The Nebraska County and City Lottery Act has historically prohibited the access of any lottery equipment by a player of the county/city lottery (keno). Effective August 27, 2011, the prohibition of player access to lottery equipment in Neb. Rev. Stat. § 9-607(1)(c)(ii) was repealed. This revenue ruling establishes the operational requirements and playing limitations on devices which allow player access to lottery equipment.
Activation. Activation, with regard to lottery equipment, means initiating the selection of winning numbers.
Bill Validator. Bill validator means a device that is attached to a player access device to accept bills, tickets, promotional coupons, or cash claim vouchers, and then record the amount accepted as a payment on the player access device.
Cash. Cash means U.S. currency and does not mean checks, personal or otherwise, debit cards, or credit cards.
Cash Claim Voucher. Cash claim voucher means a ticket/voucher issued by a keno writer or player access device which is redeemable for cash or can be scanned by the player access device for play.
Conditioning. Conditioning, as it applies to keno, means a restatement of how many numbers or combinations of numbers are being selected by the players, the way in which they are wagered, and the corresponding dollar amounts wagered.
County/City Lottery. County/city lottery means, for the purposes of this revenue ruling, the game commonly referred to as keno, conducted pursuant to the Nebraska County and City Lottery Act.
Department. Department means the Nebraska Department of Revenue.
Game Closed. Game closed means that wagers can no longer be made on the current keno game.
Inside Ticket. Inside ticket means the paper with 80 preprinted numbers on which the player marks the numbers to be wagered on and the type of wager.
Keno Manager. Keno manager means the shift manager, supervisor, or person in charge of the daily operation of a keno game at a location.
Keno Runner. Keno runner means a licensed lottery worker, other than a keno writer on duty, who accepts an inside ticket and payment of wager from a player, transports the ticket and wager to a keno writer to place the wager, and returns the resulting outside ticket to the player.
Keno System. Keno system means an integrated system of computer hardware and software that generates outside tickets, records game outcomes, verifies winning tickets, produces management reports, and performs other functions and internal audit controls of the keno operation.
Keno Writer. Keno writer is a licensed lottery worker who: accepts inside tickets or verbal requests for wagers and payments of wagers from players or from keno runners; issues outside tickets and cash claim vouchers; voids tickets; and redeems winning tickets and cash claim vouchers.
Lottery Equipment. Lottery equipment means all proprietary devices, machines, and parts used in the manufacture or maintenance of equipment which is used in and is an integral part of the conduct of the lottery. This equipment directly affects the outcome of the lottery or monitors the operation of the lottery and includes, but is not limited to: keno balls; keno ball selection devices, including electrically-operated blower machines, automated ball draw systems, and other electronic selection devices; random number generators; and keno systems.
Lottery Worker. Lottery worker means any individual who performs any work directly related to the conduct of a county/city lottery including, but not limited to: ticket writing; winning number selection; winning number verification; prize payment to winners; record keeping; shift checkout; review of keno writer banks; security; and working as a keno runner.
Manufacturer-Distributor. Manufacturer-distributor means any individual, sole proprietorship, partnership, limited liability company, or corporation which assembles, produces, makes, prints, or supplies lottery equipment or supplies for sale, use, or distribution in this state.
Multirace Ticket. Multirace ticket means a single ticket which allows a player to make the same keno wager on consecutive games.
Outside Ticket. Outside ticket means the computer-generated paper ticket that contains the game number, date, dollar amount of wager, the numbers chosen by the player, ticket sequence number, writer station number, etc.
Play. Play in a keno lottery means placing a wager, cashing a winning ticket, and/or collecting any winnings.
Player Access Device. Player access device means a player kiosk which allows an individual to place a wager on a keno game and print his or her own outside ticket.
Player Activity Card. Player activity card means a player identification card that can be inserted or scanned into a player access device for the purpose of tracking a player’s wagering activity.
Player Account Encoded Medium. Player account encoded medium means a data storage device, including a device utilizing a circuit board and USB connector, that can be inserted into a player access device after cash is paid; or a cash claim voucher, promotional coupon, or winning ticket is presented to a keno writer. The player account encoded medium contains a programmed account balance enabling the player to place wagers on a keno game.
Player Account Encoded Media Port. Player account encoded media port means the tool made part of or attached to the player access device that scans, reads, or accepts the programmed player account encoded medium.
Premises. Premises means any building or any distinct portion of a building where the lottery is conducted or played and may include the lottery operator, a main location, an independent game location, a sales outlet location, or a satellite location. Premises does not include any areas outside the building.
Promotional Coupon. Promotional coupon means a specific sales or marketing tool in the form of a certificate that provides players with discounts on goods or services when the certificate is presented.
Quick Pick Ticket. Quick Pick ticket means a keno ticket for which the player selects numbers by requesting that the keno system generate them at random on an outside ticket.
