(1)
General. An
applicant for a Category 1 or Category 2 license must demonstrate that it has
the financial stability to construct and operate a gaming
establishment.
(2)
Phase 1 Financial Stability Standards. In determining
whether an applicant is financially stable at the time of the Phase 1
determination, the bureau and the commission shall review the Phase 1
application in accordance with the following standards:
(a) The ability to maintain a typical gaming
establishment payroll and equivalent provisions adequate to pay winning wagers
to gaming establishment patrons when due.
(b) The ability to meet ongoing operational
expenses which are essential to the maintenance of continuous and stable gaming
establishment operations.
(c) The
ability to pay, as and when due, all local, state and Federal taxes, including
the taxes and other fund payments imposed by M.G.L. c. 23K.
(d) The ability to make necessary capital and
maintenance expenditures in a timely manner which are adequate to ensure
maintenance of a superior, first-class facility of exceptional
quality.
(e) To the extent known at
the time, the ability to pay, exchange, refinance, or extend debts, including
long-term and short-term principal and interest and capital lease obligations,
which are expected to mature or otherwise come due and payable during the
license term, or to otherwise manage such debts and any default with respect to
such debts.
(f) Any other relevant
matters that the commission may deem appropriate for evaluation.
(g) The bureau and commission may also
evaluate the applicant's historic gaming industry or commercial performance, if
any, that are relevant to the criteria set forth in 205 CMR
117.01(2).
(3) Any
finding of financial stability for purposes of the Phase 1 determination of
suitability, shall not be binding on any finding of financial stability for
purposes of any Phase 2 determination of suitability by the bureau or the
commission.
