| 1 | 1 | | REFERENCE TITLE: gaming; background checks; fingerprints State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1499 Introduced by Senator Shope An Act amending sections 5-1202 and 5-1304, Arizona Revised Statutes; relating to fantasy sports and event wagering. (TEXT OF BILL BEGINS ON NEXT PAGE) |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | |
|---|
| 8 | 8 | | |
|---|
| 9 | 9 | | |
|---|
| 10 | 10 | | |
|---|
| 11 | 11 | | REFERENCE TITLE: gaming; background checks; fingerprints |
|---|
| 12 | 12 | | State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 |
|---|
| 13 | 13 | | SB 1499 |
|---|
| 14 | 14 | | Introduced by Senator Shope |
|---|
| 15 | 15 | | |
|---|
| 16 | 16 | | REFERENCE TITLE: gaming; background checks; fingerprints |
|---|
| 17 | 17 | | |
|---|
| 18 | 18 | | |
|---|
| 19 | 19 | | |
|---|
| 20 | 20 | | |
|---|
| 21 | 21 | | |
|---|
| 22 | 22 | | |
|---|
| 23 | 23 | | |
|---|
| 24 | 24 | | |
|---|
| 25 | 25 | | |
|---|
| 26 | 26 | | State of Arizona |
|---|
| 27 | 27 | | |
|---|
| 28 | 28 | | Senate |
|---|
| 29 | 29 | | |
|---|
| 30 | 30 | | Fifty-seventh Legislature |
|---|
| 31 | 31 | | |
|---|
| 32 | 32 | | First Regular Session |
|---|
| 33 | 33 | | |
|---|
| 34 | 34 | | 2025 |
|---|
| 35 | 35 | | |
|---|
| 36 | 36 | | |
|---|
| 37 | 37 | | |
|---|
| 38 | 38 | | |
|---|
| 39 | 39 | | |
|---|
| 40 | 40 | | |
|---|
| 41 | 41 | | |
|---|
| 42 | 42 | | SB 1499 |
|---|
| 43 | 43 | | |
|---|
| 44 | 44 | | |
|---|
| 45 | 45 | | |
|---|
| 46 | 46 | | Introduced by |
|---|
| 47 | 47 | | |
|---|
| 48 | 48 | | Senator Shope |
|---|
| 49 | 49 | | |
|---|
| 50 | 50 | | |
|---|
| 51 | 51 | | |
|---|
| 52 | 52 | | |
|---|
| 53 | 53 | | |
|---|
| 54 | 54 | | |
|---|
| 55 | 55 | | |
|---|
| 56 | 56 | | |
|---|
| 57 | 57 | | |
|---|
| 58 | 58 | | |
|---|
| 59 | 59 | | |
|---|
| 60 | 60 | | |
|---|
| 61 | 61 | | |
|---|
| 62 | 62 | | |
|---|
| 63 | 63 | | |
|---|
| 64 | 64 | | |
|---|
| 65 | 65 | | |
|---|
| 66 | 66 | | An Act |
|---|
| 67 | 67 | | |
|---|
| 68 | 68 | | |
|---|
| 69 | 69 | | |
|---|
| 70 | 70 | | amending sections 5-1202 and 5-1304, Arizona Revised Statutes; relating to fantasy sports and event wagering. |
|---|
| 71 | 71 | | |
|---|
| 72 | 72 | | |
|---|
| 73 | 73 | | |
|---|
| 74 | 74 | | |
|---|
| 75 | 75 | | |
|---|
| 76 | 76 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
|---|
| 77 | 77 | | |
|---|
| 78 | 78 | | |
|---|
| 79 | 79 | | |
|---|
| 80 | 80 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 5-1202, Arizona Revised Statutes, is amended to read: START_STATUTE5-1202. Fantasy sports contests; exceptions; rules; licensure A. Except as otherwise provided in this section, a person may not offer fantasy sports contests in this state unless the person is licensed by the department as a fantasy sports contest operator. B. An individual may offer one or more fantasy sports contests without a license if all of the following apply: 1. The fantasy sports contests are not made available to the general public. 2. Each of the fantasy sports contests is limited to not more than fifteen total fantasy sports contest players. 3. The individual collects not more than $10,000 in total entry fees for all fantasy sports contests offered in a calendar year, at least ninety-five percent of which are awarded to the fantasy sports contest players. C. An Indian tribe that lawfully conducts class III gaming pursuant to a tribal-state gaming compact with this state, directly or through a third-party operator, may offer and conduct fantasy sports contests without applying for or holding a license pursuant to this section if all activities of the fantasy sports contest occur within the boundary of its Indian lands and the Indian tribe complies with any regulations that are included in the compact or its appendices regarding fantasy sports contests. D. To ensure the integrity of fantasy sports contests, the department has jurisdiction over each person involved in conducting a fantasy sports contest. The department may adopt rules related to conducting fantasy sports contests, including rules prescribing penalties for violating this chapter or any rules adopted under this chapter. E. Every applicant for licensure shall submit a completed application, along with any required information, to the department of gaming. The department of gaming shall determine the form and content of the application. Each application shall be accompanied by the applicant's current photograph and the fee required by the department of gaming. The applicant applicant's officers, directors, members, partners, principals and individual owners of ten percent or more must also submit a full set of fingerprints to the department of gaming for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. the department of gaming shall submit this fingerprint data to the department of public safety. The department of public safety may shall exchange this fingerprint data with the federal bureau of investigation. F. The information required by the department shall include documentation of all of the following: 1. The name of the applicant. 2. The location of the applicant's principal place of business. 3. The applicant's telephone number. 4. The applicant's social security number or, if applicable, the applicant's federal tax identification number. 