§28. Suitability standards
A. No person shall be eligible to obtain a license or permit, enter into a casino
operating contract with the state, or obtain any other approval pursuant to the provisions of
this Title unless the applicant has demonstrated by clear and convincing evidence to the
board or division, where applicable, that he is suitable. For the purposes of this Title,
"suitable" means the applicant, licensee, casino gaming operator, permittee, or other person
is:
(1) A person of good character, honesty, and integrity.
(2) A person whose prior activities, criminal record, if any, reputation, habits, and
associations do not pose a threat to the public interest of this state or to the effective
regulation and control of gaming, or create or enhance the dangers of unsuitable, unfair, or
illegal practices, methods, and activities in the conduct of gaming or carrying on of the
business and financial arrangements incidental thereto.
(3) Capable of and likely to conduct the activities for which the applicant, licensee,
permittee, casino gaming operator, or licensed eligible facility is licensed, permitted, or
approved pursuant to the provisions of this Title.
(4) Not disqualified pursuant to the provisions of Subsection B of this Section.
B. The board or division, where applicable, shall not grant a license or permit, enter
into a casino operating contract, or issue any other approval pursuant to the provisions of this
Title to any person who is disqualified on the basis of the following criteria:
(1) The conviction or a plea of guilty or nolo contendere by the applicant or any
person required to be suitable under the provisions of this Title for any of the following:
(a) Any offense punishable by imprisonment of more than one year.
(b) Theft or attempted theft, illegal possession of stolen things, or any offense or
attempt involving the misappropriation of property or funds.
(c) Any offense involving fraud or attempted fraud, false statements or declarations.
(d) Gambling as defined by the laws or ordinances of any municipality, any parish
or county, any state, or of the United States.
(e) A crime of violence as defined in R.S. 14:2(B).
(2) There is a current prosecution or pending charge against the person in any
jurisdiction for any offense listed in Paragraph (1) of this Subsection.
(3) The person is not current in filing all applicable tax returns and in the payment
of all taxes, penalties, and interest owed to the state of Louisiana or any political subdivision
of Louisiana, excluding items under formal appeal.
(4) The failure to provide information and documentation to reveal any fact material
to a suitability determination, or the supplying of information which is untrue or misleading
as to a material fact pertaining to the suitability criteria.
C.(1) In the awarding of a license, permit, casino operating contract, or other
approval pursuant to the provisions of this Title, a conviction or plea of guilty or nolo
contendere by the applicant shall not constitute an automatic disqualification as otherwise
required pursuant to the provisions of Subparagraphs (a), (b), (c), and (d) of Paragraph (1)
of Subsection B of this Section if:
(a) Ten or more years has elapsed between the date of application and the successful
completion or service of any sentence, deferred adjudication, or period of probation or
parole; or
(b) Five or more years has elapsed between the date of application and the successful
completion of any sentence, deferred adjudication, or period of probation or parole and the
conviction for an offense defined in R.S. 27:28(B)(1)(b) was a misdemeanor offense.
(2) The provisions of Paragraph (1) of this Subsection shall not apply to any person
convicted of a crime of violence as defined in R.S. 14:2(B).
(3) Notwithstanding any provision of law to the contrary, the board and division may
consider the seriousness and circumstances of any offense, any arrest, or any conviction in
determining suitability in accordance with Subsection A of this Section.
D. An applicant who is not disqualified as a result of Subsection B of this Section
shall be required to demonstrate to the board and division that he otherwise meets the
remaining requirements for suitability, particularly those contained in Paragraphs (A)(1), (2),
and (3) of this Section. Evidence of, or relating to, an arrest, summons, charge, or indictment
of an applicant, or the dismissal thereof, may be considered by the board or division even if
the arrest, summons, charge, or indictment results in acquittal, deferred adjudication,
probation, parole, or pardon.
E. A person who has been found unsuitable or whose license, permit, or approval has
been revoked, in this state or any other jurisdiction, may not apply for a license, permit, or
approval or a finding of suitability for five years from the date there was a finding of
unsuitability, or the license, permit, or approval was revoked, unless the board allows the
application for good cause shown. The board shall promulgate rules necessary to carry out
the provisions of this Section.
