STATE OF NEVADA

GAMING CONTROL BOARD

1150 E. William St., P.O. Box 8003, Carson City, Nevada 89702
555 E. Washington Ave., Suite 2600, Las Vegas, Nevada 89101
3650 S, Pointe Cir., P.O. Box 31109, Laughlin, Nevada 89028
557 W. Silver St., Suite 207, Elko, Nevada 89801
495 Apple St.. Reno, Nevada 89502

BOB MILLER
Governor

WILLIAM A. BIBLE, Chairman
STEVE DUCHARME, Member
BRIAN HARRIS. Member

March 16, 1998 Carson City
(702) 687-6525

TO: ALL NONRESTRICTED LICENSEES AND INTERESTED PERSONS

SUBJECT: PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22

On October 29, 1997 the Gaming Control Board issued proposed amendments to Regulations 3, 5 and 22. Written comments were solicited from licensees at that time and industry meetings were subsequently held on November 19 and December 11, 1997. The Board considered all comments received, and has produced a revised version of the proposed changes dated March 11, 1998. A summary of the significant revisions from the original draft are as follows:

1. All book employees that establish point spreads, betting odds or betting lines, or authorize voids or over limit wagers must still be listed on the key employee report. However, these employees will not be required to file a key employee application. Instead, book employees who meet specific criteria must register with the Board (see Regulation 22.035).

2. The revisions now only limit the prohibition against discounting wagers and issuing refunds/rebates to the race and sports book (both pari-mutuel and nonpari-mutuel wagers) rather than the entire casino (Regulation 22.125). This section also allows the book to offer wagering propositions and to move or change odds and lines, unless such changes are to circumvent the prohibition against paying refunds/rebates. However, it is still necessary to post all propositions (Regulation 5.012(3)].

3. Race and sports employees are prohibited from wagering at the race and sports book at which they are employed (Regulation 5.013). Other casino employees except key employees may place wagers in the book. On a related note, the proposed prohibition against granting gaming credit to gaming employees has been limited to key employees [Regulation 5.013(4)].

4. Defined "Internet" [Regulation 22.010(5)] and prohibited a casino's use of the internet as a means of receiving wagers (Regulation 22.010(4)].

5. Defined "messenger bettor" (Regulation 22.010(7)].

6. Revised the book reserve requirements to now include all patron accounts, all unpaid winners and all future wagers [Regulation 22.040(l)). Added a requirement . that the reserve agreement must include a clause which states that the reserve will be available within 7 days of the Chairman's demand. Added a requirement that the Chairman must be notified in writing within 24 hours should a reserve become-deficient (Regulation 22.040(8)]. The Chairman must also be advised of what steps are being taken to bring the reserve into compliance. If the steps are not satisfactory, the Chairman may order the cessation of wagering.

7. The Board received many comments with regard to the "messenger betting" provisions contained in the October 15, 1997 draft of Regulation 22. That draft would have required licensees to report to the Board all race/sports wagers in excess of $3,000.

As was suggested by numerous licensees during the two previous industry meetings and in subsequent written comments in the revised draft the Board is proposing that licensees now report to the Board any patrons that conform to the profile of a suspected messenger bettor. However, if the Chairman has reason to believe that a licensee is not reporting suspected messenger bettors, the Chairman may direct the licensee to report to the Board all race/sports wagers in excess of $3,000. A licensee directed to report all wagering activity in excess of $3,000 may, within 15 days, appeal the Chairman's decision to the full Board and Commission. Finally, a "structuring" provision has been added which applies to those books required to report all wagers in excess of $3,000.

The proposed definition of "messenger bettor profile" is set forth in Regulation 22.010(8) and the related reporting requirements are contained in Regulation 22.065.

B. Payment of winning wagers may be made at an affiliated licensee provided that a proper accounting of the payment is made [Regulation 22.080(2)].

9. A person may possess a communications device (a new term referring to pagers, cellular phones, etc.) in a book provided they do not use the device within the book's premises. A person using a communications device on the book's premises must immediately discontinue use of the device or be escorted off the book's premises (Regulation 22.135).

10. Annually, books must receive written permission to utilize their "approved' system for accepting wagering communications [Regulation 22.140(2)].

The foregoing is a summary of the major changes to the October ISP 1997 draft. You are encouraged to compare both drafts of-the proposed changes.

The Board again believes the process of amending these regulations would benefit by holding a final meeting with industry representatives. Therefore, an industry meeting will be held at the Board offices in Las Vegas on April 14, 1998 at 10:00 A.M. to discuss the proposed amendments. Subsequently f final written comments may be submitted to the Board no later than April 27, 1998 to:

State Gaming Control Board
Audit Division
555 East Washington Avenue, Suite 2600
Las Vegas, Nevada 89101

Please call the Board's Audit Division at (702) 486-2060 if you have any questions.

Sincerely,

William A. Bible
Chairman

WAB/TT: Ima

AUD/7239

Attachment

cc: C. Brian Harris, Member Steve DuCharma,, Member Central Files

S'TATE OF NEVADA

GAMING CONTROL BOARD

1150 E. William St., P.O. Box 8003, Carson City, Nevada 89702
555 E. Washington Ave., Suite 26W, Las Vegas, Nevada 89101
3650 S. Point Cir., P.O. Box 31109, Laughlin, Nevada 89028
BOB MILLER 557 W. Silver St., Suite 207, Elko, Nevada 89801
Governor 495 Apple St., Reno. Nevada 89502

WILLIAM A. BIBLE. Chairman
STEVE DUCHARME. Member
C. BRIAN HARRIS. Member

PROPOSED AMENDMENTS TO
REGULATIONS 3, 5 AND 22
FOR RACE BOOKS AND
SPORTS POOLS

DRAFT: 03/11/98

PROPOSED AMENDMENTS TO REGULATION 3

PURPOSE OF AMENDMENT: To designate line setters, oddsmakers and race book or sports pool employees who may approve the voiding of tickets or the acceptance of over limit wagers as key employees.

LICENSING: OUALIFICATIONS
(Draft: 03/11/98)

3.100 Employee report.
1. On or before January 15 and July 15 of each year, each nonrestricted licensee, including each operator of a slot machine route, and each pari-mutuel systems operator shall submit an employee report to the board. The report shall identify every individual who is, or who has been since the filing of the previous report, actively engaged in the administration or supervision of the operation as follows:
(a) No change.

(b) No change.

(d) No change.

(e) No change.

(f) No change.

