36.05.02.11

.11 Chips and Plaques—Receipt, Inventory, Security, Storage, and Destruction.

A. Receipt.

(1) A shipment of gaming chips or plaques that is received from a manufacturer or supplier shall be unloaded and transported to a secure area, which is covered by the facility operator’s surveillance system, by at least two employees of the facility operator.

(2) The chips or plaques shall then be opened and checked by at least two employees, who shall promptly report to a Commission compliance representative any deviation between the invoice accompanying the shipment of gaming chips or plaques and the actual chips or plaques received, or any defects found in the chips or plaques.

(3) The functions required under §A(1) and (2) of this regulation shall be performed by at least the following employees of the facility operator:

(a) A supervisor from the accounting department; and

(b) An employee from the security department.

B. Inventory.

(1) After a shipment of gaming chips or plaques is checked as required under §A of this regulation, the employees identified in §A(3) of this regulation shall record, in a chip inventory ledger, the:

(a) Denomination of the value chips and plaques received;

(b) Number of each denomination;

(c) Serial numbers of the value chips and plaques received;

(d) For any roulette chips received, the number and description of the roulette chips received;

(e) Date of the receipt;

(f) Signatures and license numbers of the employees who checked the chips and plaques.

(2) If the value chips or roulette chips are not to be immediately put into active use, the chip inventory ledger must also identify the storage location of the chips.

C. Storage.

(1) A gaming chip or plaque not in active use shall be stored in:

(a) A vault located in the main bank;

(b) Locked cabinets in the main cage; or

(c) Another restricted storage area approved in advance by the Commission.

(2) A gaming chip or plaque may not be stored in the same storage area as dice, cards, pai gow tiles or any other table game equipment.

(3) When a gaming chip or plaque is removed from or returned to an approved storage area, at least the two employees identified in §A(3) of this regulation shall be present and ensure that the chip inventory ledger contains the following information:

(a) Date;

(b) Signatures and license numbers of the employees supervising the transaction;

(c) Quantity;

(d) If applicable, the serial numbers and dollar amounts for each denomination of value chip or plaque;

(e) Number and description of the roulette chip;

(f) Specific storage area being entered; and

(g) Reason for the entry into the storage area.

D. At the end of each gaming day, a facility operator shall compute and record the unredeemed liability for each denomination of value chip and plaque according to procedures specified in the facility operator’s internal controls.

E. Inventory.

(1) A facility operator shall inventory all sets of value chips, roulette chips and plaques in its possession and record the result of the inventory in the chip inventory ledger.

(2) The inventory required under §E(1) of this regulation shall be conducted at least once every month for value chips and plaques and at least once every 3 months for roulette chips.

(3) If a facility operator’s inventory procedures incorporate the sealing of the locked compartment containing the facility’s value chips, roulette chips, and plaques not in active use, a physical inventory of value chips, roulette chips, and plaques not in active use is required to be conducted annually.

(4) A facility operator shall include in its internal controls the procedures to be utilized to inventory value chips, roulette chips, and plaques.

F. Destruction.

(1) At least 5 days prior to the destruction of a gaming chip or plaque, a facility operator shall notify a Commission compliance representative of the:

(a) Date and the location at which the destruction will be performed;

(b) Denomination, number, and when applicable, the serial number and amount of value chips or plaques to be destroyed;

(c) Description and number of roulette chips to be destroyed; and

(d) Detailed explanation of the method of destruction.

(2) The destruction of a gaming chip or plaque shall be carried out in the presence of at least the two employees identified in §A(3) of this regulation.

(3) The facility operator shall record in the chip inventory ledger the names and license numbers of all employees and nonemployees involved in each destruction, and:

(a) The denomination, quantity, total value, and serial number, if applicable, of all value chips or plaques destroyed;

(b) The description and number of roulette chips destroyed;

(c) The signatures and license numbers of the individuals who carried out the destruction; and

(d) The date and location where the destruction took place.

G. A facility operator shall ensure that at all times there is adequate security for all gaming chips and plaques in the facility operator’s possession.