What operational requirements and playing limits apply to keno player access devices (self-service kiosks) in Nebraska?

Plain-English summary

This is a gaming-regulation ruling, not a tax ruling -- it's published in the Nebraska Department of Revenue's revenue-rulings series because the Department's Charitable Gaming Division oversees keno (the "county/city lottery"). It matters to keno operators, the counties/cities/villages that sponsor keno, and the companies that make gaming kiosks.

The backstory: the Nebraska County and City Lottery Act used to prohibit players from touching lottery equipment. That prohibition (Neb. Rev. Stat. § 9-607(1)(c)(ii)) was repealed effective August 27, 2011. This ruling fills the gap by setting the operational requirements and playing limits for "player access devices" -- self-service kiosks that let a player place a keno wager and print their own outside ticket.

Who can supply and approve them:

• Player access devices are lottery equipment, so they may only be sold, rented, leased, or provided by a licensed manufacturer-distributor. (A bill validator, player account encoded medium, or media port attached to the kiosk is not lottery equipment, because it doesn't affect the game outcome -- its maker needn't be licensed.)
• A device and its software must be approved by the Department before use, based on this ruling's requirements and Charitable Gaming Division testing. A prototype goes to a Department-certified independent testing lab at the manufacturer's expense, and later hardware/software changes need pre-approval.

Where and who can play:

• A kiosk may be located only within the premises of a licensed keno operator or sales-outlet location -- never outside the building.
• It must sit in staff view to block access by anyone under 19, and a 19+ sign must be posted on or near it. Knowingly letting an under-19 person play risks an administrative fine or criminal prosecution.
• Hours: operation is prohibited between 1:00 a.m. and 6:00 a.m., unless the county/city/village has authorized extended liquor hours under Neb. Rev. Stat. § 53-179.

How play works and the hard limits:

• The kiosk must have a bill validator or a player-account-encoded-media port. Players fund wagers with cash, a cash claim voucher, a promotional coupon, or a winning ticket (or a player account encoded medium).
• The device cannot accumulate credits for winnings, cannot dispense tokens or cash, cannot close a keno game, and cannot activate the winning-number selection. Change is returned as a cash claim voucher (redeemable by a keno writer).
• No ticket -- including a way ticket -- may exceed $100 per game. Multirace tickets are allowed if each game's wager stays within $100. Quick Pick is allowed, but the random number generator may not reside on the kiosk.
• Every outside ticket must be recorded on the keno system transaction log as it prints, and the device must offer a confirmation/cancel step before printing.

Winning tickets: a winning ticket must be taken to a keno writer for payment, except that a winner of $499.99 or less may be inserted/scanned into the kiosk and the amount made available for more wagering. The device must block winners over $499.99 and can never pay out cash.

What this means for you

Keno operators and sponsoring counties/cities/villages

If you want to offer self-service kiosks, use only Department-approved devices from a licensed manufacturer-distributor, place them inside your premises in staff view with a 19+ sign, respect the 1 a.m.-6 a.m. shutdown (absent extended liquor hours), and make sure the machine enforces the $100-per-game cap and never pays cash. Winning tickets over $499.99 must be routed to a keno writer.

Manufacturers and distributors of gaming kiosks

Get licensed as a manufacturer-distributor of lottery equipment, submit prototypes and software to a Department-certified testing lab at your own cost, and secure Department approval before any Nebraska placement. Any later hardware or software change needs pre-approval and may require re-testing. Note that ancillary components (bill validators, encoded-media ports) aren't "lottery equipment" for licensing purposes.

Players

You must be at least 19. Kiosks take cash and vouchers, cap wagers at $100 per game, and won't pay you cash -- present winners to a keno writer (small winners of $499.99 or less can be replayed at the machine).

Common questions

Q: Are self-service keno kiosks legal in Nebraska?
A: Yes, since the ban on player access to lottery equipment (Neb. Rev. Stat. § 9-607(1)(c)(ii)) was repealed effective August 27, 2011. This ruling sets the operating requirements and limits.

