Amendment 35

Budget Amendment ID: FY2012-S3-35

OTH 35

Promoting Economic Development

Mr. Pacheco moved that the proposed new text be amended by inserting after, SECTION__, the following new section: -

“SECTION __. The General Laws are hereby amended by inserting after chapter 128C the following chapter:— Chapter 128D. The Massachusetts Gaming Control Act. Section 1. General Provisions.

(a) This chapter shall be known and may be cited as the “Massachusetts Gaming Control Act.”

(b) No applicant for a license or other affirmative approval within the scope of this chapter has any property or other right to a license or to the granting of the approval sought. Any license issued or other approval granted pursuant to this chapter is a fully

revocable privilege, and no holder acquires any vested right therein or thereunder.

(c) Nothing in this chapter shall preclude any city or town in the commonwealth from prohibiting gaming, from imposing any local controls or conditions upon gaming, from inspecting premises to enforce applicable laws, or from imposing any fee or tax otherwise authorized, provided any prohibition, control, condition, inspection, tax, or fee is not inconsistent with this act, or the laws of the United States.

(d) In the event of any conflict between the provisions of this chapter and the provisions of any other general or special law, or local ordinance, the provisions of this chapter shall prevail.

Section 2. Definitions.

The following words as used in this chapter shall, unless the context clearly requires otherwise, have the following meanings:

(a) “Affiliate,” any person that a licensee or applicant directly or indirectly controls or in which an applicant or licensee possesses an interest. For the purposes of this definition, “controls” means either (i) directly or indirectly holding more than ten percent (10%) of voting membership rights or voting stock or partnership interests, or (ii) that a majority of the directors, general partners, trustees, or members of an entity’s governing body are

representative of, or are directly or indirectly controlled by, the licensee or applicant. For the purposes of this definition, “possesses an interest in” means either (i) directly or indirectly holding more than (5%) of voting membership rights or voting stock, or

(ii) that at least twenty-five percent (25%) of the directors, general partners, trustees, or members of an entity’s governing body are representatives of, or are directly or indirectly controlled by, the licensee or applicant;

(b) “Applicant,” a person who has applied for a gaming license, work permit, or approval of any act or transaction pursuant to this chapter;

(d) “Commission,” the Massachusetts gaming control commission;

(e) “Controlled game,” or “controlled gaming,” any game of chance, or skill, or both, played for currency, check, credit, or any other thing of value, and including electronic gaming devices and games classified as class II or class III gaming under the Indian

Gaming Regulatory Act, 25 U.S.C. § 2701 et seq., but excluding:

(1) The game of bingo conducted pursuant to chapter two hundred and seventy-one;

(2) Parimutuel wagering on horse and dog races, whether live or simulcast, authorized under G.L. c. 128A and G.L. c. 128C;

(3) Any lottery game conducted by the state lottery commission, in accordance with G.L. c. 10, § 24.

(4) Games played with cards in private homes or residences in which no person makes money for operating the game, except as a player.

(f) “Electronic Gaming Device,” means any game of chance mechanical, electronic or otherwise featuring coin drop and payout as well as printed tabulations, whereby the software of the device predetermines the presence or lack of a winning combination

and payout; also microprocessor-controlled electronic devices that allow a player to play games of chance, which may be affected by an element of skill, activated by the insertion of a coin or currency or by the use of a credit and awards game credits, cash, tokens, replays or a written statement of the player’s accumulated credits, which written statements are redeemable for cash; and including slot machines, video lottery terminals and video facsimile machines of any type;

(g) “Establishment,” any building, room, place or other indoor or outdoor premises where any controlled gaming occurs, including all public and non-public areas of any such establishment;

(h) “Executive Director,” the executive director of the bureau;

(i) “Gaming,” to deal, operate, carry on, conduct, maintain, or expose for play any controlled gaming;

(j) “Gaming equipment,” any equipment, device, object or contrivance, or machine, whether mechanical, electromechanical, or electronic, which is specifically designed or manufactured for use in the operation of gaming;

(k) “Gaming license,” or “license,” any license or work permit issued by the commission under this chapter that authorizes the person named therein to engage or participate in controlled gaming or to operate electronic gaming devices, including work

permits and licenses issued to gaming establishments, to gaming suppliers, to parties in interest, and to officers and directors of licensed persons or entities;

(l) “Gaming operation,” one or more controlled game that is operated, carried on, conducted, maintained, offered or exposed for play;

(m) “Gaming establishment,” any establishment licensed to conduct a gaming operation in the commonwealth under this chapter;

(n) “Gaming services” means providing services or goods to any licensed gaming establishment directly in conjunction with the operation of gaming, including security services, training activities, promotional services, printing or manufacture of betting

tickets and manufacture, distribution, maintenance, testing or repair of electronic gaming devices, or any person who furnishes

goods or services pursuant to which the person receives payments

based on earnings, profits or net receipts from gaming;

