Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 06 - Racing Commission › Rule 006.06.21-012 - Casino Gaming Rule 22

Current through Register Vol. 49, No. 6, June, 2024
RULE 22
			 OFF-TRACK PARI-MUTUEL WAGERING
22.010
Scope.
This Rule and Rule 24 govern all off-track pari-mutuel
			 wagering in Arkansas for which a license or approval has been granted by the
			 Commission pursuant to Amendment 100. A casino licensee that is also a
			 franchise holder may elect to have its race book operations relating to
			 pari-mutuel wagering and horse and greyhound racing regulated and governed by
			 the Arkansas Horse Racing Law at Ark. Code Ann. §§
									23-110-101, et
			 seq., or the Arkansas Greyhound Racing Law at Ark. Code Ann. §§
									23-111-101, et
			 seq., respectively, and rules promulgated by the Commission thereunder and not
			 by these Rules.
22.020
Definitions.
As used in this Rule:
1.
			 "Affiliate" has the same meaning as defined in these Rules.
2. "Breakage" means:
(a) The rounding of a payout on a winning
			 pari-mutuel wager, as determined by the track in accordance with the laws and
			 regulations that are applicable to the jurisdiction in which the track
			 operates;
(b) Those deficiencies
			 arising from payouts made pursuant to these Rules; or
(c) Those deficiencies arising from the
			 payment of a guaranteed payout pursuant to these Rules.
4. "Commission on wagers" ("takeout") means
			 the amount retained and not returned to patrons by a pari-mutuel book from the
			 total amount of off-track pari-mutuel wagers.
5. "Foreign track" means a track located
			 outside of the United States.
6.
			 "Gross revenue" means the amount of the commission on wagers received by a
			 licensee, plus positive breakage and the dollar amount of winning tickets that
			 remain unpaid pursuant to this Rule, less negative breakage and the amount paid
			 to a track for the right to be part of an interstate or intrastate common
			 pari-mutuel pool ("track fee").
7.
			 "Interstate common pari-mutuel pool" means a pari-mutuel pool consisting of the
			 parimutuel wagers placed at a track, its intrastate betting locations, other
			 jurisdictions and the off track pari-mutuel wagers placed and accepted at
			 pari-mutuel books.
8. "Intrastate
			 common pari-mutuel pool" means a pari-mutuel wagering pool operated by a
			 systems operator consisting solely of the wagers placed and accepted at two or
			 more pari-mutuel books on races at tracks.
9. "Live audio visual signal" ("simulcast")
			 means the audio and visual transmission of a race, or series of races, as it
			 occurs at a track.
10. "Manual
			 merge" means the process used in the event of a systems or communications
			 failure by which the systems operator transmits to the track through telephone,
			 telecopy, cellular, or other means of communication, the pari-mutuel books
			 wagering information and the process by which the track includes the off-track
			 pari-mutuel wagers in the interstate common parimutuel pool in such
			 event.
11. "Nonpari-mutuel race
			 wager" means a wager other than one offered to be included in an interstate or
			 intrastate common pari-mutuel pool.
12. "Off-track pari-mutuel system" means a
			 computerized system or component of a system that is used to transmit wagering
			 data:
(a) In an interstate common pari-mutuel
			 system, to and from a track which offers interstate common pari-mutuel pools;
			 or
(b) In an intrastate common
			 pari-mutuel system, between the pari-mutuel books and a systems operator, and
			 includes the totalizator equipment used to determine the winners of and payoffs
			 on intrastate common pari-mutuel pools.
13. "Off-track pari-mutuel wager" means
			 either:
(a) A wager placed by a patron and
			 accepted by a pari-mutuel book on a race or races offered as part of an
			 interstate common pari-mutuel pool whether or not the wager is actually
			 included in the total amount of the interstate common pari-mutuel pool;
			 or
(b) A wager placed by a patron
			 and accepted by a pari-mutuel book on a race or races offered as part of an
			 intrastate common pari-mutuel pool.
