Current through Register Vol. 50, No. 9, September 20, 2024
A. Wagering on historical horse races is
hereby authorized and may be conducted in accordance with
R.S.
4:149 and
4:213.
B. Wagering on historical horse races shall
only be conducted by associations licensed to operate a pari-mutuel facility,
pursuant to
R.S.
4:149, and/or by offtrack wagering
facilities, pursuant to
R.S.
4:213.
C. The commission may create classifications
of licenses and establish a fee structure for license categories. Applicants
for each category of license must apply on forms approved by the commission to
be accompanied by the corresponding license application fee. All application
fees are non-refundable.
1. The following
license fees have been approved by the commission:
a. applicant association
(initial)-$125,000;
b. license fee
per establishment/OTB (initial)- $7,000;
c. wagering vendor license
(initial)-$2,000;
d. wagering
vendor license (annual renewal)- $500;
e. background investigation-up to
$4,000;
f. non-key person license
(initial)-$200; and
g. key person
license (initial)-$1,000.
D. An application for a license under
R.S.
4:141 et seq. and this Chapter is a request
by the applicant seeking a revocable privilege. A license may be granted by the
commission if the applicant meets the licensing requirements of the act and
these rules. The commission may require holders of a current pari-mutuel
wagering facility license to complete an updated application form and undergo
additional background screening prior to being authorized to conduct historical
horse racing. The commission may issue new licenses to such existing license
holders to include the conditions and licensing requirements contained in this
Chapter.
E. An applicant for a
license under
R.S.
4:141 et seq. and this Chapter shall, at all
times, have the burden of demonstrating to the commission, by clear and
convincing evidence, that the applicant is eligible, qualified, and suitable to
be granted and retain the license for which application is made under the
applicable licensing standards and requirements of
R.S.
4:141 et seq. and the Rules of
Racing.
F. A license
issued by the commission under
R.S.
4:141 et seq. or this Chapter is a revocable
privilege granted by the commission. A person who holds a license does not
acquire, and shall not be deemed to acquire, a vested property right or other
right, in the license.
G.
Applicants for any license issued by the commission under the provisions of
this Chapter must pay all fees and assessments prescribed either by law or the
Rules of Racing in the manner and at the time prescribed by
law and/or the Rules of Racing. Application fees and
applicable assessments for all historical horse racing wagering licenses and
must be paid by the applicant at the time that an application is filed with the
commission. None of the licenses listed in this Chapter may be transferred or
assigned.
H. The commission may
refuse to take final action on any application if all license regulation,
investigation, and fingerprint fees have not been paid in full. The commission
may deny the application if the applicant refuses or fails to pay all such
fees. Additionally, an applicant who has refused or failed to pay the required
costs will not be eligible to file any other application with the commission
until all such fees are paid in full. Neither the license fee or regulation
fees nor any other fee is refundable.
I. Materials, or portions of materials,
submitted under
R.S.
4:141 et seq. or these rules may be
identified as confidential by a licensee, an applicant for a license, or any
other person. If the materials are exempt from disclosure by statute, the
materials shall not be disclosed by the commission, except to other
jurisdictions or law enforcement agencies as provided in
R.S.
4:141 et seq.
J. An applicant or licensee shall accept any
risk of adverse publicity, public notice, notoriety, embarrassment, criticism,
financial loss, or other unfavorable or harmful consequences that may occur in
connection with, or as a result of, the application and licensing process or
the public disclosure of information submitted to the commission with a license
application or at the commission's request under
R.S.
4:141 et seq. and the Rules of
Racing.
K. Licensees have
a continuing obligation to demonstrate suitability to hold a license by
complying with
R.S.
4:141 et seq., the Rules of
Racing, and all federal, state, and local laws relating to the
suitability of the licensee. The commission may reopen the investigation of a
licensee at any time. The licensee shall be assessed fees, if any, to cover the
additional costs of the investigation.
L. An applicant or licensee may claim any
privilege afforded by the Constitution or laws of the United States or of the
State of Louisiana in refusing to answer questions or provide information
requested by the commission. However, a claim of privilege with respect to any
testimony or evidence pertaining to the eligibility, qualifications, or
suitability of an applicant or licensee to be granted or hold a license under
R.S.