(o) “Holding company,” any corporation, firm, partnership,

trust, or other entity that, directly or indirectly, owns, has the

power or right to control, or holds with power to vote, all or any

part of the partnership interests or outstanding voting securities of

a corporation or any other business entity that holds or applies for

a gaming license. In addition, a holding company indirectly has,

holds, or owns any power or right mentioned herein if it does so

through any interest in a subsidiary or affiliate or successive subsidiaries

or affiliates, however many of these subsidiaries or affiliates

may intervene between the holding company and the

corporate licenses or applicant;

(p) “Intermediary company,” any corporation, firm, partnership,

trust, or other entity, other than a natural person, that is both of the

following:

(1) A subsidiary with respect to a holding company, and

(2) A holding company with respect to a corporation or limited

partnership or other entity that holds or applies for gaming

license;

(q) “Licensed operator,” any operating entity that conducts a

controlled gaming operation within a gaming establishment pursuant

to a license or licenses issued under this Act.

(r) “Licensed premises,” the premises upon which is located a

gaming establishment pursuant to a license issued to a licensed

operator;

(s) “Licensee,” any person or party holding, or purporting to

hold, a valid gaming license under this chapter;

(t) “Net gaming revenue,” the total, prior to the deduction of

any operating, capital or other expenses whatsoever, of all gaming

revenue retained by any gaming establishment licensed under this

chapter derived from the conduct of any controlled game;

(u) “Operating entity,” any person who conducts a gaming

operation;

(v) “Party in interest,” any corporation, firm, partnership, trust,

or other entity or person with any direct or indirect pecuniary

interest in a licensed gaming establishment, or a person who owns

any interest in the premises of a licensed gaming establishment, or

land upon which such premises is licensed, whether he leases the

property directly or through an affiliate;

(w) “Person” or “party,” a natural person, corporation, partnership,

limited partnership, trustee, holding company, joint venture,

association, or any business entity;

(x) “Racing meeting licensee,” the running horse racing

meeting licensee in Suffolk County, harness horse racing meeting

licensee in Norfolk County, and dog racing meeting licensees in

Suffolk and Bristol Counties licensed by the State Racing Commission

pursuant to G.L. c. 128A, as amended, to conduct

parimutuel racing during calendar year 2009, or their respective

assigns; provided, however, that the two dog racing meeting

licensees in Bristol County shall be deemed one for all purposes

of this act; and, further, excluding any licensees of racing meetings

held or conducted in connection with a state or county fair.

(y) “Substantial party in interest,” any person holding a greater

that one percent (1%) direct or indirect pecuniary interest,

whether as owner, mortgagee or otherwise, in an operating entity,

premises, or any other licensee or applicant;

(z) “Work permit,” any permit issued by the commission authorizing

the holder to be employed as an employee in a licensed

gaming establishment.

Section 3. Gaming Control Commission; Composition, Powers

& Duties.

(a) There shall be established a Massachusetts gaming control

commission consisting of five members. Each member shall be a

citizen of the United States and a resident of the commonwealth.

No officer or official of any political party, nor any person who

was formerly a licensee or an unlicensed employee of a gaming

licensee within the five years prior to any appointment shall be

eligible for appointment to the commission. No person actively

engaging or having a direct pecuniary interest in gaming activities

shall be a member of the Commission. Not more than three members

of the Commission shall be of the same major political party

affiliation. The governor shall appoint one member of the Commission

and designate one member to serve as chairman of the

Commission. The attorney general of the commonwealth shall

appoint one member of the Commission. The auditor of the commonwealth

shall appoint one member of the Commission. The

Secretary of State shall appoint one member of the Commission.

(b) The term of office of each member of the Commission shall

be five years except that, of the members initially appointed, one

shall be appointed by the governor for a term of five years, one

shall be appointed by the attorney general for a term of four years,

one shall be appointed by the governor for a term of three years,

one shall be appointed by the auditor for a term of two years, and

one shall be appointed by the Secretary of State for a term of one

year. After the initial term the term of office for each member of

the Commission is five years, provided that no member shall serve

more than two consecutive terms of five year periods. Any vacancies

shall be filled by the original appointing authority within

sixty days of the occurrence of such vacancy. Any appointee shall

continue in office beyond the expiration date of his term until the

appointment of a successor but in no event longer than six

months. Any Commissioner may be removed by his appointing

authority for just cause, and shall be suspended, without pay, upon

indictment for any felony. Any person so suspended shall be

removed upon conviction. Any person so suspended and later

acquitted of any such felony shall be reinstated to the commission

upon such acquittal, with full back pay.

to the business of the commission as is necessary to discharge

their duties; provided, however, the chairman shall devote his or

her full time during normal business hours to the business of the

commission. The members of the commission shall be compensated

for work performed for the commission at ninety thousand

dollars per annum, with the chairman receiving ten thousand dollars

per annum in additional compensation. Commission members

shall be reimbursed for travel and other expenses necessarily

incurred in the performance of official duties. Before entering

upon the duties of the office each member shall swear that he is

not pecuniarily interested in, or doing business with, any person

holding a gaming license and shall submit to his appointing

authority and to the state ethics commission a statement of financial

interest required by chapter two hundred sixty-eight B of the

general laws.

