LA Rev Stat § 47:9094 (2021)
2021 Louisiana Laws|Revised Statutes|Title 47 - Revenue and Taxation|§9094. Suitability; sports wagering platform providers

RS 9094 - Suitability; sports wagering platform providers  A. No person shall be eligible to obtain a sports wagering platform provider permit pursuant to this Subtitle unless the applicant has demonstrated by clear and convincing evidence to the corporation that he is suitable. For the purposes of this Subtitle, "suitable" means the applicant or permittee is:  (1) A person of good character, honesty, and integrity.  (2) A person whose prior activities, criminal record, if any, reputation, habits, and associations do not pose a threat to the public interest of this state or to the effective regulation and control of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gaming or carrying on of the business and financial arrangements incidental thereto.  (3) Capable of and likely to conduct the activities for which the applicant or permittee is approved or permitted pursuant to the provisions of this Subtitle.  (4) Not disqualified pursuant to the provisions of Subsection B of this Section.  B. The corporation shall not grant approval or a permit pursuant to the provisions of this Subtitle to any person who is disqualified on the basis of the following criteria:  (1) The conviction or a plea of guilty or nolo contendere by the applicant or any person required to be suitable under the provisions of this Subtitle for any of the following:  (a) Any offense punishable by imprisonment of more than one year.  (b) Theft or attempted theft, illegal possession of stolen things, or any offense or attempt involving the misappropriation of property or funds.  (c) Any offense involving fraud or attempted fraud, false statements or declarations.  (d) Gambling as defined by the laws or ordinances of any municipality, any parish or county, any state, or of the United States.  (e) A crime of violence as defined in R.S. 14:2(B).  (2) A current prosecution or pending charge against the person in any jurisdiction for any offense listed in Paragraph (1) of this Subsection.  (3) The person is not current in filing all applicable tax returns and in the payment of all taxes, penalties, and interest owed to the state of Louisiana or any political subdivision of Louisiana, excluding items under formal appeal.  (4) The failure to provide information and documentation to reveal any fact material to a suitability determination, or the supplying of information which is untrue or misleading as to a material fact pertaining to the suitability criteria.  C.(1) In the awarding of a permit pursuant to the provisions of this Subtitle, a conviction or plea of guilty or nolo contendere by the applicant shall not constitute an automatic disqualification as otherwise required pursuant to the provisions of Subparagraphs (B)(1)(a) through (d) of this Section if either of the following are true:  (a) Ten or more years have elapsed between the date of application and the successful completion or service of any sentence, deferred adjudication, or period of probation or parole.  (b) Five or more years have elapsed between the date of application and the successful completion of any sentence, deferred adjudication, or period of probation or parole and the conviction for an offense defined in Subparagraph (B)(1)(b) of this Section was a misdemeanor offense.  (2) The provisions of Paragraph (1) of this Subsection shall not apply to any person convicted of a crime of violence as defined in R.S. 14:2(B).  (3) Notwithstanding any provision of law to the contrary, the corporation may consider the seriousness and circumstances of any offense, arrest, or conviction in determining suitability in accordance with Subsection A of this Section.  D. An applicant who is not disqualified as a result of Subsection B of this Section shall be required to demonstrate to the corporation that he otherwise meets the remaining requirements for suitability, particularly those contained in Paragraphs (A)(1) through (3) of this Section. Evidence of, or relating to, an arrest, summons, charge, or indictment of an applicant, or the dismissal thereof, may be considered by the corporation even if the arrest, summons, charge, or indictment results in acquittal, deferred adjudication, probation, parole, or pardon.  E. A person who has been found unsuitable or whose permit has been revoked, in this state or any other jurisdiction, may not apply for a permit or a finding of suitability for five years from the date there was a finding of unsuitability, or the permit was revoked, unless the corporation allows the application for good cause shown. The corporation shall promulgate rules necessary to carry out the provisions of this Section.  F. All permittees and other persons found suitable by the corporation shall maintain suitability throughout the term of the permit. In the event of a current prosecution of an offense as provided in Paragraph (B)(2) of this Section, the corporation shall have the discretion to defer a determination on a person's continuing suitability pending the outcome of the proceedings provided that if a decision is deferred pending such outcome the corporation may take such action as is necessary to protect the public trust, including the suspension of any permit.  G. All permittees and any other persons required to be found suitable shall have a continuing duty to inform the corporation of any possible violation of this Subtitle and of any rules adopted by the corporation. No person who so informs the corporation of a violation or possible violation shall be discriminated against by the applicant or permittee because of supplying such information.  