TITLE 11: ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING
Section 433.10 Definitions
In addition to those definitions provided in 11 Ill. Adm. Code 401, the following definitions shall apply to this Part:
Act means the Illinois Horse Racing Act of 1975 (Ill. Rev. Stat. 1985, ch. 8, par. 37-1 et seq.)
advance wagering means any wagering on a race or races to be conducted during a racing program before the next scheduled race.
bet and wager, as used in this Part, are synonymous.
Board means Illinois Racing Board (Board).
cancelled ticket means a ticket which represents a wager which has been cancelled and withdrawn from the pari-mutuel pools.
cashed ticket means any pari-mutuel ticket which is refunded or which is presented for payment of a winning wager and is paid.
cashier accounting means the record of teller activity by transaction and time of transaction.
central processing unit or C.P.U. means the main computer which controls and stores both programs and data.
computer log library means a record of all operator initiated actions of the transaction processor.
console means the totalizator status monitor which displays current race pool status information.
issued ticket means a wager for which the ticket issuing machine produced a hard copy.
organization licensee as used herein applies to an organization licensee conducting a race meeting, an intertrack wagering licensee conducting simulcast wagering, or an intertrack wagering location (teletrack).
Pari-Mutuel Auditor or PMA is a member of the Board's Pari-Mutuel Audit Unit.
Pari-Mutuel Audit Unit or PMA unit means the pari-mutuel auditors and the State Director of Mutuels.
refunded ticket means a ticket which has been refunded for the value of a wager that is no longer valid, e.g., when a horse has been scratched or the wagering cancelled.
ticket issuing machine or T.I.M. means a machine which prints hard copies of wagers.
totalizator is sometimes abbreviated herein as "tote"
totalizator system licensee means any person, corporation, company, association or any other entity which sells, leases, or operates totalizator equipment and is licensed by the Board pursuant to 11 Ill. Adm. Code 432.
tote room means the room at a race track in which the totalizator system's computer is housed.
utilities means programs that are provided by computer vendors to perform tasks such as duplication of program tapes, modification of master files, and access to passwords.
Section 433.15 Purpose
The Part is designed to permit the Board to perform its statutory duty to supervise the pari-mutuel wagering system, to collect the taxes prescribed in the Act and to protect the wagering public. To this end, this Part establishes clear lines of responsibility between the organization licensee's pari-mutuel department and the totalizator system licensee and its employees, as well as detailing the duties and responsibilities of the Pari-Mutuel Audit Unit. This Part also requires security and backup procedures.
Section 433.20 Pari-Mutuel Audit Unit
The Pari-Mutuel Audit Unit shall be supervised by the State Director of Mutuels. The Pari-Mutuel Audit Unit is hereby delegated the responsibility of representing the Board in the supervision and verification of the pari-mutuel wagering pool totals for each racing day and for each program, which verification shall be the basis for computing state privilege taxes, organization commissions and purses. The Pari-Mutuel Audit Unit shall also assist the Board and the stewards in investigation of alleged violations of the Act and of the rules of the Board.
Section 433.25 Access to Totalizator and Pari-Mutuel Facility
a) To accomplish the duties set forth herein, the Pari-Mutuel Audit Unit is given the power to enter, during normal business hours of the organization licensee of the totalizator system licensee, all rooms and facilities on the grounds of the race track used by, or in connection with, the operation of the pari-mutuel department and the totalizator system.
b) The Executive Director of the Board shall authorize other Board employees to enter such facilities in accordance with paragraph 37-9(c) of the Act. (Ill. Rev. Stat. ch. 8, par. 37-9(c)(1985)).
Section 433.30 Work Area for Pari-Mutuel Auditors
Each organization licensee shall provide a work area for use by the PMA. This work area shall:
a) be located not more than 150 feet from the entrance of the tote room;
b) permit unrestricted entry to the totalizator facilities, particularly computer data entry devices, such as control desk consoles, inside tote board, or closed circuit television monitor of the outside tote board whichever is used, and printers;
c) include locking file cabinets within the work area or other locking storage facilities, which can store computer printouts or magnetic tape and are sufficient in size to handle all state controlled wagering records for each individual organization licensee for a period of one year for the sole use of Board representatives;
d) include a video and audio device which enables the PMA to receive the same information as the patrons;
e) include power outlets to operate electronic equipment; and
f) include a telephone.
