As used in this subpart, unless the context otherwise requires:

1. (1) “Assume responsibility” means to acquire complete control over, or ownership of:

   1. (A) A gaming device;
   2. (B) A cashless wagering system;
   3. (C) A mobile gaming system; or
   4. (D) An interactive gaming system;

2. (2)

   1. (A) “Cashless wagering system” means the collective hardware, software, communications technology, and other associated equipment used to facilitate wagering on any game or gaming device including mobile gaming systems and interactive gaming systems with other than chips or legal tender of the United States.

   2. (B) The term does not include any race and sports computerized bookmaking system that accepts pari-mutuel wagers, or any other race and sports book systems that do not:

      1. (i) Accept wagering instruments;
      2. (ii) Accept wagering credits; or
      3. (iii) Process electronic money transfers.
   3. (C) Associated equipment such as redemption kiosks may also be used to act as promotion kiosks and automated teller machines;
3. (3) “Commission” means the Arkansas Racing Commission or the commission’s designee;

4. (4)

   1. (A) “Control program” means any software, source language, or executable code which affects the result of a wager by determining win or loss.

   2. (B) The term includes, but is not limited to, software, source language, or executable code associated with the:

      1. (i) Random number generation process;
      2. (ii) Mapping of random numbers to game elements to determine game outcome;
      3. (iii) Evaluation of the randomly selected game elements to determine win or loss;
      4. (iv) Payment of winning wagers;
      5. (v) Game recall;
      6. (vi) Game accounting, including the reporting of meter and log information to an online slot metering system;
      7. (vii) Monetary transactions conducted with associated equipment;
      8. (viii) Software verification and authentication functions which are specifically designed and intended for use in a gaming device;
      9. (ix) Monitoring and generation of game tilts or error conditions; and

      10. (x)

          1. (a) (a) Game operating systems which are specifically designed and intended for use in a gaming device.
          2. (b) (b) The term does not include software used for artistic attributes of a game including graphics, sound, and animation providing entertainment unless such elements are material to game play because they are necessary for the player to understand the game or game outcome;
5. (5) “Distribution” or “distribute” means the sale, offering for sale, lease, offering for lease, licensing, or other offer of any gaming device, cashless wagering system, mobile gaming system, or interactive gaming system for use or play in Arkansas;
6. (6) “Distributor” means a person who operates, carries on, conducts, or maintains any form of distribution;
7. (7) “Distributor of associated equipment” means any person that sells, offers to sell, leases, offers to lease, licenses, markets, offers, or otherwise offers associated equipment in Arkansas for use by licensees;
8. (8) “Equipment associated with interactive gaming” means any equipment or mechanical, electromechanical, or electronic contrivance, component, or machine used remotely or directly in connection with gaming or mobile gaming, any game, race book, or sports pool that would not otherwise be classified as a gaming device, including dice, playing cards, links which connect to progressive slot machines, equipment which affects the proper reporting of gross revenue, computerized systems of betting at a race book or sports pool, computerized systems for monitoring slot machines, and devices for weighing or counting money, or a computerized system for recordation of sales for use in an area subject to tax;
9. (9) “Game of chance” means a game in which randomness determines all outcomes of the game as determined over a period of continuous play;

10. (10)

    1. (A) “Electronic games of skill” means games played through any electronic device or machine that afford an opportunity for the exercise of skill or judgment when the outcome is not completely controlled by chance alone;
    2. (B) “Electronic games of skill” does not include pari-mutuel wagering on horse racing and greyhound racing governed by the Arkansas Horse Racing Law, Arkansas Code § 23-110-101 et seq., or the Arkansas Greyhound Racing Law, Arkansas Code § 23-111-101 et seq., whether pari-mutuel wagering on live racing, simulcast racing, or races conducted in the past and rebroadcast by electronic means;
11. (11) “Game outcome” means the final result of the wager;

12. (12)

