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 5100 - General Provisions, Construction And Application of Rules › Section 5100.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Unless
					 the context indicates otherwise, the following definitions are applicable
					 throughout this subchapter.
(1) Accounting
					 department means a department established in the video lottery gaming agent's
					 approved system of organization in accordance with these regulations.
(2) Advertising or advertisement means any
					 information, notice or communication by a video lottery gaming agent to the
					 public concerning the video lottery gaming-related business of such agent
					 through broadcasting, exterior signage, mail, publication, or any other means
					 of dissemination. All advertising or advertisement(s) shall be specifically set
					 forth and itemized in a marketing plan approved by the commission as provided
					 by these regulations.
(3) Affiliate
					 means a parent company or subordinate business entity of the video lottery
					 gaming agent.
(4) Agent
					 compensation means the commission set forth in the act.
(5) Applicant means any person applying for a
					 video lottery gaming license required by this Subchapter.
(6) Application means the video lottery
					 gaming license application.
(7)
					 Assets means those fixtures, furniture, equipment, cash and other items owned
					 and maintained by a video lottery gaming agent in connection with the operation
					 of a video lottery gaming facility and or related amenity.
(8) Authorized instrument means a cash
					 equivalent, a video lottery gaming agent check, a video lottery gaming agent
					 affiliate check, an annuity jackpot trust check or a replacement
					 check.
(9) Background investigation
					 means the security, fitness and background investigation to be conducted of an
					 applicant by the commission and the commission's representative for the purpose
					 of determining suitability for licensure.
(10) Banking institution means any
					 "depository institution" as defined in
					 12 U.S.C. section
					 461(b).
(11) Bill acceptor means a device that
					 accepts and reads currency or other approved items of value in order to
					 accurately register player credits at a video lottery terminal.
(12) Books and records means any book, record
					 or document pertaining to, prepared in or generated by the operation of a video
					 lottery gaming agent, including, but not limited to: all forms, reports,
					 accounting records, ledgers, subsidiary records, computer generated data,
					 internal audit records, correspondence and personnel records. This definition
					 shall apply without regard to the medium through which the record is generated
					 or maintained; for example, paper, magnetic media, encoded disk or other
					 commission-approved medium. All books and records are considered a public
					 record as that term is used in the State Penal Law and shall also be construed
					 to mean a business record under such, unless exempt from disclosure pursuant to
					 applicable Federal or State law.
(13) Business day means a calendar day other
					 than Saturday, Sunday, or any day on which the commission's main offices are
					 closed because of Federal, State or local holiday, inclement weather, or like
					 circumstance.
(14) Business entity
					 means a corporation, partnership, limited liability company, sole
					 proprietorship, or other business form recognized by any state.
(15) Business plan means a document
					 containing information regarding video lottery gaming agent facility operations
					 as may be required by the commission.
(16) Cage cashiers means the cashiers
					 performing any of the functions in the cashiers' cage as set forth in these
					 regulations.
(17) Cage supervisor
					 means any person designated as such and appropriately licensed as required by
					 the video lottery gaming agent's jobs compendium that allows that person to
					 supervise personnel and functions within the cashiers' cage.
(18) Capital and maintenance expenditures
					 means expense items related to the video lottery gaming facility incurred in
					 connection with furniture, fixtures, equipment and facilities, and capitalized
					 costs. Such term shall include: acquisition; replacement; repairs;
					 refurbishment; renovation; improvements; maintenance, including public area
					 housekeeping, and labor.
(19) Cash
					 means currency.
(20) Cash
					 equivalent means:
(i) certified check,
					 cashiers' check, treasurer's check, recognized traveler's check or recognized
					 money order that:
(a) is made payable to the
					 video lottery gaming agent where presented, a holding company of the video
					 lottery gaming agent, "bearer" or "cash";
(b) is dated, but not postdated;
					 and
(c) does not contain any
					 endorsement;
(ii)
					 certified check, cashier's check, treasurer's check or recognized money order
					 that:
(a) is made payable to the presenting
					 player;
(b) is endorsed in blank by
					 the presenting player;
(c) is dated
					 but not postdated; and
(d) does not
					 contain any endorsement other than that of the presenting player.
