CHAPTER Lot 7100 LUCKY 7
Statutory Authority: RSA 287-E:18
REVISION NOTE #1:
Pursuant to 2004, 257:16, effective 1-1-05, rules in Part Sw 2002 entitled “Lucky 7” were transferred to the
Pari-Mutuel Commission from the Lottery Commission. Part Sw 2002 had
last been filed by the Sweepstakes Commission under Documents #7999 and #8000,
effective 12-12-03. The Sweepstakes
Commission was renamed the Lottery Commission pursuant to 2004, 97:1-9,
effective 7-10-04.
The Pari-Mutuel Commission
subsequently filed Document #8803, effective 1-20-07, which readopted with
amendments and renumbered the former Part Sw 2002 as
Chapter Pari 1100. The rules in Document
#8803 therefore replaced all prior filings for rules in the former Part Sw 2002. The filings
of the Sweepstakes Commission affecting the former Part Sw
2002 include the following documents:
#1902, eff 12-28-01
#2538, eff 12-4-83
#3159, eff 12-13-85
#4614, eff 5-23-89
#5070, eff 2-21-91
#5327, eff 2-14-92
#6107, eff 10-27-95
#7166, eff 12-21-99
#7869, eff 4-11-03
#7999, eff 12-12-03
#8000, eff 12-12-03
REVISION NOTE #2:
Document
#13068, effective 6-27-20, adopted, repealed, readopted and renumbered, readopted with amendments,
or readopted with amendments and renumbered all of the
rules in the former Chapter Pari 1100 titled “Lucky 7”, and renumbered the
chapter as Lot 7100. Document #13068
replaces all prior filings of the Lottery Commission affecting the former
Chapter Pari 1100.
The filings of the Lottery
Commission affecting the former Pari 1100 after Document #8803 include the
following documents:
#10377, eff 7-16-13
#10378, eff 7-16-13
#10773, eff 2-1-15
#11084,
eff 4-26-16
#11085,
eff 4-26-16
#11087,
eff 4-26-16
#12095,
eff 1-27-17
#12541,
eff 6-1-18
PART Lot 7101 PURPOSE AND
SCOPE
Lot 7101.01 Purpose. The purpose of this chapter is to establish
requirements for the manufacture, distribution, and sale of lucky 7 tickets
pursuant to RSA 287-E:1 and RSA 287-E:16 through RSA 287-E:26, to ensure that
the games are fair, honest, secure, and auditable.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7101.02 Scope.
This chapter shall apply to:
(a)
Manufacturers and distributors of lucky 7 tickets,
lucky 7 ticket dispensing devices and associated equipment;
(b)
Charitable organizations, individuals, and entities selling lucky 7 tickets; and
(c) Entities
and individuals
providing gaming consultant services.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
PART Lot 7102 DEFINITIONS
Lot 7102.01 “Cash-out voucher” means a printed receipt
tendered to the player, upon request, for any unused plays or winnings that remain on the electronic lucky 7
ticket dispensing device.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7102.02 “Charitable organization” means “charitable
organization” as defined in RSA 287-E:1, V.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7102.03 “Commission” means the New Hampshire lottery commission established pursuant
to RSA 284:21-a, or its designated staff acting
on behalf of the commission.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7102.04 “Deal” means “deal” as defined in RSA
287-E:16-a, namely “a single game of uncirculated lucky 7 tickets bearing a
serial number.”
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7102.05 “Distributor” means any person who sells, leases, offers or otherwise
provides, distributes, or services any lucky 7 tickets, lucky 7 ticket dispensing devices or associated
equipment for use or play in this state.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7102.06 “Electronic lucky 7 ticket dispensing device”
means an electronic gaming cabinet that provides a digital platform for the graphic display of visually
enhanced versions of the traditional lucky 7 ticket games, and is capable of
printing physical tickets or vouchers for redemption.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot
7102.07 “Event game” means a type of
lucky 7 game, played with or without a seal card, in which
the winners include both instant winners and winners who are determined by the random draw
of a bingo ball, the random call of a bingo number, or the use of a seal card,
and is sold in its entirety and played to completion during a single bingo
event. Event games include dab or coverall games, downline or derby
games, and last ball games.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7102.08 “Extended play” means an optional feature of an electronic lucky 7 ticket
dispensing device that allows a player to continue to play without additional consideration, but does not interfere with or in any way affect the outcome of any
finite game being played.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7102.09 “Flare” means a board, placard, or help
screen that accompanies each deal of lucky 7 tickets and is used to inform
players of information needed to play the game.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.07)
Lot 7102.11 “Game
form number” means the unique, manufacturer-designated number or alphanumeric
code that identifies the game name, cost per
play, ticket count, payout structure, and extended payout structure.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.08)
Lot 7102.12 “Gaming consultant” means “gaming consultant” as defined in RSA 287-E:1,
VI-b, namely “any individual or business entity who is hired by or otherwise receives compensation from a
charitable organization to provide gaming related services including
consultation, management, assistance with the operation of the bingo game or
the sale of lucky 7 tickets, record keeping, filing forms with the commission,
advertising, or security and who handles, manages, oversees, or disburses any
of the funds derived from the operation of the charitable games.”
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.09)
Lot 7102.13 “House rules” means instructions, adopted by the
charitable organization that inform players of the rules governing the conduct
of the game and how situations not addressed by law or rules will be handled.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.10)
Lot
7102.14 “Lucky 7 ticket” means a paper or cardboard ticket for
sale in New Hampshire designed with pull-tabs or similar break-open features that conceals a certain
combination of numbers or symbols that indicate if the ticket is a winner, and
includes:
(a) Pre-printed tickets that can be dispensed by either a passive
or electronic lucky 7 ticket dispensing device; and
(b) Electronic
lucky 7 tickets, which are produced and dispensed on demand by an electronic
lucky 7 ticket dispensing device.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.11)
Lot 7102.15 “Lucky 7 ticket dispensing device” means a cabinet that
delivers lucky 7 tickets . This term includes passive and electronic lucky 7
ticket dispensing devices.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.12)
Lot 7102.16 “Manufacturer” means any person who prints, manufactures, builds, rebuilds,
fabricates, assembles, produces, programs, designs, or otherwise makes modifications to any
lucky 7 tickets, lucky 7 ticket dispensing devices or associated equipment for
use or play in the state of New Hampshire whether directly or pursuant to a
contract or agreement with another individual or entity.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.13)
Lot 7102.17 “Passive lucky 7 ticket dispensing device” means a unit
that is electro-mechanical in nature used to dispense preprinted lucky 7
tickets without the means of electronically displaying a ticket or other
graphic representation of a lucky 7 ticket game.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.15)
Lot 7102.18 “Payout structure” means the total ticket count, the number of
winning combinations at each prize level, the number of winning tickets at each prize
level including combination winners, the collective value of all prizes to be
awarded, and the profit built into the game by the manufacturer,
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7102.19 “Role-based access control” means a principle
by which developers create systems that limit access or restrict operations according to a user’s constructed role within a
system. This system is used by businesses and organizations to ensure that unauthorized users do not gain access to
privileged information within an IT architecture. Role-based access control is
also known as role-based security.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.16)
Lot
7102.20 “Rolling jackpot game” means a
lucky 7 game played with seal card(s) that is designed by the manufacturer to
include a jackpot
prize that is carried over to a subsequent deal of the same game form number in
the event the jackpot is not won.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.18)
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7102.19)
Lot 7102.22 “Winner protection” means a unique symbol or
printed security device, such as a line through the winning combination(s), specific number
keyed to a particular winning lucky 7 ticket, or the name of the symbol or some
of the symbol colors
changed for a winning lucky 7 ticket, or other similar protections placed in
the winning window(s) of prize winning lucky 7 tickets.
Source. #13913, eff
3-22-24
PART Lot 7103 LICENSING REQUIREMENTS
Lot 7103.01 Licensing Requirements of Manufacturers
and Distributors.
(a)
In accordance with RSA 287-E:17, no individual or entity shall supply or
sell lucky 7 tickets or lucky 7 ticket dispensing devices in
New Hampshire without possessing a current and valid license issued by the
commission in accordance with this chapter.
(b)
To qualify for licensure, the
applicant as well as all partners, officers, or directors of the applicant
shall:
(2)
Not be involved in or influence the purchase of gambling equipment for a
licensed charitable organization;
(3)
Not lease premises to a licensed charitable organization for the conduct
of lawful gambling;
(4)
Not have ever been connected with or engaged in
an illegal business;
(5)
Not owe $500 or more in delinquent taxes;
(6)
Not, based on past activities or criminal record, poses a threat to the
public interest or to the effective regulation and control of gambling, or
creates or enhances the dangers of unsuitable, unfair, or illegal practices,
methods, and activities in the conduct of gambling or the carrying on of the
business and financial arrangements incidental to the conduct of gambling;
(7)
Not been permanently or temporarily enjoined by any gaming regulatory
agency from engaging in or continuing any conduct or practice involving any
aspect of gambling;
(8) Not have been convicted
of a felony, which has not been annulled by any court, within 10 years from the
date of the application, or violated any of the statute or rules governing
charitable gaming in the past in this or any other state, as prohibited by RSA
287-E:7, VI and RSA 287-E:23, II; and
(9) When applying as a distributor, have a principal place of
business located within New Hampshire, as required by RSA 287-E:23, IV.
(c)
Delinquent taxes shall not include a tax liability if:
(1) An administrative or
court action which contests the amount or validity of the liability has been
filed or served;
(2) The appeal period to
contest the tax liability has not expired; or
(3) The applicant has
entered into a payment agreement and is current with the payments;
(d)
To obtain a license to manufacture lucky 7 tickets
or lucky 7 ticket dispensing devices, the applicant shall submit the following to the commission:
(1) A completed and
accurate “Bingo and/or Lucky 7 Manufacturer Application” form (2/2024), which
shall include the certification affirming that:
a.
The individual signing the application is authorized to do so on
behalf of the entity;
b.
Neither the applicant nor any partner, officer, or director has been
convicted of a felony, which has not been annulled by any court, within 10 years from the date of
the application; and
c. Under penalty of
unsworn falsification pursuant to RSA 641:3, the information provided on the application and on any supporting documentation is true, accurate and complete and that
there are no willful misrepresentations in or falsifications of the information
provided, and an acknowledgement that giving false information is grounds for denial,
suspension, or revocation of a gaming license;
(2) Payment for the
licensing fee of $5,000 as established by RSA 287-E:23, VI(c); and
(3) A copy of a bond posted
in the amount of $50,000, payable to the commission and conditioned upon the
licensee’s compliance with the rules and laws of the commission, as established
by RSA 287-E:23, III. The bond may be issued using the
“Bingo/Lucky 7 Manufacturer Bond” form (2/2024).
(e)
As allowed by RSA 287-E:8-a, V, a manufacturer with
a current New Hampshire license to manufacture lucky 7 tickets shall be authorized to manufacture paper bingo
supplies, electronic bingo player systems, or shared carryover coverall
supplies or network systems, without posting an additional bond, filing for a
separate license, or paying an additional licensing fee.
(f)
To obtain a license to distribute lucky 7 tickets
and lucky 7 ticket dispensing devices, a distributor shall submit the following to the commission:
(1) A complete and accurate
“Bingo/Lucky 7 Distributor Application” form (2/2024), which shall include the
certification affirming that:
a.
The individual signing the application is authorized to
do so on behalf of the entity;
b.
Neither the applicant nor any partner, officer, or director has been
convicted of a felony, which has not been annulled by any court, within 10
years from the date of the application; and
c. Under penalty of
unsworn falsification pursuant to RSA 641:3, the information provided on the application and on any
supporting documentation is true, accurate and complete and that there are no
willful misrepresentations in or falsifications of the information provided, and an acknowledgement that
giving false information is grounds for denial, suspension, or revocation of a
gaming license;
(2) Payment for the
licensing fee of $10,000, pursuant to RSA 287-E:23, I; and
(3) A copy of a bond posted
in the amount of $50,000, payable to the commission and conditioned upon the
licensee’s compliance with the rules and laws of the commission, pursuant to
RSA 287-E:23, III. The bond may be issued using the “Bingo/Lucky 7 Distributor
Bond” form (2/2024).
(g)
As allowed by RSA 287-E:8-a, I and III, a
distributor with a current New Hampshire licensed for distribution of lucky 7 tickets may distribute bingo paper
supplies, electronic bingo player systems, and shared carryover coverall
supplies and networking systems, without posting an additional bond, file for a
separate licensing or paying an additional licensing fee.
(h)
If at any time, the information provided in accordance with (c) or (e)
above changes, or is otherwise found to be inaccurate, the applicant shall submit updated or corrected information to
the commission within 10 days of the event that resulted in the change, or
discovery of the inaccuracy.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7103.02 Eligibility Determinations and Licensing
Requirements of Charitable Organizations.