5. The name and address of each individual that holds a ten percent or more ownership interest in the applicant or in shares of the applicant. 6. The applicant's criminal record, if any, or if the applicant is a business entity, on request, any criminal record of an individual who is a director, officer or key employee of, or any individual who has a ten percent or more ownership interest in, the applicant. 7. Any ownership interest that a director, officer, key employee or individual owner of ten percent or more of the applicant holds in a person that is or was a fantasy sports contest operator or similar entity in any jurisdiction. 8. An identification of any business, including, if applicable, the state of incorporation or registration, in which an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant, has an equity interest of five percent or more. 9. Whether an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant has ever applied for or been granted any license, registration or certificate issued by a licensing authority in this state or any other jurisdiction for a gaming activity. 10. Whether an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant has filed or been served with a complaint or other notice filed by a public body regarding the delinquency in payment of or dispute over filings concerning the payment of any tax required under federal, state or local law, including the amount of tax, the type of tax, the taxing agency and the time periods involved. 11. A description of any physical facility operated by the applicant in this state, the employees who work at the facility and the nature of the business conducted at the facility. 12. Information sufficient to show, as determined by the department, that the applicant can meet the requirements of procedures submitted by the applicant under section 5-1203 and under any rules adopted under this chapter. G. The department may require licensure of a holding company, a management company or any other person it considers sufficiently connected to the fantasy sports contest operator if that licensure is necessary to preserve the integrity of fantasy sports contests and protect fantasy sports contest players. h. The department of gaming may require fantasy contest operator employees, contractors, management companies, holding companies and suppliers, including ancillary suppliers, to submit a full set of fingerprints to the department of gaming for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The Department of gaming shall submit this fingerprint data to the DEPARTMENT of public safety. The department of public safety shall exchange this fingerprint data with the federal bureau of investigation. i. The department is authorized to receive state and federal criminal records information generated as a result of information submitted pursuant to this section. H. j. A license issued under this section is valid for two years. The department shall renew a license biennially if the applicant demonstrates continued eligibility for licensure under this chapter and pays the renewal fee. Notwithstanding this subsection, the department may investigate a licensee at any time the department determines it is necessary to ensure that the licensee remains in compliance with this chapter and the rules adopted pursuant to this chapter. I. k. The department shall establish the initial license fee and the license renewal fee. The department may assess investigative costs if the cost of a licensure investigation exceeds the amount of the initial license or renewal fee. J. l. On receipt of a completed application and the required fee, the department shall conduct the necessary background investigation to determine if the applicant meets the qualifications for licensure. On completion of the necessary background investigation, the department shall either issue a license or deny the application. If the application for licensure is denied, a statement setting forth the grounds for denial shall be forwarded to the applicant together with all other documents relied on by the department, to the extent allowed by law. END_STATUTE Sec. 2. Section 5-1304, Arizona Revised Statutes, is amended to read: START_STATUTE5-1304. Licensure; application A. The department may issue not more than ten event wagering operator licenses to applicants other than an Indian tribe. The department may issue not more than ten event wagering operator licenses to Indian tribes in this state if the Indian tribe receiving a license has signed the most recent tribal-state gaming compact and any applicable appendices or amendments. The department shall issue event wagering operator licenses only to applicants that are either of the following in compliance with this chapter: 1. An owner of an Arizona professional sports team or franchise, operator of a sports facility that hosts an annual tournament on the PGA tour, promoter of a national association for stock car auto racing national touring race conducted in this state or the owner's, operator's or promoter's designee, contracted to operate event wagering for both retail event wagering at a sports facility or its complex as prescribed in subsection D of this section and mobile event wagering throughout the state. If a designee is used, the designee shall be considered the applicant and be subject to any requirements of the application process rather than the owner, operator or promoter. 