(21) Central site means
					 a location where the central video lottery communications control systems is
					 located.
(22) Central system means
					 central video lottery communications control system.
(23) Central system provider means a licensed
					 vendor with whom the commission has contracted for the purpose of providing and
					 maintaining a central system and the related management facilities with respect
					 to the operation of video lottery terminals.
(24) Central video lottery communications
					 control system means the hardware, software and network components that link
					 and support video lottery terminals to a central site.
(25) Certification or certificate of
					 operations means authorization by the commission to commence operation in
					 accordance with the commission's inspection and approval process of video
					 lottery terminals, central system and related video lottery gaming software at
					 a particular video lottery gaming facility.
(26) Chief financial officer means the senior
					 executive of the video lottery gaming agent with overall responsibility for
					 such agent's internal and accounting controls.
(27) Chief operating officer means the senior
					 executive of the video lottery gaming agent exercising the overall management
					 or authority over all video lottery gaming operations at a video lottery gaming
					 facility.
(28) Commission means the
					 New York State Gaming Commission.
(29) Compensation means direct or indirect
					 payment for services performed including, but not limited to, salary, wages,
					 bonuses, deferred payments, overtime and chattels.
(30) Complimentary service or complimentary
					 item means a service or cash or noncash item provided directly or indirectly by
					 the video lottery gaming agent pursuant to a marketing plan approved by the
					 commission at no cost or at a reduced price to a player. Complimentary services
					 or items are subject to this subchapter and guidance issued by the commission
					 from time to time.
(31)
					 Construction contractor means any contractor or sub-contractor which is
					 employed by a video lottery gaming agent to construct or assist in the
					 construction of any portion of a video lottery gaming facility prior to the
					 issuance of a certificate of operation by the commission employed after such
					 issuance for more than 30 days, in accordance with these regulations. A
					 contractor or sub-contractor employed by a video lottery gaming agent for less
					 than 30 days shall be authorized as a temporary service provider as defined in
					 paragraph (100) of this subdivision.
(32) Controller means the person who is
					 responsible to supervise the accounting department of a video lottery gaming
					 agent and who shall report to an officer as approved by the
					 commission.
(33) Count means the
					 total currency or cash equivalent counted for a video lottery terminal, per
					 day, or other period specified by the video lottery gaming agent.
(34) Count room means a room where cash is
					 received and counted.
(35) Coupon
					 is a non-cash item provided to a player as a complimentary or promotion item
					 and can be used to play a video lottery terminal. All coupons are issued
					 pursuant to the commission's policy and procedure and must be described in an
					 approved marketing plan.
(36)
					 Currency means coin or paper money issued by the United States.
(37) Currency compartment means a compartment
					 that maintains a separate lock with a separate key from the main cabinet area
					 of the video lottery terminal and stores and secures the drop box.
(38) Department of State means the New York
					 Department of State.
(39)
					 Department of Taxation and Finance means the New York State Department of
					 Taxation and Finance.
(40) Direct
					 mail means a program set forth in a marketing plan approved by the commission
					 that informs player(s) and potential player(s), through direct contact, or
					 promotions, of events and offerings at the video lottery gaming facility in an
					 effort to increase player visitation to such facility and the usage of video
					 lottery terminals.
(41) Drop means
					 the total amount of the currency or cash equivalents removed from video lottery
					 terminals.
(42) Drop box means a
					 secure container in which shall be deposited all cash and vouchers inserted
					 into the bill acceptor of a video lottery terminal.
(43) Electronic funds transfer, or EFT, means
					 the transfer of currency by a banking institution by electronic
					 means.
(44) Eligible venue means a
					 location at which the commission is authorized by the act to license the
					 operation of video lottery gaming.
(45) Entertainment costs means those costs
					 identified in a marketing plan approved by the commission and incurred by the
					 video lottery gaming agent for entertainers, performers and events that are
					 intended to increase player visitation to the video lottery gaming facility and
					 the usage of the video lottery terminals.
