Transcription
Rev. 03/05/2022STATE OF ARKANSASRULES OF THEARKANSAS RACING COMMISSIONLITTLE ROCK, ARKANSASCASINO GAMING
RULE 1ISSUANCE OF RULES; CONSTRUCTION; 01.191Promulgation, amendment, modification and repeal.Construction.Severability.Definitions, words and terms; tense, number and gender.“Amendment” defined.“Automated teller machine” defined.“Card game” defined.“Cashable credits” defined.“Casino” defined.“Commission” defined.“Commission Rules” Defined.“Counter game” defined.“Counter games payout” defined.“Counter games write” defined.“Debit instrument” defined.“Department of Finance and Administration” or “DF&A” means ArkansasDepartment of Finance and Administration“Drop” defined.“Drop box” defined.“Electronic money transfer” defined.“Establishment” defined.“Funds” defined.“Guaranteed draft” defined.“Hosting center” defined.“Independent accountant” defined.“Jackpot payout” defined.“Payout receipt” defined.“Premises” defined.“Prepaid access instrument” defined.“Progressive keno game” defined.“Rake-off” defined.“Registration” defined.“Rules” defined.“Rim credit” defined.“Slot machine operator’s license” defined.“System based game” and “system based gaming device” defined.“System supported game” and “system supported gaming device” defined.“Table game bankroll” defined.“Wagering voucher” defined.“Wholesaler”1.010 Promulgation, amendment, modification and repeal. The following Rules are issuedpursuant to the Amendment. The Commission will, from time to time, promulgate, amend andrepeal such Rules, consistent with the policy, objects and purposes of the Arkansas Racing2
Commission, as it may deem necessary or desirable in carrying out the policy and provisions ofthe Amendment.1.020 Construction. Nothing contained in these Rules shall be so construed as to conflictwith any provision of the Amendment or of any other applicable law.1.030 Severability. If any provision of these Rules be held invalid, it shall not be construedto invalidate any of the other provisions of these Rules.1.040 Definitions, words and terms; tense, number and gender. The provisions of theAmendment relating to definitions, tense, number and gender apply and govern the interpretationof these Rules, except when otherwise plainly declared or clearly apparent from the context.1.050 “Amendment” defined. “Amendment” means Amendment 100 to the ArkansasConstitution, known as the Arkansas Casino Gaming Amendment of 2018.1.055 “Automated teller machine” defined. “Automated teller machine” or “ATM” means anautomated bank teller machine capable of dispensing cash.1.060 “Card game” defined. “Card game” means a game in which the licensee is not party towagers and from which the licensee receives compensation in the form of a rake-off, a time buyin, or other fee or payment from a player for the privilege of playing, and includes but is notlimited to the following: Poker, bridge, whist, solo and panguingui.1.062 “Cashable credits” defined. “Cashable credits” means wagering credits that areredeemable for cash.1.065 “Casino” defined. “Casino” means a facility where casino gaming is conducted asauthorized by the Amendment.“Casino applicant” is defined as any individual, corporation, partnership, association, trust,or other entity applying for a license to conduct casino gaming at a casino in Pope County orJefferson County, Arkansas, pursuant to Section 4 of the Amendment. Franchise holders shall beexempt from this definition pursuant to Section 4 of the Amendment.“Casino gaming” is defined as dealing, operating, carrying on, conducting, maintaining, orexposing for play any game played with cards, dice, equipment, or any mechanical,electromechanical, or electronic device or machine for money, property, checks, credit, or anyrepresentative value. Casino gaming shall also be defined to include accepting wagers on sportingevents. “Casino gaming” does not include lotteries conducted pursuant to Amendment 87 and/orThe Arkansas Scholarship Lottery Act, Ark. Code Ann. § 23-115-101, et seq.“Casino gaming receipts” is defined as gross receipts from casino gaming.“Casino license” is defined as a license issued by the Arkansas Racing Commission toconduct casino gaming at a casino.“Casino licensee” is defined as any individual, corporation, partnership, association, trust, orother entity holding a license issued by the Arkansas Racing Commission to conduct casinogaming at a casino.1.066 “Commission” means the Arkansas Racing Commission.3
