Administrative Rules of the State of Montana

BEFORE THE DEPARTMENT OF JUSTICE

OF THE STATE OF MONTANA

In the matter of the adoption of NEW RULE I concerning large-stakes card game tournaments, NEW RULE II concerning small-stakes card game tournaments, and amendment of ARM 23.16.102, 23.16.103, 23.16.107, 23.16.110, 23.16.401, 23.16.407, 23.16.502, 23.16.1101, 23.16.1201, 23.16.1216, 23.16.1224, 23.16.1225, 23.16.1232, 23.16.1237, 23.16.1240, 23.16.1701, 23.16.1702, 23.16.1703, 23.16.1704, 23.16.1705, 23.16.1712, 23.16.1713, 23.16.1714, 23.16.1716, 23.16.1719, 23.16.1826, 23.16.1826A, 23.16.1906, 23.16.1913, 23.16.1914, 23.16.1915, 23.16.1916, 23.16.1916A, 23.16.1918, 23.16.1929, 23.16.2001, and 23.16.3103 concerning grounds for denial of gambling license, permit or authorization; confiscation of temporary dealer license; card game tournament rules; how to acquire the official Montana poker rule book; player restrictions; dealer restrictions; house players; operation of the games – table stakes; betting; posting of rules and pot limits; definitions; sports pool cards; maximum price of sports pool chances; determination of sports pool winners – prizes; authorized sports pool prize value; sports tab game conduct; maximum price of sports tab; sports tab game prize value; sports tab game seller record keeping requirements – decal inventories; quarterly reporting requirements; reporting frequency for approved Tier I automated accounting systems; general software specifications for video gambling machines; testing fees; repairing machines – approval; casino night prizes; and web site address access to forms

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NOTICE OF ADOPTION AND AMENDMENT

TO: All Concerned Persons

1. On July 25, 2013, the Department of Justice published MAR Notice No. 23-16-232 regarding the public hearing on the proposed adoption and amendment of the above-stated rules at page 1302, 2013 Montana Administrative Register, Issue Number 14.

2. The Department of Justice has adopted Rule I (23.16.1102) and Rule II (23.16.1103) and amended ARM 23.16.102, 23.16.103, 23.16.107, 23.16.110, 23.16.401, 23.16.407, 23.16.502, 23.16.1101, 23.16.1201, 23.16.1216, 23.16.1224, 23.16.1225, 23.16.1232, 23.16.1237, 23.16.1240, 23.16.1701, 23.16.1703, 23.16.1705, 23.16.1712, 23.16.1713, 23.16.1714, 23.16.1716, 23.16.1719, 23.16.1826, 23.16.1826A, 23.16.1906, 23.16.1913, 23.16.1914, 23.16.1915, 23.16.1916, 23.16.1916A, 23.16.1918, 23.16.1929, 23.16.2001 and 23.16.3103 as proposed.

3. The department amends the remaining rules with the following changes, stricken matter interlined, new matter underlined:

23.16.1702 SPORTS POOL CARD (1) through (5) remain as proposed.

(6) A sports pool card must be retained by the person conducting the sports pool for at least ~~one year~~ 90 days from the date of the sports event, or last event in a series of sports events, whichever occurs first, upon which the sports pool was based.

23.16.1704 DETERMINATION OF SPORTS POOL WINNERS - PRIZES

(1) and (2) remain as proposed.

(a) Where the prize awarded is merchandise, the purchase price paid for the item(s) of the merchandise prize is considered to be the value of the prize. Proof of the purchase price of the item(s) of the merchandise prize shall be retained for a period of at least ~~one year~~ 90 days from the date of the sports event.

(b) through (4) remain as proposed.

4. A public hearing was held on August 15, 2013. Oral comments were received from Ronda Wiggers, Montana Coin Machine Operators Association (MCMOA), who spoke in support of the proposed rules with the exception of the proposed change to ARM 23.16.1702(6). Ms. Wiggers stated that she and the MCMOA oppose any change to the length of time for sports pool board retention. Written comments were received from Neil Peterson, Gaming Industry Association of Montana (GIA) which also supported the proposed rules with the exception of the proposed change to ARM 23.16.1702(6). Additionally, during the Gaming Advisory Council meeting on June 28, 2013, the council recommended preserving the 30-day retention period for sports pool boards.

The department has considered the suggestions to maintain the current retention period for sports pool boards. However, because the department often finds violations of the sports pool laws, and because the legislature's increases in bet and payout limits will likely increase the popularity and number of locations offering sports pool boards, the department will need more than 30 days to investigate violations. However, in consideration of the Gaming Advisory Council's recommendation, the department will decrease the required record retention period to 90 days for all records related to sports pool boards, including records required in ARM 23.16.1704(2)(a) to establish the value of merchandise awarded as prizes, as this may be enough time to address complaints, conduct necessary inspections, and resolve problems. The department may revise the rule to increase the record retention periods if future cases indicate a longer retention period is needed.

5. Amendment to ARM 23.16.102, 23.16.103, 23.16.107, 23.16.110, 23.16.401, 23.16.407, 23.16.502, 23.16.1216, 23.16.1224, 23.16.1225, 23.16.1232, 23.16.1237, 23.16.1701, 23.16.1702, 23.16.1712, 23.16.1716, 23.16.1719, 23.16.1826, 23.16.1826A, 23.16.1906, 23.16.1913, 23.16.1914, 23.16.1915, 23.16.1916, 23.16.1916A, 23.16.1918, 23.16.1929, 23.16.2001, and 23.16.3103 will be effective September 6, 2013. New Rule I (23.16.1102), New Rule II (23.16.1103) and amendments to 23.16.1101, 23.16.1201, 23.16.1240, 23.16.1703, 23.16.1704, 23.16.1705, 23.16.1713, and 23.16.1714, will become effective on October 1, 2013.

By: /s/ Tim Fox /s/ Matthew T. Cochenour

TIM FOX MATTHEW T. COCHENOUR

Attorney General Rule Reviewer

Department of Justice

Certified to the Secretary of State August 26, 2013.