SGC-12-16-00002-P Problem Gambling Awareness and Training and to Establish a Process for Gaming Facility Patron Self-Exclusion  

  • 3/23/16 N.Y. St. Reg. SGC-12-16-00002-P
    NEW YORK STATE REGISTER
    VOLUME XXXVIII, ISSUE 12
    March 23, 2016
    RULE MAKING ACTIVITIES
    NEW YORK STATE GAMING COMMISSION
    PROPOSED RULE MAKING
    NO HEARING(S) SCHEDULED
     
    I.D No. SGC-12-16-00002-P
    Problem Gambling Awareness and Training and to Establish a Process for Gaming Facility Patron Self-Exclusion
    PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
    Proposed Action:
    Amendment of section 5300.1; and addition of Parts 5323-5324 to Title 9 NYCRR.
    Statutory authority:
    Racing, Pari-Mutuel Wagering and Breeding Law, sections 104(19), 1307(2)(p), 1344, 1345, 1362 and 1363
    Subject:
    Problem gambling awareness and training and to establish a process for gaming facility patron self-exclusion.
    Purpose:
    To promote best responsible gaming practices and establish a process for gaming facility patron self exclusion.
    Substance of proposed rule (Full text is posted at the following State website:www.gaming.ny.gov/):
    The addition of Parts 5323-5324 of Subtitle T of Title 9 NYCRR will allow the New York State Gaming Commission (“Commission”) to prescribe rules that require a gaming facility licensee to develop programs and provide resources to its employees and patrons to help combat problem gambling. The proposed rules provide for the establishment of a problem gambling plan and a self-excluded persons list. The proposed rules also establish parameters to prevent gaming facilities from disseminating false, deceptive or misleading advertising.
    Section 5323.1 sets forth the purpose and scope of the rules which is to ensure that the Commission and gaming facility licensees minimize harm from casino gaming to individuals, families and communities and promote best responsible gaming practices. Section 5323.2 prescribes the contents of a problem gambling plan which each gaming facility licensee must submit to the Commission. The rule requires that the problem gambling plan include goals, procedures and a timetable for implementation as well as identify an individual responsible for implementing and overseeing the plan. Section 5323.3 requires that the problem gambling plan include an employee training program. Section 5323.4 requires quarterly and annual reporting to the Commission in regard to the gaming facility licensee’s problem gambling plan progress and results. Sections 5323.5 and 5323.6 set forth procedures and restrictions on gaming facility advertising and signage, including the content and placement of gambling assistance messages.
    Part 5324 sets forth a process by which an individual can request to be excluded from participation in gaming activities. The rule requires that an individual file a request for self-exclusion which includes the length of exclusion sought (1 year, 5 year or lifetime) and release any claims that could arise from a failure by the State, Commission or gaming facility licensee to withhold or restore gaming privileges or from confiscation of the individual’s winnings. Section 5324.2 requires the commission to maintain an official list of self-excluded persons and to promptly notify a gaming facility licensee’s agents of any additions to or deletions from such list. The rules prescribe that a self-excluded person may not collect winnings or recover losses during the period of exclusion. Section 5324.3 requires that a gaming facility licensee establish procedures and training for its employees to identify and manage any self-excluded persons found to be present on the gaming floor or involved in gaming related activities. Section 5324.4 provides that an individual is removed from the self-exclusion list upon the conclusion of the 1 year or 5 year period of self-exclusion unless the individual requests that the Commission extend the term. Section 5324.5 provides exceptions to the prohibition against allowing self-excluded persons to be on the gaming floor or in areas where gaming activity is conducted. Section 5324.6 sets forth limitations on the disclosure of information related to persons on the self-exclusion list.
    Text of proposed rule and any required statements and analyses may be obtained from:
    Kristen Buckley, Acting Secretary, New York State Gaming Commission, One Broadway Center, 6th floor, Schenectady, NY 12305, (518) 388-3407, email: gamingrules@gaming.ny.gov
    Data, views or arguments may be submitted to:
    Same as above.
    Public comment will be received until:
    45 days after publication of this notice.
    Regulatory Impact Statement
    1. STATUTORY AUTHORITY: Racing, Pari-Mutuel Wagering and Breeding Law (“Racing Law”) section 104(19) grants authority to the Gaming Commission (“Commission”) to promulgate rules and regulations that it deems necessary to carry out its responsibilities. Racing Law section 1307(1) authorizes the Commission to adopt regulations that it deems necessary to protect the public interest in carrying out the provisions of Racing Law Article 13.
    Racing Law section 1307(2)(p) prescribes that the Commission adopt regulations to prevent deceptive gaming-related advertising by gaming facility licensees and their employees and agents.
    Racing Law section 1344(1) and (2) prescribe that the Commission establish a list of persons self-excluded from gaming activities and establish procedures for placement on and removal from such list. In addition Racing Law section 1344(1) and (2) requires the Commission to establish procedures for transmitting identifying information about such persons to a gaming facility licensee and for preventing such persons from receiving gaming-related advertising from the gaming facility licensee.
    Racing Law section 1345 prescribes that self-excluded persons forfeit winnings arising as a result of gaming activities and that any such winnings be deposited into the commercial gaming revenue fund.
    Racing Law section 1362 prescribes prevention and outreach efforts that a gaming facility applicant and licensee must establish and maintain to combat compulsive and problem gambling.
    Racing Law section 1363 prescribes restrictions intended to prevent gaming facilities from disseminating false, deceptive or misleading advertising.
    2. LEGISLATIVE OBJECTIVES: The above referenced statutory provisions carry out the legislature’s stated goal “to develop programs and resources to combat compulsive and problem gambling” as set forth in Racing Law section 1300(12). These provisions also enable the Commission to carry out the Upstate New York Gaming Economic Development Act of 2013 as embodied in Chapter 174 of the Laws of 2013 including to maintain the public confidence and trust in the credibility and integrity of legalized gaming activities in order to support the continued growth of the gaming industry that will contribute to economic development and job development in the state.
    3. NEEDS AND BENEFITS: The proposed rules represent best practices in problem gambling awareness and prevention and are the result of input from (i) experts hosted by the Gaming Commission at numerous forums held throughout the state, including the New York Council on Problem Gambling, National Council on Problem Gambling and National Center on Responsible Gaming, among others; (ii) stakeholder and industry working groups; and (iii) other gambling jurisdiction best practices and regulation.
    Best practices addressed in the proposed rules include requiring each gaming facility licensee to submit its problem gambling plan for Commission approval; establish an employee problem gambling training program; provide quarterly and annual reports to the Commission in regard to the progress and results of the problem gambling plan. The proposed rules also establish procedures and restrictions on gaming facility advertising and signage, including the content and placement of gambling assistance messages and the process by which an individual can request to be excluded from participation in gaming activities.
    4. COSTS:
    (a) Costs to the regulated parties for the implementation of and continuing compliance with the rule: One of the three gaming facility licensees has indicated that the anticipated costs of implementing and complying with the proposed regulations will be approximately $100,000 per year.
    (b) Costs to the regulating agency, the State, and local governments for the implementation of and continued administration of the rule: The Commission currently operates problem gambling programs, including self-exclusion, in video lottery and horse racing. Based on that experience the Commission anticipates that the costs associated with the proposed rules would be negligible.
    (c) The information, including the source or sources of such information, and methodology upon which the cost analysis is based: The cost estimates are based on the Commission’s experience regulating racing and gaming activities within the State.
    5. LOCAL GOVERNMENT: There are no local government mandates associated with these rules.
    6. PAPERWORK: These rules impose paperwork burdens on gaming facility licensees to establish, submit and maintain a problem gambling plan that is aimed to help identify and address problem and compulsive gambling through an employee training program, public and private treatment services and advertising. Gaming facility licensees will submit quarterly and annual reports to the Commission regarding the progress and results of problem gambling plans.
    7. DUPLICATION: These rules do not duplicate, overlap or conflict with any existing State or federal requirements.
    8. ALTERNATIVES: In developing the proposed rules the Commission consulted various experts in the field of problem gambling including the New York Council on Problem Gambling, National Council on Problem Gambling, and National Center on Responsible Gaming, among others. In addition, the Commission consulted stakeholders and industry working groups and reviewed other gambling jurisdiction best practices and regulation. The Commission is also required to promulgate these rules pursuant to Racing Law sections 1307(2)(p) and 1344(1) through (2).
    9. FEDERAL STANDARDS: There are no federal standards applicable to the licensing of gaming facilities in New York; it is purely a matter of New York State law.
    10. COMPLIANCE SCHEDULE: The Commission anticipates that the affected parties will be able to achieve compliance with these rules upon adoption.
    Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
    These rules will not have any adverse impact on small businesses, local governments, jobs or rural areas. These rules are intended to promote public confidence and trust in the credibility and integrity of casino gambling in New York State. The rules will ensure that licensed gaming facilities develop programs and provide resources to employees and patrons that will combat compulsive and problem gambling. The rules will provide for the establishment of a self-excluded persons list and prohibit licensed gaming facilities from creating and disseminating deceptive advertising.
    These rules do not impact local governments or small businesses as it is not expected that any local government or small business will hold a gaming facility license.
    These rules impose no adverse impact on rural areas. These rules apply uniformly throughout the state and solely apply to licensed gaming facilities.
    These rules will have no adverse impact on job opportunities.
    These rules will not adversely impact small businesses, local governments, jobs, or rural areas. Accordingly, a full Regulatory Flexibility Analysis, Rural Area Flexibility Analysis, and Job Impact Statement are not required and have not been prepared.

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