W. Va. Code R. § 179-4-25

Current through Register Vol. XLI, No. 36, September 6, 2024

Section 179-4-25 - Limited Gaming Facility License Application

25.1. A person applying for the limited gaming facility license and a person required to be qualified as part of the application shall complete and submit an application and disclosure form or forms in the manner and form prescribed by the Commission. An applicant shall make the application and disclosure form or forms under oath on forms provided by the Commission. The application and disclosure form or forms shall contain all information required by the Commission.

25.2. The limited gaming facility license application procedures are as follows:

25.2.a. The Commission shall use reasonable efforts to avoid unnecessary publicity concerning information included in the applications and other documents that are or could reasonably be considered sensitive, however, upon application, an applicant shall assume and accept, in writing, under oath, all risk of adverse publicity, notoriety, embarrassment, criticism, financial loss, or other unfavorable or harmful consequences that may occur in connection with the application process or the public disclosure of information submitted with the application and disclosure form or forms.

25.2.b. Upon application, an applicant shall also expressly waive and give up, in writing, under oath, all claims for damages that may result from the application and licensing process.

25.2.c. Upon application, an applicant shall also consent, in writing, under oath, to being subject to the inspections, investigations, audits, searches, and seizures under section eighteen of the Act for the duration of the limited gaming facility license for which application is made.

25.2.d. Upon applying for, or while holding, the limited gaming facility license under the Act and this rule, an applicant or licensee shall also authorize and consent, in writing, under oath, to release and disclose, to the Commission and its authorized representatives and agents, all otherwise confidential records that the Commission requests that are in the possession or control of the applicant or a third party, including, without limitation, tax records, financial records, business records or other records pertaining to the applicant or licensee held by a federal, state, or local governmental agency or by a credit bureau or financial institution.

25.2.e. The Commission shall conduct a background investigation of an applicant. The Commission shall also use the information provided in the application and disclosure form or forms as a basis for a background investigation, which the Commission shall conduct on each applicant, and to evaluate and determine the eligibility, qualifications, and suitability of the applicant to receive the limited gaming license under the licensing standards and criteria provided in the Act and this rule. A misrepresentation or omission in the application is cause for the denial, suspension, restriction, or revocation of the limited gaming license by the Commission.

25.2.f. An applicant shall provide the name, address, and telephone number of a representative to act as a liaison to the Commission. The applicant shall facilitate, assist, and cooperate with the Commission in its conduct of background investigations of the applicant under the Act and this rule.

25.2.g. The Commission shall not issue or renew a limited gaming license unless the applicant and each person required to be qualified as part of the application for issuance or request for renewal of the license has completed and filed, with the Commission, all required applications, license renewal forms, and disclosure forms in the manner and form prescribed by the Commission and provides all information, documentation, assurances, waivers and releases required by the Act and this rule.

25.2.h. An applicant shall file the required application forms before the expiration of deadlines established and published by the Commission.

25.2.i. An applicant is under a continuing duty to disclose any material or substantive changes in the information or documentation provided in or with the application, renewal, and disclosure forms submitted to the Commission.

25.2.j. A person applying for the limited gaming facility license shall request an amendment to its application if it knows or should have known that there has been a change in any of the following:

25.2.j.1. A change of the applicant's key persons or the key persons of its holding companies or affiliates that have control of the applicant;

25.2.j.2. A change in the type of business organization or entity;

25.2.j.3. An adverse change of more than 2 percentage points in capitalization or debt to equity ratio;

25.2.j.4. A change of investors or debt holders, or both; or

25.2.j.5. A change of the source of funds.

25.2.k. A limited gaming license application may be withdrawn upon written notice to the Commission before Commission action on the application. The application fee shall not be refunded to a withdrawing applicant.

25.2.l. The Commission may allow information, documents, or other materials submitted by an applicant in a withdrawn application to be incorporated by reference into a subsequent application.

