SGC-35-13-00002-P Video Lottery Gaming Advertising
8/28/13 N.Y. St. Reg. SGC-35-13-00002-P
NEW YORK STATE REGISTER
VOLUME XXXV, ISSUE 35
August 28, 2013
RULE MAKING ACTIVITIES
NEW YORK STATE GAMING COMMISSION
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. SGC-35-13-00002-P
Video Lottery Gaming Advertising
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Addition of section 5116.6(b)(3) to Title 9 NYCRR.
Statutory authority:
Tax Law, sections 1604 and 1617-a; and Racing, Pari-Mutuel Wagering and Breeding Law, section 104
Subject:
Video Lottery Gaming advertising.
Purpose:
To conform with the Memorandum of Understanding between the Seneca Nation of Indians and the State of New York.
Text of proposed rule:
Pursuant to the authority granted by Section 104 of the Racing, Pari-Mutuel Wagering and Breeding Law and Sections 1604 and 1617-a of the Tax Law, the New York State Gaming Commission hereby promulgates this amendment of Section 5116.6 of Title 9 of the Official Compilation of Codes, Rules and Regulations of the State of New York, to read as follows:
§ 5116.6. Advertising.
(a) Advertising generally.
(1) The content or concept of all advertising and any advertisement shall be provided as prescribed by the commission.
(2) A video lottery gaming agent shall be responsible for all advertising and advertisements that are made by the agents or representatives of such video lottery gaming agent, regardless of whether the video lottery gaming agent participated directly in such advertising’s development, preparation, placement or dissemination.
(3) Issuance of a video lottery gaming agent license pursuant to these regulations permits conducting video lottery gaming in a manner approved by the commission. Use of any name, logo or design owned by the commission or the video lottery gaming machine manufacturers without a valid license may constitute a violation of Federal and State copyright and trademark laws. Permitted use of the logo by a licensee must be in compliance with approved guidelines.
(b) Criteria governing advertising.
(1) Approved advertising criteria shall be published from time to time by the commission.
(2) The following practices shall be prohibited with respect to all advertisements:
(i) The use or statement of any information, representation, or description that contrasts or compares video lottery gaming agents or facilities with regard to total payout.
(ii) The failure to maintain any offer for the advertised period of availability or in a quantity sufficient to meet reasonably anticipated demand. Should anticipated demand be exceeded, items of equal or greater value may be substituted on notice to the commission.
(3) No video lottery agent located within the geographic area defined by:
(i) to the east, State Route 14 from Sodus Point to the Pennsylvania border with New York;
(ii) to the north, the border between New York and Canada;
(iii) to the south, the Pennsylvania border with New York; and
(iv) to the west, the border between New York and Canada and the border between Pennsylvania and New York, is permitted to use the terms “slots,” “slot machines,” and “casino” or “casinos” for marketing or other purposes.
Text of proposed rule and any required statements and analyses may be obtained from:
Julie B. Silverstein Barker, Associate Attorney, New York Gaming Commission, Division of Lottery, One Broadway Center, Schenectady, NY 12301-7500, (518) 388-3408, email: nylrules@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: Pursuant to the authority conferred in New York State Tax Law Sections 1604(a) and 1617-a(c), Racing, Pari-Mutuel Wagering and Breeding Law Section 104(19), the following advertising restrictions shall apply to any video lottery gaming agent located within the area west of State Route 14, from Sodus Point on Lake Ontario to the north to the New York-Pennsylvania border to the south.
2. Legislative objectives: As part of a settlement of a longstanding dispute with the Seneca Nation of Indians, the State of New York agreed to, as soon as practicable, commence a notice of proposed rulemaking to prohibit the use of the terms “slots”, “slot machines”, and “casino” or “casinos” for marketing or other purposes by video lottery gaming device facilities or licensed agents of the State Lottery, operating within the Seneca Nation exclusivity zone. The zone is the geographic area defined by: (i) to the east, State Route 14 from Sodus Point to the Pennsylvania border with New York; (ii) to the north, the border between New York and Canada; (iii) to the south, the Pennsylvania border with New York; and (iv) to the west, the border between New York and Canada and the border between Pennsylvania and New York.
3. Needs and benefits: This amendment allows the State to fulfill its obligation in the Memorandum of Understanding with the Nation to prohibit specified advertising or marketing.
4. Costs:
a. Costs to regulated parties for the implementation and continuing compliance with the rule: Certain video lottery agents within a portion of Western New York may need to modify advertising and marketing materials to conform to the amended regulation.
b. Costs to the agency, the State, and local governments for the implementation and continuation of the rule: None.
c. Sources of cost evaluations: The foregoing cost evaluation is based on the New York State Lottery’s experience in operating video Lottery games for almost 10 years.
5. Local government mandates: None.
6. Paperwork: There are no changes in paperwork requirements.
7. Duplication: None.
8. Alternatives: The State of New York committed to this rulemaking pursuant to the Memorandum of Understanding by and between the Seneca Nation of Indians and the State of New York, commonly referred to as the Exclusivity Settlement Agreement.
9. Federal standards: None.
10. Compliance schedule: None.
Regulatory Flexibility Analysis and Rural Area Flexibility Analysis
The proposal does not require a Regulatory Flexibility Analysis Statement or Rural Area Flexibility Analysis Statement. There will be no adverse impact on jobs, rural areas, small business or local governments.
Job Impact Statement
The proposed addition of paragraph (3) to subdivision (b) of 9 NYCRR § 5116.6 does not require a Job Impact Statement because there will be no adverse impact on jobs and employment opportunities in New York State.
The amendment is being made to conform to the Memorandum of Understanding between the Seneca Nation of Indians and the State of New York, which provides that the State will cause the Gaming Commission to promulgate regulations implementing the advertising restrictions contained in such Memorandum of Understanding.