(g) Any individual who has the authority to set betting lines,
Point spreads or ; who has the authority to authorize the voiding of betting tickets; or who has the-authority to approve wagers larger than the posted limits established for the book.
(h [g].) No change.
(i [h].) No change.
(j [I].) No change.
(k [j].) No change.

PROPOSED AMENDMENTS TO REGULATION 5.012

PURPOSE OF AMENDMENT: To require the posting of all race book and sports pool propositions.

OPERATION OF GAMING ESTABLISEMEMTS
(Draft 03/11/98)

5.012 Publication of payoffs.

1. No change.

2. No change.
3. A race book or sports pool may not accept wagers on a race
or sitting event unless the Proposition is posted in accordance
with subsections 3. and 2 of this regulation.. This does not
preclude the acceptance of wagers at other than the posted odds.

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 3

PROPOSED AMENDMENTS TO REGULATION 5.013

PURPOSE OF AMENDMENT: To prohibit employees of race books or sports pools from placing a wager at the race book or sports pool at which they are employed. To prohibit the issuance of gaming credit by a licensee to its gaming employees.

OPERATION OF GAKING ESTABLISHMENTS
(Draft: 03/11/98)

5.013 Gaming by, and issuance of gaming credit to, owners, directors, officers, and [key] employees.
1. Except as provided in subsection 2, no officer, director, owner or key employee of an entity which holds a gaming license in this state, or of an affiliate or an affiliated company of an entity which holds a gaming license in this state, shall play or place a wager at any gambling game, slot machine, race book or sports pool which is exposed to the public for play or wagering:
(a) By that gaming licensee; or

(b) By an affiliate or an affiliated company of that gaming

licensee.

2. Subsection 1 [This regulation] shall not apply to the playing of or wagering on poker, panguingui or off-track pari-mutuel wagering.
3. No race--book or sports pool employee shall place a wager with the book at which they are employed whether on their behalf, on behalf of the race book or sports pool, or on behalf of another person.
4. Licensees shall not issue credit for purposes of gaming to key employees of that licensee whether or not such credit is

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 4
evidenced by a player card, wagering account or a credit instrument.
[315. For purposes of this section, "affiliate" shall have the same meaning as defined in Regulation 15.482-3 and "affiliated company" shall have the same meaning as defined in NRS 463.4825. "Affiliated company" specifically includes a publicly traded corporation registered with the Commission.

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22

Page 5

PROPOSED AMENDMENTS TO REGULATION 22

PURPOSE OF AMENDMENTS: To reflect that all books/pools must be computerized and to eliminate the duplication between this regulation and the Regulation 6.090 Minimum Internal Control Standards for Computerized Race and Sports Books. To revise the race and sports reserve requirements. To define "outstations" and "satellite books”, and to define "Post time" as it relates to harness racing. To clarify that books may receive racing results from affiliated licensees. To allow for intrastate wire communications wagering by means other than telephone. To -increase preventive measures regarding illegal messenger betting, dissemination of wagering data, and the acceptance of wagers initiated outside the State of Nevada. To reflect advances in communications technology. To prohibit the use of communication devices within a race book or sports pool. To require certain individuals to register with the board. To preclude the acceptance of a wager at less than full face value. To define messenger bettor. To define internet and to prohibit its use in accepting wagers. To allow payment of a winning wager at affiliated licensees.

RACE BOOKS AND SPORTS POOLS
(Draft: 03/11/98)

22.010 Definitions. As used in this regulation:
1. "Book" means a race book or sports pool licensed and approved pursuant to chapter 463 of NRS and [of] this regulation.
2. "Central site book" means a book which, for the purpose of wagering communications, may allow other licensed books to establish wagering or credit accounts, accept deposits on accounts and return funds or close-out accounts for the central Site.,,, Such other licensed books:
(a) Must be outstation or satellite books of the central site, as defined in this regulation, or must be affiliates of the

PROPOSED AMENDMENTS TO REGULATIONS 31 5 AND 22
Page 6

Central site, as defined in NRS 463.430(311b); and

(b) Must have on-line. real-time access to the appropriate functions of the central site’s computerized bookmaking system.

3. "Chairman" means the chairman of the state gaming control board or his designee.
4. “Communications medium” means any system of components which facilitates the transmission of information including, but not limited to transmission and reception systems based on wire, cable, radio, microwave, light, optics, or computer data networks. The term does not include the Internet.
5. “Internet means the international computer network of both Federal and non-Federal interoperable-packet switched data networks.
6[3]. "Key employee" means an employee in any of the classes described in subsection 1 of Nevada gaming commission Regulation 3.100, other than an employee meeting only the description in paragraph [e] [(f)] of that subsection.
7. “Messenger bettor” means a person who places a race book or sports pool wager for the benefit of another for compensation.
8 “Messenger bettor Profile” is a set of characteristics which are common to suspected messenger bettors. A messenger bettor may be profiled as a person who-.
(a) Often possesses some type of electronic-communications device such as a Cellular Phone. digital pager or two way radio, or may utilize public telephones near the book;

(b) Is often seen utilizing the electronic devices described in

(a), above, immediately after the posting of the opening lines,

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 7
immediately after significant line changes, or immediately before or after placing wagers;
(c) Often spends nearly all day, every day in the same book;
(d) Makes frequent wagers, often to maximum limits, and will repeat the process several times during the day often betting on the same teams) repeatedly:
(e) Appears to structure wagers with a combination of chips and cash to avoid having to provide currency transaction report information.-

(f) Is not a guest of the hotel,

(g) Often has a safe deposit box in the casino and accesses it daily;

(h) Has large amounts of cash and chips on their person daily;
or
(i) Often carries notebook, notepad or other writing material and makes records of line chances and wagers made.
9. “Outstation book means a book, other than a satellite book, that shares the computerized bookmaking system and certain management and administrative functions of a book operated by an affiliated licensee, as defined in NRS 463.430(3)(b).
10[6). "Post time" means, unless an earlier time is required by regulation in the state where the race is run:
(a) For users of live broadcasts and for buyers of audible announcements of post time from disseminators of live broadcasts, the [earlier] later of either the time when the disseminator transmits an audible announcement of the post time, or when, as applicable, the [first] last entrant enters the gate
AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 8

or the starting gate car begins to move.
(b) For races broadcast live on a national television network for which an agreement has been reached with a disseminator to provide an audible announcement of post time, that time when the disseminator relying upon information obtained independently of the television broadcast, transmits an audible announcement of post time which must be no later than when, as applicable, the [first] last entrant enters the gate or the starting gate car begins to move.
(c) Except as provided in [subsection] paragraph (b) of subsection 10, for races provided by means other than a live broadcast and for races broadcast live on a national television network for which no agreement has been made with a disseminator to provide an audible announcement of post time, not later than 2 minutes before the scheduled post time as announced by the disseminator.
11[4]. "Race book" means a business that accepts wagers on horse or other races.
12. “Satellite book” means a book that has been licensed pursuant to the provisions of NRS 463.245(3).
13[5]. "Sports pool" means a business that accepts wagers on sporting events or other events, other than horse or other races. The term includes, but is not limited to, a business that accepts sports parlay card wagers as defined in Regulation 22.090.
14. “Wagering communication” means the transmission of a wager between a point of origin and a point of reception by aid of a

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 9

communications medium.