14. "Pari-mutuel book" means a race book that
			 has received a license to accept off-track parimutuel wagers pursuant to the
			 provisions of this Rule. The term "pari-mutuel book" shall include pari-mutuel
			 only books, unless stated otherwise within this Rule.
15. "Pari-mutuel only book" means a race book
			 that has received a license to accept off-track pari-mutuel wagers pursuant to
			 the provisions of this Rule, but has elected not to accept nonpari-mutuel race
			 wagers.
16. "Post time" means "post
			 time" as that term is defined in these Rules.
17. "Source market fee" means a track fee
			 paid for accepting wagering account wagers, in accordance with Rule 24, from a
			 customer residing in the track's defined market area.
18. "Systems operator" or "operator of a
			 system" means a person engaged in providing the off-track pari-mutuel system or
			 services directly related to the reconciliation of the interstate or intrastate
			 common pari-mutuel pool and transfers offunds between the tracks and the
			 pari-mutuel books, or among the pari-mutuel books.
19. "Track" means an out-of-state facility
			 licensed to operate horse or other racing where pari-mutuel wagering on races
			 is conducted, or a person licensed in another jurisdiction to conduct
			 pari-mutuel wagering on such races. Where applicable, the term also includes a
			 person or governmental agency from outside this state that operates a track,
			 holds a track's rights to offtrack pari-mutuel wagering or shares in its
			 revenues. The term also includes an association of tracks.
20. "Wagering data" means the information
			 regarding results, actual payouts, and the amount of pari-mutuel and off-track
			 pari-mutuel wagers accepted for each race or group of races in an interstate or
			 intrastate common pari-mutuel pool.
21. "Wagering information" means the amount
			 of off-track pari-mutuel wagers accepted for each race or group ofraces by a
			 pari-mutuel book.
22.030
Authorization required to accept off-track pari-mutuel wagers;
			 applications.
1. A person shall not
			 accept off-track pari-mutuel wagers unless it has received authorization to
			 accept such wagers from the Commission. Authorization to accept off-track
			 parimutuel wagers shall not be granted to anyone other than a
			 Licensee.
2. Applications for
			 authorization to accept off-track pari-mutuel wagers must be made, processed,
			 and determined using such forms as the Commission may require or approve. Each
			 application must be accompanied by an internal control system prepared and
			 submitted m accordance with these Rules.
3. Applications for authorization to accept
			 off-track pari-mutuel wagers must enter into agreements and arrangements with
			 other parties, consistent with federal law and approval by the Commission,
			 pursuant to which its patrons may wager on races run at race tracks that are
			 shown live or in any other manner approved by the Commission, by television, or
			 otherwise, at locations on the grounds of the race book.
4.
(a) For
			 purposes of this Rule, "horse racing franchisor" means a franchisor licensed to
			 conduct horse racing, and pari-mutuel wagering thereon, in Garland County,
			 Arkansas under the Arkansas Horse Racing Law, Ark. Code Ann. Section
			 23-110-101 et
			 seq.; and (ii) "greyhound racing franchisor" means a franchisor licensed to
			 conduct greyhound racing, and parimutuel wagering thereon, in Crittenden County
			 under the Arkansas Greyhound Racing Law, Ark. Code Ann. Section
			 23-111-101 et
			 seq.
(b) In the case of a casino
			 (other than one licensed to a horse racing franchisor), the casino (including
			 any race book) shall not accept wagers on horse racing unless the casino
			 licensee has a commercially reasonable agreement, acceptable to the Commission,
			 in place with the horse racing franchisor setting forth the terms and
			 conditions for acceptance of such wagers on horse racing that fairly attempts
			 to ensure that the acceptance of such wagers will not adversely impact horse
			 racing at the horse racing franchisor's racetrack, and related purses, and
			 thoroughbred breeding activities in Arkansas, and related Arkansas thoroughbred
			 breeding purse support programs.
(c) In the case of a casino (other than one
			 licensed to a greyhound racing franchisor), the casino (including any race
			 book) shall not accept wagers on greyhound racing unless the casino licensee
			 has a commercially reasonable agreement, acceptable to the Commission, in place
			 with the greyhound racing franchisor setting forth the terms and conditions for
			 acceptance of such wagers on greyhound racing that fairly attempts to ensure
			 that the acceptance of such wagers will not adversely impact greyhound racing
			 at the greyhound franchisor's racetrack, and related purses, and greyhound
			 breeding activities in Arkansas, and related Arkansas greyhound breeding purse
			 support programs.
