OPERATIONS AND CASINO CONTROL LAW 2014
Regulations made under section 13
CONTENTS
PART I
PRELIMINARY
1. Short title
2. Interpretation
3. CGC members and employees shall comply with the CGC Code of
Conduct
4. Proceedings of CGC
PART II
CYPRUS GAMING AND CASINO SUPERVISION AUTHORITY
5. CGC audit of accounts
6. Powers of auditor
7. Presentation of financial statements and auditor’s report to Council of
Ministers
PART III
CASINO LICENSING
8. Integrated casino resort operator license application and application
and investigation fees
9. Integrated casino resort operator initial and annual license fees for the
integrated casino-resort license
10. Due diligence on proposed integrated casino resort operator
11. CGC further information requirements
PART IV
DISCIPLINARY ACTION
12. Disciplinary action against integrated casino resort operator
13. CGC disciplinary hearings
14. Sanctions and penalties
15. License suspension or revocation
PART V
INTERIM OPERATOR
16. Interim operator
PART VI
CASINO OPERATIONS
17. Exclusion
18. Anti-money laundering procedures
19. Credit
20. Complimentaries
21. Junkets
22. Casino customer dispute resolution
PART VII
CASINO PREMISES - EQUIPMENT
23. Casino layout
24. Devices used in playing casino games
25. Casino games
26. Identification
27. Gaming equipment
28. Gaming machines manufacturers and suppliers and gaming test
services providers
PART VIII
EMPLOYEES LICENSING
29. Casino employees and casino key employees
PART IX
INTERNAL CONTROLS
30. Internal controls
PART X
ACCOUNTING PROCEDURES – FINANCIAL REPORTS
31. Operator accounting
32. Operator financial reports
PART XI
ADVERTISING – ENTERTAINMENT - ALCOHOL
33. Advertising
34. Entertainment
35. Alcohol
PART XII
CHANGES IN OPERATOR POSITION
36. Changes in operator position
PART XIII
APPROVAL OF CONTRACTS
37. Approval of contracts
PART XIV
RESPONSIBLE GAMBLING
38. Responsible gambling
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PART XV
CASINO TAX
39. Casino tax
PART XVI
CASINO GAMING MACHINES PREMISES LICENSES
40. Casino gaming machines premises licenses
OPERATIONS AND CASINO CONTROL LAW 2014
REGULATIONS MADE UNDER SECTION 13
Preliminary
72(I) of 2003
174(I) of 2004
Official Gazette EU: L 037
12.2.2000,
p.48
L236
23.9.2003,
p.33
L 363
3
20.12.2006,
p.81
Since these Regulations constitute technical regulations defined and
governed by the Process of Information Regarding Certain Laws of Technical
Rules 2003 and 2004 (“Technical Regulations Law”), which transposes into
Cyprus law the act of the European Community entitled “Directive 98/34/EC of
the European Parliament and of the Council of 22 June 1998 laying down a
procedure for the provision of technical standards and regulations of rules on
Information Society Services and information, as corrected and as last
amended by Directive 2006/96 and as amended or replaced (“Directive”);
Therefore these Regulations are being notified as required by Article 9 of the
Technical Regulations Law and the said Directive as required by Article 12
thereof,
In exercise of the powers vested in it by section 13 of the Operations and
Casino Control Law 2014, the Council of Ministers issues the following
Regulations:
PART I
PRELIMINARY
Short title
1. These Regulations may be cited as the Operations and Casino Control Law
(General) Regulations 2014.
Interpretation
2.(1) In these Regulations, unless the context otherwise requires.
“ancillary area” means any of the following areas within the
casino premises:
(a) pathways or corridors through the casino premises
leading to other areas of the integrated casino resort;
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(b) back of house facilities;
(c) any reception or information counter;
(d) any area designed for the serving or consumption of food
and beverages;
(e) any retail outlet;
(f)
any areas designated
performances;
for
theatrical
or
artistic
(g) any areas designate for artistic displays;
(h) staircases, staircase landings, escalators, lifts and lift
lobbies;
(i)
toilets; and
(j)
any other area in the casino premises not intended to be
used for the conduct of casino games and gaming
machines or as a gaming pit.
“back of house facility” means the area including the cage, the
count room and such other facilities ancillary to the conduct of
gaming as the CGC may specify;
“cage” means a secure area of the casino where chips, cash,
tokens and other cash equivalents used in gaming are received,
stored and disbursed;
“casino gaming floor” means that portion of the casino premises
where authorised casino games are conducted and gaming
machines are made available for use;
“casino premises” means the designated area approved by the
CGC within the integrated casino resort, wherein casino games
may be conducted and gaming machines made available for use
and includes the casino gaming floor, any pathways through the
area leading to other areas of the integrated casino resort and
any bar or other facilities housed therein;
“CGC” means the Cyprus Gaming and Casino Supervision
Authority established under Section 5 of the Law;
“chartered surveyor” means a person who is registered and
licensed in the Republic of Cyprus as a chartered land surveyor
and has in force a current practising certificate;
“count room” means the area of the casino where chips, cash,
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tokens and other cash equivalents are counted and accounted
for;
“gaming pit” means the area of the casino premises from which
casino employees and casino key employees may administer
and supervise the conduct of casino games and operation of
gaming machines;
“Law” means the Operations and Casino Control Law of 2014.
“licensee” means, unless the context refers to a specific type of license holder,
any person holding a license or approval issued by the CGC, including but not
limited to the operator, casino employees, casino key employees, gaming
suppliers, junket operators and junket representatives;
“standard notices” means notices issued by the CGC by order or operating
instruction from time to time setting out technical standards and requirements
for gaming equipment.
(2) The terms which are not interpreted otherwise in the present Regulations
shall have the meaning given by the Law.
CGC members
and employees
shall comply with the CGC
Code of Conduct
3. Each CGC member and employee shall comply with a CGC Code of
Conduct approved by the Council of Ministers.
Proceedings
of CGC
4. The following procedures shall apply to CGC meetings:
(a)
The Chairman shall call meetings of the CGC as often as may be
required, but a minimum of one time per month;
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(b)
the quorum at every meeting of the CGC Board shall be the Chairman
and two members or four members in the absence of the Chairman;
(c) a decision at a meeting of the CGC Board shall be adopted by a simple
majority of the members and Chairman attending and voting but a
minimum of four votes shall be required. In the case of an equality of
votes the Chairman or, in the absence of the Chairman, the member
presiding at the meeting shall have a casting vote in addition to his
original vote;
(d) where the Chairman is absent at a meeting, such member as the
members present may elect shall preside at that meeting;
(e) where not less than three members of the CGC request the Chairman
by notice in writing signed by them to convene a meeting of the CGC
for any purpose specified in the notice, the Chairman shall, within
seven days from the receipt of the notice, convene a meeting for that
purpose;
(f)
the CGC may hold meetings and act notwithstanding any vacancy in its
membership; and
(g) subject to the provisions of this Law, the CGC may make rules to
regulate its own procedure generally, and in particular, the holding of
meetings, the notice to be given at such meetings, and the agenda for
the meetings.
PART II
CYPRUS GAMING AND CASINO SUPERVISION AUTHORITY
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CGC audit
of accounts
5.(1) The accounts of the CGC shall be audited annually by the Auditor
General of the Republic or such other independent auditor as may be
appointed by the Auditor General.
(2) A person shall not be qualified for appointment as an auditor (other than
the Auditor General of the Republic) under paragraph (1) unless he is a public
accountant and eligible to practice in accordance with international standards.
(3) The CGC shall, within ninety (90) days after the end of each financial year,
prepare and submit to the Auditor General, financial statements and accounts
in accordance with International Financial Reporting Standards including a
balance sheet for the financial year, a profit and loss statement for the
financial year, a cash flow statement and a statement of its financial position
as of the end of the financial year. The Auditor General shall audit and report
on them in accordance with paragraphs (4) and (5) of this Regulation.
(4) The Auditor General or such other person appointed by the Auditor
General shall in his report state:
(a) whether the financial statements show fairly the financial transactions
and the state of affairs of the CGC;
(b) whether proper accounting and other records have been kept including
records of all of the assets of the CGC, whether purchased, donated
or otherwise;
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(c) whether the receipts, expenditure and investment of moneys and the
acquisition and disposal of assets by the CGC during the financial year
were in accordance with the provisions of the Law and Regulations;
and
(d) such other matters arising from the audit as he considers necessary.
(5) The Auditor General or such other person appointed by the Auditor
General shall, within sixty (60) days following receipt of the accounts for audit,
complete such audit report and send the audit report to the CGC.
Powers of
auditor
6.(1) The Auditor General or any person authorised by him shall be entitled at
all reasonable times to full and free access to all accounting and other records
relating, directly or indirectly, to the financial transactions of the CGC.
(2) The Auditor General or any person authorised by him may make copies of,
or take extracts from, any such accounting or other records.
(3) The Auditor General or any person authorised by him may require any
person to furnish him with such information in the possession of that person or
to which that person has access as the Auditor General or the person
authorised by him considers necessary for the performance of his functions
under this Act.
(4) It shall be an offence for any person, without any reasonable cause, to
refuse or deny access to the Auditor General to any accounting and other
records of the CGC in his custody or power, or to fail or refuse to provide any
information requested by the auditor which the person has knowledge of or
possesses, or to hinder, obstruct or delay the auditor in the performance of
the audit.
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Presentation of
financial
statements
and auditor’s
report to
Council of
Ministers
7.(1) The CGC shall, as soon as its accounts and financial statements have
been audited in accordance with the provisions of the Regulations, send to
the Council of Ministers a copy of the audited financial statements, signed by
the Chairman, together with a copy of the auditor’s report.
(2) Where the Auditor General is not the auditor of the CGC, a copy of the
audited financial statements and any report made by the auditor shall be
forwarded to the Auditor General at the same time they are submitted to the
CGC.
(3) The Minister shall, within thirty (30) days of receipt of the audited financial
statements and auditor’s report, present the audited financial statement and
auditor report to the Council of Ministers.
PART III
CASINO LICENCING
Integrated
Casino resort
operator
license
application and
application and
investigation
fees
8.(1) An applicant approved under section 20 of the Law wishing to apply for
the integrated casino resort operator license shall apply to the CGC using the
CGC application form current at that time and issued for that purpose.
(2) The application shall further require:
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(a) an application fee in the amount set out in the application fees
schedule;
(b) an investigation fee in the amount set out in the application fees
schedule;
(c) such documents as the CGC may require evidencing the ownership or
lease of the designated site for the integrated casino resort;
(d) the disclosure of corporate or individual information regarding the
applicant and associates of the applicant as the CGC may specify and
is required in paragraph (3) of Regulation 10; and
(e) such other documents or information required by the CGC to assess
the application.
Integrated
casino resort
operator
initial and
annual license fees for the
integrated
casino-resort
license
9.(1) The CGC shall invoice the operator for an initial license fee upon final
approval by the CGC of the applicant for the integrated casino resort license
and such initial license fee is payable prior to the date the integrated resort
casino license shall become effective.
(2) The amount of the initial license fee shall be the amount the applicant
agreed to pay for the initial license fee in its response to the invitation to
submit a comprehensive offer for the integrated casino resort license.
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(3) The CGC shall invoice the operator annually for the annual license fee in
the amounts set out in section 26 of the Law. The first annual license fee
shall be due commencing on the first anniversary of the date of issue of the
integrated casino resort license and thereafter on subsequent anniversaries of
the date of issue of the integrated casino resort license.
Due diligence on proposed
integrated
casino resort
operator
10.(1) The CGC in its assessment and investigation of the proposed
integrated casino resort operator shall develop and implement comprehensive
methods, procedures and processes for conducting due diligence on
applicants for the integrated resort casino license and delivery of information
concerning any person’s history, character, associated, criminal record,
business activities and financial affairs.
(2) In particular, the CGC shall consider whether:
(a) each such person is of good repute, having regard to character,
honesty and integrity;
(b) each such person is of sound and stable financial background;
(c) in the case of an applicant that is not a natural person, the applicant
has taken the appropriate measures or has arranged for the suitable
share capital, trust or corporate structure;
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(d) the applicant has or is able to obtain financial resources that are
adequate to ensure the financial viability of the proposed integrated
casino resort and the services of persons who have sufficient
experience in the management and operation of an integrated casino
resort;
(e) the applicant has sufficient business ability to establish and maintain a
successful integrated casino resort;
(f)
any of those persons has any business association with any person,
body or association who or which, in the opinion of the CGC, is not of
good repute having regard to character, honesty and integrity or has
unlawful or unsatisfactory financial resources;
(g) each director, partner, trustee, executive officer and secretary and any
other officer or person determined by the CGC to be associated or
connected with the ownership, administration or management of the
operations or business of the applicant is a suitable person to act in
that capacity;
(h) any person proposed to be engaged or appointed to manage or
operate the integrated casino resort is a suitable person to act in that
capacity;
(i)
the applicant is a suitable person to develop, maintain and promote the
integrated casino resort as a compelling tourist destination which
meets prevailing market demand and industry standards and
contributes to the tourism industry in Cyprus; and
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(j)
any other information that may be relevant.
(3) At a minimum, the application form, information requests and investigation
of the CGC to determine the suitability of the candidate shall require the
following disclosures:
(a) name and address of the applicant applying for the license and contact
details;
(b) type of entity applying for the license;
(c) previous names of applicant (company name changes);
(d) whether the applicant, or any other entities or organisations connected
with it, currently hold or have any applications pending or previously
held any gambling licenses or permits outside of the Republic of
Cyprus and details of each, including copies of license with foreign
gambling regulators and compliance histories with such foreign
gambling regulators;
(e) business registration details in the Republic of Cyprus including date of
registration and registration number;
(f)
head office address of the applicant’s ultimate parent company and
contact details;
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(g) details of the site and premises for the proposed integrated casino
resort;
(h) details of all individuals, associates, directors, partners, senior
executives and proposed casino key employees who will be involved
in the ongoing operation of the applicant and including those involved
with overall strategy and delivery of gambling; marketing and
commercial development; financial planning, control and budgeting;
gambling related IT provision and security and regulatory compliance;
(i)
a diagram illustrating the management structure of the business
detailing the name of individuals in subparagraph (h) showing the
reporting lines of the business. A commentary should also be provided
which gives a summary of the applicant’s management and financial
controls, describes decision making and reporting procedures and
includes any contingency plans to cope with disruptions involving an
employee or the applicant themselves;
(j)
details of associates, investors, owners and partners holding equity
and/or voting rights in the applicant of at least ten percent (10%) for a
publicly traded company and equity and/or voting rights of at least five
percent (5%) for natural persons, privately held companies and all
other entities. If the applicant is owned by other companies or entities,
all publicly traded shareholders holding at least ten percent (10%) of
the equity and/or voting rights and at least five percent (5%) of the
equity and/or voting rights for other companies, entities or natural
person shareholders in the group and the details of that shareholder
must be disclosed up to the ultimate beneficial owners of the applicant.