(a)
In accordance with RSA 287-E:17, lucky 7 tickets shall only be sold by
charitable organizations possessing a current and valid license issued by the commission in accordance with RSA
287-E and this chapter.
(b) To be eligible
for licensure, the charitable organization shall:
(1)
Be able to establish that the purposes for which it was organized have
been furthered through its activities;
(2)
Possess a tax exempt status under Internal Revenue Code 501(c)(3),
501(c)(4), 501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) or be covered under
a group ruling issued by the Internal Revenue Service under authority of those
sections.
A charitable organization whose tax-exempt status has been revoked by the Internal Revenue Service shall
not be considered eligible for licensure until their tax-exempt status has been
reinstated;
(4)
Be in good standing and registered with the director of charitable
trusts, if required under RSA 7:19 through RSA 7:32.
(c) To obtain a determination of
eligibility to participate in charitable gaming, the charitable organization
shall submit a completed “Charitable Organization Eligibility Determination
Application” form (2/2024), which shall include a certification affirming that:
(1) The individual signing the application is authorized
to do so on behalf of the organization; and
(2) Under penalty of
unsworn falsification pursuant to RSA 641:3, the information provided on the application and any supporting documentation submitted with the
application is true, accurate, and complete, and that there are no
willful misrepresentations in, or falsifications of the information provided
therein, and an acknowledgement that giving false information is grounds for
denial, suspension, or revocation of a gaming license;
(d) The charitable organization shall submit the completed
“Charitable Organization Eligibility Determination Application” form (2/2024)
to the commission at least 30 days prior to the first proposed game date.
(e) The commission
shall deem a charitable organization eligible to participate in charitable
gaming when, based on the documentation provided in accordance with (c) above,
it finds that the charitable organization meets the eligibility requirements as
set forth in (b) above.
(f) A determination of eligibility
shall remain in effect through December 31st of the calendar year in
which the determination was made, unless a change occurs that disqualifies the
charitable organization’s eligibility such as the loss of its tax-exempt status
or the revocation of its license in accordance with Lot 7110.04 below.
(g)
To obtain a license to sell lucky 7 tickets, an
eligible charitable organization shall submit the following to the commission
at least 15 but no more than 45 days prior to the first proposed
game date of the month or calendar year for which the license has been
requested:
(1) One of the following
applications:
a. A “Monthly Bingo/Lucky 7 License Application”
form (2/2024) when lucky 7 tickets will be sold in conjunction with a bingo event or at a facility
licensed under RSA 287-D, which shall include a certification affirming that:
1. The
individual signing the application is authorized to do so as the leader or
treasure of the organization;
3. Only bona fide members of the charitable
organization will operate the games except as otherwise allowed in accordance
with RSA 287-E:7;
4. Only
individuals who have not been convicted of a felony within the previous 10
years, or a misdemeanor
involving falsehood or dishonesty within the past 5 years, which have not been
annulled by a court, or have violated any of the statutes or rules governing
gambling in the past in this or any other state will be allowed to participate
in the operation of charitable gaming;
5. Under penalty of unsworn falsification pursuant to RSA 641:3, the
information provided on the application and any supporting documentation
submitted with the application is true, accurate,
and complete, and that there are no
willful misrepresentations in or falsifications of the information provided,
and an acknowledgement that giving false information is grounds for denial,
suspension, or revocation of a gaming license;
or
b.
A “Annual/Special Event Lucky 7 License Application” form (2/2024) when
lucky 7 tickets will be sold at the regular
meeting place utilized by the charitable organization for its activities, or at
an event sponsored or co-sponsored by the charitable organization and held once
a year for no more than 4 consecutive days, which shall include a certification
affirming that:
1. The
individual signing the application is authorized to do so as the leader or
treasure of the organization;
2. The
organization has implemented and will adhere to written house rules and
internal control procedures that meet the requirements of Lot 7105.01 and Lot
7104.04(n) respectively;
3. Only bona fide members of the charitable
organization will operate the games except as otherwise allowed in accordance
with RSA 287-E:7;
4. Only individuals who have not been
convicted of a felony within the previous 10 years, or a misdemeanor involving
falsehood or dishonesty within the past 5 years, which have not been annulled
by a court, or have violated any of the statutes or rules governing gambling in the past in this or any
other state will participate in the operation of charitable gaming; and
5. Under penalty of unsworn falsification pursuant to RSA 641:3, the information provided on the application and any
supporting documentation submitted with the application is true, accurate, and
complete, and that there are no willful misrepresentations in or falsifications of
the information provided, and an acknowledgement that giving false information
is grounds for denial, suspension, or revocation of a gaming license; and
(2) Payment of the licensing fee of $10 per month or any part of a
month for up to 12 consecutive months per application as established by RSA
287-E:19, I.
(h)
Upon request of the commission, the individual signing the application
shall show proof that he or she is an official of the charitable organization authorized to
sign the application on behalf of the organization, such
as providing copies of the meeting minutes at which the governing body
authorized such authority.
(i) If at any time the charitable organization discovers that information provided in accordance with (c) or (g) above has changed, or is otherwise found to be
inaccurate, the charitable organization shall submit updated or corrected
information to the commission within 10 days of the event that resulted in the change, or discovery of the inaccuracy.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7103.03 Licensing Requirements of Gaming
Consultants.
(a)
In accordance with RSA 287-E:7, II(b), no person or entity shall receive
compensation for providing gaming related services, as described in (b) below, unless licensed by the commission as
a gaming consultant, the services to be provided are agreed to in advance, and a copy of a written agreement is submitted to the
commission.
(b)
An individual or entity shall be deemed as providing
gaming related services when they participate in the management or operation of the charitable gaming
event, or handles, manages, oversees, or disburses any of the funds derived
from the operation of the charitable gaming event.
(c)
Gaming related services shall include the
following:
(1) Providing consultation
services relative to the management or conduct of lucky
7 ticket sales to ensure compliance with gaming regulations;
(2) Managing the sale of
lucky 7 tickets, including:
a.
Providing direct on-site supervision of the ticket sales; or
b.
Coordinating staffing for the event(s);
(3) Participating in the
operation of lucky 7 tickets, including:
a.
Selling lucky 7 tickets or otherwise handling monetary transactions; or
b.
Determining winners or distributing prizes;
(4) Providing record
keeping services relative to lucky 7;
(5) Preparing reports and
other forms;
(6) Developing or arranging
advertising relative to the sale of lucky 7 tickets; and
(7)
Providing security relative to the sale of lucky 7 tickets.
(d) A gaming
consultant shall not:
(1)
Be a licensed distributor or manufacturer;
(2)
Be employed by a licensed distributor or manufacturer: or
(3)
Have any direct or indirect financial relationship with a licensed
distributor or manufacturer.
(e) When
a gaming consultant is also an owner, an employee or an individual with a
direct or indirect financial relationship with a licensed commercial hall, the
gaming consultant shall:
(1)
Take demonstrable measures to mitigate all possible conflicts of
interest between the commercial hall and the charitable organization;
(2)
Not use gaming consultant service agreements to circumvent the rental
restrictions set forth in Lot 7000; and
(f) Employees
of a licensed gaming consultant who provide or assist in the provision of
gaming related services on behalf
of licensed gaming consultant shall also be licensed as a gaming consultant.
(g)
To obtain a gaming consultant license, the
applicant shall submit the following to the commission at
least 45 days prior to the services being provided:
(1) A completed and
accurate “Bingo/Lucky 7 Gaming Consultant Application” form (2/2024) which
shall include a certification affirming that:
a. The applicant qualifies
for a gaming consultant license;
b. Neither the applicant nor any employee of the
applicant who will participate in the operation charitable
gaming has been convicted of a felony within the previous 10 years, or a
misdemeanor involving falsehood or dishonesty within the previous 5 years,
which have not been annulled by a court, or has violated the statutes or rules
governing charitable gaming; and
c. Under penalty of unsworn falsification pursuant to RSA 641:3, the information provided on the application and any supporting documentation submitted with the
application is true, accurate, and complete, and that there are no willful
misrepresentations in, or falsifications of the information provided, and an
acknowledgement that giving false information is grounds for denial,
suspension, or revocation of a gaming license; and
(2) Payment of the
licensing fee of $100, as established by RSA287-E:4, II-b.
(h)
If at any time, the information
provided in accordance with (f) above changes, or is otherwise found to be
inaccurate, the gaming consultant shall submit updated or corrected information
to the commission within 10 days of the event that resulted in the change, or
discovery of the inaccuracy.
(i) In accordance with RSA 287-E:7,VI, no
individual who has been convicted of a felony or class A misdemeanor within the previous 10 years, or a class B
misdemeanor within the past 5 years and neither of which has been annulled, or
who has violated any of the statutes or rules governing charitable gaming in
the past in this or any other state shall be eligible for licensure as a gaming
consultant.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7103.04 Criteria for the Approval or Denial of an
Application for Licensure.
(a)
The commission shall approve an application
and issue the applicable license when:
(1) The applicant has been
found to meet the requirements for licensure as set forth under RSA 287-E and
this chapter;
(2) The application is
found to be complete and accurate;
(3) The applicable
licensing fee has been paid, in accordance with Lot 7103.01-.03 above;
(4) If required, a bond has
been posted, and a copy of the bond certificate has been submitted to the
commission with the application;
(5) All documents required
by Lot 7103.01-.03 above have been submitted and found to be complete, accurate
and in compliance with the requirements set forth in this chapter;
(6) In the case of a
distributor application, the applicant’s principal place of business is located
within New Hampshire, as required by RSA 287-E:23, IV; and
(7) In the case of a
charitable organization application, there are no
outstanding monthly financial reports due to the commission per Lot 7106.03(f)
below.
(b)
The commission shall deny the application if
the applicant:
(1) Does not meet the
qualifications for licensure specified in RSA 287-E and this chapter;
(2) Has not complied with
the application requirements and procedures, as specified in RSA 287-E and this
chapter;
(3) Has made a material false statement in the application or in any
document that is submitted as part of the application process;
(4) Has not complied with
an administrative order or fine issued in accordance with Lot 7107, has a
criminal record, as prohibited by RSA 287-E:7,VI, or has had a charitable
gaming license suspended or revoked within the past year; or
(5) The location where the
games will be played is not in a city or town that has adopted RSA 287-E in
accordance with RSA 287-E:27 and RSA 287-E:27-a.
(c)
In accordance with RSA 287-E:20:
(1) A license shall not be
transferable; and
(2) For a charitable
organization:
a.
The license shall specify where the tickets may be offered for sale; and
b.
The license shall only be valid for one location. A separate license
shall be required for each location at which lucky 7 tickets are to be sold.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7103.05 Expiration of an Issued License.
(a)
A license issued in accordance with this chapter shall expire in accordance with
the following:
(1) Manufacturer, and distributor
licenses shall expire on June 30 following the date of issue;
(2) A license issued to a
charitable organization shall expire on the last day of the month or calendar
year for which the license was issued; and
(3) Gaming consultant licenses shall expire one year from the date of issue.
(b)
A license shall be valid only for the activities,
location, dates and times as listed on the license.
(c)
Any licensee that ceases to conduct lucky 7 activities shall immediately
notify the commission in writing and provide the commission a report as to the disposition of:
(1) All unused lucky 7
ticket inventory; and
(2) Any lucky 7 ticket
dispensing devices used by the charity.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
PART Lot 7104
RESPONSIBILITIES OF THE LICENSEE
Lot 7104.01 Responsibilities of All Licensees. All
licensees shall:
(a)
Conduct charitable gaming activities in a manner
that ensures:
(1) The integrity of
the game;
(2) That the games are
fair, secure, and able to be auditable and operate correctly; and
(3) That all games are free
from corruption, criminal influences, and conflicts of interest.
(b) Maintain
all records for a period of 2 years, or longer than 2 years when notified by
the commission that an audit, compliance
review, or investigation is being conducted, in which case all records shall be
maintained until the audit, review or investigation has concluded; and
(c)
Permit the commission or its designee to examine all lucky 7 related
books, records, inventory, and business or gaming premises as deemed necessary for an ongoing inspection,
investigation, or audit, or to otherwise determining the licensee’s compliance
with RSA 287-E and this chapter.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7104.02 Responsibilities of the Licensed
Manufacturer.