(d) The
			 provisions of this Section shall likewise also apply to any wagers on horse or
			 greyhound racing by a race book under these Rules.
22.040
Conduct of off-track
			 pari-mutuel wagering.
1. Off-track
			 pari-mutuel wagering may be conducted only within a race book or any other area
			 approved by the Commission.
2. A
			 pari-mutuel book offering off-track pari-mutuel wagering must comply with the
			 provisions of these Rules, when not in conflict with this Rule.
3. A pari-mutuel book shall not use the
			 information received from the off-track parimutuel system to determine the
			 winners of or payoffs on nonpari-mutuel race wagers.
4. A pari-mutuel book shall not use the
			 information received from a live broadcast to determine the winners of or
			 payoffs on off-track pari-mutuel wagers.
5. A pari-mutuel book may use the information
			 received from a live audio visual signal to determine the winners of or payoffs
			 on off-track pari-mutuel wagers in the event the systems operator notifies the
			 pari-mutuel book that it is unable to relay that information to the pari-mutuel
			 book through the off-track pari-mutuel system. A pari-mutuel book shall comply
			 with the Rule 6 minimum internal control standards when making such
			 payoffs.
6. A pari-mutuel book
			 shall pay winning interstate off-track pari-mutuel wagers in accordance with
			 official results at the track, irrespective of whether the wagering information
			 from the pari-mutuel book was included in the interstate common pari-mutuel
			 pool.
7. A pari-mutuel book shall
			 pay winnings, intrastate off-track pari-mutuel wagers in accordance with
			 official results from the approved, off-track pari-mutuel system and shall
			 return at least one dollar and five cents for each winning dollar wagered, and
			 any other guaranteed payout.
8. The
			 pari-mutuel books shall be jointly responsible for any deficiencies and shall
			 share in any excesses resulting from the requirements of these Rules. The terms
			 of any such agreement must be approved pursuant to the provisions of this
			 Rule.
9. A pari-mutuel book, other
			 than a pari-mutuel only book, that has agreed to accept off-track pari-mutuel
			 wagers may only accept nonpari-mutuel race wagers on types of bets not offered
			 as part of the interstate or intrastate common pari-mutuel pool, and may accept
			 nonpari-mutuel race wagers on types of bets offered as part of an interstate or
			 intrastate common parimutuel pool in the event the off-track pari-mutuel system
			 is not functioning.
10. A
			 pari-mutuel book shall not pay a systems operator or a track any compensation
			 for the right to be part of an interstate or intrastate common pari-mutuel pool
			 unless the agreement setting forth the terms of the compensation has been
			 approved pursuant to the provisions of this Rule.
11. A pari-mutuel book shall adopt,
			 conspicuously display, and adhere to written house rules governing off-track
			 pari-mutuel wagering transactions with patrons. Prior to adopting or amending
			 such house rules, a pari-mutuel book shall submit such rules to the Commission
			 for approval.
12. A pari-mutuel
			 book shall allow patrons to cash an outstanding off-track pari-mutuel ticket
			 for 120 days from the date of purchase or 30 days after the close of the racing
			 meet whichever shall first occur. Tickets which are not redeemed within such
			 time become valueless, unless the time period is otherwise extended by the
			 licensee, and the sum of money represented by them shall accrue to the issuing
			 licensee.
13. Pari-mutuel books may
			 not accept intrastate pari-mutuel wagers placed by any book, affiliate of the
			 pari-mutuel book, or a systems operator providing the intrastate common
			 pari-mutuel system. Books or systems operators may not place wagers into an
			 intrastate common pari-mutuel pool.
