1. A person or
entity may not engage in any sports wagering activities in this State that
require a license or any activities ancillary to activities for which a person
or entity must hold a license under this chapter unless that person or entity
has obtained all necessary licenses in accordance with Title 8, chapter 35 and
these sports wagering rules.
2. An
application for any type of license under these rules shall be submitted on
forms issued by the Director and available on the Gambling Control Unit's
website, in accordance with the requirements of Maine statute. The version of
the application form on the Gambling Control Unit's website is the current
form. Any applications submitted on any other version of the form will be
deemed incomplete. The most current forms shall be used or returned as
incomplete.
3. An eligible person
or entity may submit an application provided by the Director for sports
wagering activities. In addition to the information required by
8 M.R.S.
§§1204 -
1210, all applicants must provide
the following information:
A. The physical
address of the applicant's principal place of business and the designated
contact person for the applicant including an address, telephone number and
email address for that contact;
B.
Disclosure of ownership interests. A disclosure of the true ownership interests
of the applicant as follows:
(1) The names,
addresses, phone numbers, email addresses and dates of birth of the applicant's
board of directors, corporate executives, directors, officers, key personnel
and managers having the power to exercise influence over decisions concerning
any part of the applicant's or operator's sports wagering or related business
operations;
(2) The percentages of
shares of stock, if any, held by each person named in subparagraph (1)
above;
(3) For limited liability
companies (hereinafter, "LLC"), including professional LLCs, provide the full
name, address, date of birth and telephone number of each member of the LLC
having an ownership interest of ten percent (10%) or more of the LLC. If the
member is not a natural person, disclose the true ownership of the member (and
successive levels of ownership, if necessary) until a natural person or another
corporate entity is disclosed. If another corporate entity is disclosed,
provide a complete disclosure of that corporate entity's ownership in
accordance with the specific rules for that entity contained herein (and
successive levels of ownership, if necessary);
(4) For general, limited, or limited
liability partnerships, provide the full name, address, date of birth and
telephone number of each partner having an ownership interest of ten percent
(10%) or more of the partnership. If the partner is not a natural person,
disclose the true ownership of the partner (and successive levels of ownership
if necessary) until a natural person, or another corporate entity, is
disclosed. If another corporate entity is disclosed, provide a complete
disclosure of that corporate entity's ownership in accordance with the specific
rules for that entity contained herein (and successive levels of ownership, if
necessary);
(5) For a corporation,
provide the full name, address, date of birth and telephone number of any
natural person or entity having an ownership interest of ten percent (10%) or
more of the outstanding shares of the corporation. If a corporate entity is
disclosed, provide a complete disclosure of that corporate entity's ownership
in accordance with the specific rules for that entity contained herein (and
successive levels of ownership, if necessary);
(6) Any institutional investor having a (10%)
or more ownership interest in the applicant shall provide to the Director a
sworn-to affidavit executed by an institutional officer who can bind the entity
that the institutional investor has no influence over the day-to-day sports
wagering operations of the applicant; and
(7) The names, addresses, employer
identification numbers, social security numbers, and dates of birth, as
applicable, of each individual, group of individuals, trust or business entity
associated with an applicant, including, but not limited to, a holding company,
parent company, or subsidiary company of the applicant that has the ability to
control the activities of the applicant or elect a majority of the board of
directors or select the manager or general partner of the applicant.
C. A notarized affirmation and
consent and authorization to release information about the applicant necessary
to complete a background check;
D.
Copies of the applicant's audited financial statements for the preceding three
(3) fiscal years and a copy of internally prepared financial statements for the
current fiscal year as of the close of the most recent fiscal quarter by a
Certified Public Accountant in accordance with generally accepted accounting
principles and applicable state and federal law. If an applicant has audited
financial statements prepared at the parent company level, the applicant shall
include with its audited consolidated financial statements a supplement I
schedule (either audited or unaudited) of the operator applicant's sports
wagering operations and an attestation from the operator applicant's Certified
Public Accountant that the applicant has implemented procedures to accurately
report its adjusted sports wagering receipts from sports wagering operations in
Maine;
E. A copy of the Certificate
of Authority to do business in the State of Maine, if the applicant is
incorporated outside of Maine;
F.
