Code of Massachusetts Regulations
205 CMR - MASSACHUSETTS GAMING COMMISSION
Title 205 CMR 11.00 - Rules And Regulations Regarding The Distribution Of Funds To Purse Accounts Of Licensees
Section 11.05 - Determining Purse Account Distributions to Each Licensee

(a) The Relative Needs for Increased Purses of Each Licensee - 30 Points. Relative needs for increased purses of each licensee is defined as the actual amount paid for purses by each licensee during the meet / calendar year for which the distribution will be made. Each licensee must submit an affidavit attesting to the amount of purses actually paid. All purse accounts are subject to audit by the commission.

(b) The Number of Live Racing Days Conducted by Each Licensee - 10 Points. Number of live racing days is defined as the actual number of live performances conducted during the meet / calendar year for which the distribution will be made. Each licensee must submit an affidavit attesting to the number of live racing days. The commission also maintains this data.

(c) The Amount of Live Racing Handle of Each Licensee - 10 Points. The amount of live racing handle is defined as the amounts wagered on site at live racing performances (including account wagering and host pools) of each licensee during the meet / calendar year for which the distribution will be made. Each licensee must submit an affidavit attesting to the amount of live account wagering host pool racing handle. The commission also maintains this data.

(d) The Total Amount of Employment, Both Direct and Indirect, Attributable to Each Licensee - 10 Points. The total amount employment, direct and indirect, is defined as the number of employees who have or will have received a Form W-2 and / or Form 1099 MISC for the calendar year for which the distribution will be made. In addition, indirect employment may include people who work at the licensee's facility but not employed by the licensee. These people include sub-contract concession employees, security, maintenance, tote company staff and backstretch workers. Each licensee must submit an affidavit attesting to the numbers of employees, direct and indirect. This data must be supported by Forms W-2 and / or Form 1099 MISC filed or to be filed, a list of people with occupational licensed issued other than those who receive a W-2 of 1099.by the commission and / or statements from sub-contract companies as to the number of employees assigned to that facility. This data is subject to audit by the commission.

(e) Each Licensee's Total Payroll - 10 Points. The Licensee's Total Payroll Is Defined as the Total Remuneration Paid to Employees of the Licensee Who Had Received or Will Have Received a Form W-2. Each Licensee must Submit an affidavit attesting to the total remuneration paid to employees. This data is subject to audit by the commission.

(f) Capital Investments Made by Each Licensee - 10 Points. Capital investments made by the licensee are defined as equity as reported on the most recent audited balance sheet. Equity of the licensee is the difference between total assets and total liabilities and may be reported as stockholders equity for a corporation, members capital for a limited liability company or net assets for a not for profit company. Each licensee must submit an affidavit attesting to capital investment and that amount must be consistent with audited financial statements. This data is subject to audit by the commission.

(g) The Amount of Tax Revenue and Other Revenues Payable to the Commonwealth - 10 Points. The amount of tax revenue and other revenues payable to the commonwealth is defined as the total Massachusetts income tax withheld from employees, Massachusetts sales taxes paid to the commonwealth for calendar year for which the distribution will be made and Massachusetts corporate taxes actually paid or payable for the most recent fiscal year. Each licensee must submit an affidavit attesting to the amounts paid to the commonwealth. Amounts reported must be supported by appropriate source documents such as Forms W-2, M941, sales tax remittance forms, and income tax returns. This data is subject to audit by the commission.

(h) Total Pari-mutuel Tax Revenue Generated and Payable to the Commonwealth by Each Licensee - 10 Points. Total pari-mutuel tax revenue generated and payable to the commonwealth is defined as state commissions, assessments, association license fees, occupational license fees, fines, penalties and miscellaneous revenues, other than unclaimed wagers, paid to the commission and deposited in the separate account under the control and supervision of the commission during the meet / calendar year for which the distribution will be made. Each licensee must submit an affidavit attesting to pari-mutuel revenue paid to the commonwealth. The commission also maintains this data.