License Classifications

A. Licenses include: (1) manufacturer’s license, which authorizes the approved licensee to manufacture, fabricate, assemble, produce, program, make modifications to, or sell to licensed distributors or licensed gaming operators, any gaming machine or associated equipment in accordance with the act and board rules; (2) distributor’s license, which authorizes the approved licensee to buy, sell, distribute or market any gaming machine or associated equipment in or outside the State in accordance with the act and board rules; (3) gaming operator’s license, which authorizes the approved licensee to acquire, own, lease, possess, and operate gaming devices on its licensed premises; a gaming operator’s license may be issued to a nonprofit organization or to a racetrack licensed by the state racing commission pursuant to the New Mexico Horse Racing Act; (4) gaming machine license, pursuant to which an approved gaming machine is licensed for the play of authorized games on a licensed premises under a gaming operator’s license; and (5) a limited use distributor’s license which authorizes the approved licensee to sell, on a limited basis, gaming machines and associated equipment. B. Certifications, registrations, and other approvals include: (1) certification of finding of suitability, which is a determination by the board that the applicant is suitable to be associated with a licensee for the specific involvement sought; (2) approval of gaming machine, associated equipment, modification, or game, under which a particular brand and type of gaming device, an equipment modification, or a game, is authorized for sale, distribution, and operation; (3) if a company applicant or licensee is or becomes a subsidiary, registration of each non- publicly traded holding company and intermediary company with respect to the subsidiary company; (4) approval to amend a gaming operator’s license to show a change in the number of authorized gaming machines on the licensed premises; and (5) work permit, which authorizes the employment of the holder as a gaming employee. [15.1.5.9 NMAC - Rp, 15.1.5.9 NMAC, 6/30/2016] 15.1.5.10 APPLICATIONS, STATEMENTS, AND NOTICES - FORM AND GENERAL REQUIREMENTS: A. Every application, statement, and notice required to be filed under the act or this rule shall be submitted on forms supplied or approved by the board and shall contain such information and documents as specified. B. The applicant shall file with the application all supplemental forms provided by the board. Such forms require full disclosure of all details relative to the applicant’s antecedents, immediate family, habits and character, criminal record, business activities, financial affairs and business associates for the 10-year period immediately preceding the filing date of the application. C. Upon request of the board, the applicant shall further supplement any information provided in the application. The applicant shall provide all requested documents, records, supporting data, and other information within the time period specified in the request, or if no time is specified, within 30 days of the date of the request. If the applicant fails to provide the requested information within the required time period as set forth in the request or this rule, the board may deny the application unless good cause is shown. D. An applicant shall submit evidence satisfactory to the board that the applicant is sufficiently capitalized to conduct the business proposed in the application. In determining whether an applicant is sufficiently capitalized, the board shall consider such things as the applicant’s annual financial statements and federal tax returns for the preceding three years, whether the applicant has adequate financing available to pay all current obligations, and whether the applicant is likely to be able to adequately cover all existing and foreseeable obligations in the future. E. All information required to be included in an application shall be true and complete as of the date of board action sought by the applicant. If there is any change in the information contained in the application, the applicant shall file a written amendment in accordance with this rule. 15.1.5 NMAC 4 F. The application and any amendments shall be sworn to or affirmed by the applicant before a notary public. If any document is signed by an attorney for the applicant, the signature shall certify that the attorney has read the document and that, to the best of the attorney’s knowledge, information and belief, based on diligent inquiry, the contents of the documents supplied are true. G. The applicant shall cooperate fully with the board and any agent of the board with respect to background investigation of the applicant, including, upon request, making available any and all of its books and records for inspection. The board shall examine the background, personal history, financial associations, character, record and reputation of the applicant, including an applicant seeking a finding of suitability, to the extent the board determines is necessary to evaluate the qualifications and suitability of the applicant. H. The board shall automatically deny the application