PRINTER'S NO. 2339
No. 2121 Session of 2007
INTRODUCED BY DeWEESE, WANSACZ, CALTAGIRONE, EACHUS, FABRIZIO,
FRANKEL, GERBER, HARHAI, HARKINS, HORNAMAN, KULA, OLIVER,
PALLONE, PASHINSKI, SANTONI, SHIMKUS, SURRA, J. WHITE,
WOJNAROSKI AND SIPTROTH, JULY 14, 2007
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, JULY 14, 2007
AN ACT
1 Relating to amusement; authorizing table games; imposing powers
2 and duties on the Pennsylvania Gaming Control Board;
3 providing for eligibility to conduct authorized table games,
4 for licensure of table game facilities, for conduct of
5 authorized table games, for statement of compliance, for
6 certificate of operation, for table game employees, for key
7 employees, for service industry employees and for licensure
8 of table game service industries; imposing powers and
9 conferring duties on the Bureau of Investigation and
10 Enforcement, the Pennsylvania State Police and the Attorney
11 General; providing for distribution of gross table game
12 revenue, for property tax relief, for corrupt organizations,
13 for prohibitions, for inspections, for enforcement and for
14 compulsive and problem gambling assistance; providing
15 penalties; making appropriations; and making related repeals.
16 TABLE OF CONTENTS
17 Chapter 1. Preliminary Provisions
18 Section 101. Short title.
19 Section 102. Legislative finding and declaration.
20 Section 103. Definitions.
21 Chapter 2. Table Games Authorized
22 Section 201. Authorization to conduct table games.
23 Section 202. Authorized locations for operation.
1 Section 203. Commencement of table game operations.
2 Section 204. Applicability.
3 Chapter 3. Duties of Board
4 Section 301. General powers.
5 Section 302. Powers and duties of board.
6 Section 303. Regulatory powers.
7 Section 304. Denials and sanctions.
8 Section 305. Annual report, study and recommendations.
9 Section 306. Application hearing process.
10 Section 307. Board minutes and records.
11 Section 308. Maintenance of information.
12 Section 309. Temporary regulations.
13 Section 310. Diversity goals and requirements of board.
14 Section 311. Application appeals.
15 Section 312. Issuance of license, permit or registration.
16 Chapter 4. Fees, Fines and Penalties
17 Section 401. Authority of board; imposition and collection of
18 fees, fines and penalties.
19 Section 402. Table game license fee.
20 Section 403. Deposit of fees.
21 Section 404. Ability to pay license fee.
22 Chapter 5. Authorized Licenses
23 Section 501. Table game licensing requirements.
24 Section 502. Statement of compliance.
25 Section 503. Table game license applicant eligibility.
26 Section 504. Requirements to manage.
27 Section 505. Eligibility of corporations.
28 Section 506. Restrictions on licensure.
29 Chapter 6. Table Game License Application
30 Section 601. Application for table game license.
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1 Section 602. Disqualification for licensure.
2 Section 603. Order approving or denying table game license
3 and investigation.
4 Section 604. Renewal of table game license.
5 Section 605. Bond.
6 Section 606. Confidentiality of information.
7 Chapter 7. Table Game Key Employee License
8 Section 701. Licensure of table game key employees.
9 Section 702. Denial of license.
10 Section 703. Petition for temporary license.
11 Chapter 8. Table Game Employee Occupation Permit
12 Section 801. Occupation permit required.
13 Section 802. Requirements for permit.
14 Section 803. Residency.
15 Section 804. Convictions not basis for denial of permit.
16 Chapter 9. Table Game Service Employees
17 Section 901. Table game service employees registration
18 required.
19 Section 902. Application requirements.
20 Section 903. Residency.
21 Section 904. Convictions not basis for revocation of
22 registration.
23 Section 905. Petition for registration.
24 Section 906. Registration fee.
25 Chapter 10. Table Game Service Industry
26 Section 1001. Licensure of table game service industry.
27 Section 1002. Qualifications of table game service industry.
28 Section 1003. Table game service industries.
29 Section 1004. Restrictions on exempted persons.
30 Section 1005. Disqualification.
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1 Section 1006. Proof of business license and taxes.
2 Section 1007. Subcontractor requirements.
3 Chapter 11. Approval or Denial of License, Permit or
4 Registration
5 Section 1101. Investigation.
6 Section 1102. Issuance or denial of license, permit or
7 registration.
8 Section 1103. Authority to deny application.
9 Section 1104. Issuance and renewal of license, permit or
10 registration.
11 Section 1105. Time for renewal; extension.
12 Chapter 12. Transfers
13 Section 1201. Transfer of property or security.
14 Section 1202. Request for interim authorization.
15 Section 1203. Trust agreements.
16 Section 1204. Obligations and responsibilities.
17 Section 1205. Time for determining qualification.
18 Chapter 13. Conditions of Operation
19 Section 1301. Operation certificate.
20 Section 1302. Condition of continued operation.
21 Section 1303. Hours of operation.
22 Chapter 14. Game and Facility Requirements
23 Section 1401. Authorized table games.
24 Section 1402. Wagers and payoffs.
25 Section 1403. Information to patrons and players.
26 Section 1404. Acceptance of tips.
27 Section 1405. Table game facility requirements.
28 Section 1406. Table game devices, apparatuses, equipment and
29 supplies.
30 Section 1407. Restrictions and prohibitions.
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1 Section 1408. Density requirement.
2 Section 1409. Approved hotels.
3 Chapter 15. Internal Controls
4 Section 1501. Internal controls.
5 Section 1502. Modification of internal controls.
6 Section 1503. Additional submissions to board.
7 Chapter 16. Credit
8 Section 1601. Restriction on provision of credit.
9 Section 1602. Acceptance of checks.
10 Section 1603. Prohibition on provision of credit.
11 Section 1604. Accounts, deposits and transactions.
12 Section 1605. Limitation on amount redeemed.
13 Chapter 17. Supplier and Manufacturer Licenses
14 Section 1701. Supplier and manufacturer licenses.
15 Section 1702. Additional eligibility requirements.
16 Section 1703. Issuance of license.
17 Section 1704. Additional supplier license requirements.
18 Section 1705. Records.
19 Section 1706. Inspections.
20 Chapter 18. Junkets and Complimentary Services
21 Section 1801. Junkets.
22 Section 1802. Temporary occupation permit.
23 Section 1803. Agreements.
24 Section 1804. Responsibility of licensee for conduct of
25 junket.
