N.M. Code R. § 15.1.10.44

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

Section 15.1.10.44 - ALLOCATION OF GAMING MACHINES

A. Only racetrack gaming operator licensees are eligible to allocate gaming machines or receive allocated gaming machines.

B. Gaming machines shall be allocated only pursuant to a valid allocation agreement. The allocation agreement must:

(1) specify the number of gaming machines to be allocated;

(2) specify the terms of the allocation agreement;

(3) provide that the allocation agreement confers to the receiving racetrack only the right to operate the gaming machines;

(4) establish terms of payment for use of the allocated gaming machines;

(5) specify that the receiving racetrack will be responsible for payment of the gaming tax and all fees associated with the licensing of the allocated gaming machines;

(6) specify that the receiving racetrack be responsible for statutorily required payments based on net take, including payment of twenty percent of the net take from the allocated gaming machines to horsemen's purses and one quarter of one percent of the net take to fund or support programs for the treatment and assistance of compulsive gamblers;

(7) provide that the receiving racetrack may not allocate the gaming machines;

(8) specify the party responsible for repairs and maintenance of the allocated gaming machines;

(9) provide that the allocation agreement cannot be modified without approval of the board and the New Mexico racing commission; and

(10) provide that the allocation agreement shall not become effective until approved in writing by the board and the New Mexico racing commission.

C. No allocation agreement shall cause the number of gaming machines on the licensed premises to exceed the number authorized by the act.

D. The board shall take action on a proposed allocation agreement at a public meeting of the board. The board may disapprove any allocation agreement if the board determines that:

(1) the allocation agreement fails to meet the minimum requirements described in this section;

(2) the allocating racetrack or receiving racetrack is not in compliance with minimum internal controls or other statutory requirements or board rules;

(3) the proposed allocation would otherwise be contrary to the public health, safety and welfare.

E. Movement of any allocated machine is subject to notice requirements established by board rules and procedures.

N.M. Code R. § 15.1.10.44

15.1.10.44 NMAC - N, 4/30/02; 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