(d) Except as otherwise provided herein, meetings of the commission

shall be subject to the provisions of section eleven A and

eleven A and one-half of chapter thirty A of the General Laws. A

majority of the membership of the commission shall constitute a

quorum of the commission. A public record of every vote shall be

maintained at the commission’s general office.

(e) The commission shall conduct hearings in accordance with

the provisions of chapter thirty A, provided, however, that clause

three of section eleven of chapter thirty A shall not apply. The

commission may issue subpoenas for the attendance of witnesses

or the production of any records, books, memoranda, documents,

or other papers, or things, at or prior to any hearing as is necessary

to enable the commission to discharge its duties, and may

administer oaths or affirmations as necessary in connection therewith.

The commission may petition the superior court for an

order requiring compliance with any subpoena at issue.

(f) The commission may retain legal, investigative, clerical and

other assistance as may be necessary.

(g) The commission may require any person to apply for a

license as provided in this chapter and approve or disapprove any

such application or other transactions, events, and processes as

provided in this chapter. Any application to receive any license

under this chapter shall constitute a request for a determination of

the applicant’s general character, integrity, and ability to participate

or engage in, or be associated with, gaming.

(h) The commission shall make an annual report of its activities

to the general court by March 31, for the prior calendar year.

(i) The commission may grant or deny any application for a

license or approval; may limit, condition, restrict, suspend, or

revoke any license or approval for any cause deemed reasonable

by commission, consistent with this chapter or any general or

special law. The commission may, in its discretion, issue a probationary

gaming license. No gaming license may be assigned

either in whole or in part.

(j) As provided in commission regulations, the commission

may impose a fine or penalty or interest on such fine or penalty,

upon any gaming licensee, for violation of this chapter. The commission

may approve or disapprove transactions, and events as

provided in this chapter, take actions reasonably designed to

ensure that no unsuitable persons are associated with controlled

gaming, and take actions reasonably designed to ensure that

gaming activities take place only in suitable premises.

(k) The commission shall, pursuant to sections two and three of

chapter thirty A of the general laws, promulgate regulations necessary

to carry out the powers and the provisions of this chapter,

and specifically shall promulgate regulations as to the following

matters:

(1) the licensing of gaming establishments, including regulations

relating to the types of establishments, application process,

background checks, license fees, bonding requirements, and revocation

and suspension of licenses;

(2) the licensing of gaming suppliers, including regulations

relating to the application process, background checks, license

fees, bonding requirements, and revocations and suspension of

licenses;

(3) the licensing of parties in interest, including regulations

relating to the application process, background checks, license

fees, bonding requirements, and revocation and suspension of

licenses;

(4) the issuance of one or more classes of work permits,

including regulations relating to the application process, background

checks, fees, and revocation and suspension of work permits;

(5) the licensing of all officers and directors of any entity which

holds or applies for a license under this chapter, including regulations

relating to application process, background checks, licensee

fees, and revocation and suspension of licenses; and regulations

requiring that, if in the judgment of the commission the public

interest will be served by requiring any of the individual stockholders,

key executives, agents or other employees of any entity

which holds or applies for a license under this chapter to be

licensed, such individuals apply for a license under this paragraph;

(6) the monitoring of licensees to ensure compliance with this

chapter and the regulations promulgated thereunder;

(7) the presentation and/or display of all licenses and work permits;

(8) the registration of non-gaming suppliers;

(9) the method for collecting any fines, fees, penalties and

interest imposed by the commission;

(10) the method and standards of operation of licensed gaming

establishments including, but not limited to, games, the type and

manner of gaming, wagering limitations, odds, and hours of operation;

provided, however, the commission shall not restrict the

number of hours of operation of any licensed gaming establishment

to fewer hours than of any competing gaming facilities with

controlled gaming;

(11) the manufacturing, distribution, sale, testing, servicing,

and inspection of gaming equipment, including requirements for

the identification and licensing of same;

(12) any limitations on mortgage security interests and agreements

relating to the property of licensed gaming establishments;

(13) any limitations on transfers of interests in licenses;

(14) advertising by licensed gaming establishments; provided,

however, licensees shall have the right to conduct reasonable

advertising consistent with that of competing gaming facilities;

(15) the manner in which winnings, compensation from games,

and gaming devices must be compiled and reported by licensees,

provided, further, electronic gaming devices shall return as winnings

a minimum of eighty-five percent of all sums wagered.

(16) standards for protection of the health, safety, and security

of the public at licensed gaming establishments;

(17) the minimum procedures to be adopted by each licensed

gaming establishment to exercise effective supervisory and management

control over its fiscal affairs, including the requirement

of an annual audit undertaken in accordance with generally

accepted accounting principles, and the requirement that quarterly

reports be provided by licensed gaming establishments to the

commission no more than 30 days after the close of each quarter;

(18) the persons to be excluded or ejected from licensed

gaming establishments, including the type of conduct prohibited;

and

(19) the distribution of funds for the treatment of compulsive

behavior.

