RULES AND REGULATIONS
Title 58—RECREATION
PENNSYLVANIA GAMING CONTROL BOARD
[ 58 PA. CODE CHS. 1101a—1120a ]
Video Gaming
[51 Pa.B. 5207]
[Saturday, August 21, 2021]The Pennsylvania Gaming Control Board (Board), under the general authority in 4 Pa.C.S. §§ 3301(a) and (b)(30) and 3302 (relating to general and specific powers; and regulatory authority of the board) promulgates final-form governing the licensing, conduct and regulatory oversight of video gaming in the Commonwealth as set forth in Annex A.
Purpose of the Final-Form Rulemaking
This final-form rulemaking will provide a regulatory oversight structure for the conduct of video gaming at licensed truck stop establishments in this Commonwealth.
The regulations are necessary to implement 4 Pa.C.S. Part III (relating to video gaming) added under the act of October 30, 2017 (P.L. 419, No. 42) (Act 42 of 2017), whose intent is to provide truck stops which meet certain eligibility criteria the option of providing video gaming through a terminal operator licensee on the premises of the licensed truck stop establishment, and to ensure the integrity of the acquisition and operation of the video gaming terminals, redemption terminals and associated equipment. See 4 Pa.C.S. § 3301.
Explanation
Part VII, Subpart N (relating to video gaming) establishes the complete regulatory package necessary for the Board to commence licensing of truck stop establishments which elect to host video gaming activities, of terminal operators who place and operate video gaming terminals in truck stop establishments, of manufacturers, suppliers and gaming service providers. In addition, the subpart provides for testing of all equipment used in video gaming operations and establishes rules for the possession of video gaming terminals, accounting and internal controls and the conduct of video gaming in this Commonwealth. Finally, the subpart addresses compulsive and problem gambling, self-exclusion and Board-imposed exclusion upon persons whose presence in a video gaming area would be inimical to the Commonwealth's interests.
Subpart N establishes a broad regulatory oversight structure for video gaming. Section 1101a.2 (relating to definitions) provides the relevant definitions used throughout the chapter for the conduct of video gaming.
The regulation identifies numerous categories of licensees based upon the statutory criteria for licensure in the Act. Those categories of persons subject to licensure include terminal operators, establishment licensees and their principal qualifiers and key qualifiers, principals, key employees, suppliers, manufacturers, gaming service providers and occupation permittees. Chapters 1102a through 1109a establish the application and general requirements licensees and permittees must comply with to apply with the Board to participate in the regulated conduct of video gaming.
Sections 1110a.1 through 1111a.1 provide for a preliminary review of the application, followed by the processing of the applications by Board staff, addressing deficient and abandoned applications, avenues for withdrawing an application from consideration, and the terms and renewal periods for licenses.
Chapter 1112a (relating to video gaming terminal, redemption terminal and associated equipment testing and certification) addresses the testing and certification standards and processes for video gaming terminals, redemption terminals and associated equipment used in the conduct of video gaming. Testing of the video gaming terminals, redemption terminals and associated equipment is vital to assuring the proper operation of the machines within statutorily mandated guidelines as well as to assure fairness to patrons utilizing video gaming terminals.
Chapters 1113a, 1114a and 1115a (relating to possession of video gaming terminals; accounting and internal controls; and record retention) address the possession of video gaming terminals and establish video gaming accounting and internal control as well as record retention requirements. The purpose of these sections is to ensure accountability for revenues, play of games and overall integrity of the video gaming product.
Chapter 1116a (relating to conduct of video gaming) establishes standards for the video gaming area, video gaming terminals, redemption terminals, automated teller machines and restrictions on terminal operators, establishment licensees and employees of licensees in relation to the operation and conduct of video gaming.
Chapter 1117a (relating to video terminal placement agreements) requires that video terminal placement agreements between terminal operators and establishment licensees must be approved by the Board. It also establishes the standards which those agreements must satisfy in order to achieve Board approval.
Chapters 1118a and 1119a (relating to compulsive and problem gaming; and self-exclusion) relate to compulsive and problem gaming and establish requirements for signage in video gaming areas, the provision of problem gaming information and training as well as for the creation of a video gaming self-exclusion list as required by 4 Pa.C.S. § 3903(a) (relating to self-exclusion) and procedures by which individuals may self-exclude from the conduct of video gaming as well as removing oneself from the self-exclusion list.
Finally, Chapter 1120a (relating to exclusion of persons from video gaming) provides a mechanism establishing the Board's mandatory exclusion list and lists the basis upon which exclusion can be imposed, that is, generally if the persons conduct and presence at an establishment licensees' premises would be inimical to the interests of the Commonwealth and licensed gaming therein. The chapter further establishes the process which must be undertaken to initiate proceedings to exclude a person, including notice and a right to be heard, outlines a licensed establishments obligation to exclude the person, and provides an opportunity for an excluded person to seek his removal from the list of excluded persons.
Response to Comments
The Board did not receive any public comments from the regulated community or the general public. Comments were received from the Independent Regulatory Review Commission (IRRC), and responses to the comments are as follows:
Protection of the public health, safety and welfare; Implementation procedures
The Board acted with all possible due diligence in getting this final-form rulemaking promulgated to regulate the video gaming industry. After the passage of Act 42 of 2017, the Board was tasked with promulgating regulations for five separate forms of expanded gaming in rapid succession. In November 2020, Governor Tom Wolf signed the act of November 23, 2020 (P.L. 1140, No. 114) (Act 114 of 2020), making amendments to the Fiscal Code of the Commonwealth. Act 114 on 2020 included a provision that extended the expiration date of temporary regulations of the Board from 2 years after publication to 3 years after publication. Therefore, the temporary regulations for video gaming, originally published at 48 Pa.B. 1524 (March 17, 2018) did not expire until March 17, 2021. To date, the Board has not had any issues involved in the regulatory oversight of video gaming in this Commonwealth.
Compliance with the Regulatory Review Act and regulations of IRRC
All matters addressed in this comment have been remedied in the final-form Regulatory Analysis Form.
§ 1101a.2. Definitions; Clarity; Reasonableness
The legislature did not include a definition of ''commercial motor vehicle'' in Act 42 of 2017 when making amendments to the act. The Board deemed that it was most appropriate to use the definition of ''commercial motor vehicle'' from 75 Pa.C.S. § 1603 (relating to definitions), as those are the laws that govern vehicles in the Commonwealth and the only place the term is defined in the Commonwealth's laws. The Board believes this is the approach most consistent with ensuring that the truck stop establishments have adequate parking spaces for what the legislature has previously defined as commercial motor vehicles.
§ 1102a.3. Conditional terminal operator and procurement agent licenses; Clarity
The title of the section has been amended to reflect the recommended changes.
Subsection (a) is amended to indicate that the applicant must specifically request the conditional licensure when the original application is filed, to document that it is a separate and distinct request. The same changes are made in §§ 1103a.3 and 1104a.2 (relating to conditional establishment licenses; and conditional procurement agent principal licenses).
§ 1102a.4. Terminal operator licensee change of control; Clarity
The definition of ''controlling interest'' is added to § 1101a.2 (relating to definitions) as requested.
The language found in §§ 1102a.4, 1103a.4(a), 1106a.1(g)(1) and 1107a.1(g)(1) regarding change of control and controlling interests is consistent with the Board's existing body of regulations and other expanded gaming regulations that the Board has adopted. The gaming industry has not expressed any concern or confusion regarding the language, and therefore, no modifications have been made.
§ 1103a.1. Establishment licenses; Need; Reasonableness
The Board included this size language to ensure that the parking spaces at the truck stop establishments would be able to accommodate all types of commercial motor vehicles that meet the legislature's definition of the term, and not just some of the smaller vehicles. If the Board's requirements for parking spaces did not require adequately sized spaces to accommodate all of the types of vehicles in the definition of ''commercial motor vehicle'' under 75 Pa.C.S. § 1603 (relating to definitions), the 20 required spaces could only be made to accommodate vehicles as small as a 16-passenger vans or small school buses, which would preclude larger commercial motor vehicles from being able to park at and frequent the truck stop establishment. It is believed that the legislature would intend to require adequate parking spaces for larger commercial motor vehicles with sizes and weights included in the section, as that comports most with the traditional nature and character of a truck stop.
§ 1106a.1. Supplier licenses; Protection of the public health, safety and welfare; Clarity; Reasonableness
Section 3306(b) of 4 Pa.C.S. (relating to reporting) states that an applicant for a terminal operator license or an establishment license needs to file a diversity plan but does not impose the same requirement for supplier licensees or manufacturer licensees. The Board determined that the omission of suppliers and manufacturers from the diversity plan requirements by the legislature was intentional, and therefore the Board did not impose this requirement on suppliers and manufacturers.
