House-banked card room licensees may use only nondisplayed progressive jackpot funds to purchase merchandise prizes to be offered on a progressive jackpot game in lieu of fixed prizes as set out in the approved pay table for the card game as posted on the commission's website. The merchandise purchased must be of equal or greater value to the fixed prizes offered in approved pay tables. Licensees must:

(1) Obtain approval from the company that owns the rights to the progressive jackpot card game to offer merchandise prizes; and

(2) Submit internal controls for review and approval; and

(3) Own the merchandise prizes and pay for them in full, without lien or interest of others, before they award the merchandise as prizes. If the winner has an option to receive a cash prize instead of the merchandise, licensees may enter into a contract to immediately purchase a merchandise prize after the winner chooses their option; and

(4) Prominently post a notice at the progressive jackpot gaming table describing:

(a) A specific portion of the jackpot funds were used to buy merchandise to be awarded as prizes, as well as the specific merchandise prizes to be awarded; and

(b) The value of the merchandise they plan to award. This value must be accurate and verifiable; and

(c) The predetermined designated hand needed to win the merchandise prize; and

(d) Fees or restrictions associated with ownership of the merchandise prize; and

(5) Display merchandise prize or an accurate description or photograph of the merchandise prize for the public to view; and

(6) Keep detailed records, including the purchase invoice, on premises and make them available for our review.