W. Va. Code R. § 179-8-2

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

Section 179-8-2 - Definitions

For the purposes of this rule the following words and phrases have the meaning ascribed to them in this Section unless the context of the rule clearly indicates otherwise, or unless inconsistent with the manifest intention of the State Lottery Commission.

2.1. "Act" means the West Virginia Lottery Racetrack Table Games Act, West Virginia Code § 29-22C-1 et seq.

2.2. "Adjusted gross receipts" means the dollar amount that is won by the casino licensee through play at live table games, which is the total of United States currency, chips, front money or markers contained in the drop box, plus ending chip inventory, minus opening chip inventory, plus chip credits, minus table fills, minus match play coupons.

2.3. "Attributed interest" means any direct or indirect interest in a business entity determined by the Commission to be held by an individual through holdings of the individual's immediate family or other persons and not through the individual's actual holdings.

2.4. "Cage" and "cage area" means a secure work area within the casino for cashiers and a storage area for the casino's working fund of cash and gaming chips; it also serves as a depository control for gaming credit instruments.

2.5. "Cash" means United States currency and coin that may be exchanged for its equivalent United States currency and coin value.

2.6. "Cash equivalent" means an asset that is readily convertible to cash. All instruments that constitute a cash equivalent shall be made payable to the casino licensee, bearer, or cash. If an instrument is made payable to a third party, the instrument shall not be considered a cash equivalent. Cash equivalent instruments include, but are not limited to, any of the following:

2.6.a. Travelers checks;

2.6.b. Certified checks, cashier's checks, and money orders;

2.6.c. Personal checks or drafts;

2.6.d. Credit extended by the casino licensee, a recognized credit card company, or banking institution; and

2.6.e. Any other instrument that the Commission considers a cash equivalent.

2.7. "Casino" means a facility licensed by the Commission to offer to the public both video lottery games under W. Va. Code § 29-22A-1 et seq. and W. Va. Code § 29-22C-1 et seq.

2.8. "Casino license" means a license issued by the Commission to one person to own and operate one casino in West Virginia under the Racetrack Table Games Act and the Racetrack Video Lottery Act.

2.9. "Casino licensee" means the holder of a license issued by the Commission to one person to own and operate one casino in West Virginia under the Racetrack Table Games Act and the West Virginia Lottery Racetrack Video Lottery Act.

2.10. "Casino operations" means operations of the casino other than gaming operations, including the purveying of food, beverages, and retail goods and services in the gaming areas of the racetrack.

2.11. "Casino surveillance room" means a room or rooms at the casino for monitoring and recording casino operations and gaming operations by the casino licensee.

2.12. "Chip" means a small disk issued by the casino licensee representing a set value that is used for making table game wagers and is redeemable only for cash, the casino licensee's check or in redemption of a marker.

2.13. "Commission" or "State Lottery Commission" means the State Lottery Commission created by the State Lottery Act, West Virginia Code §§ 29-22-4 and 5. In context, "Commission" may also mean the state lottery office described in West Virginia Code §§ 29-22-6 and 7.

2.14. "Complaint form" means the form, prescribed by the Commission, that a patron shall complete and submit in order to file a patron complaint.

2.15. "Counterfeit chip" means a chip that has not been approved under this rule.

2.16. "Count room" means the room or rooms designated for the counting, wrapping, and recording of the casino licensee's gaming receipts.

2.17. "Dependent" means any individual who received over one-half of his or her support in a calendar year from any other individual.

2.18. "Designated gaming area" means one or more specific floor areas of a licensed racetrack within which the commission has authorized operation of racetrack video lottery terminals or table games, or the operation of both racetrack video lottery terminals and West Virginia Lottery table games: Provided, That for the sole purpose of controlling access to such games by employees hired by the casino licensee on or before the fifteenth day of September, two thousand seven, who are at least eighteen years of age and not older than twenty years of age, "designated gaming area" shall mean any floor area of a licensed racetrack which is within two feet of any gaming table.

