Buffalo Wild Wings 2008 Annual Report Download - page 32

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• providing reliable record keeping and requiring the filing of periodic reports with the Nevada Gaming Authorities;
• the prevention of cheating and fraudulent practices; and
• providing a source of state and local revenues through taxation and licensing fees.
Any change in such laws, regulations and procedures could have an adverse effect on our gaming operations.
Our subsidiary company that owns and operates restaurants with gaming in Nevada is required to be licensed by the
Nevada Gaming Authorities. We have also been licensed or found suitable as shareholder, as relevant, of the subsidiary
gaming licensee.
Our licensed subsidiary may enter into an agreement with a slot route operator to conduct the gaming activities at the
Nevada restaurants the licensed subsidiary owns and operates. The slot route operator engaged by the licensed subsidiary
must be licensed by the Nevada Gaming Authorities.
We are required to be registered by the Nevada Commission as a publicly-traded corporation, and as such, we are
required to periodically submit detailed financial and operating reports to the Nevada Commission and furnish any other
information that the Nevada Commission may require. No person may become a stockholder or member of, or receive any
percentage of profits from the licensed subsidiaries without first obtaining licenses and approvals from the Nevada Gaming
Authorities. Additionally, local authorities have taken the position that they have the authority to approve all persons owning
or controlling the stock of any corporation controlling a gaming licensee. Buffalo Wild Wings and our subsidiary that owns
and operates gaming restaurants in Nevada have obtained from the Nevada Gaming Authorities the various registrations,
approvals, permits and licenses required in order to engage in gaming activities in Nevada.
The Nevada Gaming Authorities may investigate any individual who has a material relationship to, or material
involvement with, Buffalo Wild Wings or the licensed subsidiary to determine whether such individual is suitable or should
be licensed as a business associate of a gaming licensee. Officers, directors, and certain key employees of the licensed
subsidiary must file applications with the Nevada Gaming Authorities and may be required to be licensed by the Nevada
Gaming Authorities. Our officers, directors, and key employees who are actively and directly involved in the gaming
activities of the licensed subsidiary may be required to be licensed or found suitable by the Nevada Gaming Authorities. The
Nevada Gaming Authorities may deny an application for licensing or a finding of suitability for any cause they deem
reasonable. A finding of suitability is comparable to licensing, and both require submission of detailed personal and financial
information followed by a thorough investigation. The applicant for licensing or a finding of suitability, or the gaming
licensee by which the applicant is employed or for whom the applicant serves, must pay all the costs of the investigation.
Changes in licensed positions must be reported to the Nevada Gaming Authorities, and in addition to their authority to deny
an application for a finding of suitability or licensure, the Nevada Gaming Authorities have jurisdiction to disapprove a
change in a corporate position.
If the Nevada Gaming Authorities were to find an officer, director, or key employee unsuitable for licensing or to
continue having a relationship with us or the licensed subsidiary, Buffalo Wild Wings or the licensed subsidiary would have
to sever all relationships with that person. In addition, the Nevada Commission may require us or the licensed subsidiary to
terminate the employment of any person who refuses to file appropriate applications. Determinations of suitability or of
questions pertaining to licensing are not subject to judicial review in Nevada.
We are required to submit detailed financial and operating reports to the Nevada Commission. Substantially all of
Buffalo Wild Wings and the licensed subsidiary’ s material loans, leases, sales of securities, and similar financing transactions
must be reported to or approved by the Nevada Commission.
If the Nevada Commission determined that we or the licensed subsidiary violated the Nevada Act, it could limit,
condition, suspend, or revoke, subject to compliance with certain statutory and regulatory procedures, our gaming license and
those of the licensed subsidiary. In addition, we and the licensed subsidiary and the persons involved could be subject to
substantial fines for each separate violation of the Nevada Act at the discretion of the Nevada Commission. Further, a
supervisor could be appointed by the Nevada Commission to operate the gaming establishments and, under certain
circumstances, earnings generated during the supervisor’ s appointment (except for the reasonable rental value of the gaming
establishments) could be forfeited to the State of Nevada. Limitation, conditioning, or suspension of any gaming license or
the appointment of a supervisor could (and revocation of any gaming license would) materially adversely affect our gaming
operations.
Any beneficial holder of our voting securities, regardless of the number of shares owned, may be required to file an
application, be investigated, and have his or her suitability as a beneficial holder of the voting securities determined if the