14. Each pari-mutuel book that accepts an
			 intrastate pari-mutuel wager must visually display to patrons, through direct
			 communications with the off-track pari-mutuel system conducting the intrastate
			 pool, the current odds and minutes to post for each race or wagering
			 proposition on which intrastate wagers are being accepted as well as the
			 official results and payoffs. The odds and post information shall be displayed
			 at least 10 minutes prior to the scheduled post time and shall be updated at
			 least every 90 seconds prior to post time. An intrastate pari-mutuel pool shall
			 not be approved unless the systems operator has the capability to deliver this
			 visual information to the pari-mutuel books in a form acceptable to the
			 Commission, and each pari-mutuel book must be capable of displaying the
			 information in a form acceptable to the Commission, before being approved to
			 participate in that intrastate pari-mutuel pool.
22.050
[Reserved.]
22.060
Approval to share in revenues;
			 applications.
1. A pari-mutuel book
			 shall not pay a share of the revenue from off-track pari-mutuel wagering to any
			 person for the right to be part of an interstate or intrastate common
			 pari-mutuel pool or for any services relating to the interstate or intrastate
			 common pari-mutuel pool or off-track pari-mutuel system, unless the person
			 sharing the revenue from the off-track pari-mutuel wagering has received
			 approval from the Commission.
2.
			 Applications for approval to be paid a share of the revenue from off-track
			 pari-mutuel wagering must be made, processed, and determined using such forms
			 as the Commission may require or approve.
22.070
Criteria for approval to share
			 in revenue.
The Commission may consider the following suitability
			 criteria in determining whether to approve an application by a person to
			 receive a share of the revenue from off-track pari-mutuel wagering:
(a) A person of good character, honesty and
			 integrity;
(b) 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 charitable lotteries, or create or enhance
			 the dangers of unsuitable, unfair or illegal practices, methods and activities
			 in the conduct of gaming or charitable lotteries or in the carrying on of the
			 business and financial arrangements incidental thereto; and
(c) In all other respects qualified to be
			 licensed or found suitable consistently with the declared policy of the
			 State.
22.080
Requirements imposed upon tracks approved to share in the revenue or
			 otherwise receive compensation.
1. A
			 track approved to share in the revenue or otherwise receive compensation from
			 parimutuel books for the right to be part of an interstate common pari-mutuel
			 pool or for permitting pari-mutuel books to conduct an intrastate pari-mutuel
			 pool shall:
(a) For each racing meet for which
			 it is offering an interstate common pari-mutuel pool or permitting pari-mutuel
			 books to conduct an intrastate pari-mutuel pool, provide a live broadcast
			 signal to a disseminator at a fee which is less than the amount the
			 disseminator may charge pursuant to these Rules, which amount shall not exceed
			 three percent of the total live broadcast handle;
(b) Offer all pari-mutuel books the right to
			 be part of an interstate common pari-mutuel pool or intrastate pari-mutuel pool
			 and charge the same percentage of the revenue from off-track pari-mutuel
			 wagering to all pari-mutuel books. If charging a fixed daily fee amount, the
			 track shall charge each pari-mutuel book its proportional share of the fixed
			 amount based upon each pari-mutuel book's percentage of the total off-track
			 pari-mutuel wagers.
(c) Comply with
			 all applicable state and federal laws for all racing meets for which it is
			 offering an interstate common pari-mutuel pool or permitting pari-mutuel books
			 to conduct an intrastate pari-mutuel pool;
(d) Engage the services of the disseminator
			 authorized to disseminate the live broadcast signal of a racing meet to provide
			 racing information not part of wagering data, but which is the type of
			 information provided to users and buyers, and to transmit the live audio visual
			 signal of the racing meet to the pari-mutuel books and the systems operator.
			 The live audio visual signal must meet the production requirements of these
			 Rules applicable to live broadcasts. Nothing in this section shall be deemed to
			 require a pari-mutuel book to display a live audio visual signal in conjunction
			 with an interstate or intrastate common pari-mutuel pool.
2. A track approved to share in the revenue
			 from off-track pari-mutuel wagering shall maintain a revolving fund with the
			 Commission in an amount determined by the Commission, which may not exceed
			 $10,000 without Commission approval, for post-approval investigative costs. A
			 track shall remit the amount requested by the Commission within 15 days of the
			 request.
