Legislative information

JACKPOT (cumulated prize), obtaining permission, technical realization, gaming rule and game plan

(a material of informative character)

Act no. 149/1998, amending the Act of the Czech National Council no. 202/1990 for the first time in the Czech Republic allows installations of JACKPOT (system for cumulated prize).

The Act neither stipulates explicitly any special permit to be required for operating systems of cumulated prize nor determines any additional conditions for operating. The act mentions such systems first of all in § 17 par. 7, then in § 17 par. 9 and in § 19 par. 1 letter a) and letter d). However, in our opinion, the equipment involved is subject to the second part of the Act, i.e. Amusement With Prize machines. We therefore deal with basic conditions related to AWPs in this informative material. The following items have to be considered in this context:

a) technical realization

If the program of the device concerned is INDEPENDENT of game programs of each interconnected AWP, such a device CANNOT be regarded an AWP or any other device pursuant to Act no. 202/1990 as amended by Act no. 70/1994 Coll. and as amended by Act no. 149/1998 Coll. Such an independent device is not subject to certification of serviceability by authorized person and no fees apply to this case. A cumulated prize (jackpot) obtained on such a device represents a special kind of prize from interconnected AWPs (§ 17 par. 7), allowed by law, which exceeds the win ratio of the interconnected AWPs. In relation to the accounting of the operator, a cumulated prize is a prize money paid to betters (players) and represents a part of prizes paid out in the given gambling-house or casino. Also in relation to § 4 par. 2 letter a) (delivery of part of revenue) jackpot prize is prize money paid out to betters.

b) as related to § 17 par. 9

Gaming rule of a gambling enterprise

• is submitted by the keeper and approved by an office authorized for licensing AWP in the given gambling-house or casino
• contains, among others, an article referring to a case that if several AWPs are operated interconnected, enabling a cumulated prize, a game plan of the cumulated prize device forms an annex to the gaming rule.
• for an example of a gaming rule of a gambling facility see Annex no. 1

c) as related to §19 par. 1 letter. a)

Game plan for a device of cumulated prize (jackpot) is submitted by the keeper and approved by an office authorized for licensing AWP. The game plan of that device should comprise:

• Type of device including its identification number and information whether that device, as for its program, depends or not depends on game programs of the individual mutually interconnected AWP.
• Method of creating resources for cumulated prize
• For what type of gambling facility (GAMBLING-HOUSE, CASINO) this device is designed
• Maximum amount of cumulated prize (GAMBLING-HOUSE CZK 10,000, CASINO CZK 100,000)
• Method of payoff of cumulated prize if achieved
• The prize paid out is recorded on separate counters of the device for cumulated prize; the electromechanical counter must not allow zeroing
• Drafting of cash from mutually interconnected AWPs is regulated by Act no. 202/90 as amended by Act no. 70/94 and as amended by Act no. 149/98 as well as Regulation no. 223/93 (same conditions as for any other AWP).
• Procedure for settling complaints

Game description – principle of the game

- should be put by the operator in the gambling-house (casino) on a conspicuous place. The description of game should contain:

• A player can reach the cumulated prize only in the case when he or she is in that moment playing on one of the interconnected AWPs. The mutually interconnected AWP are marked (e.g. with beacons).
• The cumulated prize that may be attained is solely decided by chance or an event not known in advance.
• The gaming machine, on which the cumulated prize was reached, gets a clear marking in the moment of win (e.g. flashing beacon, sound signal and like).

For game plan and game description see annex no. 2 and 3.

d) as related to § 19 par. 1 letter d)

Determining conditions of handling the device enabling cumulated win and handling the mutually interconnected AWPs, especially during withdrawal of cash, payoff of cumulated prize and repairs of the device. These conditions should contain the following items:

• The only persons authorized to make any intervention to mutually interconnected AWPs and the device for cumulated win itself are the operator and persons on his behalf (technicians in charge of installation, repair or maintenance of AWP that are either employees or contractors of the operator).
• The device for cumulated prize is designed to meet the condition that the maximum amount of cumulated prize may not exceed a preset value, e.g. 10% of (IN – OUT) difference of all interconnected AWPs (in order to control winnings paid out by jackpot) while the maximum amount of a single-shot win must not exceed CZK 10,000 in gambling-house and CZK 100,000 in casino. This device has software that is independent of the game programs of the mutually interconnected AWPs.
• Handling of interconnected gambling machines and the device enabling cumulated win is allowed only to persons responsible for operation of gaming machines in given gambling-house or casino.
• Repairs and maintenance of the device for cumulated prize (premium game) must not be done by persons other than the service technician of the gambling-house operator or another person authorized for such activity.
• The operator shall make a written record (protocol) of any repair of or intervention to the device, which may affect accountancy, creation and payment of winnings; the record shall contain all necessary data (type and identification number of device, town, location, reading of old counter in case that its replacement was necessary because of failure, reading of replacing counter, date, name and signature of service technician or person on behalf of the operator). When the device is put into operation, a ”Record of putting the device for cumulated prize in operation” containing type, identification number, town, location, initial reading of counter, date and signature shall be issued. These records are integral part of proper bookkeeping registering paid winnings of the cumulated prize device.
• The connections of the device for cumulated prize to individual gambling machines must be technically performed in a way excluding any possibility of affecting any of the counter systems of the interconnected AWPs.