H.(1)(a) Any person who has or controls directly or indirectly five percent or more ownership, income, or profit or economic interest in an entity which has or applies for a sports wagering platform provider permit pursuant to the provisions of this Subtitle, or who receives five percent or more revenue interest in the form of a commission, finder's fee, loan repayment, or any other business expense related to the gaming operation, or who has the ability or capacity to exercise significant influence over a permittee or other person required to be found suitable pursuant to the provisions of this Subtitle, shall meet all suitability requirements and qualifications pursuant to the provisions of this Subtitle.  (b) In determining whether a person has significant influence for purposes of this Section, the corporation may consider but is not limited to the following: management and decision-making authority; operational control; financial relationship; receipt of gaming revenue or proceeds; financial indebtedness; and gaming related associations.  (2)(a) A lessor of immovable property forming any part of the complex of a sports wagering operation pursuant to this Subtitle is required to submit to suitability.  (b) Notwithstanding anything contained in this Chapter to the contrary, the obligations to the corporation of the real estate lessor of a permittee who receives less than two percent of the net gaming proceeds of a permittee and who is not involved in the day-to-day operations of the permittee shall be to provide such financial information, documentation, and necessary release forms for the corporation to make a determination that no person who fails to meet suitability requirements is receiving any funds received by the lessor from the permittee, or is participating in the management of the affairs or business operations of the lessor.  I. If the corporation finds that an individual owner or holder of a security of a permittee, or of a holding or intermediary company of a permittee, or any person or persons with an economic interest in a permittee, or a director, partner, officer, or managerial employee is not suitable, and if as a result, the permittee is no longer qualified to continue as a permittee, the corporation shall propose action necessary to protect the public interest, including the suspension or revocation of the permit. The corporation may also issue under penalty of revocation or suspension of a permit, a condition of disqualification naming the person or persons and declaring that such person or persons may not:  (1) Receive dividends or interest on securities of a person, or a holding or intermediary company of a person, holding an approval or permit.  (2) Exercise directly, or through a trustee or nominee, a right conferred by securities of a person, or a holding or intermediary company of a person, holding an approval or permit, issued pursuant to the provisions of this Subtitle.  (3) Receive remuneration or other economic benefit from any person, or a holding or intermediary company of a person, holding an approval or permit issued pursuant to this Subtitle.  (4) Exercise significant influence over activities of a person, or a holding or intermediary company of a person, holding a license, casino operating contract, permit, or other approval issued pursuant to the provisions of this Subtitle.  (5) Continue owning or holding a security of a person, or a holding or intermediary company of a person, holding an approval or permit issued pursuant to the provisions of this Subtitle or remain as a manager, officer, director, or partner of a permittee.  J. In the awarding of an approval or permit pursuant to the provisions of this Subtitle, the corporation may consider that the person is not current in filing all applicable tax returns and in the payment of all taxes, penalties, and interest owed the Internal Revenue Service, excluding items under formal appeal.  K. In determining the suitability of an application, the corporation may request from an applicant and consider any of the following:  (1) Whether the applicant has adequate capital, financial ability, and means to develop, construct, operate, and maintain infrastructure to support sports wagering activities and operations in compliance with this Chapter and any administrative rules promulgated by the corporation.  (2) Whether the applicant has the financial ability to purchase and maintain adequate liability and casualty insurance and to provide an adequate surety bond.  (3) Whether the applicant has adequate capital and the financial ability to responsibly pay its secured and unsecured debts in accordance with its financing agreements and other contractual obligations.  (4) Whether the applicant has a history of material noncompliance with licensing or permitting requirements or any other regulatory requirements in Louisiana or in any other jurisdiction, where the noncompliance resulted in enforcement action by the person with jurisdiction over the applicant.  (5) Whether the applicant has filed, or had filed against it, a proceeding for bankruptcy or has ever been involved in any formal process to adjust, defer, suspend, or otherwise negotiate the payment of any debt.  (6) Whether or not at the time of the application, the applicant is a defendant in litigation involving the integrity of its business practices.  Acts 2021, No. 80, §4, eff. July 1, 2021.