Sections 1106a.1(b)(5) and 1107a.1(b) (relating to supplier licenses; and manufacturer licenses) are amended to reflect the recommended changes.
Chapter 1112a. Video gaming terminal, redemption terminal and associated equipment testing and certification; Clarity
The definition of ''educational institution'' is moved to § 1101a.2 as the terms does not appear in Chapter 1112a or subsequent chapters. Some of the terms included in the definitions section of Chapter 1112a are also used in Chapter 1113a, so language is added to clarify that the definition of the terms also applies to when the term is used in subsequent chapters.
§ 1112a. Redemption Terminals; Clarity
This section is amended to reflect the recommended changes.
§ 1112a.9. Redemption terminals; Clarity
This language is amended to reflect the recommended changes.
§ 1113a.1. Possession of video gaming terminals generally; Clarity
This section is amended to reflect the recommended changes.
§ 1116a.3. Redemption terminals; Clarity
The Board believes this section is not ambiguous or unclear. It directs that as it pertains to redemption tickets, a redemption terminal shall only accept redemption tickets produced by video gaming terminals at the truck stop establishment where the redemption terminal is located. This section is independent of any other use or function of redemption terminals. Inclusion of the language from § 1112a.9(e) (relating to redemption terminals) would be redundant and therefore unnecessary.
§ 1118a.5. Penalties; Clarity
This section is amended to reflect the recommended changes.
Chapter 1119a. Self-exclusion; Protection of the public health, safety and welfare; Clarity
This chapter has been updated to reflect the proposed changes to the self-exclusion procedures in Final Form Rulemaking # 125-225 and to be consistent with the other forms of expanded gaming.
Chapter 1120a. Exclusion of persons from video gaming; Clarity
The language in this chapter is amended to provide more clarity as to the exclusion of persons from establishment licensee facilities.
Miscellaneous clarity
The sections are amended to reflect the recommended changes.
Fiscal Impact
Commonwealth. The Board expects that the provisions contained in this final form rulemaking will have a relatively minimal fiscal impact on the Board or any other Commonwealth agency which primarily is the result of the need for some additional personnel needed to process applications and review, monitor and regulate the conduct of video gaming. Some of the additional duties will be absorbed by existing Board staff. The costs of the regulation will be paid for by an assessment against the gross terminal revenue generated by terminal operator licensees.
Political subdivisions. This final form rulemaking will have no fiscal impact on political subdivisions of the Commonwealth.
Private sector. This final form rulemaking is not anticipated to impose a negative fiscal impact on the regulated entities. The decision to participate in video gaming by an eligible truck stop establishment is not mandated by the act but is left to the discretion of those qualifying establishments.
If pursued, there will be some equipment costs for video gaming terminals, redemption terminals and surveillance and security-related equipment, as well as some limited renovation within the truck stop premises to obtain a segregated video gaming area. In addition, regulated video gaming terminal operators and establishment licensees may need to hire, train and license a limited number of staff in the conduct of video gaming. Any costs incurred to hire, train and license employees or purchase/lease equipment should be offset by the proceeds of the video gaming activity.
General public. This final form rulemaking will have no fiscal impact on the general public.
Paperwork Requirements
A terminal operator, establishment licensee, manufacturer, suppliers and person employed by those entities, will be required to file applications with the Board providing information regarding the person's proposed activity, security and surveillance as well as accounting and internal control protocols as well as background information of each individual sufficient to permit the Board to determine the individual's suitability for licensure. Applications for licensure and other relevant forms/documents can be found on the Board's public website at https://gamingcontrolboard.pa.gov/.
Individuals who wish to join the video gaming self-exclusion list may do so online on the Board's responsible play and self-exclusion portal by filling out a web-based form. The web site address is https://responsibleplay.pa.gov/self-exclusion/.
Effective Date
This final form rulemaking will become effective upon publication in the Pennsylvania Bulletin.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P.S. § 745.5(a)), on August 5, 2020, the Board submitted a copy of the proposed rulemaking, published at 50 Pa.B. 4516 (September 5, 2020) to IRRC and the Chairpersons of the House Gaming Oversight Committee and the Senate Community, Economic and Recreational Development Committee for review and comment.
Under section 5(c) of the Regulatory Review Act, the Board is required to submit to IRRC and the Committees copies of comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Board has considered all comments from IRRC, the House and Senate Committees and the public. With regard to this final-form rulemaking, no comments were received from the Committees.
Under section 5a(j.2) of the Regulatory Review Act (71 P.S. § 745.5a(j.2)), on June 16, 2021, the final-form rulemaking was deemed approved by the Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on June 17, 2021, and approved the final-form rulemaking.
Findings
The Board finds that:
(1) Public notice of intention to adopt these amendments was given under sections 201 and 202 of the act of July 31, 1968 (P.L. 769, No. 240) (45 P.S. §§ 1201 and 1202), known as the Commonwealth Documents Law, and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2. (relating to notice of proposed rulemaking required; and adoption of regulations).
(2) This final-form rulemaking is necessary and appropriate for the administration and enforcement of 4 Pa.C.S. Part II (relating to gaming).
Order
The Board, acting under 4 Pa.C.S. Part II, orders that:
(1) The regulations of the Board, 58 Pa. Code, are amended by deleting §§ 1101.1, 1101.2, 1102.1—1102.3, 1103.1—1103.3, 1104.1, 1105.1, 1106.1, 1107.1, 1108.1—1108.3, 1109.1, 1109.2, 1110.1—1110.4, 1111.1, 1112.1—1112.17, 1113.1—1113.7, 1114.1, 1115.1, 1116.1—1116.8, 1117.1, 1117.2, 1118.1—1118.5, 1119.1—1119.5 and 1120.1—1120.9 and adding 1101a.1, 1101a.2, 1102a.1—1102a.4, 1103a.1—1103a.4, 1104a.1, 1104a.2, 1105a.1, 1106a.1, 1107a.1, 1108a.1—1108a.3, 1109a.1, 1109a.2, 1110a.1—1110a.4, 1111a.1, 1112a.1—1112a.17, 1113a.1—1113a.6, 1114a.1, 1115a.1, 1116a.1—1116a.9, 1117a.1, 1117a.2, 1118a.1—1118a.5, 1119a.1—1119a.8 and 1120a.1—1120a.9 to read as set forth in Annex A.
(2) The Chairperson of the Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(3) This order shall take effect upon publication in the Pennsylvania Bulletin.
DAVID M. BARASCH,
Chairperson(Editor's Note: See 51 Pa.B. 4035 (July 24, 2021) for IRRC's approval order.)
Fiscal Note: Fiscal Note 125-230 remains valid for the final adoption of the subject regulations.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart N. VIDEO GAMING
Chapter 1101. (Reserved) Sec.
1101.1. (Reserved). 1101.2. (Reserved).
CHAPTER 1101a. VIDEO GAMING GENERALLY Sec.
1101a.1. Scope. 1101a.2. Definitions. § 1101a.1. Scope.
The purpose of this subpart is to govern the operation of video gaming terminals in this Commonwealth. Parts I, II and III of 4 Pa.C.S. (relating to amusements generally; gaming; and video gaming) and the Board's regulations promulgated thereunder otherwise apply when not in conflict with this subpart.
§ 1101a.2. Definitions.
The following words and terms, when used in this subpart, have the following meanings, unless the context clearly indicates otherwise:
Applicant—A person who, on his own behalf or on behalf of another, applies for permission to engage in an act or activity that is regulated under this subpart.
Associated equipment—Equipment or a mechanical, electromechanical or electronic contrivance, component or machine used in connection with video gaming terminals or redemption terminals, including replacement parts, hardware and software.
Background investigation—A security, criminal, credit and suitability investigation of a person as provided for in this part that includes the status of taxes owed to the United States, the Commonwealth and political subdivisions.
Bureau—The Bureau of Investigations and Enforcement of the Board.
Bureau of Licensing—The Bureau of Licensing of the Board.
Cash—United States currency and coin.
Cash equivalent—A ticket, token, chip, card or other similar instrument or representation of value that the Board deems a cash equivalent in accordance with this part.
Central control computer—A central site computer controlled by the Department and accessible by the Board to which all video gaming terminals communicate for the purpose of auditing capacity, real-time information retrieval of the details of a financial event that occurs in the operation of a video gaming terminal or redemption terminal, including coin in, coin out, ticket in, ticket out, jackpots, video gaming terminal and redemption terminal door openings and power failure, and remote video gaming terminal or redemption terminal activation, and disabling of video gaming terminals or redemption terminals.
Cheat—
(i) To defraud or steal from a player, terminal operator licensee, establishment licensee or the Commonwealth while operating or playing a video gaming terminal, including causing, aiding, abetting or conspiring with another person to do so.