(46) Equivalent provisions means lines of
					 credit, parent company guarantees, or other arrangements approved in writing by
					 the commission through which funds can be accessed on a timely and as needed
					 basis.
(47) Financial institution
					 means any banking institution or investment bank authorized to do business in
					 the State.
(48) Financial stability
					 means the ability of a video lottery gaming agent or vendor to meet its
					 financial obligations.
(49)
					 Financial statement means any of the following:
(i) balance sheet;
(ii) income statement;
(iii) profit and loss statement;
(iv) statement of cash flow; or
(v) sources and uses of funds
					 statement.
(50) Gaming
					 day means any calendar day during which video lottery gaming occurs at any
					 licensed video lottery gaming facility.
(51) Gross sales means the total sales from
					 video lottery terminals.
(52) Group
					 sales means a program established by a video lottery gaming agent and described
					 in a marketing plan approved by the commission and that provides incentives for
					 groups, organizations, clubs and similar entities to increase player visitation
					 to the video lottery gaming facility and the usage of video lottery
					 terminals.
(53) Hold means the
					 relationship of credits played to credits won for video lottery
					 terminals.
(54) Holding company
					 means a company whose sole function is to own and control other
					 companies.
(55) Imprest basis means
					 the basis on which cashiers' cage funds are replenished from time to time in
					 exactly the amount of the net of expenditures made from the funds and amounts
					 received.
(56) Incompatible
					 function means a function, for accounting control purposes, that places any
					 person or department in a position to both perpetrate and conceal errors or
					 irregularities in the normal course of such person or department's duties. For
					 example, anyone recording transactions and having access to assets ordinarily
					 is in a position to perpetrate errors or irregularities.
(57) Independent certified public accountant
					 means a professional accountant licensed within the State suitably qualified
					 and sufficiently independent to act as auditor of the video lottery gaming
					 operations.
(58) Independent
					 testing laboratory means a laboratory, licensed by the commission, that shall
					 be used by vendors of the commission to ensure that the central system, site
					 controllers, terminals and associated equipment used in the conduct of video
					 lottery gaming operate in the manner set forth by these regulations.
(59) Internal audit means employees of the
					 video lottery gaming agent who perform an audit function of a video lottery
					 gaming facility operation who are independent of the video lottery gaming
					 facility department subject to such audit. Internal audit activities shall be
					 conducted in a manner that permits objective evaluation of areas examined and
					 the results of internal audits are to be communicated to management.
(60) Internal control system means internal
					 procedures, administration, and accounting controls designed by the video
					 lottery gaming agent for the purpose of exercising control over the video
					 lottery gaming facility operation and its assets.
(61) Jackpot means the greatest amount of
					 prize value to be awarded to a player for a given game.
(62) Jackpot payout means a total payout or
					 the portion of a jackpot paid by video lottery gaming agent
					 personnel.
(63) Key employee means
					 a person required to obtain a video lottery gaming key employee license,
					 including any natural person who will be employed by a video lottery gaming
					 agent in a position that includes any responsibility or authority to develop or
					 administer policy or long-range plans or to make discretionary decisions
					 regarding video lottery gaming facility operations, regardless of job title,
					 and who is not a principal of such agent.
(64) License means the authorization granted
					 by the commission that permits an applicant to engage in video lottery gaming
					 or video lottery gaming related activities.
(65) License application means the instrument
					 by which an applicant requests licensing for participation in video lottery
					 gaming or video lottery gaming related activities.
(66) Licensee means any person authorized by
					 the commission onto participate in video lottery gaming or video lottery gaming
					 related activities.
(67) Main bank
					 means the video lottery gaming agent's department that is responsible for at
					 least all of the following:
(i) providing
					 working funds to all operational departments;
(ii) maintaining custody of all
					 inventory;
(iii)
					 cashiers;
(iv) main bank vault or
					 vaults; and
(v) any other structure
					 that houses representatives of value for which the main bank is
					 accountable.
(68)
					 Manufacturer means a firm engaged by the commission onto supply video lottery
					 terminals as designated by the commission.
