BASIS AND PURPOSE FOR RULE 1 
The purpose of Rule 1 is to present definitions of various terms used throughout the rules of the Colorado Limited Gaming Control Commission so that the rules can be uniformly applied and understood. The statutory basis for Rule 1 is found in sections 12-47.1-201, C.R.S., 12-47.1-203, C.R.S., and 12-47.1-302, C.R.S. 
RULE 1      GENERAL RULES AND REGULATIONS
 (29)  	“Wager” means a sum of money, electronic promotional credits or thing of value risked on an uncertain occurrence. Credit and debit cards are not considered wagering instruments and cannot be used in conjunction with limited gaming.   Eff  11/30/2006

BASIS AND PURPOSE FOR RULE 12 
The purpose of Rule 12 is to establish a procedure for the testing and approval by the Commission of gaming devices and equipment, to establish requirements for the gaming devices and equipment to be used in limited gaming in Colorado, and to establish procedures for the storage of gaming devices and equipment in compliance with section 12-47.1-302 (2), C.R.S. The statutory basis for Rule 12 is found in sections 12-47.1-201, C.R.S., 12-47.1-203, C.R.S., 12-47.1-302, C.R.S., and 12-47.1-806, C.R.S.
47.1-1223 Meters.
 (2) 	All slot machines must have the following soft meters. These meters are displayed in dollars and cents.
 (m) 	Cashable Electronic Promotion In (CEP In). The slot machine must have a meter specifically labeled “Cashable Electronic Promotion In” that accumulates the total value of cashable credits electronically transferred to the slot machine from a promotional account by means of an external connection between the slot machine and a cashless wagering system an electronic promotional credit system. Eff  11/30/2007 
(n) 	Cashable Electronic Promotion Out (CEP Out). The slot machine must have a meter specifically labeled “Cashable Electronic Promotion Out” that accumulates the total value of cashable credits electronically transferred from the slot machine to a promotional account by means of an external connection between the slot machine and a cashless wagering system an electronic promotional credit system. Eff  11/30/2007
(o)  	Machine Paid External Bonus Payout. The machine must have a meter specifically labeled “Machine Paid External Bonus Payout” that accumulates the total value of additional amounts awarded as a result of an external bonusing system and paid by the slot machine.   Eff  11/30/2007
(p)  	Attendant Paid External Bonus Payout. The machine must have a meter specifically labeled “Attendant Paid External Bonus Payout” that accumulates the total value of amounts awarded as a result of an external bonusing system paid by an attendant.   Eff  11/30/2007
(q)  	Non-Cashable Electronic Promotion In (NCEP In).  The slot machine must have a meter specifically labeled “Non-Cashable Electronic promotion In” that accumulates the total value of non-cashable credits electronically transferred to the slot machine by means of an external connection between the slot machine and an electronic promotional credit system.   
(r)  	Non-Cashable Electronic Promotion Out (NCEP Out).  The slot machine must have a meter specifically labeled “Non-Cashable Electronic Promotion Out” that accumulates the total value of non-cashable credits electronically transferred from the slot machine  by means of an external connection between the slot machine and an electronic promotional credit system.
(qs) 	Such other meters as may be required by the Director. Eff  11/30/2007
47.1-1236 Error conditions-Automatic reset. 
Slot machines must be capable of detecting and displaying the following conditions, which must be automatically cleared by the slot machine upon initiation of a new play sequence: 
(1)  	Door Open. (47.1-1235 perm.09/30/97) 
(2)  	If communication is lost between a cashless system and slot machines interfaced to it, the slot machines or the system display devices must communicate this fact to patrons trying to access their accounts. (amend, perm. 03/30/02) 
(32) 	If a power loss or any door open condition occurs when accepting and escrowing a ticket while awaiting validation confirmation, the ticket should either maintain a valid status in the TITO system and be returned to the patron, or the appropriate automatic payment should be vended with the ticket being stacked in the note acceptor and redeemed on through the system after the error condition is cleared. 
47.1-1261 Specification for slot coupons. 
A slot coupon is an encoded coupon that is only issued by a licensee’s slot monitoring system to be redeemed at a slot machine, cage validation unit or kiosk.  Slot coupons must:
Slot coupons must:   
(1) 	Be the same dimensions as U.S. currency. 
(2) 	Have an expiration date. 
(3) 	Contain the printed name of the casino. 
(4) 	Be clearly labeled as a slot coupon. 
(5)  	Have a validation number, which must be printed on the leading edge of the ticket. The validation number must be unique to each slot coupon.  
(6) 	Have a secondary validation number, identical to the primary validation number, which must be printed on the body of the ticket. 
(7) 	Contain a coupon bar code generated with a unique algorithm. 
(8) 	Contain a description of any restrictions on the redemption of the coupon. 
(9) 	Be generated by a slot monitoring system approved by the Division.
(10) 	Contain the dollar value of the coupon printed both numerically and in text. 
(11) 	Contain a sequence number for all slot coupons printed for each specific promotion or event. 
(12) 	Be redeemable by being played or cashed out.
47.1-1283  Electronic promotional credit system definition.

