New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle T - New York State Gaming Commission › Chapter IV - Division of Gaming › Subchapter A - Video Lottery Gaming › Part 5116 - Marketing and Promotion Program › Section 5116.7 - Complimentary services and items

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Distribution of complimentary services.
(1)
					 Neither a video lottery gaming agent nor any third party affiliate or
					 non-affiliate shall offer or provide any complimentary service, item, cash or
					 other item of value to any person except as set forth in the video lottery
					 gaming agent's marketing plan as approved by the commission and as provided for
					 in this Part.
(2) a video lottery
					 gaming agent shall establish and maintain a system of internal controls,
					 subject to commission approval, for the authorization and issuance of all
					 complimentary services and items, including cash and non-cash items. Such
					 system of internal controls shall include, without limitation, the procedures
					 by which a video lottery gaming agent may delegate to such agent's employees
					 the authority to approve the issuance of complimentary services and items, the
					 controls in place to ensure complimentary services and items are utilized by
					 those individuals offered such services and items, and the procedures by which
					 conditions or limits placed upon such authority are established and modified,
					 including limits based on relationships between the authorizer and recipient,
					 the relationship between the the video lottery gaming agent or such agent's
					 principals with the recipient, and shall further include effective provisions
					 for audit purposes.
(3) For
					 purposes of determining the level of dollar value of complimentary service to
					 be deemed an acceptable use by the video lottery gaming agent from the
					 marketing and promotion program:
(i) all
					 complimentary services or items, whether or not offered or provided to players
					 in the normal course of the video lottery gaming agent's business, shall be
					 allowable costs under the marketing plan of the video lottery gaming agent at
					 amounts based upon rates established by the commission;
(ii) a complimentary service or item provided
					 directly or indirectly to a player on behalf of the video lottery gaming agent
					 by a third party not affiliated with the video lottery gaming agent, shall be
					 recorded at an amount based upon the actual cost to the video lottery gaming
					 agent of having the third party provide such service or item.
(4) The video lottery gaming
					 operation shall record both the dollar amount of, and the number of persons
					 provided with, each category of complimentary services or items. The
					 complimentary services shall, at a minimum, be separated into categories for
					 rooms, food, beverage, travel, free-play and other services.
(5) Any complimentary service or item,
					 including a complimentary cash or non-cash item, that is issued to a player as
					 part of a complimentary incentive program shall be subject to the requirements
					 of this Part and the approved marketing plan. The video lottery gaming agent
					 shall record, on a daily basis, the name of each person provided with a
					 complimentary service(s) or item(s), the category or type of service(s) or
					 item(s) provided, the value (as calculated in accordance with this Part or as
					 determined by the commission) of the service(s) or item(s) provided to such
					 person, and the signature, title or position and occupational license number of
					 the person authorizing the issuance of such service(s) or item(s). Upon the
					 commission's request, a copy of this record shall be immediately submitted to
					 the commission. This provision shall not apply to complimentary items of
					 nominal value (e.g., a portion of coffee or soda provided to a player while on
					 the gaming floor) that are offered to all patrons of the video gaming facility
					 without regard to level of play.
(6) Notwithstanding any inconsistent
					 provision of this section, the video lottery gaming agent shall not permit any
					 video lottery gaming agent employee to authorize the issuance of a
					 complimentary cash or non-cash item with a value of $1,000 or more unless the
					 employee is licensed as a key employee and the authorization is co-signed by a
					 second key employee of equal rank as identified in the approved jobs
					 compendium.
(7) If the video
					 lottery gaming agent provides complimentary cash or non-cash item(s) worth
					 $1,000 or more to a player or a player's guests within any five-day period, the
					 video lottery gaming facility shall record the profit-based reason why such
					 items were provided and maintain such records available for inspection by the
					 commission upon request.
(8) The
					 video lottery gaming agent shall submit to the commission a report listing each
					 player who has received $1,000.00 or more in complimentary cash or non-cash
					 item(s) within any five-day period ending during the preceding month. Such
					 report shall be filed by the last business day of the following month and shall
					 include the total amount of complimentary cash or non-cash items provided to
					 each person.
(9) Notwithstanding
					 any inconsistent provision of this section, no video lottery gaming agent shall
					 permit any employee to authorize the issuance of a complimentary cash or
					 non-cash item(s) with a value of $5,000 or more unless the video lottery gaming
					 employee is licensed and functioning as the facility manager or assistant
					 facility manager and the authorization is co-signed by a second employee who is
					 functioning as the controller of the video lottery gaming agent.
(10) If a video lottery gaming agent provides
					 complimentary cash or non-cash item(s) worth $5,000 or more to a player or a
					 player's guests within any five-day period, the video lottery gaming agent
					 shall record the profit-based reason why such items were provided and maintain
					 such records available for inspection by the commission upon request.
(11) In instances where complimentary
					 service(s) or item(s) have been issued by or on behalf of the video lottery
					 gaming agent, the video lottery gaming agent is responsible to comply with all
					 Federal, State and local tax reporting and withholding laws and rules for all
					 complimentary service(s) or item(s).
(12) No video lottery gaming agent shall
					 offer or provide, either directly or indirectly, any complimentary cash or
					 non-cash item to any player or any player's guests except in accordance with
					 the approved video lottery gaming agent marketing plan and these
					 regulations.
(13) All complimentary
					 cash or non-cash item(s) shall be disbursed directly to the player after
					 receipt of appropriate documentation or in any other manner approved in writing
					 by the commission in a video lottery gaming agent's internal control
					 submission.