, committees, or other entities organized under the auspices of a charitable organization eligible for licensure under this chapter, when such auxiliary unit, committee, or other entity is organized for the primary purpose of conducting games of chance.”

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1202.02  "Commission'' means the New Hampshire lottery commission established pursuant to RSA 284:21-a, or its designated staff having authority to perform administrative and clerical functions for the commission.

 

Source.  #11088, eff 4-26-16

 

          Pari 1202.03  “Games of chance” means “games of chance” as defined in RSA 287-D:1, III, namely “any game involving gambling as defined by RSA 647:2,II, or any lottery prohibited by RSA 647:1, but shall not include any game involving the use of a slot machine or any other device in the nature of a slot machine,
50/50 raffles as defined in RSA 287-A:1,III, or ice-out contests as defined in RSA 287-D:1, VI.”  Games of chance include money wheel, roulette, craps, black jack, poker and similar card games.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; renumbered by #11088 (from Pari 1202.02)

 

          Pari 1202.04  Game operator” means “game operator” as defined in RSA 287-D:1, VII, namely “a primary game operator or a secondary game operator.”

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; renumbered by #11088 (from Pari 1202.03)

 

          Pari 1202.05  “Game operator employer” means “game operator employer” as defined by RSA 287-D:1, VIII, namely “a primary game operator or a business entity who employs, supervises, and controls game operators and who is hired by a charitable organization to operate games of chance on its behalf. The owner of 10 percent or more of the entity, partner, managing member, or chief executive of a business entity who serves as a game operator employer must be licensed as a primary game operator.”

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; renumbered by #11088 (from Pari 1202.04)

 

          Pari 1202.06  Game procedures” means rules and instructions governing the conduct of an authorized game of chance which includes a description of how the game is played, and won.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; renumbered by #11088 (from Pari 1202.05)

 

          Pari 1202.07  House rules” means general instructions governing the conduct of the gaming operation.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; renumbered by #11088 (from Pari 1202.06)

 

          Pari 1202.08  “Monetary transaction” means to supervise, manage and verify the amount of money received from buy-ins or re-buys and the amount paid out in prizes, as well as depositing and withdrawing funds into an account set up specifically for games of chance.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; renumbered by #11088 (from Pari 1202.07)

 

          Pari 1202.09  “Primary game operator” means “primary game operator” as defined in RSA 287-D:1, X, namely “any person other than a bona fide member of the charitable organization, involved in conducting, managing, supervising, directing, or running games of chance.”

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; renumbered by #11088 (from Pari 1202.08)

 

          Pari 1202.10  Re-buy” means the fee paid by a player to purchase additional chips.  This term includes “add-ons”.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; renumbered by #11088 (from Pari 1202.09)

 

          Pari 1202.11  “Secondary game operator” means “secondary game operator” as defined in RSA 287-D:1, XI, namely “any person other than a bona fide member of the charitable organization, involved in dealing, running a roulette wheel, handling chips, or providing accounting services or security functions.”

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; renumbered by #11088 (from Pari 1202.10)

 

PART Pari 1203  LICENSING REQUIREMENTS

 

          Pari 1203.01  Applying for a Charitable Organization License.

 

          (a)  Pursuant to RSA 287-D:4, I, any charitable organization that conducts games of chance shall obtain a license to do so, regardless of whether the charity will be operating the games themselves or hiring a game operator employer to operate the games on their behalf.

 

          (b)  Except as allowed by RSA 287-E:6, II, the charitable organization applying for a games of chance license shall submit the following to the commission at least 60 days prior to the first proposed game date:

 

(1)  A completed “Application for a Games of Chance Charitable Organization License” form (9/2016);

 

(2)  The supporting documentation specified in (c) or (d) below, as applicable;

 

(3)  Payment of the license fee of $25 per game date, pursuant to RSA 287-D:13,I; and

 

(4)  Documentation and payment for background and criminal record checks, as required by RSA 287-D:12, V, for all members of the organization who:

 

a.  Engage in monetary transactions or are otherwise responsible for overseeing the games of chance; and

 

b.  Operate the games of chance, when the organization operates the games itself, in lieu of hiring a game operator employer.

 

          (c)  Except as allowed by (d) below, the supporting documentation required by (b)(2) above, shall include:

 

(1)  One of the following documents confirming the organization’s tax exempt status:

 

a.  An affirmation letter or letter of determination from the Internal Revenue Service (IRS) that indicates the organizations tax exempt status under 26 USC §501(c)(3), (4), (7), (8), (10), or (19); or

 

b.  If the charitable organization is exempt by virtue of a group ruling:

 

1.  A copy of the group exemption letter issued to the central organization recognizing on a group basis the exemption under section 501(c)(3), (4), (7), (8), (10), or (19), of subordinate organizations on whose behalf the control organization has applied for recognition of exemption; and

 

2.  A letter from the central organization with which the charitable organization is affiliated confirming that the charitable organization is covered under the central organization’s group tax exemption;

 

(2)  Documentation of registration with the director of charitable trusts, if required under RSA 7:19 through 7:32;

 

(3)  A letter written on the charitable organizations letterhead and signed by an authorized officer of the organization, which describes the charitable purposes for which the organization is organized, and the extent these charitable purposes have been furthered by the organization within the community;

 

(4)  A current and complete list of all bona fide members of the organization, as described in Pari 1206.01(a) below, that has been signed, dated and certified as accurate by an officer of the organization;

 

(5)  A copy of the proposed game schedule, which complies with the criteria set forth in Pari 1206.02 below;

 

(6)  When applicable, copies of any facility rental or lease agreements that have not already been approved by the commission, which complies with the criteria set forth in Pari 1206.03 below;

 

(7)  When applicable, copies of any agreements between licensees that have not already been approved by the commission, which complies with the criteria set forth in Pari 1206.04 below;

 

(8)  When the games are held at a facility owned by a charitable organization or government subdivision provided free of charge to the applicant, a description of the gaming area, which complies with the criteria set forth in Pari 1206.05 below;

 

(9)  Copies of any house rules that have not already been approved by the commission, and which comply with the criteria set forth in Pari 1206.06 below; and

 

(10)  When a member(s) of the organization other than or in addition to the treasurer will be handling monetary transactions, a letter signed by the treasurer of the charitable organization granting authorization to the member(s).

 

          (d)  When applying for a license renewal, the charitable organization shall submit the following supporting documentation:

 

(1)  The games of chance financial reports, as required by Pari 1208 below, for any month which has not previously been submitted, and is due or overdue;

 

(2)  Updated documentation when previously submitted information provided in accordance with (b) above has changed, is no longer accurate, is no longer effective, or has been found to be inaccurate; and

 

(3)  Documentation and payment for background and criminal record checks, as required by Pari 1204.01 below, when such documentation has not been submitted to the commission within the past 12 months.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; amd by #12019, eff 10-27-16

 

          Pari 1203.02  Charitable Organizations Operating Their Own Games of Chance.  When a charitable organization operates its own games in lieu of hiring a game operator employer, only the bona fide members of the organization that have been authorized by the commission may participate in the operation.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1203.03  Applying for a Game Operator Employer License.

 

          (a)  Any individual or entity who supervises and controls game of chance operations on behalf of a charitable organization shall obtain a game operator employer license.

 

          (b)  Each applicant for a game operator employer license shall submit the following to the commission at least 120 days prior to the expiration of the applicant’s current license or participating in the operation of games of chance, if not currently licensed:

 

(1)  A completed “Application for a Games of Chance Game Operator Employer License” form (9/2016);

 

(2)  A description of the licensed premise, if not previously submitted or if any changes have occurred since the description was last submitted;

 

(3)  A copy of the individual or entity’s certificate of good standing from the New Hampshire department of revenue administration;

 

(4)  A copy of the bond, obtained in accordance with RSA 287-D:8, VII, for each location where the game operator employer will be conducting games of chance;

 

(5)  Payment of the following fees, pursuant to RSA 287-D:13:

 

a.  A $750 application fee; and

 

b.  A $10 badge fee; and

 

(6)  Documentation and payment for background and criminal record checks submitted in accordance with Pari 1204.01 below.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; amd by #12019, eff 10-27-16

 

          Pari 1203.04  Applying for a Primary Game Operator License.

 

          (a)  Except as allowed by (b) below, any individual who is responsible for conducting, managing, supervising, directing or running the games of chance on behalf of a charitable organization shall obtain a primary game operator license.

 

          (b)  A licensed game operator employer may act as a primary game operator without obtaining a separate license to do so.

 

          (c)  Each individual applying for a primary game operator license shall submit the following to the commission at least 60 days prior to the expiration of the applicant’s current license or participating in the operation of games of chance, if not currently licensed:

 

(1)  A completed “Application for a Game of Chance Primary Game Operator License” form (9/2016);

 

(2)  Two copies of a photo of the applicant that meets the following criteria:

 

a.  Taken within the last 6 months to reflect the applicant’s current appearance;

 

b.  Taken in front of a plain white or off-white background;

 

c.  In color;

 

d.  Taken in full-face view directly facing the camera;

 

e.  Taken with a neutral facial expression or a natural smile and with both eyes open;

 

f.  Composed so that:

 

1.  The overall photo size is 2 inches square;

 

2.  The head is between 1 inch and 1 3/8 inches from the bottom of the chin to the top of the head; and

 

3.  The eye height is between 1 1/8 and 1 3/8 inches from the bottom of the photo; and

 

g.  Printed on matte or glossy photo quality paper;

 

(3)  Payment of the following fees, pursuant to RSA 287-D:13:

 

a.  A $500 application fee; and

 

b.  A $10 badge fee, if applicable; and

 

(4)  Documentation and payment for background and criminal record checks submitted in accordance with Pari 1204.01 below.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; amd by #12019, eff 10-27-16

 

          Pari 1203.05  Applying for a Secondary Game Operator License.

 

          (a)  Except as allowed by (b) below, any individual who is responsible for dealing, running the roulette wheel, handling chips, or proving accounting services or security functions on behalf of a charitable organization shall obtain a secondary game operator license.

 

          (b)  Licensed game operator employers and licensed primary game operators may act as a secondary game operator without obtaining a separate license to do so.

 

          (c)  Each individual applying for a secondary game operator license shall submit the following to the commission at least 60 days prior to the expiration of the applicant’s current license or participating in the operation of games of chance, if not currently licensed:

 

(1)  A completedApplication for a Game of Chance Secondary Game Operator License” form (9/2016);

 

(2)  Two copies of a photo of the applicant that meets the following criteria:

 

a.  Taken within the last 6 months to reflect the applicant’s current appearance;

 

b.  Taken in front of a plain white or off-white background;

 

c.  In color;

 

d.  Taken in full-face view directly facing the camera;

 

e.  Taken with a neutral facial expression or a natural smile and with both eyes open;

 

f.  Composed so that:

 

1.  The overall photo size is 2 inches square;

 

2.  The head is between 1 inch and 1 3/8 inches from the bottom of the chin to the top of the head; and

 

3.  The eye height is between 1 1/8 and 1 3/8 inches from the bottom of the photo; and

 

g.  Printed on matte or glossy photo quality paper;

 

(3)  Payment of the following fees, pursuant to RSA 287-D:13:

 

a.  A $30 application fee; and

 

b.  A $10 badge fee, if applicable; and

 

(4) Documentation and payment for background and criminal record checks submitted in accordance with Pari 1204.01 below.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; amd by #12019, eff 10-27-16

 

          Pari 1203.06  Requesting Additional or Replacement Game Operator Badges.

