9 NYCRR Part 5113 - Executive Department

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Source versions current through Nov 15, 2021 - Mar 31, 2022 across sections

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

9 NYCRR 5113.1 - Suspension and revocation of a license or discipline of a licensee

Source version current through Mar 31, 2022

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: Mar 31, 2022

(a)Acceptance of a video lottery gaming license or renewal thereof by a licensee constitutes an agreement on the part of the licensee to be bound by these regulations and the policies and procedures of the commission. It is the affirmative responsibility of all licensees to keep informed of the content of all such regulations, policies and procedures and amendments thereto. Any licensee, other than a natural person, may be held accountable for the violations of such licensee’s principals or key employees. The commission may suspend or revoke any license issued by the commission for any violation of these regulations.

(b)At the discretion of the commission, a license issued under these regulations may be subjected to suspension or revocation, the renewal of such license may be rejected or a licensee may be fined for any of the following reasons, or any combination thereof:

(1)any violation of any provision of such license, the act, other applicable law or these regulations;

(2)failure to comply with instructions of the commission concerning a licensed activity;

(3)conviction of any:

(i)felony offense, as such term as defined in State Penal Law section 10.00(5), or an equivalent offense committed in another jurisdiction;

(ii)a misdemeanor related to gambling, gaming, bribery, fraud, or any other offense prejudicial to public confidence in the State lottery;

(4)failure to file any returns or reports or to keep records or to pay any fee or submit revenue as may be required;

(5)fraud, deceit, misrepresentation or conduct prejudicial to public confidence in the commission;

(6)failure to furnish a surety or other bond in such amount as may be required by the commission;

(7)a material change since issuance of the license with respect to any matter required to be considered by the commission;

(8)whenever the commission finds that the licensee’s experience, character, and general fitness are such that participation in video lottery gaming is inconsistent with the public interest or convenience or for any other reason within the discretion of the commission;

(9)the failure to notify the commission, in writing, within a reasonable time of any arrest for a misdemeanor or a felony, indictment, or service of a summons, or conviction for any felony whether within or without the State, or within or without the United States, occurring during the term of the license or the renewal thereof.

(c)Prior to commencing a disciplinary proceeding, each licensee shall have the opportunity to correct and/or explain the issue raised by the commission.

(d)Upon suspension or revocation of any license issued pursuant to these regulations, other than a video lottery gaming agent license, the licensee shall surrender such license and any badges for the video lottery gaming facility to the commission. Such licensee shall be banned from entering the video lottery gaming facility for a period of one year or until the license is reinstated, whichever first occurs.

(e)Upon termination of a video lottery gaming agent’s license for any reason, the video lottery gaming agent shall:

(1)go to such agent’s bank on a date designated by the commission for the purpose of rendering a final video lottery gaming accounting of any accounts established by these regulations;

(2)surrender of the video lottery gaming agent’s license and other material provided by the commission;

(3)upon failure of any video lottery gaming agent to settle accounts on or before the designated date, the commission may exercise such enforcement powers as may be provided for by law. The video lottery gaming agent will provide unrestricted entry onto such agent’s premises for the purpose of the removal of all video lottery gaming equipment and incidentals.

9 NYCRR 5113.2 - Continuation of video lottery gaming in event of termination of video lottery gaming agent license

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

By reason of the substantial investment of State revenue in each video lottery gaming facility, in the event of a termination of the video lottery gaming agent’s license, the commission or the commission’s designee may take possession and control of such video lottery gaming facilities and amenities to insure the uninterrupted operation of the video lottery gaming facility until such time as a successor to such video lottery gaming agent is approved by the commission. During any such period of operation by the commission or the commission’s designee, the agent compensation shall be retained by the commission for the benefit of the fund.

9 NYCRR 5113.3 - Initiation of disciplinary proceedings

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

(a)Except as otherwise provided by the act or these regulations, at any time during the review and investigation of a complaint or alleged violation of the act or these regulations, the commission may initiate disciplinary proceedings:

(1)to suspend or revoke any license or certificate issued pursuant to the act; or

(2)to otherwise sanction the agent or licensee for violations of the act or these regulations.

(b)Disciplinary proceedings commenced by the commission shall be initiated by sending a notice by first class mail to the last known mailing address of the licensee. Such notice, without limitation, shall set forth a list of the grounds for the proposed disciplinary action; the time and place for a hearing before the commission concerning the proposed disciplinary action; and a statement of the disciplinary action sought to be imposed against such licensee. Such notice shall be mailed to the licensee not less than 30 days prior to the scheduled hearing date.