Q: Is there a wager cap at a kiosk?
A: Yes. No ticket, including a way ticket, may exceed $100 per game. Multirace tickets are allowed if each game's wager stays within $100.

Q: Can a kiosk pay out cash or accumulate credits?
A: No. A player access device cannot dispense cash or tokens, cannot accumulate credits for winnings, and cannot pay cash for a winning ticket. It provides change via a cash claim voucher.

Q: Who can play, and when?
A: Players must be at least 19, and devices must be in staff view with a posted 19+ sign. Operation is prohibited from 1:00 a.m. to 6:00 a.m. unless extended liquor hours are authorized under Neb. Rev. Stat. § 53-179.

Q: How are winning tickets paid?
A: A winning ticket must be presented to a keno writer for payment, except a winner of $499.99 or less may be inserted/scanned into the device for additional wagering. Winners over $499.99 must be blocked from the device.

Q: Do the devices need government approval?
A: Yes. They are lottery equipment that may only be provided by a licensed manufacturer-distributor and must be tested by a Department-certified lab and approved by the Department before use.

Citations and references

• Neb. Rev. Stat. § 9-607(1)(c)(ii) -- the prohibition on player access to lottery equipment, repealed effective August 27, 2011, which prompted this ruling.
• Neb. Rev. Stat. § 53-179 -- Nebraska Liquor Control Act; authorized extended liquor hours can extend a device's permissible operating hours past 1:00 a.m.
• Nebraska County and City Lottery Act -- the statute governing keno, administered by the Department's Charitable Gaming Division.
• The ruling also references Charitable Gaming regulations (e.g., REG 35-613.02C(2) on promotional coupons and REG 35-613.03K on outside-ticket contents).

Source

• Landing page: https://revenue.nebraska.gov/about/legal-information/revenue-rulings-issued-tax-commissioner
• Original PDF: https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/legal/rulings/rr351301_keno_kiosk.pdf

Original ruling text

Revenue Ruling 35-13-1

County/City Lottery (Keno)
January 2, 2013

Player Access Devices
Issue
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.
Definitions
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.
Nebraska Department of Revenue, PO Box 94855, Lincoln, Nebraska 68509-4855

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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.

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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.

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Operational Requirements and Playing Limitations
of Player Access Devices
I. Manufacturer-Distributor of Player Access Devices
A. Player access devices are considered lottery equipment and may be sold, rented, leased, or
otherwise provided in Nebraska only by a licensed manufacturer-distributor of lottery equipment.

1. For the purpose of this revenue ruling, a bill validator, player account encoded medium, or
   a player account encoded media port, which is attached to or part of a player access device,
   is not lottery equipment since it does not directly affect the outcome of the keno lottery.
2. A manufacturer or distributor of a bill validator, a player account encoded medium, or
   a player account encoded media port is not required to be licensed as a manufacturerdistributor of lottery equipment in Nebraska.
   B. No player access device and associated software may be sold, rented, leased, or otherwise
   provided to any individual, business, organization, or community in Nebraska for use in a
   county/city lottery conducted pursuant to the Nebraska County and City Lottery Act unless and
   until the device and associated software have been approved by the Department.
   C. Approval of a player access device or associated software will be based upon conformance with
   the requirements contained in this revenue ruling and any testing criteria established by the
   Charitable Gaming Division.
   D. A licensed manufacturer-distributor seeking approval for a player access device and associated
   software will be required to submit a prototype of the device and associated software to an
   independent testing laboratory certified by the Department for the testing of lottery equipment.
   The licensed manufacturer-distributor is responsible for the actual costs of testing and examining
   player access devices and associated software.
   E. Once approved, any subsequent hardware or software modifications must be preapproved
   by the Department. At the Department’s discretion, these modifications may be subject to
   additional testing.
   II. Player Access Device Operational Requirements
   A.

