Attached files
file | filename |
---|---|
10-K - Gaming Partners International CORP | v179187_10k.htm |
EX-32 - Gaming Partners International CORP | v179187_ex32.htm |
EX-31.2 - Gaming Partners International CORP | v179187_ex31-2.htm |
EX-31.1 - Gaming Partners International CORP | v179187_ex31-1.htm |
EX-23.01 - Gaming Partners International CORP | v179187_ex23-01.htm |
Exhibit
99.10
Government
Gaming Regulation
Regulation
and Licensing
A list of
the geographical locations of the jurisdictions in which we, through our
subsidiaries, are subject to licensing and/or regulatory control of the gaming
authorities is set forth below.
Gaming Jurisdictions | ||
Arizona
|
Missouri
|
Wyoming
|
Arkansas
|
Montana
|
Australia
|
California
|
Nevada
|
Alberta,
Canada
|
Colorado
|
New
Jersey
|
British
Columbia, Canada
|
Connecticut
|
New
Mexico
|
Manitoba,
Canada
|
Florida
|
New
York
|
Nova
Scotia, Canada
|
Illinois
|
North
Carolina
|
Ontario,
Canada
|
Indiana
|
North
Dakota
|
Quebec,
Canada
|
Iowa
|
Oklahoma
|
Saskatchewan,
Canada
|
Kansas
|
Oregon
|
Greece
|
Louisiana
|
South
Dakota
|
Republic
of Panama
|
Mitchigan
|
Washington
|
Puerto
Rico
|
Minnesota
|
West
Virginia
|
Singapore
|
Mississippi
|
Wisconsin
|
|
Nevada
Gaming Regulation
|
The
manufacture and distribution of gaming equipment in Nevada are subject to
extensive state and local regulation. Our operations are subject to the
licensing and regulatory control of the Nevada Gaming Commission, the Nevada
State Gaming Control Board and various local regulatory agencies, or the Nevada
gaming authorities, due to our prior manufacture of roulette wheels, which are
considered gaming devices.
By Nevada
State Gaming Commission Order entered November 18, 2004, GPIC was
exempted from registration as a publicly-traded corporation and GPI USA
and GPI SAS were each licensed as manufacturers and distributors strictly
limited to the manufacture, distribution and service of roulette wheels in
Nevada, and subject to administrative approval prior to the distribution of any
roulette wheel and further subject to specified conditions set forth in the
Order, including but not limited to the filing of periodic reports with and
notifications to Nevada gaming authorities. The result of this Order is to
grant GPI USA and GPI SAS transactional waivers so that they may
manufacture roulette wheels for sale to Nevada casino licensees. Effective
August 30, 2006, the approvals were expanded by the Nevada gaming
authorities to permit GPI USA to sell GPI SAS roulette wheels outside
of Nevada. The waivers granted were specifically found by the Nevada State
Gaming Commission to be consistent with the policies set forth for in the Nevada
gaming laws. These waivers may, however, be withdrawn by the Nevada State Gaming
Control Board for any cause deemed reasonable. Upon such withdrawal, the Company
would be subject to full registration and licensing.
|
New
Jersey Gaming Regulation
|
Our
subsidiaries are currently required to be licensed under the New Jersey Casino
Control Act, or the New Jersey Act, as casino service industries qualified to
manufacture and sell gaming-related products to casinos in New Jersey. As part
of such licensure, parent companies, holding companies and certain officers and
directors of the companies are required to be found suitable by the New Jersey
Casino Control Commission, or the New Jersey Commission. The sale and
distribution of gaming equipment to casinos in New Jersey is also subject to the
New Jersey Act and the regulations promulgated thereunder by the New Jersey
Commission. The New Jersey Commission has broad discretion in promulgating and
interpreting regulations under the New Jersey Act. Amendments and supplements to
the New Jersey Act, if any, may be of a material nature, and accordingly may
adversely affect the ability of a company or its employees to obtain any
required licenses, permits and approvals from the New Jersey Commission, or any
renewals thereof. The current regulations govern licensing requirements,
standards for qualification, persons required to be qualified, disqualification
criteria, competition, investigation of supplementary information, duration of
licenses, record keeping, causes for suspension, standards for renewals or
revocation of licenses, equal employment opportunity requirements, fees and
exemptions. In deciding to grant a license, the New Jersey Commission may
consider, among other things, the financial stability, integrity,
responsibility, good character, and reputation for honesty, business ability and
experience of the applicant and its directors, officers, management and
supervisory personnel, principal employees and stockholders as well as the
adequacy of the financial resources of the applicant. New Jersey licenses are
granted for a period of three or four years, depending on the length of time a
company has been licensed, and if they are renewable. The New Jersey Commission
may impose such conditions upon licensing, as it deems appropriate. These
include the ability of the New Jersey Commission to require the applicant or
licensee to report the names of all of its stockholders as well as the ability
to require any stockholders whom the New Jersey Commission finds not qualified
to dispose of the stock, not receive dividends, not exercise any rights
conferred by the shares, nor receive any remuneration from the licensee for
services rendered or otherwise. Failure of such stockholder to dispose of such
stockholder’s stock could result in the loss of the license. Licenses are also
subject to suspension, revocation or refusal for sufficient cause, including the
violation of any law. In addition, licensees are also subject to monetary
penalties for violations of the New Jersey Act or the regulations of the New
Jersey Commission.
