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OREGON STATE LOTTERY

 

DIVISION 100

VIDEO LOTTERY TERMINALS

177-100-0000

Video LotterySM Game System

The Director may operate a Video LotterySM game system using Video LotterySM game terminals approved under this Division.

Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461
Stats. Implemented: ORS 461.215 & 461.217
Hist.: LC 8-1991, f. & cert. ef. 11-25-91; LOTT 6-2003(Temp), f. & cert. ef. 6-5-03 thru 11-28-03; LOTT 14-2003, f. & cert. ef. 9-29-03; LOTT 7-2008, f. 10-31-08, cert. ef. 11-1-08

177-100-0010

Definitions

For purposes of division 100, the following definitions apply except as otherwise provided in OAR chapter 177, or unless the context requires otherwise:

(1) “Certification” means the inspection process used by the Lottery to approve Video LotterySM game terminals and games.

(2) “Decal” means the stamp displayed by the Lottery upon a Video LotterySM game terminal to provide notice that the Video LotterySM game terminal is authorized by the Oregon Lottery®.

(3) “Display” means the visual presentation of Video LotterySM game features shown on the screen of a Video LotterySM game terminal.

(4) “Gray machine” means a gambling device as described in ORS 167.117(9).

(5) “Manufacturer” means any individual, partnership, corporation, trust, association, joint venture, limited liability company, or other business entity that manufactures, assembles, services, or produces Video LotterySM game terminals or gray machines in Oregon.

(6) “Service” means the activities of a manufacturer related to the maintenance, repair, testing, or quality assurance of gray machines.

(7) “Video LotterySM” or “Video LotterySM game” means the following games conducted through Video LotterySM game terminals that are monitored by a central computer system:

(a) Video poker games;

(b) Video line games; and

(c) Any other lottery game designated by the Oregon Lottery Commission as a Video LotterySM game.

(8) “Video LotterySM game terminal” is a device operated under the authority of the Oregon State Lottery and has the meaning set forth in OAR 177-010-0003.

Stat. Auth.: OR Const. Art. XV, § 4(4) & ORS 461
Stats. Implemented: ORS 461.215 & 461.217
Hist.: LC 8-1991, f. & cert. ef. 11-25-91; LOTT 6-2000, f. 7-26-00, cert. ef. 8-1-00; LOTT 6-2003(Temp), f. & cert. ef. 6-5-03 thru 11-28-03; LOTT 14-2003, f. & cert. ef. 9-29-03; LOTT 5-2005(Temp), f. & cert. ef. 5-20-05 thru 11-11-05; LOTT 8-2005, f. & cert. ef. 9-1-05; LOTT 7-2008, f. 10-31-08, cert. ef. 11-1-08; LOTT 6-2009, f. 9-28-09, cert. ef. 10-1-09; LOTT 7-2009, f. 9-28-09, cert. ef. 10-1-09

177-100-0080

Certification Decal

(1) Each Video LotterySM game terminal certified for operation by the Lottery must bear a certification decal and must conform to the specifications of the prototype terminal of the same model that has been tested and certified by the Lottery.

(2) No person other than an authorized Lottery employee or agent may affix or remove the certification decal. The placement of the decal represents that the Video LotterySM game terminal has been certified, inspected, and approved for operation in Oregon.

(3) No Video LotterySM game terminal may be transported out of Oregon until the decal has been removed.

Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461
Stats. Implemented: ORS 461.215, 461.217 & 461.330
Hist.: LC 8-1991, f. & cert. ef. 11-25-91; LOTT 6-2003(Temp), f. & cert. ef. 6-5-03 thru 11-28-03; LOTT 14-2003, f. & cert. ef. 9-29-03; LOTT 7-2008, f. 10-31-08, cert. ef. 11-1-08

177-100-0090

External Video LotterySM Game Terminal Specifications and Age Restriction Requirements

(1) Video LotterySM game terminals operated by the Lottery may only display information on the screen or terminal housing that has been approved by the Lottery.

