RULE 12  GAMING DEVICES AND EQUIPMENT
47.1-1212    Approval of chips and tokens – Procedures.
A licensee may not issue chips or tokens or sell or redeem chips or tokens unless the specifications of the chips or tokens have been approved in writing by the Division. A licensee may not issue chips or tokens or sell or redeem chips or tokens that are modifications of chips or tokens previously approved by the Division unless the modifications have been approved by the Division.
Prior to any artwork submissions, the following must be on file with the Division:
A verification upon oath or notarized affirmation, executed by the chief operating officer of the chip or token manufacturer, or a person with equivalent responsibilities, that such manufacturer has a written system of internal control, approved by the Division, which describes in detail the current administrative, accounting and security procedures which are utilized in the manufacture, storage and shipment of the chips, tokens and related material. The written system must include at a minimum, a detailed, narrative description of the procedures and controls implemented to ensure the integrity and security of the manufacturing process, from design through shipment, including but not limited to those procedures and controls designed specifically to:
(a)  	Provide for the secure storage or destruction of all pre-production prototypes, samples, production rejects and other nonsalable product;
(b)  	Provide security over the finished art work, hubs, plates, dies, molds, stamps and other related items which are used in the manufacturing process;
(c)  	Prevent the unauthorized removal of product from the production facility through the utilization of security devices such as metal detectors, and surveillance cameras;
(d)  	Restrict access to raw materials, work-in-process, and finished goods inventories to authorized personnel;
(e)  	Provide for the documentation of approval of production runs;
(f)  	Establish and maintain a perpetual inventory system which adequately documents the flow of materials through the manufacturing process;
(g)  	Provide for the reconciliation of the raw material used to the finished product on a job-by-job basis. Significant variances are to be documented, investigated by management personnel, and immediately reported to the Division and to the licensee who authorized the manufacturer to produce the chips or tokens;
(h)  	Provide for quarterly physical inventory counts to be performed by individual(s) independent of the manufacturing process which are reconciled to the perpetual inventory records. Significant variances are to be documented, investigated by management personnel, and immediately reported to the Division;
(i)  	Establish a framework which provides for the security and accountability of products and materials sent to or received from subcontractors or satellite production facilities;
(j)  	Document controls over the shipment of finished product; and
(k)  	Provide such other or additional information as the Division may require.
The Division may in writing approve variations from the specific requirements of this regulation if in the opinion of the Division the alternative controls and procedures meet the objectives of this regulation.
If anything in (a) through (k) above changes, the chip or token manufacturer must notify the Division of Gaming, in writing, of the changes within 30 days.
Requests for approval of chips, tokens, and modifications to previously approved chips or tokens must include the following in addition to other items of information that the Division may require:
(1)  	Exact color drawings of each side and the edge of the proposed chip, and/or exact black and white drawings of each side and the edge of the proposed token, drawn to actual size and drawn in scale to 2½ times larger than actual size showing the measurements of the proposed chip or token in each dimension;
(2)  	Written specifications for the proposed chips or tokens;
(3)  	The name and address of the manufacturer; and
(4)  	The licensee’s intended use for the proposed chips or tokens.
If the Division in its discretion is satisfied that the proposed chips or tokens conform with the requirements of this chapter, the Division will provide the licensee with written approval of the artwork. The licensee must submit one sample of the proposed chip or token in final manufactured form to the Division. Sample chips must be notched. If the Division is satisfied that the sample conforms with the requirements of this chapter and with the information submitted with the application, the Division will approve the proposed chip or token and notify the licensee in writing. The Division will return the approved sample chip or token to the licensee.
A license applicant awaiting approval of its operator and/or retail gaming license may not accept transfer and accountability of approved chips or tokens from the chip or token manufacturer until the applicant’s operator and/or retail gaming license has been approved by the Colorado Limited Gaming Control Commission. (amended perm. 03/30/04, amended perm. 03/02/06)
47.1-1213    Specifications for chips and tokens.
