Current through Register Vol. 49, No. 13, September 23, 2024
Subpart
1.
Linked bingo game provider license required.
A person may not provide linked bingo paper, linked bingo game
system equipment, or services to any licensed organization unless the person
has obtained a linked bingo game provider license or license renewal issued by
the board.
Subp. 2.
Linked bingo game provider licensing qualifications.
A person is not eligible for a license unless the requirements
of Minnesota Statutes, sections
349.155,
subdivision 3, and 349.1635, have been met. For purposes of compliance with
Minnesota Statutes, section
349.155,
subdivision 3, the following definitions apply.
A. "Director" means a member of the linked
bingo game provider's board of directors.
B. "Officer" means any person elected,
appointed, or designated as an officer by the linked bingo game provider's
board of directors.
C. "Other
person in a supervisory or management position" means any person employed to
direct or control the personnel and activities of a linked bingo game
provider's department or division.
Subp. 3.
Linked bingo game provider
restrictions.
In addition to the prohibitions in Minnesota Statutes, sections
349.155,
subdivision 3, and 349.1635, subdivision 4, the following restrictions apply
when conducting business with licensed organizations authorized to conduct
lawful gambling in Minnesota. A linked bingo game provider licensee; person
holding a financial or managerial interest in a linked bingo game provider; or
any agent, affiliate, or employee of a linked bingo game provider may
not:
A. be an officer, director, paid
employee, gambling volunteer, or gambling manager of an organization involved
in the conduct of lawful gambling;
B. recruit a person to become a gambling
manager or an assistant gambling manager, or identify to an organization a
person as a candidate to become a gambling manager or assistant gambling
manager;
C. be involved in or
influence the purchase of gambling equipment for an organization, except for
equipment necessary to conduct linked bingo games;
D. provide or permit an affiliate or person
acting on behalf of the linked bingo game provider to provide any compensation,
gift, gratuity, premium, contribution, or thing of value to a board employee or
board member; or
E. contribute more
than $250 in any calendar year to an organization or participate in a
fund-raising event if the contribution or fund-raising event is related to the
organization's conduct of lawful gambling.
Subp. 4.
Contents of linked bingo game
provider license application.
The linked bingo game provider license application must contain
the following:
A. the linked bingo
game provider's legal name, any other names used, the legal nature of the
business (corporation, partnership, limited liability company, or sole
proprietorship), the Minnesota tax identification number, and the federal
employer identification number;
B.
business address and telephone number;
C. mailing address, if different than the
business address;
D. address where
the selection of bingo numbers for a linked bingo game will be conducted, if
different than the business address;
E. names and titles of the owners, partners,
officers, directors, managers, supervisors, sales employees, persons involved
with the services provided by the linked bingo game provider, and persons or
entities with a direct or indirect financial interest of five percent or more
in the linked bingo game provider;
F. identification of any person who or entity
that develops or provides application software to the manufacturer;
G. copies of licensing agreements with other
entities for all software, except for operating system software, and hardware
developed specifically for the purpose of conducting gambling on an electronic
device. Operating system software agreements must be maintained by the linked
bingo game provider, be current, and be available to the board upon
request;
H. acknowledgment
regarding the licensing qualifications in subpart
2 and restrictions in subpart
3;
I. acknowledgment that any linked bingo game
agreement will identify any goods or services, including all costs, that the
organization is required to buy or lease;
J. acknowledgment that the linked bingo game
provider will provide all necessary game monitoring equipment and monitoring
systems to the board at no cost;
K.
date and signature, in ink, of the chief executive officer; and
L. additional information that may be
required by the board to properly identify the linked bingo game provider and
ensure compliance with Minnesota Statutes, sections
349.11 to
349.23.
Subp. 5.
Attachments to
linked bingo game provider license application.
The linked bingo game provider must attach the following items
to the application.
A. A linked bingo
game provider personnel form, in a format prescribed by the board, must be
completed by each:
(1) owner;
(2) partner;
(3) member of the board of directors or board
of governors;
(4) officer,
including but not limited to president, vice-president, secretary, treasurer,
controller, or general counsel;
(5)
manager or supervisor of personnel, sales, governmental relations, and
security;
(6) person or entity with
a direct or indirect financial interest of five percent or more in the linked
bingo game provider;
(7) sales
employee who promotes, approves orders for, and asks for sales for linked bingo
paper and linked bingo game services; and
(8) person involved with the services
provided by the linked bingo game provider.
