Principal (Gaming Law) Law and Legal Definition
The term 'principal' is used to refer to a person who has a leading role in a gaming establishment. S/he has direct beneficial interest in the company by way of ownership or similar other interest.
The following is an example of a state statute (Pennsylvania) defining the term 'principal' :
According to 4 Pa.C.S. § 1103, 'principal' is “An officer; director; person who directly holds a beneficial interest in or ownership of the securities of an applicant or licensee; person who has a controlling interest in an applicant or licensee, or has the ability to elect a majority of the board of directors of a licensee or to otherwise control a licensee; lender or other licensed financial institution of an applicant or licensee, other than a bank or lending institution which makes a loan or holds a mortgage or other lien acquired in the ordinary course of business; underwriter of an applicant or licensee; or other person or employee of an applicant, slot machine licensee, manufacturer licensee or supplier licensee deemed to be a principal by the Pennsylvania Gaming Control Board”.