22.020 License required; applications.

1. No change.

2. No change.

3. No change.
22.030 Book key employees. Repealed-XX/98 [Each book shall designate one or more employees with full, supervisory authority and responsibility for the operations of the book. At least one such employee shall be on the premises of the book whenever wagering is conducted. Each book shall maintain a record of the name of each employee so designated.]
22.035 Be Registration of employees.

1. Any individual who fulfills the function of race book or sports pool manager, race book or sports pool

supervisor, or who determines race book or sports pool betting odds, point spreads or betting lines must

include the individuals:

(a) Full legal name and any aliases, nicknames, maiden name and other change, legal or otherwise;

(b) Social security number and current driver's license number;

(d) History of residence--for the past five years;

(e) History of employment for the past ten years;

(e) Complete history of arrests, detentions, or litigations including any which have been sealed or expunged by-court order;

(g) Consent to a full licensing investigation, subject to the

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 10

Provisions of subsection 3,_by the board and commission; and

(h) Such other information as required by the chairman
2. Licensed key employees or key employees in applicant status are not required to register pursuant to the section. Individuals required to register at the time this section is adopted shall have 60 days to file such forms. All other individuals must file within-30 days of assuming such duties.
3. Individuals who object to the activation of a license application and commencement of a full licensing investigation by the board may appeal the administrative decision to the full board and commission in a manner similar to that outlined in Regulations 4.185 through 4.195.
4. The requirements of this section do not apply to satellite books.
22.040 Reserve requirements.

1. Unless the chairman for good cause permits or requires a different amount, each book shall at all times

maintain a reserve of not less than the greater of $25,000 or the sum of the following amounts:

(a) Amounts held by the book for the account of patrons;

(b) Amounts accepted by the book as wagers on contingencies whose outcomes have not been

determined [and will not be determined within 30 days after the wagers have been accepted]; and
(c) Amounts owed but unpaid by the book on winning wagers through the period established by the book for honoring winning wagers.

PRUPUSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 11
2. Before beginning operations, each newly-licensed book must establish a reserve of at least the greater of $25,000 or the amount the chairman projects will at least equal the sum of the amounts specified in paragraphs (a), (b) and (c) of subsection 1 at the end of the first week of the book's operation. After the book begins operations, the book's reserve must comply with subsection 1.
3. The reserve described in subsections 1 and 2 must be maintained in the form of cash, cash equivalent, an irrevocable letter of credit, a bond, or a combination thereof. Except as otherwise provided in subsection 4, t[T]he reserve must be unencumbered and must not be commingled with funds of the book or any of it owners, employees, affiliates, or other persons or entities associated with the book.
4. The reserve described in subsections I and 2 may be combined as a single amount for a book and its satellite books.
5[4]. If a reserve is maintained in the form of cash, [or] cash equivalent, or an irrevocable letter of credit, it must be held or issued, as applicable, by a federally-insured financial institution. If the reserve is maintained in the form of a bond, it must be written by a bona fida insurance carrier. The reserve must be established pursuant to a written agreement between the book and the financial institution or insurance carrier, but the book may engage an intermediary company or agent acceptable to the chairman to deal with the institution or carrier, in which event the reserve may be established pursuant to written

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 12
agreements between the book and the intermediary and between the intermediary and the financial institution or insurance carrier. 6[51. The agreements described in subsection 5[41 must reasonably protect the reserve against claims of the book's creditors other than the patrons for whose benefit and protection the reserve is established, and must provide that:
(a) The reserve is established and held in trust for the benefit and protection of patrons to the extent the book holds money for their account, has accepted wagers from them on contingencies whose outcomes have not been determined, or owes them on winning wagers;
(b) The reserve must not be released, in whole or in part, except to the board on the written demand of the chairman or to the book on the written instruction of the chairman[,] The reserve must be available within 7 days of the written demand or notice. [but t]The book may receive income accruing on the reserve unless the chairman instructs otherwise pursuant to subsection 9 or 13[7 or 8];
(c) The book has no interest in or title to the reserve or income accruing on the reserve except to the extent expressly allowed in this section;
(d) Nevada law and this section govern the agreements and the book's interest in the reserve and income accruing on the reserve;
(e) The agreements are not effective until the chairman's approval has been obtained pursuant to subsection 7[6]; and
(f) The agreements may be amended only with the prior, written

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 13
approval of the chairman.
7[6]. Each book shall submit to the chairman all information and copies of all documents relating to its proposed reserve arrangement, including copies of the agreements described in subsection 5 and 6[4 and 5], and must obtain the chairman's approval of the agreements and of the reserve arrangement generally. The chairman shall determine whether the agreements and arrangement satisfy the purposes and requirements of this section, may require appropriate changes or withhold approval if they do not, and shall notify the book of his determination. Amendments to reserve agreements or arrangements must be approved in the same manner.
8. A book must calculate its reserve requirement each day. In the event a book determines that its reserve is not sufficient to cover the calculated requirement, the book must, within one business day, notify the chairman of this fact in writing and must also indicate the steps the book has taken to remedy the deficiency.