26 Section 1805. Violation of terms of junket.
27 Section 1806. Records of junkets.
28 Section 1807. Report of junket participants.
29 Section 1808. Junket arrangements; exemption determination.
30 Section 1809. Prohibitions relating to junkets.
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1 Section 1810. Complimentary services.
2 Section 1811. Prohibition on provision of complimentary
3 services.
4 Chapter 19. Professional Services
5 Section 1901. Definitions.
6 Section 1902. Reporting of professional services.
7 Chapter 20. Agreements, Leases and Contracts
8 Section 2001. Payments under agreement, lease or contract.
9 Section 2002. Maintenance of records.
10 Section 2003. Termination of agreement by board.
11 Section 2004. Transfer of license.
12 Chapter 21. Corporate Licensees
13 Section 2101. Disposition of securities.
14 Section 2102. Action upon finding of disqualification.
15 Section 2103. Prohibition upon disqualification.
16 Section 2104. Reports by public and nonpublicly traded
17 corporations.
18 Section 2105. Report of changes in corporation.
19 Chapter 22. Employment
20 Section 2201. Table game facility employment.
21 Chapter 23. Table Game Revenue
22 Section 2301. Accounts and deposits.
23 Section 2302. Gross table game revenue deductions.
24 Section 2303. Table game tax.
25 Section 2304. Distribution to Pennsylvania Race Horse
26 Development Fund.
27 Chapter 24. Administration and Enforcement
28 Section 2401. Authority and responsibility of department.
29 Section 2402. Powers and duties of bureau.
30 Section 2403. Duties of Pennsylvania State Police.
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1 Section 2404. Inspections.
2 Chapter 25. Prohibitions
3 Section 2501. Prohibitions.
4 Section 2502. Reports of suspicious transactions.
5 Section 2503. Specific offenses relating to table games and
6 penalties.
7 Section 2504. Underage gambling and prohibition.
8 Section 2505. Authority to detain.
9 Section 2506. Additional prohibitions and penalties.
10 Section 2507. Sanctions.
11 Section 2508. Continuing offenses.
12 Section 2509. Property subject to seizure, confiscation,
13 destruction or forfeiture.
14 Chapter 26. Racketeering and Corrupt Organizations
15 Section 2601. Racketeering and corrupt organizations.
16 Section 2602. Racketeering activity.
17 Chapter 27. Public Officials
18 Section 2701. Financial interest and prohibitions.
19 Section 2702. Political influence.
20 Chapter 28. Compulsive Gambling Assistance
21 Section 2801. Establishment of program; duties of licensee.
22 Chapter 29. Miscellaneous Provisions
23 Section 2901. Electronic funds transfer terminal; automatic
24 teller machines.
25 Section 2902. Liquor license.
26 Section 2903. Exclusive jurisdiction of Pennsylvania Supreme
27 Court.
28 Section 2904. Appropriations.
29 Section 2905. Severability.
30 Section 2906. Repeals.
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1 Section 2907. Effective date.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 CHAPTER 1
5 PRELIMINARY PROVISIONS
6 Section 101. Short title.
7 This act shall be known and may be cited as the Table Game
8 Authorization and Control Act.
9 Section 102. Legislative finding and declaration.
10 The General Assembly finds and hereby declares that this act
11 is intended to benefit the people of the Commonwealth of
12 Pennsylvania by providing additional revenue for the support of
13 property and wage tax relief. The General Assembly further finds
14 that the authorization for and development of a controlled
15 gaming industry requires careful exercise of legislative power
16 to protect the general health, welfare and safety of the people
17 of this Commonwealth. Therefore, the General Assembly further
18 finds and declares that:
19 (1) It is the public policy of this Commonwealth that
20 the authorization to conduct and operate table games at
21 licensed slot machine facilities to generate revenue for
22 property and wage tax relief and promote investment, economic
23 development and tourism, including international tourism,
24 requires the enactment of comprehensive measures to ensure
25 that table games are free from criminal and corruptive
26 elements, conducted honestly and competitively, and in
27 suitable locations.
28 (2) The policy purposes of this act will not be achieved
29 unless public confidence and trust in the credibility and
30 integrity of table game operations and their regulatory
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1 process is maintained. Accordingly, the provisions of this
2 act are crafted to strictly regulate table game facilities
3 and persons, locations, associations, activities and
4 practices related to the conduct and operation of authorized
5 table games.
6 (3) Public trust and confidence in table game operations
7 can only be maintained by strict and comprehensive regulation
8 of all persons, locations, associations, activities and
9 practices related to the conduct and operation of licensed
10 table game facilities; the manufacture and distribution of
11 table game equipment, apparatuses, devices and supplies; and
12 the provision of goods, services and property used in the
13 conduct and operation of authorized table games at licensed
14 table game facilities.
15 (4) All table game operations, all individuals and
16 persons who have or will have a significant involvement in
17 table game operations, all licensed slot machine facilities
18 where table games will be conducted, all manufacturers,
19 suppliers and other approved persons that provide table game
20 equipment, apparatuses, devices and supplies and all
21 providers of goods, services and property used in the conduct
22 and operation of authorized table games and table game
23 facilities shall be approved, licensed or regulated to
24 protect the public health, safety and general welfare of the
25 residents of this Commonwealth as an exercise of the police
26 power of this Commonwealth.
27 (5) In order to effectuate the policy purposes of this
28 act, it is necessary and essential:
29 (i) that table game facilities, activities and all
30 equipment, devices, apparatuses and supplies used in the
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1 conduct of authorized table games and persons
2 participating in those activities be licensed, permitted
3 or registered or otherwise approved or qualified by the
4 Pennsylvania Gaming Control Board in accordance with the
5 provisions of this act;
6 (ii) that certain transactions, events and processes
7 involving licensed table game facilities and table game
8 licensees be subject to prior approval;
9 (iii) that unsuitable persons not be permitted to
10 associate with table game licensees and other persons
11 involved in the conduct and operation of authorized table
12 games at licensed table game facilities; and
13 (iv) that table game activities take place only in
14 licensed slot machine facilities.
15 (6) To ensure that table game operations are conducted
16 honestly, competitively and free of criminal and corruptive
17 elements. Any license, permit or registration or any other
18 approval issued or granted pursuant to this act is deemed a
19 revocable privilege and is not a property right.
20 Section 103. Definitions.
21 The following words and phrases when used in this act shall
22 have the meanings given to them in this section unless the
23 context clearly indicates otherwise:
24 "Account" or "player's account." A financial record
25 established by a licensed table game facility for an individual
26 patron to which the facility may credit winnings and other
27 amounts due to the patron and from which the patron may withdraw
28 moneys due to the patron for purchase of tokens, chips or other
29 things or representatives of value.
30 "Affiliate." A person that directly or indirectly, through
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1 one or more intermediaries, controls, or is controlled by, or is
2 under common control with the affiliated person.
3 "Applicant." A person who, on his own behalf or on the
4 behalf of another, has applied to the Pennsylvania Gaming
5 Control Board for approval to engage in any act or activity
6 authorized or regulated under the provisions of this act.
7 "Application." A written request for permission to engage in
8 any act or activity which is authorized or regulated under the
9 provisions of this act.
10 "Approve," "approved" or "approval." In the case of an
11 application submitted to the Pennsylvania Gaming Control Board
12 for qualification for a table game license and the authority to
13 conduct table games, the terms, regardless of usage, refer to
14 the date that the Pennsylvania Gaming Control Board grants the
15 table game license, regardless of the pendency of any
16 administrative or judicial appeal or other legal action
17 challenging the decision of the Pennsylvania Gaming Control
18 Board.
19 "Authorized game," "authorized table game" or "game." Any
20 banking, nonbanking or percentage game played with cards, dice,
21 tiles, dominoes or any mechanical, electronic, computerized or
22 electrical device used to play a table game for money, property,
23 checks, credit or any representation of value, including,
24 without limiting the generality of the foregoing, roulette,
25 baccarat, blackjack, craps, big six wheel, mini-baccarat, red
26 dog, pai gow, poker, twenty-one, acey-ducey, chuck-a-luck, fan-
27 tail, panguingui, chemin de fer, sic bo, and any variations or
28 composites of such games, provided that the variations or
29 composites are found by the Pennsylvania Gaming Control Board to
30 be suitable for use after an appropriate test or experimental
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1 period under terms and conditions as the Pennsylvania Gaming
2 Control Board may determine appropriate; and any other game,
3 including multiplayer electronic table games, which is
4 determined by the Pennsylvania Gaming Control Board to be
5 compatible with the public interest and suitable for use in a
6 licensed table game facility after the appropriate test or
7 experimental period as the Pennsylvania Gaming Control Board
8 deems appropriate. The terms include table game contests or
9 tournaments in which players compete against one another in one
10 or more of the table games authorized under this act or by the
11 Pennsylvania Gaming Control Board or approved variations or
12 composites of those games, provided the Pennsylvania Gaming
13 Control Board authorizes the contests or tournaments. The term
14 shall not include:
15 (1) Lottery games of the Pennsylvania State Lottery as
16 authorized under the act of August 26, 1971 (P.L.351, No.91),
17 known as the State Lottery Law.
18 (2) Bingo as authorized under the act of July 10, 1981
19 (P.L.214, No.67), known as the Bingo Law.
20 (3) Pari-mutuel betting on the outcome of thoroughbred
21 or harness horse racing as authorized under the act of
22 December 17, 1981 (P.L.435, No.135), known as the Race Horse
23 Industry Reform Act.
24 (4) Small games of chance as authorized under the act of
25 December 19, 1988 (P.L.1262, No.156), known as the Local
26 Option Small Games of Chance Act.
27 (5) Slot machine gaming and progressive slot machine
28 gaming as authorized under 4 Pa.C.S. Pt. II (relating to
29 gaming).
30 "Background investigation." A security, criminal, financial,
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1 credit and/or suitability investigation of a person who has
2 applied for the issuance or renewal of a license, permit or
3 registration under this act, or of a licensee who holds a
4 current license. The background investigation shall include the
5 status of any taxes owed to the United States, the Commonwealth
6 or political subdivisions of the Commonwealth or any other
7 jurisdiction.
8 "Board." The Pennsylvania Gaming Control Board.
9 "Bureau." The Bureau of Investigation and Enforcement of the
10 Pennsylvania Gaming Control Board established under 4 Pa.C.S.
11 Pt. II (relating to gaming).
12 "Cash." United States currency and coin or foreign currency
13 and coin that have been exchanged for its equivalent in United
14 States currency and coin.
15 "Cash equivalent." An asset that is readily convertible to
16 cash, including, but not limited to, any of the following:
17 (1) Travelers checks.
18 (2) Certified checks, cashier's checks and money orders.
19 (3) Personal checks or drafts.
20 (4) Credit extended by the table game licensee, a
21 recognized credit card company or banking institution.
22 (5) Any other instrument that the Pennsylvania Gaming
23 Control Board deems a cash equivalent. Other than recognized
24 credit cards or credit extended by the table game licensee,
25 all instruments that constitute a cash equivalent shall be
26 made payable to the table game licensee, bearer or to cash.
27 An instrument made payable to a third party shall not be
28 considered a cash equivalent under this definition.
29 "Cash equivalent value." The monetary value that a table
30 game licensee shall assign to a jackpot or payout that consists
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1 of merchandise or any thing of value other than cash, tokens,
2 chips or plaques. The Pennsylvania Gaming Control Board shall
3 promulgate rules defining "cash equivalent value" in order to
4 assure fairness, uniformity and comparability of valuation of
5 jackpots and payoffs that include merchandise or anything of
6 value.
7 "Chairman." The chairperson of the Pennsylvania Gaming
8 Control Board.
9 "Chip." A representation of value redeemable for cash only
10 at the issuing table game facility and issued by the table game
11 licensee for use in playing an authorized table game.
12 "Complimentary service or item." A service or item provided
13 at no cost or at a reduced price. The furnishing of a
14 complimentary service or item by a table game licensee shall
15 constitute the indirect payment for the service or item by the
16 table game licensee, and shall be valued in an amount based upon
17 the retail price normally charged by the table game licensee for
18 the service or item. The value of a complimentary service or
19 item not normally offered for sale by a table game licensee or
20 provided by a third party on behalf of a table game licensee
21 shall be the cost to the table game licensee of providing the
22 service or item, as determined in accordance with the rules of
23 the Pennsylvania Gaming Control Board.
24 "Control" or "controlling interest." For a publicly traded
25 domestic or foreign corporation, a controlling interest is an
26 interest in a legal entity, applicant or licensee if a person's
27 sole voting rights under State law or corporate articles or
28 bylaws entitle the person to elect or appoint one or more of the
29 members of the board of directors or other governing board or
30 the ownership or beneficial holding of 5% or more of the
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1 securities of the publicly traded corporation, partnership,
2 limited liability company or other form of publicly traded legal
3 entity, unless this presumption of control or ability to elect
4 is rebutted by clear and convincing evidence. For a privately
5 held domestic or foreign corporation, partnership, limited
6 liability company or other form of privately held legal entity,
7 a controlling interest is the holding of any securities in the
8 legal entity, unless this presumption of control is rebutted by
9 clear and convincing evidence.
10 "Conviction." A finding of guilt or a plea of guilty or nolo
11 contendere, whether or not a judgment of sentence has been
12 imposed as determined by the law of the jurisdiction in which
13 the prosecution was entered. The term shall not include a
14 conviction that has been expunged, overturned or for which an
15 individual has been pardoned or where an order of accelerated
16 rehabilitative disposition has been completed.
17 "Counterfeit chips or tokens." Chip-like or token-like
18 objects that have not been approved by the Pennsylvania Gaming
19 Control Board for use in authorized table games, including
20 objects commonly referred to as "slugs," but not including legal
21 coins of the United States or any foreign country or
22 jurisdiction.
23 "Count room." The room or rooms designated for counting,
24 wrapping and recording of a table game licensee's authorized
25 table game receipts.
26 "Creditor." The holder of any claim, of whatever character,
27 against a person, whether secured or unsecured, matured or
28 unmatured, liquidated or unliquidated, absolute, fixed or
29 contingent.
30 "Debt." Any legal liability, whether matured or unmatured,
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1 liquidated or unliquidated, absolute, fixed or contingent.
2 "Department." The Department of Revenue of the Commonwealth.
3 "Encumbrance." A mortgage, security interest, lien or charge
4 of any nature in or upon property.
5 "Equity security." Any voting stock of a corporation or
6 similar security; any security convertible, with or without
7 consideration, into a security; the carrying of any warrant or
8 right to subscribe to or purchase a security or any such warrant
9 or right; or any security having direct or indirect
10 participation in the profits of the issuer.
11 "Establishment." A single building or two or more buildings,
12 including an approved hotel, that are physically connected in a
13 manner deemed appropriate by the Pennsylvania Gaming Control
14 Board, containing a table game facility, a slot machine facility
15 or any other facility, as approved by the Pennsylvania Gaming
16 Control Board.
17 "Gaming activity." The dealing, operating, carrying on,
18 conducting, maintaining or exposing for play any authorized
19 table game.
20 "Gross table game revenue."
21 (1) The total of wagers received in the playing of an
22 authorized table game minus the total of:
23 (i) Cash or cash equivalents paid out to patrons as
24 a result of playing an authorized table game.
25 (ii) Cash paid to purchase annuities to fund prizes
26 payable to patrons over a period of time as a result of
27 playing an authorized table game.
28 (iii) Any personal property distributed to a patron
29 as the result of playing an authorized table game. This
30 does not include travel expenses, food, refreshments,
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1 lodging or any other complimentary services or items.
2 (2) The term does not include counterfeit money or
3 tokens, coins or currency of other countries which are
4 received in the playing of an authorized table game, except
5 to the extent that they are readily convertible to United
6 States currency; cash taken in fraudulent acts perpetrated
7 against a table game licensee for which the table game
8 licensee is not reimbursed; or cash received as entry fees
9 for contests or tournaments in which the patrons compete for
10 prizes.
11 "Holding company." Any corporation, association, firm,
12 partnership, trust or other form of business organization not a
13 natural person that, directly or indirectly, owns, has the power
14 or right to control, or has the power to vote any significant
15 part of the outstanding voting securities of a corporation or
16 other form of business organization which holds or applies for a
17 table game license. For the purpose of this definition, in
18 addition to any other reasonable meaning of the words used, a
19 holding company indirectly has, holds or owns power, right or
20 security if it does so through any interest in a subsidiary or
21 successive subsidiaries, however many subsidiaries may intervene
22 between the holding company and the table game licensee or an
23 applicant for a table game license.
24 "Institutional investor." Any of the following:
25 (1) Any retirement fund administered by a public agency
26 for the exclusive benefit of Federal, State or local public
27 employees.
28 (2) Any investment company registered under the
29 Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
30 80a-1 et seq.).
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1 (3) Any collective investment trust organized by banks
2 under Part Nine of the Rules of the Comptroller of the
3 Currency.
4 (4) Any closed-end investment trust, chartered or
5 licensed life insurance company or property and casualty
6 insurance company, banking and other chartered or licensed
7 lending institution or investment advisor registered under
8 the Investment Advisors Act of 1940 (54 Stat. 847, 15 U.S.C.
9 § 80b-1 et seq.).
10 (5) Other persons that the Pennsylvania Gaming Control
11 Board may determine consistent with this act.
12 "Intermediary company." Any corporation, association, firm,
13 partnership, trust or any other form of business organization
14 other than a natural person which:
15 (1) Is a holding company with respect to a corporation
16 or other form of business organization which holds or applies
17 for a table game license.
18 (2) Is a subsidiary with respect to any holding company.
19 "Issue," "issued" or "issuance." In the case of an
20 application submitted to the Pennsylvania Gaming Control Board
21 for qualification and authorization to conduct authorized table
22 games in accordance with this act, the terms refer to the date
23 on which the Pennsylvania Gaming Control Board approves the
24 application and on which the application becomes final, binding
25 and nonappealable and is not subject to a pending legal
26 challenge.