Where companies within the group structure are registered abroad,
the registration number of the company and the name of the
jurisdiction;
(k) a diagram illustrating the ownership structure of the group, with the
name of every publicly traded company holding ten percent (10%) of
the equity and/or voting rights or other shareholders holding five
percent (5 %) of the equity and/or voting rights of each entity in the
group up to the ultimate beneficial owners of the applicant;
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(l)
whether the applicant, or any of its directors, partners, senior
executives, proposed casino key employees or investors referred to in
subparagraph (j) have ever been found liable under the criminal laws
of the Republic of Cyprus or any other jurisdiction, or received a civil
penalty relating to their corporate duties, including being charged with
an offence but awaiting trial or under investigation and if so, full details
thereof;
(m) whether the applicant is subject to any current, pending or previous
investigation by any statutory, regulatory or governing body in the
Republic of Cyprus or any other jurisdiction in respect of any gambling
activity, gambling license, certificate or permit within the past ten (10)
years and full details of the circumstances surrounding the
investigation;
(n) copies of audited financial statements and tax returns from all
jurisdictions where a tax return has been filed for every entity or
natural person referred to in subparagraph (j) for the ten (10) year
period preceding the application;
(o) details of the policy of the applicant to ensure that its business will be
protected from being a source of crime and disorder, being associated
with crime and disorder or being used to support crime, including:
138(I) of 2001
37(I) of 2003
105(I) of 2012
(i)
awareness of responsibilities under the Prevention and
Suppression of Money Laundering Activities, Law 138 (I)/2001;
(ii)
how equipment will be protected from crime and criminal misuse;
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(iii)
electronic surveillance and other crime prevention procedures;
(iv) security measures for cash handling;
(v)
monitoring of transactions and accounts for suspicious activities;
(vi) security for keys including machine keys, keys for restricted
access areas and money boxes;
(vii) prevention of money lending between casino customers;
(viii) prevention of collusion between casino customers, casino
employees and inspectors;
(ix) procedures for dealing with suspected cheaters or other illegal
activity at the casino premises;
(x)
procedures for grossly intoxicated casino customers under the
influence of alcohol or drugs; and
(xi) procedures to ensure that supplier companies are trustworthy
and reputable.
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(p) details of policy to ensure that gambling is conducted in a fair and open
way, including:
(i)
ensuring sufficient resources to cover all gambling transactions
and financial obligations;
(ii)
ensuring the rules and conditions of the casino games and
gaming machines are available and understood and that the
terms offered are fair to all;
(iii)
whether loyalty and reward schemes will be offered;
(iv) how information on complaints or dispute resolution will be made
available to casino customers; and
(q) whether the operator will comply with any codes of conduct set by other
casino industry organisations including the European Casino
Association or other international casino trade associations;
(r)
details of the policy of the applicant to ensure that minors and other
vulnerable persons will be protected from being harmed or exploited
by gambling, including;
(i)
policies and procedures to protect minors and prevent gambling
by minors;
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(ii)
information to be displayed relating to underage gambling;
(iii)
age verification procedures;
(iv) procedures upon discovering underage casino customers; and
(v)
(s)
(t)
procedures for dealing with persons not capable of making
informed decision about gambling, including mental health
problems, learning disabilities, or substance abuse of alcohol or
drugs.
details of the policy of the applicant for the promotion of social
responsibility in gambling in compliance with the requirements of
section 67 of the Law and Regulation 39; and
any other information which the applicant believes the CGC would
reasonably wish to be informed of or the applicant would like to be
taken into account in assessing its application.
CGC further
information
requirements
11.(1) The CGC shall cause to be carried out all such investigations and
inquiries as it consider necessary to enable it to consider the application and
the proposed integrated casino resort operator properly.
(2) The CGC may:
(a) require any person it is investigating in relation to the person’s
suitability to be concerned in or associated with the management or
operation of a casino to consent to having his photograph, finger prints
and palm prints taken;
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(b) send a copy of the application and of any such photograph, finger
prints and palm prints taken under subparagraph (a) and any
supporting documentation to the Cyprus Police or to law enforcement
agencies in other jurisdictions, including Interpol and Europol;
(c)
inquire from the competent authorities of the Republic to investigate
and report to the CGC on such matters concerning the proposed
integrated casino resort operator as the CGC requests;
(d)
the CGC may refuse to consider an application for an integrated
casino resort license if any person from whom it requires a
photograph, finger prints or palm prints under this paragraph refuses
to allow his photograph, finger prints or palm prints to be taken or to
send the same to the Cyprus Police or to law enforcement agencies in
other jurisdictions, including Interpol and Europol.
(3) The CGC may, by notice in writing, require a person who is an applicant
for a integrated casino resort license or a person whose association with the
applicant is, in the opinion of the CGC, relevant to the application to do any
one or more of the following:
(a) to provide, in accordance with directions in the notice, any information,
that is relevant to the investigation of the application and is specified in
the notice;
(b)
to produce, in accordance with the directions in the notice, any
records relevant to the investigation of the application that are
specified in the notice and to permit examination of the records, the
taking of extracts from them and the making of copies of them;
(c)
to authorise a person described in the notice to comply with a
specified requirement of the kind referred to in subparagraphs (a) or
(b);
(d)
to furnish to the CGC any authorisations and consents that the CGC
directs for the purpose of enabling the CGC to obtain information
(including financial and other confidential information) concerning the
person and his associate or relations from other persons;
(e)
if a requirement made under this paragraph is not complied with,
the CGC may refuse to consider the application concerned.
(4) If a material change occurs in the information provided in or in
connection with an application for a integrated casino resort license
(including in any documents lodged with the application) including, but not
limited to, changes in ownership, management or financial condition before
the application is granted or refused the applicant shall, without delay, notify
the CGC in writing of the revised information.
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(5) If the CGC requires information (including information in any records)
from a person referred to in paragraph (3) whose association with the
applicant is in the opinion of the CGC relevant to the application and change
occurs in that information before the application is granted or refused, that
person shall, without delay, notify the CGC in writing of the revised
information.
(6) When notification of the change is given, such revised information shall
then be considered to have formed part of the original application.
PART IV
DISCIPLINARY ACTION
Disciplinary
action against
integrated
casino resort
operator or other CGC licensee
12.(1) The CGC may serve on the integrated casino resort operator or any
other licensee regulated by the CGC a notice in writing requiring the
integrated casino resort operator or other licensee to show cause within
fourteen (14) days, or such longer period as the CGC may allow on
application by the integrated casino resort operator or other licensee, why
disciplinary action should not be taken on grounds for disciplinary action set
out the notice.
(2) The integrated casino resort operator or the licensee shall, within the
period allowed under paragraph (1), provide to the CGC submissions as to
why disciplinary action should not be taken and the CGC shall consider any
submission so made. The CGC may require or the operator or the licensee
may request an oral hearing as a part of the disciplinary proceeding, at which
oral testimony from witnesses and documentary evidence may be presented
by the operator or the licensee and the CGC. The Chairman of the CGC shall
preside at such hearings. The detailed rules and procedures for disciplinary
CGC hearings are set out in Regulation 14.
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CGC
disciplinary
hearings
13.(1) This Regulation shall apply to all disciplinary proceedings against the
operator and any other licensee regulated by the CGC. The CGC may
develop and issue further procedural rules for disciplinary proceedings which
are consistent with the requirements of the Law and this Regulation.
(2) The CGC Board shall hear all disciplinary proceedings, with the Chairman
presiding, if present. If the Chairman is not present, the Chairman may
designate another member to preside at the hearing. The Chairman, if present
or the Chairman’s designated member if the Chairman is not present, may
issue rulings on discovery matters, admissibility of evidence and other
procedural or prehearing matters.
(3) Licensees who are parties to proceedings governed by this Regulation
may appear personally or through an advocate. When a licensee has
engaged an advocate, service of all notices, orders, decisions and other
papers shall thereafter be made to the advocate.
(4) Proof of service for any documents served to the other party or another
person under this Regulation shall be made and copied to the CGC Board
either by providing a copy of the registered post receipt or by an affidavit of
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the person providing personal service, which affidavit specifies the date and
manner of service.
(5) The CGC shall commence disciplinary proceedings against a licensee by
serving an infringement notice on the licensee with a copy to the CGC Board.
(6) The licensee shall file a defence to the infringement notice within twenty
(20) calendar days by serving the defence on the CGC with a copy to the
CGC board.
(7) Within twenty (20) calendar days after the service of the defence by
licensee, the licensee and the CGC shall meet for the purposes of exchanging
copies of all documents that each party intends to offer in evidence in support
of that party’s case and exchanging names of each person that each party
intends to call as a witness in support of that person’s case. The CGC shall
produce a bundle of documents, containing a copy of each such document
and the respective witness lists. Where facts can be agreed between the
parties, a statement of agreed facts shall also be prepared by the CGC, and
included in the bundle. Such bundle shall be supplied to the CGC Board by
the CGC no later than seven (7) days prior to the hearing date.
(8) Each witness in the witness list to be provided to the CGC and the parties
shall be identified by name, position, business address and a brief description
of the purpose for which the witness will be called.
(9) If requested by the licensee, the CGC shall provide to the licensee a copy
of any formal statement given to the CGC or its inspectors during the CGC’s
investigation of the matter. If any such formal statement is incorporated in a
report or other document not relevant to the licensee, the CGC may produce
an extract from such report or document that contains the statement.
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(10) If a document in paragraph (9) that is required to be produced by the
CGC is the subject of a government privilege or is confidential by law, the
CGC shall stamp any such document “confidential” before producing the
same. A licensee or its advocate may not disclose confidential or privileged
materials to any other person and shall return all such documents to the CGC
following the conclusion of the action. The CGC shall not be required to
provide documents to the licensee whose disclosure is prohibited by law.
(11) The Chairman may issue subpoenas upon the request of a party to the
action to compel any person to appear at the hearing on the merits of the
case, to give oral testimony or to produce documents or other tangible things.
The requesting party shall serve a copy on all other parties to the proceeding.
Unless the witness agrees otherwise or reasonable cause is shown for a
shorter period, a subpoena must be served on the witness at least ten (10)
calendar days prior to the date of the hearing.
(12) Upon motion by a party or a person to whom a subpoena is directed, or
from whom discovery or testimony is sought, the Chairman may make an
order which justice requires to protect a party or person from annoyance,
embarrassment, oppression or undue burden or expense, including one or
more of the following:
(a)
that the subpoena be set aside or modified;
(b)
that the discovery not be permitted, or that it be permitted only on
specified terms and conditions; and
(c)
that certain matters not be inquired into or produced, or that
testimony or disclosure be limited to certain matters.
(13) The following procedures shall apply to the conduct of disciplinary
hearings:
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(a)
The CGC shall present its opening statement on the basis for and
merits of its case against the licensee. The licensee may then make
an opening statement of the defence, or he may reserve the same
until the presentation of its defence;
(b)
the CGC shall then submit its case in support of the infringement
notice;
(c)
upon conclusion of the CGC’s case, the licensee may move for
dismissal of the infringement notice. The Chairman may hear
arguments on the motion, or may grant, deny or reserve decision
thereon, with or without argument;
(d)
if no motion to dismiss is made, or if such motion is denied or
decision is reserved thereon, the licensee shall then present the
case for the defence;
(e)
upon the conclusion of the defence’s case, the CGC may present
evidence in rebuttal of the defence case;
(f) upon conclusion of the CGC’s rebuttal, the CGC shall present its
closing argument. The licensee shall then give its closing argument;
(g)
upon conclusion of closing arguments, the matter shall be submitted
to the CGC Board for decision;
25
(h)
the Chairman or other members of the CGC board may ask
questions of witnesses at any time, and may request or allow
additional evidence, including additional rebuttal evidence; and
(i) either party may make procedural objections during the conduct of the
hearing. The Chairman may rule upon objections raised by a party
immediately or take the objections under advisement and proceed
with the hearing.
(14) In hearings governed by this Regulation, the rules of the Civil Procedure
Law, cap 7, shall not apply. Any evidence deemed as relevant by the
Chairman may be admitted, and such evidence shall be sufficient in itself to
support a finding if it is reliable, regardless of the existence of any common
law or statutory rule which might make improper the admission of such
evidence over objection in a civil action. Irrelevant or unduly repetitious
evidence shall be excluded upon the request of a party or the Chairman’s own
initiative.
(15) Documentary and other physical evidence may be authenticated or
identified by any reasonable means, by evidence or other showing that it is
what it claims to be.
(16) If the licensee fails to testify in his own behalf or asserts a claim of
privilege with respect to any question put to him, the Chairman may infer
therefrom that such testimony or answer would have been adverse to his
case. If the licensee, or any person controlling, controlled by, employed by or
an agent of the licensee fails to respond to a subpoena, or assets a claim of
privilege with respect to any question put to him, the Chairman may make
adverse inferences therefrom. If the licensee fails to respond to a subpoena,
or fails or refuses to answer a material question put to him without good
cause, the Chairman may deem such failure or refusal to be independent
grounds for ruling in favour of the CGC claims against the licensee.
26
(17) Requests for rescheduling of a hearing by a party shall not be granted by
the Chairman except for good cause shown. A motion to reschedule a hearing
must be made at least ten (10) calendar days prior to the scheduled hearing
date.