25.3. The limited gaming license application shall require the person applying for the license, and each person who has control of the applicant to be qualified as part of the application, to submit all of the information and documentation required in this subsection and its subdivisions on forms prescribed by the Commission. Persons who are considered to have control of an applicant including:

(1) Each person associated with a corporate applicant or the immediate parent company of the applicant (but not including a bank or other licensed lending institution which holds a mortgage or other lien acquired in the ordinary course of business) who has the ability to control the activities of the corporate applicant or elect a majority of the board of directors of that corporation;

(2) Each person associated with a non-corporate applicant who directly or indirectly holds any beneficial or proprietary interest in the applicant or who the Commission determines to have the ability to control the applicant; and

(3) Key personnel of an applicant, including any executive, employee or agent, having the power to exercise significant influence over decisions concerning any part of the applicant's business operation, shall provide the following information to the Commission:

25.3.a. Disclosure forms, in the manner and form prescribed by the Commission, for the applicant and each person required to be qualified as part of the applicant's application under the Act and this rule. The forms shall contain the information, documentation, assurances, waivers and releases prescribed in the Act and this rule;

25.3.b. The name, address, and telephone number of the applicant's primary contact person and registered agent authorized to accept notices, subpoenas, summons, and other legal documents from the Commission on behalf of the applicant;

25.3.c. The names, addresses, phone numbers, dates of birth, social security numbers, fingerprints, photographs, and other personal, business, and financial background information relating to the identification, character, reputation, integrity, business probity, ability and experience, financial means, experience, responsibility, and record of law abidance of all of the following persons to the extent known and identifiable by the person applying for the limited gaming facility license:

25.3.c.1. The person that applies for the limited gaming facility license;

25.3.c.2. The key persons of the person applying for the license;

25.3.c.3. The key persons of the immediate parent company who has control of the person applying for the license;

25.3.c.4. Other persons who are required to be qualified as part of the application; and

25.3.c.5. Civil litigation and criminal history of all of the following entities to the extent known and identifiable by the person applying for the limited gaming facility license:

25.3.c.5.A. The person applying for the limited gaming facility license;

25.3.c.5.B. The key persons of the applicant;

25.3.c.5.C. The key persons of the immediate parent company who has control of the person applying for the license; and

25.3.c.5.D. Other persons who are required to be qualified as part of application;

25.3.d. Information and documentation required by the Commission to establish and determine the identity, eligibility, suitability, and qualification of the applicant or any other person required to be qualified, as part of the application, as a financial source under the Act or this rule;

25.3.e. Information and documentation required by the Commission to establish and determine the financial stability, integrity, and responsibility of the person applying for the limited gaming license and a holding company, affiliate, or intermediary company that is required to be qualified as part of the application under the Act and this rule and to establish and determine the integrity of the applicant's financial sources and adequacy of the applicant's financial resources to develop, construct, renovate, maintain, and operate the proposed casino in accordance with the requirements of the Act and this rule. The information shall include, without limitation, a description of the capitalization for the proposed limited gaming facility and the amount and source of all debt and equity involved in the capitalization for the proposed limited gaming facility;

25.3.f. Information and documentation required by the Commission to establish and determine sufficient business ability on the part of the person applying for the limited gaming license and the applicant's key persons to properly manage and operate the proposed limited gaming operation in a successful and efficient manner and in accordance with the requirements of its certified development agreement and the Act and this rule;

25.3.g. Information and documentation required by the Commission concerning the proposed site of the applicant's proposed limited gaming facility;

25.3.h. Information and documentation required by the Commission concerning the proposed gaming room, including, without limitation, floor plans showing the location of each gaming point and device, and the location and coverage of all closed circuit television cameras;

25.3.i. Information and documentation required by the Commission concerning the applicant's construction or renovation program for the applicant's proposed casino, infrastructure, and support facilities, including, without limitation, all of the following information and documentation:

25.3.i.1. A certified copy of the County Commission's canvass of votes pertaining to the local option election required by section seven of the Act;

25.3.i.2. An affidavit signed by the person applying for the license that the applicant has no outstanding un-appealed delinquencies of taxes and fees due the State of West Virginia;

25.3.i.3. The estimated construction time and anticipated date of opening;

25.3.i.4. The status of all required governmental and regulatory permits and approvals and any conditions of all required governmental and regulatory permits and approvals;