    1. (A) “Game variation” means a change or alteration in a game or gambling game that affects the manner or mode of play of an approved game.
    2. (B) This includes, but is not limited to, the addition or removal of wagering opportunities or a change in the theoretical hold percentage of the game;
13. (13) “Gaming session” means the period of time commencing when a player initiates a game or series of games on a gaming device by committing a wager and ending at the time of a final game outcome for that game or series of games;
14. (14) “Hybrid game” means a game in which a combination of the skill of the player and chance affects the outcome of the game as determined over a period of continuous play;

15. (15) “Identifier” means any specific and verifiable fact concerning a player or group of players which is based upon objective criteria relating to the player or group of players, including, without limitation:

    1. (A) The frequency, value, or extent of predefined commercial activity;
    2. (B) The subscription to or enrollment in particular services;
    3. (C) The use of a particular technology concurrent with the play of a gaming device;
    4. (D) The skill of the player;
    5. (E) The skill of the player relative to the skill of any other player participating in the same game;
    6. (F) The degree of skill required by the game; or
    7. (G) Any combination of subdivisions (15)(A) – (F) of this section, inclusive;

16. (16) “Independent contractor” means any person who:

    1. (A) Is not an employee of a licensed manufacturer; and

    2. (B) Pursuant to an agreement with a licensed manufacturer:

       1. (i) Designs, develops, programs, produces, or composes a control program on behalf of the licensed manufacturer; or

       2. (ii)

          1. (a) (a) Designs, develops, produces, or composes software, source language, or executable code intended to be compiled into a control program by the licensed manufacturer.
          2. (b) (b) As used in this subpart, “licensed manufacturer” includes any affiliate that is owned or controlled by or under common control with the licensee;
17. (17) “Independent testing laboratory” means a private laboratory that is registered by the Arkansas Racing Commission to inspect and certify games, gaming devices, associated equipment, cashless wagering systems, intercasino-linked systems, mobile gaming systems, or interactive gaming systems, and any components thereof and modifications thereto, and to perform such other services as the commission may request;

18. (18)

    1. (A) “Intercasino-linked system” means a network of electronically interfaced similar games which are located at two (2) or more licensed gaming establishments that are linked to:

       1. (i) Conduct gaming activities, contests, or tournaments; or
       2. (ii) Facilitate participation in a common progressive prize system, and the collective hardware, software, communications technology, and other associated equipment used in such system to link and monitor games or devices located at two (2) or more licensed gaming establishments, including any associated equipment used to operate a multijurisdictional progressive prize system.
    2. (B) Systems that solely record a patron’s wagering activity among affiliated properties are not intercasino-linked systems.
    3. (C) The term “multijurisdictional progressive prize system” means the collection of hardware, software, communications technology, and other associated equipment used to link and monitor progressive slot machines or other games among licensed gaming establishments in this state participating in an intercasino-linked system and one (1) or more lawfully operated gaming locations in other jurisdictions that participate in a similar system for the purpose of participation in a common progressive prize system;

19. (19)

    1. (A) “Intercasino-linked system modification” means a change or alteration to an intercasino-linked system made by an operator who has been previously approved by the Arkansas Racing Commission to operate that system.

    2. (B) With regard to intercasino-linked systems that link progressive payout schedules, the term includes, but is not limited to a:

       1. (i) Change in a system name or theme; or
       2. (ii) Change in gaming device denomination;

20. (20)

    1. (A) “Interactive gaming system” is a gaming device and means the collective hardware, software, communications technology, and proprietary hardware and software specifically designed or modified for, and intended for use in, the conduct of interactive gaming.
    2. (B) The core components of an interactive gaming system, including servers and databases running the games on the interactive gaming system and storing game and interactive gaming account information, must be located in the State of Arkansas except as otherwise permitted by the Arkansas Racing Commission;

21. (21) “Manufacture” means:

    1. (A) To manufacture, produce, program, design, control the design of or make modifications to a gaming device, associated equipment, cashless wagering system, mobile gaming system, or interactive gaming system for use or play in Arkansas;
    2. (B) To direct, control, or assume responsibility for the methods and processes used to design, develop, program, assemble, produce, fabricate, compose, and combine the components and other tangible objects of any gaming device, associated equipment, cashless wagering system, mobile gaming system, or interactive gaming system for use or play in Arkansas; or
    3. (C) To assemble, or control the assembly of, a gaming device, associated equipment, cashless wagering system, mobile gaming system, or interactive gaming system for use or play in Arkansas;
22. (22) “Manufacturer” means a person who operates, carries on, conducts, or maintains any form of manufacture;
23. (23) “Manufacturer of associated equipment” means any person that manufactures, assembles, or produces any associated equipment, including intercasino-linked systems, for use in Arkansas by licensees;
24. (24) “Manufacturer of equipment associated with interactive gaming” means any person that manufactures, assembles, or produces any equipment associated with interactive gaming;
25. (25) “Mobile gaming system” or “system” means a system that allows for the conduct of games through mobile communications devices operated solely within a licensed gaming establishment by the use of communications technology that allows a patron to bet or wager, and corresponding information related to the display of the game, gaming outcomes, or other similar;
26. (26) “Mobile gaming system modification” means any change or alteration to a mobile gaming system made by a manufacturer from its approved configuration;

27. (27)

    1. (A) “Modification” means a change or alteration in a gaming device previously approved by the Arkansas Racing Commission for use or play in Arkansas that affects the manner or mode of play of the device.
    2. (B) The term includes a change to control programs and, except as provided in subdivisions (27)(B)(iii) and (iv) of this section, in the theoretical hold percentage.

    3. (C) The term does not include:

       1. (i) Replacement of one (1) component with another, preapproved component;
       2. (ii) The rebuilding of a previously approved device with preapproved components;
       3. (iii) A change in the theoretical hold percentage of a mechanical or electromechanical device, provided that the device as changed meets the standards of this part;
       4. (iv) A change in the theoretical hold percentage of an electronic device which is the result of a top award jackpot or bonus jackpot payment which is paid directly by an attendant and which is not accounted for by the device; or
       5. (v) A change to software used for artistic attributes of a game, including graphics, sound, and animation providing entertainment unless such elements are material to game play because they are necessary for the player to understand the game or game outcome;
28. (28) “Online slot metering system” means the collective hardware, software, and other associated equipment used to monitor, accumulate, and record meter information from gaming devices within a licensed establishment;

29. (29) “Operator” means, except as otherwise provided, any person or entity holding a license to operate:

    1. (A) An intercasino-linked system or mobile gaming system in Arkansas;
    2. (B) A casino gaming operation that operates an intercasino-linked system of affiliates; or
    3. (C) An intercasino-linked system under subdivisions (29)(A) and (B) of this section which system also is linked to or otherwise incorporates a multijurisdictional progressive prize system;
30. (30) “Private residence” means a noncommercial structure used by a natural person as a place of abode and which is not used for a commercial purpose;
31. (31) “Proprietary hardware and software” means hardware or software specifically designed for use in a gaming device including a mobile gaming system and interactive gaming system;
32. (32) “Randomness” means the observed unpredictability and absence of pattern in a set of elements or events that have definite probabilities of occurrence;

33. (33)

    1. (A) “Rules of play” means those features of a game necessary for a reasonable person to understand how a game is played including, but not limited to, the following:

       1. (i) Help screens;
       2. (ii) Award cards; and
       3. (iii) Payline information.
    2. (B) The term does not include those inherent features of a game that a reasonable person should know or understand prior to initiating the game;
34. (34) “Skill” means the knowledge, dexterity, or any other ability or expertise of a natural person; and
35. (35) “Theme” means a concept, subject matter, and methodology of design.