(69) Material debt means a debt, whether in a
					 single transaction or cumulative transactions during any 12-month period, that
					 may have a significant effect on the financial stability of a video lottery
					 gaming agent, in the following amounts:
(i)
					 $5,000,000 or more for a video lottery agent with 4,000 terminals or more;
					 or
(ii) $2,000,000 or more for a
					 video lottery agent with between 1,500 and 3,999 terminals; or
(iii) $1,000,000 or more for a video lottery
					 agent with fewer than 1,500 terminals.
(70) Marketing expenses or expenditures means
					 items related to the marketing, promotion and associated costs of a video
					 lottery gaming agent's video lottery gaming operations, consistent with the
					 customary manner of marketing and promoting comparable operations in the
					 industry, subject to the overall supervision of the commission.
(71) Marketing and promotion program means
					 the program established by each video lottery gaming agent and funded out of
					 the vendor's fee.
(72) Marketing
					 plan means the plan prepared by the video lottery gaming agent and submitted to
					 the commission for approval pursuant to these regulations, which marketing plan
					 describes the marketing and promotional activities for the video lottery gaming
					 facility to be undertaken by the video lottery gaming agent.
(73) Meter means an electronic (soft) or
					 mechanical (hard) apparatus in a video lottery terminal used to register events
					 or occurrences.
(74) Natural person
					 means any individual person.
(75)
					 Net proceeds means credits played less credits won, less the video lottery
					 gaming agent's commission.
(76) Net
					 terminal income means the total amount of credits played less the total credits
					 won.
(77) Net win means net
					 terminal income.
(78) Non-gaming
					 employee means a licensed video lottery gaming employee who is not directly
					 involved in video lottery gaming and does not serve a gaming function,
					 including but not limited to, an employee involved in food and beverage,
					 housekeeping, valet or facility maintenance services.
(79) On a daily basis means something that
					 occurs or is performed each gaming day.
(80) Operating expenses means the total cost
					 of all selling, plus general and administrative expenses. These costs include,
					 but are not limited to: operating supplies, labor costs, licensing fees, retail
					 and entertainment costs, marketing, advertising, security and surveillance
					 equipment upgrade costs, property operations, utility, and maintenance
					 costs.
(81) Parent company means a
					 corporation that owns at least 90 percent of the outstanding shares of another
					 corporation.
(82) Player means a
					 natural person who inserts currency, a voucher, or other item of value into the
					 video lottery terminal to purchase video lottery gaming tickets.
(83) Player rewards club means a program
					 established by a video lottery gaming agent as described in a marketing plan
					 approved by the commission whereby player(s) can receive or accumulate points
					 based on either:
(i) credits played at a
					 video lottery terminal equated to a monetary value; or
(ii) purchases made at a video lottery gaming
					 facility to the extent permissible under the program established by the video
					 lottery gaming agent and approved by the commission.
Such points can then be redeemed for merchandise, entries
						into drawings, discounts on food and beverage and other complimentary items
						offered by the video lottery gaming agent.
(84) Premises means the building and grounds
					 occupied by a video lottery gaming facility that include that agent's video
					 lottery gaming facility and related amenities. In addition to the video lottery
					 gaming facility, premises includes facilities where food and drink are served,
					 as well as those areas not normally open to the public, such as areas where
					 records related to video lottery gaming operations are kept. Premises shall not
					 include the racetrack or such areas where such video lottery gaming operations
					 or facilities do not take place or exist, such as racetrack areas or
					 fairgrounds that are wholly unrelated to video lottery gaming operations. The
					 boundaries of the premises will be delineated on the floor plan, required by
					 these regulations as part of the video lottery gaming agent's business plan.
					 Areas that are not open to the public shall be deemed restricted
					 areas.
(85) Primary and secondary
					 jackpots means promotional prize pools offered at certain video lottery
					 terminals that can be won in addition to the primary prize.