(18) Failure of a licensee to file a defence to the infringement notice, or to
appear personally at a hearing on the merits without having requested and
obtained leave to do so from the Chairman, shall constitute an admission of
all matters and facts contained in the infringement notice filed with respect to
such licensee, and shall be deemed a waiver of the right to an evidentiary
hearing. In such cases the CGC Board may take action based upon such
admission or upon other evidence, including affidavits, and without any further
notice to licensee.
(19) Decisions by CGC Board shall be made by majority vote of the Chairman
and members. In the case of equality in the number of votes, the Chairman, if
present, or in the Chairman’s absence, the presiding member shall have a
casting vote.
(20) Findings of fact shall be based on a “balance of probabilities” evidence
standard. The “balance of probabilities” standard means that the CGC Board
is satisfied an event occurred if the CGC Board determines that, on the
evidence, the occurrence was more likely than no
(21) Following the review of submissions from the licensee and/or disciplinary
hearing, the CGC may then take such disciplinary action permitted under the
Law and the Regulations against the licensee as the CGC sees fit by giving
written notice by to the licensee casino resort operator of the disciplinary action
that the CGC intends to take.
(22) The cancellation, suspension or variation of the license under this
paragraph takes effect when the notice under paragraph (3) is given or on such
later date set out in the notice.
(23) A letter of reprimand or cease and desist order may address any matter
connected with the operation of the casino and may include a direction to the
integrated casino resort operator to discontinue, alter or rectify the conduct or
activity set out in the letter or order within a time set out in the letter or order.
(24) If the directions given in a letter of reprimand or cease and desist order are
not complied with within the time required in the letter or order, the CGC may,
by giving notice to the licensee, cancel, suspend or vary the terms of the
27
license or impose a financial penalty as set out in the Regulations.
(25) If a integrated casino resort operator operates the casino during the
suspension of the integrated casino resort license, the CGC may, by written
notice, impose a financial penalty on the integrated casino resort operator in an
amount equal to the gross gaming revenue recorded during such period, for
every day or part thereof that the casino operations continue while the
integrated casino resort license is suspended.
t.
Sanctions
and penalties
14.(1) The CGC Board shall take the following factors into consideration when
determining sanctions and penalties against a licensee:
(a)
whether the licensee knew or reasonably should have known that
the action complained of was a violation of the Law, the Regulations
or the terms and conditions of its license;
(b)
whether the licensee has previously been disciplined by the CGC;
(c)
whether the licensee has previously been served an infringement
notice or any other notice of whatever type or nature issued by the
CGC, concerning the violation of any law, regulation or terms and
conditions of its license;
(d)
whether the licensee reasonably relied upon professional advice
from a lawyer, doctor, accountant or other recognised professional,
which was relevant to the action resulting in the violation;
(e)
whether the licensee had a reasonably constituted and functioning
compliance programme;
28
(f) whether the imposition of a condition requiring the licensee to establish
and implement a written self enforcement and compliance
programme would assist in ensuring the licensee’s future
compliance with all laws, Regulations and terms and conditions of
its license;
(g)
whether the licensee received any financial gain from the violation;
(h)
whether the amount of any fine and/or other penalty imposed would
result in repayment of any gains unlawfully realised by the licensee;
(i) if the violation was caused by an officer or employee of the licensee,
the level of authority of the individual who caused the violation;
(j) whether the individual who caused the violation acted within the scope
of his authority as granted by the licensee;
(k)
the adequacy of any training programmes offered by the licensee
which were relevant to the activity which resulted in the violation;
(l) whether the licensee’s action substantially deviated from industry
standards and customs;
(m) the extent to which the licensee cooperated with the CGC during the
investigation of the violation;
29
(n)
whether the licensee has initiated remedial measures to present
similar violations;
(o)
the magnitude of penalties imposed on other licensees for similar
violations;
(p)
the proportionality of the penalty in relation to the misconduct;
(q)
the extent to which the amount of any fine imposed would punish
the licensee for the conduct and deter future violations;
(r)any mitigating factors offered by the licensee; and
(s)
any other factors the CGC in its sole and absolute discretion may
deem relevant.
(2) Where the CGC Board decides to impose a financial penalty on the
licensee, the CGC Board shall notify the licensee:
(a)
that the CGC Board proposes to require him to pay a penalty;
(b)
of the amount of the proposed penalty;
30
(c)
of the CGC’s Board reasons; and
(d)
of the period within which he may contest the penalty and make
representations to the CGC Board.
(3) The CGC Board shall consider any representations made by the licensee
with respect to the proposed penalty before making its final determination.
(4) At the end of the period set out in subparagraph (d) of paragraph (2), the
CGC Board may give the licensee a notice requiring him to pay a penalty
under this Regulation.
(5) A penalty imposed by notice under paragraph (4):
(a)
shall be payable by the licensee to the CGC; and
(b)
may be enforced as if it were a debt owed by the licensee to the
CGC.
License
suspension or
revocation
15.(1) The CGC Board may suspend or revoke a license if following a
disciplinary hearing under Regulation 13, the CGC Board decides that any of
the following applies:
31
(a)
that a licensed activity is being or has been carried out in a manner
which is inconsistent with the licensing objectives;
(b)
that a condition of the license has been breached or the licensee
has violated a material provision of the Law and the Regulations;
(c)
that the licensee has failed to cooperate with a disciplinary hearing
under Regulation 13;
(d)
that the licensee is unsuitable to carry on the licensed activities; or
(e)
that the licensee has failed to pay the annual license fee, if
applicable.
(2) For the purposes of determining suitability in subparagraph (d) of
paragraph (1), the CGC Board may consider:
(a)
the integrity of the licensee or of any person who exercises a
function in connection with or is interested in the licensed activities;
(b)
the competence of the licensee, or of any person who exercises a
function in connection with the licensed activities; and
(c)
the financial and other circumstances of the license or of any person
who exercises a function in connection with or is interested in the
32
licensed activities and the resources available for the purposes of
carrying on the licensed activities.
(3) Where the CGC Board suspends a license, the CGC Board shall notify the
licensee of the date when the suspension shall become effective and the
period for which the suspension shall last or that the suspension shall last
until some specified event occurs or until the CGC Board gives notice that the
suspension has been lifted.
(4) Where the CGC Board revokes a license, the CGC Board shall notify the
licensee of the date when revocation shall become effective. The CGC Board
may make transitional provisions, which, in the case of the operator, may
include providing a continuing license for operation of gaming machines after
the time the revocation takes place for other purposes.
PART V
INTERIM OPERATOR
Interim
operator
16. (1)Following appointment, an interim operator of the integrated casino
resort shall not make payment of net earnings to the former integrated resort
casino operator without prior approval of the CGC.
(2) Upon written notice from the CGC, the owner of the land and buildings
where the integrated resort casino is located shall provide a license to the
interim operator for access and use of land and buildings by an interim
operator of the integrated casino resort. Such license shall be for the period
required by the CGC in the written notice to such owner.
(3) The owner of the land and buildings may impose reasonable commercial
conditions in the license with the interim operator, and charge the interim
operator a reasonable monthly amount and for use of the land and buildings,
33
based on the fair market value thereof appraised by an independent chartered
surveyor. The form of the license and the permitted rental amounts to be
charged to the interim operator shall be subject to the approval of the CGC.
PART VI
CASINO OPERATIONS
Exclusion
17.(1) The operator shall keep records of exclusion orders at the casino
premises and provide the list of excluded persons to the CGC on request.
(2) Any exclusion order made by the operator or by voluntary application of a
person shall be promptly notified by the operator to the CGC and any
revocation thereof.
(3) The CGC shall promptly notify operator of any exclusion order it makes
and any revocation thereof.
(4) The Cyprus Police or a court making an exclusion order shall promptly
notify the operator and CGC of any exclusion order it makes and any
revocation thereof.
(5) A person who has been given an exclusion order by the operator or the
CGC may appeal to the CGC, whose decision is final.
(6) An exclusion order shall remain in place until it is revoked by the person
who gave the order.
34
(7) An excluded person may not enter or remain on the casino premises.
Violation of this provision by an excluded person is an offence.
(8) The operator shall not knowingly permit an excluded person to enter or
remain on the casino premises. Violation of this provision shall make the
operator liable to disciplinary action by the CGC.
(9) An excluded person shall not be permitted by the operator to collect any
winnings or recover any losses resulting from gaming activity at the casino
during the period of exclusion. Violation of this provision shall make the
operator liable to disciplinary action by the CGC.
(10) Where the operator knows or learns that an excluded person is about to
enter or is on the premises, it shall notify an inspector as soon as possible
and either prevent the excluded person from entering the casino premises or
remove the excluded person from the casino premises. Violation of this
provision shall make the operator and responsible casino employee subject to
disciplinary action by the CGC.
(11) The following categories of persons may be subject to exclusion orders
by the CGC, Cyprus Police, by Court order or by the operator and placed on
the exclusion order list maintained by the operator:
(a)
career or professional offenders, which for the purposes of this
paragraph shall mean persons who are repeated and habitual
criminal offenders;
(b)
persons who have been convicted of a criminal offence which is
punishable of more than six (6) months in prison; or where any
crime or offence involved moral turpitude;
35
(c) persons whose presence in the casino premises, in the opinion of
the CGC, is not in the public interest or who threaten to compromise
compliance with the Law and the Regulations, including:
(d)
(i)
persons having been previously charged with, or convicted of
cheating or persons whose license privileges have been
revoked by the CGC or a gaming regulator in another
jurisdiction or have been suspected of, charged with or
convicted of any offence described in sections 68-73 of the
Law or similar offences in another jurisdiction;
(ii)
persons with a notorious or unsavoury reputation which would
adversely affect public confidence and trust that the gaming
industry is free from criminal or corruptive elements; and
other persons known or reasonably suspected by the operator to
fall within the categories of persons described in subparagraphs (a)(c).
(12) Any person who is made subject to an exclusion order (other than by selfexclusion) shall be notified by the CGC of such fact by certified post or
personal service to the last known address of such person.
(13) Within thirty (30) days after service by post or personal service, the
person subject to the exclusion order may request a review by the Chairman
of reasons why he should not be subject to the exclusion order and whether
the exclusion order should be set aside. The Chairman shall review the
request and any supporting submissions made by the person and notify the
person of his decision to either affirm or set aside the exclusion order within
thirty (30) days of receipt of the request from the person. This process shall
not apply to exclusion orders issued by the Cyprus police or by Cyprus court
order.
36
(14) The operator shall provide in its responsible gambling programme a
process and procedures whereby a person may apply for self exclusion from
the casino premises. Such self exclusion programme will set out how the
programme will be communicated to casino customers, the application
process, the term and requirements of self-exclusion and the ability for the
self-excluded person to apply at a later time to revoke the self exclusion.
Anti-Money
laundering
procedures
188(I) of 2007
58(I) of 2010
80(I) of 2012
192(I) of 2012
101(I) of 2013
18.(1) The operator shall establish and maintain an anti-money laundering
programme, approved by the CGC, to comply with the Prevention and
Suppression of Money Laundering Activities Law. At a minimum this
programme shall provide:
(a)
Procedures to verify the identity of casino customers on the basis of
documents, data or information obtained from a reliable and
independent source at such point in time when a casino customer
purchases casino chips or exchanges casino chips with a total value
of two thousand euros (€2,000) or more during any period of twenty
four (24) hours;
(b)
records of casino customers obtained in establishing the identity of
casino customers in subparagraph (a) and of business relationships
with such casino customers for five (5) years, including:
(i)
copies of the evidential material of casino customers identities;
(ii)
relevant evidential material and details of all business relations
and transactions with such casino customer, including
37
documents for recording transactions in the accounting books;
and
(iii)
relevant documents of correspondence with casino customers
with whom they maintain ongoing business relationships.
188(I) of 2007
58(I) of 2010
80(I) of 2012
192(I) of 2012
101(I) of 2013
(c)
training of casino employees and casino key employees in the
recognition and handling of transactions and activities which may be
related to money laundering or terrorist financing, the operator’s
relevant money laundering procedures and of the requirements of
the Prevention and Suppression of Money Laundering Activities
Law;
(d)
appointment of a nominated officer whose role includes reporting to
the Unit for Combating Money Laundering (MOKAS) or its
successor, suspicions of money laundering or illegal financing
activity.
(2) The CGC, which is considered the Supervisory Authority under the
provisions of the Prevention and Suppression of Money Laundering Activities
Law, shall monitor the compliance of the operator with this Regulation and
shall take all necessary measures to ensure compliance of the operator. For
this purpose and to prevent non-compliance, the CGC shall issue guidance to
the operator on the implementation of these obligations and has all the
powers set out in the Prevention and Suppression of Money Laundering
Activities Law. The CGC shall notify MOKAS with regard to facts discovered in
the conduct of its duties, where the CGC knows or suspects that a person is
or was involved in money laundering or terrorist financing.
38
Credit
19.(1) The operator shall be permitted to engage in the following credit
transactions with casino customers:
(a)
accepting payment for chips, chip vouchers or tokens to be used in
gaming machines by charging to any credit card in the casino
customer’s name;
(b)
providing a cheque cashing facility to the casino customer;
(c)
allowing to be credited to the casino customer’s credit account the
amount of a cheque payable to the casino operator before the
cheque has been deposited with and cleared by an authorised bank;
and
(d)
providing credit to the casino customer’s credit account for the
purchase of chips, chip vouchers or tokens up to the limit of the
casino customer’s credit account.
(2) Prior to any casino customer being provided credit by operator (other than
by credit card), the following shall be required:
39
(a)
the casino customer must apply for credit with the operator under
the operator’s credit qualifying programme and qualify for credit
under that programme; and
106(I) of 2010
176(I) of 2012
40(I) of 2013
50(I) of 2013
(b)
the operator shall be satisfied of that casino customer’s
creditworthiness and compliance with the Contracts Consumer
Credit Law 106 (I)/2010 and operator’s credit policy, procedures and
controls referred to in paragraph (8) of this Regulation.
(3) The operator shall establish a credit account for each casino customer
who requests credit from the operator and for whom the operator wishes to
provide credit and shall comply with the requirements of this Regulation with
respect to such credit account.