(a) Each licensed manufacturer of lucky 7 tickets shall:
(1) Ensure that all lucky 7
tickets and devices sold or supplied for use in New Hampshire have been
approved by the commission, and comply with the standards set forth in this
chapter;
(2) When selling lucky 7
tickets, or related supplies and systems for use in New Hampshire, only sell to
New Hampshire licensed distributors;
(3) Develop internal
control procedures and recordkeeping standards to ensure the proper control and
accountability of all Lucky 7 supplies and systems sold for use in New
Hampshire, including the ability to track lucky 7 ticket deals, by form and
serial number from the point of manufacture to the point of transfer of
ownership to a licensed distributor;
(4)
Maintain records and information for all lucky 7 tickets sold to
licensed New Hampshire distributors for use in New Hampshire as required by Lot
7106.01(a)(1) below;
(5) Comply with the
construction standards as set forth in Lot 7 below;
(6) Comply with the
reporting requirements set forth in Lot 7106.01(a)(2) below;
(8) Ensure that all
pre-printed lucky 7 tickets are shipped in accordance with Lot 7107.03
below; and
(9) Ensure that all
electronically generated lucky 7 tickets designated for sale in New Hampshire
are securely transmitted;
(b)
In addition to (a) above, manufacturers of
electronically generated lucky 7 tickets shall:
(1) Provide to the
commission all current protocols, usernames, passwords, and any other
required information needed to download or otherwise access the system via a
remote connection; and
(2) In the event that a
ticket dispensing device malfunctions in a way that affects the security or
integrity of the lucky 7 game, notify the commission in accordance with Lot
7106.01(b) below.
(c)
Neither the manufacturer, nor any of its employees, shall participate in
the lucky 7 games it provides to its customers in New Hampshire.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7104.03 Responsibilities of the Licensed
Distributor.
(a)
Each licensed distributor of lucky 7 tickets, dispensing devices, or
related equipment shall:
(1) Ensure that all lucky 7
tickets and devices sold or supplied for use in New Hampshire have been
approved by the commission, and comply with the standards set forth in
this chapter;
(2) Only supply lucky 7 tickets, and related supplies, equipment
and dispensing devices to licensed charitable organizations;
(3) Immediately return any
unauthorized tickets in its possession to the manufacturer;
(4) Only sell and deliver
lucky 7 ticket deals that:
a.
In the case of pre-printed lucky 7 ticket deals, have an original,
unbroken manufacturer’s seal; or
b. In the case of electronically generated lucky
7 ticket deals, are transmitted in a secure manner, such as
encryption, password protected files, or other means that prevent readability,
and not made available for play until the charitable organization has accepted
delivery;
(5) Develop internal
control procedures to track lucky 7 deals sold to each customer, to account for
all lucky 7 tickets purchased, sold or in inventory, and to track the sale,
lease, or rental of any equipment that is used to facilitate the distribution,
play, and redemption of lucky 7 tickets;
(6) Provide invoices to
charitable organizations that contain the following information in a manner
that makes the information easy to identify:
a.
The invoice number and date;
b.
The name and address of the charitable organization;
c.
For each deal:
1.
The date of sale or
electronic transfer;
2.
The name of the manufacturer;
3.
The game name;
4.
The game form number;
5.
The serial number;
6.
The number of tickets in each
deal; and
7.
The cost of each deal;
d.
The total number of deals purchased;
e.
The total cost to the charitable organization for the deals purchased;
and
f.
The total due in deal fees; and
(7) Collect all deal fees
from the charitable organizations, and submit payment of such fees to the
commission within 15 days of the distribution, electronic transmission or
shipping date of the deal, in accordance with RSA 287-E:22, V and Lot
7107.02 below;
(8) Comply with the
reporting requirements set forth in Lot 7107.02 below;
(9) Take such action as to
ensure compliance with RSA 287-E:23, II which prohibits any partner, officer or
director of the entity from having been convicted of a felony, which has not
been annulled by any court, within the past 10 years; and
(10) When discontinuing the
sale of a progressive lucky 7 ticket, provide advanced notice to all charitable
organization that purchased one or more deals of the game within the past 12
months, and maintain sufficient inventory to allow the charitable organizations
the opportunity to award the jackpot.
(b)
When leasing lucky 7 ticket dispensing devices to a charitable
organization, the rental payment shall be based on a predetermined amount, and
not on a percentage of gross receipts.
(c)
Neither the distributor, nor any
of its employees, shall participate in the lucky 7
games it provides to its customers in New Hampshire.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7104.04 Responsibilities of the Licensed
Charitable Organization. Licensed charitable organizations
shall:
(a)
Immediately notify the commission if it no longer
meets the qualifications for licensure, including the loss of its tax-exempt
status, or failure to maintain its registration with the secretary of state or
director of charitable trust, as required by RSA 287-E:1, V;
(b)
Purchase lucky 7 deals only from licensed
distributors;
(c)
In accordance with RSA 287-E:23-A:
(1) Pay the licensed
distributor for purchased deals no later than 30 calendar days after delivery;
and
(2) Not purchase tickets
from a different distributor when the organization has failed to comply with
the provisions of (1) above;
(d)
Develop and adopt house rules in accordance
with Lot 7105.01 below;
(e)
Prominently display the following documents within the hall in
areas that are accessible to and easily seen by the public, including in the immediate area where
the lucky 7 tickets are sold:
(1) The organization’s
current lucky 7 license, pursuant to RSA 287-E:20, V;
(2) At least one copy of
RSA 287-E and this chapter; and
(3) At least one copy of
any house rules that apply;
(f)
Prominently display a sign in the immediate area where the lucky 7
tickets are sold advising the public of the phone number where complaints related to charitable
gaming may be made;
(g)
Only compensate for gaming related services when the
individual or entity providing the services is a licensed gaming consultant
with whom the organization has a written agreement;
(h)
Only reimburse bona fide members of the organization for out-of-pocket
expense in an amount not to exceed $8 per game
date when such expenses are itemized and submitted in writing to the
organization, in accordance with RSA 287-E:21, IV;
(i) Designate a member of the charitable
organization or engage a gaming consultant to act as the gaming manager who shall be responsible for overseeing the gaming
operation including:
(1) Ensuring that the games
are conducted in accordance with RSA 287-E and this chapter, and that illegal
gambling is not conducted on the premises;
(2) Ensuring that all
receipts and disbursements have been properly accounted for, and all source
documents and inventory records are complete and have been reconciled;
(3) Verifying proper
accounting of all gambling expenditure, equipment, assets, and receipts; and
(4) Ensuring that all
security measures and internal controls are in place to protect the integrity
of the games and gaming assets;
(j)
Only sell lucky 7 tickets and utilize ticket dispensing devices that
have been:
(1) Purchased from a
licensed distributor and manufactured by a licensed manufacturer, pursuant
to RSA 287-E:23; and
(2) Approved by the
commission in accordance with Lot 7108 below;
(k)
Ensure that any lucky 7 tickets put into play are:
(1) For pre-printed
tickets, as defined in Lot 7102.14(a) above, received as unopened deals with an
original, unbroken manufacturer’s seal; or
(2) For electronically
generated tickets, as defined in Lot 7102.14(b) above, generated or transferred
in a secure manner such as encryption, password protected files, or other means
that prevent readability;
(l)
Inspect all deals upon receipt, and immediately return any lucky 7 deals
that were not received in a secure manner as described in (k) above, or that do
not otherwise comply with existing laws or this chapter;
(m)
Conduct lucky 7 ticket sales in accordance with
RSA 287-E and this chapter;
(n) Develop, implement, and adhere to written
internal control policies and procedures designed to ensure effective control over the gaming operation by discouraging
and protecting against illicit behavior and safeguarding the integrity of the
games, which:
(1)
Ensure that:
a. Assets are safeguarded;
b. Financial records are accurate, reliable, and
permit proper reporting of gaming revenue, fees and taxes;
c. Transactions are performed only in accordance
with management’s general and specific authorization;
d. Transactions are recorded adequately to
permit proper reporting of gaming revenue and of fees and taxes due, and to
maintain accountability of assets;
e. Recorded accountability for assets is
compared with actual assets at reasonable intervals, and appropriate action is
taken with respect to any discrepancies;
f. Functions, duties, and responsibilities are
appropriately segregated and performed in accordance with sound business
practice by competent, qualified personnel, with no individual in a position
that would allow them to perpetuate and conceal errors or irregularities in the
normal course of duties;
g. The integrity of the game is preserved by
preventing unauthorized access, misappropriation, forgery, theft, or fraud;
h. Controls that have been put in place are
effective, and that any abnormalities are investigated and addressed; and
i.
Accountability for assets is maintained in accordance with generally
accepted accounting principles; and
(2) Include, at a minimum, the following:
a. Controls relative to the segregation of
duties such that no one person or group within the organization has complete
control over a business process or multiple steps within that process;
b. Controls relative to the access to lucky 7
tickets, including maintaining tickets in a secure
location, and restricting accessibility to authorized individuals only;
c. Controls relative to the inventory of manual
lucky 7 ticket to assure the integrity and accounting of the tickets,
including:
1. Assigning the control of ticket inventories to
individuals such that:
(i) The individual in
control of the perpetual inventory is independent of the physical inventory and
lucky 7 ticket sales; and
(ii) The individual in control of the monthly
physical inventory is independent of the perpetual inventory and lucky 7 ticket
sales;
2. Maintaining a perpetual inventory control log that
continuously tracks and records the receipt and disposition of each lucky 7
deal purchased by the organization;
3. Transferring lucky 7 tickets from storage to the sales
location in a secure and independently controlled manner that is fully
documented;
4. Conducting monthly physical inventory counts;
5. Performing monthly reconciliations of:
(i) The ending
balance of the perpetual inventory to the physical inventories to ensure that
no inventory is missing; and
(ii) The amount of lucky 7 tickets sold as
recorded by the perpetual inventory control log to the amount of revenue
realized to ensure that revenue is not missing; and
6.
Investigating and resolving all discrepancies discovered by the monthly reconciliation performed in accordance with 5. above;
d. Controls relative to ticket sales, including:
1. Ensuring that tickets exchanged between
individuals involved in the operation of the lucky 7 ticket sales are secured
and independently controlled;
2. Requiring that the total sales of all manual
ticket sales are verified by an authorized individual independent of the ticket sales being verified;
3. Maintaining records that adequately record,
track and reconcile all lucky 7 ticket sales and voids, including a minimum of
the following:
(i) The date(s) the
tickets were sold or voided;
(ii) The location where the tickets were sold;
(iii) The serial and game form numbers of the deal;
(iv) The name and description of the game; and
(v) The total number of lucky 7 tickets sold from
the deal;
4. Implementing a receipting system for the sale
of the tickets comparing cash register receipt or manual receipt summaries to
calculated sales based on the selling price of the tickets sold, where the
calculated sales are based on the quantity of tickets sold, determined by the
quantity of tickets issued out of inventory at the beginning of the specified
time period, less the quantity of tickets returned to inventory at the
conclusion of the designated time period, where the designated time period is
no less frequent than once per month; and
5. Restricting access to the lucky 7 ticket
sales records;
e. Controls relative to payouts of winning
tickets, including:
1. Recording, tracking and reconciling all
redeemed tickets and payouts;
2. Defacing or otherwise voiding all redeemed
paper tickets and vouchers so they cannot be redeemed for payment again; and
3. Requiring that all prize payouts of $600 or
more are documented and verified by at least 2 authorized individuals; and
f. Controls relative to operating funds,
including:
1. Recording and accounting for all funds used
to operate the lucky 7 games;
2. Verifying all transfers of cash or cash
equivalent;
3. Requiring that all funds used to operate the
lucky 7 are independently counted and verified by at least 2 authorized
individuals and reconciled to the recorded amount at the end of each game;
4. Paying all expenses by check, or electronic
transfer from the lucky 7 bank account;
5. Assigning an individual who is independent of
both the inventory and the sale of lucky 7 tickets to reconcile the funds
deposited into the lucky 7 bank accounts to the funds generated from the sale
of lucky 7 tickets; and
6. Limiting access to the funds in the lucky 7
bank accounts created in accordance with Lot 7106.03(a)(1) to authorized
executive members of the organization;
(o)
Retain control over funds jointly held in a cooperative agreement, and
ensure that such authority is not extended to a facility owner, or other
outside agents;
(p)
Not allow an individual to serve as both the treasurer and the
chairperson of the charitable organization or their designee;
(q) Maintain,
at a minimum, the following records pertaining to lucky 7 gaming activities:
(1) Copies of all policies
and procedures related to lucky 7 games, including play, surveillance,
security, revenue collection, and accounting for, reporting, and auditing the
results produced;
(2) When electronic lucky 7
ticket dispensing devices are used, documentation of procedures and controls,
including monitoring systems for security incidents, data back-up, and periodic
test and maintenance to ensure that the system is functioning properly and the
integrity of games is preserved;
(3) Bank statements, check
registers, reconciliations, and cancelled checks and bank deposit slips for
lucky 7 bank accounts;
(4)
Documentation of all prize payouts of $600 or more including:
a. The date of the transaction;
b. The amount of the payout;
c.