Section 433.35 System Failure
a) Any failure of tote equipment at any facility shall be reported immediately to the state stewards, pari-mutuel auditor and the mutuel manager for the host track involved and the general manager at all affected facilities. The totalizator system licensee shall keep the state stewards and the pari-mutuel auditor advised of the efforts to correct such failure. If it is determined that the failure cannot be corrected, the stewards shall order a cancellation of wagering for that program and the refund of affected wagers. The stewards shall have the authority to permit some, or all of the remaining races to be contested as non-wagering exhibitions, having taken into consideration factors such as, but not limited to, the purse, the amount of wagering, and the time required to repair the totalizator system.
b) The general manager at all affected facilities shall file a written report with the State Director of Pari-Mutuels no later than 7 days thereafter detailing the reasons for the failure.
(Source: Amended at 15 Ill. Reg. 2736, effective February 5, 1991)
Section 433.45 Scientific Advancements
a) An organization licensee, intertrack wagering licensee, intertrack wagering location licensee or totalizator system licensee may petition the Board for permission to effect technological improvements, provided:
1) a written application is first submitted to the Board in compliance with 11 Ill. Adm. Code 206.10 describing, in detail, the purpose, nature, and extent of the requested technological changes;
2) actual demonstrations of the new technology are presented to the State Director of Mutuels; and
3) a report of the State Director of Mutuels, analyzing and evaluating the actual demonstration is submitted to the Board.
b) If the petition complies with this Section and if the new technology described therein will significantly improve the efficiency, including but not limited to, the speed or accuracy of either the existing wagering system or the Board's pari-mutuel audit function, the Board may approve the implementation of the improvement.
c) Notwithstanding the provisions of subparagraph (a) hereof, the Board may order an organization licensee, intertrack wagering licensee, intertrack wagering location licensee and/or a totalizer system licensee to implement any available technological improvements that will satisfy the provisions of subsection (b).
(Source: Amended at 18 Ill. Reg. 7443, effective May 8, 1994)
Section 433.50 Filings
Whenever this Part requires a document to be filed with the Board, the Executive Director of the Board, the State Director of Mutuels, or the Pari-Mutuel Audit Unit, such document shall be filed at the Board's central office at 100 W. Randolph St., Suite 11-100, Chicago, Il. 60601
Section 433.55 Standards
In administering this Part, where Board employees are given the authority to request information or otherwise to exercise discretion, in addition to the criteria specifically set forth in the Act and in this Part, Board employees shall only make such requests when necessary for:
a) the supervision and verification of pari-mutuel wagering pool totals;
b) the collection of the taxes prescribed by the Act;
c) the performance of an audit of an organization licensee's financial records;
d) the investigation of wagering or racing research requested by the Board.
Section 433.60 Cashed Tickets
Each organization licensee shall maintain facilities and enforce procedures which ensure the security of cashed tickets and the integrity of outstanding ticket records. Such security requirements shall include, but not be limited to, the following:
a) Access of all totalizator employees to cashed tickets storage areas shall be prohibited.
b) Cashed tickets shall be maintained in a two hour fire resistant facility unless other comparable fire protection is installed and operable.
c) Cashed and cancelled tickets shall be maintained for 60 days unless the PMA or the stewards request the organization licensee, in writing, for an extension for the purpose of conducting an investigation.
d) Cashed ticket storage facilities shall be secured by a locking system. Access to the locked cashed ticket storage facilities is the sole responsibility of the mutuel manager.
e) Only the mutuel manager or his designee shall have access to cashed tickets, storage areas for outstanding ticket records, and uncashed ticket records.
f) Access to magnetic log tapes and the computer log library tapes by the mutuel manager and employees of the Mutuel Department shall be prohibited, except for the computer operator and assistance operator, but this prohibition shall not be interpreted to deny the mutuel manager and his employees access to data generated by such tapes. If the totalizator system licensee does not operate in Illinois continuously, the possession of magnetic log tapes and computer log library tapes shall be retained on the premises of the organization licensee for one (1) year.
