(a) As used in this section:

1. (1) “Base amount” means the amount of a progressive payoff schedule initially offered before it increases;
2. (2) “Commission” means the Arkansas Racing Commission or the commission’s designee;
3. (3) “Incremental amount” means the difference between the amount of a progressive payoff schedule and its base amount; and
4. (4) “Progressive payoff schedule” means a game or machine payoff schedule, including those associated with contests, tournaments, or promotions, that increases automatically over time or as the game or games or machine or machines are played.

(b)

1. (1) The amount of a progressive payoff schedule shall be conspicuously displayed at or near the games or machines to which the payoff schedule applies.
2. (2) Each licensee shall record the base amount of each progressive payoff schedule when first exposed for play and subsequent to each payoff.
3. (3) At least once a month, each licensee shall log the amount of each progressive payoff schedule at the licensee’s establishment except for those that can be paid directly from a slot machine’s hopper or those offered in conjunction with an intercasino-linked system.
4. (4) Explanations for reading decreases shall be maintained with the progressive logs.
5. (5) When the reduction is attributable to a payoff, the licensee shall record the payoff form number on the log or have the number reasonably available.

(d)

1. (1) A licensee may limit a progressive payoff schedule to an amount that is equal to or greater than the amount of the payoff schedule when the limit is imposed.
2. (2) The licensee shall post a conspicuous notice of the limit at or near the game or games or machine or machines to which the limit applies.

(e) A licensee shall not reduce the amount of a progressive payoff schedule or otherwise eliminate a progressive payoff schedule unless:

1. (1) A player wins the progressive payoff schedule;
2. (2) The licensee adjusts the progressive payoff schedule to correct a malfunction or to prevent the display of an amount greater than a limit imposed pursuant to subsection (d) of this section, and the licensee documents the adjustment and the reasons for it;

3. (3) The licensee distributes the entire incremental amount to another progressive payoff schedule on similar game or games or machine or machines at the licensee’s establishment or any other contest, tournament, or promotion and:

   1. (A) The licensee documents the distribution;
   2. (B) Any game or slot machine offering the payoff schedule to which the licensee distributes the incremental amount does not require that more money be played on a single play to win the payoff schedule than the game or slot machine from which the incremental amount is distributed unless the incremental amount distributed is increased in proportion to the increase in the amount of the wager required to win the payoff schedule;
   3. (C) If from a slot machine, any slot machine offering the payoff schedule to which the incremental amount is distributed complies with the minimum theoretical payout requirement of this part; and
   4. (D) The distribution is completed within one hundred eighty (180) days after the progressive payoff schedule is removed from play or within such longer period as the commission may for good cause approve;
4. (4) For games other than slot machines, the incremental amount may be distributed within one hundred eighty (180) days of removal through a concluding contest, tournament, or promotion and the contest, tournament, or promotion is conducted with a game or games similar to the game or games from which the amounts are distributed; or
5. (5) The commission, upon a showing of exceptional circumstances, approves a reduction, elimination, distribution, or procedure not otherwise described in this subsection, which approval is confirmed in writing.