of any applicant that refuses to submit to a background investigation as required pursuant to the act and this rule. I. Neither the state, the board, any agency with which the board contracts to conduct background investigations, or the employees of any of the foregoing, shall be held liable for any inaccurate information obtained through such an investigation. J. All new applications submitted to the New Mexico gaming control board shall be completed within 120 days of receipt of the application, which time may be extended by the board upon good cause. Failure to complete the application within such time period shall result in the forfeiture of all licensing fees. Applicant shall be required to re-submit a new application with licensing fees should the applicant still wish to pursue licensure. [15.1.5.10 NMAC - Rp, 15.1.5.10 NMAC, 6/30/2016] 15.1.5.11 SEPARATE APPLICATIONS REQUIRED; HOLDING OF MULTIPLE LICENSE TYPES PROHIBITED: A. A licensee shall not be issued more than one type of license. A licensee shall not own a majority interest in, manage, or otherwise control a holder of another type of license issued pursuant to the provisions of the act. B. No affiliate or affiliated company shall hold any type of license except the type held by the affiliated licensee unless the affiliate or affiliated company does not own a majority interest in, manage, or otherwise control the affiliated licensee and the board determines that such licensure shall not unduly impair competition in the state gaming industry or otherwise be contrary to the public health, safety, morals, or general welfare. C. This rule is not intended to prohibit a gaming operator licensee from obtaining licensure of its gaming machines as required by the act and this rule or from transferring or disposing of a gaming machine in accordance with this title. [15.1.5.11 NMAC - Rp, 15.1.5.11 NMAC, 6/30/2016] 15.1.5.12 ORGANIZATION AND MEMBERSHIP REQUIREMENTS FOR NONPROFIT ORGANIZATIONS; GAMING MACHINES FOR MEMBERS ONLY: A. Only active members and auxiliary members of a nonprofit organization gaming operator licensee shall play gaming machines on the licensed premises. No guest or member of the public shall play a gaming machine licensed to a nonprofit organization gaming operator licensee. No member of the public shall enter the licensed premises except during the course of authorized business and provided the person remains on the licensed premises no longer than reasonably necessary to conduct such business. B. To qualify to hold and operate a gaming operator’s license, the nonprofit organization shall have at least 50 bona fide active, sworn members who pay dues on a monthly, quarterly, annual, or other periodic basis. The organization may have, in addition to its regular members, auxiliary members, but auxiliary members may not be counted in order to meet the minimum membership requirements described in this subsection. C. The applicant shall submit to the board, with the initial application, a copy of the applicant’s current charter, articles of incorporation, bylaws, or rules that establish membership requirements. In addition, with the initial application and license renewal applications, the organization shall submit evidence of good standing and the names and addresses of the applicant’s current bona fide members and any auxiliary members. In lieu of the membership list, the board may accept, in its discretion, a statement from the highest ranking official of the nonprofit organization attesting to the fact that the organization meets the membership requirements described in this subsection. The applicant shall also submit the name, home address, phone number and email address of each member of the governing board. [15.1.5.12 NMAC - Rp, 15.1.5.12 NMAC, 6/30/2016] 15.1.5 NMAC 5 15.1.5.13 SPECIAL REQUIREMENTS FOR RACETRACK GAMING OPERATOR LICENSE APPLICANTS: A. To qualify to hold and operate a gaming operator’s license, a racetrack shall be licensed by the state racing commission pursuant to the Horse Racing Act to conduct live horse races or simulcast races. B. The applicant shall submit to the board a copy of the applicant’s current license from the horse racing commission to conduct pari-mutuel wagering, its current simulcast license, and its schedule of live race days during its licensed race meets for the current calendar year. Thereafter, a licensee shall submit to the board, within 10 ten days of issuance by the state horse racing commission, a copy of the licensee’s current license to conduct pari-mutuel wagering, its current simulcast license, and its schedule of live race days during its licensed race meets for the current calendar year. C. Racetrack gaming operator licensees may permit the operation of gaming machines on their premises only on days when the racetrack is conducting live horse races or simulcasting horse race meets. The gaming machines may be played for a daily period not to exceed 18 hours and no more than 112 hours in a one- week period, beginning on Tuesday at 8 a.m. and ending at 8 a.m. on the following Tuesday, at the licensee’s discretion. “Daily period” means the 24-hour period beginning at 12:01 a.m. and ending at 12:00 midnight.