1.067 “Commission Rules” means Rules and Regulations Governing Horse Racing inArkansas, Rules and Regulations Governing Greyhound Racing in Arkansas, ArkansasRegulations for Franchise Holders Operating Electronic Games of Skill, and Arkansas CasinoGaming Rules.1.080 “Counter game” defined. “Counter game” means a game in which the licensee is partyto wagers and wherein the licensee documents all wagering activity. The term includes, but is notlimited to bingo, keno, race books, and sports pools. The term does not include table games, cardgames and slot machines.1.085 “Counter games payout” defined. “Counter games payout” means the total amount ofmoney, chips, wagering vouchers, payout receipts, and electronic money transfers made from acounter game through the use of a cashless wagering system, that are distributed to a patron asthe result of a legitimate wager.1.090 “Counter games write” defined. “Counter games write” means the total amount ofmoney, guaranteed drafts, chips, wagering vouchers, unpaid winning tickets, and electronicmoney transfers made to a counter game through the use of a cashless wagering system, that areaccepted from a patron as a legitimate wager.1.092 “Debit instrument” defined. “Debit instrument” means a card, code or other devicewith which a person may initiate an electronic funds transfer or a wagering account transfer. Theterm includes, without limitation, a prepaid access instrument.1.093 “Department of Finance and Administration” or “DF&A” means the ArkansasDepartment of Finance and Administration.1.095 “Drop” defined. “Drop” means:1. For table games, the total amount of money, guaranteed drafts, chips, and wageringvouchers contained in the drop boxes and any electronic money transfers made to the gamethrough the use of a cashless wagering system.2. For slot machines, the total amount of money, and wagering vouchers contained in thedrop box, and any electronic money transfers made to the slot machine through the use of acashless wagering system.1.100 “Drop box” defined. “Drop box” means:1. For table games, a locked container permanently marked with the game, shift, and anumber corresponding to a permanent number on the table. All markings must be clearly visiblefrom a distance of at least 20 feet. The container must be locked to the table, separately keyedfrom the container itself. All currency exchanged for chips or credit instruments at the table andall other items or documents pertaining to transactions at the table must be put into the container.2. For slot machines, a container in a locked portion of the machine or its cabinet used tocollect the money retained by the machine that is not used to make automatic payouts from themachine.1.103 “Electronic money transfer” defined. “Electronic money transfer” means the transferto or from a game or gaming device of a patron’s cashable credits, through the use of a cashless4
wagering system, that have either been provided to the patron by the licensee, or for which thelicensee or its affiliates have received cash through a wagering account. The term also includeselectronic funds transferred from a financial institution to a game or gaming device as a result ofan electronic funds transfer through a cashless wagering system.1.110 “Establishment” defined. “Establishment” means any premises where business isconducted, and includes all buildings, improvements, equipment and facilities used ormaintained in connection with such business.1.125 “Funds” defined. “Funds” means money or any other thing ofvalue.“Franchise holder” is defined as any individual, corporation,partnership, association, trust, or other entity holding a franchise to conducthorse racing under the Arkansas Horse Racing Law, Ark. Code Ann. § 23110-101 et seq., or greyhound racing under the Arkansas GreyhoundRacing Law, Ark. Code Ann. § 23-111-101 et seq. as of December 31,2017.“Game” and “gambling game” defined. “Game” or “gamblinggame” means any game played with cards, dice, equipment or anymechanical, electromechanical or electronic device or machine for money,property, checks, credit or any representative of value, including, withoutlimiting the generality of the foregoing, faro, monte, roulette, keno, bingo,fan-tan, twenty-one, blackjack, seven-and-a-half, big injun, klondike, craps,poker, chuck-a-luck, Chinese chuck-a-luck (dai shu), wheel of fortune,chemin de fer, baccarat, pai gow, beat the banker, panguingui, slotmachine, any banking or percentage game or any other game or deviceapproved by the Commission1.135 “Guaranteed draft” defined. “Guaranteed draft” means a draft or check accepted by alicensee for gaming purposes whose drawer is a patron and whose drawee unconditionallyguarantees payment provided that all required issuance and acceptance procedures are adhered toby the drawee and the licensee. The term includes, but is not limited to, traveler’s checks. Theterm does not include personal checks.1.139 “Independent accountant” defined. “Independent accountant” means a certified publicaccountant licensed by this state or another state or territory of the United States, who is qualifiedto practice public accounting in Arkansas.“Intoxicating liquor” is defined as any beverage containing more than one-half of onepercent of alcohol by weight.1.140“Jackpot payout” defined. “Jackpot payout” means money, payout receipts,wagering vouchers, electronic money transfers made from a slot machine through the useof a cashless wagering system and the actual cost to the licensee of personal property,other than travel expenses, food, refreshments, lodging or services distributed to a slotmachine player as a result of a legitimate wager.5
“Net casino gaming receipts” is defined as gross receipts from casino gaming less amountspaid out or reserved as winnings to casino patrons.“Net casino gaming receipts tax” is defined as a tax on net casino gaming receipts.1.143 “Payout receipt” defined. “Payout receipt” means an instrument that is redeemable forcash and is either issued by a game or gaming device, or as a result of a communication from agame or gaming device to associated equipment that cannot be used for wagering purposes.1.145 “Premises” defined. “Premises” means land together with all buildings, improvementsand personal property located thereon.1.146 “Prepaid access instrument” defined. “Prepaid access instrument” means a card, code,electronic serial number, mobile identification number, personal identification number or similardevice that allows patron access to funds that have been paid in advance and can be retrieved ortransferred at some point in the future through such a device. To transfer funds for gamingpurposes, a prepaid access instrument must be used in conjunction with an approved cashlesswagering system, race book or sports pool wagering account, or interactive gaming account.1.147 “Progressive keno game” defined. “Progressive keno game” means a game with a payofflimit that increases by predetermined amount as the game is played, which limit is at all timesexhibited on an indicator visible to the public. “Progressive keno game” does not include videoprogressive keno devices.1.150 “Rake-off” defined. “Rake-off” means a percentage of the total amount anted andwagered by players during a hand in a card game.1.155 “Registration” defined. “Registration” means:1. A final order of the Commission which authorizes a corporation, firm, partnership,limited partnership, association, limited liability company, trust, or other form of businessorganization not a natural person to be a holding company or2. A registration of a person, including individuals, with theCommission.1.160 “Rules” defined. “Rules” means Rules adopted by the Commission.1.162 “Rim credit” defined. “Rim credit” means all extensions of credit in exchange for chipsnot evidenced by the immediate preparation of a credit instrument.1.172 “System based game” and “system based gaming device” defined. “System basedgame” or “system based gaming device” means a gaming device comprised of a server or systempart and client stations that, together, form a single integrated device where the system portion ofthe game determines the outcomes of the individual games conducted on the client stations andthe client stations cannot operate independently from the system.1.174 “System supported game” and “system supported gaming device” defined. “Systemsupported game” or “system supported gaming device” means a gaming device comprised of acollection of conventional gaming devices or client stations connected to a system for the purpose6
of downloading control programs and other software resources to the conventional gaming deviceor client station on an intermittent basis. The client stations connected to the system are capable ofoperating independently from the system once the downloading process has been completed. Thisconfiguration encompasses cases where the system may take control of peripheral devices orassociated equipment typically considered part of a conventional gaming device such as a billvalidator or a printer. In a system supported game, game outcome is determined by theconventional gaming devices or client stations connected to the system and not by the system itself.1.180 “Table game bankroll” defined. “Table game bankroll” means the inventory of:1. Chips and coinage at a table game that is used to make change, extend credit and paywinning wagers; and2. Unpaid credit at a table game, including credit instruments not yet transferred to the cageand outstanding rim credit.1.190 “Wagering voucher” defined. “Wagering voucher” means a printed wageringinstrument, or digital representation thereof, used in a cashless wagering system that has a fixeddollar wagering value and is redeemable for cash or cash equivalents.1.191 “Wholesaler” means any person who holds a permit under any alcoholic beveragecontrol law of the State of Arkansas to purchase controlled beverages from a manufacturer,importer, or domestic wine or brandy producer only and to sell such controlled beverages toretailers only.End – Rule 17
RULE 2APPLICATION FOR CASINO GAMING LICENSE AND 12.122.13Authority of the Commission.Scope and Purpose.“Amendment” defined.“Casino” defined.“Casino applicant” defined.“Casino gaming” defined.“Casino license” defined.“Casino licensee” defined“Commission” defined.“EGS Law” defined.“Franchise holder” defined.“Disqualifying felony offense” defined.Casino Gaming Application, Licensing, and Renewal, License RequiredAUTHORITY OF THE COMMISSION2.01 These Rules Governing the Application For, Issuance, and Renewal of Licenses to ConductCasino Gaming at a Casino in Arkansas are duly adopted and promulgated by the Arkansas RacingCommission pursuant to Amendment No. 100 of the Constitution of the State of Arkansas of 1874,The Arkansas Casino Gaming Amendment of 2018.SCOPE AND PURPOSE2.02 These Rules govern the application procedures for the issuance and renewal of licenses toconduct casino gaming at a casino in Arkansas. These Rules also govern the selection methods to beused and the criteria to be considered by the Arkansas Racing Commission in awarding licenses toconduct casino gaming at a casino in Arkansas.DEFINITIONS2.03 “Amendment” means the Arkansas Casino Gaming Amendment of 2018.2.04 “Casino” means a facility where casino gaming is conducted as authorized by theAmendment.2.05 “Casino applicant” means any individual, corporation, partnership, association, trust, or otherentity, other than a franchise holder, applying for a license to conduct casino gaming at a casino.Pursuant to the Amendment, a franchise holder is not a casino applicant and is not required to submitan application for a casino license under these Rules.2.06 “Casino gaming” means dealing, operating, carrying on, conducting, maintaining, orexposing for play any game played with cards, dice, equipment, or any mechanical,electromechanical, or electronic device or machine for money, property, checks, credit, or anyrepresentative value. Casino gaming shall also be defined to include accepting wagers on sportingevents. “Casino gaming” does not include lotteries conducted pursuant to Amendment 87 and/or TheArkansas Scholarship Lottery Act, Ark. Code Ann. § 23-115-101 et seq.8
2.07 “Casino license” means a license issued by the Arkansas Racing Commission to conductcasino gaming at a casino.2.08 “Casino licensee” means any individual, corporation, partnership, association, trust, or otherentity holding a license issued by the Arkansas Racing Commission to conduct casino gaming at acasino.2.09 “Commission” means the Arkansas Racing Commission.2.10 “EGS Law” means the Local Option Horse Racing and Greyhound Racing Electronic Gamesof Skill Act, Ark. Code Ann. § 23-113-101 et seq., as amended.2.11 “Franchise holder” means any individual, corporation, partnership, association, trust, or otherentity holding a franchise to conduct horse racing under the Arkansas Horse Racing Law, Ark. CodeAnn. § 23-110-101 et seq., or greyhound racing under the Arkansas Greyhound Racing Law, Ark.Code Ann. § 23-111-101 et seq. as of December 31, 2017.2.12 “Disqualifying felony offense” means:1.A felony offense as determined by the applicable state or federal law where the felonyoffense occurred, and a felony offense which the Commission has by Rule or Order determined to bea disqualifying felony offense for the issuance of a casino license, employee license, or for theowners, shareholders, board members or officers of any casino applicant or casino license holder;2.However, the following offenses shall not be considered a disqualifying felony:(a) An offense that has been sealed by a court or for which a pardon has been granted, or(b) An offense whose sentence, including any term of probation, incarceration or supervisedreleased, was completed ten (10) or more years earlier.3.“Sealed” means expunge, remove, sequester, and treat as confidential the record or records ofa felony offense.CASINO GAMING APPLICATION, LICENSING, AND RENEWAL2.13. License Required1. No individual, corporation, partnership, association, trust, or other entity shall conduct casinogaming at a casino or at any other location within the State of Arkansas, unless the individual,corporation, partnership, association, trust, or other entity has a casino license issued by theCommission pursuant to these Rules.2. Each license to conduct casino gaming at a casino shall specify:(a) The name of the individual, corporation, partnership, association, trust, or other entitywho holds the license;(b) The address of the individual, corporation, partnership, association, trust, or other entitywho holds the license;(c) The effective dates of the license; and(d) The address of the licensed casino.9
3. Licenses Available(a) The Commission shall issue four licenses to conduct casino gaming at casinos, asfollows:i. The Commission shall issue a casino license, as provided in the Amendment, to afranchise holder located in Crittenden County, there being only one, to conductcasino gaming at a casino to be located at or adjacent to the franchise holder’sgreyhound racing track and gaming facility as of December 31, 2017 in CrittendenCounty.ii. The Commission shall also issue a casino license, as provided in the Amendment,to a franchise holder located in Garland County, there being only one, to conductcasino gaming at a casino to be located at or adjacent to the franchise holder’s horseracing track and gaming facility as of December 31, 2017 in Garland County.(1) Casino licenses to be issued to franchise holders shall be issued upon:a. Adoption by the Commission of rules necessary to carry out thepurposes of the Amendment; andb. Initial laws and appropriations required by the Amendment being infull force and effect.Franchise holders at Oaklawn and Southland are not required to submit applications for casinolicenses, under these Rules. Each franchise holder shall submit to the Commission a proposed date forthe franchise holder to convert from operating under the EGS Law to operating under the Amendmentand the Rules adopted by the Commission regulating casino gaming, and subject to the provisions ofthe Amendment, such date shall be subject to approval by the Commission. If Amendment 100 isamended or repealed in a manner that would restrict or preclude a franchise holder from operatingcasino gaming thereunder, the franchise holder may by written notice to the Commission elect, subjectto approval by the Commission, to convert all or part of its facility and electronic games of skill back tooperating under the EGS Law, and the Rules of the Commission thereunder.iii. The Commission shall award a casino license to a casino applicant for a casino tobe located in Pope County within two miles of the city limits of the county seat.iv. The Commission shall also award a casino license to a casino applicant for a casinoto be located in Jefferson County within two miles of the city limits of the countyseat.v. No individual, corporation, partnership, association, trust, or other entity may holdmore than one casino license in Arkansas.4. Non-Franchise Holder Application Process(a) An application for a casino license as set forth in these Rules shall be submitted to theCommission on a form and in a manner prescribed by the Commission. The provisionsof this section apply to applications for non-franchise holder casino licenses.(b) Applications for a casino license will be accepted by the Commission for a period ofthirty (30) days, beginning on the date established by the Commission and published asa legal notice by the Commission. No applications will be accepted after the thirty (30)day period, except for good cause shown.(c) Applications that have been received and verified by the Commission will beconsidered based upon the selection processes set out in these Rules.10
(d) If no application is received by the Commission for the casino licenses in Pope Countyand/or Jefferson County, then the Commission shall re-open the application processupon receipt of a written request by a casino applicant.5. Minimum Qualifications for Non-Franchisor Applicant(a) All casino applicants for a casino license in Pope County and Jefferson County arerequired to demonstrate experience conducting casino gaming.(b) All casino applicants for a casino license in Pope County and Jefferson County arerequired to submit either a letter of support from the county judge or a resolution fromthe quorum court in the county where the proposed casino is to be located and, if theproposed casino is to be located within a city or town, are also required to submit aletter of support from the mayor in the city or town where the casino applicant isproposing the casino to be located. All letters of support or resolutions by the QuorumCourt, required by these Rules and the Amendment, shall be dated and signed by theCounty Judge, Quorum Court members, or Mayor holding office at the time of thesubmission of an application for a casino gaming license.(c) Prior to the submission of an application for a casino license, the owners, shareholders,board members, or officers of the casino applicant:i. If an individual, shall not have been convicted of a disqualifying felony offense;ii. Shall not have previously had a casino license in any state revoked;iii. If an individual, shall not be under twenty-one years of age; andiv. If an individual, shall not be a county judge or mayor that provides a letter ofsupport, or a quorum court member that votes in favor of a letter of support asidentified in the Amendment.(d) Casino applicants shall provide a complete application with responses for each requireditem.6. Documentation and Information for Non-Franchisor Casino Applicant(a) The application for non-franchisor casino licenses shall include without limitation thefollowing:i. The application fee;ii. The legal name of the casino applicant;iii. The physical address of the casino applicant;iv. The physical address of the proposed casino;v. The name, address, and date of birth of each officer and owner of the casinoapplicant;vi. If the city, town, or county in which the casino would be located has enactedzoning restrictions, a sworn statement certifying that the casino will operate incompliance with the restrictions;vii. To establish proof of no felony convictions, all owners, shareholders, boardmembers, or officers of the casino applicant shall provide consent to a backgroundcheck, including fingerprinting;viii. A photocopy of a valid, unexpired driver’s license or valid, unexpired U.S.passport for each of the casino applicant’s owners, board members, and officersevidencing that they are over the age of twenty-one; andix. Consents for criminal background checks for each owner, board member, andofficer of the casino applicant.11