2. An Indian tribe, or an entity fully owned by an Indian tribe, or its designee contracted to operate only mobile event wagering outside the boundaries of its Indian lands and throughout the state if it has signed the most recent tribal-state gaming compact and any applicable appendices or amendments. B. An applicant for an event wagering license shall submit an application in a form prescribed by the department, including all of the following: 1. The identification of the applicant's principal owners that own more than five percent of the company, the partners, the members of its board of directors and the officers, the identification of any holding company, including its principals, that is engaged by the applicant to assist in the management or operation of event wagering, if applicable, and information to verify that the applicant is qualified to hold a license under subsection A of this section. 2. A full set of fingerprints for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of gaming shall exchange this fingerprint data with the department of public safety. may The department of public safety shall exchange this fingerprint data with the federal bureau of investigation. The fingerprints shall be furnished by the applicant's officers and directors, if a corporation, members, if a limited liability company, and partners, if a partnership, for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. An applicant convicted of a disqualifying offense may not be licensed. 3. A notice and description of civil judgments obtained against the applicant pertaining to antitrust or security regulation laws of the federal government, of this state or of any other state, jurisdiction, province or country. 4. If the applicant has conducted gaming operations in a jurisdiction that allows such activity, letters of compliance from the regulatory body that regulates event wagering, sports wagering or any other gaming activity that the applicant is licensed for, conducts or operates under jurisdiction of the regulatory body. 5. Information, documentation and assurances concerning financial background and resources of the applicant or its management services provider as may be required to establish by clear and convincing evidence the financial stability and responsibility of the applicant or its management services provider, including bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies, and business and personal accounting and check records and ledgers. Each applicant or its management services provider, in writing, shall authorize the examination of all bank accounts and records as may be deemed necessary by the department. The department may consider any relevant evidence of financial stability. The applicant is presumed to be financially stable if the applicant or its management services provider establishes by clear and convincing evidence that it meets each of the following standards: (a) The ability to ensure the financial integrity of event wagering operations by maintaining a bankroll or equivalent provisions adequate to pay winning wagers to bettors when due. An applicant is presumed to have met this standard if the applicant or its management services provider maintains, on a daily basis, a bankroll or equivalent provisions in an amount that is at least equal to the average daily minimum bankroll or equivalent provisions, calculated on a monthly basis, for the corresponding month in the previous year. (b) The ability to meet ongoing operating expenses that are essential to maintaining continuous and stable event wagering operations. (c) The ability to pay, as and when due, all state and federal taxes. 6. Information to establish by clear and convincing evidence that the applicant or its management services provider has sufficient business ability and gaming experience as to establish the likelihood of creating and maintaining a successful and stable event wagering operation. 7. Information regarding the financial standing of the applicant, including each person or entity that has provided loans or financing to the applicant or its management services provider. 8. Information on the amount of adjusted gross event wagering receipts and associated adjusted gross receipts that the applicant expects to generate. 9. A nonrefundable application fee or annual licensing fee as prescribed by section 5-1310. 10. Any additional information required by the department to determine the financial and operational ability to fulfill its obligations as an event wagering operator. C. Any applicant for licensure agrees to be subject to state jurisdiction to the extent necessary to determine the applicant's qualification to hold a license, including all necessary administrative procedures, hearings and appeals as provided in title 41, chapter 6 and department rules. D. A license issued by the department pursuant to this section authorizes an event wagering operator identified in subsection A, paragraph 2 of this section to operate only mobile event wagering or an event wagering operator identified in subsection A, paragraph 1 of this section to offer both: 1. Event wagering in this state through an event wagering facility within a five-block radius of the event wagering operator's sports facility or, in the case of a designee, the sports facility or of the designating owner, operator or promoter of a professional sports team, event or franchise. An event wagering facility within one mile of a tribal gaming facility must be: (a) Within a sports complex that includes retail centers that are adjacent to the sports facility. (b) Not more than one-fourth of a mile from a sports facility within the sports complex. 