N.Y. Comp. Codes R. & Regs. tit. 9 § 5100.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 5100.2 - Definitions

(a) Unless the context indicates otherwise, the following definitions are applicable throughout this subchapter.

(1) Accounting department means a department established in the video lottery gaming agent's approved system of organization in accordance with these regulations.

(2) Advertising or advertisement means any information, notice or communication by a video lottery gaming agent to the public concerning the video lottery gaming-related business of such agent through broadcasting, exterior signage, mail, publication, or any other means of dissemination. All advertising or advertisement(s) shall be specifically set forth and itemized in a marketing plan approved by the commission as provided by these regulations.

(3) Affiliate means a parent company or subordinate business entity of the video lottery gaming agent.

(4) Agent compensation means the commission set forth in the act.

(5) Applicant means any person applying for a video lottery gaming license required by this Subchapter.

(6) Application means the video lottery gaming license application.

(7) Assets means those fixtures, furniture, equipment, cash and other items owned and maintained by a video lottery gaming agent in connection with the operation of a video lottery gaming facility and or related amenity.

(8) Authorized instrument means a cash equivalent, a video lottery gaming agent check, a video lottery gaming agent affiliate check, an annuity jackpot trust check or a replacement check.

(9) Background investigation means the security, fitness and background investigation to be conducted of an applicant by the commission and the commission's representative for the purpose of determining suitability for licensure.

(10) Banking institution means any "depository institution" as defined in 12 U.S.C. section 461(b).

(11) Bill acceptor means a device that accepts and reads currency or other approved items of value in order to accurately register player credits at a video lottery terminal.

(12) Books and records means any book, record or document pertaining to, prepared in or generated by the operation of a video lottery gaming agent, including, but not limited to: all forms, reports, accounting records, ledgers, subsidiary records, computer generated data, internal audit records, correspondence and personnel records. This definition shall apply without regard to the medium through which the record is generated or maintained; for example, paper, magnetic media, encoded disk or other commission-approved medium. All books and records are considered a public record as that term is used in the State Penal Law and shall also be construed to mean a business record under such, unless exempt from disclosure pursuant to applicable Federal or State law.

(13) Business day means a calendar day other than Saturday, Sunday, or any day on which the commission's main offices are closed because of Federal, State or local holiday, inclement weather, or like circumstance.

(14) Business entity means a corporation, partnership, limited liability company, sole proprietorship, or other business form recognized by any state.

(15) Business plan means a document containing information regarding video lottery gaming agent facility operations as may be required by the commission.

(16) Cage cashiers means the cashiers performing any of the functions in the cashiers' cage as set forth in these regulations.

(17) Cage supervisor means any person designated as such and appropriately licensed as required by the video lottery gaming agent's jobs compendium that allows that person to supervise personnel and functions within the cashiers' cage.

(18) Capital and maintenance expenditures means expense items related to the video lottery gaming facility incurred in connection with furniture, fixtures, equipment and facilities, and capitalized costs. Such term shall include: acquisition; replacement; repairs; refurbishment; renovation; improvements; maintenance, including public area housekeeping, and labor.

(19) Cash means currency.

(20) Cash equivalent means:

(i) certified check, cashiers' check, treasurer's check, recognized traveler's check or recognized money order that:

(a) is made payable to the video lottery gaming agent where presented, a holding company of the video lottery gaming agent, "bearer" or "cash";

(b) is dated, but not postdated; and

(c) does not contain any endorsement;

(ii) certified check, cashier's check, treasurer's check or recognized money order that:

(a) is made payable to the presenting player;

(b) is endorsed in blank by the presenting player;

(c) is dated but not postdated; and

(d) does not contain any endorsement other than that of the presenting player.

(21) Central site means a location where the central video lottery communications control systems is located.

(22) Central system means central video lottery communications control system.

(23) Central system provider means a licensed vendor with whom the commission has contracted for the purpose of providing and maintaining a central system and the related management facilities with respect to the operation of video lottery terminals.

(24) Central video lottery communications control system means the hardware, software and network components that link and support video lottery terminals to a central site.

(25) Certification or certificate of operations means authorization by the commission to commence operation in accordance with the commission's inspection and approval process of video lottery terminals, central system and related video lottery gaming software at a particular video lottery gaming facility.

(26) Chief financial officer means the senior executive of the video lottery gaming agent with overall responsibility for such agent's internal and accounting controls.