(b) The information and documents shall be submitted in a method prescribed by theCommission in the notice of open application.(c) All information contained in applications for casino licenses shall remain confidentialuntil after the deadline for submission of applications. After the closing date forsubmission of applications for casino licenses, the Commission will release, uponrequest, any information submitted by a casino applicant not otherwise protected asconfidential or proprietary under Arkansas law.7. Background Checks(a) The following are subject to background checks conducted by the Commission or itsdesignee in considering an application for a casino license:i. All owners, officers, and board members of a casino applicant.(b) A person subject to background checks as provided in these Rules shall be disqualifiedfrom being an owner, officer or board member of a casino and be prohibited fromhaving any responsibility for operating a casino if the person has been convicted of adisqualifying felony offense.(c) Each person undergoing a background check shall provide written consent and allapplicable processing fees to the Commission or its designee to conduct thebackground check. Each person shall use Arkansas State Police Form 122, which canbe found at the following link: https://static.ark.org/asp/pdf/asp 122.pdf.8. Application Fee(a) Each application for a casino license shall include an application fee of up to 250,000.00 by cash or certified funds. Certified checks or cashier’s checks shall bemade payable to the state of Arkansas, delivered or mailed by certified mail, returnreceipt requested, to the address specified in the notice of open application.(b) In the event a casino applicant is not successful, one-half (50%) of the initialapplication fee shall be refunded to the casino applicant.(c) An application is not complete and will not be considered unless all requiredinformation, documentation, and the application fee are timely received by theCommission.9. Selection Process and Criteria Based on Merit Selection(a) In addition to documentation establishing minimum qualifications, the casino applicantshall submit responses to the Commission’s merit criteria in a form and mannerprescribed by the Commission. Criterion shall be published with the initial notice ofopen application. In addition, representatives of the casino applicant shall appearbefore the Commission and the Commission’s consultant for an interview regarding thecasino applicant’s qualifications and proposal for operating a casino in Arkansas.(b) The Commission shall consider the following criteria based on merit to evaluateapplications.i. Experience conducting casino gaming;ii. Timeline for opening a casino;iii. Proof of financial stability and access to financial resources, including but notlimited to legal sources of finances immediately available to begin operating acasino; andiv. Detailed summary of proposed casino including hotel, amenities, projected numberof employees, and any other information the casino applicant deems relevant.12
(c) Each merit criterion will be worth a number of points announced by the commission inthe notice of open application period.(d) A review panel comprised of members of the Commission shall evaluate theapplications and award points for each merit criterion. The points shall be totaled foreach application and the applications ranked from the highest total score to the lowesttotal score. The Commission shall notify in writing each of the casino applicants oftheir respective score and their respective ranking among all casino applicants.10. Issuance of License(a) The Commission shall award and issue a casino license within 30 business days fromthe date the Commission announces that the application process has concluded.(b) Upon issuance of a casino license, the casino licensee may begin operations.(c) The casino licensee shall visibly post a copy of its license at the casino covered underthe license.11. Term(a) A casino license shall expire ten years after it is issued and is renewable at any timebefore expiration, unless the license is:i. Suspended or revoked by the Commission; orii. Surrendered by the casino licensee.12. Denial of Application for or Renewal of a License(a) The Commission may deny an application for or renewal of a license for any of thefollowing reasons:i. Failure to provide the information required in these Rules;ii. Failure to meet
6 "Net casino gaming receipts" is defined as gross receipts from casino gaming less amounts paid out or reserved as winnings to casino patrons. "Net casino gaming receipts tax" is defined as a tax on net casino gaming receipts. 1.143 "Payout receipt" defined."Payout receipt" means an instrument that is redeemable for cash and is either issued by a game or gaming device, or as a .
