23-5-604. Player rewards system -- privacy of player -- penalty. (1) (a) A licensed gambling operator may use a player rewards system. A player rewards system interface must be submitted to the state for approval pursuant to subsection (9), but the licensed gambling operator may utilize any technology available for the input or utilization of player rewards data.

(b) The department may not require approval of modifications to a video gambling machine cabinet by a manufacturer or licensee if the modifications do not have the potential to affect the play of the machine or any approved system.

(2) Player rewards system data received from a player rewards system:

(a) must remain confidential and may be used only for the purposes of player rewards;

(b) is protected as confidential trade secrets of the licensed gambling operator;

(c) may be used for managing and operating a player rewards system by the licensed gambling operator for the individual licensed premises where the system is located;

(d) may be electronically stored, including off-site electronic storage over the internet;

(e) may be accessed and used remotely by the player rewards system manufacturer, developer, distributor, video gaming machine route operator, or the licensed gambling operator for the purposes of maintenance, repairs, upgrades, and enhancements, as well as managing and operating a player rewards system, if access is authorized by the licensed gambling operator; and

(f) may not be shared between individual licensed premises.

(3) Any personally identifiable information of the player may not be used for any purpose other than for player rewards and may not be shared between individual licensed premises.

(4) A route operator may not tie the purchase, lease, or rental of a player rewards system to a video gambling machine route operator contract.

(5) Player rewards data must be retrievable in a common data format so that it may be exported from one system and imported into another system at the request of the licensed gambling operator.

(6) A player rewards system must be available for any licensed gambling operator to purchase, rent, or lease under similar terms.

(7) Player rewards data may be sold or passed from a licensed gambling operator to a party purchasing that same alcoholic beverage license or by the same licensed gambling operator if a new alcoholic license is purchased for use at the same individual licensed premises.

(8) A player may voluntarily opt in for membership in a player rewards system. A player who opts in to membership in a player rewards system is considered to have consented for personally identifiable information to be collected by the licensed gambling operator and for player rewards system data to be used for the purposes of player rewards. A player may opt out of a player rewards system at any time.

(9) If a player rewards system communicates with a video gambling machine, the department shall only test and approve the hardware interface and software interface to ensure that the player rewards system does not affect the play of the video gambling machine. For player rewards systems not communicating with a video gambling machine, department approval is not required, although the department may ensure that player rewards system data is protected and used in compliance with this section.

(10) The unauthorized use or dissemination of player rewards data is prohibited, and a violation of this section may be punished as provided in 23-5-136. The department may only investigate the reported misuse of a player rewards system and data. Any player rewards data obtained by the department must be protected as confidential trade secret property.

(11) The player rewards system manufacturer is required to license with the state as an associated gambling business.