(ii) The term also means to alter or causing, aiding, abetting or conspiring with another person to alter the elements of chance, method of selection or criteria that determine any of the following:
(A) The result of a video gaming terminal game.
(B) The amount or frequency of payment in a video gaming terminal game.
(C) The value of a wagering instrument.
(D) The value of a wagering credit.
(iii) The term does not include altering a video gaming terminal or associated equipment for maintenance or repair with the approval of a terminal operator licensee and the Board.
Cheating or thieving device—A device, software or hardware:
(i) Used or possessed with the intent to be used to cheat during the operation or play of a video gaming terminal; or
(ii) Used to alter a video gaming terminal without the terminal operator licensee's and the Board's approval.
Commercial motor vehicle—As defined in 75 Pa.C.S. § 1603 (relating to definitions).
Conduct of video gaming—The licensed placement, operation and play of video gaming terminals under this subpart as authorized and approved by the Board.
Controlling interest—Any of the following:
(i) For a publicly traded domestic or foreign corporation, the term means a person has a controlling interest in a legal entity, applicant or licensee if a person's sole voting rights under state law or corporate articles or bylaws entitle the person to elect or appoint one or more of the members of the board of directors or other governing board or the person holds an ownership or beneficial holding of 5% or more of the securities of the publicly traded corporation, partnership, limited liability company or other form of publicly traded legal entity, unless this presumption of control or ability to elect is rebutted by clear and convincing evidence.
(ii) For a privately held domestic or foreign corporation, partnership, limited liability company or other form of privately held legal entity, the term means the holding of any securities in the legal entity, unless this presumption of control is rebutted by clear and convincing evidence.
Convenience store—A retail establishment which sells a limited selection of packaged foods, drug store items, food for consumption on or off the premises, and basic supplies for the home and table, which may include the retail sale of liquid fuels.
Conviction—
(i) A finding of guilt or a plea of guilty or nolo contendere, whether or not a judgment of sentence has been imposed as determined by the law of the jurisdiction in which the prosecution was held.
(ii) The term does not include a conviction that has been expunged or overturned or for which an individual has been pardoned or had an order of accelerated rehabilitative disposition entered.
Corporation—The term includes a publicly traded corporation.
Educational institution—A facility that teaches and certifies students in video gaming terminal design, operation, repair or servicing.
Establishment license—A license issued by the Board authorizing a truck stop establishment to permit a terminal operator licensee to place and operate video gaming terminals on the truck stop establishment's premises under this part.
Establishment licensee—A truck stop establishment that holds an establishment license.
Financial backer—An investor, mortgagee, bondholder, noteholder, or other sources of equity or capital provided to an applicant or licensed entity.
Gaming employee—
(i) Any of the following individuals:
(A) An employee of a terminal operator licensee, establishment licensee or supplier licensee that is not a key employee who is involved in the conduct of video gaming, including servicing and maintaining video gaming terminals, redemption terminals, and security and surveillance equipment, and monitoring the conduct of video gaming and patrons in the video gaming area of an establishment licensee.
(B) An employee of a supplier or manufacturer licensee whose duties are directly involved with the repair or distribution of video gaming terminals or associated equipment sold or provided to a terminal operator licensee in this Commonwealth as determined by the Board.
(C) An employee of a gaming service provider who, in connection with the performance of his duties, has access to a video gaming area, video terminals, redemption terminals, and the security and surveillance systems monitoring a video gaming area.
(ii) The term does not include nongaming personnel as determined by the Board or an employee of an establishment licensee who does not have duties involving the conduct or monitoring of video gaming.
Gaming service provider—
(i) A person who is not required to be licensed as a terminal operator, manufacturer, supplier or establishment licensee who provides goods or services to a terminal operator licensee that directly relates to the operation and security of a video gaming terminal or redemption terminal.
(ii) The term does not include a person who supplies goods or services that, at the discretion of the Board, does not impact the integrity of video gaming, video gaming terminals or the connection of video gaming terminals to the central control computer system, including all of the following:
(A) Seating to accompany video gaming terminals.
(B) Structural or cosmetic renovations, improvements or other alterations to a video gaming area.
Gross terminal revenue—
(i) The total of cash or cash equivalents received by a video gaming terminal minus the total of cash or cash equivalents paid out to players as a result of playing a video gaming terminal.
(ii) The term does not include counterfeit cash or cash taken in a fraudulent act perpetrated against a terminal operator licensee for which the terminal operator licensee is not reimbursed.
Incentive—Consideration, including a promotion or prize, provided to a player or potential player as an enticement to play a video gaming terminal.
Inducement—
(i) Any of the following:
(A) Consideration paid directly or indirectly, from a manufacturer, supplier, terminal operator, procurement agent, gaming employee, employee or another person on behalf of an applicant or anyone licensed under this part, to a truck stop establishment, establishment licensee, establishment licensee owner or an employee of the establishment licensee, directly or indirectly, as an enticement to solicit or maintain the establishment licensee or establishment licensee owner's business.
(B) Cash, incentive, marketing and advertising cost, gift, food, beverage, loan, prepayment of gross terminal revenue and other contribution or payment that offsets an establishment licensee's operational costs, or as otherwise determined by the Board.
(ii) The term does not include costs paid by a terminal operator applicant or terminal operator licensee related to making video gaming terminals operate at the premises of an establishment licensee, including for improvements and renovations to the video gaming area, wiring and rewiring, software updates, ongoing video gaming terminal maintenance, redemption terminals, network connections, site controllers and costs associated with communicating with the central control computer system.
Key employee—An individual who is employed by a manufacturer licensee, supplier licensee or terminal operator licensee who is determined by the Board to be a director or department head or otherwise empowered to make discretionary decisions that regulate the conduct of video gaming.
Key employee licensee—An individual who holds a key employee license.
Key employee qualifier—An individual required to be qualified as part of the truck stop establishment, including an individual who is part of an entity that leases a truck stop establishment or operates a truck stop establishment pursuant to a management or other agreement, who is determined by the Board to be a director or department head or otherwise empowered to make discretionary decisions that regulate the conduct of video gaming.
Law enforcement authority—The power to conduct investigations of or to make arrests for criminal offenses.
Licensed entity—A terminal operator licensee, establishment licensee, manufacturer licensee or supplier licensee under this part.
Licensed facility—As defined in section 1103 of the act (relating to definitions).
Licensed gaming entity—As defined in section 1103 of the act.
Licensee—A person listed under this part.
Manufacturer—A person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to a video gaming terminal, redemption terminal or associated equipment for use or play of video gaming terminals in this Commonwealth for video gaming purposes.
Manufacturer license—A license issued by the Board authorizing a manufacturer to manufacture or produce video gaming terminals, redemption terminals or associated equipment for use in this Commonwealth for video gaming purposes.
Manufacturer licensee—A person that holds a manufacturer license.
Minor—An individual under 21 years of age.
Nongaming employee—An individual who is employed by a terminal operator licensee, manufacturer licensee, supplier licensee, gaming service provider or establishment licensee and whose duties do not involve the conduct of video gaming or the monitoring of a video gaming area, either directly or through surveillance.
Nonkey employee—An individual employed by a terminal operator licensee who, unless otherwise designated by the Board, is not a key employee.
Occupation permit—A permit authorizing an individual to be employed or to work as a gaming employee for a terminal operator licensee, an establishment licensee, a gaming service provider, a supplier licensee or as an employee of a manufacturer who performs duties at the premises of a terminal operator or establishment licensee relating to video gaming terminals or redemption terminals.
Person—A natural person, corporation, foundation, organization, business trust, estate, limited liability company, trust, partnership, limited liability partnership, association or other form of legal business entity.
Player—An individual who wagers cash or a cash equivalent in the play or operation of a video gaming terminal and the play or operation of which may deliver or entitle the individual playing or operating the video gaming terminal to receive cash or a cash equivalent from a terminal operator licensee.
Principal—An officer, director or person who directly holds a beneficial interest in or ownership of the securities of an applicant or licensee under this part as a terminal operator, manufacturer or supplier or who has a controlling interest in an applicant or licensee as a terminal operator, manufacturer or supplier under this part or has the ability to elect a majority of the board of directors of a terminal operator, manufacturer or supplier licensee or to otherwise control anyone licensed under this part, procurement agent, lender or other licensed financial institution of an applicant or a terminal operator, manufacturer or supplier licensee under this part, other than a bank or lending institution which makes a loan or holds a mortgage or other lien acquired in the ordinary course of business, underwriter of an applicant or anyone licensed under this part or other person or employee of a terminal operator licensee, manufacturer licensee or supplier licensee deemed to be a principal by the Board, including a procurement agent.
