SGC-19-16-00013-P Surveillance Standards for a Licensed Gaming Facility

5/11/16 N.Y. St. Reg. SGC-19-16-00013-P

NEW YORK STATE REGISTER

VOLUME XXXVIII, ISSUE 19

May 11, 2016

RULE MAKING ACTIVITIES

NEW YORK STATE GAMING COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. SGC-19-16-00013-P

Surveillance Standards for a Licensed Gaming Facility

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

Addition of Part 5314 to Title 9 NYCRR.

Statutory authority:

Racing, Pari-Mutuel Wagering and Breeding Law, sections 104(19), 1307(1), (2)(k) and 1331

Subject:

Surveillance standards for a licensed gaming facility.

Purpose:

To govern a gaming facility licensee's system of procedures and standards for surveillance.

Substance of proposed rule (Full text is posted at the following State website:www.gaming.ny.gov):

The addition of Part 5314 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 establish and implement a surveillance plan of operation for its gaming facility. These rules also establish standards for a gaming facility’s surveillance department including location and equipment and the monitoring of certain areas and activities, surveillance department employee training and restrictions, and the retention of records.

Section 5314.1 sets forth the requirements for a gaming facility licensee’s submission of a surveillance plan of operation. Sections 5314.2 through 5314.4 guide a gaming facility licensee on, among other things, surveillance department staffing and equipment. Section 5314.5 and 5314.6 set forth the areas and activities within the gaming facility that are required to be monitored and recorded by the surveillance department. Section 5314.7 establishes the retention periods for audio, visual and other recorded activities.

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 Fl., Schenectady, NY 12305, [phone], email: [e-mail]

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)(k) authorizes the Commission to prescribe for system gaming operations the procedures, forms and methods of management controls including minimum security and surveillance standards. Prior to receiving a gaming facility license, an applicant shall submit to the Commission pursuant to Racing Law section 1334, its internal procedures relating to, among other things, gaming facility surveillance.

2. LEGISLATIVE OBJECTIVES: The above referenced statutory provisions carry out the legislature’s stated goal “to tightly and strictly” regulate casinos “to guarantee public confidence and trust in the credibility and integrity of all casino gambling in the state and to prevent organized crime from any involvement in the casino industry” as set forth in Racing Law section 1300(10).

3. NEEDS AND BENEFITS: The proposed rules implement and help gaming facilities understand the above listed statutory directives regarding the security and surveillance of licensed gaming facilities. The rules provide specificity with respect to the above listed statutory directives to assure transparent, credible and secure gaming operations. The rules represent best practices in gaming facility surveillance standards and are the result of input from stakeholders and other gambling jurisdiction best practices and regulation. Best practices addressed in the proposed rules include the submission and approval of a surveillance plan of operation and any amendments, surveillance department independence and employee restrictions, surveillance room access, required equipment, surveillance locations and activities, and record retention.

4. COSTS:

(a) Costs to the regulated parties for the implementation of and continuing compliance with these rules: One of the three gaming facility licensees has indicated that the anticipated costs of implementing and complying with the proposed rules will be approximately $4 to $5 million.

(b) Costs to the regulating agency, the State, and local governments for the implementation of and continued administration of the rule: The Commission currently reviews surveillance plans in video lottery. Based on that experience the Commission anticipates that the costs associated with the proposed rules would be negligible. These rules will not impose any additional costs on local governments.

(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 surveillance plan of operation that includes a listing of surveillance department equipment and employee staffing. Examples of paperwork burdens on the gaming facility licensees include the drafting and maintenance of surveillance logs, retention of surveillance records, and drafting of notices to the Commission regarding amendments or requests.

7. DUPLICATION: These rules do not duplicate, overlap or conflict with any existing State or federal requirements.

8. ALTERNATIVES: The Commission consulted stakeholders and reviewed other gambling jurisdiction best practices and regulation. Alternatives were discussed and considered with stakeholders and compared to other jurisdictions regulations. These included the appropriate equipment for the surveillance department, the appropriate time period to submit a surveillance plan, the appropriate notification process for amendments to a surveillance plan and the appropriate access the Commission has to the surveillance department log book entries and incident and observation reports. The Commission is also required to promulgate these rules pursuant to Racing Law sections 1307(2)(k).

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 set forth the requirement that a gaming facility licensee submit a surveillance plan to the Gaming Commission for approval in advance of commencing operations. These rules also establish standards for establishing a surveillance department, employee restrictions, required surveillance and recording and retention of surveillance records. These rules apply only to the licensed gaming facilities.

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.