Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 06 - Racing Commission
Rule 006.06.19-002 - CGR 2 Casino License Application
Universal Citation: AR Admin Rules 006.06.19-002
Current through Register Vol. 49, No. 9, September, 2024
RULE 2 APPLICATION FOR CASINO GAMING LICENSE AND RENEWAL
AUTHORITY OF THE COMMISSION
2.01 These Rules Governing the Application For, Issuance, and Renewal of Licenses to Conduct Casino Gaming at a Casino in Arkansas are duly adopted and promulgated by the Arkansas Racing Commission pursuant to Amendment No. 100 of the Constitution of the State of Arkansas of 1874, The Arkansas Casino Gaming Amendment of 2018.
SCOPE AND PURPOSE
2.02 These Rules govern the application procedures for the issuance and renewal of licenses to conduct casino gaming at a casino in Arkansas. These Rules also govern the selection methods to be used and the criteria to be considered by the Arkansas Racing Commission in awarding licenses to conduct casino gaming at a casino in Arkansas.
DEFINITIONS
2.03 "Amendment" means the Arkansas Casino Gaming Amendment of 2018.
2.04 "Casino" means a facility where casino gaming is conducted as authorized by the Amendment.
2.05 "Casino applicant" means any individual, corporation, partnership, association, trust, or other entity, 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 submit an application for a casino license under these Rules.
2.06 "Casino gaming" means dealing, operating, carrying on, conducting, maintaining, or exposing for play any game played with cards, dice, equipment, or any mechanical, electromechanical, or electronic device or machine for money, property, checks, credit, or any representative value. Casino gaming shall also be defined to include accepting wagers on sporting events. "Casino gaming" does not include lotteries conducted pursuant to Amendment 87 and/or The Arkansas Scholarship Lottery Act, Ark. Code Ann. § 23-115-101 et seq.
2.07 "Casino license" means a license issued by the Arkansas Racing Commission to conduct casino gaming at a casino.
2.08 "Casino licensee" means any individual, corporation, partnership, association, trust, or other entity holding a license issued by the Arkansas Racing Commission to conduct casino gaming at a casino.
2.09 "Commission" means the Arkansas Racing Commission.
2.10 "EGS Law" means the Local Option Horse Racing and Greyhound Racing Electronic Games of Skill Act, Ark. Code Ann. § 23-113-101 et seq., as amended.
2.11 "Franchise holder" means any individual, corporation, partnership, association, trust, or other entity holding a franchise to conduct horse racing under the Arkansas Horse Racing Law, Ark. Code Ann. § 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
felony offense occurred, and a felony offense which the Commission has by Rule
or Order determined to be a disqualifying felony offense for the issuance of a
casino license, employee license, or for the owners, 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 supervised released, was
completed ten (10) or more years earlier.
3. "Sealed" means expunge, remove, sequester,
and treat as confidential the record or records of a felony offense.
CASINO GAMING APPLICATION, LICENSING, AND RENEWAL
2.13 . License Required
1. No individual, corporation, partnership,
association, trust, or other entity shall conduct casino gaming 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 the Commission 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 entity who
holds the license;
(b) The address
of the individual, corporation, partnership, association, trust, or other
entity who holds the license;
(c)
The effective dates of the license; and
(d) The address of the licensed
casino.
3. Licenses
Available
(a) The Commission shall issue four
licenses to conduct casino gaming at casinos, as follows:
i. The Commission shall issue a casino
license, as provided in the Amendment, to a franchise holder located in
Crittenden County, there being only one, to conduct casino gaming at a casino
to be located at or adjacent to the franchise holder's greyhound racing track
and gaming facility as of December 31, 2017 in Crittenden County.
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 conduct casino gaming at a casino to be
located at or adjacent to the franchise holder's horse racing 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 the purposes of the Amendment;
and
b. Initial laws and
appropriations required by the Amendment being in full force and effect.
Franchise holders at Oaklawn and Southland are not required to submit applications for casino licenses, under these Rules. Each franchise holder shall submit to the Commission a proposed date for the franchise holder to convert from operating under the EGS Law to operating under the Amendment and the Rules adopted by the Commission regulating casino gaming, and subject to the provisions of the Amendment, such date shall be subject to approval by the Commission. If Amendment 100 is amended or repealed in a manner that would restrict or preclude a franchise holder from operating casino gaming thereunder, the franchise holder may by written notice to the Commission elect, subject to approval by the Commission, to convert all or part of its facility and electronic games of skill back to operating 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 to be 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 casino to be located in Jefferson County
within two miles of the city limits of the county seat.
v. No individual, corporation, partnership,
association, trust, or other entity may hold more 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 the Commission on a form and in a manner prescribed by the
Commission. The provisions of 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 of thirty (30) days, beginning on the
date established by the Commission and published as a 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 be
considered based upon the selection processes set out in these Rules.
(d) If no application is received by the
Commission for the casino licenses in Pope County and/or Jefferson County, then
the Commission shall re-open the application process upon 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 are required to demonstrate
experience conducting casino gaming.
