(a)

1. (1) Gross revenue does not include credit extended or collected by the licensee for purposes other than gaming.
2. (2) Gross revenue includes the amount of gaming credit extended to a patron that is not documented in a credit instrument.

(b) Each licensee shall:

1. (1) Document, prior to extending credit, that it:

   1. (A) Has received information from a bona fide credit reporting agency that the patron has an established credit history that is not entirely derogatory;
   2. (B) Has received information from a legal business that has extended credit to the patron that the patron has an established credit history that is not entirely derogatory;
   3. (C) Has received information from a financial institution at which the patron maintains an account that the patron has an established credit history that is not entirely derogatory;
   4. (D) Has examined records of its previous credit transactions with the patron showing that the patron has paid substantially all of the patron’s credit instruments and otherwise documents that it has a reasonable basis for placing the amount or sum placed at the patron’s disposal;
   5. (E) Was informed by another licensee that extended gaming credit to the patron that the patron has previously paid substantially all of the debt to the other licensee and the licensee otherwise documents that it has a reasonable basis for placing the amount or sum placed at the patron’s disposal;
   6. (F) If no credit information was available from any of the sources listed in subdivisions (b)(1)(A) – (E) of this section or a patron who is not a resident of the United States, the licensee has received, in writing, information from an agent or employee of the licensee who has personal knowledge of the patron’s credit reputation or financial resources that there is a reasonable basis for extending credit in the amount or sum placed at the patron’s disposal;
   7. (G) In the case of personal checks, has examined and has recorded the patron’s valid driver’s license or, if a driver’s license cannot be obtained, some other document normally acceptable as a means of identification when cashing checks, and has recorded a bank check guarantee card number or credit card number or has documented one of the credit checks set forth in subdivisions (b)(1)(A) – (F) of this section;
   8. (H) In the case of third-party checks for which cash or chips have been issued to the patron or which were accepted in payment of another credit instrument, has examined and has recorded the patron’s valid driver’s license, or if a driver’s license cannot be obtained, some other document normally acceptable as a means of identification when cashing checks and has, for the check’s maker or drawer, performed and documented one (1) of the credit checks set forth in subdivisions (b)(1)(A) – (F) of this section; or
   9. (I) In the case of guaranteed drafts, has complied with the issuance and acceptance procedures prescribed by the issuer;
2. (2) Ensure that the patron to whom the credit is extended either signs the credit instrument when credit is extended or, unless the requirements of this part have been met, acknowledges the debt and the instrument’s validity in a signed, written statement within thirty (30) days of the audit division’s request; and
3. (3) Obtain and record the patron’s address before extending the credit or, unless the requirements of this part have been met, furnish the patron’s current address within thirty (30) days of the audit division’s request.

(c) A licensee, after extending credit, shall:

1. (1) Document that it has:

   1. (A)

(b) (b) Upon which the licensee and patron agree that the debt will become due and payable.

1. (ii) An agreement by the licensee and the patron to extend the date the debt becomes due and payable beyond ninety (90) days from the date the credit was extended must be documented.

   1. (iii) If the agreement is not documented, collection attempts must be made as provided in this subsection, until the agreement is documented.

      1. (iv) Notwithstanding the forgoing, the licensee must commence collection efforts within ninety (90) days after the date which is eighteen (18) months after the date on which the credit is extended regardless of any agreement to extend the due date;
   2. (B) Attempted to collect payment from the patron by requesting payment in letters sent to the patron’s last-known address, or via facsimile transmission or electronic mail, or in personal or telephone conversations with the patron, or by presenting the credit instrument to the patron’s bank for collection, or by a collection method or methods which the Arkansas Racing Commission determines to constitute good faith efforts to collect the full amount of the debt;

2. (2)

   1. (A) Furnish the credit instrument to the commission within thirty (30) days after the audit division’s request, unless the:

      1. (i) Licensee has independent, written, and reliable verification that the credit instrument:

(b) (b) Has been returned to the patron upon partial payment of the instrument;

1. (c) (c) Has been returned to the patron upon the licensee’s good faith belief that it had entered into a valid settlement and the licensee provides a copy of the original credit instrument and a document created contemporaneously with the settlement that contains the information required by this part; or

   1. (d) (d) Has been stolen and the licensee has made a written report of the theft to an appropriate law enforcement agency, other than the commission, having jurisdiction to investigate the theft; or

      1. (ii) Commission waives the requirements of this subsection because the credit instrument cannot be produced because of any other circumstances beyond the licensee’s control.

   2. (B)

      1. (i) Theft reports made pursuant to this subsection must be made within thirty (30) days of the licensee’s discovery of the theft and must include:

(b) (b) The amount of financial loss sustained;

1. (c) (c) The date of the alleged theft; and

   1. (d) (d) The names of employees or agents of the licensee who may be contacted for further information.

      1. (ii) Each licensee shall furnish to the audit division a copy of theft reports made pursuant to this subdivision (c)(2)(B) within thirty (30) days of its request.
   2. (C) If the licensee has returned a credit instrument upon partial payment, consolidation, or redemption of the debt, it shall issue a new substituted credit instrument in place of the original and shall furnish the substituted credit instrument to the audit division within thirty (30) days of its request, unless the licensee has independent, written, and reliable verification that the substituted credit instrument cannot be produced because it is in the possession of a court, governmental agency, or financial institution, has been stolen and the licensee has made a written report of the theft to an appropriate law enforcement agency other than the commission having jurisdiction to investigate the theft, or the commission waives the requirements of this subdivision (c)(2)(C) because the substituted credit instrument cannot be produced because of any other circumstances beyond the licensee’s control;

2. (3)

   1. (A) Submit a written report of a forgery, if any, of the patron’s signature on the instrument to an appropriate law enforcement agency, other than the commission, having jurisdiction to investigate the forgery.