2.19. "Director" means the individual appointed by the Governor to provide the management and administration necessary to direct the Lottery office or any other person to whom the Director's authority is lawfully delegated.

2.20. "Drop" means the total dollar amount of the currency, coins, chips, tokens, front money and/or markers removed from the live gaming devices. If a patron is using an electronic card, then the drop includes the amount deducted from a patron's account.

2.21. "Drop box" means the dual key-locked box attached to a live gaming device table that is used to collect, but is not limited to, any of the following items:

2.21.a. Currency;

2.21.b. Coin;

2.21.c. Chips;

2.21.d. Cash equivalents;

2.21.e. Damaged chips;

2.21.f. Documents verifying the extension and redemption of credit;

2.21.g. Requests for fill and credit forms;

2.21.h. Fill and credit slips;

2.21.i. Error notification slips;

2.21.j. Table inventory forms; and

2.21.k. All other forms used by the casino licensee and deposited in the drop box as part of the audit trail.

2.22. "Excluded person" means a person whose name appears on an exclusion list of any jurisdiction, or a person whose name does not appear on an exclusion list, but who is excluded or ejected as a result of meeting one or more of the exclusion criteria specified in this rule.

2.23. "Exclusion list" means a list or lists that contain identities of persons who are to be excluded or ejected from any gaming operation in any jurisdiction.

2.24. "Financial statement" means any or all of the following

2.24.a. A balance sheet;

2.24.b. An income statement;

2.24.c. A profit and loss statement;

2.24.d. A statement of cash flow; or

2.24.e. A sources and uses of funds statement.

2.25. "Front money" means a patron deposit that is used in lieu of credit to guarantee payment of a marker issued or to establish a line of credit for wagering purposes.

2.26. "Game" means any individual or particular type of casino table game authorized by the Commission.

2.27. "Gaming area" means the room or rooms in the casino in which table games are conducted.

2.28. "Gaming equipment or supplies" means gaming tables; the felt layouts for live table games; roulette wheels and wheels of fortune; playing cards and dice; drop boxes and count room specialized equipment; any representatives of value, including, without limitation, chips, or electronic debit cards; related hardware and software that do not affect the result of a table game; or machines, mechanisms, devices, or implements that affect the result of a table game by determining a win or loss.

2.29. "Hearing officer" means the Commission member, the Director or the administrative hearing officer designated by the Director to conduct or assist the Commission in the conduct of a hearing on any matter within the jurisdiction of the Commission.

2.30. "Holding company" means any person, other than an individual, that:

2.30.a. Directly or indirectly owns, has the power or right to vote or control, or holds with the power to vote more than five percent of the stock, equity interest, or other voting security of a person that holds, or has applied for, the casino license or a supplier's license; or

2.30.b. Directly or indirectly holds, or substantially owns, any power, right, or security through any interest in a subsidiary or successive subsidiaries, regardless of how many subsidiaries may intervene between the holding company and the holder or applicant for, or holder of, the casino license or a supplier's license.

2.31. "Immediate family" means any of the following, whether by whole or half blood, marriage, adoption, or effect of law:

2.31.a. A spouse, other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance;

2.31.b. A parent;

2.31.c. A child;

2.31.d. A dependent;

2.31.e. A sibling;

2.31.f. A spouse of a sibling;

2.31.g. A father-in-law; or

2.31.h. A mother-in-law.

2.32. "Indirect interest" means an interest, claim, right, legal share, or other financial stake in a person that is determined by the Commission to exist by virtue of a financial or other interest in another person.

2.33. "Individual" means any natural person.

2.34. "Intermediary company" means any corporation, firm, partnership, trust, limited liability company, or other form of business entity that:

2.34.a. Is a holding company of a person that has applied for or holds the casino license or a supplier license; or

2.34.b. Is a direct-line subsidiary of any holding company of a person that has applied for or holds the casino license or supplier license.

