(1) The Commission,
the Bureau or their agents and employees may request additional information and
documents from an applicant or its qualifiers, or any other person associated
with the applicant whose licensure or registration is required under M.G.L. c.
128A and 128C or 205 CMR, throughout the application review process. Failure by
the applicant, qualifier, or other person to timely submit the additional
information as requested by the Commission, the Bureau or their agents and
employees may be grounds for denial of the application.
(2) All applicants, licensees, registrants,
qualifiers, or other person whose licensure or registration is required under
M.G.L. c. 128A and 128C, or 205 CMR shall comply with all requests of the
Commission, the Bureau and their agents and employees for information and
documents as authorized by M.G.L. c. 128A and 128C, and 205 CMR.
(3) Applicants, licensees, registrants, and
qualifiers, and other persons shall respond within ten days or within the time
specified in an information request by the Commission, the Bureau, and their
agents and employees, under 15.08(1) and 15.08(2), to said information
request.
(4) All applicants,
licensees, registrants, qualifiers and other persons shall have a continuing
duty to provide all information and documents requested by the Commission,
Bureau, and their agents and employees and to cooperate in any investigation or
hearing conducted by the Commission, Bureau, and their agents and employees, as
authorized by M.G.L. c. 23K, § 7.
(5) Once issued a positive determination of
suitability, all licensees and qualifiers shall have a continuing duty to
maintain suitability in accordance with
205
CMR 15.04. Each licensee or qualifier shall
have a continuing duty to notify and update the Bureau, in writing, within ten
days of the occurrence, unless an alternative filing time is authorized by the
executive director, or where applicable, after gaining knowledge of the
following:
(a) Any denial, suspension or
revocation by a governmental authority in any jurisdiction of a racing-,
gaming, or sports-wagering-related license, registration, certification, permit
or approval held by or applied for by the licensee or qualifier;
(b) Any discipline, including a fine or
warning, related to racing, imposed upon the licensee or qualifier by any
governmental authority in any jurisdiction;
(c) Any fine related to racing assessed on
any entity owned or operated by the parent to the licensee by any governmental
authority in any jurisdiction.
(d)
Any arrest, indictment, charge or criminal conviction of any qualifier in any
jurisdiction;
(e) Any complaints,
allegations, or notice of investigation thereof made or known to be
contemplated by a governmental authority against the racing meeting licensee,
qualifier, or any racing entity owned or operated by the parent to the
licensee, of which the licensee or qualifier is or should reasonably be aware,
involving conduct that if substantiated could reasonably lead to potential
revocation or suspension of the license or approval held by the licensee,
qualifier, or racing entity owned or operated by the parent to the licensee, in
that jurisdiction and/or imposition of a fine of $50,000 or greater;
(f) Any reports, complaints, allegations, or
material legal proceedings made, commenced, or known to be contemplated by a
governmental authority against the licensee or qualifier, of which the licensee
or qualifier is or should reasonably be aware, involving conduct that if
substantiated could reasonably lead to potential criminal charges including,
but not limited to, allegations of theft or embezzlement;
(g) Any information known or that should
reasonably be known to the licensee or qualifier, including by way of receipt
of a subpoena, that the licensee or qualifier is or may be the subject of a
criminal investigation by a law enforcement or regulatory agency;
(h) Any exclusion or barring of a qualifier
from any casino, gaming establishment, or gambling/gaming related entity, or
race track in any jurisdiction; however, this shall not include exclusions or
barring of a qualifier which stem solely from the interest in, or position they
hold with, the licensee;
(i) The
termination, suspension from employment, or other discipline of any qualifier
or racing employee licensed in accordance with 205 CMR;
(j) Any material pending legal proceedings
required to be reported in accordance with
17 CFR
229.103 - (Item 103) Legal proceedings: For
purposes of205 CMR 212.01(5)(j)
the registrant referred to in
17 CFR
229.103 - (Item 103) shall be both the
licensee and the parent company of the licensee as determined by the Bureau.
Additionally, the licensee and each qualifier shall provide notice of any
pending legal proceeding which includes any allegation of fraudulent conduct by
the licensee or a qualifier, that may reasonably threaten the economic
viability of the licensee or a qualifier, or that alleges a pattern of improper
conduct by the licensee or a qualifier over a sustained period of
time;
(k) Any significant financial
event related to a licensee or entity qualifier. For purposes of
205
CMR 15.08(5)(k), a
significant financial event means a merger, acquisition, consolidation, debt
restructuring, material change in debt rating by major credit rating agencies
(US/International), legal entity change, material ownership change, the
assessment of a fine or penalty of $250,000 or greater by the SEC or
international equivalent, restatement of previously issued financial
statement(s), late filing of financial statement(s) with the SEC or
international equivalent, US or international equivalent bankruptcy petition,
default of financial debt covenants and receivership, disposal of a material
business segment or asset, or adverse action(s) taken by the IRS;
(l) Issuance of an "Adverse" or "Qualified"
audit opinion, or the international equivalent, by an independent accountant to
the Racing Meeting Licensee or qualifier;
(m) A change in accounting firm engaged to
perform attestation and/or assurance services for the licensee or qualifier;
and
(n) Issuance of a delisting
notice from a United States or international stock exchange relative to the
licensee or qualifier.
(6) If the Commission determines that an
applicant, licensee, registrant, or qualifier has knowingly withheld
information, knowingly failed to provide information or documents requested by
the Commission, Bureau, or their agents and employees, knowingly provided
materially false or misleading information to the Commission, the Bureau or
their agents and employees, or knowingly failed to cooperate with any
investigation or hearing conducted by the Commission, Bureau, or their agents
and employees, the Commission may, with respect to such person:
(a) Find that person ineligible to hold a
license or registration or be qualified in connection with a license;
(b) Suspend the relevant license,
registration or qualification; or
(c) Revoke the relevant license, registration
or qualification.