9[7]. Each book must engage an independent certified public accountant to examine the pertinent records relating to the reserve each month and determine the reserve amounts required by this section for each day of the previous month and the reserve amounts actually maintained by the book on the corresponding days. The book shall make available to the accountant whatever records are necessary to make this determination. The accountant shall report the findings with respect to each day of the month under review in writing to the board and the book no

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 14
later than the tenth day of the next month. The report shall include the licensee's statement addressing each day of noncompliance and the corrective measures taken.
10. The report described in subsection 9 may be prepared by an employee of the licensee that is independent of the book if written approval has been received from the chairman. The report must contain the signature of an "employee attesting to the accuracy of the submitted information.
11. If the chairman is notified pursuant to subsection 8, or the [accountant] report[s] described in subsection 9 indicates that [as of the final day of] at any time during the month under review the amount of the reserve did not meet the requirements of this section, the chairman may instruct the [financial institution, insurance carrier or intermediary not to pay the] book [any income accruing on the reserve until the chairman instructs otherwise in writing, and the book shall, not later than the fifteenth day of the month,] to either increase the reserve accordingly or cease accepting wagers and money for the account of patrons until such time as the reserve meets the requirements of this section and is confirmed [the accountant so] [reports) to the chairman's satisfaction. [If the book increases the reserve and satisfies the requirements of this section, and the accountant so reports, the chairman shall instruct the financial institution insurance carrier, or intermediary to resume paying income from the reserve to the book and to release to the book any income accumulated since the previous instructions took effect.]

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 15

12. If the [accountant] reports] indicates that the amount of the reserve exceeds the requirements of this section, the chairman shall, at the book's request, instruct the financial institution, insurance carrier, or intermediary to remit the excess to the book or, in the case of a bond, to reduce the bond , accordingly.
13[8]. When a book ceases operating and its license lapses or is surrendered or revoked, the chairman may [shall] demand payment of the reserve, any income accruing on the reserve after operations cease, and, if instructions from the chairman that income accruing on the reserve not be paid to the book are in effect when operations cease, any income accruing since the instructions took effect. The board M [shall] interplead the funds in state district court for distribution to the patrons for whose protection and benefit the reserve was established and to such other persons as the court determines are entitled thereto, or shall take such other steps as are necessary to effect the proper distribution of the funds, or shall do both.
1-4[9]. No change.

22-050 Issuance and control of betting tickets.

1. Immediately upon accepting a wager, the book shall create a betting ticket on which the terms of the wager are written.
2. [The book shall create at least 2 copies of each betting ticket simultaneously with the creation of the original. The copies and the original must each be a different color.] Betting tickets [must be prepared in continuous, connected form, and each] must bear the name and address of the book. [Betting

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 16
tickets must bear preprinted numbers in numerical series, with a distinct, alphabetical or numerical prefix for each betting station at which wagers are accepted. Each set of tickets must be supported by a printer's invoice shoving the beginning and ending ticket numbers, and the book shall store the invoices at its licensed location for inspection by the board.
3. Each betting ticket must be written and issued through a locked device that retains a copy (referred to as the “locked-device copy") of the betting ticket physically connected to the other locked-device copies in the sequential series. only the book's key employees, accounting department personnel, internal and external auditors, and security personnel shall have access to locked-device copies or to the power source or mechanism of the locked device. The book may from time to time remove copies from the locked device, but the book shall keep the copies unbroken and in physical sequence and shall store then at its licensed location.
3. Whenever a betting station is opened for wagering, the betting ticket writer shall sign, date- and time-stamp, and write a open' or a similar notation on the unused ticket that is first in sequence at the station and, whenever the station closes or the writer is replaced, the writer shall sign, date- and time-stamp, and write "close” or a similar notation on the unused ticket next in sequence after the last ticket written. Whenever a betting station is turned over to another writer, the new writer shall sign and date- and time-stamp the unused ticket that is first in sequence at the station. Betting tickets so signed

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 17
and date- and time-stamped must be stored by the book at its licensed location.
5. If necessary, betting tickets designated for a specific betting station may be used temporarily at another betting station, if the change is immediately noted in writing on the first and final tickets so used.
6. After the outcome of an event has been determined, a book shall not void a betting ticket written on that event. If a book voids a betting ticket, the word 'void' must immediately be written, and the date and time at which the ticket is voided must immediately be stamped, on the original and on each copy of the betting ticket accessible to the person who voids the ticket, and the person who voids the ticket and a key employee of the book other than the person who voids the ticket shall sign the voided ticket. The book shall store the original and each copy of all voided tickets at its licensed location.
6. All date, time, numerical sequence stamping machines used by a book must be directly and permanently wired to the electrical supply system or wired in such other manner as the chairman may approve in advance. Only maintenance or engineering employees of the book shall have access to fuses or fuse-like devices used in connection with the machines. At such intervals as the chairman may direct, but no less frequently than once during each 8 hours of operation, each book shall examine and, if necessary, adjust the machines to ensure that the clocks accurately keep time to the nearest minute, and shall document any discrepancies discovered and adjustments made.]

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 18
22.060 Acceptance of wagers.
1. [Immediately upon accepting a wager and creating a betting ticket, the book shall:
(a) Date- and time-stamp the original or a copy of the betting ticket to be given to the patron (referred to as the 'patron's copy') and the original or a copy, other than the locked-device copy, to be retained by the book (referred to as the "book's copy a) ;
(b) Give the patron’s copy to the patron or, in the case of a telephone wager, hold the patron's copy for the patron; and
(c) Store the book's copy at the licensed location.
2. On the original and each copy of each betting ticket representing a telephone wager, a wager accepted on credit, a wager accepted against front money or a wager placed by another book, the ticket writer shall note in writing that the betting ticket represents a telephone wager, a wager accepted on credit, a wager accepted against front money, or a wager placed by another book, as the case may be, and shall note in writing the name or personal identification number of the bettor.
3. Immediately upon accepting a wager for which the book may be required to pay more than $10,000 in net winnings to the bettor, the ticket writer shall write the ticket number, the terms and amount of the wager, and the writer's initials on a log kept specially for that purpose.
4.1 Books may not accept wagers unless made with cash, chips, tokens, or other representatives of value approved by the board, or against front money deposited or on credit extended in

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 19

accordance with the provisions of chapter 463 of NRS and the regulations of the Nevada gaming commission.
2[51. A book shall accept wagers only on its licensed premises, and only at betting stations approved by the chairman.
3[6]. A book shall not knowingly accept money or its equivalent ostensibly as a wager upon an event whose outcome has already been determined. A licensed sports pool shall not accept a wager on an event unless the date and time at which the outcome of the event is determined can be confirmed from reliable sources satisfactory to the chairman or from records created and maintained by the book in such manner as the chairman may approve.