 

          (a)  In accordance with RSA 287-D:9, VI and RSA 287-D:10, V, when a game operator works for more than one game operator employer, the game operator shall obtain a separate identification badge for each employer by submitting a separate application and licensing fee as specified in Pari 1203.03(c) and Pari 1203.04(c) above, as applicable .

 

          (b)  To request the replacement of a lost or stolen badge, the game operator shall submit the following to the commission for each game operator employer for whom they will be working:

 

(1)  A completed “Request for a Replacement Game Operator Badge” form (6/2016); and

 

(2)  Two copies of a photo of the applicant that meets the following criteria:

 

a.  Taken within the last 6 months to reflect the applicant’s current appearance;

 

b.  Taken in front of a plain white or off-white background;

 

c.  In color;

 

d.  Taken in full-face view directly facing the camera;

 

e.  Taken with a neutral facial expression or a natural smile and with both eyes open;

 

f.  Composed so that:

 

1.  The overall photo size is 2 inches square;

 

2.  The head is between 1 inch and 1 3/8 inches from the bottom of the chin to the top of the head; and

 

3.  The eye height is between 1 1/8 and 1 3/8 inches from the bottom of the photo; and

 

g.  Printed on matte or glossy photo quality paper;

 

(3)  A separate badge fee of $10.

 

          (c)  When a game operator is no longer working for the game operator employer, the game operator shall return his or her badge to the commission within 5 business days of leaving employment.

 

          (d)  If an individual fails to return a badge as required by (c) above, the individual shall be ineligible for licensure until such time as the badge is returned or the individual provides a sworn affidavit to the commission stating the disposition of the badge.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1203.07  Applying for a Games of Chance Facility License.

 

          (a)  In accordance with RSA 287-D:7, I, any person or entity, other than a charitable organization or governmental subdivision, with a facility at which games of chance are held for 5 or more game dates per calendar year, shall be licensed.

 

          (b)  Each applicant for a games of chance facility license shall submit the following to the commission at least 120 days prior to the expiration of the facility’s current license or games of change being held at the facility, if not currently licensed:

 

(1)  A completed “Application for Games of Chance Facility License” form (9/2016);

 

(2)  A description of the gaming area, in accordance with Pari 1208.05;

 

(3)  A copy of the certificate of good standing from the department of revenue administration;

 

(4) Documentation and payment for background and criminal record checks submitted in accordance with Pari 1204.01 below; and

 

(5)  Payment of the license fee of $250, pursuant to RSA 287-D:13, II.

 

(c)  For the purpose of this section, the applicant shall be the primary owner of the property or the property manager with the authority and oversight responsibilities of the facility.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; amd by #12019, eff 10-27-16

 

Pari 1203.08  Facility License Exemption.  Pursuant to RSA 287-D:7, I, a facility shall be exempted from the requirements in Pari 1203.06 above when:

 

(a)  No more than 4 game dates are held at the facility per calendar year; or

 

(b)  The facility is owned by a charitable organization or government subdivision, and provided free of charge.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

PART Pari 1204  BACKGROUND INVESTIGATIONS AND CRIMINAL RECORDS CHECKS

 

          Pari 1204.01  Background and Criminal Records Checks.

 

          (a)  In accordance with RSA 287-D:12, all applicants for a license pursuant to this chapter shall submit to the commission:

 

(1)  A completed and notarized NH State Police Criminal Records Release Authorization Form obtained from the commission authorizing the release of the applicant’s criminal history record;

 

(2)  A complete set of fingerprints taken by a qualified law enforcement agency, as follows:

 

a.  If fingerprints are captured via ink impressions, the FBI FD-258 fingerprint card issued by the NH state police; or

 

b.  If fingerprints are digital captured via a Livescan device, a copy of the Livescan receipt; and

 

(3)  Payment of the criminal history record, payable to the “State of NH – Criminal Records” and in the amount established by the NH state police.

 

          (b)  If the applicant is an entity, this requirement shall apply to all persons holding 10% or more interest in the entity.

 

          (c)  Pursuant to RSA 287-D:12, II, the commission shall deem an applicant fit to be associated with charitable gaming in New Hampshire when the applicant’s background and criminal records check does not show:

 

(1)  A felony conviction in the preceding 10 years from the date of the application which has not been annulled by the court; or

 

(2)  Any misdemeanor involving falsehood, dishonesty, fraud, theft, or financial crimes within the preceding 5 years from the date of the application which has not been annulled by the court.

 

          (d)  Pursuant to 28 CRF 16.34, if, after reviewing the FBI Identification Record, often referred to as a “rap sheet”, the applicant believes that it is incorrect or incomplete in any respect and wishes changes, corrections or updating of the alleged deficiency, the applicant may:

 

(1)  Make application directly to the agency which contributed the questioned information; or

 

(2)  Direct his/her challenge as to the accuracy or completeness of any entry to the FBI, Criminal Justice Information Services (CJIS) Division, ATTN: SCU, Mod. D-2, 1000 Custer Hollow Road, Clarksburg, WV 26306.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; amd by #12019, eff 10-27-16

 

          Pari 1204.02  Background Investigations of Facility and Game Operator Employer Applicants.

 

          (a)  In accordance with RSA 287-D:11, any person, associate, corporation, or other type of entity applying for or holding a facilities or game operator employer license shall file a complete and detailed written statement with the attorney general that contains the following information:

 

(1)  The name, residence address, and nature of the ownership interest including, where applicable, the number of shares of stock held and if known, how obtained, of every person who possesses an ownership interest in such entity;

 

(2)  The name, address, present principal occupation or employment, and name and principal business of any corporation or other organization in which such employment is carried on of  every director, officer, and holder of 10 percent or more ownership interest in such entity;

 

(3)  Such information as the attorney general prescribes by rule; and

 

(4)  The signature of the applicant or holder of such license if an individual, or by the officer of the entity attesting to the accuracy of the information being provided.

 

          (b)  Each applicant or licensee shall file the information required in (a) above with the initial application, and every 5 years thereafter.

 

          (c)  As required by RSA 287-D:11, II(d), if at any time the applicant or licensee discovers that information provided in accordance with (a) above has changed, or is otherwise found to be inaccurate, the applicant or licensee shall submit updated or corrected information to the attorney general and the commission within 10 days of the event that resulted in the change, or discovery of the inaccuracy.

 

          (d)  In accordance with RSA 287-D:11, III(a), no person shall be issued or hold a license if in the opinion of the attorney general such person is not fit to be associated with charitable gaming in this state.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

PART Pari 1205  APPROVAL OF AN APPLICATION FOR LICENSURE

 

          Pari 1205.01  Application Approval and Denial Criteria.

 

          (a)  The commission shall approve an application and issue a license when:

 

(1)  The application complies with the applicable requirements set forth in Pari 1203 above;

 

(2)  The applicant otherwise meets the qualifications for licensure specified in RSA 287-D, and this chapter;

 

(3)  The commission determines that the applicant is fit to be associated with charitable gaming in New Hampshire, pursuant to Pari 1204.01(c) above;

 

(4)  When applicable, the attorney general determines that the applicant is fit to be associated with charitable gaming in New Hampshire, pursuant to Pari 1204.02(d) above; and

 

(5)  The applicant has not had its license revoked within the past 12 months, as prohibited by RSA 287-D:23, III.

 

          (b)  The commission shall deny the application and not issue a license when:

 

(1)  The application does not comply with the applicable requirements set forth in Pari 1203 above;

 

(2)  The applicant does not otherwise meet the qualifications for licensure specified in RSA 287-D, or this chapter;

 

(3)  The commission determines that the applicant is not fit to be associated with charitable gaming in New Hampshire, pursuant to Pari 1204.01(c) above;

 

(4)  The attorney general determines that the application is not fit to be associated with charitable gaming in New Hampshire, pursuant to Pari 1204.02(d) above; or

 

(5)  The applicant’s license has been revoked within the past 12 months, as prohibited by RSA 287-D:23, III.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1205.02  License Limitations and Expirations.

 

          (a)  In accordance with RSA 287-E:6, IV and RSA 287-E:7, III, only one license per applicant per year shall be issued to:

 

(1)  Charitable organizations; and

 

(2)  Gaming facilities.

 

          (b)  All licenses issued under this part are non-transferable.

 

          (c)  In addition to (b) above, a facility license shall be non-assignable.

 

          (d)  Games of chance licenses issued in accordance with this part shall expire as follows:

 

(1)  Charitable organization licenses shall expire on December 31 of the licensed year, as specified in RSA 287-D:6, V;

 

(2)  Game operator employer licenses shall expire on December 31 of the licensed year;

 

(3)  Primary game operator licenses shall expire on the last day of the month of the licensee’s birthday, as specified in RSA 287-D:9, VII;

 

(4)  Secondary game operator licenses shall expire on the last day of the month of the licensee’s birthday, as specified in RSA 287-D:10, III;

 

(5)  Facility licenses shall expire on December 31 of the licensed year, as specified in RSA 287-D:7, IV;

 

(6)  Upon revocation by the commission in accordance with RSA 287-D:23, III; or

 

(7)  Upon voluntary surrender by the licensee.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1205.03  Submitting Additional or Corrected Information.  Except as otherwise specified, if at any time the information provided to the commission in accordance with this chapter changes, or is otherwise found to be inaccurate, the applicant or licensee shall submit updated or corrected information to the commission within 15 days of the event that resulted in the change, or discovery of the inaccuracy.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

PART Pari 1206  REQUIRED DOCUMENTATION

 

Pari 1206.01  List of All Bona Fide Members.

 

(a)  The licensed charitable organization shall maintain a current and complete list of bona fide members that includes the following information:

 

(1)  The members’ full name, legal address and date of birth;

 

(2)  The member’s title or position within the organization, with officers being listed first and alphabetically thereafter; and

(3)  If a game operator will be operating the games on behalf of the organization, an indication as to which members are authorized to:

 

a.  Sign the “Charitable Organization Member’s Affidavit” form (6/2016); and

 

b.  Engage in monetary transactions; and

 

(4)  If the organization will be operating the games itself, an indication as to whether the member will be participating in the operation of games of chance.

 

(b)  To participate in the operation of games of chance as a member of a charitable organization, the individual shall:

 

(1)  Meet the definition of a bona fide members in accordance with RSA 287-D, II;

 

(2)  Submit to a background and criminal records check completed, as required by Pari 1204.01 above; and

 

(3)  Be found fit by the commission to be associated with charitable gaming in this state, pursuant to Pari 1204.01(c) above.

 

(c)  In accordance with RSA 287-D:14, XIX, the charitable organization may amend or supplement the list of persons who will participate in any games of chances at least 10 business days prior to the effected game date.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12019, eff 10-27-16

 

          Pari 1206.02  Game Schedule.

 

          (a)  Pursuant to RSA 287-D:14, XVIII, a games of chance licensee shall only conduct games of chance that have been identified on a game schedule that has been approved by the commission.