(b) All casino applicants for a casino
license in Pope County and Jefferson County are required to submit either a
letter of support from the county judge or a resolution from the quorum court
in the county where the proposed casino is to be located and, if the proposed
casino is to be located within a city or town, are also required to submit a
letter of support from the mayor in the city or town where the casino applicant
is proposing the casino to be located. All letters of support or resolutions by
the Quorum Court, required by these Rules and the Amendment, shall be dated and
signed by the County Judge, Quorum Court members, or Mayor holding office at
the time of the submission 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; and
iv. If an individual, shall not be a county
judge or mayor that provides a letter of support, or a quorum court member that
votes in favor of a letter of support as identified in the Amendment.
(d) Casino applicants shall
provide a complete application with responses for each required item.
6. Documentation and Information
for Non-Franchisor Casino Applicant
(a) The
application for non-franchisor casino licenses shall include without limitation
the following:
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 casino applicant;
vi. If the city, town, or county in which the
casino would be located has enacted zoning restrictions, a sworn statement
certifying that the casino will operate in compliance with the
restrictions;
vii. To establish
proof of no felony convictions, all owners, shareholders, board members, or
officers of the casino applicant shall provide consent to a background check,
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 officers
evidencing that they are over the age of twenty-one; and
ix. Consents for criminal background checks
for each owner, board member, and officer of the casino applicant.
(b) The information and documents
shall be submitted in a method prescribed by the Commission in the notice of
open application.
(c) All
information contained in applications for casino licenses shall remain
confidential until after the deadline for submission of applications. After the
closing date for submission of applications for casino licenses, the Commission
will release, upon request, any information submitted by a casino applicant not
otherwise protected as confidential or proprietary under Arkansas
law.
7. Background
Checks
(a) The following are subject to
background checks conducted by the Commission or its designee 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 disqualified from being an owner, officer or
board member of a casino and be prohibited from having any responsibility for
operating a casino if the person has been convicted of a disqualifying felony
offense.
(c) Each person undergoing
a background check shall provide written consent and all applicable processing
fees to the Commission or its designee to conduct the background check. Each
person shall use Arkansas State Police Form 122, which can be 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 be made payable to the state
of Arkansas, delivered or mailed by certified mail, return receipt 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 initial application fee shall be refunded to
the casino applicant.
(c) An
application is not complete and will not be considered unless all required
information, documentation, and the application fee are timely received by the
Commission.
9. Selection
Process and Criteria Based on Merit Selection
(a) In addition to documentation establishing
minimum qualifications, the casino applicant shall submit responses to the
Commission's merit criteria in a form and manner prescribed by the Commission.
Criterion shall be published with the initial notice of open application. In
addition, representatives of the casino applicant shall appear before the
Commission and the Commission's consultant for an interview regarding the
casino applicant's qualifications and proposal for operating a casino in
Arkansas.
(b) The Commission shall
consider the following criteria based on merit to evaluate applications.
i. Experience conducting casino
gaming;
ii. Timeline for opening a
casino;
iii. Proof of financial
stability and access to financial resources, including but not limited to legal
sources of finances immediately available to begin operating a casino;
and
iv. Detailed summary of
proposed casino including hotel, amenities, projected number of employees, and
any other information the casino applicant deems relevant.
(c) Each merit criterion will be worth a
number of points announced by the commission in the notice of open application
period.
(d) A review panel
comprised of members of the Commission shall evaluate the applications and
award points for each merit criterion. The points shall be totaled for each
application and the applications ranked from the highest total score to the
lowest total score. The Commission shall notify in writing each of the casino
applicants of their 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 from the 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 under the license.
11. Term
(a) A casino license shall expire ten years
after it is issued and is renewable at any time before expiration, unless the
license is:
i. Suspended or revoked by the
Commission; or
ii. 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 the following reasons:
i. Failure to provide the information
required in these Rules;
ii.
Failure to meet the requirements set forth in these Rules;
iii. Providing misleading, incorrect, false,
or fraudulent information with the intent to deceive; and
iv. Receipt of an application evaluation
score lower than the successful casino applicants for a license in the
application period for which the casino applicant applied.
(b) If the Commission denies an application
for or renewal of a license, the Commission shall notify the casino applicant
in writing of the Commission's decision, including the reason for the
denial.
(c) A person or entity
aggrieved by a decision made pursuant to this section is entitled to a hearing
before the Commission and may appeal the Commission's decision pursuant to this
Rule.
13. License
Renewal Process and Fee
(a) A casino license
may be renewed if the casino licensee:
i.
Submits to the commission a renewal application on a form and in a manner
prescribed by the Commission at least six (6) months prior to the expiration
date on the license;
ii. Is in good
standing with the Arkansas Secretary of State's office;
iii. Continues to be in good standing with
the Arkansas Department of Finance and Administration; and
iv. Continues to meet all the requirements
set out in these Rules.
