Introduced By: Senators Parella, Gibbs, Sosnowski and Nygaard
Date Introduced : February 5, 1998
Referred To: Senate Committeee on Corporations
It is enacted by the General Assembly as follows:
SECTION 1. Sections 42-61.2-1, 42-61.2-3 and 42-61.2-8 of the General Laws in Chapter 42-61.2 entitled "Video Lottery Terminal" is hereby amended to read as follows:
42-61.2-1. Definitions. -- For the purpose of this chapter, the following words shall mean:
(a) "Central communication system" means a system approved by the lottery commission, linking all video lottery machines at a licensee location to provide auditing program information and any other information determined by the lottery. In addition, the central communications system must provide all computer hardware and related software necessary for the establishment and implementation of a comprehensive system as required by the commission. The central communications licensee may provide a maximum of fifty percent (50%) of the video lottery terminals.
(b) "Licensed video lottery retailer" means a pari-mutuel licensee specifically licensed by the director subject to the approval of the commission to become a licensed video lottery retailer.
(c) "Net terminal income" means currency placed into a video lottery terminal less credits redeemed for cash by players.
(d) "Pari-mutuel licensee" means an entity licensed and authorized to conduct:
(i) Dog racing, pursuant to chapter 3.1 of title 41; and/or
(ii) Jai-alai games, pursuant to chapter 7 of title 41.
(e) "Technology Provider" means any individual, partnership, corporation, or association that designs, manufactures, installs, operates, distributes or supplies video lottery machines or associated equipment for the sale or use in this state.
(f) "Video lottery games" means lottery games played on video lottery terminals controlled by the lottery commission.
(g) "Video lottery terminal" means any electronic computerized video game machine that, upon the insertion of cash, is available to play a video game authorized by the lottery commission, and which uses a video display and microprocessors in which, by chance, {ADD defined as all game outcomes must occur with statistically equal probability and in a completely random and nonrepeating sequence, ADD} the player may receive free games or credits that can be redeemed for cash. The term does not include a machine that directly dispenses coins, cash, or tokens.
42-61.2-3. Additional powers and duties of the commission. -- In addition to the powers and duties of the state lottery commission under section 42-61-2, the commission shall meet with the lottery director for the purpose of promulgating reasonable rules and regulations relating to video lottery games and to make recommendations and set policy for such games. Such rules and regulations shall be promulgated as soon as possible after July 1, 1992, and shall include but not be limited to:
(a) The commission shall license technology providers capable
of interfacing with a central communications system controlled
by the commission. In making its licensing decision, the commission
shall select providers based on the following factors: providers
experienced in performing comparable projects, financial stability,
technical and management abilities, the quality of the product
and service capabilities, likelihood of timely performance, maximum
revenue generation, its ability to pass a law enforcement background
investigation, and any other factors found to be relevant to performance.
The award of a license to technology providers under this section
shall satisfy the requirements of chapter 2 of title 37. An outside
independent testing laboratory {DEL may DEL} {ADD shall ADD}
be utilized by the commission at the expense of the individual
provider;
(b) Accounting procedures for determining the net terminal income from lottery video terminals, and unclaimed prizes and credits;
(c) The type of video lottery games to be conducted;
(d) The price to play each game and the prizes or credits to be awarded;
(e) Financial reporting procedures for licensed video lottery retailers and control procedures in the event that any such retailer should become insolvent;
(f) Insurance and bonding by:
(1) Licensed video lottery retailer; and
(2) Technology provider;
(g) The licensing of licensed video lottery retailers;
(h) The contracting with technology providers;
(i) All video lottery machines shall be linked under a central communications system to provide auditing program information as approved by the lottery. The communications system approved by the lottery may not limit participation to only one manufacturer of video lottery machines by either cost of implementing the necessary program modifications to communicate or the inability to communicate with the central communication system; and
(j) Such other matters necessary of video lottery terminals or for the convenience of the public.
{ADD (k) Video lottery machines and the central communications system shall be subject to unannounced testing once per fiscal year to assure that all game outcomes occur with statistically equal probability and in a completely random and nonrepeating sequence. Testing shall include both hardware and software programming, as applicable to the device. Test results shall be filed with the secretary of state. Any machines that do not meet testing criteria to within a statistical ninety five percent (95%) margin of error shall be removed from service. ADD}
{ADD (l) All video lottery machines shall have displayed in a visible location the approximate statistical likelihood of losing one (1) play. The likelihood of losing shall be expressed as "The chance of losing is ___ times out of 100 plays." Likelihood of losing shall be determined by certified testing. ADD}
42-61.2-8. Penalty for manipulation or tampering. -- Any person who, with intent to manipulate the outcome, payoff, and/or operation of a video lottery terminal, manipulates the outcome, prize, or operation of a video lottery terminal by physical or electronic means {ADD , or by software programming which causes game outcomes to occur with statistically unequal probability or in a nonrandom or repeating sequence, ADD} shall be guilty of a felony punishable by imprisonment for not more than ten (10) years or by a fine of not less than ten thousand ($10,000) dollars or both.
SECTION 2. This act shall take effect upon passage.
This act would assure fairness of outcomes for all players of video lottery terminals. An independent testing laboratory would assure the integrity of data audit requirements and controls. It would also give players reasonable information on the chances of losing any game played on a video lottery terminal and would assure fairness of outcome for players of video lottery terminals by including the controlling software programs as a means of manipulation or tampering.
This act would take effect upon passage.