 

          (b)  Except as allowed by (c) below, the charitable organization shall submit a game schedule as part of the application, as required by Pari 1203.01(c)(5) above.

 

          (c)  The charitable organization, or the game operator employer hired to act on the organization’s behalf, shall submit any amendments to its game dates at least 15 days prior to the first amended game date.

 

          (d)  A request for approval of a game schedule shall contain the following information:

 

(1)  The name of the licensed charitable organization that will be sponsoring the games of chance event(s);

 

(2)  The name of the licensed primary game operator overseeing the games of chance event(s), if applicable;

 

(3)  The date(s) and time(s) of the proposed games of chance event(s);

 

(4)  The location where the proposed games of chance event(s) will be held;

 

(5)  The name and game approval number issued by the commission for each of the games of chance being offered at each of the specified event(s);

 

(6)  The buy-in and re-buy amounts for each game of chance where the chips have no monetary value;

 

(7)  If applicable, the prizes, tokens or awards, including door prizes and free play offers, to be offered, and any factors used to determine the prize payout structure for each game;

 

(8)  The estimated number of players expected to attend; and

 

(9)  Whether prizes are subject to increase or decrease based on actual attendance.

 

          (e)  The commission shall approve a game schedule request or an amended request when:

 

(1)  All of the information required by (d) above is provided;

 

(2) The games procedures for each the games being offered have been approved by the commission, pursuant to Pari 1206.07 below;

 

(3)  The total number of game dates hosted by the charitable organization does not exceed 10 days per year, in accordance with RSA 287-D:6, IV; and

 

(4)  The request otherwise complies with RSA 287-D and this chapter.

 

          (f)  Any additional game dates approved as part of an amended game schedule shall be subject to a license fee of $25 per game date, pursuant to RSA 287-D:13,I.

 

          (g)  If a game date is cancelled due to an unforeseen occurrence or extreme weather condition, the charitable organization, or the game operator employer hired to act on the organization’s behalf, shall notify the commission of the cancelation by the next business day. 

 

          (h)  The commission shall approve a game schedule request if the games of chance contained in the request comply with the standards for games of chance set forth in RSA 287-D and this chapter.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1206.03  Rental and Lease Agreements.

 

          (a)  Pursuant to RSA 287-D:19, I(c), when a charitable organization operates games of chance itself and such games are conducted in a rented or leased facility for the express purpose of conducting games of chance, the charitable organization shall submit such rental agreements to the commission for approval.

 

          (b)  Pursuant to RSA 287-D:19, II(c), when a charitable organization contracts for services from a licensed game operator employer at a rented facility, the charitable organization shall submit the service and rental agreements to the commission for review.

 

          (c)  Except as allowed by (d) below, the charitable organization shall submit any rental or lease agreements as part of the application, as required by Pari 1203.01(c)(6) above.

 

          (d)  The charitable organization, or the game operator employer hired to act on the organization’s behalf, shall submit any amendments to its lease agreements at least 15 days prior to the effective date of the agreement.

 

          (e)  Rental and lease agreements shall include the following items and services, with costs itemized:

 

(1)  Gaming space;

 

(2)  Heat, lights and restroom facilities sufficient for the seating capacity of the facility;

 

(3)  Security of the facility and parking area;

 

(4)  Snow removal; and

 

(5)  Trash removal and overall janitorial services sufficient to maintain the facility in a clean and proper condition for conducting business.

 

          (f)  The amount of rent, goods, and services charged shall:

 

(1)  Be no more than the amounts charged to others for the same or similar rentals, goods or services; and

 

(2)  Not be based in whole or in part on a percentage of gross receipts or net proceeds derived from the conduct of charitable gaming or by reference to the number of people in attendance.

 

          (g)  A licensed charitable organization may elect to provide for itself any of the goods and services that a facility owner is required to provide under this section, provided these arrangements are clearly noted in the lease agreement, and the total compensation to be paid the facility is reduced commensurate with the cost of the goods and services as itemized in the lease.

 

          (h)  Participation in and charges for activities such as advertising, free offer of coffee and donuts to customers, security protection for the charitable organization itself, consulting or management services, shall be at the discretion of the charitable organization.

 

          (i)  Failure to participate in these activities described in (h) above shall not constitute grounds for expulsion from the facility.

 

          (j)  No games of chance shall be held in any facility that has not been approved by the municipal governing body for public assembly, or as otherwise required by law.

 

          (k)  The commission shall approve a rental or lease agreement when the lease meets the requirements set forth in this section, and does not otherwise violate RSA 287-D or this chapter.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1206.04  Agreements Between Licensees.

 

          (a)  Pursuant to RSA 287-D:14, II, when an agreement is made between a charitable organization and another licensee relative to games of chance, the charitable organization shall submit such agreements to the commission with the initial application or at least 15 days prior to the agreement becoming effective.

 

          (b)  Except as allowed by (c) below, the charitable organization shall submit any agreements as part of the application, as required by Pari 1203.01(c)(7) above.

 

          (c)  The charitable organization, or the game operator employer hired to act on the organization’s behalf, shall submit any amendments to its agreements at least 45 days prior to the effective date of the agreement.

 

          (d)  Within 45 days or receiving the documentation required by (c) above, the commission shall either:

 

(1)  Approve the agreement if it concludes that implementing the agreement would not result in a violation of any requirement of RSA 297-D or this chapter; or

 

(2)  Deny or revoke its approval of any game of chance if it concludes that the agreement would result in a violation of any requirement of RSA 297-D, this chapter.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1206.05  A Description of the Gaming Area.

 

          (a)  No game of chance shall be conducted unless it has been approved by the commission.

 

          (b)  The following information shall be submitted to the commission when requesting approval of a gaming area:

 

(1)  The address of the facility; and

 

(2)  A description of the facility that includes:

 

a.  A detailed diagram of the gaming area that:

 

1.  Includes a legend;

 

2.Is drawn to scale, or includes accurate measurements; and

 

3.  Is of sufficient detail and clarity to physically identify the gaming area within the facility;

 

b.  The square footage of the gaming area;

 

c.  The capacity levels, as deemed acceptable by local building and fire code;

 

d.  If applicable, available parking; and

 

e.  If applicable, the location and method of physical separation between the games of chance area and other licensed activities within the same premises, to ensure a clear separation of these areas.

 

          (c)  The information required by (b) above shall be submitted by:

 

(1)  The facility as part of a license application, as required by Pari 1203.06 above;

 

(2)  The charitable organization as part of a license application when games will be held at unlicensed facilities, as required by Pari 1203.01(c)(8) above; or

 

(3)  The licensed facility or licensed charitable organization, as applicable, at least 15 days prior to any changes to a previously approved gaming area taking effect.

 

          (d)  Within 15 days of receiving the information required in (c) above, the commission shall determine if the request meets the following criteria for approval:

 

(1)  The applicant has provided sufficient detail and clarity to physically identify the gaming area within the facility;

 

(2)  The capacity levels meet local building and fire code standards;

 

(3)  If applicable, there is a clear separation between the games of chance area and other licensed activities within the same premises; and

 

(4)  The gaming area does not otherwise violate RSA 287-D, or this chapter.

 

          (e)  In accordance with RSA 287-D:14,I, no more than 2 licensed charitable organizations shall conduct games of change at any one location on any date.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1206.06  House Rules.

 

          (a)  Pursuant to RSA 287-D:14, XXI, the charitable organization or, where applicable, the operator employer hired to act on behalf of the organization, shall adopt and adhere to house rules that include a minimum of the following:

 

(1)  The general rules of play;

 

(2)  The amount of the entry fee, if any;

 

(3)  The wagering and spending limits for each type of game, including the ante;

 

(4)  Methods of making wagers, including:

 

a.  Whether or not buy-in and re-buys will be permitted, and if permitted, under what circumstances, conditions, and amounts; and

 

b.  The initial amount of all antes and blind bets and a description of the manner in which the amount of antes and blinds will increase during the progress of game;

 

(5)  Procedures for misdeals, betting irregularities and splitting pots;

 

(6)  Any time limits pertaining to the play of the game;

 

(7)  Any rules that may restrict a player's right to win a hand, pot, or jackpot prize;

 

(8)  Prize pay outs and any prize-related restrictions;

 

(9)  The refund policy;

 

(10)  Standards and policies and procedures for addressing and resolving player disputes;

 

(11)  How a player can contact the commission with comments, concerns or questions; and

 

(12)  The effective date of the house rules.

 

          (b)  Except as allowed by (c) below, the charitable organization shall submit the house rules as part of the application, in accordance with Pari 1203.01(c)(9) above.

 

          (c)  The charitable organization, or the game operator employer hired to act on the organization’s behalf, shall submit any amendments to its house rules at least 15 days prior to the first amended game date.

 

          (d)  The commission shall approve house rules if it concludes that:

 

(1)  The house rules include the details required by (a) above; and

 

(2)  The house rules do not conflict with or are otherwise prohibited by law, this chapter, or any rulings issued by the commission.

 

          (e)  The commission shall deny approval of any house rules if it concludes that:

 

(1)  The house rules do not include the details required by (a) above; or

 

(2) The house rules conflict with or are otherwise prohibited by law, this chapter or any ruling issued by the commission.

 

          (f)  Prior to the start of each event, the charitable organization, or the game operator employer hired to act on the charity’s behalf, shall ensure that a public announcement is made letting players know where copies of the house rules are located and how to obtain copies.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

          Pari 1206.07  Game Procedures.

 

          (a)  Charitable organizations and game operator employer shall only offer games of chance for which the game procedures have been approved by the commission.

 

          (b)  To obtain approval of a game procedure that has not previously been approved by the commission, the charitable organization, or game operator employer hired to act on the organization’s behalf, shall submit a written request and the game procedure to the commission at least 45 days prior to the proposed implementation date.

 

          (c)  The game procedures shall include a minimum of the following information:

 

(1)  For card games:

 

a.  The name of the card game;

 

b.  The object of the card game;

 

c.  The rules of the card game;

 

d.  The equipment used for the card game;

 

e.  The method of play for the card game;

 

f.  The types of wager or wagers for the card game;

 

g.  The wager amounts for the card game;

 

h.  The payouts and payout odds for each wager in the card game; and

 

i.  The rules governing any card game point system established by the licensee; and

 

(2)  For games which are not a card games:

 

a.  The name of the game;

 

b.  The object of the game;

 

c.  The rules of the game;

 

d.  The equipment used for the game;

 

e.  The method of play for the game;

 

f.  The types of wager or wagers for the game;

 

g.  The wager amounts for the game;

 

h.  The payouts and payout odds for each wager in the game; and

 

i.  The rules governing any game point system established by the licensee.

 

          (d)  The licensee shall obtain commission approval whenever a modification is made to an approved game procedure, including any changes made to the odds.

 

          (e)  The licensee shall clearly describe the changes being proposed when submitting a written request for approval of a modified game procedure.

 

          (f)  Upon request, the charitable organization, or game operator employer hired to act on the organization’s behalf, shall also demonstrate the proposed game to the commission.

