R 432.525b License issuance by the board; standards and criteria.

Rule 525b. (1) Except to the extent the board may require different or additional procedures, an applicant for a fantasy contest operator license or management company license is subject to all of the following before licensing: (a) Application. (b) Background investigation. (c) Action and decision by the board on the application. (2) A person that is required to hold a fantasy contest operator license or management company license under the act and these rules must, before issuance of a fantasy contest operator license or management company license, produce information, documentation, and assurances to establish all of the following by clear and convincing evidence: (a) Its suitability as to character, reputation, integrity, business probity, and financial ability. (b) Its willingness to be subject to the jurisdiction of the board. (c) That the applicant has adequate capitalization and the financial ability and the means to develop, construct, operate, and maintain the applicant’s fantasy contest operator or management company business in accordance with the act and these rules. (d) That the applicant has adequate capitalization and the financial ability to responsibly pay its secured and unsecured debts in accordance with its financing agreements and other contractual obligations. (e) That the applicant is in substantial compliance with any gaming-related or fantasy contest-related licensing requirements that are applicable to the applicant in this state or any other jurisdiction. (f) That the applicant and all other persons required to be found eligible and suitable as part of the application are eligible and suitable for licensure under the licensing standards, criteria, and requirements. (g) That the applicant, if the applicant is an individual, and all other individuals required to be found eligible and suitable as part of the application are not less than 18 years of age, unless otherwise approved by the board. (h) That the applicant and all other persons required to be found eligible and suitable as part of the application have not been convicted of any criminal offense involving gaming, theft, dishonesty, or fraud in any jurisdiction. However, the board may waive this requirement if the conviction occurred more than 5 years before the applicant applies for a license and the board is convinced that the applicant does not pose a threat to the integrity of fantasy contests and the applicant otherwise meets the requirements of this rule. (i) That the applicant and all other persons required to be found eligible and suitable as part of the application do not appear on the exclusion list of any jurisdiction. (j) That the applicant and all other persons required to be found eligible and suitable as part of the application are in substantial compliance with all local, state, and federal laws. (3) An applicant must designate at least 1 key employee as a condition for obtaining a license. An applicant is considered to have complied with this subrule if it has identified at least 1 key person who meets the definition of a key employee. (4) Once licensed, a person must comply with the act and these rules. Failure to comply may result in disciplinary action.