New York Gaming Supplier Regulatory Overview

Introduction
Historically, casino gaming in the state of New York was regulated by the New York State Racing and Wagering Board (“Board”). The Board was established in 1973 to regulate horse and other pari-mutuel betting activities in the state. In 1993, the Board was delegated the authority to assist in the regulation of Class III gaming pursuant to compacts negotiated between the state and three Native American tribes. In 2012, New York’s legislature passed legislation that established the New York State Gaming Commission (“Commission”) and merged the Commission with the Board effective February 1, 2013.

In 2013, Governor Andrew Cuomo spearheaded a constitutional amendment that permitted casino gaming that was approved by voters in November 2013. The state legislature passed and Governor Cuomo signed into law on July 30, 2013 the Upstate New York Gaming Economic Development Act (“Act”) permitting up to four Upstate commercial casinos. The Act formed a special Gaming Facility Location Board for recommending the siting of up to four commercial casinos in late 2014. The Commission subsequently awarded a license to Rivers Casino, del Lago Resort and Montreign Resort on December 21, 2015, and awarded a license to Tioga Downs on August 30, 2016.

Tioga Downs Casino is a redevelopment of the former Tioga Downs Racetrack and was approved in 2015. It was the first casino to open in December 2016. del Lago Resort & Casino subsequently opened on February 1, 2017, closely followed by Rivers Casino & Resort Schenectady opening on February 8, 2017. The Montreign Resort Casino was recently rebranded as Resorts World and is scheduled to open in March 2018.

The Act requires that “[a]ny business to be conducted with a gaming facility applicant or licensee by a vendor offering goods or services which directly relate to gaming activity, including gaming equipment manufacturers, suppliers, repairers, independent testing laboratories, shall be licensed as a casino vendor enterprise”.¹ Additionally, “Any vendor that offers goods or services to a gaming facility applicant or licensee that is not included in subdivision one or two of this section including, but not limited to site contractors and subcontractors, shopkeepers located within the facility, gaming schools that possess slot machines for the purpose of instruction, and any non-supervisory employee of a junket enterprise licensed under subdivision three of this section, shall be required to register with the commission in accordance with the regulations promulgated under this article.” The Commission has adopted Casino Gaming Rules (“Rules”) governing the licensing regulation of providers of gaming and non-gaming goods and services to casino licensees. The Commission has categorized the licenses as Casino Key Employee, Gaming Employee, Non-Gaming Employee, Vendor Licensing and Junket Operator. The executive director of the Commission may allow a license applicant to provide goods or services prior to the issuance of the license.

Supplier Licensing Requirements
The Commission has established three different levels of supplier licensing. Any person or entity that intends to offer goods or services relating to casino or gaming activity must be licensed as a casino vendor enterprise.² Any vendor offering goods our services that are not directly related to casino or gaming activity must apply as a vendor registrant.³ A junket enterprise must be licensed as an ancillary casino vendor enterprise⁴, as does a vendor providing goods or services that the Commission deems to be supporting gaming activities directly enough that a vendor registration is not sufficient.⁵ The Rules specifically exempt certain activities from the non-gaming registration process.⁶ All licensee applicants must meet the same qualifications as licensees for racing and pari-mutuel services.⁷ The Commission permits a gaming facility licensee to issue a temporary service badge to a temporary service provided that the services performed do no exceed one business day and a licensed employee is with the temporary service provider at all times.⁸

Duration
Five years.

Fees
Licensing fees are established by the Commission and are subject to change.

Amendments to the Application
An applicant must amend the application whenever the information supplied requires updating.⁹

Withdrawing an Application
A supplier's license application may be withdrawn upon written notice to the Commission prior to Commission action on the application.¹⁰ If a supplier's license application is withdrawn, the Commission may refrain from processing a subsequent application by the person who made the application for the license within one year from the date withdrawal was granted.¹¹

Gaming Employee License
An applicant for a gaming employee license is required to submit the same information required of a gaming facility licensee.¹² An applicant is required to fill out the Multi-Jurisdictional Personal History Disclosure Form and provide the following:
1. An executive summary of the principal terms of the application;
2. Name, title, email address, mailing address, business address and telephone number;
3. All conflicts of interest, including, without limitation, any relationship or affiliation of the applicant that currently exist with any member, employee, consultant or agent of the Gaming Facility Location Board or the commission;
4. Identify relationships with public officials, including any public official or officer or employee of any governmental entity, and immediate family members of such public official, officer or employee, who directly or indirectly owns any financial interest in, has any beneficial interest in, is the creditor of, holds any debt instruments issued by, or holds or has an interest, direct or indirect, in any contractual or service relationship with the applicant;
5. If no conflict of interest, a statement that there is no direct or indirect or perceived conflict of interest; and
6. Identify any current or previous contract that the applicant has had with, and any current or previous licenses that the applicant has been issued by or under, any department or agency of the State of New York.

