Mich. Admin. Code R. 432.1106

Current through Vol. 24-10, June 15, 2024

Section R. 432.1106 - Definitions; P to R

Rule 106.

As used in these rules:

(a) "Par sheet" means a document which is provided by the EGD manufacturer and which depicts all of the following:

(i) The possible outcomes from the play of an EGD.

(ii) The probability of occurrence of the outcomes.

(iii) The contribution of each winning outcome to the payback percentage of the EGD.

(b) "Patron dispute" means a dispute a patron has regarding winnings or losses or the conduct of gambling at a casino.

(c) "Payout" means the winnings that result from a wager.

(d) "Petitioner" means a person who files a petition under part 7 of these rules.

(e) "Picture identification" means a valid driver license, state identification card, student identification card, military identification card, passport, or any other bona fide picture identification that establishes the identity and age of the individual.

(f) "Pit" means the area enclosed or encircled by the arrangement of the gaming tables in which casino gambling personnel administer and supervise the live games played at the tables by patrons located outside the perimeter of the area.

(g) "Progressive controller" means the hardware and software that controls all communication among the EGDs or live gaming devices within a progressive EGD link or a progressive live gaming device link and its associated progressive meter.

(h) "Progressive jackpot" means a value determined by application of an approved formula to the income of independent, local, or interlinked EGDs or live gaming devices.

(i) "Public offering" means a sale of securities that is subject to the registration requirements of section 5 of the securities act of 1933, 15 USC 77e(c), or that is exempt from the registration requirements solely by reason of an exemption contained in either of the following provisions:

(i) Section 3(a)(10), (a)(11), or (c) of the securities act of 1933, 15 USC 77c(a)(10), (a)(11), or (c), as amended.

(ii) Regulation A or Regulation D adopted under section 3(b) of the securities act of 1933, 15 USC 77c(b), 17 CFR 230.251 to 230.263, and 230.500 to 230.508, as amended.

(j) "Publicly held company" or "publicly traded corporation" means any of the following:

(i) A person, other than an individual, to which either of the following provisions applies:

(A) The person has 1 or more classes of voting securities registered under section 12 of the securities exchange act of 1934, 15 USC 78l, as amended.

(B) The person issues securities and is subject to section 15(d) of the securities exchange act of 1934, 15 USC 78o(d), as amended.

Either term also means another person, other than an individual, required to file under the securities exchange act of 1934, 15 USC 78a to 78qq.

(ii) A person, other than an individual, created under the laws of a foreign country to which both of the following provisions apply:

(A) The person has 1 or more classes of voting securities registered on the foreign country's securities exchange or over-the-counter market.

(B) The board has determined that the person's activities are regulated in a manner that protects the investors and this state.

Either term includes any person, other than an individual, that has securities registered or is an issuer under this definition solely because it guaranteed a security issued by an affiliate under a public offering and is considered by the Securities and Exchange Commission to be an underwriter of a public offering under section 2(a)(11) of the securities act of 1933, 15 USC 77b(a)(11), and 17 CFR 230.140, as amended.

(iii) A person, other than an individual, that has shares which are traded on an established securities market or traded on a secondary market.

(k) "Random access memory" or "RAM" means the electronic component used for computer work space and storage of volatile information in an EGD.

(l) "Randomness" means the unpredictability and absence of pattern in the outcome of an event or sequence of events.

(m) "Random number generator" or "RNG" means hardware, software, or a combination of hardware and software devices for generating number values that exhibit the characteristics of randomness.

(n) "Registered agent" means an individual designated to accept service of legal process on behalf of another person.

(o) "Related party" means 1 of the following:

(i) An individual or business entity that has a pecuniary interest in a casino licensee, a casino license applicant, or an affiliate thereof, if the casino licensee, casino license applicant, or affiliate is not a publicly held company.

(ii) A holder of more than 5% of the outstanding shares of a casino licensee, a casino license applicant, or an affiliate thereof, if the casino licensee, casino license applicant, or affiliate is a publicly held company.

(iii) A key person of a casino licensee, a casino license applicant, or an affiliate of a casino licensee or a casino license applicant.

(iv) An affiliate of a casino licensee or a casino license applicant.

(v) An immediate family member of a holder of more than 5% of the outstanding shares of a casino licensee, a casino license applicant, or an affiliate of a casino licensee or a casino license applicant.

(vi) A relative of a key person of a casino licensee, a casino license applicant, or an affiliate of a casino licensee or a casino license applicant.

(vii) A relative of an affiliate of a casino licensee or a casino license applicant.

(viii) A trust for the benefit of, or managed, by a casino licensee, a casino license applicant, or an affiliate or a key person of a casino licensee or a casino license applicant.

(ix) Any other person who is able to significantly influence the management or operating policies of a casino licensee, a casino license applicant, or an affiliate of a casino licensee or a casino license applicant.

(x) An institutional investor that has a controlling interest in a person that has applied for or holds a casino license or supplier license or that fails to meet the standards set forth in section 6c(1) of the act, MCL 432.206c, for waiver of the eligibility and suitability requirements for licensure under the act and these rules. An institutional investor is not considered to be a related party unless it fails to meet the standard set forth in section 6c(1) of the act, MCL 432.206c, for waiver of the eligibility and suitability requirements for licensure.

(p) "Related party transactions" means transactions between a casino licensee or a casino license applicant and at least 1 of the following:

(i) A related party.

(ii) An immediate family member.

(iii) A dependent.

(q) "Relative" means any of the following entities whether by whole or half blood, marriage, adoption, or natural relationship:

(i) Spouse, other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance.

(ii) Parent.

(iii) Grandparent.

(iv) Child.

(v) Grandchild.

(vi) Sibling.

(vii) Uncle.

(viii) Aunt.

(ix) Nephew.

(x) Niece.

(xi) First cousin.

(xii) Father-in-law.

(xiii) Mother-in-law.

(xiv) Son-in-law.

(xv) Daughter-in-law.

(xvi) Brother-in-law.

(xvii) Sister-in-law.

(xviii) Dependent.

(r) "Read only memory" or "ROM" means the electronic component used for storage of nonvolatile information in an EGD, including programmable ROM and erasable programmable ROM.

(s) "Respondent" means a person against whom a seizure, forfeiture, or disciplinary action has been initiated.

Mich. Admin. Code R. 432.1106

1998-2000 AACS; 2019 MR 9, Eff. 5/17/2019