Section 68IAC1-4-5. Related party transactions

   (a) Related party transactions are those between a casino licensee or a casino license applicant and at least one (1) of the following:

(1) A related party.

(2) A relative.

(3) A dependent.

  (b) Unless otherwise directed by the executive director, the internal control procedures for disclosure and approval of related party contracts or transactions do not apply to the following transactions:

(1) Transactions between a casino licensee or a casino license applicant and a supplier licensee.

(2) The payment of dividends to shareholders.

(3) Scheduled repayments of related party debt.

  (c) A related party transaction shall comply with the internal control procedures set forth in section 4 of this rule and the following provisions:

(1) A related party transaction or series of related transactions reasonably anticipated to exceed fifty thousand dollars ($50,000) in a twelve (12) month period shall be subject to approval by the board of directors, the owner, or a designee of the equivalent level. The duty to approve related party transactions in an amount greater than fifty thousand dollars ($50,000) shall not be delegated below this level of personnel.

(2) A written favorable fairness opinion from a reputable and independent organization knowledgeable in the area and approved by the executive director or the commission must be provided prior to execution for the related party contracts, transactions, or series of transactions expected to exceed five million dollars ($5,000,000) unless otherwise directed by the executive director.

(Indiana Gaming Commission; 68 IAC 1-4-5; filed Dec 11, 1995, 4:30 p.m.: 19 IR 1017; readopted filed Oct 15, 2001, 4:34 p.m.: 25 IR 898; readopted filed Sep 14, 2007, 1:40 p.m.: 20071003-IR-068070354RFA; filed Dec 6, 2012, 2:32 p.m.: 20130102-IR-068110786FRA; readopted filed Nov 26, 2013, 3:58 p.m.: 20131225-IR-068130354RFA)