Part 355. Rules for Franchise Holders Operating Electronic Games of Skill

23 CAR § 355-1936. CSS client terminal. (a) This terminal is used by the player to place wagers, play the game or games on offer, and win prizes (when applicable). (b) The player terminal may receive game play information from the game server in the case of a system-based game sy…

23 CAR § 355-1937. Software activation. Prior to execution of updated software, the client terminal must be in an idle state for a time frame determined by the Arkansas Racing Commission and the software is successfully authenticated as defined within Arkansas rules.

23 CAR § 355-2001. Kiosks. (a) Kiosks are only to be used for the purpose of accepting, validating, and providing payment for tickets inserted. (b) Kiosks may incorporate other functions that would not have any effect on the integrity of gaming, with the exception of automated te…

23 CAR § 355-2002. Error conditions. (a)(1) Kiosks must be capable of detecting and displaying the following error conditions. (2) The error condition must illuminate the tower light or sound an audible alarm. (3) This requirement may be substituted for a notification system that…

23 CAR § 355-2003. Maximum redeemable value. There shall be a maximum ticket value that can be paid by a kiosk or have available the ability to select the maximum amount.

23 CAR § 355-2004. Metering. (a) Metering information is maintained in critical memory at the redemption kiosk. (b) The redemption kiosk must maintain the following meters, which can be by denomination: (1)(A) A total in meter that accumulates the total value of all bills and tic…

23 CAR § 355-2005. Clearing meters. The redemption kiosk must not have a mechanism whereby an unauthorized user can cause the loss of stored accounting meter information.

23 CAR § 355-2006. Required logs. (a) Logs must be maintained in critical memory or on a paper log (see subsection (b) of this section) housed within the redemption kiosk that consists of the following: (1) Voucher in event log which must properly log the following information ab…

23 CAR § 355-2007. Ticket acceptance. (a) Tickets may only be accepted when the kiosk is communicating with the system. (b) Tickets inserted into a kiosk must be rejected when the system link is down and payment shall only be made when the ticket is stacked within the bill stacke…

23 CAR § 355-2008. Wireless networks. (a) This section shall address security precautions and minimum recommendations that govern wireless networks. (b) Wireless Ethernet connections. (1) Should a wireless Ethernet communication solution be adopted, then additional security preca…

23 CAR § 355-2009. Security considerations for WLAN used with a wired LAN. The wired LAN (local area network) must be isolated from the wireless network through the layering of additional network security methods.

23 CAR § 355-201. Authorized facilities. The operation of electronic games of skill is permitted at licensed pari-mutuel racetracks in the State of Arkansas in accordance with Acts 2005, No. 1151, and this part.

23 CAR § 355-202. Persons authorized to conduct the operation of electronic games of skill. (a)(1) No one other than the franchise holder and its employees (and patrons playing the game) may operate the electronic games of skill. (2) The games may not be located in a place other …

23 CAR § 355-301. Restriction of doing business. No entity shall manufacture, sell or lease, distribute, repair or provide EGS maintenance services of EGS equipment to the franchise holder’s EGS operations in the State of Arkansas unless it holds a current service industry licens…

23 CAR § 355-302. Determining the need for a service industry license. Any entity which satisfies one (1) or more of the following criteria shall, unless it is otherwise set forth in this part, obtain a service industry license to carry out business with a franchise holder in the…

23 CAR § 355-303. General parameters of granting a service industry license. An applicant for a service industry license shall submit to the Arkansas Racing Commission the information, documentation, and guarantees necessary to establish through clear and convincing evidence: (1)…

23 CAR § 355-304. Initial application for a service industry license. (a) The initial application for a service industry license shall consist of an original and a copy of the following documents: (1) The Arkansas Racing Commission business entity disclosure form for Service Indu…

23 CAR § 355-305. Duration of service industry license. (a) Every service industry license shall be issued by the Arkansas Racing Commission for a period of three (3) years. (b) Notwithstanding the provisions of subsection (a) of this section, the commission may, as it may deem n…

23 CAR § 355-306. Service industry license renewal application. (a) Every service industry license renewal application shall be filed no later than ninety (90) days prior to the expiration date of said license. (b) The service industry license renewal application shall include a …

23 CAR § 355-307. Service industry license fees. (a)(1) The fees to be paid for the initial or renewal application for a service industry license shall be determined by the Arkansas Racing Commission, provided that the application fee shall not be more than one thousand dollars (…

23 CAR § 355-308. Service industry disqualification criteria. (a) The Arkansas Racing Commission may deny a service industry license to any applicant which, in the opinion of the commission: (1) Has not proved through clear and convincing evidence that the applicant and any of th…

23 CAR § 355-309. Qualification requirements — Service industry license. (a) The Arkansas Racing Commission shall not issue a service industry license to any entity unless the applicant has established the individual qualifications of each one of the following entities or persons…

23 CAR § 355-310. Qualifying as a person related with a service industry license. (a) Any natural person who is required to be licensed, because of his or her relationship with a service industry license applicant, shall provide to the Arkansas Racing Commission the information, …

23 CAR § 355-311. Investigations — Supplementary approval of change. (a) The Arkansas Racing Commission or its representatives may, at its discretion, conduct any investigation with respect to an applicant, or any person related with an applicant who it deems pertinent, either at…

