United States: Gaming Legal News: January 9, 2013 - Volume 6, Number 1

Last Updated: January 23 2013

DICKINSON WRIGHT EXPANDS ITS PRESENCE IN PHOENIX THROUGH COMBINATION WITH MARISCAL, WEEKS, MCINTYRE & FRIEDLANDER, P.A., ADDING LEADING INDIAN LAW ATTORNEY

Dickinson Wright PLLC, with offices in Michigan, Arizona, Nevada, Ohio, Tennessee, Washington, D.C., and Toronto, Ontario, and Mariscal, Weeks, McIntyre & Friedlander, P.A., based in Phoenix, recently announced the combination of their law practices. In Arizona the combined firm will operate under the name Dickinson Wright/Mariscal Weeks. The combination became effective January 1, 2013.

The combination enhances the Dickinson Wright Gaming Group through the addition of Glenn M. Feldman, one of the most highly regarded Indian law and Indian gaming law attorneys in the country. Mr. Feldman successfully argued the landmark Indian gaming case of California v. Cabazon Band of Mission Indians before the United States Supreme Court, resulting in the 1987 decision that led to enactment of the Indian Gaming Regulatory Act of 1988 and the development of the Indian casino industry in the United States. His practice is devoted exclusively to federal Indian law, with a heavy emphasis on Indian gaming and reservation economic development activities.

"The Arizona and Southwestern U.S. legal and business communities are key markets for our client base, and our excitement in completing this combination is matched only by our resolve to make excellence in client service the continuing hallmark of our combined firm," said William T. Burgess, CEO of Dickinson Wright. "For nearly half a century, Mariscal Weeks has been a recognized leader in the delivery of legal services, business counseling, and dispute resolution in Arizona, with attorneys highly respected for their expertise, integrity, effectiveness, and with the highest levels of professionalism. These are traits exemplified by Dickinson Wright lawyers for nearly 135 years, and we look forward to combining firms with excellent reputations and like-minded goals in service to our expanded client base."

The addition of Mr. Feldman and D. Samuel Coffman to the Dickinson Wright Gaming Group expands the firm's Indian law and Indian gaming law practice with a Southwestern office. They join Washington, D.C.- based Indian law attorneys, Dennis J. Whittlesey and Patrick Sullivan. Collectively, the nationally recognized Dickinson Wright Indian law practice has extensive experience not only in Indian gaming, but also with respect to all aspects of Indian law.

MACAU ADOPTS NEW RULES APPLICABLE TO THE SUPPLY OF SLOT MACHINES AND RELATED EQUIPMENT
By Luís Mesquita de Melo (MdME Lawyers – www.mdme.com.mo)

Over 10 years after the gaming market liberalization in the Macau Special Administrative Region, the Macau Government has for the first time enacted, in the form of an Administrative Regulation, a set of rules concerning the approval of gaming manufacturers, electronic gaming machines and related equipment and gaming systems being supplied to the Macau market.

Administrative Regulation 26/2012 (approved on November 16, 2012) was published in the Official Gazette on November 26, 2012, and came into force on the following day, November 27, 2012.

The legal definition of gaming equipment under the scope of Administrative Regulation 26/2012 includes all devices, programs or software that operate totally or partially by electronic and/or mechanical means and are conceived, adapted or programmed to run or store games of chance in which the player may receive a payment in cash or in equivalent tokens or values as the result of a bet placed.

Gaming equipment such as casino management software, playing cards, playing card shoes, card shufflers, playing chips, etc. do not fall under the scope of Administrative Regulation 26/2012.

The supply of slot machines and related equipment to the gaming concessionaries and sub-concessionaires, as well as slot machine distributors, is from now on reserved to approved (licensed) manufacturers. The responsibility to approve the gaming manufacturers, conduct suitability checks and to approve the electronic gaming machines and related systems and equipment being supplied in Macau lies with the Gaming Inspection and Coordination Bureau (DICJ), the gaming regulator in Macau.

There are four main principles that shape the legal framework of the new slot machine regulations: (i) the institution of an approval/licensing procedure for all gaming manufacturers doing business in Macau, (ii) a gaming manufacturer corporate suitability check, (iii) an approval process for all the slot machines and related equipment being supplied in Macau, and (iv) a set of ongoing regulatory compliance obligations imposed on the gaming manufacturers.

From a government policy perspective, Administrative Regulation 26/2012 brought the gaming manufacturers regulatory framework closer to the model that was created for the licensed gaming operators within their gaming concessions/sub-concessions.

Institution of an Approval/Licensing Procedure for All Gaming Manufacturers Doing Business in Macau

Any gaming manufacturer wishing to supply slot machines and related equipment to the gaming operators in Macau must be approved in advance by DICJ. This means that Administrative Regulation 26/2012 has indeed established, for the first time, a direct regulatory relationship between the gaming manufacturers and the Macau gaming regulator (DICJ). Prior to the adoption of the Regulation, everything concerning the supply, approval and installation of slot machines was processed with DICJ through the six gaming concessionaires and sub-concessionaires.