“Electronic promotional credit system” (EPCS) means a system of components, hardware, software and communication technology that securely transmits credits to and from a slot device in the form of electronic promotional credits.  There are two types of promotional credits in the EPCS:  

(1)	Cashable electronic promotional credits are the total value of cashable credits electronically transferred to a slot machine by means of an external connection between the slot machine and the EPCS. These credits must be redeemable for cash by the patron.
(2) 	Non-cashable electronic promotional credits are the total value of non-cashable credits electronically transferred to or from the slot machine by means of an external connection between the slot machine and the EPCS. These credits are not redeemable for cash.
47.1-1284 Electronic promotional control program requirement.
Slot machines linked to an EPCS must have the ability to recall the last 25 transactions received from and the last 25 transactions transmitted to the EPCS.  The transaction logs must include the transaction value, and time and date.  alternatively, there can be a single 100-event log; the single event log must have the type of transaction (upload/download) including restrictions (cashable/non-cashable), transaction value, time and date.
47.1-1285 Electronic promotional credit system standards.
(1)  	Communication between slot machines, other devices and EPCS must be secured in a manner approved by the Division.  EPCS access controls (individual login and password) must be used to secure all functions.  All system users must be granted requisite permission to a function(s) on any EPCS ensuring access controls provide adequate segregation of duties. 
(2)  	The communication process used between gaming devices and the EPCS must be robust and stable enough to secure all transactions such that all events can be identified and logged for subsequent audit and reconciliation.    
(3)  	In addition to all other requirements of this section, the licensee must comply with the following standards:
(a)	All winning wagers, including a winning wager made with non-cashable electronic promotional credits, shall be paid with cashable credits;    
(b)	The cashable and non-cashable status of promotional credits must be maintained.   Cashable promotional credits must never be converted to non-cashable promotional credits;
(c)	All cashable electronic promotional credits must be paid from the slot machine.  Cashable electronic promotional credits cannot be uploaded back to the EPCS;
(d)	The EPCS must prompt the patron to enter a unique identifier known as a Personal Identification Number (PIN) prior to downloading electronic promotional credits;
(e)	Patrons must access their promotional credits utilizing their magnetic strip card and PIN;
(f)	Any disclaimers and rules for the promotional credits must be clearly identified or displayed to the patron;
(g)	If any communication errors are present, there must be a message to notify the patron;
(h)	The EPCS must prohibit direct wagering at a slot machine through the use of a credit card or debit card;
(i)	The EPCS must employ network clock synchronization technology; and
(j)	The EPCS must maintain records of each download/upload and adjustment of electronic promotional credits.  

47.1-1286 Establishing electronic promotion meters. 
to allow the direct electronic transfer of promotional credits to a slot machine, transfers must be recorded using the electronic promotion metering methodology as defined in 47.1-1223.
47.1-1287 Personal identification number (PIN).
EPCS allow patrons to download electronic promotional credits to a slot machine from the EPCS through the use of a unique magnetic strip card at the slot machine.  The licensee issues a patron a unique magnetic strip card.  The patron establishes his/her PIN.
For security and verification purposes, when establishing a pin, the EPCS must allow the patron to independently and confidentially enter a secure PIN a minimum of two times; the numbers must successfully match each time entered.  
EPCS approved for use at the licensee’s facility must allow:
(1)  	No more than three (3) consecutive failed PIN entry attempts prior to disabling access to electronic promotional credits;
(2)  	The entering of a PIN that is encrypted and masked from any view; and
(3)  	All patrons to have the ability to change or authorize the change of their PIN which would include resetting the PIN.
47.1-1288 Patron online access.

