36.03.03.04

.04 Qualification by the Commission.

A. In determining the qualifications of an applicant for an operation license, the Commission shall consider the information submitted by the applicant in response to the Location Commission's solicitation.

B. An applicant for an operation license shall present in its application sufficient information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence:

(1) The applicant's financial stability, integrity, and responsibility;

(2) The integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bears a relation to the application;

(3) The applicant's good character, honesty, and integrity;

(4) Sufficient business ability and experience of the applicant; and

(5) The viability and appropriateness of the applicant's labor practices.

C. The Commission shall disqualify an applicant for an operation license on the basis of any of the following criteria:

(1) Failure of the applicant to prove by clear and convincing evidence that the applicant and each person who owns or controls the applicant are qualified;

(2) Failure of the applicant or any person required to be qualified as a condition of a license to provide information, documentation, and assurances required by or requested by the Commission or the Location Commission;

(3) Failure of the applicant or any person required to be qualified as a condition of a license to reveal any fact material to qualification;

(4) Supplying, by the applicant or any person required to be qualified as a condition of a license, information that is untrue or misleading as to a material fact concerning the qualification criteria;

(5) Conviction of the applicant, or of any person required to be qualified as a condition of a license, of an offense under the laws of any jurisdiction that is a criminal offense involving moral turpitude or a gambling offense;

(6) Current prosecution of the applicant, or a person who is required to be qualified as a condition of a license, for an offense described under §C(5) of this regulation, provided that, at the request of the applicant, the Commission may defer its decision on the application during the pendency of the charge;

(7) Pursuit by the applicant, or a person who is required to be qualified as a condition of a license, of economic gain in an occupational manner or context that is in violation of the laws of the State, if the pursuit creates a reasonable belief that participation of the applicant in video lottery operations would be inimical to the policies of State law and this chapter;

(8) Identification of the applicant, or a person who is required to be qualified as a condition of a license, as a career offender, a member of a career offender cartel, or an associate of a career offender or career offender cartel, in a manner that creates a reasonable belief that the association is of a nature as to be inimical to the policies of State law and this chapter;

(9) The commission of an act by the applicant, or a person who is required to be qualified as a condition of a license, within the prior 7 years, that would constitute an offense described under §C(5) of this regulation, even if the act was not prosecuted or may not be prosecuted under the criminal laws of any jurisdiction; or

(10) Willful defiance by the applicant, or a person who is required to be qualified as a condition of a license, of a legislative investigatory body or other official investigatory body of the United States, or a jurisdiction within the United States, when the body is engaged in the investigation of crimes relating to gambling, official corruption, or organized crime activity.

D. If the Commission identifies potential problems in the information submitted by the applicant with regard to a subject area that is not relevant to §B or C of this regulation, the Commission shall notify the Location Commission of these potential problems.

E. The Commission shall notify the Location Commission upon making a determination that an applicant is or is not qualified to hold an operation license.