Iowa Admin. Code r. 491-14.2 - Application for fantasy sports contest service provider license and licensing
A
(1)
Licensing standards.
Standards which shall be considered when determining the qualifications of an
applicant shall include, but are not limited to, financial stability; business
ability and experience; good character and reputation of the applicant as well
as all directors, officers, partners, and employees and integrity of financial
backers. For the purposes of this rule, the term "applicant " includes each
member of the board of directors or other governing body of an applicant .
a. The commission shall not grant a license
to an applicant if there is substantial evidence that any of the following
apply:
(1) A license issued to the applicant
to conduct internet fantasy sports contests in another jurisdiction has been
revoked, or a request for a license to conduct internet fantasy sports contests
in another jurisdiction has been denied, by an entity licensing persons to
conduct such contests in that jurisdiction.
(2) The applicant has not demonstrated
financial responsibility sufficient to adequately meet the requirements of the
enterprise proposed.
(3) The
applicant does not adequately disclose the true owners of the enterprise
proposed.
(4) The applicant has
knowingly made a false statement of a material fact to the
commission .
(5) The applicant has
failed to meet a monetary obligation in connection with conducting an internet
fantasy sports contest .
(6) The
applicant is not of good repute and moral character or the applicant has pled
guilty to, or has been convicted of, a felony.
(7) Any member of the board of directors or
governing body of the applicant is not 21 years of age or older.
b. A person who knowingly makes a
false statement on the application is guilty of an aggravated
misdemeanor.
(2)
Application procedure. Application for an internet fantasy
sports contest service provider license shall be made to the commission on the
form prescribed and published by the commission . 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 .
b. The identity and date of birth of each
member of the board of directors or other governing body of the
applicant .
c. 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.
d. For ownership interests of less than 5
percent, the administrator may request a list of these interests. At a minimum,
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 subrule 14.2(1).
e. A list of employees of the aforementioned
who may be conducting business directly or indirectly on behalf of the
applicant in the state of Iowa.
f.
A bond or irrevocable letter of credit on behalf of the applicant or other
satisfactory evidence, as determined by the commission , of a safe and reliable
means of fulfilling the applicant 's obligations to customers and the state of
Iowa in an amount determined by the commission .
(3)
Investigative fee.
a. Advance payment. The department of public
safety may request payment of the investigative fee in advance as a condition
to beginning the investigation.
b.
Payment required. The administrator may withhold final action with respect to
any application until all investigative fees have been paid in full.
(4)
Application
fee. A bank or cashier's check shall be made payable to Iowa Racing
and Gaming Commission for $5,000.
(5)
Reporting of changes.
Any and all changes in the applicant 's legal structure, directors, officers, or
the respective ownership interests must be promptly filed with the
administrator .
(6)
Ineligibility. 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.
(7)
Disclosure. 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.
(8)
Public disclosure.
Disclosure is made for the benefit of the public, and all documents pertaining
to the ownership filed with the administrator shall be available for public
inspection.
(9)
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.
(10)
Requirements placed upon applicants and licensees. For
purposes of this chapter, the requirements placed upon an applicant shall
become a requirement to the licensee once a license has been granted. Every
license is granted upon the condition that the license holder shall accept,
observe, and enforce the rules and regulations of the commission . It is the
affirmative responsibility and continuing duty of each officer, director, and
employee of said license holder to comply with the requirements of the
application and conditions of license and to observe and enforce the rules. The
holding of a license is a privilege. The burden of proving qualifications for
the privilege to receive any license is on the licensee at all times. A
licensee must accept all risks of adverse public notice or public opinion,
embarrassment, criticism, or financial loss that may result from action with
respect to a license. Licensees further covenant and agree to hold harmless and
indemnify the Iowa racing and gaming commission from any claim arising from any
action of the commission in connection with that license.
Notes
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