22.090
Licensing of off-track pari-mutuel systems operator.
1. A pari-mutuel book shall not use an
			 interstate or intrastate off-track pari-mutuel system unless the systems
			 operator has been licensed by the Commission.
2. Applications for a license to serve as a
			 systems operator must be made, processed, and determined using such forms as
			 the Commission may require or approve. Each application must include an
			 internal control system prepared and submitted in accordance with these
			 Rules.
22.100
Requirements imposed upon systems operators.
1. Each systems operator shall maintain an
			 office in Arkansas and designate a key employee located in the Arkansas office
			 to supervise and be responsible for the day-to-day operations of the off-track
			 pari-mutuel system.
2. Each systems
			 operator shall submit and comply with an internal control system and all
			 amendments to such system as have been approved by the Commission pursuant to
			 Rule 6. Each systems operator shall, if required by the Commission, amend the
			 written system to comply with any requirements consistent with these Rules that
			 the Commission deems appropriate.
3. Each systems operator shall prepare
			 financial statements covering all financial activities of the systems operator
			 for each business year and shall engage an independent accountant who shall
			 audit the financial statements in accordance with generally accepted auditing
			 standards, unless the Commission allows the systems operator upon written
			 request to engage the independent accountant to review the financial statements
			 in accordance with standards for accounting and review services.
4. Each systems operator shall submit to the
			 Commission two copies of its audited or reviewed financial statements not later
			 than 120 days after the last day of the systems operator's business
			 year.
5. If a systems operator
			 changes its business year, the systems operator shall prepare and submit to the
			 Commission audited or reviewed financial statements covering the "stub" period
			 from the end of the previous business year to the beginning of the new business
			 year, not later than 120 days after the end of the stub period or incorporate
			 the financial results of the stub period in the financial statements for the
			 new business year.
6. Reports that
			 directly relate to the independent accountant's review or audit of the systems
			 operator's financial statements must be submitted within 120 days after the end
			 of the systems operator's business year.
7. Each systems operator shall require the
			 independent accountant engaged by the systems operator to audit or to review
			 the systems operator's financial statements to submit to the systems operator
			 two copies of a written report of its compliance with the internal control
			 system approved by the Commission. Not later than 150 days after the end of the
			 systems operator's business year, the systems operator shall submit two copies
			 of the independent accountant's report or any other correspondence directly
			 relating to the systems operator's system of internal control to the
			 Commission, accompanied by the systems operator's statement addressing each
			 item of noncompliance noted by the independent accountant and describing the
			 corrective measure taken.
8. The
			 Commission may request additional information and documents from either the
			 systems operator or the systems operator's independent accountant, through the
			 systems operator, regarding the financial statements or the services performed
			 by the independent accountant.
9.
			 Each systems operator shall maintain a revolving fund with the Commission in an
			 amount determined by the Commission, which may not exceed $10,000 without
			 Commission approval, for post-licensing investigative costs. A systems operator
			 shall remit the amount requested by the Commission within 15 days of the
			 request.
22.110
Approval of off-track pari-mutuel systems; applications.
A
			 pari-mutuel book shall not use an off-track pari-mutuel system unless the
			 system has been approved pursuant to the provisions of these Rules governing
			 associated equipment.
22.120
Minimum technical requirements for off-track pari-mutuel systems.
An off-track pari-mutuel wagering system must include a fully redundant
			 computer system and must:
1. For each race for
			 which wagers are to be included in an interstate common parimutuel pool,
			 receive, aggregate by pool and report to a track at regular intervals to be
			 approved by the Commission, all off-track pari-mutuel wagering information
			 received separately from the pari-mutuel books;
2. For each race for which wagers are to be
			 included in an interstate common parimutuel pool receive and report to each
			 pari-mutuel book at regular intervals to be approved by the Commission, all
			 wagering data received from the track through the system;
3. For each race for which wagers are to be
			 included in an intrastate common parimutuel pool, the system shall include
			 totalizator equipment that shall aggregate by pool and report to the
			 pari-mutuel books at regular intervals approved by the Commission, all
			 pari-mutuel wagering information received separately from the pari-mutuel
			 books;
4. After each race on which
			 pari-mutuel wagering is conducted is declared official, receive and report to
			 each pari-mutuel book the results and payoff prices reported by the track in an
			 interstate common pari-mutuel pool, and the results reported by a licensed
			 disseminator and payoff prices determined by the off-track pari-mutuel system
			 in an intrastate common pari-mutuel pool. Nothing in this section shall be
			 deemed to require the systems operator or pari-mutuel book to display a live
			 audio visual signal in conjunction with an interstate or intrastate common
			 parimutuel pool; and
5. Provide all
			 accounting and reconciliation reports required by the Commission.