2. Event wagering through a mobile platform as specified by the department. A licensed event wagering operator or its designated management services provider may offer event wagering through an event wagering platform as specified by the department. E. The department of gaming may require employees and contractors of event wagering operators and designees, limited event wagering operators, management services providers and event wagering suppliers, including ancillary suppliers, to submit a full set of fingerprints to the department of gaming for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and public law 92-544. the department of gaming shall submit the fingerprint data to the department of public safety. The department of public safety shall exchange this fingerprint data with the federal bureau of investigation. F. The department is authorized to receive state and federal criminal records information generated as a result of information submitted pursuant to this section. E. g. A license issued under this section is valid for five years if the licensee submits an annual license fee, maintains the qualifications to obtain a license under this section and substantially complies with this chapter and other laws and rules relating to event wagering. A licensee may renew its license by submitting an application in a form prescribed by department rule and the application fee. A license may not be renewed if it is determined by the department that the event wagering operator has not substantially complied with this chapter or any other law regulating its event wagering operations or other operations licensed by the department. A licensee shall submit the nonrefundable annual license and application fees prescribed in section 5-1310 with its application for the renewal of its license. F. h. A person may not apply for or obtain more than one event wagering operator license. A management services provider may offer services to more than one event wagering operator. END_STATUTE |
|---|
| 81 | 81 | | |
|---|
| 82 | 82 | | Be it enacted by the Legislature of the State of Arizona: |
|---|
| 83 | 83 | | |
|---|
| 84 | 84 | | Section 1. Section 5-1202, Arizona Revised Statutes, is amended to read: |
|---|
| 85 | 85 | | |
|---|
| 86 | 86 | | START_STATUTE5-1202. Fantasy sports contests; exceptions; rules; licensure |
|---|
| 87 | 87 | | |
|---|
| 88 | 88 | | A. Except as otherwise provided in this section, a person may not offer fantasy sports contests in this state unless the person is licensed by the department as a fantasy sports contest operator. |
|---|
| 89 | 89 | | |
|---|
| 90 | 90 | | B. An individual may offer one or more fantasy sports contests without a license if all of the following apply: |
|---|
| 91 | 91 | | |
|---|
| 92 | 92 | | 1. The fantasy sports contests are not made available to the general public. |
|---|
| 93 | 93 | | |
|---|
| 94 | 94 | | 2. Each of the fantasy sports contests is limited to not more than fifteen total fantasy sports contest players. |
|---|
| 95 | 95 | | |
|---|
| 96 | 96 | | 3. The individual collects not more than $10,000 in total entry fees for all fantasy sports contests offered in a calendar year, at least ninety-five percent of which are awarded to the fantasy sports contest players. |
|---|
| 97 | 97 | | |
|---|
| 98 | 98 | | C. An Indian tribe that lawfully conducts class III gaming pursuant to a tribal-state gaming compact with this state, directly or through a third-party operator, may offer and conduct fantasy sports contests without applying for or holding a license pursuant to this section if all activities of the fantasy sports contest occur within the boundary of its Indian lands and the Indian tribe complies with any regulations that are included in the compact or its appendices regarding fantasy sports contests. |
|---|
| 99 | 99 | | |
|---|
| 100 | 100 | | D. To ensure the integrity of fantasy sports contests, the department has jurisdiction over each person involved in conducting a fantasy sports contest. The department may adopt rules related to conducting fantasy sports contests, including rules prescribing penalties for violating this chapter or any rules adopted under this chapter. |
|---|
| 101 | 101 | | |
|---|
| 102 | 102 | | E. Every applicant for licensure shall submit a completed application, along with any required information, to the department of gaming. The department of gaming shall determine the form and content of the application. Each application shall be accompanied by the applicant's current photograph and the fee required by the department of gaming. The applicant applicant's officers, directors, members, partners, principals and individual owners of ten percent or more must also submit a full set of fingerprints to the department of gaming for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. the department of gaming shall submit this fingerprint data to the department of public safety. The department of public safety may shall exchange this fingerprint data with the federal bureau of investigation. |
