§ 1328 — Junket operator licensing

§ 1328. Junket operator licensing. 1. No junkets may be organized or\npermitted except in accordance with the provisions of this article. No\nperson may act as a junket representative or junket enterprise except in\naccordance with this section.\n 2. A junket representative employed by a gaming facility licensee, an\napplicant for a gaming facility license or an affiliate of a gaming\nfacility licensee shall be licensed as a casino key employee; provided,\nhowever, that said licensee need not be a resident of this state. No\ngaming facility licensee or applicant for a gaming facility license may\nemploy or otherwise engage a junket representative who is not so\nlicensed.\n 3. Junket enterprises that, and junket representatives not employed by\na gaming facility licensee or an applicant for a gaming facility license\nor by a junket enterprise who, engage in activities governed by this\nsection shall be licensed as an ancillary casino vendor enterprise in\naccordance with subdivision three of section one thousand three hundred\ntwenty-six of this title, unless otherwise directed by the commission;\nprovided, however, that any such junket enterprise or junket\nrepresentative who has disqualified shall be entitled to establish his\nor her rehabilitation from such disqualification pursuant to article\ntwenty-three-A of the correction law. Any non-supervisory employee of a\njunket enterprise or junket representative licensed as an ancillary\ncasino vendor enterprise in accordance with subdivision three of section\none thousand three hundred twenty-six of this title shall be registered.\n 4. Prior to the issuance of any license required by this section, an\napplicant for licensure shall submit to the jurisdiction of the state\nand shall demonstrate that he or she is amenable to service of process\nwithin this state. Failure to establish or maintain compliance with the\nrequirements of this subdivision shall constitute sufficient cause for\nthe denial, suspension or revocation of any license issued pursuant to\nthis section.\n 5. Upon petition by the holder of a gaming facility license, an\napplicant for a casino key employee license intending to be employed as\na junket representative may be issued a temporary license by the\ncommission in accordance with regulations promulgated, provided that:\n (a) the applicant for licensure is employed by a gaming facility\nlicensee; and\n (b) the applicant for licensure has filed a completed application as\nrequired by the commission.\n 6. The commission shall have the authority to immediately suspend,\nlimit or condition any temporary license issued pursuant to this\nsection, pending a hearing on the qualifications of the junket\nrepresentative.\n 7. Unless otherwise terminated, any temporary license issued pursuant\nto this section shall expire twelve months from the date of its\nissuance, and shall be renewable by the commission for one additional\nsix month period.\n 8. Every agreement concerning junkets entered into by a gaming\nfacility licensee and a junket representative or junket enterprise shall\nbe deemed to include a provision for its termination without liability\non the part of the gaming facility licensee, if the commission orders\nthe termination upon the suspension, limitation, conditioning, denial or\nrevocation of the licensure of the junket representative or junket\nenterprise. Failure to expressly include such a condition in the\nagreement shall not constitute a defense in any action brought to\nterminate the agreement.\n 9. A gaming facility licensee shall be responsible for the conduct of\nany junket representative or junket enterprise associated with it and\nfor the terms and conditions of any junket engaged in on its premises,\nregardless of the fact that the junket may involve persons not employed\nby such a gaming facility licensee.\n 10. A gaming facility licensee shall be responsible for any violation\nor deviation from the terms of a junket. Notwithstanding any other\nprovisions of this article, the commission may order restitution to\njunket participants, assess penalties for such violations or deviations,\nprohibit future junkets by the gaming facility licensee, junket\nenterprise or junket representative, and order such further relief as it\ndeems appropriate.\n 11. The commission shall, by regulation, prescribe methods, procedures\nand forms for the delivery and retention of information concerning the\nconduct of junkets by gaming facility licensees. Without limitation of\nthe foregoing, each gaming facility licensee, in accordance with the\nrules of the commission, shall:\n (a) Maintain on file a report describing the operation of any junket\nengaged in on its premises; and\n (b) Submit to the commission a list of all its employees who are\nacting as junket representatives.\n 12. Each gaming facility licensee, junket representative or junket\nenterprise shall, in accordance with the rules of the commission, file a\nreport with the commission with respect to each list of junket patrons\nor potential junket patrons purchased directly or indirectly by the\ngaming facility licensee, junket representative or enterprise.\n 13. The commission shall have the authority to determine, either by\nregulation, or upon petition by the holder of a gaming facility license,\nthat a type of arrangement otherwise included within the definition of\n"junket" shall not require compliance with any or all of the\nrequirements of this section. In granting exemptions, the commission\nshall consider such factors as the nature, volume and significance of\nthe particular type of arrangement, and whether the exemption would be\nconsistent with the public policies established by this article. In\napplying the provisions of this subdivision, the commission may\ncondition, limit, or restrict any exemption as it may deem appropriate.\n 14. No junket enterprise or junket representative or person acting as\na junket representative may:\n (a) Engage in efforts to collect upon checks that have been returned\nby banks without full and final payment;\n (b) Exercise approval authority with regard to the authorization or\nissuance of credit;\n (c) Act on behalf of or under any arrangement with a gaming facility\nlicensee or a gaming patron with regard to the redemption,\nconsolidation, or substitution of the gaming patron's checks awaiting\ndeposit;\n (d) Individually receive or retain any fee from a patron for the\nprivilege of participating in a junket; and\n (e) Pay for any services, including transportation, or other items of\nvalue provided to, or for the benefit of, any patron participating in a\njunket.\n