Court Opinions

State Laws

US Code

US Constitution

Slot machine license application financial fitness requirements - 4 Pa. Cons. Stat. § 1313

Legal Research Home > Pennsylvania Statutes

     § 1313.  Slot machine license application financial fitness
                requirements.
        (a)  Applicant financial information.--The board shall
     require each applicant for a slot machine license to produce the
     information, documentation and assurances concerning financial
     background and resources as the board deems necessary to
     establish by clear and convincing evidence the financial
     stability, integrity and responsibility of the applicant, its
     affiliate, intermediary, subsidiary or holding company,
     including, but not limited to, bank references, business and
     personal income and disbursement schedules, tax returns and
     other reports filed with governmental agencies, and business and
     personal accounting and check records and ledgers. In addition,
     each applicant shall in writing authorize the examination of all
     bank accounts and records as may be deemed necessary by the
     board.
        (b)  Financial backer information.--The board shall require
     each applicant for a slot machine license to produce the
     information, documentation and assurances as may be necessary to
     establish by clear and convincing evidence the integrity of all
     financial backers, investors, mortgagees, bondholders and
     holders of indentures, notes or other evidences of indebtedness,
     either in effect or proposed. Any such banking or lending
     institution and institutional investors may be waived from the
     qualification requirements. A banking or lending institution or
     institutional investor shall, however, produce for the board
     upon request any document or information which bears any
     relation to the proposal submitted by the applicant or
     applicants. The integrity of the financial sources shall be
     judged upon the same standards as the applicant. Any such person
     or entity shall produce for the board upon request any document
     or information which bears any relation to the application. In
     addition, the applicant shall produce whatever information,
     documentation or assurances the board requires to establish by
     clear and convincing evidence the adequacy of financial
     resources.
        (c)  Applicant's ability to pay license fee.--The board shall
     require each applicant for a Category 1 or 2 slot machine
     license at the time of application to post a letter of credit or
     bond in the amount of $50,000,000 to demonstrate the financial
     ability to pay the slot machine license fee as required in
     section 1209 (relating to slot machine license fee) if issued a
     slot machine license by the board. Each applicant for a Category
     3 slot machine license at the time of application shall be
     required to post a letter of credit or bond in the amount of
     $5,000,000 to demonstrate the financial ability to pay the
     Category 3 slot machine license fee as required in section 1305
     (relating to Category 3 slot machine license) if issued a slot
     machine license by the board.
        (d)  Applicant's business experience.--The board shall
     require each applicant for a slot machine license to produce the
     information, documentation and assurances as the board may
     require to establish by clear and convincing evidence that the
     applicant has sufficient business ability and experience to
     create and maintain a successful, efficient operation.
     Applicants shall produce the names of all proposed key employees
     and a description of their respective or proposed
     responsibilities as they become known.
        (e)  Applicant's operational viability.--In assessing the
     financial viability of the proposed licensed facility, the board
     shall make a finding, after review of the application, that the
     applicant is likely to maintain a financially successful, viable
     and efficient business operation and will likely be able to
     maintain a steady level of growth of revenue to the Commonwealth
     pursuant to section 1403 (relating to establishment of State
     Gaming Fund and net slot machine revenue distribution).
     Notwithstanding any provision of this part to the contrary, an
     applicant that includes a commitment or promise to pay a slot
     machine license fee in excess of the amount provided in section
     1209 or a distribution of terminal revenue in excess of the
     amounts provided in sections 1403, 1405 (relating to
     Pennsylvania Race Horse Development Fund) and 1407 (relating to
     Pennsylvania Gaming Economic Development and Tourism Fund) shall
     not be deemed a financially successful, viable or efficient
     business operation and shall not be approved for a slot machine
     license.
        (f)  Additional information.--In addition to other
     information required by this part, a person applying for a slot
     machine license shall provide the following information:
            (1)  The organization, financial structure and nature of
        all businesses operated by the person, including any
        affiliate, intermediary, subsidiary or holding companies, the
        names and personal employment and criminal histories of all
        officers, directors and key employees of the corporation; the
        names of all holding, intermediary, affiliate and subsidiary
        companies of the corporation; and the organization, financial
        structure and nature of all businesses operated by such
        holding, intermediary and subsidiary companies as the board
        may require, including names and personal employment and
        criminal histories of such officers, directors and principal
        employees of such corporations and companies as the board may
        require.
            (2)  The extent of securities held in the corporation by
        all officers, directors and underwriters and their
        remuneration in the form of salary, wages, fees or otherwise.
            (3)  Copies of all management and service contracts.
     (Nov. 1, 2006, P.L.1243, No.135, eff. imd.)

        2006 Amendment.  Act 135 amended subsec. (e).

Last modified: November 27, 2007