N.M. Admin. Code § 15.1.24.19

Current through Register Vol. 35, No. 23, December 10, 2024

Section 15.1.24.19 - GENERAL REQUIREMENTS; JACKPOT VERIFICATION; ACCOUNTING; RECORDKEEPING

A. Jackpot verification procedures shall include the following: When a jackpot is won, the person operating or controlling, the progressive system shall have the opportunity to inspect the machine, gaming media, the error events received by the progressive central system, and any other data which could reasonably be used to ascertain the validity of the jackpot. The progressive central system shall produce reports that will clearly demonstrate the method of arriving at the payoff amount. This shall include the coins contributed beginning at the polling cycle immediately following the previous jackpot and shall include all coins contributed up to, and including, the polling cycle, which includes the jackpot signal. Coins contributed to the system after the jackpot occurs in real-time, but during the same polling cycle shall be deemed to have been contributed to the progressive amount prior to the jackpot. Coins contributed to the system before the jackpot message is received shall be deemed to have been contributed to the progressive amount prior to the current jackpot. Coins contributed to the system subsequent to the jackpot message being received shall be deemed to have been contributed to the progressive amount of the next jackpot. The jackpot may be paid in installments as long as each machine clearly displays the fact that the jackpot will be paid in installments. In addition, the number of installments and time between installments must be clearly displayed on the face of the machine in a non-misleading manner. Two jackpots that occur in the same polling cycle shall be deemed to have occurred simultaneously; and therefore, each "winner" shall receive the full amount shown on the meter.

B. Any person authorized to control or operate a progressive system, shall supply reports to the board or its designee(s) which support and verify the economic activity on the system. Any person authorized to control or operate a multi-link system, shall supply, as requested, reports and information to the board or its designee(s) indicating the amount of, and basis for, the current jackpot amount. Such reports may include an "aggregate report" and a "detail report". The "aggregate report" may show only the balancing of the system with regard to system-wide totals. The "detail report" shall be in such form as to indicate for each machine, summarized by location, the coin-in and coin-out totals as such terms are commonly understood in the industry. In addition, upon the invoicing of any licensee participating in a multi-link system, each such licensee shall be given a printout of each machine owned by the licensee, the coins contributed by each machine to the jackpot for the period for which an invoice is remitted, and any other information required by the board to confirm the validity of the licensee's contributions to the jackpot amount.

C. In calculating net win for purposes of calculating gaming tax, a licensee shall deduct its contribution to any progressive jackpot pool during the preceding month. This amount shall be listed on the detailed accounting records provided by the entity authorized to control or operate the progressive system.

D. The entity authorized to operate or control a progressive system shall maintain a copy of all lease and contractual agreements with licensees and supply a copy to the board upon request.

E. The entity authorized to control or operate a progressive system, shall hold a valid gaming operator license issued by the board and shall obtain approval from the board as to the methods of funding the progressive prize pool and calculating and receiving payments from participating retailers for operating and managing the multi-link system.

F. A gaming operator licensee shall transfer all contributions to the progressive jackpot fund no later than the 28th day of the following month to a non-interest bearing bank account or to the administrator of the progressive jackpot fund.

G. The progressive system prize fund (the amount of money contributed by the participating licensees) shall be audited, in accordance with generally accepted auditing standards, on the multi-link system operator's year-end basis, by an independent certified public accountant approved by the board. Two copies of this report shall be submitted to the board within 90 days after the end of the multi-link system operator's business year-end.

N.M. Admin. Code § 15.1.24.19

15.1.24.19 NMAC - N, 5/15/07