1. (a)

   1. (1) Subject to the exemption set forth in subsection (d) of this section, category I manufacturers and distributors shall not distribute gaming devices out of this state without applying for and receiving the prior written approval of the Arkansas Racing Commission.
   2. (2) Applications for such approval to distribute gaming devices out of this state must be made, processed, and determined in such manner and using such forms as the commission may prescribe.

   3. (3) Each application must include, in addition to such other items or information as the commission may require:

      1. (A)

2. (i) The full name, state of residence, address, telephone number, Social Security number, and driver’s license number of both the purchaser and the person to whom the shipment is being made, if neither is currently licensed by the commission.

   1. (ii) If the purchaser or person to whom the shipment is being made does not have a Social Security number or driver’s license number, the birth date of the purchaser or person to whom the shipment is being made may be substituted;

      1. (B) The name and permanent address of the purchaser or person to whom the shipment is being made if either is currently licensed by the commission;
      2. (C) The destination, including the port of exit if the destination is outside the continental United States;
      3. (D) The number of devices to be shipped;
      4. (E) The serial number of each device;
      5. (F) The model number of each device and year each device was manufactured, if known;
      6. (G) The denomination of each device;
      7. (H) The expected date and time of shipment; and
      8. (I) The method of shipment and name and address of the carrier.

3. (b) Except as provided in subdivision (b)(3) of this section, category II manufacturers and distributors are exempt from subsection (a) of this section, and shall:

   1. (1)

      1. (A) Prepare and maintain records of the information required by the Gambling Devices Act of 1962, 15 U.S.C. § 1173.
      2. (B) The records and documentation required by subdivision (b)(1) of this section will be retained for a period of five (5) years and must be produced for inspection upon request by the commission.
      3. (C) The failure to prepare and maintain such records and documentation will be an unsuitable method of operation;

   2. (2)

      1. (A) Submit to the commission on or before the fifteenth day of January and July of each calendar year an electronic record of the name and address of all current customers which shall be in a searchable format.
      2. (B) The record required by subdivision (b)(2) of this section will be received and retained by the commission as confidential; and

   3. (3) A category II manufacturer and distributor may by written notice to the commission elect to be treated as and comply with the requirements of this part applicable to a category I manufacturer and distributor.

      1. (c) Manufacturers and distributors shall not ship gaming devices to a destination where possession of a gaming device is unlawful.

         1. (d) Category I manufacturers and distributors are exempt from the requirements of this part for shipments of gaming devices provided:

   4. (1) The gaming devices are only distributed to:

      1. (A) Persons licensed to expose such devices for play or for further distribution, in the jurisdiction of destination or by a tribal gaming authority in the jurisdiction of destination;
      2. (B) A federal, state, or tribal gaming regulatory authority or law enforcement agency; or
      3. (C) A testing laboratory authorized by an entity identified within subdivision (d)(1)(B) of this section;

   5. (2)

      1. (A) The category I manufacturer and distributor files the information required by subsection (a) of this section on or before the fifteenth of the month following the month of distribution.
      2. (B) The commission may publish a list of jurisdictions or licensees to which this exemption does not apply and where category I manufacturers and distributors may not ship gaming devices without prior approval as required by subsection (a) of this section.
4. (e) Category I manufacturers and distributors shall obtain and thereafter maintain, a statement by the purchaser under penalty of perjury that each device will be used only for lawful purposes, unless the purchaser is currently licensed by the commission or comparable agency of another state or tribal gaming agency or the destination is outside the United States.
5. (f) Manufacturers and distributors shall, on or before the fifteenth day of January of each calendar year, give the commission a copy of the documentation evidencing registration with the United States Attorney General pursuant to the provisions of the Gambling Devices Act of 1962, 15 U.S.C. § 1173, for the ensuing year.

6. (g) An agent of the commission may inspect:

   1. (1) The premises of manufacturers and distributors and all gaming devices located therein; and

   2. (2)

      1. (A) All gaming devices for which an application has been filed by a category I manufacturer or distributor pursuant to subsection (a) of this section prior to distribution out of this state.
      2. (B) Category I manufacturers and distributors shall make the gaming devices subject to such applications available for such inspection.

7. (h) If the commission does not deny an application filed by a category I manufacturer or distributor for approval to distribute gaming devices out of this state pursuant to subsection (a) of this section within five (5) working days of receipt of a complete application, the application will be deemed to be approved.

   1. (i)
   2. (1) A category I manufacturer or distributor shall keep a record of all shipments made out of state of parts specifically designed for use in a gaming device.
   3. (2) The record must include the information set forth in subsection (a) of this section, if applicable.
   4. (3) A manufacturer or distributor shall not ship parts specifically designed for use in a gaming device to a destination where possession of a gaming device is unlawful.
8. (j) The commission may, in the commission’s discretion, waive one (1) or more of the requirements of this section upon good cause shown.

9. (k) As used in this section:

   1. (1) “Category I manufacturer or distributor” means any manufacturer or distributor licensed by the commission that does not qualify as a category II manufacturer or distributor;

   2. (2) “Category II manufacturer or distributor” means any manufacturer or distributor that:

      1. (A) Is and has been licensed in good standing by the commission for the preceding five (5) years;
      2. (B) Is and has been licensed, registered, approved, or qualified in at least ten (10) other domestic United States or tribal jurisdictions for the preceding three (3) years;
      3. (C) Maintains pursuant to or consistent with the requirements of this part a compliance review and reporting system;
      4. (D) Has annual gross sales exceeding five million dollars ($5,000,000) for such licensee’s preceding fiscal year;
      5. (E) Maintains an office or other facility in the State of Arkansas at which the records required by this section are stored and may be inspected and copied by the commission;

      6. (F)

         1. (i) Did not during the preceding year exclusively distribute used gaming devices.
         2. (ii) As used in subdivision (k)(2)(F) of this section, “used gaming devices” means gaming devices previously used or played in a gaming operation in Arkansas, including such devices that have been in any way modified or refurbished since original manufacture; and
   3. (3) “Current customer” means a person to whom the applicable manufacturer or distributor has shipped or delivered a gaming device within the preceding six (6) months pursuant to a contract, agreement, or other arrangement with such manufacturer or distributor, or its affiliate, for the purchase, lease, license, or other right to use such gaming device.

Codification Notes: The Gambling Devices Act of 1962 is codified at 15 U.S.C. § 1171 et seq.