16- 633 C.M.R. ch. 2, § 3

Current through 2024-51, December 18, 2024

Section 633-2-3 - Application - Slot Machine Distributor

1. An applicant for a license to act as a Slot Machine Distributor shall apply on forms specified by the Board. In addition to any information required by statute, application forms may require the applicant to provide the following:

A. The applicant's legal name, form of entity, the names, addresses, employer identification or social security numbers (if applicable) and dates of birth (if applicable) of its directors, officers, partners, owners, and key executives and slot machine operations employees.

B. A description of the applicant's organizational structure. This will include an organizational chart listing key applicants and positions being held for gaming operations along with their duties and responsibilities.

C. With respect to any persons named in subparagraph (A) that are not individuals, the names, addresses, social security numbers, and dates of birth of all individuals who are directors, officers, owners, partners, key executives, or slot machine operations employees of any such persons.

D. The percentages of shares of stock, if any, held by each person named in subparagraph (A) or subparagraph (C) above. The Director may, at his or her discretion, cause periodic reexamination of the percentage of shares held by persons subject to such disclosures under these regulations.

E. The names of all persons principally involved in the original creation of the applicant's enterprise.

F. Responses to questions designed to elicit information necessary for the Board to evaluate the qualification and suitability of the applicant pursuant to 8 M.R.S.A. Chapter 31, Section 1016, subsection 2.

G. Certified copies, including amendments, of the applicant's charter, bylaws, articles of incorporation, articles of organization, partnership agreement, including the amount and date of each capital contribution of any partner to the applicant, trust agreement, and other documents that document or explain the legal organization of the applicant.

H. Certified copies of organizational minutes and/or other corporate records reflecting ownership and the election of officers.

I. The information required by subparagraph (A) above as to any operator of any business conducted by such applicant and any other contractor (which is not a publicly traded entity) utilized by such applicant which has received compensation from such applicant in excess of $100,000 for gambling-related services in any of the three (3) preceding fiscal years together with a copy of all agreements between such applicant and such operator or contractor and a statement of all compensation paid to such operator or contractor during said three-year period.

J. Copies of the applicant's audited financial statements for the preceding three (3) fiscal years and a copy of internally prepared financial statements for the current fiscal year as at the close of the most recent fiscal quarter.

K. If a corporation, biennial reports and SEC filings, if any, for past 3 years and meeting minutes from past 12 months.

L. Copies of the applicant's State and Federal tax returns for a period of three (3) fiscal years.

M. Copies of the declaration pages of all insurance policies insuring the applicant.

N. A copy of the Certificate of Authority to do business in the state of Maine, if incorporated outside of Maine.

O. Copies of any Trade Name Registrations filed by the applicant.

P. The information required by subparagraph (A) above as to the ten (10) largest unsecured creditors which are not publicly traded entities or accounting firms or legal firms of the applicant who are owed more than $25,000 by the applicant for a period in excess of sixty days.

Q. Any and all other information as the Director may require to determine the competence, honesty and integrity of the applicant as required by 8 M.R.S.A. Chapter 31, Section 1016.

R. The identity of all customers to whom the applicant has furnished slot machines or other gambling equipment or technology within the three years immediately preceding the date of the application.

S. A description of the means by which the applicant exercises security and financial control over the activities of service technicians in order to insure the integrity of slot machine distribution.

T. The names and addresses of individuals who have been authorized by the applicant to engage in dealings with the Board for purposes of representing the interests of the applicant.

U. A description of the applicant's business and a list of the makes and types of machines to be distributed.

2. The application, as well as other documents submitted to the Board by or on behalf of the applicant for purposes of determining the qualifications of the applicant, shall be sworn to or affirmed before a notary public. If any form or document is signed by an attorney for the applicant, the signature shall certify that the attorney has read the forms or documents and that, to the best of his or her knowledge, information and belief, based on diligent inquiry, the contents of the form or documents so supplied are true.

3. To the extent, if any, that information of a material nature in the application or the supplemental information provided by the applicant becomes outdated, inaccurate or incomplete, the applicant shall notify the Board in writing as soon as it is aware that the information is outdated, inaccurate or incomplete, and shall at that time supply the information necessary to make the application or supplementary information current, accurate and complete.

4. The applicant shall cooperate fully with the Board and the Department in any background investigation of the applicant.

5. The applicant, upon request of the Board or Department, shall make any and all of its books and records available for inspection by the Board or the Department.

6. As soon as the Director has determined that the application is complete, it shall forward same to the Department which shall undertake and complete the background investigation of the applicant, its officers, directors, partners, owners, key executives. It will report its findings to the Board within six (6) months or such longer time as agreed by the applicant or as determined by the Board to be necessary for completion of the investigation due to circumstances documented by the Department.

7. The Board shall weigh the following factors in evaluating the application:

A. Whether the applicant satisfies the criteria outlined in 8 M.R.S.A. Chapter 31 Section 1016.

B. The extent to which, if any, the applicant would be subject to the control or influence of its activities by any person having a financial interest pertaining to the applicant, including a mortgage or other lien against property of the applicant or, who in the opinion of the Board, might otherwise influence its activities. In such case the Director shall consider the character, honesty and integrity of whoever has the ability to control or influence the activities of the applicant.

C. The degree to which the applicant has demonstrated its ability to finance the proposed slot machine distribution, as well as the source of such financing.

D. The degree to which the applicant has supplied accurate and complete information pursuant to the requirements of this rule.

E. The extent to which the applicant has cooperated with the Board and the Department in connection with the background investigation.

F. Whether the person, or any of its officers, directors, partners, owners, key executives, or slot machine distribution employees are known to associate with persons of nefarious backgrounds or disreputable character.

G. With respect to any past conduct which may adversely reflect upon the applicant, the nature of the conduct, the time that has passed since the conduct, the frequency of the conduct and any extenuating circumstances that affect or reduce the impact of the conduct or otherwise reflect upon the applicant's fitness for the license.

H. Any other information before the Director, including substantially similar background investigations performed by other agencies or jurisdictions, that relate to the applicant's competency, financial capability, honesty, integrity, reputation, habits, or associations.

16- 633 C.M.R. ch. 2, § 3