RULES AND REGULATIONS
Title 58—RECREATION
PENNSYLVANIA GAMING CONTROL BOARD
[ 58 PA. CODE CHS. 801a—817a AND 830a ]
Interactive Gaming
[51 Pa.B. 5389]
[Saturday, August 28, 2021]The Pennsylvania Gaming Control Board (Board), under the general authority in 4 Pa.C.S. § 1202(b)(30) (relating to general and specific powers) and the specific authority in 4 Pa.C.S. § 13B02 (relating to regulatory authority), adds Chapters 801a—817a and 830a regarding interactive gaming to read as set forth in Annex A.
Purpose of the Final-Form Rulemaking
This final-form rulemaking establishes the regulatory oversight structure for the conduct of interactive gaming in this Commonwealth.
Explanation
Subpart L (relating to interactive gaming) establishes the regulations necessary for the Board to issue interactive gaming certificates slot machine licensees and qualified gaming entities who wish to offer interactive gaming, as well as the licensing of the principals and key employees of the certificate holders and other entities involved. In addition, Subpart O (relating to fantasy contests) provides rules for player accounts, licensed operator duties and restrictions, and accounting and internal controls governing the conduct of interactive gaming. Finally, Subpart L addresses advertising, compulsive and problem gambling, and self-exclusion of players from interactive gaming in this Commonwealth.
Subpart L establishes a broad regulatory oversight structure for interactive gaming. Section 801a.2 (relating to definitions) provides definitions of terms used throughout Subpart L for the conduct of interactive gaming.
Chapters 802a—808a of this final-form rulemaking establish the categories of certificates and licenses based upon the statutory criteria for the issuance of interactive gaming certificates and licensure in 4 Pa.C.S. Chapter 13B (relating to interactive gaming). Slot machine licensees, and out-of-State entities who are deemed to be qualified gaming entities, may apply for issuance of interactive gaming certificates to offer one or more of the three forms of interactive gaming (peer-to-peer, non-peer-to-peer slots and non-peer-to-peer table games). The categories of entities subject to licensure include interactive gaming operators, interactive gaming manufacturers, interactive gaming suppliers, interactive gaming service providers, and the principals and key employees of these entities.
Chapter 809a (relating to interactive gaming platform requirements) establishes the technical requirements for the interactive gaming platform provided by interactive gaming certificate holders or interactive gaming operators. Chapter 810a (relating to interactive gaming testing and controls) establishes the procedures for the testing and control aspects of the interactive gaming platform.
Chapter 811a (relating to interactive gaming accounting and internal controls) establishes the requirements and procedures for the revenue accounting and reporting of interactive gaming as well as other reporting requirements. Chapter 812a (relating to interactive gaming player accounts) sets forth the requirements for an individual's interactive gaming player account, including the procedures for the creation of an account, funding of player accounts and withdrawal of funds and setting responsible gaming limits.
Chapter 813a (relating to interactive gaming advertisements, promotions and tournaments) establishes the standards for interactive gaming advertising and promotions, including the requirements for the co-branding of ads to disclose the interactive gaming certificate holder. Chapter 814a (relating to compulsive and problem gambling requirements) and Chapter 815a (relating to interactive gaming self-excluded persons) address the options available for players to set responsible gaming limits or to self-exclude from interactive gaming.
Chapter 816a (relating to interactive gaming live studio) provides the framework for live studio simulcasting of casino table games in interactive gaming. Chapter 817a (relating to interactive gaming commencement of operations) establishes the requirements for an entity to begin offering interactive gaming. Chapter 830a (relating to multiuse computing device gaming provisions) provides the regulatory framework for interactive gaming in eligible airports in this Commonwealth.
In the Board's temporary regulations and the proposed rulemaking, an entity that possessed interactive gaming certificates was termed a ''certificateholder.'' For consistency with 4 Pa.C.S. Chapter 11 (relating to Pennsylvania Race Horse Development and Gaming Act) and the Board's existing body of regulations, this term has been replaced throughout Annex A of this final-form rulemaking to ''certificate holder.'' The original term has not been bolded with strikethrough text, and the new term is not bolded and capitalized.
Other minor administrative changes are made in this final-form rulemaking, based upon how the interactive gaming industry operated under the temporary regulations and inquiries received from the industry regarding certain provisions of the temporary regulations and the proposed rulemaking. None of these amendments in this final-form rulemaking create an increased cost or regulatory burden on the regulated community, and all of the amendments are necessary for the efficient and effective oversight of interactive gaming operations in this Commonwealth.
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:
1. Protection of the public health, safety and welfare; implementation procedures.
The Board acted with all possible due diligence in getting the final-form regulations promulgated to regulate the interactive gaming industry. After the passage of the act of October 30, 2017 (P.L. 419, No. 42), the Board was tasked with promulgating regulations for five separate forms of expanded gaming in rapid succession. In December 2020, Governor Tom Wolf signed the act of November 23, 2020 (P.L. 1140, No. 114), making amendments to the Fiscal Code of the Commonwealth that 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 interactive gaming, originally adopted in five different packages, expired or do not expire until varying dates between January 6, 2021, and March 9, 2022. To date, the Board has not had any issues involved in the regulatory oversight of interactive gaming.
2. Compliance with the Regulatory Review Agenda and regulations of IRRC.
All matters addressed in this comment have been remedied in the final-form Regulatory Analysis Form.
3. § 811a.2. Internal controls—clarity and lack of ambiguity.
The definition of ''personal identifiable information'' has been moved to § 801a.2 to provide clarity on the use of the term in the regulations.
4. § 812a.13. Dormant accounts—nonregulatory language.
This section has been updated to reflect the recommended change. Additionally, this section has been re-ordered, moving what was subsection (b) ahead of what was subsection (a), to make more logical sense in describing how an account becomes dormant.
5. Chapter 815a. Interactive gaming self-excluded persons—protection of the public health, safety and welfare; clarity and lack of ambiguity.
This chapter has been updated to mirror, when appropriate, the provisions included in final-form rulemaking # 125-225.
Fiscal Impact
Commonwealth. The Board expects that this final-form rulemaking will have a relatively small fiscal impact on the Board and other Commonwealth agencies, which primarily is the result of the need for some additional personnel to process and review applications, as well as to monitor and regulate the conduct of interactive gaming. Most of the additional duties will be absorbed by existing Board staff. The costs of the final-form regulations will be paid for by an assessment against the licensed interactive gaming certificate holder's interactive gaming revenue as determined by the Department of Revenue.
Political subdivisions. This final-form rulemaking will not have fiscal impact on political subdivisions of this Commonwealth.
Private sector. This final-form rulemaking will not have a fiscal impact on the private sector other than for those who elect to participate in interactive gaming. If pursued by an entity, there will be licensing costs as set forth by 4 Pa.C.S. Chapter 13B to offer interactive gaming as a certificate holder or operator, or to be licensed as a manufacturer, supplier or gaming service provider.
General public. This final-form rulemaking will not have fiscal impact on the general public.
Paperwork Requirements
A slot machine licensee who wishes to offer interactive gaming must file a Petition for Issuance of Interactive Gaming Certificates, as well as any necessary licensure applications for principals, key employees, gaming and nongaming employees.
An interactive gaming operator, interactive gaming manufacturer, interactive gaming supplier, interactive gaming service provider and principals, key employees and gaming and nongaming employees thereof involved in the provision of interactive gaming in this Commonwealth will be required to file applications with the Board providing information regarding the person's proposed activity, as well as accounting and internal control protocols and background information of each individual sufficient to permit the Board to determine the individual's suitability for licensure.
