2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 13 - Destination Resort Gaming › Title 5 - Requirements for Conduct and Operation of Gaming › 1341 - Licensee Leases and Contracts.

§ 1341. Licensee leases and contracts. 1. Unless otherwise provided in
this  subdivision,  no  agreement shall be lawful which provides for the
payment, however defined, of any direct or indirect interest, percentage
or share of: any money or property gambled at  a  gaming  facility;  any
money or property derived from gaming activity; or any revenues, profits
or earnings of a gaming facility. Notwithstanding the foregoing:
(a) Agreements which provide only for the payment of a fixed sum which
is  in  no  way  affected  by  the  amount  of any such money, property,
revenues, profits or earnings shall not be subject to the provisions  of
this  subdivision;  and  receipts, rentals or charges for real property,
personal property or services shall not lose their character as payments
of a fixed sum because of contract, lease,  or  license  provisions  for
adjustments  in  charges, rentals or fees on account of changes in taxes
or  assessments,  cost-of-living   index   escalations,   expansion   or
improvement of facilities, or changes in services supplied.
(b)  Agreements  between  a  gaming  facility  licensee  and  a junket
enterprise or junket representative licensed, qualified or registered in
accordance with the provisions of this article and  the  regulations  of
the   commission  that  provide  for  the  compensation  of  the  junket
enterprise or junket representative  by  the  gaming  facility  licensee
based upon the actual gaming activities of a patron procured or referred
by  the  junket  enterprise  or junket representative shall be lawful if
filed with the commission prior to the conduct of  any  junket  that  is
governed by the agreement.
(c)  Agreements  between  a gaming facility licensee and its employees
which provide for gaming employee or casino key employee profit  sharing
shall  be  lawful  if  the  agreement  is  in writing and filed with the
commission prior to its effective date. Such agreements may be  reviewed
by the commission.
(d)  Agreements  to  lease  an  approved  gaming  facility or the land
thereunder and agreements for the  complete  management  of  all  gaming
operations  in  a gaming facility shall not be subject to the provisions
of this subdivision.
(e) Agreements which provide for percentage charges between the gaming
facility licensee and a holding company or intermediary company  of  the
gaming  facility  licensee  shall  be  in  writing  and  filed  with the
commission  but  shall  not  be  subject  to  the  provisions  of   this
subdivision.
(f)  Written  agreements  relating to the operation of multi-casino or
multi-state progressive slot machine systems between one or more  gaming
facility  licensees  and  a  licensed  casino  vendor  enterprise  or an
eligible applicant for such license,  which  provide  for  an  interest,
percentage  or share of the gaming facility licensee's revenues, profits
or earnings from the  operation  of  such  multi-casino  or  multi-state
progressive  slot  machines  to  be paid to the casino vendor enterprise
licensee or applicant shall not be subject to  the  provisions  of  this
subdivision  if  the  agreements  are  filed  with  and  approved by the
commission.
2. Each gaming facility  applicant  or  licensee  shall  maintain,  in
accordance with the rules of the commission, a record of each written or
unwritten  agreement regarding the realty, construction, maintenance, or
business of a proposed or existing gaming facility or related  facility.
The  foregoing  obligation  shall apply regardless of whether the gaming
facility applicant or licensee is a party to  the  agreement.  Any  such
agreement  may  be  reviewed  by  the  commission  on  the  basis of the
reasonableness of its terms, including the terms of compensation, and of
the qualifications of the owners, officers, employees, and directors  of
any  enterprise involved in the agreement, which qualifications shall be

reviewed according to the standards enumerated in section  one  thousand
three   hundred   twenty-three   of  this  article.  If  the  commission
disapproves such an agreement or the  owners,  officers,  employees,  or
directors of any enterprise involved therein, the commission may require
its termination.
Every agreement required to be maintained, and every related agreement
the  performance  of which is dependent upon the performance of any such
agreement, shall be deemed to include a provision to the effect that, if
the  commission  shall  require  termination  of  an   agreement,   such
termination  shall  occur  without  liability  on the part of the gaming
facility applicant or licensee or any qualified party to  the  agreement
or  any related agreement. Failure expressly to include such a provision
in the agreement shall not constitute a defense in any action brought to
terminate the agreement. If the agreement is not maintained or presented
to the commission in accordance  with  commission  regulations,  or  the
disapproved  agreement  is not terminated, the commission may pursue any
remedy or combination of remedies provided in this article.
For the purposes of  this  subdivision,  "gaming  facility  applicant"
includes  any  person required to hold a gaming facility license who has
applied to the commission for a gaming facility license or any  approval
required.
3.  Nothing  in this article shall be deemed to permit the transfer of
any license, or any interest in  any  license,  or  any  certificate  of
compliance  or any commitment or reservation without the approval of the
commission.