Definitions

The following definitions, constructions and interpretations of these rules and regulations, including all amendments thereto, shall apply to Sections 12-574-E1 through E7 inclusive; 12-584-1; 12-585-1; and 12-578-1: (1) Act. Chapters 226 and 226b of the Connecticut General Statutes and all amendments thereto. (2) Affiliate. A business organization, other than a shareholder in a publicly traded corporation, which may exercise control in or over an association, totalisator, concessionaire, or vendor licensee. (3) Agent. Anyone to whom control or management terms, as defined herein, apply or any person or entity actually or ostensibly authorized to represent or act on behalf of any principal. (4) Applicant. Any individual or business organization seeking to obtain a license from either the board or the division. (5) Association. Any individual or business organization licensed to conduct a racing or jai alai meeting pursuant to Section 12-574 (a) of the Connecticut General Statutes or licensed to operate the off-track betting system pursuant to Section 12-572 of the Connecticut General Statutes. (6) Board. The gaming policy board of the state of Connecticut as established by Section 12-557d of the Connecticut General Statutes. (7) Business organization. A partnership, incorporated or unincorporated association, firm, corporation, trust or other form of business or legal entity, other than a financial institution regulated by a state or federal agency which is not exercising control over an association licensee. (8) Concessionaire. Any individual or business organization granted the right to operate an activity at a parimutuel or off-track betting facility for the purpose of making a profit, and which person or business organization receives or, in the exercise of reasonable business judgment, can be expected to receive more than $25,000 or 25 percent of its gross annual receipts from such activity at the facility. By way of example and not limitation, parking contractors, restaurant or catering contractors, closed-circuit television contractors, handicappers, security services, contractual kennel owners and cleaning and maintenance contractors may be concessionaires. Notwithstanding the provisions of Section 12-574-E1 (b) of these regulations, those persons or business organizations requesting an exemption from the licensing requirements as concessionaires must submit satisfactory evidence to the division that they are within the dollar or percentage limit defined above. (9) Control. The power to exercise authority over or direct the management and policies of a person or business organization. (10) Division. The division of special revenue of the state of Connecticut and its duly authorized representatives. (11) Facility. The total real estate, land and buildings of an association utilized for racing, OTB, or jai alai performances. (12) Key executive and other control person. Any individual or business organization to which the terms "control," "management," "related," or "principal owner" apply. (13) Licensee. Any individual or business organization licensed by either the board or the division to participate in any activity permitted under the act except as specifically excluded in Section 12-574-E1 (a). (14) Major contractual services. Goods or services supplied to a licensee by a contractor who receives or, in the exercise of reasonable business judgment, can be expected to receive more than $25,000 or 25 percent of its gross annual sales from the licensee. Where such a contractor actually supplies such goods and services at a facility (as contrasted with simply delivering such goods to the facility or providing such services off the facility) said contractor will be a concessionaire. (15) Management. Any persons or entities having responsibility to manage, direct, or administer the affairs of a person or business organization. Management includes but is not limited to members of the board of directors of a corporation, officers in charge of principal business functions, or principal owners. (16) Principal owner or principal stockholder. An owner or beneficial owner of more than 10 percent of a licensee's debt or equity or 10 percent of the voting interest of the licensee or an owner or beneficial owner who receives more than 10 percent of income earned or distributed from a licensee. Excluded from this classification are financial institutions, insurance companies, or pension funds who are holders of the licensee's (or applicant's) debt, but who do not exercise control over such licensee (or applicant). The division will not require holders of a licensee's debt which are financial institutions, insurance companies, or pension funds which are not exercising control over a licensee to be licensed. (17) Privately-held corporations. Corporations that are other than publicly-traded corporations. (18) Publicly-traded corporations. Corporations whose debt or equity securities are traded in a public market in a foreign or domestic stock exchange or in the over-the-counter market, and are required to file financial statements with the Securities and Exchange Commission. (19) Related. Any person or business organization that has the ability to significantly influence the management or operating policies of a licensee (or applicant) to the extent that such licensee (or applicant) may be prevented from pursuing its own separate interests. These include, but are not limited to, affiliates, principal owners and close kin, management and close kin, parents and subsidiaries, and debt or equity method investors and investments. (20) Totalisator. The system or equipment or services whereby tickets are printed as purchased and the purchase automatically recorded at a central place within the facility, the approximate odds at any particular time are quickly determined and flashed on an electronic display board for the public view, and the payoffs are correctly determined and flashed when the game or race is over. (21) Vendor. A person or business organization awarded the primary contract by the state to provide facilities, goods, components, and services necessary to carry out the provisions of Sections 12-568 and 12-572 of the General Statutes.