Indiana Administrative Code › Title 71 - INDIANA HORSE RACING COMMISSION › Article 9 - PARI-MUTUEL WAGERING › Rule 2.2 - Advance Deposit Wagering › Section 2.2-3 - Application submission and reimbursement costs

Current through July 10, 2024
Authority: IC 4-31-7.5-11
Affected: IC 4-31-7.5-13; IC 4-31-7.5-14
Sec. 3.
(a) A
				secondary pari-mutuel organization applying for a license under this article
				must submit a complete application on a form prescribed by the commission that
				contains the following information:
(1) The
				applicant's legal name.
(2) The
				location of the applicant's principal office.
(3) The names, addresses, and dates of birth
				of all shareholders, directors, officers, and other persons owning or
				controlling an interest in the SPMO with the degree of ownership or type of
				interest shown. Corporations, partnerships, or other legal entities, which own
				or control a beneficial interest in the applicant, either directly or through
				other corporations or legal entities, shall similarly file with the application
				a list showing the names, addresses, and dates of birth of all officers,
				directors, stockholders, and other persons owning or controlling a beneficial
				interest in the legal entities, with the degree of ownership or type of
				interest pertaining to the ownership or interest.
(4) If the applicant is a corporation
				ultimately owned by a not-for-profit entity without any shareholders, or is a
				publicly traded corporation, the information required in subdivision (3) shall
				be required from the directors of the membership organization, or the directors
				and officers of the publicly traded corporation, in lieu of the
				shareholders.
(5) A copy of the
				organizational documents of the applicant.
(6) The names of the racetracks the
				applicant, or its agent, has contracts or other agreements with that allow the
				applicant to provide advance deposit wagering.
(7) Financial information that demonstrates
				that the SPMO has the financial resources to operate advance deposit wagering
				and provides a detailed budget that shows anticipated revenue, expenditures,
				and cash flows by month, projected for the term of the license
				sought.
(8) Written evidence of the
				approval to conduct advance deposit wagering that the organization has received
				from the appropriate regulatory authority in each state where the SPMO is
				licensed.
(9) A copy of a proposed
				contract executed by the applicant and each permit holder to satisfy the
				requirements of section 6 of this rule.
(10) A copy of the bond, irrevocable letter
				of credit, or other undertaking referenced in section 5 of this rule.
(11) A plan of operation including all
				standard operating procedures related to wagers, wagering accounts, security of
				wagering systems, security of confidential information, and policies for
				ensuring no underage persons engage in wagering and account payouts.
(12) A list of any affiliates or potential
				affiliates of the SPMO. The list must contain the following information about
				any affiliates or potential affiliates, and the SPMO and any affiliates must
				meet the following guidelines:
(A) The name
				and web address of the affiliate.
(B) The name and web address of the
				affiliate's site where advance deposit wagering will occur, if different from
				subdivision (A).
(C) The person or
				companies involved in the affiliate agreement.
(D) The location of the affiliate's principal
				office.
(E) The names, addresses,
				and dates of birth of all shareholders, directors, officers, and other persons
				owning or controlling an interest in the affiliate with the degree of ownership
				or type of interest shown. Corporations, partnerships, or other legal entities,
				which own or control a beneficial interest in the affiliate, either directly or
				through other corporations or legal entities, shall similarly file with the
				application a list showing the names, addresses, and dates of birth of all
				officers, directors, stockholders, and other persons owning or controlling a
				beneficial interest in the legal entities, with the degree of ownership or type
				of interest pertaining to the ownership or interest.
(F) If the affiliate is a corporation
				ultimately owned by a not-for-profit entity without any shareholders, or is a
				publicly traded corporation, the information required in subdivision (E) shall
				be required from the directors of the membership organization, or the directors
				and officers of the publicly traded corporation, in lieu of the
				shareholders.
(G) A copy of the
				organizational documents of the affiliate.
(H) That the affiliate site agreement is
				clearly noted as either a marketing or service agreement.
(I) Account holders using the affiliate site
				will be account holders of the licensed SPMO, subject to the same verification
				process and account operational procedures as any other account holder of the
				SPMO licensee.
(J) The wagers
				placed through the affiliate site will be processed through equipment owned and
				operated by the licensed SPMO.
(K)
				The licensed SPMO will incorporate all advance deposit wagering of the
				affiliate site into the source market fee of the licensed SPMO.
(L) The affiliate site will be branded in
				some form to indicate to the account holder that they will be wagering through
				systems operated by the licensed SPMO. The commission reserves the right to
				approve or deny any affiliate sites. Additionally, the commission may determine
				a total monthly advance deposit wagering amount at which an affiliate site may
				need to apply for its own SPMO license.
(13) A detailed budget showing on a monthly
				basis anticipated revenue, expenditures, and cash flows from the SPMO's
				operation during the initial license period.
(14) A proposed version of the advance
				deposit wagering terms and agreement to be provided to account
				holders.
(15) A nonrefundable
				application fee of five thousand dollars ($5,000).
(16) Any other information required by the
				commission.