Section 433.70 Summary of Pari-Mutuel Operations (Repealed)
(Source: Repealed at 19 Ill. Reg. 13963, effective October 1, 1995)
Section 433.100 Marketing of Tickets
To prevent re-entry in the pari-mutuel system for duplicate cashing, each cashed or refunded ticket shall be marked to indicate that it has been cashed or refunded such as tearing a corner in a manner which will not destroy the identity of the ticket, or by computer imprint.
Section 433.110 Status of Outs Account
The organization licensee shall provide the Pari-Mutuel Auditor, each racing day, with a computer print-out of outstanding tickets cashed during the previous racing day and, at the request of the PMA, produce, subject to the limitation in Subsection 433.60(c), the actual tickets requested which were cashed during a particular program.
Section 433.120 Cancellation of Tickets
a) Cancellation at Terminals
1) Any wager at a manned terminal with a price of $500 or less may be cancelled, at the option of the holder, without question.
2) Any wager at an unmanned terminal with a price of $250 or less may be cancelled during afternoon host hours, at the option of the holder, without question. Any wager at an unmanned terminal with a price of $50 or less may be cancelled during evening host hours, at the option of the holder, without question (other than at or within the two minute period before post time).
b) Wagers with a price exceeding $500 may only be cancelled with approval of the Mutuel Manager of the organization licensee (e.g., race moved from turf to dirt, late jockey/driver change, late scratch of a horse).
c) In order to prevent practices detrimental to the public interest, the State Director of Mutuels may, at all terminals, increase or decrease the time period before post time within which wagers may not be cancelled and/or increase or decrease the price of wagers that may be cancelled. Any change in such time periods or wager prices shall be published in the program prior to the affected race.
(Source: Amended at 30 Ill. Reg. 1372, effective February 1, 2006)
Section 433.130 Records of Refunds and Cancellations
In all totalizator systems, the seller/cashier shall retain and account for all refunded and/or cancelled tickets. These refunded/cancelled tickets will be retained by the organization licensee, in the manner prescribed in Section 433.60. In the case of a request for an extension, as detailed in Section 433.60, the tickets shall be retained until all audit tests have been completed and the State Director of Mutuels, or his designee, issues a letter allowing for the disposal of such tickets and records. If a refunded/cancelled ticket is not available for inspection then sufficient supporting documentation, i.e., seller/cashier history, shall be available upon request. In no event will a refunded/cashier ticket which has been removed from the tote system by a keyboard entry be accepted by the Pari-Mutuel Audit Unit as record of payment unless the actual hard copy ticket is presented during the audit or lost bet report.
Section 433.140 Computer Print-Outs
Each organization licensee shall make available to the PMA for inspection and review all computer printouts generated by the totalizator system and shall, upon request, supply the Pari-Mutuel Auditor with copies of such printouts.
Section 433.145 Additional Method of Calculation
If any written method of calculation or check-up, in addition to the computer printouts specified in Section 433.140, is used or undertaken by the organization licensee, exact copies of all such calculations or check-ups shall be handed to the PMA as soon as possible after each race.
Section 433.200 No Reduction in Capacity
An organization licensee shall not change a totalizator system if the change will reduce the functional capacity of the system. A decrease in functional capacity is defined as going from a cash/sell system to a sell only system.
Section 433.210 Totalizators
Each organization licensee shall use ticket issuing machines, linked to a computer based totalizator system, that shall:
a) record the progressive, aggregate, and final total in dollars bet in each pool and on each entry or mutuel field;
b) compute the approximate and final odds in the win pool for each entry in each race at intervals not greater than 60 seconds and relay those odds to the infield display board and to other display devices;
c) compute commissions, breaks, and components thereof; and
d) compute the pay-off prices.
Section 433.220 Final Confirmation
For the purpose of confirming the final record of pari-mutuel sales for each race, each organization licensee shall for each wagering pool obtain a computer printout or store on magnetic media, the following information for each ticket issuing machine:
a) the total dollars wagered on each entry; and
b) the combination of entries.