(4) The operator shall, before establishing a credit account for a casino
customer under paragraph (3), enter into a credit agreement with the casino
customer. The credit agreement shall be in writing and shall contain all the
terms and conditions governing the granting of credit to the casino customer,
including:
(a)
the names and addresses of the parties to the credit agreement;
(b)
the nationality and permanent residence of the casino customer;
(c)
the terms and conditions relating to the grant of credit to the casino
customer;
40
(d)
the date the credit agreement was entered into;
(e)
the validity period for the credit agreement;
(f) the maximum credit limit of the casino customer under the credit
agreement;
(g)
the casino customer’s eligibility to draw upon the full amount of
credit granted under the credit agreement, up to the credit limit
referred to in subparagraph (f); and
(h)
any interest or fee payable by the casino customer for the granting
of credit to him.
(5)The operator shall, before granting a casino customer a cheque cashing
facility shall require an application for such facility, which shall include:
(a)
the date on which the application is made;
(b)
the name and signature of the casino customer making the
application;
(c)
the name and signature of the person approving the application on
behalf of the operator;
41
(d)
the validity period for the cheque cashing facility granted;
(e)
the maximum credit limit of the patron granted under the cheque
cashing facility; and
(f) any interest or fee payable by the casino customer for the granting of
the cheque-cashing facility to him.
(6) The operator shall maintain, in relation to each casino customer to whom it
grants credit:
(a)
a copy of the credit agreement entered into with the casino
customer and any supporting documentation, amendment or
supplementary agreement for not less than six (6) years after the
expiration of the credit agreement;
(b)
a copy of any application for a cheque cashing facility by the casino
customer for not less than six (6) years after expiration of the facility;
and
(c)
records relating to the casino customer’s credit account and/or
cheque cashing facility, for not less than six (6) years after the
completion of the transaction to which the record relates.
(7) The operator shall whenever requested by the CGC, produce to the CGC
all records referred to in paragraph (6) and permit the examination of those
records, the taking of extracts from them and making of copies of them and
42
furnish to the CGC all such information as the CGC may require in connection
with any such records.
(8) The operator shall, before issuing any chips on credit or granting any other
form of credit, develop and implement a credit policy and procedures and
controls relating to the granting of credit to its casino customers and shall
communicate these to casino employees and casino key employees. The
credit policy, procedures and controls shall include:
(a)
the credit assessment criteria by which the creditworthiness of
casino customer shall be assessed;
(b)
the credit limits applicable to different categories of casino
customers;
(c)
approval authority and procedures for approval of the establishment
of a credit account or cheque cashing facility for a casino customer,
including the casino customer’s credit limit and any increase in
credit limit;
(d)
the procedures for the issuance of credit and the administration of a
credit account or cheque cashing facility;
(e)
the records to be kept and checks to be made in relation to a credit
account or cheque cashing facility; and
(f) debt recovery procedures.
43
(9) The internal auditor of the operator shall review the operator’s credit policy,
procedures and controls at least once every six (6) months, and ensure its
credit policy, procedures and controls are implemented and operator is in
compliance with such credit policy, procedures and controls.
(10) The CGC shall have the right to inspect the credit records of operator and
audit compliance with the credit policy, procedures and controls of operator at
any time.
(11) Failure of the operator to comply with the requirements of the present
regulation shall be grounds for disciplinary action.
Complimentaries
20.(1) The operator shall establish and maintain a written complimentary
distribution programme, which programme must be approved by the CGC.
Such programme will include as a minimum a description of the:
(a)
types of complimentary services, gifts, cash or items of value to be
offered by the operator to casino customers;
(b)
method of promotion and delivery of the complimentary services;
(c)
procedures for recordkeeping, accounting and reporting of
complimentaries in compliance with subsection (3) of section 43 of
the Law;
(d)
procedures in relation to junkets and junket operators; and
44
(e)
internal controls to prevent abuse of complimentaries or violations of
subsection (1) of section 55 of the Law.
(2) Failure by the operator to comply with paragraph (1) shall be grounds for
disciplinary action.
Junkets
21.(1) No person shall organise, promote or operate a junket or provide credit
to a junket customer in or with respect to the casino unless it holds a junket
operator license from the CGC. No individual shall act as a junket
representative unless he holds a junket representative license.
(2) The requirements of paragraph (1) shall not apply to:
(a)
a casino employee or casino employee who organises, promotes or
conducts similar activities to a junket operator to bring casino
customers to the casino;
(b)
any person, such as a tour operator, who receives a commission or
other payment from the operator based solely on the price of the
transportation or lodging arranged for by that person; or
(c)
any person whose commission or other payment from the operator
is a fixed amount that is not based on or calculated in reference to
the gross gaming revenues of the operator attributable to players
introduced by that person.
45
(3) The operator shall prepare and submit to the CGC a monthly report of the
commission paid by the operator to any unlicensed person referred to in
subparagraphs (b) and (c) of paragraph (2).
(4) The operator shall not allow a person not holding a junket operator license
or a junket representative license or who is not a person referred to in
subparagraph (2) to organise, promote or conduct a junket within the casino
premises.
(5) An application for a junket operator license or a junket representative
license shall be made in the form required by the CGC and shall be
accompanied by:
(a)
an application fee in the amount set out in the applications fees
schedule;
(b)
an investigation fee in the amount set out in the applications fees
schedule;
(c)
the disclosure of corporate or individual information in the form
provided by the CGC for the applicant and such associates of that
applicant as the CGC may specify;
(d)
for the junket operator license, documentary evidence from the
operator that it intends to enter into a junket services agreement
with the applicant;
(e)
for the junket operator license, a reference for the applicant provided
by the operator, in such form as is required by the CGC;
46
(f) whether the junket operator wishes to extend credit to junket customers
outside of Cyprus and if so, its policies and procedures for doing so;
and
(g)
such other documents as the CGC may require to assess the
application.
(6) On receiving an application for a junket operator license or junket
representative license, the CGC shall carry out all such investigations and
inquiries as it considers necessary to enable it to consider the application
properly. In particular, the CGC may:
(a)
investigate the applicant in relation to the person’s suitability to be a
junket operator or junket representative;
(b)
investigate any person who may be an associate or who has a
business association with the applicant or any other person who is
connected with the ownership, administration or management of the
operations or business of the applicant;
(c)
require the applicant or any person referred to in subparagraph (b)
to provide such information or produce such records relevant to the
investigation of the application;
(d)
require the applicant or any person referred to in subparagraph (b)
to consent to having his photograph, fingerprints and palm prints
taken; or
47
(e)
send a copy of the application an of any such photograph,
fingerprints and palm prints taken to the Cyprus Police, who shall
inquire into and report to the CGC on such matters as the CGC
requests.
(7) The CGC shall consider the following in determining whether to grant a
junket operator license or a junket representative license to an applicant:
(a)
good reputation of the applicant, having regard to character, honesty
and integrity;
(b)
financial soundness and stability of the applicant;
(c)
satisfactory ownership, trust or corporate structure;
(d)
ability to obtain financial resources to ensure financial viability and
level of experience in management and operation of a junket
operator business;
(e)
the reputation, suitability and record of compliance of the owners,
directors, and executives and associates of the applicant; and
(f) the number of junket operator licenses or junket representative license
already granted for the casino.
48
(8) The CGC shall determine whether to grant a license to the applicant or not
and shall either issue the license to the applicant or refuse to issue the
license, and shall notify the applicant accordingly.
(9) A junket operator license or junket representative license may be granted
subject to such conditions as the CGC may require from time to time. A
condition of a license may be amended or revoked by the CGC, either by
application of the junket operator or junket representative or by the initiative of
the CGC. The CGC shall provide to the junket operator or junket
representative thirty (30) days notice of any proposed change. The junket
operator or junket representative or the junket operator may make
submissions to the CGC within the thirty (30) day notice period on any
proposed change. The CGC shall consider these submissions and notify the
junket operator of its final decision on the proposed changes within thirty (30)
days of receipt by the CGC of the submission from the junket operator or
junket representative. For amendments proposed by the junket operator or
junket representative, the CGC shall respond with a decision whether to
accept the changes within thirty (30) days of receipt by the CGC of requested
change.
(10) The term of a junket operator license shall be valid for the period set out
in the license, unless the CGC earlier revokes the license, which the CGC
shall be authorised to do for any of the following reasons:
(a)
as a sanction arising out of CGC disciplinary action;
(b)
the junket operator has been declared insolvent by a court in the
Republic of Cyprus or elsewhere or winding up proceedings have
been commenced against it; or
(c)
the operator has terminated the junket services agreement required
in subparagraph (d) of paragraph (5).
49
(11) The term of a junket representative license shall be valid for the period
set out in the license, unless the CGC earlier revokes the license, which the
CGC shall be authorised to do for any of the following reasons;
(a)
as a sanction arising out of CGC disciplinary action;
(b)
the licensed junket representative ceases to be employed by the
junket representative to which he is licensed; or
(c)
the operator has terminated the junket services agreement with the
junket operator to which he is licensed.
(12) Where a junket operator license or a junket representative license is
revoked under paragraphs (10) or (11), the junket operator or junket
representative shall immediately cease all junket activities with respect to the
casino. Failure of the junket operator or junket representative to do so shall be
an offence.
(13) Every junket operator and junket representative must, when requested to
do so by the CGC, provide the CGC with all information and records
requested by the CGC and appear before the CGC when requested to do so
to answer questions relating to his license or his activities.
(14) A licensed junket operator shall keep a record of every junket organised,
promoted, and conducted by it for the casino, in such form and manner as the
CGC may require, and at a minimum shall include:
50
(a)
The following information about each junket customer on the junket:
(i)
full name;
(ii)
date of birth;
(iii)
the address of his usual place of residence;
(iv) an identity card number, a passport number, a taxpayer
identification number, a driving license number or the number
of any other document of identify issued by any government
as evidence of the individual’s nationality or residence and
bearing a photograph of the individual;
(b)
the date and time of arrival at the casino of the junket customers;
(c)
the names and license numbers of the licensed
representatives, if any, accompanying the junket customers;
(d)
the amount and type of discount, rebate or complimentary provided
to each junket customer; and
(e)
such other information as the CGC may request in writing.
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junket
(15) Every licensed junket operator shall ensure than every record relating to
his or its operations as a junket operator, including any record required to be
kept under these Regulations, is kept in the Republic of Cyprus at a location
identified to the CGC, is retained for not less than six (6) years after the
completion of the transactions to which the record relates, and is available for
inspection by the CGC during that time.
(16) The CGC may, at any time by a notice in writing, require a junket operator
to appoint a special auditor to review or investigate the junket operator’s
affairs and report his findings to the CGC. The CGC shall specify the matters
to be investigated and the time within which the audit must be completed. The
junket operator shall engage a public accountant, approved by the CGC and
at the junket operator’s expense, to perform the audit.
(17) No junket operator shall share with any person who is not a licensed
junket operator or junket representative, all or part of a commission or other
payment received from the operator for the organisation, promotion, or
conduct or a junket. Notwithstanding the foregoing, a junket operator may pay
a fixed fee as a referral fee to another party, where such payment is not based
on the turnover of play or net win of the junket customer.
(18) No junket operator or junket representative may give credit to junket
customers, except where the CGC has so authorised in a condition to the
junket operator license, and subject to any Regulations, orders or regulations
issued by the CGC from time to time relating to credit provided by junket
operators.
(19) No junket operator or junket representative may in respect to junket
customers:
(a)
other than where its license from the CGC permits it to do so,
receive or retain a fee or other payment directly or indirectly by any
other way from the junket customer;
52
(b)
other than where its license from the CGC permits it to do so,
extend credit to the junket customer or liaise for this purpose with
any other person or entity;
(c) other than where its license from the CGC permits it to do so,
handle any junket customer money directly or indirectly;
(d)
pay for any services, including transportation, or other items of value
provided to, or for the benefit of any customer participating in a
junket; or
(e)
host any VIP rooms at the casino involving gaming for junket
customers or otherwise operate any gaming activities at the casino.
(20) Failure by a junket operator or a junket representative to comply with
paragraphs (13) – (19), shall be grounds for disciplinary action. Failure by a
junket operator to comply with paragraphs (17), (18) or (19) shall, in addition,
be an offence.
(21) The operator shall not permit a junket operator to commence a junket at
the casino unless a junket services agreement has been entered into between
the operator and the junket operator. The operator shall send a copy of such
junket services agreement to the CGC at least five (5) days prior to
commencement of the junket services agreement. The operator shall notify
the CGC of any changes to the terms of the junket services agreement, any
change of parties or any termination of the junket services agreement at least
five (5) days prior to any change becoming effective. Such agreement shall
be in writing and at a minimum include:
53
(a)
the name of the parties and the license number of the junket
operator;
(b)
a description of the commercial terms of the junket services
agreement, including the rate of commission or other payment
payable to the junket operator and the basis on which the payment
or other commission is calculated;
(c)
the duration of the junket services agreement;
(d)
the date on which the junket services agreement was entered into;
(e)
the signatures of persons authorised to represent the parties to the
agreement; and
(f) such other information as the CGC may require from time to time and
specify by notice in writing to the operator.
(22) The casino operator shall give an arrival report to the CGC in writing in a
form approved by the CGC, not less than one hour before the commencement
of gaming in the casino by a junket, or within such other period the CGC may
require. Any changes in the information provide shall be promptly notified by
the operator. The arrival report shall include at a minimum for each junket
customer:
(a)
full name;
54
(b)
date of birth;
(c)
nationality;
(d)
the usual place of residence;
(e)
an identity card number, a passport number, a driving license
number, a taxpayer identification number or the number of any other
document of identity issued by any government as evidence of the
individual’s nationality or residence and bearing a photograph of the
individual;
(f) the date and time of arrival at the casino of the junket customers and
the proposed date and time of their departure from the casino at the
conclusion of the junket; and
(g)
the names and license numbers of the junket representatives, if any,
accompanying the junket customers.
(23) Failure by the operator to comply with paragraph (22) shall be grounds
for disciplinary action.
Casino
customer
dispute
resolution
22.(1) Within seven (7) days from the date a dispute arises between the
operator and a casino customer, the operator shall endeavour to resolve the
dispute to the satisfaction of the casino customer, and to pay the casino
customer’s claim, where applicable.
