Indiana Gaming Supplier Regulatory Overview

Introduction

Except as provided in subsection (b) of Indiana Code § 4-33-7-4, a person may not furnish ANY equipment, devices, or supplies to a riverboat gambling operation unless the person possesses a supplier's license.

The Riverboat Gambling Act (the "Act") legalized casino gambling on riverboats in Indiana on July 1, 1993. The Indiana Gaming Commission ("Commission") has been established to regulate all casino employees and gaming-related suppliers and holds the authority to issue no more than 11 riverboat licenses in the state.

Over 15,000 people are employed in Indiana's gaming industry, all of whom must be licensed through the Commission. In addition, vendors of certain goods and services are also required to obtain a license issued by the Commission. The Commission has the authority to require licensure of any vendor that it deems necessary to ensure compliance with applicable gaming laws. The Commission requests that interested vendors submit a Supplier Inquiry Form in order to determine licensure requirements.¹

Supplier's License

The following persons or business entities are required to hold a supplier's license in order to do business with a casino gambling operation:

1. Gaming operations managers (if the manager is a business entity);
2. All gaming equipment manufacturers;
3. Suppliers of gaming equipment maintenance or repair;
4. Suppliers of security services, security systems, and surveillance systems;
5. A lessor of a riverboat or dock facility (unless they are a country, municipality, or political subdivision);
6. Suppliers of goods or services that derive payment directly from a percentage of a casino's revenues;
7. Any other supplier of goods or services that the Commission deems necessary to ensure compliance; and
8. An applicant's key persons, substantial owners, and any other persons deemed necessary to ensure the applicant meets the criteria for licensure must complete and submit a Personal Disclosure Form 1 application for occupational license (see below,"Occupational Licensing").²

All key persons and substantial owners of supplier licensees and supplier's license applicants must obtain a Level 1 occupational license (see below, "Occupational Licensing").

Duration

A supplier's license is valid for one year.³

A supplier licensee must renew its license annually. A supplier licensee must request a renewal of the license on the proper renewal form and provide the Commission with any information or documents that it deems necessary. During this process, the Commission may require a background investigation of an applicant, the cost of which will be charged to the supplier licensee.⁴

Fees

Applicants for a supplier's license will not be considered by the Commission unless they possess an agreement or a statement of intent from a casino licensee to supply goods or services upon the applicant's receiving a supplier's license.⁵

In addition, applicants for a supplier's license must pay a nonrefundable fee of $5,000 along with an annual fee of $7,500 to the Commission.⁶ Should the initial background investigation exceed the $5,000 application fee, the Executive Director will inform the applicant that it must pay an additional fee.

Application

Indiana is a unique jurisdiction in that it requires supplier's license applicants to contact the Commission directly to obtain license application materials. For more information, please visit the Indiana Gaming Commission website.⁷

Upon completion of the supplier's license application, an applicant must submit one bound and one electronic copy of the supplier's license application and requested attachments. An application is deemed filed when the completed application forms, including all required documents, all personal disclosure forms, materials, photographs, and application fee, have been submitted. It is important to note that the Commission will not begin its background investigation until the application is filed.⁸

Any misrepresentation or omission made with respect to the supplier's license application may be grounds for denial of the application.

An individual applying for a supplier's license is required to submit, along with appropriate documentation and application, a set of fingerprints to the Commission. If the applicant is not an individual, then it is required that each officer and director of the applicant submit a set of fingerprints.⁹

A supplier licensee must obtain and maintain insurance in a minimum amount determined by the Commission. The types of insurance required by the Commission include liability, casualty, capital loss, fire, theft, workers compensation, and any other type of insurance they deem necessary to ensure the licensee is adequately insured.¹⁰

Restrictions on Supplier Licensees

A supplier licensee shall not distribute gaming supplies or equipment that does not conform to the standards set forth by the state of Indiana.¹¹

A manufacturer of electronic gaming devices, chips, tokens, cards, dice, roulette wheels, keno balls, keno ball or number selection devices, shuffling devices, or any other equipment that the Commission determines directly affects gaming shall not be paid by a casino licensee based on a percentage of the revenue received from the use of gaming equipment or upon the amount of play or use that the gaming equipment receives.

An applicant may not receive a supplier's license if:

1. The person has been convicted of a felony under Indiana law, the laws of any other state, or laws of the United States;
2. The person has knowingly or intentionally submitted an application for a license under this chapter that contains false information;
3. The person is a member of the Commission;
4. The person is an officer, a director, or a managerial employee of a person described in subdivision (1) or (2);
5. The person employs an individual who:
a. is described in subdivision (1), (2), or (3); and
b. participates in the management or operation of gambling operations authorized under this article;
6. The person owns more than a 10 percent ownership interest in:
a. any other person holding an owner's license; or
b. an operating agent contract issued under this article; or
7. A license issued to the person:
a. under this article; or
b. to supply gaming supplies in another jurisdiction has been revoked.¹²

Key Persons and Associated Persons License

The applicant, in the case of an individual, or the applicant's substantial owners must be 21 years of age and demonstrate a level of skill, experience, knowledge, and ability necessary to supply the goods or services that the applicant seeks to provide.