(2) At no time may anyone other than an authorized Lottery employee or agent place stickers or other removable devices on a Video LotterySM game terminal for any reason.

(3) Each Video LotterySM game terminal must display an Oregon Lottery® logo.

(4) The following age restriction notice must clearly be displayed on each Video LotterySM game terminal: “No person under 21 years of age may play” or “Must be 21 years of age or older to play” or “Anyone under 21 years of age must not play.”

Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461
Stats. Implemented: ORS 461.215 & 461.217
Hist.: LC 8-1991, f. & cert. ef. 11-25-91; LOTT 6-2003(Temp), f. & cert. ef. 6-5-03 thru 11-28-03; LOTT 14-2003, f. & cert. ef. 9-29-03; LOTT 7-2008, f. 10-31-08, cert. ef. 11-1-08

177-100-0095

Procurement of Video LotterySM Game Terminals

(1) Only the Lottery may possess and operate Video LotterySM game terminals in Oregon.

(2) The Lottery may select and procure Video LotterySM game terminals as necessary by contracting with manufacturers approved pursuant to OAR chapter 177, division 35, and may provide the terminals to Video LotterySM retailers.

Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461
Stats. Implemented: ORS 461
Hist.: LC 8-1991, f. & cert. ef. 11-25-91; LOTT 6-2000, f. 7-26-00, cert. ef. 8-1-00; LOTT 6-2003(Temp), f. & cert. ef. 6-5-03 thru 11-28-03; LOTT 14-2003, f. & cert. ef. 9-29-03; LOTT 7-2008, f. 10-31-08, cert. ef. 11-1-08

177-100-0130

Duties of Manufacturers

Manufacturers, their employees, representatives, and agents shall:

(1) Promptly report to the Lottery any violation or any facts or circumstances that may result in a violation of ORS Chapter 461 or these rules.

(2) Provide immediate access to all records and the entire physical premises of the business for inspection at the request of the Lottery or its auditors.

(3) Not conduct any advertising or promotional activities in Oregon (or directed at Oregon residents) that are false or misleading regarding Video LotterySM games.

(4) Promptly report to the Lottery their knowledge or suspicion of any gray machine located within Oregon.

(5) Attend all trade shows or conferences as required by the Lottery.

Stat. Auth.: OR Const. Art. XV, ¦ 4(4) & ORS 461
Stats. Implemented: ORS 461.215, 461.217 & 461.400
Hist.: LC 8-1991, f. & cert. ef. 11-25-91; LOTT 6-2003(Temp), f. & cert. ef. 6-5-03 thru 11-28-03; LOTT 14-2003, f. & cert. ef. 9-29-03; LOTT 7-2008, f. 10-31-08, cert. ef. 11-1-08

177-100-0160

Transportation of Video LotterySM Game Terminals Within, Into, or Through Oregon

(1) No person shall ship or transport Video LotterySM game terminals within or into Oregon without first obtaining a written authorization for transport from the Director. Transporting or shipping within Oregon means the starting point of a trip is within the boundaries of the state and the termination point is either within or outside the boundaries of the state. Transporting or shipping into Oregon means the starting point of a trip is outside the boundaries of the state and terminates within the boundaries of the state.

(2) No person shall ship or transport Video LotterySM game terminals through Oregon without first obtaining a written authorization from the nearest port of entry immediately upon arrival in the state. Transporting or shipping through Oregon means the starting point and termination point of a trip are outside the boundaries of the state and the route between the starting and termination points enters the state.

(3) Notwithstanding section (1) of this rule, authorization to transport a Video LotterySM game terminal within or into Oregon for purposes of display or demonstration at a trade show conducted within the boundaries of the state must be obtained as described in OAR 177-010-0120.

(4) The written authorization required under sections (1) and (2) of this rule shall include:

(a) The manufacturer of each Video LotterySM game terminal being transported;

(b) The model and serial number of each Video LotterySM game terminal being transported;

(c) The full name, address, and telephone number of the person or establishment from which the Video LotterySM game terminals were obtained;

(d) The full name, address, and telephone number of the person or venue to whom the Video LotterySM game terminals are being sent or transported; and

(e) The dates of shipment or transport within, into, or through the state.