|---|
| 103 | 103 | | |
|---|
| 104 | 104 | | F. The information required by the department shall include documentation of all of the following: |
|---|
| 105 | 105 | | |
|---|
| 106 | 106 | | 1. The name of the applicant. |
|---|
| 107 | 107 | | |
|---|
| 108 | 108 | | 2. The location of the applicant's principal place of business. |
|---|
| 109 | 109 | | |
|---|
| 110 | 110 | | 3. The applicant's telephone number. |
|---|
| 111 | 111 | | |
|---|
| 112 | 112 | | 4. The applicant's social security number or, if applicable, the applicant's federal tax identification number. |
|---|
| 113 | 113 | | |
|---|
| 114 | 114 | | 5. The name and address of each individual that holds a ten percent or more ownership interest in the applicant or in shares of the applicant. |
|---|
| 115 | 115 | | |
|---|
| 116 | 116 | | 6. The applicant's criminal record, if any, or if the applicant is a business entity, on request, any criminal record of an individual who is a director, officer or key employee of, or any individual who has a ten percent or more ownership interest in, the applicant. |
|---|
| 117 | 117 | | |
|---|
| 118 | 118 | | 7. Any ownership interest that a director, officer, key employee or individual owner of ten percent or more of the applicant holds in a person that is or was a fantasy sports contest operator or similar entity in any jurisdiction. |
|---|
| 119 | 119 | | |
|---|
| 120 | 120 | | 8. An identification of any business, including, if applicable, the state of incorporation or registration, in which an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant, has an equity interest of five percent or more. |
|---|
| 121 | 121 | | |
|---|
| 122 | 122 | | 9. Whether an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant has ever applied for or been granted any license, registration or certificate issued by a licensing authority in this state or any other jurisdiction for a gaming activity. |
|---|
| 123 | 123 | | |
|---|
| 124 | 124 | | 10. Whether an applicant, director, officer, key employee or individual owner of ten percent or more of the applicant has filed or been served with a complaint or other notice filed by a public body regarding the delinquency in payment of or dispute over filings concerning the payment of any tax required under federal, state or local law, including the amount of tax, the type of tax, the taxing agency and the time periods involved. |
|---|
| 125 | 125 | | |
|---|
| 126 | 126 | | 11. A description of any physical facility operated by the applicant in this state, the employees who work at the facility and the nature of the business conducted at the facility. |
|---|
| 127 | 127 | | |
|---|
| 128 | 128 | | 12. Information sufficient to show, as determined by the department, that the applicant can meet the requirements of procedures submitted by the applicant under section 5-1203 and under any rules adopted under this chapter. |
|---|
| 129 | 129 | | |
|---|
| 130 | 130 | | G. The department may require licensure of a holding company, a management company or any other person it considers sufficiently connected to the fantasy sports contest operator if that licensure is necessary to preserve the integrity of fantasy sports contests and protect fantasy sports contest players. |
|---|
| 131 | 131 | | |
|---|
| 132 | 132 | | h. The department of gaming may require fantasy contest operator employees, contractors, management companies, holding companies and suppliers, including ancillary suppliers, to submit a full set of fingerprints to the department of gaming for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The Department of gaming shall submit this fingerprint data to the DEPARTMENT of public safety. The department of public safety shall exchange this fingerprint data with the federal bureau of investigation. |
|---|
| 133 | 133 | | |
|---|
| 134 | 134 | | i. The department is authorized to receive state and federal criminal records information generated as a result of information submitted pursuant to this section. |
|---|
| 135 | 135 | | |
|---|
| 136 | 136 | | H. j. A license issued under this section is valid for two years. The department shall renew a license biennially if the applicant demonstrates continued eligibility for licensure under this chapter and pays the renewal fee. Notwithstanding this subsection, the department may investigate a licensee at any time the department determines it is necessary to ensure that the licensee remains in compliance with this chapter and the rules adopted pursuant to this chapter. |
|---|
| 137 | 137 | | |
|---|
| 138 | 138 | | I. k. The department shall establish the initial license fee and the license renewal fee. The department may assess investigative costs if the cost of a licensure investigation exceeds the amount of the initial license or renewal fee. |
|---|
| 139 | 139 | | |
|---|
| 140 | 140 | | J. l. On receipt of a completed application and the required fee, the department shall conduct the necessary background investigation to determine if the applicant meets the qualifications for licensure. On completion of the necessary background investigation, the department shall either issue a license or deny the application. If the application for licensure is denied, a statement setting forth the grounds for denial shall be forwarded to the applicant together with all other documents relied on by the department, to the extent allowed by law. END_STATUTE |