23 CAR § 355-312. Suspension, denial of renewal, or revocation of a service industry license. (a) Any of the following reasons shall be considered sufficient cause for the suspension, denial of renewal, or revocation of a service industry license: (1) Violation of any provision o…

23 CAR § 355-313. Commercial transaction in the absence of a service industry license. (a) The Arkansas Racing Commission, at its discretion, may permit any service industry license applicant to carry out a commercial transaction with a franchise holder before said service indust…

23 CAR § 355-314. Exemption to service industry license. (a) The Arkansas Racing Commission may exempt an entity from the requirement of obtaining a service industry license if the commission determines that said entity is not operating its business in a regular and continuous ma…

23 CAR § 355-315. Records requirements for service industry licensee. (a) Any service industry entity authorized by the Arkansas Racing Commission shall maintain in a place secure against robbery, loss or destruction, the records corresponding to the business operations, which sh…

23 CAR § 355-316. Business entity disclosure for service applicant forms. Arkansas Racing Commission business entity disclosure form shall be completed in the format provided by the commission.

23 CAR § 355-317. Personal history disclosure form. The Arkansas Racing Commission may require a commission personal history disclosure form from all those natural persons required under 23 CAR § 355-309, to fill out the same.

23 CAR § 355-318. Obligation for payment of fees — No refund of fees paid. (a) Any obligation for payment of fees arising from these regulations shall be paid in full to the Arkansas Racing Commission, even when the entity withdraws its application for a service industry license …

23 CAR § 355-319. Responsibility of the franchise holder. (a) Any franchise holder that will be receiving a service shall be responsible for confirming that the entity with which it will carry out the business holds a service industry license or has obtained a special authorizati…

23 CAR § 355-320. Transitory provisions. Any entity which manufactures, sells or leases, distributes, or repairs or provides maintenance services or any other service to a franchise holder with respect to EGS shall comply with the provisions of this part beginning on the effectiv…

23 CAR § 355-321. Vendor’s list. (a)(1) The Arkansas Racing Commission or its representatives shall also maintain a prohibited vendor list, which shall include all vendors who are prohibited from conducting business with a franchise holder. (2) The commission shall provide this l…

23 CAR § 355-322. Temporary service industry licensing. (a) If an applicant for a manufacturer, distributor, or entity providing services to a franchise holder holds a similar license in another jurisdiction in the United States, the applicant may submit a written request with it…

23 CAR § 355-323. Independent EGS testing laboratory license. (a) Testing lab license. (1) All EGS and associated equipment must be tested by a laboratory licensed by the Arkansas Racing Commission to ensure that the games and equipment comply with Arkansas law and the rules of t…

23 CAR § 355-401. Key employee and general employee license. (a)(1) Except in cases of emergency and/or unavoidable temporary incidental entry, no person may work or provide services to the EGS operations of a franchise holder in the State of Arkansas unless the person has a curr…

23 CAR § 355-402. Initial application for an employee license. (a) Every initial application for an employee license shall include: (1) A duly completed original and a photocopy of the Arkansas Racing Commission personal history disclosure form in accordance with 23 CAR § 355-317…

23 CAR § 355-403. Persons or entities who must obtain a key employee license. (a) Except as otherwise approved by the Arkansas Racing Commission, any person or entity who: (1) Carries out or will carry out, or has or will have any of the functions mentioned in 23 CAR § 355-404 sh…

23 CAR § 355-404. Key employee job functions. Any person or entity who is going to be employed by the franchise holder in a position which includes any of the following responsibilities or powers, independently of the title, shall obtain a key employee license where they have aut…

23 CAR § 355-405. General employee job functions. (a) Any natural person who is going to be employed by the franchise holder in a position which includes any of the following responsibilities related to the operations of the franchise holder, or whose responsibilities predominant…

23 CAR § 355-406. Scope and applicability of employee licensing of natural persons. (a) In determining whether a natural person who provides services to franchise holders is an employee of the franchise holder for purposes of this part, it shall be presumed that such person is an…

23 CAR § 355-407. General criteria for granting of a key employee license. (a) Each applicant for an employee license shall provide the Arkansas Racing Commission with the necessary information, documentation, and guarantees which establish through clear and convincing evidence t…

23 CAR § 355-408. Personal information required for a key employee license. Every applicant for a key employee license who will work in a managerial or supervision position for a franchise holder of the type described in 23 CAR § 355-404 shall submit: (1) Any affiliation of appli…

23 CAR § 355-409. Processing of the initial application for a key employee license. (a)(1) The Arkansas Racing Commission shall determine if the initial application complies with all the requirements provided in this part and if any deficiency is found, it shall notify the applic…

23 CAR § 355-410. Duration of the employee license. (a) Every employee license shall be issued by the Arkansas Racing Commission for a period of up to one (1) year. (b) Notwithstanding the provisions of subsection (a) of this section, the commission may, as it deems necessary: (1…

23 CAR § 355-411. Date of filing for renewal of a key or general employee license. (a) Any holder of an employee license shall renew his or her license by filing with the Arkansas Racing Commission an application for renewal of his or her employee license. (b) The completed renew…