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Definitions - 4 Pa. Cons. Stat. § 1103

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     § 1103.  Definitions.
        The following words and phrases when used in this part shall
     have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Affiliate," "affiliate of" or "person affiliated with."  A
     person that directly or indirectly, through one or more
     intermediaries, controls, is controlled by or is under common
     control with a specified person.
        "Applicant."  Any person who, on his own behalf or on behalf
     of another, is applying for permission to engage in any act or
     activity which is regulated under the provisions of this part.
     In cases in which the applicant is a person other than an
     individual, the Pennsylvania Gaming Control Board shall
     determine the associated persons whose qualifications are
     necessary as a precondition to the licensing of the applicant.
        "Approved," "approval" or "approve."  When used in reference
     to an application submitted to the State Horse Racing Commission
     or the State Harness Racing Commission to conduct harness or
     thoroughbred race meetings or the Pennsylvania Gaming Control
     Board to authorize and regulate the placement and operation of
     slot machines, the terms refer to the date that an application
     to the State Horse Racing Commission, State Harness Racing
     Commission or the board is granted regardless of the pendency of
     any administrative or judicial appeals or other legal action
     challenging the decision of either commission or the board.
        "Associated equipment."  Any equipment or mechanical,
     electromechanical or electronic contrivance, component or
     machine used in connection with gaming, including linking
     devices which connect to progressive slot machines or slot
     machines, replacement parts, equipment which affects the proper
     reporting of gross revenue, computerized systems for controlling
     and monitoring slot machines, including, but not limited to, the
     central control computer and devices for weighing or counting
     money.
        "Authority."  An authority created by the Commonwealth which
     purchases State gaming receipts under section 1202 (relating to
     general and specific powers).
        "Background investigation."  A security, criminal, credit and
     suitability investigation of a person as provided for in this
     part. The investigation shall include the status of taxes owed
     to the United States and to the Commonwealth and its political
     subdivisions.
        "Backside area."  Those areas of the racetrack facility that
     are not generally accessible to the public and which include,
     but are not limited to, those facilities commonly referred to as
     barns, track kitchens, recreation halls, backside employee
     quarters and training tracks, and roadways providing access
     thereto. The term does not include those areas of the racetrack
     facility which are generally accessible to the public, including
     the various buildings commonly referred to as the grandstand or
     the racing surfaces, paddock enclosures and walking rings.
        "Board."  The Pennsylvania Gaming Control Board established
     under section 1201 (relating to Pennsylvania Gaming Control
     Board established).
        "Bonds."  Bonds, notes, instruments, refunding notes and
     bonds and other evidences of indebtedness or obligations, which
     an authority issues to fund the purchase of State gaming
     receipts.
        "Bureau."  The Bureau of Investigations and Enforcement of
     the Pennsylvania Gaming Control Board.
        "Central control computer."  A central site computer
     controlled by the Department of Revenue and accessible by the
     Pennsylvania Gaming Control Board to which all slot machines
     communicate for the purpose of auditing capacity, real-time
     information retrieval of the details of any financial event that
     occurs in the operation of a slot machine, including, but not
     limited to, coin in, coin out, ticket in, ticket out, jackpots,
     machine door openings and power failure, and remote machine
     activation and disabling of slot machines.
        "Cheat."  To alter without authorization the elements of
     chance, method of selection or criteria which determine:
            (1)  The result of a slot machine game.
            (2)  The amount or frequency of payment in a slot machine
        game.
            (3)  The value of a wagering instrument.
            (4)  The value of a wagering credit.
     The term does not include altering for required maintenance and
     repair.
        "Commission" or "commissions."  The State Horse Racing
     Commission or the State Harness Racing Commission, or both as
     the context may require.
        "Compensation."  Any thing of value, money or a financial
     benefit conferred on or received by a person in return for
     services rendered, or to be rendered, whether by that person or
     another.
        "Complimentary service."  Any lodging, service or item which
     is provided to an individual at no cost or at a reduced cost
     which is not generally available to the public under similar
     circumstances. Group rates, including convention and government
     rates, shall be deemed to be generally available to the public.
        "Conduct of gaming."  The licensed placement and operation of
     games of chance under this part and approved by the Pennsylvania
     Gaming Control Board at a licensed facility.
        "Controlling interest."  For a publicly traded domestic or
     foreign corporation, a controlling interest is an interest in a
     legal entity, applicant or licensee if a person's sole voting
     rights under State law or corporate articles or bylaws entitle
     the person to elect or appoint one or more of the members of the
     board of directors or other governing board or the ownership or
     beneficial holding of 5% or more of the securities of the
     publicly traded corporation, partnership, limited liability
     company or other form of publicly traded legal entity, unless
     this presumption of control or ability to elect is rebutted by
     clear and convincing evidence. For a privately held domestic or
     foreign corporation, partnership, limited liability company or
     other form of privately held legal entity, a controlling
     interest is the holding of any securities in the legal entity,
     unless this presumption of control is rebutted by clear and
     convincing evidence.