55
(2) A casino customer who wishes to request the CGC to conduct an
investigation into the dispute shall, not later than seven (7) days after the date
he is informed of his right, make the request to the CGC in such form as the
CGC may require.
(3) The CGC may refuse to consider any casino customer’s request under
paragraph (2) for investigation if the information required in the request is
incomplete or the request is made later than the seven (7) day period set out
in paragraph (2), unless the CGC finds reasonable grounds for the
incompleteness or delay.
(4) Upon receiving a request for investigations into a dispute under paragraph
(2), the CGC shall conduct such investigations and shall determine if any
payment should be made to the casino customer and shall notify the casino
customer and operator of the decision.
(5) Failure of the operator to notify the CGC inspector or inform the casino
customer as required in paragraph (2) shall be grounds for disciplinary action.
(6) The decision of the CGC in paragraph (4) may be appealed by the casino
customer to the competent Court of Cyprus pursuant to applicable laws.
(7) Where the CGC has made a decision under paragraph (4), that payment
should be made by the operator, the operator shall pay the casino customer
within a period of thirty (30) days after the date of the inspector’s decision,
unless a request for reconsideration is made before the end of that period.
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(8) Where the operator which fails to make payment within the time required
in paragraph (7), the operator shall be liable to disciplinary action.
PART VII
CASINO PREMISES - EQUIPMENT
Casino
layout
23.(1) No casino games shall be conducted in any ancillary area.
(2) The operator shall ensure that there shall be a clear and unobstructed
view of any part of the casino gaming floor for an inspector or person standing
in any other part of the casino gaming floor and for any electronic or other
monitoring surveillance equipment.
(3) The operator shall ensure that the boundaries of casino gaming floor are
clearly and visibly identified for casino customers from the ancillary areas
within the casino premises.
(4) Upon applying for the integrated resort casino license, the operator shall
submit to the CGC for approval:
(a)
detailed floor plans of the proposed casino premises, indicating:
(i)
the boundaries of the casino premises;
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(ii)
the casino gaming floor areas within the casino premises, the
size of such area and the placement of gaming tables and
gaming machines thereon;
(iii)
the gaming pit areas and ancillary areas within the casino
premises and the size and location of each area;
(iv) all entrances and exits from the casino premises, and the types
of access controls at each entrance and exit, where applicable;
(b)
a statement by a chartered surveyor certifying the aggregate size of
all the casino gaming floor areas, the ancillary areas, the pathways
through the casino premises and the gaming pits indicated in the
floor plan;
(c)
a description of how the boundaries of casino gaming floor areas will
be clearly and visibly demarcated from the ancillary areas; and
(d)
a statement by the operator that the layout of the casino premises
complies with this Regulation.
(5) If the course of fitting out the casino premises prior to commencement of
casino operations or subsequently after the casino operations are
commenced on, the operator intends to deviate or make changes to the
casino layout plan submitted in paragraph (4) or to any amended casino
layout plan approved by the CGC, the operator shall first notify the CGC
showing the proposed deviations and obtain CGC approval of such changes
prior to implementing any such changes.
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(6) The operator shall ensure that the casino premises are fitted out in
accordance with the casino layout plan approved by the CGC. The operator
shall within fourteen (14) days following the initial fitout of the casino, or for
any changes to the casino layout subsequently approved by the CGC, obtain
and submit to the CGC a statement by a chartered surveyor certifying that the
casino layout is in accordance with the casino layout plan approved by the
CGC.
(7) The operator shall ensure and it shall be a condition of the casino license
that at all times the casino premises contains a minimum of 100 gaming
tables and 1,000 gaming machines. The operator shall ensure that at all times
the number of gaming tables do not exceed 200 and the number of gaming
machines does not exceed 2,000 without having obtained the written
acceptance of the CGC as provided for in article 4 of the Law. Such license
condition may be reviewed and changed by the CGC from time to time, either
by application of the operator or on its own initiative. The above conditions for
the number of gaming tables and gaming machines shall not apply for the
period during which the operator operates a temporary casino in accordance
to the provisions of article 15 of the Law.
(8) If at any time the operator operates the casino with a layout which does
not comply with the provisions of this Regulation or is not in accordance with
the approved casino layout plan or makes any changes to the layout of the
casino without permission of the CGC, the operator and any casino employee
or casino key employee making, authorising or directing such change, shall
be liable to disciplinary action.
Devices
used in
playing
casino
games
24. Devices and equipment used in playing casino games such as chips,
tokens, playing cards, dice, gaming tables and roulette wheels shall be
considered gaming equipment and subject to CGC approval and compliance
with such size, standard, uniformity, quality and technical standards set out in
standards notices issued by the CGC.
Casino
games
59
25.(1) The operator shall submit to the CGC for approval, in a form
designated for that purposed by the CGC, all proposed casino games and
gaming machines, the rules of the casino games, the procedures and rules
for wagers and the pay out of winning wagers that it proposes to conduct at
the casino. The operator shall not conduct a casino game or operate a
gaming machine at the casino prior to CGC approval of the casino game or
gaming machines, the rules of the casino game, the procedures and rules for
wages and the payout of winning wagers.
(2) Chips and chip purchase vouchers may only be issued and redeemed
during the hours of operation of the casino.
(3) The operator may not issue, or cause or permit to be issued, any chips for
gaming (other than complimentary chips) to any casino customer unless the
chips are paid for to the value of the chips by cash, credit or debit card, by
exchange for a chip purchase voucher issued by the operator or by debit
against the casino customer’s credit account, or by such other mode of
payment the CGC may approve.
(4) The operator may only redeem its chips or chip purchase vouchers from a
casino customer, in exchange for:
(a)
cash;
(b)
a cheque issued by the operator payable to the casino customer or
to any other person named by the casino customer;
(c)
an amount transmitted by electronic funds transfer from the
operator’s account to an account of the casino customer’s choice; or
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(d)
an amount credited, in accordance with the casino customer’s
instructions into the casino customer’s or any other casino
customer’s credit account with the operator.
(5) Chips issued by the operator shall only be used by a casino customer for
the playing of casino games within the casino premises of the operator. It shall
be an offence for a person to use chips for any other purpose.
(6) The playing cards used by the operator for playing of casino games in the
casino must, prior to each use, have been shuffled using an electronic shuffler
and not manually shuffled and be dealt from a card shoe or other device or
equipment approved by the CGC. It shall be unlawful for a dealer in any
authorised game to deal cards which have been shuffled by hand.
(7) A wager on an approved casino game must be made by placing chips on
the appropriate wagering areas of a gaming table. The operator shall not
accept any wager on a casino game:
(a)
placed on behalf of a casino customer who is not present in person
at the gaming table by another person, or placed by a casino
customer who is not so present using any communication device or
equipment;
(b)
placed otherwise than by means of chips issued by the operator; or
(c)
made without placing any chips on the gaming table, unless
otherwise provided in the approved game rules.
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(8) A casino employee conducting a casino game must refuse a wager from a
casino customer if:
(a)
the casino employee knows or reasonably believes that a casino
customer is incapable of making a decision in relation to a wager by
reason of his state of intoxication;
(b)
the wager is placed otherwise than in accordance with the approved
game rules; or
(c)
the casino employee knows or reasonably believes that the casino
customer is committing or has commented an offence under the
Law, the Regulations or any other Republic of Cyprus law in relation
to the playing of the casino game,
(d)
the casino employee knows or reasonably believes that a casino
customer is a minor.
(9) Winnings in a casino game shall be paid to the casino customer only in
chips, unless otherwise provided in the approved game rules.
(10) The operator shall pay every casino customer who wins a wager in any
casino game or on a gaming machine his winnings in full without deduction of
any commission or fee, unless otherwise provided in the approved rules of the
casino game.
(11) The operator shall declare a casino game or transaction with a gaming
machine void if there is any malfunction or fault in, or interruption in the
operation of, any part of any gaming machine or gaming equipment that
62
affects the outcome of that casino game. The operator shall further declare a
casino game or transaction with a gaming machine void if:
(a)
there is a force majeure event that disrupts the casino game or
operation of a gaming machine. “Force Majeure” as used in these
Regulations means fire or flood, an act of God, an act of war,
strikes, lock-outs or stoppages or restrains of labour, riots or civil
commotions or any other event beyond the control of the operator
that makes continuation of the casino game impossible;
(b)
the operator knows or reasonably suspects that a casino customer
is committing or has committed an offence under the Law or any
other written law in such a manner as may affect the outcome of the
casino game or gaming machine; or
(c)
the approved casino game rules provide for other circumstances
under which the casino game may be declared void and the
declaration is done under those circumstances.
(12) Where a casino game or transaction with a gaming machine has been
declared void by the operator, the operator shall clearly notify each casino
customer that the casino game or the gaming machine transaction has been
declared void, refund all wagers made in that casino game or in that gaming
machine. The operator may recover from casino customers any winnings
already paid for casino games or gaming machine transactions declared void,
provided that there is clear notice displayed in the casino that winnings may
be recovered when a casino game or gaming machine transaction have been
declared void.
(13) A casino employee or a casino key employee or CGC member or CGC
employee shall not:
63
(a)
advise a casino customer how to play a casino game, except to
explain the rules of the casino game or to ensure the casino
customer’s compliance with game rules;
(b)
by himself or in conjunction with any other person, solicit or receive,
or agree to receive, any tip, gratuity, consideration or other benefit
for himself or for any other person as an inducement to or a reward
for improperly influencing the outcome of a casino game and other
than for waiters, waitresses, hostesses, bartenders and other casino
employees not directly involved in the conduct of gaming, not to
solicit or accept tips or gratuities from casino customers in any
circumstances, unless otherwise approved by the CGC;
(c)
accept chips for any other purpose other than the playing of casino
games within the casino;
(d)
permit a casino customer to participate in a casino game if the
casino customer is in a state of intoxication; or
(e)
wager in the casino during the term or his employment or
engagement.
(14) Failure by a casino employee or casino key employee to comply with
paragraph (13) shall be grounds for disciplinary action. Failure to comply with
subparagraphs (b) or (c) of paragraph (13) by a casino employee, casino key
employee or CGC member or CGC employee shall in addition be an offence.
(15) The operator and a casino employee or casino key employee shall be
subject to disciplinary action for failure to:
64
(a)
issue, exchange or redeem chips in accordance with paragraphs
(2)-(5);
(b)
deal and shuffle playing cards in accordance with paragraph (6);
(c)
accept, refuse and refund wagers in accordance with paragraphs (7)
and (8);
(d)
pay or recover winnings in accordance with paragraphs (9) and (10);
or
(e)
declare a casino game or gaming machine transaction void
accordance with paragraph (11).
in
Identification
26.(1) Every casino employee, casino key employee, junket representative,
inspector or other employee or member of the CGC, gaming suppliers and
contractors, agents and consultants of the operator shall at all times while at
the casino premises, wear identification of a kind issued by the operator and
approved by the CGC in such a manner as to be visible to other person within
the casino premises.
(2) The identification described in paragraph (1) shall permit or restrict access
of such persons to certain areas of the casino premises in accordance with
their duties and responsibilities.
Gaming
equipment
27.(1) Any gaming equipment used or intended to be used by the operator in
the casino must be approved by the CGC and used in accordance with that
65
approval and any conditions thereof. The CGC may waive the requirement for
approval for any specific gaming equipment or class of gaming equipment.
(2) All gaming equipment that is used or intended for use in the casino and for
which approval is required shall be manufactured, installed, tested, inspected,
operated, maintained and repaired in accordance with the technical standards
and other requirements set out in the standards notices described in
paragraph (3) relating to that gaming equipment or class of gaming equipment
to which it belongs.
(3) The CGC shall issue standards notices setting out the required technical
standards for gaming equipment or class of gaming equipment that are
required for gaming equipment used in the casino and with which the gaming
equipment must comply for approval by the CGC, including but not limited to
initial and ongoing testing to be carried out on the gaming equipment or
reporting to be carried out. The CGC standards for gaming equipment shall at
a minimum include standards to ensure mechanical and electrical reliability,
security against tampering, ease of understanding use by players, acceptable
noise and light levels, and such standards as the CGC may deem necessary
to protect players from fraud or deception and to protect the integrity of the
gaming. Such standards shall be similar to technical standards and types of
gaming machines permitted in one or more other jurisdictions hosting world
class integrated resort casinos.
(4) The CGC may, upon application of the gaming supplier of the gaming
equipment or the operator, or on its own initiative, modify or waive any of the
CGC issued technical standards and requirements, subject to additional
conditions that the CGC may impose, in particular to ensure continued game
integrity, security of the gaming equipment and protection of the public
interest.
(5) Where such issued technical standards relating to any gaming equipment
or class of gaming equipment are revised by its own initiative, the CGC, by
notice in writing to the operator, may require the operator within thirty (30)
days or whatever other period the CGC otherwise requires, to make such
modifications to any gaming equipment or class of gaming equipment as may
be necessary to comply with any of the revised technical standards.
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(6) An application for approval of a class of gaming equipment may be made
by the operator intending to use the gaming equipment at the casino or an
approved gaming supplier intending on manufacturing or supplying the
gaming equipment for use in the casino. The application shall be in such form
as required by the CGC and shall include:
(a)
an application fee as set out in the application fees schedule;
(b)
an investigation fee in the amount set out in the application fees
schedule;
(c)
where technical standards notices or other requirements have been
issued in relation to the gaming equipment and have not been
waived, a report issued by an approved test service provider
certifying that the class of gaming equipment complies with those
technical standards and requirements of the CGC; and
(d)
such other documents and records as the CGC may require to
decide the application.
(7) The CGC may at its discretion, investigate or authorise the investigation of
gaming equipment for the purpose of determining whether the equipment is
suitable to be approved for use in the casino.
(8) The CGC may approve gaming equipment or a class of gaming
equipment, subject to such conditions as the CGC may impose.
67
(9) No person shall modify, or permit any modification of, any approved class
of gaming equipment, unless the person has obtained the prior written
approval of the CGC for the modification. Failure to comply with this
paragraph by the operator shall be grounds for disciplinary action. Any other
person who violates this paragraph shall be guilty of an offence.