(1)    	Chips and tokens must be designed, manufactured, and constructed in compliance with all applicable statutes, rules, and policies of the United States, the State of Colorado, and other states to prevent counterfeiting of the chips or tokens. Chips and tokens must not resemble any current or past coinage or currency of the United States or any other nations.   Eff  03/02/2007
In addition to other specifications that the Division may approve, the following must appear on the chip or token:   Eff  03/02/2007
(a)  	The name of the issuing establishment must be inscribed on both sides of a chip or metal token;   Eff  03/02/2007
(b)  	The name of the city in which the establishment is located must be inscribed on one side of the chip or metal token, with the exception of roulette chips;   Eff  03/02/2007
(c)  	The value of the chip or token must be inscribed on both sides of a chip or metal token;   Eff  03/02/2007
(d)  	A chip must be designed so that when stacked with chips and metal tokens of other denominations and viewed on closed-circuit black-and-white television, the denomination of the chip may be distinguished from that of the other chips and metal tokens in the stack.   Eff  03/02/2007
(2)  	The following provisions shall apply only to tournament chips:   Eff  03/02/2007
(a)  	The design of the tournament chip shall be distinctively different than the design of the chips and tokens approved for non-tournament limited gaming use at the licensee’s  gaming establishment.   Eff  03/02/2007
(b)  	No tournament chip may display a word or symbol representing a monetary denomination ( e.g., “cents,” “dollar,” “$,” etc.).   Eff  03/02/2007
(c)  	Each side of each tournament chip must conspicuously display the inscription, “no cash value.”    Eff  03/02/2007
(d)  	The chip may, but need not, display a number, which represents the number of points or units of credit that the chip represents. If such a number is used, it must appear on both sides of the chip.   Eff  03/02/2007
(e)  	Tournament chips may not be used, and licensees shall not permit their use, in transactions other than the tournaments or promotions sponsored by the licensee.   Eff  03/02/2007
(3)  	If an approved table game requires the use of special chips or tokens, such chips and tokens shall have these specifications:   Eff  03/02/2007
(a)  	The name of the retail licensee offering the game must be inscribed or printed on both sides of the chip or token.   Eff  03/02/2007
(b)  	The name of the game, or a logo representing the game, must be inscribed or printed on both sides of the chip or token.   Eff  03/02/2007
(c)  	The chip or token may, but need not, display a number which represents the value of the chip. If such a number is used, it must appear on both sides of the chip.   Eff  03/02/2007
(d)  	During field trial testing of a proposed variation table game, and for not longer than the first 30 days that a retail licensee offers play of an approved table game, game chips and tokens may be used without the inscriptions required by (3)(a), above.   Eff  03/02/2007
(e)  	Chips and tokens designed and approved for play of specific games may not be used, and licensees shall not permit their use, in play of any game other than the designated game.   Eff  03/02/2007
(4)	Nonvalue roulette chips.
	(a)	The design of nonvalue roulette chips shall be distinctively different than the design of the chips and tokens approved for any other limited gaming use at the licensee’s gaming establishment.
	(b)	No roulette chip may display a word or symbol representing a monetary denomination.
	(c)	Each nonvalue chip utilized by a licensee shall be issued solely for the purpose of gaming at roulette. The nonvalue chip(s) at each roulette table shall include:
		(i)	The name of the issuing establishment inscribed on both sides of the chip;
		(ii)	A design, insert or symbol, on both sides, differentiating it from the nonvalue chips being used at every other roulette table in the establishment; and
		(iii)	The word “roulette” imprinted on both sides.
	(d)	Nonvalue roulette chips issued at a roulette table shall only be used for gaming at that table in the licensee’s gaming establishment and shall not be used for gaming at any other table in the licensee’s gaming establishment.
	(e)	No person at a roulette table shall be issued or permitted to game with nonvalue chips that are identical in color and design to value or nonvalue chips being used by another person at the same table.
	(f)	Nonvalue chips shall only be presented for redemption at the table from which they were issued and shall not be redeemed or exchanged at any other location in the licensee’s gaming establishment.  When so presented, the dealer at such table shall exchange them for an equivalent amount of value chips which may then be used by the patron in other gaming or redeemed as any other value chips.
47.1-1215    Colors of chips.
Denominations of chips must be denoted by the following colors on each side:
(1)    	The 25-cent chip must be predominantly yellow;
(2)    	The 50-cent chip must be predominantly blue;
(3)    	The one dollar chip must be predominantly white;
(3.5)    	The two dollar and fifty cent chip must be predominately pink;
(4)    	The five dollar chip must be predominantly red;
(4.5)    	The ten dollar chip must be predominantly gray;
(5)    	The twenty five dollar chip must be predominantly green; 
(5.5)    	The one hundred dollar chip must be predominately black;
(5.6)	The five hundred dollar chip must be predominately purple; and
(5.7)	The one thousand dollar chip must be predominately orange.
(6)    	Tournament chips may be of any color.
(7)    	Chips designed for play of specific games may be of any color, or in the colors required by the rules of the game.  (47.1-1215(6) amended, (7) added perm 05/30/01); (4.5) added perm 08/30/02