N.M. Code R. § 15.1.10.33

Current through Register Vol. 35, No. 11, June 11, 2024

Section 15.1.10.33 - GAMING OPERATIONS MANAGEMENT CONTRACTS

A. If a gaming operator licensee enters into a management contract with any person, the management contract shall:

(1) provide that only gaming activity allowed pursuant to the act will be conducted on the licensed premises;

(2) list the responsibilities of each of the parties, including but not limited to maintaining and improving the licensed premises; hiring, firing, training and promoting employees and establishing employment practices; maintaining the books and records of the gaming operation; preparing financial statements and reports; hiring and supervising security personnel; obtaining and maintaining insurance coverage, including coverage of public liability and property loss or damage; and ensuring compliance with all applicable laws, including state and federal laws;

(3) provide for the establishment and maintenance of satisfactory accounting systems and procedures, including a system of internal controls that meets the minimum standards established by the board;

(4) provide for the timely deposit of all gaming receipts required to be deposited into the gaming tax transfer account as set forth in this rule;

(5) if applicable, provide for the establishment and maintenance of a separate operating account as required by this chapter of this title, and limit access to the account to the nonprofit operator licensee;

(6) retain for the gaming operator licensee the right to timely receive, on at least a monthly basis, financial reports and information used or necessary to prepare the reports;

(7) retain for the gaming operator licensee the right to full and immediate access to all books and records for the purpose of verification of any information produced in connection with, or relating to, gaming activities;

(8) provide for a term not to exceed five years;

(9) detail the method of compensating the contract manager and the amounts paid and provide for verification by the gaming operator licensee prior to payment;

(10) provide the grounds for modifying or terminating the agreement;

(11) provide the means for dispute resolution;

(12) prohibit subcontracting of all or part of the agreement;

(13) retain ownership of the gaming operator license with the licensee;

(14) verify that the management contractor is not an affiliate of the licensee;

(15) require that any personnel of the management contractor shall obtain a certification of finding of suitability or work permit if deemed necessary by the board; and

(16) specify that the agreement will not go into effect until approved by the board.

B. The gaming operator licensee may not enter into any management contract if the board determines that:

(1) the management contract fails to meet the minimum requirements described in this section; or

(2) the management contractor or any principal, management official, or key executive of the management contractor is not licensed or is unsuitable for licensure.

N.M. Code R. § 15.1.10.33

12/31/98; 15.1.10.33 NMAC - Rn & A, 15 NMAC 1.10.33, 3/31/00; A, 2/28/05, Adopted by New Mexico Register, Volume XXVI, Issue 19, October 15, 2015, eff. 10/15/2015, Adopted by New Mexico Register, Volume XXVII, Issue 02, January 29, 2016, eff. 1/29/2016