Principal qualifier—Each owner, officer and director of the truck stop establishment, including each individual or owner, officer and director of an entity that leases a truck stop establishment or operates a truck stop establishment pursuant to a management or other agreement who is required to be qualified as part of the truck stop establishment application. For purposes of this definition, an owner is each individual who has a direct or indirect ownership or beneficial interest of 10% or more or an entity who has a direct ownership or beneficial interest of 20% or more in the truck stop establishment or other person as determined by the Board. An officer is a president, chief executive officer, a chief financial officer and a chief operating officer, and any person routinely performing corresponding functions with respect to an organization whether incorporated or unincorporated.
Procurement agent—A person that shares in the gross terminal revenue or is otherwise compensated for the purpose of soliciting or procuring a terminal placement agreement.
Progressive payout—A video game terminal wager payout that increases in a monetary amount based on the amounts wagered in a progressive system.
Progressive system—A computerized system linking video gaming terminals on the premises of an establishment licensee and offering one or more common progressive payouts based on the amounts wagered.
Publicly traded corporation—A person, other than an individual, who:
(i) Has a class or series of securities registered under the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78a—78qq).
(ii) Is a registered management company under the Investment Company Act of 1940 (15 U.S.C.A. §§ 80a-1—80a-64).
(iii) Is subject to the reporting obligations imposed by section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.A. § 78o(d)) by reason of having filed a registration statement that has become effective under the Securities Act of 1933 (15 U.S.C.A. §§ 77a—77aa).
Redemption terminal—The collective hardware, software, communications technology and other ancillary equipment used to facilitate the payment of cash or a cash equivalent to a player as a result of playing a video gaming terminal.
Registrant—A holder of a nongaming registration under this part.
Security—As defined in the Pennsylvania Securities Act of 1972 (70 P.S. §§ 1-101—1-703.1).
Subsidiary—As defined in section 1103 of the act.
Supplier—A person that sells, leases, offers or otherwise provides, distributes or services any video gaming terminal, redemption terminal or associated equipment to a terminal operator licensee for use or play in this Commonwealth.
Supplier license—A license issued by the Board authorizing a supplier to provide products or services related to video gaming terminals, redemption terminals or associated equipment to terminal operator licensees for use in this Commonwealth for the conduct of video gaming.
Supplier licensee—A person that holds a supplier license.
Terminal operator—A person that owns, services or maintains video gaming terminals for placement and operation on the premises of an establishment licensee.
Terminal operator license—A license issued by the Board authorizing a terminal operator to place and operate video gaming terminals in an establishment licensee's premises under this part.
Terminal operator licensee—A person that holds a terminal operator license.
Terminal placement agreement—The formal written agreement or contract between an applicant for a terminal operator license or terminal operator licensee and an applicant for an establishment license or establishment licensee that establishes the terms and conditions regarding the conduct of video gaming.
Truck stop establishment—A premises that:
(i) Is equipped with diesel islands used for fueling commercial motor vehicles.
(ii) Has sold on average 50,000 gallons of diesel or biodiesel fuel each month for the previous 12 months or is projected to sell an average of 50,000 gallons of diesel or biodiesel fuel each month for the next 12 months.
(iii) Has at least 20 parking spaces dedicated for commercial motor vehicles as defined in 75 Pa.C.S. § 1603.
(iv) Has a convenience store.
(v) Is situated on a parcel of land of not less than 3 acres that the truck stop establishment owns or leases.
(vi) Is not located on any property owned by the Pennsylvania Turnpike Commission.
Video gaming area—The area of an establishment licensee's premises where video gaming terminals and redemption terminals are installed for operation and play.
Video gaming employees—The term includes gaming employees, key employees and nonkey employees.
Video gaming terminal—
(i) A mechanical or electrical contrivance, terminal, machine or other device approved by the Board that, upon insertion of cash or cash equivalents, is available to play or operate one or more gambling games, the play of which utilizes a random number generator and:
(A) May award a winning player either a free game or credit that shall only be redeemable for cash or cash equivalents at a redemption terminal.
(B) May utilize video displays.
(C) May use an electronic credit system for receiving wagers and making payouts that are only redeemable at a redemption terminal.
(ii) Associated equipment necessary to conduct the operation of the contrivance, terminal, machine or other device.
(iii) The term does not include a slot machine operated at a licensed facility in accordance with the act or a coin-operated amusement game.
(iv) The term does not include ''lottery'' as defined in section 302 of the State Lottery Law (72 P.S. § 3761-302).
Chapter 1102. (Reserved) Sec.
1102.1—1102.3. (Reserved).
CHAPTER 1102a. TERMINAL OPERATOR LICENSEES Sec.
1102a.1. Terminal operator licenses. 1102a.2. Terminal operator license issuance and statement of conditions. 1102a.3. Conditional terminal operator and procurement agent licenses. 1102a.4. Terminal operator licensee change of control. § 1102a.1. Terminal operator licenses.
(a) An applicant for a terminal operator license may conduct video gaming upon approval by the Board and in accordance with 4 Pa.C.S. Part III (relating to video gaming) and this chapter.
(b) An applicant shall submit all of the following:
(1) An Enterprise Entity Application and Disclosure Information Form.
(2) The nonrefundable application fee of $25,000 in accordance with 4 Pa.C.S. § 4101(a) (relating to fees).
(3) A diversity plan as set forth in 4 Pa.C.S. § 3307 (relating to diversity).
(4) A current tax lien certificate issued by the Department.
(5) An application for each proposed key employee under Chapter 1105a (relating to key employees) and principal under Chapter 1104a (relating to principals) as specified in the Enterprise Entity Application and Disclosure Information Form.
(6) A statement that the applicant has developed and implemented internal safeguards and policies to prevent a violation of 4 Pa.C.S. § 4305 (relating to political influence) and a copy of the safeguards and policies.
(7) Details of any loans or other financial commitments to fund license costs and costs of operating video gaming.
(8) Information and documentation concerning financial background and resources, as the Board or the Bureau may require, to establish by clear and convincing evidence the financial stability, integrity and responsibility of the applicant.
(9) A consent authorizing the Board to conduct a background investigation, the scope of which is to be determined by the Bureau, in its discretion consistent with 4 Pa.C.S. Part III (relating to video gaming), and a release signed by all persons subject to investigation of all information required to complete the investigation.
(10) Information concerning maintenance and operation of video gaming terminals in other jurisdictions.
(11) Proof that the applicant has or will establish a place of business in this Commonwealth.
(12) A copy of, or a detailed description of, the terms and conditions of any terminal placement agreement entered into with an establishment licensee applicant or licensee.
(13) Any other information as the Board or the Bureau may require.
(c) Upon request of the Board or the Bureau, the applicant shall cooperate and provide supplemental information in support of its application. The applicant shall provide requested documents, records, supporting data and other information within the time period specified in the request or, if a time is not specified, within 30 days of the date of the request. If the applicant fails to provide the requested information within the required time period as set forth in the request, the Board may deny the application.
(d) The application, and amendments thereto, and other specific documents designated by the Board shall be filed promptly with the application or amendments thereto.
(e) An application and related materials that have been submitted to the Board will become the property of the Board and will not be returned.
§ 1102a.2. Terminal operator license issuance and statement of conditions.
(a) Criteria. In addition to the criteria in 4 Pa.C.S. Part III (relating to video gaming), the Board will not issue a terminal operator license unless all of the following criteria have been established by the applicant:
(1) The applicant has fulfilled each condition set by the Board, including the execution of a statement of conditions.
(2) The applicant is found suitable consistent with the laws of the Commonwealth and is otherwise qualified to be issued a terminal operator license.
(b) Statement of conditions.
(1) The applicant, as a condition precedent to the issuance of a terminal operator license, shall execute a Statement of Conditions in the manner and form required by the Board. Execution of the Statement of Conditions constitutes the acceptance of each provision contained in the Statement of Conditions by the applicant.
(2) Failure to fully comply with any provision contained in an executed Statement of Conditions constitutes a violation and may result in Board-imposed administrative sanctions, up to and including revocation of the license.
§ 1102a.3. Conditional terminal operator licenses.
(a) Upon accepting a terminal operator application for filing, the Board will issue a conditional terminal operator license if requested by the applicant and the applicant has satisfied, as determined by the Board, all of the following:
(1) The applicant has submitted a completed application for a terminal operator license.
(2) The applicant has never had a similar gaming license denied or revoked in another jurisdiction.
(3) The applicant has never been convicted of a felony in any jurisdiction.
(4) The applicant has never been convicted of a gambling law violation in any jurisdiction.
(5) The applicant is current on all State taxes.
(6) The applicant attests by affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure under 4 Pa.C.S. Part III (relating to video gaming).
(b) The Board will issue a conditional terminal operator license within 60 days after the completed application has been received by the Board, and the Board has determined that the criteria in subsection (a) have been satisfied.