Section 433.230 Status Report
Where advance wagering and or earlybird wagering is conducted, the computer printout required in Section 433.220 shall also contain a status report indicating the total dollars wagered on all subsequent pools.
Section 433.240 Locking Devices
Each organization licensee shall provide, for the purpose of locking ticket issuing machines at the start of each race:
a) one switch located within the stewards' stands; and
b) one switch located in the tote room for use as an emergency locking device independent from the console.
Section 433.250 Control of Locking Devices
The locking control switch referred to in Section 433.240 shall be controlled by a Board representative. This switch shall disable all ticket issuing machines from issuing tickets instantaneously. The execution of the locking control switch shall be noted by the ringing of the off bell. It shall be the primary responsibility of the state steward and the secondary responsibility of the mutuel department to assure that "stop betting" occurs. In no event are bets to be accepted or tickets to be cancelled after the related stop betting command has been issued.
Section 433.260 Accounting for Individual Tickets
For the purpose of accounting for individual tickets, each ticket shall be identified by a unique computer generated ticket number.
Section 433.270 Tickets
Every issued ticket shall have printed on it:
a) the name of the race track or organization licensee;
b) the number of the race;
c) the uniquely assigned computer generated ticket number;
d) the date the ticket was issued;
e) the date for which the ticket is issued;
f) when appropriate, the designation of either matinee or night program;
g) the number of the T.I.M. or window location;
h) the type of pool;
i) the number of each entry;
j) the denomination of each bet; and
k) the total dollar amount of each bet.
Section 433.280 Security for Tote Equipment
Each organization licensee shall provide a security system for the facilities housing the totalizator computers when such equipment is on site. Such security system shall:
a) be capable of detecting authorized and unauthorized entry through use of a coded locking system, e.g., card identification;
b) detect unauthorized entry and notify the Board and/or the State Director of Mutuels prior to the next program; and
c) contain procedures for entry to the facilities outside normal operating hours.
Section 433.290 Access to Tote Room
Each organization licensee shall authorize specific individuals, and may authorize visitors, to have access to the tote room. A list of such authorized individuals shall be maintained by the organization licensee and be made available to the PMA unit. Such individuals, and those persons authorized pursuant to Section 433.25, shall be the only individuals permittee to enter the tote room.
Section 433.295 Fax Machine
Properly operating Fax Machines shall be present in all rooms and facilities used in connection with the operation of a totalizator system.
(Source: Added at 14 Ill. Reg. 20059, effective December 4, 1990)
Section 433.298 Hot-Line Telephone
All totalizator system licensees shall provide hot-line telephones from their rooms to any facility used by another totalizator system licensee for purposes of conducting intertrack wagering.
(Source: Added at 14 Ill. Reg. 20059, effective December 4, 1990)
Section 433.300 General System Requirements
Totalizator system licensees must meet or exceed the totalizator system features listed in Sections 433.310 through 433.490.
Section 433.310 Redundant Capabilities
Totalizator systems shall have redundant capabilities and shall be defined as a master/slave configuration to ensure the comparison of individual pool totals so that no data is lost due to a processor failure.
Section 433.320 Redundant Hardware
All totalizator systems must have a redundant hardware including, but not limited to, the acceptance, recording, and accounting of wagering transactions, to ensure that in normal operating circumstances a totalizator system failure will not cause interruption in pari-mutuel operations.
Section 433.330 Stop Betting Command
All totalizator systems shall provide a switch located in the stewards' stand and the tote room which shall disable all ticket issuing machines from accepting all bets and issuing tickets on all races for which the "stop betting" command has been issued pursuant to Section 433.250.
Section 433.340 Record of Stop Betting Command
All totalizator systems shall:
a) identify and record on the system log file which switch issued the stop betting command;
b) record the time of day that the command was issued; and
c) confirm visually and audibly to the stewards that betting has stopped.
Section 433.350 Odds Board Control
The controls necessary to operate the order of finish on the odds board shall be located in the stewards' stand or immediately adjacent thereto and be controlled by a state steward or his designee.
