9 NYCRR Part 5104 - Executive Department

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Source versions current through Nov 15, 2021 - Sep 30, 2026 across sections

Sections in this Part carry different compiled dates; each section shows its own.

9 NYCRR 5104.1 - Financial stability criteria.

Source version current through Sep 30, 2026

A matched Register action is not later than the compiled-text reference date.

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 30, 2026
Related Register notice: SGC-29-21-00010-A · Adopted rule
Related notice published: Nov 24, 2021
Related notice effective date: Nov 24, 2021

Financial stability criteria.

(a)Criteria. Each video lottery gaming agent, and each of such agent’s principals, shall establish and maintain during the pendency of such video gaming agent license the financial stability of such licensee to the satisfaction of commission. The commission may consider any relevant evidence of financial stability. A video lottery gaming agent shall be considered to be financially stable if such agent establishes by clear and convincing evidence that such agent meets each of the following standards:

(1)Each video lottery gaming agent must assure the financial integrity of video lottery gaming operations by the maintenance of a video lottery gaming bankroll, or equivalent provision(s), adequate to pay prizes to video lottery gaming patrons when due. A video lottery gaming agent shall be found to have established this standard if it maintains, on a daily basis, a video lottery gaming bankroll, or equivalent provisions, in an amount at least equal to the facility’s immediate cash requirement exposure for player prizes. Prior to receiving a certificate of operation for the video lottery gaming facility, each video lottery gaming agent must submit to the commission a calculation of their video lottery gaming bankroll to be maintained at the commencement of each gaming day. Such calculation shall be based upon prize valuation levels. The bankroll will be reviewed by the commission, and shall guarantee that the vault funding by weekday is at least equal to 200 percent of the projected average daily prize claims at the video lottery gaming facility. Each video lottery gaming agent must continually review and evaluate daily bankroll requirements and notify the commission in writing if it requests to change the amount of the minimum bankroll. Such notification must be provided to the commission at least 10 days prior to the implementation of the new funding level. Maintenance of a minimum bankroll is subject to audit or review by the commission. Failure to maintain adequate funding levels consistent with this requirement will be a violation of the video lottery gaming agent’s license.

(2)Each video lottery gaming agent must be able to pay, as and when due, all local, State and Federal taxes, including the tax on gross revenues imposed by the video lottery gaming law, and any costs associated with the licensing process.

(3)A video lottery gaming agent shall maintain the video lottery gaming facility and related amenities in good repair. Each video lottery gaming agent shall submit annually to the commission for review, any changes or updates to the capital investment plan for the video lottery gaming facility together with the then-effective capital investment plan. The commission shall review such changes and updates to ensure that each video lottery gaming agent is investing portions of the vendor fee permitted by the act in the facility’s infrastructure as is necessary to support viable and successful video lottery gaming in this State. Each capital investment plan submitted shall be in such form as required by the commission and shall discuss the improvements made to the facility since the submission of the last investment plan. Each video lottery gaming agent shall budget for repair and replacement reserves to maintain the facility unless otherwise prohibited by law. The commission reserves the right to require video lottery gaming agents to create and fund replacement reserves at such amounts determined by the commission consistent with the requirements of the act.

(4)Each video lottery gaming agent must be able to pay, exchange, refinance or extend debts, including long-term and short-term principal and interest and capital lease obligations, that will mature or otherwise come due and payable during the license term, or to otherwise manage such debts and any default with respect to such debts. Each video lottery gaming agent shall advise the commission of such agent’s plans to meet this standard with respect to any material debt(s) coming due and payable within 12 months after the end of the license term.

(5)No video lottery gaming agent shall consummate a material debt transaction without the prior written approval of the commission.

(6)No video lottery gaming agent shall guarantee the debt of any person or business entity, whether by co-signature or otherwise, or assume the debt of any person or business entity; or enter into any agreement to place any encumbrance on its video lottery gaming facility to secure the debts of such video gaming agent, any person or business entity, without the prior written approval of the commission.

(b)In reviewing any transaction in connection with the financial stability of the video lottery gaming agent or any of such agent’s principals, the commission shall consider whether the transaction deprives the agent or person of financial stability, taking into account the current or projected financial condition of the video lottery gaming agent and such agent’s affiliate, and the potential impact of any default on the agent or person.

(c)Any subsequent use of the proceeds of a financial transaction previously approved by the commission pursuant to these regulations, including subsequent drawings under previously approved transactions, shall not require further commission approval unless such use is inconsistent with the use approved by the commission.

(d)The commission may restrict or prohibit the transfer of cash to, or the assumption of liabilities on behalf of, an affiliate of the video gaming agent if, in the judgment of the commission, such transfer or assumption would deprive the video lottery gaming agent of financial stability.

9 NYCRR 5104.2 - Financial stability reporting requirements

Source version current through Nov 15, 2021

Later State Register activity may affect this section.

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Nov 15, 2021

Each video lottery gaming agent and such agent’s principals shall be required to maintain accurate and complete accounting records pertaining to video lottery gaming operations at the video lottery facility or such location approved in writing by the commission. Such records shall be maintained in accordance with generally accepted accounting principles. In connection with such records, each video lottery gaming agent shall report to the commission the following:

(a)on the fiscal year basis of the video lottery gaming agent, the video lottery gaming agent shall submit audited financial statements in accordance with these regulations within 120 days of such fiscal year end;

(b)video lottery gaming agents will submit standard financial reports required by these regulations; and

(c)such other information as the commission shall deem necessary for a showing of financial stability for a particular video lottery gaming agent including, without limitation, quarterly submissions of financial information.

9 NYCRR 5104.3 - Failure to demonstrate financial stability

Source version current through Nov 15, 2021

Later State Register activity may affect this section.

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Nov 15, 2021

In the event a video lottery gaming agent, or any licensee under these regulations, fails to demonstrate financial stability as required by these regulations to the satisfaction of the commission, the commission may take such action as is necessary to fulfill the purposes of the act and to protect the public interest, including, but not limited to: issuing conditional or temporary licenses, approvals or determinations; establishing an appropriate cure period; imposing reporting requirements in excess of those otherwise mandated by these regulations; placing such restrictions on the transfer of cash or the assumption of liabilities as is necessary to insure future compliance with the financial stability standards; requiring the maintenance of reasonable reserves or the establishment of dedicated or trust accounts to insure future compliance with the financial stability standards; requiring a special audit, with such audit plan to be approved by the commission and conducted by an independent accounting firm at the expense of the video lottery gaming agent; charging interest as provided in these regulations on any outstanding amount of sales due the commission; suspending, revoking or denying licensure; or such other action as the commission determines appropriate in accordance with these regulations.

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