27 "Junket." An arrangement for which an individual is selected
28 or approved for participation on the basis of the individual's
29 ability to satisfy a financial qualification or the individual's
30 likelihood to participate in gaming, to come to a licensed table
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1 game facility for the purpose of gaming and pursuant to which,
2 and as consideration for which, any or all of the cost of
3 transportation, food, lodging and entertainment for the
4 individual is directly or indirectly paid by a table game
5 licensee or employee or agent thereof.
6 "Junket enterprise." Any person, other than the holder of or
7 an applicant for a table game license, who employs or otherwise
8 engages the services of a junket representative in connection
9 with a junket to a table game facility, regardless of whether or
10 not those activities occur within this Commonwealth.
11 "Junket representative." Any natural person who negotiates
12 the terms of or engages in the referral, procurement or
13 selection of persons who may participate in any junket to a
14 licensed table game facility, regardless of whether or not those
15 activities occur within this Commonwealth.
16 "License." Any license issued in accordance with or required
17 under this act.
18 "License or registration fee." Any moneys required under
19 this act or by law or regulation to be paid for the issuance or
20 renewal of a table game license, a supplier license, a
21 manufacturer license, service industry license or any other
22 license issued under this act.
23 "Licensed entity." A table game licensee, manufacturer
24 licensee, supplier licensee, service industry licensee or any
25 other person licensed by the Pennsylvania Gaming Board under
26 this act.
27 "Licensed facility." The physical land based location and
28 associated areas at which a licensed gaming entity is authorized
29 to place and operate slot machines pursuant to and in accordance
30 with 4 Pa.C.S. Pt. II (relating to gaming) and to conduct and
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1 operate authorized table games under this act.
2 "Licensed gaming entity" or "slot machine licensee." A
3 person that holds a slot machine license pursuant to 4 Pa.C.S.
4 Pt. II (relating to gaming).
5 "Licensed table game entity." A licensed gaming entity that
6 has been approved for and that holds a table game license under
7 this act.
8 "Licensed table game facility." The physical location and
9 associated areas, including areas in an approved hotel, of a
10 licensed facility where authorized table games are conducted by
11 a licensed table game entity.
12 "Licensee." A person who has been approved for and who holds
13 a table game license or any other license issued under this act.
14 "Manufacturer." A person who manufactures, builds, rebuilds,
15 fabricates, assembles, produces, programs, designs or otherwise
16 makes modification to table game equipment, apparatuses, devices
17 and supplies for use in or play of authorized table games in
18 this Commonwealth.
19 "Manufacturer license." A license issued by the Pennsylvania
20 Gaming Control Board in accordance with this act that authorizes
21 a manufacturer to conduct or engage in business in this
22 Commonwealth.
23 "Manufacturer licensee." A person who has been approved for
24 and who holds a manufacturer license.
25 "Municipality." A county, city, borough, incorporated town
26 or township.
27 "Occupation permit." A permit authorizing an individual to
28 be employed or work as a table game employee at a licensed table
29 game facility.
30 "Operation." The conduct of authorized table games as
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1 authorized under this act.
2 "Operation certificate." A certificate issued by the
3 Pennsylvania Gaming Control Board that certifies that the
4 operation of a licensed table game facility conforms to the
5 requirements of this act and regulations promulgated pursuant to
6 this act.
7 "Party." The Pennsylvania Gaming Control Board, the Bureau
8 of Investigation and Enforcement or any licensee, permittee,
9 registrant, applicant or any person appearing of record for any
10 licensee, permittee, registrant or applicant in any proceeding
11 before the Pennsylvania Gaming Control Board or in any
12 proceeding for judicial review of any action, decision or order
13 of the Pennsylvania Gaming Control Board.
14 "Patron." A person who plays an authorized table game at a
15 licensed table game facility in accordance with this act.
16 "Permittee." An individual who holds an occupation permit
17 issued in accordance with this act.
18 "Person." Any natural person, corporation, foundation,
19 organization, business trust, estate, limited liability company,
20 licensed corporation, trust, partnership, limited liability
21 partnership, association or any other form of legal business
22 entity.
23 "Principal employee." Any table game key employee who is an
24 officer or director or who, by reason of remuneration or of a
25 policymaking position or other criteria as may be established by
26 the Pennsylvania Gaming Control Board by regulation, holds or
27 exercises authority that, in the judgment of the Pennsylvania
28 Gaming Control Board, is sufficiently related to the operation
29 of a licensed table game facility so as to require
30 qualification.
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1 "Property." Real property, tangible and intangible personal
2 property and rights, claims and franchises of every nature.
3 "Publicly traded company." Any corporation or other legal
4 entity, except a natural person, to which any of the following
5 apply:
6 (1) Has one or more classes of security registered
7 pursuant to section 12 of the Securities Exchange Act of 1934
8 (48 Stat. 881, 15 U.S.C. § 78a et seq.).
9 (2) Is an issuer subject to section 15(d) of the
10 Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. §
11 78a et seq.).
12 (3) Has one or more classes of securities traded in any
13 open market in any foreign jurisdiction or regulated pursuant
14 to a statute of any foreign jurisdiction that the
15 Pennsylvania Gaming Control Board determines to be
16 substantially similar to either or both of the aforementioned
17 statutes.
18 "Qualification" or "qualified." A determination or finding
19 by the Pennsylvania Gaming Control Board that a person, other
20 than a person specifically required to obtain a license, permit
21 or registration under this act, meets the eligibility
22 requirements for a license under this act and the nature of the
23 person's employment or association with or ownership interest in
24 an applicant or table game licensee will require the person to
25 qualify for a license under this act.
26 "Qualified licensed facility." A licensed facility under 4
27 Pa.C.S. Pt. II (relating to gaming) that is approved by the
28 Pennsylvania Gaming Control Board to operate authorized table
29 games under this act.
30 "Registrant." A person who is registered with the
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1 Pennsylvania Gaming Control Board pursuant to this act.
2 "Registration." Any requirement, other than one that
3 requires a license or permit, that requires a person to qualify
4 and register as a prerequisite to the conduct of a particular
5 business or activity specified in this act.
6 "Regulated complimentary service account." An account
7 maintained by a table game licensee on a regular basis that
8 itemizes complimentary services and includes, without
9 limitation, a listing of the cost of junket activities and any
10 other service provided by a table game licensee at no cost or at
11 a reduced price.
12 "Resident." Any individual domiciled and living within this
13 Commonwealth having a present intent to remain within this
14 Commonwealth for a period of time and manifesting the
15 genuineness of that intent by establishing an ongoing physical
16 presence within this Commonwealth, together which indicate that
17 the individual's presence within this Commonwealth is not merely
18 transitory in nature.
19 "Restricted table game area" or "restricted area." The
20 cashier's cage, the soft count room, the hard count room, the
21 interior of table game pits, the surveillance room and catwalk
22 areas, and any other area specifically designated by the
23 Pennsylvania Gaming Control Board as a restricted area in a
24 table game licensee's operation certificate.
25 "Security." Any instrument evidencing a direct or indirect
26 beneficial ownership or creditor interest in a corporation or
27 other form of business organization, including, but not limited
28 to, common or preferred stock, bonds, mortgages, debentures,
29 security agreements, notes, warrants, options and rights.
30 "Slot machine license." A license issued to an applicant to
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1 place and operate slot machines in a licensed facility pursuant
2 to 4 Pa.C.S. Pt. II (relating to gaming).
3 "Statement of compliance." A statement by the Pennsylvania
4 Gaming Control Board that may be issued to an applicant for a
5 license under this act that indicates satisfactory completion of
6 a particular stage or stages of the application or license
7 consideration process, and that states that unless there is a
8 change of any material circumstance pertaining to the particular
9 stage or stages of license consideration involved in the
10 statement, the applicant has complied with the requirements of
11 this act for licensure and is therefore approved for license
12 qualification to the stage or stages for which the statement has
13 been issued.
14 "Subsidiary." Any corporation, any significant part of whose
15 outstanding equity securities are owned, subject to a power or
16 right of control, or held with power to vote, by a holding
17 company or an intermediary company or a significant interest in
18 a firm, association, partnership, trust or other form of
19 business organization, not a natural person, that is owned,
20 subject to a power or right of control, or held with power to
21 vote, by a holding company or an intermediary company.
22 "Supplier." A person who sells, leases, offers or otherwise
23 provides, distributes table game devices, equipment, apparatuses
24 or supplies or who repairs or services any table game devices,
25 equipment, apparatus or supplies for use or play of authorized
26 table games in this Commonwealth.
27 "Supplier license." A license issued by the Pennsylvania
28 Gaming Control Board authorizing a supplier to provide products
29 or services related to table games to a table game licensee.
30 "Supplier licensee." A person who holds a supplier license.
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1 "Table game device," "equipment," "apparatus" or "supplies."
2 Any cards, dice, chips, shufflers, tiles, dominoes, wheel, drop
3 boxes or any electronic, electrical, mechanical or computerized
4 contrivance or device, mechanism, machine, equipment or related
5 supplies used or consumed in operation or connection with
6 authorized table games at a licensed table game facility.
7 "Table game employee." Any natural person employed in the
8 operation of a licensed table game facility, including, but not
9 limited to, boxmen, dealers or croupiers, floormen, device or
10 equipment technicians, security employees, count room personnel,
11 cage personnel, collection personnel, surveillance personnel and
12 data processing personnel, or any other natural person whose
13 employment duties predominantly involve the maintenance or
14 operation of table games or table game devices, equipment or
15 apparatuses and assets associated therewith or who, in the
16 judgment of the Pennsylvania Gaming Control Board, is so
17 regularly required to work in a restricted table game area that
18 issuance of an occupation permit as a table game employee is
19 appropriate.
20 "Table game key employee." Any natural person employed in
21 the operation of a licensed table game facility in a supervisory
22 capacity or empowered to make discretionary decisions that
23 regulate table game facility operations, including, but not
24 limited to, pit bosses, shift bosses, credit supervisors,
25 cashier supervisors, table game facility managers and assistant
26 managers or supervisors of security employees, or any other
27 natural person empowered to make discretionary decisions,
28 including entertainment directors, and food and beverage
29 directors or any other employee designated by the Pennsylvania
30 Gaming Control Board for reasons consistent with the policies of
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1 this act.
2 "Table game operations" or "table game activities." The
3 exposing for play of one or more authorized table games that are
4 dealt, operated, carried on, conducted or maintained for
5 commercial gain in a licensed table game facility.
6 "Table game service employee." A natural person employed to
7 perform services or duties in a licensed table game facility or
8 restricted area of the licensed facility but who is not included
9 within the definition of "table game employee," "table game key
10 employee" or "security employee" as those terms are defined in
11 this section.
12 "Table game service industry." Any form of enterprise which
13 provides applicants or table games licensees with goods or
14 services regarding the realty, construction, maintenance, or
15 business of a proposed or existing licensed table game facility
16 on a regular or continuing basis, including, without limitation,
17 junket enterprises, security businesses, gaming schools, garbage
18 haulers, maintenance companies, food purveyors, and construction
19 companies, or any other such enterprise which purchases goods or
20 services from or which does any other business with licensed
21 table game facilities on a regular or continuing basis.
22 "Table game service industry license." A table game service
23 industry that obtains a table game service industry license
24 under this act.
25 "Transfer." The sale and every other method, direct or
26 indirect, of disposing of or parting with property or with an
27 interest in property, or with the possession of property, or of
28 fixing a lien upon property or upon an interest in property,
29 absolutely or conditionally, voluntarily or involuntarily, by or
30 without judicial proceedings, as a conveyance, sale, payment,
20070H2121B2339 - 26 -
1 pledge, mortgage, lien, encumbrance, gift, security or
2 otherwise. The reduction of a security interest in property
3 delivered to a corporation shall be deemed a transfer suffered
4 by the corporation.
5 "Wager." A sum of money, thing or representative of value
6 risked on an uncertain outcome of the play of an authorized
7 table game.
8 CHAPTER 2
9 TABLE GAMES AUTHORIZED
10 Section 201. Authorization to conduct table games.
11 Notwithstanding any other provision of law to the contrary,
12 the operation of table games and the system of wagering
13 associated with table games are hereby authorized to the extent
14 that table games are conducted in accordance with this act and
15 guidelines, policy statements, rules or regulations adopted and
16 promulgated by the board pursuant to this act.
17 Section 202. Authorized locations for operation.
18 Table games authorized pursuant to this act shall only be
19 operated by a licensed gaming entity that holds a license to
20 conduct slot machine gaming at a licensed facility pursuant to 4
21 Pa.C.S. Pt. II (relating to gaming).
22 Section 203. Commencement of table game operations.
23 Notwithstanding any provision of this act to the contrary, a
24 license to operate authorized table games issued under this act
25 shall not be construed to permit the operation of authorized
26 table games until one year subsequent to the operation of slot
27 machines by a licensed gaming entity at a licensed facility.
28 Section 204. Applicability.
29 This act and any guidelines, rules or regulations promulgated
30 pursuant to this act shall apply to all persons licensed,
20070H2121B2339 - 27 -
1 permitted or registered by the board to conduct authorized table
2 games or to otherwise participate in table gaming authorized
3 under this act.
4 CHAPTER 3
5 DUTIES OF BOARD
6 Section 301. General powers.
7 In addition to general jurisdiction over all gaming and
8 related activities conferred upon the board under 4 Pa.C.S. Pt.
9 II (relating to gaming), the board shall be responsible for
10 ensuring integrity in the conduct, establishment and operation
11 of authorized table games and shall have overall jurisdiction
12 over every aspect of the authorization, conduct, establishment
13 and operation of table games in this Commonwealth.
14 Section 302. Powers and duties of board.
15 The board shall implement the provisions of this act and
16 shall adopt any guidelines or policy statements and promulgate
17 any regulations necessary to carry out the provisions of this
18 act. The board shall have the duty, without limitation, to:
19 (1) Hear and decide in reasonable order all applications
20 for a table game license, manufacturer license, supplier
21 license and any other license, registration or permit
22 authorized under this act.
23 (2) At its discretion issue, approve, renew, revoke,
24 suspend, condition or deny issuance or renewal of any
25 license, permit or registration or any other qualification
26 authorized under this act. The board may deny, revoke,
27 condition, suspend or refuse to renew a license if it finds
28 that an applicant or a licensee or an officer, employee or
29 agent of an applicant or licensee has furnished false or
30 misleading information to the board or failed to comply with
20070H2121B2339 - 28 -
1 this act or any guidelines, policy statements, rules or
2 regulations of the board adopted and promulgated pursuant to
3 this act or under 4 Pa.C.S. (relating to gaming) and that it
4 would be in the public interest to deny, deny the renewal,
5 revoke, condition or suspend the license, permit or
6 registration.
7 (3) Require background investigations on prospective or
8 existing table game licensees, manufacturer licensees,
9 supplier licensees, permittees, registrants or other persons
10 holding a controlling interest in any prospective or existing
11 licensee, permittee or registrant or other person required to
12 be qualified for licensure, permitting, registration or
13 qualification under this act.
14 (4) Receive criminal history record information from the
15 Pennsylvania State Police and other law enforcement agencies.
16 Notwithstanding any other provision of law to the contrary,
17 the board is hereby authorized to receive criminal history
18 record information which is otherwise protected under the
19 provisions of 18 Pa.C.S. Ch. 91 (relating to criminal history
20 record information).
21 (5) The board is hereby designated as a law enforcement
22 agency for the purpose of 18 Pa.C.S. Ch. 91 and any other
23 statute of this Commonwealth or other jurisdiction providing
24 for the sharing, transmittal or receipt of information to or
25 from law enforcement agencies.
26 (6) Restrict access to confidential information in the
27 possession of the board which has been obtained under this
28 act and assure that the confidentiality of information
29 received by it is maintained and protected. Records shall be
30 retained by the board for seven years.
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1 (7) At its discretion, to suspend, revoke, condition or
2 deny the issuance or renewal of any license, permit or
3 registration or levy fines or impose sanctions for any
4 violation of this act.
5 (8) Require each applicant for a license, permit,
6 registration or qualification to submit to fingerprinting by
7 the Pennsylvania State Police. The Pennsylvania State Police
8 shall submit fingerprint images to the Federal Bureau of
9 Investigation to verify the identity of the applicant and
10 obtain criminal history record information.
11 (9) Determine the suitability of table game service
12 industries, including junket enterprises, junket
13 representatives or any other person who furnishes or seeks to
14 furnish to an authorized table game licensee, directly or
15 indirectly, any goods, service or property related to the
16 conduct, play and operation of table games and related
17 activities or through any arrangement under which a junket
18 enterprise, junket representative or any like person receives
19 payment based, directly or indirectly, on earnings, profits
20 or receipts from the conduct, play or operation of table
21 games. The board may require that a junket enterprise, junket
22 representative or like person comply with the requirements of
23 this act and the regulations of the board and may prohibit
24 the person from furnishing the goods, service or property.
25 (10) Conduct all hearings pertaining to administrative
26 violations of this act and regulations promulgated under this
27 act.
28 (11) Collect all application, license, permit and
29 registration fees and any other fees established by
30 regulation of the board.
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1 (12) Levy and collect penalties for the violation of
2 this act and the regulations promulgated under this act.
3 (13) Establish times as are necessary for agents of the
4 board to be present at a licensed table game facility for the
5 purpose of certifying the revenue, receiving complaints from
6 the public relating to the conduct of authorized table games,
7 examining records of revenues and procedures, and conducting
8 periodic reviews of table game and facility operations for
9 the purpose of evaluating current performance and compliance
10 with the requirements of this act and regulations promulgated
11 pursuant to this act.
12 (14) Refer to the Pennsylvania State Police or the
13 Attorney General for investigation and prosecution of any
14 evidence of a suspected or alleged violation of this act or
15 the regulations promulgated under this act.
16 (15) Review and rule upon any complaint by a table game
17 licensee regarding any investigative procedure of the bureau
18 or the Pennsylvania State Police, that is unnecessarily
19 disruptive of table game facility operations. The need to
20 inspect and investigate shall be presumed at all times. The
21 disruption of a table game licensee's operations shall be
22 proved by clear and convincing evidence, such evidence shall
23 establish the following:
24 (i) The procedures had no reasonable law enforcement
25 purpose.
26 (ii) The procedures were so disruptive as to
27 unreasonably inhibit table game facility operations. The
28 board may seek advice from the Attorney General when
29 reviewing any investigative procedures or practices of
30 the Pennsylvania State Police.
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1 (16) Review applications for licenses to operate
2 authorized table games.
3 (17) Prescribe and require periodic financial reporting
4 and internal controls for all table game facilities.
5 (18) Require each table game licensee to transmit to the
6 board an audit of the financial condition of the table game
7 licensee's total operations within 30 days after the end of
8 each quarter of each fiscal year. All audits shall be
9 conducted by a certified public accountant in a manner and
10 form prescribed by the board. Each certified public
11 accountant shall be licensed in this Commonwealth. The
12 compensation for each certified public accountant shall be
13 paid directly by the licensee to the certified public
14 accountant.
15 (19) Establish and enforce prescribed hours of operation
16 of authorized table games, notwithstanding that authorized
17 table games may be operated on any day of the year in order
18 to meet the needs of patrons and to promote competition.
19 (20) Require that each licensed table game entity
20 prohibit individuals under 21 years of age from playing or
21 participating in the play of authorized table games.
22 (21) Require each applicant for a table game license to
23 provide detailed site plans of its proposed table game
24 facility, which the board shall review and approve to
25 determine the adequacy of the proposed internal and external
26 security and surveillance measures proposed for the facility.
27 Applicants shall cooperate with the board in making any
28 board-recommended modifications to the site plans and will
29 assure that the site plans, as modified and approved by the
30 board, are implemented.
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1 (22) Require table game licensees to provide onsite
2 facilities for use by the board and the bureau and other
3 appropriate persons to facilitate their ability to perform
4 their respective responsibilities under this act.
5 (23) Consult with members of the Pennsylvania State
6 Police, the Office of Attorney General and other persons it
7 deems necessary for advice regarding various aspects of the
8 powers and duties imposed on the board under this act and its
9 jurisdiction over the operation of authorized table games at
10 licensed facilities.
11 (24) Adopt regulations for the conduct of all authorized
12 table games proposed to be operated by a table game licensee.
13 (25) Investigate applicants for a license, permit or
14 registration, and other persons to determine qualification
15 and eligibility for licensure, permitting and registration.
16 (26) Require applicants for the issuance or renewal of a
17 table game license, manufacturer license, supplier license or
18 service industry license to provide the board with a
19 statement listing the names and titles of all public
20 officials who, directly or indirectly, own any financial or
21 beneficial interest in, are the creditors of or hold any debt
22 instrument issued by, or hold or have any interest in any
23 contractual or service relationship with the applicant or
24 table game licensee, manufacturer licensee or supplier
25 licensee. The list shall be updated annually.
26 (27) Not issue or renew a license, permit or
27 registration unless it is satisfied that the applicant is a
28 person of good character, honesty and integrity and is a
29 person whose prior activities, criminal record, if any,
30 reputation, habits and associates do not pose a threat to the
20070H2121B2339 - 33 -
1 public interest or the effective regulation and control of
2 table game operations in this Commonwealth or create or
3 enhance the danger of unsuitable, unfair or illegal
4 practices, methods and activities in the conduct of table
5 game operations or the carrying on of the business and
6 financial arrangements incidental to table game operations.
7 (28) Submit an annual report of its licensing and
8 regulatory activities to the General Assembly by January 31
9 of each year.
10 (29) Not issue a table game license to a licensed gaming
11 entity that is also a holder of a Category 1 slot machine
12 license if it determines that the licensed gaming entity is
13 not in full compliance with any of the following:
14 (i) The provisions of its application for a slot
15 machine license as approved by the board.
16 (ii) The provisions of its application for a
17 thoroughbred or harness horse racing license as approved
18 by either the State Horse Racing Commission or State
19 Harness Racing Commission, as the case may be.
20 (iii) The requirements of 4 Pa.C.S. § 1302 (relating
21 to Category 1 slot machine license) and section 1303
22 (relating to additional Category 1 slot machine license
23 requirements).
24 Section 303. Regulatory powers.
25 The board shall adopt and promulgate regulations to carry out
26 the provisions of this act. The regulations shall include
27 specific provisions that:
28 (1) Prescribe the methods and forms of application that
29 an applicant shall follow and complete prior to consideration
30 of an application for a license, permit or registration.
20070H2121B2339 - 34 -
1 (2) Prescribe the methods, procedures and forms for
2 delivery of information that may be required by the board
3 under this act.
4 (3) Define and limit the areas of operation, the rules
5 of authorized games, odds and the method of operation of
6 authorized games.
7 (4) Prescribe the grounds and procedures for the denial,
8 revocation, suspension of or refusal to renew licenses,
9 permits or registrations.
10 (5) Establish the minimum level of insurance to be
11 maintained with respect to a licensed table gaming facility.
12 (6) Prescribe standards to govern the conduct of all
13 authorized table games.
14 (7) Establish standards for table game devices,
15 equipment, apparatuses and supplies, including electronic or
16 computerized table game devices.
17 (8) Establish standards to govern the operation of
18 licensed table game facilities, including the maintenance of
19 financial books, records and audits.
20 (9) Designate appropriate classifications of personnel
21 to be employed in the operation of table games at a licensed
22 table game facility and establish appropriate licensing,
23 registration and permitting standards within each
24 classification.
25 (10) Regulate the practices and procedures for
26 negotiable instrument transactions involving patrons of table
27 games, including limitations on the circumstances and amounts
28 of the transactions, including credit transactions, and the
29 establishment of forms and procedures for negotiable
30 instrument transactions, redemptions and consolidations.
20070H2121B2339 - 35 -
1 (11) Prescribe for authorized table game operations
2 procedures, forms and methods of management controls,
3 including employee and supervisory charts or organizational
4 structure, alarm and other electrical or visual security
5 measures. The board shall grant an applicant a table game
6 license discretion concerning the organization and