9 NYCRR 5113.4 - Summary suspension

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

(a)Where the commission has reasonable grounds to believe that any licensee has been guilty of a deliberate, willful or a grossly negligent violation of any of the provisions of the act or these regulations, including, without limitation, the failure to pay when due the moneys due and owing to the commission pursuant to the act or these regulations, or that the licensee has been charged with a felony under the laws of the State or in another state, or that due to other violations of law by the licensee or the licensee’s patrons, emergency action is required in order to protect the public health, safety, or welfare of the public, and where the commission incorporates such findings in an order, the commission may summarily suspend the license and the licensee without prior notice pending disciplinary proceedings pursuant to these regulations.

(b)The summary suspension of a license without notice pending a public hearing shall be for a period not to exceed 30 days except that a licensee may waive the 30-day hearing requirement in writing no later than five business days prior to the scheduled hearing. In no event, however, shall the requested continuance be granted unless the licensee requesting the continuance has complied with the order of summary suspension by surrendering their license to the commission.

(c)The commission shall deliver a notice of summary suspension by registered mail to the licensee who has been suspended. The notice shall contain such information as the commission determines necessary to provide the licensee with notice of the summary suspension and the reason(s) therefore, including, without limitation, stating when the suspension will begin and end.

(d)The commission shall serve upon the summarily suspended licensee a formal notice initiating disciplinary proceedings and a notice of hearing within five days after receipt by the licensee of the notice of summary suspension.

9 NYCRR 5113.5 - Penalties imposed by commission prior to reissuance of license

Source version current through Nov 15, 2021

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: Nov 15, 2021
Related Register notice: SGC-29-21-00010-A · Adopted rule
Related notice published: Nov 24, 2021
Related notice effective date: Nov 24, 2021

The commission may require a person (or business entity) who (or that) is subjected to disciplinary proceedings, or who (or that) formerly held a license pursuant to this Subchapter, to meet certain conditions before reissuing a license to that person or business entity, including, without limitation, one of more of the following:

(a)restitution of money;

(b)restitution of property;

(c)making periodic reports to the commission as required; and

(d)payment of outstanding fines imposed by the commission.

9 NYCRR 5113.6 - Costs

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

(a)In addition to the condition imposed by the commission upon the licensee, the licensee shall pay, pursuant to an order issued by the commission or the commission’s authorized representative, the costs incurred by the commission in making the determination to discipline, suspend or revoke, including, without limitation, the costs of the commission’s vendors and contractors engaged for such purpose.

(b)Costs may include, but are not limited to: witness fees and per diem; expert witness fees; duplication costs; court reporter, transcription, and other costs incurred in administering or preserving any record; extraordinary staffing costs of the commission; legal fees; expenses incurred in commencing, accommodating, or conducting the hearing; investigative costs; exhibit costs; and any other judicially or statutorily recognized cost, whether incurred prior or subsequent to the conclusion of the investigation of the matter.

(c)Unless otherwise ordered as set forth in subdivision (a) of this section, costs must be paid to the ordered recipient on or before the 30th day from the date of the order awarding the costs, unless stayed by the commission or a court of competent jurisdiction. Failure to pay and tender such costs as ordered shall constitute grounds for sanction, including further fine, suspension and revocation of any license or other affirmative approval.

9 NYCRR 5113.7 - Disciplinary hearings

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

Any disciplinary hearing commenced pursuant to these regulations shall be conducted substantially in accordance with the provisions of section 5000.6 of this Subtitle. In the event of a conflict between that section and these regulations, these regulations shall control.

9 NYCRR 5113.8 - Final action by commission

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

After notice and hearing, in the event the commission finds insufficient evidence to support the violations claimed, the commission may find the licensee not guilty of any of the grounds alleged for disciplinary action; in which event the disciplinary proceedings shall be terminated. The commission may, however, find the licensee guilty by a preponderance of the evidence of some or all of the grounds alleged for disciplinary action; in which event the commission may take one or more of the following actions:

(a)revoke the license;

(b)suspend the license for a period of time not to exceed six months;

(c)fine the licensee; or

(d)issue a public or private letter of reprimand to be placed in the file of the licensee.

This section does not prevent the commission from compromising or settling at any time a formal hearing. Written findings of fact, conclusions of law, and an order must be entered before any decision of the commission shall be considered final.

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