Individuals who wish to join the interactive gaming self-exclusion list, may do so online on the Board's web site by filling out a web-based form. The Board's web site address is https://responsibleplay.pa.gov/self-exclusion/.
A game offered in a live studio environment in accordance with these regulations must have a rules submission form filed. The rules submission forms may be found on the Board's web site.
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)), the Board submitted a copy of the proposed rulemaking, published at 50 Pa.B. 4248 (August 22, 2020) and a copy of the Regulatory Analysis Form to IRRC and to the Chairpersons of the House Gaming Oversight Committee and the Senate Community, Economic and Recreational Development Committee.
Under section 5(c) of the Regulatory Review Act, IRRC and the Committees are provided with copies of comments received during the public comment period, as well as other documents when requested. With regard to this final-form rulemaking, no comments were received from the Committees.
Under section 5.1(j.2) of the Regulatory Review Act, on May 19, 2021, the final-form rulemaking was deemed approved by the Committees. IRRC met on May 20, 2021, and approved the regulations in accordance with section 5.1(e) of the Regulatory Review Act.
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 promulgated 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 Chapters 801—815, 817, 818, 830 and 801a—815a, 817a, 830a, are amended by adding §§ 801a.1—801a.4, 802a.1—802a.3, 803a.1—803a.4, 804a.1—804a.4, 805a.1—805a.6, 806a.1—806a.6, 807a.1—807a.9, 808a.1—808a.8, 809a.1—809a.8, 810a.1—810a.12, 811a.1—811a.9, 812a.1—812a.14, 813a.1—813a.5, 814a.1—814a.6, 815a.1—815a.8, 817a.1—817a.3 and 830a.1—830a.11, and deleting §§ 801.1—801.4, 802.1—802.3, 803.1—803.3, 804.1—804.4, 805.1—805.7, 806.1—806.7, 807.1—807.9, 808.1—808.8, 809.1—809.8, 810.1—810.13, 811.1—811.9, 812.1—812.14, 813.1—813.5, 814.1—814.6, 815.1—815.8, 817.1, 818.1—818.3 and 830.1—830.11 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. 3210 (June 5, 2021) for IRRC's approval order.)
Fiscal Note: Fiscal Note 125-229 remains valid for the final adoption of the subject regulations.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart L. INTERACTIVE GAMING (Editor's Note: The term ''certificateholder,'' found in the proposed rulemaking, has been changed throughout the text of the final-form rulemaking to ''certificate holder'' for consistency.)
CHAPTER 801. (Reserved) Sec.
801.1—801.4. (Reserved).
CHAPTER 802. (Reserved) Sec.
802.1—802.3. (Reserved).
CHAPTER 803. (Reserved) Sec.
803.1—803.3. (Reserved).
CHAPTER 804. (Reserved) Sec.
804.1—804.4. (Reserved).
CHAPTER 805. (Reserved) Sec.
805.1—805.7. (Reserved).
CHAPTER 806. (Reserved) Sec.
806.1—806.7. (Reserved).
CHAPTER 807. (Reserved) Sec.
807.1—807.9. (Reserved).
CHAPTER 808. (Reserved) Sec.
808.1—808.8. (Reserved).
CHAPTER 809. (Reserved) Sec.
809.1—809.8. (Reserved).
CHAPTER 810. (Reserved) Sec.
810.1—810.13. (Reserved).
CHAPTER 811. (Reserved) Sec.
811.1—811.9. (Reserved).
CHAPTER 812. (Reserved) Sec.
812.1—812.14. (Reserved).
CHAPTER 813. (Reserved) Sec.
813.1—813.5. (Reserved).
CHAPTER 814. (Reserved) Sec.
814.1—814.6. (Reserved).
CHAPTER 815. (Reserved) Sec.
815.1—815.8. (Reserved).
CHAPTER 817. (Reserved) Sec.
817.1. (Reserved).
CHAPTER 818. (Reserved) Sec.
818.1—818.3. (Reserved).
CHAPTER 830. (Reserved) Sec.
830.1—830.11. (Reserved).
CHAPTER 801a. GENERAL INTERACTIVE GAMING PROVISIONS Sec.
801a.1. Scope. 801a.2. Definitions. 801a.3. Certificate or license required. 801a.4. Initial and renewal certificate and license fees. § 801a.1. Scope.
The purpose of this subpart is to govern the operation of interactive gaming. The act and the Board's regulations promulgated thereunder otherwise apply when not in conflict with this subpart.
§ 801a.2. Definitions.
The following words and terms, when used in this subpart, have the following meanings, unless the context clearly indicates otherwise:
Airport authority—Any of the following:
(i) The governing body of a municipal authority organized and incorporated to oversee the operations of a qualified airport under 53 Pa.C.S. §§ 5601—5623 (relating to Municipality Authorities Act).
(ii) A city of the first class that regulates the use and control of a qualified airport located partially in a county of the first class and partially in a county contiguous to a county of the first class.
Airport gaming area—A location within a qualified airport area approved by the airport authority and the Board for the conduct of interactive gaming through the use of multiuse computing devices by eligible passengers.
Associated equipment—Any equipment or mechanical, electromechanical or electronic contrivance, component or machine used in connection with interactive gaming, including equipment which affects the proper reporting and counting of gross interactive gaming revenue, computerized systems for controlling and monitoring interactive games, including interactive gaming devices necessary for the operation of interactive games as approved by the Board.
Authorized interactive game—An interactive game approved by regulation of the Board to be suitable for interactive gaming offered by an interactive gaming certificate holder or an interactive gaming operator on behalf of an interactive gaming certificate holder in accordance with sections 13B01—13B63 of the act (relating to interactive gaming). The term includes an interactive game approved by regulation of the Board to be suitable for interactive gaming through use of a multiuse computing device.
Bureau—The Bureau of Investigations and Enforcement of the Board.
Cash equivalent—An asset that is readily convertible to cash, including any of the following:
(i) Chips or tokens.
(ii) Travelers checks.
(iii) Foreign currency and coin.
(iv) Certified checks, cashier's checks and money orders.
(v) Personal checks or drafts.
(vi) A negotiable instrument applied against credit extended by a certificate holder, an interactive gaming certificate holder, an interactive gaming operator or a financial institution.
(vii) A prepaid access instrument.
(viii) Any other instrument or representation of value that the Board deems a cash equivalent.
Cheat—
(i) To defraud or steal from any player, interactive gaming certificate holder, interactive gaming operator or the Commonwealth while operating or playing an authorized interactive game, 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 which determine:
(A) The result of an authorized interactive game.
(B) The amount or frequency of payment in an authorized interactive game.
(C) The value of a wagering instrument.
(D) The value of a wagering credit.
(iii) The term does not include altering an interactive gaming device or associated equipment for maintenance or repair with the approval of an interactive gaming certificate holder or interactive gaming operator.
Cheating device—A device, software or hardware used or possessed with the intent to be used to cheat during the operation or play of any authorized interactive game. The term also includes any device used to alter an authorized interactive game or interactive gaming device or associated equipment without the interactive gaming certificate holder's or interactive gaming operator's approval.
Communication technology—Any method used and the components employed to facilitate the transmission and receipt of information, including transmission and reception by systems using wire, wireless, cable, radio, microwave, light, fiber optics, satellite or computer data networks, including the Internet and intranets.
Concession operator—A person engaged in the sale or offering for sale of consumer goods or services to the public at a qualified airport, or authorized to conduct other commercial activities related to passenger services at a qualified airport, in accordance with the terms and conditions of an agreement or contract with an airport authority, government entity or other person.
Conduct of gaming—The licensed placement, operation and play of interactive games under this subpart, as authorized and approved by the Board. The term includes the licensed placement, operation and play of authorized interactive games through the use of multiuse computing devices at a qualified airport under sections 13B20—13B20.7 of the act (relating to multi-use computing devices).
Contest—An authorized interactive game competition among players for cash, cash equivalents or prizes.
Eligible passenger—An individual 21 years of age or older who has cleared security check points with a valid airline boarding pass for travel from one destination to another.
Gaming employee—An employee of any of the following who the Board determines, after a review of the work to be performed, requires a gaming employee permit for the protection of the integrity of interactive gaming operations in this Commonwealth:
(i) An interactive gaming certificate holder or interactive gaming operator.
(ii) An interactive gaming manufacturer licensee or interactive gaming supplier licensee.
(iii) An interactive gaming service provider.
(iv) Any other person as determined by the Board.
Gaming-related restricted area—A room or area of a licensed facility which is specifically designated by the Board as restricted or by the interactive gaming certificate holder or interactive gaming operator as restricted in its Board-approved internal controls.
Gaming school—An educational institution approved by the Department of Education as an accredited college or university, community college, Pennsylvania private licensed school or its equivalent and whose curriculum guidelines are approved by the Department of Labor and Industry to provide education and job training related to employment opportunities associated with interactive games, including interactive gaming devices and associated equipment maintenance and repair.
Gross interactive airport gaming revenue—
(i) Revenue is the total of all cash or cash equivalent wagers paid by an eligible passenger to an interactive gaming certificate holder at a qualified airport through the use of multiuse computing devices in consideration for the play of authorized interactive games at a qualified airport through the use of multiuse computing devices, including cash received as entry fees for contests or tournaments, minus:
(A) The total of cash or cash equivalents paid out to an eligible passenger as winnings.
(B) The actual cost paid by the interactive gaming certificate holder at a qualified airport through the use of multiuse computing devices for personal property distributed to a player as a result of playing an authorized interactive game. This clause does not include travel expenses, food, refreshments, lodging or services.
(ii) Amounts deposited with an interactive gaming certificate holder for purposes of interactive gaming at a qualified airport through the use of multiuse computing devices and amounts taken in fraudulent acts perpetrated against an interactive gaming certificate holder for which the interactive gaming certificate holder is not reimbursed and shall not be considered to have been paid to the interactive gaming certificate holder for purposes of calculating gross interactive airport gaming revenue.
Gross interactive gaming revenue—
(i) The total of all cash or cash equivalent wagers paid by registered players to an interactive gaming certificate holder in consideration for the play of authorized interactive games, including cash received as entry fees for contests or tournaments, minus:
(A) The total of cash or cash equivalents paid out to registered players as winnings.
(B) The actual cost paid by the interactive gaming certificate holder for any personal property distributed to a player as a result of playing an authorized interactive game. This clause does not include travel expenses, food, refreshments, lodging or services.
(ii) Amounts deposited with an interactive gaming certificate holder for purposes of interactive gaming and amounts taken in fraudulent acts perpetrated against an interactive gaming certificate holder for which the interactive gaming certificate holder is not reimbursed shall not be considered to have been paid to the interactive gaming certificate holder for purposes of calculating gross interactive gaming revenue.
Interactive game—
(i) A gambling game offered through the use of communications technology that allows a person utilizing money, checks, electronic checks, electronic transfers of money, credit cards or any other instrumentality to transmit electronic information to assist in the placement of a bet or wager and corresponding information related to the display of the game, game outcomes or other similar information.
(ii) The term does not include any of the following:
(A) A lottery game or Internet instant game as defined in the State Lottery Law (72 P.S. §§ 3761-101— 3761-2103).
(B) iLottery under 4 Pa.C.S. §§ 501—505 (relating to lottery).
(C) A nongambling game that does not otherwise require a license under the laws of the Commonwealth.
(D) A fantasy contest under 4 Pa.C.S. §§ 301—342 (relating to fantasy contests).
Interactive gaming—The placing of wagers with an interactive gaming certificate holder or interactive gaming operator using a computer network of Federal and non-Federal interoperable packet switched data networks through which an interactive gaming certificate holder may offer authorized interactive games to registered players. The term includes the placing of wagers through the use of a multiuse computing device.
Interactive gaming account—The formal electronic system implemented by an interactive gaming certificate holder to record the balance of a registered player's debits, credits and other financial activity related to interactive gaming.
Interactive gaming account agreement—An agreement entered into between an interactive gaming certificate holder and a registered player which governs the terms and conditions of the registered player's interactive gaming account and the use of the Internet for purposes of placing wagers on authorized interactive games operated by an interactive gaming certificate holder or interactive gaming operator.
Interactive gaming agreement—An agreement entered into by or between an interactive gaming certificate holder and an interactive gaming operator related to the offering or operation of interactive gaming or an interactive gaming system by the interactive gaming operator on behalf of the interactive gaming certificate holder. The term includes an interactive gaming agreement entered into between an interactive gaming certificate holder and an interactive gaming operator for the conduct of interactive gaming through the use of multiuse computing devices at a qualified airport in accordance with sections 13B01—13B63 of the act.
Interactive gaming certificate—The authorization issued to a slot machine licensee by the Board authorizing the operation and conduct of interactive gaming by a slot machine licensee in accordance with sections 13B01—13B63 of the act.
Interactive gaming certificate holder—A slot machine licensee that has been granted authorization by the Board to operate interactive gaming in accordance with sections 13B01—13B63 of the act.
Interactive gaming device—The hardware, software and other technology, equipment or device of any kind as determined by the Board to be necessary for the conduct of authorized interactive games.
Interactive gaming license—A license issued to an interactive gaming operator by the Board under sections 13B01—13B63 of the act.
Interactive gaming manufacturer—
(i) A person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to authorized interactive games for use or play of authorized interactive games in this Commonwealth for gaming purposes.
(ii) The term includes operators of live gaming studios.
(iii) The term does not include a person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to multiuse computing devices used in connection with the conduct of interactive gaming at a qualified airport.
Interactive gaming manufacturer license—A license issued by the Board authorizing a manufacturer to manufacture or produce interactive gaming devices or associated equipment for use in this Commonwealth for gaming purposes. The term includes the operators of live gaming studios.
Interactive gaming network—A linked system that permits registered players of multiple interactive gaming certificate holders or interactive gaming operators to participate in peer-to-peer interactive gaming.
Interactive gaming operator—A person licensed by the Board to operate interactive gaming or an interactive gaming system, through the provision of an interactive gaming platform, on behalf of an interactive gaming certificate holder. The term includes a person that has received conditional authorization under section 13B14 of the act (relating to interactive gaming operators) for as long as the authorization is effective.
Interactive gaming platform—The combination of hardware and software or other technology designed and used to manage, conduct and record interactive games and the wagers associated with interactive games, as approved by the Board. The term includes emerging or new technology deployed to advance the conduct and operation of interactive gaming, as approved through regulation by the Board.
