GPWA Times Magazine - Issue 29 - July 2014

The regulated U.S. states T hree jurisdictions — Nevada, New Jersey and Delaware —have enacted rules and regulations permitting online gambling.Significantly,Nevadaonlyallowsonlinepoker, while New Jersey and Delaware offer various casino-style games. It is important tonote that those suppliers involved in interactive gaming remain subject to the laws and regulations governing general gamingactivity in the state. Links to the gaming regulators’ websites are included for your reference. Additional resources arealsoprovidedbelow. NEVADA In general, there are licenses available for manufacturers of interactive gaming systems, as well as those that provide as- sociatedequipment for interactivegaming systems. Operators of interactive gaming systems must also be licensed. Finally, those providing certain services to interactive gaming opera- torsmust receive a service gaming service supplier license. It shouldbe noted that core hardware used tooperate an inter- activegaming system, suchas serversanddatabases,must be located inNevada. Certain principal employees of companies applying for a Manufacturer of Interactive Gaming Systems or an Interactive Gaming Service Provider License must also submit personal applications in connectionwith the company applications. Nevada Gaming Commission/State Gaming Control Board: www.gaming.nv.gov DELAWARE In November 2013, Delaware began operating online casino- stylewageringthrough itsracetrackcasinos (thoughtheLottery operates the gaming platform). Unlike other states that have authorized or are exploring limited online wagering activities for solelypokerorother games,Delawarehasauthorizeda full range of casino games to bemade available through Internet portals located on the state’s racetrackwebsites. In addition, Nevada and Delaware have an agreement —which has yet to be implemented— that allows the two states to share player liquiditypools for onlinepoker games. The regulations in Delaware contain provisions for licensing and approval of suppliers working with the Lottery to pro- vide online gaming. Similar to Nevada, suppliers are divided into two classifications under the rules: technology providers, which supply goods or services related to thewagering activ- ity or financial accounts, and service providers, which provide ancillary services in the amount of $100,000 or more in any 12-monthperiod. All equipmentused toprovide Internet lotterygamingservices must be approved by the Director of the Lottery. Application requirements include testing, various trial periods and certifi- cation that the games and systemsmeet the Lottery’s techni- cal requirements and that servers arebased in theU.S. Dependingon the types of goods or services provided, certain employees within a licensed technology or service provider organization may be required by the Director of the Lottery to obtain an employee license. Employee licenses are issued in three classes depending on the job duties involved and in- clude the following classes: Key Employee, Gaming Employee andServiceEmployee. Delaware Lottery: www.delottery.com NEW JERSEY New Jerseywas the third state tobeginaccepting Internetwa- gers and is the most populous jurisdiction to offer Internet wagering in the United States. Though the Division of Gaming Enforcement treats suppliers of Internet gaming equipment the same as those entities that supply gaming equipment to licensedbrick-and-mortarcasinos, it is important forpotential suppliers to understand the statutory and regulatory policies governing Internet andmobile gaming inNew Jersey. Thoseentities thatprovide Internet-relatedgamingequipment must be licensedas aGaming-RelatedCasinoService Industry provider. Inorder to complete theapplicationprocess, theap- plicant must complete the Business Entity Disclosure Form – Gaming, Multi-Jurisdictional Personal History Disclosure and New Jersey Supplemental Form, and the Equal Opportunity andAffirmativeActionObligations Form. Certain individuals who are employed by Gaming-Related Casino Service Industry License applicants or licensees must file as qualifying individuals. These individuals includeofficers, directors, sales representatives, signatories on agreements, partners, soleproprietorsanddirector indirectbeneficial inter- est holdersholding 5percent ormore interest in theapplicant. These individualsmust completeaMulti-Jurisdictional Personal HistoryDisclosureFormandNew JerseySupplement Form. New JerseyDivisionofGamingEnforcement:www.nj.gov/oag/ge/ New JerseyCasinoControl Commission: www.nj.gov/casinos AdditionalOnlineResources: CasinoCity’s CasinoVendors: www.casinovendors.com RegulatoryManagement Counselors, P.C.: www.rmclegal.com AmericanGamingAssociation: www.americangaming.org Associationof GamingEquipmentManufacturers: www.agem.org GamingStandards Association: www.gamingstandards.com 51 Regulations 101: An introduction to supplier licensing for technology companies

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