Current through September 24, 2024
(a) A licensee who has been granted
continuous approval for involvement in foreign gaming is exempt from compliance
with preliminary approval and final approval, unless otherwise required by the
Commission.
(b) An application for
continuous approval for involvement in foreign gaming shall be:
1. Made on such forms as may be prescribed by
the Executive Director;
2.
Accompanied by an application fee of four thousand dollars ($4,000.00), the
applicant shall pay the cost of any additional investigation as required by the
Executive Director; and
3. Be
supplemented by such information as the Executive Director may
request.
(c) By filing
the application, the licensee agrees:
1. To
conduct any foreign gaming operations in accordance with the standards of
honesty and integrity required for gaming activities in this state;
2. That foreign gaming operations will be
lawfully conducted in the foreign jurisdiction, and that the licensee's
involvement will pose no threat to gaming control in Mississippi; and
3. To utilize an effective accounting system
in the foreign jurisdiction which is designed to prevent the employment of
techniques to avoid payment of Mississippi license fees and taxes.
(d) The Commission shall consider
all relevant information in determining whether to grant continuous approval
including, but not limited to, the following:
1. The business history of the applicant,
including its record of financial stability, and the integrity, duration, scope
and success of its operations in Mississippi and elsewhere;
2. The current business activities and
investments of the applicants and its gaming affiliates;
3. The current financial status and structure
of the applicant, both within and without Mississippi, including historical and
perspective balance sheets and statements of operation for business activities
in Mississippi and other jurisdictions, key financial statistics such as debt
to equity ratios and other financial data;
4. The regulatory history of the applicant
and its affiliates in Mississippi and in foreign jurisdictions;
5. The availability and accessibility in
Mississippi of information regarding the Mississippi operation and any foreign
operation;
6. The extent of
personnel capable of managing both the Mississippi operation and the foreign
operation;
7. Whether a foreign
gaming operation will create an significant risk that the applicant or its
gaming affiliates will not satisfy their financial obligations as they become
due; and
8. Whether a foreign
gaming operation will create a significant risk that the applicant or its
affiliates will not satisfy all financial and regulatory requirements imposed
by the laws of Mississippi and the regulations of the Commission.
(e) The Commission may grant
continuous approval to participate in foreign gaming for a period of up to two
(2) years and may impose whatever conditions upon a continuous approval to
participate in foreign gaming operations it deems reasonable.
(f) A licensee who has received continuous
approval to participate in foreign gaming must continuously and promptly inform
the Executive Director of each and every material action or step taken
concerning a specific transaction, leading up to the execution of a definitive
agreement for the conduct of foreign gaming.
(g) After receiving continuous approval, a
licensee intending to commence foreign gaming operations shall notify the
Executive Director of his intent as soon as practicable, but in no event later
than forty-five (45) days before actual commencement of the operations and
shall provide documentation related to such proposed operation that must
include in addition to any other information required by the Executive
Director:
1. The information required by
Mississippi Gaming Commission Reg II, L, Section 2 (c) and (d);
2. A complete description of the dealings or
arrangements between the applicant, affiliates and unaffiliated parties or
foreign governments; and
3. A
complete description of sources of financing for the proposed
venture.
(h) Upon
commencement of foreign gaming operation in each jurisdiction, the licensee
shall:
1. Engage the services of an
independent public accounting firm of good standing and reputation to perform a
certified audit, or reasonable equivalent, of the foreign gaming operation for
the purpose of rendering an opinion;
2. Submit an annual operational and
regulatory status report specifically addressing regulatory compliance, audit
procedures and surveillance procedures relating to the foreign gaming
operation;
3. Report to the
Executive Director within thirty (30) days after the end of each quarter
regarding the occurrence or absence of the following:
i. Any changes in ownership or control of any
interest in the subject foreign gaming operation;
ii. Any changes in officers, directors or key
personnel earning at least one hundred thousand dollars ($100,000) or more, or
its equivalent;
iii. All
gaming-related complaints, disputes, orders to show cause and disciplinary
actions instituted by the foreign jurisdiction. This must include, but not be
limited to, all matters, contested or not, in which a gaming regulatory agency
presides or is a party thereto;
iv.
All arrests made of employees of the foreign affiliate of the licensee
involving gaming cheating or theft in the foreign jurisdiction. The report must
include the name, position, charge, arresting agency and a brief description of
the event; and
v. All arrests or
convictions of officers, directors, key employees and equity owners of the
licensee's affiliate in the foreign jurisdiction, regarding offenses which
would constitute a gross misdemeanor or felony in the State of Mississippi. The
report must include the name, position, charge, arresting agency and a brief
description of the event.
4. Comply with any additional reporting or
other requirements as may be imposed by the Commission;
5. File with the Executive Director copies of
annual audited financial statements of the foreign gaming operation;
6. Provide to the Executive Director access
to all files, books, records, photographs and memoranda related to the foreign
operations and provide copies of said documents when requested, and provide
immediate access to all gaming-related areas to the Executive Director or his
representative upon request; and
7.
The Executive Director may, in his sole discretion and at the applicant's
expense, employ an independent public accounting firm to make observations of
the foreign gaming operation and to render a report to the Executive Director;
and may conduct, at the expense of the licensee, other on-site inspections of
the foreign gaming operation.
(i) Unless otherwise ordered by the
Commission, the Executive Director may issue an interlocutory stop order. The
stop order may be issued for any cause deemed reasonable by the Executive
Director. If a stop order is issued by the Executive Director pursuant to the
provisions of this regulation, the Commission shall, upon request of the person
that is the subject of the order, conduct a hearing on the merits of the matter
no later than its next regular meeting for which notice of the hearing is
practicable.
(j) The Commission may
revoke, suspend, condition, limit or restrict any approval granted pursuant to
this section. A continuous approval shall not apply to any jurisdiction which
by law would prohibit the Executive Director and commission access to the
books, records, documents, files, photographs, exhibits, memoranda or other
records of the foreign affiliate; or to any gaming operation which is unlawful
or which in any manner violates any federal, state, county or local law, statue
or regulation. (Adopted: 12/30/1992.)
Miss. Code Ann.
§§
75-76-251,
75-76-253,
75-76-273