Interactive gaming reciprocal agreement—An agreement negotiated by the Board and approved by the Governor on behalf of the Commonwealth with the regulatory agency of one or more states or jurisdictions where interactive gaming is legally authorized which will permit the conduct of interactive gaming between interactive gaming certificate holders in this Commonwealth and gaming entities in the states or jurisdictions that are parties to the agreement.
Interactive gaming restricted area—A room or area, as approved by the Board, used by an interactive gaming certificate holder or interactive gaming operator to manage, control and operate interactive gaming, including, when approved by the Board, redundancy facilities and remote gaming server locations.
Interactive gaming service provider—A person that is not required to be licensed as a manufacturer, supplier, or management company under this part who:
(i) Provides goods or services to an interactive gaming certificate holder or interactive gaming operator for the operation of interactive gaming.
(ii) Is determined to be an interactive gaming service provider by the Board in accordance with the provisions of Chapter 807a (relating to interactive gaming service providers).
Interactive gaming skin or skins—The portal or portals to an interactive gaming platform or interactive gaming web site through which authorized interactive games are made available by an interactive gaming certificate holder or interactive gaming operator to registered players in this Commonwealth or registered players in any other state or jurisdiction which has entered into an interactive gaming reciprocal agreement.
Interactive gaming supplier—
(i) A person who sells, leases, offers or otherwise provides, distributes or services an interactive gaming device or associated equipment for use or play of interactive games in this Commonwealth.
(ii) The term includes a person that sells, leases, offers or otherwise provides, distributes or services multiuse computing devices approved by the Board.
(iii) The term does not include the seller of a device that does not contain or operate interactive gaming software or systems or that has not been configured as a multiuse computing device at the time it is sold.
Interactive gaming supplier license—A license issued by the Board authorizing a supplier to provide products or services related to interactive gaming devices, including multiuse computing device or associated equipment, to interactive gaming certificate holders or interactive gaming operators for use in this Commonwealth for gaming purposes.
Interactive gaming system—The hardware, software and communications that comprise a type of server-based gaming system for the purpose of offering authorized interactive games.
Interactive gaming web site—The interactive gaming skin or skins through which an interactive gaming certificate holder or interactive gaming operator makes authorized interactive games available for play.
International airport—An airport that offers direct commercial flights for eligible passengers which arrive from, or depart to, an airport not located within the United States of America.
Key employee—All of the following:
(i) An individual who is employed in a director or department head capacity and who is empowered to make discretionary decisions that regulate interactive gaming operations, including the Director of Information Technology (IT), IT Security Officer, Interactive Gaming Manager or other similar job classifications associated with interactive gaming.
(ii) Persons who manage, control or administer interactive gaming or the bets and wagers associated with authorized interactive games.
(iii) An employee who is not otherwise designated as a gaming employee and who supervises the operations of the interactive gaming department or to whom the interactive gaming department directors or interactive gaming department heads report and other positions not otherwise designated or defined under this subpart which the Board will determine based on detailed analyses of job descriptions as provided in the internal controls of the licensee as approved by the Board.
(iv) Any other employees as determined by the Board.
Licensed facility—
(i) The physical land-based location at which a licensed gaming entity is authorized to place and operate slot machines and, if authorized by the Board under sections 13A01—13A63 of the act (relating to table games), to conduct table games and, if authorized under sections 13B01—13B63 of the act, to conduct interactive gaming.
(ii) The term includes any of the following:
(A) An area of a licensed racetrack at which a slot machine licensee was previously authorized under section 1207(17) of the act (relating to regulatory authority of board) to operate slot machines prior to the effective date of the act, as amended.
(B) A Board-approved interim facility or temporary facility.
(C) An area of a hotel which the Board determines is suitable to conduct table games.
(D) An area of a licensed facility where casino simulcasting is conducted, as approved by the Board.
(iii) The term does not include a redundancy facility or an interactive gaming restricted area which is not located on the premises of a licensed facility as approved by the Board and which is maintained and operated by an interactive gaming certificate holder or interactive gaming operator in connection with interactive gaming or casino simulcasting.
Live gaming studio—A physical location that utilizes live video streaming technology to provide live casino games to a player's interactive gaming device or multiuse computing device that permits the player to participate in live streamed casino games, interact with gaming studio dealers and interact with fellow players.
Multiuse computing device—
(i) A computing device, including a tablet computer, that:
(A) Is located and accessible to eligible passengers only in an airport gaming area.
(B) Allows an eligible passenger to play an authorized interactive game.
(C) Communicates with a server that is in a location approved by the Board.
(D) Is approved by the Board.
(E) Has the capability of being linked to and monitored by the Department's central control computer system, as applicable for any particular interactive game, in accordance with section 1323 of the act (relating to central control computer system).
(F) Offers a player additional functions which includes Internet browsing, the capability of checking flight status, and ordering food or beverages.
(ii) The term shall not include any tablet or computing device that restricts, prohibits or is incapable of providing access to interactive gaming, interactive gaming skin or skins or interactive gaming platforms.
Multistate agreement—The written agreement, approved by the Governor, between the Board and regulatory agencies in other states or jurisdictions for the operation of an interactive multistate wide-area progressive system.
Multistate wide-area progressive system—The linking of interactive games offered by interactive gaming certificate holders or interactive gaming operators in this Commonwealth with interactive games located in one or more states or jurisdictions whose regulatory agencies have entered into written agreements with the Board for the operation of the system.
Net terminal revenue—The net amount of the gross terminal revenue less the tax and assessments imposed by sections 1402, 1403, 1405 and 1407 of the act.
Non-peer-to-peer interactive game—An authorized interactive game in which the player does not compete against players and which is not a peer-to-peer interactive game.
Peer-to-peer interactive game—An authorized interactive game which is nonbanking, in which a player competes against one or more players and in which the interactive gaming certificate holder or interactive gaming operator collects a rake.
Personal identifiable information—Any data or information that can be used, on its own or with other data or information, to identify, contact or otherwise locate a registered player, including a registered player's name, address, date of birth and Social Security number.
Player—An individual wagering cash, a cash equivalent or other thing of value in the play or operation of an authorized interactive game, including during a contest or tournament, the play or operation of which may deliver or entitle the individual playing or operating the authorized interactive game to receive cash, a cash equivalent or other thing of value from another player or an interactive gaming certificate holder or interactive gaming operator.
Prepaid access instrument—A card, code, electronic serial number, mobile identification number, personal identification number or similar device that:
(i) Allows patron access to funds that have been paid in advance and can be retrieved or transferred through the use of the device.
(ii) Qualifies as an access device for purposes of regulations issued by the Board of Governors of the Federal Reserve System under 12 CFR Part 205 (relating to electronic fund transfers (Regulation E)).
(iii) Shall be distributed by a slot machine licensee or its affiliates to be considered a cash equivalent at the slot machine licensee's licensed facility or the location of the slot machine licensee's affiliates.
(iv) Shall be used in conjunction with an approved cashless wagering system or electronic credit system to transfer funds for gaming purposes.
Progressive payout—An interactive game wager payout that increases in a monetary amount based on the amounts wagered in a progressive system, including a multistate wide-area progressive system.
Progressive system—A computerized system linking interactive games offered by interactive gaming certificate holders or interactive gaming operators in this Commonwealth and offering one or more common progressive payouts based on the amounts wagered. The term includes a multistate wide-area progressive system.
