La. Admin. Code tit. 42 § III-4703
Current through Register Vol. 50, No. 11, November 20, 2024
Section III-4703 - Suitability of Casino OperatorA. The following persons shall demonstrate their suitability and qualification to the board by clear and convincing evidence:3. an affiliate of the casino operator;4. certain holders of debt or equity interest in one or more of the casino operator and its affiliates;5. all other persons, who either alone or in combination with others, have the ability to significantly and directly affect or influence the affairs of a casino operator or casino manager;6. a person with respect to whom a finding of suitability is necessary in order to insure that the policies of the Act and the integrity of gaming operations are protected; and7. any other person that the board, in its sole discretion, directs to demonstrate its suitability and qualifications.B. For the purpose of this Section, any persons holding, owning or controlling a direct or beneficial interest, including any rights created by a counter-letter, option, convertible security or similar instrument, in the following persons shall be presumed to have the ability to significantly and directly influence or affect affairs of a casino operator or casino manager unless the presumption is rebutted by clear and convincing evidence: 1. any persons holding, owning or controlling a 5 percent or more equity interest or outstanding voting securities (including holdings in trust) in a non-publicly traded casino operator, casino manager, holding company or intermediary company of the casino operator or casino manager; or2. any persons holding, owning or controlling a 5 percent or more equity interest or outstanding voting securities or rights in a publicly traded casino operator, casino manager or any publicly traded holding company or intermediary company of the casino operator or casino manager.C. Notwithstanding the provisions in Subsection B of this Section, a holder or owner of a security or other interest that is convertible or exercisable into an equity or ownership interest in a publicly traded holding or intermediary company of the casino operator or casino manager shall not be automatically deemed to have the ability to significantly or directly influence the affairs of the casino operator or casino manager. A holder or owner of a convertible interest shall seek the approval of the board before exercising the conversion rights unless, after conversion, such person will hold, own or control less than 5 percent of the total outstanding equity or ownership interests in the holding or intermediary company of the casino operator or casino manager.D. A person who is a passive institutional investor who does not, directly or indirectly, influence or affect the affairs of the casino operator or casino manager may be presumed suitable if: 1. the person is an institutional investor as defined in the Act; and2. within 60 days of acquiring a 5 percent or greater equity interest in the casino operator, casino manager, or a holding company or intermediary company of the casino operator or casino manager, files a petition with the board that requests a granting of a presumption of suitability and contains a statement that such person does not, and has no intention of, directly or indirectly influencing the affairs of the casino operator or casino manager.E. The provisions of Subsection D of this Section shall not prevent the institutional investor from voting on matters put to vote by the outstanding shareholders.F. The board may in its sole discretion rescind the presumptions of suitability set forth in this section and require any person, including institutional investors, to demonstrate suitability in accordance with the Act and rules.La. Admin. Code tit. 42, § III-4703
Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 38:1687 (July 2012).AUTHORITY NOTE: Promulgated in accordance with R.S. 27:15 and 24.