The Commission shall refer all regulations to both the Attorney General and to the Undersecretary of Consumer Affairs and Business Regulation, who shall either approve or disapprove of the proposed regulations within 30 days. No regulation promulgated by the Commission shall take effect without the approval of both the Attorney General and the Undersecretary of Consumer Affairs and Business Regulation.

(l) Not more than 180 days after the passage of this act, the Commission shall make a recommendation to the legislature regarding a proposed percentage of net gaming revenues that each licensee shall pay to the state in compliance with subsection (a) of section 5 of this chapter. The Commission shall hold at least one public hearing before issuing said recommendation, and shall consider in its deliberations the percentages of net gaming revenues paid by gaming establishments in other states; provided, that the recommendation issued by the Commission shall in no case be lower than either the mean or median of the percentage paid by gaming establishments in other states, nor higher than 45 percent of net gaming revenues.

(m) In emergencies, the commission may, without complying

with sections two or three of chapter thirty A of the general laws,

summarily adopt, amend, or repeal any regulation, if, at the time,

the commission makes a finding that such action is necessary for

the preservation of the public peace, health, safety, morals, good

order, or general welfare, together with a statement of the facts

constituting the emergency; provided, however, all such emergency

actions shall expire after ninety days.

(n) Each operating license shall be issued for a term of ten years.

(o) Any failure of a licensee to comply with this chapter or any

regulation of the commission or the bureau may, at the discretion

of the commission, result in the immediate suspension or revocation

of the license.

(p) A gaming establishment license issued pursuant to this

chapter must be posted by the licensee and kept posted at all times

in a conspicuous place in the area where gaming is conducted in

the establishment for which the license is issued until it is

replaced by a succeeding license.

(q) Any person who has had his application for a license

denied or revoked, or is otherwise not in compliance with any

requirements hereunder, shall not retain his interest in the

premises or any entity seeking or holding a license under this

chapter beyond that period prescribed by the commission; and

shall not accept more for his interest than he paid for it or the

market value on the date of the denial or revocation of the license

or occurrence of non-compliance (not including the prospective

value of said license), whatever is higher.

(r) The voluntary surrender of a license by a licensee does not

become effective until accepted in a manner to be provided in the

regulations of the commission. The surrender of a license does

not relieve the former licensee of any fees, penalties, fines, taxes

or interest due.

(s) No person shall transfer a direct or indirect pecuniary

interest in a licensed operating entity or premises, or enter into an

option contract or other agreement providing for such transfer in

the future, without having notified the commission. No person

shall transfer a greater than five percent (5%) direct or indirect

pecuniary interest in a licensed operating entity or premises

without the issuance by the commission to the transferee of an

operating license or an affirmative statement that the transferee

has met the operating license standards, as the commission may

require.

(t) The commission shall monitor the conduct of all licensees

and other persons having a material involvement, directly or indirectly,

with a licensee for the purpose of ensuring that licenses are

not issued to, or held by, and there is no direct or indirect material

involvement with a licensee by unqualified, disqualified, or

unsuitable persons.

(u) No commission member or person employed by the commission

shall solicit or accept employment from a licensee, or represent

any person or party other that the commonwealth before or

against the commission for a period of three years from the termination

of his office or employment with the commission.

(v) The commission may investigate fraud, deceit, misrepresentation

or violations by any licensee under this chapter, or the

occurrence of any such activity involving any licensee. If the

commission has reasonable basis to believe that any licensee has

been or is engaged in criminal behavior or that criminal activity is

occurring within or involving any licensed gaming establishment,

the commission shall report same to the district attorney of the

county within which the gaming establishment is located and

make available to said district attorney all relevant information on

such activity. The commission shall apply to the department of

public safety for the assignment of a complement of police officers

to the commission on a regular basis and said department

shall assign such complement to the commission. The commission

shall assign such police officers to guard and protect the lives

and safety of the public and property at any such gaming establishment,

and to perform any such other duties which may be

required by said commission in order to maintain fair and honest

gaming establishment. The police officers so assigned shall,

except in the case of an emergency, while on duty at any such

establishment be subject to the operational authority of the commission;

provided, however, that such assignment or reassignment

shall not in any way impair any rights to which any officer may be

entitled. The commission shall from funds available pay to the

department of public safety the cost of the salaries of the police

officers so assigned from funds appropriated to the commission.

All assignment and reassignments to the commission, except as

the commissioner of public safety shall determine that an emergency

exists or its threatened, shall be subject to the approval of

the gaming control commission. Nothing herein shall prevent

licensees from applying to the state police if they have jurisdiction

in the area where gaming establishment is located, or to the police

department of a city or town wherein the gaming establishment is

located, in order that such police agency may furnish a police

detail for safety or traffic purposes at any gaming establishment

authorized by this chapter. The total cost for any such police

detail shall be a sum equal to the salaries of the police officers

comprising such detail, plus a sum to cover the administrative

expenses incurred by the department of each such police officer.