All key persons and those holding a substantial interest must complete a Personal Disclosure Form and submit to a background investigation. Each Personal Disclosure Form requires a $1,000 application fee and fingerprints as apart of the investigation. To ensure viability of a supplier, Commission staff will conduct an extensive background check and financial investigation of the supplier and each key person or substantial owner.

Occupational Licensing

Certain employees of supplier licensees must be found suitable by the Commission. These employees fall into the following categories (which are described in more detail below):

• A Level 1 occupational license is the highest level of occupational licensure. Those holding a Level 1 license may perform any activity included within the occupational licensee's level of occupational license or any lower level of occupational license.
• An employee, independent contractor, agent, or subagent of a supplier licensee shall obtain a Level 2 occupational license if the Executive Director or the Executive Director's designee determines it necessary.¹³

An application for an occupational license shall not be processed by the Commission unless the applicant has an agreement or a statement of intent with a riverboat licensee or a riverboat license applicant that the applicant will be employed upon receiving the appropriate occupational license.

Duration

The occupational license is valid for a period of one year and must be renewed annually. The occupational licensee must complete the necessary paperwork and provide the Commission with information or documents that it deems necessary within 30 days before the expiration of the current license.¹⁴

Fees

A riverboat licensee or a riverboat license applicant must pay a nonrefundable application fee for its riverboat employees in the following amounts:

1. Occupational license, Level 1, $1,000.
2. Occupational license, Level 2, $200.¹⁵

It is important to note that a supplier licensee may be required to pay the nonrefundable application fees on behalf of its employees who require an occupational license at any level.

Once issued, the annual occupational license fees are as follows:

1. Occupational license, Level 1, $100.
2. Occupational license, Level 2, $50.¹⁶

Again, it is important to note that a supplier licensee may be required to pay the nonrefundable annual fees on behalf of its employees who require an occupational license at any level.

Level 1 Occupational License and Application

The following employees are required to obtain a Level 1 occupational license (note that some positions may only apply to riverboat casino operators and not supplier licensees):

1. Audit manager.
2. Casino manager.
3. Chief of security.
4. Chief of surveillance.
5. Chief financial officer or controller, or both.
6. Electronic data program manager.
7. Certain gaming operations manager
8. Electronic gaming device manager.
9. Table games manager.
10. General manager.
11. Support operations manager.¹⁷

An applicant for a Level 1 occupational license must complete and submit three bound and two unbound copies of Personal Disclosure Form 1. Personal Disclosure Form 1 shall include the following information and documents:

1. The applicant's name, address, and telephone number.
2. The applicant's Social Security number.
3. The information specified in IC 4-33-8-5.
4. Employment history.
5. Two sets of the applicant's fingerprints taken by the Commission at a time and place designated by the Executive Director.
6. A photograph taken within three months of submission of the application.
7. A copy of the applicant's birth certificate. If a birth certificate is not available, the applicant must submit naturalization papers or a copy of a letter from the applicant to the appropriate government agency requesting the birth certificate.
8. Physical characteristics, including build, complexion, and any distinguishing marks, including scars and tattoos.
9. Familial information and marital history.
10. Citizenship information.
11. Military history information.
12. Educational history.
13. Vocational or employment training programs.
14. Criminal history of the applicant and the applicant's immediate family.
15. Confidential tax return information and documents.
16. Confidential financial and business information.
17. Information regarding any litigation involving the applicant or the applicant's immediate family, or both.
18. Appropriate waivers and affidavits.
19. Any other information or documents that the Commission deems necessary to ensure the applicant meets the licensing criteria set forth in the Act and this title.¹⁸

Level 2 Occupational License and Application

The following employees are required to obtain a Level 2 license (note that some positions may only apply to riverboat casino licensees and not supplier licensees):

1. Security personnel and surveillance personnel.
2. Any employee of a riverboat gambling operation whose duties are performed on the riverboat and whose employment duties affect gaming.
3. Any employee of a riverboat gambling operation whose duties are performed on or off the riverboat and whose employment duties affect the flow of money obtained as a direct result of gaming operations or other operations aboard the riverboat.
4. Any employee of a riverboat gambling operation whose duties include accounting and auditing functions and whose duties relate to money obtained as a result of gaming or other operations aboard the riverboat.¹⁹

In addition, the Commission retains the authority to require any employee of a riverboat gambling operation whom it deems necessary to ensure compliance with the Act and the Indiana Administrative Code to obtain Level 2 licensure.

