North Dakota Administrative Code › Title 69.5 - Racing Commission, North Dakota › Article 69.5-01 - North Dakota Racing Commission Rules › Chapter 69.5-01-11 - Simulcasting and Account Deposit Wagering › Section 69.5-01-11-03 - Licensing service providers and totalizator companies

Current through Supplement No. 393, July, 2024
1. Service providers and totalizator
				companies must be licensed by the commission and approved by the attorney
				general.
2. Before the commission
				may grant such license, it shall review and approve the services to be provided
				by the applicant. The applicant shall submit such information as required by
				the commission which must include, but not be limited to:
a. The services and equipment to be
				provided.
b. Projected revenue and
				costs associated with the operations of the applicant.
c. A complete financial statement
				demonstrating adequate capitalization to maintain the intended
				services.
d. A description of the
				management or management groups responsible for the operation of the service
				provider or totalizator company, including a list of all officers, directors,
				partners, and shareholders with a five percent or greater share of ownership or
				beneficial interest in the service provider or totalizator company.
e. A complete description of the
				transmission, totalizator, and data processing equipment to be used.
f. A history of the company demonstrating the
				experience and technical knowledge necessary to supply the intended
				services.
g. Written agreements
				between the applicant and all parties assisting in providing
				services.
h. A description of the
				security measures to be used to protect the propriety of the signal and the
				integrity of the wagering process.
i. The system of accounts to be utilized in
				the collection and distribution of revenues directly or indirectly related to
				the operation and the combined pari-mutuel pool.
j. A detailed statement demonstrating
				individual and corporate conduct, ability, and reputation of the applicant and
				supervisory personnel.
k. A
				complete list of licenses held by the applicant, the thoroughbred racing
				association codes associated with such licenses where applicable and the
				websites to which the licenses and thoroughbred racing association codes
				apply.
l. A description of the
				processes and procedures implemented in conjunction with tracks and other
				industry stakeholders to address possible odds manipulation through placing
				large bets on small pools, the cancellation of wagers, and other
				methods.
m. The commission may
				require an audit of the applicant at the expense of the applicant.
n. The commission may require totalizator
				companies to provide documentation of third-party compliance and testing within
				two years of application.
o. The
				commission may require a background investigation of the applicant to be
				conducted by the thoroughbred racing protective bureau or another entity
				approved by the commission, the scope of which is at the sole discretion of the
				commission. The applicant is responsible for all costs associated with
				conducting the background check.