2.35. "Internal control system" means the internal procedures, administration, and accounting controls designed by the casino licensee for the purpose of exercising control over the gaming operation and its assets.

2.36. "Junket" means an arrangement to induce persons who are selected or approved for participation on the basis of their ability to satisfy a financial qualification obligation related to their ability or willingness to come to the casino for the purpose of gaming and who receive as consideration all or part of the cost of transportation, food or entertainment directly or indirectly paid by the casino licensee or its agent.

2.37. "Junket representative" means a person, other than the casino licensee or the casino license applicant, who receives payment for the referral, procurement, or selection of persons who may participate in a junket to the casino in West Virginia, based upon the person's actual or calculated potential to wager or lose, whether or not the activities of the junket representative occur within the State of West Virginia.

2.38. "Key person" means any of the following entities:

2.38.a. An officer, director, trustee, partner, or proprietor of a person that holds the casino license or has applied for or holds a supplier license or an affiliate or holding company that has control of a person that has applied for or holds the casino license or a supplier license;

2.38.b. A person that holds a combined direct, indirect, or attributed equity interest of more than five percent in a person that has applied for or holds the casino license or a supplier license;

2.38.c. A person that holds a combined direct, indirect, or attributed equity interest of more than five percent in a person that has a controlling interest in a person that has applied for or holds a casino license or a supplier license;

2.38.d. A managerial employee of a person that has applied for or holds the casino license or a supplier license in West Virginia, or a managerial employee of an affiliate or holding company that has control of a person that has applied for or holds the casino license or a supplier license in West Virginia, who performs the function of principal executive officer, principal operating officer, principal accounting officer, or an equivalent officer;

2.38.e. A managerial employee of a person that has applied for or holds the casino license or a supplier license, or a managerial employee of an affiliate or holding company that has control of a person that has applied for or holds the casino license or supplier license, who will perform or performs the function of gaming operations manager, or will exercise or exercises management, supervisory, or policy-making authority over the proposed or existing gaming operation, casino operation, or supplier business operations in West Virginia and who is not otherwise subject to occupational licensing in West Virginia.; or

2.38.f. An institutional investor who has a controlling interest in the licensee. For purposes of this rule, the term institutional investor does not include owners of common stock of a licensee by a state or federally licensed banking institution, nor does it include ownership of a licensee's stock by an institutional investor such as a pension fund or a mutual fund registered with the United States Securities and Exchange Commission, as well as a registered investment company, a registered investment advisor, a collective trust fund or a qualified insurance company as those entities are defined in the Investment Company Act of 1940 and the Investment Advisors Act of 1940, that is holding the stock only as an investment and not for purposes of control of the licensee or permit holder.

2.39. "Licensee" means a person who holds a license under the Act.

2.40. "Live game" means a table game that is played at a gaming table operated by employees of the licensed casino who are physically present at the table during all table game play. 2.41 "Live gaming device" means any apparatus used to play table games including, but not limited to, any of the following:

2.41.a. A roulette wheel and table;

2.41.b. A blackjack table;

2.41.c. A craps table;

2.41.d. A poker or other card game table; or

2.41.e. Other Commission-approved table games.

2.42. "Lottery," when the first letter is capitalized, means the State Lottery of West Virginia, its Director and the State Lottery Commission and its Commissioners that operate and administer the State Lottery, pursuant to authority granted under the Act and under the State Lottery Act, W. Va. Code § 29-22-1 et seq., the Racetrack Video Lottery Act, W. Va. Code § 29-22A-1 et seq., and the West Virginia Lottery Racetrack Table Games Act, W. Va. Code § 29-22C-1 et seq.

2.43. "Lottery-specified identifier symbol" means a logo, symbol or icon that is the intellectual property of the State Lottery Commission created and designated specifically for use on approved table gaming equipment and supplies as allowed by W. Va. Code § 29-22C-8(e)(4).