Qualified airport—A publicly owned commercial service airport.
Qualified gaming entity—A gaming entity which is not a Category 1, Category 2, Category 3 or Category 4 slot machine licensee, but is licensed in a jurisdiction other than the Commonwealth that has satisfied the requirements of this subpart and any other criteria established by the Board, including financial and character suitability requirements.
Redundancy facilities—Rooms or areas used by an interactive gaming certificate holder, an interactive gaming operator, or other licensed or authorized entity associated with the provision of interactive gaming for emergency backup, redundancy or secondary operations attendant to interactive gaming as approved by the Board.
Registered player—An individual who has entered into an interactive gaming account agreement with an interactive gaming certificate holder.
State gaming receipts—Revenues and receipts required under this subpart to be paid into the State Gaming Fund, the Pennsylvania Race Horse Development Trust Fund and the Pennsylvania Gaming Economic Development and Tourism Fund, and all rights, existing on the effective date of the act, as amended, or coming into existence later, to receive revenues and receipts.
Tournament—An interactive gaming contest or an organized series of interactive gaming contests approved by the Board in which an overall winner is ultimately determined.
§ 801a.3. Certificate or license required.
The Board will initiate formal procedures for the acceptance, consideration and final adjudication of petitions and applications by setting filing requirements and deadlines for interactive gaming certificates and interactive gaming licenses.
§ 801a.4. Initial and renewal certificate and license fees.
Prior to the Board issuing an interactive gaming certificate or interactive gaming license or renewal thereof, the interactive gaming certificate holder or interactive gaming operator shall pay the certificate or license fee as set forth in the act.
CHAPTER 802a. INTERACTIVE GAMING CERTIFICATES Sec.
802a.1. Interactive gaming certificate requirements. 802a.2. Interactive gaming certificate petition and standards. 802a.3. Interactive gaming certificate term and renewal. § 802a.1. Interactive gaming certificate requirements.
(a) A slot machine licensee seeking to offer interactive gaming in this Commonwealth may petition the Board for an interactive gaming certificate.
(b) Three categories of interactive gaming are authorized in this Commonwealth:
(1) A peer-to-peer interactive game.
(2) A non-peer-to-peer interactive game which simulates slot machines.
(3) A non-peer-to-peer interactive game which simulates table games.
(c) The filing requirements and deadlines will be posted on the Board's public web site.
(d) An interactive gaming certificate issued under this subpart will list the categories of interactive games authorized under the interactive gaming certificate. An interactive gaming certificate which authorizes multiple categories of interactive games will count as an interactive gaming certificate in each category of interactive game authorized under this section.
§ 802a.2. Interactive gaming certificate petition and standards.
(a) A petitioner for an interactive gaming certificate shall submit all of the following to the Board:
(1) The name, business address and contact information of the slot machine licensee applying for an interactive gaming certificate.
(2) The name, business address and contact information of any affiliate or other person that will be a party to an agreement with the interactive gaming certificate petitioner related to the operation of interactive gaming or an interactive gaming system on behalf of the interactive gaming certificate petitioner, including a person applying for an interactive gaming license.
(3) The name, business address, job title and a photograph of each principal and key employee of the interactive gaming certificate petitioner who will be involved in the conduct of interactive gaming, whether or not the principal or key employee is currently licensed by the Board.
(4) The name, business address, job title and a photograph of each principal and key employee of the interactive gaming operator, if any, who will conduct interactive gaming or an interactive gaming system on behalf of the inter-active gaming certificate petitioner, whether or not the principal or key employee is currently licensed by the Board.
(5) A statement identifying which categories of interactive games the interactive gaming certificate petitioner intends to offer:
(i) Peer-to-peer interactive games.
(ii) Non-peer-to-peer interactive games which simulate slot machines.
(iii) Non-peer-to-peer interactive games which simulate table games.
(6) An itemized list of the interactive games, including identifying the category of each interactive game for which authorization is being sought.
(7) The estimated number of full-time and part-time employment positions that will be created as a result of interactive gaming and the jurisdictions in which the positions will be located, including positions at the interactive gaming certificate petitioner's licensed facility or at any interactive gaming restricted area if an interactive gaming certificate is issued, and an updated hiring plan under section 1510(a) of the act (relating to labor hiring preferences) which outlines the interactive gaming certificate petitioners plan to promote the representation of diverse groups and Commonwealth residents in the employment positions.
(8) A brief description of the economic benefits expected to be realized by the Commonwealth if an interactive gaming certificate is issued.
(9) The details of any financing obtained or that will be obtained to fund an expansion or modification of the interactive gaming certificate petitioners licensed facility to accommodate interactive gaming and to otherwise fund the cost of commencing interactive gaming.
(10) Information and documentation concerning financial background and resources, as the Board may require, to establish by clear and convincing evidence the financial stability, integrity and responsibility of the interactive gaming certificate petitioner, and information or documentation concerning any person that will operate interactive gaming or an interactive gaming system on behalf of the interactive gaming certificate petitioner as an interactive gaming operator, as the Board may require. The interactive gaming agreement with a person is subject to the review and approval of the Board.
(11) Information and documentation, as the Board may require, to establish by clear and convincing evidence that the interactive gaming certificate petitioner has sufficient business ability and experience to conduct a successful interactive gaming operation. In making this determination, the Board may consider the results of the interactive gaming certificate petitioner's slot machine and table game operations, including financial information, employment data and capital investment.
(12) Information and documentation, as the Board may require, to establish by clear and convincing evidence that the interactive gaming certificate petitioner has or will have the financial ability to pay the interactive gaming authorization fee.
(13) Detailed site plans identifying the proposed interactive gaming restricted area where interactive gaming operations will be managed, administered or controlled as approved by the Board.
(14) A detailed description of all of the following:
(i) The interactive gaming certificate petitioner's initial system of internal and accounting controls applicable to interactive gaming.
(ii) The interactive gaming certificate petitioner's proposed standards to protect, with a reasonable degree of certainty, the privacy and security of its registered players.
(iii) How the interactive gaming certificate petitioner will facilitate compliance with the requirements in this chapter and section 802(a)(10)(B) of the Unlawful Internet Gambling Enforcement Act of 2006 (31 U.S.C.A. § 5362(10)(B)), including all of the following:
(A) Age, identity and location verification requirements.
(B) Appropriate data security standards to prevent unauthorized access by a person whose age, identity or location have not been verified or cannot be verified in accordance with this subpart and applicable regulations of the Board.
(C) Except as provided in sections 13B61—13B63 of the act (relating to miscellaneous provisions), the requirement that all wagers made in the conduct of interactive gaming be initiated and received or otherwise made exclusively in this Commonwealth.
(D) The interactive gaming certificate petitioner's proposed age, identity and location verification standards designed to block access to persons under 21 years of age and other persons excluded or prohibited from participating in interactive gaming under this chapter.
(E) The procedures the interactive gaming certificate petitioner will use to register individuals as registered players.
(F) The procedures the interactive gaming certificate petitioner will use to establish interactive gaming accounts for registered players.
(G) The interactive games and services the interactive gaming certificate petitioner proposes to offer to registered players.
(H) Documentation and information relating to known proposed contractors of the interactive gaming certificate petitioner and subcontractors of the contractors.
(15) The interactive gaming devices and associated equipment and interactive gaming system that the interactive gaming certificate petitioner plans to or will utilize to manage, administer or control its interactive gaming operations.