Section 433.360 Odds Update
a) In conjunction with the totalizator system, there shall be one or more odds boards. Approximate odds on each betting interest in the win pool shall be updated on the odds board at intervals of not more than 60 seconds.
b) All totalizator systems shall provide a computer printout, at intervals of not more than 60 seconds, of all dollars wagered on each betting interest in the win, place, and show pools, and other wagering information given to the public during the wagering period.
Section 433.370 Retention of Racing Program Data
All totalizator systems must store racing program data on disk or other storage devices with the capability to transfer the data to hard copy in readable format. Such information shall be stored for a period of six months.
Section 433.380 Control Access to Tote Computer Equipment
Security/safeguard mechanisms must be installed by the tote system licensee to prevent unauthorized access to totalizator computer equipment. Such security shall be capable of detecting authorized and unauthorized entry through use of a password. Security systems meeting the above requirements shall be approved by the Executive Director or his designee.
Section 433.390 Software
All totalizator systems must have the necessary software to create, read, and verify the integrity of the data on the magnetic tapes. Each tape shall be labeled separately for each racing program. The label shall include organization licensee name, program number, file generation number (e.g., all files may start with 001 equal to the first program number), date produced, and time of day produced.
Section 433.400 Provide Summary
All totalizator system shall be able to produce and provide the Board:
a) subject to the time limitation in Section 433.370, a log file which can recreate the program and produce hard copy;
b) a report which summarizes each racing program's total wagering activity on a race by race basis; and
c) a listing of the daily cashed tickets and outstanding tickets cashed by unique ticket number and/or ticket issuing machine for each program.
Section 433.410 Unique Ticket Number
All totalizator systems shall assign a unique ticket number to each ticket issued. The unique ticket number shall be printed on the ticket at the time of issue by the ticket issuing machine and shall be recorded in the computer.
Section 433.420 Uncashed Tickets
All totalizator systems shall retain within the computer system ticket numbers of all outstanding tickets. These ticket numbers shall be retained in a computer data file protected by the security system. All access to such file outside of normal operating routines shall be password protected and a log of all such access shall be recorded.
Section 433.430 Computer Produced Reports
All totalizator systems shall print on all computer produced reports: the tote software's version number, date of execution, time of day executed, and page number. The page numbering shall be sequential from the first page through the last produced during a program.
Section 433.440 Magnetic Log Files
All totalizator systems shall use the magnetic log files as input for the accounting reports produced in the cashier accounting function.
Section 433.450 Security Sub-System
Totalizator program operation shall be under the control of a software security sub-system.
a) This sub-system shall have the ability to validate used sign-on data entered through a T.I.M. and use table lock-up techniques to determine which functions the user is permitted to perform when the totalizators are in use.
b) The security sub-system shall record on the system log file any attempt to:
1) stop execution of the system
2) alter the contents of the memory or auxiliary storage device, or
3) modify the sequence of instructions within the computer(s).
Section 433.455 Access to Sub-Systems
The operating and or security sub-system shall be accessible from no more than two terminals at any one point in time. These terminals shall be located in the tote room and access to these sub-systems shall require pass word entry prior to execution.
Section 433.458 Emergency Power Source
Each tote system licensee shall provide an emergency or alternate system of electrical supply capable of providing enough power to operate the central processing units where data which has been accepted is stored.
Section 433.460 Power Fluctuations
All totalizator systems shall provide the hardware, i.e., voltage regulators, isolation transformers, to minimize the effects of a power fluctuation on the totalizator system. This hardware, insofar as possible, shall maintain power into the computers at a constant level within design limits and shall be selected by the totalizator company for compatibility with its system design.
Section 433.470 Two Independent Sets of Pool Totals
All totalizator systems shall have the capability to maintain at least two independent sets of pool totals and compare them at least every 60 seconds. An entry to the system logs shall be produced at any time a difference in final pool totals is encountered. If it cannot be ascertained by the totalizator system licensee which final pool is correct, the highest pool total shall be used in all calculations, including pay-offs, commissions.