Quitrace Ticket. Quitrace ticket means the documentation of the payment of any accumulated winnings on the terminated multirace ticket, and the refund of any unused portion of the original wager on the multirace ticket being terminated. A quitrace ticket is generated by the keno system, and records a player’s termination of a multirace ticket before the completion of all of the games originally included on the multirace ticket.
Random Number Generator. Random number generator means hardware, software, or a combination of hardware and software used to generate number values that exhibit characteristics of randomness.
Redeem. Redeem means to exchange or convert a cash claim voucher or winning ticket for cash.
Replay Ticket. Replay ticket means a ticket playing the identical keno wager as a prior wager with no change to selected numbers, conditioning, or the amount of wager.
Smart Card. Smart card means a plastic card containing a computer chip or magnetic stripe enabling the holder to purchase goods and services, or perform other operations requiring data stored on the chip or magnetic stripe.
Transaction Log. Transaction log is a record of all transactions entered on the keno system. The transaction log includes, but is not limited to: all outside ticket information; ticket processing; voided tickets; game closing time; game results; payout; and all other information required by Department regulations to be entered on the transaction log.
Void Ticket. Void ticket means a printed verification of any outside ticket cancelled prior to the close of the game for which it was written. The void ticket must be attached to the original outside ticket and retained to serve as documentation of the transaction.
Way Ticket. Way ticket means a single outside ticket that allows a player to wager on the combination of groups of numbers in various ways.
Winning Ticket. Winning ticket means an outside ticket determined by the keno system or keno personnel to contain sufficient matching numbers for the game being played to earn a cash prize or prize redeemable for cash.
Operation of a player access device is prohibited between the hours of 1:00 a.m. and 6:00 a.m. unless a county, city, or village has authorized the extension of liquor hours in accordance with Neb. Rev. Stat. § 53-179 of the Nebraska Liquor Control Act. It is permissible to operate a player access device during any extended liquor hours authorized by the county, city, or village.
The main door, which must be locked, must be manufactured of materials that are suitable for allowing only legitimate access to the inside of the cabinet. Doors and their associated hinges must be capable of withstanding determined efforts to gain illegal access to the inside of the player access device, and leave evidence of tampering if an illegal entry is made.
Player access devices authorized by this revenue ruling may not: have a top or candle light located on the upper surface of the device; have a handle located on the side of the device which may or may not be pulled; or display spinning reels at any time.
The player access device must be designed so that power and data cables into and out of the device are not accessible to the general public. This is primarily for device integrity reasons, but can also maintain player health and safety (see paragraph G). Security-related wires and cables that are routed into a logic area must not be able to be easily removed. Cables must not be routed or left unrestrained so that they interfere with the removal of components that need to be removed during routine operation or maintenance.
An on/off switch that controls the electrical current must be located in a place which is readily accessible within the interior of the player access device so that power cannot be disconnected from outside of the machine using the on/off switch. The on/off switch positions must be labeled.
If the player access device contains “switches and jumpers,” all switches and jumpers must be fully documented for evaluation by the test laboratory.
The player access device must have an identification badge affixed to the exterior of the cabinet by the manufacturer-distributor, that is not removable without leaving evidence of tampering, and that must identity the following:
- Manufacturer-distributor’s name;
- Unique serial number;
- Player access device model number; and
- Date of manufacture.
Electrical and mechanical parts and design principles of the electronic hardware may not subject a player to any physical hazards.
A player access device must be Federal Communications Commission (FCC) approved and Underwriter Laboratories (UL) certified.
The interior of the player access device must not be accessible when all doors are closed and locked.
The player access device should use a logic area consisting of a locked cabinet (with its own locked door) that houses electronic components with the potential to significantly influence the operation of the device. Electronic components, which should be housed in one or more logic areas, are:
- CPUs and other electronic components involved in the operation of the device;
- Electronics and components housing display program storage medium (except for passive display equipment); and
- All flash memory devices that affect the play function of the device.
Communication controller electronics and components housing the communication program storage media or the communication board for the online system may reside outside of the device.
Coin and currency compartments must be locked separately from the main cabinet area. The player access device must be fitted with sensors that indicate door open/close status or that the stacker receptacle has been removed. The player access device must be disabled if the door is open or the stacker receptacle is removed. The device must not be re-enabled until the stacker receptacle is in place and the door is secured/locked.
The player access device must use battery back-up, or an equivalent, that is capable of maintaining the accuracy of all critical memory for 30 days after the power is discontinued from the device.
Each bill validator must be designed to prevent the use of cheating methods such as stringing, the insertion of foreign objects, and any other manipulation which may be deemed as a cheating technique. A method for detection of counterfeit bills must be implemented.
Acceptance of any bills, promotional coupons, winning tickets, or cash claim vouchers must only be possible when the player access device is enabled for play. Other statuses, such as error conditions, including door open, must cause the disabling of the bill validator system.
