Current through Register Vol. 35, No. 18, September 24, 2024
A. Only racetrack gaming operator licensees
are eligible to allocate gaming machines or receive allocated gaming
machines.
B. Gaming machines shall
be allocated only pursuant to a valid allocation agreement. The allocation
agreement must:
(1) specify the number of
gaming machines to be allocated;
(2) specify the terms of the allocation
agreement;
(3) provide that the
allocation agreement confers to the receiving racetrack only the right to
operate the gaming machines;
(4)
establish terms of payment for use of the allocated gaming machines;
(5) specify that the receiving racetrack will
be responsible for payment of the gaming tax and all fees associated with the
licensing of the allocated gaming machines;
(6) specify that the receiving racetrack be
responsible for statutorily required payments based on net take, including
payment of twenty percent of the net take from the allocated gaming machines to
horsemen's purses and one quarter of one percent of the net take to fund or
support programs for the treatment and assistance of compulsive
gamblers;
(7) provide that the
receiving racetrack may not allocate the gaming machines;
(8) specify the party responsible for repairs
and maintenance of the allocated gaming machines;
(9) provide that the allocation agreement
cannot be modified without approval of the board and the New Mexico racing
commission; and
(10) provide that
the allocation agreement shall not become effective until approved in writing
by the board and the New Mexico racing commission.
C. No allocation agreement shall cause the
number of gaming machines on the licensed premises to exceed the number
authorized by the act.
D. The board
shall take action on a proposed allocation agreement at a public meeting of the
board. The board may disapprove any allocation agreement if the board
determines that:
(1) the allocation agreement
fails to meet the minimum requirements described in this section;
(2) the allocating racetrack or receiving
racetrack is not in compliance with minimum internal controls or other
statutory requirements or board rules;
(3) the proposed allocation would otherwise
be contrary to the public health, safety and welfare.
E. Movement of any allocated machine is
subject to notice requirements established by board rules and
procedures.