25.3.i.5. Sufficient documentation that the applicant is the owner or wholly owned by the owner of an existing historic resort hotel within the meaning of the Act; and

25.3.i.6. The architect, general contractor, construction manager, and primary subcontractors, environmental and traffic consultants, and interior designer used or to be used on the construction or renovation project;

25.3.j. Information and documentation required by the Commission concerning the organizational and operational plans for the proposed limited gaming operation, including, without limitation, the recruitment, employment, supervision, and training of employees, management contracts, and leases;

25.3.k. Information and documentation required by the Commission concerning the applicant's plans for providing food and beverage and other concessions in the gaming area of the historic resort hotel, the status of all relevant required governmental and regulatory permits and approvals, and any conditions of all relevant required governmental and regulatory permits and approvals;

25.3.l. The names, business addresses, telephone numbers, and principal contact persons of the applicant's identified suppliers of gaming-related equipment, goods, and services used in the gaming areas of the historic resort hotel regardless of the value of purchases from each supplier;

25.3.m. Information and documentation required by the Commission concerning the applicant's plans and procedures for extending credit for gambling and the collection of gambling-related debts;

25.3.n. Information and documentation required by the Commission concerning the applicant's plans and procedures for player tracking or slot management systems;

25.3.o. Information and documentation required by the Commission concerning all of the following:

25.3.o.1. The applicant's internal controls;

25.3.o.2. Accounting policies and procedures;

25.3.o.3. Security and surveillance; and

25.3.o.4. Other policies and procedures related to the integrity and protection of its assets and proposed gambling operation and the safety of its patrons and the public;

25.3.p. Information and documentation required by the Commission concerning any agreements, covenants, or options by the person applying for the limited gaming license or the key persons of the applicant or any holding company or affiliate that has control of the applicant to lease or purchase the actual or proposed site of the applicant's proposed casino;

25.3.q. Information and documentation required by the Commission regarding the types of insurance the applicant has or will obtain, including, without limitation, the following types of insurance:

25.3.q.1. Liability;

25.3.q.2. Casualty;

25.3.q.3. Fire;

25.3.q.4. Theft; and

25.3.q.5. Worker's compensation;

25.3.r. Confidential information and documentation required by the Commission from the applicant and other persons required to be qualified as part of the application, including, without limitation, the following:

25.3.r.1. Confidential business and financial information;

25.3.r.2. Confidential taxpayer information;

25.3.r.3. Confidential trade secrets related to the conduct of the proposed gambling operation, including, without limitation, all of the following with respect to the applicant:

25.3.r.3.A. Security and surveillance plans;

25.3.r.3.B. Internal control procedures;

25.3.r.3.C. Salary structure and payroll;

25.3.r.3.D. Market research and feasibility studies; and

25.3.r.3.E. Advertising, marketing, and promotional plans; and

25.3.r.4. Confidential personal information;

25.3.s. Information or documentation required by the Commission which is exempt from public disclosure under the West Virginia Freedom of Information Act [W. Va. Code § 29B-1-4] or which the applicant or filer wishes to be treated as confidential as a separate part of the application under a cover clearly labeled "Confidential Information." An applicant shall submit the information or documentation in the manner and form prescribed by the Commission;

25.3.t. All required written waivers, assurances, releases and affidavits, which an applicant shall submit in the manner and form prescribed by the Commission;

25.3.u. A statement listing the name, position or title, and business address and telephone number of each individual who completed or prepared any part of the application for the applicant;

25.3.v. A surety bond required by the Act in an amount to be determined by the Commission; and

25.3.w. Other information or documentation that the Commission may consider material and necessary to establish the identification, eligibility, suitability, and qualification of the applicant or any other person required to be qualified or licensed as part of the application under the licensing standards and requirements of the Act and this rule.

25.4. Upon initial licensing and subsequent annual renewal, the applicant for the limited gaming facility operator license shall provide the Commission with a copy of the contract it holds with the historic resort hotel that permits it to operate the limited gaming facility on the existing historic resort hotel premises, if the limited gaming facility operator is not the owner of the historic resort hotel.

W. Va. Code R. § 179-4-25