The serial number of the winning ticket, the serial number of the
dispensing device, or any other information that will help identify the winning
transaction;
d.
The initials of the person who issued the payout; and
e.
The name and address of the person receiving the payout;
(5) Documentation of the
calculation of charity allocation and state tax;
(6) All written contracts
and agreements or any other statement of understanding regarding the operation
of lucky 7 games;
(7) Work schedules and
assignments;
(8) Logs relative to the
access of lucky 7 ticket dispensing devices that include the date, time, name
of the individual(s) accessing the device; and
(9) Copies of by-laws,
articles of incorporation and organization chart listing titles, roles, and
responsibilities;
(r)
Institute written protocols for receiving cash, including the
stipulation that at least 2 persons be present when opening cash collection boxes, with each
person counting the cash and attesting to the accuracy of the count by
completing a receipt document that includes at a minimum:
(1) The amount of cash
withdrawn from the lucky 7 ticket dispensing device;
(2) The date and time of
the cash withdrawal; and
(3) The signature of each
person involved in the withdrawal;
(s)
Comply with the financial and reporting
requirements set forth in Lot 7106 below; and
(t)
Take actions to ensure compliance with RSA-E:7, VI such that no person
who has been convicted of a felony or class A misdemeanor within the previous 10 years, or a class B
misdemeanor within the past 5 years, neither of which has been annulled by the
court, or who has violated any of the statutes or rules governing charitable
gaming in the past in this or any other state are permitted to participate in
the sale of lucky 7 tickets licensed under this chapter.
Lot 7104.05 Responsibilities of the Licensed Gaming
Consultant.
(a) The licensed gaming consultant
shall:
(1) Provide
gaming services in accordance with RSA 287-E, this chapter and its written
agreement with the charitable organization;
(2)
Comply with the internal control procedures and policies of the
charitable organization for whom they are providing services;
(3)
Enact all agreements with charitable organizations using the “Standard
Form of Agreement for Gaming Consultants” form (2/2024);
(4)
Submit copies of signed agreements to the commission at least 15 days prior to providing the contracted
services; and
(5)
Submit all amended agreements to the commission at least 3 days prior to
the amendments taking effect.
(b) The requirements set forth in Lot 7104.04
above shall apply to the licensed gaming consultant when the consultant is acting on behalf
of the organization per a written agreement.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
PART Lot 7105 CONDUCT OF
LUCKY 7 TICKET SALES
Lot 7105.01 Lucky 7 House Rules.
(a)
Charitable organizations shall only adopt and follow
house rules that:
(1) Ensure that the games
are conducted in accordance with the manufacturer’s rules of play as approved
by the commission; and
(2) Do not violate the
requirements set forth in RSA 287-E or this chapter.
(b)
In accordance with Lot 7104.04(e)(3) above, the charitable organization
shall prominently display at least one copy
of its lucky 7 house rules in locations within the hall which are accessible to
and easily seen by the public, including in the immediate area where the lucky
7 tickets are sold.
(c)
House rules adopted by the licensed charitable
organization shall address at a minimum the following:
(1) Payment of winners who
are not in attendance at the time of the win, or who fail to collect their
prize before leaving the premises, if applicable;
(2) The responsibility of the player to make
it known to the game officials that the player has won;
(3) The amount of time that
players have to claim a winning lucky 7 ticket;
(4) How the player claims a
winning lucky 7 ticket;
(5) The days of the week
and time of day when the tickets are available for sale and redemption;
(6) Smoking/non-smoking
policy, which shall comply with RSA 155:66 through RSA 155:70;
(7) The organization’s name
and the effective date of the house rules;
(8) The name of a member of
the charitable organization to be contacted by a player with comments, concerns
or questions; and
(9) That the lucky 7
tickets will be sold in accordance with RSA 287-E and this chapter.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7105.02 Lucky 7 Ticket Sales.
(a)
A charitable organization shall:
(1) Only sell lucky 7
tickets at the location specified in the license issued by the commission,
which includes:
a.
The regular meeting place of or a facility owned, leased or utilized by
the charitable organization for its activities, including games of chance
facilities licensed under RSA 287-D;
b.
Any other location where the sale of lucky 7 tickets is conducted in
conjunction with and at the same time as an event sponsored or co-sponsored by
the charitable organization, to be held once a year, and for no more than 4
consecutive days; or
c.
A bingo event licensed in accordance with RSA 287-E and Lot 7000; and
(2) Only permit lucky 7
tickets to be sold by:
a.
Bona fide members of the organization;
b.
Employees, in the case of veterans and fraternal organizations; and
c.
Licensed gaming consultants.
(b)
Pursuant to RSA 287-E:21, III, a charitable
organization shall not sell lucky 7 tickets door-to-door.
(c) Pursuant to RSA 287-E:21, II and III-a, lucky
7 tickets shall only be sold:
(1)
Between the hours of 8 a.m. and 1 a.m. when tickets are sold in
conjunction with a bingo event; or
(2) During normal business
hours when tickets are sold at:
a.
The organizations regular meeting place or where the organization
conducts it normal activities, such as a fraternal hall or social club; or
b.
At a facility licensed under RSA 287-D.
(d)
The charitable organization shall not sell lucky 7 tickets at a price
different than that generated by the manufacturer on the flare or seal card
that accompanies the deal.
(e)
In accordance with RSA 287-E:20, II:
(1) The price of any lucky
7 ticket shall not exceed $1, except as allowed by (2) below;
(2) When tickets are sold
from an electronic ticket dispensing device, the price of any lucky 7 ticket
shall not exceed $2; and
(3) Any location where a
charitable organization offer a $1 tickets or higher, the charitable
organization shall also offer $0.50 lucky 7 tickets for sale.
(f)
A charitable organization may have up to 4 deals of the same game open
at any one time when the following are true:
(1) All of the deals have
the same game form number;
(2) The total ticket count
does not exceed 14,000 tickets at any one time;
(3) The tickets from all
the deals in play are combined and randomly distributed;
(4) Prior to making a
purchase, players are informed of:
a.
The number of deals that are open;
b.
The serial number of each open deal; and
c.
The method by which tickets will be selected and distributed; and
(5) The deals are
separately tracked and reported on the perpetual inventory tracking system
required by Lot 7104.04(n)(2)c.2. above.
(g)
The charitable organization shall accept an electronically transmitted
deal from the distributor before it can be put into play. Deals shall not be
uploaded to the electronic lucky 7 ticket dispensing device without
acknowledgement and approval from the charitable organization to do so.
(h) Except as required by (i) below, when a charitable organization
engages the services of one or more gaming consultants, the charitable
organization shall ensure that a majority of the
individuals participating in the sale of lucky 7 tickets are either bona fide
members of the charitable organization or employees of the licensed veterans or
fraternal organization as set forth in RSA 287-E:21, I.
(i) An employee of a veterans’, social club or
fraternal organization selling lucky 7 tickets, pursuant to RSA 287-E:21, I,
shall be a person employed by the organization such as a bartender, manager, or
custodian whose wages are subject to federal tax withholding and who regularly
works on the premises of the organization.
(j)
Pursuant to RSA 287-E:21, V, no lucky 7 tickets shall be sold to any
person under 18 years of age.
(1)
Engage in any act, practice, or course of operation that manipulates the
outcome of any game;
(2)
Provide any information to any players that provides them with an unfair
advantage relative to the potential winning lucky 7 ticket;
(3)
Hold or freeze tickets for a player, or otherwise sell lucky 7 tickets
to individuals prior to making them available to all attendees; or
(4)
Purchase or play lucky 7 tickets at any event at which they participated
in the operation.
(l)
The licensed charitable organization shall not:
(1) Put into play any lucky
7 tickets that have been altered or tampered with; or
(2) Operate a game in a
manner that tends to deceive the public or affects the chances of winning or
losing.
(m)
The flare accompanying the deal shall be:
(1) Posted in view of the
players near the area where the tickets are sold;
(2) In the case of deals
sold via an electronic ticket dispensing device, electronically displayed to
the player prior to purchase; or
(3) In the case of seal
cards, posted until all seal prizes are won, including the jackpot prize in a
progressive game.
(n)
When a seal card game is played in conjunction with a bingo event,
following the final game play on the seal card, the charitable organization
shall, upon request of any person, immediately open the remaining seal card
windows for public inspection.
(o)
Once a deal is made available for play, the deal cannot be closed for
any reason, and then reinstated for play. Once closed, the game shall be
permanently closed from play.
(p)
Licensed charitable organizations that remove unsold lucky 7 tickets
from play, for whatever reason, shall:
(1) Keep, for one year, the
un-played tickets within an opened deal for inspection by the commission; and
(2) Notify the commission
within 7 days of the removal date.
(q)
All credits maintained on an electronic lucky 7 ticket dispensing device
when removed from play may be redeemed by the player or used for play upon reactivation of the device.
(r)
The value of winning electronically generated lucky 7 tickets shall be
credited to the electronic lucky 7 ticket dispensing device, and allow for the
continuation of play or redemption by the player at any time. A deal sold over multiple days or bingo
events shall not be considered closed or removed from play until the charitable
organization no longer intends to sell tickets from the deal.
(s)
Any unclaimed credits left in an electronic lucky 7 ticket dispensing
device shall be retained by the licensed charitable organization and reported
as income.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7105.03)
Lot 7105.03 Rolling Jackpot Games.
(a)
A rolling jackpot game shall:
(1) Be organization-specific;
(2) Be location-specific; and
(3) Not be transferable between charitable
organizations.
(b)
All games contributing to a rolling jackpot prize shall be of the same
game form number and manufacturer.
(c) The rolling jackpot amount shall:
(1)
In the event there is no winner, be rolled over and added to the
designated jackpot value of the next rolling jackpot game of the same name and
game form number;
(2)
Accumulate until there is a winner, or in the case of a game with
multiple jackpots, until there is a winner for each respective designated
jackpot; and
(3)
Be paid out to players prior to the charitable organization ceasing
operations of its rolling jackpot games.
(e) A charitable
organization may move a rolling jackpot game to a new game time, day of the
week, or location provided that:
(1)
At least 14 days prior to the change, the organization:
a. Submits a written notification to the
commission which includes all relevant details such as the new time, date, or
location, and the reason for the move; and
b. Notify players of the change by prominently
posting a public notice at the gaming facility, and on any social media
accounts held by the organization announcing its intent and providing details
relative to the new time, date, or location; and
(2)
The operation of the rolling jackpot game is not otherwise changed or
amended in any way, including that the jackpot funds remain in the
same checking account as was originally designated prior to the change.
(f) Prior to a charitable organization ceasing to
offer a given rolling jackpot game that has an unclaimed jackpot, the
organization shall:
(2) At least 14 days prior to the change:
a.
Submit a written request for approval to the commission which includes a
copy of the rules developed in accordance with (1) above, and any other
relevant details including the date and time of the final game; and
b.
Prominently posts a public notice at the gaming facility, and on any
social media accounts held by the organization announcing its intent to close
the game including the rule developed in accordance with (1) above, and any
other relevant details;
(4)
At least 30 minutes prior to and again at the commencement of ticket
sales, make a public announcement to inform players where tickets can be
purchased and where the rules posted in accordance with (3) above are located.
(g) In the event a charitable organization’s
license expires, is not renewed, suspended, revoked, or surrendered with an
outstanding rolling jackpots, the organization shall:
(1) Arrange for
the jackpots to be awarded at a bingo event hosted by another licensed
charitable organization within 3 weeks of the loss of licensure;
(2)
Develop rules to fully distribute the rolling jackpot in a manner that
is fair and preserves the integrity of the game;
(3)
At least 7 days prior to the change:
a. Submit a written request for approval to the
commission which includes all relevant details of the arrangement including the
name of the host organization, and the date, time, and location of the final
game; and
b. Prominently posts a public notice of its
intent and the date, time, and location of the final game at:
1. The location where the charitable
organization held its bingo events prior to its loss of licensure;
2. The location where the final game will be
played; and
3. On any social media accounts held by the
organization;
(4)
At least 30 minutes prior to the commencement of ticket sales,
prominently display the rules in the immediate area where the tickets will be
sold; and
(5)
At least 30 minutes prior to and again at the commencement of ticket
sales, make a public announcement to inform players where tickets can be
purchased and where the rules posted in accordance with (3) above are located.
(h) The commission shall grant a written request
submitted in accordance with (f)(1)a., (g)(2)a., and (h)(2)a. when the new game
time, day of the week or location does not negatively impact the fairness or
integrity of the game.
