New Mexico Gaming Supplier Regulatory Overview

Introduction

New Mexico does not permit widespread commercial gambling. Instead, it permits slot machines at licensed racetracks (currently five racetracks) and in certain licensed non-profit organizations. Those organizations are limited to:

(1) a bona fide chartered or incorporated branch, lodge, order or association, in existence in New Mexico prior to January 1, 1997, of a fraternal organization that is described in Section 501(c)(8) or (10) of the federal Internal Revenue Code of 1986 and that is exempt from federal income taxation pursuant to Section 501(a) of that code; or
(2) a bona fide chartered or incorporated post, auxiliary unit or society of, or a trust or foundation for the post or auxiliary unit, in existence in New Mexico prior to January 1, 1997, of a veterans’ organization that is described in Section 501(c)(19) or (23) of the federal Internal Revenue Code of 1986 and that is exempt from federal income taxation pursuant to Section 501(a) of that code.

The New Mexico Gaming Control Board oversees the licensure of manufacturers ¹, distributors ² and a limited use distributor (who does not maintain a physical presence in NM but sells equipment to a licensed distributor in NM).

Gaming Devices and Equipment

Those individuals or entities that provide gambling devices, which includes slot machines and other similar gambling devices, or that provide equipment, devices, or contrivances used in the conduct of Class III gaming must be licensed by the Board.

Duration

All licenses issued by the Board are for a period of one year from the date of issuance. Renewal materials must be submitted at least 60 days prior to the expiration of the current license.³

Fees

Fees for a manufacturer’s license are $10,000 and a $10,000 background check deposit, fees for a distributor’s license are $5,000 and a $5,000 background check deposit, and fees for an associated equipment manufacturer’s licenses are $2,500 and a $2,500 background check deposit, and fees for a limited use distributor are $1,000.⁴

Application

The following information must be submitted in connection with applying for a license to provide gambling devices or equipment:

1. Basic identification information;
2. Business ownership information;
3. Financial history information;
4. Description of past/current business dealings in the gaming industry;
5. List of gaming regulatory bodies that have jurisdiction over the applicant;
6. Criminal history;
7. Civil action history; and
8. Business/professional licenses held.⁵

Key Persons Licensing Requirements

Those persons that must be licensed as a Key Person or Business Entity include⁶:

1. The CEO, COO, or their functional equivalents;
2. Any person or business entity who is a 5% owner of the applicant; and
3. All other persons the Board deems to have ownership or control that would require licensure.

Each person or entity included in the above list must complete a Multi-Jurisdictional and New Mexico Supplement Form.

Licensing Process

Once a complete licensing application is received by the Board, the Board will conduct a background check on the applicant. Once the background check has been completed, the Board will make a suitability determination regarding the applicant⁷ . The identity of each person consulted during the background investigation is kept confidential.

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¹60-2E-29
²60-2E-30
³60-2E-15(A).
⁴60-2E-15(A).
⁵60-2E-19
⁶60-2E-20
⁷60-2E-23