Mich. Admin. Code R. 432.621f - Applicability of part; transfer of ownership interest; limitation

Rule 621f.

(1) An interest in a person applying for or holding an internet gaming operator license or internet gaming supplier license may only be transferred in accordance with this part.

(2) The following persons must provide notice to the board no later than 30 days after execution of the transfer:

(a) Except for an internet gaming platform provider, a person that transfers or acquires greater than a 5% interest in a person that has applied for or holds an internet gaming operator license or an internet gaming supplier license in this state.

(b) Except for an internet gaming platform provider, a person who, as a result of an acquisition, has acquired an interest totaling greater than 5% in a person that has applied for or holds an internet gaming operator license or an internet gaming supplier license in this state.

(3) Except as stated in subrules (5) and (6) of this rule, the following persons must provide notice to the board 30-days before execution of a transfer:

(a) A person that intends to transfer or acquire greater than a 5% interest in a person that has applied for or holds an internet gaming operator license or internet gaming platform provider in this state.

(b) A person who, as a result of an acquisition, will acquire an interest totaling greater than 5% in a person that has applied for or holds an internet gaming operator license or is an internet gaming platform provider in this state.

(4) The board must determine whether the person acquiring the interest is eligible and suitable under the standards set forth in the act and these rules, unless the board grants the person an institutional-investor exemption under these rules or under section 6(11) or 8(10) of the act, MCL 432.306 and 432.308. Once the board determines that the person acquiring the interest is eligible and suitable under the standards set in the act and these rules, the executive director may approve the transfer.

(5) A transfer of interest to an institutional investor that acquires or will have acquired, upon completion of the transfer, less than 25% of the equity securities of a person that applies for or holds an internet gaming operator license or internet gaming supplier license may occur without first receiving executive director approval if the equity securities are held for investment purposes only but is subject to other requirements of this part.

(6) A transfer of interest in an internet gaming operator or internet gaming supplier licensee may occur if the transfer is between persons the board has found eligible and suitable for licensure during the licensing period in which the transfer occurs. In those cases, approval of the transfer must be requested no later than 30 days after the transfer, and the executive director may decide the application.

(7) If approval of the transfer of interest is denied by the executive director or the person acquiring the interest is found unsuitable by the board, the transferee must divest itself of the interest within 30 days after the date of the order denying approval.

Notes

Mich. Admin. Code R. 432.621f

2020 MR 22, Eff. 12/2/2020