Class A License Criteria

PURPOSE: The purpose of this rule is to set forth the criteria for the issuance of Class A licenses. (1) The commission may issue a Class A license if it determines on the basis of all the facts before it that the applicant meets the criteria contained in section 313.580.3., RSMo (1986). (2) In making the required determinations, the commission must consider the following factors and indices: (A) The integrity of the applicant and any personnel employed to have duties and responsibilities for operating pari-mutuel wagering. This determination shall include consideration of: 1. Any criminal record of any individual; 2. The involvement in litigation over business practices by the applicant or any individuals or entities employed by the applicant; 3. The involvement in proceedings in which unfair labor practices, discrimination or regulation of horse racing or gambling was an issue; 4. Failure to satisfy any judgments, orders or decrees of any court; and 5. Any other indices related to integrity which the commission deems crucial to its decision-making as long as the same indices are considered with regard to all applicants; (B) The types and variety of pari-mutuel horse racing which applicant may offer and the ability to attract quality horses to the facility and location; (C) The quality of the physical facility together with improvements and equipment including: 1. The racetrack(s); 2. Stabling; 3. Grandstand; 4. Detention barn; 5. Paddock; 6. Jockey’s and driver’s quarters; 7. Pari-mutuel tote; 8. Parking; 9. Access by road and public transportation; 10. Perimeter fence; 11. Other security improvements and equipment; 12. Starting, timing, photo-finish and photo-patrol or video equipment; 13. Commission work areas; and 14. Any other indices related to quality of the facility which the commission deems crucial to its decision-making as long as the same indices are considered with regard to all applicants; (D) The imminence of completion of the facility or any improvements thereon; (E) Financial ability to develop and operate a pari-mutuel horse racing facility successfully, including: 1. Ownership and control structure; 2. Amounts and reliability of development costs; 3. Certainty of site acquisition or lease; 4. Current financial conditions; 5. Sources of equity and debt funds, amounts, terms and conditions and certainty of commitment; 6. Provisions for cost overruns, nonreceipt of expected equity or debt funds, failure to achieve projected revenues or other financial adversity; 7. Feasibility of financial plan; and 8. Any other indices related to financial ability which the commission deems crucial to its decision-making as long as the same indices are considered with regard to all applicants; (F) The status of governmental actions required by the applicant’s facility including: 1. Necessary road improvements; 2. Necessary public utility improvements; 3. Required governmental approvals for development, ownership and operation of the track; 4. Acceptance of any required environmental assessment and preparation of any required environmental impact statement; and 5. Any other indices related to the status of governmental actions which the commission deems crucial to its decision-making as long as the same indices are considered with regard to all applicants; (G) Management ability of the applicant including: 1. Qualifications of managers, consultants and other contractors to develop and own a pari-mutuel horse racing facility and the likelihood of projected operation; 2. Security plan; 3. Plans for human and animal health and safety; 4. Plans for marketing, promotion and advertising; 5. Concession plan; 6. Plan for training personnel; 7. Equal employment and affirmative action plan; and 8. Any other indices related to management ability which the commission deems crucial to its decision-making as long as the same indices are considered with regard to all applicants; (H) Compliance with applicable statutes, regulations, charters and ordinances; (I) Efforts to promote orderly growth of horse racing in Missouri and educate the public with respect to horse racing and parimutuel betting; (J) The impact of the facility including: 1. The economic impact— A. The employment created; B. The purchases of goods and services; C. Public and private investment; and D. Taxes generated; 2. Ecological impact; 3. Impact on energy conservation and development of alternative energy sources; 4. Social impact; 5. Cost of public improvements; and 6. Any other indices related to impact which the commission deems crucial to its decision-making as long as the same indices are considered with regard to all applicants; (K) The extent of any public support or opposition; and (L) Effects on competition, including: 1. Number, nature and relative location of other Class A licenses; 2. Number, nature and relative location of racetracks, including horse racing and dog racing, in other states; 3. Minimum and optimum number of racing days which may be sought by Class B applicants; and 4. Any other indices of the impact of competition which the commission deems crucial to decision-making as long as the same indices are considered with regard to all applicants. (3) The commission may also consider any other information which the applicant discloses and which is relevant or helpful to a proper determination by commission. AUTHORITY: sections 313.580.1 and 313.580.3, RSMo 1986.* This rule originally filed as 12 CSR 50-11.190. Original rule filed June 17, 1986, effective Oct. 27, 1986. Emergency amendment filed Jan. 5, 1987, effective Jan. 15, 1987, expired May 15, 1987. Amended: Filed Jan. 9, 1987, effective June 11, 1987. Moved to 11 CSR 45-51.190, effective Aug. 28, 1995. *Original authority: 313.580, RSMo 1986.