(c) If the Board determines that the criteria in subsection (a) have not been satisfied, the Board will give the applicant written notice and explanation of that determination.
(d) A conditional license issued under this section will be valid until:
(1) The Board approves or denies the application for a terminal operator license.
(2) The conditional license is terminated for a violation of the act or this part.
(3) One calendar year has passed since the conditional license has been issued.
(e) The Board may extend the duration of a conditional license for 1 year.
(f) A request for conditional licensure must include a $100 fee in addition to the applicable fee required under 4 Pa.C.S. § 4101 (relating to fees).
§ 1102a.4. Terminal operator licensee change of control.
(a) For purposes of this section, a change of control of a terminal operator licensee will be deemed to have occurred when a person or group of persons acquires:
(1) More than 20% of a terminal operator licensee's securities, assets or other ownership interests.
(2) More than 20% of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the terminal operator licensee.
(3) Any other interest in a terminal operator licensee which allows the acquirer to control the terminal operator licensee.
(b) A terminal operator licensee shall notify the Bureau and the Bureau of Licensing in a manner prescribed by the Bureau of Licensing immediately upon becoming aware of any proposed or contemplated change of control of the terminal operator licensee.
(c) Prior to acquiring a controlling interest in a terminal operator licensee, the acquirer shall file a petition in accordance with § 493a.4 (relating to petitions generally) requesting Board approval of the acquisition. The petition must include all of the following:
(1) A copy of all documents governing the acquisition.
(2) Completed applications for the acquiring company, as required under this chapter, principals as required under Chapters 433a and 1104a (relating to principal licenses; and principals) and key employees as required under § 435a.2 (relating to key employee license) and Chapter 1105a (relating to key employees).
(d) A person or group of persons seeking to acquire a controlling interest in a terminal operator licensee shall promptly provide any additional information requested by the Board and Board staff and cooperate with the Bureau in any investigations related to the petition filed under subsection (c).
(e) A person or group of persons may not acquire a controlling interest in a terminal operator licensee until the petition required under subsection (c) has been approved. A person or group of persons seeking to acquire a controlling interest in a terminal operator licensee and the terminal operator may enter into an agreement of sale that is contingent on Board approval of the petition.
(f) The requirements in this section do not apply to the acquisition of a controlling interest in a terminal operator when all of the following conditions are met:
(1) The acquirer is an existing licensed terminal operator licensee.
(2) The existing licensed terminal operator licensee has provided the Bureau and the Bureau of Licensing notification and a copy of all documents governing the acquisition at least 60 days prior to the acquisition.
(3) After reviewing the documentation, the Bureau and the Bureau of Licensing determine that the filing of a petition is not required.
Chapter 1103. (Reserved) Sec.
1103.1—1103.3. (Reserved).
CHAPTER 1103a. ESTABLISHMENT LICENSEES Sec.
1103a.1. Establishment licenses. 1103a.2. Establishment principal and key employee qualification. 1103a.3. Conditional establishment licenses. 1103a.4. Establishment licensee change of control. § 1103a.1. Establishment licenses.
(a) A truck stop establishment in this Commonwealth seeking to offer video gaming terminals through a licensed terminal operator on its premises shall apply for an establishment license by filing a Video Gaming Terminal Establishment License Application with the Board.
(b) To be eligible to file an application for an establishment license, the truck stop establishment must meet all of the following requirements:
(1) Be equipped with diesel islands for the fueling of commercial motor vehicles and have sold on average 50,000 gallons of diesel or biodiesel fuel each month for the previous 12 months or is projected to sell an average of 50,000 gallons of diesel or biodiesel fuel each month for the next 12 months.
(2) Have at least 20 parking spaces dedicated for commercial motor vehicles. For purposes of this paragraph, ''parking spaces dedicated for commercial motor vehicles'' must be of sufficient size to accommodate vehicles which are 8 feet in width and 53 feet in length or which otherwise have a gross combination weight rating or gross combination weight of 26,000 pounds inclusive of a tow unit with a gross vehicle weight rating or gross vehicle weight of more than 10,000 pounds, whichever is greater.
(3) Have a convenience store.
(4) Be situated on a parcel of land not less than 3 acres and which is not located on property owned by the Pennsylvania Turnpike Commission.
(5) Be licensed as a lottery sales agent under section 305 of the State Lottery Law (72 P.S. § 3761-305).
(c) An applicant for an establishment license shall submit all of the following:
(1) A Video Gaming Terminal Establishment License Application.
(2) The nonrefundable application fee of $1,000 in accordance with 4 Pa.C.S. § 4101(a) (relating to fees).
(3) Documentation to establish its eligibility to apply to be an establishment licensee as set forth in subsection (b).
(4) A to-scale schematic or architectural rendering of the floor plan of the establishment which shows all of the following:
(i) Total square footage of the video gaming area.
(ii) A depiction of the video gaming area where video gaming will be offered in relation to the overall facility.
(iii) Location of the video gaming terminals and redemption terminals, and security and surveillance equipment locations.
(iv) A detailed description of the surveillance to be utilized.
(5) A description of the proposed surveillance and security measures to ensure the security of the proposed video gaming area.
(6) An executed terminal placement agreement between the establishment licensee and terminal operator.
(7) A diversity plan as set forth in 4 Pa.C.S. § 3307 (relating to diversity).
(8) A current tax lien certificate issued by the Department.
(9) Information for each key employee qualifier and principal qualifier as specified in the Video Gaming Terminal Establishment License Application.
(10) The consent to a background investigation by the Bureau of the applicant, its principal qualifiers and key employee qualifiers or other persons required by the Board and a release to obtain the information necessary for the completion of the background investigation.
§ 1103a.2. Establishment principal and key employee qualification.
(a) In addition to the information required under § 1103a.1(c)(8) (relating to establishment licenses), a principal qualifier and key employee qualifier shall apply for qualification as follows:
(1) Submit fingerprints in a manner prescribed by the Bureau.
(2) Consent to a background investigation by the Bureau of the principal qualifier and key employee qualifier and a release to obtain the information necessary for the completion of the background investigation.
(3) Provide any other information required by the Board.
(b) In addition to individuals meeting the definition of principal qualifier and key employee qualifier, the Board may require the submission of fingerprints or any other information required by the Board from a person who holds any direct or indirect ownership or beneficial interest in a truck stop establishment, or has the right to any profits or distributions directly or indirectly, from the truck stop establishment if the Bureau determines that the submission of fingerprints of the person is necessary to protect the public interest or to enhance the integrity of gaming in this Commonwealth.
(c) Each of the individuals required to submit fingerprints under subsections (a) and (b) must be found qualified by the Board. An individual who is found qualified and is also a gaming or nongaming employee as defined in §§ 401a.3 and 1101a.2 (relating to definitions) shall obtain a gaming employee occupation permit in accordance with § 435a.3 (relating to occupation permit) or a nongaming employee registration in accordance with § 435a.5 (relating to nongaming employee registration) and Chapter 1109a (relating to occupation permits) of this subpart.
§ 1103a.3. Conditional establishment licenses.
(a) Upon accepting an establishment license application for filing, the Board will issue a conditional establishment license if requested by the applicant and the applicant has satisfied, as determined by the Board, all of the following:
(1) The applicant has submitted a completed application for an establishment license.
(2) The applicant has never been convicted of a felony in any jurisdiction.
(3) The applicant has never been convicted of a gambling law violation in any jurisdiction.
(4) The applicant is current on all State taxes.
(5) The applicant attests by affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure under 4 Pa.C.S. Part III (relating to video gaming).
(b) The Board will issue a conditional license within 60 days after the completed application has been received by the Board, and the Board has determined that the criteria in subsection (a) have been satisfied.
(c) If the Board determines that the criteria in subsection (a) have not been satisfied, the Board will give the applicant written notice and explanation of that determination.
(d) A conditional license issued under this section will be valid until:
(1) The Board approves or denies the application for an establishment license.
(2) The conditional license is terminated for a violation of this part.
(3) One calendar year has passed since the conditional license has issued.
(e) The Board may extend the duration of a conditional license for 1 year.
(f) A request for a conditional license must include a $100 fee which shall be in addition to the applicable fee required under 4 Pa.C.S. § 4101 (relating to fees).
§ 1103a.4. Establishment licensee change of control.
(a) For purposes of this section, a change of control of an establishment licensee will be deemed to have occurred when a person or group of persons acquires:
(1) More than 20% of an establishment licensee's securities, assets or other ownership interests.
(2) More than 20% of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the establishment licensee.
(3) Any other interest in an establishment licensee which allows the acquirer to control the establishment licensee, including a lease agreement, management agreement, or other agreement that permits the acquirer operational control of the establishment licensee.
