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 5104 - Financial Stability Of Video Lottery Gaming Agents › Section 5104.1 - Financial stability criteria

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Criteria . Each video lottery gaming agent, and each of such agent's
					 principals, shall establish and maintain during the pendency of such video
					 gaming agent license the financial stability of such licensee to the
					 satisfaction of commission. The commission may consider any relevant evidence
					 of financial stability. A video lottery gaming agent shall be considered to be
					 financially stable if such agent establishes by clear and convincing evidence
					 that such agent meets each of the following standards:
(1) Each video lottery gaming agent must
					 assure the financial integrity of video lottery gaming operations by the
					 maintenance of a video lottery gaming bankroll, or equivalent provision(s),
					 adequate to pay prizes to video lottery gaming patrons when due. A video
					 lottery gaming agent shall be found to have established this standard if it
					 maintains, on a daily basis, a video lottery gaming bankroll, or equivalent
					 provisions, in an amount at least equal to the facility's immediate cash
					 requirement exposure for player prizes. Prior to receiving a certificate of
					 operation for the video lottery gaming facility, each video lottery gaming
					 agent must submit to the commission a calculation of their video lottery gaming
					 bankroll to be maintained at the commencement of each gaming day. Such
					 calculation shall be based upon prize valuation levels. The bankroll will be
					 reviewed by the commission, and shall guarantee that the vault funding by
					 weekday is at least equal to 200 percent of the projected average daily prize
					 claims at the video lottery gaming facility. Each video lottery gaming agent
					 must continually review and evaluate daily bankroll requirements and notify the
					 commission in writing if it requests to change the amount of the minimum
					 bankroll. Such notification must be provided to the commission at least 10 days
					 prior to the implementation of the new funding level. Maintenance of a minimum
					 bankroll is subject to audit or review by the commission. Failure to maintain
					 adequate funding levels consistent with this requirement will be a violation of
					 the video lottery gaming agent's license.
(2) Each video lottery gaming agent must be
					 able to pay, as and when due, all local, State and Federal taxes, including the
					 tax on gross revenues imposed by the video lottery gaming law, and any costs
					 associated with the licensing process.
(3) A video lottery gaming agent shall
					 maintain the video lottery gaming facility and related amenities in good
					 repair. Each video lottery gaming agent shall submit annually to the commission
					 for review, any changes or updates to the capital investment plan for the video
					 lottery gaming facility together with the then-effective capital investment
					 plan. The commission shall review such changes and updates to ensure that each
					 video lottery gaming agent is investing portions of the vendor fee permitted by
					 the act in the facility's infrastructure as is necessary to support viable and
					 successful video lottery gaming in this State . Each capital investment plan
					 submitted shall be in such form as required by the commission and shall discuss
					 the improvements made to the facility since the submission of the last
					 investment plan. Each video lottery gaming agent shall budget for repair and
					 replacement reserves to maintain the facility unless otherwise prohibited by
					 law. The commission reserves the right to require video lottery gaming agents
					 to create and fund replacement reserves at such amounts determined by the
					 commission consistent with the requirements of the act.
(4) Each video lottery gaming agent must be
					 able to pay, exchange, refinance or extend debts, including long-term and
					 short-term principal and interest and capital lease obligations, that will
					 mature or otherwise come due and payable during the license term, or to
					 otherwise manage such debts and any default with respect to such debts. Each
					 video lottery gaming agent shall advise the commission of such agent's plans to
					 meet this standard with respect to any material debt(s) coming due and payable
					 within 12 months after the end of the license term.
(5) No video lottery gaming agent shall
					 consummate a material debt transaction without the prior written approval of
					 the commission.
(6) No video
					 lottery gaming agent shall guarantee the debt of any person or business entity,
					 whether by co-signature or otherwise, or assume the debt of any person or
					 business entity; or enter into any agreement to place any encumbrance on of its
					 video lottery gaming facility to secure the debts of such video gaming agent,
					 any person or business entity, without the prior written approval of the
					 commission.