Current through 2024-13, March 27, 2024
This rule establishes the criteria that will be used to approve
a contract more than 30% but not more than 40% of the operator's adjusted gross
wagering receipts if the Director determines that the management services
provider demonstrates that the additional percentage is commercially reasonable
in relation to the capital investments and operator's projected adjusted gross
sports wagering receipts. The rule ensures transparency and consistency in the
deciding factors.
1. The following
words and terms shall have the following meanings unless the context indicates
otherwise:
A. "Commercially reasonable" means
that the particular arrangement furthers a legitimate business purpose of the
parties to the arrangement and is sensible, considering the characteristic of
the parties, including their size, type, scope and specialty.
B. "Capital investments" means an expenditure
of money or permanent fixed assets to fund a company's long-term
growth.
2. Management
services providers shall submit in addition to the application for licensure as
a management services provider in the State of Maine, the following:
A. Up to two contracts with facility or
mobile sports operators in other jurisdictions to establish basic services with
redactions as necessary for confidentiality;
B. Written explanation of any projected
adjusted gross sports wagering receipts to warrant the increase above 30%, but
not more than 40% and if any of those projections are not met, what the
adjustment will be, if any;
C.
Written explanation of the capital investments of the management services
provider to warrant the increase above 30%, but not more than 40%;
D. Written explanation of the commercially
reasonable arrangement between the management services provider and facility or
mobile operator;
E. Include that
the contract does not exclude the facility operator, mobile operator or
management services provider from any disciplinary action under Title 8,
Chapter 35 of the Maine Revised Statutes as a result of one or the other's
actions.