An applicant for a Level 2 occupational license must complete and submit one copy of the application for a Level 2 occupational license. The Level 2 occupational license application shall be on a form prescribed by the Commission and shall include the following information and documents:

1. The applicant's name, address, and telephone number.
2. The applicant's Social Security number.
3. The information specified in IC 4-33-8-5.
4. Employment history.
5. Two sets of the applicant's fingerprints taken by the Commission at a time and place designated by the Executive Director.
6. A photograph taken at the time of submission of the application.
7. A copy of the applicant's birth certificate. If a birth certificate is not available, the applicant must submit naturalization papers or a copy of a letter from the applicant to the appropriate government agency requesting the birth certificate.
8. Physical characteristics, including build, complexion, and any distinguishing marks, including scars and tattoos.
9. Familial information and marital history.
10. Citizenship information.
11. Military history information.
12. Educational history.
13. Vocational or employment training programs.
14. Criminal history of the applicant and the applicant's immediate family.
15. Confidential tax return information and documents.
16. Confidential financial and business information.
17. Information regarding any litigation involving the applicant or the applicant's immediate family, or both.
18. Appropriate waivers and affidavits.
19. Any other information or documents that the Commission deems necessary to ensure the applicant meets the licensing criteria set forth in the Act and this title.²⁰

Temporary License

Certain applicants who have begun the licensing process may be eligible to receive a temporary license to conduct business with the state's casino licensees. In order to receive a temporary license, the applicant must:

1. Submit a completed supplier's license application;
2. Pay the required supplier's license application fee;
3. Submit the required fingerprint cards for associated individuals; and
4. Submit a letter or statement of intent to enter into business with a riverboat casino licensee.²¹

An applicant who receives a temporary license may supply a casino licensee with goods and services until a permanent license is issued or the temporary license is withdrawn. In addition an applicant must comply with all requests for documents, information, or other materials related to the applicant and the application during the temporary license period, during which time the Commission will conduct its investigation.²²

Gaming Technology Requirements

A riverboat licensee shall not use electronic gaming devices unless the devices have been licensed by the Commission. The riverboat casino licensee must submit all proposals, in writing, at least 60 days before commencing use of the electronic gaming device. A riverboat licensee may appeal an adverse decision to licensure of an electronic gaming device.²³

A manufacturer or distributor of associated equipment shall not distribute equipment to riverboat licensees or operating agents unless it has been approved by the executive director.²⁴

"Associated equipment" means any of the following:

1. Any equipment, mechanical, electromechanical, or electronic contrivance, component, or machine used remotely or directly in connection with gaming.
2. Any game that would not otherwise be classified as a gaming device, including, but not limited to, links that connect to progressive electronic gaming devices.
3. Computerized systems that monitor electronic gaming devices.
4. Equipment that affects the proper reporting of gross revenue.
5. Devices for weighing and counting money.
6. Patron counting systems.
7. Any other equipment that the commission determines requires approval as associated equipment.²⁵

Reporting Requirements

The supplier licensee must continue to meet all the conditions or restrictions for licensure after the issuance of the permanent supplier's license. Should the licensee fail to adhere to the conditions or restrictions or maintain suitability for licensure, the Commission or its Executive Director may initiate disciplinary action.²⁶

All supplier licensees have a continuing duty to maintain suitability for licensure. In addition, a supplier licensee must notify the Commission of any changes in the information submitted in the application or any condition that renders the supplier licensee ineligible to hold a supplier's license. A supplier licensee must notify the Executive Director within 10 days of any change, to the extent known, in its relationship with or the employment status of its employees, independent contractors, agents, or subagents who are subject to occupational licensing.

If the supplier licensee has a warehouse within the state that houses gaming equipment, the supplier must ensure that the facility has adequate security and surveillance coverage.²⁷

All supplier licensees and applicants shall keep adequate records of business operations. These records must be kept for at least five years and include the following:

1. All correspondence with or reports to the Commission or to any local, state, or federal government agency.
2. All financial statements or financial records of the supplier licensee or applicant.
3. All records pertaining to products or services supplied by the supplier licensee or applicant to casino licensees or casino license applicants.
4. All correspondence with casinos licensed under IC 4-33 or IC 4-35.
5. Documentation relating to order, shipment, or receipt or provision of merchandise or services sold or provided under IC4-33, IC 4-35, Ind. Admin. Code 68.
6. Personnel files on each employee of the supplier licensee or applicant, including sales representatives.

