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(a) Charitable gaming must be conducted with high standards of integrity in a manner that assures the gaming public that the gaming is free from corruption and criminal influence. A person regulated under this chapter must avoid relationships that could support an inference of a conflict of interest or self-dealing, and may not have a prohibited conflict of interest in a gaming activity.
(b) A person regulated under this chapter has a prohibited conflict of interest if the person or a related party is involved in any of the following activities:
(1) a gaming transaction with a related party, unless the transaction is allowed under (c) of this section;
(2) providing a loan, or gifts with a total fair market value of more than $100 per year, from
(A) an operator, distributor, registered vendor, or manufacturer to a permittee, or to an employee of a permittee who acts in a managerial or supervisory capacity; or
(B) a permittee to an operator, distributor, registered vendor, or manufacturer;
(3) leasing or subleasing by a distributor of facilities used in the conduct of gaming after January 1, 2004;
(4) employing, contracting with, or allowing a person to act as a manager of gaming if the person acts as a manager of gaming for more than one permittee in a calendar year;
(5) employing, contracting with, or allowing a person to act in a managerial or supervisory capacity for a permittee if the person is or acts as a distributor, operator, or manufacturer;
(6) allowing a person to participate as a player in pull-tab activity conducted by or for the permittee if
(A) the person has access to pull-tab information or accounting records; or
(B) the person is prohibited from play in a gaming activity by AS 05.15.187 (h).
(c) The following transactions involving a related party are not prohibited conflicts of interest:
(1) a contract of employment with a direct relative, if the wage or salary paid is comparable to that paid for similar employees in gaming regulated under AS 05.15;
(2) a lease of a gaming location by an operator under 15 AAC 160.936;
(3) a lease of a gaming location by a multiple-beneficiary permittee from a member permittee or permittees, if the multiple-beneficiary permittee biennially obtains an appraisal from a certified real estate appraiser authorized under AS 08.87, certifying that the lease amount is not in excess of market value for general commercial space in the community;
(4) a transaction with a direct relative in a remote community for which the person regulated under this chapter proves
(A) no alternative party could practicably provide the good or service procured;
(B) the price paid for the good or service was no greater than that paid by others for the same good or service;
(5) a gaming transaction occurring before January 1, 2004, between an operator and a distributor who is the operator's spousal equivalent;
(6) a contribution, loan, or gift under 15 AAC 160.363;
(7) the sale of a raffle ticket by a person regulated under this chapter to a related party.
(d) It is a prohibited conflict of interest for
(1) a person to be or act as both an operator and a distributor; or
(2) a registered vendor to employ or have a contract other than a gaming contract with a permittee with whom the registered vendor has a gaming contract.
(e) For purposes of this section,
(1) a related party includes a direct relative or an affiliate of a person regulated by this chapter; and
(2) a gaming transaction includes a transaction that results in an "authorized expense" described under 15 AAC 160.995(3) .
(f) A person regulated under this chapter includes the entity that receives a license, permit, or registration, and an official representative of the entity. An official representative of a person regulated under this chapter includes, if applicable, the person's
(1) primary and alternate members in charge of a permittee, including the primary and alternate members in charge of the member permittees of a multiple-beneficiary permit;
(2) manager of gaming for a permittee;
(3) officers;
(4) board of directors;
(5) partners; and
(6) affiliates.
History: Eff. 11/10/96, Register 140; am 1/1/2003, Register 164
Authority: AS 05.15.060
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Last modified 7/05/2006