|---|
| 141 | 141 | | |
|---|
| 142 | 142 | | Sec. 2. Section 5-1304, Arizona Revised Statutes, is amended to read: |
|---|
| 143 | 143 | | |
|---|
| 144 | 144 | | START_STATUTE5-1304. Licensure; application |
|---|
| 145 | 145 | | |
|---|
| 146 | 146 | | A. The department may issue not more than ten event wagering operator licenses to applicants other than an Indian tribe. The department may issue not more than ten event wagering operator licenses to Indian tribes in this state if the Indian tribe receiving a license has signed the most recent tribal-state gaming compact and any applicable appendices or amendments. The department shall issue event wagering operator licenses only to applicants that are either of the following in compliance with this chapter: |
|---|
| 147 | 147 | | |
|---|
| 148 | 148 | | 1. An owner of an Arizona professional sports team or franchise, operator of a sports facility that hosts an annual tournament on the PGA tour, promoter of a national association for stock car auto racing national touring race conducted in this state or the owner's, operator's or promoter's designee, contracted to operate event wagering for both retail event wagering at a sports facility or its complex as prescribed in subsection D of this section and mobile event wagering throughout the state. If a designee is used, the designee shall be considered the applicant and be subject to any requirements of the application process rather than the owner, operator or promoter. |
|---|
| 149 | 149 | | |
|---|
| 150 | 150 | | 2. An Indian tribe, or an entity fully owned by an Indian tribe, or its designee contracted to operate only mobile event wagering outside the boundaries of its Indian lands and throughout the state if it has signed the most recent tribal-state gaming compact and any applicable appendices or amendments. |
|---|
| 151 | 151 | | |
|---|
| 152 | 152 | | B. An applicant for an event wagering license shall submit an application in a form prescribed by the department, including all of the following: |
|---|
| 153 | 153 | | |
|---|
| 154 | 154 | | 1. The identification of the applicant's principal owners that own more than five percent of the company, the partners, the members of its board of directors and the officers, the identification of any holding company, including its principals, that is engaged by the applicant to assist in the management or operation of event wagering, if applicable, and information to verify that the applicant is qualified to hold a license under subsection A of this section. |
|---|
| 155 | 155 | | |
|---|
| 156 | 156 | | 2. A full set of fingerprints for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of gaming shall exchange this fingerprint data with the department of public safety. may The department of public safety shall exchange this fingerprint data with the federal bureau of investigation. The fingerprints shall be furnished by the applicant's officers and directors, if a corporation, members, if a limited liability company, and partners, if a partnership, for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. An applicant convicted of a disqualifying offense may not be licensed. |
|---|
| 157 | 157 | | |
|---|
| 158 | 158 | | 3. A notice and description of civil judgments obtained against the applicant pertaining to antitrust or security regulation laws of the federal government, of this state or of any other state, jurisdiction, province or country. |
|---|
| 159 | 159 | | |
|---|
| 160 | 160 | | 4. If the applicant has conducted gaming operations in a jurisdiction that allows such activity, letters of compliance from the regulatory body that regulates event wagering, sports wagering or any other gaming activity that the applicant is licensed for, conducts or operates under jurisdiction of the regulatory body. |
|---|
| 161 | 161 | | |
|---|
| 162 | 162 | | 5. Information, documentation and assurances concerning financial background and resources of the applicant or its management services provider as may be required to establish by clear and convincing evidence the financial stability and responsibility of the applicant or its management services provider, including bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies, and business and personal accounting and check records and ledgers. Each applicant or its management services provider, in writing, shall authorize the examination of all bank accounts and records as may be deemed necessary by the department. The department may consider any relevant evidence of financial stability. The applicant is presumed to be financially stable if the applicant or its management services provider establishes by clear and convincing evidence that it meets each of the following standards: |
|---|
| 163 | 163 | | |
|---|