In addition, suppliers must keep records of all equipment offered for sale or lease and file a quarterly return with the Commission listing all sales and leases.²⁸ The Commission must be allowed access to all records maintained at the warehouse facility regarding the shipment or movement of gaming devices. Records must be kept for a period of at least two years.²⁹

All occupational licensees have a continuing duty to maintain suitability for licensure. Riverboat licensees shall notify the Commission that an occupational licensee is in violation of the requirements of Ind. Admin. Code tit. 68 or Ind. Code 4-33. Specifically, occupational licensees must notify the Commission of any changes in the information submitted in their application or any information that could render the licensee ineligible to hold a license. Occupational licensees must notify the Commission that a riverboat licensee, a supplier licensee, or an occupational licensee has violated the Act or the Indiana Administrative Code as soon as the occupational licensee becomes aware of the violation. If an occupational licensee fails to notify the Commission of such a violation by a riverboat licensee, a supplier licensee, or an occupational licensee, the Commission may initiate disciplinary action.³⁰

Reapplying after Denied a License

Supplier's license applicants that have been denied may not reapply for a supplier's license for a period of one year from the date on which the Commission voted to deny the application, unless the Commission grants leave. The Commission may grant leave for reapplication if the applicant can demonstrate that the reason the original applicant was denied no longer exists or bars suitability for licensure.³¹

An applicant or supplier licensee who is served with a notice of denial or nonrenewal may request a hearing. If an applicant does not request a hearing on the issue, the notice of denial or nonrenewal becomes final order of the Commission, denying the application for supplier's license or not renewing the supplier's license.³²

Exemptions and Waivers

An employee whose duties are to be performed only at the dock site facilities is not required to obtain an occupational license.

The Commission may waive, alter, or restrict any of the licensing requirements or procedures if the Commission determines that the procedure or requirement is impractical or burdensome, and such waiver, altercation, or restriction is in the best interest of the public and the gaming industry.³³

Gaming technology requirements may be waived at the discretion of the Commission.³⁴

If at any time a supplier licensee experiences an unexpected vacancy in a position that requires a Level 1 license, the Executive Director may grant emergency relief by permitting them to fill the vacancy, for up to 30 days, with an individual who has not yet submitted a license application to the Commission.³⁵

---

¹See http://www.in.gov/igc/2619.htm for the inquiry form.
²Ind. Admin. Code tit. 68 Rule 2-2-1.
³Ind. Admin. Code tit. 68 Rule 2-2-3(c).
⁴Ind. Admin. Code tit. 68 Rule 2-2-8.
⁵Ind. Admin. Code tit. 68 Rule 2-2-1(b).
⁶Ind. Code §4-33-7-1.
⁷See http://www.in.gov/igc/2342.htm.
⁸ Ind. Admin. Code tit. 68 Rule 2-2-4.
⁹Ind. Code §4-33-7-1.
¹⁰Ind. Admin. Code tit. 68 Rule 2-2-5.2.
¹¹Ind. Code §4-33, Ind. Code §4-35, Ind. Admin. Code tit. 68 Rule 2-2-1.
¹²Ind. Code §4-33-7-3.
¹³Ind. Code §4-33-7-3.
¹⁴ Ind. Admin. Code tit 68 Rule 2-3-3(e).
¹⁵Ind. Admin. Code tit. 68 Rule 2-3-2.
¹⁶Ind. Admin. Code tit. 68 Rule 2-3-2.
¹⁷ Ind. Admin. Code tit. 68 Rule 2-3-1(i).
¹⁸Ind. Admin. Code tit. 68 Rule 2-3-4.
¹⁹Ind. Admin. Code tit. 68 Rule 2-3-1(j).
²⁰Ind. Admin. Code tit. 68 Rule 2-3-4.
²¹Ind. Admin. Code tit. 68 Rule 2-2-5.1.
²²Ind. Admin. Code tit 68 Rule 2-2-5.1.
²³Ind. Admin. Code tit. 68 Rule 2-2-46.
²⁴Ind. Code § 4-33-7-2.
²⁵Ind. Admin. Code tit. 68 Rule 2-7-1.
²⁶ Ind. Admin. Code tit. 68 Rule 2-2-6.1.
²⁷See Ind. Admin. Code § 19-1-2.
²⁸Ind. Code § 4-33-7-5.
²⁹Ind. Admin. Code § 19-1-4.
³⁰Ind. Admin. Code tit. 68 Rule 2-3-9.
³¹Ind. Admin. Code tit. 68 Rule 2-2-7.
³²Ind. Admin. Code tit. 68 Rule 2-2-11.
³³Ind. Admin. Code tit. 68 Rule 2-3-12.
³⁴Ind. Admin. Code tit. 68 Rule 2-6-48.
³⁵Ind. Admin. Code tit. 68 Rule 2-2-6.1(c).