(27) Chief operating officer means the senior executive of the video lottery gaming agent exercising the overall management or authority over all video lottery gaming operations at a video lottery gaming facility.

(28) Commission means the New York State Gaming Commission.

(29) Compensation means direct or indirect payment for services performed including, but not limited to, salary, wages, bonuses, deferred payments, overtime and chattels.

(30) Complimentary service or complimentary item means a service or cash or noncash item provided directly or indirectly by the video lottery gaming agent pursuant to a marketing plan approved by the commission at no cost or at a reduced price to a player. Complimentary services or items are subject to this subchapter and guidance issued by the commission from time to time.

(31) Construction contractor means any contractor or sub-contractor which is employed by a video lottery gaming agent to construct or assist in the construction of any portion of a video lottery gaming facility prior to the issuance of a certificate of operation by the commission employed after such issuance for more than 30 days, in accordance with these regulations. A contractor or sub-contractor employed by a video lottery gaming agent for less than 30 days shall be authorized as a temporary service provider as defined in paragraph (100) of this subdivision.

(32) Controller means the person who is responsible to supervise the accounting department of a video lottery gaming agent and who shall report to an officer as approved by the commission.

(33) Count means the total currency or cash equivalent counted for a video lottery terminal, per day, or other period specified by the video lottery gaming agent.

(34) Count room means a room where cash is received and counted.

(35) Coupon is a non-cash item provided to a player as a complimentary or promotion item and can be used to play a video lottery terminal. All coupons are issued pursuant to the commission's policy and procedure and must be described in an approved marketing plan.

(36) Currency means coin or paper money issued by the United States.

(37) Currency compartment means a compartment that maintains a separate lock with a separate key from the main cabinet area of the video lottery terminal and stores and secures the drop box.

(38) Department of State means the New York Department of State.

(39) Department of Taxation and Finance means the New York State Department of Taxation and Finance.

(40) Direct mail means a program set forth in a marketing plan approved by the commission that informs player(s) and potential player(s), through direct contact, or promotions, of events and offerings at the video lottery gaming facility in an effort to increase player visitation to such facility and the usage of video lottery terminals.

(41) Drop means the total amount of the currency or cash equivalents removed from video lottery terminals.

(42) Drop box means a secure container in which shall be deposited all cash and vouchers inserted into the bill acceptor of a video lottery terminal.

(43) Electronic funds transfer, or EFT, means the transfer of currency by a banking institution by electronic means.

(44) Eligible venue means a location at which the commission is authorized by the act to license the operation of video lottery gaming.

(45) Entertainment costs means those costs identified in a marketing plan approved by the commission and incurred by the video lottery gaming agent for entertainers, performers and events that are intended to increase player visitation to the video lottery gaming facility and the usage of the video lottery terminals.

(46) Equivalent provisions means lines of credit, parent company guarantees, or other arrangements approved in writing by the commission through which funds can be accessed on a timely and as needed basis.

(47) Financial institution means any banking institution or investment bank authorized to do business in the State.

(48) Financial stability means the ability of a video lottery gaming agent or vendor to meet its financial obligations.

(49) Financial statement means any of the following:

(i) balance sheet;

(ii) income statement;

(iii) profit and loss statement;

(iv) statement of cash flow; or

(v) sources and uses of funds statement.

(50) Gaming day means any calendar day during which video lottery gaming occurs at any licensed video lottery gaming facility.

(51) Gross sales means the total sales from video lottery terminals.

(52) Group sales means a program established by a video lottery gaming agent and described in a marketing plan approved by the commission and that provides incentives for groups, organizations, clubs and similar entities to increase player visitation to the video lottery gaming facility and the usage of video lottery terminals.

(53) Hold means the relationship of credits played to credits won for video lottery terminals.

(54) Holding company means a company whose sole function is to own and control other companies.

(55) Imprest basis means the basis on which cashiers' cage funds are replenished from time to time in exactly the amount of the net of expenditures made from the funds and amounts received.

(56) Incompatible function means a function, for accounting control purposes, that places any person or department in a position to both perpetrate and conceal errors or irregularities in the normal course of such person or department's duties. For example, anyone recording transactions and having access to assets ordinarily is in a position to perpetrate errors or irregularities.

(57) Independent certified public accountant means a professional accountant licensed within the State suitably qualified and sufficiently independent to act as auditor of the video lottery gaming operations.