Required Documents and Information
The Multi-Jurisdictional Personal History Disclosure Form is a lengthy application requiring detailed personal information. Information required to be disclosed includes:
1. Basic identity information;
2. Citizenship and passport;
3. Residence information, past 15 years;
4. Family relationships;
5. Occupation information for family members, including spouses of family members;
6. Military service background;
7. Education;
8. Offices and positions held, including fiduciary, government, and trust relationships;
9. Offices and positions held by spouse, past 1 year;
10. Employment history, past 20 years;
11. Spouse employment history, past 1 year;
12. Professional or regulatory licensing;
13. Gaming licenses applied for or held;
14. Business ownership information, 5% threshold;
15. Civil suit and criminal history;
16. Vehicle operation permits and licenses;
17. Financial schedules and bankruptcy history;
18. Net worth statement and schedules including assets and liabilities; and
19. Three references over 18 years old who are not related to the applicant.¹³

In addition to the information requested in the application, the following documents need to be attached to complete the application:
1. Fingerprints and consent for a criminal history check¹⁴;
2. Photograph taken within the past 6 months.¹⁵

Duration
Five years.

Fees
Licensing fees are established by the Commission and are subject to change.

Amendments to the Application
An applicant must amend the application whenever the information supplied requires updating.¹⁶

Withdrawing an Application
A supplier's license application may be withdrawn upon written notice to the Commission prior to Commission action on the application.¹⁷ If a supplier's license application is withdrawn, the Commission may refrain from processing a subsequent application by the person who made the application for the license within one year from the date withdrawal was granted.¹⁸

Non-Gaming Employee License
The Commission requires employees who are not managers, owners or supervisory personnel of a vendor registrant to fill out a non-gaming employee application and comply with the same standards as a casino licensee non-gaming employee.¹⁹ Applicants must submit fingerprints and a photograph taken within the past 6 months.²⁰

Duration
Five years.

Fees
Licensing fees are established by the Commission and are subject to change.

Amendments to the Application
An applicant must amend the application whenever the information supplied requires updating.²¹

Withdrawing an Application
A supplier's license application may be withdrawn upon written notice to the Commission prior to Commission action on the application.²² If a supplier's license application is withdrawn, the Commission may refrain from processing a subsequent application by the person who made the application for the license within one year from the date withdrawal was granted.

Junket Operator Licensing Requirements
A junket is defined as “[a]n arrangement intended to induce a person to come to a gaming facility to gamble, where the person is selected or approved for participation on the basis of the person's ability to satisfy a financial qualification obligation related to the person's ability or willingness to gamble or on any other basis related to the person's propensity to gamble and pursuant to which and as consideration for which, any of the cost of transportation, food, lodging, and entertainment for the person is directly or indirectly paid by a gaming facility licensee or an affiliate of the gaming facility licensee.”²³ Junket representatives employed by a gaming facility licensee, an applicant for a gaming facility licensee or an affiliate of a gaming facility licensee must apply for a casino key employee license²⁴, with the exception that they do not need to be residents of New York. Junket enterprises and representatives not employed as described above must apply for an ancillary casino vendor enterprise license.²⁵ A non-supervisory junket employee must apply for a non-gaming employee license.²⁶ Upon petition by a gaming facility licensee, the Commission may exempt arrangements otherwise included within the definition of “junket” from compliance.²⁷

All junket arrangements must be in writing and submitted to the Commission prior to the commencement of the junket²⁸ and cannot exceed the expiration date of the applicable junket license.²⁹ The gaming facility license must inform the Commission of any changes to the junket arrangement at least three days before commencement of the amended junket arrangements³⁰ and must notify the Commission of the termination of any arrangements no later than five days after termination.³¹ Gaming facility licensees must submit quarterly reports to the Commission, including the name of each licensed junket representative or enterprise, the status of the relationship with the representative or enterprise, the compensation paid, the number of preferred guests attributable to the representative or enterprise, the arrival and departure time of each representative or enterprise and the list of gaming facility licensee employees acting as junket representatives.³² Gaming facility licensees, junket representatives and junket enterprises must submit quarterly a patron list report.³³

Key Persons Licensing Requirements
Owners, managers and supervisory personnel of vendors must fill out a casino key employee application form.³⁴ The applicant must fill out a Multi-Jurisdictional Personal History Disclosure Form.³⁵

Duration
The Casino Key Employee License remains valid for a period of five (5) years.³⁶

Fees
Licensing fees are established by the Commission and are subject to change.

