36.05.03.11

.11 Match Play Coupons and Direct Bet Coupons.

A. A facility operator may use Match Play Coupons and Direct Bet Coupons.

B. A coupon may not be issued by a facility operator or used in a facility until:

(1) The design specifications of the proposed coupon are submitted to and approved by the Commission; and

(2) A system of internal procedures and administrative and accounting controls governing the inventory, distribution and redemption of the coupon is submitted to and approved by the Commission as part of the facility operatorís internal controls.

C. A coupon issued by a facility operator shall contain at least:

(1) The name or logo of the facility operator;

(2) The value of the coupon, which can be identified when viewing the coupon through the facility operatorís surveillance system;

(3) A sequential serial number;

(4) Any restrictions regarding redemption, including the type of game or wager on which the coupon may be used; and

(5) The expiration date of the coupon.

D. Match Play Coupons shall contain an area designated for the placement thereon of the required gaming chips that does not obscure the visibility of the denomination of the coupon.

E. Administration of Coupon Program.

(1) The accounting department and the marketing department, or other department as specified in the facility operatorís internal controls, shall be responsible for administering the coupon program.

(2) The marketing department shall be responsible for distributing the coupon to a player.

(3) The accounting department shall be responsible for maintaining the coupon ledger and administering the coupon accounting procedures set forth in §N of this regulation.

F. A shipment of coupons received from a manufacturer or contractor, or those coupons produced by the facility operator, in accordance with §Q of this regulation shall be opened and examined by at least one member of the accounting department and one member of the marketing department, who shall report any deviation between the invoice accompanying the coupon and the actual coupon received to a supervisor from the accounting department.

G. After checking a coupon received from a manufacturer or contractor, or produced by the facility operator, an accounting department supervisor shall record the following information in the coupon ledger:

(1) The date a coupon was received;

(2) The quantity and denomination of coupons received;

(3) The beginning and ending serial number of the coupons received; and

(4) The name, signature and license number of the individuals who checked the coupons.

H. A marketing department supervisor shall estimate the number of coupons needed for each gaming day or promotion and complete a requisition document which contains the following information:

(1) The date the requisition was prepared;

(2) The date for which the coupons are needed;

(3) The denomination and quantity of coupons requested;

(4) The name, signature, and license number of the marketing department supervisor completing the requisition; and

(5) The name, signature and license number of the accounting department supervisor authorizing the requisition.

I. Upon receipt of the requisition document, the accounting department supervisor shall record in the coupon ledger the following information before issuing the coupons to the marketing department supervisor:

(1) The beginning and ending serial number of the coupons to be issued;

(2) The denomination and quantity of coupons to be issued;

(3) The name, signature and license number of the accounting department supervisor who will be issuing the coupons; and

(4) A record and explanation of coupons that were voided.

J. A coupon that is not issued to the marketing department shall be controlled by an accounting department supervisor or above and stored in a secured and locked area approved by the Commission, as designated in the facility operatorís internal controls the location of the approved storage area.

K. The marketing department shall maintain a daily Coupon Reconciliation Form which shall contain:

(1) The date;

(2) The beginning and ending serial numbers of the coupons received from the accounting department;

(3) The denomination and quantity of coupons the marketing department has to distribute to players;

(4) The denomination and quantity of coupons the marketing department distributed to players;

(5) The denomination, quantity, and serial numbers of coupons remaining;

(6) The serial numbers of coupons that were voided and the reason the coupons were voided;

(7) Any discrepancy discovered in the accounting for coupons and an explanation of the discrepancy; and

(8) The name, signature and license number of the marketing department supervisor completing the form.

L. Undistributed Coupons.

(1) At the end of the gaming day or promotional period, a copy of the Coupon Reconciliation Form and all coupons that were not distributed to players shall be returned to the accounting department.

(2) The marketing department may keep for use during the next gaming day all coupons that were not distributed to players if the coupons are:

(a) Stored in a secured and locked area approved in advance by the Commission; and

(b) Recorded on the daily Coupon Reconciliation Form for the next gaming day.

(3) All expired coupons shall be returned to the accounting department on a daily basis.

(4) When unused and expired coupons are returned to the accounting department, an accounting department supervisor shall record the following information in the coupon ledger:

(a) The date the coupons were returned;

(b) The beginning and ending serial numbers of the coupons returned;

(c) The denomination and quantity of coupons returned;

(d) The serial numbers of any coupons that were voided and the reason the coupons were voided;

(e) The name, signature, and license number of the marketing department supervisor returning the unused coupons; and

(f) The name, signature, and license number of the accounting department supervisor who received the unused coupons.

M. All documentation, voided coupons, redeemed coupons, and coupons that were not distributed to players shall be forwarded daily to the accounting department where the coupons shall be:

(1) Counted and examined for proper calculation and recording;

(2) Reviewed for the propriety of signatures on the documentation and cancelled;

(3) Reconciled by total number of coupons given to the marketing department for distribution to players, returned for reissuance, voided, distributed to players and redeemed; and

(4) Recorded, maintained, and controlled by the accounting department.

N. At least once every month, a facility operator shall inventory all coupons that are not distributed to players and record the result of the inventory in the coupon ledger in accordance with the inventory procedures that the Commission approved as part of the facility operatorís internal controls.

O. A facility operator shall prepare and submit to the Commission a quarterly report that lists the total value of the coupons redeemed by players.

P. If a facility operatorís Commission-approved internal controls include its production and subsequent reconciliation of coupons, a facility operator may internally manufacture or print coupons.

Q. Production of Coupons. If a facility operatorís Commission-approved internal controls include the production of coupons by a manufacturer or contractor, a facility operator may authorize a manufacturer or contractor to print and mail coupons directly to players in accordance with the following requirements:

(1) The coupons shall comply with the requirements in §§B and C of this regulation;

(2) The facility operator shall supply the manufacturer or contractor, through electronic means, a list of the following information for each player to whom the coupon shall be mailed:

(a) The playerís name and address;

(b) The denomination of the coupon;

(c) The expiration date of the coupon; and

(d) A serial number on each coupon;

(3) The coupon issued shall include a magnetic strip or bar code that will enable the facility operatorís computer system to identify the information required under §R(2) of this regulation;

(4) The information in §R(2) of this regulation shall be provided to the accounting department, which shall maintain the information for purposes of reconciliation as required under §N of this regulation;

(5) Prior to redemption of the coupon, a dealer shall verify the expiration date and confirm that the coupon has not expired;

(6) All coupons issued shall be electronically canceled in the facility operatorís computer system immediately upon redemption or during the counting of the table game drop boxes; and

(7) The facility operator shall ensure that the manufacturer or contractor does not engage in a predatory marketing practice in violation of COMAR 36.03.03.08.

R. A facility operator may use a computerized system that complies with the requirements in this regulation if:

(1) The computerized system creates coupons that comply with the requirements in §§B and C of this regulation;

(2) The computerized system provides an audit trail and allows for the segregation of duties to satisfy the requirements in this section; and

(3) The facility operator includes in its internal controls procedures governing the production, recording, redemption, and reconciliation of computer-generated coupons.