La. Admin. Code tit. 42 § III-2727

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-2727 - Race Book, Riverboat Licensee Only

A. This Section shall only apply to a licensee as defined in R.S. 27:44 pursuant to R.S. 27:86.

B. Access to the computer system shall be adequately restricted. Adequate restrictions in this context include changing passwords and physically restricting access to computer hardware.

C. Procedures shall be developed prior to commencement of gaming for use in case of hardware failure, power failure, fire, or other similar events.

D. All race book wagers shall be transacted through the computer system. In case of computer failure, tickets may be written up to 24 hours after the failure. In those instances where system failure has occurred and tickets are handwritten, a log shall be maintained which includes:

1. date and time of system failure;

2. reason for failure; and

3. date and time system restored.

E. All handwritten or paid tickets shall be entered into the computer system as soon as possible to verify the accuracy of the write and the payout. This does not apply to purged, unpaid winning tickets. All manually-paid tickets shall be re-graded as part of the end-of-day audit process should the computer system be inoperative.

F. The time generated by the computer during ticket writing shall be tested each day by a supervisor independent of the ticket writing and cashiering function. This person may also be independent of the book.

G. The test, and any adjustments necessary due to discrepancies, shall be documented in a log or in an equivalent manner, which includes the station number, date, time of test, time per computer, name or signature of the employee performing test, and any other relevant information.

H. All date, time, and numerical sequence stamping machines used by the book for parlay cards, voiding cards/tickets, and payouts shall be directly and permanently wired to the electrical supply system (or in another approved manner).

I. Only maintenance, engineering or security employees/personnel shall have access to fuses or fuse-like devices used in connection with the machines.

J. At least once during each eight hours of operation, each book shall examine and test the stamping machines to ensure their date and time accuracy to the nearest minute. This test shall be performed by someone independent of the ticket writing function.

K. The test, and any adjustments necessary due to discrepancies, shall be documented in a log which includes the station number, date, time of test, time on machine, name or signature of employee performing the test, and any other relevant information.

L. All original and duplicate keys to the date, time and numerical sequence stamping devices are maintained and used by a department or personnel who are independent of the ticket writing and cashiering functions.

M. Whenever a betting station is opened for wagering or turned over to a new writer, the betting ticket writer shall sign on and the computer documents the writer's identity, the date and time, and the fact that the station was opened on either the unused ticket that is first in sequence or in a separate report.

N. Whenever the betting station is closed or the writer is replaced, the writer shall sign off and the computer documents the date and time, and the fact that the station was closed out on either the unused ticket that is next in sequence after the last ticket written or in a separate report.

O. When a wager is accepted, a betting ticket shall be created which consists of at least three parts.

1. An original which shall be transacted and issued through a printer and given to the patron.

2. A copy which shall be recorded concurrently with the generation of the original ticket either on paper or other storage media, for example, tape or diskette.

3. An internally recorded copy to which access by book employees shall be adequately restricted.

P. If a book voids a betting ticket then:

1. the word "Void" shall be immediately written or stamped and the date and time at which the ticket was voided shall be stamped on the original; and

2. a key employee and one other person shall sign the ticket at the time of voiding.

Q. The computer system shall adequately document supervisory approval for appropriate transactions, as applicable.

R. A race wager shall not be accepted after the occurrence of post time.

S. The computer shall be incapable of transacting or accepting a wager subsequent to the above cutoff times.

T. The computer shall be incapable of voiding a ticket subsequent to the cutoff time unless it produces a report which specifically identifies such voided tickets.

U. The computer shall be incapable of establishing or changing a cutoff or starting time to a time that is earlier than the current time of day.

V. Tickets shall not be written or voided after the outcome of an event is known.

W. Prior to patrons receiving payouts on winning tickets, results shall be input into the computer's administrative terminal for computerized grading of all wagers.

X. Prior to making payment on a ticket or crediting the winnings to the patron's account, the cashier shall input the ticket sequence number into the cashier's terminal. Alternatively, the computer system may automatically update the patron's account when the event results are posted.

Y. Upon computer authorization of payment, the patron is paid and the patron's copy shall be marked "paid", noted with the amount of payment, and date stamped.

Z. For all payouts which are made without computer authorization, documentation supporting and explaining such payouts shall be maintained.

AA. The computer shall be incapable of authorizing payment on a ticket which has been previously paid, a voided ticket, a losing ticket, or an unissued ticket.

BB. Within 72 hours following the payment of a winning ticket for net winnings greater than $10,000 (i.e., payout less initial wager), an employee independent of the ticket verification shall confirm the integrity of the patron's copy by comparing it to, re-grading, and initialing the transaction on the computer sales/transaction report and initialing the patron's copy.

CC. If a progressive pool is used for wagers:

1. adequate documentation shall be retained regarding the rules, increment procedures and any reductions in the progressive amounts;

2. the progressive amount shall be displayed in the book;

3. the progressive liability shall be recorded on a daily basis;

4. audit personnel shall recalculate the progressive increment on a sample basis, at least once a week; and

5. for each writer and cashier station:

a. the system shall indicate the amount of cash that should be in a given drawer; and

b. writers and cashiers shall not be permitted access to this information without supervisory approval.