        "Conviction."  A finding of guilt or a plea of guilty or nolo
     contendere, whether or not a judgment of sentence has been
     imposed as determined by the law of the jurisdiction in which
     the prosecution was held. The term does not include a conviction
     that has been expunged or overturned or for which an individual
     has been pardoned or an order of Accelerated Rehabilitative
     Disposition.
        "Corporation."  Includes a publicly traded corporation.
        "Department."  The Department of Revenue of the Commonwealth.
        "Financial backer."  An investor, mortgagee, bondholder,
     noteholder or other sources of equity or capital provided to an
     applicant or licensed entity.
        "Fund."  The State Gaming Fund established under section 1403
     (relating to establishment of State Gaming Fund and net slot
     machine revenue distribution).
        "Gaming employee."  Any employee of a slot machine licensee,
     including, but not limited to:
            (1)  Cashiers.
            (2)  Change personnel.
            (3)  Counting room personnel.
            (4)  Slot attendants.
            (5)  Hosts or other persons authorized to extend
        complimentary services.
            (6)  Machine mechanics or computer machine technicians.
            (7)  Security personnel.
            (8)  Surveillance personnel.
            (9)  Supervisors and managers.
     The term includes employees of a person holding a supplier's
     license whose duties are directly involved with the repair or
     distribution of slot machines and associated equipment sold or
     provided to the licensed facility within this Commonwealth as
     determined by the Pennsylvania Gaming Control Board. The term
     does not include bartenders, cocktail servers or other persons
     engaged solely in preparing or serving food or beverages,
     clerical or secretarial personnel, parking attendants,
     janitorial, stage, sound and light technicians and other
     nongaming personnel as determined by the board.
        "Gross terminal revenue."  The total of cash or cash
     equivalent wagers received by a slot machine minus the total of:
            (1)  Cash or cash equivalents paid out to patrons as a
        result of playing a slot machine which are paid to patrons
        either manually or paid out by the slot machine.
            (2)  Cash paid to purchase annuities to fund prizes
        payable to patrons over a period of time as a result of
        playing a slot machine.
            (3)  Any personal property distributed to a patron as the
        result of playing a slot machine. This does not include
        travel expenses, food, refreshments, lodging or services.
     The term does not include counterfeit money or tokens, coins or
     currency of other countries which are received in slot machines,
     except to the extent that they are readily convertible to United
     States currency, cash taken in fraudulent acts perpetrated
     against a slot machine licensee for which the licensee is not
     reimbursed or cash received as entry fees for contests or
     tournaments in which the patrons compete for prizes.
        "Holding company."  A person, other than an individual,
     which, directly or indirectly, owns or has the power or right to
     control or to vote any significant part of the outstanding
     voting securities of a corporation or other form of business
     organization. A holding company indirectly has, holds or owns
     any such power, right or security if it does so through an
     interest in a subsidiary or successive subsidiaries.
        "Horsemen of this Commonwealth."  A thoroughbred or
     standardbred horse owner or trainer who enters and runs his or
     her horse at a licensed racing entity in the current or prior
     calendar year and meets the requirements of the horsemen's
     organization of which he or she is a member to participate in
     the receipt of benefits therefrom; or an employee of a trainer
     who meets the requirements of the horsemen's organization of
     which he or she is a member to participate in the receipt of
     benefits therefrom.
        "Horsemen's organization."  A trade association which
     represents the majority of owners and trainers who own and race
     horses at a licensed racetrack.
        "Independent contractor."  A person who performs
     professional, scientific, technical, advisory or consulting
     services for the Pennsylvania Gaming Control Board for a fee,
     honorarium or similar compensation pursuant to a contract.
        "Institutional investor."  Any retirement fund administered
     by a public agency for the exclusive benefit of Federal, State
     or local public employees, investment company registered under
     the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
     80a-1 et seq.), collective investment trust organized by banks
     under Part Nine of the Rules of the Comptroller of the Currency,
     closed-end investment trust, chartered or licensed life
     insurance company or property and casualty insurance company,
     banking and other chartered or licensed lending institution,
     investment advisor registered under The Investment Advisors Act
     of 1940 (54 Stat. 847, 15 U.S.C. § 80b-1 et seq.) and such other
     persons as the Pennsylvania Gaming Control Board may determine
     consistent with this part.
        "Intermediary."  A person, other than an individual, which:
            (1)  is a holding company with respect to a corporation
        or other form of business organization, which holds or
        applies for a license under this part; and
            (2)  is a subsidiary with respect to any holding company.