(16) Compliance certification of the interactive gaming certificate petitioner's proposed interactive gaming devices and associated equipment, including interactive gaming software and hardware, by a Board-approved gaming laboratory to ensure that the gaming software and hardware comply with this subpart and regulations of the Board.
(17) A detailed description of accounting systems, including accounting systems for all the following:
(i) Interactive gaming accounts.
(ii) Per hand charges, if applicable.
(iii) Transparency and reporting to the Board and the Department.
(iv) Distribution of revenue to the Commonwealth and winnings to registered players.
(v) Ongoing auditing and internal control compliance reviews.
(18) Detailed information on security systems to protect the interactive gaming skins or interactive gaming web site from internal and external breaches and threats.
(19) Any other information the Board may require.
(b) In addition to the materials required under subsection (a), the petitioner for an interactive gaming certificate shall show, by clear and convincing evidence, all the following:
(1) The petitioner's proposed conduct of interactive gaming complies in all respects with the requirements of this subpart and the Board's regulations.
(2) Age, identity and location verification requirements designed to block access to individuals under 21 years of age and persons otherwise excluded or prohibited from engaging in interactive gaming in accordance with this subpart, as approved by the Board, have been implemented by the slot machine licensee.
(3) The petitioner has implemented or will implement appropriate data security standards to prevent unauthorized access by a person whose age, identity and location has not been verified or cannot be verified in accordance with the Board's regulations.
(4) The petitioner has implemented or will implement appropriate standards to protect the privacy and security of registered players with a reasonable degree of certainty.
(5) The petitioner's initial system of internal and accounting controls applicable to interactive gaming, and the security and integrity of all financial transactions in connection with the system, complies with this chapter and the Board's regulations.
(6) The petitioner is in good standing with the Board.
(7) The petitioner agrees that the number of slot machines and table games in operation at its licensed facility as of October 30, 2017, the effective date of 4 Pa.C.S. Part II (relating to the Pennsylvania Race Horse Development and Gaming Act), will not be reduced as a result of interactive gaming.
(c) In determining whether a petitioner is suitable to be issued an interactive gaming certificate under this subpart, the Board will consider all of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the petitioner.
(2) If all principals of the petitioner are eligible and suitable under the standards in section 1311.1 of the act (relating to licensing of principals).
(3) The integrity of financial backers.
(4) The suitability of the petitioner and the principals of the petitioner based on the satisfactory results of all of the following:
(i) The background investigation of the principals.
(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.
§ 802a.3. Interactive gaming certificate term and renewal.
(a) An interactive gaming certificate and the renewal thereof is valid for 5 years from the date of approval of the petition by the Board.
(b) A renewal application for an interactive gaming certificate shall be filed at least 6 months prior to the expiration of the current certificate.
(c) An interactive gaming certificate for which a completed renewal application and fee has been received by the Board will continue in effect until acted upon by the Board.
CHAPTER 803a. INTERACTIVE
GAMING OPERATORSSec.
803a.1. Interactive gaming operator requirements. 803a.2. Interactive gaming operator application and standards. 803a.3. Interactive gaming license term and renewal. 803a.4. Interactive gaming operator change of control. § 803a.1. Interactive gaming operator requirements.
A person seeking to operate interactive gaming or an interactive gaming system on behalf of an interactive gaming certificate holder in this Commonwealth may apply with the Board for an interactive gaming license.
§ 803a.2. Interactive gaming operator application and standards.
An applicant for an interactive gaming license shall submit all of the following:
(1) An Entity Enterprise Application and Disclosure Information Form unless otherwise directed by the Board.
(2) The nonrefundable application fee posted on the Board's web site.
(3) A diversity plan as set forth in section 1325(b) of the act (relating to license or permit issuance) and Chapter 481a (relating to diversity).
(4) An application from every key employee under this chapter and principal under Chapter 433a (relating to principal licenses) as specified by the Entity Enterprise Application and Disclosure Information Form.
§ 803a.3. Interactive gaming license term and renewal.
(a) An interactive gaming license and the renewal thereof is valid for 5 years from the date of approval of the application by the Board.
(b) A renewal application for an interactive gaming license shall be filed at least 6 months prior to the expiration of the current license.
(c) An interactive gaming license for which a completed renewal application and fee has been received by the Board will continue in effect until acted upon by the Board.
§ 803a.4. Interactive gaming operator change of control.
(a) For purposes of this section, a change of control of an interactive gaming operator will be deemed to have occurred when a person or group of persons acquires:
(1) More than 20% of an interactive gaming operator'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 interactive gaming operator.
(3) Any other interest in an interactive gaming operator which allows the acquirer to control the interactive gaming operator.
(b) An interactive gaming operator shall notify the Bureau and the Bureau of Licensing by filing a Notification of Proposed Transfer of Interest Form immediately upon becoming aware of any proposed or contemplated change of control of the interactive gaming operator.
(c) Prior to acquiring a controlling interest in an interactive gaming operator, 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 § 808a.2 (relating to interactive gaming principals) and key employees as required under § 808a.3 (relating to interactive key employees).
(d) A person or group of persons seeking to acquire a controlling interest in an interactive gaming operator 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 an interactive gaming operator until the petition required under subsection (c) has been approved. A person or group of persons seeking to acquire a controlling interest in an interactive gaming operator and the interactive gaming 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 an interactive gaming operator when all of the following conditions are met:
(1) The acquirer is an existing licensed slot machine, table game or interactive gaming operator.
(2) The existing licensed interactive gaming operator 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 804a. QUALIFIED GAMING ENTITY Sec.
804a.1. Qualified gaming entity license requirements. 804a.2. Qualified gaming entity petition requirements. 804a.3. Qualified gaming entity application requirements. 804a.4. Qualified gaming entity interactive gaming certificate term and renewal. § 804a.1. Qualified gaming entity license requirements.
(a) A qualified gaming entity seeking to offer interactive gaming in this Commonwealth may petition the Board for an interactive gaming certificate if all of the following apply:
(1) The Board has published a notice on its web site that it is accepting petitions for qualified gaming entities.
(2) Any category of interactive game, as detailed in § 802a.1(b) (relating to interactive gaming certificate requirements), remains available after eligible slot machine licensees failed to petition for authorization to offer that category of interactive game directly or through an interactive gaming operator.
(3) The entity holds a license, in good standing, in any gaming jurisdiction which entitles the entity to conduct casino, table or poker-style games in a physical land-based casino or by means of the Internet, or both.
(b) The Board will approve and post the process for selecting eligible qualified gaming entities.
§ 804a.2. Qualified gaming entity petition requirements.
(a) A qualified gaming entity petitioner for an interactive gaming certificate shall submit to the Board a petition containing the information required by slot machine licensees seeking an interactive gaming certificate under § 802a.2 (relating to interactive gaming certificate petition and standards).
(b) The qualified gaming entity petitioner shall also show, by clear and convincing evidence, all of the following:
(1) It is licensed in good standing in another gaming jurisdiction.
(2) The licensing standards of that other gaming jurisdiction are comprehensive and thorough and provide similar safeguards as those required by the Commonwealth.
(3) The petitioner has the business experience and expertise to operate an interactive gaming system.
(c) In addition to the materials required under subsections (a) and (b), the qualified gaming entity petitioner for an interactive gaming certificate shall show, by clear and convincing evidence, that it has implemented or will implement all of the following:
(1) Interactive gaming that complies in all respects with the requirements of this subpart and regulations promulgated by the Board.