4:141 et seq. and the Rules of
Racing may constitute cause for denial, suspension, revocation or
restriction of the license.
M. An
applicant and licensee shall have a continuing duty to do all of the following:
1. promptly notify the commission in writing
within 10 business days of a material change in the information submitted in
the license application submitted by the applicant or licensee or a change in
circumstance, that may render the applicant or licensee ineligible,
unqualified, or unsuitable to hold the license under the licensing standards
and requirements of the act and these rules; and
2. provide any information requested by the
commission relating to licensing or regulation, cooperate with the commission
in investigations, hearings, and enforcement and disciplinary actions within
the period of time requested by the commission, and comply with all conditions,
restrictions, requirements, orders, and rulings of the commission in accordance
with
R.S.
4:141 et seq. and the Rules of
Racing.
N. The
following persons are required to hold an occupational license:
1. a person employed by an association or
management company and whose duties are directly related to the conduct of
historical horse racing;
2. all
security personnel;
3. employees
whose duties are performed off the wagering facility and whose duties include
the handling of money or performing accounting and auditing functions that
involve money obtained as a result of historical horse racing;
a. An occupational license level one is the
highest level of occupational license. An occupational licensee may perform any
activity included within the occupational licensee's level of occupational
license or any lower level of occupational license.
b. An employee of an association or
management company who does not hold an occupational license shall not perform
any duties relating to the conduct of historical horse racing at any
time.
c. A person under 18 years of
age shall not hold an occupational license of any level. Applicants for
occupational license level one must be at least 21 years of age.
d. An application for an occupational license
shall not be processed by the commission unless the applicant has an agreement
or a statement of intent hire with an association or management company
licensee or applicant, documenting that the applicant will be employed upon
receiving the appropriate occupational license.
e. Employees of an authorized gaming operator
who perform the following functions, regardless of title, shall obtain an
occupational license level one:
i. audit
director;
ii. chief regulatory
compliance officer;
iii.
information technology director and managers;
iv. security director;
v. surveillance director;
vi. chief financial officer or controller, or
both;
vii. historical racing
operations director;
viii. general
manager;
ix. assistant general
manager; or
x. any other employee
of an authorized gaming operator whom the commission deems necessary, to ensure
compliance with
R.S.
4:141 et seq. and the Rules of
Racing, to hold an occupational license level one.
f. A person holding a level one license
employed by an association or management company may not be employed
concurrently by a wagering vendor, except that a person holding a level one
license may be employed by a licensed management company that is also licensed
as a wagering vendor.
4.
employees of an association who perform the following functions, regardless of
title, shall obtain an occupational license level two:
a. security personnel and surveillance
personnel;
b. any employee of an
association whose duties are performed are directly related to the conducting
of historical horse racing;
c. any
employee of an association whose duties include accounting and auditing
functions and whose duties relate to money obtained as a result of historical
horse racing; and
d. any other
employee of an association whom the commission deems necessary, to ensure
compliance with
R.S.
4:141 et seq. and the Rules of
Racing, to hold an occupational license level two;
5. the term of all occupational license
levels is three years and requires an initial license application fee to be
determined by the commission and an annual license fee.
O. Applicants for a historical horse racing
wagering license, an occupational license, and applicants for renewals of such
licenses shall comply with the following procedures:
1. Every application for a license category
authorized by the commission must be submitted on forms supplied or approved by
the commission and must contain such information and documents as required for
such license category.
2. The
applicant must file with the application all required supplemental
forms.
3. Upon request of the
commission, the applicant must further supplement any information provided in
the application. The applicant must provide all requested documents, records,
supporting data, and other information within the time period specified in the
request. If the applicant fails to provide the requested information within the
required time period as set forth in the request or the Rules of
Racing, the commission may deny the application unless good cause is
shown.
4. All information required
to be included in an application must be true and complete as of the date of
commission action sought by the applicant. If there is any change in the
information contained in the application, the applicant must file a written
amendment within 30 days of the change of information in accordance with the
Rules of Racing.