B. The linked bingo game provider personnel
form must include:
(1) the linked bingo game
provider's name and license number, if issued;
(2) the name, home address, daytime telephone
number, date of birth, and Social Security number of the person;
(3) the person's position with the linked
bingo game provider;
(4) an
employment history and places of residence for the past ten years;
(5) a criminal history statement, not
including petty misdemeanors;
(6)
the name, address, and license number of any licensed organization conducting
lawful gambling in Minnesota of which the person is a member;
(7) the Minnesota tax identification number
of businesses that the person has held ownership interest in during the past
ten years;
(8) an acknowledgment
regarding licensing qualifications in subpart
2 and restrictions in subpart
3;
(9) the date and signature, in ink, of the
person; and
(10) additional
information that may be required by the board to properly identify the person
and ensure compliance with Minnesota Statutes, sections
349.11 to
349.23.
C. An organization chart
illustrating the management structure of the linked bingo game provider and the
personnel involved in the conduct and administration of linked bingo
games.
D. A detailed description of
the management plan for operation of the linked bingo game system and linked
bingo game, including:
(1) the technology to
be used, method of selecting and transmitting selected bingo numbers, security
of the transmission, and plans for continuation of the game in the event of an
interruption in communications;
(2)
inventory control, inventory forms, sale and distribution of linked bingo
paper, distribution of electronic bingo devices, and process for transferring
gambling funds from licensed organizations;
(3) the linked bingo game to be conducted,
rules of play, prize levels, and procedure to verify winning bingos and to pay
winners;
(4) marketing and
promotion plan;
(5) all financial
forms proposed for use;
(6) a
statement describing the linked bingo game provider's financial capability to
provide the equipment and infrastructure necessary to operate the linked bingo
game and manage the game's prize pool including the allocation of interest
earnings from funds held in trust for progressive jackpots; and
(7) a proposed fee schedule for the cost of
providing services and equipment to licensed organizations.
E. Evidence of the bond required
by Minnesota Statutes, section
349.1635,
subdivision 3.
F. A certificate
from a board-approved independent testing laboratory certifying that the linked
bingo game system meets the requirements contained in parts
7863.0260, subparts
1 and 1a, and
7863.0270.
G. Additional
information that may be required by the board to ensure compliance with
Minnesota Statutes, sections
349.11 to
349.23.
Subp. 6.
Changes in linked
bingo game provider license application information.
If any information submitted in the application changes during
the license term, the linked bingo game provider must notify the board within
ten days of the change.
Subp.
7.
Issuing or denying a new or renewal linked bingo game
provider license.
This subpart applies to a new or renewal linked bingo game
provider license issued or denied by the board.
A. Before issuing a new or renewal linked
bingo game provider license, the board must conduct or request the director of
alcohol and gambling enforcement to conduct a background investigation which
may include a review of the linked bingo game provider's sources of financing,
ownership, and organizational structure. Actual costs in addition to the new or
renewal application fee must be paid by the linked bingo game
provider.
B. All employees,
contract employees, and independent contractors working on behalf of the linked
bingo game provider are subject to a background investigation as determined by
the board.
C. Any entity providing
application software not developed internally by the licensee is subject to a
background investigation as determined by the board.
D. Any independent contractor providing
application software is subject to the requirements of Minnesota Statutes,
sections
349.1635;
and 349.155, subdivisions 3 and 4.
E. The board must issue a new or renewal
license to a linked bingo game provider who:
(1) submits the information required in the
application and attachments;
(2)
pays the fee required by Minnesota Statutes, section
349.1635,
subdivision 2; and
(3) is eligible
to receive a license under item A and subparts
2 and
3.
F. The board must deny the application if a
linked bingo game provider:
(1) is ineligible
under subparts
2 and
3; and
(2) has failed to submit all information
required by subparts
4 and
5.
When the board determines that an application must be denied,
the board must promptly give a written notice to the linked bingo game
provider. The notice must contain the grounds for the action and reasonable
notice of the rights of the linked bingo game provider to request an appeal
under part
7865.0260, subpart
2 or
4, whichever is
applicable.
G.
Fees submitted with a new or renewal license application are considered earned
and are not refundable.
Subp.
8.
Linked bingo game provider license effective date.
A linked bingo game provider license issued by the board is
effective on the first day of the month after board approval or as otherwise
determined by the board.
Statutory Authority: MS s
14.055;
349.12;
349.151;
349.154;
349.155;
349.16;
349.162;
349.163;
349.1635;
349.165;
349.166;
349.167;
349.169;
349.17;
349.1711;
349.1721;
349.173;
349.19;
349.191;
349.211