(2) A system of age, identity and location verification protocols designed to block access to individuals under 21 years of age and persons otherwise excluded or prohibited from engaging in interactive gaming in accordance with this subpart, as approved by the Board, has been implemented by the petitioner.
(3) Appropriate data security standards to prevent unauthorized access by any person whose age, identity and location has not been verified or cannot be verified in accordance with the regulations promulgated by the Board.
(4) Appropriate standards to protect the privacy and security of registered players with a reasonable degree of certainty.
(5) A system of internal and accounting controls applicable to interactive gaming, and the security and integrity of all financial transactions in connection with the system, that complies with this chapter and regulations promulgated by the Board.
§ 804a.3. Qualified gaming entity application requirements.
(a) If selected under the Board process in § 804a.1(b) (relating to qualified gaming entity license requirements), the eligible qualified gaming entity petitioner shall submit all applicable applications for the issuance of an interactive gaming certificate as required by the Bureau of Licensing.
(b) In determining whether an eligible qualified gaming entity petitioner is suitable to be issued a qualified gaming entity interactive gaming certificate under this subpart, the Board will consider all of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the petitioner.
(2) If all principals of the petitioner are eligible and suitable under the standards of section 1311.1 of the act (relating to licensing of principals).
(3) The integrity of all financial backers.
(4) The suitability of the petitioner and the principals of the petitioner based on the satisfactory results of all of the following:
(i) The background investigation of the principals.
(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.
§ 804a.4. Qualified gaming entity interactive gaming certificate term and renewal.
(a) A qualified gaming entity interactive gaming certificate and the renewal thereof is valid for 5 years from the date of approval of the application by the Board.
(b) A renewal application for a qualified gaming entity interactive gaming certificate shall be filed at least 6 months prior to the expiration of the current certificate.
(c) A qualified gaming entity interactive gaming certificate for which a completed renewal application and fee has been received by the Board will continue in effect until acted upon by the Board.
CHAPTER 805a. INTERACTIVE
GAMING MANUFACTURERSec.
805a.1. Interactive gaming manufacturer license requirements. 805a.2. Interactive gaming manufacturer license application and standards. 805a.3. Interactive gaming manufacturer license term and renewal. 805a.4. Interactive gaming manufacturer abbreviated license process. 805a.5. Interactive gaming manufacturer licensee responsibilities. 805a.6. Interactive gaming manufacturer licensee change of control. § 805a.1. Interactive gaming manufacturer license requirements.
(a) An interactive gaming manufacturer seeking to manufacture interactive devices or associated equipment for use in this Commonwealth shall apply to the Board for an interactive gaming manufacturer license.
(b) In accordance with section 1317.1 of the act (relating to manufacturer licenses), an applicant for or the holder of an interactive gaming manufacturer license or any of the applicant's or holder's affiliates, intermediaries, subsidiaries or holding companies may not apply for or hold a slot machine license or an interactive gaming supplier license.
§ 805a.2. Interactive gaming manufacturer license application and standards.
(a) An applicant for an interactive gaming manufacturer license shall submit all of the following:
(1) An Enterprise Entity Application and Disclosure Information Form for the applicant and each of the applicant's principal affiliates.
(2) The nonrefundable application fee posted on the Board's web site.
(3) A diversity plan as set forth in section 1325(b) of the act (relating to license or permit issuance) and Chapter 481a (relating to diversity).
(4) An application from every key employee under §§ 435a.2 and 808a.3 (relating to key employee license; and interactive key employees) and principal under Chapter 433a (relating to principal licenses) and § 808a.2 (relating to interactive gaming principals) as specified by the Enterprise Entity Application and Disclosure Information Form and other persons as determined by the Board.
(5) An affirmation that neither the applicant nor any of its affiliates, intermediaries, subsidiaries or holding companies is an applicant for or holder of a slot machine license and that the applicant has neither applied for nor holds an interactive gaming supplier license.
(b) In addition to the materials required under subsection (a), an applicant for an interactive gaming manufacturer license shall do all of the following:
(1) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(2) Demonstrate that the applicant has the ability to manufacture, build, rebuild, repair, fabricate, assemble, produce, program, design or otherwise make modifications to interactive gaming devices or associated equipment which meet one or more of the following criteria:
(i) Are specifically designed for use in the operation of interactive gaming or an interactive gaming device or associated equipment.
(ii) Are needed to conduct an authorized interactive game.
(iii) Have the capacity to affect the outcome of the play of an interactive game.
(iv) Have the capacity to affect the calculation, storage, collection or control of gross interactive gaming revenue.
(c) In determining whether an applicant is suitable to be licensed as an interactive gaming 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 of the applicant are eligible and suitable under the standards of section 1311.1 of the act (relating to licensing of principals).
(3) The integrity of all financial backers.
(4) The suitability of the applicant and the principals of the applicant based on the satisfactory results of all of the following:
(i) The background investigation of the principals.
(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.
§ 805a.3. Interactive gaming manufacturer license term and renewal.
(a) An interactive gaming manufacturer license and the renewal thereof is valid for 5 years from the date of approval of the application by the Board.
(b) A renewal application for an interactive gaming manufacturer license shall be filed at least 6 months prior to the expiration of the current license.
(c) An interactive gaming manufacturer license for which a completed renewal application and fee has been received by the Board will continue in effect until acted upon by the Board.
§ 805a.4. Interactive gaming manufacturer abbreviated license process.
(a) The Board may use an abbreviated licensing process if the applicant holds a license issued by the Board to manufacture slot machines, table games, sports wagering devices or associated equipment, video gaming terminals, table game devices or associated equipment and all of the following apply:
(1) The license was issued by the Board and is currently in good standing.
(2) The entity to whom the manufacturer license was issued affirms there has been no material change in circumstances relating to the license.
(3) The Board determines, in its sole discretion, that there has been no material change in circumstances relating to the licensee that necessitates that the abbreviated process not be used.
(b) This section may not be construed to waive any fees associated with obtaining an interactive gaming manufacturer license through the application process in this Commonwealth.
§ 805a.5. Interactive gaming manufacturer licensee responsibilities.
(a) A holder of an interactive gaming manufacturer license shall have a continuing duty to do all of the following:
(1) Comply with the general requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(2) For publicly traded interactive gaming manufacturer licensees, provide notification of all SEC filings or if the manufacturer is publicly traded on a foreign exchange, a copy of all filings submitted to the securities regulator that has jurisdiction over the foreign publicly traded corporation. The notification or copies of the filings shall be submitted to the Bureau of Licensing within 30 days after the date of filing with the SEC or securities regulator that has jurisdiction over the foreign publicly traded corporation.
(b) An employee of a licensed interactive gaming manufacturer who is a gaming or nongaming employee as defined in § 801a.2 (relating to definitions) shall obtain a permit under § 808a.4 (relating to interactive gaming employees) or registration under § 808a.5 (relating to interactive nongaming employees).
§ 805a.6. Interactive gaming manufacturer licensee change of control.
(a) For purposes of this section, a change of control of an interactive gaming manufacturer licensee will be deemed to have occurred when a person or group of persons acquires:
(1) More than 20% of an interactive gaming manufacturer 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 interactive gaming manufacturer licensee.
(3) Any other interest in an interactive gaming manufacturer licensee which allows the acquirer to control the interactive gaming manufacturer licensee.
