29 DE Code § 4864. (2021)
2021 Delaware Code|Title 29 - State Government|Chapter 48. Lotteries|Subchapter III. Interactive Fantasy Contests|§ 4864. Scope of registration review.

§ 4864. Scope of registration review. (a) The Director shall prescribe the initial form of the application for registration which shall include the following requirements:  (1) The full name and principal address of the operator (2) If a corporation, the name of the state in which incorporated and the full names and addresses of any partner, officer, director, shareholders holding 10% or more equity, and ultimate equitable owners. (3) If a business entity other than a corporation, the full names and addresses of the principals, partners, members, and other types of equity holders holding 5% or more equity, and ultimate equitable owners. (4) Whether such corporation or entity files information and reports with the United States Securities and Exchange Commission as required by § 13 of the Securities Exchange Act of 1934 (15 U.S.C. § 78m); or whether the securities of the corporation or entity are regularly traded on an established securities market in the United States. (5) The type and estimated number of contests to be conducted annually. (6) A statement of the assets and liabilities of the operator. (7) Criminal record. — a. Information regarding the criminal record, if any, of the following individuals, if those individuals are involved in the day-to-day management of interactive fantasy sports contests or operations, and as applicable to the entity's business structure:  1. Each partner of a partnership holding 10% or more of the partnership; 2. Each member of a limited liability company holding 10% or more of the LLC; 3. Each director and officer of a nonpublicly held corporation; 4. Each director and officer of a publicly held corporation; 5. Each stockholder holding 10% or more of a corporation; and 6. Ultimate equitable owners. b. Individuals identified in paragraph (a)(7)a. of this section shall have a duty to disclose on the application for registration whether they have been convicted of a crime, other than traffic violations and convictions that have been expunged, and provide the nature of the crime, the date and place of the conviction, and the legal disposition of the case. c. Fingerprinting procedure required. — 1. Individuals identified in paragraph (a)(7)a. of this section shall be required to submit fingerprints and other necessary information in order to obtain the following:  A. A report of the individual's entire criminal history record from the State Bureau of Identification or a statement from the State Bureau of Identification that the State Bureau of Identification Central Repository contains no such information relating to that individual; and B. A report of the individual's entire federal criminal history record pursuant to the Federal Bureau of Investigation appropriation of Title II of Public Law 92-544. The State Bureau of Identification shall be the intermediary for the purposes of this section and the Division shall be the screening point for the receipt of said federal criminal history records. 2. All information obtained pursuant to this subsection shall be forwarded to the Division, which shall access the information and make a determination to approve or deny an application for registration. A copy of all information forwarded to the Division shall be provided to the individual. The individual shall have an opportunity to respond in writing to the Division regarding any information obtained pursuant to paragraph (a)(7)a. of this section prior to a determination of suitability for registration. Information obtained under this subsection is confidential and may only be disclosed to the Director and designated personnel of the Division. The State Bureau of Identification may release any subsequent criminal history to the Division. 3. An individual whose criminal record is required pursuant to paragraph (a)(7)a. of this section who has submitted to a criminal background check in this or any other state within the previous 12 months shall not be required to submit to another criminal background check if the individual submits:  A. The results of such previous criminal background check, including any previous federal criminal background check; and B. A reference from the individual's most recent employer, if any, covering the previous 12 months. 4. Individuals identified in paragraph (a)(7)a. of this section of those operators who received a conditional registration or registration to administer, manage or otherwise make available an interactive fantasy sports platform to offer interactive fantasy sports contests to persons located in Delaware on or before August 25, 2017, shall submit by January 1, 2019, at the registrant's expense, fingerprints and other necessary information in order to obtain a criminal background pursuant to this paragraph (a)(7).  (b) The Director may require the full names and addresses of the officers and directors of any creditor of the operator, and of those stockholders, members, partners, or other equity holders who hold more than 10% of the stock, interests, or equity of the creditor. (c) The Director may impose a monetary penalty, not to exceed $1,000 per violation, deny any application for registration, or suspend, refuse to renew, or revoke any existing registration issued pursuant to this subchapter, upon the finding that the operator or registrant, or any individual identified in paragraph (a)(7)a. of this section has done any of the following:  (1) Knowingly made a false statement of material fact or has deliberately failed to disclose any information required by the Director. (2) Had a registration or license to offer or conduct contests denied, suspended, or revoked in any other state or country for just cause. (3) Legally defaulted in the payment of any obligation or debt due to the federal government, or any state or political subdivision. (4) Within 10 years of the date of the application for registration, has been:  a. Found guilty of any illegal, corrupt, or fraudulent act, practice, or conduct in connection with any interactive fantasy sport contest in this or any other state; or b. Convicted of a felony, or any criminal offense involving dishonesty or breach of trust; (5) At any time, knowingly failed to comply with any requirement of this chapter, any regulations promulgated by the Director, or any other additional requirements of the Director. (d) The Director may revoke a registration if the Director finds that facts not known at the time the Director considered the application that if know, would have justified the denial of the application. (e) When the Director denies, revokes or fails to renew an application, the operator shall be afforded notice and the right to be heard and offer proof in opposition to such determination in accordance with the regulations of the Director. (f) All information and data required by the Director to be furnished in the application or investigative process, or which otherwise may be obtained by the Division, pertaining to an applicant's criminal record, financial record, and background, including an application form and registration investigation report, shall be considered confidential, shall not be public records subject to Chapter 100 of this title, and shall not be revealed in whole or in part except in the ordinary administration of the chapter, or upon the lawful order of a court of competent jurisdiction, or with the approval of the Attorney General, to a duly authorized law-enforcement agency. The Director may enter agreements with other law-enforcement agencies or other interactive fantasy sports contest regulatory agencies for the sharing of confidential information. Any person who violates this subsection (f) shall be guilty of a class A misdemeanor.  (g) All information and data required by the Director to be furnished, or which otherwise may be obtained by the Division, relative to internal controls of an operator or registrant shall be considered confidential, shall not be public records subject to Chapter 100 of this title, and shall not be revealed in whole or in part except in the ordinary administration of the chapter, or upon the lawful order of a court of competent jurisdiction, or with the approval of the Attorney General, to a duly authorized law-enforcement agency. Any person who violates this subsection (g) shall be guilty of a class A misdemeanor.  (h) The Director may issue a temporary registration for good cause and upon a finding that the issuance of a temporary registration is necessary to allow for the efficient operation of daily interactive fantasy sports. Temporary registration shall remain in effect for no more than 12 months from the date of issuance. 81 Del. Laws, c. 105, §  1;  81 Del. Laws, c. 371, § 1;  82 Del. Laws, c. 69, § 1;