Required Documents and Information
The Multi-Jurisdictional Personal History Disclosure Form is a lengthy application requiring detailed personal information. Information required to be disclosed includes:
1. Basic identity information;
2. Citizenship and passport;
3. Residence information, past 15 years;
4. Family relationships;
5. Occupation information for family members, including spouses of family members;
6. Military service background;
7. Education;
8. Offices and positions held, including fiduciary, government, and trust relationships;
9. Offices and positions held by spouse, past 1 year;
10. Employment history, past 20 years;
11. Spouse employment history, past 1 year;
12. Professional or regulatory licensing;
13. Gaming licenses applied for or held;
14. Business ownership information, 5% threshold;
15. Civil suit and criminal history;
16. Vehicle operation permits and licenses;
17. Financial schedules and bankruptcy history;
18. Net worth statement and schedules including assets and liabilities; and
19. Three references over 18 years-old who are not related to the applicant.³⁷

In addition to the information requested in the application, the following documents need to be attached to complete the application.
1. Fingerprints and consent for a criminal history check³⁸;
2. Photograph taken within the past 6 months.³⁹

Gaming Technology Standards
The Commission has promulgated rules governing the approval, requirements and specifications for gaming devices. The standards can be found in Parts 5319-5323 of the Rules.⁴⁰

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¹Upstate New York Gaming Economic Development Act, Chapter 174 and 175 of the Laws of 2013. For full text of The Upstate New York Gaming Economic Development Act and the New York State Gaming Commission Casino Gaming Rules, see Appendix.
²New York Division of Gaming Regulations (9 NYCRR) § 5307.1
³New York Division of Gaming Regulations (9 NYCRR) § 5307.3(a)
⁴New York Division of Gaming Regulations (9 NYCRR) § 5307.2(a)
⁵New York Division of Gaming Regulations (9 NYCRR) § 5307.2(b)
⁶These include insurance companies and agencies; media outlets; governmental entities; professional legal, accounting and financial services; physicians; utility companies; training seminars, conferences, membership and publications relating to professional development; non-profit charities if no consideration is received; and professional entertainers. New York Division of Gaming Regulations (9 NYCRR) § 5307.3(b)
⁷New York Division of Gaming Regulations (9 NYCRR) § 5307.4; NY Rac, Pari-Mut Wat & Breeding L § 1326 (2014).
⁸New York Division of Gaming Regulations (9 NYCRR) § 5307.6(a).
⁹New York Division of Gaming Regulations (9 NYCRR) § 5303.9.
¹⁰New York Division of Gaming Regulations (9 NYCRR) § 5303.10(a).
¹¹New York Division of Gaming Regulations (9 NYCRR) § 5303.10(b).
¹²New York Division of Gaming Regulations (9 NYCRR) § 5305.2(a).
¹³“Multi-Jurisdictional Personal History Disclosure Form.”
¹⁴NY Rac, Pari-Mut Wat & Breeding L § 1323(2)(d) (2014)
¹⁵New York Division of Gaming Regulations (9 NYCRR) § 5304.4.
¹⁶New York Division of Gaming Regulations (9 NYCRR) § 5303.9.
¹⁷New York Division of Gaming Regulations (9 NYCRR) § 5303.10(a).
¹⁸New York Division of Gaming Regulations (9 NYCRR) § 5303.10(b)
¹⁹New York Division of Gaming Regulations (9 NYCRR) § 5307.5(d).
²⁰New York Division of Gaming Regulations (9 NYCRR) § 5303.3 and 5303.4.
²¹New York Division of Gaming Regulations (9 NYCRR) § 5303.9.
²²New York Division of Gaming Regulations (9 NYCRR) § 5303.10(a).
²³NY Rac, Pari-Mut Wat & Breeding L § 1301(29) (2014).
²⁴NY Rac, Pari-Mut Wat & Breeding L § 1328(2) (2014).
²⁵New York Division of Gaming Regulations (9 NYCRR) § 5308.2(b).
²⁶New York Division of Gaming Regulations (9 NYCRR) § 5308.2(c).
²⁷New York Division of Gaming Regulations (9 NYCRR) § 5308.3.
²⁸New York Division of Gaming Regulations (9 NYCRR) § 5308.4(a).
²⁹New York Division of Gaming Regulations (9 NYCRR) § 5308.4(b).
³⁰New York Division of Gaming Regulations (9 NYCRR) § 5308.4(c).
³¹New York Division of Gaming Regulations (9 NYCRR) § 5308.4(d).
³²New York Division of Gaming Regulations (9 NYCRR) § 5308.5(a).
³³New York Division of Gaming Regulations (9 NYCRR) § 5308(b) and (c).
³⁴New York Division of Gaming Regulations (9 NYCRR) § 5307.5(b).
³⁵New York Division of Gaming Regulations (9 NYCRR) § 5304.2.
³⁶New York Division of Gaming Regulations (9 NYCRR) § 5304.3.
³⁷“Multi-Jurisdictional Personal History Disclosure Form.”
³⁸NY Rac, Pari-Mut Wat & Breeding L § 1323(2)(d) (2014)
³⁹New York Division of Gaming Regulations (9 NYCRR) § 5304.4.
⁴⁰New York Division of Gaming Regulations (9 NYCRR) §§ 5319 through 5323.