 

          (g)  The commission shall approve a game of chance, or a modification to a previously approved game of chance, if it concludes that:

 

(1)  The game procedures include the details required by (c) above;

 

(2)  Approval of the game of chance would likely advance the purposes of RSA 287-D;

 

(3)  Approval of the game of chance would not be otherwise prohibited by law, this chapter or any rulings of the commission; and

 

(4)  The game procedures comply with standard rules of the game, such as those found in The New Complete Hoyle: The Authoritative Guide to the Official Rules of All Popular Games of Skill and Chance, Revised Edition (1991) or Hoyle's Modern Encyclopedia of Card Games (1974), available as noted in Appendix A, or a similar authoritative guide on card games.

 

          (h)  The commission shall deny approval of any game of chance if it concludes that:

 

(1)  The game procedures do not include the details required in (c) above;

 

(2)  The game of chance would not advance the purposes of RSA 287-D;

 

(3)  Approval of the game of chance would be prohibited by law, this chapter or any rulings of the commission;

 

(4)  The game procedures do not comply with standard rules of that game, such as those found in The New Complete Hoyle: The Authoritative Guide to the Official Rules of All Popular Games of Skill and Chance, Revised Edition (1991) or Hoyle's Modern Encyclopedia of Card Games (1974), available as noted in Appendix A, or a similar authoritative guide on card games.

 

          (i)  The commission shall revoke approval of any house rules when a review concludes that:

 

(1)  The house rules conflict with or are otherwise prohibited by law, this chapter or any ruling issued by the commission;

 

(2)  The approval previously granted to the licensee was erroneously issued; or

 

(3)  The licensee has not adhered to the house rules in a manner consistent with those submitted in accordance with Pari 1206.06 above.

 

          (j)  The commission shall revoke its approval of any game procedures when a review concludes that:

 

(1)  The game would not advance the purposes of RSA 287-D;

 

(2)  The game is prohibited by law, this chapter or any rulings of the commission;

 

(3)  The game does not comply with standard rules of that game, such as those found in The New Complete Hoyle: The Authoritative Guide to the Official Rules of All Popular Games of Skill and Chance, Revised Edition (1991) or Hoyle's Modern Encyclopedia of Card Games (1974), available as noted in Appendix A, or a similar authoritative book on card games;

 

(4)  The approval previously granted to the licensee was erroneously issued; or

 

(5)  The licensee has not operated the game of chance in a manner consistent with the procedures submitted in accordance with Pari 1206.07 above.

 

          (k)  Game procedures that have been approved by the commission may be utilized by other charitable organization or game operator employers without additional commission approval, when included on the game schedule submitted in accordance with Pari 1206.02 above.

 

          (l)  Commission approval of a game procedure shall not represent, warrant or otherwise assert that the game does not violate any intellectual property right, including, but not limited to, any agreement, license, copyright, trademark or patent right. It is the licensee’s responsible to meet all proprietary requirements.

 

          (m)  Prior to the start of each game, the charitable organization or the game operator employer hired to act on the organization’s behalf shall ensure that a public announcement is made informing players as to where copies of the game procedures are located and how copies can be obtained.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1206.08  Internal Control Procedures.

 

          (a)  The charitable organization, or the operator employer hired to act on behalf of the organization, shall develop, implement and adhere to written internal control policies and procedures designed to ensure effective control over the gaming operation by discouraging and protecting against illicit behavior and safeguarding the integrity of the games.

 

          (b)  The internal control policies and procedures required in (a) above shall address a minimum of the following areas:

 

(1)  The implementation of an organizational structure designed to segregate functions, duties, and responsibilities in accordance with sound business practices to prohibit individuals from being in a position that allows them to both commit and conceal an error or to perpetrate a fraud in their normal course of duties;

 

(2) Control of games of chance equipment inventory to prevent unauthorized access, misappropriation, forgery, theft, or fraud, including systems and safeguards with regard to the receipt, storage, inventory and disbursal of chips, cards, dice, and other sensitive equipment utilized in games of chance;

 

(3)  A system for the collection and security of moneys at the table games, the transfer and recordation of chips between the table games and the cashiers’ cage, the transfer of money from the table games to the counting process, and the process and equipment to assure security for the counting and recordation of revenue;

 

(4)  Adequate safeguards within the cashiers’ cage for:

 

a.  The receipt, storage, inventory and disbursal of chips, cash, counter checks and other cash equivalents used in gaming;

 

b  The cashing of checks;

 

c.  The redemption of chips and other cash equivalents used in gaming; and

 

d.  The recording of transactions pertaining to gaming;

 

(5)  An accounting system of controls established in accordance with (c)-(d) below to safeguard assets and ensure that:

 

a.  Financial records are prepared and maintained completely, accurately and reliably;

 

b  Revenue and fees are properly reported and paid;

 

c.  Accountability of assets is maintained; and

 

d.  The charitable organization and the game operator employer review records and reports periodically, and, when applicable, appropriate action is taken with respect to any discrepancies;

 

(6)  When tournaments are offered, a system for tracking the amount that that a player has spent for buy-ins and re-buys to ensure players do not exceed the limits set by RSA 287-D:14, XV and XVI;

 

(7)  Standards governing the utilization of the surveillance and security designed to prevent unauthorized access, activities, misappropriation, forgery, theft, or fraud;

 

(8)  When applicable, physical and systems controls for information technology, including data back-up, and maintenance of systems; and

 

(9)  Procedures and controls for ensuring that the gaming area is secure during normal operations, as well as contingency plans to address unforeseen incidences such as power outages, or episodes of equipment failure.

 

          (c)  The charitable organization, or the operator employer hired to act on behalf of the organization, shall establish and maintain an accounting system for all activities conducted in conjunction with games of chance that includes a minimum of the following:

 

(1)  Internal controls to secure and count all cash received in connection with a game of chance event, including the requirements that no fewer than 2 individuals be responsible for counting the receipts;

 

(2)  Methods of accounting for chip sale and reimbursement; and

 

(3)  Verification of all transfers of cash and chips between game table(s) and the central counting area.

 

          (d)  General accounting records shall consist of controls established to safeguard assets and ensure accurate and complete records of all transactions pertaining to gaming revenue and activities of operational accountability that:

 

(1)  Record gaming activity transactions in an accounting system to identify and track all revenues, expenses, assets, and liabilities;

 

(2)  Produce financial statements to include, at a minimum, an income statement and a balance sheet;

 

(3)  Produce appropriate subsidiary ledgers to support the balance sheet;

 

(4)  Inventory and safeguard assets;

 

(5)  Prepare, review, and maintain accurate financial statements;

 

(6)  Prepare minimum bankroll calculations; and

 

(7)  Maintain and preserve all financial books, records, and relevant supporting documentation.

 

          (e)  The treasurer of the charitable organization or a bona fide member of the charitable organization designated by the treasurer shall be in full charge of, and primarily responsible for, the proper utilization of all monies derived from the conduct of games of chance.

 

          (f)  The licensee shall maintain a copy of the current controls and procedures in the gaming area, or otherwise make them available for inspection upon request.

 

          (g)  The licensee shall maintain a copy of any superseded changes to its internal controls for a minimum of 2 years.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

PART Pari 1207  OPERATION OF GAMES OF CHANCE

 

          Pari 1207.01  Participants in the Operation of Games of Chance.

 

(a)  Except as allowed by RSA 287-D:14, III, no person shall be party to, engage in, or supervise others in the operation of games of chance in any capacity, unless that person possesses a current license issued in accordance with RSA 287-D and this chapter.

 

          (b)  When a charitable organization chooses not to operate the games of chance directly, the organization shall hire a licensed game operator employer to operate the games on their behalf.

 

          (c)  When a charitable organization chooses to operate the games of chance directly, all duties and responsibilities of the game operators and game operator employer fall to the charitable organization.

 

          (d)  All persons participating in the operation of games of chance shall wear an identification badge issued by the commission in such a manner that is readily visible for inspection by the public.

 

          (e)  All licensees shall take necessary steps to prevent cheating and ensure that the games of chance are played fairly.

 

          (f)  In accordance with RSA 287-D:14, XI, a member of the sponsoring charitable organization shall:

 

(1)  Be present and on site at least once per day during the operation of any game of chance; and

 

(2)  Provide a completed “Charitable Organization Member’s Affidavit” form (6/2016) to the game operator employer that attests to their presence at the site during the operation of a game of chance event.

 

          (g)  In accordance with RSA 287-D:14, VIII, the following individuals shall be prohibited from participating in or otherwise playing the games being offered at a games of chance event:

 

(1)  Individuals who are participating in the operation of the event, except as allowed by (h) below;

 

(2)  Individuals who holds the lease to the facility where the event is being held; and

 

(3)  Individuals who have sold or leased game of chance paraphernalia or related equipment to the charitable organization for use at the event.

 

          (h)  An individual who is participating in the operation of an event may play the games being offered at the event only when the individual:

 

(1)  Has completed the shift, and will not be returning to work at the event; and

 

(2)  Is not wearing a uniform of the games of chance employer or sponsoring charity of the event.

 

          (i)  In accordance with RSA 287-E:9, III, concurrent with the charitable organization, primary game operators who operate games of chance on behalf of a charitable organization shall be responsible for all requirements for which the charitable organization is responsible when a charitable organization operates games of chance itself.

 

          (j)  Where game operators are utilized to operate games of chance, at least one licensed primary game operator shall supervise and manage all game operations for the entire time the games are being held.

 

          (k)  When an employee is newly hired or is no longer employed by the game operator employer, the game operator employer shall notify the commission of such within 5 business days.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1207.02  Documentation to be Displayed in the Gaming Area.

 

          (a)  The charitable organization, or the operator employer hired to act on behalf of the organization, shall prominently and conspicuously display the following documents in the immediate area where games of chance are conducted:

 

(1)  At least one copy of the following documents:

 

a.  The organization’s current games of chance license;

 

b.  The organization’s approved game schedule;

 

c.  House rules approved by the commission;

 

d.  When the games are held at a licensed facility, a copy of the facility license; and

 

e.  When the charitable organization operates its own games of chance, a list of all bonfide members who are authorized to act as game operators;

 

(2)  At least 2 current copies of each of the following:

 

a.  The games of chance statute, RSA 287-D; and

 

b.  This chapter, Pari 1200; and

 

(3)  A binder containing the approved game procedures for each of the games being offered at the event.

 

(b)  The charitable organization, or the operator employer hired to act on behalf of the organization, shall display the following information at each game table as to be conspicuous to those persons participation in said game:

 

(1)  The name of the game of chance; and

 

(2)  The minimum and maximum wagers.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1207.03  Conduct of Games of Chance.

 

          (a)  Pursuant to RSA 287-D:14, XVIII, no games of chance shall be played unless all of the games of chance being offered have been approved by the commission in accordance with Pari 1206.07 above, and identified on an approved game schedule, as required by Pari 1206.02.

 

          (b)  In accordance with RSA 287-D:14, VI, no one under the age of 18 years shall be admitted to the area where the games of chance are being conducted, except when the games are being conducted at a carnival.

 

          (c)  Card games shall be conducted in accordance with the following, in order of priority:

 

(1)  The game procedures approved by the commission;

 

(2)  The house rules approved by the commission; and

 

(3)  Rules explained in The New Complete Hoyle: The Authoritative Guide to the Official Rules of All Popular Games of Skill and Chance, Revised Edition (1991) or Hoyle's Modern Encyclopedia of Card Games (1974), available as noted in Appendix A, or a similar authoritative book on card games.

