The purposes and effects of the proposed rules are to update the guidelines that govern cardrooms in the state of Florida. Each of the above listed rules has been updated for clarity, efficiency, and congruency with statute.

Notice of Proposed Rule

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION

Division of Pari-Mutuel Wagering

RULE NOS.:RULE TITLES:

61D-11.001Definitions

61D-11.002Cardroom Games

61D-11.0021Cardroom Game Submissions

61D-11.0025Notification in Writing

61D-11.003Card-Play Hands

61D-11.004Dealer Responsibilities

61D-11.005Prohibitions

61D-11.006Inspection of Premises, Records

61D-11.007Cardroom Operator License

61D-11.009Cardroom Employee Occupational License and Pari-Mutuel/Cardroom Combination License

61D-11.012Duties of Cardroom Operators

61D-11.013Display of Identification and Possession of Occupational Licenses

61D-11.014Cards

61D-11.0175Cardroom Drop, Count Rooms, and Count Procedures

61D-11.018Reporting Requirements to Determine Net Proceeds or Gross Revenues

61D-11.019Internal Controls

61D-11.025Cardroom Electronic Surveillance

61D-11.0275Tournaments

61D-11.0279Jackpots, Prizes, and Giveaways

PURPOSE AND EFFECT: The purposes and effects of the proposed rules are to update the guidelines that govern cardrooms in the state of Florida. Each of the above listed rules has been updated for clarity, efficiency, and congruency with statute.

SUMMARY: The rules in Chapter 61D-11, F.A.C. cover cardroom operations for the state of Florida. The amendments to this rule chapter will bring those operations into better congruency with the Florida Statutes, clarify rule language, and increase the efficiency of operations carried out by the Division. The games themselves, facilities, security, and proper procedures for securing monies will all be addressed.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: The agency has determined that this rule will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency. The agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: the economic review conducted by the agency. Any person who wishes to provide information regarding the statement of estimated regulatory costs, or to provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 550.0251(12), 550.105(2)(b), 849.086(4), (5), (6), (11) FS.

LAW IMPLEMENTED: 550.0251(6), 849.086(4), 849.086 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: December 2, 2015, 9:00 a.m.

PLACE: Northwood Centre Board Room, 1940 North Monroe Street, Tallahassee, FL 32399

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Bryan Barber, Rules Coordinator for the Division of Pari-Mutuel Wagering, 1940 North Monroe Street, Suite 50, Tallahassee, Florida 32399, [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

61D-11.001 Definitions.

(1) “Activity related to cardroom operations” or “cardroom activity”:

(a) Includes any and all activities related to the operation of the cardroom, including activities that require a person to come in contact with or work within the cardroom gaming area, all aspects of management, all aspects of record keeping, all aspects of administration, all aspects of supervision, all aspects of cardroom play, and all activities that support the cardroom operation in any way, unless such activity is specifically excluded from this definition.

(b) No change.

(2) “Add-on” means any additional chips purchased in a tournament which is not considered a buy-in or re-buy.

(3)(2) “All-in” means when a player commits all of his or her chips or tokens into a pot.

(4)(3) “Ante” means a predetermined wager that each player is required to make in some poker games prior to any cards being dealt in order to participate in the round of play.

(5)(4) “Bet” means to wager an amount signified by the number of chips or tokens contributed to a pot on any betting round.

(6)(5) “Betting round” means a complete wagering cycle in a hand of poker after all players have called, folded, checked, or gone all-in.

(7)(6) “Blind” means a predetermined bet a player or players must place on the table before the cards are dealt.

(8)(7) “Business Entity” means a sole proprietorship, general or limited partnership, corporation, business trust, joint venture, or unincorporated association.

(9)(8) “Button” means a circular object moved clockwise around a poker table to denote the assigned dealer for each hand.

(10)(9) “Buy-in” means the amount of money required by the cardroom operator to enter and participate in a game.

(11)(10) “Cardroom gaming area” means any area of a licensed facility designated by the cardroom operator in its floor plan in which authorized games are played or where any type of cardroom operations may occur, such as handling of cash, chips, tokens, dominoes, or cards. The cardroom gaming area shall include entrances and exits.

(12)(11) “Cardroom surveillance” means the employees and systems with capability to observe and electronically record activities being conducted in a cardroom and its supporting areas.

(12) “Cashiers’ Cage” means a physical structure that houses cashiers and serves as the central location for the exchange of currency and chips.

(13) No change.

(14) “Clearing hands” means displaying the front and back of both hands, with fingers spread over the table in sufficient distance from all other players and objects for surveillance recording.

(14)(15) “Cross-cash chips” means cashing chips from one licensed cardroom operator’s facility at a different licensed cardroom operator’s facility.

(15)(16) “Dedicated camera” means a color video camera that continuously records a specific activity.

(17) “Designated player” means the player identified by the button as the player in the dealer position.

(16)(18) “Drop” means the procedure to remove drop boxes before counting the total amount of money, chips, and tokens removed from the drop box.

(17)(19) “Drop Box” means a locked container permanently marked with the number corresponding to a permanent number on the card or domino table.

(18)(20) “Facility” means the cardroom, any storage area for card or domino tables, cards, chips, tokens, dominoes, drop boxes, tip boxes, records relating to cardroom activity, and other cardroom supplies, the count room, and imprest vault.

