Iowa Admin. Code r. 491-13.7 - Licensing

Current through Register Vol. 44, No. 20, April 6, 2022

(1) Application and payment of fee. The commission shall, upon payment of an initial license fee of $45,000 and submission of an application consistent with the requirements of Iowa Code section 99F.6, issue a license to conduct sports wagering to a facility.
(2) Application procedure for a facility. Application for a license for a facility to conduct sports wagering shall be made to the commission. In addition to the application, the following must be completed and presented when the application is filed:
a. Name of the entity to be licensed by the commission to conduct sports wagering operations in Iowa.
b. Disclosure of agreements with entities to manage or operate sports wagering with or on behalf of the facility.
c. Disclosure of operating agreements for up to two, or three if authorized by the commission, individually branded internet sites to conduct advance deposit wagering for the facility.
d. Compliance with Iowa Code section 99F.6(4) "a"(2) and (3) requirements for qualified sponsoring organizations or horse racing purses.
e. A bond or irrevocable letter of credit on behalf of the facility in an amount to be determined by the commission.
f. A bank check, cashier's check, or wire transfer made payable to Iowa Racing and Gaming Commission for $45,000 for an initial license or $10,000 for a renewal license.
(3) Application procedure for an advance deposit sports wagering operator. Application for a license for an advance deposit sports wagering operator with an agreement with a facility shall be made to the commission for approval by the administrator. In addition to the application, the following must be completed and presented when the application is filed:
a. Disclosure of ownership interest, directors, or officers of applicant.
(1) An applicant or licensee shall notify the administrator of the identity of each director, corporate officer, owner, partner, joint venture participant, trustee, or any other person who has any beneficial interest of 5 percent or more, direct or indirect, in the business entity. For any of the above, as required by the administrator, the applicant or licensee shall submit background information on forms supplied by the division of criminal investigation and any other information the administrator may require.

For purposes of this rule, the term "beneficial interest" includes all direct and indirect forms of ownership or control, voting power, or investment power held through any contract, lien, lease, partnership, stockholding, syndication, joint venture, understanding, relationship (including family relationship), present or reversionary right, title or interest, or otherwise.

(2) For ownership interests of less than 5 percent, the administrator may request a list of these interests. The list shall include names, percentages owned, addresses, social security numbers, and dates of birth. The administrator may request the same information required of those individuals in subparagraph 13.7(3)"a "(1) above.
b. Investigative fees.
(1) Advance payment. The department of public safety may request payment of the investigative fee in advance as a condition to beginning investigation.
(2) Payment required. The administrator may withhold final action with respect to any application until all investigative fees have been paid in full.
c. A copy of each of the following:
(1) List of employees of the aforementioned who may have contact with persons within the state of Iowa.
(2) Agreement with facility to operate or manage the advance deposit sports wagering operation.
d. Any and all changes in the applicant's legal structure, directors, officers, or the respective ownership interests must be promptly filed with the administrator.
e. The administrator may deny, suspend, or revoke the license of an applicant or licensee in which a director, corporate officer, or holder of a beneficial interest includes or involves any person or entity which would be, or is, ineligible in any respect, such as through want of character, moral fitness, financial responsibility, or professional qualifications, or due to failure to meet other criteria employed by the administrator, to participate in gaming regardless of the percentage of ownership interest involved. The administrator may order the ineligible person or entity to terminate all relationships with the licensee or applicant, including divestiture of any ownership interest or beneficial interest at acquisition cost.
f. Disclosure of the full nature and extent of all beneficial interests may be requested by the administrator and shall include the names of individuals and entities, the nature of their relationships, and the exact nature of their beneficial interest.
g. Public disclosure is made for the benefit of the public, and documents pertaining to the ownership filed with the administrator shall be available for public inspection in accordance with 491-Chapter 3.
(4) Supplementary information. Each applicant shall promptly furnish the administrator with all additional information pertaining to the application or the applicant which the administrator may require. Failure to supply the requested information within five days after the request has been received by the applicant shall constitute grounds for delaying consideration of the application.
(5) Temporary license certificates.
a. A temporary license certificate may be issued at the discretion of the administrator.
b. Any temporary license certificate issued at the discretion of the administrator shall be valid for a maximum of 120 calendar days from the date of issue. Failure to obtain a permanent license within the designated time may result in revocation of license eligibility, fine, or suspension.
(6) Withdrawal of application. A written notice of withdrawal of application may be filed by an applicant at any time prior to final action. No application shall be permitted to be withdrawn unless the administrator determines the withdrawal to be in the public interest. No fee or other payment relating to any application shall become refundable by reason of withdrawal of the application.
(7) Record keeping.
a. Record storage required. Licensees and advance deposit sports wagering operators shall maintain adequate records of business operations, which shall be made available to the administrator upon request. These records shall include:
(1) All correspondence with the administrator and other governmental agencies on the local, state, and federal level.
(2) All correspondence between the licensee and advance deposit sports wagering operators and any of their customers who are applicants or licensees under Iowa Code chapter 99F.
(3) A personnel file on each employee of the licensee and advance deposit sports wagering operator, including sales representatives.
(4) Financial records of all transactions with facilities and all other licensees and advance deposit sports wagering operators under these rules.
b. Record retention. Records other than those listed in subrule 13.2(8) shall be retained as required by 491-subrule 5.4(14).
(8) Violation of laws or regulations. Violation of any provision of any laws of the state or of the United States of America or of any rules of the commission may constitute an unsuitable method of operation, subjecting the licensee to limiting, conditioning, restricting, revoking or suspending the license, or fining the licensee or advance deposit sports wagering operator, or any combination of the above. The commission has the discretion to suspend mobile gaming operations of its licensees by written order if necessary.

Notes

Iowa Admin. Code r. 491-13.7
Adopted by IAB August 28, 2019/Volume XLII, Number 5, effective 7/31/2019 Amended by IAB April 8, 2020/Volume XLII, Number 21, effective 5/13/2020 Amended by IAB February 10, 2021/Volume XLIII, Number 17, effective 3/17/2021

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