Gaming: gambling enterprises.

The Gambling Control Act provides for the licensure of certain individuals and establishments that conduct controlled games, as defined, and for the regulation of these gambling activities by the California Gambling Control Commission. That law provides that, if the owner of a gambling enterprise is not a person, the owner is not eligible for a gambling license unless specified persons involved in the enterprise obtain a gambling license. Existing law authorizes the commission to exempt specified limited partners in limited partnerships from the licensing requirements described above solely for the purpose of the licensure of a card club located on the grounds of a racetrack that is owned by a limited partnership that also owns the racetrack. This bill would repeal that licensure exemption. The bill, instead, would provide, solely for the purpose of the licensure of a gambling enterprise or gambling establishment that is owned directly or indirectly by a racetrack limited partnership owner, as defined, and under specified conditions, that these licensing requirements shall apply only to a corporation, and its officers, directors, and key employees, that (1) is directly or indirectly owned by a racetrack limited partnership owner, (2) leases or owns the gambling establishment or manages, supervises, or controls the gambling enterprise, and (3) holds the exclusive right, authority, and discretion to manage, supervise, conduct, and control the day-to-day operations, and direct the policies, of the gambling enterprise, without influence from, or direction by, the racetrack limited partnership owner, its general partners, or its investment managers or advisors. The bill would prohibit any other person or entity from being required to be licensed, except that if the corporation chooses to retain another person or entity to manage, supervise, control, and conduct the day-to-day operations, and direct the policies, of the gambling enterprise, that person or entity would be required to be licensed in addition to the corporation and its officers, directors, and key employees. This bill would make a related statement of legislative intent regarding a specified racetrack and card club.