(21) “Fanning” means spreading a deck of cards in front of the imprest tray so that each card can be identified by surveillance cameras.

(19)(22) “Game” means the completion of all betting rounds and final determination of a winner based upon the comparison of all cards dealt and held by players at the end of all betting at a table.

(20)(23) “Hand” means the group of cards dealt to a player in a game.

(21)(24) “Imprest tray” means any tray in which a predetermined dollar amount of chips, tokens, or U.S. currency is kept.

(22)(25) “Jackpot pool” means an accumulation a cumulative pool of money collected from card games to be that is awarded to a player or players in accordance with section 849.086(7)(d), F.S. who hold a certain combination of cards specified by a cardroom operator.

(23)(26) “Licensee” means a person or entity holding any license issued by the division for purposes of cardroom operations.

(24)(27) “Operate” means to conduct authorized games pursuant to Section 849.086, F.S.

(28) “Playing light” means drawing chips or tokens from the pot to show how much a player owes when the player is out of chips or tokens in an effort to allow a player to continue without chips or tokens, until more chips or tokens are earned.

(25)(29) “Pot” means the total amount wagered in a game or series of games of poker or dominoes.

(26)(30) “Proposition player” means a player who is employed by a cardroom operator, but who uses his own money to initiate or play in games.

(27)(31) “PTZ Camera” means a light-sensitive color video camera that has pan, tilt, and zoom capabilities.

(28)(32) “Raise” means to increase the size of the preceding bet.

(29)(33) “Re-buy” means the additional tournament chips or tokens purchased by players according to the schedule of re-buys prominently displayed in the cardroom during tournament play.

(30)(34) “Round of play” means, for any game of poker, the process by which cards are dealt, bets are placed and the winner is determined and paid in accordance with the rules of Chapter 61D-11, F.A.C.

(35) “Shift” means a period of time designated by the employer during which an employee works when a licensed cardroom is open to conduct business pursuant to Rule 61D-11.012, F.A.C.

(31)(36) “Shill” means a player in a game provided by or employed by a cardroom operator who only bets with money provided by the cardroom operator.

(32)(37) “Showdown” means the point in a poker game in which all hands are fully revealed to all other players and the hand with the best combination becomes the winner.

(38) “Shuffle” means the process of mixing or rearranging a deck of cards to remove the probability that a predetermined series of cards may be drawn from the deck after it is mixed or rearranged.

(33)(39) “Side bets” means additional wagers made between two or more persons on the outcome or any portion of an authorized game other than wagers authorized pursuant to Chapter 849, F.S.

(34)(40) “Supporting areas” means those areas supporting the operation of the cardroom including, but not limited to, surveillance, cashiers’ cages, podiums, vaults, and count rooms.

(35)(41) “Surveillance room” means a secure location in a pari-mutuel facility used for cardroom surveillance.

(36)(42) “Surveillance system” means a system of video cameras, monitors, recorders, and other ancillary equipment used for cardroom surveillance.

(37)(43) “Tip box” means a locked container into which all dealer tips must be inserted.

(38)(44) “Tournament chips” means chips that have no cash value that are used in tournament play.

(39)(45) “Vault” means a secure location where chips and currency are maintained.

Rulemaking Authority 550.0251(12), 849.086(4), (11) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 5-9-04, 9-7-08, 7-21-14,  .

 

61D-11.002 Cardroom Games.

(1) No change.

(2) The cardroom operator shall prominently display a list of all games available for play in the cardroom that have been reviewed by the division for compliance with Chapter 849, F.S., and are included within the cardroom’s internal controls. are authorized pursuant to Chapter 849, F.S.

(3) The cardroom operator shall maintain a copy of the rules of play including wagering requirements. The rules of play shall be made available to the division or to players upon request.

(4) A cardroom operator who has reasonable cause to believe that a player in an authorized game has acted or is acting in one of the following manners may require the player to leave the game or facility.

(a) If a player is not playing the game solely to improve his or her chance of winning;

(b) If a player is taking or attempting to take action to improve another player’s chance of winning;

(c) If a player communicates any information to another player which could assist the other player in any manner respecting the outcome of a game.

(5) Card games that utilize a designated player that covers other players’ wagers shall be governed by the cardroom operator’s house rules. The house rules shall:

(a) Establish uniform requirements to be a designated player;

(b) Ensure that the dealer button rotates around the card table in a clockwise fashion on a hand by hand basis to provide each player desiring to be the designated player an equal opportunity to participate as the designated player; and

(c) Not require the designated player to cover all potential wagers.

Rulemaking Authority 550.0251(12), 849.086(4), (11) FS. Law Implemented 550.0251(6), 849.086(4) FS. History–New 1-7-97, Amended 5-9-04, 4-12-06, 9-7-08, 7-21-14,          .