 

          (d)  For games or tournaments where chips have no monetary face value:

 

(1)  The licensee shall post the location of the game or tournament in the public place prior to commencing the game or tournament;

 

(2)  The licensee shall not charge any amounts, by whatever name, other than buy-ins and re-buys;

 

(3)  Except as allowed by (4) below, the charitable organization may offer any number of games per licensed event provided each player is limited to spending up to $150 per game, including buy-ins and re-buys;

 

(4)  The charitable organization may offer one game per authorized event where each player may spend up to $250 for the game, including buy-ins and re-buys;

 

(5)  The prize shall either be a set prize amount or a percentage of the prize pool;

 

(6)  Prizes shall not be awarded to more than 50 percent of the players starting the game or tournament;

 

(7)  The total amount awarded in prizes shall not exceed 80 percent of the total amount collected from players; and

 

(8)  At the end of a game or tournament, any chips held by a player not receiving a prize shall:

 

a.  Have no value for any purpose;

 

b.  Not be traded, bartered, used or exchanged for any purpose whatsoever; and

 

c.  Not be used for play in any other game or tournament.

 

          (e)  Except as allowed by (f) below, no single wager by a player, on any game of chance, shall exceed the amount of $4.

 

          (f) In poker where chips have monetary value, play may be conducted under table stakes rules, as follows:

 

(1)  The amount of blinds, antes, and any other type of forced bet shall not exceed $4 per player, but the amount wagered by a player during the play of a hand shall not be limited except by the amount of chips the player has in his or her possession at the table;

 

(2)  Except as allowed by (5) below, a player shall arrive at a table to begin play with no more than $500 in chips;

 

(3)  A player may purchase up to $500 in chips at a time from the cashier area, also known as the cage;

 

(4)  A player may purchase up to $150 in chips per hand at the table where he or she is playing provided that the amount of chips being purchased will not raise the total value of chips in the player’s possession above $500, or less as otherwise specified in the house rules.

 

(5)  When a player is forced by management to move to a new table of equal or lesser table blind in order to balance the player load at each table, known as a forced lateral move, the player may bring all of the chips in his or her possession at the time of the move to the new table;

 

(6)  If a player voluntarily moves to a new table with more than $500 in accumulated chips, the player shall remove any excess chips from public view, but may augment the number of his or her chips on the table at the rate no more than $150 per game at a time, provided that the player has not more than $500 in chips on the table at any one time;

 

(7)  Once chips are on the table, the player shall not remove chips from his or her stack, unless the player is concluding play and leaving the table; and

 

(8)  A game operator shall not require a player to maintain the minimum amount of chips to continue to play.

 

          (g)  For the purposes of paragraph (f) above, a hand begins when the cards are dealt to the players, and is complete once all wagers have been concluded on the cards in play, the pot has been awarded, and all cards have been collected and shuffled.

 

          (h)  In accordance with RSA 287-D:14,XV-XVII, all tournaments shall comply with the following:

 

(1)  A tournament shall be a single event in which all players begin with the same  number of chips and play until the posted prizes are paid out;

 

(2)  A tournament may be held over multiple days to accommodate the number of players as long as the event is operated as a single licensed event, hosted by the same charitable organization;

 

(3)  When a player has lost all of his or her chips and is eliminated from the tournament, the player may buy in again to continue playing until such time as the player reaches the spending limits set by RSA 287-D:14, XV and XVI;

 

(4)  Prize payouts shall not exceed 80% of the total amount collected from players, and as such, a portion of the money collected from players cannot be carried over to be awarded in a separate event or tournament; and

 

(5)  Funds shall not be added to the prize pool to enhance the payout if doing so would exceed the 80% restriction noted in (4) above, and as such, a game operator cannot subsidize the pot in order to reach a guaranteed prize amount that cannot otherwise be met using player money.

 

          (i)  Wagers shall only be placed in the form of chips, or the like, or, when electronic gaming tables are used, in the form of representations of credit.

 

          (j)  No licensed charitable organization shall extend credit to any patron at an event.

 

          (k)  The game operator shall collect and store his or her tips in a tip box or in a clearly designated area of the gaming table.

 

          (l)  No licensee shall permit side bets between players or other such activities that involve a participant wagering money or other items of value against another, when the activity does not provide for some portion of the proceeds to go to the licensed charitable organization and the state.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12019, eff 10-27-16

 

          Pari 1207.04  Equipment Utilized for Games of Chance.

 

          (a)  In accordance with RSA 287-D:18, I, when a licensed charitable organization operates games of chance itself, such games shall be conducted with equipment that is:

 

(1)  Owned absolutely;

 

(2) Used without payment or any compensation therefor by the organization; or

 

(3)  Leased or rented at a fixed fee only from a dealer of such equipment who has his or her principal place of business in this state.

 

          (b)  In accordance with RSA 287-D: 18, II, any contract of the rental for equipment shall:

 

(1)  Be independent of any contract for the rental of a facility; and

 

(2)  Not be contingent upon the organization’s agreement that it will contract with a particular business for a particular facility or equipment.

 

          (c)  No licensed charitable organization shall agree to or be required to purchase supplies in consideration of receiving the use of any equipment, goods or supplies without charge.

 

          (d)  All equipment used in the conduct of a game of chance shall:

 

(1)  Be maintained in good repair, and in sound working condition;

 

(2)  Be used, played and operated so that each player is given an equal opportunity to win;

 

(3)  Be assistive in nature;

 

(4)  Not allow the player to play against a machine;

 

(5)  Not be in the nature of a slot machine, as prohibited by RSA 287-D:1, III;

 

(6)  Not be used to regulate odds, or are progressive in nature, as prohibited by RSA 287-D:17, II;

 

(7)  Not compromise the fairness or integrity of the game; and

 

(8)  Not otherwise be prohibited by the laws of New Hampshire.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1207.05  Surveillance Requirements.

 

          (a)  As set forth in RSA 287-D:15, I, surveillance of the gaming area shall comply with the following:

 

(1)  A game operator employer conducting games of chance at a facility that is required to be licensed pursuant to RSA 287-D:7 shall conduct and record, at the expense of the game operator employer, video surveillance that allows clear, unobstructed views of cashier transactions, table games where cash wagers are accepted, and the counting of money from storage boxes removed from a gaming table;

 

(2)  Surveillance shall:

 

a.  Include the customer, the employee, and the surrounding area; and

 

b.  Monitor and record with sufficient clarity to identify employees and customers in all areas where currency is counted, verified, sorted, stacked, or stored, including monitoring and recording all table game drop boxes, safes, and counting surfaces, and all cashier personnel;

 

(3)  The counting surface area shall be continuously monitored and recorded by a dedicated camera during the count;

 

(4)  Access to the surveillance equipment shall be limited to management personnel, designated employees, state regulators, and other persons authorized in accordance with the surveillance policy;

 

(5)  The game operator employer shall ensure at least one person at the facility while games of chance are being conducted is trained in the use of the equipment, knowledge of the games, and all applicable regulations;

 

(6)  Each camera required by these rules shall be installed in a manner that will prevent it from being readily obstructed, tampered with, or disabled by customers or employees;

 

(7)  Each malfunction of surveillance system equipment required by the standards in this section shall be repaired within 72 hours after the malfunction is discovered, if practicable, provided any such malfunction is be reported to the commission immediately; and

 

(8)  In the event of a dedicated camera malfunction, the game operator employer or the surveillance person shall immediately provide alternative camera coverage or other security measures.

 

          (b)  In accordance with RSA 287-D:15, II, the surveillance system, at a minimum, shall:

 

(1)  Have an auxiliary or backup power source available and capable of providing immediate restoration of power to all elements of the surveillance system;

 

(2)  Include date and time generators that possess the capability to display the date and time of recorded events on all digital recordings. The displayed date and time shall not significantly obstruct the recorded view;

 

(3)  Utilize cameras that possess the capability of having a picture displayed on a monitor and recorded;

 

(4)  Include sufficient numbers of monitors and recorders to simultaneously display and record multiple table games and count room activities, and record the views of all dedicated cameras and motion-activated cameras; and

 

(5)  Record at 30 frames per second or its equivalent.

 

          (c)  As required by RSA 287-D:15, III:

 

(1)  All digital records of coverage provided by cameras required by this section shall be retained for a minimum of 45 days except as otherwise provided in this paragraph;

 

(2)  Recordings involving suspected or confirmed gaming crimes, unlawful activity, or actions of investigations by management personnel shall be retained indefinitely until released by the commission, and a copy of any report and video shall be forwarded to the commission;

 

(3)  Duly authenticated copies of digital records shall be provided to the commission upon request;

 

(4)  Multiple recordings shall be made to avoid any loss of images in the event of a hardware failure;

 

(5)  A recording library log shall be maintained to demonstrate compliance with the storage, identification, and retention standards required in this section; and

 

(6)  Except when provided a written notice by the commission requesting the records to be retained as part of an ongoing investigation, all recordings may be destroyed after a period of 45 days.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

PART Pari 1208  RECORDKEEPING AND REPORTING

 

          Pari 1208.01  Recordkeeping Requirements.

 

          (a)  In accordance with RSA 287-D:22, VI, a charitable organization shall maintain complete and accurate documentation of all revenues and expenses contained in the financial reports for at least 2 years from the date the financial report is filed.

 

          (b)  The records required by (a) above shall include, at a minimum, the following information:

 

(1)  Policy and procedure manuals governing gaming activities, procedures related to the operation of a game, including play, surveillance, security, revenue collection, and accounting for, reporting, and auditing the results produced;

 

(2)  Documentation of information technology procedures and controls, including monitoring systems for security incidents, data back-up, and maintenance of systems to ensure integrity of games, including copies of written manuals for surveillance systems, gaming computer programs, and accounting programs;

 

(3)  Copies of all financial records including:

 

a.  A formal bookkeeping system that records all receipts and expenditures in connection with the conduct of games of chance and the disbursement of net proceeds derived therefrom;

 

b.  All supporting documentation related to the bookkeeping record required in a. above for all games of chance, including:

 

1.  All bank statements, check registers, and reconciliations for games of chance bank accounts;

 

2.  Bank deposit slips and canceled checks or copies of checks for games of chance bank accounts;

 

3.  All invoices and receipts for all games of chance related purchases; and

 

4.  Canceled checks, or other backup documentation, such as confirmation of an electronic transfer, for the payment of expenses and prizes; and

 

c.  Financial reports submitted to the commission;

 

(4)  A detailed list of manufacturers and distributers and the type of gaming equipment purchased from each, as required by RSA 287-E:14, XXII;

 

(5)  A record of work schedules and table assignments for all persons that participated in the operation of a game of chance, including:

 

a.  The individual’s names, addresses and phone numbers;

 

b.  The date, time and location of each game that the individual participated in, including sign-in sheets and time cards, if applicable; and

 

c.  The type of participation the individual had in the game on each game date;

 

(6)  Copies of documentation related to the operation of games of chance, including:

 

a.  Pre-numbered 3-part, table credit and fill slips;

 

b.  Pit game table reconciliation sheets;

 

c.  Cash poker table reconciliation sheets;

 

d.  Cage accountability form summarizing daily cage activities;

 

e.  Cage inventory count sheets supported by employee signatures;

 

f.  Inventory transfer to and from cage documentation sheets;

 

g.  Chip inventory documentation forms, including purchase, receipt, balances on hand, storage, and destruction;

 

h.  Tournament sign-in or registration sheets, buy-in, re-buy, and add-on documentation slips;

 

i.  Tournament reconciliation sheets; and

 

j.  Documentation for all prize and promotional payouts;

 

(7)  Documentation of the calculation of charity allocation and state tax;

 

(8)  All written contracts, agreements, leases, rental agreements, or any other statement of understanding regarding the operation of games of chance; and

 

(9)  An organization chart listing titles, roles, and responsibilities.