(5) At all times, a copy of the written authorization shall accompany the Video LotterySM game terminal or terminals in transport.

Stat. Auth.: OR Const. Art. XV, Sec. 4 & ORS 461
Stats. Implemented: 1999 OL Ch. 193 & ORS 461.215
Hist.: LC 8-1991, f. & cert. ef. 11-25-91; LOTT 12-1999(Temp), f. & cert. ef. 12-27-99 thru 6-20-00; LOTT 3-2000, f. 3-31-00, cert. ef. 4-3-00; LOTT 6-2003(Temp), f. & cert. ef. 6-5-03 thru 11-28-03; LOTT 14-2003, f. & cert. ef. 9-29-03; LOTT 7-2008, f. 10-31-08, cert. ef. 11-1-08

177-100-0180

Approval for Instate Manufacturing and Servicing of Gray Machines Shipped Out-of-State

(1) General Approval: A manufacturer shall apply to the Director of the Oregon Lottery for approval to manufacture or service gray machines within Oregon.

(a) Director’s Approval: The Director may authorize a manufacturer to manufacture or service gray machines within the state of Oregon only if the manufacturer intends to export the gray machines to another state or jurisdiction where the operation or possession of the machines is legal. The Director shall require a manufacturer to cite the law that authorizes the legal operation or possession of the machines in the state or jurisdiction, and may require additional evidence that the gray machines will be sold or otherwise provided to a person who is authorized to operate or possess the machines in that jurisdiction. The authorization includes approval to engage in ongoing research and development related to the improvement and development of Video LotterySM game terminals the manufacturer intends to manufacture.

(b) Disclosure Requirements: The manufacturer is subject to the same disclosure and background investigation requirements as an applicant for a major procurement. The manufacturer may be required by the Director to reimburse the Lottery for the costs of background investigations.

(c) Inspections and Audits: A manufacturer’s premises, and all production, shipping, service, and financial records, shall be made available for routine and unannounced inspections and audits by the Assistant Director of Security. A manufacturer shall provide to the Lottery, upon request of the Assistant Director for Security, a report listing: the types and numbers of gray machines manufactured; the types and number of machines in storage; the types and number of machines serviced; the name and address of each individual or entity who purchased, leased, or otherwise was provided gray machines or who agreed or expressed an intent to purchase, lease, or otherwise acquire gray machines, or who own, operate, or otherwise possess gray machines serviced by the manufacturer; the number of shipments; destinations of all shipments; and methods of shipment, including carrier used. The information in the report shall be for a time period designated by the Assistant Director for Security. Shipment or transport of gray machines to a destination outside of Oregon also must comply with OAR 177-100-0160.

(2) Temporary Approval: The Director may temporarily authorize a manufacturer to manufacture or service gray machines within the state of Oregon that the manufacturer intends to export to another state or jurisdiction where the operation or possession of the machines is legal. The temporary authorization is subject to such terms, conditions, or limitations as the Director deems necessary.

(a) The manufacturer must submit the following:

(A) The information required by ORS 461.410(1);

(B) A written description of the proposed use of the gray machines;

(C) A cite for the law that authorizes the legal operation or possession of the gray machines in the state or jurisdiction where the machines will be used; and

(D) The identity of the individuals or entities who have agreed to or have expressed an intent to purchase or otherwise acquire gray machines from the manufacturer, or who own, operate, or otherwise possess gray machines serviced by the manufacturer.

(b) When the Lottery receives the above materials for temporary approval, the Lottery will conduct an abbreviated background investigation of the manufacturer. The investigation includes, but is not limited to:

(A) A computerized criminal background check of all control persons and any employee deemed necessary by the Assistant Director for Security.

(B) A credit check using the services of a commercial credit reporting company, and

(C) An inspection of the manufacturer’s business premises where the gray machines will be manufactured or serviced.