 

61D-11.0021 Cardroom Game Submissions

(1) A cardroom operator or business occupational licensee shall submit to the division, office of auditing, a complete cardroom game submission for review and evaluation of compliance with the provisions of Section 849.086, F.S., and Chapter 61D-11, F.A.C., prior to the game being included in any cardrooms’ internal controls. The game submissions shall include all of the following:

(a) The name and a description of the game;

(b) A description of the type of table utilized in the game which includes, the shape, and any markings or writing to be made on the table felt;

(c) The number of possible players participating in the game;

(d) Type of card deck(s) used;

(e) A ranking of cards and hands. The rankings shall be supported by documentation establishing it as a poker ranking;

(f) Betting scheme and all possible rules for wagers;

(g) Dealing procedures;

(h) Round of play procedures;

(i) Rake amounts and procedures;

(j) Glossary of Terms

(2) A game submission will not be considered reviewed until the division has posted the game submission to www.myfloridalicense.com/dbpr/pmw.

(3) A cardroom operator may include in their internal controls a game submission from www.myfloridalicense.com/dbpr/pmw by referencing the game by its hyperlink.

Rulemaking Authority 550.0251(12), 849.086(4),(11)FS. Law Implemented 849.086 FS. History – New     .

 

61D-11.0025 Notification in Writing.

Rulemaking Authority 849.086(4) FS. Law Implemented 849.086 FS. History–New 9-7-08, Repealed       .

 

61D-11.003 Card-Play Hands.

(1) The ranking of cards in a poker hand shall be:

(a) Consistent with the rules of Hoyle’s Modern Encyclopedia of Card Games, 1974 Edition, adopted and incorporated herein by reference, or:

(b) Included within the rules of play for that game if the ranking of the cards is different from paragraph (a) of this rule.

(2) If the joker card is to be used in certain games, the house must prominently display within the cardroom area in which games the joker card will be used and how the joker card will be ranked in a showdown.

(1)(3) Before a card game may be played, the dealer must shuffle the cards.

(2)(4) Cards, once completely shuffled, must be dealt out of the hand of the dealer.

(3) If a “button” is used, the button shall designate which player does receive the advantage of playing and betting last.

(5) Each player shall have the option to accept the “button”to:

(a) Receive the advantage of playing and betting last; and

(4)(b) The cardroom operator shall ensure Ensure that the button is may be moved around the card table in a clockwise fashion to provide each player equal opportunity.

Rulemaking Authority 550.0251(12), 849.086(4) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 9-7-08, 7-21-14,    .

 

61D-11.004 Dealer Responsibilities.

(1) A dealer shall not allow a player to enter a card game at his or her table, except as provided for in the cardroom operator’s rules of play.

(1)(2) Dealers shall be rotated to a different table at least every three hours.

(2)(3) A dealer who receives currency from a player at a card table in exchange for chips or tokens must perform the following:

(a) through (d) No change.

(3)(4) Dealers shall take breaks only in areas the cardroom operator has designated on the approved cardroom floor plan, submitted pursuant to subsection 61D-11.012(6), F.A.C. 61D-11.012(7), F.A.C.

(4)(5) Dealers shall accept tips either only while dealing at an assigned table or through a system included within the internal controls. If tips are accepted while dealing at an assigned table, the tip . Tips shall be accepted by:

(a) Tapping the tip on the imprest tray; and

(b) Dropping the tip in the tip box.

(5)(6) The tip box shall will then be counted with all other earned tips for the card dealer’s assigned shift.

(6)(7) Other than tips, dealers shall not accept any items of value or gifts from card players or any patrons of the facility.

(7)(8) Dealers shall not allow cash or other personal items that may inhibit play to be placed on a table during the play of any hand.

(8)(9) Dealers shall:

(a) Clear their hands when cash, chips, or tokens are exchanged with or provided to a player;

(b) Inspect decks of cards at their assigned cardroom tables prior to the beginning of each gaming day or opening of a new table during the gaming day;

(c) Inspect decks of cards when a new deck of cards is replaced for use at their assigned table; and

(d) Inspect both sides of each card by spreading the deck of cards in front of the imprest tray so that each card can be identified by surveillance cameras fanning them.

Rulemaking Authority 550.0251(12), 849.086(4) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 5-9-04, 9-7-08, 7-21-14,    .

 

61D-11.005 Prohibitions.

(1) No change.

(2) No change.

(3) Side Playing light and side bets are prohibited.

(4) through (8) No change.

(9) Player banked games, established by the house, are prohibited.

(10) A cardroom operator shall not award a giveaway, jackpot, or prize from the jackpot pool in combination with any other eligibility requirements or outcome other than a specified combination of cards pursuant to section 849.086(7)(d), F.S.

(11) If the division has reasonable cause to believe that any person at a licensed facility has acted or is acting in one of the following manners it may exclude the person from any facility:

(a) Any person not playing the game solely to improve his or her chance of winning;

(b) Any person taking or attempting to take action to improve another player’s chance of winning;

(c) Any person communicating information to another player which could assist the other player in any manner influencing the outcome of the game.

Rulemaking Authority 550.0251(12), 849.086(4) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 5-9-04, 9-7-08, 7-21-14,       .

 

61D-11.006 Inspection of Premises, Records.

(1) The cardroom operator shall contact the division, office of auditing, for an inspection for compliance with the provisions of Section 849.086, F.S., and Chapter 61D-11, F.A.C., no less than ten business days prior to opening a new cardroom or amending an existing cardroom area. Amending an existing cardroom area includes changing the number, location or dimensions of tables, surveillance system, internal controls, or floor plan.

(a) through (c) No change.