        "Issued," "issuance" or "issue."  When used in reference to
     an application submitted to the State Horse Racing Commission or
     the State Harness Racing Commission to conduct harness or
     thoroughbred race meetings or the Pennsylvania Gaming Control
     Board to authorize the placement and operation of slot machines,
     the terms refer to the date when a determination by the
     commissions or the board approving an application brought before
     the agencies becomes final, binding and nonappealable and is not
     subject to a pending legal challenge.
        "Key employee."  Any individual who is employed in a director
     or department head capacity and who is empowered to make
     discretionary decisions that regulate slot machine operations,
     including the general manager and assistant manager of the
     licensed facility, director of slot operations, director of cage
     and/or credit operations, director of surveillance, director of
     marketing, director of management information systems, director
     of security, comptroller and any employee who supervises the
     operations of these departments or to whom these department
     directors or department heads report and such other positions
     which the Pennsylvania Gaming Control Board shall determine
     based on detailed analyses of job descriptions as provided in
     the internal controls of the licensee as approved by the board.
     All other gaming employees unless otherwise designated by the
     board shall be classified as non-key employees.
        "Licensed entity."  Any slot machine licensee, manufacturer
     licensee, supplier licensee or other person licensed by the
     Pennsylvania Gaming Control Board under this part.
        "Licensed facility."  The physical land-based location at
     which a licensed gaming entity is authorized to place and
     operate slot machines.
        "Licensed gaming entity" or "slot machine licensee."  A
     person that holds a slot machine license pursuant to this part.
        "Licensed racetrack" or "racetrack."  The physical facility
     and grounds where a person has obtained a license from either
     the State Horse Racing Commission or the State Harness Racing
     Commission to conduct live thoroughbred or harness race meetings
     respectively with pari-mutuel wagering. The term "racetrack" or
     "its racetrack" shall mean the physical land-based location at
     which live horse racing is conducted even if not owned by the
     person.
        "Licensed racing entity."  Any legal entity that has obtained
     a license to conduct live thoroughbred or harness horse race
     meetings respectively with pari-mutuel wagering from either the
     State Horse Racing Commission or the State Harness Racing
     Commission pursuant to the act of December 17, 1981 (P.L.435,
     No.135), known as the Race Horse Industry Reform Act.
        "Manufacturer."  A person who manufactures, builds, rebuilds,
     fabricates, assembles, produces, programs, designs or otherwise
     makes modifications to any slot machine or associated equipment
     for use or play of slot machines in this Commonwealth for gaming
     purposes.
        "Manufacturer license."  A license issued by the Pennsylvania
     Gaming Control Board authorizing a manufacturer to manufacture
     or produce slot machines or associated equipment for use in this
     Commonwealth for gaming purposes.
        "Manufacturer licensee."  A manufacturer that obtains a
     manufacturer license.
        "Member."  An individual appointed to and sworn in as a
     member of the board in accordance with section 1201(b) (relating
     to Pennsylvania Gaming Control Board established).
        "Municipality."  A city, borough, incorporated town or
     township.
        "Net terminal revenue."  The net amount of the gross terminal
     revenue less the tax and assessments imposed by sections 1402
     (relating to gross terminal revenue deductions), 1403 (relating
     to establishment of State Gaming Fund and net slot machine
     revenue distribution), 1405 (relating to Pennsylvania Race Horse
     Development Fund) and 1407 (relating to Pennsylvania Gaming
     Economic Development and Tourism Fund).
        "Nonprimary location."  Any facility in which pari-mutuel
     wagering is conducted by a licensed racing entity other than the
     racetrack where live racing is conducted.
        "Occupation permit."  A permit authorizing an individual to
     be employed or work as a gaming employee at a licensed facility.
        "Permittee."  A holder of a permit issued pursuant to this
     part.
        "Person."  Any natural person, corporation, foundation,
     organization, business trust, estate, limited liability company,
     licensed corporation, trust, partnership, limited liability
     partnership, association or any other form of legal business
     entity.
        "Principal."  An officer; director; person who directly holds
     a beneficial interest in or ownership of the securities of an
     applicant or licensee; person who has a controlling interest in
     an applicant or licensee, or has the ability to elect a majority
     of the board of directors of a licensee or to otherwise control
     a licensee; lender or other licensed financial institution of an
     applicant or licensee, other than a bank or lending institution
     which makes a loan or holds a mortgage or other lien acquired in
     the ordinary course of business; underwriter of an applicant or
     licensee; or other person or employee of an applicant, slot
     machine licensee, manufacturer licensee or supplier licensee
     deemed to be a principal by the Pennsylvania Gaming Control
     Board.
        "Progressive payout."  A slot machine wager payout that
     increases in a monetary amount based on the amounts wagered in a
     progressive system.
        "Progressive system."  A computerized system linking slot
     machines in one or more licensed facilities within this
     Commonwealth and offering one or more common progressive payouts
     based on the amounts wagered.
        "Publicly traded corporation."  A person, other than an
     individual, which:
            (1)  has a class or series of securities registered under
        the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.
        § 78a et seq.);
            (2)  is a registered management company under the
        Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
        80a-1 et seq.); or
            (3)  is subject to the reporting obligations imposed by
        section 15(d) of the Securities Exchange Act of 1934 by
        reason of having filed a registration statement which has
        become effective under the Securities Act of 1933 (48 Stat.
        74, 15 U.S.C. § 77a et seq.).
        "Race Horse Industry Reform Act."  The act of December 17,
     1981 (P.L.435, No.135), known as the Race Horse Industry Reform
     Act.
        "Revenue- or tourism-enhanced location."  Any location within
     this Commonwealth determined by the Pennsylvania Gaming Control
     Board, in its discretion, which will maximize net revenue to the
     Commonwealth or enhance year-round recreational tourism within
     this Commonwealth, in comparison to other proposed facilities
     and is otherwise consistent with the provisions of this part and
     its declared public policy purposes.
        "Security."  As defined in the act of December 5, 1972
     (P.L.1280, No.284), known as the Pennsylvania Securities Act of
     1972.
        "Slot machine."  Any mechanical or electrical contrivance,
     terminal, machine or other device approved by the Pennsylvania
     Gaming Control Board which, upon insertion of a coin, bill,
     ticket, token or similar object therein or upon payment of any
     consideration whatsoever, including the use of any electronic
     payment system except a credit card or debit card, is available
     to play or operate, the play or operation of which, whether by
     reason of skill or application of the element of chance or both,
     may deliver or entitle the person or persons playing or
     operating the contrivance, terminal, machine or other device to
     receive cash, billets, tickets, tokens or electronic credits to
     be exchanged for cash or to receive merchandise or anything of
     value whatsoever, whether the payoff is made automatically from
     the machine or manually. A slot machine:
            (1)  May utilize spinning reels or video displays or
        both.
            (2)  May or may not dispense coins, tickets or tokens to
        winning patrons.
            (3)  May use an electronic credit system for receiving
        wagers and making payouts.
     The term shall include associated equipment necessary to conduct
     the operation of the contrivance, terminal, machine or other
     device.
        "Slot machine license."  A license issued by the Pennsylvania
     Gaming Control Board authorizing a person to place and operate
     slot machines pursuant to this part and the rules and
     regulations under this part.
        "Slot machine licensee."  A person that holds a slot machine
     license.
        "State gaming receipts."  Revenues and receipts required by
     this part to be paid into the State Gaming Fund, the
     Pennsylvania Race Horse Development Fund and the Pennsylvania
     Gaming Economic Development and Tourism Fund, and all rights,
     existing on the effective date of this section or coming into
     existence later, to receive any of those revenues and receipts.
        "State Treasurer."  The State Treasurer of the Commonwealth.
        "Subsidiary."  A person other than an individual. The term
     includes:
            (1)  a corporation, any significant part of whose
        outstanding equity securities are owned, subject to a power
        or right of control, or held with power to vote, by a holding
        company or an intermediary company;
            (2)  a significant interest in a person, other than an
        individual, which is owned, subject to a power or right of
        control, or held with power to vote, by a holding company or
        an intermediary company; or
            (3)  a person deemed to be a subsidiary by the
        Pennsylvania Gaming Control Board.
        "Supplier."  A person that sells, leases, offers or otherwise
     provides, distributes or services any slot machine or associated
     equipment for use or play of slot machines in this Commonwealth.
        "Supplier license."  A license issued by the Pennsylvania
     Gaming Control Board authorizing a supplier to provide products
     or services related to slot machines or associated equipment to
     slot machine licensees.
        "Supplier licensee."  A supplier that holds a supplier
     license.
        "Underwriter."  As defined in the act of December 5, 1972
     (P.L.1280, No.284), known as the Pennsylvania Securities Act of
     1972.
     (Nov. 1, 2006, P.L.1243, No.135, eff. imd.)

        2006 Amendment.  Act 135 amended the defs. of "affilate" or
     "affiliated company," "applicant," "controlling interest,"
     "gross terminal revenue" and "licensed facility" and added the
     defs. of "compensation," "complimentary service," "conduct of
     gaming," "corporation," "holding company," "independent
     contractor," "intermediary," "member," "principal," "publicly
     traded corporation," "subsidiary" and "underwriter."
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Last modified: November 27, 2007