R 432.729 Vendor Requirements.

Rule 729. (1) Only vendors that are either approved by the board as a registered vendor pursuant to R 432.729a, or are exempt from registration under subrule (4) of this rule, may provide goods or services, or both, directly or indirectly, to a sports betting operator or internet sports betting platform provider in connection with internet sports betting in this state. (2) Vendors requiring registration include, but are not limited to, the following: (a) Affiliate marketers that do not have an agreement based on the sharing of gross sports betting receipts or adjusted gross sports betting receipts. In connection with its vendor registration, the affiliate marketer shall certify it does not promote or market, or both, illegal online gaming sites to individuals located in this state. An illegal online gaming site is one that is not licensed to accept wagers from customers located in this state or another state. (b) Independent integrity monitoring providers. (c) Payment processors. (d) A person that provides over $100,000.00 worth of goods or services, or both, to a sports betting operator or internet sports betting platform provider in connection with its internet sports betting operation in this state in a calendar year. (e) Data centers providing physical security and infrastructure. (f) Another person as considered necessary by the board. (3) A sports betting operator or sports betting platform provider is prohibited from receiving goods or services in connection with internet sports betting in this state from a vendor that is either not registered with the board, or that is not exempt from registration under subrule (4) (4) Unless otherwise provided for by the board, the following persons are exempt from the vendor registration requirement: (a) A vendor that provides $100,000.00 or less worth of goods or services, or both, to a sports betting operator or internet sports betting platform provider in connection with internet sports betting operation in this state in a calendar year. (b) Insurance companies. (c) An individual or entity that provides legal services. (d) Entities providing medical related services. (e) Public institutions of higher education in this state. (f) Public utilities regulated by the public service commission. (g) A Michigan or federally chartered depository financial institution. (h) An individual or business that provides goods or services as a result of the licensee’s employees engaging in business travel, including transportation, lodging, food, and fuel providers. (i) A person that provides employee training or professional development to a licensee. (j) A person that provides conferences, seminars, publications, or memberships that directly contribute to the work performance or professional development of the licensee’s employees. (5) All of the following requirements apply regarding vendor conduct regardless of whether the vendor is required to register: (a) A vendor shall conduct itself in a manner that does not compromise the integrity of internet sports betting and comply with, the applicable provisions of the act and these rules. (b) A vendor is subject to the jurisdiction of the board. (c) A vendor shall provide information or records requested by the board. (d) A vendor shall cooperate with the board in any investigation, inspection, audit, or inquiry. (e) A vendor shall allow the board access to its facilities that are relevant to this state’s internet sports betting operations. (f) A vendor shall notify the board of any change in information previously submitted to the board. (6) The board may conduct an investigation to determine if a vendor has acted in a manner that does or could compromise the integrity of internet sports betting in this state. (7) If the investigation reveals a vendor’s conduct could or does compromise the integrity of internet sports betting in this state, the board may issue a cease-and-desist order, obtain injunctive relief, or take other action necessary to protect the integrity of internet sports betting in this state, or all 3.