(2) The division shall conduct a re-inspection after receiving the cardroom operator’s notification of corrections provided in writing pursuant to Rule 61D-11.0025, F.A.C.;

(2)(3) Subsequent inspections shall be performed according to this rule until identified deficiencies are corrected;

(3)(4) Upon satisfactory completion of corrective action, the division shall acknowledge in writing that all deficiencies are resolved and that the cardroom operator may proceed with using the designated facility space. The division shall deliver its written acknowledgement and authorization to proceed by e-mail facsimile, mail or hand delivery, to the specific address retained in the division’s record of licensure. in writing pursuant to Rule 61D-11.0025, F.A.C.

Rulemaking Authority 550.0251(12), 849.086(4) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 5-9-04, 9-7-08, 7-21-14,    .

 

61D-11.007 Cardroom Operator License.

(1) No change.

(2) An applicant for an annual cardroom license shall complete Form DBPR PMW-3160, Permitholder Application for Annual License to Operate a Cardroom, effective 7-21-14, incoporated adopted herein by reference, https://www.flrules.org/gateway/reference.asp?No=Ref-04395, which can be obtained at www.myfloridalicense.com/dbpr/pmw or by contacting the Division of Pari-Mutuel Wagering at 1940 North Monroe Street, Tallahassee, Florida 32399-1035, and submit a fee of $1,000.00 for each table to be operated during the license period. For cardroom facilities at which more than one pari-mutuel permit is operated during a year, table fees for the facility may be paid by one or all of the permitholders. License fees are non-refundable. For the initial and annual cardroom license application, in addition to the application and fees submitted, the applicant shall submit its written internal controls, required by Rule 61D-11.019, F.A.C., for approval by the division, and proof of authorization by a local government pursuant to Section 849.086(16), F.S.

(3) No change.

(4) No change.

Rulemaking Authority 550.0251(12), 849.086(4), (5), (11) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 5-9-04, 4-12-06, 9-7-08, 7-21-14,      .

 

61D-11.009 Cardroom Employee Occupational License and Pari-Mutuel/Cardroom Combination License.

(1) through (6) No change.

(7) All cardroom employee occupational licensees shall wear their photo identification, issued purusant to subsection 61D-11.012(9), F.A.C., while on duty. A cardroom employee shall not attempt to hide his or her photo identification from any patron or from surveillance cameras.

(8) Cardroom occupational licensees may have the option to only wear a factility issued photo identification card if the employee has the cardroom employee occupational license on their preson at all times.

Rulemaking Authority 550.0251(12), 550.105(2)(b), 849.086(4)(a), (6)(d), (f) FS. Law Implemented 849.086(6) FS. History–New 1-7-97, Amended 5-9-04, 3-4-07, 9-7-08, 7-21-14,      .

 

61D-11.012 Duties of Cardroom Operators.

(1) All cardroom operators must conspicuously display a notice of the rake amounts, time limitations, or other rake procedures, and any bet limits imposed at each card and domino table.

(1)(2) Cardroom operators shall maintain a roster of all persons a cardroom operator employs. A cardroom operator shall also maintain a weekly listing of all cardroom employees who worked during each week. The list of persons shall include for each employee:

(a) through (c) No change.

(2)(3) Cardroom operators shall maintain a log for three years of persons whose employment with the cardroom operator has been terminated, or the employee resigned, or abandoned his or her position, that includes:

(a) through (c) No change.

(3)(4) The cardroom operator shall notify the division, office of operations, of any change in companies providing services that require licensure within 10 days of such change on Form DBPR PMW-3220, List of Cardroom Business Occupational Licensees Providing Products and Services to a Cardroom, effective 7-21-14, incorporated adopted herein by reference, https://www.flrules.org/gateway/reference.asp?No=Ref-04402, which can be obtained at www.myfloridalicense.com/dbpr/pmw or by contacting the Division of Pari-Mutuel Wagering at 1940 North Monroe Street, Tallahassee, Florida 32399-1035.

(4)(5) Days and hours of cardroom operation shall be those set forth in the application or renewal of the cardroom operator’s license, or in the notice of change in the cardroom operator’s hours of operation as required in subsection (6) below.

(5)(6) A cardroom operator shall submit proposed changes to the days and hours of cardroom operation to the division in writing prior to proposed implementation;

(6)(7) Cardroom operators shall maintain a cardroom floor plan that shall:

(a) through (d) No change.

(7)(8) A cardroom operator must display separate signage throughout the designated cardroom gaming area providing notice of the following:

(a) The minimum age to play required by Section 849.086(12)(b), F.S.

(b) The hours of operation;

(c) No side betting is beting or playing light are permitted; and

(d) No credit is extended by the house.

(8)(9) Cardroom operators shall establish, and list in their internal controls, security controls that limit access into the cashiers’ cage(s), count room, vault, and surveillance room. This list which shall include a:

(a) A current list of employees, including full names and license numbers, authorized to enter each secure area and shall to be posted on the inside door of the entrance to each specific area, in the security office, and in the surveillance room at all times; and

(b) Full names and license numbers as listed on the occupational licenses issued by the division and shall be provided to the division upon request.

(9)(10) Cardroom operators are required to issue a photo identification to all cardroom employees. The photo identification shall include, at a minimum, the name of the cardroom facility, cardroom employee occupational license number, and the employee’s name.

(10)(11) The cardroom operator must provide the division, office of auditing, written notice within 20 days of a change in any management company contract.