(58) Independent testing laboratory means a laboratory, licensed by the commission, that shall be used by vendors of the commission to ensure that the central system, site controllers, terminals and associated equipment used in the conduct of video lottery gaming operate in the manner set forth by these regulations.

(59) Internal audit means employees of the video lottery gaming agent who perform an audit function of a video lottery gaming facility operation who are independent of the video lottery gaming facility department subject to such audit. Internal audit activities shall be conducted in a manner that permits objective evaluation of areas examined and the results of internal audits are to be communicated to management.

(60) Internal control system means internal procedures, administration, and accounting controls designed by the video lottery gaming agent for the purpose of exercising control over the video lottery gaming facility operation and its assets.

(61) Jackpot means the greatest amount of prize value to be awarded to a player for a given game.

(62) Jackpot payout means a total payout or the portion of a jackpot paid by video lottery gaming agent personnel.

(63) Key employee means a person required to obtain a video lottery gaming key employee license, including any natural person who will be employed by a video lottery gaming agent in a position that includes any responsibility or authority to develop or administer policy or long-range plans or to make discretionary decisions regarding video lottery gaming facility operations, regardless of job title, and who is not a principal of such agent.

(64) License means the authorization granted by the commission that permits an applicant to engage in video lottery gaming or video lottery gaming related activities.

(65) License application means the instrument by which an applicant requests licensing for participation in video lottery gaming or video lottery gaming related activities.

(66) Licensee means any person authorized by the commission onto participate in video lottery gaming or video lottery gaming related activities.

(67) Main bank means the video lottery gaming agent's department that is responsible for at least all of the following:

(i) providing working funds to all operational departments;

(ii) maintaining custody of all inventory;

(iii) cashiers;

(iv) main bank vault or vaults; and

(v) any other structure that houses representatives of value for which the main bank is accountable.

(68) Manufacturer means a firm engaged by the commission onto supply video lottery terminals as designated by the commission.

(69) Material debt means a debt, whether in a single transaction or cumulative transactions during any 12-month period, that may have a significant effect on the financial stability of a video lottery gaming agent, in the following amounts:

(i) $5,000,000 or more for a video lottery agent with 4,000 terminals or more; or

(ii) $2,000,000 or more for a video lottery agent with between 1,500 and 3,999 terminals; or

(iii) $1,000,000 or more for a video lottery agent with fewer than 1,500 terminals.

(70) Marketing expenses or expenditures means items related to the marketing, promotion and associated costs of a video lottery gaming agent's video lottery gaming operations, consistent with the customary manner of marketing and promoting comparable operations in the industry, subject to the overall supervision of the commission.

(71) Marketing and promotion program means the program established by each video lottery gaming agent and funded out of the vendor's fee.

(72) Marketing plan means the plan prepared by the video lottery gaming agent and submitted to the commission for approval pursuant to these regulations, which marketing plan describes the marketing and promotional activities for the video lottery gaming facility to be undertaken by the video lottery gaming agent.

(73) Meter means an electronic (soft) or mechanical (hard) apparatus in a video lottery terminal used to register events or occurrences.

(74) Natural person means any individual person.

(75) Net proceeds means credits played less credits won, less the video lottery gaming agent's commission.

(76) Net terminal income means the total amount of credits played less the total credits won.

(77) Net win means net terminal income.

(78) Non-gaming employee means a licensed video lottery gaming employee who is not directly involved in video lottery gaming and does not serve a gaming function, including but not limited to, an employee involved in food and beverage, housekeeping, valet or facility maintenance services.

(79) On a daily basis means something that occurs or is performed each gaming day.

(80) Operating expenses means the total cost of all selling, plus general and administrative expenses. These costs include, but are not limited to: operating supplies, labor costs, licensing fees, retail and entertainment costs, marketing, advertising, security and surveillance equipment upgrade costs, property operations, utility, and maintenance costs.

(81) Parent company means a corporation that owns at least 90 percent of the outstanding shares of another corporation.

(82) Player means a natural person who inserts currency, a voucher, or other item of value into the video lottery terminal to purchase video lottery gaming tickets.

(83) Player rewards club means a program established by a video lottery gaming agent as described in a marketing plan approved by the commission whereby player(s) can receive or accumulate points based on either:

(i) credits played at a video lottery terminal equated to a monetary value; or

(ii) purchases made at a video lottery gaming facility to the extent permissible under the program established by the video lottery gaming agent and approved by the commission.