[7. A licensed sports pool shall not accept a wager on a game, match, or similar sports event

after the start of the event unless win progress or a similar notation is written on the original

and each copy of the betting ticket and unless the key employee other than the ticket writer

initials the original and each copy of the ticket.]
4[8]. Licensed sports pools may accept wagers, including parlay card wagers, as to which of the participating contestants will win specified sports events and as to whether the total points scored in a specified game, match, or similar sports event will be higher or lower than a number specified for that event. Licensed sports pools shall not accept wagers, including parlay card wagers, on other contingencies unless their outcomes are reported in newspapers of general circulation or in official,

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 20

public records maintained by the appropriate league or other governing body, or unless the pertinent sports events are televised live at the book and a book employee other than a betting ticket writer monitors the telecasts records the occurrence of the pertinent events and contingencies simultaneously with their occurrence and records the time of their occurrence.
[9. A licensed race book shall not accept wagers nor void betting tickets after the occurrence of post time, as defined in Regulation 22.010(6).]
.5[101. No book or agent or employee of a book may accept a wager from a person who the book, agent, or employee knows or reasonably should know is placing the wager on behalf of another for monetary consideration or in violation of state or federal law.
6[11]. No book may hold a patron's money or its equivalent on the understanding that the book will accept the money as a wager only upon the occurrence of a specified, future contingency, unless a betting ticket documenting the wager and contingency is issued immediately when the book receives the money or its equivalent.
22.065 Report of wagers suspected to be on behalf of another.
1. A licensee shall report, on a form provided or approved by the chairman, any wager that is placed by a patron who substantially informs to the messenger bettor profile as defined in this regulation.
2. This report must include:
PROPOSED AMENDMENTS TO REGULATIONS 3, S AND 22
Page 21

(a) The ]Licensee's name;

(b) The date of visit;

(d) The-patron's name

e) The Patron's address:

(f) The patron's social security number;

(g) The serial or identification number of the patron’s driver's license, passport, non-resident alien identification
card, other reliable government issue identification credential, or other picture identification credential normally acceptable as a means of identification when cashing checks; and
(g) Any other information as required by the Chairman.
3.-The report must be filed with the board no later-than 30 days following the last day of the month in which the wager was accepted.
4. The licensee shall maintain a copy of the report for a period of five years from filing the report,

5. Reports filed with the Board pursuant to this section and copies thereof are privileged information under

NRS 463-3407. A licensee filing a report pursuant to this section has protection pursuant to NRS 463.3407 and

the Nevada Revised Statutes.

6. If the chairman has reasonable cause to believe that a licensee is not complying with the provisions of subsections I through 5, the chairman may require the licensee to comply with the recordkeeping and reporting through 10. A licensee directed to comply with subsections 7

PROPOSED AMENDMENTS TO REGULATIONS 3r 5 AND 22
Page 22
through 10 must do so within 60 days of written notification, or file an appeal within 15 days of said notification to the full
board and commission in a manner similar to that outlined in Regulations 4.185.through 4.195.
6. If directed by the Chairman pursuant to subsection 6, prior to accepting any wager in excess of $3,000 during a single visit or accepting multiple wagers which aggregate to more than $3,000 during a single visit or during a single wagering communication, the book shall:
(a) Obtain the patron’s name;
(b) Obtain or reasonably attempt to obtain the patron’s permanent address and social security number;
(c) Obtain one of the following identification credentials from the patron:
(1) Driver’s license:
(2) Passport;
(3) Non-resident alien identification card;
(4) Other reliable government issue identification credential; or

(5) Other picture identification credential normally acceptable as a means of identification when cashing checks;

(d) Examine the identification credential obtained to verify the patron’s name, and to the extent possible, to verify the
accuracy of the information obtained pursuant to Paragraph (b].
required by paragraphs (a) through (d) of subsection 7_with respect to the person's agent, and the licensee shall reason attempt to obtain and, to the extent obtained, shall record the information required by Paragraphs (a) through (d) of subsection 7 with respect to the Person.
9. Subsequent to accepting a wager or wagers described in subsection 7, the book shall record: .(a) The person's name and, if applicable, the agent's name.
(b) The person's permanent address and social security number, if obtained;
(c) A description and number of the identity credential examined;

(d) The amount of the wager-and the transaction or serial number of the ticket associated with the wager;
(e) Whether the wager was made with cash, chips or other representatives of value:

(f) The name of the book employee accepting the wager; and

(g) Any other information as required by the chairman.

10. Licensees shall keep the information required by this, section in such manner and using such forms as the chairman may require. Within 30 days of the last day of the month in which the transaction occurred, licensees shall submit the information to the board in a manner prescribed by the chairman.
11. A book shall not encourage or instruct a patron to structure or attempt to structure transactions in an attempt to avoid any of the reporting requirements described in this section.

8. When accepting a wager or wagers described in subsection 7, if a book knows a person is placing a wager allowed by the Nevada Revised Statutes and these regulations on behalf of another person, the licensee shall obtain and record the information

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 23

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 24
12, A book shall not knowingly assist a patron in structuring or in attempting to structure transactions.
13. As used in this section, "structure transactions' or structuring transactions means to willfully conduct or attempt to conduct a series of transactions in any amount, in any manner as to willfully evade_or circumvent of this section. The transaction or the dollar thresholds in this section in order to constitute structuring within the meaning of this definition,
22.070 Grading of betting tickets. (Repealed XX/98)
[1. Before paying off any winning wager, an employee of the book other than a cashier or betting ticket writer must grade the book's copy of the betting ticket in accordance with subsection 2, unless the payout is made by a cashier working only for the book and the amount of the payout is less than $300 on a wager placed with a licensed race book or less than $2,200 on a wager,, other than a parlay card wager, placed with a licensed sports pool.
2. When required to grade a ticket pursuant to subsection 1, the grader shall examine the book's copy of the betting ticket and the book's record of the outcome of the event wagered upon, and shall calculate and write on the book's copy of the ticket the amount to be paid out upon presentment of the bettor's copy -]
22-080 Payment of winning wagers.
1. [Before making payment on a winning wager represented by a betting ticket that must be graded pursuant to Regulation 22.070,

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 25
the book cashier must confirm the integrity of the patron's copy by comparing it to the book's graded copy. Before making a payment greater than $10,000 in net winnings on a winning wager, the cashier and a key employee of the licensee other than the cashier must confirm the integrity of the patron's copy by comparing it to the book's copy and the appropriate entry in the log created pursuant to Regulation 22.060(3), and the cashier and key employee must initial the log entry and the book's copy. Not later than 72 hours thereafter, an employee of the licensee other than the cashier or key employee referred to in the preceding sentence shall confirm the integrity of the patron's copy by comparing it to the locked-device copy and, if the integrity of the patron's copy is confirmed, the employee making the comparison shall initial the locked-device copy and the patron's copy. The licensee shall record and immediately notify the board of any discrepancies discovered between a patron's copy and the locked-device copy of a betting ticket.
2.1 Except as otherwise provided in this subsection, books shall make payment on a winning wager to the person who presents the patron's copy of the betting ticket representing the wager. A book need not make payment to a person who the book or an agent or employee of the book knows is not the person to whom the patron's copy was issued. A book shall not make payment on a winning wager to a person who the book or its agent or employee knows or reasonably should know is collecting the payment on behalf of another for monetary consideration or in violation of federal law.