(11)(12) Cardroom operators shall establish a system for using imprest trays, cashiers’ cage, and vaults for cardroom operations that is included in the internal controls, and provides for:

(a) through (c) No change.

(12)(13) At the close of each shift, the chips, tokens, and currency in the imprest tray at each table shall be reconciled to the beginning balances pursuant to the approved cardroom internal controls.

(14) Cardroom operators shall remove all drop boxes, other than those used on tables designated as tournament only tables, at the same time each day as indicated in the internal controls and lock them in a secure location until the count takes place.

(13)(15) No gaming may be conducted at a card table during the absence of the licensed dealer.

(14)(16) No gaming may be conducted within the licensed cardroom facility during the absence of the designated manager or supervisor.

(15)(17) When a cardroom operator is offering games of dominoes, the cardroom operator shall designate and assign at least one licensed cardroom employee as the supervisor of games of dominoes. A dominoes supervisor may not supervise more than eight dominoes tables.

(16)(18) A cardroom operator shall notify the division, office of investigations, provide a list of each person it refuses entry into its cardroom for a period of 30 days or longer pursuant to Section 849.086(7)(g), F.S., which shall include the:

(a) through (d) No change.

(17)(19) Each cardroom operator providing dominoes for play shall provide internal controls for the interaction between the vault and the dominoes supervisor.

Rulemaking Authority 550.0251(12), 849.086(4), (11) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 5-9-04, 4-12-06, 9-7-08, 7-21-14,     .

 

61D-11.013 Display of Identification and Possession of Occupational Licenses.

Rulemaking Authority 550.0251(12), 849.086(4), (6) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 9-7-08, 7-21-14;

Repealed,      .

 

61D-11.014 Cards.

(1) The cardroom operator shall only use cards designed to eliminate the ability of any person to place concealed markings on any part the back of all cards in a deck.

(2) Cards that are taped, cut, shaved, marked, defaced, bent, crimped, or deformed shall not be used.

(2)(3) All cards shall be plastic.

(3)(4) Decks of playing cards intended for use in a cardroom licensed facility shall be locked in a secure location when not in use.

(4)(5) Each dealer assigned to a card table shall inspect each deck of playing cards intended for use at that table. Inspection of the deck of playing cards shall commence no earlier than the start of the designated cumulative hours of operation for that cardroom license. The assigned dealer must ensure that cards are not taped, cut, shaved, marked, defaced, bent, crimped, or deformed in any fashion that may permit covert identification of the card by players.

(a) Any card that is taped, cut, shaved, marked with any description, defaced, bent, crimped or deformed in any fashion that may permit covert identification of the card by players during the course of play must be withdrawn from play and marked as a complete deck of 52 cards or 54 cards when the joker cards are included, and identified as damaged cards. Each time a card is determined to be damaged as described in this section, the entire deck shall be withdrawn from play and replaced with a new deck after that new deck is thoroughly inspected under the requirements of this rule.

(b) No change.

(c) Cards which have been removed from play shall be permanently altered so that the cards cannot can not be put back into play.

(d) No change.

(5)(6) Internal controls shall be established for the issuance of all cards to the shift supervisor and the floor supervisors.

Rulemaking Authority 550.0251(12), 849.086(4) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 9-7-08, 7-21-14,        .

 

61D-11.0175 Cardroom Drop, Count Rooms, and Count Procedures.

(1) Not At the close of each shift, but not less than once daily, the cardroom operator shall:

(a) Count and record the amount of chips or tokens and currency for each imprest tray;

(b) Make fills or replenish the imprest trays to bring them back to their beginning balances;

(c) Document beginning and ending inventories in the fill or credit report reflecting the value of chips or tokens and currency whether final fills are or are not made;

(d) Confirm that the designated supervisor has verified the replenishment of each imprest tray; and

(e) Ensure that drop boxes are removed from tables and immediately and transported to the count room or other secure area by two or more employees. At least one of the transporting employees shall be a security employee.

(2) Cardroom operators shall remove all drop boxes, other than those used on tables designated as tournament only tables, at the same time each day, as indicated in the internal controls and lock them in a secure location until the count takes place.

(3)(2) The cardroom operator shall have a count room within its facility used for counting of chips, tokens, and funds. Cardroom operations counts shall be performed at separate times and independent of pari-mutuel or slot operations counts.

(4)(3) The count room shall include:

(a) Reinforced doors equipped with locks and a device that audibly signals the surveillance monitoring room and the security department whenever a door is opened.; All count room doors must remain locked except to allow entrance by authorized individuals as listed on the inside of the count room door pursuant to subsection 11.012(8), F.A.C.

(b) Tables for counting chips, tokens, or currency;

(c) Clear trash bags, if trash containers are present;

(d)(c) Surveillance equipment as referenced in paragraph 61D-11.025(5)(b), F.A.C.; and

(e)(d) The controlling requirements in Rule 61D-14.063, F.A.C., for count rooms that are also used for slot machine gaming counts.