(86) Principal of a video lottery gaming
					 agent means:
(i) each of its officers and
					 directors;
(ii) each of its
					 principal management employees, including any chief executive officer, chief
					 financial officer, chief operating officer, or general manager, including those
					 employees acting in these capacities, director of security, and director of
					 surveillance;
(iii) each of its
					 partners if a partnership or members if a limited liability company;
(iv) if a corporation, each of its
					 shareholders who own or control more than 10 percent of the shares of the
					 corporation if all warrants and/or options held by that shareholder were
					 exercised; shareholders who are members of the same family will be considered
					 as one shareholder for purposes of this section;
(v) if a limited liability company, each of
					 its members;
(vi) each person other
					 than a banking institution, investment broker, or mortgage broker licensed in
					 this State who has provided more than 10 percent of the total financing of the
					 video lottery gaming enterprise. The actual person or persons in control of the
					 principal financing entity shall be required to be licensed;
(vii) notwithstanding the foregoing,
					 non-salaried members of boards of directors or their operational equivalent of
					 non-profit or not-for-profit organizations and public benefit corporations may
					 be excluded from certain portions of the licensing requirements set forth in
					 these regulations at the discretion of the commission. For purposes of this
					 section only, salary shall mean monetary compensation for services rendered in
					 excess of a total of $5,000 annually; and
(viii) any person or other entity to exert
					 decision making control, financial or otherwise, over the video lottery gaming
					 agent including any such person in a parent or holding company of such
					 agent.
(87) Prize means
					 any credits won or value awarded as a result of the purchase and playing of a
					 video lottery game.
(88) Promotion
					 means an event, invitation, or offering, including coupons, designed to
					 showcase a specific feature, product or amenity of the video lottery gaming
					 facility as described in a marketing plan approved by the commission in an
					 effort to encourage and increase player visitation to the video lottery gaming
					 facility and usage of the video lottery terminals.
(89) Public area means the areas in the video
					 lottery gaming facility that are open to the public in accordance with the
					 video lottery gaming agent's system of internal controls.
(90) Rebate means cash or other item of value
					 provided to a player, vendor or other third party by the video lottery gaming
					 agent, which is strictly prohibited by these regulations. Rebate does not
					 include complimentary services or complimentary items.
(91) Replacement reserves means funds set
					 aside that are restricted for the replacement of wear and tear items throughout
					 the video lottery gaming facility.
(92) Restricted areas means areas of the
					 video lottery gaming agent's premises that are not open to the public,
					 including, but not limited to: the cashiers' cage, the count room, the
					 surveillance room, the specific areas designated for the possession and
					 maintenance of video lottery gaming equipment that support the conduct of video
					 lottery gaming in the video lottery gaming facility, any additional area that
					 the video lottery gaming agent designates as restricted in such agent's
					 internal controls, and any other area specifically designated by the commission
					 as restricted.
(93) Security
					 department member means any person employed by the video lottery gaming agent
					 to provide physical security at a video lottery gaming facility.
(94) Sensitive keys means keys that either
					 the video lottery gaming facility supervisor or the commission consider
					 sensitive to the video lottery gaming operation and therefore require strict
					 control over custody and issuance, in accordance with the video lottery gaming
					 agent's system of internal controls and these regulations.
(95) Shift means the regular, daily work
					 period of a group of employees administering and supervising the operation of
					 the video lottery gaming facility, working in relay with another such
					 succeeding or preceding group of employees at specific times.
(96) Site controller means computer equipment
					 located at a video lottery gaming facility used to link a number of video
					 lottery terminals to the central system.
(97) State means the State of New
					 York.
(98) Subcontractor means any
					 person who contracts with a licensed entity to provide goods or services in
					 furtherance of video lottery gaming.
(99) Temporary badges mean an identification
					 badge issued by a video lottery gaming agent to a temporary service
					 provider.
(100) Temporary service
					 provider means a vendor, a vendor's agents, servants and employees engaged by a
					 video lottery gaming agent to perform temporary services at a video lottery
					 gaming facility for no more than 30 days in any 12- month period.
(101) Terminal identification number means a
					 unique number assigned to identify a single video lottery terminal in a video
					 lottery gaming facility.
(102)
					 Terminal light means the light located conspicuously on the uppermost surface
					 of a video lottery terminal.
(103)
					 Theoretical win means the intended hold percentage or win of an individual
					 video lottery terminal as computed by reference to such terminal's payout
					 schedule.