(w) The commission, as it deems appropriate, may ask a district

attorney to file a civil lawsuit to restrain a violation of this chapter

or enforce any provision thereof. An action brought against a

person pursuant to this chapter does not preclude any other criminal

or civil proceeding as may be authorized by law.

(x) Any person aggrieved by a determination by the commission

to issue, deny, modify, revoke or suspend any license or

approval, or to issue any order under the provisions of this

chapter, may request an adjudicatory hearing before the commission

under the provisions of chapter thirty A. Any such determination

shall contain a notice of this right to request a hearing and

may specify a time limit, not to exceed twenty-one days, within

which said person shall request said hearing. If no such request is

timely made, the determination shall be deemed assented to. If a

timely request is received, the commission shall within a reasonable

time act upon a request in accordance with the provisions of

chapter thirty A. A person aggrieved by a final decision in an

adjudicatory hearing held under the provisions of this section may

obtain judicial review thereof pursuant to the provisions of

chapter thirty A.

Section 4. State Gaming Control Bureau; Composition, Powers

& Duties.

(a) There shall be established a state gaming control bureau

within the executive office of administration and finance.

(b) The secretary of administration and finance shall appoint

the executive director of the bureau for a term of five years. The

executive director shall not serve more than two consecutive

terms. The executive director shall employ such professional,

technical, and clerical assistants and employees as necessary, subject

to appropriation; provided, however, such assistants and

employees shall not be subject to G.L. c. 31 or G.L. c. 30, § 9(A).

The department of public safety and division of state police shall

assign to the Division such full and adequate numbers of investigators

as the executive director shall reasonably require to carry

out the purposes of this chapter.

be limited to, the following:

(1) To visit, investigate, and place accountants, technicians,

and any other personnel, without prior notice or approval of any

party as it may deem necessary, in the office, gaming area, or

other place of business of any licensee under this chapter;

(2) To require that the books and financial or other records or

statements of any licensee be kept in a manner that the commission

or the bureau deems proper;

(3) To visit, inspect, and examine without prior notice or

approval of any party, all premises where gaming equipment is

manufactured, sold or distributed;

(4) To inspect and test without prior notice or approval of any

party, all equipment and supplies in any licensed gaming establishment

or in any premises where gaming equipment is manufactured,

sold or distributed;

(5) To have access to, and inspect, examine, photocopy, and

audit all relevant and material papers, books, and records of an

applicant for, or person holding, a license for a gaming establishment

under this chapter, on such applicant’s or licensee’s premises

or elsewhere, as practicable, in the presence of the applicant or

licensee or his or her agent, and require verification of income,

and all other matters affecting the enforcement of this chapter;

(6) To have access to and inspect, examine, photocopy, and

audit all relevant and material papers, books, and records of any

affiliate of a licensed gaming establishment that the bureau knows

or reasonably suspects is involved in the financing, operation, or

management of any entity licensed pursuant to this chapter, either

on the affiliate’s premises or elsewhere, as practicable, in the presence

of the affiliate or any agent thereof; and,

(7) To refer any suspected criminal violation of this chapter;

provided, however, that nothing in this section shall be deemed to

limit the investigatory and prosecutorial powers of other state and

local officials and agencies;

(d) The bureau shall investigate the qualifications of each

applicant under this chapter and make a recommendation to the

commission before any license is issued. The bureau shall also

continue to monitor the conduct of all licensees and other persons

having a material involvement, directly or indirectly, with a

licensee for the purpose of ensuring that licenses are not issued to,

or held by, and there is no direct or indirect material involvement

with a licensee by unqualified, disqualified, or unsuitable persons,

or persons whose operations are conducted in unsuitable manner

or in unsuitable or prohibited places, as provided in commission

or bureau regulations.

(e) The bureau may recommend to the commission the denial

of any application, the limitation, conditioning, restriction, sus-

pension, or revocation of any license or approval, or the imposition

of any fine or penalty upon any licensee.

(f) The bureau shall maintain a file of applications for licenses

under this chapter, together with a record of all action taken by the

commission on those applications. Such applications shall be

open to public inspection. The bureau may maintain any other

files and records as it deems appropriate.

(g) Each employee of the bureau shall file with the executive

director and the state ethics commission a statement of financial

interest as defined in chapter two-hundred sixty-eight B. Such

statement shall be under oath and shall be filed at the time of

employment and annually thereafter, as required by the state

ethics commission.

(h) No employee of the bureau shall be permitted to place a

wager in any establishment licensed by the commission except in

the course of his duties.

(i) No person employed by the bureau shall solicit or accept

employment from a licensee, or represent any person or party

other than the commonwealth before or against the bureau or the

commission, for a period of three years from the termination of

his office or employment with the bureau.

(j) The bureau may investigate, fraud, deceit, misrepresentation

or violations of this chapter by any person licensed hereunder

or the occurrence of any such activity within or involving any

licensed gaming establishment. If the bureau has reasonable basis

to believe that any licensee has been or is engaged in criminal

behavior or that criminal activity is occurring within or involving

any licensed gaming establishment, the bureau shall report same

to the district attorney of the county within which the licensed

gaming establishment is located and make available to said district

attorney all relevant information on such activity.