2.44. "Main bank" means the casino department that is responsible for at least all of the following:

2.44.a. Cashing customer checks;

2.44.b. Establishing hold check privileges;

2.44.c. Redeeming chips or tokens, or both;

2.44.d. Providing working funds to all operational departments;

2.44.e. Deposits of front money;

2.44.f. Maintaining custody of all chip inventories;

2.44.g. Processing markers; and

2.44.h. Assuming responsibility for all of the following individuals and physical structures:

2.44.h.1. Casino cashiers;

2.44.h.2. Change attendants;

2.44.h.3. Main bank vault or vaults; and

2.44.h.4. Any other structure that houses tokens, chips, or other representatives of value that for which the main bank is accountable.

2.45. "Marker" means an electronic or written document that evidences an extension of credit to a patron by the casino licensee, or a front money withdrawal, including any writing taken in consolidation, redemption, or payment of a previous marker.

2.46. "Match play coupon" means a promotional item in paper or plastic form with a fixed stated play ratio and value that is issued and used by a licensee, and the stated value of which, when presented by a patron with gaming chips which are in the stated ratio in value to the stated value of the promotional item, is included in the amount of the patron's wager in determining the amount the patron receives as the result of a winning wager made with the gaming chips and their accompanying promotional item.

2.47. "Non-value chip" means a chip which is clearly and permanently impressed, engraved, or imprinted with the name of the casino licensee, but which does not bear a value designation.

2.48. "One-on-one continuous surveillance" means that a licensed surveillance employee is dedicated to continuously monitor a given area without interruption or distraction as prescribed by the Commission.

2.49. "Patron complaint" means a complaint a patron has regarding winnings and losses or the conduct of gaming at the casino.

2.50. "Person" means a human being, association, corporation, club, trust, estate, society, governmental entity, company, joint stock company, receiver, trustee, assignee, referee, and anyone acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of human beings.

2.51. "Picture identification" means a driver's license or other piece of identification which is issued by a governmental entity and which has a picture of the individual affixed to, or which is otherwise part of, the document.

2.52. "Pit" means the area of arrangement of a group of gaming tables in which casino gaming personnel administer and supervise the live table games played at the grouping of tables.

2.53. "Predecessor company" means an entity which no longer exists in its original form, but which has assets that have been acquired, in substantial part, by another person or which has undergone certain internal changes, such as a change in identity, form, or capital structure.

2.54. "Publicly held company" or "publicly traded corporation" means any of the following:

2.54.a. A person, other than an individual, to which either of the following provisions applies:

2.54.a.1. The person has one or more classes of voting securities registered under section 12 of the Securities and Exchange Act of 1934, 15 U.S.C. § 78 l;

2.54.a.2. The person issues securities and is subject to section 15(d) of the Securities and Exchange Act of 1934; or

2.54.a.3. Another person, other than an individual, required to file under the Securities and Exchange Act of 1934; and

2.54.b. A person, other than an individual, created under the laws of a foreign country to which both of the following provisions apply:

2.54.b.1. The person has one or more classes of voting securities registered on the foreign country's securities exchange or over-the-counter market, including any person, other than an individual, that has securities registered or is an issuer under this definition solely because it guaranteed a security issued by an affiliate under a public offering and is considered by the Securities and Exchange Commission to be a coissuer of a public offering of securities under rule 140 of the Securities and Exchange Act of 1934, 15 U.S.C. § 78;

2.54.b.2. The Commission has determined that the person's activities are regulated in a manner that protects the investors and the State of West Virginia, including any person, other than an individual, that has securities registered or is an issuer under this definition solely because it guaranteed a security issued by an affiliate under a public offering and is considered by the Securities and Exchange Commission to be a coissuer of a public offering of securities under rule 140 of the Securities and Exchange Act of 1934; and

2.54.c. A person, other than an individual, that has shares which are traded on an established securities market or traded on a secondary market.

