Did you know… There are specific statutory requirements in The Gaming Act for a gaming applicant to be deemed suitable. What are those requirements?

On July 11, 2013, the Commission begins the suitability determination process. The Commission will begin that process with the slots-parlor applicants. Today the Commission will discuss PPE Casino Reports MA LLC (Cordish) and Mass Gaming and Entertainment LLC (Rush). MassGaming’s Investigation and Enforcement Bureau continue to conduct extensive background investigations on every applicant and today will present findings to  commissioners and make a recommendation on the above applicants. With more than 300 qualifiers and 21,000 pages of documents, investigators continue to be steadfast in their efforts to complete the background investigations and meet the statutory requirements to determine an applicant’s suitability as it pertains to finance and integrity.

In order to achieve Phase I suitability, an applicant for a casino gaming license and any person or entity deemed a qualifier pursuant to M.G.L. c.23K §14 and 205 CMR 116 et seq must provide all required application materials set forth in 205 CMR 111 relevant to Phase I evaluations, as well as satisfy the relevant statutory suitability criteria as set forth in M.G.L. c.23K §12 and §16 of the Act.  The standard for satisfaction of the suitability criteria requires each applicant/qualifier to establish its qualification for licensure to the commission by clear and convincing evidence (M.G.L. c.23K §13(a)).  The various statutory criteria with appropriate annotations are listed below. For more information about Phase 1 suitability requirements, please see below:

RELEVANT PHASE 1 STATUTORY CRITERIA

  • Has applicant/qualifier been convicted of a felony or other crime involving embezzlement, theft, fraud or perjury? M.G.L. c.23K §16(a)(i)
  • Has the applicant/qualifier submitted an application for a gaming license which contains false or misleading information? M.G.L. c.23K §16(ii)
  • Has the applicant/qualifier committed prior acts which have not been prosecuted or in which the applicant/qualifier was not convicted but form a pattern of misconduct that makes the applicant unsuitable for a license under this chapter? M.G.L. c.23K §16(iii)
  • Does the applicant/qualifier have affiliates or close associates that would not qualify for a license or whose relationship with the applicant may pose an injurious threat to the interests of the Commonwealth in awarding a gaming license to the applicant? M.G.L. c.23K §16(iv)
  • Does the applicant/qualifier demonstrate integrity, honesty, good character and reputation? M.G.L. c.23K §12(a)(1)
  • Does the applicant/qualifier demonstrate financial stability, integrity and background? M.G.L. c.23K §12(a)(2)
  • Do the business practices and the business ability of the applicant/qualifier demonstrate the capacity to establish and maintain a successful establishment? M.G.L. c.23K §12(a)(3)
  • Does the applicant/qualifier have an adverse history of compliance with gaming license requirements in other jurisdictions? M.G.L. c.23K §12(a)(4)
  • Is the applicant/qualifier a defendant in litigation involving its business practices? M.G.L. c.23K §12(a)(5)
  • Are all the parties in interest, including, but not limited to affiliates, close associates and financial sources suitable to hold or participate in the gaming license? M.G.L. c.23K §12(a)(6)
  • Is the applicant/qualifier disqualified from receiving a license under M.G.L.c.23K section 16? M.G.L. c.23K §12(a)(7)
  • Has the applicant/qualifier failed to establish their integrity or the integrity of any affiliate, close associate, financial source or any person required to be qualified by the commission? M.G.L. c.23K §12(b)(i)
  • Has the applicant/qualifier failed to demonstrate responsible business practices in any jurisdiction? M.G.L. c.23K §12(b)(ii)
  • Has the applicant/qualifier failed to overcome any other reason, as determined by the commission, as to why it would be injurious to the interests of the Commonwealth in awarding the applicant a gaming license? M.G.L. c.23K §12(b)(iii)
  • Has applicant/qualifier made any political contributions prohibited by M.G.L. c.23K? M.G.L. c.23K §46, §47 and 205 CMR 108

 

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