Such points can then be redeemed for merchandise, entries into drawings, discounts on food and beverage and other complimentary items offered by the video lottery gaming agent.

(84) Premises means the building and grounds occupied by a video lottery gaming facility that include that agent's video lottery gaming facility and related amenities. In addition to the video lottery gaming facility, premises includes facilities where food and drink are served, as well as those areas not normally open to the public, such as areas where records related to video lottery gaming operations are kept. Premises shall not include the racetrack or such areas where such video lottery gaming operations or facilities do not take place or exist, such as racetrack areas or fairgrounds that are wholly unrelated to video lottery gaming operations. The boundaries of the premises will be delineated on the floor plan, required by these regulations as part of the video lottery gaming agent's business plan. Areas that are not open to the public shall be deemed restricted areas.

(85) Primary and secondary jackpots means promotional prize pools offered at certain video lottery terminals that can be won in addition to the primary prize.

(86) Principal of a video lottery gaming agent means:

(i) each of its officers and directors;

(ii) each of its principal management employees, including any chief executive officer, chief financial officer, chief operating officer, or general manager, including those employees acting in these capacities, director of security, and director of surveillance;

(iii) each of its partners if a partnership or members if a limited liability company;

(iv) if a corporation, each of its shareholders who own or control more than 10 percent of the shares of the corporation if all warrants and/or options held by that shareholder were exercised; shareholders who are members of the same family will be considered as one shareholder for purposes of this section;

(v) if a limited liability company, each of its members;

(vi) each person other than a banking institution, investment broker, or mortgage broker licensed in this State who has provided more than 10 percent of the total financing of the video lottery gaming enterprise. The actual person or persons in control of the principal financing entity shall be required to be licensed;

(vii) notwithstanding the foregoing, non-salaried members of boards of directors or their operational equivalent of non-profit or not-for-profit organizations and public benefit corporations may be excluded from certain portions of the licensing requirements set forth in these regulations at the discretion of the commission. For purposes of this section only, salary shall mean monetary compensation for services rendered in excess of a total of $5,000 annually; and

(viii) any person or other entity to exert decision making control, financial or otherwise, over the video lottery gaming agent including any such person in a parent or holding company of such agent.

(87) Prize means any credits won or value awarded as a result of the purchase and playing of a video lottery game.

(88) Promotion means an event, invitation, or offering, including coupons, designed to showcase a specific feature, product or amenity of the video lottery gaming facility as described in a marketing plan approved by the commission in an effort to encourage and increase player visitation to the video lottery gaming facility and usage of the video lottery terminals.

(89) Public area means the areas in the video lottery gaming facility that are open to the public in accordance with the video lottery gaming agent's system of internal controls.

(90) Rebate means cash or other item of value provided to a player, vendor or other third party by the video lottery gaming agent, which is strictly prohibited by these regulations. Rebate does not include complimentary services or complimentary items.

(91) Replacement reserves means funds set aside that are restricted for the replacement of wear and tear items throughout the video lottery gaming facility.

(92) Restricted areas means areas of the video lottery gaming agent's premises that are not open to the public, including, but not limited to: the cashiers' cage, the count room, the surveillance room, the specific areas designated for the possession and maintenance of video lottery gaming equipment that support the conduct of video lottery gaming in the video lottery gaming facility, any additional area that the video lottery gaming agent designates as restricted in such agent's internal controls, and any other area specifically designated by the commission as restricted.

(93) Security department member means any person employed by the video lottery gaming agent to provide physical security at a video lottery gaming facility.

(94) Sensitive keys means keys that either the video lottery gaming facility supervisor or the commission consider sensitive to the video lottery gaming operation and therefore require strict control over custody and issuance, in accordance with the video lottery gaming agent's system of internal controls and these regulations.

(95) Shift means the regular, daily work period of a group of employees administering and supervising the operation of the video lottery gaming facility, working in relay with another such succeeding or preceding group of employees at specific times.

(96) Site controller means computer equipment located at a video lottery gaming facility used to link a number of video lottery terminals to the central system.

(97) State means the State of New York.

(98) Subcontractor means any person who contracts with a licensed entity to provide goods or services in furtherance of video lottery gaming.

(99) Temporary badges mean an identification badge issued by a video lottery gaming agent to a temporary service provider.

(100) Temporary service provider means a vendor, a vendor's agents, servants and employees engaged by a video lottery gaming agent to perform temporary services at a video lottery gaming facility for no more than 30 days in any 12- month period.