(10) Subject to paragraph (11) of this Regulation, the CGC may revoke the
approval of approval of specific gaming equipment or a class of gaming
equipment where the gaming equipment or the class of gaming equipment:
(a)
no longer complies with standards notices or any other requirements
notified by the CGC applicable to it, or any conditions imposed by
the CGC;
(b)
has been modified without the prior written approval or waiver of the
CGC; or
(c)
has failed to function in a manner in which is was designed or
programmed to function.
(11) The CGC shall not revoke any approval of specific gaming equipment or
a class of gaming equipment unless the CGC has first served on the operator
in writing giving the operator a thirty (30) day period to present a submission
to the CGC why the approval should not be revoked. The CGC after
considering the submission, may decide to continue or revoke the approval,
and shall give the operator a notice of its decision and when any revocation
shall be effective.
(12) The operator shall not use or allow to be used in the casino any gaming
equipment or class of gaming equipment:
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(a)
not approved by the CGC under the provisions of this Regulation;
(b)
approval of which has been revoked under the provisions of
paragraphs (10) and (11);
(c)
other than in accordance with any conditions of such approval in
accordance with paragraph (8);
(d)
any gaming equipment not manufactured, installed, tested,
operated, maintained or repaired in accordance with paragraph (2);
or
(e)
any approved gaming equipment which has been modified without
prior written approval or waiver of the CGC under paragraph (9).
(13) Failure by the operator to comply with paragraph (12) shall be grounds
for disciplinary action and an offence.
Gaming
machines
manufacturers and suppliers
and gaming
test services
providers
28.(1) Any manufacturer, supplier or tester of gaming machines which intends
to manufacture or supply gaming machines or provide gaming machines
testing services to the operator for the casino must apply for a gaming
supplier license.
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(2) The application for the gaming supplier license shall be in the form
required by the CGC and shall include:
(a)
an application fee in the amount set out in the application fee
schedule;
(b)
an investigation fee, in the amount set out in the application fee
schedule;
(c)
the disclosure of corporate or individual information in the form
provided by the CGC as the CGC may specify; and
(d)
such other documents as the Authority may require to decide the
application.
(3) The CGC shall, on receiving an application under paragraph (1) shall carry
out all investigations and inquiries in relation to the applicant and any
associate of the applicant as is necessary to determine the suitability of the
applicant to hold a gaming supplier license and require the applicant to
produce such records relevant to the investigation of the application as may
be necessary.
(4) For the purpose of determining suitability of the applicant, the CGC may
consider:
(a)
the reputation of the applicant, having regard to character, honesty
and integrity;
70
(b)
the financial condition, stability and strength of the applicant and that
the source of its financial resources are not unsuitable;
(c)
whether the applicant has the technical capability to manufacture,
install, test , inspect, maintain or repair gaming machines in
accordance with the technical standards and for the purposes for
which the license is granted;
(d)
whether the applicant has an association with any person who is not
of good character, honesty and integrity;
(e)
whether each, director, partner, executive officer or direct or indirect
owner of the business is a suitable person; and
(f) whether the applicant has a consistent track record of compliance with
the legal and regulatory requirements applicable to it.
(5) If the CGC is satisfied that the applicant is suitable after its investigation, it
may issue a gaming supplier license to the applicant.
(6) A gaming supplier licensee shall have the following duties:
(a)
provide to the CGC such information or records as required by the
CGC;
71
(b)
appear before the CGC or an inspector in relation to any matter
relevant to its gaming supplier license or other matters and to
answer questions relating to such matters;
(c)
ensure that every gaming machine manufactured or supplied by it or
gaming testing services provided by it comply with the technical
standards requirements in standards notices issued by the CGC;
(d)
ensure that gaming machines manufactured or supplied to the
casino are gaming machines or a class or gaming machines
approved by the CGC; and
(e)
permit the CGC or its agent to inspect any premises in the Republic
of Cyprus where a gaming supplier licensee carries on business for
the purposes of an inspection or investigation.
(7) The CGC may from time to time investigate a gaming supplier licensee to
determine whether the gaming supplier licensee continues to be suitable to
hold a gaming supplier license.
(8) Disciplinary proceedings and sanctions against the gaming supplier
licensee for violation of the terms of the Law, the Regulations or the terms of
its license are set out in these Regulations .
PART VIII
EMPLOYEES LICENSING
Casino
employees
and casino
key employees
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29.(1) A person shall not be granted a casino employee license if:
(a)
the applicant fails to provide information, documentation and
assurances required by the Regulations and the CGC, or the
applicant fails to reveal any fact material to qualification, or supplies
information which is untrue or misleading as to a material fact
pertaining to the qualification criteria;
(b)
the applicant has been convicted of a felony, which occurred within
the past ten (10) year period in any jurisdiction in the past ten (10)
year period;
(c)
the applicant is currently being criminally prosecuted or has pending
charges for a felony in any jurisdiction in the past ten (10) year
period; or
(d)
the applicant is barred from the casino or any other casino in
another jurisdiction in the past ten (10) year period by an exclusion
order.
(2) A person applying for a casino key employee license shall provide
information, documentation and assurances concerning the following
qualification criteria:
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(a)
evidence of the applicant’s financial stability, personal background,
integrity and responsibility as may be requested by the CGC;
(b)
references as to the general reputation of the applicant with regards
to character, honesty and integrity;
(c)
evidence of suitability of the applicant to perform the work proposed
to be performed by the applicant, including job history and
references;
(d)
information about any civil judgments and criminal convictions
obtained against the applicant in Cyprus or any other country where
the applicant has lived or worked in the past ten (10) years;
(e)
a letter from the Cyprus police and all other jurisdictions where the
applicant has lived dated within sixty (60) days of the application
confirming that the applicant has no criminal record;
(f) if the applicant has worked in the gaming or casino industry previously
in a jurisdiction that permits that activity, a letter from the gaming or
casino enforcement or control agency in such jurisdiction, dated
within sixty (60) days of the application, confirming the experience of
the agency with the applicant including any disciplinary action and
his participation in the gaming activities of that jurisdiction; and
(g)
that the applicant is not disqualified from obtaining a license by any
of the criteria set out in subparagraphs (a)-(d).
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(3) An application for a casino employee license or casino key employee
license may be made by the applicant or the operator on behalf of anyone it
proposes to employ. Each application shall include the following:
(a)
a completed application form using the form designated by the CGC
at that time for the application;
(b)
an application fee in the amount set out in the application fees
schedule;
(c)
for casino key employees, an investigation fee, in the amount set
out in the application fees schedule; and
(d)
such other documents and information required by the CGC.
(4) An applicant for the casino employee license shall provide such
information and documents required in paragraph (2) and such other
information requested by the CGC for its investigation.
(5) An applicant for a casino key employee license shall provide the
information and documents required in paragraph (3) and such other
information required by the CGC.
(6) At a minimum, the application forms for both casino employee and casino
key employee licenses shall require the following information:
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(a)
applicant full name and address;
(b)
all residential addresses in the past ten (10) years;
(c)
driving license and passport details;
(d)
spouse or civil partner details;
(e)
confirmation of identity by a lawyer or by the CGC;
(f) names of two (2) references;
(g)
function or role applicant is to perform at casino;
(h)
details of any gambling licenses applied for or currently or previously
held within the past ten (10) years and any disciplinary action with
respect to that license;
(i) other licenses (other than driving license) applied for or held over
previous past ten (10) years in connection with employment and any
disciplinary action with respect to that license;
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(j) any criminal investigations, charges or convictions over the past ten
(10) years;
(k)
any civil legal actions taken against applicant over the past ten (10)
years;
(l) bankruptcy or agreement with creditors within the past ten (10) years;
(m) employment history over past ten (10) years;
(n)
professional qualifications relating to position or gambling related
training;
(o)
membership in any professional bodies (eg Cyprus Bar Association,
Cypriot Accountants Association) and any disciplinary action taken
by that body within the past ten (10) years;
(p)
any disqualification from acting as a company director; and
(q)
any other information which the CGC would reasonably expect
notice of when considering the application.
PART IX
INTERNAL CONTROLS
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Internal
controls
30.(1) The operator shall at a minimum at all times maintain a system of
internal controls approved by the CGC that includes:
(a)
a secure count room for the counting and storage of cash, coins,
tokens and cheques received in the conduct of gaming and for the
inspection, counting and storage of dice, cards, chips and other
representatives of value;
(b)
locked drop boxes and other devices where cash, coins or tokens
are deposited at the gaming tables or gaming machines;
(c)
procedures approved by the CGC for removal of the drop boxes or
other devices from the casino tables and machines and transport to
the count room; and
(d)
closed circuit surveillance of the casino premises and each gaming
table where casino games are played and where gaming equipment
is used and a surveillance system and plan approved by the CGC.
(2) Each such submission of internal controls required by subsection (1) of
section (51) and subsection (1) of section (55) of the Law and proposed by
the operator to the CGC shall contain both narrative and diagrams setting out
internal control systems to be used at the casino premises, including but not
limited to:
(a)
scope and procedures for surveillance;
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(b)
procedures governing the use of an employed or contracted private
security force within the casino premises;
(c)
accounting controls, including the standardisation of forms and
document controls to be used in the casino operations and
procedures and security for the counting and recording of revenue;
(d)
procedures, forms, and where appropriate, formulas covering the
calculation of hold percentages, revenue drop, expense and
overhead schedules, complimentary services, junkets, cash
equivalent transactions, salary structure and personnel practices;
(e)
job descriptions and the system of personnel and chain-of
command, establishing a separation of responsibility among casino
employees and casino key employees engaged in casino operations
and identifying primary and secondary supervisory positions for
areas of responsibility;
(f) procedures within the cashier’s cage for the receipt, storage and
disbursal of chips, cash and other cash equivalents used in casino
operations; the cashing of cheques; the redemption of chips and
other cash equivalents used in casino operations; the payout of
jackpots; and the recording of transactions pertaining to casino
operations;
(g) procedures for the receipt, recording, storage and disbursal of chips,
cash and other cash equivalents used in gaming between the
gaming tables and gaming machines and cashier’s cage;
(h)
procedures and standards for the opening and security of gaming
machines;
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(i)
gaming equipment controls, including procedures and security
standards for the handling and storage of cards, dice, machines,
wheels and all other gaming equipment;
(j) document controls and procedures and security for the counting and
recording of revenue; and
(k)
procedures and rules governing the responsibility of casino
employees and casino key employees with respect to the conduct of
casino games.
(3) A submission by the operator or an applicant for the casino license for
approval of internal controls procedures under subsection (1) of section (51)
and subsection (1) of section (55) of the Law and paragraphs (1) and (2),
shall comprise the following documents:
(a)
a description of the internal controls in the form required by the
CGC;
(b)
a statement of the Board of Directors of the operator or the applicant
that the specified internal controls satisfy the internal controls
requirements set out in subsection (1) of section (51) and
subsection (1) of section (55) of the Law and paragraphs (1) and
(2), any guidelines and codes of practice issued as of that time by
the CGC with respect to internal controls;
(c)
a statement of an independent auditor from a public accounting firm
engaged by the operator and approved by the CGC that:
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(d)
(i)
the specified internal controls satisfy the internal controls
requirements set out in subsection (1) of section (51) and
subsection (1) of section (55) of the Law and paragraphs (1)
and (2), and any guidelines and codes of practice issued as of
that time by the CGC with respect to internal controls;
(ii)
the operator or applicant for the casino license has adequate
systems and processes in place to implement the specified
internal controls; and
such other documents as the CGC may require to determine
whether the specified internal controls satisfy the internal controls
requirements applicable to the operator or the applicant for the
casino license.
(4) The CGC may, upon request of the operator or an applicant for the casino
license, modify or waive some of the requirements under subsection (1) of
section (51) and subsection (1) of section (55) of the Law and paragraphs (1)
and (2) of this Regulation, at its discretion.
(5) The CGC shall not approve any specified internal controls submitted by an
operator or an applicant for the casino license unless it is of the opinion that
the specified internal controls satisfy, or will satisfy all the internal controls
requirements applicable to the license or the applicant for the casino license.
(6) The CGC may:
(a)
approve all or part of the specified internal controls submitted by the
operator or an applicant for the casino license subject to such
conditions as the CGC may impose; or
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(b)
reject all of part of the specified internal controls submitted by by the
operator or an applicant for the casino license if any of the specified
internal controls do not satisfy any of the internal controls
requirements applicable to the operator.
(7) The CGC may issue guidelines and codes of practice for internal controls
at the casino from time to time. In accordance with subsection (2) of section
(55) of the Law, the CGC shall give ninety (90) days notice of any provisions
of guidelines and codes of practice issued by the CGC that require changes to
operator’s internal control procedures. The operator shall have the right to
make a submission to the CGC to object to the proposed changes. The CGC
shall consider the submission make its final decision and notify the operator of
the decision in writing as set out in subsection (2) of section (55) of the Law.
(8) The operator shall ensure that all approved internal controls are
implemented in accordance with the approval of the CGC and such conditions
as may be imposed under subparagraph (a) of paragraph (6).
PART X
ACCOUNTING PROCEDURES – FINANCIAL REPORTS
Operator
accounting
31.(1) The operator shall establish and maintain administrative and
accounting procedures for determining the operator’s liability for taxes and
fees and for the purpose of exercising effective controls over the operator’s
internal fiscal affairs. Such procedures shall be submitted to the CGC for
approval at least ninety (90) days prior to the commencement of casino
operations. The procedures shall be designed to ensure that:
(a)
assets are safeguarded;
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(b)
financial records are accurate and reliable;
(c)
transactions are performed only in accordance with management’s
general or specific authorisation;
(d)
transactions are recorded adequately to permit proper reporting of
gaming revenue and fees and casino taxes, and to maintain
accountability for assets;
(e)
access to assets is permitted only
management’s specific authorisation;
in
accordance
with
(f) recorded book assets is compared with actual assets at reasonable
intervals and appropriate action is taken with respect to any
discrepancies; and
(g)
functions, duties are responsibilities are appropriately segregated
and performed in accordance with sound practices.
(2) The CGC shall not approve any administrative and accounting procedures
submitted by an operator or an applicant for the casino license unless it is of
the opinion that the specified accounting procedures satisfy, or will satisfy all
the requirements applicable to the license or the applicant for the casino
license.