(b) An interactive gaming manufacturer licensee shall notify the Bureau and the Bureau of Licensing by filing a Notification of Proposed Transfer of Interest Form immediately upon becoming aware of any proposed or contemplated change of control of the interactive gaming manufacturer licensee.
(c) Prior to acquiring a controlling interest in an interactive gaming 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:
(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 § 808a.2 (relating to interactive gaming principals) and key employees as required under § 808a.3 (relating to interactive key employees).
(3) An affirmation that neither the acquirer nor any of its affiliates, intermediaries, subsidiaries or holding companies is a slot machine licensee or interactive gaming certificate holder and that the acquirer has neither applied for nor holds an interactive gaming supplier license.
(d) A person or group of persons seeking to acquire a controlling interest in an interactive gaming 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 (c).
(e) A person or group of persons may not acquire a controlling interest in an interactive gaming manufacturer 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 interactive gaming manufacturer licensee and the interactive gaming manufacturer licensee 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 an interactive gaming manufacturer licensee when all of the following conditions are met:
(1) The acquirer is an existing licensed slot machine, table game or interactive gaming manufacturer.
(2) The existing licensed interactive gaming manufacturer 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 806a. INTERACTIVE
GAMING SUPPLIERSec.
806a.1. Interactive gaming supplier license requirements. 806a.2. Interactive gaming supplier application and standards. 806a.3. Interactive gaming supplier entity term and renewal. 806a.4. Interactive gaming supplier abbreviated license process. 806a.5. Interactive gaming supplier licensee responsibilities. 806a.6. Interactive gaming supplier change of control. § 806a.1. Interactive gaming supplier license requirements.
(a) A supplier seeking to sell, lease, offer or otherwise provide, distribute or service interactive gaming devices or associated equipment to an interactive gaming certificate holder or interactive gaming operator in this Commonwealth shall apply to the Board for an interactive gaming supplier license.
(b) In accordance with sections 1317 and 1317.1 of the act (relating to supplier licenses; and manufacturer licenses), an applicant for or the holder of an interactive gaming supplier license or any of the applicant's or holder's affiliates, intermediaries, subsidiaries or holding companies may not apply for or hold a slot machine license or an interactive gaming manufacturer license.
§ 806a.2. Interactive gaming supplier application and standards.
(a) An applicant for an interactive gaming supplier license shall submit all of the following:
(1) An Enterprise Entity Application and Disclosure Information Form for the applicant and each of the applicant's principal affiliates.
(2) The nonrefundable application fee posted on the Board's web site.
(3) A diversity plan as set forth in section 1325(b) of the act (relating to license or permit issuance) and Chapter 481a (relating to diversity).
(4) An application from every key employee under § 808a.3 (relating to interactive key employees) and principal under § 808a.2 (relating to interactive gaming principals) as specified by the Enterprise Entity Application and Disclosure Information Form and other persons as determined by the Board.
(5) An affirmation that neither the applicant nor any of its affiliates, intermediaries, subsidiaries or holding companies is an applicant for or holder of a slot machine license and that the applicant has neither applied for nor holds an interactive gaming manufacturer license.
(b) In addition to the materials required under subsection (a), an applicant for an interactive gaming supplier license shall comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(c) In determining whether an applicant is suitable to be licensed as an interactive gaming 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 of the applicant are eligible and suitable under the standards of section 1311.1 of the act (relating to licensing of principals).
(3) The integrity of all financial backers.
(4) The suitability of the applicant and the principals of the applicant based on the satisfactory results of all of the following:
(i) The background investigation of the principals.
(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.
§ 806a.3. Interactive gaming supplier entity term and renewal.
(a) An interactive gaming supplier license and the renewal thereof is valid for 5 years from the date of approval of the application by the Board.
(b) A renewal application for an interactive gaming supplier license shall be filed at least 6 months prior to the expiration of the current license.
(c) An interactive gaming supplier license for which a completed renewal application and fee has been received by the Board will continue in effect until acted upon by the Board.
§ 806a.4. Interactive gaming supplier abbreviated license process.
(a) The Board may use an abbreviated licensing process if the applicant holds a license issued by the Board to supply slot machines, table games, sports wagering devices or associated equipment, video gaming terminals, table game devices or associated equipment and all of the following apply:
(1) The license was issued by the Board and is currently in good standing.
(2) The entity to whom the supplier license was issued affirms there has been no material change in circumstances relating to the license.
(3) The Board determines, in its sole discretion, that there has been no material change in circumstances relating to the licensee that necessitates that the abbreviated process not be used.
(b) This section may not be construed to waive any fees associated with obtaining an interactive gaming supplier license through the application process in this Commonwealth.
§ 806a.5. Interactive gaming supplier licensee responsibilities.
(a) A supplier shall submit to the Bureau of Licensing for review any agreements with a licensed interactive gaming manufacturer, licensed interactive gaming operator, slot machine licensee or interactive gaming certificate holder. The review may include financing arrangements, technical competency, compensative agreements and other terms or conditions to ensure the financial independence of the licensed interactive gaming supplier from any licensed interactive gaming manufacturer or licensed or certified interactive gaming entity.
(b) A holder of a supplier license shall have a continuing duty to do all of the following:
(1) Comply with the general requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(2) For publicly traded interactive gaming suppliers, provide notification of all SEC filings or, if the supplier is publicly traded on a foreign exchange, a copy of all filings submitted to the securities regulator that has jurisdiction over the foreign publicly traded corporation. The notification or copies of the filings shall be submitted to the Bureau of Licensing within 30 days after the date of filing with the SEC or securities regulator that has jurisdiction over the foreign publicly traded corporation.
(c) An employee of a licensed interactive gaming supplier who is a gaming or nongaming employee as defined in § 801a.2 (relating to definitions) shall obtain a permit under § 808a.4 (relating to interactive gaming employees) or registration under § 808a.5 (relating to interactive nongaming employees).
§ 806a.6. Interactive gaming supplier change of control.
(a) For purposes of this section, a change of control of an interactive gaming supplier licensee will be deemed to have occurred when a person or group of persons acquires:
(1) More than 20% of an interactive gaming supplier 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 interactive gaming supplier licensee.
(3) Any other interest in an interactive gaming supplier licensee which allows the acquirer to control the interactive gaming supplier licensee.
(b) An interactive gaming supplier licensee shall notify the Bureau and the Bureau of Licensing by filing a Notification of Proposed Transfer of Interest Form immediately upon becoming aware of any proposed or contemplated change of control of the interactive gaming supplier licensee.
(c) Prior to acquiring a controlling interest in an interactive gaming 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:
(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 § 808a.2 (relating to interactive gaming principals) and key employees as required under § 808a.3 (relating to interactive key employees).
(3) An affirmation that neither the acquirer nor any of its affiliates, intermediaries, subsidiaries or holding companies is a slot machine licensee or interactive gaming certificate holder and that the acquirer has neither applied for nor holds an interactive gaming manufacturer license.
(d) A person or group of persons seeking to acquire a controlling interest in an interactive gaming 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 subsection (c).
(e) A person or group of persons may not acquire a controlling interest in an interactive gaming supplier 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 interactive gaming supplier licensee and the supplier licensee may enter into a sales 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 in an interactive gaming supplier licensee when all of the following conditions are met:
(1) The acquirer is an existing licensed slot machine, table game or interactive gaming supplier.
(2) The existing licensed interactive gaming supplier 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.
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