PROPOSED AMENDMENTS TO REGULATIONS 3t 5 AND 22
Page 26
2. Presentment of the betting ticket and payment of the winning wager may be made at an affiliated book provided that:

(a) An adequate accounting of the payment is kept for five years by both books; and

(b) The payout is properly included in the computation of gross revenue of the licensee that initially accented the wager.
[3. When a book pays a winning wager or credits the winnings to the patron's account, the book shall:
(a) Record on the patron's copy of the betting ticket the amount paid or credited;
(b) Write or stamp the word 'paid' on the patron’s copy and on the book's copy of the betting ticket;
(c) Date- and time-stamp the patron's copy and the book's copy of the betting ticket; and
(d) Retain and file the patron's copy and the book's copy by date of payment or crediting.
4]3. Books shall honor winning betting tickets for [at least] 30 days after the conclusion of the event wagered upon unless[. If a book established a policy that winning betting tickets will not be honored after 30 days or] a longer period is established by the book. [,t]The book shall [so] state the redemption period on each betting ticket and on notices conspicuously placed about the licensed premises. Payment by mail may be made only after presentment of the betting ticket, and must be made not later than 10 days after presentment. 4[5]. A licensed race book shall determine the winners of or payouts on wagers on horse and other races only with information

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 27
the book receives from licensed disseminators pursuant to Regulations 20 and 21.
22.090 Parlay card wagers.
1. As used in this section, "parlay card wager" means a wager on the outcome of a series of 3 or more games, matches or similar sports events or on a series of 3 or more contingencies incident to particular games, matches or similar sports events.
2. [No person may accept parlay card wagers without the prior approval of the chairman. Only licensed sports pools may obtain such approval. Applications for approval to accept parlay card wagers must be made, processed, and determined in such manner and using such forms as the chairman may require.
3. Unless a sports pool complies with the procedures described in subsection 4, the sports pool shall issues, control, accept, and pay parlay card wagers in accordance with Regulations 22.050, 22.060, 22.070, and 22.080.
4. A sports pool may issue, control, accept, and pay parlay .card wagers using parlay card wagering forms with detachable stubs in accordance with this subsection. Before a sports pool uses forma and stubs with language pursuant to subsection 5 that differs from language on forms and stubs previously approved for that sports pool under this subsection, the sports pool must submit a sample of the forms and stubs and a description of the differences to the chairman and obtain the chairman's approval of the new language. The name of the licensed location must be printed on each form and stub. Bettors' wagering selections and the amounts of the wagers must be written or otherwise indicated

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 28
in ink on the stubs. Before accepting a parlay card wagers, the sports pool must examine the stub and confirm that the bettor’s selections are marked clearly and unambiguously. Immediately upon accepting a parlay card wager, the ticket writer shall date and time-stamp the form and stub, stamp on the form and on the stub a number that is in sequence with numbers stamped on the forms and stubs for other parlay card wagers accepted, return the form to the patron, and store the stub at the licensed location. Sports pools shall not accept parlay card wagers after the start of the first game, match, or similar sports event covered by the wager. Not later than 15 minutes after the start of the first game, match, or other sports event covered by a parlay card wager, using equipment approved in advance by the chairman, an employee in the security or accounting department of the licensee who is wholly independent of the ticket writing, grading, and cashiering process, or such other employees described in the licensee's system of internal control as the chairman may approve, shall microfilm each stub representing an accepted parlay card wager. When starting any filming session and before microfilming any stubs, the employee operating the equipment and another employee of the licensee (at least one of whom must be a key employee and neither of whom, except with the prior written approval of the chairman, shall be a ticket writer) shall date and time-stamp, sign and microfilm a piece of paper (the "opener"). When completing any filming session, the same employees shall date- and time-stamp, sign, and microfilm another piece of paper (the “closer"). The microfilm frames used to film

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 29
the opener, the stubs, and the closer in any session must be physically connected in sequence. The microfilming and date- and time-stamping equipment must be wired, accessed, examined, and adjusted in accordance with subsection 7 of Regulation 22.050. The microfilm copies must be kept in a secure place to which only the licensee's accounting department personnel, internal and external auditors, security personnel, and key employees have access. Before making payment on a winning parlay card wager, an employee of the licensee other than a ticket writer must examine the stub and the sports pool's record of the outcome of the events wagered upon, and must calculate and write on the stub the amount to be paid out upon presentment of the corresponding form. Before making a payment greater than $10,000 on a winning parlay card wager, a key employee of the licensee must confirm the integrity of the stub by comparing it to the microfilm copy and must sign the stub. Upon presentment of a form representing a winning parlay card wager, the sports pool shall examine the corresponding stub to determine the amount to be paid; record on the form the amount paid; write or stamp the word "paid" on the form and on the stub; date- and time-stamp the form; and retain and file the form and stub by date of payment. Sports pools that operate parlay card wagers pursuant to this subsection shall comply with all other provisions of Regulation 22 to the extent they are not inconsistent with the provisions of this subsection.
5.1 Each sports pool that offers to accept parlay card wagers shall fully, accurately, and unambiguously disclose on all parlay card wagering forms:

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 30

(a) The amounts to be paid to winners or the method by which such amounts are to be determined and if the sports pool limits payouts to an aggregate amount under subsection [6]3, the aggregate amount and the establishments to which it applies.
(b) The effect of ties.