   2. (B) The report must include:

      1. (i) General information about the alleged crime;
      2. (ii) The amount of financial loss sustained;
      3. (iii) The date of the alleged forgery; and
      4. (iv) Identification of employees or agents of the licensee who may be contacted for further information.
   3. (C) Each licensee shall furnish a copy of forgery reports made pursuant to this subdivision (c)(3) to the audit division within thirty (30) days of its request;
3. (4) Permit the audit division within thirty (30) days of its request to confirm in writing with the patron the existence of the debt, the amount of the original credit instrument, and the unpaid balance, if any; and

4. (5) Retain all documents showing, and otherwise make detailed records of, compliance with this subsection, and furnish them to the audit division within thirty (30) days after its request.

   1. (d) Each licensee shall include in gross revenue all or any portion of an unpaid balance on any credit instrument if the commission determines that, with respect to that credit instrument, the licensee has failed to comply with the requirements of this part.

(e)

1. (1)

   1. (A) A licensee need not include in gross revenue the unpaid balance of a credit instrument even if the commission determines that a licensee has failed to comply with this part if the requirements of this part and one (1) or more of the following subdivisions are satisfied, and the licensee documents or otherwise keeps detailed records of compliance with this subsection and furnishes them to the audit division within thirty (30) days after its request.
   2. (B) In the case in which the debts of several patrons are consolidated for purposes of settlement, the licensee shall document that the consolidation of the accounts of several patrons is not for the purpose of avoiding an adverse determination under this part.

2. (2)

   1. (A) The licensee settles the debt for less than its full amount to induce the patron to make a partial payment.
   2. (B) This subdivision (e)(2) is satisfied only if the licensee first requests payment of the debt in full from the patron, the patron fails to respond to the request or refuses to pay the debt in full, and the patron then makes a partial payment in consideration for settlement of the debt for less than the full amount.
3. (3) The licensee settles the debt for less than its full amount to compromise a genuine dispute between the patron and the licensee regarding the existence or amount of the debt.
4. (4) The licensee settles the debt for less than its full amount because the licensee in good faith believes, and records the basis for its belief, that the patron’s business will be retained in the future, or the patron’s business is in fact retained.

5. (5)

   1. (A) The licensee settles the debt for less than its full amount to obtain a patron’s business and to induce timely payment of the credit instrument.
   2. (B) This subdivision (e)(5) is only satisfied if the percentage of the discount off the face value of the credit instrument is reasonable as compared to the prevailing practice in the industry at the time the credit instrument was issued.

(f) Each licensee shall ensure:

1. (1)

   1. (A) That a debt settled pursuant to this part is settled either with the patron to whom the credit was initially extended or the patron’s personal representative.
   2. (B) For purposes of this section, a personal representative is an individual who has been authorized by the patron to make a settlement on the patron’s behalf.
   3. (C) The licensee shall document its reasonable basis for its belief that the patron has authorized the individual to settle the patron’s debt; and

2. (2) That the settlement is authorized by persons designated to do so in the licensee’s system of internal control, and the settlement agreement is reflected in a single document prepared within thirty (30) days of the agreement and the document includes:

   1. (A) The patron’s name;
   2. (B) The original amount of the credit instrument;
   3. (C) The amount of the settlement stated in words;
   4. (D) The date of the agreement;
   5. (E) The reason for the settlement;
   6. (F) The signatures of the licensee’s employees who authorized the settlement; and

   7. (G)

      1. (i) The patron’s signature or in cases in which the patron’s signature is not on the settlement document, confirmation from the patron acknowledging the debt, the settlement, and its terms and circumstances in a signed, written statement received by the audit division within thirty (30) days of its request.
      2. (ii) If confirmation from the patron is not available because of circumstances beyond the licensee’s control, the licensee shall provide such other information regarding the settlement as the commission determines is necessary to confirm the debt and settlement.

(h) A licensee shall include in gross revenue all money, and the net fair market value of property or services received by the licensee, its agent or employee, or a person controlling, controlled by, or under common control with the licensee in payment of credit instruments.

1. (i) A licensee may exclude money received in payment of credit instruments from gross revenue if the licensee notifies the commission in writing within thirty (30) days of the licensee’s discovery of the alleged criminal misappropriation of the money by an agent or employee of the licensee or by a person controlling, controlled by, or under common control with the licensee where the agent, employee, or person was involved in the collection process, and if the licensee:
2. (1) Files a written report with an appropriate law enforcement agency other than the commission alleging criminal misappropriation of the money and furnishes a copy of such report to the commission within thirty (30) days of the audit division’s request;
3. (2) Files and prosecutes a civil action against the agent, employee, or person for recovery of the misappropriated money and furnishes copies of legal pleadings to the commission within thirty (30) days of the audit division’s request; or
4. (3) Otherwise demonstrates to the commission’s satisfaction, within the time limits set by the commission, that the money was in fact criminally misappropriated and not merely retained by the agent, employee, or person as payment for services or costs.