Licensing or Registration of Persons Conducting a Business With a Gaming Licensee, and Vendors, Suppliers and Owners of Common Stock of Companies Required to Be Licensed as a Gaming Vendor

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Section 31. (a) No person shall conduct a business with a gaming licensee unless such person has been licensed or registered with the commission.

(b) Any person seeking a gaming vendor license shall file an application with the bureau. Such application shall be on a form prescribed by the commission and shall include, but not be limited to, the following: (i) the name of the applicant; (ii) the post office address and, if a corporation, the name of the state under the laws of which it was incorporated, the location of its principal place of business and the names and addresses of its directors and stockholders; (iii) a criminal and arrest record; (iv) any civil judgments obtained against the person pertaining to antitrust or security regulation; (v) the identity of every person having a direct or indirect interest in the business and the nature of such interest; provided, however, that if the disclosed entity is a trust, the application shall disclose the names and addresses of all beneficiaries; provided further, that if the disclosed entity is a partnership, the application shall disclose the names and addresses of all partners, both general and limited; and provided further, that if the disclosed entity is a limited liability company, the application shall disclose the names and addresses of all members; (vi) an independent audit report of all financial activities and interests including, but not limited to, the disclosure of all contributions, donations, loans or any other financial transactions to or from a gaming entity or operator in the past 5 years; and (vii) clear and convincing evidence of financial stability including, but not limited to, bank references, business and personal income and disbursement schedules, tax returns and other reports filed by government agencies and business and personal accounting check records and ledgers. The commission may require such other information as it considers appropriate including, but not limited to, information related to the financial integrity of the applicant and may require the applicant to submit other documentation it considers appropriate including, but not limited to, bank accounts and records, bank references, business and personal income and disbursement schedules, tax returns and other reports filed by government agencies and business and personal accounting check records and ledgers.

(c) No person shall manufacture, sell, distribute, test or repair slot machines, other than antique slot machines as defined in section 5A of chapter 271, without a valid gaming vendor license issued by the commission.

(d) All other suppliers or vendors who are not considered to be gaming vendors including, but not limited to, construction companies, vending machine providers, linen suppliers, garbage handlers, maintenance companies, limousine services, food purveyors or suppliers of alcoholic beverages, shall be considered non-gaming vendors and shall register with the commission and shall produce such information as the commission may require; provided, however, that the commission may require any vendor regularly conducting over $250,000 of business with a gaming licensee within a 12–month period or $100,000 of business within a 3–year period to be licensed as a gaming vendor.

(e) Any person owning more than 5 per cent of the common stock of a company required to be licensed as a gaming vendor, or a holding, intermediary or subsidiary company of such company, shall be required to file for licensure. The commission may waive the licensing requirements for institutional investors holding up to 15 per cent of the stock of the company, or holding, intermediary or subsidiary company of such company, upon a showing by the person seeking the waiver that the applicant purchased the securities for investment purposes only and does not have any intention to influence or affect the affairs or operations of the company or a holding, intermediary or subsidiary company of such company. Any institutional investor granted a waiver which subsequently determines to influence or affect the affairs or operations of the gaming vendor, or a holding, intermediary or subsidiary company of the gaming vendor, shall provide not less than 30 days notice to the commission of such intent and shall file an application and be subject to the licensing requirements of this chapter before taking any action that may influence or affect the affairs of the applicant company or a holding, intermediary or subsidiary company of the applicant company. Any company holding over 15 per cent of a gaming vendor, or a holding, intermediary or subsidiary company of a gaming vendor, shall be licensed under this chapter.

(f) If an applicant for a gaming vendor license or vendor or supplier registration is licensed or registered in another jurisdiction within the United States with comparable license and registration requirements and is in good standing in all jurisdictions in which it holds a license or registration, the commission may enter into a reciprocal agreement with the applicant to allow for an abbreviated licensing or registration process and issue a gaming vendor license or registration under this section; provided, however, that the commission shall reserve its rights to investigate the qualifications of an applicant at any time and may require the applicant to submit to a full application for a gaming vendor license or provide further information for registration.

(g) The bureau shall deny an application for a gaming vendor license or the registration of any other vendor or supplier if the bureau finds that the applicant or registrant is disqualified under section 16 or may be unsuitable for licensure under any of the criteria set forth in section 12.

(h) After completing an investigation of an applicant for a gaming vendor license, the bureau shall approve or deny the license. Any orders by the bureau denying an application under this section shall be accompanied with an explanation of the reasons that an applicant did not meet the qualifications for licensure under this section. An applicant for a gaming vendor license may request a hearing before the bureau to contest the findings. After the hearing, the applicant may appeal the decision of the bureau to the commission and the commission may hear the appeal on the record. The decision of the commission shall be final and an applicant for a gaming vendor license shall not be entitled to further review.

(i) The commission shall be authorized to condition, suspend or revoke any license or registration under this section if the commission finds that a licensee or registrant has: (i) been arrested or convicted of a crime; (ii) failed to comply with section 13; or (iii) failed to comply with any provision of this chapter pertaining to licensees.

(j) The commission shall establish a master gaming or non-gaming vendor list to monitor all vendor contracts with a gaming establishment. Any gaming or non-gaming vendor doing business with a gaming establishment who has failed to submit an application for licensure or registration shall be prohibited from engaging in any future business with a gaming establishment; provided, however, that the commission may terminate any contract that has been entered into with an unlicensed or unregistered gaming or non-gaming vendor.

(k) Gaming licensees shall have a continuing duty to inform the commission of all vendor contracts.

(l) A license or registration issued under this section shall be issued for a term of 3 years. It shall be the responsibility of the gaming vendor or non-gaming vendor to ensure that the license is current.

(m) The commission shall establish fees for gaming vendor licenses and non-gaming vendor registrations which shall include costs incurred for conducting a background investigation into an applicant for the license.

(n) The commission shall monitor the conduct of all gaming vendors and other persons having a material involvement, directly or indirectly, with a gaming vendor to ensure that gaming vendor licenses are not issued to, or held by, and there is no direct or indirect material involvement with, a gaming vendor by unqualified, disqualified or unsuitable persons.


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