(101) Terminal identification number means a unique number assigned to identify a single video lottery terminal in a video lottery gaming facility.

(102) Terminal light means the light located conspicuously on the uppermost surface of a video lottery terminal.

(103) Theoretical win means the intended hold percentage or win of an individual video lottery terminal as computed by reference to such terminal's payout schedule.

(104) Theoretical win worksheet means a worksheet provided by a manufacturer for video lottery terminals that indicate the theoretical percentages that the video lottery terminal(s) should hold based on expected levels of credits played. The worksheet also indicates the number credits that may be played, the payout schedule and other information descriptive of the particular type of video lottery terminal required by the commission.

(105) United States means the United States of America.

(106) Vendor means any person or business entity who contracts or subcontracts with the commission or a video lottery gaming agent or other provider to supply goods or services related directly or indirectly to video lottery gaming.

(107) Vendee means any person or business entity who contracts with a video lottery gaming agent to take away goods or services from a video lottery facility.

(108) Video lottery game means any lottery game played on a video lottery terminal that consists of multiple players competing for a chance to win a randomly drawn prize.

(109) Video lottery gaming agent means a person who has been licensed by the commission to operate a video lottery gaming facility pursuant to the acts.

(110) Video lottery gaming agent check means a check that is drawn by the video lottery gaming agent upon their account at a banking institution and made payable to a person in payment of their voucher.

(111) Video lottery gaming bankroll means unrestricted cash maintained in the video lottery gaming premises, or in cash and cash equivalent bank accounts, that is readily available to meet prize payment obligations.

(112) Video lottery gaming count team means the personnel that perform the count of the video lottery terminal drop.

(113) Video lottery gaming employee means a person required to hold a video lottery gaming employee license, including any person who will be employed by a video lottery gaming agent in any position and who is not a principal of a video lottery gaming agent or a video lottery gaming key employee.

(114) Video lottery gaming facility means the physical area and amenities where licensed video lottery gaming and related activities are conducted.

(115) Video lottery gaming facility department means the department of the video lottery gaming agent responsible for the operation of video lottery gaming.

(116) Video lottery gaming facility manager means a person who has the ultimate responsibility to manage, direct, or administer the conduct of the video lottery gaming conducted within a video lottery gaming agent's facility.

(117) Video lottery gaming facility operation means the operation of a video lottery gaming facility including, but not limited to, video lottery gaming, the purveying of food, beverages, retail goods and services, and transportation.

(118) Video lottery gaming floor means the area of the video lottery gaming facility where video lottery gaming is conducted.

(119) Video lottery gaming supervisor means a person employed in the operation of a video lottery gaming facility in a supervisory capacity or empowered to make discretionary decisions to conduct video lottery gaming operations and perform certain functions, including but not limited to, video lottery gaming facility shift manager, the assistant gaming facility manager and the gaming facility manager.

(120) Video lottery gaming surveillance room means a room or rooms at the video lottery gaming facility operated and staffed by video lottery gaming agent's employees for monitoring and recording video lottery gaming operations. Entrance to such room shall not be adjacent to, or visible from, any public area.

(121) Video lottery gaming system means a system that consists of video lottery terminals, connected to a central system that permit players to purchase video lottery gaming tickets.

(122) Video lottery gaming ticket means an electronic instrument produced by a video lottery terminal or video lottery gaming system that represents the outcome of a particular video lottery game.

(123) Video lottery terminal (may be referred to as VLT) means a video display terminal in which currency or credits are deposited and a selection is made by the player in order to purchase video lottery gaming tickets. A terminal shall be considered a video lottery terminal notwithstanding the use of an electronic credit system making the deposit of bills unnecessary.

(124) Voucher means an instrument of value generated by a video lottery terminal representing a monetary amount and/or play value owed to a customer at a specific video lottery terminal based on video lottery gaming winnings and/or amounts not wagered.

(125) Wager means an item that is a commission approved representative of value utilized to purchase a video lottery gaming ticket at a video lottery terminal.

(b) These definitions were previously denoted by letters. Any references to those letters shall be deemed to be a reference to the corresponding numbers.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 5100.2

Amended New York State Register August 10, 2016/Volume XXXVIII, Issue 32, eff. 8/10/2016

Amended New York State Register November 24, 2021/Volume XLIII, Issue 47, eff. 11/24/2021