N.Y. Comp. Codes R. & Regs. tit. 9 § 5322.5

Current through Register Vol. 46, No. 45, November 2, 2024

Section 5322.5 - Receipt of chips from manufacturer or distributor; inventory, security, storage, destruction

(a) When chips are received from the manufacturer or distributor thereof, they shall be opened and checked in accordance with the gaming facility's system of internal controls. Any deviation between the invoice accompanying the chips and the actual chips received or any defects found in such chips s shall be reported immediately to the commission.

(b) After checking the chips received, a gaming facility licensee shall cause to be recorded in a chip inventory ledger the assigned alphabetical designation (i.e., active or reserve), the denomination of the value chips received, the number of each denomination of value chip received and the number and description of all non-value chips received, the date of any such receipt and the signatures of the individuals who checked any such chips. If the chips will not be put into active use, the ledger also shall identify the storage location.

(c) Any chips not in active use shall be stored in a secured storage area approved by the commission adjacent to and accessible exclusively from the casino floor.

(d) Whenever any chips are taken from or returned to a secured storage area approved by the commission, at least two employees shall be present and the following information shall be recorded with the date and signatures of the employees involved:

(1) the assigned alphabetical designation as set forth in subdivision (b) of this section, and if applicable, any numeric designation;

(2) the number and dollar amount for each denomination of value chip removed or returned;

(3) the number and description of the non-value chips removed or returned;

(4) the specific storage area being entered; and

(5) the reason for the entry into the storage area.

(e) At the end of each gaming day, each gaming facility shall compute and record the unredeemed liability for each denomination of value chips by comparing the total chips purchased less chips destroyed or taken into income to the amount of chips on hand in the cages and in the table inventories. At least once every three months, at a minimum, each gaming facility shall inventory all sets of value chips in the possession of such gaming facility and shall record the result of such inventory in the chip inventory ledger. The unredeemed chip liability and value chip inventory shall be tracked electronically using a computerized system that details the total authorized amount of the chips by denomination as recorded by a cage supervisor or gaming facility supervisor, and the on-hand physical inventory of the chips controlled in the chip bank and on each gaming table. The unredeemed chip liability represents the difference between chips authorized and chips in inventory..

(f) If a gaming facility licensee elects to commingle chips as set forth in subdivision (e) of section 5322.3 of this Part, an employee of such gaming facility's accounting department shall, on a quarterly basis, inventory all chips of a particular sample and readjust the starting inventory for those chips that are no longer in the possession of such gaming facility. The adjusted inventory figure shall be recorded in the chip inventory ledger and shall be the new beginning inventory figure for the next quarter for purposes of computing the daily outstanding chip liability required by this section.

(g) Prior to the destruction of chips, a gaming facility shall notify the commission in writing of the date and the location at which the destruction will be performed, the denomination, number and amount of value chips to be destroyed, the description and number of non-value chips to be destroyed and a detailed explanation of the method of destruction. Unless otherwise authorized by the commission in writing, the destruction of chips shall be carried out in the presence of at least two employees of the gaming facility, one of whom shall be from the accounting department of the gaming facility and one of whom shall be from the security department. The denomination, number and amount of value chips, in the case of non-value chips, the description and number so destroyed shall be recorded in the chip inventory ledger together with the signatures of the individuals carrying out such destruction and the date on which such destruction took place. A gaming facility also shall maintain a written log of the names and titles of all personnel involved in each such destruction.

(h) A gaming facility shall ensure that at all times there is adequate security, as approved by the commission in writing, for all chips in its possession.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 5322.5

Adopted New York State Register September 21, 2016/Volume XXXVIII, Issue 38, eff. 9/21/2016