Grounds for Discipline

(1) Pursuant to M.G.L. c. 23N, § 3, a Category 2 Sports Wagering Licensee who fails to make a capital investment in its project of at least $7,500,000, and in accordance with an approved project plan, within three years after receiving a Sports Wagering License shall be subject to discipline in accordance with 205 CMR 232.00, unless the Licensee shows that its failure resulted from extraordinary circumstances. Disciplinary action in accordance with 205 CMR 222.06(1) shall be presumed to include the suspension or revocation of the License, but the Commission may impose other or lesser discipline as it deems appropriate. The Commission or Bureau may discipline a Category 2 Sports Wagering Licensee in accordance with 205 CMR 232.00 for other violations of or failing with respect to this 205 CMR 222.05. 22.07: Capital Investment (1) Pursuant to M.G.L. c. 23N, § 3, the minimum capital investment for a Category 2 Sports Wagering Licensee to make on a project in accordance with an approved project plan shall be $7,500,000. The capital investment shall be calculated in accordance with 205 CMR 222.07(2) and 205 CMR 222.07(3). For purposes of calculating the capital investment for a Category 2 Sports Wagering License, the following costs shall be included: Costs related to the actual construction of the Sports Wagering Facility and site including any amenities, and including overhead and indirect costs attributable to the construction activities. (b) Costs related to preparation of the site including, clearing, demolition and abatement. (c) Costs related to the design of the project, including building design, interior design, and exterior site design. (d) Costs associated with consulting and due-diligence necessary to fund studies and devise engineering solutions including traffic studies, environmental studies, and other associated mitigation studies. (e) Costs associated with minimizing the environmental impact of the project including upfront costs aimed at minimizing a carbon footprint or implementing sustainable elements and/or smart growth practices. (f) Costs associated with designing, improving or constructing the infrastructure inside the property boundaries of the site of the Sports Wagering Facility including those related to drainage, utility support, roadways, interchanges, fill and soil or groundwater or surface water contamination issues, sewer, storm water, landscaping, and public transportation. (g) Costs associated with the pre-opening purchase of fixtures; equipment; Sports Wagering Equipment including self-service kiosks; simulcasting equipment, provided that the costs associated with simulcasting equipment included in calculating the capital investment shall not exceed ½ of the costs associated with Sports Wagering Equipment included in calculating the capital investment; information technology equipment; safety, surveillance, and security equipment; software; and personal property to be used within the Sports Wagering Facility and site including those within hotels, restaurants, retail and other service businesses associated with the establishment. (h) Costs associated with applying for federal, state, or municipal permits. (i) Professional and management fees including for engineers, architects, developers, contractors, or operators to the extent that they represent indirect and overhead costs related to the development of the project, and do not represent profits or payout as part of partnership agreements or "home office" overhead (i.e., out of state). (j) Costs associated with the safety, training, quality assurance, or testing incurred during the construction of the Sports Wagering Facility and site. For purposes of calculating the capital investment for a Category 2 Sports Wagering License, the following costs may not be included: Any expenditures that a Sports Wagering Licensee makes before receiving its Sports Wagering License and applying for the approval of an initial project plan in accordance with 205 CMR 222.02(2). (b) Any expenditures that a Sports Wagering Licensee makes that are not consistent with an approved project plan. (c) Costs associated with the purchase or lease or optioning of land where the Sports Wagering Facility will be located including costs relative to registering, appraising, transferring title, or obtaining title insurance for the land. (d) Carried interest costs and other associated financing costs. (e) Costs associated with mitigating impacts on nearby communities, whether directly attributable to a specific impact or not. (f) Costs associated with designing, improving or constructing the infrastructure outside the property boundaries of the site of the Sports Wagering Facility including those related to drainage, utility support, roadways, interchanges, fill and soil or groundwater or surface water contamination issues, sewer, storm water, landscaping, and public transportation whether or not such costs are required by any regulatory body or as part of the permitting process. (g) Any and all legal fees. 222.07: continued (h) Fees and costs paid to the commission in accordance M.G.L. c. 23N, and/or 205 CMR 214.00: Sports Wagering Application Fees or 221.00: Sports Wagering License Fees, and other similar fees and costs paid to municipalities. (i) Licensing costs including any costs payable to the Commission to obtain pre-opening licensing of individuals or vendors. (j) Costs associated with marketing, advertising and promotions. (k) Upfront costs designed to implement workforce development plans. (l) Upfront costs designed to implement efforts to combat problem gambling and/or support the efforts of the commission's research agenda.