 

          (c)  In accordance with RSA 287-E:22, V, all records pertaining to the games of chance shall be maintained by the treasurer of the charitable organization or other duly authorized director, officer, or official of the charitable organization and shall be made available upon request to the commission, the attorney general, or the chief of police where games of change are held.

 

          (d)  All licensees shall create, prepare and maintain accurate and reliable business and accounting records that are secured from theft, loss, or destruction.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

          Pari 1208.02  Financial Report Requirements.

 

          (a)  Pursuant to RSA 287-D:22, I, a, the charitable organization shall submit a “Games of Chance Monthly Financial Report” (3/2015) to the commission within 15 days of the end of each month during which a game of chance was held.

 

          (b)  When a charitable organization hires a game operator employer to conduct the games of chance on its behalf, but the organization choses to complete and submit its own financial reports, the game operator employer shall provide the charitable organization with the financial records necessary to complete the financial report within 5 business days of each game date.

 

          (c)  If the charitable organization does not receive the financial information within 5 business days of each game date, as required by (b) above, the charitable organization shall immediately notify the commission in writing.

 

          (d) Net losses shall be reported as follows on the financial report:

 

(1)  The net losses from house-backed games may be offset against net income from house-backed games held on different game dates within the same reported month; and

 

(2)  The net loss from house-backed games shall not be offset against raked or tournament games.

 

          (e)  Pursuant to RSA 287-D:22, II(c), when the charitable organization conducts its own games of chance, the organization shall include, with its financial report, the names and address of the members who participated in the games of chance.

 

          (f)  Pursuant to RSA 287-D:22, I, the report required in (a) above shall be completed and submitted by either:

 

(1)  The treasurer of the charitable organization or a duly authorized officer, director or official who certifies such accounting under oath; or

 

(2)  The licensed primary game operator under contract to conduct games of chance on behalf of the charitable organization.

 

          (g)  The functions of bookkeeper and duly authorized signer of checks shall not be performed by the same person.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12019, eff 10-27-16

 

PART Pari 1209  STATE REVENUE PAYMENTS

 

          Pari 1209.01  State Revenue Payments to the State Treasurer.

 

          (a)  In accordance with RSA 287-D:19, II(a), no charitable organization shall receive less than 35 percent of the gross revenues from any games of chance minus any prizes paid and rental charges.

 

          (b)  Pursuant to RSA 287-D:20, charitable organization, or the game operator employer hired to act on the organization’s behalf, shall submit state revenue payments to the commission as follows:

 

(1)  In games where chips have no monetary value, a payment equal to 3 percent of all funds collected from players, including but not limited to buy-ins and re-buys, per game date; and

 

(2)  In games where chips have monetary value, a payment equal to 10 percent of the rake or house winnings and other moneys collected, including but not limited to buy-ins and re-buys, that are not paid out as prizes to players.

 

          (c)  Payments required by (b) above shall be:

 

(1)  Made once per month, no later than the 5th day of the month for the funds collected in the previous month;

 

(2)  In an amount of no less than zero per game date;

 

(3)  Paid by check, and including the charitable organization’s identification number and game date on the check; and

 

(4)  Submitted with completed “State Revenue Invoice for Games of Chance” (6/2016) and “Charitable Organization Member’s Attestation” (6/2016) forms for each game date.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 

PART Pari 1210  PENALTIES

 

          Pari 1210.01  Penalties.

 

          (a)  Pursuant to RSA 287-D:23, III, VIII, and IX, disciplinary measures available to sanction misconduct shall include:

 

(1)  Imposition of an administrative order or fine;

 

(2)  Suspension of a license for a period of up to one year; and

 

(3)  Revocation of a license.

 

          (b)  Other than the immediate suspension of a license, the commission shall impose disciplinary sanctions only:

 

(1)  After prior notice to the licensee and the opportunity for him or her to be heard per the requirements of RSA 541-A:3-, II; or

 

(2)  By agreement in a settlement between the commission and the licensee made pursuant to Sw 200.

 

          (c)  The commission shall provide all notices, and conduct all hearings in accordance with the requirements set forth in RSA 541-A, Sw 200, and this part, as applicable.

 

(d)  The commission shall apply the following factors to determine which sanction or combination of sanctions to impose:

 

(1)  The seriousness of the offense;

 

(2)  Prior disciplinary record(s);

 

(3)  Previous and subsequent patterns of conduct;

 

(4)  Acknowledgment of his or her wrongdoing;

 

(5)  Willingness to cooperate with the commission;

 

(6)  Action taken to correct the problem;

 

(7)  The purpose of the rule or statute that was violated;

 

(8)  The potential harm to public health, safety and welfare; and

 

(9)  The nature and extent of the enforcement activities required of the commission as a result of the offense.

 

          (e)  The commission shall select appropriate sanction(s) by choosing the sanction(s) most likely to:

 

(1)  Protect public health, safety or welfare;

 

(2)  Prevent future misconduct;

 

(3)  Correct the attitudinal, educational, or other deficiencies which led to the misconduct;

 

(4)  Encourage the responsible practices of operating a charitable gaming event; and

 

(5)  Insure the integrity of charitable gaming in New Hampshire.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12096, eff 1-27-17

 

          Pari 1210.02  Administrative Fines.

 

          (a)  Pursuant to RSA 287-D:23, IX, when the commission imposes an administrative fine upon a person or entity for a violation of RSA 287-D or this chapter, the order shall be scaled to reflect the scope of the violation for each offense.

 

          (b) When the commission has determined that a violation or violations of RSA 287-D, or this chapter have occurred, the commission shall send a written notice of proposed fine(s), by certified mail or hand delivery, to the person, entity, applicant or licensee of the commission’s intent to assess a fine.

 

          (c)  The written notice required under (b) above shall contain the following information:

 

(1)  The violation(s) alleged by the commission and the facts on which the allegations are based;

 

(2)  The statutory section(s) that authorize(s) the commissioner to impose a fine;

 

(3)  The amount of the fine for each violation sited and the total amount of fine(s) being sought; and

 

(4)  The respondent’s right to request an adjudicative hearing prior to the imposition of the fine;

 

(d)  In accordance with RSA 287-D:23, IX, any administrative fine imposed under this section shall not preclude the imposition of further penalties or administrative actions under RSA 287-D, or this chapter.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12096, eff 1-27-17

 

          Pari 1210.03  Administrative Fine Schedule.

 

(a)  For the purposes of this section, a “minor violation” means conduct, action, or failure to act by any person, entity, applicant or licensee individual, or entity that was not:

\

(1)  Of a nature, quality, or extent to effect or potentially effect the integrity of the charitable game(s) being conducted;

 

(2)  Of a nature, quality or extent to cause or potentially cause harm to the interest of the state or the charitable organization;

 

(3)  A knowing, willful, or intentional violation;

 

(4)  A violation that is chronic or part of a continuing pattern or practice of the licensee;

 

(5)  An indication of a recalcitrant violator or one that has engaged in a pattern of neglect or disregard with respect to applicable regulatory requirements;

 

(6)  An act that enabled the violator to benefit economically from the noncompliance; or

 

(7)  Intended to hinder the ability of the commission to determine compliance with any other applicable local, state or federal regulation, information request, order or other requirement.

 

          (b)  Minor violations shall include, but not be limited to:

 

(1)  Failing to wear a properly issued identification badge, as required by Pari 1207.01(d);

 

(2)  Failing to prominently display documents, as required by Pari 1207.02(a);

 

(3)  Failing to post a diagram at each table where the games of change are going played indicating the type of game being played, the bet amount, the buy-in amount, and the re-buy amounts, as applicable; or

 

(4)  Failing to publicly displaying the name of the licensed charitable organization sponsoring the event.

 

          (c)  The commission shall impose a fine of no less than $25, and no more than $500 per minor violation committed by any person, entity, applicant or licensee.

 

          (d)  For the purposes of this section, a “moderate violation” means conduct, action, or failure to act by any person, entity, applicant, or licensee that exceeds the strict definition of a minor violation, as define in (a) above, but do not meet the level of severity of a major violation, as defined in (g) below.

 

          (e)  Moderate violations shall include, but not be limited to:

 

(1)  Failing to submit any reports by the due date. Each different type of report or record requested but not provided shall constitute a separate violation subject to a separate fine;

 

(2)  Operating a game not specifically listed on the game schedule, or on a different date than indicated on the license without approval of the commission;

 

(3)  Operating games in a manner that differs from the house rules approved by the commission;

 

(4)  A charitable organization member’s failure to be present and on site at least once per day during the operation of the games of chance, as required by RSA 287-D:14, XI; or

 

(5)  Committing 3 or more minor violations within 2 years.

 

          (f)  The commission shall impose a fine of no less than $250, and no more than $1,500 per moderate violation committed by any person, entity, applicant or licensee.

 

          (g)  A “major violation” means conduct, action or failure to act by any person, entity, applicant, or licensee that is:

 

(1)  Of a nature, quality, or extent to effect or potentially effect the integrity of the charitable game(s) being conducted;

 

(2)  Of a nature, quality or extent to cause or potentially cause harm to the interest of the state or the charitable organization;

 

(3)  A knowing, willful or intentional violation;

 

(4)  A violation that is chronic or part of a continuing pattern or practice of the licensee;

 

(5)  An indication of a recalcitrant violator or one that has engaged in a pattern of neglect or disregard with respect to applicable regulatory requirements;

 

(6)  An act that enabled the violator to benefit economically from the noncompliance; or

 

(7)  Intended to hinder the ability of the commission to determine compliance with any other applicable local, state or federal regulation, information request, order or other requirement.

 

(h)  Major violations shall include, but not be limited to:

 

(1)  Establishing, maintaining, operating, or otherwise offering games of chance without a license, or with a suspended license;

 

(2)  Sponsoring a game of chance with a game operator who is not licensed;

 

(3)  Falsifying a games of chance license;

 

(4)  Knowingly operating a game of chance without a representative for the charitable organization present as required by RSA 287-D:14, XI;

 

(5)  Operating a game in a manner that tends to deceive the public or affect the chances of winning or losing, including the use of equipment that has been altered or tampered with;

 

(6)  Failing to make available any records required by the commission for investigation, monitoring or licensing purposes, as required by Pari 1208.01(c);

 

(7)  Furnishing or making false or misleading statements or reports to the commission, or directing, requiring or knowingly allowing another member or personnel of the organization or entity to furnish or make false or misleading statements or report to the commission;

 

(8)  Failing to cooperate during any visit authorized under RSA 287-E or this chapter; or

 

(9)  Committing 5 or more minor violations or 3 or more moderate violations within 2 years.

