99-01.3-12.1-02. Use and requirements of an organization.

1. An organization may operate a prize board dispensing device if the organization's employee is on duty and may have an authorized alcoholic beverage establishment employee redeem a winning pull tab and pay a cash or merchandise prize if the organization's employee is or is not on duty.

2. If a distributor's or manufacturer's security seal is broken on a deal's container before the deal is used, an organization shall return the deal to the distributor.

3. The following rules must be posted or made available to players in the area where prize board dispensing device activity is conducted. If made available to players, the rules must be in the form of a handout that is easily visible to the players and may not be a copy of the gaming law and rules:

1. a. Restricting access to or delaying using credits on a device is prohibited;

2. b. A winning pull tab must be redeemed within fifteen minutes;

3. c. A pull tab may not be redeemed if it has been taken from the gaming area;

4. d. If a person knowingly solicits, provides, or receives any inside information, by any person, by any means, or knowingly uses a fraudulent scheme or technique to cheat or skim involving pull tabs, regardless of the amount gained, the offense is a class C felony;

5. e. To the best of the organization's knowledge, a prize remaining on a board relates to a winning pull tab that has not been redeemed; and

6. f. If a player attempts to falsify or falsifies a record of win, the prize is forfeited.1. 4. An organization shall maintain custody of all keys to a device.

2. 5. An organization shall withdraw currency from a device within a seven-calendar-day interim period.

3. 6. An organization shall have a rental agreement conforming to section 99-01.3-02-06.

4. 7. An organization shall maintain an access log prescribed by the attorney general. A person who accesses a device for any reason shall record the access and initial the log. When a person does a test vend which affects the accounting meters or a test validation of currency, the person shall record the value of pull tabs and currency validated. An organization shall retain the log in a device during the quarter of activity.

5. 8. An organization may provide an alcoholic beverage establishment with a temporary loan to enable an alcoholic beverage establishment employee to redeem winning pull tabs and pay prize board cash prizes. The loan and any increase must be made by check payable to the alcoholic beverage establishment and be interest-free. An organization may not access, count, or take custody of the loaned money. The duration of the loan must be until an organization discontinues conducting prize boards at a site through a device. As an option an organization may supply the alcoholic beverage establishment with a cash loan amount equal to the total amount of cash prizes on a prize board. If this option is used, all remaining cash from unredeemed winning pull tabs and the redeemed winning pull tabs must be returned to the organization following final distribution of the seal prize. When the alcoholic beverage establishment repays the loan, the organization shall deposit the funds in its gaming account and the deposit slip must reference the site, source of funds, and amount. The amount reimbursed to an alcoholic beverage establishment must equal the value of redeemed winning pull tabs which the alcoholic beverage establishment provides an organization. An organization employee may not use an alcoholic beverage establishment's cash on hand for redeeming a winning pull tab.

6. 9. An organization may not provide an independent service technician a key to access a device regardless of where the device is leased.

7. 10. If a theft of currency occurs, an organization shall record the currency and pull-tab accounting meters or print a cash withdrawal report and audit the game. The organization shall provide a copy of all of this information to a local law enforcement agency and the attorney general.

8. 11. When a prize board is closed:

1. a. The prize board must be reported on a tax return for the site at which it was closed;

b. An employee shall buy back all remaining redeemed winning pull tabs from an alcoholic beverage establishment; c. If the game has unsold pull tabs, these may not be put back into play; or d. If a coin is not awarded, an organization shall determine the prizes to report on a tax return by prorating the total cost of the coins, according to their face value, of the coins that were awarded to the total face value of all the coins. An organization may use an unawarded prize in another game, sell the prize, or deposit the coin in the gaming account.

12. An organization or employee may not: a. Modify the assembly or operational functions of a device; b. Use or continue to conduct a deal of pull tabs after being notified by a distributor of a ban or recall of the deal; c. Designate a pull tab to entitle a player who buys it with a prize provided by an alcoholic beverage establishment or distributor; or d. Intentionally test vend currency or pull tabs to synchronize nonresettable accounting meters.

13. A prize board dispensing device must be conducted and played as follows: a. An employee shall place all pull tabs from a deal evenly among the columns used. b. If used, column sold out indicators must be designated on the last pull tab of each column when the deal is placed into the device. Each column sold out indicator for a deal must be of equal value. c. An organization may transfer a device from a site to another site or rotate a device among sites. If an organization discontinues gaming at a site, it may close a prize board or transfer the prize board to a device at another site. If a prize board is in the process of being conducted through a device, an organization may not transfer the prize board to a jar bar.

History: Effective July 1, 2010; amended effective April 1, 2016; July 1, 2018; January 1, 2023; July 1, 2026.

General Authority: NDCC 53-06.1-01.1

Law Implemented: NDCC 53-06.1-01.1, 53-06.1-06