Current through Register Vol. 56, No. 6, March 18, 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.