Each bill validator must have the capability of detecting and displaying the following error conditions:
- Bill Jams;
- Bill Validator Communication Fail;
- Invalid Coupon, Ticket, or Voucher;
- Stacker Door Open – The stacker door is the door immediately prior to accessing the cashbox/stacker assembly;
- Stacker Full – It is recommended that an explicit “stacker full” error message not be used since this may promote a security issue. Rather, a message such as “Bill Validator Malfunction” or similar is suggested;
- Stacker Removed; and
- Bill Validator Malfunction Not Specified Above.
All bill validators must communicate to the player access device using a bi-directional protocol.
Interconnecting cables from the bill validator to the player access device must not be exposed to the player; and the manufacturer-distributor must provide documentation if the bill validator has had any of the above tests performed under a recognized standard. In addition, a bill validator must not be adversely affected by:
- Electromagnetic interference;
- Electrostatic discharge;
- Environmental extremes;
- Power surges; or
- Radio frequency interference;
Each bill validator must have a secure stacker and all accepted items must be deposited into the secure stacker. The secure stacker and its receptacle must be attached to the player access device so that it cannot be easily removed by physical force and must meet the following rules:
- The bill validator must have a ‘stacker full’ sensor.
- There must be a separate key to access the stacker area. This key must be distinct from the main door key.
- A tower or light alarm must be activated whenever there is access to the bill door, or the stacker has been removed.
The bill validator must perform a self-test at each power up. In the event of a self-test failure, the bill validator must automatically disable itself until the error status has been cleared.
A player access device with a bill validator must maintain sufficient electronic metering to be able to display the following:
- Total monetary value of all items accepted;
- Total number of all items accepted;
- A breakdown of the bills accepted — the game must report the number of bills accepted for each bill denomination; and
- For all other notes (promotional coupons, winning tickets, or cash claim vouchers) the game must have a separate meter that reports the number of items accepted, not including bills.
Each player account encoded media port must be designed to prevent the insertion of foreign objects and any other manipulation that may be determined to be a cheating technique. A method for detection of invalid player account encoded media must be implemented.
Acceptance of any player account encoded medium should only be possible when the player access device is enabled for play. Any other status, such as an error condition or an open door, must cause the disabling of the port.
Each player account encoded media port must have the capability of detecting and displaying the following error conditions:
- Player Account Encoded Media Port Communication Fail;
- Invalid Player Account Encoded Medium;
- Winning Ticket Above Limit – See Keno Writer; and
- Player Account Encoded Media Port Malfunction not specified above.
All player account encoded media ports must communicate with the player access device by using a bi-directional protocol.
Interconnecting cables from the bill validator to the player access device must not be exposed to the player; and the manufacturer-distributor must provide documentation if the bill validator has had any of the above tests performed under a recognized standard. In addition, a player account encoded media port must not be adversely affected by:
- Electromagnetic interference;
- Electrostatic discharge;
- Environmental extremes.
- Power surges; and
- Radio frequency interference.
The player account encoded media port must perform a self-test each time the player access device is turned on. In the event of a self-test failure, the player account encoded media port must automatically disable itself (for example, enter player data storage device invalid status) until the error state has been cleared.
A player access device with a player account encoded media port, must maintain sufficient electronic records to be able to display the following:
- Total monetary value of all transactions made; and
- Total number of transactions made.
A cash claim voucher must, at a minimum, contain the following printed information:
- The name of the county, city, or village sponsoring the keno lottery and the location where the voucher was obtained by the player;
- Player access device serial number or machine number;
- Date and time;
- Alpha and numeric dollar amount of the voucher;
- Unique voucher sequence number;
- Bar code or any readable code representing the voucher sequence number;
- Type of transaction or other method of differentiating types of cash claim vouchers; and
- An indication of an expiration period from the date of issue, or date and time the voucher will expire.
A player access device must support the transmission of data to the keno system to record the following information regarding each cash claim voucher printed:
- A unique sequential serial number;
- The monetary value of amount won or to be refunded;
- The time of day the cash claim voucher was printed;
- The date, indicating the day, month, and year printed; and
- The player access device serial number or machine number.
A player access device must support the transmission of data to the keno system to record the following information regarding each cash claim voucher redeemed:
- The unique sequential serial number;
- The monetary value of the amount won or refunded;
- The time of day the cash claim voucher was redeemed:
- The date, indicating the day, month, and year printed; and
- The player access device serial number or machine number.
A printer must have mechanisms to allow control program software to interpret and act upon the following conditions:
- Out of paper/paper low – It is permissible for the player access device to not lock up under these conditions; however, there should be a means for staff to be alerted;
- Printer jam/failure; and
- Printer disconnected – It is permissible for the player access device to detect this error condition when the game tries to print.
Douglas A. Ewald
January 2, 2013
Back to top of page