(i) A rolling jackpot
game shall be considered closed when all prizes have been awarded.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24
Lot 7105.04 Payment of
Prizes.
(a)
Only cash prizes shall be awarded to lucky 7 ticket winners and lucky 7
seal card winners.
(b)
The charitable organization shall:
(1) Verify and record the
identity of the individual redeeming winning tickets of $600 or more, as
required by Lot 7104.04(q)(4) above;
(2) Pay all individual cash
prizes in compliance with Internal Revenue Service (IRS) W-2G requirements; and
(3) Make all such required
documentation available upon request for inspection by the commission.
(c)
Pursuant to RSA 287-E:20, IV, the percentage of payback to the player
shall be at least 45 percent of gross revenues for the deal.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7105.05)
PART Lot 7106 RECORDING AND REPORTING REQUIREMENTS
Lot 7106.01 Requirements for Manufacturers.
(a) Each licensed manufacturer
of lucky 7 tickets shall:
(1) Maintain, at a minimum, the following records and
information for all lucky 7 tickets sold to licensed New Hampshire distributors
for use in New Hampshire:
a. Copies of all invoices for
lucky 7 tickets;
b. Copies of shipping documents
verifying shipments of lucky 7 tickets and invoices;
c. Game name and game form
number sold;
d. Number of lucky 7 ticket
deals sold by serial number;
e. The date that each lucky 7
ticket deal was sold; and
f. Name and address of the
licensed distributor that each deal was sold to; and
(2) Provide reports to the commission upon request that
include a minimum of the following information:
a. The name and address of each
distributor in New Hampshire to whom any lucky 7 deals were shipped or
electronically transmitted within a specified time period;
b. The game name, game
form number, serial number, and quantity of each deal shipped or electronically
transmitted to each distributor;
c. The dates of each
shipment or electronic transmission; and
d. The cost to the
distributor of each deal shipped or electronically transmission.
(b) In the event that a
ticket-dispensing device malfunctions in a way that affects the security or
integrity of the lucky 7 game, the manufacturer shall notify the commission in
writing within 3 business days of the malfunction by supplying the following
information:
(1) A description of the malfunction and the date on
which it occurred;
(2) The steps taken or that will be taken to remedy the
situation; and
(3) The date by which the issue will be resolved.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7107.01)
Lot 7106.02 Requirements for
Distributors. Each licensed distributor shall:
(a)
Report sales information and submit deal fee payments to the commission
as follows:
(1) Electronically complete
and submit a “Deal Fee Report” (2/2024) workbook for all deals sold and
returned within the reported month;
(2) Print, sign and submit
a hard copy of the submittal page of the workbook to the commission along with
deal fee payment in the amount due to the state; and
(3) Ensure that the reports
and payments are received by the commission no later than the 15th
day following the end of the reported month; and
(b) Electronically submit to
the commission a completed “Lucky 7 Ticket Dispensing Device Location Report”
(2/2024) upon installing or removing an approved lucky 7 dispensing device.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7107.02)
Lot 7106.03 Requirements for
Charitable Organizations.
(a)
Pursuant to RSA 287-E:9, IV, the charitable organization shall:
(1) Have a separate
checking account for depositing bingo and lucky 7 revenue at a financial
institution in New Hampshire;
(2) When lucky 7 tickets
are sold in conjunction with a bingo event, include all receipts from lucky 7
sales in the deposit made in accordance with Lot 7007.01(c)(1);
(3) Separately identify
money deposited from bingo and lucky 7 revenue on each deposit slip; and
(4) Use the funds in the
account specified in (1) above only for:
a.
Expenditures related to bingo or lucky 7; or
b.
Disbursement of bingo or lucky 7 proceeds for a charitable purpose.
(b)
In accordance with RSA 287-E:24, all expenses shall be paid by
preprinted check or electronic funds transfer from the organization’s
charitable gaming account specified in (a)(1) above.
(c)
The charitable organization shall maintain all financial accounts,
records and ticket inventories, which verify the following:
(1) Gross revenue;
(2) Prizes paid out;
(3) Adjusted gross revenue;
(4) Bank deposits;
(5) Cost of full deals
sold;
(6) Fee payments;
(7) Other expenses;
(8) Net profit;
(9) Inventory data by
ticket type; and
(10) Names and addresses of
members selling lucky 7 tickets.
(d)
The records described in (c) above shall be maintained for a minimum of
2 years and be made accessible to the commission upon request.
(e)
The charitable organization shall keep the checking account records for
the lucky 7 account on the premises where the tickets are sold.
(f) Each licensed charitable organization shall
electronically complete and electronically submit the appropriate monthly
financial report form as follows:
(1) All lucky 7 tickets
sold in conjunction with a bingo event shall be reported using the “BL7MFR”
(2/2024) form;
(2) All lucky 7 tickets
sold at games of chance facilities as permitted by RSA 287-E:21, III-a, shall
be reported using the “L7MFR-GOC” (2/2024) form; and
(3) All lucky 7 tickets
sold at a facility utilized by the organization for its activities, such as a
fraternal hall or social club, shall be reported using the “L7MFR-Clubs”
(2/2024) form; and
(4) All workbooks shall be
electronically submitted to the commission as follows:
a. Charitable organizations shall submit the report within 15 days of
the end of the reported month when lucky 7 tickets are sold;
1.
At a special event pursuant to RSA 287-E:21, II(b)
2.
In conjunction with a bingo event pursuant to RSA 287-E:21, II(c); or
3.
At a games of chance facility pursuant to RSA 287-E:21, III-a; and
b.
Charitable organizations selling lucky 7 tickets at their regular
meeting place, such as a fraternal hall or social club, shall submit the report
within 105 days from the date of issue
and every 90 days thereafter, or within 15 days after the expiration date of
the license, whichever occurs first.
(g) Each licensed charitable organization
shall electronically complete and submit an annual physical inventory as
follows:
(1) The inventory shall be
conducted at the conclusion of June’s gaming activities, but before the start
of July’s gaming activities;
(2) An annual physical
inventory may fulfill the requirement of the monthly inventory for June;
(3) The inventory shall be
recorded using the “Physical Inventory Form – ‘Traditional’ Lucky 7 Tickets”
form (2/2024), which shall include a certification affirming that under penalty of
unsworn falsification pursuant to RSA
641:3, the information provided on the
form is true, accurate, and complete, and that there are no willful misrepresentations
in or falsifications of the information provided; and
(4) The form shall be
electronically submitted to the commission by July 15 following the completion
of the inventory.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7107.03)
Lot 7106.04 General
Reporting Requirements.
(a) If a licensee has been identified
through inspection, audit, or other means as having deficiencies in complying
with statutory or regulatory requirements or having ineffective internal
controls, the commission shall impose restrictions or additional recordkeeping
and financial reporting requirements.
(b) Upon request, the licensee
shall provide the commission with all records deemed necessary for an ongoing
inspection, investigation or audit.
(c) Where electronic ticket
dispensing devices are utilized, the licensee shall extrapolate and provide
data as requested by the commission at no cost to the State, when such
information is needed as part of an inspection, audit, or related function of
the commission.
Source. #13913, eff 3-22-24
PART Lot
7107 LUCKY 7 TICKETS AND LUCKY 7 TICKET DISPENSING DEVICE
REQUIREMENTS
Lot
7107.01 Lucky 7 Ticket Price and Markings.
(a)
No lucky 7 ticket shall be sold, or otherwise furnished to any licensee
in New Hampshire for use in conducting charitable gaming until an identical
sample has been approved by the commission.
(b)
Licensed distributors and manufacturers shall only sell lucky 7 tickets
that:
(1) Are constructed in such
a manner as to be fair, honest, and as such prevents the determination of a
winning or losing ticket without removing the tabs or otherwise uncovering the
symbols or numbers as intended, whether by manual or electronic methods;
(2) Have a single payout
structure, and unique and differential game name assigned to each game form
number; and
(3) Have been approved by
the commission in accordance with Lot 7109 below.
(c) Each deal shall meet the following minimum
requirements:
(1) Each deal shall consist
of a maximum of 14,000 tickets;
(2) All tickets making up a
particular deal shall be of the same purchase price, not to exceed the maximum
allowed in accordance with RSA 287-E:20, II and Lot 7105.02(e) above;
(3) Each deal shall be
assigned a unique serial number that:
a.
Is a minimum of 5 numeric, alpha, or a combination of numeric and alpha
characters; and
b.
Has not been used for the same game form number within the past 3 years;
(4) If a seal card is used
with a lucky 7 deal, the seal card shall bear the same serial number as each
lucky 7 ticket;
(5) Each deal shall include
a flare that provides deal specific information including:
a.
The game name;
b.
The manufacturer’s name or distinctive logo;
c.
The game form number;
d.
The ticket count;
e.
The number of winners by denomination with their respective winning
symbols or number combinations;
f.
The cost per ticket; and
g.
The game serial number; and
(6) Each deal shall include
instructions on how the game is to be played. This information may be provided
on the flare or on a separate information sheet or help screen.
(d) The following shall apply
to pre-printed lucky 7 tickets:
(1) A minimum of the
following information shall be printed on the exterior of each unopened ticket
with an overall area of 2.5 square inches or more:
a. The number of winners and
respective winning number(s) or symbol(s);
b. The prize amounts within a
deal;
c. The price of each ticket;
d. The game name;
e. The game form number;
f. The serial number;
g. The name or logo of the
manufacturer of the ticket;
h. The New Hampshire state
seal; and
i. The words “Please play
responsibly”;
(2) Tickets with an overall
area of at least 1.6 square inches but less than 2.5 square inches when
unopened, are not required to contain the information in a.-b. above if that
information is contained in a flare that accompanies the deal;
(3) Tickets with an overall
area of less than 1.6 square inches when unopened are not required to contain
the information in (1)a-c. and e. above if the information is contained in a
flare that accompanies the deal;
(4) The ticket shall be
constructed such that information required by (1)e.-g. above shall remain
visible on the ticket when all window tabs have been removed; and
(5) All winning tickets
shall have at least one winner protection feature, and all winning tickets that
entitle a player to an instant prize greater than $50 shall include an
additional form of winner protection.
(e)
The following shall apply to electronic lucky 7 tickets printed on
demand at the terminal:
(1) The following
information shall appear on the interior of the ticket:
a.
The game symbols or numbers showing the results of the ticket, which
shall be distinguishable and clearly correlate with the game symbols and
numbers that appear on the device’s monitor;
b.
The game form number;
c.
The serial number;
d.
The name or logo of the manufacturer;
e.
The date, time, and gaming location where the ticket was sold;
and
f.
A unique validation number or barcode from which the validity of the
prize can be determined; and
(2) The following shall
appear on the exterior of the ticket:
a.
The New Hampshire state seal; and
b.
The words “Please play responsibly; and
(3) The information
required to appear on the flare, pursuant to
Lot 7107.01(c)(5) above, shall appear on the video monitor.
(f) If an electronic lucky 7 game includes an
extended play feature, a notification shall be provided notifying players that an extended play feature is being utilized to
prolong the play of an electronic lucky 7 ticket but will not award a prize in
addition to the predetermined prize for that ticket.
(g) All lucky 7 tickets shall
be initially displayed with a cover and require player interaction to reveal
the symbols and game outcome.
(h) When a cash-out voucher is
produced by an electronic lucky 7 ticket dispensing devices, a minimum of the
following shall appear on the cash-out voucher:
(1) The location where the electronic lucky 7 ticket
dispensing device is located;
(2) The serial number of the electronic lucky seven
dispensing device, as issued by the manufacturer;
(3) The value of the unused game plays or winnings in
both words and numerical form;
(4) The date and time that the cash-out voucher was
printed;
(5) The sequential number of the cash-out voucher;
(6) A unique validation number or barcode that can be
used to validate the cash amount payable to the player; and
(7) The
period of time during which prizes must be claimed.
(i) The following shall apply to event games as defined by Lot 7102.07:
(1) The game shall consist of a method of
randomly selecting numbers or symbols that correspond to the numbers or symbols printed by the manufacture on the ticket;
(2) No ticket shall be both an instant winner and a hold card;
(3) No game shall contain duplicate hold combinations. If a game contains
multiple sets of hold combinations, each set must be distinguishable by color
or distinguishing feature;
(4) A ticket may contain more than one hold combination;
(5) The number of winners and the prize amount
shall be built into the payout structure for the game by the manufacturer; and
(6) Event game prizes shall not be included in
determining compliance with RSA 287-E:7, X relative to the total prize limit
for a bingo event.
(j)
The following shall apply to seal cards:
(1) The following information shall appear on the
front of the card:
a.
The name of the game;
b.
Game form number;
c.
Serial number;
d.
The name or logo of the manufacturer;
e.