(3) The CGC may:
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(a)
approve all or part of the specified administrative and accounting
procedures submitted by the operator or an applicant for the casino
license subject to such conditions as the CGC may impose; or
(b)
reject all of part of the specified administrative and accounting
procedures submitted by the operator or an applicant for the casino
license if any of the specified administrative and accounting
procedures do not satisfy any of the internal controls requirements
applicable to the operator.
(4) The CGC may issue guidelines and codes of practice for administrative
and accounting procedures at the casino from time to time. Under subsection
(2) of section (55) of the Law, the CGC shall give ninety (90) days notice of
any provisions of guidelines and codes of practice issued by the CGC that
require changes to operator’s administrative and accounting procedures.
Operator shall have the right to make objections to the proposed changes and
the CGC shall have the right to make the final decision as set out in
subsection (2) of section (55) of the Law.
(5) The operator shall ensure that all approved administrative and accounting
procedures are implemented in accordance with the approval of the CGC and
such conditions as may be imposed under subparagraph (a) of paragraph (6)
of Regulation 30.
(6) The operator, in such a manner as the CGC may approve or require, shall
keep accurate, complete, legible and permanent records of all transactions
relating to revenue that is taxable. Where the operator keeps permanent
records in a computerised or microfiche form, it shall provide to the CGC a
detailed index of such computerised or microfiche records, such index clearly
identifying activities and dates.
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(7) The operator shall keep general accounting records on a double entry
system of accounting, maintaining detailed, supporting, subsidiary records,
including:
(a)
detailed records identifying revenues, expenses, assets, liabilities
and equity;
(b)
detailed records of all credit instruments issued to and used by
casino customers;
(c)
individual and statistical casino game records to reflect statistical
drop, statistical win, and the percentage of statistical win to
statistical drop by table for each table game, and to reflect statistical
drop, statistical win and the percentage of statistical drop to
statistical win for each type of table game, either by each shift or
other accounting period approved by the CGC and individual and
statistical game records reflecting similar information for all other
casino games;
(d)
gaming machine analysis reports which, by each gaming machine,
compare actual hold percentages to theoretical hold percentages;
(e)
the records required by the operator’s CGC approved system of
internal controls;
(e)
journal entries prepared by the operator; and
(f) any other records that the CGC specifically required are maintained.
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(8) The operator shall create and maintain records sufficient to accurately
reflect gross income and expenses relating to its gaming operations.
(9) If the operator fails to keep the records used by it to calculate gross
gaming revenue, the CGC may determine and compute the amount of taxable
revenue upon the basis of an audit conducted by the CGC, upon the basis of
any information within the CGC’s possession, or upon statistical analysis.
(10) The CGC shall have the authority to undertake the following activities
with respect to the operator and its procedures and records:
(a)
conduct periodic audits or review of the books and records of the
operator;
(b)
review the accounting methods and procedures used by operator;
(c)
to review and observe methods and procedures used by operator to
count and handle cash, chips, tokens, cheques and credit
instruments;
(d)
to examine the operator’s records and procedures in extending
credit, and to confirm with casino customers the existing of an
amount of debt and any settlement thereof;
(e)
to examine and review the operator’s internal control procedures;
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(f) to examine all accounting and bookkeeping records and ledger
accounts of the operator; and
(g)
to examine the books and records of the operator when conditions
indicate the need for such action or upon request of the CGC.
(11) The CGC shall conduct each audit in accordance with standards
developed by the CGC for such audits. The CGC shall prepare a report at the
end of each audit and shall submit a copy of the report to the CGC Board and
a copy to the operator.
(12) The operator may within ten (10) days of receiving the audit report in
paragraph (11), object to any findings of the audit in a written submission to
the CGC. The CGC shall consider the submission of the operator prior to
making its final determination.
(13) When the audit report finds that the operator owes additional casino tax
or fees or finds that a refund of casino tax or fees is owed to operator, the
CGC shall provide to the CGC Board the legal basis on which the findings are
made and sufficient detail to allow the CGC Board to make a determination.
(14) The CGC Board shall notify the operator in writing of its decision with
respect to the audit report findings and operator shall make any payment due
within thirty (30) days of the notice or if monies are due operator, the CGC
shall make a refund to operator within thirty (30) days of the date of the notice.
Operator
financial
reports
32.(1) All financial statements prepared by operator under subsection (1) of
section (58) of the Law shall be prepared following such procedures and in
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such manner and form as the CGC may approve or require and complies with
International Financial Reporting Standards.
(2) Operator’s proposed financial statements procedures shall be submitted to
the CGC for approval at least ninety (90) days prior to the commencement of
casino operations.
(3) The CGC shall not approve any financial statements procedures submitted
by an operator or an applicant for the casino license unless it is of the opinion
that the specified internal controls satisfy, or will satisfy all the internal controls
requirements applicable to the license or the applicant for the casino license.
(4) The CGC may:
(a)
approve all or part of the specified financial statements procedures
submitted by the operator or an applicant for the casino license
subject to such conditions as the CGC may impose; or
(b)
reject all of part of the specified financial statements procedures
submitted by the operator or an applicant for the casino license if
any of the specified financial statements procedures do not satisfy
any of the financial statements requirements applicable to the
operator.
(5) The CGC may issue guidelines and codes of practice for financial
statements procedures for the operator from time to time. Under subsection
(2) of section (55) of the Law, the CGC shall give ninety (90) days notice of
any provisions of guidelines and codes of practice issued by the CGC that
require changes to operator’s financial statements. Operator shall have the
right to make objections to the proposed changes and the CGC the right to
make the final decision as set out in subsection (2) of section (55) of the Law.
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(6) The operator shall ensure that all approved financial statements
procedures are implemented in accordance with the approval of the CGC and
such conditions as may be imposed under subparagraph (a) of paragraph (4).
PART XI
ADVERTISING – ENTERTAINMENT - ALCOHOL
Advertising
33.(1) No licensee or any person acting on behalf of a licensee, shall publish,
distribute or carry out an advertisement or promotion for the casino except in
accordance with the requirements of section 66 of the Law and of the present
regulation and advertising standards that the CGC may issue.
(2) The CGC may issue advertising standards for advertising and promotions
from time to time. The CGC shall give the operator ninety (90) days notice of
any such new or revised provisions of advertising standards issued by the
CGC. The operator shall have the right to make objections to the proposed
standards by providing a submission to the CGC within thirty (30) days of
receipt of the notice from the CGC. The CGC shall consider the submission of
the operator and notify the operator of its determination within thirty (30) days
of receipt of such submission. If such date is not altered by the CGC, the
standards shall effective at the end of the ninety (90) day notice period.
(3) Advertisements and promotions for the casino must be truthful, tasteful,
inoffensive, socially responsible, promote the integrated casino resort as a
whole, and not just the gaming activity, and have particular regard to the need
to protect minors and other vulnerable persons from being harmed or
exploited.
(4) Advertisements and promotions for the casino must not:
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(a)
portray, condone or encourage gambling behaviour that is socially
irresponsible or could lead to financial, social or emotional harm;
(b)
exploit the susceptibilities, aspirations, credulity, inexperience or
lack of knowledge of minors or other vulnerable persons;
(c)
suggest that gambling can provide an escape from personal,
professional or educational problems such as loneliness or
depression;
(d)
suggest that gambling can be a solution to financial concerns, an
alternative to employment or a way to achieve financial security;
(e)
portray gambling as indispensable or as taking priority in life; for
example, over family, friends or professional or educational
commitments;
(f) suggest that gambling can enhance personal qualities, for example,
that it can improve self-image or self-esteem, or is a way to gain
control, superiority, recognition or admiration;
(g)
suggest peer pressure to gamble nor disparage abstention;
(h)
link gambling to seduction, sexual success or enhanced
attractiveness;
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(i)
portray gambling in a context of toughness or link it to resilience or
recklessness;
(j)
suggest gambling is a rite of passage;
(k)
suggest that solitary gambling is preferable to gambling with a
group of persons;
(l) be likely to be of particular appeal to minors, especially by reflecting or
being associated with youth culture;
(m) be directed at minors through the selection of media or context in
which they appear;
(n)
include a minor, or what appears to be a minor, gambling or playing
a significant role in the advertisement;
(o)
portray persons behaving at the casino in an adolescent; juvenile or
loutish way;
(p) exploit cultural beliefs or traditions about gambling or luck; or
(q)
condone or encourage criminal or anti-social behaviour.
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(5) Advertisements or promotions for non-gambling leisure facilities at the
integrated casino resort that incidentally refer to separate gambling facilities,
for example, as part of a list of facilities, may include minors provided that
such minors are displayed as being accompanied by an adult and are
socialising responsibly outside the casino gaming floor.
(6) No licensee shall give an interview or media release to any print or
broadcast media organisation unless the interview or media release:
(a)
Contains factual information only;
(b)
is accurate and capable of being substantiated; and
(c)
does not violate any of the criteria for advertising set out in
subsection (3) of section (66) of the Law and in this Regulation.
(7) Where a licensee in violation of paragraphs (1), (3), (4), (5) and (6) has
published, broadcast or distributed or caused to be published, broadcast or
distributed an advertisement for the casino or runs a promotion or causes a
promotion to be run, the CGC may direct the licensee to rectify, withdraw,
remove or discontinue the casino advertisement or the casino promotion, and
that licensee shall comply with that direction.
(8) Failure by a licensee to comply with paragraphs (1), (3), (4), (5) and (6)
shall make the licensee liable to disciplinary action.
(9) Failure by a person not a licensee to comply with paragraphs (1), (3), (4),
(5) and (6) shall be an offence and punishable under section 94 of the Law.
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Entertainment
34.(1) Live entertainment provided at the integrated casino resort shall be
lawful, appropriate and of the type and manner customary at other world class
integrated casino resorts. The operator shall not offer entertainment and of a
manner or type that would bring the integrated casino resort or the Republic of
Cyprus into disrepute.
(2) The CGC may issue further guidelines and standards for entertainment
from time to time.
(3) The CGC shall have the authority to require the operator to cease or make
changes to any entertainment that does not comply with paragraphs (1) and
(2) and the operator shall comply with such orders.
(4) Failure of operator to comply with paragraph (1) or standards issued
under paragraph (2) shall subject the operator to disciplinary action.
Alcohol
Cap.144
33 of 1961
50 of 1963
8 of 1966
26 of 1968
4 of 1972
69 of 1977
20 of 1985
83(I) of 1998
7(I) of 2005
66(I) of 2007
6(I) of 2009
19(I) of 2012
35. (1)Operator shall apply for an alcoholic beverages license at the relevant
authority and comply with the provisions of the Sale of Intoxicating Liquors
(Spirits) Law (Cap 144) and relevant regulations, as periodically amended, as
well as with the terms and conditions of the license set by the relevant
authority.
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(2) The alcoholic beverages license for the casino issued by the relevant
authority for the operator shall permit the distribution and consumption of
alcoholic beverages in bars and restaurants in the integrated casino resort
and on the casino gaming floor.
(3) Alcoholic beverages may be provided free of charge to casino customers
on the casino gaming floor by the operator under its license.
(4) Alcoholic beverages may not be provided to any casino customer who is or
appears to be in a state of intoxication and operator shall comply with
applicable laws and regulations for responsible serving of alcohol.
(5) No casino employee, key casino employee, inspector, CGC member or
CGC employee or other contractor or agent of the operator or CGC shall
consume alcoholic beverages at the integrated casino resort whilst on duty.
Cap.144
33 of 1961
50 of 1963
8 of 1966
26 of 1968
4 of 1972
69 of 1977
20 of 1985
83(I) of 1998
7(I) of 2005
66(I) of 2007
6(I) of 2009
19(I) of 2012
(6) Inspectors of the CGC shall cooperate with the relevant authority with
respect to any violations by the operator of the Sale of Intoxicating Liquors
(Spirits) Law (Cap 144) and relevant regulations, as periodically amended, as
well as with the terms and conditions of the license set by the relevant
authority.
PART XII
CHANGES IN OPERATOR POSITION
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Changes in
operator
position
36.(1) In this paragraph, “major change” in relation to the operator shall mean:
(a)
any change in casino key employees involved in managing the
casino;
(b)
any significant change in the financial position of operator, or any
change of greater than five percent (5%) of the equity and or voting
rights of operator or the owner of the land or buildings on which the
casino is located; and
(c)
any change which results in a person becoming an associate of the
casino operator.
(2) The operator shall take all reasonable steps to ensure that a major change
in the situation existing in relation to the operator which is within the operator’s
control does not occur except with the prior approval in writing of the CGC.
(3) The operator shall submit an application in a form designated by the CGC
for the purposed approval of a major change in the operator which sets out
the change proposed and the reasons for the change.
(4) The CGC shall review an application for approval of a proposed major
change under paragraph (2) using the same due diligence procedures in
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sections 21 and 22 of the Law are applied in an application for a casino
license.
(5) The CGC shall enquire into the change to determine the suitability of the
proposed change in operator. If the CGC approves the change, it shall so
notify operator and the operator may proceed with implementing the change.
If the CGC does not approve the change, it may instruct the operator under
what conditions, if any, the change may be approved.
(6) Failure of the operator to comply with paragraphs (2)-(4) shall be grounds
for disciplinary action.
PART XIII
APPROVAL OF CONTRACTS
Approval of
contracts
37.(1) The following types of contracts for supply of goods and services to the
casino shall require approval by the CGC:
(a)
contracts the value of which exceeds two hundred thousand euros
(€200,000), or the annual aggregate value of multiple purchases
from a supplier exceeds two hundred thousand euros (€200,000);
(b)
supply, maintenance, repair or disposal of gaming equipment;
(c)
supply of financing or financial services to the operator;
(d)
supply of debt recovery services to the operator;
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(e)
supply of management agent services for the management of the
casino or any part of the casino operations;
(f) supply of consultancy or other services related to gaming;
(g)
supply of consultancy or other services related to information
technology;
(h)
any contract, including leases, in which the provider of the goods or
services or lessor acquires a right to receive income derived from
the operator’s gaming revenue;
(i) supply, maintenance or repair of security equipment;
(j) supply, maintenance or repair of surveillance equipment;
(k)
supply of consultancy or other services related to casino security;
and
(l) supply of consultancy or other services related to casino surveillance.