(d) The procedure for claiming winnings, including but not limited to the documentation players must present to claim winnings, time limits, if any, for claiming winnings, whether winnings may be claimed and paid by mail and, if so, the procedure for claiming winnings by mail.
(e) The effects of an event wagered on not being played on the date specified and of other events that will cause selections to be invalid.
(f) The requirement that a parlay card wager must consist of at least three selections that have not become invalid under applicable house rules or the wager will be void and the money wagered will be refunded.
(g) The rights, if any, reserved by the sports pool, including but not limited to reservation of the right to refuse any wager or delete or limit any selection prior to the acceptance of a wagers or to withhold payouts of specified amounts until the outcome of each proposition offered by the parlay card has been determined.
(h) The requirement that the point spreads printed on the parlay card wagering form when the wager is accepted will be used to determine the outcomes of the wagers.

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 31
(i) That the sports pool's house rules apply to parlay cards unless otherwise stated on the parlay card wagering form.
3[6]. As used in this subsection,, "parlay card" means a [parlay card] wagering form[s] offering exactly the same propositions on exactly the same terms.
(a) A sports book [pool], a sports book-and its outstation books [pool operated by affiliates], or [and] a sports book and its satellite books [pool that has been issued licenses to operate at establishments pursuant to NRS 463.245(3)] may limit the aggregate amount to be paid to winners on a parlay card in proportion to the amounts won, provided that the aggregate limit must not be less than the amount disclosed on the parlay card (the "base amount") plus twice the amount wagered on the parlay card at all establishments to which the aggregate limit applies.
(b) When a sports pool knows or reasonably should know that actual payouts on a parlay card will be limited by an aggregate amount established under paragraph (a), the sports pool shall cease accepting wagers and making payouts on the parlay card. After the outcome of the final game, match, or event covered by the parlay card has been determined, the sports pool shall pay each winner at least that proportion of the payout amount stated on the parlay card that the aggregate limit bears to total payouts (including payouts made prior to the suspension of payouts) that would otherwise have been made but for the limit.
(c) When a book ceases accepting wagers and making payouts on a parlay card under paragraph (b), the book may accept wagers on the parlay card on those propositions whose outcomes have not

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 32
been determined if the parlay card, bettor receipts, and related documentation are distinguishable from the card, receipts and documentation as to which the book has ceased accepting wagers in which case the parlay card shall be considered a different parlay card for purposes of this subsection.
(d) If a book pays the winner of a parlay card wager more than 10 percent of the base amount established under paragraph (a) before the outcome of every proposition offered by the parlay card has been determined, the book must pay every winner of a wager on that parlay card the proper payout amount stated on the parlay card in full and without regard to any aggregate limit established under paragraph (a).
(e) In specific cases the commission may waive or impose requirements more restrictive than the requirements of this subsection.
22.100 Computerized bookmaking systems.
1. [Upon the written request of a books the chairman in his sole and absolute discretion, may waive in writing any of the requirements of Regulations 22.030, 22.050, 22.060, 22.070, 22.080, and 22.090 if satisfied that the book has a computerized bookmaking system that generates records and has effective controls comparable to the requirements of those regulations.
2. Not later than June 30, 1988, each book that accepted wagers of $5OO,OOO or more for the 12 months ended December 31, 1987, shall install a computerized bookmaking system meeting specifications approved by the chairman.
3. Not later than December 31, 1989, each book that accepted

PROPOSED AMENDMENTS TO REGULATIONS 31 5 AND 22 Page 33
wagers of less than $500,000 for the 12 months ended December 31, 1987, shall install a computerized bookmaking system meeting the specifications approved by the chairman.
4. The chairman may, in his sole and absolute discretion, establish procedures to be followed by books that accepted wagers of less than $500,000 for the 12 months ended December 31, 1987.
5.] Before beginning operations, each book [licensed after June 30, 1988,1 shall install a computerized bookmaking system meeting the specifications approved by the chairman.
[6. The commission may grant an extension of time to comply with the requirements of Regulation 22.100(2), 22.100(3), and 22.100(4), if the commission makes a specific written finding that such an extension of time is consistent with the policies set forth in the Act.]
22.110 No change.

22.115 No change.

22.120 No change.

22.125 Wagers; terms and conditions.
1. No book shall:

(a) Accept from a bettor directly or indirectly less than the full face value of a wager; or

(b) Agree to refund or rebate to a bettor any portion or percentage of. the full face value of a wager; or

2. This section does not restrict a book from-offering a wagering preposition or setting or moving it betting lines or

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 34
odds, unless the wager or series of wagers poses no risk of loss to the patron.
22.130 Communications media [Telephones).
1. Before installing or permitting the installation of any communications medium [telephone] on the premises of a book the book shall notify the board in writing of the location and number or other identifier of each communications medium [telephone] and shall obtain the written approval of the chairman for each communications medium [telephone]. The chairman may condition his approval in any manner he considers appropriate.
2. As a condition to the granting of the privilege of having a communications medium [telephones] upon the licensed premises, the book shall be deemed to have consented to the authority of the chairman to require the immediate removal of any communications medium [telephone] from the licensed premises at any time without prior notice of hearing. After any such removals the book may request a hearing before the board as to whether or not circumstances may warrant the permanent revocation of the privilege of having a communications medium [telephones] upon the premises.
3. Upon the request of either the board or commission, a book shall provide a written consent for the board or commission to examine and copy the records of any telephone, telegraphy or other communications company or utility that pertain to the
operation of the book.

22.135 Use of communications devices prohibited. A book shall not allow a person to use a communications device within

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 35
the premises of the book. The premises of the book shall be considered any area where race book or sports pool wagers are accepted or any area where odds boards may be viewed. A person
who is found to be using a communications device within a book’s premises must be advised to immediately discontinue use of the device or be escorted off those premises. Communications devices include but are not limited to, paging devices, cellular telephones, radios and computers that are being used to transmit or receive information.
22.140 [Telephone] Transmission of wagers.
1. [Books shall not accept wagers over the telephone except from bettors calling] A book may only accept a wager made in person unless the transmission of a wager is initiated from within the State of Nevada. Each book must conspicuously display signs to that effect on its premises.
2. Before accepting any [wagers over the telephone] wagering communications, [a) the book [must identify each telephone and number to be used to accept telephone wagers and] must obtain
the written approval of the chairman to accept [telephone wagers] wagering communications, and thereafter [to] use only the communications media and system approved [telephones and numbers
identified] for that purpose. Thereafter, the book must obtain written permission from the chairman, on an annual basis, to continue using the communications media and system.
Additionally, subsequent to July 1, 1998 a book may only accept wagering communications if it can demonstrate to the Board’s satisfaction that the wagering communications originate from