22.130
Operation of the
			 off-track pari-mutuel system.
1. A
			 systems operator operating an interstate common pari-mutuel pool shall
			 immediately notify the pari-mutuel books in the event that it is unable to
			 transmit wagering information to the track and shall cause the system to cease
			 accepting off-track pari-mutuel wagers if it is unable to transmit the wagering
			 information to the track either through the system or through a manual
			 merge.
2. A systems operator
			 operating an interstate common pari-mutuel pool may use the information
			 received from a live audio visual signal furnished by a track to input
			 information regarding winners of or payoffs on off-track pari-mutuel wagers in
			 the event that communications between the track and the systems operator is
			 disrupted.
3. A systems operator
			 operating an intrastate common pari-mutuel pool shall immediately notify the
			 pari-mutuel books in the event that it is unable to compile the information
			 necessary to maintain an intrastate common pari-mutuel pool and shall cause the
			 system to cease accepting intrastate pari-mutuel wagers in such an
			 event.
4. A systems operator shall
			 cause the system to cease accepting off-track pari-mutuel wagers from the
			 pari-mutuel books at post time.
22.140
Approval of agreements.
1. Except as provided in these Rules, the
			 terms and conditions of any agreement between the pari-mutuel books, any person
			 representing the pari-mutuel books, systems operator, disseminator, track, and
			 the holders of track rights agreements, or any combination thereof, relating in
			 any way to the operation of an off-track pari-mutuel wagering system, an
			 interstate or intrastate common pari-mutuel pool, or transmission of a live
			 audio visual signal of races on which off-track pari-mutuel wagering will be
			 conducted must be approved by the Commission upon a recommendation of the
			 Commission.
2. The Commission,
			 after whatever investigation or review the Commission deems necessary, may
			 approve the following agreements:
(a) Any
			 agreement, or amendment to an agreement, involving the sharing of parimutuel
			 revenue if the Commission has previously approved the person sharing in the
			 revenue; or
(b) Any agreement, or
			 amendment to an agreement, not involving the sharing of parimutuel revenue,
			 whether or not the Commission has previously approved such an
			 agreement.
3. Agreements
			 among the pari-mutuel books as to the types of intrastate pari-mutuel wagers to
			 be accepted for a particular race or races do not require approval by the
			 Commission or the Commission.