The total ticket count;
f. With the exception of rolling jackpot games, a depiction of
every prize value that can be won;
g.
The number of winning tickets by denomination with their respective
winning symbols or number combinations;
h.
The cost per ticket; and
i.
Individual lines large enough for each selected players’ name for games
that require such information;
(2) Multiple seal cards for a single game shall
each indicate the total number of seal cards played for that game form number.
(k) The following shall apply to rolling jackpot
games:
(1)
In addition to the information required by (d)-(e) above, the following
shall appear on the front of the card:
a. The amount dedicated to the prize pool, if
applicable; and
b. For rolling jackpot games, a clearly defined
area in which the current amount of the jackpot can be posted;
(2) In the case
of an electronic rolling jackpot game, the information required by (1) above
may appear on the video monitor;
(3) The rolling jackpot prize shall be:
a. Built into the payout structure for the game;
and
b. Included on
the flare for each game; and
(4)
Each game shall contribute the same amount towards the progressive
jackpot.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7108.01)
Lot 7107.02 Randomization.
(a)
Winning lucky 7 tickets shall be distributed and mixed among all other
tickets in a deal to eliminate any patterns between deals or portion of deals
from which the location or approximate location of any winning lucky 7 ticket
may be determined.
(b)
To ensure randomization the manufacturer shall:
(1) Assemble pre-printed
deals so that no placement of winning or losing lucky 7 ticket exists that
allows the possibility of prize manipulation or pick out, as follows:
a.
Deals shall be assembled so that winning tickets are placed randomly
throughout each deal; and
b.
Deals are assembled and packaged in a manner that prevents isolation of
winning tickets due to variations in printing, graphics, colors, sizes,
appearances of cut edges, or other marking of lucky 7 ticket;
(2) Utilize testing
procedures to validate the randomness of the winning tickets within a deal, as
well as randomness of winning positions across units of tickets;
(3) Shuffle electronically
generated lucky 7 tickets using a method that has successfully passed a
standard test for randomness and unpredictability, to a confidence level of 99
percent including, but not limited to, one of the following:
a.
Chi-square test;
b.
Run test; or
c.
Serial correlation test; and
(4)
Utilize a random number generator or random selection process that is
impervious to electromagnetic
interference, electrostatic interference, radio frequency interference, and
other influences from outside the system or device that might affect the game
outcome.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7105.02)
Lot 7107.03 Packaging and Shipping of Pre-Printed
Tickets. The manufacturer shall ensure that all pre-printed lucky 7 tickets
are packaged and shipped in accordance with the following:
(a) Each package of lucky 7 tickets shall be
sealed at the point of manufacture with tamper evident seals or tape, and includes a warning message
to the purchaser that the deal might have been tampered with if the package was
received with evidence of tampering such as a seal or tape;
(b) The seal or tape required by (a) above shall
be visible from outside the package and be constructed in such a way as to
guarantee that, should the container be opened or otherwise tampered with,
evidence of the opening or tampering would be easily detected;
(c) The deal’s serial number shall either be clearly and legibly placed
on the outside of the package or be viewable from the outside of the package;
and
(d) The manufacturer shall affix a bar code label
that contains at a minimum the name of the manufacturer or its distinctive
logo, the game form number and the game serial number to package, box or
container of a deal of lucky 7 tickets. This bar code must be visible from
outside the package, box or container.
Source. #13913, eff
3-22-24
Lot 7107.04 Lucky 7 Ticket
Dispensing Devices.
(a) No lucky 7 ticket
dispensing device shall be sold, leased, or otherwise furnished to any licensee
in New Hampshire for use in conducting charitable gaming until an identical
model, or equipment containing identical software, has been approved by the
commission, pursuant to Lot 7108.02.
(b) All lucky 7 ticket
dispensing devices shall:
(1) Have the ability to accept, at a minimum, $1, $5,
$10, $20, and $50 bills;
(2) Contain a money receptacle that is robust enough to withstand
forced illegal entry, and otherwise prevents and identifies cases of tampering;
(3) Dispense a cardboard or paper ticket, as required
by RSA 287-E:21, III-a;
(4) Not be in the nature of a slot machine, as
stipulated by RSA 287-E:21. A device shall not be considered to be in the
nature of a slot machine when there is a finite probability basis of having a
predetermined quantity of chances among which there is a predetermined quantity
of winners that pay a fixed and predetermined value of prizes, regardless of
the symbols that are used or how those symbols are displayed;
(5) Have a distinctive serial number; and
(6) Be robust enough to
withstand forced illegal entry that would leave behind physical evidence of the
attempted entry or such entry that causes an error code that is displayed and
transmitted to the system.
(c)
In addition to the requirements of (b) above, all electronic lucky 7
ticket dispensing devices, software and associated equipment shall:
(1) Be tested by an independent gaming laboratory that
has been formally recognized by the commission as a testing facility that
upholds the standards of integrity established by the commission, and been
found by the laboratory to be:
a.
In compliance with the requirements of this chapter, and RSA
287-E:16-26;
b. Fair and equitable to both
the players and the operators; and
c. In compliance with
applicable GLI standards, available as noted in Appendix A,
including:
1.
GLI 11 Standards for Gaming Devices (version 3.0, 2016);
2.
GLI-14 Finite Scratch Ticket and Pull-Tab Systems (version 2.2, 2011);
3.
GLI-20 Standards for Kiosks (version 2.0, 2019); and
4.
GLI-21 Client Server Systems (version 2.2, 2011);
(2) Print paper tickets and cash-out vouchers, upon
request of the player
(3) Issue tickets and visually display the results of
any ticket on a video monitor at intervals of no less than 2 seconds;
(4) Allow the commission to conduct an on-site,
independent verification check of the systems software, and any other
components and control programs that may affect the integrity of the system;
(5) Include the following
access controls:
a.
Key controls that include at least one keyed lock with a multiple
function position or a role-based access control capable of restricting access
to accounting and auditing functions;
b. Controls designed to prevent unauthorized
access to data transmissions, undispensed tickets, cash box, or the accounting system, and include the
ability to trace unauthorized access including time and date, users involved,
and any other relevant information;
c.
Automated audit logs that prevent the alteration of accounting or other
significant event information without supervised access controls, including an
automated audit log capable of documenting the data element altered, the value
prior to alteration, the value after alteration, the date and time of the
alteration, and the personnel performing the alteration; and
d.
Secure communication protocols designed to prevent unauthorized access
or tampering of data transmission to each participating location, and the
connections between all components and access points of the electronic game
system;
(6) Include a processor that records and stores
data relative to ticket price, payments received, and tickets dispensed, and the ability to downloaded
the data for tracking and accounting purposes;
(7) Cease play in the event that
tickets are not being dispensed, such as when the device runs out of paper;
(8) Have the ability to retain accounting information
in the event of a power failure or electrical interruption;
(9) Produce reports of sales data that permits the
charitable organization to complete a monthly financial report as required by
Lot 7107.03(a);
(10) Allow the commission real-time, remote, read-only
access to the server, at no cost to the state, for the purpose of printing
reports and monitoring the disposition of each purchased deal by location,
device, charitable organization, game form, deal, ticket and dates and times of
purchase, outcome, transaction logs and system status reports;
(11) Not be in the nature of a
slot machine, as prohibited by (b)(4) above and RSA 287-E:21, III-a; and
(12) Consist of application software that is wholly
owned free and clear and without any further obligation or condition by any
entity other than the licensed manufacturer;
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20#13913, eff
3-22-24 (formerly Lot 7108.02)
Lot 7107.05 Data
Requirements for Each Deal of Electronic Lucky 7 Tickets.
(a) The following shall be
available prior to the opening of a deal for distribution and shall be
maintained and be viewable both electronically, and, if requested by the
commission, by printed report, upon demand:
(1) A unique serial number identifying each deal;
(2) A description of a deal sufficient to categorize
the deal relative to other deals;
(3) The total number of lucky 7 tickets in the deal;
(4) The payout percentage of the entire deal;
(5) The purchase price per lucky 7 tickets assigned to
the deal; and
(6) Prize values with an associated index and
frequency.
(b) The following data shall be
available subsequent to the completion of a deal and
shall be maintained and viewable both electronically and, if requested by the
commission, by printed report, upon demand:
(1) A unique serial number identifying each deal;
(2) A description of a deal sufficient to categorize
the deal relative to other deals;
(3) The total number of lucky 7 tickets unsold;
(4) Total number of lucky 7 tickets purchased;
(5) The time and date that the deal became available
for play;
(6) The time and date that the deal was completed or
removed from play;
(7) The location where the deal was played;
(8) The final payout percentage of the deal when
removed from play; and
(9) The purchase price per lucky 7 tickets assigned to
the deal.
(c) In order to provide maximum
game integrity, no unauthorized audit or other determination of the status of
any deal, including, but not limited to, a determination of prizes won or
prizes remaining to be won, shall be conducted by anyone while the deal is in
play without causing the termination of the entire deal.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20#13913, eff
3-22-24 (formerly Lot 7108.03)
PART Lot
7108 REQUEST FOR APPROVAL OF LUCKY 7 TICKETS AND TICKET DISPENSING
DEVICES
Lot 7108.01 Lucky 7 Tickets
Approval Process.
(a) No lucky 7 ticket shall be
put into play without first being approved by the commission.
(b) To obtain approval of a
lucky 7 ticket, a licensed manufacturer shall submit a written request to the
commission, and include the following:
(1) Graphic representations of:
a. The ticket front, back and
interior;
b. All game play symbols; and
c. At least one of each of the
following:
1.
A winning ticket;
2.
A losing ticket;
3. A winning ticket featuring extended play, if applicable;
4.
A winning progressive jackpot ticket, if applicable; and
5.
A seal card and a hold card, if applicable;
(2) Game information including:
a.
The game form number;
b.
The price per ticket;
c.
The number of tickets per deal;
d. Gross payout;
e. Percent payout;
f. Amount of profit;
g. The overall odds of winning,
the calculations of which shall count a ticket with multiple win lines as a
single winning ticket;
h.
The number of winners by denomination, total payout value, and their
winning combinations; and
i. A detailed description of how
the game is played and won; and
(3) In the case of tickets played on an electronic lucky 7 ticket
dispensing device:
a. A video demonstrating the game, including examples of each of the
types of tickets described in (1)c. above; and
b. A copy of the
laboratory report required by Lot 7107.04(c)(1)c specific to the system on
which the game is played. An updated report is required whenever a change to
the system alters the signature of the software.
(c) Within 30 days of receipt,
the commission shall review the submittal and issue either an approval or
denial;
(d)
The commission shall approve the lucky 7 ticket for sale when the
request has been submitted in accordance with (b) above, and the ticket has
been found to comply with RSA 287-E and this chapter, including the following:
(1) The game form number is unique to the game,
including cost per play, ticket count, and payout structure;
(2) The price of the Lucky 7
ticket complies with RSA 287-E:20, II and Lot 7105.02(e) above;
(3) The number of Lucky 7 tickets in a deal does not
exceed 14,000;
(4) The deal's payout and profit amounts are clearly
defined;
(5) The overall odds of winning a prize on a ticket are
clearly defined;
(6) A prize structure is clearly defined that denotes
the number of wins per deal for each prize level, including the seal card if
applicable;
(7) Pursuant to RSA 287-E:20, IV, the percentage of
payback to the player is at least 45 percent of gross revenues for the deal;
and
(8) The tickets conform to the requirements of Lot
7107.01above.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20#13913, eff
3-22-24 (formerly Lot 7109.01)
Lot 7108.02 Lucky 7 Ticket
Dispensing Device Approval Process.
(a) No lucky 7 ticket
dispensing device shall be utilized without first being approved by the
commission.
(b) To obtain approval of a
lucky 7 ticket dispensing device, a licensed manufacturer or distributor shall:
(1) Submit a written request to the commission along
with documentation that supports the device’s compliance with Lot 7107.04; and
(2) Demonstrate the device to the commission upon
request.
(c) The commission shall
approve a lucky 7 ticket dispensing device when it is found to comply with RSA
287-E, and this chapter.
(d) If granted, approval shall
extend only to the specific lucky 7 ticket dispensing device systems or
components that were reviewed and approved by the commission.
(e) In the case of electronic
lucky 7 ticket dispensing devices, access to the device’s server shall be
available to the commission for the purposes of monitoring and auditing at no
added cost to the state.
(f) Any modification to system
software, hardware, design, or component of an approved lucky 7 ticket
dispensing device shall be performed only by the licensed manufacturer or its
designated representative.
(g) If any modification
results in a change in software or hardware, the manufacturer shall not place
the game or system in operation until it has been:
(1) Assigned a new version or code build number;
(2) Tested by a certified independent laboratory if such modifications
effect the outcome of a previously approved game or changes the signature of
the software; and
(3) Has been submitted to the commission for review and has received
commission approval.