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(2) The operator shall enter into or be a party to contracts or to a variation of a
contract of the types set out in paragraph (1) unless:
(a)
the operator has given notice in writing to the CGC of the details of
the proposed contract at least twenty eight (28) days (or such
shorter period as the CGC may allow) before entering into or
becoming a party to it, and the CGC has notified the operator that it
has no objections to the proposed contract or variation; or
(b)
the CGC has waived the notice or approval requirements as set out
in paragraph (3).
(3) The CGC may by notice in writing to the operator, exempt a particular type
of contract or supplier from the notification and approval requirements of
paragraph (2).
(4) The notification to the CGC in subparagraph (a) of paragraph (2) shall
include the following:
(a)
the details of the proposed supplier and the proposed contract in the
form required by the CGC;
(b)
a copy of the contract (and translation if not in English or Greek);
(c)
if any part of the proposed contract is to be performed by a person
other than the party to the contract, the name, business address,
place of incorporation, business registration number and contact
details of that person; and
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(d)
any such other documents requested by the CGC.
(5) The CGC may waive any of the application information requirements set
out in paragraph (4).
(6) Every contract of supply for the casino of the type described in paragraph
(1) shall contain:
(a)
the name, business address, place or incorporation or registration,
business registration or incorporation number and contact details of
each party to the contract;
(b)
a full description of the goods and services to be provided under the
contract;
(c)
a full description of the nature and amount of the payment or other
consideration, whether in money or otherwise, for the supply of
those goods and services; and
(d)
the duration of the contract.
(7) The operator shall notify the CGC in writing of the date that any contract of
the type in paragraph (1) of the Regulations approved by the CGC is entered
into, terminated before expiration of that contract and the reasons for the
termination, and the date an option under any such contract is exercised.
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(8) The operator shall notify the CGC as soon as possible upon becoming
aware of any circumstance with respect to a supplier of gaming goods and
services to the casino or that any contract of the type in paragraph (1)
approved by the CGC that is likely to adversely affect the credibility, integrity
and stability of operations of the casino.
(9) Failure by the operator to comply with paragraphs (2), (4) (6), (7) and (8)
shall be grounds for disciplinary action.
PART XIV
RESPONSIBLE GAMBLING
Responsible
gambling
38. (1) The CGC may issue standards and a code for responsible gambling
from time to time, with which the operator shall comply and incorporate into its
responsible gambling programme.
(2) The operator shall submit a responsible gambling programme to the CGC
for approval as part of its application to the CGC for the integrated casino
resort license and as part of the application for any renewal of the integrated
casino resort license.
(3) The CGC shall not approve any responsible gambling programme
submitted by operator unless the CGC is of the opinion that the responsible
gambling programme satisfies or will satisfy the requirements of section 67 of
the Law and the provisions of the present regulation and any standards or
code for responsible gambling issued by the CGC.
(4) The CGC may, by notice in writing served on the operator approve a
responsible gambling programme for the casino, subject to such conditions as
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the CGC determines appropriate or reject the responsible gambling
programme if it does not satisfy any of the responsible gambling requirements
of section 67 of the Law and the provisions of the present regulation and any
standards or code for responsible gambling issued by the CGC.
(5) The operator shall complete implementation of the approved responsible
gambling programme for the casino within two (2) months (or such longer
period as the CGC permits) after the date operator receives notice from CGC
that its responsible gambling programme is approved.
(6) Where the CGC issues standards or a code for responsible gambling or
makes any changes to the standards or to the code for responsible gambling
after the time the responsible gambling programme of the operator is
approved by the CGC, the CGC shall provide notice in writing of such
changes to the operator.
(7) The operator shall, within thirty (30) days after notice from the CGC of
such changes set out in paragraph (6), submit to the CGC for approval an
amended responsible gambling programme with changes required to comply
with the changes in standards or code or a statement that it believes its
responsible gambling programme remains in compliance with the changes in
standards or code.
(8) The CGC may, by notice in writing served on the operator, approve the
changes to the amended responsible gambling programme or the statement
that that no amendments are required to remain in compliance, subject to
such conditions as the CGC thinks fit or reject the amended responsible
gambling programme or statement of compliance if it does not satisfy the
standards or code of responsible gambling issued by the CGC.
(9) The operator must ensure that any person or committee which it appoints
to supervise, operate, establish or implement the approved responsible
gambling programme for the casino does not:
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(a)
do, authorise or permit the doing of anything that causes the
responsible gambling programme not to satisfy any requirements
applicable to it; or
(b)
do, make, or authorise any change to the approved responsible
gambling programme without prior written approval of the CGC.
(10) The operator shall maintain and retain records of its responsible
gambling activities programme at the casino in accordance with section 59 of
the Law. The CGC may request copies of such records or other information
from the operator relating to the responsible gambling programme at any time.
PART XV
CASINO TAX
Casino tax
39. (1)The operator shall submit a return of its gross gaming revenue to the
CGC for each calendar month, by no later than the end of the following
calendar month, along with payment of casino tax due as set out in
subsection (3) of section 81 of the Law. The CGC may at its discretion in a
particular circumstance, extend the reporting period or the time within which
the return is due and payment made.
(2) Gross gaming revenue shall be calculated as it is set out in subsection (4)
of section 81 of the Law. The CGC shall have the right to amend the definition
of gross gaming revenue to include certain deductions that it deems
appropriate.
(3) If any return is not made by the operator in accordance with the time
required by paragraph (1) or is extended by the CGC, the CGC may impose a
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penalty of one thousand euros (€1,000) for each day the return is late, up to a
maximum of ten thousand euros (€10,000). Such penalty may be recovered
by the CGC under the same collection procedures as set out in section 86 of
the Law.
(4) The return of gross gaming revenue shall be in such form as designated
by the CGC and shall be submitted to the CGC either electronically by email
or other means designated by the CGC or in hard copy delivered by post or
hand delivery.
(5) The return of gross gaming revenue shall contain for each month:
(a)
the gross gaming revenue for each type of casino game;
(b)
the gross gaming revenue for each type of gaming machine;
(c)
the total gross gaming revenue; and
(d)
the total casino tax payable.
(6) The CGC may request reports from the operator from time to time on:
(a)
variations in gross gaming revenue computed electronically by the
meters or electronic monitoring system of a gaming machine; and
gross gaming revenue according to the count of the money, tokens,
chips or coupons wagered at a gaming machine;
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(b)
gross gaming win for any type of casino game;
(c)
variance in the count of the inventory of chips or the amounts
wagered for casino games;
(d)
a report which explains the reason for adjustment of any meter of a
gaming machine; or
(e)
such other report as the CGC may require.
(7) Failure by the operator to comply with paragraph (5) within the time
requested by the CGC shall be grounds for disciplinary action.
(8) The operator shall keep and retain for a period of six (6) years from the
date a return is filed and in accordance with section 59 of the Law, sufficient
records to enable the CGC to ascertain gross gaming revenue and casino tax
for any time during that six (6) year period. Failure of the operator to keep
proper records in accordance with this paragraph shall be an offence.
(9) The operator in its annual engagement of an independent auditor under
section 60 of the Law, shall instruct the auditor to review and include in its
audit an opinion by the auditor whether:
(a)
sufficient controls are in place to ensure that the gross gaming
revenue is correctly recorded; and
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(b)
the returns of the gross gaming revenue furnished by the operator
are accurate.
(10) The CGC shall have the power to assess casino tax due from the
operator and notify the operator of the amount assessed where the
operator has failed to timely make any casino tax returns or if such returns
are incomplete or incorrect.
(11) Where an amount of casino tax has been repaid, paid or credited to
the operator that should not have been paid, repaid or credited, the CGC
may assess that amount as being casino tax credited to the operator for the
accounting period for which the amount was repaid, paid or credited and
notify the operator of the assessment.
(12) An assessment under paragraphs (10) and (11) of an amount of casino
tax due for any calendar month shall not be made more than 6 years from
the end of that calendar month for which the casino tax is payable.
(13) Notwithstanding paragraph (12), where in the opinion of the CGC, any
form of fraud or wilful default has been committed by or on behalf of the
operator in connection with or in relation to casino tax, the CGC may make
an assessment at any time for the purpose of recovering any loss of casino
tax or payment or refund of casino tax due and arising from the fraud or
wilful default and notify the operator of the assessment.
(14) At any time, where it appears to the CGC that an amount of casino tax
which was assessed under the present regulation exceeds or falls short of
the amount which should have been assessed or the CGC otherwise
needs to make changes to the assessment, the CGC may make a
supplementary assessment of the correct amount and shall notify the
operator of the adjusted assessment.
(15) Where an amount has been assessed and notified to the casino
operator under paragraphs (10), (11), (13) and (14), it shall, subject to the
provisions of the Law as to review and appeals, be deemed to be an
amount of casino tax due from the operator and may be recovered
accordingly, unless, or except to the extent that, the assessment has
subsequently been withdrawn or reduced.
(16) Where the CGC raises an assessment under paragraph (10) upon the
failure of the casino operator to make any returns, and subsequent to such
assessment, the casino operator makes a return, the CGC shall take into
account the return and revise the assessment as it deems appropriate.
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(17) Operator may carry forward any losses in gross gaming revenue
incurred in any calendar month to the next calendar month.
(18) If the operator has made an error in a return of its gross gaming
revenue in any return submitted to the CGC, the operator may apply to the
CGC within a period of 6 years from the date the return was made, by
notice in writing, to review and revise any assessment of casino tax made
in respect of that period for which the return was made.
(19) If the CGC has made an error in an assessment of casino tax for a
return within a period of 6 years from the date the return was made, the
CGC shall issue a notice to the operator of the error and issue a revised
assessment of casino tax for that period for which the return was made.
(20) If the operator disputes an assessment of casino tax made upon it
under paragraphs (10) or (11), the operator may apply to the CGC, by
notice of objection in writing, to review and revise the assessment made.
(21) The notice of objection set out in paragraph (20) shall be made by the
end of the calendar month that follows the calendar month of receipt of the
notice of assessment, unless the CGC permits a longer period.
(22) Upon receipt of a notice by the CGC under paragraphs (18) or (20), or
by the Operator under paragraph (19) the CGC Department may:
(a)
Require the operator to furnish such information, books,
records and documents relating to the gross gaming revenue
and calculation thereof; and
(b)
require operator staff to attend before the CGC to give
evidence with respect to the assessment and examine such
persons.
(23) If the operator has given a notice under paragraphs (18) or (20) or the
CGC has given a notice under paragraph (19) and the CGC and the
operator reach agreement as to the appropriate amount of the assessment,
the assessment shall be revised accordingly to the revised amount, and
notice of the revised assessment shall be served on the operator.
(24) If the operator has given a notice under paragraphs (18) or (20) or the
CGC has given a notice under paragraph (19) and the CGC and operator
fail to agree as to the appropriate amount of the assessment, the CGC shall
issue a notice of refusal to revise the assessment or may revise the
assessment to such amount as the CGC may determine appropriate and
the notice of refusal or revised assessment shall be served on the operator.
PART XVI
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CASINO GAMING MACHINES PREMISES LICENSES
Casino
gaming
machines
premises
licenses
40.(1) The operator shall not establish or operate any casino gaming
machines premises in the Republic of Cyprus in accordance with section 16 of
the Law prior to applying for an obtaining a casino gaming machines premises
license from the CGC for each location and site where the operator intends to
operate casino gaming machines premises.
(2) An application for a casino gaming machines premises license shall be
made in the form required by the CGC and shall be accompanied by:
(a)
an application fee set out in the application fees schedule;
(b)
details of the site and premises for the proposed casino gaming
machines premises;
(c)
details of the gaming machines premises layout;
(d)
details of the types and numbers of gaming machines and gaming
equipment to be used at the casino gaming machines premises;
(e)
details of the casino employees and casino key employees who will
operate the casino gaming machines premises;
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(f) details of how the policies of the operator with respect to the criteria set
out in subparagraphs (o), (p), (q) and (r) of paragraph (3) of
Regulation 11 will be applied to the casino gaming machines
premises; and
(g)
any other documents or information requested by the CGC.
(3) Upon its satisfaction with the application, documents and information
provided by the operator in paragraph (2), the CGC may grant the casino
gaming premises license, subject to any conditions the CGC may deem
appropriate, or if the application does not comply with its requirements, reject
the application for the casino gaming machine premises license. The CGC
shall notify the operator in writing of the grant or rejection of the license
application.
(4) The operator shall pay the CGC an annual license fee for each casino
gaming machines premises license. Such annual license fee shall be
€500,000 per casino gaming premises. The CGC shall invoice the operator
each year for the amount of the annual license fee due and operator shall pay
the CGC such amount within thirty (30) days of the invoice.
(5) Failure by the operator to comply with this regulation shall be grounds for
disciplinary action.
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APPENDIX OF APPLICATION FEES
Operator license
[€2,000]
Junket operator license
[€1,000]
Junket representative license
[€500]
Gaming equipment approval
[€500]
Gaming supplier license
[€500]
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Casino key employee
[€500]
Casino employee
[€200]
Casino gaming machines premises
[€1,000]
Investigation hourly rate
[€200]
Investigation fees assessment and payment
The cost of the investigation for license applications requiring an investigation,
shall be the number of hours spent by the CGC in the investigation times the
current hourly rate of the CGC at that time for investigations, plus any costs of
the CGC incurred in the investigation. An estimate of such investigation fee
shall be notified to the license applicant and the license applicant shall pay
such amount to the CGC within thirty (30) days of notification. At the
conclusion of the investigation into the application, or if the application is
withdrawn, the CGC shall certify the costs the actual cost of the investigation
and notify the applicant in writing:
(a)
Where the actual cost of the investigation is less than the amount
estimated by the CGC and paid by the applicant, the CGC shall
refund the amount, without interest, within thirty (30) days of the
date of notification to the applicant of the certified amount; or
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(b)
where the amount of actual cost of the investigation exceeds the
estimate and amount paid by the applicant, the applicant shall pay
the difference between the amount paid and the amount in excess
of the amount paid within thirty (30) days of the notification to the
applicant of the certified amount.
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