(1)
The Commission, the Bureau or their agents and employees may request additional
information and documents from an Applicant including all qualifiers, employee
license, vendor license or registration, or any other license or registration
required in accordance with M.G.L. c. 23N or 205 CMR throughout the application
review process. Failure by the Applicant 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
and qualifiers under M.G.L. c. 23N and 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. 23N and 205 CMR.
(3) Applicants, licensees, registrants and
qualifiers 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 212.01(1) and 212.01(2) to said information request.
(4) All Applicants, licensees, registrants
and qualifiers under M.G.L. c. 23N 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.
23N.
(5) Once issued a positive
determination of suitability, all Sports Wagering Operators and qualifiers
shall have a continuing duty to maintain suitability in accordance with
205 CMR
215.00. The Sports Wagering Operator and each
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, gaining knowledge
of the following:
(a) Any denial, suspension
or revocation by a Governmental Authority in any jurisdiction of a Sports
Wagering related license, registration, certification, permit or approval held
by or applied for by the Sports Wagering Operator or qualifier;
(b) Any discipline, including a fine or
warning, related to Sports Wagering imposed upon the Sports Wagering Operator
or qualifier by any Governmental Authority in any jurisdiction;
(c) Any fine related to Sports Wagering
assessed on any Sports Wagering entity owned or operated by the parent to the
Sports Wagering Operator 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 Sports Wagering Operator,
qualifier, or any Sports Wagering entity owned or operated by the parent to the
Sports Wagering Operator, of which the Sports Wagering Operator 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 Sports Wagering Operator, qualifier, or Sports Wagering
entity owned or operated by the parent to the Sports Wagering Operator, 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 Sports Wagering Operator or qualifier, of
which the Sports Wagering Operator 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 Sports Wagering Operator or
qualifier, including by way of receipt of a subpoena, that the Sports Wagering
Operator 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
Sports Wagering or Sports Wagering facility 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 Sports Wagering
Operator;
(i) The termination,
suspension from employment, or other discipline of any qualifier or Sports
Wagering 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 Sports
Wagering Operator and the parent company of the Sports Wagering Operator as
determined by the Bureau. Additionally, the Sports Wagering Operator and each
qualifier shall provide notice of any pending legal proceeding which includes
any allegation of fraudulent conduct by the Sports W agering Operator or a
qualifier, that may reasonably threaten the economic viability of the Sports
Wagering Operator or a qualifier, or that alleges a pattern of improper conduct
by the Sports Wagering Operator or a qualifier over a sustained period of
time;
(k) Any significant financial
event related to a Sports W agering Operator or entity qualifier. For purposes
of 205 CMR
212.01(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 Sports Wagering Operator or qualifier;
(m) A change in accounting firm engaged to
perform attestation and/or assurance services for the Sports Wagering Operator
or qualifier; and
(n) Issuance of a
delisting notice from a United States or international stock exchange relative
to the Sports Wagering Operator 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.
