Effective January 1, 2005, the Washington State Gambling Commission adopted several new and amended gaming regulations. Tribal casinos, which are required under their compacts with the State to have surveillance cameras in certain areas of the casinos, need be aware of an amended regulation requiring licensure of digital surveillance companies. In addition, by June 30 all current and prospective gaming licensees will be affected by a new regulation imposing a "problem gambling fee" to the regular application and renewal fees. What’s more, by May the Commission will complete its consideration of two other proposed amendments that would, if adopted, reduce the frequency of reporting requirements for most licensees, and expedite the application approval process for the likes of gaming equipment manufacturers.
Digital Surveillance Licensure. Significant among the changes to the gaming regulations is that "gambling related services" provided by a "gambling services supplier" now includes those who install, integrate, or otherwise service digital surveillance systems and, as a result, enjoy direct access to the casino control room. See WAC 230-02-205(f). Consequently, as of January 1, 2005, digital surveillance companies doing business on or off Indian reservations in Washington must be licensed as gambling services suppliers and their employees need be licensed as services supplier representatives.
It is important to note that the new licensing requirement applies to providers of digital surveillance systems; providers of analog recording systems need not apply for licensure. Most surveillance systems, though, are moving towards digital recording. Thus, Washington tribes and tribal gaming agencies should ensure that a digital surveillance installer and its employees are licensed by the Commission, before they are allowed access to the casino control room for installation of new digital surveillance equipment. However, tribes do have the authority to allow a digital surveillance company to service surveillance equipment sold and installed prior to January 1, 2005, particularly while the company and its employees' service supplier applications may be pending before the Commission over the next several weeks and months. The Commission provides a current list of licensees, including digital surveillance providers. See www.wsgc.wa.gov/search/countymap.asp.
Problem Gambling Fee. A new regulation, to take effect on June 30, 2005, will add a nonrefundable "problem gambling awareness and training fee" to all license applications and renewals. See WAC 230-04-208. The new regulation was adopted pursuant to the State Legislature’s 2003 amendment to RCW 9.46.071, which allows the Commission to contract with qualified entities to provide public awareness, training and other services to problem and compulsive gamblers.
To provide a funding source for such efforts, the problem gambling and awareness training fee will be assessed to licensing applications and renewals in the range of two to four percent of the aggregate license fee, as follows:
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Although the fee may be reduced or eliminated altogether if the Legislature appropriates funds for problem gambling, which would relieve the Commission of its duty under RCW 9.46.071, all current and potential licensees should be prepared to pay the extra dollars for licensure.
Proposed Amendments. Commercial operators -- e.g., punchboard and pull-tab operators, gaming equipment distributors and manufacturers, card room operators, and linked bingo prize providers -- may soon enjoy relief from what some believe is an undue burden of submitting quarterly reports to the Commission concerning all sales and services relating to its gambling activities in Washington -- on tribal and non-tribal land. The Commission is considering to amend the reporting requirements for commercial operators that would reduce the reporting frequency from four times a year to twice a year.
Gaming equipment manufacturers may soon see a shorter turnaround time in obtaining temporary licenses to do business in Washington. The Commission is considering an amendment to WAC 230-04-255, which currently provides that the Director of the Commission may issue temporary licenses to applicants other than gaming manufacturers (and house-banked card rooms). Temporary licenses for manufacturers are currently approved only by the Commission at its scheduled monthly meetings. If a manufacturer misses the deadline to have its application reviewed at the next Commission meeting, it must wait until the following month -- sometimes two months -- for Commission approval. Recognizing that this can cause significant economic losses for gaming equipment manufacturers, the proposed amendment would give the Director the authority to issue temporary licenses to such companies.
The Commission is scheduled to conclude its review on these proposed amendments by May 2005. Stay tuned.
Claire J. Hur is an Associate in the Seattle office. She focuses on business transactions, and assists gaming clients with licensing and other regulatory matters.
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