(k) The bureau, as it deems appropriate, may ask said district

attorney to file a civil lawsuit to retrain a violation of this chapter

or enforce any provision thereof. An action brought against a

person pursuant to this chapter shall not preclude any other criminal

or civil proceeding as may be authorized by law.

(l) The bureau shall make a continuous study and investigation

of gaming throughout the commonwealth in order to ascertain the

adequacy and effectiveness of state gaming law or regulations and

may formulate recommendations for changes in such laws and

regulations. The bureau shall make a continuous study and investigation

of the operation and administration of similar laws in

other states or countries, of any literature or reports on the subject,

of any federal laws which may affect the operation of gaming in

the commonwealth, all with a view to recommending or effecting

changes that will tend to better serve an implement the purposes

of this chapter.

(m) The executive director of the bureau may recommend that

the commission initiate proceedings or actions appropriate to

enforce this chapter and the regulations promulgated thereunder.

Section 5. Licensing of Licensed operators; payment of Commissions.

(a) Notwithstanding the provisions of G.L. c. 137, G.L. c. 271,

or any other general or special law to the contrary, each racing

meeting licensee is eligible to be licensed, subject to all terms and

conditions imposed by the Commission, to operate a gaming

establishment; and shall have the right to operate two thousand

five hundred (2,500) electronic gaming devices, at a racing

meeting licensee’s premises only; and, provided, further, that each

of said licensees shall have the right to operate an equal number

of electronic gaming devices. Said licensees shall pay a licensing fee of $50,000,000, half of which shall be due upon receipt of the license, and the rest of which shall be due in three equal installments of $8,333,333 on July 1 of each of the three subsequent years. Said licensees shall pay weekly to

the Commission, on behalf of the Commonwealth, a percentage of net gaming revenues to be determined by the Commonwealth pursuant to the recommendation of the Commission, and from which weekly payment

the Commission shall then allocate percentages (i) to be paid to

the city or town in which each establishment is located, with each

such city or town receiving two percent (2%) of

said revenues; (ii) to the purse accounts at each of the respective licensees’ race tracks

(iii) four-fifths of the remaining amount to be paid into the State Lottery Fund; (iv) and the balance of said sum after payment of the allocations shall be deposited in the General Fund. The remaining sums shall be retained by each licensee as its

commission and, provided, further, that each such licensee shall

in addition pay all taxes otherwise due and payable.

(b) The Commission shall grant one additional license to the Massachusetts Port Authority for the operation of no more than 250 electronic gaming devices in the international terminal of Logan International Airport; provided, that no license shall be granted unless the Authority complies with all relevant regulations promulgated by the Commission. The Authority may, in its discretion, contract with a vendor to provide gaming services, in which case the vendor shall pay to the Commonwealth a licensing fee of $5,000,000, half of which shall be due upon receipt of the license, and the rest of which shall be due in three equal installments of $833,333 on July 1 of each of the three subsequent years. No licensing fee shall be due if the Authority conducts the gaming operations itself. Nothing in this section shall exempt the Authority from the weekly payments of a percentage of net gaming revenues set elsewhere in this Chapter.

having obtained all necessary operating licenses from the commission.

There shall be a single licensed operator for each gaming

establishment. The licensing standards must be met at all times

by each officer, director, partner, and trustee of the operating

entity, by each substantial party in interest of the operating entity

or of the premises on which such establishment is located, and by

such other party in interest of the operating entity, the premises, or

any holding company or intermediary company of the operating

entity or the premises as the commission may require.

(d) A person may apply to be a licensed operator by filing an

application with the commission, the form and any accompanying

application fees as the commission may establish. Information on

the application will be used as the basis for a thorough background

investigation which the bureau shall conduct with respect

to each applicant. Each application shall disclose the identity of

each party in interest, each holding company and intermediary

company, and each affiliate of the operating entity. The application

shall disclose, in the case of the privately held corporation,

the names and addresses of all directors, officers, and stockholders;

in the case of a publicly traded corporation, the names

and addresses of all directors, officers, and persons holding at

least five percent of the total capital stock issued and outstanding;

in the case of a limited liability company, the names and addresses

of all members of the management committee and all persons

holding at least five percent of the membership interests; in the

case of a partnership, the names and addresses of al partners, both

general and limited; and in the case of a trust, the names and

addresses of all trustees and beneficiaries.

(e) Each operating entity shall identify, in its application, the

premises containing the establishment where it proposes to conduct

its gaming operations. The application shall contain such

information regarding the physical location and condition of the

premises and the potential impact of the proposed gaming operations

upon adjacent properties and the municipality and region

within which the premises are located, as the commission may

require. The application shall disclose the identity of all parties in

interest regarding the premises; and except as otherwise permitted

herein, no person other than a gaming establishment licensee here-

under shall have any right to or interest in any gaming revenue

derived from electronic gaming devices in the form of a percentage

of such sums or require more than fair market value for

rent, leases or services.