PROPOSED AMENDMENTS TO REGULATIONS 3. 5 AND 22
Page 36
[within the State of-Nevada. Books shall accept telephone wagers using only telephones and numbers identified and approved for that purpose pursuant to this subsection, subject to such conditions as the chairman may impose.]
3.Each book that accepts wagering communications [wagers over the telephone] shall establish and implement a system of internal control for such communications pursuant to Regulation 6 [a system of internal control for telephone wagering transactions].
4. Each book shall prepare a written description of its [telephone wagering] rules and procedures for wagering communications, and shall furnish a copy to each patron for whom a [telephone] wagering account is established.
5. Each book shall implement procedures (such as issuing each bettor a personal identification number) reasonably designed to prevent the acceptance of wagers from persons other than the bettors for whom [telephone] wagering accounts are established.
6[4]. Before a book accepts a [wager] wagering communication [over the telephone from a bettor]:
(a) The bettor must personally appear at the premises of the book or for central site books, at an outstation, satellite or affiliated book, to open a wagering account or establish a credit line;

(b) An employee of the book must examine, in the bettor's presence, the bettor's valid driver's license or other reliable credential of identity and residence [, or must otherwise comply with the identification procedures] described in [the book's system of internal control submitted pursuant to] Regulation[s 6
PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 37

and this regulation] 22.065(7)(c);

(c) The employee must record:
(1) The bettor's name, permanent home address (other than a post office box number), and home telephone number;
(2) The bettor's mailing address and, if the mailing address is not a post office box number and is a residence or place of business of the bettor, the telephone number of the resident or place of business;

(3) The bettor's date of birth, driver’s license number or other reliable identity credential number and social security number, if available;
(4) The method used to verify the bettor's identity and residence, and a description, including the document number, of the identity credential examined;
(5) The bettor's approved credit limit or the amount of the bettor's initial front money deposit;
(6) The bettor's account number with the book; and

(7) The date the bettor's account with the book is opened
(d) The bettor must signs in the presence of a [key] Supervising employee of the book, statements:
(1) Attesting to the accuracy of the information recorded;

(2) Acknowledging receipt of a copy of the book's [telephone wagering] rules and procedures for wagering communications;
(3) Acknowledging the bettor has been informed and understands that bettors are prohibited by law from placing [telephone wagers] wagering communications from outside Nevada and that the book is prohibited by law from accepting them;
PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 38
(4) Acknowledging that he has read, understands and is bound by the provisions of subsection 6 [4]; and
(5) Consenting to the monitoring and recording by the board of any [calls] wagering communications placed to or with telephones located at the licensed premises; and
(e) The employee who verifies the bettor's identity and residence and who obtains and records the information on behalf of the book and the [key] supervising employee described in subparagraph (d), must each sign statements that they witnessed the bettor's signature and confirmed the bettor's identity and residence.
7[5]. If a bettor is not a resident of Nevada, the book shall not accept wagers on the bettor's [telephone] wagering account after 96 hours after the account is opened, unless the bettor renews the account. The bettor may renew the account for one and only one additional 96-hour period by appearing personally at the premises of the book prior to the expiration of the initial 96-hour period and signing a renewal form. Two employees of the book, at least one of whom must be a [key] supervising employee, shall witness the bettor's signature on the renewal form and each shall attest thereto by signing the renewal form. When the renewal period expires, the book shall accept no further [telephone wagers) wagering communications from the bettor until the provisions of subparagraphs (a), (b)r and (e) of subsection 6 [41 have again been complied with.
8[6]. For each [telephone] wagering account established for the purpose of accepting wagering communications, the book

PROPOSED AKENDMENTS TO REGULATIONS 3, 5 AND 22
Page 39
shall record:
(a) The date, amount, and a description of each debit and credit to the account;
(b) For each wager accepted:
(1) The date the wager is accepted;

(2) The number of the betting ticket; and

(3) The amount of the wager; and
(c) The personal identification number or other security code, if any, assigned to the bettor.
9. All wagering communications shall be Electronically recorded and retained for a period of 60 days._ Such recordings must be made immediately available to an board agent upon request.
22.150 No change.

22.160 Accounting. (Repealed XX/98)
[1. Each book shall reconcile in writing for each writer station and each cashier station all cash, credit, front money, and telephone transaction to betting tickets written and paid for each day of operation. The reconciliation must be performed within 72 hours after the end of the day for which the reconciliation is performed, and a copy of each written reconciliation must be preserved by the book for inspection by the board. Records accounting for front money received and wagers accepted against front money must be maintained and reconciled to betting tickets by employees who are independent of the wagering and payout transactions.
2. Each book shall compile reports, for each calendar quarter

PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 40
and for each relevant season, or for such other periods as the chairman may approve or require, of the total amount of wagers accepted, the total amount paid out on winning wagers, the net amount won by the book, and the book's win percentage, for horse racing, for each sport, for each other type of event, and for parlay cards, on which the book accepts wagers.]
22.170 Credit accounts.
1. Each book that accepts wagers on credit shall establish and implement pursuant to Regulation 6 [and this regulation] a system of internal control for [credit accounts and] such transactions. In addition to the internal controls, [E]each book shall prepare a written explanation of its credit account rules and procedures, and shall furnish a copy to each patron for whom a credit account is established.

2. For each account established by a book permitting a bettor to wager on credit, the book shall:
(a) Record and verify such information as is necessary for the efficient collection of debts, including but not limited to the name and address of the patron for whom the book establishes the account [is established] and such other information as the chairman may require;
(b) Permit a patron to wager on credit only if the initial credit line was established in person and an increase to that credit line has been requested, approved and documented pursuant
to the book's system of internal control;
(b) Obtain the patron's written acknowledgment of receipt of a copy of the book's credit account rules and procedures; and
(c)
PROPOSED AMENDMENTS TO REGULATIONS 3, 5 AND 22
Page 41
(d[c]) Otherwise comply with the requirements for establishing credit accounts described in the book's system of internal control prepared and submitted pursuant to Regulation 6 [and this regulation].
3. For each credit account established, the book shall record:
(a) The date, amount, and a description of each debit or credit to the account;
(b) For each wager accepted on a credit account:

(1) The date the wager is accepted;

(2) The number of the betting ticket; and

(3) The amount of the wager; and
(c) [For each credit account established for use in connection with a telephone wagering account,] [t]The personal identification number or other security code, if any, assigned to the bettor.
4. A book shall establish no more than one credit account for each patron.
22.180 No change.

22.190 No change.

22.200 No change.