Mich. Admin. Code R. 432.745 - Authorized and prohibited events and wager types

Rule 745.

(1) Before any sports betting operator or internet sports betting platform provider may accept internet sports betting wagers on an event category or internet sports betting wagers of a particular wager type, the event category or wager type must be approved by the board. Unless already approved by the board, a request for approval must be submitted by a sports betting operator or internet sports betting platform provider in the form and manner prescribed by the board, subject to the following:
(a) A request for approval of an event category involving athletic events must include, at a minimum, the name of the sports governing body and, to the extent known by the sports betting operator or internet sports betting platform provider, a description of its policies and procedures regarding event integrity.
(b) A request for approval of an event category involving events other than athletic events must include:
(i) A full description of the event category and the manner in which internet sports betting wagers would be placed and winning internet sports betting wagers would be determined.
(ii) A full description of any technology that would be utilized to offer the event category.
(iii) Assurance that the event category meets the requirements of subrule (8) of this rule.
(iv) Any rules or voting procedures related to the event category.
(v) Any other information the board considers necessary.
(2) The board may require an appropriate test or experimental period, under such terms and conditions the board considers appropriate, before granting final approval to an event category or wager type. The board may subject any technology that would be used to offer an event category or wager type to such testing, investigation, and approval as it considers appropriate.
(3) A sports governing body or other oversight body may notify the board that it desires to restrict, limit, or exclude wagering on any event category it governs by providing notice in the form and manner prescribed by the board.
(4) The board may grant, deny, limit, restrict, or condition a request made pursuant to this rule for any cause the board considers reasonable. The board may issue an order revoking, suspending, or modifying any approval of an event category or wager type granted under this rule for any cause the board considers reasonable.
(5) The board shall notify all sports betting operators and internet sports betting platform providers of any additions, deletions, or changes regarding authorized event categories and authorized wager types, which may include publication of a list of authorized event categories and wager types on the boards website.
(6) A sports betting operator or internet sports betting platform provider must submit to the board a catalogue of the authorized event categories and authorized wager types it intends to offer authorized participants. The catalogue and any subsequent changes must be submitted prior to implementation as directed by the board. The board reserves the right to prohibit the acceptance of any internet sports betting wagers and may order the cancellation of internet sports betting wagers and require refunds on any event category, event, or wager type for which wagering would be contrary to the public policies of the state.
(7) A sports betting operator or internet sports betting platform provider may not accept internet sports betting wagers on any of the following:
(a) Horse races if the internet sports betting on those races is pari-mutuel.
(b) Any event played by individuals that are at the high school level or below unless the majority of participants in the event are 18 years of age or older.
(c) Roulette, poker, blackjack, a card game, a dice game, or any other game or contest typically offered in a casino other than sports betting.
(d) A fantasy contest.
(e) The injury of a participant in an event.
(f) Any event category, event, or wager type prohibited by the board or by state or federal law.
(g) Any event category or wager type not approved by the board.
(8) A sports betting operator or internet sports betting platform provider must only accept internet sports betting wagers on events and wager types for which:
(a) The event can be effectively supervised by a sports governing body or other oversight body.
(b) There are integrity safeguards in place.
(c) The outcome can be documented and verified.
(d) The outcome can be generated by a reliable and independent process.
(e) The outcome is not affected by any wager placed.
(f) The event and acceptance of the wager type are conducted in conformity with all applicable laws.
(g) Wagering on the event and acceptance of the wager type are consistent with the public policy of this state.
(9) If it is determined that a sports betting operator or internet sports betting platform provider has offered an unauthorized or prohibited event category, event, or wager type, the sports betting operator or internet sports betting platform provider must immediately cancel and refund all internet sports betting wagers associated with the unauthorized or prohibited event category, event, or wager type. The sports betting operator or internet sports betting platform provider must notify the board promptly after cancelling and refunding the internet sports betting wagers.
(10) A sports betting operator or internet sports betting platform provider must not knowingly accept an internet sports betting wager on an event or wager type whose outcome has already been determined and is publicly known.
(11) The board may use any information it considers appropriate, including, but not limited to, information received from a sports governing body, to determine whether to authorize or prohibit wagering on a particular event or a particular wager type.
(12) A sports governing body may request internet sports betting wagering information or may request the board to prohibit internet sports betting wagering on a particular event or a particular wager type. The request must be submitted in the form and manner prescribed by the board and must include all of the following:
(a) The identity of the sports governing body and contact information for at least one specific individual who will be the primary point of contact for questions related to the request.
(b) A description of the internet sports betting wagering information, event, or wager type that is the subject of the request.
(c) Information explaining why granting the request is necessary to protect the integrity of the event, or public confidence in the integrity of the event, that is the subject of the request. This may include information regarding any credible threat to the integrity of the event that is beyond the control of the sports governing body to preemptively remedy or mitigate.
(d) Any other information required by the board.
(13) To ensure proper consideration, the request should be sent to the board at least 10 days before the particular event. At any time, however, a sports governing body should report information to the board if it involves allegations of match-fixing, the manipulation of an event, misuse of inside information, or other prohibited activity.
(14) On receipt of a complete request from a sports governing body under subrule (12) of this rule, the board shall notify all sports betting operators in writing. All sports betting operators must be given an opportunity to respond to the request. The notification must include the date by which written responses must be submitted to the board.
(15) The board shall promptly review the request, any responses, and any other available information and shall decide on the request before the start of the event, if feasible, or as expeditiously as possible. In making its determination, the board may consult with independent integrity monitoring providers and any other jurisdictions it considers appropriate. The board may grant the request, in its sole discretion, if it determines that granting the request is necessary to protect the integrity of the event, or public confidence in the integrity of the event, that is the subject of the request. The board shall notify, in writing, the sports governing body and all sports betting operators of its decision.
(16) On request of a sports governing body or sports betting operator, the board may reconsider its decision if there is a material change in the circumstances related to the original request.
(17) A sports betting operator or internet sports betting platform provider may not place or accept a layoff wager unless the board determines that layoff wagers may be placed and accepted under the act. If layoff wagers are permitted, the sports betting operator or internet sports betting platform provider placing a layoff wager must disclose its identity to the sports betting operator or internet sports betting platform provider accepting the layoff wager. A sports betting operator or internet sports betting platform provider may decline to accept a layoff wager in its sole discretion. Layoff wagers must be placed and accepted in accordance with any other procedures or conditions prescribed by the board.

Notes

Mich. Admin. Code R. 432.745
2020 MR 22, Eff. 12/2/2020

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