New York Tribal Gaming Supplier Regulatory Overview

Introduction

Casino gaming in the state of New York is 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.

The Board works in connection with three tribal nations that operate Class III casinos in the state: the Seneca Nation of Indians, the St. Regis Mohawk Tribe, and the Oneida Indian Nation of New York. These tribes, individually, operate five Class III casinos in the state. Each tribe maintains its own, independent tribal gaming commission ("Commission") that regulates the tribe's gaming operations. It is important to note that the licensing process begins at the tribal level and that interested persons should first contact the Commission in order to initiate the licensing process.

Each tribe operates in accordance with its individual compact negotiated between the tribe and the state of New York. Consequently, each tribe has its own set of unique compact requirements that govern how the tribe and the state work together to regulate Class III gaming activities. This analysis will therefore focus on the broad, overarching regulatory responsibilities for both the tribe and the state that are encompassed in the individual compacts.

There are currently no commercial casinos in the state of New York.

Gaming Supplier Licensing Requirements

Those persons or entities interested in conducting gaming-related business with a tribal gaming facility must first contact the tribal gaming commission for the appropriate licensing forms. Gaming-related business includes providing goods or services that are related to the gaming activities of a Class III casino or are designed for use in a Class III game or activity.¹

Each tribe maintains separate but similar licensing applications which are reviewed both by the tribe and the Board. The following information applies generally to all tribal supplier license applications.

Duration

Because each individual tribal commission determines the duration of a gaming supplier license, the duration of each license will vary depending on the tribe.

Fees

Licensing fees are established by each individual commission and, therefore, application and licensing fees will vary depending on the tribe.²

Required Documents and Information

Each tribe utilizes independent gaming supplier licensing applications. The information and documents listed below are not specific to any particular gaming supplier licensing application, but encompass the requested items typical of such licensing applications for New York tribes. These items include the following:

1. Basic business identity information;
2. Articles of incorporation or association;
3. General New York casino agreement information;
4. Financial statements;
5. Proxy and information statement (publicly traded applicants only);
6. Financial company statements (annual, quarterly, interim, etc.);
7. Current and past gambling interests (company, partner, associates, officers, directors, holders of equity or debt);
8. Organizational chart / flow chart;
9. Tax returns;
10. Federal ID number / New York Tax registration numbers;
11. Designated person to be contacted in reference to application;
12. General stock and voting shareholder information of company;
13. Identification of key persons (owners, officers, directors, and partners);
14. Identification of company representatives. (legal, accounting, banking, authorized agents);
15. Identification of former officers and directors;
16. Disclosure of bonus, profit sharing, retirement, deferred compensation, and similar plans;
17. Disclosure of certain State gaming licenses;
18. Current governmental regulation of entity;
19. Description of long-term debt and other indebtedness and security devices;
20. Identification of financial institutions;
21. Contracts and suppliers with businesses in excess of $25,000;
22. Stock held by the enterprise;
23. Civil, criminal, and/or securities investigations or actions against company current or previous;
24. Insolvency proceedings;
25. Insider ownership transactions for previous five years;
26. Contributions and disbursements of enterprise; and
27. Affidavits and signatures for oaths and affirmations / information releases.

Non-Gaming Supplier License

The Oneida Indian Nation of New York and the St. Regis Mohawk Tribe do not explicitly require providers of non-gaming goods or services to be registered through the tribe. However, each tribe must identify non-gaming enterprises that supply over $50,000 worth of goods or services in a single 12-month period to the Board. The Board may then require these enterprises to complete a suitability process.³

Seneca Nation of Indians - Non-Gaming Enterprise License

The Seneca Gaming Authority requires non-gaming product and service providers to be licensed with the Commission as a Non-Gaming Enterprise. A Non-Gaming Enterprise is defined as an individual or entity that provides goods, services, or supplies other than those goods, services, or supplies that directly affect Class III gaming.⁴ In addition, the individual or entity must conduct over $75,000 worth of business with the Seneca Gaming Authority in a single 12-month period.⁵

The Commission may issue a temporary non-gaming license to applicants that have a valid industry registration in New Jersey, Nevada, or Mississippi. A temporary license may be issued during the time that the Seneca Nation Class III Non-Gaming Enterprise License Application is pending and the Commission has received required fingerprint cards from identified principals.⁶

Fees

A non-refundable application fee of $2,000 must be submitted at the time of application.⁷

Duration

A Non-Gaming Enterprise License is valid for a period of two years from the date of issuance.⁸

Required Documents and Information

In order to complete the Seneca Nation Class III Non-Gaming Enterprise License Application, the following information must be provided:

1. Basic identity information;
2. Identity of parent or holding company;
3. Description of services to be provided;
4. Prior business names and addresses;
5. Description of business organization;
6. Other state gaming licensing information;
7. Identity of all principals;
8. Description of agreement with the casino(s);
9. List and description of civil, criminal, or investigatory proceedings;
10. List and description of financial or securities-related actions taken against the applicant; and
11. List and description of any government licensing or regulation.