(f) No licensed operator shall obtain any gaming equipment

from a person who does not hold a license. No licensed operator

shall enter into any agreement for the receipt of goods or services,

of any form and in any amount, from a person who does not hold

a license, when a license is required for such agreement under this

act or under regulations promulgated by the commission or

bureau.

(g) No licensed operator shall employ any person in a gaming

establishment who does not hold a work permit, when a work

permit is required for such position under regulations promulgated

by the commission or bureau.

Section 6. Records of Commission and Bureau Proceedings.

(a) The commission shall cause to be made and kept a record

of all proceedings at all meetings of the commission. These

records shall be open to public inspection.

(b) Notwithstanding any other general or special law to the

contrary all files, records, reports, and other information in the

possession of any state or local governmental agency including

tax filings and related information that are relevant to an investigation

by the bureau conducted pursuant to this chapter shall be

made available by such agency to the commission or bureau as

requested. However, any tax or financial information received

from a governmental agency shall be used solely for effectuating

the purposes of this chapter. To the extent that these files,

records, reports, or information are confidential or otherwise privileged

from disclosure under any law, they shall not lose that confidential

or privileged status for having been disclosed to the

commission or bureau.

state and local law enforcement agency shall notify the commission

of any investigation or prosecution of any person if it appears

that a violation of any law related to gaming has occurred.

Section 7. Criminal Acts and Penalties; Age Restrictions.

(a) No official, member, employee, or agent of the commission

or bureau, having obtained access to confidential records or infor-

mation in the performance of duties pursuant to this chapter,

unless otherwise provided by law, shall knowingly disclose or furnish

the records or information, or any part thereof, to any person

who is not authorized by law to receive it. Violation of this provision

shall be punishable by a fine of not more than ten thousand

dollars or by imprisonment in the house of correction for not more

than one year, or by both such fine and imprisonment.

(b) No person shall operate, carry on or conduct any controlled

game or operate a gaming operation except subject to a license

issued by the commission as provided in this chapter.

or ejected from a licensed gaming establishment pursuant to regulations

promulgated pursuant to this chapter who knowingly

enters or remains on the premises of a licensed gaming establishment

shall be punished by imprisonment in the house of correction

for not more than one year, or by a fine of not more than ten

thousand dollars, or by both such imprisonment and fine.

(d) Any person under the age of twenty-one years who plays,

places wagers at, or collects winnings from, whether personally or

through an agent, any controlled game, or who is employed as an

employee in a licensed gaming establishment shall be punished by

imprisonment in the house of correction for not more than one

year, or by a fine of not more than one thousand dollars, or by

both such imprisonment and fine. Any licensee, or other person,

who knowingly allows a person under the age of twenty-one to

play, place wagers at or collect winnings, whether personally or

through an agent, shall be punished by imprisonment in the house

of correction for a term of not more than one year or pay a fine of

not more than ten thousand dollars, or by both such imprisonment

and fine. A subsequent violation of this section shall subject the

licensee to imprisonment in the house of correction for not more

than two years or pay a fine of not more than twenty-five thousand

dollars or by both such imprisonment and fine.

(e) Any person who willfully fails to report, pay, or truthfully

account for and pay over any fee, penalty, fine, or interest thereon,

imposed by this chapter or any regulation thereunder, or willfully

attempts in any manner to evade or defeat any fee, penalty, fine,

or interest thereon, or payment thereof shall be punished by

imprisonment in state prison for not more than five years or by

imprisonment in the house of correction for not more than two and

one-half years, or by a fine of not more than ten thousand dollars,

or by both such imprisonment and fine.

(f) Any person who willfully resists, prevents, impedes, interferes

with, or makes any false, fictitious or fraudulent statement,

or representation to the commission or the bureau of any of their

agents or employees in the performance of duties pursuant to this

chapter, shall be punished by imprisonment in the house of correction

for not more than two years, or by a fine not more than five

thousand dollars, or by both such imprisonment and fine.

(g) Any person, as owner, lessee, or employee, whether for

hire or not, either solely or in conjunction with others, who knowingly

shall do any of the following without having first procured

and thereafter maintained in effect all licenses required by law:

(1) To deal, operate, carry on, conduct, maintain, or expose for

play in this state any controlled game or gaming equipment used

in connection with any controlled game;

(2) To receive, directly or indirectly, any compensation or

reward or any percentage or share of the revenue, for keeping,

running, or carrying on any controlled game, or owning the real

property or location in which any controlled game occurs;

(3) To manufacture or distribute within the territorial boundaries

of the commonwealth any gaming equipment to be used in

connection with controlled gaming; shall be punished by imprisonment

in the house of correction for not more than two and onehalf

years, or by a fine of not more than ten thousand dollars, or

by both such imprisonment and fine.

(h) Any person who knowingly permits any controlled game to

be conducted, operated, dealt, or carried on in any house or

building or other premises that he or she owns or leases, in whole

or in part, if that activity is undertaken by a person who is not

licensed as required by this chapter shall be punished by imprisonment

in state prison in the house of correction for not more than

two and one-half years, or by a fine of not more than ten thousand

dollars, or by both such imprisonment and fine.