| 164 | 164 | | (a) The ability to ensure the financial integrity of event wagering operations by maintaining a bankroll or equivalent provisions adequate to pay winning wagers to bettors when due. An applicant is presumed to have met this standard if the applicant or its management services provider maintains, on a daily basis, a bankroll or equivalent provisions in an amount that is at least equal to the average daily minimum bankroll or equivalent provisions, calculated on a monthly basis, for the corresponding month in the previous year. |
|---|
| 165 | 165 | | |
|---|
| 166 | 166 | | (b) The ability to meet ongoing operating expenses that are essential to maintaining continuous and stable event wagering operations. |
|---|
| 167 | 167 | | |
|---|
| 168 | 168 | | (c) The ability to pay, as and when due, all state and federal taxes. |
|---|
| 169 | 169 | | |
|---|
| 170 | 170 | | 6. Information to establish by clear and convincing evidence that the applicant or its management services provider has sufficient business ability and gaming experience as to establish the likelihood of creating and maintaining a successful and stable event wagering operation. |
|---|
| 171 | 171 | | |
|---|
| 172 | 172 | | 7. Information regarding the financial standing of the applicant, including each person or entity that has provided loans or financing to the applicant or its management services provider. |
|---|
| 173 | 173 | | |
|---|
| 174 | 174 | | 8. Information on the amount of adjusted gross event wagering receipts and associated adjusted gross receipts that the applicant expects to generate. |
|---|
| 175 | 175 | | |
|---|
| 176 | 176 | | 9. A nonrefundable application fee or annual licensing fee as prescribed by section 5-1310. |
|---|
| 177 | 177 | | |
|---|
| 178 | 178 | | 10. Any additional information required by the department to determine the financial and operational ability to fulfill its obligations as an event wagering operator. |
|---|
| 179 | 179 | | |
|---|
| 180 | 180 | | C. Any applicant for licensure agrees to be subject to state jurisdiction to the extent necessary to determine the applicant's qualification to hold a license, including all necessary administrative procedures, hearings and appeals as provided in title 41, chapter 6 and department rules. |
|---|
| 181 | 181 | | |
|---|
| 182 | 182 | | D. A license issued by the department pursuant to this section authorizes an event wagering operator identified in subsection A, paragraph 2 of this section to operate only mobile event wagering or an event wagering operator identified in subsection A, paragraph 1 of this section to offer both: |
|---|
| 183 | 183 | | |
|---|
| 184 | 184 | | 1. Event wagering in this state through an event wagering facility within a five-block radius of the event wagering operator's sports facility or, in the case of a designee, the sports facility or of the designating owner, operator or promoter of a professional sports team, event or franchise. An event wagering facility within one mile of a tribal gaming facility must be: |
|---|
| 185 | 185 | | |
|---|
| 186 | 186 | | (a) Within a sports complex that includes retail centers that are adjacent to the sports facility. |
|---|
| 187 | 187 | | |
|---|
| 188 | 188 | | (b) Not more than one-fourth of a mile from a sports facility within the sports complex. |
|---|
| 189 | 189 | | |
|---|
| 190 | 190 | | 2. Event wagering through a mobile platform as specified by the department. A licensed event wagering operator or its designated management services provider may offer event wagering through an event wagering platform as specified by the department. |
|---|
| 191 | 191 | | |
|---|
| 192 | 192 | | E. The department of gaming may require employees and contractors of event wagering operators and designees, limited event wagering operators, management services providers and event wagering suppliers, including ancillary suppliers, to submit a full set of fingerprints to the department of gaming for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and public law 92-544. the department of gaming shall submit the fingerprint data to the department of public safety. The department of public safety shall exchange this fingerprint data with the federal bureau of investigation. |
|---|
| 193 | 193 | | |
|---|
| 194 | 194 | | F. The department is authorized to receive state and federal criminal records information generated as a result of information submitted pursuant to this section. |
|---|
| 195 | 195 | | |
|---|
| 196 | 196 | | E. g. A license issued under this section is valid for five years if the licensee submits an annual license fee, maintains the qualifications to obtain a license under this section and substantially complies with this chapter and other laws and rules relating to event wagering. A licensee may renew its license by submitting an application in a form prescribed by department rule and the application fee. A license may not be renewed if it is determined by the department that the event wagering operator has not substantially complied with this chapter or any other law regulating its event wagering operations or other operations licensed by the department. A licensee shall submit the nonrefundable annual license and application fees prescribed in section 5-1310 with its application for the renewal of its license. |
|---|
| 197 | 197 | | |
|---|
| 198 | 198 | | F. h. A person may not apply for or obtain more than one event wagering operator license. A management services provider may offer services to more than one event wagering operator. END_STATUTE |
|---|