50-27-87.1. Unfair methods of competition; unfair and deceptive acts.

The following acts or practices are deemed unfair methods of competition and unfair and deceptive acts under this article:#

1. (1)

   Until the corporation certifies that the Class B accounting terminal authorized by Code Section 50-27-101 is implemented, a master licensee, location owner, or location operator retaining more than 50 percent of the net monthly proceeds for the operation of a Class B machine;#

2. (2)

   A master licensee or owner entering into an agreement with a manufacturer or distributor:#

   1. (A)

      That grants the owner or master licensee exclusive rights to own, maintain, place, or lease a type, model, or brand of bona fide coin operated amusement machine in this state; or#

   2. (B)

      For the lease of a bona fide coin operated amusement machine, its parts, or software or hardware;#

3. (3)

   A location owner or location operator asking, demanding, or accepting anything of value, including but not limited to a loan or financing arrangement, gift, procurement fee, lease payments, revenue sharing, or payment of license fees or permit fees from a manufacturer, distributor, or master licensee, as an incentive, inducement, or any other consideration to locate bona fide coin operated amusement machines in that establishment. A location owner that violates this subsection shall have all of the location owner’s state business licenses revoked for a period of one to five years per incident. The location owner also shall be fined up to $50,000.00 per incident and required to repay any incentive fees or other payments received from the operator; and#

4. (4)

   A manufacturer, distributor, operator, master licensee, or individual providing anything of value, including but not limited to a loan or financing arrangement, gift, procurement fee, lease payments, revenue sharing, or payment of license fees or permit fees to a location owner or location operator, as an incentive, inducement, or any other consideration to locate bona fide coin operated amusement machines in that establishment. A manufacturer, distributor, operator, master licensee, or individual who violates this subsection shall have all of his or her state business licenses revoked for a period of one to five years per incident. The individual, manufacturer, distributor, owner, or master licensee also shall be fined up to $50,000.00 per incident.#

The provision by the master licensee of non-fixtures on or within a building in which there is a licensed location at which bona fide coin operated amusement machines are located to a location owner or location operator with whom the master licensee has a contract for the placement of Class B machines shall not be deemed to be an unfair method of competition or unfair or deceptive act under this Code section; provided, however, that such non-fixtures shall:#

1. (1)

   Be limited to branded posters and signs, digital video signage, rugs, seating, removable partition walls, and wall coverings, unless additional non-fixtures are authorized by the corporation by the adoption of rules and regulations;#

2. (2)

   Be exclusively for the facilitation and promotion of the play of Class B machines and the redemption of approved gift cards;#

3. (3)

   Remain the property of the master licensee; and#

4. (4)

   Be removed not later than when the Class B machines of the master licensee are removed from the location.#