5. The application and any amendments must be
sworn to or affirmed by the applicant. If any document is signed by an attorney
for the applicant, the signature must certify that the attorney has read the
document and that, to the best of the attorney's knowledge, information and
belief, based on diligent inquiry, the contents of the documents supplied are
true.
6. The applicant must
cooperate fully with the commission with respect to the background
investigation of the applicant, including, upon request, making available any
and all of its books and records for inspection. The commission will examine
the background, personal history, financial associations, character, record,
and reputation of the applicant to the extent the commission
determines.
7. The commission will
automatically deny the application of any applicant that refuses to submit to a
background investigation as required pursuant to
R.S.
4:141 et seq. and the Rules of
Racing.
8. Neither the
state, the commission, any agency with which the commission contracts to
conduct background investigations, nor the employees of any of the foregoing,
may be held liable for any inaccurate information obtained through such an
investigation.
P. In
addition to specific conditions imposed in any license issued by the commission
under these rules, any license issued by the commission for the operation of
historical horse racing wagering is subject to the following conditions.
1. With respect to a historical horse racing
wagering operator's license, the licensed operator will at all times make its
wagering facility available for inspection by the commission or their
authorized representatives with or without prior announcement. Additionally,
the licensed operator understands that a commission agent is authorized to be
present anywhere within the wagering facility each day any time during
operation of historical horse racing wagering, and whenever else deemed
appropriate by the director of enforcement.
2. The operator licensee consents to the
examination of all accounts, bank accounts, and records of, or under the
control of the operator licensee, or any entity in which the operator licensee
has a direct or indirect controlling interest. Upon request of the commission
or its authorized representative, the operator licensee must authorize all
third parties in possession or control of the requested documents to allow the
commission or commission agents to examine such documents.
3. The operator licensee will observe and
enforce all rules, regulations, decisions, and orders issued by the commission.
The operator's license is granted on the condition that the operator licensee,
management, and its employees will obey all decisions and orders of the
commission. Each operator licensee will have a continuing duty to report to the
commission enforcement division any violation of the Rules of
Racing or applicable laws of the State of Louisiana by the operator
licensee, management, and its employees. Failure to report violations will
result in disciplinary action against the operator licensee. The licensee is
required to notify the commission in writing within 30 days of the
violation.
Q. The
commission may refuse to issue an operator licensee or deny any operator
licensee application on any grounds deemed reasonable by the commission.
Without limiting the foregoing, the commission may deny the application on any
of the following grounds:
1. evidence of an
applicant submitting an untrue or misleading statement of material fact, or
willful omission of any material fact, in any application, statement, or notice
filed with the commission, made in connection with any investigation, including
the background investigation, or otherwise made to the commission or its
staff;
2. conviction of any felony
in any jurisdiction by key persons of the applicant or by the applicant which
may affect the applicant's ability to properly perform his or her duties or
reflect unfavorably on the integrity of a historical horse racing wagering
facility;
3. conviction of any
gambling offense in any jurisdiction by key persons or by the
applicant;
4. entry of any civil or
administrative judgment against the applicant or its key persons that is based,
in whole or in part, on conduct that allegedly constituted a felony crime in
the state or other jurisdiction in which the conduct occurred that may affect
the applicant's ability to properly perform his or her duties or reflect
unfavorably on the integrity of a historical horse racing wagering facility, or
involved a gambling violation(s);
5. association by the applicant, applicant's
spouse or members of applicant's immediate household with persons or businesses
of known criminal background or persons of disreputable character that may
adversely affect the general credibility, security, integrity, honesty,
fairness or reputation of the historical horse racing wagering
industry;
6. any aspect of the
applicant's or any key person's past conduct, character, or behavior that the
commission determines would adversely affect the credibility, security,
integrity, honesty, fairness or reputation of the proposed historical horse
racing wagering activity;
7.
failure of the applicant or its key persons to demonstrate adequate business
ability and experience to establish, operate, and maintain the business for the
type of activity for which application is made;
8. failure to demonstrate adequate financing
for the operation proposed in the application;
9. failure to satisfy any requirement for
application or to timely respond to any request by the commission for
additional information;
10.
permanent suspension, revocation, denial or other limiting action on any
license related to historical horse racing wagering issued by any jurisdiction;
and
11. approval of the application
would otherwise be contrary to Louisiana law or public policy.