(b) An establishment licensee shall notify the Bureau and the Bureau of Licensing in a manner prescribed by the Bureau of Licensing immediately upon becoming aware of any proposed or contemplated change of control of the establishment licensee.
(c) Prior to acquiring a controlling interest or operational control in an establishment licensee, the acquirer shall file a petition in accordance with § 493a.4 (relating to petitions generally) requesting Board approval of the acquisition. The petition must include all of the following:
(1) A copy of all documents governing the acquisition, lease agreement or management agreement.
(2) Completed applications for the acquiring company, principal qualifiers and key employee qualifiers as required under this chapter.
(d) A person or group of persons seeking to acquire a controlling interest or operational control in an establishment licensee shall promptly provide any additional information requested by the Board and Board staff and cooperate with the Bureau in any investigations related to the petition filed under subsection (c).
(e) A person or group of persons may not acquire a controlling interest or operational control in an establishment licensee until the petition required under subsection (c) has been approved. A person or group of persons seeking to acquire a controlling interest in an establishment licensee and the establishment may enter into an agreement of sale, lease agreement or management agreement that is contingent on Board approval of the petition.
(f) The requirements in this section do not apply to the acquisition of a controlling interest or operational control in an establishment licensee when all of the following conditions are met:
(1) The acquirer of the controlling interest or operational control is a person or group of persons currently licensed as principal qualifier of an existing licensed establishment licensee.
(2) The person or group of persons currently licensed as principal qualifier of an existing licensed establishment licensee has provided the Bureau and the Bureau of Licensing notification and a copy of all documents governing the acquisition, lease agreement or management agreement at least 60 days prior to the acquisition.
(3) After reviewing the documentation, the Bureau and the Bureau of Licensing determine that the filing of a petition is not required.
Chapter 1104. (Reserved) Sec.
1104.1. (Reserved).
CHAPTER 1104a. PRINCIPALS Sec.
1104a.1. Principal licenses. 1104a.2. Conditional procurement agent principal licenses. § 1104a.1. Principal licenses.
(a) A principal as defined in this subpart shall apply for licensure as a principal in accordance with § 433a.8 (relating to principal applications).
(b) In addition to information required under § 433a.8, an individual required to be licensed as a principal, unless otherwise directed by the Board, shall file all of the following:
(1) Verification of status as a principal from a terminal operator licensee, a manufacturer licensee or supplier licensee.
(2) A description of responsibilities as a principal.
(3) Details relating to a similar license, permit or other authorization obtained in another jurisdiction.
(4) The consent to a background investigation by the Bureau of the principal applicant and a release to obtain the information necessary for the completion of the background investigation.
(5) Other information required by the Board.
(c) Following review of the application and background investigation, the Board may issue a principal license if the applicant has proven by clear and convincing evidence that the applicant is a person of good character, honesty and integrity, and is eligible and suitable to be licensed as a principal.
(d) A principal license is not transferable.
(e) A temporary credential, which may be valid up to 270 days, may be issued by the Board to a principal applicant if the Board determines additional time is needed to complete an investigation for licensure.
§ 1104a.2. Conditional procurement agent principal licenses.
(a) Upon accepting a procurement agent's principal application for filing, the Board will issue a conditional procurement agent principal license if requested by the applicant and the applicant has satisfied, as determined by the Board, all of the following:
(1) The applicant has submitted a completed application for a principal license.
(2) The applicant has never had a similar gaming license denied or revoked in another jurisdiction.
(3) The applicant has never been convicted of a felony in any jurisdiction.
(4) The applicant has never been convicted of a gambling law violation in any jurisdiction.
(5) The applicant is current on all State taxes.
(6) The applicant attests by affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure under 4 Pa.C.S. Part III (relating to video gaming).
(b) The Board will issue a conditional procurement agent principal license within 60 days after the completed application has been received by the Board, and the Board has determined that the criteria in subsection (a) have been satisfied.
(c) If the Board determines that the criteria in subsection (a) have not been satisfied, the Board will give the applicant written notice and explanation of that determination.
(d) A conditional license issued under this section will be valid until:
(1) The Board approves or denies the application for a procurement agent's principal license.
(2) The conditional license is terminated for a violation of the act or this part.
(3) One calendar year has passed since the conditional license has been issued.
(e) The Board may extend the duration of a conditional license for 1 year.
(f) A request for conditional licensure must include a $100 fee in addition to the applicable fee required under 4 Pa.C.S. § 4101 (relating to fees).
Chapter 1105. (Reserved) Sec.
1105.1. (Reserved).
CHAPTER 1105a. KEY EMPLOYEES Sec.
1105a.1. Key employee licenses. § 1105a.1. Key employee licenses.
(a) A key employee as defined in this subpart shall apply for licensure as a key employee in accordance with § 435a.2 (relating to key employee license).
(b) In addition to information required under § 435a.2, an individual required to be licensed as a key employee, unless otherwise directed by the Board, shall file all of the following:
(1) Verification of status as a key employee from a terminal operator licensee, an establishment licensee, manufacturer licensee or supplier licensee.
(2) A description of employment responsibilities.
(3) The consent to a background investigation by the Bureau of the applicant, and a release to obtain the information necessary for the completion of the background investigation, including information from governmental agencies, employers and other organizations.
(4) Details relating to a similar license or other authorization obtained in another jurisdiction.
(5) Other information required by the Board.
(c) Following review of the application and background investigation, the Board may issue a key employee license if the applicant has proven by clear and convincing evidence that the applicant is a person of good character, honesty and integrity and is eligible and suitable to be licensed as a key employee.
(d) A key employee license is not transferable.
(e) A temporary credential, which may be valid up to 270 days, may be issued by the Board to a key employee applicant if the Board determines additional time is needed to complete an investigation for licensure.
(f) An individual may not perform duties associated with a position that requires a key employee license prior to receiving a temporary or permanent credential unless otherwise authorized by the Board.
Chapter 1106. (Reserved) Sec.
1106.1. (Reserved).
CHAPTER 1106a. SUPPLIERS Sec.
1106a.1. Supplier licenses. § 1106a.1. Supplier licenses.
(a) Application for licensure. A supplier as defined in this subpart shall apply for licensure in accordance with § 431a.2 (relating to supplier license applications and standards).
(1) A supplier filing an application for licensure under this chapter shall not be required to file a diversity plan as set forth in § 431a.2(a)(3).
(b) Submittals. In addition to the information submitted under § 431a.2, an applicant for a supplier license shall submit all of the following:
(1) The name and business address of the applicant and the applicant's affiliates, intermediaries, subsidiaries and holding companies, the principals and key employees of each business, and a list of employees and their positions within each business, as well as financial information required by the Board.
(2) A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not terminal operator licensees or establishment licensees.
(3) Proof that the applicant has or will establish a place of business in this Commonwealth. A supplier licensee shall maintain a place of business in this Commonwealth to remain eligible for licensure.
(4) The consent to a background investigation by the Bureau of the applicant, its principals and key employees or other persons required by the Board and a release to obtain the information necessary for the completion of the background investigation.
(5) The details of any supplier license issued by the Board to the applicant under section 1317 of the act (relating to supplier licenses) and details of any application for a supplier license that was denied by the board, if applicable.
(6) The details of any equivalent license granted or denied by other jurisdictions where gaming activities similar to those authorized by the act or this part are permitted.
(7) The type of products and services to be supplied and whether those products and services will be provided through purchase, lease, contract or otherwise.
(8) Other information determined by the Board to be appropriate.
(c) Approval and issuance of license. Upon being satisfied that the requirements in subsections (a) and (b) have been met, the Board may approve the application and issue the applicant a supplier license consistent with all of the following:
(1) A licensee shall have an affirmative duty to notify the Board of a change relating to the status of its license or to information in the application materials on file with the Board.
(2) The license is nontransferable.
(3) Other conditions established by the Board.
(d) Considerations. In determining whether an applicant is suitable to be licensed as a supplier under this section, the Board will consider all of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the applicant.
(2) If all principals and key employees of the applicant are eligible and suitable for licensure.
(3) The integrity of financial backers.
(4) The suitability of the applicant and principals and key employees of the applicant based on the satisfactory results of:
(i) A background investigation of the applicant and its principals and key employees.
(ii) A current tax clearance review performed by the Department.
(iii) A current Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review performed by the Department of Labor and Industry.
(e) Submittal of agreements. A supplier shall submit to the Bureau of Licensing for review any agreements with a licensed manufacturer or with a terminal operator licensee. The review may include financing arrangements, inventory requirements, warehouse requirements, warehouse space, technical competency, compensative agreements and other terms or conditions to ensure the financial independence of the supplier licensee from any licensed manufacturer or terminal operator.
