Mo. Code Regs. tit. 11 § 45-4.020

Current through Register Vol. 49, No. 21, November 1, 2024.

Section 11 CSR 45-4.020 - Licenses, Restrictions on Licenses, Licensing Authority of the Executive Director, and Other Definitions

PURPOSE: This rule defines and describes types of licenses, restrictions on licenses, licensing authority of the executive director, and other definitions.

(1) A Class A license shall be a license granted by the commission to allow the parent organization(s) or controlling entity, as determined by the executive director, to develop and operate Class B licensee(s). A Class A licensee may, if authorized by the commission, operate more than one Class B licensee. Class A and Class B licensees may not be licensed as suppliers.

(2) A Class B license shall be a license granted by the commission to maintain, conduct gambling games on, and operate an excursion gambling boat and gaming facility at a specific location.

(3)

Exemptions.

(A) A key person or key business entity who is the holder of five percent (5%) or more publicly traded interest or one percent (1%) or more privately held interest, but not more than ten percent (10%) publicly traded or privately held interest, who holds such interest only for passive ("Not involving active participation; esp., of or relating to a business enterprise in which an investor does not have immediate control over the activity that produces income." Black's Law Dictionary Seventh Edition) investment purposes (including economic purposes) may be exempted from licensure by the executive director.

(B) The commission by majority vote may grant exemption from licensure for holdings of up to twenty percent (20%).

(C) Exemptions may be granted to institutional investors in advance to hold interest in multiple licensees.

(D) Exemptions shall be for two (2) years unless renewed.

(E) Requests for exemption from licensure must be submitted on a Request of Waiver for Licensure of Institutional Investor form, which is available for public inspection at the offices of the commission and online at the commission's website (www.mgc.dps.mo.gov). Request forms shall be submitted in advance of acquiring such interest or within ten (10) days thereafter certifying under oath-

1. The interest is being acquired for passive investment purposes;

2. The holder does not nor will it have any involvement in the management activities of the entity;

3. The holder does not have any intention of controlling the entity regardless of additional stock that may be acquired;

4. The holder will within ten (10) days notify the commission of any purchase of stock in the entity which causes the total holding of the entity's outstanding stock to exceed the threshold for which the waiver is granted;

5. In the event the holder subsequently develops an intention of controlling or participating in the management of said entity, said holder shall notify the commission of said change and refrain from participating in management or exercising such control until approved for licensure by the commission;

6. The home and business address, occupation, employer, and title if the applicant is an individual; and

7. The type of entity (corporation, partnership, limited partnership, LLC, LLP, etc.), state of charter, and the names and both home and business address of the following personnel if the applicant is a business entity-

A. Chief executive officer (CEO);

B. Chief financial officer (CFO);

C. Chief operating officer (COO);

D. Managing partner(s);

E. General partner(s);

F. Members of the Board of Directors; and

G. The registered agent;

8. The executive director shall keep a record of all such exemptions granted and the positions held by each entity and shall present a written report on the same to the commission on a monthly basis; and

9. Nothing in this section including the granting of an exemption shall prohibit the commission, at a future date, in its sole discretion, with or without cause from requiring any owner of any interest in a licensee from becoming licensed by the commission or to divest itself of stock ownership.

(4) Occupational license Level I is a person other than a key person/key business entity who has management control or decision-making authority over the gaming operation, a key function of the gaming operation, or the development or oversight of the testing of gaming equipment or systems, including but not limited to:

(A) Director of casino operations;

(B) Highest ranking table games department employee;

(C) Highest ranking security department employee;

(D) Highest ranking Management Information Systems (MIS) department employee;

(E) Highest ranking surveillance department employee;

(F) Assistant general manager;

(G) Highest ranking slot department employee;

(H) Managers responsible for ensuring the integrity of all testing standards and certifications;

(I) Highest ranking finance department employee; or

(J) Any other person directed by the commission to file a Level I application.

(5) Each Class B licensee at a minimum shall individually staff the following Level I positions with employees of the Class B licensee, which shall not be combined with any other required position:

(A) General manager;

(B) Casino operations manager/director, or a table games department manager/director and a slot department manager/director;

(C) Security department manager/director;

(D) Finance department manager/director;

(E) MIS department manager/director; and

(F) Surveillance department manager/director.

(6) In the event that one of the positions, required by section (5) becomes vacant, an interim replacement licensee shall be immediately appointed to serve. Except for the surveillance manager/director position, the interim appointee may be one of the current Level I licensees required by section (5). The permanent position shall be staffed within one hundred eighty (180) days, unless otherwise approved by the commission.

(7) Occupational License Level II includes any of the following positions that are not required to hold an Occupational License Level I:

(A) Any position within a Missouri riverboat gaming operation that would require the holder to have access to the excursion gambling boat or secured area to perform his or her function or duties; provided that agents and nongaming vendors are not considered within Occupational License Level I or II unless otherwise notified by the commission;

(B) Any position related to a Missouri riverboat gaming operation in one (1) of the following areas: security, surveillance, audit, accounting, MIS, cage, ticketing, hard and soft count, and marine operations;

(C) Any position with a licensed gaming supplier company that would require the holder to have access to the excursion gambling boat to perform his or her function or duties if such function or duties involve installation, servicing, maintenance, repair or accessing secured or locked components of any gaming equipment or supplies, or involve verification or payment of patron awards; and

(D) Any other person or entity directed by the commission or the director to file a Level II application as an occupational licensee applicant.

(8) Supplier license is a license issued to a person or entity that-

(A) Manufactures, sells, or leases gaming equipment, gaming supplies, or both;

(B) Provides gaming equipment maintenance or repair; or

(C) Provides testing services on gaming related equipment, components, peripherals, systems, or other items directed by the commission to a Class A or Class B licensee, or the commission.

(9) Temporary supplier license is a license authorized by the commission until the appropriate license can be obtained.

(10) Restricted Level II license is issued to an occupational license Level II licensee under the age of twenty-one (21).

(11) After May 30, 2008, all existing Class A licenses shall be divided into a Class A license, which shall be the operating company and one (1) or more Class B license(s), which shall be the licensed riverboat gaming operation. Rules adopted prior to the adoption of this rule which previously referred to a Class A licensee shall refer to both Class A licensee and Class B licensee unless specifically identified otherwise.

11 CSR 45-4.020

AUTHORITY: sections 313.004 and 313.807, RSMo 2000.* Emergency rule filed Sept. 1, 1993, effective Sept. 20, 1993, expired Jan. 17, 1994. Emergency rule filed Jan. 5, 1994, effective Jan. 18, 1994, expired Jan. 30, 1994, Original rule filed Sept. 1, 1993, effective Jan. 31, 1994. Amended: Filed June 2, 1995, effective Dec. 30, 1995. Amended: Filed Dec. 28, 1995, effective June 30, 1996. Amended: Filed May 13, 1998, effective Oct. 30, 1998. Rescinded and readopted: Filed Dec. 3, 2007, effective May 30, 2008. Amended: Filed Aug. 3, 2009, effective March 30, 2010. Amended: Filed July 28, 2010, effective Feb. 28, 2011 . Amended: Filed March 30, 2011, effective Nov. 30, 2011 .

Amended by Missouri Register July 1, 2014/Volume 39, Number 13, effective 8/31/2014

Amended by Missouri Register February 16, 2016/Volume 41, Number 04, effective 3/31/2016

Amended by Missouri Register November 15, 2018/Volume 43, Number 22, effective 12/31/2018

*Original authority: 313.004, RSMo 1993, amended 1994 and 313.807, RSMo 1991, amended 1993, 2000.