Current through Register Vol. 56, No. 18, September 16, 2024
(a) Except as
otherwise provided in (b) below and
N.J.A.C.
13:69J-1.14B, no casino service industry
enterprise license or ancillary casino service industry enterprise license
shall be issued or considered for resubmission, unless the individual
qualifications of each of the following persons shall have first been
established in accordance with all provisions, including those cited, of the
Act and the rules of the Division. The Division shall apply the following
provisions to both corporate and non-corporate applicants or licensees or, if
that is not possible, the Division will in its discretion apply comparable
standards to non-corporate applicants and licensees.
1. In the case of casino service industry
enterprise licenses issued in accordance with
N.J.S.A.
5:12-92.a(1) and (2):
i. The applicant or licensee;
ii. If the applicant or licensee is, or if it
is to become a subsidiary, each holding company and each intermediary
company;
iii. Each natural person
who directly or indirectly holds any beneficial or ownership interest of five
percent or more of the applicant or licensee;
iv. Each person who directly or indirectly
holds any beneficial or ownership interest of five percent or more of a holding
company or intermediary company of the applicant or licensee;
v. Each director of the applicant or licensee
or of a holding or intermediary company thereof. In the case of an outside
director of a holding or intermediary company, each outside director on the
Executive and Audit Committee;
vi.
Each officer of the applicant or licensee or of a holding or intermediary
company thereof;
vii. The
management employee supervising the regional or local office that employs the
sales representative; and
viii.
Each employee who will act as a sales representative or otherwise regularly
engage in the solicitation of business from casino licensees.
2. In the case of an ancillary
casino service industry license issued pursuant to
N.J.S.A.
5:12-92.a(3):
i. The applicant or licensee;
ii. Each holding company that directly holds
any beneficial or ownership interest of five percent or more of the applicant
or licensee;
iii. Each natural
person who directly or indirectly holds any beneficial or ownership interest of
five percent or more of the applicant or licensee;
iv. Each inside director of the applicant or
licensee;
v. Each officer of the
applicant or licensee;
vi. The
management employee supervising the regional or local office that employs the
sales representative or junket representative soliciting business or dealing
directly with a casino licensee; and
vii. Each employee who will act as a sales
representative or otherwise regularly engage in the solicitation of business
from casino licensees and each junket representative who will deal directly
with casino licensees or their employees.
(b) Notwithstanding (a) above, any of the
following persons may request in writing that the Division waive their
obligation to qualify as part of a casino service industry enterprise license
issuance by making the appropriate showing required in (b)1 through 3 below.
1. If the person is required to qualify as an
officer, the person shall be required to demonstrate that he or she is not
significantly involved in and has no authority over the conduct of business
with a casino licensee. Such request shall include, at a minimum, the
following:
i. A description of his or her
title, duties and responsibilities with the applicant, licensee or with any
affiliate thereof;
ii. The terms of
his or her compensation; and
iii. A
certification by the officer stating that the officer is not significantly
involved in and has no authority over the conduct of business with any casino
licensee or applicant;
2. If the person is required to qualify as an
owner of the applicant or licensee or a holding or intermediary company thereof
and requests a waiver as an institutional investor, the person shall be
required to demonstrate compliance with the standards for institutional
investor status set forth in
N.J.S.A.
5:12-27.1 and
N.J.A.C.
13:69A-5.6B(a), as well as
the standards for waiver set forth in
N.J.S.A.
5:12-85.1.g, as applied to the casino service
industry enterprise applicant or licensee, regardless of whether such applicant
or licensee is publicly traded or privately held. Such request shall include
the certification required pursuant to
N.J.A.C.
13:69A-5.6B(b).
i. For any institutional investor whose
obligation to qualify was previously waived by the Division and is seeking to
apply its previously issued waiver as an institutional investor to a different
casino service industry enterprise applicant or licensee, the institutional
investor shall provide the Division, in a writing from a corporate officer of
the institutional investor, the name and license number of the applicant or
licensee in connection with which the institutional investor's obligation to
qualify was previously waived by Director order, as well as the information
required by
N.J.A.C.
13:69A-5.6B(b) and
(c).
3. If the person is required to qualify as an
owner of the applicant or licensee or of a holding or intermediary company of
the applicant or licensee, the person shall be required to demonstrate their
inability to control such applicant, licensee or holding or intermediary
company. For a publicly traded corporation, any person who owns or beneficially
holds five percent or more of the equity securities of such corporation shall
be presumed to have the ability to control such corporation, unless such
presumption is rebutted by clear and convincing evidence.
(c) Notwithstanding (a) and (b) above, the
Division may require a casino service industry enterprise applicant or licensee
to establish the qualifications of any person, if the Division determines that
the qualification of such person would further the policies of the Act. In
making such determination, the Division shall consider, without limitation, the
following:
1. Title, duties and
responsibilities;
2. Terms of
compensation;
3. Ownership
interest;
4. Prior status as a
qualifier;
5. Ability to appoint a
member of the board of directors;
6. Commonality of interest with other owners
of the applicant or licensee, or holding or intermediary company
thereof;
7. Business relationship
with the applicant or licensee;
8.
Criminal conduct or associations;
9. Role in compliance and association or
affiliation with the applicant company;
10. Role in Internet gaming and association
or affiliation with the applicant company; and
11. Role in sports pools or online sports
pools and association or affiliation with the applicant company.
(d) In addition to the persons
required to qualify pursuant to (a)2 above, each applicant for a junket
enterprise license may be required, upon directive from the Division, to
establish the qualifications of any junket representative affiliated with that
junket enterprise, regardless of whether such junket representative deals
directly with a casino licensee.
1. The
Division may require a junket representative affiliated with a junket
enterprise licensed as an ancillary casino service industry enterprise or
applicant to establish his or her qualifications at any time.
2. Any junket enterprise required to
establish the qualifications of a junket representative pursuant to this
subsection may be required, subject to the provisions of
N.J.A.C.
13:69A-8.6, to pursue a determination as to
the qualifications of the junket representative regardless of whether the
employment relationship with the junket representative has been
terminated.
3. Any person required
to establish his or her qualifications as a junket representative pursuant to
this subsection may be required to pursue a determination as to his or her
qualifications as a junket representative regardless of whether the employment
relationship with the junket enterprise has been terminated.