(h) Any lucky 7 ticket
dispensing device that has been modified in accordance with (f) above, shall be
resubmitted for review in accordance with (b) above, and approved by the
commission in accordance with (c) above prior to being utilized.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20#13913, eff
3-22-24 (formerly Lot 7109.02)
Lot 7108.03 Approved Lucky 7
Tickets and Lucky 7 Ticket Dispensing Devices.
(a) The commission shall
restrict specific terms of the approval such as limiting the specific number of
the deals or ticket dispensing devices at any one location, or other controls
as the commission deems suitable and proper to ensure the integrity of the
game.
(b) Any approval shall be
cancelled and vacated or modified by the commission in its sound discretion at
any time, either specifically as to a particular license or licenses, or
generally as to all licenses issued on the basis of
the particular certification.
(c) The commission shall give
notice and afford an opportunity for the licensee to be heard by the commission
before taking any of the actions described in (b) above.
(d) Upon request of the
commission, a charitable organization shall allow the commission to inspect any
components of an approved lucky 7 ticket dispensing device for the purposes of
confirming that such components are operating in accordance with the
requirements of this chapter, and are identical to those components that have
been tested by an independent gaming laboratory, in accordance with Lot
7108.03(c)(1) above.
(e)
The commission shall immediately order that the licensed charitable
organization cease the operation and use of any lucky 7 ticket dispensing
device when the device:
(1) Does not appear to be operating in accordance with
the requirements of this chapter;
(2) Is not identical to the device that was approved by
the commission; or
(3) Is otherwise found to be in violation of law or
this chapter.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20#13913, eff
3-22-24 (formerly Lot 7109.03)
PART Lot 7109 REPORTING
VIOLATIONS
Lot 7109.01 Reporting of Violations.
(a)
Unless otherwise required by law, the identity of any individual who
provides information to the commission regarding alleged violations shall be
held in strict confidence.
(b)
Any officer of a licensed charitable organization or any officer or
director of a supplier or manufacturer shall immediately report to the
commission any information pertaining to the suspected misappropriation or
theft of funds or any other violation of charitable gaming statutes or these
rules.
(c)
Any officer of a licensed charitable organization involved in the
management, operation, or conduct of charitable gaming shall immediately notify
the commission upon being convicted or pleading nolo contendere to a crime that
would deem them ineligible to participate in charitable gaming per RSA 287-E:7,
VI.
(d)
Any officer, director, partner or owner of a supplier or manufacturer
shall immediately notify the commission upon being convicted or pleading nolo
contendere to a crime that would deem them ineligible to participate in
charitable gaming per RSA 287-E:7, VI.
(e)
Any officer of a license charitable organization shall immediately
report to the commission any change the Internal Revenue Service makes in the
tax status of the organization, or if the organization is a chapter of a
national organization covered by a group tax exempt determination, the tax
status of the national organization.
(f)
Failure to report information required in (d) and (e) above by an
officer, director, or game manager or a licensed organization or by any
supplier or manufacturer shall result in the denial, or revocation of a license.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20#13913, eff
3-22-24 (formerly Lot 7111.01)
PART Lot 7110 PENALTIES
Lot 7110.01 Imposition of Penalties.
(a)
Pursuant to RSA 287-E:25 and RSA 287-E:25-a, disciplinary measures
available to sanction misconduct shall include:
(1) Imposition of an
administrative order or fine;
(2) Suspension of a license
for a period of up to one year; and
(3) Revocation of a
license.
(b)
Other than the immediate suspension of a license, the commission shall
impose disciplinary sanctions only:
(1) After prior notice to
the licensee and the opportunity for him or her to be heard per the
requirements of RSA 541-A:3-, II; or
(2) By agreement in a
settlement between the commission and the licensee made pursuant to Lot 200.
(c)
The commission shall provide all notices and conduct all hearings in
accordance with the requirements set forth in RSA 541-A, Lot 200, and this
part, as applicable.
(d)
The commission shall apply the following factors to determine which
sanction or combination of sanctions to impose:
(1) The seriousness of the
offense;
(2) Prior disciplinary
record(s);
(3) Previous and subsequent
patterns of conduct;
(4) Acknowledgment of his
or her wrongdoing;
(5) Willingness to
cooperate with the commission;
(6) Action taken to correct
the problem;
(7) The purpose of the rule
or statute that was violated;
(8) The potential harm to
public health, safety and welfare; and
(9) The nature and extent
of the enforcement activities required of the commission as a
result of the offense.
(e)
The commission shall select appropriate sanction(s) by choosing the
sanction(s) most likely to:
(1) Protect public health,
safety or welfare;
(2) Prevent future
misconduct;
(3) Correct the
attitudinal, educational, or other deficiencies which led to the misconduct;
(4) Encourage the
responsible practices of operating a charitable gaming event; and
(5) Ensure the integrity of
charitable gaming in New Hampshire.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7112.01)
Lot 7110.02 Administrative Fines.
(a)
Pursuant to RSA 287-E:25-a, I, when the commission imposes an
administrative order or fine upon a person or entity for a violation of RSA
287-E or this chapter, the order shall be scaled to reflect the scope of the
violation for each offense.
(b)
When the commission has determined that a violation or violations of RSA
287-E, or this chapter have occurred, the commission shall send a written
notice of the proposed fine(s), by certified mail or hand delivery, to the
person, entity, applicant or licensee of the commission’s intent to assess a
fine.
(c)
The written notice required under (b) above shall contain the following
information:
(1) The violation(s)
alleged by the commission and the facts on which the allegations are based;
(2) The statutory
section(s) that authorize(s) the commissioner to impose a fine;
(3) The amount of the fine
for each violation sited and the total amount of fine(s) being sought; and
(4) The respondent’s right
to request an adjudicative hearing prior to the imposition of the fine.
(d)
In accordance with RSA 287-E:25-a, II, any administrative fine imposed
under this section shall not preclude the imposition of further penalties or
administrative actions under RSA 287-E or this chapter.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7112.02)
Lot 7110.03 Administrative Fine Schedule.
(a)
For the purposes of this section, “minor violation” means conduct,
action, or failure to act by any person, entity, applicant or licensee
individual, or entity that was not:
(1) Of a nature, quality,
or extent to effect or potentially effect the integrity of the charitable
game(s) being conducted;
(2) Of a nature, quality or
extent to cause or potentially cause harm to the interest of the state or the
charitable organization;
(3) A knowing, willful, or
intentional violation;
(4) A violation that is
chronic or part of a continuing pattern or practice of the licensee;
(5) An indication of a
recalcitrant violator or one that has engaged in a pattern of neglect or
disregard with respect to applicable regulatory requirements;
(6) An act that enabled the
violator to benefit economically from the noncompliance; or
(7) Intended to hinder the
ability of the commission to determine compliance with any other applicable
local, state or federal regulation, information request, order or other
requirement.
(b) Minor violations shall include, but
not be limited to:
(1) Failing to prominently
display documents, as required by Lot 7104.04(e);
(2) Selling lucky 7 tickets to an individual under the age of 18, as prohibited by
RSA 287-E:21 and Lot 7105.03(j); or
(3) Allowing individuals who are not bona fide
members, salaried employees, or a gaming consultant with whom the organization
has a written agreement to sell lucky 7 tickets.
(c)
The commission shall impose a fine of no less than $25, and no more than
$500 per minor violation committed by any person, entity, applicant or
licensee.
(d)
For the purposes of this section, “moderate violation” means conduct,
action, or failure to act by any person, entity, applicant, or licensee that
exceeds the strict definition of a minor violation, as defined in (a) above,
but do not meet the level of severity of a major violation, as defined in (g)
below.
(e)
Moderate violations shall include, but not be limited to:
(1) Failing to submit any
reports by the due date with each different type of report or record requested
but not provided constituting a separate violation subject to a separate fine;
(2) Reopening a deal after it has been closed;
(3) Operating games in a manner that differs from the adopted
house rules;
(4) Failing to maintain the lucky 7 ticket dispensing devices in
proper, working order; or
(5) Committing 3 or more
minor violations within 2 years.
(f)
The commission shall impose a fine of no less than $250, and no more
than $1,500 per moderate violation committed by any person, entity, applicant
or licensee.
(g)
For the purposes of this section, a “major violation” means conduct,
action or failure to act by any person, entity, applicant, or licensee that is:
(1) Of a nature, quality,
or extent to effect or potentially effect the integrity of the
charitable game(s) being conducted;
(2) Of a nature, quality or
extent to cause or potentially cause harm to the interest of the state or the
charitable organization;
(3) A knowing, willful or intentional violation;
(4) A violation that is chronic or part of a continuing
pattern or practice of the licensee;
(5) An indication of a
recalcitrant violator or one that has engaged in a pattern of neglect or
disregard with respect
to applicable regulatory requirements;
(6) An act that enabled the
violator to benefit economically from the noncompliance; or
(7) Intended to hinder the
ability of the commission to determine compliance with any other applicable
local, state or federal regulation, information request, order or other
requirement.
(h)
Major violations shall include, but not be limited to:
(1) Establishing,
maintaining, operating, or otherwise offering a lucky 7 tickets for sale
without a license, or with
a suspended license;
(2) Selling lucky 7 tickets or equipment to an
unlicensed individual or entity;
(3) Falsifying a lucky 7 license;
(4) Putting a ticket into play that has been altered
or tampered with;
(5) Operating a game in a
manner that tends to deceive the public or affect the chances of winning or
losing;
(6) Failing to maintain
records that adequately record, track, and reconcile all lucky 7 ticket sales
and voids, as required by Lot 7104.04(q);
(7) Failing to make available any records required by
the commission for investigation, monitoring or licensing purposes, as required
by Lot 7104.01(c);
(8) Furnishing or making
false or misleading statements or reports to the commission, or directing,
requiring or knowingly allowing another member or personnel of the organization
or entity to furnish or make false or misleading statements or report to the
commission;
(9) Failing to cooperate during any visit authorized
under RSA 287-E or this chapter;
(10) Failing to maintain a
separate checking account at a NH financial institute for bingo and lucky 7
activities, as required by Lot 7106.03(a)(1); or
(11) Committing 5 or more minor violations or 3 or more
moderate violations within 2 years.
(i) The commission shall impose a fine of no less
than $1,000, and no more than $5,000 per violation of each major violation
committed by any person, entity, applicant, or licensee:
(j)
In determining the actual amount of a fine, the commission shall
consider:
(1) The degree of non-compliance;
(2) Prior history of
violations of the same or similar nature;
(3) The consequences of the violation, including the economic
impact to the state and other affected parties;
(4) The nature and persistence of the violation;
(5) The extent of any remedial or corrective action
taken;
(6) The good or bad faith
exhibited by the cited individual(s);
(7) Evidence that the violation was willful;
(8) The extent to which the
individual cooperated with the board's investigation;
(9) The cost of any investigation or hearing conducted by
the commission;
(10) The licensee’s ability to pay a fine assessed by the
commission; and
(11) Any other mitigating or aggravating factors.
(k)
Except as otherwise noted, the penalties prescribed in (a)-(j) above
shall be imposed for each day that the person, entity, applicant, or
licensee is not in compliance, beginning with the date that the
notification described in Lot 7112.01(a) above is issued and continuing for
each day of non-compliance, or until the date of compliance.
(l)
Payment of any imposed administrative fine to the commission shall meet
the following requirements:
(1) If the recipient of a
notice described in Lot 7110.02(b) above waives or is deemed to have waived his
or her right to an adjudicative hearing, the respondent shall pay the fine by
the date specified in the notice, which shall not be less than 15 days from the
date of the notice of the proposed fine;
(2) If an adjudicative
hearing is conducted and the commission’s decision to assess a fine is upheld,
the fine shall be due and payable
within 10 calendar days of the date of the decision, or such longer time period as is specified in the decision;
(3) Payment shall be made
in the form of personal check or money order payable to “Treasurer, State of
New Hampshire,” or cash in the exact amount due;
(4) Any payment submitted
to the treasury department in the form of a check or money order and returned
to the state for any reason
shall be processed in accordance with RSA 6:11-a; and
(5)
Cash, money order, or certified check shall be required when any past
payment to the commission by personal check has been returned for insufficient
funds.
(m)
Nonpayment of a fine by a licensee or respondent in contravention of an
order, agreement, or promise to pay, shall be a separate ground for discipline
by the commission, a basis for denying a subsequent license or renewal
application, and a basis for judicial action seeking to collect the fine.
(n)
If a licensee or respondent fails to pay a fine in accordance with (l)
above, the fine shall be $100, plus an additional fine of $50.00 per day for
each day for which the commission does not receive payment in full.