DD. For each writer station, a summary report shall be completed at the conclusion of each shift including:

1. computation of net cash proceeds for the shift; and

2. signatures of two employees who have verified the net cash proceeds for the shift.

EE. For each cashier station a summary report shall be completed at the conclusion of each shift including:

1. computation of cash turned in for the shift; and

2. signatures of two employees who have verified the cash turned in for the shift.

FF. Employees who write or cash tickets shall not perform administrative or supervisory functions. Administrative functions in this context include setting up events, changing event data, and inputting results at any time. Supervisory functions in this context include approving void tickets, large wagers and access to cash information in the computer.

GG. Race book employees shall be prohibited from wagering on race events while on duty including during break periods.

HH. At a minimum, the following types of reports shall be maintained, if applicable:

1. write transaction report;

2. payout transaction report;

3. credit transaction report;

4. results report;

5. futures report;

6. unpaid winners report;

7. exception report, which include past-post voids, past-post write, voids, and odds changes;

8. daily recap report; and

9. personnel access listing.

II. The reports shall contain, at a minimum, the following information:

1. daily write, payout and credit transaction reports:

a. ticket number;

b. date/time written/paid;

c. type/amount of wager;

d. horse identification;

e. amount of payout; and

f. total by writer/cashier and day;

2. daily futures report, or when applicable:

a. ticket number;

b. date/time written;

c. amount of wager;

d. future wagers for the day by total and broken out by dates of events; and

e. summary of future wagers by dates of events and in total at the time of revenue recognition;

3. daily unpaid winners report:

a. ticket number;

b. date/time written;

c. amount of wager/payout; and

d. totals;

4. daily exception report:

a. ticket number;

b. date/time written;

c. type/amount of wager;

d. exception;

e. time of exception; and

f. summary by exception, listed and sorted by exception type);

5. daily results report:

a. date and time of event per the cutoff time input to the computer;

b. horse number; and

c. event results and any other relevant payoff data;

6. daily recap report:

a. date; and

b. totals:

i. cash write for the day;

ii. futures written for the day;

iii. futures brought back into revenue for the day's events;

iv. accrual write Clause i less Clause ii plus Clause iii of this Subparagraph;

v. cash paid out on prior day's events;

vi. cash paid out on current day's events;

vii. cash payouts for the day;

viii. unpaid tickets for the day;

ix. accrual payouts Clause vi plus Clause viii of this Subparagraph;

x. unpaid winners brought back into revenue;

xi. taxable revenue Clause iv less Clause vii or Clause i less Clause vii of this Subparagraph;

xii. book (accounting) revenue Clause iv less Clause ix plus Clause x of this Subparagraph;

7. personnel access listing:

a. name;

b. employer identification number; and

c. listing of functions employee can perform or equivalent means of identifying same.

JJ. The race book accounting and audit procedures shall be performed by personnel who are independent of the transactions being audited/accounted for.

KK. For a minimum of two writer stations per shift per month, rotated among writers, accounting personnel shall:

1. foot the sequentially connected copy of written tickets and trace the totals to those produced by the system; and

2. review the connected copies for sequential numbering and document follow-up on missing numbers or blank tickets.

LL. Accounting personnel shall foot the customer copy of paid tickets for a minimum of one cashier station per month and trace the totals to those produced by the system.

MM. The write and payouts shall be compared to the cash proceeds/disbursements with a documented investigation being performed on all large variances, which include overages or shortages greater than $100 per writer/cashier.

NN. For all winning and voided race book tickets in excess of $1,000, and for a random sample of 0.2 percent of all other winning race book tickets:

1. the tickets shall be recalculated and re-graded using the computer record of event results;

2. the date and starting time of the race per the results report shall be compared to the date and time stamp on the ticket and in the computer sales/transaction report; and

3. the terms of the wagers per the computer sales/transaction report or per the results report shall be reviewed and compared to an independent source for extravagant or questionable activity.

OO. For all voided tickets:

1. the computer reports which display voided ticket information shall be examined to verify that tickets were properly voided prior to the cutoff times for event wagering; and

2. the voided tickets shall be examined for the word "Void" and proper signatures.

PP. The book's computerized summary of events/results report shall be traced to an independent source for 5 percent of all races to verify the accuracy of starting times and final results, if available from an independent source.

QQ. Exception reports shall be reviewed on daily basis for propriety of transactions and unusual occurrences.

RR. Any investigation performed regarding the exception reports shall be documented.

SS. At least one day per calendar quarter, the computer-generated reports shall be reviewed for proper handling of future wagers and unpaid winners.

TT. Reports shall be maintained for each day, month and year-to-date which indicate the total amount paid out on winning wagers, the net amount won by the book, and the win-to-write percentage.

UU. At least monthly, this information shall be presented to and reviewed by management independent of the race book.

1. Management shall investigate any unusual statistical fluctuations with race book personnel. This review shall be performed by comparing the current period statistics for each type of event with those of applicable prior periods.

2. The results of the investigations shall be documented in writing and maintained for at least five years.

La. Admin. Code tit. 42, § III-2727

Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 38:1648 (July 2012).

AUTHORITY NOTE: Promulgated in accordance with R.S. 27:15 and 24.