N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 1341: Licensee leases and contracts

§ 1341. Licensee leases and contracts. 1. Unless otherwise provided in

this subdivision, no agreement shall be lawful which provides for the

payment, however defined, of any direct or indirect interest, percentage

or share of: any money or property gambled at a gaming facility; any

money or property derived from gaming activity; or any revenues, profits

or earnings of a gaming facility. Notwithstanding the foregoing:

(a) Agreements which provide only for the payment of a fixed sum which

is in no way affected by the amount of any such money, property,

revenues, profits or earnings shall not be subject to the provisions of

this subdivision; and receipts, rentals or charges for real property,

personal property or services shall not lose their character as payments

of a fixed sum because of contract, lease, or license provisions for

adjustments in charges, rentals or fees on account of changes in taxes

or assessments, cost-of-living index escalations, expansion or

improvement of facilities, or changes in services supplied.

(b) Agreements between a gaming facility licensee and a junket

enterprise or junket representative licensed, qualified or registered in

accordance with the provisions of this article and the regulations of

the commission that provide for the compensation of the junket

enterprise or junket representative by the gaming facility licensee

based upon the actual gaming activities of a patron procured or referred

by the junket enterprise or junket representative shall be lawful if

filed with the commission prior to the conduct of any junket that is

governed by the agreement.

(c) Agreements between a gaming facility licensee and its employees

which provide for gaming employee or casino key employee profit sharing

shall be lawful if the agreement is in writing and filed with the

commission prior to its effective date. Such agreements may be reviewed

by the commission.

(d) Agreements to lease an approved gaming facility or the land

thereunder and agreements for the complete management of all gaming

operations in a gaming facility shall not be subject to the provisions

of this subdivision.

(e) Agreements which provide for percentage charges between the gaming

facility licensee and a holding company or intermediary company of the

gaming facility licensee shall be in writing and filed with the

commission but shall not be subject to the provisions of this

subdivision.

(f) Written agreements relating to the operation of multi-casino or

multi-state progressive slot machine systems between one or more gaming

facility licensees and a licensed casino vendor enterprise or an

eligible applicant for such license, which provide for an interest,

percentage or share of the gaming facility licensee's revenues, profits

or earnings from the operation of such multi-casino or multi-state

progressive slot machines to be paid to the casino vendor enterprise

licensee or applicant shall not be subject to the provisions of this

subdivision if the agreements are filed with and approved by the

commission.

2. Each gaming facility applicant or licensee shall maintain, in

accordance with the rules of the commission, a record of each written or

unwritten agreement regarding the realty, construction, maintenance, or

business of a proposed or existing gaming facility or related facility.

The foregoing obligation shall apply regardless of whether the gaming

facility applicant or licensee is a party to the agreement. Any such

agreement may be reviewed by the commission on the basis of the

reasonableness of its terms, including the terms of compensation, and of

the qualifications of the owners, officers, employees, and directors of

any enterprise involved in the agreement, which qualifications shall be

reviewed according to the standards enumerated in section one thousand

three hundred twenty-three of this article. If the commission

disapproves such an agreement or the owners, officers, employees, or

directors of any enterprise involved therein, the commission may require

its termination.

Every agreement required to be maintained, and every related agreement

the performance of which is dependent upon the performance of any such

agreement, shall be deemed to include a provision to the effect that, if

the commission shall require termination of an agreement, such

termination shall occur without liability on the part of the gaming

facility applicant or licensee or any qualified party to the agreement

or any related agreement. Failure expressly to include such a provision

in the agreement shall not constitute a defense in any action brought to

terminate the agreement. If the agreement is not maintained or presented

to the commission in accordance with commission regulations, or the

disapproved agreement is not terminated, the commission may pursue any

remedy or combination of remedies provided in this article.

For the purposes of this subdivision, "gaming facility applicant"

includes any person required to hold a gaming facility license who has

applied to the commission for a gaming facility license or any approval

required.

3. Nothing in this article shall be deemed to permit the transfer of

any license, or any interest in any license, or any certificate of

compliance or any commitment or reservation without the approval of the

commission.