(5)(4) Count Room The internal controls shall include the following procedures shall to be as follows followed before any count process:

(a) Chips A procedure for securing chips, tokens, or currency from any previous count, shall be secured before another count begins;

(b) Count teams shall include Procedures providing for a count team, including a designated supervisor and at least two other team members, with the designated supervisor being the count recorder. Count team members members’ rotation shall be rotated in such a way so that the team does is not consist exclusively of the same team members three individuals more than any three days per week;

(c) All A procedure ensuring that all persons present in the count room during the counting process shall wear outer garments that must be a full-length, short sleeved, one-piece, pocket-less garment with openings for the arms, feet, and neck only, which are in good condition and completely closed, fastened, or zipped at all times while in the count room;

(d) The A procedure ensuring that the cardroom manager and/or or cardroom supervisors are supervisor is prohibited from participating in the count activities;

(e) No A procedure ensuring that no person shall carry any personal items into the count room, other than those items needed for medical necessity; and

(f) The A procedure ensuring that the designated count team supervisor shall record, in writing, the name and license number of each member of the count team, and record the same information on any personnel entering or exiting the count room during the count process.

(5) The internal controls shall include the following procedures for the count process:

(a) A procedure for dual count and reconciliation of all chips, tokens, or currency which shall ensure presentation of all chips, tokens, or currency in the count room to an employee who verifies the count;

(b) A procedure to resolve any discrepancies which arise at any time during the count or in the transfer of the drop to the vault;

(6) Security employees shall inspect the entire count room, including all trash containers and counting equipment to verify that no chips, tokens, or currency remain in the room.

(7) The count process shall be as follows:

(a)(c) All A procedure to require that all count team members enter the count room as a group;

(b) Each drop box is counted separately;

(c) All content keys remain visible to surveillance through the count process;

(d) Count team members empty the contents of each drop box on the count table. No other box is opened while another box, or its contents are on the count table;

(e) Once empty, the drop box number and the inside of the drop box is held up to the full view of a surveillance camera with the drop box number called out verbally;

(f) After each drop box has been viewed and counted, the drop box shall be locked and placed in a storage area exclusively for drop boxes;

(g) During the count, the designated supervisor shall ensure that if

(d) A procedure for the designated supervisor to ensure that:

1. If a count team member has to leave the count room, all count team members:

1.a. Cease the count;

2.b. Secure all chips in the count room;

3.c. Leave the count room together;

4.d. Are inspected by security before leaving the count room; and

5.e. Do not re-enter the count room until all count team members are present.

(h) All chips, tokens, or currency shall be dually counted and verified by a third employee;

(i) Any discrepancies which arise at any time during the count or in the transfer of the drop to the vault shall be resolved and documented.

2. Count team members empty the contents of each drop box on the count table;

3. Each drop box is counted separately;

4. No other box is opened while a box is on the count table;

5. All content keys remain visible to surveillance until the end of the count;

6. Once empty, the drop box number and the inside of the drop box is held up to the full view of a surveillance camera with drop box number called out verbally;

7. After each drop box has been viewed and counted, the drop box shall be locked and placed in a storage area exclusively for drop boxes; and

(8) Count reporting shall be completed as follows:

(a)8. The following information shall be is recorded on each count report:

1.a. The table number to which each drop box contents corresponds;

2.b. The value of each denomination of chips, tokens, or currency counted;

3.c. The total value of all denominations of chips, tokens, or currency counted;

4.d. The gaming date of the count and shift if more than one count is conducted daily; and

5.e. The total number of all drop boxes opened and counted.

6. The employee name and license number of each member of the count team participating in that count.

(e) A procedure to require the signed documents to be transported to the accounting or finance department immediately after the count and for that department reconcile the daily count records to the totals on the Monthly Remittance Reports required in subsection 61D-11.018(2), F.A.C.;

(f) A procedure to ensure that the doors to the count room remain locked except to allow authorized entrance to individuals as listed on the inside of the count room door pursuant to subsection 61D-11.012(9), F.A.C.

(g) A procedure ensuring that each count report is signed by the count team members and the count team supervisor;

(h) A procedure requiring that in the event of an emergency drop at a card or domino table, play ceases at that table during the drop;

(i) A procedure requiring security employees to inspect:

1. The entire room and all counting equipment to verify that no chips, tokens, or currency remain in the room; and

2. Any trash containers prior to removal from the count room and to ensure only clear bags are used in the count room.

(b)(j) Any correction made to any count documentation shall be made A procedure to make corrections to any count documentation by crossing out the error, entering the correct figure, and entering the initials of at least two count team members who verified the change.; and

(k) A procedure to reconcile cardroom drop revenue to an increase in the vault cash balance.

(c) Each count report shall be signed by the count team members and the count team supervisor.

(d) Signed count reports shall be transported to the accounting or finance department immediately after the count.

Rulemaking Authority 550.0251(12), 849.086(4), (11) FS. Law Implemented 849.086 FS. History–New 9-7-08, Amended 7-21-14,       .

 

61D-11.018 Reporting Requirements to Determine Net Proceeds or Gross Revenues.

(1) Each cardroom operator shall maintain a copy of monthly records related to the cardroom activities on the premises. The cardroom operator must maintain documentation supporting all amounts reported in the records including:.

(a) Count reports, pursuant to rule 61D-11.0175, F.A.C.;

(b) Vault reconciliation reports, pursuant to subsection 61D-11.019(4)(e), F.A.C.;

(c) Tournament reports, pursuant to rule 61D-11.0275, F.A.C.;

(d) Jackpot pool reports, pursuant to rule 61D-11.0279, F.A.C.;

(e)(a) For greyhound and jai alai permitholders, each record shall clearly show totals of gross revenues.