 

(i)  The commission shall impose a fine of no less than $1,000, and no more than $5,000 per violation of each major violation committed by any person, entity, applicant or licensee.

 

(j)  In determining the actual amount of a fine, the commission shall consider:

 

(1)  The degree of non-compliance;

 

(2)  Prior history of violations of the same or similar nature;

 

(3)  The consequences of the violation, including the economic impact to the state and other affected parties; 

 

(4)  The nature and persistence of the violation;

 

(5)  The extent of any remedial or corrective action taken;

 

(6)  The good or bad faith exhibited by the cited individual(s);

 

(7)  Evidence that the violation was willful;

 

(8)  The extent to which the individual cooperated with the board's investigation;

 

(9)  The cost of any investigation or hearing conducted by the commission;

 

(10)  The licensee’s ability to pay a fine assessed by the commission; and

 

(11)  Any other mitigating or aggravating factors.

 

          (k)  Except as otherwise noted, the penalties prescribed in (a)-(j) above shall be imposed for each day that the person, entity, applicant, or licensee is not in compliance, beginning with the date that the notification under Pari 1210.01(a) above is issued and continuing for each day of non-compliance, or until the date of compliance.

 

          (l) Payment of any imposed administrative fine to the commission shall meet the following requirements:

 

(1)  If the recipient of a notice described in Pari 1210.01(a) above waives or is deemed to have waived his or her right to an adjudicative hearing, the respondent shall pay the fine by the date specified in the notice, which shall not be less than 25 days from the date of the notice of the proposed fine;

 

(2)  If an adjudicative hearing is conducted and the commission’s decision to assess a fine is upheld, the fine shall be due and payable within 10 calendar days of the date of the decision, or such longer time period as is specified in the decision;

 

(3)  Payment shall be made in the form of personal check or money order which is made payable to “Treasurer, State of New Hampshire,” or cash in the exact amount due;

 

(4)  Any payment submitted to the treasury department in the form of a check or money order and returned to the state for any reason shall be processed in accordance with RSA 6:11-a; and

 

(5)  Cash, money order, or certified check shall be required when any past payment to the commission by personal check has been returned for insufficient funds.

 

          (m)  Nonpayment of a fine by a licensee or respondent in contravention of an order, agreement or promise to pay, shall be a separate ground for discipline by the commission, a basis for denying a subsequent license or renewal application, and a basis for judicial action seeking to collect the fine.

 

          (n)  If a licensee or respondent fails to pay a fine in accordance with (l) above, the fine shall be $100, plus an additional fine of $50.00 per day for each day for which the commission does not receive payment in full.

 

          (o)  If a licensee corrects and then subsequently repeats a violation for which a fine was previously issued in accordance with (a)-(n) above, the fine shall be doubled from that of the previous fine such that, for example, an original fine of $100 shall become $200 for the first time the offense is repeated, $300 for the second time the offense is repeated, $400 for the third time the offense is repeated, and so on.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12096, eff 1-27-17

 

          Pari 1210.04  Suspensions, Revocations and Refusals to Renew a License.

 

          (a)  The commission shall revoke, suspend, or refuse to renew a license when, based upon the facts of the case, imposition of an administrative fine would not protect the public’s interests.

 

          (b)  If a reason exists, as set forth in (c) below, to suspend, revoke, or refuse to renew a license the commission shall notify the licensee in writing of:

 

(1)  The intended action;

 

(2)  The reason(s) for the intended action;

 

(3)  The licensee’s right to request an adjudicative hearing to show compliance with all lawful requirements for the retention of the license, and that such a request must be filed within 15 days of the date of the notice; and

 

(4)  In the case of a notice of suspension, notification that if the deficiencies are not corrected within the specified time, the license shall be deemed revoked.

 

          (c)  Except as allowed by (g) below, the commission shall proceed to revoke a license if the commission determines that one or more of the following reasons for revocation exist:

 

(1)  Failure to comply with the conditions of the license or this chapter, such as a charitable organization’s failure to maintain federal tax exempt status;

 

(2)  Failure to take corrective action following the suspension of a license;

 

(3)  An inability or unwillingness to comply with RSA 287-D or this chapter, as demonstrated by a pattern of violations;

 

(4)  Failure to comply with the requirements set for in this chapter or any commission order to submit records, bank statements, or any other paraphernalia associated with the operation of games of chance;

 

(5)  Providing false information to the commission, including willfully and knowingly making false statements or makes false entries in any books or records with respect to any transaction connected with the holding, operating, and conducting of any games of chance event;

 

(6)  Failure to remit any license fees or other amounts due to the state;

 

(7)  Hindering or obstructing an authorized representative of the commission in the performance of official duties, such as refusing to access to the premises, or failing to produce any books, records or documents for review;

 

(8)  Failure to comply with the terms and conditions of an administrative order issued by the commission in accordance with RSA 287-D:23, VIII;

 

(9)  Failing to pay any administrative, civil, or criminal penalties owed to the commission;

 

(10)  Any conduct by the licensee that undermines the public confidence in charitable gaming or serves the interest of organized gambling or crime and criminals in any manner;

 

(11)  Manipulating the outcome of any game or otherwise compromising the integrity of the game;

 

(12)  Participating in illegal activities including possessing illegal gambling equipment, or permitting illegal gambling in the premises;

 

(13)  Willfully and knowingly conducting business with unauthorized entities;

 

(14)  Any material violation of RSA 287-D, as it applies to games of chance, or this chapter; or

 

(15)  Operating without a valid gaming license in any state or commonwealth in the United States.

 

          (d)  Upon the effective date of the revocation, the licensee shall immediately cease holding itself out to the public as a licensee of the commission, and cease engaging in any act for which licensing is required.

 

          (e)  Failure to comply with (d) above shall constitute separate grounds for further disciplinary action.

 

          (f)  In accordance with RSA 287-D:23, III, any licensee whose license is revoked shall be ineligible for licensure for a period of up to one year from the date of revocation.

 

          (g)  If a license has been revoked, the commission shall not issue a subsequent license until:

 

(1)  The passage of the amount of time specified in the revocation order;

 

(2)  The licensee submits an application in accordance with this chapter;

 

(3)  The licensee demonstrates that the cause for revocation no longer exist; and

 

(4)  The licensee demonstrates that any corrective actions that were ordered by the commission have been fully implemented.

 

          (h)  The commission shall proceed to suspend a license if the commission determines that one or more reasons to revoke as license, as described in (c) above, exist, but:

 

(1)  The licensee did not act with intent to deceive; and

 

(2)  The deficiency(ies) can be corrected to conform to applicable requirements.

 

          (i)  Upon the effective date of the suspension, the licensee shall immediately cease engaging in any act for which a license is required until the commission grants reinstatement pursuant to (l) below.

 

          (j)  Failure to comply with (i) above, shall constitute separate grounds for further disciplinary action.

 

          (k)  The minimum period for suspension shall be that amount of time necessary for the licensee to take corrective action ordered by the commission and return to compliance.

 

          (l)  The commission shall reinstate a suspended license when:

 

(1)  The licensee submits to the commission a written request for the license to be reinstated with documentation demonstrating that all of the corrective actions ordered by the commission have been taken; and

 

(2)  The commission determines that all corrective actions have, in fact, been taken and the licensee has returned to compliance.

 

          (m)  If the commission does not grant the request for reinstatement it shall so notify the petitioner and provide the opportunity for a hearing.

 

          (n)  A suspension shall have no effect upon the expiration of a license.

 

          (o)  If, after receiving a request for renewal of a license, the commission has information that indicates that a reason, as set forth in (c) above, exists to refuse to renew the license, the commission shall inform the licensee of the information and offer an opportunity for the licensee to respond to the information prior to a decision being made on the application for renewal.

 

          (p)  The commission shall not issue a license until such time as the reason(s) for the refusal to renew have been corrected.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12096, eff 1-27-17

 

          Pari 1210.05  Immediate License Suspension.

 

          (a)  When the commission receives information indicating that a licensee has engaged in supplying false or incomplete information, or has engaged in misconduct that poses an immediate danger to the public’s welfare, the commission shall issue an order pursuant to RSA 541-A:30, III, that sets forth the alleged misconduct and immediately suspends the license for up to 10 working days pending commencement of an adjudicatory proceeding.  If commenced within 10 working days, the suspension shall continue until there is a decision in the proceeding.

 

          (b)  Suspension orders under this section shall include the notice of hearing pursuant to Sw 200.

 

          (c)  No hearing date established in a proceeding conducted under this section shall be postponed at the request of the licensee unless the licensee also agrees to continue the suspension period pending issuance of the commission's final decision.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12096, eff 1-27-17

 

          Pari 1210.06  Appealing a Decision.

 

          (a)  Any person aggrieved by the commission’s decision to deny, suspend, or revoke a license may appeal the decision by submitting a request for an administrative hearing in accordance with (b) below.

 

          (b)  Within 15 days of the date on the notice issued pursuant to Pari 1213.02(c) above, the recipient of the notice shall submit a written response to the commission that indicates that the recipient either:

 

(1)  Waives their right to an adjudicative hearing; or

 

(2)  Requests an adjudicative hearing.

 

          (c)  If the commission receives a written request for an adjudicative hearing in accordance with (b) above, the commission shall proceed in accordance with the provisions of RSA 541-A, and Sw 200 as they apply to adjudicative proceedings.

 

          (d)  If a recipient of a notice fails to submit a response in accordance with (b) above, the recipient will be deemed to have waived the right to an adjudicative hearing, and the penalty will be affirmed.

 

          (e)  If any participant who receives notice of an adjudicative hearing fails to appear at the hearing, the hearings officer shall hear the evidence and testimony of the participant(s) attending the hearing and render an opinion based thereon.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12096, eff 1-27-17

          Pari 1210.07  Rehearings.

 

          (a)  Except as provided in (b) below, within 30 days after any order or decision has been made by the commission, any party to the action or proceeding before the commission, or any person directly affected thereby, may apply for a rehearing in respect to any matter determined in the action or proceeding, or covered or included in the order.

 

          (b)  Pursuant to RSA 287-D:24, any person aggrieved by a decision of the commission may appeal the decision by requesting a rehearing within 15 business days from the date of the decision. Rehearings and appeals shall be governed by RSA 541.

 

          (c)  In accordance with RSA541:4, such motion shall set forth fully every ground upon which it is claimed that the decision or order complained of is unlawful or unreasonable.

 

          (d)  In accordance with RSA 541:5, upon the filing of such motion for rehearing, the commission shall within 10 days either grant or deny the same, or suspend the order or decision complained of pending further consideration, and any order of suspension shall be upon such terms and conditions as the commission shall prescribe.

 

          (e)  Pursuant to RSA 541:3 and RSA 541:4, the commission shall grant a rehearing when the party states good reason for such relief and demonstrates that a decision is unlawful or unreasonable.  Good reason may be shown by identifying specific matters that were overlooked or mistakenly conceived by the deciding tribunal, or by identifying new evidence that could not have been presented in the underlying proceeding.  A motion for rehearing that does not meet these standards shall be denied.

 

          (f)  In accordance with RSA 541:6, within 30 days after the motion for a rehearing is denied, or, if the motion is granted, then within 30 days after the decision of such hearing, the moving party may appeal by petition to the supreme court.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12096, eff 1-27-17

 

          Pari 1210.08  Subpoenas.

