N.Y. Comp. Codes R. & Regs. tit. 9 § 5116.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 5116.2 - Marketing and promotion plan

(a) Contents. Each video lottery gaming agent shall prepare annually a marketing and promotion plan (the marketing plan) for the video lottery gaming facility. Each annual marketing plan shall be submitted to the commission for review and approval as described in this Part. An annual marketing plan shall include a summary of projected net machine income and projected marketing expenditures by category, in a standard worksheet format prescribed by the commission. The marketing plan worksheet shall include budgeted marketing expenditures by month and in total for each standard category. The commission shall review such worksheet as part of the overall plan approval.

(b) Violation. The failure to submit any marketing plan when due to the commission shall be a violation of the video lottery gaming agent's license, the act and this Part.

(c) Requirements. Each annual marketing plan shall :

(1) be prepared in accordance with the format prescribed by the commission; and

(2) fully describe, in a narrative form, subject to the approval of the commission, the marketing and promotional activities that the video lottery gaming agent proposes for the applicable video lottery gaming facility for the subsequent 12-month period commencing on the first day of January of any calendar year. Such description shall include the overall strategy of how the portion of the vendor's fee used to fund the marketing and promotion program will be used for marketing, promotional and associated costs consistent with the customary manner of marketing and promoting comparable operations in the video lottery gaming entertainment industry in other states that are expected to be implemented at such video lottery gaming facility on a monthly, quarterly and annual basis ; the target market for such marketing and promotion ; the anticipated effect (return on investment) of the marketing, promotional and associated costs described; any and all media buys advertising the video lottery gaming facility, whether directly or indirectly; and an itemization of the projected budget for all marketing and promotional expenses on a monthly, quarterly and annual basis.

(d) Time for submission. Each annual marketing plan must be submitted to the commission for review and approval not earlier than 120 days and not later than 90 days prior to January 1 of any calendar year.

(e) Commission review. The commission shall review the annual marketing plan upon receipt and provide objections, questions or comments, if any, to the video lottery gaming agent within 45 days.

(f) Approval and implementation. If the marketing plan is approved by the commission without comment, then the video lottery gaming agent may proceed with the marketing plan's implementation commencing on the first day of January of any calendar year.

(g) Commission objection. In the event the commission objects or comments on the marketing plan, or any portion thereof, such objection, comment or question shall be delivered to the video lottery gaming agent in writing together with a disapproval notice of the submitted marketing plan in whole or in part.

(h) Amended plan after commission objection. Not later than 15 days from the receipt by the video lottery gaming agent of a marketing plan disapproval notice from the commission, or such longer time as the commission and the video lottery gaming agent may agree in writing, the video lottery gaming agent shall address the commission's objections or comments and submit an amended marketing plan to the commission for review. Upon submission of the amended marketing plan to the commission, a new 45-day time period for commission review will commence as described by this Part.

(i) Interim marketing plan. In the event the annual marketing plan is not approved by the commencement date of the marketing plan as agreed to by the commission for any year, the commission may, but shall not be required to, enter into an interim marketing plan agreement with the video lottery gaming agent for a period not to exceed 90 days from such commencement date. Such interim marketing plan shall be in such form as approved by the commission and govern the expenditure from the marketing and promotion program during such 90-day period for marketing, promotion and associated costs approved in such interim marketing plan. In the event the commission does not approve an interim marketing plan, or in the event an interim marketing plan expires, the video lottery gaming agent shall be in violation of this Part and the commission may impose fines.

(j) Adjustments. During any fiscal quarter covered by a marketing plan, the video lottery gaming agent may submit proposed adjustments, including an adjusted marketing plan worksheet and supporting documentation, to the marketing plan to the commission for review and approval. The commission shall have 15 days from the receipt of any proposed adjustment(s) to the marketing plan to review, approve or disapprove such adjustments in writing.

(1) In the event the proposed adjustments to the marketing plan are approved by the commission, written approval shall be sent to the video lottery gaming agent and the marketing plan shall be deemed amended accordingly.

(2) In the event such adjustments are disapproved by the commission, such disapproval, and the reason(s) therefore, shall be sent to the video lottery gaming agent in writing.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 5116.2

Amended New York State Register November 24, 2021/Volume XLIII, Issue 47, eff. 11/24/2021