F. All licensees, all permittees, the casino gaming operator, and any other persons
who have been found suitable or approved by the board or division shall maintain suitability
throughout the term of the license, permit, casino operating contract, or approval. In the
event of a current prosecution of an offense as provided in R.S. 27:28(B)(2), the board, or
division where applicable, shall have the discretion to defer a determination on a person's
continuing suitability pending the outcome of the proceedings provided that if a decision is
deferred pending such outcome the board, or division where applicable, may take such action
as is necessary to protect the public trust, including the suspension of any license or permit.
G. All licensees, all permittees, the casino gaming operator, and any other persons
required to be found suitable shall have a continuing duty to inform the board and division
of any possible violation of this Title and of any rules adopted by the board. No person who
so informs the board or division of a violation or possible violation shall be discriminated
against by the applicant, licensee, permittee, or casino gaming operator because of supplying
such information.
H.(1)(a) Any person who has or controls directly or indirectly five percent or more
ownership, income, or profit or economic interest in an entity which has or applies for a
license or permit or enters into a casino operating contract with the state pursuant to the
provisions of this Title, or who receives five percent or more revenue interest in the form of
a commission, finder's fee, loan repayment, or any other business expense related to the
gaming operation, or who has the ability or capacity to exercise significant influence over a
licensee, the casino gaming operator, a permittee, or other person required to be found
suitable pursuant to the provisions of this Title, shall meet all suitability requirements and
qualifications pursuant to the provisions of this Title.
(b) In determining whether a person has significant influence for purposes of this
Section, the board or division may consider but is not limited to the following: management
and decision-making authority; operational control; financial relationship; receipt of gaming
revenue or proceeds; financial indebtedness; and gaming related associations.
(2)(a) A lessor of immovable property forming any part of the complex of a licensed
gaming operation is required to submit to suitability.
(b) Notwithstanding anything contained in this Chapter to the contrary, the
obligations to the division of the real estate lessor of a licensee who receives less than two
percent of the net gaming revenue of a licensee and who is not involved in the day-to-day
operations of the licensee shall be to provide such financial information, documentation, and
necessary release forms for the division to make a determination that no person who fails to
meet suitability requirements is receiving any funds received by the lessor from the licensee,
or is participating in the management of the affairs or business operations of the lessor. An
individual who is an officer, director or has five percent or more economic interest in a lessor
who receives less than two percent of the net gaming revenue of a licensee shall provide only
the information required of a person permitted as in R.S. 27:29.4(B).
I. If the board finds that an individual owner or holder of a security of a licensee,
permittee, or the casino gaming operator, or of a holding or intermediary company of a
licensee, permittee, or the casino gaming operator, or any person or persons with an
economic interest in a licensee, permittee, or the casino gaming operator, or a director,
partner, officer, or managerial employee is not suitable, and if as a result, the licensee,
permittee, or casino gaming operator is no longer qualified to continue as a licensee,
permittee, or casino gaming operator, the board shall propose action necessary to protect the
public interest, including the suspension or revocation of the license or permit, or any action
authorized under the casino operating contract. The board may also issue under penalty of
revocation or suspension of a license or permit, or any action authorized under the casino
operating contract, a condition of disqualification naming the person or persons and declaring
that such person or persons may not:
(1) Receive dividends or interest on securities of a person, or a holding or
intermediary company of a person, holding a license, casino operating contract, permit, or
other approval.
(2) Exercise directly, or through a trustee or nominee, a right conferred by securities
of a person, or a holding or intermediary company of a person, holding a license, casino
operating contract, permit, or other approval of the board issued pursuant to the provisions
of this Title.
(3) Receive remuneration or other economic benefit from any person, or a holding
or intermediary company of a person, holding a license, casino operating contract, permit,
or other approval issued pursuant to this Title.
(4) Exercise significant influence over activities of a person, or a holding or
intermediary company of a person, holding a license, casino operating contract, permit, or
other approval issued pursuant to the provisions of this Title.
(5) Continue owning or holding a security of a person, or a holding or intermediary
company of a person, holding a license, casino operating contract, permit, or other approval
of the board issued pursuant to the provisions of this Title or remain as a manager, officer,
director, or partner of a licensee or permittee.
J. In the awarding of a license, permit, casino operating contract, or other approval
pursuant to the provisions of this Title, the board and division may consider that the person
is not current in filing all applicable tax returns and in the payment of all taxes, penalties, and
interest owed the Internal Revenue Service, excluding items under formal appeal.
K. Except for video draw poker manufacturers, the provisions of this Section shall
not apply to persons licensed pursuant to the provisions of the Video Draw Poker Devices
Control Law as provided in Chapter 8 of this Title.