R. The commission, in the same
manner and in accordance with the Louisiana Administrative Procedures Act, will
provide the applicant with written notice of the denial, and the applicant
shall have the opportunity to appeal the commission decision in conformity with
R.S.
4:214(J).
S. The commission may issue a provisional
license to any applicant who provides the required fingerprint cards,
photographs, completed application, and intent to employ statement. Provisional
licenses may be valid for a period established by the commission but shall not
be more than 90 days and is subject to the license conditions enumerated in the
commission's authorization of the provisional license.
1. The commission may extend the duration of
provisional licenses in 30-day increments if the licensing process has not been
completed.
T. Wagering on
historical horse races shall only be permitted in the designated area on the
licensed premises of the pari-mutuel facility and/or offtrack wagering
facility. Wagering on historical horse races shall not be offered in any other
location.
U. An applicant for a
license to offer pari-mutuel wagering on historical horse racing shall apply
for a license to conduct the same with the commission at its offices. An
application fee, set by the commission-approved license fee schedule, shall be
paid for each location where the applicant seeks to offer pari-mutuel wagering
on historical horse racing to reimburse the commission for the cost of
regulation. The initial application fee shall be paid upon filing of the
application.
1. Licensees authorized to offer
pari-mutuel wagering on historical horse racing shall pay an annual license fee
set by the commission-approved license fee schedule, to be paid monthly, to
reimburse the commission for the cost of regulation.
2. The annual total for initial application
fees or annual licenses fees shall not exceed the commission's budgeted costs
for the regulation of historical horse racing in any calendar year.
V. An applicant for a license to
offer pari-mutuel wagering on historical horse racing shall submit a plan of
operation that includes:
1. the number of
terminals to be operated at the facility, broken down by terminal provider,
make, and model;
2. a detailed
description of the proposed area designated for the sale of pari-mutuel pool,
and the placement of terminals within the area, including a drawn-to-scale
architectural rendering that describes:
a. the
size, construction, and capacity of the area;
b. the number and location of each terminal;
and
c. the location of surveillance
and other security equipment.
3. a description of the type of data
processing, communication, totalizator and transmission equipment to be
utilized;
4. a networking diagram
detailing the manner in which the machines will be networked with the wagering
servers and back office systems;
5.
an IT security plan detailing the logical security measures for the wagering
system;
6. the type, number and
denominations of pari-mutuel wagers to be offered;
7. the terminal provider, make, and model of
each terminal, including a copy of all literature supplied by the manufacturer
of the terminal;
8. the maintenance
and repair procedures that will ensure the integrity of the
terminals;
9. detailed information
on the wager types, including breakage, to be offered by the applicant,
including information demonstrating compliance with the requirements of this
chapter;
10. wager specification
documentation, which shall include the rules for the mathematical models,
methodology of calculating payouts of the pools, configuration of pools, how
money is allocated to or from the pools (including seed pool(s) as applicable),
and pool payout methodology. As used herein, a seed pool refers to a pool of
money that is used to ensure that all patrons are paid the minimum payout on
winning wagers.
W. Before
offering wagering on historical horse races, an association shall first obtain
the commission's written approval of all wagers offered as set forth in LAC
35:XIII.10703, LAC 35:XIII.10901, LAC 35:XIII.11105, LAC 35:XIII.11201, LAC
35:XIII.11507, LAC 35:XIII.11607, LAC 35:XIII.11701, and LAC 35:XIII.11801 or
other accepted pari-mutuel wager type as approved by the commission.
X. A license for conducting pari-mutuel
wagering on historical horse racing shall run concurrent with the association's
license to conduct horse racing and/or operate offtrack wagering facilities. A
licensee may not transfer its license, or assign responsibility for compliance
with the conditions of its license, to any party, including, without
limitation, a transfer of effective control of the licensee, without commission
approval.
Y. Failure to comply with
requirements in
R.S.
4:149, and/or offtrack wagering facility
requirements pursuant to
R.S.
4:213 and the Rules of
Racing may result in suspension or revocation of the license for
conducting pari-mutuel wagering at the discretion of the commission.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
4:141,
R.S. 4:142 and
R.S.
4:148.