Location of Devices

1. A player access device must be located only within the premises of a lottery operator or
   sales outlet location of a county, city, or village licensed to conduct a keno lottery. The use
   of a player access device outside of the premises is prohibited.
2. A player access device must be located in an area which is visible to the staff on duty at
   the premises to prevent unauthorized access by an individual less than 19 years of age. A
   licensee, or employee or agent of a licensee, who knowingly permits an individual less
   than 19 years of age to play, is subject to an administrative fine or criminal prosecution for
   violation of the Nebraska County and City Lottery Act.
3. A sign restricting the use of the player access device to individuals at least 19 years of age
   must be visibly posted on each device or in the immediate area of the device.

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B.
Game Play

1. A player access device must be equipped with either a bill validator or a player account
   encoded media port. To make a wager, a player must insert cash or a player account encoded
   medium into the player access device, or scan or insert a cash claim voucher, a promotional
   coupon as permitted by REG 35-613.02C(2), or a winning ticket.
   a. The device must display a transaction summary reflecting the dollar amount from
   inserted cash, player account encoded medium, cash claim voucher, promotional
   coupon, or winning ticket.
   b. The device cannot accumulate credits for amounts won.
   c. For devices equipped with a bill validator, the device must be able to provide change
   to the player in the form of a cash claim voucher that must be presented to a keno
   writer for redemption of the difference if the amount wagered is less than the inserted
   cash. A cash claim voucher may be inserted or scanned into the device to make
   another wager.
   d.

For devices equipped with a player account encoded media port, if the amount wagered
is less than the initial programmed account balance, change must be provided to the
player by either:
(i)

A cash claim voucher as provided in (II)(B)(1)(c); or

(ii) Redemption from the keno writer of the balance indicated by the player account
encoded medium.
e.

The device must not dispense tokens or cash.

f.

A device that is configured to accept only the exact amount of the wager is permissible
at the discretion of the county, city, village, or lottery operator.

2.

A player activity card may be used with a player access device as a convenience to the
player only for the purpose of tracking a player’s wagering activity (wins and losses).

3.

A player access device must not be capable of closing a keno game or activating the
selection of winning numbers for a keno game.

4. Only the features tested and approved by the Department may be installed on any player
   access device.
   C.
   Hours of Operation
   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.
   D.
   Tickets
5. A player must enter each number selected along with the amount wagered, the number of
   games to be played, and any other ticket conditioning aspects of the wager. The player

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access device must print a paper ticket which contains all of the information required for
an outside ticket by REG 35-613.03K.

2. Quick Pick tickets are permissible on a player access device provided the player has an
   opportunity to reject the computer number selection and cancel the wager. The random
   number generator used for Quick Pick tickets may not reside on the player access device.
3. Multirace tickets are permissible on a player access device subject to any limitations of the
   game published by the sponsoring county, city, village, or lottery operator.
4. No ticket, including a way ticket, that exceeds $100 per game may be purchased from a
   player access device. A multirace ticket may be purchased from a player access device
   provided the wager for each game included in the ticket does not exceed $100.
5. Concurrently with the generation of the outside ticket, the information on the ticket must
   be recorded on the keno system transaction log.
6. If a player makes a mistake and needs to cancel/void the wager, the player access device
   must allow the player to cancel/void the wager prior to the printing of the paper ticket.
   a. If a paper ticket has not printed, the device may either issue a cash claim voucher for
   the voided ticket or allow the player to place a different wager.
   b. A void ticket is not required to be printed if a cash claim voucher is issued to the
   player by the device or the player is allowed to place a different wager.
   c. If a paper ticket has already been printed, the paper ticket must be presented to a keno
   writer prior to the closing of the game to be voided and to obtain either a cash refund
   or cash claim voucher for the amount wagered.
   d. If the current game has already closed, the ticket cannot be voided.
   e. The keno system must document the date, time, ticket serial number, keno kiosk
   number, and the amount of the voided wager on the transaction log. If a keno writer
   voids the ticket, a void ticket must then be issued, which must be retained and attached
   to the paper ticket to serve as documentation of the transaction.
7. The player access device must include a ticket confirmation feature that provides the player
   an opportunity to change the wager or cancel the wager prior to the outside ticket being
   printed.
   E.
   Game Closing
8. Once the keno game is closed by the keno manager, a “close game” message must be
   displayed on the player access device. No tickets may be written or voided after a game
   has been closed. If allowed by the keno manager, a player may write a ticket for the next
   game after the current game has closed.
9. A player access device must display the current game number and incorporate a countdown
   timer to warn players of the amount of time remaining before the current game is closed. If
   a player does not complete the wager prior to the game closing, the ticket must be written
   for the next game.