(104) Theoretical win
					 worksheet means a worksheet provided by a manufacturer for video lottery
					 terminals that indicate the theoretical percentages that the video lottery
					 terminal(s) should hold based on expected levels of credits played. The
					 worksheet also indicates the number credits that may be played, the payout
					 schedule and other information descriptive of the particular type of video
					 lottery terminal required by the commission.
(105) United States means the United States
					 of America.
(106) Vendor means any
					 person or business entity who contracts or subcontracts with the commission or
					 a video lottery gaming agent or other provider to supply goods or services
					 related directly or indirectly to video lottery gaming.
(107) Vendee means any person or business
					 entity who contracts with a video lottery gaming agent to take away goods or
					 services from a video lottery facility.
(108) Video lottery game means any lottery
					 game played on a video lottery terminal that consists of multiple players
					 competing for a chance to win a randomly drawn prize.
(109) Video lottery gaming agent means a
					 person who has been licensed by the commission to operate a video lottery
					 gaming facility pursuant to the acts.
(110) Video lottery gaming agent check means
					 a check that is drawn by the video lottery gaming agent upon their account at a
					 banking institution and made payable to a person in payment of their
					 voucher.
(111) Video lottery gaming
					 bankroll means unrestricted cash maintained in the video lottery gaming
					 premises, or in cash and cash equivalent bank accounts, that is readily
					 available to meet prize payment obligations.
(112) Video lottery gaming count team means
					 the personnel that perform the count of the video lottery terminal
					 drop.
(113) Video lottery gaming
					 employee means a person required to hold a video lottery gaming employee
					 license, including any person who will be employed by a video lottery gaming
					 agent in any position and who is not a principal of a video lottery gaming
					 agent or a video lottery gaming key employee.
(114) Video lottery gaming facility means the
					 physical area and amenities where licensed video lottery gaming and related
					 activities are conducted.
(115)
					 Video lottery gaming facility department means the department of the video
					 lottery gaming agent responsible for the operation of video lottery
					 gaming.
(116) Video lottery gaming
					 facility manager means a person who has the ultimate responsibility to manage,
					 direct, or administer the conduct of the video lottery gaming conducted within
					 a video lottery gaming agent's facility.
(117) Video lottery gaming facility operation
					 means the operation of a video lottery gaming facility including, but not
					 limited to, video lottery gaming, the purveying of food, beverages, retail
					 goods and services, and transportation.
(118) Video lottery gaming floor means the
					 area of the video lottery gaming facility where video lottery gaming is
					 conducted.
(119) Video lottery
					 gaming supervisor means a person employed in the operation of a video lottery
					 gaming facility in a supervisory capacity or empowered to make discretionary
					 decisions to conduct video lottery gaming operations and perform certain
					 functions, including but not limited to, video lottery gaming facility shift
					 manager, the assistant gaming facility manager and the gaming facility
					 manager.
(120) Video lottery gaming
					 surveillance room means a room or rooms at the video lottery gaming facility
					 operated and staffed by video lottery gaming agent's employees for monitoring
					 and recording video lottery gaming operations. Entrance to such room shall not
					 be adjacent to, or visible from, any public area.
(121) Video lottery gaming system means a
					 system that consists of video lottery terminals, connected to a central system
					 that permit players to purchase video lottery gaming tickets.
(122) Video lottery gaming ticket means an
					 electronic instrument produced by a video lottery terminal or video lottery
					 gaming system that represents the outcome of a particular video lottery
					 game.
(123) Video lottery terminal
					 (may be referred to as VLT) means a video display terminal in which currency or
					 credits are deposited and a selection is made by the player in order to
					 purchase video lottery gaming tickets. A terminal shall be considered a video
					 lottery terminal notwithstanding the use of an electronic credit system making
					 the deposit of bills unnecessary.
(124) Voucher means an instrument of value
					 generated by a video lottery terminal representing a monetary amount and/or
					 play value owed to a customer at a specific video lottery terminal based on
					 video lottery gaming winnings and/or amounts not wagered.
(125) Wager means an item that is a
					 commission approved representative of value utilized to purchase a video
					 lottery gaming ticket at a video lottery terminal.