(f) Occupation permit or nongaming registration. An employee of a supplier licensee who is a gaming employee or nongaming employee as defined in § 1101a.2 (relating to definitions) shall obtain an occupation permit under § 1109a.1 (relating to gaming employee occupation permits) or a nongaming registration under § 1109a.2 (relating to nongaming employee registrations).
(g) Change of control of a supplier licensee.
(1) For purposes of this subsection, a change of control of a supplier licensee will be deemed to have occurred when a person or group of persons acquires:
(i) More than 20% of a supplier licensee's securities, assets or other ownership interests.
(ii) More than 20% of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the supplier licensee.
(iii) Any other interest in a supplier licensee which allows the acquirer to control the supplier licensee.
(2) A supplier licensee shall notify the Bureau and the Bureau of Licensing in a manner prescribed by the Bureau of Licensing immediately upon becoming aware of any proposed or contemplated change of control of the supplier licensee.
(3) Prior to acquiring a controlling interest in a supplier licensee, the acquirer shall file a petition in accordance with § 493a.4 (relating to petitions generally) requesting Board approval of the acquisition. The petition must include all of the following:
(i) A copy of all documents governing the acquisition.
(ii) Completed applications for the acquiring company, as required under this chapter, principals as required under § 1104a.1 (relating to principal licenses) and key employees as required under § 1105a.1 (relating to key employee licenses).
(iii) An affirmation that neither the acquirer nor any of its affiliates, intermediaries, subsidiaries or holding companies is a terminal operator licensee or establishment licensee.
(4) A person or group of persons seeking to acquire a controlling interest in a supplier licensee shall promptly provide any additional information requested by the Board and Board staff and cooperate with the Bureau in any investigations related to the petition filed under this subsection.
(5) A person or group of persons may not acquire a controlling interest in a supplier licensee until the petition required under this subsection, has been approved. A person or group of persons seeking to acquire a controlling interest in a supplier licensee and the supplier licensee may enter into a sales agreement that is contingent on Board approval of the petition.
(6) The requirements in this section do not apply to the acquisition of a controlling interest in a supplier licensee when all of the following conditions are met:
(i) The acquirer is an existing licensed supplier licensee.
(ii) The existing licensed supplier licensee has provided the Bureau and the Bureau of Licensing notification and a copy of all documents governing the acquisition at least 60 days prior to the acquisition.
(iii) After reviewing the documentation, the Bureau and the Bureau of Licensing determine that the filing of a petition is not required.
Chapter 1107. (Reserved) Sec.
1107.1. (Reserved).
CHAPTER 1107a. MANUFACTURERS Sec.
1107a.1. Manufacturer licenses. § 1107a.1. Manufacturer licenses.
(a) Application for licensure. A manufacturer as defined in this subpart who seeks to manufacture video gaming terminals, redemption terminals and associated equipment for use in this Commonwealth shall apply for licensure in accordance with §§ 427a.1 and 427a.2 (relating to manufacturer general requirements; and manufacturer license applications and standards).
(1) A manufacturer filing an application for licensure under this chapter shall not be required to file a diversity plan as set forth in § 427a.2(a)(3).
(b) Submittals. In addition to the information submitted under § 427a.2 an applicant shall include all of the following:
(1) The name and business address of the applicant and the applicant's affiliates, intermediaries, subsidiaries and holding companies, the principals and key employees of each business, and a list of employees and their positions within each business, as well as financial information required by the Board.
(2) A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not terminal operator licensees or establishment licensees.
(3) The consent to a background investigation by the Bureau of the applicant, its principals and key employees or other persons required by the Board and a release to obtain the information necessary for the completion of the background investigation.
(4) The details of any equivalent manufacturer license granted or denied by other jurisdictions where gaming activities similar to those authorized by this part are permitted.
(5) The details of any manufacturer license issued by the Board to the applicant under section 1317.1 of the act (relating to manufacturer licenses) or details of any application for a manufacturer license that was denied by the Board, if applicable.
(6) The type of video gaming terminals, redemption terminals or associated equipment to be manufactured or repaired.
(7) Other information determined by the Board or the Bureau to be appropriate.
(c) Approval and issuance of license. Upon being satisfied that the requirements in subsections (a) and (b) have been met, the Board may approve the application and issue the applicant a manufacturer license consistent with all of the following:
(1) A licensee shall have an affirmative duty to notify the Board of a change relating to the status of its license or to information in the application materials on file with the Board.
(2) The license shall be nontransferable.
(3) Other conditions established by the Board.
(d) Considerations. In determining whether an applicant is suitable to be licensed as a manufacturer under this section, the Board will consider all of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the applicant.
(2) If all principals and key employees of the applicant are eligible and suitable for licensure.
(3) The integrity of financial backers.
(4) The suitability of the applicant and principals and key employees of the applicant based on the satisfactory results of:
(i) A background investigation of principals and key employees.
(ii) A current tax clearance review performed by the Department.
(iii) A current Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review performed by the Department of Labor and Industry.
(e) Submittal of agreements. A manufacturer shall submit to the Bureau of Licensing for review any agreements with a licensed supplier, terminal operator or establishment licensee. The review may include financing arrangements, inventory requirements, warehouse requirements, warehouse space, technical competency, compensative agreements and other terms or conditions to ensure the financial independence of the licensed manufacturer from any licensed supplier, terminal operator or establishment licensee.
(f) Occupation permit or nongaming registration. An employee of a manufacturer licensee who is a gaming employee or nongaming employee as defined in § 1101a.2 (relating to definitions) shall obtain an occupation permit under § 1109a.1 (relating to gaming employee occupation permits) or a nongaming registration under § 1109a.2 (relating to nongaming employee registrations).
(g) Change of control of a manufacturer licensee.
(1) For purposes of this subsection, a change of control of a manufacturer licensee will be deemed to have occurred when a person or group of persons acquires:
(i) More than 20% of a manufacturer licensee's securities, assets or other ownership interests.
(ii) More than 20% of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the manufacturer licensee.
(iii) Any other interest in a manufacturer licensee which allows the acquirer to control the manufacturer licensee.
(2) A manufacturer licensee shall notify the Bureau and the Bureau of Licensing in a manner prescribed by the Bureau of Licensing immediately upon becoming aware of any proposed or contemplated change of control of the manufacturer licensee.
(3) Prior to acquiring a controlling interest in a manufacturer licensee, the acquirer shall file a petition in accordance with § 493a.4 (relating to petitions generally) requesting Board approval of the acquisition. The petition must include all of the following:
(i) A copy of all documents governing the acquisition.
(ii) Completed applications for the acquiring company, as required under this chapter, principals as required under Chapter 433a (relating to principal licenses) and key employees as required under § 435a.2 (relating to key employee license).
(iii) An affirmation that neither the acquirer nor any of its affiliates, intermediaries, subsidiaries or holding companies is a terminal operator licensee or establishment licensee and that the acquirer has neither applied for nor holds a terminal operator license or establishment license.
(4) A person or group of persons seeking to acquire a controlling interest in a manufacturer licensee shall promptly provide any additional information requested by the Board and Board staff and cooperate with the Bureau in any investigations related to the petition filed under subsection (a).
(5) A person or group of persons may not acquire a controlling interest in a manufacturer licensee until the petition required under subsection (g) has been approved. A person or group of persons seeking to acquire a controlling interest in a manufacturer licensee and the manufacturer licensee may enter into an agreement of sale that is contingent on Board approval of the petition.
(6) The requirements in this section do not apply to the acquisition of a controlling interest in a manufacturer licensee when all of the following conditions are met:
(i) The acquirer is an existing licensed manufacturer licensee.
(ii) The existing licensed manufacturer licensee has provided the Bureau and the Bureau of Licensing notification and a copy of all documents governing the acquisition at least 60 days prior to the acquisition.
(iii) After reviewing the documentation, the Bureau and the Bureau of Licensing determine that the filing of a petition is not required.
Chapter 1108. (Reserved) Sec.
1108.1—1108.3. (Reserved).
CHAPTER 1108a. GAMING SERVICE PROVIDERS Sec.
1108a.1. Gaming service providers. 1108a.2. Interim authorization. 1108a.3. Emergency gaming service provider. § 1108a.1. Gaming service providers.
(a) A gaming service provider providing goods or services to a terminal operator licensee that directly relates to the operation and security of a video gaming terminal or redemption terminal shall apply to the Board to be registered as a gaming service provider.
(b) A gaming service provider seeking registration shall complete a Gaming Service Provider Registration Form. The original copy and the fee toward the cost of the investigation of the applicant posted on the Board's web site shall be submitted to the Bureau of Licensing by the terminal operator applicant or licensee for whom the gaming service provider will provide goods or services unless otherwise directed by the Bureau of Licensing.