Section 433.480 Loss of Communications Reports
All totalizator systems shall detect and write to the system log file and produce a hard copy report of lost communication with hardware peripheral devices including disc drives, printers, consoles, ticket issuing machines, and any other devices, which may be part of the system configuration. Also, it shall include a message on the system log file indicating such loss of communication and the time thereof. In the event of a system failure, a written report with hard copy back-up shall be required and included in a hard copy reports of the system log file.
Section 433.490 Cancellations
Where totalizator systems allow issued tickets to be cancelled such cancellations must occur within the provisions of Section 433.120.
Section 433.500 General Procedural Requirements
Every totalizator system licensee must satisfy the procedural requirements set forth in Sections 433.510 through Section 433.610.
Section 433.510 Pre-Program Tests
All totalizator equipment in use for a program shall, before the start of each program, be tested by the totalizator personnel and all necessary repairs and adjustments made to ensure proper operation of ticket issuing machines and totalizator computers, and recording of bets in accordance with these rules. These tests shall be:
a) conducted at a time that does not conflict with the time established by the organization licensee for opening the pari-mutuel windows for sales; and
b) conducted with data supplied by the PMA unit when so requested by the State Director of Mutuels.
Section 433.520 Totalizator Programs
a) All copies of programs as a pari-mutuel facility shall be on magnetic tape or disk file and be stored in a secured cabinet under the control of a totalizator representative manager.
b) after the program has been loaded into the computer, the magnetic tape or disk file shall be resecured.
Section 433.530 Duplicate Copy of Totalizator Programs
All totalizator system licensees shall maintain a duplicate copy of all totalizator programs to be used during the race meeting. The duplicate copy will be in source code format or absolute program files and be placed on magnetic tape for storage. These tapes will be placed under seal by the totalizator system licensee and the Board and retained for future comparison with totalizator programs actually in use during the meet. These duplicate tapes will be kept under the dual control of the totalizator system licensee and the Pari-Mutuel Audit Unit and will be retained on the premises of the organization licensee.
Section 433.540 Notice of Software Modifications
All totalizator system licensees shall inform the State Director of Mutuels of planned totalizator program modifications by sending written notice to the Board at least one week in advance of performing a software modification. In situations where programs are modified in response to operational problems requiring immediate attention, the totalizator system licensee shall inform the State Director of Mutuels of the change immediately after the modification has been made. A narrative log explaining all software modifications shall be kept in the tote room.
Section 433.550 Testing of Software Modifications
Totalizator system licensees shall establish written procedures to test software modifications. Documentation of testing procedures and results shall be made available to the PMA unit upon request. Totalizator operators shall use either a hardware or software transaction generator to provide entry data for use in simulation of a complete program, including production of all reports. The PMA shall review such test procedures and results prior to installation of a new version of a totalizator system within the State.
Section 433.560 Controlling System Utilities
All totalizator system licensees shall adhere to formal written procedures for controlling system utilities and furnish the State Director of Mutuels with a copy of these procedures. These procedures shall include, but not be limited to, such matters as control over duplication or program tapes, control over use of any system utility programs or any application programs used to modify master files, and control over utility programs or other procedures used to change system passwords.
Section 433.570 Access to Tote Room
Ten days prior to the opening of each race meeting, the totalizator system licensee shall provide the State Director of Mutuels with a list of its representatives authorized to have access to the tote room, paper stock, or equipment for each meeting.
Section 433.580 Control Log
Each totalizator system licensee shall maintain, in conjunction with the organization licensee, a control log of keys or other security entry devices used to access the totalizator room and a log indicating to whom each is assigned. When the employment of a person possessing a key or security entry device to the totalizator room is terminated, the key or security entry device shall be collected.
Section 433.600 Back-Up Procedures
Totalizator operators shall include back-up procedures to reconstruct all computer programs and data files. The Board reserves the right to review and approve back-up procedures, based upon, including but not limited to, the ability to recover lost data, and the ability to provide grandfather-father-son backup.
Section 433.610 Shut-down Procedures
Each totalizator system licensee shall as part of its normal daily shut-down procedures:
a) remove all console logs from the hardware. Each entry on the console log must be preceded by the date and time of the entry;
b) clear all C.P.U. memory or magnetic core program date; and
c) secure the tote room to prohibit unauthorized entry.