10.0 Definitions 

The following words and terms, when used in these regulations, shall have the following meanings unless the context clearly indicates otherwise:

10.1 "Affiliate" business companies, organizations, or individuals are Affiliates of each other if, directly or indirectly, either one has the power to control the other, or a third party controls or has the power to control both.

10.2 "Asset number" means a unique number assigned to an EGS and a cash storage box for purposes of tracking that machine and storage box while owned or leased by the Franchise Holder.

10.3 "Cash" means currency.

10.4 "Cash equivalent" means a Certified check, Electronic Cards, chips, cashiers check, treasurer’s check, recognized travelers check or recognized money order that is made payable to the Franchise Holder, "bearer" or "cash," is dated, but not postdated; and does not contain any endorsement other than that of the presenting patron.

10.5 "Cash storage box" means a tamper-resistant cash box that is contained in a Bill Acceptor which shall securely store all deposited cash, gaming tickets and coupons.

10.6 "Cashier Booth” means a cashier booth, to house one or more cashiers and to serve as the central location in the EGS gaming area, or, when there are multiple cashier booths, in that portion of the EGS gaming area.


10.8 "Commission" means the Arkansas Racing Commission or its successor having jurisdiction over horse racing and greyhound racing in this state. The Arkansas Racing Commission is responsible for all Licensing, adjudication of fines, Certification of Electronic Games of Skill, Appeals/Rulings and approval of all EGS plans.

10.9 "Complimentary services or items” mean a service or item provided directly or indirectly by a Franchise Holder at no cost or at a reduced price.

10.10 "Coupon" means a document which is issued in accordance with the coupon redemption and complimentary distribution programs approved by the Commission.

10.11 "Denomination” when used in conjunction with or in reference to an EGS, means the value or monetary amount of the lowest Wager that can be placed on the EGS.

10.12 "Distributor” means any person that sells, leases, or offers, or otherwise provides, distributes, or services any EGS or associated equipment for use or play of EGS in a Franchise Holder’s facility. A Manufacturer may be a distributor.

10.13 “EGS” acronym for Electronic Game or Games of Skill.

10.14 “EGS Section” means the Office of Field Audit within the Revenue Division of the Commission. The EGS Section is assigned responsibility for auditing and review of internal controls and the day-to-day operations of the EGS. This would include full administrative regulatory jurisdiction and exercise of the duties, powers and responsibilities over electronic games of skill and wagering on the electronic games of skill as authorized in Act 1151 of 2005 and Section 11.0.

10.15 "Electronic card” means a card provided by, or purchased from the Franchise Holder for use at the Franchise Holder’s EGS as a substitute for tickets for the conduct of gaming in the EGS.

10.16 "Electronic fund transfer" means a transfer of funds, other than a Transaction originated by check, draft, or similar paper instrument that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account. For the purposes herein, the term does not include any Transactions exempt, by statute or regulation, from the provisions of Title IX of the Federal Consumer Protection Act, 15 USC §1693.

10.17 "Electronic game(s) of skill" (hereinafter EGS) means game(s) played through any electronic device or machine that affords an opportunity for the exercise of skill or judgment where the outcome is not completely controlled by chance alone. EGS do not include pari-mutuel Wagering on horse racing and greyhound racing governed by the Arkansas Horse Racing Law or Arkansas Greyhound Racing Law, whether pari-mutuel Wagering on live racing, simulcast racing, or races conducted in the past and rebroadcast by electronic means. See Arkansas Code Ann 23-113-201(d).

10.18 "Franchise Holder" means any person holding a franchise to conduct horse racing under the Arkansas Horse Racing Law or greyhound racing under the Arkansas Greyhound Racing Law.

10.19 "Gaming Day” means a 24-hour period of time which represents the beginning and ending of EGS gaming activities by which the Franchise Holder keeps its books and records for business and accounting purposes.

10.20 "Gaming Floor” means the designated area where EGS gaming activities occur.

10.21 "Gaming Operator” means a Franchise Holder that is conducting the operation of EGS.

10.22 10.22 "Gross Wagering Revenues” mean the total value of currency, coupons, gaming tickets, and electronic credits invested by a patron to activate the play of an EGS.
However, “Gross Wagering Revenues” shall not include promotional coupons or promotional electronic credits provided by a franchise holder/Gaming Operator to a patron at no cost to the patron, which are used by the patron to make a wager on an EGS.

10.23 "Identification Credential" means a valid driver license, passport or other document generally accepted in business as a form of identification and which contains, at a minimum, the person's signature. A personal reference does not constitute an Identification Credential.

10.24 "Incompatible function" means a function for accounting control purposes that places any person, employed by or department established by the Franchise Holder, in a position to both perpetrate and conceal errors or irregularities in the normal course of their duties. Anyone recording Transactions and having access to assets ordinarily is in a position to perpetrate errors or irregularities. Persons may have Incompatible Functions if such persons are members of departments which have supervisors not independent of each other.

10.25 "Intermediary company” means a corporation, firm, association, partnership, trust or any other form of business organization other than a natural person which is a holding company with respect to a corporation which holds or applied for a Gaming License; and is a subsidiary with respect to any holding company.

10.26 "Manufacturer” means any person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs, or otherwise makes modifications to any EGS or associated equipment for EGS gaming purposes. A Manufacturer may be a Distributor, as approved by the Commission.

10.27 "Multi-Station game” is an EGS that incorporates more than one (1) player station, which are controlled by a unit that contains the game’s CPU and houses the game display, which is shared among the player stations. Since certain features are shared by the player stations the actions of one player station must not influence the operation of the other stations and at no time should any of the players be at a disadvantage to the next game played. In addition, each player station must make it clear as to when the next game will begin. For Multi-Station Games, each player station is considered an EGS and must meet the technical standards outlined throughout these regulations.

10.28 "Net Drop” is the total amount of credits played, minus the credits won for EGS Gaming Operations.

10.29 "Progressive system” means a computerized system linking EGS in one or more licensed facilities approved by the Commission and offering one or more common progressive payouts based on the amounts Wagered.

10.30 "Surveillance System” means any facility, not controlled by the Commission employees, that has been approved by the Commission to receive transmissions from the surveillance department’s security system including, without limitation, system monitoring rooms, surveillance department offices, system repair areas, and system emergency facilities.

10.31 "Transaction” a Transaction includes deposit, withdrawal, transfer between accounts, exchange of currency, loan, extension of credit, purchase or redemption of gaming instruments or any other payment, transfer, or delivery to a Franchise Holder, by whatever means affected.

10.32 "Wager” a sum of money or thing of value bet on an EGS.

10.33 "Wire Transfer" means a transfer of funds by means of the Federal Reserve Bank wire system in accordance with the requirements of 12 C.F.R. 210.25 et seq. and the Commission's regulations.