California Code of Regulations › Title 4 - Business Regulations › Division 4 - California Horse Racing Board › Article 26 - Advance Deposit Wagering › Section 2072 - Approval to Conduct Advance Deposit Wagering by an Out-of-State Applicant

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Prior
				to an Account being established or wagering being conducted the Applicant
				located out-of-state must be Board-approved. All approvals granted shall be
				subject to the provisions of Business and Professions Code section
				19460
				et. seq.
(b) An out-of-state
				Applicant shall complete an Application For Approval to Conduct Advance Deposit
				Wagering, CHRB-133 (Rev. 02/19), hereby incorporated by reference, which is
				available at the Board's administrative office. The Application must be filed
				not later than 90 days in advance of the scheduled start date of operation. A
				bond from a surety company admitted in the state of California or other form of
				financial security in the amount of $500,000 must accompany the Application.
				The term of approval is two years from the date the approval is
				issued.
(c) Out-of-state Applicants
				shall establish security access policies and safeguards pursuant to Business
				and Professions Code section
				19604.
(d) Out-of-state Applicants that accept
				wagers from California residents shall provide a full accounting and
				verification of the source of the wagers, and a detailed wagering information
				file that includes, but is not limited to dollar amount wagered, pool on which
				the wager was placed, race number and racing venue, zone, breed, zip code of
				the Account Holder, time wagering stopped, and time of the wager in the form of
				a daily download of pari-mutuel data to the Board designated database, CHRIMS,
				Inc., that is compatible with a Comma Delimited Text File.
(e) Out-of-state Applicants shall provide
				financial information that demonstrates the financial resources to operate
				Advance Deposit Wagering and provide a detailed budget that shows anticipated
				revenue, expenditures and cash flows by month projected for the term of the
				approval.
(f) The Board may conduct
				investigations, inspections or request additional information from the
				out-of-state Applicant as it deems appropriate in determining whether to
				approve the Application.
(g) The
				Board, or its designee, shall be given access for review and audit of all
				records. The out-of-state Applicant shall, at their location during hours of
				operation, make such information available. The Board may require the
				out-of-state Applicant to annually submit audited financial
				statements.
(h) All advertisements
				shall contain a statement that persons under 18 are not allowed to open or have
				access to Accounts. All advertisements shall contain contact information for a
				recognized problem-gambling support organization.
(i) The Board shall notify the out-of-state
				Applicant in writing within 30 calendar days from the receipt date by the
				Board's administrative office if the Application is complete or deficient. If
				the Application is deficient, the notice shall include:
(1) Instructions as to what are required of
				the out-of-state Applicant to complete the Application.
(2) Instructions for requesting additional
				time to satisfy the requirements listed in the notification, if
				needed.