71 IAC 9-2.2-3 - Application submission and reimbursement costs

Authority: IC 4-31-7.5-11

Affected: IC 4-31-7.5-13; IC 4-31-7.5-14

Sec. 3.

(a) A secondary pari-mutuel organization applying for a license under this article must submit a complete application on a form prescribed by the commission that contains the following information:

(1) The applicant's legal name.

(2) The location of the applicant's principal office.

(3) The names, addresses, and dates of birth of all shareholders, directors, officers, and other persons owning or controlling an interest in the SPMO with the degree of ownership or type of interest shown. Corporations, partnerships, or other legal entities, which own or control a beneficial interest in the applicant, either directly or through other corporations or legal entities, shall similarly file with the application a list showing the names, addresses, and dates of birth of all officers, directors, stockholders, and other persons owning or controlling a beneficial interest in the legal entities, with the degree of ownership or type of interest pertaining to the ownership or interest.

(4) If the applicant is a corporation ultimately owned by a not-for-profit entity without any shareholders, or is a publicly traded corporation, the information required in subdivision (3) shall be required from the directors of the membership organization, or the directors and officers of the publicly traded corporation, in lieu of the shareholders.

(5) A copy of the organizational documents of the applicant.

(6) The names of the racetracks the applicant, or its agent, has contracts or other agreements with that allow the applicant to provide advance deposit wagering.

(7) Financial information that demonstrates that the SPMO has the financial resources to operate advance deposit wagering and provides a detailed budget that shows anticipated revenue, expenditures, and cash flows by month, projected for the term of the license sought.

(8) Written evidence of the approval to conduct advance deposit wagering that the organization has received from the appropriate regulatory authority in each state where the SPMO is licensed.

(9) A copy of a proposed contract executed by the applicant and each permit holder to satisfy the requirements of section 6 of this rule.

(10) A copy of the bond, irrevocable letter of credit, or other undertaking referenced in section 5 of this rule.

(11) A plan of operation including all standard operating procedures related to wagers, wagering accounts, security of wagering systems, security of confidential information, and policies for ensuring no underage persons engage in wagering and account payouts.

(12) A list of any affiliates or potential affiliates of the SPMO. The list must contain the following information about any affiliates or potential affiliates, and the SPMO and any affiliates must meet the following guidelines:

(A) The name and web address of the affiliate.

(B) The name and web address of the affiliate's site where advance deposit wagering will occur, if different from subdivision (A).

(C) The person or companies involved in the affiliate agreement.

(D) The location of the affiliate's principal office.

(E) The names, addresses, and dates of birth of all shareholders, directors, officers, and other persons owning or controlling an interest in the affiliate with the degree of ownership or type of interest shown. Corporations, partnerships, or other legal entities, which own or control a beneficial interest in the affiliate, either directly or through other corporations or legal entities, shall similarly file with the application a list showing the names, addresses, and dates of birth of all officers, directors, stockholders, and other persons owning or controlling a beneficial interest in the legal entities, with the degree of ownership or type of interest pertaining to the ownership or interest.

(F) If the affiliate is a corporation ultimately owned by a not-for-profit entity without any shareholders, or is a publicly traded corporation, the information required in subdivision (E) shall be required from the directors of the membership organization, or the directors and officers of the publicly traded corporation, in lieu of the shareholders.

(G) A copy of the organizational documents of the affiliate.

(H) That the affiliate site agreement is clearly noted as either a marketing or service agreement.

(I) Account holders using the affiliate site will be account holders of the licensed SPMO, subject to the same verification process and account operational procedures as any other account holder of the SPMO licensee.

(J) The wagers placed through the affiliate site will be processed through equipment owned and operated by the licensed SPMO.

(K) The licensed SPMO will incorporate all advance deposit wagering of the affiliate site into the source market fee of the licensed SPMO.

(L) The affiliate site will be branded in some form to indicate to the account holder that they will be wagering through systems operated by the licensed SPMO. The commission reserves the right to approve or deny any affiliate sites. Additionally, the commission may determine a total monthly advance deposit wagering amount at which an affiliate site may need to apply for its own SPMO license.

(13) A detailed budget showing on a monthly basis anticipated revenue, expenditures, and cash flows from the SPMO's operation during the initial license period.

(14) A proposed version of the advance deposit wagering terms and agreement to be provided to account holders.

(15) A nonrefundable application fee of five thousand dollars ($5,000).

(16) Any other information required by the commission.

(b) The commission may retain professional services, conduct investigations, or request additional information from the applicant for a license as it deems appropriate in determining whether to grant a license to an SPMO.

(c) The commission may require an applicant to pay any costs incurred by the commission for background checks, investigation, and professional fees related to the review or consideration, or both, of the license application that exceed five thousand dollars ($5,000).

Notes

71 IAC 9-2.2-3

Indiana Horse Racing Commission; 71 IAC 9-2.2-3; emergency rule filed Aug 29, 2018, 11:12 a.m.: 20180905-IR- 071180370ERA; emergency rule filed 12/5/2019, 1:56 p.m.: 20191211-IR-071190646ERA Errata filed 8/11/2022, 8:31 a.m.: 20220817-IR-071220238ACA Readopted filed 7/6/2023, 1:50 p.m.: 20230802-IR-071230371RFA

NOTE: Agency cited as 71 IAC 9-2.1-3, which was renumbered by the Publisher as 71 IAC 9-2.2-3.