The following documents must be included with the Seneca Nation Class III Non-Gaming Enterprise License Application:

1. Financial statements, past two years;
2. Tax returns, past two years; and
3. Signed affidavit and release authorization.⁹

Key Persons Licensing Requirements

Those persons identified as principals by the state of New York must file a Multi-Jurisdictional Personal History Disclosure Form. In addition, each applicant must complete a New York supplement to the Multi-Jurisdictional Personal History Disclosure Form.

Duration

Because each individual tribal commission determines the duration of a principal license, the duration of each license will vary depending on the tribe.

Fees

Licensing fees are established by each individual commission and, therefore, will vary with the tribe. However, the Board may charge an appropriate fee for the fingerprint and criminal background check required of certain key persons.¹⁰

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 one year;
10. Employment history, past 20 years;
11. Spouse employment history, past one year;
12. Professional or regulatory licensing;
13. Gaming licenses applied for or held;
14. Business ownership information, 5 percent 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.¹¹

In addition to the information requested in the application, the following documents need to be attached in order to complete the application:

1. Photo; and
2. Military records, if applicable.¹²

The New York Tribal Supplemental Attachment requires the following information and documentation to complete:

1. Federal tax returns, past five years;
2. Foreign tax returns, if applicable, past five years;
3. Basic identity information;
4. Financial/business relationships in the gaming industry;
5. Two character references (in addition to the ones listed on the Multi-Jurisdictional Form);
6. Whether the applicant has applied for or holds a pistol permit; and
7. Business ownership interests, over 5 percent ownership or employed as a principal employee.¹³

Licensing Process

Under New York compacts, the Board has been delegated the responsibility to license both gaming employees and enterprises which "provide gaming services, gaming supplies or gaming equipment."¹⁴ The Board and the Tribal Gaming Commission ("Commission") must develop licensing application forms for gaming employees.¹⁵ Gaming enterprises must complete forms that are developed by the Board.¹⁶

Gaming employees, generally defined as those who work on-site or are directly involved in the gaming activity, are required to be licensed by the Commission. Once an application is received by the Commission, it must forward copies to the Board which conducts an additional background check on the applicant. The Commission and the Board must both approve the application before the applicant is licensed as a gaming employee. If the Board, however, determines that the applicant is unsuitable for licensure, then the Commission must refuse to grant a license to the applicant.¹⁷

The Board has the authority to grant a temporary license to gaming employees if the applicant presents no reasonable grounds for denial.¹⁸

Gaming Technology Standards

Each compact contains an appendix of approved Class III games and standards. These documents contain detailed explanations of the required rules and standards for each approved Class III game to be conducted in a tribal gaming facility. Suppliers of gaming equipment should consult the individual compacts, available at the National Indian Gaming Commission's website, for details regarding the gaming standards for individual Class III games.¹⁹

In addition to compact requirements, electronic games of chance and other similar games must meet National Indian Gaming Commission standards, including the requirement that equipment be examined and approved by an independent testing laboratory in accordance with individual tribal ordinances.²⁰

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¹Nation-State Compact Between the Oneida Indian Nation of New York and the State of New York, Sec. 1(i), (l).
²Id. at 6(c).
³See Nation-State Compact Between the Oneida Indian Nation of New York and the State of New York, Section 8; Tribal-State Compact Between the St. Regis Mohawk Tribe and the State of New York, Section 6(k).
⁴Nation-State Gaming Compact Between the Seneca Nation of Indians and the State of New York, Appendix E(l).
⁵Nation-State Gaming Compact Between the Seneca Nation of Indians and the State of New York, Appendix E(l).
⁶Nation-State Gaming Compact Between the Seneca Nation of Indians and the State of New York, Appendix E(v).
⁷Seneca Nation of Indians Class III Non-Gaming Enterprise License Application, p. ii.
⁸Nation-State Gaming Compact Between the Seneca Nation of Indians and the State of New York, Appendix E(u).
⁹Seneca Nation of Indians Class III Non-Gaming Enterprise License Application.
¹⁰Id. at 6(c).
¹¹'Multi-Jurisdictional Personal History Disclosure Form.'
¹²Id.
¹³'New York Tribal Supplemental Attachment to the Multi-Jurisdictional Personal History Disclosure Form.'
¹⁴Nation State Compact Between the Oneida Indian Nation and the State of New York, Sec. 7(a).
¹⁵Id. at Sec. 6(b).
¹⁶Id. at 7(b).
¹⁷Id. at Sec. 6.
¹⁸Id. at Sec. 6(g).
¹⁹See www.nigc.gov
²⁰See 25 CFR 542, 547.