2.55. "Registered agent" means an individual designated to accept service of legal process on behalf of another person.

2.56. "Related party" means one of the following:

2.56.a. An individual or business entity that has a pecuniary interest in the casino licensee, a license applicant, or an affiliate thereof, if the casino licensee, license applicant, or affiliate is not a publicly held company;

2.56.b. A holder of more than five percent of the outstanding shares of the casino licensee, a license applicant, or an affiliate thereof, if the casino licensee, license applicant, or affiliate is a publicly held company;

2.56.c. A key person of the casino licensee, a license applicant, or an affiliate of the casino licensee or a license applicant;

2.56.d. An affiliate of the casino licensee or a license applicant; 2.56.e. An immediate family member of a holder of more than five percent of the outstanding shares of the casino licensee, a license applicant, or an affiliate of the casino licensee or a license applicant;

2.56.f. A relative of a key person of the casino licensee, a license applicant, or an affiliate of the casino licensee or a license applicant;

2.56.g. A relative of an affiliate of the casino licensee or a license applicant;

2.56.h. A trust for the benefit of, or managed, by the casino licensee, a license applicant, or an affiliate or a key person of the casino licensee or a license applicant;

2.56.i. Any other person who is able to significantly influence the management or operating policies of the casino licensee, a license applicant, or an affiliate of the casino licensee or a license applicant; or

2.56.j. An institutional investor that has a controlling interest in a person that has applied for or holds the casino license or supplier license.

2.57. "Relative" means any of the following entities whether by whole or half blood, marriage, adoption, or natural relationship:

2.57.a. A spouse, other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance.

2.57.b. A parent;

2.57.c. A grandparent;

2.57.d. A child;

2.57.e. A grandchild;

2.57.f. A sibling;

2.57.g. An uncle;

2.57.h. An aunt;

2.57.i. A nephew;

2.57.j. A niece;

2.57.k. A first cousin;

2.57.l. A father-in-law;

2.57.m. A mother-in-law;

2.57.n. A son-in-law;

2.57.o. A daughter-in-law;

2.57.p. A brother-in-law;

2.57.q. A sister-in-law; or

2.57.r. A dependent.

2.58. "Sole proprietor" means an individual who owns one hundred percent of the assets and who is principally liable for the debts of a business, regardless of whether another person guarantees payment of the debts.

2.59. "Subsidiary" means a person, other than an individual, including, without limitation, a firm, partnership, trust, limited liability company, or other form of business organization in which an equity interest is owned, subject to a power or right of control, or held with the power to vote directly, indirectly, or in conjunction with a holding company or intermediary company.

2.60. "Sufficient amenities," as the term is used in W. Va. Code § 29-22C-8(g)(3), means hotel services including room service, internal access to full-service restaurants, optional guest room turn-down service, valet parking, luggage services, spas and/or a fitness center, swimming pool, twenty-four hour housekeeping services, concierge services, in-room movies service, high-speed Internet connectivity in guest rooms, and ample rooms and services for physically handicapped patrons.

2.61. "Supplier" means a person who provides the casino with table gaming goods and services to the related goods at the casino including, but not limited to any of the following persons:

2.61.a. Manufacturers of gaming devices, supplies, articles or equipment; and

2.61.b. Distributors of gaming devices, supplies, articles or equipment.

2.62. "Surety bond" means a contractual arrangement between the surety, the principal, and the obligee in which the surety agrees to protect the obligee if the principal defaults in performing the principal's contractual obligation. The bond is the instrument that binds the surety.

2.63. "Value chip" means a chip that is clearly and permanently impressed, engraved, or imprinted with the name of the casino and the specific value of the chip.

2.64. "Voting security" means a security that the holder is entitled to vote generally for the election of a member or members of the board of directors or board of trustees of a corporation or a comparable person or persons in the case of a partnership, trust, or another form of business organization other than a corporation.

W. Va. Code R. § 179-8-2