§ 3-616 Requirement of licenses for gaming resource suppliers.
A. Gaming resource suppliers, financial sources and any management contractor must have a license from the Gaming Commission in order to transact business with the gaming operation. Contracts for professional legal and accounting services are excluded from this section.
B. Gaming Resource Suppliers.
1. Every gaming resource supplier shall be licensed by the Gaming Commission prior to the sale, lease or distribution, or further sale, lease, or distribution, of any gaming resources to or in connection with the Tribe’s gaming operation or gaming facility. Except as otherwise provided under the tribal-state compact, the gaming resource supplier shall also apply to, and the Tribe shall require it to apply to, the state gaming agency for a determination of suitability at least thirty (30) calendar days prior to the sale, lease, or distribution, or further sale, lease, or distribution, of any gaming resources to or in connection with the gaming operation or gaming facility. If the state gaming agency denies or revokes a determination of suitability, the Gaming Commission shall immediately deny or revoke the license and shall not reissue any license to that gaming resource supplier unless and until the state gaming agency makes a determination that the gaming resource supplier is suitable.
2. Any agreement between the Tribe and a gaming resource supplier shall include a provision for its termination without further liability on the part of the Tribe, except for the bona fide payment of all outstanding sums (exclusive of interest) owed as of, or payment for services or materials received up to, the date of termination, upon revocation or nonrenewal of the gaming resource supplier’s license by the Gaming Commission based on a determination of unsuitability by the state gaming agency. Except as set forth above, the Tribe shall not enter into, or continue to make payments to a gaming resource supplier pursuant to, any contract or agreement for the provision of gaming resources with any person or entity whose application to the state gaming agency for a determination of suitability has been denied or revoked or whose determination of suitability has expired without renewal.
C. Financial Sources.
1. Every financial source subject to (and not excluded from) licensing by the Gaming Commission pursuant to the terms and exceptions included within a tribal-state compact shall, contemporaneously with the filing of its tribal license application, apply to the state gaming agency for a determination of suitability. In the event the state gaming agency denies the determination of suitability, the Gaming Commission shall immediately deny or revoke the license. A gaming resource supplier who provides financing exclusively in connection with the provision, sale or lease of gaming resources obtained from that supplier may be licensed solely in accordance with licensing procedures applicable, if at all, to gaming resource suppliers and need not be licensed as a financial source under a tribal-state compact.
2. Any agreement between the Tribe and a financial source shall be deemed to include a provision for its termination without further liability on the part of the Tribe, except for the bona fide repayment of all outstanding sums (exclusive of interest) owed as of the date of termination, upon revocation or nonrenewal of the financial source’s license by the Gaming Commission based on a determination of unsuitability by the state gaming agency. The Tribe shall not enter into, or continue to make payments pursuant to (except for the bona fide repayment of all outstanding sums (exclusive of interest) owed as of the date of termination), any contract or agreement for the provision of financing with any person whose application to the state gaming agency for a determination of suitability has been denied or revoked or has expired without renewal.
D. Gaming Commission Licensing of Management Contractor Required.
1. A management contractor is a gaming resource supplier and must hold a valid tribal gaming license prior to providing services pursuant to any management contract. Any management contract entered into by the Tribe or Gaming Authority for the operation and management of gaming activities must provide that individuals listed in subsection (D)(1)(a) of this section shall submit to a suitability determination by and licensing requirements of the Gaming Commission. The Gaming Commission may require and obtain the following information:
a. The name, address and other additional pertinent background information on each person including, in cases involving entities, each individual, partner, officer, shareholder, and director comprising such entity having direct financial interest in, or management responsibility for, such management contract; and in the case of a corporation, those individuals who serve on the board of directors of such corporation and each of its shareholders who hold, directly or indirectly, ten percent (10%) or more of its issued and outstanding shares;
b. A complete financial statement of each person listed pursuant to subsection (D)(1)(a) of this section; and
c. Such other information as is necessary for the Gaming Commission to make a licensing decision.
2. Any person listed pursuant to subsection (D)(1)(a) of this section shall be required to respond to such written or oral questions that the Gaming Commission may propound in accordance with its responsibilities under this chapter.
3. The Gaming Commission may require management contractors and potential management contractors to pay a fee as set from time to time to cover the cost of the investigation necessary to reach a suitability determination as required by this chapter.
4. In lieu of conducting its own background investigations, and to the extent that doing so does not conflict with or violate IGRA or this chapter, the Gaming Commission may rely upon determinations referenced in Section 3-606 and NIGC determinations of suitability of individuals associated with a management contractor as evidenced by the approval of the management contract by the Chair of the NIGC.
E. All exemptions and exclusions from suitability or licensure for gaming resource suppliers, gaming employees and financial sources permitted by the tribal-state compact and state gaming agency regulations (as defined in the tribal-state compact) are hereby incorporated herein. Accordingly, any person or entity that would not require mandatory licensure as a licensee under the tribal-state compact shall be exempt from licensure by the Gaming Commission, and in those instances where the Gaming Commission may exclude persons and entities from licensure, the Gaming Commission shall make best efforts to exclude such persons and entities from licensure. (Res. 2019-28)