Copies of any trade name registrations filed by or under which the applicant
conducts any business activities;
G. Copies of applicant's State and Federal
returns for a period of three (3) fiscal years;
H. Copies of declaration pages of all
insurance policies insuring the applicant and/or premises in Maine;
I. If the applicant is a corporation, annual
reports and SEC filings, if any, for the past three (3) years;
J. A list of all jurisdictions where the
applicant has:
(1) Applied for a sports
wagering or any other gaming license;
(2) Been issued a sports wagering or any
other gaming license;
(3) Been the
subject of a law enforcement or government subpoena, cease and desist letter,
attorney general or government legal opinion, or other correspondence regarding
any non-routine law enforcement or government investigation concerning conduct
related to gambling operations (including casino gaming, horse racing, dog
racing, pari-mutuel pools, lottery, sports wagering, fantasy contests, esports,
igaming, etc.);
(4) Had any sports
wagering or gaming license denied, suspended, or revoked; and
(5) The current status of any such adverse
actions and copies of such documents relating to (3) or
(4);
K. A copy of the
final order of all civil judgments rendered against the applicant, any person
identified in (B) above, or others individually described by subparagraphs J
(2), (3), or (4) above, including those judgments pertaining to antitrust or
security regulation laws of the federal government, of the State of Maine or of
any other state, jurisdiction, province, or country;
L. A full copy of the applicant's most recent
SOC-2 Type II audit authenticated by the entity that performed the assessment;
and verification that a SOC 2 Type II audit shall be completed on an annual
basis and results shall be submitted to the Director within 10 days of
completion. An assessment must be completed as part of the initial
application;
M. The applicant's
minimum internal controls as required under chapter 53 herein for approval by
the Director;
N. An organizational
chart listing all sports wagering employee positions and their job
descriptions. Members of the board of directors are not required to be included
on the organizational chart;
O. A
completed Gambling Control Unit form MGCU-8100 with notarized affirmation and
consent and authorization to release information to complete a criminal
background check on: any officer or director of the applicant; and any partner
or shareholder who has the ability to control the activities of the applicant
in the sports wagering facility or mobile operator, management services
provider or supplier;
P. Management
services providers provide information, resumes, documentation, references,
written testimony and other assurances required to establish that the applicant
has sufficient business ability and sports wagering experience to create and
maintain a successful and efficient sports wagering operation in Maine;
and
Q. Any other information the
Director requests that is necessary for their determination of the suitability,
honesty and integrity of the applicant.
5. The application, and all other documents
submitted to the Director or on behalf of the applicant for purposes of
determining the qualifications of the applicant, shall be sworn to or affirmed
before a notary public. If any form or document is signed by an attorney for
the applicant, the signature shall certify that the attorney has read the forms
or documents and that, to the best of the attorney's knowledge, information and
belief, based on diligent inquiry, the contents of the form or documents so
supplied are true.
6. A management
services provider may enter into a final contract with an operator only upon
meeting the following requirements:
A. Be
licensed by the Director as a management services provider;
B. Its proposed contract with the operator
has been approved by the Director prior to the conduct of sports
wagering;
C. If the management
services provider contracts with more than one operator, its contracts with
those operators must include a method approved by the Director for separately
accounting for each sports wagering operator's gross receipts from sports
wagering and adjusted gross sports wagering receipts; and
D. Its contract with an operator does not
authorize the person providing management services to receive more than 30% of
the operator's adjusted gross sports wagering receipts; except that the
Director may approve a contract under the criteria of chapter 65 authorizing
the management services provider to receive up to 40% of the operator's
adjusted gross sports wagering receipts.
7. In addition to the requirements of
8 M.R.S.
§1204(4), to the extent
the applicant becomes aware that information of a material nature supplied in
the application or otherwise supplied to the Director in support of its
application by the applicant or on the applicant's behalf, becomes outdated,
inaccurate or incomplete, the applicant shall so notify the Director in writing
within 30 calendar days and shall at that time supply the information necessary
to supplement or correct the inaccuracy or incompleteness of the
information.
8. The applicant shall
cooperate fully with the Director, the Department, the Gambling Control Unit
and any 3rd party contractor under contract with the
Department to perform any investigation with respect to the background
investigation of the applicant. Failure to cooperate or provide information
necessary for licensure may result in denial of the applicant's license
application.
9. Mobile operators
shall provide the Director with certificates of insurance prior to approval of
the license and with each renewal application. The company issuing the
insurance shall be financially rated A or better by a nationally recognized
rating entity and duly licensed, admitted, and authorized to transact business
in the State of Maine. Subject to (1 and 2) below, Mobile operators shall
maintain the following types and amounts of insurance while they are an
approved operator to conduct sports wagering activities in Maine.
A. Mobile operators who anticipate, during
the upcoming year of licensure, having less than 100,000 patron accounts and
$15,000,000 in revenue shall maintain the following types and amounts of
insurance:
1) Cyber liability insurance in the
amount of five million dollars ($5,000,000); and
2) Errors and Omissions insurance in the
amount of five million dollars ($5,000,000).
B. Mobile operators who anticipate, during
the upcoming year of licensure, having more than 100,000 patron accounts and
$15,000,000 in revenue, shall maintain the following types of insurance:
1) Cyber liability insurance in the amount of
ten million dollars ($10,000,000); and
2) Errors and Omissions insurance in the
amount of ten million dollars ($10,000,000).
10. Mobile operators that are unable to
obtain the coverage amounts specified in 9. A or B above must maintain coverage
in the maximum amounts allowable by the issuing insurance company. Such
operators must provide a notarized statement or letter from their insurance
agent or broker stating that the operator was unable to obtain required
insurance coverage after a diligent effort and the reason for the deficiency.
Such operator shall provide the Director with a detailed plan of how it intends
to compensate for the deficiency in insurance coverage, which must be approved
by the Director prior to licensure.
