Code of Maryland Regulations
Title 36 - MARYLAND STATE LOTTERY AND GAMING CONTROL AGENCY
Subtitle 10 - SPORTS WAGERING PROVISIONS
Chapter 36.10.02 - All Applicants and Licensees - Applications and Investigations
Section 36.10.02.10 - Principal Entity
Universal Citation: MD Code Reg 36.10.02.10
Current through Register Vol. 51, No. 19, September 20, 2024
A. The application documents shall identify any principal entity of an applicant, and for each:
(1) Describe the principal entity's ownership
of the applicant;
(2) Describe the
extent of the principal entity's control over the applicant; and
(3) Include information and documents
required under Regulations .03 through .07 of this chapter.
B. Principal Entities as Approved Institutional Investors.
(1) A principal
entity may request the Commission to waive the requirement of conducting a full
background investigation of the principal entity.
(2) The Commission may approve a principal
entity's request for a waiver if the principal entity:
(a) Meets one of the definitions of
institutional investor in Chapter .01 of this subtitle; and
(b) Satisfactorily completes and submits an
institutional investor waiver application as required by the
Commission.
(3) A
principal entity for which the Commission has approved a waiver request under
§B(2) of this regulation is an approved institutional investor.
(4) An institutional investor may maintain an
approved waiver as an institutional investor by:
(a) Maintaining an ownership interest in an
applicant or licensee; and
(b)
Providing the Commission with the statement of ownership percentage it reported
to the Securities and Exchange Commission:
(i)
Annually, before the last day of April; or
(ii) As otherwise directed by the
Commission.
(5)
If an approved institutional investor complies with §B(4) of this
regulation, the Commission's approval is valid for 5 years from the date of
approval, and:
(a) The waiver may apply to
one or more applicants or licensees in which the entity is an institutional
investor; and
(b) The institutional
investor shall submit an institutional waiver application every 5 years from
the date of the Commission's last approval.
(6) If an approved institutional investor
does not meet the requirements of §B(4) of this regulation with respect to
one or more applicants or licensees:
(a) The
approved institutional investor shall notify the Commission in writing if the
institutional investor's ownership interest falls below 5 percent;
and
(b) The Commission may require
the institutional investor to submit a new waiver application if the
institutional investor acquires an ownership interest of 5 percent or greater
in any applicant or licensee.
C. Qualified Principal Entities.
(1) This section does not apply to a
principal entity that is an approved institutional investor under §B of
this regulation.
(2) If the
Commission investigates a principal entity's application for qualification and
determines that the principal entity is qualified:
(a) The Commission will recognize the
qualification determination for 5 years from the date that the principal entity
is found qualified; and
(b) If the
same qualified principal entity is identified in a subsequent license
application within the same 5-year period, the qualified principal entity is
not required to submit a new principal entity disclosure form.
(3) A qualified principal entity
shall comply with the continuing obligation requirements described in
Regulation .03 of this chapter.
(4)
If a qualified principal entity no longer meets a qualification requirement,
the Commission may require the principal entity to:
(a) File a new principal entity disclosure
form;
(b) Submit to a new
background investigation; and
(c)
Pay all fees and costs associated with the new principal entity disclosure form
and investigation.
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