(c) In addition to the materials required under subsection (b), an applicant for a gaming service provider registration shall do all of the following:
(1) Submit the nonrefundable application fee posted on the Board's web site.
(2) Submit fingerprints of the following individuals in a manner prescribed by the Bureau:
(i) Each officer and director of the registered gaming service provider applicant. For purposes of this paragraph, ''officer'' means a president, a chief executive officer, a chief financial officer and a chief operating officer, and any person routinely performing corresponding functions with respect to an organization whether incorporated or unincorporated.
(ii) Each individual who has a direct or indirect ownership or beneficial interest of 10% or more in the registered gaming service provider applicant.
(iii) Each salesperson of a registered gaming service provider applicant who solicits business from, or has regular contact with, any representatives of a terminal operator applicant or licensee.
(d) A person who holds any direct or indirect ownership or beneficial interest in a registered gaming service provider or applicant for gaming service provider registration, or has the right to any profits or distributions directly or indirectly, from the registered gaming service provider or applicant for gaming service provider registration may be required to submit fingerprints if the Bureau determines that the submission of fingerprints of the person is necessary to protect the public interest or to enhance the integrity of gaming in this Commonwealth.
(e) Each of the individuals required to submit fingerprints under subsection (b)(2) must be found qualified by the Board.
(f) A gaming service provider registration will not be issued until all fees and costs have been paid.
§ 1108a.2. Interim authorization.
(a) Notwithstanding § 1108a.1 (relating to gaming service providers), the Bureau of Licensing may authorize an applicant for a gaming service provider registration to conduct business with a terminal operator applicant or licensee prior to the registration of the gaming service provider applicant if all of the following criteria are met:
(1) A completed Gaming Service Provider Registration application has been filed by the gaming service provider.
(2) The terminal operator applicant or licensee contracting or doing business with the gaming service provider certifies that it has performed due diligence on the gaming service provider and believes that the applicant meets the qualification to be a gaming service provider under 4 Pa.C.S. Part III (relating to video gaming) and § 1108a.1.
(3) The applicant for gaming service provider registration agrees, in writing, that the grant of interim authorization to conduct business prior to Board approval of registration does not create a right to continue to conduct business if the Board determines that the applicant is not suitable or continued authorization is not in the public interest.
(b) If the Office of Enforcement Counsel issues a Notice of Recommendation for Denial to an applicant for registration, the Bureau of Licensing may rescind the permission granted to the applicant to conduct business with a terminal operator applicant or licensee under subsection (a). If the permission is rescinded, the applicant for registration shall cease conducting business with the terminal operator applicant or licensee by the date specified in the notice of the rescission by the Bureau of Licensing under subsection (c).
(c) The Bureau of Licensing will notify the applicant and the terminal operator applicant or licensee by registered and electronic mail that permission to conduct business with the terminal operator applicant or licensee under subsection (a) has been rescinded and that the terminal operator applicant or licensee shall cease conducting business with the applicant by the date specified in the notice.
§ 1108a.3. Emergency gaming service provider.
(a) A terminal operator licensee may utilize a gaming service provider that is not registered when a threat to public health, welfare or safety exists, or circumstances outside the control of the terminal operator licensee require immediate action to mitigate damage or loss to the licensee's video gaming terminals.
(b) When using a gaming service provider that is not registered to conduct business to respond to an emergency, the terminal operator licensee shall do all of the following:
(1) Immediately notify the Board's Bureau of Casino Compliance and Bureau of Licensing of the emergency and the gaming service provider that was selected to provide emergency services.
(2) File a Gaming Service Provider Emergency Notification Form with the Bureau of Licensing within 72 hours after commencement of the gaming service provider's services and a written explanation of the basis for the procurement of the emergency gaming service provider.
(c) If the terminal operator licensee continues to utilize the gaming service provider after the emergency circumstances have passed or if the Bureau of Licensing determines that the circumstances did not necessitate the use of an emergency gaming service provider, the gaming service provider shall comply with the requirements in this chapter.
Chapter 1109. (Reserved) Sec.
1109.1. (Reserved). 1109.2. (Reserved).
CHAPTER 1109a. OCCUPATION PERMITS Sec.
1109a.1. Gaming employee occupation permits. 1109a.2. Nongaming employee registrations. § 1109a.1. Gaming employee occupation permits.
(a) A gaming employee as defined in this subpart shall apply for an occupation permit in accordance with § 435a.3 (relating to occupation permit).
(b) In addition to the requirements in subsection (a), a gaming employee applying for an occupation permit shall submit all of the following:
(1) Verification of an offer of employment from, or employment by a terminal operator licensee, an establishment licensee, a manufacturer licensee, a supplier licensee or a gaming service provider and the nature and scope of the proposed duties of the person.
(2) The previous employment history of the person.
(3) The details of an occupation permit or similar license granted or denied to the applicant in other jurisdictions.
(4) A current photograph of the person.
(5) The criminal history record of the person, as well as the person's consent for the Bureau to conduct a background investigation.
(6) Other information as determined by the Board.
(c) After reviewing the application and the results of the applicant's background investigation, the Board may issue a gaming employee occupation permit if the individual has proven that he is a person of good character, honesty and integrity, and is eligible and suitable to hold an occupation permit.
§ 1109a.2. Nongaming employee registrations.
A person who is employed by an terminal operator licensee, establishment licensee, manufacturer, supplier or gaming service provider and whose duties do not involve monitoring a video gaming area or the conduct of video gaming may be required to apply for a nongaming employee registration in accordance with § 435a.5 (relating to nongaming employee registration) if the Board or the Bureau of Licensing determines that submitting an application and obtaining a registration is required to ensure the integrity of video gaming in this Commonwealth.
Chapter 1110. (Reserved) Sec.
1110.1—1110.4. (Reserved).
CHAPTER 1110a. APPLICATIONS GENERALLY Sec.
1110a.1. Preliminary application submission review. 1110a.2. Application processing. 1110a.3. Deficient and abandoned applications. 1110a.4. Application withdrawal. § 1110a.1. Preliminary application submission review.
(a) Upon receipt, an application will be reviewed to ensure that it contains all of the following:
(1) The applicable application forms and additional information and accompanying documentation required by 4 Pa.C.S. Part III (relating to video gaming) or the Board.
(2) Completed authorization forms, if required, for release of information from governmental agencies and other entities.
(b) If an applicant fails to include any required information, the applicant will be notified and given an opportunity to cure the deficiency.
§ 1110a.2. Application processing.
(a) Upon a determination that the prerequisites for filing have been met, the application will be accepted for filing and Board staff, if applicable, will:
(1) Obtain information as may be necessary to determine the qualifications of the applicant and any matter relating to the application.
(2) Promptly conduct an investigation of the applicant and on any matter relating to the application.
(3) Request the Department to promptly conduct a tax clearance review.
(4) Request the Department of Labor and Industry to perform an Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review on any entity.
(5) Request any agencies, entities or persons to provide information to the Board as deemed necessary by the Board.
(b) An application submitted under this part and information obtained by Board staff relating to the application will be part of the evidentiary record to be utilized by the Board when deciding to approve, condition, issue or deny a license.
(c) An application and related materials that have been submitted to the Board will become the property of the Board and will not be returned to the applicant.
§ 1110a.3. Deficient and abandoned applications.
(a) If an application is found to be deficient, Board staff will notify the applicant of the deficiencies in the application and provide an opportunity for the applicant to cure the deficiencies within a specified time period.
(b) Failure to provide the information necessary to cure the deficiencies required under subsection (a) may result in the denial of the application or in the application being declared abandoned by the Bureau of Licensing under § 423a.4 (relating to deficient and abandoned applications).
(c) When an application is denied or declared abandoned under subsection (b), the applicant will be given written notice of this action.
§ 1110a.4. Application withdrawal.
A request for withdrawal of an application may be made at any time prior to the Board taking action by petition filed with the Office of Hearings and Appeals.
Chapter 1111. (Reserved) Sec.
1111.1. (Reserved).
CHAPTER 1111a. LICENSE TERMS AND RENEWALS Sec.
1111a.1. Terms and renewals. § 1111a.1. Terms and renewals.
(a) All licenses, permits and registrations issued under this part will be for a term of 5 years from the date of approval.
(b) An application for renewal of an establishment license shall be submitted at least 6 months prior to the expiration of the license and must include an update of all information in the initial application and any prior renewal applications and any renewal fee.
(c) Except for renewal applications submitted under subsection (b), applications for renewal shall be submitted to the Board at least 180 days prior to the expiration of the license, permit or registration and must include an update of all information in the initial application and any prior renewal applications and the payment of any renewal fee.
(d) A license, permit or registration for which an application for renewal has been timely filed will continue in effect until the Board acts upon the application for renewal.
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