Subpart 1.
License required.
No person shall offer or accept advance deposit wagers from
Minnesota residents after November 1, 2016, unless the person holds a license
in good standing as an advance deposit wagering provider under chapter 7877 and
complies with all requirements of this chapter and applicable laws and
rules.
Subp. 2.
Information required at time of application.
In lieu of the information required in part 7877.0110, an
applicant for a Class C license to provide advance deposit wagering shall
provide the following information to the commission at the time of
application:
A. name and address of
applicant, including physical address and website or e-mail address;
B. name, title, and contact information of an
individual authorized to communicate with the commission on matters relating to
the application and license;
C. if
an owner is a corporation, partnership, or other business organization, the
date and place of its incorporation or organizational filing and an
organization chart showing all related business entities;
D. executive summary of current business
plan;
E. details of the applicants
corporate structure and copies of current business organizational filings and
certificate of good standing in jurisdiction where the entity is registered or
incorporated;
F. evidence of
approval to conduct advance deposit wagering from the appropriate regulatory
authority in the state where the principal office of the advance deposit
wagering provider is located;
G.
the names, addresses, and dates of birth, and fingerprints if required by the
commission, of all key employees and beneficial owners;
H. a complete list of licenses held by the
applicant with other racing jurisdictions;
I. list of all criminal, civil, and
regulatory actions where the applicant, any key employee or beneficial owner,
or any business that had a key employee or beneficial owner in common with the
applicant, was the subject of the action;
J. details of racing or gaming-related
licenses that have been denied, suspended, or revoked by any racing or gaming
jurisdiction, including licenses where any key employee or beneficial owner of
the applicant was a key employee or beneficial owner of the entity whose
license was denied, suspended, or revoked;
K. written agreements between the applicant
and Minnesota licensed racetracks that meet the requirements of Minnesota
Statutes, section
240.131,
subdivision 3, including written documentation of approval by the applicable
horsepersons groups;
L. copies or
summaries of all contracts with Minnesota licensed racetracks that are not
related to advance deposit wagering, and an assurance that the commission will
be notified of any other agreements or understandings between the licensed
racetrack and the applicant, whether oral or written;
M. surety bond or other form of financial
security as required by Minnesota statutes or rules;
N. a description of the security measures
used to protect account holder information and the integrity of the wagering
process;
O. total wagers accepted
from Minnesota residents during the two years preceding the application, broken
down by zip code if possible;
P.
consent to submit to the jurisdiction of Minnesota courts and agencies in any
action relating to the subject matter of the license, application, or business
with a Class A or Class B license holder;
Q. tax identification number or Social
Security number;
R. a description of
the applicants anti-money-laundering policies and procedures; and
S. any other information the commission
determines is reasonably necessary to establish the applicants suitability in
compliance with applicable laws or rules for licensure and advance deposit
wagering, and to fulfill the commissions duties under Minnesota Statutes,
chapter 240.
Subp. 3.
Granting of license.
If an applicant for a Class C license to conduct advance
deposit wagering submits a complete application that meets all criteria in
applicable laws and rules, the commission shall undertake a review of the
application and render a written determination on the application consistent
with all applicable requirements.
Subp.
4.
Changes.
The commission may require changes or additions to the
application, or changes to the proposed plan of operation, as a condition of
granting a license if reasonably necessary to ensure compliance with applicable
laws or rules and to assist the commission in fulfilling its duties under
Minnesota Statutes, chapter 240.
Subp.
5.
Notification.
After a license is granted, the licensee must notify the
commission in writing of any material changes to the information provided
during the application process.
Subp.
6.
Denial of license.
The commission may deny a license to conduct advance deposit
wagering if any of the following conditions exist:
A. the applicant does not submit a complete
application or supply all additional information requested by the
commission;
B. the commission
determines the applicant has intentionally withheld relevant information or
provided false or misleading information in connection with the
application;
C. the commission
determines the bond or other evidence of financial responsibility provided by
the applicant is inadequate to ensure the protection of Minnesota account
holders and racetracks;
D. the
applicant, or any entity with a key employee or owner in common with the
applicant, has had a license revoked or denied in Minnesota or another
jurisdiction;
E. the key employees
or owners cannot sign the affidavit required in Minnesota Statutes, section
240.08,
subdivision 2; or
F. the commission
determines that licensure would not be in the public interest or would
negatively impact the integrity of racing in Minnesota.
Subp. 7.
License not
transferable.
A license to conduct advance deposit wagering shall not be
transferable. An advance deposit wagering provider shall inform the commission
any time there is a change in its controlling interest or when any key employee
or beneficial owner listed on its original application is no longer a key
employee or beneficial owner.