(f)(b) For harness or thoroughbred permitholders, each record shall clearly show totals of operating revenues, expenses, and net proceeds.

(2) For each license operated, cardroom operators shall file a separate Form DBPR PMW-3640, Cardroom Monthly Remittance Report, incorporated herein by reference, https://www.flrules.org/gateway/reference.asp?no=Ref       , which can be obtained at www.myfloridalicense.com/dbpr/pmw or by contacting the Division of Pari-Mutuel Wagering at 1940 North Monroe Street, Tallahassee, Florida 32399-1035 adopted and incorporated by Rule 61D-12.001, F.A.C., with the division by the fifth day of each month for the preceding month’s cardroom activity.

Rulemaking Authority 550.0251(12), 849.086(4), (11) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 4-12-06, 9-7-08,         .

 

61D-11.019 Internal Controls.

(1) No change.

(2) No change.

(3) No change.

(4) The cardroom manager or general manager shall sign and submit the internal controls to the division. The internal controls shall at a minimum contain the following:

(a) through (h) No change.

(i) A list of all authorized games offered for play and a link to each game’s description as posted by the division at www.myfloridalicense.com of the rules of play and wagering requirements for each game;

(j) through (o) No change.

Rulemaking Authority 550.0251(12), 849.086(4), (11) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 9-7-08, 7-21-14,         .

 

61D-11.025 Cardroom Electronic Surveillance.

(1) No change.

(2) The surveillance system must be capable of:

(a) Covert monitoring of:

1. The conduct and operation of card and domino tables, with coverage to view and identify wager amounts, card or domino values, and card suits accurately;

2. The conduct and operation of the location(s) where tournament buy-ins, registrations, re-entries, and prize payouts occur;

3. The conduct and operation of the cashiers’ cashier’s cage(s) and/or vault;

4. The collection and count of the cardroom’s gaming revenue and jackpot pool drop;

5. No change.

(b) No change.

(3) No change.

(4) No change.

(5) Different capability levels of cameras shall be:

(a) Dedicated cameras that record at a rate of 30 frames per second for viewing:

1. No change.

2. No change.

3. The cashiers’ cashier’s cage(s), cashiers’ cashier’s drawers, and/or vault, including windows, cabinets, and shelving; and

4. No change.

(b) No change.

(6) through (21) No change.

Rulemaking Authority 550.0251(12), 849.086(4), (11) FS. Law Implemented 849.086 FS. History–New 10-21-97, Amended 9-7-08, 7-21-14,          .

 

61D-11.0275 Tournaments.

(1) Each cardroom operator who conducts tournaments shall maintain, and make available, written procedures for the conduct of each tournament that shall provide:

(a) A detailed breakdown The method for charging house and tournament fees, re-buys, or add-ons for participation in a tournament of poker or dominoes including at a minimum;,

1. The dollar amount of each house and tournament fee, re-buy, or add-on;

(b) The point values of chips or tokens;

2.(c) The number of chips or tokens each participant will receive for each house and tournament free, re-buy, or add-on upon buy-in or registration;

3.(d) A description of the blind, bring-in, and/or ante structure; and Tournament chips or tokens that are visually distinct from those used in regular play;

(e) The allowance and use of blinds;

(f) The allowance and use of re-buys;

(g) The charge for the purchase of additional chips;

4.(h) The estimated distribution of winnings.; and

(i) The process to ensure that chips or tokens will not be redeemed for cash or any other thing of value.

(2) The written procedures must be available to all interested participants upon request and displayed within the cardroom.

(2)(3) Cash received for entry fees, re-buys and add-ons, shall be separate from all other cash received by the cardroom operator for regular cardroom gaming until such time as all cash is counted.

(3)(4) The monthly remittance report filed with the division as required by subsection 61D-11.018(2), F.A.C., shall include an aggregate accounting of the:

(a) Amount The amount collected for games played in a tournament per player;

(b) Total The total amount of participation fees collected;

(c) Total The total number of participants;

(d) Total The total amount distributed to winning participants;

(e) Taxable The taxable gross receipts amount; and

(f) Calculation The calculation of total tax due for tournaments.

(4)(5) The cardroom operator shall:

(a) maintain Maintain supporting documentation for all tournaments played which with a separate entry for each type of daily tournament that reconciles to the aggregated columns provided in the monthly remittance report in subsection (3),(4); and, at a minimum includes the following:

(a)(b) Detailed source documentation for each tournament which includes all information compiled into Maintain a record of the winner’s address, in addition to the monthly remittance report; applicable IRS records for any tournament payouts that meet the IRS threshold.

(b) A detailed summary of the source documentation for each tournament which is signed by a tournament director and a cashiers’ cage or vault employee to attest to the accuracy of the receipts and disbursements;

(c) The names of all tournament prize winners. Additionally, if a player’s tournament winnings meet applicable IRS reporting thresholds, the cardroom operator shall maintain all informaition required by the IRS for that player; and

(d) The total amount of chips issued and returned for the tournament.

(5)(6) A gratuity, tip, or similar charge paid during a tournament is not considered gross receipts if:

(a) through (d) No change.