(b) Before renewing a license, the Commission
may require further information and documentation and may conduct additional
background checks to determine that the licensee continues to meet the
requirements of these Rules.
(c)
Within seven days of receiving written notice from the Commission that its
renewal application has been approved, the casino licensee shall pay the
ten-year renewal fee of $10,000.00 in certified funds. Any certified or
cashier's check shall be payable to the state of Arkansas.
(d) A casino licensee whose license is not
renewed shall cease all casino gaming immediately upon expiration of the
license and return the license to the Commission.
(e) Upon the determination that a casino
licensee has not met the requirements for renewal, the Commission shall provide
written notice by certified mail or personal delivery to the casino licensee.
The notice shall provide an explanation for the denial of the renewal
application. The casino licensee is entitled to a hearing before the Commission
pursuant to these Rules.
14. Surrender of License
(a) A casino licensee may voluntarily
surrender its license to the Commission at any time.
(b) If a casino licensee surrenders its
license, the casino licensee shall:
i. Return
the license to the Commission;
ii.
Submit a report to the Commission including the reason for surrendering the
license; contact information following the close of business; the person or
persons responsible for the close of the business; and where business records
will be retained.
15. Change in Information
(a) The casino licensee shall notify the
Commission of any changes in contact information.
(b) The casino licensee shall notify the
Commission in writing no less than fourteen days in advance of any change that
may affect the licensee's qualifications for licensure, and submit to the
commission supporting documentation to prove the casino licensee continues to
be qualified. In the event of a change for which a casino licensee does not
have prior notice, the licensee shall notify the Commission immediately upon
learning of the change.
(c)
Pursuant to section (b), the licensee shall notify the Commission of the
following:
i. The arrest or conviction for any
felony of any individual listed in an application or subsequently identified as
a casino applicant, licensee, or individual with a financial
interest;
ii. The temporary closure
of the casino for any reason for longer than fifteen days;
iii. The permanent closure of the business;
and
iv. Any other change that may
affect the licensee's qualification for licensure.
(d) If the Commission determines that the
change has the potential to disqualify a licensee, the Commission shall conduct
a hearing for adjudication.
16. Transfer of License
(a) Casino licenses shall only be effective
for the individual, corporation, partnership, association, trust, or other
entity identified in the original application.
(b) A casino licensee may not sell, transfer,
or otherwise dispose of its license to another person or entity without
approval from the Commission.
(c) A
casino licensee shall not make any modification to the board members, or
officers as designated in the initial application without approval from the
Commission.
(d) A casino licensee's
failure to obtain approval from the Commission before engaging in ownership
changes described in (b) and (c) above may result in Commission's revocation of
that license.
(e) In order to
obtain approval to transfer ownership of a casino license, the casino licensee
shall submit to the Commission an application for license transferal on a form
and in a manner prescribed by the Commission.
(f) If the Commission denies an application
for transfer of license, the Commission shall provide written notice by
certified mail or personal delivery to the licensee. The notice shall provide
an explanation for the denial of the application. The licensee may request a
hearing before the Commission pursuant to this Rule.
17. Transfer of Location
(a) A casino license shall only be valid at
the location for which it was originally issued by the Commission.
(b) A casino licensee shall not relocate a
casino without prior approval by the Commission.
(c) In order to obtain approval to transfer a
casino license to another location, a casino licensee shall submit to the
Commission an application for license transferal on a form and in a manner
prescribed by the Commission.
(d)
If the Commission denies an application for transfer of location, the
Commission shall provide written notice by certified mail or personal delivery
to the licensee. The notice shall provide an explanation for the denial of the
application. The casino licensee is entitled to a hearing before the Commission
pursuant to this Rule.
18. Appellate Procedure following Denial of
Application for License, Renewal, Transfer of License, or Location.
(a) Denial of Application for License
i. If the Commission denies an application
for a casino license, the casino applicant is entitled to a hearing before the
Commission by filing a written request no later than fifteen (15) days from
receipt of the notice of denial from the Commission. The Commission's decision
may be appealed to the Pulaski County Circuit Court. Appeals shall be governed
by the terms of the Arkansas Administrative Procedure Act, §
25-15-201, et
seq.
(b) Denial of
Application for Renewal of License, Transfer of License or Transfer of Location
i. If the Commission denies an application
for the renewal of a casino license, the transfer of a casino license, or the
transfer of the location for a casino license, the casino licensee is entitled
to a hearing before the Commission by filing a written request no later than
fifteen (15) days from receipt of the notice of denial from the
Commission.
ii. The Commission
shall conduct a hearing no later than sixty (60) days from the receipt of the
request for hearing. The Commission shall provide notice of the hearing to all
interested parties, conduct the hearing, and issue a decision in accordance
with the Arkansas Administrative Procedure Act, §
25-15-201 et
seq.
iii. The Commission's decision
may be appealed to the circuit court of the county in which the casino is
situated or the Pulaski County Circuit Court. Appeals shall be governed by the
terms of the Arkansas Administrative Procedure Act, §
25-15-201, et
seq.
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