(c) If the Director issues a temporary approval, it is effective for no longer than 180 days.

(3) Cancellation of Approval: The Director may cancel any general or temporary approval if the Director determines that the manufacturer has failed to adhere to the qualifications or conditions required for authorization of the manufacturer or otherwise poses a threat to the integrity, security, or honesty of the Lottery. Approval also may be cancelled if within a reasonable time from the date of production, the manufacturer is unable to show the machines have been purchased, leased, or otherwise acquired by a person or entity authorized to obtain or possess the machines.

Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461
Stats. Implemented: ORS 167.117 & 167.164
Hist.: LC 7-1991(Temp), f. & cert. ef. 10-28-91; LC 8-1991, f. & cert. ef. 11-25-91; LOTT 6-2003(Temp), f. & cert. ef. 6-5-03 thru 11-28-03; LOTT 14-2003, f. & cert. ef. 9-29-03; LOTT 5-2005(Temp), f. & cert. ef. 5-20-05 thru 11-11-05; LOTT 8-2005, f. & cert. ef. 9-1-05; LOTT 7-2008, f. 10-31-08, cert. ef. 11-1-08

177-100-0185

Instate Manufacturing of Video LotterySM Game Terminals Operated in Oregon

(1) A manufacturer of Video LotterySM game terminals approved by the Lottery for the Lottery’s own use under OAR chapter 177, division 35, may manufacture such terminals in Oregon.

(2) The Director may issue temporary approval for the manufacture of Video LotterySM game terminals upon submission and satisfactory review of the following information:

(a) The information required by ORS 461.410(1);

(b) The manufacturer’s written statement of intent to manufacture Video LotterySM game terminals to be operated in Oregon solely by the Lottery; and

(c) A copy of a letter or other document from the Lottery expressing an interest in purchasing Video LotterySM game terminals from the manufacturer.

(3) If the Director issues a temporary approval, it shall be effective for no longer than 180 days.

(4) No Video LotterySM game terminal shall leave the premises of the approved manufacturer until it is shipped to a destination authorized by the Lottery.

(5) All Video LotterySM game terminals whose manufacture has been approved by the Lottery shall be operated only under the authority of the Lottery.

(6) A manufacturer’s premises, and all production, shipping, service, and financial records, shall be made available for routine and unannounced inspections and audits by the Assistant Director of Security. A manufacturer shall provide to the Lottery a monthly report listing the types and numbers of Video LotterySM game terminals manufactured, the types and number in storage, the number of shipments of these Video LotterySM game terminals, the destinations of all shipments, and methods of shipment, including carrier used.

(7) The Director may cancel any approval if the Director determines that the manufacturer has failed to adhere to the conditions required for approval of the manufacturer or otherwise poses a threat to the integrity, security, or honesty of the Lottery. Approval also may be revoked if the Lottery does not enter into a contract with the manufacturer for the purchase of the Video LotterySM game terminals within a reasonable period, or if such a contract is cancelled.

(8) Notwithstanding sections (1) through (3) of this rule, any Oregon manufacturer who has previously submitted a bid in response to a request for proposal issued by the Lottery may continue to perform Video LotterySM game terminal research and development. If the manufacturer is not successful in providing Video LotterySM game terminals in any subsequent request for proposal issued by the Lottery, the Director may cancel the manufacturer’s approval to manufacture Video LotterySM game terminals.

Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461
Stats. Implemented: ORS 167.117 & 167.164
Hist.: LC 7-1991(Temp), f. & cert. ef. 10-28-91; LC 8-1991, f. & cert. ef. 11-25-91; LC 13-1992, f. & cert. ef. 10-29-92; LOTT 6-2000, f. 7-26-00, cert. ef. 8-1-00; LOTT 6-2003(Temp), f. & cert. ef. 6-5-03 thru 11-28-03; LOTT 14-2003, f. & cert. ef. 9-29-03; LOTT 7-2008, f. 10-31-08, cert. ef. 11-1-08

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