(i) Any former commissioner or commission or bureau

employee who, within three years after his state employment has

ceased, solicits or accepts employment with or provides consultant

services to any licensee or at any licensed gaming establish-

ment shall be punished by a fine of not more than five thousand

dollars or by imprisonment for not more than two and one-half

years in the house of correction or by both such fine and imprisonment.

Any licensee who knowingly employs a former commissioner

or commission or bureau employee in violation of this

subsection shall be subject to immediate revocation of his or her

license.

(j) It is unlawful for any person:

(1) to alter or misrepresent the outcome of a game or other

event on which wagers have been made after the outcome is determined

but before it is revealed to the players;

(2) knowingly to entice or induce another to go to any place

where gaming is being conducted or operated in violation of the

provisions of this chapter, with the intent that the other person

play or participate in that gaming;

(3) to manipulate, with the intent to cheat, any component of a

gaming device in a manner contrary to the designed and normal

operational purpose for the component including, but not limited

to, varying the pull of the handle of a slot machine, with knowledge

that the manipulation affects or reasonably may tend to

affect the outcome of the game or with knowledge of any event

that affects the outcome of the game;

As used in this section, “cheat” means to alter the selection of

criteria which determine:

(a) the results of a game; or

(b) the amount or frequency of payment in a game.

(4) to have on his person or in his possession on or off the

premises of any licensed gaming establishment any key or device

known to have been designed for the purpose of and suitable for

opening, entering or affecting the operation of any gaming or

equipment, or for removing money or other contents therefrom,

except where such person is a duly authorized employee of a

licensee acting in furtherance of his employment within a licensed

gaming establishment.

A violation of this section shall be punishable by imprisonment

in the house of correction for not more than two years or by a fine

of not more than four thousand dollars, or by both such imprisonment

and fine.

(k) A violation of this chapter, the penalty for which is not

specifically fixed in this section, shall be punishable by imprisonment

in the house of correction for not more than two years, or by

fine of not more than five thousand dollars, or by both such

imprisonment and fine.

(l) The conviction of a licensee for violation of, an attempt to

violate, or conspiracy to violate any provision of this chapter or

any regulation thereunder may result in the immediate revocation

of all licenses issued to the violator under this chapter; and, in

addition, the court, upon application of the bureau or of the commission,

may order that no new or additional license under this

chapter be issued to the violator, or be issued to any person who

owned the room or premises in which the violation occurred, for

one year after the date of revocation.

Section 8. Revenues.

(a) There is hereby established a gaming investigative account.

Any and all reasonable expenses associated with the licensing of

any applicant shall be borne by the applicant or licensee. Pursuant

to its regulations, the commission shall require each applicant

to deposit with the commission, together with the application,

an application fee which shall be deposited in the gaming investigative

account. Such fee shall constitute the anticipated costs

and charges incurred in the investigation and processing of the

application, and any additional sums as are required by the commission

and the bureau to pay final costs and charges. Expenses

may be advanced from the gaming investigative account by the

commission to the bureau. Any money received from an applicant

in excess of the costs and charges incurred in the investigation or

the processing of the application shall be refunded pursuant to

regulations adopted by the commission. At the conclusion of the

investigation, the bureau shall provide the applicant a written

accounting of the costs and charges so incurred.

Section 9. Disclosure requirements.

(a) Every licensed gaming establishment shall, upon receipt of

criminal or civil process compelling testimony or production of

documents in connection with any civil or criminal investigation,

immediately disclose such information to the bureau.

(b) All licensees shall have a duty to inform the commission

and bureau of any action which they reasonably believe would

constitute a violation of this chapter, and shall assist the commission

and bureau and any federal or state law enforcement agency

in the investigation and prosecution of such violation. The commission

shall hold a hearing under chapter 30A on any licensees’

failure to comply with this paragraph, and may take appropriate

actions including suspension or revocation of the license. No

person who so informs the commission or the bureau shall be discriminated

against by an applicant or licensee because of the supplying

of such information.

Section 10. Recovery of Gaming Debts by Patrons.

Whenever a licensed gaming establishment refuses payment of

alleged winnings to a patron, the gaming establishment and the

patron are unable to resolve the dispute to the satisfaction of the

patron and the dispute involves:

(a) $500 or more, the gaming establishment shall immediately

notify the bureau; or

(b) less than $500, the gaming establishment shall inform the

patron of his right to request that the bureau conduct an investigation.

The bureau shall conduct whatever investigation it deems necessary

and shall determine, in its sole discretion and without need

for a hearing, whether payment should be made. In the event the

bureau determines that payment should be made, all costs of the

investigation shall be borne by the gaming establishment. Failure

of the establishment to notify the bureau or inform the patron as

provided herein shall subject the establishment to disciplinary

action.

Any party aggrieved by the determination of the bureau may

file a petition for reconsideration with the commission setting

forth the basis of the request for reconsideration. Any hearing for

reconsideration shall be conducted pursuant to regulations

adopted by the commission.”