Michigan Administrative Code › Department - Treasury › Michigan Gaming Control Board › Internet Sports Betting › Part 2 - LICENSING: OPERATOR, SUPPLIER, OCCUPATIONAL; VENDOR REGISTRATION › Section R. 432.721e - Exemption for institutional investors

Current through Vol. 24-12, July 15, 2024
Rule 721e.
(1) An
				  institutional investor who acquires beneficial ownership of a person that has
				  applied for or holds a sports betting operator license or sports betting
				  supplier license must notify the board within 14 days after the institutional
				  investor acquires the interest or files form 13-D or 13-G with the U.S.
				  Securities and Exchange Commission, or both, and must provide additional
				  information, and may be subject to a finding of suitability, as required by the
				  board.
(2) An institutional
				  investor who acquires and holds a less than 25% interest for investment
				  purposes only in a person that has applied for or holds a sports betting
				  operator license or sports betting supplier license in this state may, in a
				  manner and form prescribed by the board, file an exemption form to establish
				  exemption from the eligibility and suitability requirements of the
				  act.
(3) The licensee in whom the
				  institutional investor acquires the interest must file an application for
				  approval of the transfer within 30 days after the transfer. Within the same
				  time period, the institutional investor must file either an exemption form if
				  the institutional investor holds the interest for investment purposes only or
				  an application and disclosure forms as part of the licensees application if the
				  institutional investor does not hold the interest for investment purposes
				  only.
(4) The board may require
				  that any person, including an institutional investor, seeking approval to hold
				  ownership interests subject to this part apply for a finding of suitability in
				  accordance with this rule if the board considers the finding of suitability
				  necessary to ensure compliance with the act and these rules. If the board
				  denies a request for an institutional investor exemption, the institutional
				  investor must, within 30 days, either divest itself of the interest or file
				  application and disclosure forms as part of the relevant licensees
				  license.
(5) The following
				  activities are considered to be consistent with holding equity securities for
				  investment purposes only under this rule:
(a)
				  Voting, directly or indirectly, through the delivery of a proxy furnished by
				  the board of directors, on all matters voted on by the holders of the voting
				  securities.
(b) Serving as a member
				  of a committee of creditors or security holders formed in connection with a
				  debt restructuring.
(c) Nominating
				  a candidate for election or appointment to the board of directors in connection
				  with a debt restructuring.
(d)
				  Accepting appointment or election as a member of the board of directors in
				  connection with a debt restructuring and serving in that capacity until the
				  conclusion of the member's term.
(e) Making financial and other inquiries of
				  management of the type normally made by securities analysts for information
				  purposes and not to cause a change in its management, policies, or
				  operations.
(f) Other activities
				  that the board determines to be consistent with the investment
				  intent.