If online access is provided for patrons, it must be segregated from direct access to the EPCS or slot monitoring system. and/or logical restrictions must exist to facilitate secure access.
47.1-1289   Communication.
The following types of messages must be displayed to patrons on either the slot machine or a system display attached to the slot machine, to indicate the reason(s) for transaction failure or unintended results:
(1)  	Invalid PIN – can prompt for re-entry, but must not allow access until the correct PIN is provided.  The EPCS must allow no more than three (3) consecutive failed access attempts before the system disables access to the electronic promotional credits. 
(2)  	Communication Failure – must result if the EPCS or any interfaced slot machine loses communication with each other.
(3)  	Card Unknown/Locked – must display a message indicating the EPCS is unavailable.  
(4)  	Time-out must display a message if after a specified timeframe from the time the patron has successfully input his/her PIN, he/she does not download any electronic promotional credits.  In lieu of a message, the display may revert to a previous menu requiring the patron to re-input his/her PIN prior to being able to download electronic promotional credits.
Slot machines interfaced to an EPCS must, at the slot machine level, display a relevant informational message whenever any patron-initiated transaction occurs.   During the transaction, the slot machine must possess bi-directional communication and must “lock” until the transaction is completed and the transfer is confirmed. 

47.1-1290 Promotional play without an established membership.
An EPCS may be used by licensees to issue promotional credits to patrons who may not have an established membership ID on the EPCS.  In this case, a unique PIN is not required. 
47.1-1291 Control system operations.
At a minimum, the licensee must ensure the EPCS performs the following functions:
(1)  		Validate the identity of the device(s) from which a transmission is received;
(2)  		Monitor data for complete and accurate transmission; 
(3)  		Detect the presence of corrupt or lost data packets; and 

(4)           As necessary, reject the transmission.  
47.1-1292 Transfer of electronic promotional credits.
All non-cashable credits must be wagered before any cashable credits are committed.   If non-cashable and cashable credits are co-mingled on the credit meter of the slot machine, the slot machine must wager the credits from the non-cashable credit balance first.  
All cashable credits on a slot machine must be played or paid out at the slot machine.  

BASIS AND PURPOSE FOR RULE 16 
The purpose of Rule 16 is to establish accounting and internal control procedures for licensees which will include various report and statement requirements for reporting and paying gaming taxes and fees, records of ownership requirements, standard financial and audited financial statements, procedures for handling cash and meeting minimum bankroll requirements, adjusted gross proceeds computations, and record retention requirements. The statutory basis for these requirements is found in sections 12-47.1-102, C.R.S., 12-47.1-201, C.R.S., 12-47.1-203, C.R.S., 12-47.1-302, C.R.S., 12-47.1-602, C.R.S., and 12-47.1-806, C.R.S.
47.1-1603 Adjusted gross proceeds computations. 
 (2)  	For each slot machine, adjusted gross proceeds equals drop plus + tickets plus +  slot coupons dropped + cashable electronic promotion in + non-cashable electronic promotion in less -  fills to the machine, less -  hand pay jackpot payouts, - hand pay external bonus payouts and accumulated credits, - non-cashable electronic promotion out, and less -  tickets redeemed. The initial hopper load is not a fill and does not affect adjusted gross proceeds. The difference between the initial hopper load (or the amount in the hopper at the time of the previous hopper count if the coins/tokens counted were returned to the hopper) and the total amount that is in the hopper at the time the hopper is currently counted must be adjusted accordingly as additional revenues or a credit adjustment when calculating adjusted gross proceeds. This amount is reported on the monthly gaming tax return for the month in which the hopper count was conducted, and is reflected in the hopper adjustment column for the corresponding denomination. Hoppers must also be counted and the corresponding adjustment reflected on the gaming tax returns at other times as specified in the internal control minimum procedures. If a licensee does not make or makes inaccurate additions or subtractions when calculating adjusted gross proceeds, the Division may compute an estimated total amount in the slot machine hoppers and may make reasonable adjustments to adjusted gross proceeds during the course of an audit, review, or other examination procedures.