(o)
If a licensee corrects and then subsequently repeats a violation for
which a fine was previously issued in accordance with (a)-(n) above, the fine
shall be doubled from that of the previous fine such that, for example, an
original fine of $100 shall become $200 for the first time the offense is
repeated, $300 for the second time the offense is repeated, $400 for the third
time the offense is repeated, and so on.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7112.03)
Lot 7110.04 License Revocation, Suspension, and
Refusal to Renew.
(a)
The commission shall revoke, suspend, or refuse to renew a license when,
based upon the facts of the case, imposition of an administrative fine would
not protect the public’s interests.
(b)
If a reason exists, as set forth in (c) below, to suspend, revoke, or
refuse to renew a license the commission shall notify the licensee in writing
of:
(1) The intended action;
(2) The reason(s) for the intended action;
(3) The licensee’s right to request an adjudicative hearing
to show compliance with all lawful requirements for the retention of the
license, and that such a request must be filed within 15 days of the date of
the notice; and
(4) In the case of a notice of suspension, notification that
if the deficiencies are not corrected within the specified time, the
license shall be deemed revoked.
(c) Except as allowed by (g) below, the
commission shall proceed to revoke, or refuse to renew a license if the commission determines that one
or more of the following reasons for revocation exist:
(1)
Failure to comply with
the conditions of the license or this chapter, such as a charitable organization’s failure to maintain federal tax-exempt
status, or manufacturer or distributor allowing the required bond to
lapse;
(2) Failure to take
corrective action following the suspension of a license;
(3) An inability or unwillingness to comply with RSA
287-E, as it applies to lucky 7, or this chapter, as demonstrated by a pattern
of violations;
(4)
Failure to comply with the requirements set for in
this chapter or any commission order to submit records, bank statements, or any
other paraphernalia associated with the sale of lucky 7 tickets;
(5)
Providing false information to the commission, including willfully and
knowingly making false statements or
makes false entries in any books or records with respect to any transaction
connected with the sale of lucky 7 tickets;
(6)
Failure to remit any
license fees or other amounts due to the state;
(7) Hindering or
obstructing an authorized representative of the commission in the performance
of official duties, such as refusing to access to the premises, or failing to
produce any books, records or documents for review;
(8) Failure to comply with the terms and conditions
of an administrative order issued by the commission;
(9) Failing to pay any administrative, civil, or
criminal penalties owed to the commission;
(10)
Any conduct by
the licensee that undermines the public confidence in charitable gaming or
serves the interest of organized gambling or crime and criminals in any manner;
(11) Manipulating the outcome of any game or otherwise
compromising the integrity of the game;
(12) Participating in illegal activities including
possessing illegal gambling equipment, or permitting illegal gambling in the
premises;
(13) Willfully and knowingly conducting business with
unauthorized entities;
(14)
Any material violation of RSA 287-E or this chapter; or
(15) Operating without a valid gaming license in any
state or commonwealth in the United States.
(d)
Upon the effective date of the revocation, the licensee shall
immediately cease holding itself out to the public as a licensee of the
commission, and cease engaging in any act for which licensing is required.
(e)
Failure to comply with (d) above shall constitute separate grounds for
further disciplinary action.
(f)
In accordance with RSA 287-E:25, any licensee whose license is revoked
shall be ineligible for licensure for a period of up to one year from the date
of revocation.
(g)
If a license has been revoked, the commission shall not issue a
subsequent license until:
(1) The passage of the amount of time specified in the
revocation order;
(2) The licensee submits an application in accordance with
this chapter;
(3) The licensee demonstrates that the cause for
revocation no longer exist; and
(4) The licensee demonstrates that any corrective
actions that were ordered by the commission have been fully implemented.
(h)
The commission shall proceed to suspend a license if the commission
determines that one or more reasons to revoke as license, as described in (c)
above, exist, but:
(1) The licensee did not
act with intent to deceive; and
(2) The deficiency(ies) can be
corrected to conform to applicable requirements.
(i) Upon the effective date of the suspension,
the licensee shall immediately cease engaging in any act for which a license is
required until the commission grants reinstatement pursuant to (l) below.
(j)
Failure to comply with (i) above, shall
constitute separate grounds for further disciplinary action.
(k)
The minimum period for suspension shall be that amount of time necessary
for the licensee to take corrective action ordered by the commission and return
to compliance.
(l)
The commission shall reinstate a suspended license when:
(1)
The licensee submits to the commission a written request for the license
to be reinstated with documentation demonstrating that all of
the corrective actions ordered by the commission have been taken; and
(2) The commission determines that all
corrective actions have, in fact, been taken and the licensee has returned to
compliance.
(m)
If the commission does not grant the request for reinstatement
it shall so notify the petitioner and provide the opportunity for a hearing.
(n)
A suspension shall have no effect upon the expiration of a license.
(o)
If, after receiving a request for renewal of a license, the commission
has information that indicates that a reason, as set forth in (c) above, exists
to refuse to renew the license, the commission shall inform the licensee of the
information and offer an opportunity for the licensee to respond to the
information prior to a decision being made on the application for renewal.
(p)
The commission shall not issue a license until such time as the
reason(s) for the refusal to renew have been corrected.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7112.04)
Lot 7110.05 Immediate License Suspension.
(a)
When the commission receives information indicating that a licensee has
engaged in supplying false or incomplete information or has engaged in
misconduct that poses an immediate danger to the public’s welfare, the
commission shall issue an order pursuant to RSA 541-A:30, III, that sets forth
the alleged misconduct and immediately suspends the license for up to 10
working days pending commencement of an adjudicatory proceeding. If
commenced within 10 working days, the suspension shall continue until there is
a decision in the proceeding.
(b)
Suspension orders under this section shall include the notice of hearing
pursuant to Lot 200.
(c)
No hearing date established in a proceeding conducted under this section
shall be postponed at the request of the licensee unless the licensee also
agrees to continue the suspension period pending issuance of the commission's
final decision.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7112.04)
Lot 7110.06 Appealing a Decision.
(a) Any person aggrieved by the
commission’s decision to deny, suspend, or revoke a license may appeal the
decision by submitting a request for an administrative hearing in accordance
with (b) below.
(b)
Within 15 days of the date on the notice issued pursuant to Lot
7110.02(b) above, the recipient of the notice shall submit a written response
to the commission that indicates that the recipient either:
(1) Waives their right to an adjudicative hearing;
or
(2) Requests an adjudicative hearing.
(c)
If the commission receives a written request for an adjudicative hearing
in accordance with (b) above, the commission shall proceed in accordance
with the provisions of RSA 541-A, and Lot 200 as they apply to
adjudicative proceedings.
(d)
If a recipient of a notice fails to submit a response in accordance with
(b) above, the recipient shall be deemed to have waived the right to an
adjudicative hearing, and the penalty shall be affirmed.
(e)
If any participant who receives notice of an adjudicative hearing fails
to appear at the hearing, the hearings officer shall hear the evidence and
testimony of the participant(s) attending the hearing and render an opinion
based thereon.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7112.05)
Lot 7110.07 Rehearings.
(a)
Except as provided in (b) below, within 30 days after any order or
decision has been made by the commission, any party to the action or proceeding
before the commission, or any person directly affected thereby, may apply for a
rehearing in respect to any matter determined in the action or proceeding, or
covered or included in the order.
(b)
Pursuant to RSA 287-E:26, any person aggrieved by a decision of the
commission to deny, suspend, or revoke a bingo license may apply to the
commission for a rehearing within 15 business days from the date of the
decision.
(c)
In accordance with RSA 541:4, such motion shall set forth fully every
ground upon which it is claimed that the decision or order complained of is
unlawful or unreasonable.
(d)
In accordance with RSA 541:5, upon the filing of such motion for
rehearing, the commission shall within 10 days either grant or deny the same,
or suspend the order or decision complained of pending further consideration,
and any order of suspension shall be upon such terms and conditions as the
commission shall prescribe.
(e)
Pursuant to RSA 541:3 and RSA 541:4, the commission shall grant a
rehearing when the party states good reason for such relief and demonstrates
that a decision is unlawful or unreasonable. Good reason may be shown by
identifying specific matters that were overlooked or mistakenly conceived by
the deciding tribunal, or by identifying new evidence that could not have been
presented in the underlying proceeding. A motion for rehearing that does not
meet these standards shall be denied.
(f)
In accordance with RSA 541:6, within 30 days after the motion for a
rehearing is denied, or, if the motion is granted, then within 30 days after
the decision of such hearing, the moving party may appeal by petition to the
supreme court.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7112.04)
Lot 7110.08 Subpoenas.
(a)
In accordance with RSA 287-E:26-a, the commission, shall, pursuant to
(b) below, issue subpoenas for witnesses and for documents relative to
investigations or adjudicatory hearings held by the commission.
(b)
The commission shall issue a subpoena for the attendance of witnesses or
the production of evidence upon a showing that:
(1) The testimony or evidence is necessary, relevant, and
non-repetitive; and
(2) The witness or evidence
cannot be voluntarily obtained.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7112.04)
PART Lot 7111 WAIVER OF
RULES
Lot 7111.01 Waiver of Rules.
(a)
Any party seeking a waiver of a specific requirement set forth in this
chapter shall submit a written request for a waiver to the commission that
includes:
(1) The specific reference to the rule for which a waiver
is being sought;
(2) A full explanation of:
a.
Why a waiver is necessary;
b.
The alternatives proposed by the requestor, if any; and
c.
Why the requestor believes that the waiver being requested meets the
criteria in (b) below; and
(3) The period of time for which the waiver is sought.
(b)
The commission shall grant the waiver if it determines that approval of
the waiver is not otherwise precluded by statute, and:
(1) The purpose of the rule would be satisfied by the
alternative method proposed;
(2) Compliance with the rule is rendered unnecessary by
new technology or innovative design; or
(3) Compliance with the rule would be unduly onerous or
inapplicable given the circumstances of the affected party.
(c)
The party’s subsequent compliance with the alternatives approved in the
waiver shall be considered equivalent to complying with the rule from which
waiver was sought.
(d)
Waivers shall not be transferable.
(e)
When a party wishes to renew the waiver beyond the approved period of
time, the licensee shall apply for a new waiver by submitting the information
required by (a) above.
(f)
The request to renew a waiver shall be subject to (b) through (e) above.
Source. (See Revision
Notes #1 and #2 at chapter heading for Lot 7100) #13068, eff 6-27-20; ss by
#13913, eff 3-22-24 (formerly Lot 7113.01)
APPENDIX A – INCORPORATION
BY REFERENCE
|
Rule |
Title |
Publisher;
How to Obtain; and Cost |
|
Lot 7108.02(c)(1)c. |
GLI-14 Finite Scratch Ticket and Pull-Tab Systems (version 2.2, 2011) |
The GLI-14 standard is available free of
charge and can be found on the Gaming Laboratory International (GLI) website
at: http://www.gaminglabs.com/downloads/GLI%20Standards/Bill%20E%202011/GLI-14%20v2.2%20Standard.pdf |
|
Lot 7108.02(c)(1)c. |
GLI-21 Client Server Systems (version 2.2, 2011), |
The GLI-21 standard is available free of
charge and can be found on the Gaming Laboratory International (GLI) website
at: http://www.gaminglabs.com/downloads/GLI%20Standards/Bill%20E%202011/GLI-21%20v2.2%20Standard.pdf |
APPENDIX B
|
Rule |
Specific State Statute the
Rule Implements |
|
|
|
|
Lot 7101 |
RSA 287-E:16 |
|
Lot 7102 |
RSA 287-E:16; RSA 287-E:18; Chapter 276:121 of the
Laws of 2015 |
|
Lot 7103 |
RSA 287-E:17; RSA 287-E:18,I, II and IV; RSA
287-E:20; RSA 287-E:23 |
|
Lot 7104 |
RSA 287-E:18, III, V and VI |
|
Lot 7105 |
RSA 287-E:18,V |
|
Lot 7106 |
RSA 287-E:18, III and V; RSA 287-E:23; RSA 287-E:24 |
|
Lot 7107 |
RSA 287-E:18,V; RSA 287-E:24 |
|
Lot 7108 |
RSA 287-E:18,V; RSA 287-E:23 |
|
Lot 7109 |
RSA 287-E:19; RSA 287-E:22, I, II and V; RSA
287-E:23-a |
|
Lot 7110 |
RSA 287-E:3,
IV, XV and XVI; RSA 287-E:25; RSA 287-E:25-a; RSA 287-E:26; and RSA
287-E:26-a |
|
Lot 7111 |
RSA 287-E:18, VI RSA 287-E:25, RSA 287-E:25-a; RSA
287-E:26; RSA 287-E:26-a |