(6)(7) If a cardroom operator offers tournament registration to patrons through licensed vendors, the cardroom operator shall notify the division of the vendor(s), prior to conducting registrations.

Rulemaking Authority 550.0251(12), 849.086(4), (11) FS. Law Implemented 849.086 FS. History–New 9-7-08, Amended 7-21-14,          .

 

61D-11.0279 Jackpots, Prizes, and Giveaways.

(1) All The following requirements apply to all cardroom and dominoes operators offering tables participating in jackpots, prizes and giveaways from the jackpot pool shall:

(a) Conspicuously post in the The cardroom operator shall post the rules of the jackpots, prizes and giveaways offered, including which specific combination of cards is a winner, the amount to be awarded hands constitute a winner or winners, and all details regarding seeding the jackpot pool fund;

(b) Conspicuously display, for the players to see, Post the jackpot pool rake limits and a description of how the jackpot pool rake is collected at for each authorized game in the cardroom table;

(c) Ensure that jackpot pool drop boxes:

1. Are For jackpot proceeds, an additional drop box is installed on an the left hand side of tables or another area of the table as specified in the cardroom’s system of internal controls;

2. The internal controls require that the dealer drop the jackpot rake into the jackpot drop box;

2.3. Have Jackpot drop boxes have a permanently affixed number(s) or letter(s) that are of sufficient size to be verified through surveillance coverage and correspond to the table to which the drop box is assigned;

3.4. Are Jackpot drop boxes are marked or colored to distinguish them from the regular drop box and tip box;

4.5. Are All jackpot drop boxes are dropped and counted daily using drop procedures set forth in Rule 61D-11.0175, F.A.C.;

(d) Ensure that jackpot pool revenue is:

1.6. Not Jackpot revenues are not commingled with other monies;

7. All revenue from the jackpot drop is:

2.a. Deposited daily into a separate non-interest bearing bank account; or

3.b. Held as cash on hand in the cashiers’ cage or vault.

8. The daily balance for each jackpot is displayed prominently within the cardroom gaming area facility;

(e)9. Ensure that all All jackpot pool accounting records include:

a. Include a detailed ledger with all credits, debits, and any jackpot pool amount carried forward to the jackpot pool from the prior playing day; and are

b. Are maintained to account for each different jackpot offered.

(2)10. All jackpot pool payouts shall be are made in accordance with the internal controls.; and

11. The internal controls will state whether a maximum jackpot threshold limit is established. The internal controls shall state if a threshold is selected, when the designated threshold is achieved, the series of cards comprising the hand winning the jackpot shall be changed to a series of cards that has a higher probability of occurring.

(2) Each jackpot amount shall be equal to the ending total balance of that specific jackpot fund at the end of the previous day’s count;

(3) The cardroom operator shall:

(a) Maintain a separate Form DBPR PMW-3605, Daily Tracking of Cardroom Jackpot, effective 7-21-14, incorporated adopted herein by reference, https://www.flrules.org/gateway/reference.asp?No=Ref-04403, which can be obtained at www.myfloridalicense.com/dbpr/pmw or by contacting the Division of Pari-Mutuel Wagering at 1940 North Monroe Street, Tallahassee, Florida 32399-1035, for each day of cardroom activity, and each different jackpot;

(b) Maintain a record of all award recipients name’s. Additionally, if the amount of a player’s award meets the winner’s address, in addition to the applicable IRS reporting thresholds, the cardroom operator shall maintain all information required by the IRS for the player records for any jackpot payouts that meet the IRS threshold.

(4) A jackpot, prize, or giveaway from the jackpot pool shall only be awarded to player(s) holding a combination of cards specified by the cardroom operator prior to play and in accordance with internal controls.

(5) The transaction for a giveaway or prize must be a separate transaction from any buy-in or re-buy. Jackpot pool contributions may be a part of a buy-in or re-buy, but the jackpot pool portion of the buy-in or re-buy must be fully disclosed and accounted for separately.

(6) A cardroom operator may not withhold a percentage of the jackpot pool for the cost of administering the jackpot pool. One hundred percent of any jackpot pool shall be applied to the payment of jackpots.

(7) Cardroom operators shall retain all receipts and invoices for any items purchased to be awarded as jackpot prizes and giveaway payouts.

(8) If jackpot pools from multiple cardroom permitholders are combined to make one collective jackpot pool, the internal controls for each participating cardroom must include procedures to:

(a) through (d) No change.

(e) Notify cardroom patrons of a jackpot claim, which shall include:

1. The announcement at each participating cardroom when a jackpot claim is confirmed; and

2. The display, by each participating cardroom, of the jackpot pool balance(s) as required in subsection (1) of this rule.

(f) Ensure that the accounting and tracking of the jackpot pool shall be made only on Form DBPR PMW-3605, Daily Tracking of Cardroom Jackpot Pool, adopted by reference in paragraph (3)(a) above, which shall be:

1. Completed separately for each location; and

2. Combined for all locations.

Rulemaking Authority 550.0251(12), 849.086(4), (11) FS. Law Implemented 849.086 FS. History–New 9-7-08, Amended 7-21-14,          .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Jonathan Zachem, Director, Division of Pari-mutuel Wagering

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Ken Lawson, Secretary, Department of Business and Professional Regulation

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: October 28, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: August 18, 2015 & October 19, 2015