WAC 230-15-430   Internal control requirements.  


General accountability requirements.


     (1) House-banked card game licensees must have a system of internal controls including, at least:

     (a) Accounting controls - Include the licensee's plan, procedures, and records concerned with the safeguarding of assets and the reliability of financial records. Licensees must design these controls to provide reasonable assurance that:

     (i) Transactions are executed with management's general and specific authorization; and

     (ii) Transactions are recorded so that financial statements are prepared in conformity with generally accepted accounting principles (GAAP), and so that accountability for assets is maintained; and

     (iii) Access to assets is permitted only with management's authorization; and

     (iv) Records are compared with existing assets at least annually and appropriate action is taken within five working days to correct any differences; and

     (b) Administrative controls - Include, at least, the licensee's plan, procedures, and records outlining decision-making processes that lead to authorization of transactions. These must provide for:

     (i) Competent personnel with an understanding of internal control procedures; and

     (ii) Segregation of incompatible functions so that no employee is in a position to commit and conceal errors or wrongdoings in the normal course of his or her duties.


Designating a general manager.


     (2) The owner, partners, or board of directors for the licensee must designate an individual with overall responsibility for the business, called the "general manager." The general manager may also perform the duties of a gambling operations department manager; and


Establish separate departments or functions.


     (3) Licensees must establish separate departments or functions which must be independent from each other. At a minimum, these must include:

     (a) Surveillance;

     (b) Security;

     (c) Gambling; and

     (d) Accounting.


Surveillance department requirements.


     (4) The surveillance department manager must ensure that surveillance employees follow all requirements of the surveillance WACs, including, at least:

     (a) Closely and clandestinely observing the operation of the card games, the cashier's cage, and count room; and

     (b) Recording video and audio of the activities in the count room; and

     (c) Monitoring for cheating, theft, embezzlement, and other illegal activities on the licensed premises; and

     (d) Recording video of unusual or suspected illegal activities; and

     (e) Notifying appropriate supervisors and us, within three working days, when they detect cheating, theft, embezzlement, or other illegal activities related to gambling; and

     (f) Giving our agents or law enforcement personnel immediate access to the surveillance room; and

     (g) Ensuring that each dealer is evaluated to determine if he or she follows all required dealer procedures set out in the house-banked card game licensee's approved internal controls; and

     (h) Documenting procedures about how winning wagers, jackpots, or bonus pay outs will be verified; and

     (i) Ensuring that all surveillance employees have demonstrated a knowledge of:

     (i) Operating surveillance systems; and

     (ii) Rules of play and procedures for the games being played; and

     (iii) Overall procedures relating to the duties of all employees of the house-banked card room, including dealers, shift managers, floor supervisors, cage cashiers and count team members.


Security department requirements.


     (5) The security department manager must ensure that security employees control:

     (a) Transfer of cash and chips to and from the gambling tables, cage, and count room; and

     (b) Dealing shoes and new and used cards, when not in use or when held in evidence; and

     (c) Disposing of or destroying used cards and dealing shoes, and observing accounting department employees when they destroy damaged chips when removed from service.


Gambling operations department requirements.


     (6) The gambling operations department manager, or general manager, is responsible for house-banked card games and must ensure that:

     (a) Dealers operate card games at assigned gambling tables; and

     (b) Cards and dealing shoes are properly accounted for when in use on the gambling floor; and

     (c) There is adequate supervision on the business premises.


Accounting department requirements.


     (7) The accounting department must be supervised by a person who reports directly to the general manager. The accounting department must, at least:

     (a) Implement and monitor accounting controls; and

     (b) Control processes in the count room and cashier's cage; and

     (c) Supervise the count room personnel and cashier's cage personnel; and

     (d) Control the inventory of unused forms; and

     (e) Reconcile the used and unused forms; and

     (f) Prepare, control, and store records and data we require; and

     (g) Oversee, with the help of the security department, the destruction of damaged chips removed from service.



[Statutory Authority: RCW 9.46.070. 07-10-034 (Order 611), § 230-15-430, filed 4/24/07, effective 1/1/08.]