1. (1) Neither a video lottery gaming agent nor any third party affiliate or non-affiliate shall offer or provide any complimentary service, item, cash or other item of value to any person except as set forth in the video lottery gaming agent’s marketing plan as approved by the commission and as provided for in this Part.
2. (2) A video lottery gaming agent shall establish and maintain a system of internal controls, subject to commission approval, for the authorization and issuance of all complimentary services and items, including cash and non-cash items. Such system of internal controls shall include, without limitation, the procedures by which the video lottery gaming agent may delegate to such agent’s employees the authority to approve the issuance of complimentary services and items, the controls in place to ensure complimentary services and items are utilized by those individuals offered such services and items, and the procedures by which conditions or limits placed upon such authority are established and modified, including limits based on relationships between the authorizer and recipient, the relationship between the video lottery gaming agent or such agent’s principals with the recipient, and shall further include effective provisions for audit purposes.

3. (3) For purposes of determining the level of dollar value of complimentary service to be deemed an acceptable use by the video lottery gaming agent from the marketing and promotion program:

   1. (i) all complimentary services or items, whether or not offered or provided to players in the normal course of the video lottery gaming agent’s business, shall be allowable costs under the marketing plan of the video lottery gaming agent at amounts based upon rates established by the commission;
   2. (ii) a complimentary service or item provided directly or indirectly to a player on behalf of the video lottery gaming agent by a third party not affiliated with the video lottery gaming agent, shall be recorded at an amount based upon the actual cost to the video lottery gaming agent of having the third party provide such service or item.
4. (4) The video lottery gaming operation shall record both the dollar amount of, and the number of persons provided with, each category of complimentary services or items. The complimentary services shall, at a minimum, be separated into categories for rooms, food, beverage, travel, free-play and other services.
5. (5) Any complimentary service or item, including a complimentary cash or non-cash item, that is issued to a player as part of a complimentary incentive program shall be subject to the requirements of this Part and the approved marketing plan. The video lottery gaming agent shall record, on a daily basis, the name of each person provided with a complimentary service(s) or item(s), the category or type of service(s) or item(s) provided, the value (as calculated in accordance with this Part or as determined by the commission) of the service(s) or item(s) provided to such person, and the signature, title or position and occupational license number of the person authorizing the issuance of such service(s) or item(s). Upon the commission’s request, a copy of this record shall be immediately submitted to the commission. This provision shall not apply to complimentary items of nominal value (e.g., a portion of coffee or soda provided to a player while on the gaming floor) that are offered to all patrons of the video gaming facility without regard to level of play.
6. (6) Notwithstanding any inconsistent provision of this section, the video lottery gaming agent shall not permit any video lottery gaming agent employee to authorize the issuance of a complimentary cash or non-cash item with a value of $1,000 or more unless the employee is licensed as a key employee and the authorization is co-signed by a second key employee of equal rank as identified in the approved jobs compendium.
7. (7) If the video lottery gaming agent provides complimentary cash or non-cash item(s) worth $1,000 or more to a player or a player’s guests within any five-day period, the video lottery gaming facility shall record the profit-based reason why such items were provided and maintain such records available for inspection by the commission upon request.
8. (8) The video lottery gaming agent shall submit to the commission a report listing each player who has received $1,000.00 or more in complimentary cash or non-cash item(s) within any five-day period ending during the preceding month. Such report shall be filed by the last business day of the following month and shall include the total amount of complimentary cash or non-cash items provided to each person.
9. (9) Notwithstanding any inconsistent provision of this section, no video lottery gaming agent shall permit any employee to authorize the issuance of a complimentary cash or non-cash item(s) with a value of $5,000 or more unless the video lottery gaming employee is licensed and functioning as the facility manager or assistant facility manager and the authorization is co-signed by a second employee who is functioning as the controller of the video lottery gaming agent.
10. (10) If a video lottery gaming agent provides complimentary cash or non-cash item(s) worth $5,000 or more to a player or a player’s guests within any five-day period, the video lottery gaming agent shall record the profit-based reason why such items were provided and maintain such records available for inspection by the commission upon request.
11. (11) In instances where complimentary service(s) or item(s) have been issued by or on behalf of the video lottery gaming agent, the video lottery gaming agent is responsible to comply with all Federal, State and local tax reporting and withholding laws and rules for all complimentary service(s) or item(s).
12. (12) No video lottery gaming agent shall offer or provide, either directly or indirectly, any complimentary cash or non-cash item to any player or any player’s guests except in accordance with the approved video lottery gaming agent marketing plan and these regulations.

13. (13) All complimentary cash or non-cash item(s) shall be disbursed directly to the player after receipt of appropriate documentation or in any other manner approved in writing by the commission in a video lottery gaming agent’s internal control submission.

    (b) Alternative reporting procedures; accessible complimentary goods or services database.

14. (1) A video lottery gaming agent that records all information concerning complimentary services or items as required by subdivision (a) of this section in a computer database that is accessible by the commission from remote locations and conforms to standards established and approved in writing by the commission pursuant to this section may be exempt from filing the monthly marketing plan reports required by this Part.

15. (2) The structure and accessibility of the complimentary goods or services database shall be subject to review and approval by the commission and such submission shall include, without limitation, the following:

    1. (i) a complete description of the computer hardware, file formats and software products to be used;
    2. (ii) the hours of the day and the days of the week, if any, that the database will be inaccessible on a routine basis due to system maintenance or other technical reasons;
    3. (iii) the procedures by which the commission will be able to read and copy data files, both current and stored; and
    4. (iv) security procedures for database access and secondary data dissemination.

(a) Distribution of complimentary services.