In order to be approved/licensed as a gaming manufacturer by DICJ, an initial request must be submitted together with required detailed information that includes, but is not limited to: (i) the list of jurisdictions where the gaming manufacturer is authorized to do business, (ii) the certification by the jurisdiction elected as the main jurisdiction that the license is valid in that jurisdiction and that there are no pending administrative procedures against the gaming manufacturer for violations in the previous 12 months, (iii) description, by jurisdiction, of all the models of slot machines that the gaming manufacturer is authorized to supply, install, program and maintain, (iv) the organizational chart of the gaming manufacturer and of all its shareholders, with 5% or more of the share capital, up to the ultimate shareholder, and (v) the composition of the gaming manufacturer corporate bodies.

The gaming manufacturers operating in Macau that are not branches of overseas companies are required to operate under the form of a joint stock company with nominative shares. Only the manufacturers, and not the distributors (or agents), of electronic gaming machines are subject to this licensing/approval procedure.

Gaming Manufacturer Corporate Suitability Check

The licensing procedure of gaming manufacturers involves a suitability check on the applicant and its shareholders and directors. The suitability check may, however, be waived following a request to that effect if the gaming manufacturer is already licensed in one of the following jurisdictions: Nevada, New Jersey and Mississippi in the United States; Australasia; New Zealand; Great Britain; or Singapore.

For the gaming manufacturers that are not licensed in any of the above-referred jurisdictions, the suitability check will be conducted by DICJ taking in consideration the experience and reputation of the manufacturer and its products as well as the suitability and merit of its shareholders and directors.

Approval Process for All Slot Machines and Related Equipment Being Supplied in Macau

All slot machines being supplied in Macau must be approved by DICJ. The electronic gaming machines must comply with the minimum standards set forth in Administrative Regulation 26/2012 and also with the Mandatory Gaming Machine Standard approved by DICJ's Instruction 1/2012 and the Electronic Gaming Machines Technical Standards, Version 1.0, in effect from February 10, 2012.

This specific compliance requirement went into effect as of January 1, 2013. All electronic gaming machines being supplied after this date must fully comply with Administrative Regulation 26/2012.

Along with the approval request, each gaming manufacturer is required to submit a list of approved technicians to install, program, repair, adapt, modify, provide technical assistance or maintain the slot machines and related equipment, including their qualifications, professional experience and training plans.

All contracts for the supply of electronic gaming machines must be in writing, governed by Macau law and submit to the exclusive jurisdiction of the courts of Macau. Whenever the payments to a single gaming manufacturer exceed MOP 1 Million, the gaming operators are required to file such supply agreements with DICJ within 15 days from execution.

Ongoing Regulatory Compliance Obligations

Administrative Regulation 26/2012 imposes a number of periodical and occasional disclosure obligations concerning material information in relation to the gaming manufacturer's business activity.

The gaming manufacturers are now required to submit an annual corporate and business update including, but not limited to: (i) a list of all the jurisdictions in which the gaming manufacturer is authorized to conduct gaming activities; (ii) a document issued by the regulator in the jurisdiction chosen as the primary certification validating the authorization granted in such jurisdiction, the conditions to which it is subject, if applicable, and any procedures for administrative offense(s) of a similar nature, started within the previous 12 months; (iii) information, by jurisdiction, on the models of gaming devices which are authorized to manufacture, supply, assemble, install, program, repair, adapt, modify, perform or provide technical maintenance; and (iv) a list of legal proceedings instituted against the gaming manufacturer with detailed information about the decision likely to materially impact its business.

Each gaming manufacturer is also required each January to provide to DICJ detailed information of its activities in Macau during the previous calendar year, including the number of models and gaming devices supplied to each gaming operator, the site of installation and the identification of the gaming devices supplied to a distributor. Furthermore, any defect or malfunction detected in an electronic gaming machine or any violation of intellectual property rights must also be reported to DICJ within 30 days from being acknowledged by the gaming manufacturer.

Other Relevant Provisions

Any inter vivos transfer or creation of encumbrances over the ownership of shares representing the share capital of the gaming manufacturer or other rights relating to such shares and any act involving the granting of voting rights or other shareholders' rights to persons other than the original owners are subject to Government approval.

Administrative Regulation 26/2012 now makes absolutely clear that gaming revenue sharing arrangements between a gaming concessionaire/sub-concessionaire and a gaming manufacturer are not allowed and may result in the revocation of the gaming manufacturer's approval granted by DICJ.

Finally, the gaming manufacturer and the gaming concessionaires/sub-concessionaires are jointly and severally liable for any damages or losses caused to any player or even to the Macau Government as a result of an electronic gaming machine defect or malfunction.

Although Administrative Regulation 26/2012 came into full force and effect on November 27, 2012, there is a grace period of six months for the gaming manufacturers to adapt and comply with the new regime with respect to the corporate structure, compliance undertakings and suitability verification. However, compliance action should be commenced immediately to assure the ability to either continue or commence doing business in Macau.

Crafted with a considerable influence from the Australian model, after a long legislative process initiated back in 2004/05, only time will tell if the legislative options materialized in this gaming regulatory enhancement will actually provide for a more credible and transparent gaming market regarding the supplying of electronic gaming machines. At the end of the day, the success of the new regulations will depend mostly on the way they will be enforced.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Pillsbury Winthrop Shaw Pittman LLP
Dickinson Wright PLLC
Dickinson Wright PLLC
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Pillsbury Winthrop Shaw Pittman LLP
Dickinson Wright PLLC
Dickinson Wright PLLC
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions