Section 15.160.954. Conflicts of interest.

	(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) giving or receiving 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 or a related party 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);  
		(7) a gaming transaction between the person and a third party, regardless of whether the third party is regulated under AS 05.15  or this chapter, in which   
			(A) the item or service being conveyed between the person and the third party is subsequently sold or provided to another person regulated under this chapter; and  
			(B) the gaming transaction, if conducted directly between the person and another person regulated under this chapter, without the third party's involvement, would result in a prohibited conflict of interest under AS 05.15  and this chapter;   
		(8) an activity that violates 15 AAC 160.942.  
	(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;  
		(8) participation by a person regulated under this chapter in any activity permitted under AS 05.15  or this chapter, other than pull-tabs, who is not barred by 15 AAC 160.500(b), by house rules, or by the minimum age requirements in AS 05.15.180 or this chapter, and who is not involved with selection of a winner in the activity.  
	(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.   

Authorities

05.15.060;05.15.140;05.15.188

Notes

Reference

15 AAC 160.800

Authority

AS 05.15.060 AS 05.15.140 AS 05.15.188

History

Eff. 11/10/96, Register 140; am 1/1/2003, Register 164; am 6/22/2008, Register 186