§ 1341 — Licensee leases and contracts

§ 1341. Licensee leases and contracts. 1. Unless otherwise provided in\nthis subdivision, no agreement shall be lawful which provides for the\npayment, however defined, of any direct or indirect interest, percentage\nor share of: any money or property gambled at a gaming facility; any\nmoney or property derived from gaming activity; or any revenues, profits\nor earnings of a gaming facility. Notwithstanding the foregoing:\n (a) Agreements which provide only for the payment of a fixed sum which\nis in no way affected by the amount of any such money, property,\nrevenues, profits or earnings shall not be subject to the provisions of\nthis subdivision; and receipts, rentals or charges for real property,\npersonal property or services shall not lose their character as payments\nof a fixed sum because of contract, lease, or license provisions for\nadjustments in charges, rentals or fees on account of changes in taxes\nor assessments, cost-of-living index escalations, expansion or\nimprovement of facilities, or changes in services supplied.\n (b) Agreements between a gaming facility licensee and a junket\nenterprise or junket representative licensed, qualified or registered in\naccordance with the provisions of this article and the regulations of\nthe commission that provide for the compensation of the junket\nenterprise or junket representative by the gaming facility licensee\nbased upon the actual gaming activities of a patron procured or referred\nby the junket enterprise or junket representative shall be lawful if\nfiled with the commission prior to the conduct of any junket that is\ngoverned by the agreement.\n (c) Agreements between a gaming facility licensee and its employees\nwhich provide for gaming employee or casino key employee profit sharing\nshall be lawful if the agreement is in writing and filed with the\ncommission prior to its effective date. Such agreements may be reviewed\nby the commission.\n (d) Agreements to lease an approved gaming facility or the land\nthereunder and agreements for the complete management of all gaming\noperations in a gaming facility shall not be subject to the provisions\nof this subdivision.\n (e) Agreements which provide for percentage charges between the gaming\nfacility licensee and a holding company or intermediary company of the\ngaming facility licensee shall be in writing and filed with the\ncommission but shall not be subject to the provisions of this\nsubdivision.\n (f) Written agreements relating to the operation of multi-casino or\nmulti-state progressive slot machine systems between one or more gaming\nfacility licensees and a licensed casino vendor enterprise or an\neligible applicant for such license, which provide for an interest,\npercentage or share of the gaming facility licensee's revenues, profits\nor earnings from the operation of such multi-casino or multi-state\nprogressive slot machines to be paid to the casino vendor enterprise\nlicensee or applicant shall not be subject to the provisions of this\nsubdivision if the agreements are filed with and approved by the\ncommission.\n 2. Each gaming facility applicant or licensee shall maintain, in\naccordance with the rules of the commission, a record of each written or\nunwritten agreement regarding the realty, construction, maintenance, or\nbusiness of a proposed or existing gaming facility or related facility.\nThe foregoing obligation shall apply regardless of whether the gaming\nfacility applicant or licensee is a party to the agreement. Any such\nagreement may be reviewed by the commission on the basis of the\nreasonableness of its terms, including the terms of compensation, and of\nthe qualifications of the owners, officers, employees, and directors of\nany enterprise involved in the agreement, which qualifications shall be\nreviewed according to the standards enumerated in section one thousand\nthree hundred twenty-three of this article. If the commission\ndisapproves such an agreement or the owners, officers, employees, or\ndirectors of any enterprise involved therein, the commission may require\nits termination.\n Every agreement required to be maintained, and every related agreement\nthe performance of which is dependent upon the performance of any such\nagreement, shall be deemed to include a provision to the effect that, if\nthe commission shall require termination of an agreement, such\ntermination shall occur without liability on the part of the gaming\nfacility applicant or licensee or any qualified party to the agreement\nor any related agreement. Failure expressly to include such a provision\nin the agreement shall not constitute a defense in any action brought to\nterminate the agreement. If the agreement is not maintained or presented\nto the commission in accordance with commission regulations, or the\ndisapproved agreement is not terminated, the commission may pursue any\nremedy or combination of remedies provided in this article.\n For the purposes of this subdivision, "gaming facility applicant"\nincludes any person required to hold a gaming facility license who has\napplied to the commission for a gaming facility license or any approval\nrequired.\n 3. Nothing in this article shall be deemed to permit the transfer of\nany license, or any interest in any license, or any certificate of\ncompliance or any commitment or reservation without the approval of the\ncommission.\n