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F.
Payment of a Winning Ticket

1. If a ticket is a winner, the outside ticket printed by the player access device must be
   presented to a keno writer for payment, except that a winning ticket of $499.99 or less may
   be inserted or scanned into the player access device and the amount won displayed on the
   device and made available for additional wagering.
   a. A player access device must include safeguards to prevent a winning ticket of more
   than $499.99 from being accepted by the device.
   b. A player access device cannot pay cash for a winning ticket.
   c. Once a player has completed play, any remaining amount displayed on the device
   must be paid by the keno writer as required in (II)(B)(1)(c) or (II)(B)(1)(d)(ii).
2. All winning ticket verification requirements contained in REG 35-613.06 apply to any
   winning ticket generated from a player access device.
   a. A winning ticket of $500 or more cannot be scanned into the player access device and
   must be presented to a keno writer for payment.
   b. At a satellite location, winning tickets up to $499.99 may be verified and paid by the
   keno writer.
3. Wins of $500 and over at a satellite location must be presented for payment at the main
   location of the keno game or at the office of the lottery operator. The same verification
   procedures apply to outside tickets purchased at the satellite location as would be applied
   had the ticket been purchased at the main location at which keno is conducted. A lottery
   operator may verify the winning outside ticket and make payment in person at the satellite
   location.
4. Subject to the above limitations, a winning ticket from one satellite location may be
   redeemed at another satellite location of the same lottery, or inserted or scanned into
   another player access device at the same location or at another satellite location of the
   same lottery.
5. A player access device may include a replay feature. If the ticket to be replayed has
   winnings, the amount won less the amount of the wager may be printed on a cash claim
   voucher and presented to a keno writer for payment, or the ticket may be scanned into the
   player access device and winnings made available for additional wagering.
   G.
   Communication
6. Networking of a player access device and the keno system within the same premises must
   be by serial connection, Ethernet, or a method otherwise approved by the Department.
7. A player access device which is used in a satellite location must include appropriate
   communication protocols to safeguard the integrity of the information transmitted between
   sites, prevent unauthorized interception and use of transmitted data, and prevent access to
   the computer and computer software via electronic communications equipment. Encryption
   systems, message authentication, and network access control systems (for example, virtual
   private networks) are methods of protecting transmitted data.
8. The use of radio frequency (RF) or wireless communication is currently prohibited.

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III. Terminal Requirements (Ref: GLI Standard #20 – Standards for Kiosks)
A.
Player Access Device Cabinet Security
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.
B.

Cabinet External Features

    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.
C.
Cabinet Wiring
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.
D.
On/Off Switch
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.
E.

Switches and Jumpers

    If the player access device contains “switches and jumpers,” all switches and jumpers must be

fully documented for evaluation by the test laboratory.
F.
Terminal Identification
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:

1. Manufacturer-distributor’s name;
2. Unique serial number;
3. Player access device model number; and
4. Date of manufacture.
   G.
   Player Safety
   Electrical and mechanical parts and design principles of the electronic hardware may not subject
   a player to any physical hazards.

Revenue Ruling 35-13-1

H.

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Player Access Device Integrity

    A player access device must be Federal Communications Commission (FCC) approved and

Underwriter Laboratories (UL) certified.
I.

External Doors/Compartment Requirements

    The interior of the player access device must not be accessible when all doors are closed

and locked.
J.

Logic Door and Logic Area

    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:

1. CPUs and other electronic components involved in the operation of the device;
2. Electronics and components housing display program storage medium (except for passive
   display equipment); and
3. 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.
   K.
   Coin and Currency Compartments
   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.
   L.
   Video Monitors/Touch Screens
4. A touch screen (if applicable) must be accurate; and once calibrated, maintain that accuracy
   for at least the manufacturer’s recommended maintenance period.
5. A touch screen (if applicable) must be able to be recalibrated by staff of the lottery operator
   without access to the machine cabinet other than opening the main door.
6. There must not be hidden or undocumented buttons/touch points (if applicable) anywhere
   on the screen that affect game play.
   M.
   Back Up Memory
   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.

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IV. Bill Validators (Reference: GLI Standard #20 – Standards for Kiosks, GLI Standard #11 –
Gaming Devices in Casinos, and GLI Standard #23 – Standards for Video Lottery Terminals)
A. All bill validators must be able to detect the entry of valid bills, promotional coupons, winning
tickets, or cash claim vouchers and provide a method to enable the player access device to interpret
and act appropriately upon a valid or invalid input. The bill validator must be electronicallybased and be configured to ensure that only bills of legal U.S. tender, promotional coupons,
winning tickets, or cash claim vouchers are accepted. Rejected bills, promotional coupons,
winning tickets, or cash claim vouchers must be returned to the player. The bill input system
must be constructed in a manner that protects against vandalism, abuse, or fraudulent activity.

1. Each bill validator must register on the player access device the actual monetary value
   received from either cash, a promotional coupon, winning ticket, or cash claim voucher.
2. Each bill validator must be able to be configured by the lottery operator to accept certain
   denominations.
3. An appropriate label indicating the denomination values of the bills accepted (i.e., $5, $10,
   and $20) must be posted near the bill validator device.
   B.

The actual monetary value received should only be displayed when:

1. The bill, promotional coupon, winning ticket, or cash claim voucher has passed the point
   where it is accepted and stacked; and
2. The validator has sent the “irrevocably stacked” message to the device.

C.
Bill Validator Security Features
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.
D.
Acceptance Conditions
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.
E.

Bill Validator Error Conditions

    Each bill validator must have the capability of detecting and displaying the following error

conditions:

1. Bill Jams;
2. Bill Validator Communication Fail;
3. Invalid Coupon, Ticket, or Voucher;
4. Stacker Door Open – The stacker door is the door immediately prior to accessing the
   cashbox/stacker assembly;

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5. 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;
6. Stacker Removed; and
7. Bill Validator Malfunction Not Specified Above.
   F.
   Communication
   All bill validators must communicate to the player access device using a bi-directional protocol.
   G.
   Bill Validator Requirements
   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:
8. Electromagnetic interference;
9. Electrostatic discharge;
10. Environmental extremes.
11. Power surges; or
12. Radio frequency interference;
    H.
    Bill Validator Stacker Requirements
    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:
13. The bill validator must have a ‘stacker full’ sensor;
14. There must be a separate key to access the stacker area. This key must be distinct from the
    main door key.
15. A tower or light alarm must be activated whenever there is access to the bill door, or the
    stacker has been removed.
    I.