|
Other
Gaming Jurisdictions
|
In
addition to Nevada and New Jersey, our subsidiaries are currently licensed in a
number of other jurisdictions. Although the regulations in these jurisdictions
are not identical to the states of Nevada or New Jersey, their material
attributes are substantially similar, and are summarized below.
The
manufacture, sale and distribution of gaming supplies in each jurisdiction are
subject to various state, county and/or municipal laws, regulations and
ordinances, which are administered by the relevant regulatory agency or agencies
in that jurisdiction. These laws, regulations and ordinances primarily concern
the responsibility, financial stability and character of gaming supply and
equipment owners, distributors, sellers and operators, as well as persons
financially interested or involved in gaming or liquor operations. In many
jurisdictions, selling or distributing gaming supplies may not be conducted
unless proper licenses are obtained. An application for a license may be denied
for any cause which the gaming regulators deem reasonable. In order to ensure
the integrity of manufacturers and distributors of gaming supplies, most
jurisdictions have the authority to conduct background investigations of a
company, its key personnel and significant stockholders. The gaming regulators
may at any time revoke, suspend condition, limit or restrict a license for any
cause deemed reasonable by the gaming regulators. Fines for violation of gaming
laws or regulations may be levied against the holder of a license and persons
involved. Our subsidiaries and their respective key personnel have obtained all
licenses necessary for the conduct of their respective business in the
jurisdictions in which they sell and distribute gaming equipment and supplies.
Suspension or revocation of such licenses could have a material adverse effect
on our operations.
|
Federal
Gaming Registration
|
The
Federal Gambling Devices Act of 1962 (Federal Act) makes it unlawful for a
person to manufacture, transport, or receive gaming machines, gaming devices
(including roulette wheels) or components across interstate lines unless that
person has first registered with the Attorney General of the United States
Department of Justice. In addition, the Federal Act imposes gambling device
identification and record keeping requirements. Violation of the Federal Act may
result in seizure and forfeiture of the equipment, as well as other penalties.
Our subsidiaries, which are involved in the manufacture and transportation of
roulette wheels, are required to register annually.
|
Native
American Gaming Regulation
|
Gaming on
Native American lands is governed by federal law, tribal-state compacts, and
tribal gaming regulations. The Indian Gaming Regulatory Act of 1988 (IGRA)
provides the framework for federal and state control over all gaming on Native
American lands and is administered by the National Indian Gaming Commission and
the Secretary of the United States Department of the Interior. The IGRA requires
that a tribe and the state in which the tribe is located enter into a written
agreement, a tribal-state compact, which governs the terms of the gaming
activities. Tribal-state compacts vary from state-to-state and in many cases
require equipment manufacturers and/or distributors to meet ongoing registration
and licensing requirements. In addition, tribal gaming commissions have been
established by many Native American tribes to regulate gaming-related activity
on Indian lands. Our subsidiaries manufacture and distribute gaming supplies to
Native American tribes who have negotiated compacts with their respective states
and have received federal approval. Currently, GPI USA is authorized to
sell products to Native American casinos in eighteen states.
|
International
Gaming Regulation
|
Certain
foreign countries permit the importation, sale and operation of gaming supplies
in casino and non-casino environments. Certain jurisdictions require the
licensing of manufacturers and distributors of gaming supplies. We and our
subsidiaries manufacture and/or distribute gaming supplies to various
international markets. We have obtained the required licenses to manufacture and
distribute our products in the various foreign jurisdictions where we do
business.
While the
regulatory requirements vary from jurisdiction to jurisdiction, most require
licenses, permits, findings of suitability, documentation of qualification
including evidence of financial stability and/or other required approvals for
companies who manufacture and distribute gaming equipment, as well as the
individual suitability of officers, directors, major stockholders and key
employees. Under the various gaming regulations, key personnel generally include
the principal stockholders, corporate officers and directors of a corporation
and its subsidiaries. Laws of the various gaming regulatory agencies are
generally intended to protect the public and ensure that gaming related activity
is conducted honestly, competitively, and free of corruption.