N.J. Admin. Code § 13:69F-14.20

Current through Register Vol. 56, No. 19, October 7, 2024

Section 13:69F-14.20 - Bad beat payout and high hand payout interconnected in more than one casino; multi-casino payout system

(a) Two or more casino licensees may jointly offer a bad beat payout or a high hand payout that is interconnected in more than one casino (a "multi-casino payout") and is operated by a multi-casino payout system (payout system); provided, however, that the applicable rules for the multi-casino payout shall be the same at all participating casinos.

(b) A payout system shall be administered by the participating casino licensees in accordance with the terms of a written multi-casino payout system agreement (payout system agreement), which has been approved in advance by the Division and has been executed by each participating casino licensee.

(c) A payout system agreement shall specifically identify and describe the role, authority, and responsibilities of each participating casino licensee in the conduct of the payout system, including without limitation:

1. A description of the process by which decisions that affect the rules and conduct of the multi-casino payout and the operation of the payout system are approved by the participating casino licensees and are implemented by each casino licensee;

2. The manner in which the funds for all multi-casino payouts and any fees or costs associated with the operation of the payout system will be maintained, accounted for, and paid; and

3. The participating casino licensee or licensees responsible for generating and maintaining all records and reports of the payout system, as required by the rules of the Division.

(d) Each and every casino licensee that is a party to a payout system agreement shall:

1. Post in each of its poker rooms:

i. The payout information; and

ii. The names of all casino licensees participating in that payout system, and the name and address of the host casino for the payout system; and

2. Be jointly and severally liable for the payment of all multi-casino payouts and for any acts, omissions, and violations committed by any participating casino licensee in connection with a multi-casino payout or the operation of the payout system, regardless of whether they had knowledge of such act, omission, or violation, and notwithstanding any contractual provision to the contrary.

(e) The casino licensees seeking approval to participate in a payout system shall maintain internal controls for the operation of a payout system, including, at a minimum, procedures for ensuring:

1. The physical and logical security of the central computer or server and any related hardware, software or other devices;

2. The integrity and security of all sensitive data and software, and which, at a minimum, ensure that all data sent through a transmission is completely and accurately received, and that data sent from each participating casino licensee can be separately identified as such;

3. Limited access to the computer system and the sensitive data and software in (e)1 and 2 above;

4. Proper operation of all equipment and software associated with the payout system; such equipment and software shall, at a minimum, have the capability and responsibility for:

i. Notifying all participating casinos and their patrons immediately and simultaneously of a pending multi-casino payout and a confirmed multi-casino payout; provided, however, that, if such notice cannot be immediately provided by means of the payout system, notice shall be provided by such other means but only for the pending payout in question, and no further multi-casino payouts shall be offered at the participating casinos through that payout system until the system becomes operational again;

ii. Documenting for each multi-casino payout the date, time, amount, winning and losing hands, casino location, and the name of each casino employee verifying and authorizing the payout; and

iii. Addressing the claims of players at two or more casinos participating in a payout system who are claiming the same payout; and

5. Secure installation and modification of the computer system that controls, records, and displays the amount of the multi-casino payout, which installation and modifications shall occur only after advance written notice to the Division.

(f) A casino licensee may designate one or more casino key employees to represent the interests of the casino licensee in the operation and control of a payout system.

(g) Each payout system shall comply with the rules of the Division for casino computer systems.

N.J. Admin. Code § 13:69F-14.20

Amended by R.2014 d.069, effective 4/21/2014.
See: 45 N.J.R. 1896(a), 46 N.J.R. 705(a).
Section was "Bad beat payout interconnected in more than one casino; multi-casino bad beat payout system". Rewrote the section.