Self-Test

    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.
J.
Bill Validator Accounting Requirements
A player access device with a bill validator must maintain sufficient electronic metering to be
able to display the following:

1. Total monetary value of all items accepted;
2. Total number of all items accepted;

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3. A breakdown of the bills accepted — the game must report the number of bills accepted for
   each bill denomination; and
4. 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.
   V. Player Account Encoded Media Ports
   A. All player account encoded media ports must be able to read the programmed player account
   encoded medium and provide a method to enable the player access device to interpret and
   act appropriately upon a valid or invalid input. The player account encoded media port must
   be electronically based and be configured to ensure that only player account encoded media
   programmed by the keno writer are accepted. The player account encoded media port must be
   constructed in a manner that protects against vandalism, abuse, or fraudulent activity.
5. Each player account encoded media port must register the actual monetary value
   programmed on the player account encoded medium and received on the player access
   device.
6. Each player account encoded medium must have the ability to be configured by the lottery
   operator or sales outlet location to represent the actual original value programmed by the
   keno writer as reflected by the value of cash, cash claim voucher, promotional coupon, or
   winning ticket presented to a keno writer.
   B.
   Player Account Encoded Media Port Security Features
   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.
   C.
   Acceptance Conditions
   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.
   D.
   Player Account Encoded Media Port Conditions
   Each player account encoded media port must have the capability of detecting and displaying
   the following error conditions:
7. Player Account Encoded Media Port Communication Fail;
8. Invalid Player Account Encoded Medium;
9. Winning Ticket Above Limit – See Keno Writer; and
10. Player Account Encoded Media Port Malfunction not specified above.
    E.
    Communication
    All player account encoded media ports must communicate with the player access device by
    using a bi-directional protocol.

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F.
Player Account Encoded Media Port Requirements
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:

1. Electromagnetic interference;
2. Electrostatic discharge;
3. Environmental extremes.
4. Power surges; and
5. Radio frequency interference.
   G.
   Self-Test
   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.
   H.
   Player Account Encoded Media Port Accounting Requirements
   A player access device with a player account encoded media port, must maintain sufficient
   electronic records to be able to display the following:
6. Total monetary value of all transactions made; and
7. Total number of transactions made.
   VI. Printers
   A.
   Cash Claim Voucher Information Requirements
   A cash claim voucher must, at a minimum, contain the following printed information:
8. The name of the county, city, or village sponsoring the keno lottery and the location where
   the voucher was obtained by the player;
9. Player access device serial number or machine number;
10. Date and time;
11. Alpha and numeric dollar amount of the voucher;
12. Unique voucher sequence number;
13. Bar code or any readable code representing the voucher sequence number;
14. Type of transaction or other method of differentiating types of cash claim vouchers; and
15. An indication of an expiration period from the date of issue, or date and time the voucher
    will expire.

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B.
Printing of Cash Claim Vouchers
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:

1. A unique sequential serial number;
2. The monetary value of amount won or to be refunded;
3. The time of day the cash claim voucher was printed;
4. The date, indicating the day, month, and year printed; and
5. The player access device serial number or machine number.
   C.
   Redemption of Cash Claim Vouchers
   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:
6. The unique sequential serial number;
7. The monetary value of the amount won or refunded;
8. The time of day the cash claim voucher was redeemed:
9. The date, indicating the day, month, and year printed; and
10. The player access device serial number or machine number.
    D.
    Printer Error Conditions
    A printer must have mechanisms to allow control program software to interpret and act upon the
    following conditions:
11. 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;
12. Printer jam/failure; and
13. Printer disconnected – It is permissible for the player access device to detect this error
    condition when the game tries to print.
    VII. Inspection and Seizure of Player Access Devices
    A. The Department (or its duly authorized representatives) has the right to inspect any player access
    device being used in a county/city lottery to:
14. Verify that the player access device installed has been tested and approved for use in
    Nebraska;
15. Reconcile bill validator cash-in and cash-out meters to the amount of cash in the bill
    stacker; and

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3. Perform any other inspection activity deemed necessary to ensure that the device is being
   used in conformance with this revenue ruling.
   B. The Department (or its duly authorized representatives) may seize, without a warrant, any player
   access device which does not conform in all respects to the requirements of the Nebraska County
   and City Lottery Act and any other specification imposed by the Department by this revenue
   ruling.

APPROVED:

Douglas A. Ewald
Tax Commissioner
January 2, 2013