 

          (a)  In accordance with RSA 287-D:25, the commission shall, pursuant to (b) below, issue subpoenas for witnesses and for documents relative to investigations or adjudicatory hearings held by the commission.

 

          (b)  The commission shall issue a subpoena for the attendance of witnesses or the production of evidence upon a showing that:

 

(1)  The testimony or evidence is necessary, relevant and non-repetitive; and

 

(2)  The witness or evidence cannot be voluntarily obtained.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12096, eff 1-27-17

 

Pari 1210.09  Criminal Penalties.   In addition to the penalties described in this chapter, licensees shall also be subject to the criminal penalties set forth in RSA 287-D:23, a copy of which is included in Appendix B.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15; ss by #12096, eff 1-27-17

 

PART Pari 1211  WAIVER OF RULES

 

Pari 1211.01  Waiver of Rules.

 

(a)  A person may request the commission to grant a waiver from the application of a rule provided the requirements of this section are met.

 

(b)  A request for a waiver shall:

 

(1)  Be in writing;

 

(2)  Include the specific reference to the rule(s) by number for which a waiver is being sought;

 

(3)  Explain the fact which the person relies upon to support the request for a waiver including:

 

a.  Why a waiver is necessary;

 

b.  The alternatives proposed by the requestor; and

 

c.  Why the requestor believes that the waiver being requested meets the criteria in (c) below; and

 

(4)  Specify the period of time for which the waiver is sought.

 

(c)  The commission shall grant the waiver if:

 

(1)  The purpose of the rule would be satisfied by the alternative method proposed;

 

(2)  The waiver does not result in any material prejudices;

 

(3)  Granting the waiver does not conflict with any applicable statute.

 

(d)  The commission shall render a decision to grant or deny the request for a waiver within 45 days of the filing of the request.

 

(e)  The commission shall notify the person in writing within 10 days of the decision to grant or deny the request in writing.

 

(f)  The applicant or licensee’s subsequent compliance with the alternatives approved in the waiver shall be considered equivalent to complying with the rule from which waiver was sought.

 

(g)  Waivers shall not be transferable.

 

(h)  When a licensee wishes to renew the waiver beyond the approved period of time, the licensee shall apply for a new waiver by submitting the information required by (a) above:

 

(i)  The request to renew a waiver shall be subject to (b) through (e) above.

 

Source.  (See Revision Notes #1 and #2 at chapter heading for Pari 1200) #10929, eff 9-10-15

 


 

 

APPENDIX A

RULE

SPECIFIC STATE STATUTE THE RULE MPLEMENTS*

 

 

Pari 1201

RSA 287-D:3, XVII

Pari 1202

RSA 287-D: 3, XVII

Pari 1202.02

RSA 287-D:1, V; RSA 287-D:3, XVII; and Chapter 276:121 of the Laws of 2015

Pari 1203

RSA 287-D:3, I-IV,  X, XIII, XIV; RSA 287-D:5-10;

RSA 287-D:13

Pari 1203.01(b) intro and (b)(1)

RSA 287-D:3, I

Pari 1203.03(b) intro and (b)(1)

RSA 287-D:3, I

Pari 1203.04(c) intro and (c)(1)

RSA 287-D:3, I

Pari 1203.05(c) intro and (c)(1)

RSA 287-D:3, I

Pari 1203.07(b) intro and (b)(1)

RSA 287-D:3, I

Pari 1204

RSA 287-D:3, X; RSA 287-D:11-12

Pari 1204.01

RSA 287-D:3, X; RSA 287-D:11-12 and 28 CFR 16.34

Pari 1205

RSA 287-D:3, I-IV, X, XIII, and XIV; RSA 287-D:5-10

Pari 1206

RSA 287-D: 3, VI and VIII; RSA 287-D:6, IV; RSA 287-D:14;

RSA 287-D:19

Pari 1206.01(a) intro and (a)(3)

RSA 287-D:3, I; and RSA 287-D:14, XI

Pari 1207

RSA 287-D: 3, VI and VIII; RSA 287-D:6, IV; RSA 287-D:9;

RSA 287-D:14-16; RSA 287-D:18

Pari 1207.03

RSA 287-D:16

Pari 1208

RSA 287-D:3, VIII; RSA 287-D:22

Pari 1208.02

RSA 287-D:3, VIII; RSA 287-D:22

Pari 1209

RSA 287-D:20

Pari 1210

RSA 287-D:3, V, VI, VIII,  IX, XI, XII, & XVII; and RSA 287-D:23-25

Pari 1211

RSA 287-D:3, XVII

 

 

*Statute references are based on RSA 287-D as effective 7/1/15

 

APPENDIX B

Rule

Title

Publisher; How to Obtain; and Cost

Pari 1206.07(g)(4)

 

Pari 1206.07(h)(4)

 

Pari 1207.03(c)(3)

 

Pari 1210.03(i)(3)

The New Complete Hoyle: The Authoritative Guide to the Official Rules of All Popular Games of Skill and Chance Revised Edition by: Albert H. Morehead, Richard L. Frey, Geoffrey Mott-Smith.

Published by Doubleday, February 1991.

 

ISBN: 0385249624, 9780385249621

 

This book is available through booksellers, including Amazon. Used copies are available from Amazon for less than $2.00.

Pari 1206.07(g)(4)

 

Pari 1206.07(h)(4)

 

Pari 1207.03(c)(3)

 

Pari 1210.03(i)(3)

Hoyle's Modern Encyclopedia of Card Games: Rules of All the Basic Games and Popular Variations by Walter B. Gibson

Published by Dolphin Books, March 1974.

 

ISBN: 0385076800, 9780385076807

 

This book is available through booksellers, including Amazon. Used copies are available from Amazon.com for less than $10.

 

Appendix C

 

RSA 287-D:23 Penalties. –

 

    I.  In addition to any other penalties provided by law, any person who violates RSA 287-D shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other person.

 

    II.  Each day on which a game of chance is played in violation of RSA 287-D shall constitute a separate offense.

 

    III.  The lottery commission may suspend or revoke the license of any licensee who violates any provision of this chapter or for just cause shown.  Any licensee whose license is revoked shall not be eligible for licensure for a period of up to one year from the date of revocation.

 

    IV. (a)  Any person who purposely or knowingly makes a false entry in any report required under this chapter which results in a reduction of revenues due to a charitable organization shall be guilty of a class A felony.

 

        (b)  Any person who recklessly or negligently makes a false entry on any report required under this chapter which results in a reduction of revenues due to a charitable organization shall be guilty of a class A misdemeanor.

 

        (c)  Any game operator employer or game operator who fails to remit to a charitable organization all revenues due under this chapter shall be guilty of a class A felony.

 

    V.  Any game operator employer or game operator who fails to pay the charitable organization all moneys required by this chapter shall be guilty of a class B felony for any amount less than $500, and a class A felony for any amount equal to or greater than $500.

 

    VI.  Any person who violates any provision of RSA 637 in a manner that deprives the charitable organization of any moneys required by this chapter, notwithstanding the penalties set forth in RSA 637:11, shall be guilty of a class B felony for any amount less than $500, and a class A felony for any amount equal to or greater than $500.

 

    VII.  In addition to any other penalty imposed under this chapter, a charitable organization that suffers a loss caused by the violation of any provision of this chapter may bring a civil action for actual damages suffered.  If the court finds that the violation was committed purposefully or knowingly, it shall award enhanced compensatory damages of not less than 2 times the amount of actual damages suffered, and may award up to 3 times the amount of actual damages suffered.  In any civil action, the prevailing party shall be awarded court costs and reasonable attorney's fees. No waiver of the provisions of this paragraph shall be enforceable.

 

    VIII.  The lottery commission may issue an order requiring any person or organization to comply with this chapter or any rule adopted pursuant to this chapter, and may require such remedial measures as may be necessary.

 

    IX.  The lottery commission may impose an administrative fine scaled to reflect a violator's prior history of noncompliance with laws pertaining to games of chance and the scope and severity of the violation, after notice and hearing, pursuant to rules adopted under RSA 541-A, for any violation of this chapter, any rule adopted under this chapter, any license issued pursuant to this chapter, or any order issued pursuant to this chapter, or upon any person who makes or certifies to a material false statement relative to any application or report required by this chapter.  In determining the amount of a fine, the lottery commission may take into consideration all relevant circumstances, including: the degree of noncompliance, the extent of harm caused by the violation, the nature and persistence of the violation, the time and cost associated with the investigation by the state, and the economic impact of the violation on the state or the charitable organization conducting or sponsoring the game.  No administrative fine imposed under this paragraph shall preclude the imposition of other penalties as provided by law.  Rehearings and appeals from a decision of the lottery commission under this paragraph shall comply with RSA 541.  Fines imposed by the lottery commission shall be as follows:

 

        (a)  The fine for a minor violation shall be not less than $25 and not more than $500 per violation.  A minor violation shall be one where the lottery commission determines that the potential for harm to the interests of the state and the charitable organization, as well as the integrity of charitable gaming is minor and may include, but is not limited to, the failure of a game operator, a game operator employer, charitable organization, or charitable organization member to:

 

(1)  Wear a properly issued badge;

 

(2)  Post 2 copies of the laws and rules;

 

(3)  Have a diagram available for each table where games of chance are being played indicating the type of game being played, the bet amount, the buy-in amount, and the re-buy amounts as applicable; or

 

(4)  Publicly display the name of the charitable organization.

 

        (b)  The fine for a moderate violation shall be not less than $250 and not more than $1,500 per violation. A moderate violation shall be one where the lottery commission determines that the potential for harm to the interests of the state and the charitable organization, as well as the integrity of charitable gaming is moderate and may include, but is not limited to, a game operator, game operator employer, charitable organization, or charitable organization member:

 

(1)  Filing a late financial report;

 

(2)  Operating a game not specifically listed on the game schedule;

 

(3)  Operating a game on a different date than licensed without approval of the lottery commission;

 

(4)  Committing 3 or more minor violations within 2 years; or

 

(5)  Knowingly operating a game of chance without a representative of the charitable organization present as specified in RSA 287-D:14, XI.

 

        (c)  The fine for a major violation shall be not less than $1,000 and not more than $5,000 per violation.  A major violation shall be one where the lottery commission determines that the potential for harm to the interests of the state and the charitable organization, as well as the integrity of charitable gaming is major and shall include, but is not limited to, a game operator, game operator employer, charitable organization, or charitable organization member:

 

(1)  Operating a game of chance without a license;

 

(2)  Operating a game of chance without having the personnel or officials required;

 

(3)  Purposely operating a game of chance without a representative of the charitable organization present as specified in RSA 287-D:14, XI;

 

(4)  Operating a game of chance with game operators who are not licensed;

 

(5)  Failing to establish or maintain a New Hampshire bank account; or

 

(6)  Committing 5 or more minor violations or 3 or more moderate violations within 2 years.

 

        (d)  The lottery commission may suspend any part of a fine for just cause.

 

  X. All fines imposed by the lottery commission shall be deposited in the special fund established pursuant to RSA 284:21-j.

Source. 2014, 329:1, eff. July 1, 2015. 2015, 276:127, eff. July 1, 2015