4. An
			 agreement between the pari-mutuel books and a track shall not be approved
			 unless the Commission or Commission, as applicable, is satisfied that:
(a) The agreement specifies the amount of the
			 commission on wagers and track fees, including source market fees if
			 applicable;
(b) The agreement
			 specifies the manner in which breakage is to be allocated;
(c) The agreement specifies the manner in
			 which the parties will handle a system or communication failure and
			 specifically requires the track to accept wagering information from the systems
			 operator through a manual merge for a reasonable amount of time; or the
			 agreement specifies that if the track is unable to accept wagering information
			 through a manual merge, or the applicable regulatory agency having jurisdiction
			 over the track or the laws of the jurisdiction in which the betting system is
			 located does not permit manual merge as a means of transmitting wagering
			 information, the requirement for manual merge set forth in these Rules may be
			 administratively waived by the Commission;
(d) The track has complied with all federal,
			 state and local interstate pari-mutuel wagering laws and regulations that are
			 applicable to the jurisdiction where the track operates;
(e) The track holds all necessary licenses in
			 its home state or country to participate in the off-track pari-mutuel system
			 and to provide the live audio visual signal;
(f) There are means for the and the
			 Commission to obtain adequate access to information pertaining to the operation
			 of the off-track pari-mutuel system, and the transmission of the live audio
			 visual signal, and to investigate any associate of the track in such operation
			 and transmission;
(g) There is
			 assurance that the track has engaged the services of a disseminator, as
			 required by these Rules, and that the related live broadcast proposal has been
			 approved by the Commission pursuant to these Rules;
(h) There is assurance that the operation of
			 the off-track pari-mutuel system and the transmission of the live audio visual
			 signal will be lawfully conducted after approval by the Commission or Director,
			 as applicable, and will not pose a threat to gaming control in
			 Arkansas;
(i) There is assurance
			 that the track and its associates in the off-track pari-mutuel wagering system
			 and live audio visual signal transmission will abide by the conditions and
			 restrictions imposed upon approval;
(j) There is assurance that the right of
			 Arkansas to collect license fees from the parimutuel books will be adequately
			 protected through an effective accounting system designed to prevent the
			 undetected employment of techniques to avoid payment; and
(k) There is assurance that the relationship
			 of the track with any associate will not pose a threat to the interest of
			 Arkansas in regulating the gaming industry within the state.
5. An executed agreement between
			 the pari-mutuel books and a track shall be submitted to the Commission for
			 approval no later than 10 days before the racing meet begins. Additionally, for
			 a foreign track, a draft agreement between the pari-mutuel books and the track
			 and an executed letter of contractual intent between the pari-mutuel books and
			 the track must be submitted to the Commission no later than 90 days before the
			 racing meet begins.
6. An agreement
			 between the pari-mutuel books and a systems operator relating to an interstate
			 or an intrastate common pari-mutuel pool shall not be approved unless the
			 Commission or Commission, as applicable, is satisfied that:
(a) The agreement specifies the amount of the
			 common pari-mutuel pool commission on wagers;
(b) The agreement specifies the manner in
			 which the common pari-mutuel pool breakage is to be allocated;
(c) The agreement specifies the manner in
			 which the parties will handle a system or communication failure;
(d) There are means for the Commission to
			 obtain adequate access to information pertaining to the operation of the
			 off-track pari-mutuel system; and
(e) There is assurance that the right of
			 Arkansas to collect license fees from the parimutuel books will be adequately
			 protected through an effective accounting system designed to prevent the
			 undetected employment of techniques to avoid payment.
22.150
Deduction of
			 commission on wagers.
The total percentage of off-track pari-mutuel
			 wagers that is to be deducted as a commission on wagers must be:
1. For interstate common pari-mutuel pools,
			 the same percentage as deducted by the track, unless a different percentage is
			 otherwise approved by the Commission; and
2. For intrastate common pari-mutuel pools, a
			 percentage not to exceed 25 percent.
22.160
Limits and conditions on
			 approvals.
The Commission may impose limits or place conditions upon any
			 license or approval issued pursuant to this Rule.
22.170
Record retention; access to
			 premises.
Each pari-mutuel book, each licensed systems operator, and
			 each track which offers an interstate common pari-mutuel pool, shall:
1. Maintain and retain all records required
			 by the Commission, for at least 5 years after they are made and shall provide
			 them to the Commission upon the Commission's request; and
2. Allow the members of the Commission, their
			 agents and employees to immediately inspect and examine the premises and
			 immediately inspect, examine, photocopy, and audit all papers, books, and
			 records of the pari-mutuel book, track and systems operator, on the premises,
			 or elsewhere as practicable.
22.180
Grounds for disciplinary action.
Violation of any applicable law or rule by a parimutuel book, track, or
			 system operator constitutes reasonable cause for disciplinary action.
22.190
Authority to issue orders for
			 racing meets.
The Commission shall issue such orders as the Commission
			 deems appropriate to further the process of off-track pari-mutuel
			 wagering.
22.200
Waivers.
The Commission may waive one or more of the requirements
			 of these Rules if the Commission finds that such waiver is consistent with the
			 public policy of the State.