California Code of Regulations › Title 4 - Business Regulations › Division 4 - California Horse Racing Board › Article 26 - Advance Deposit Wagering › Section 2071 - License to Conduct Advance Deposit Wagering by a California 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 in California must be licensed by the Board. All licenses granted shall
				be subject to the provisions of Business and Professions Code section
				19460
				et. seq.
(b) An Applicant for
				license shall complete an Application for License to Conduct Advance Deposit
				Wagering, CHRB-132 (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 the license shall be two years from the date the license is
				issued.
(c) Applicants shall
				establish security access policies and safeguards pursuant to Business and
				Professions Code section
				19604.
(d) 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) 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
				license.
(f) The Board may conduct
				investigations, inspections or request additional information from the
				Applicant as it deems appropriate in determining whether to approve the
				license.
(g) The Board, or its
				designee, shall be given access for review and audit of all records. The
				Applicant shall, at their location during hours of operation, make such
				information available. The Board may require the 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) Applicants shall
				enter into a written contractual agreement with the bona fide labor
				organization that has historically represented the same or similar
				classifications of employees at the nearest horse racing meeting.
(j) The Board shall notify the 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 is required of
				the Applicant to complete the Application.
(2) Instructions for requesting additional
				time to satisfy the requirements listed in the notification, if
				needed.