Ariz. Admin. Code § 19-4-106

Current through Register Vol. 30, No. 44, November 1, 2024

Section R19-4-106 - Allocation for Applicants

A. Once licenses initially become available, the Department will announce an initial application period of no less than ten (10) days in which to accept license applications and supplemental allocation applications. Within five (5) ten (10) days of the conclusion of the initial application period, the Department will evaluate all applicants under the criteria established in .B, .C, and/or .D to determine who is qualified for licensure and will provide written notification to the applicants that were deemed initially qualified. If there are more qualified applicants than licenses available, the Department shall review each supplemental allocation application and shall make a determination within eight (8) ten (10) days of the initial licensure qualification determination and will provide written notification to the applicants that were selected for allocation.

B. For a tribe (to include its wholly owned entity, designee, or management services provider relevant to the initial application) to be qualified for an event wagering operator license:

1. It must meet the definition of an event wagering operator in A.R.S. § 5-1301(7)(b) and the requirements of A.R.S. § 5-1304(A)(2), (B) and (C).

2. It and its event wagering employees must submit to background checks under A.R.S. § 5-1302(C) and (E), must not be prohibited participants under A.R.S. § 5-1301(16), and must not have a criminal history or other grounds sufficient to disqualify the applicant apparent on the face of the application as noted in A.R.S. § 5-1305(C), which will be determined by the factors listed in A.R.S. § 5-1305(B)(1-5).

C. For a professional sports team (to include the PGA operator, the NASCAR promoter, designee, or management services provider relevant to the initial application) to be qualified for an event wagering operator license:

1. It must meet the definition of an event wagering operator in A.R.S. § 5-1301(7)(a) and the requirements of A.R.S. § 5-1304(A)(1), (B) and (C).

D. For a racetrack enclosure or additional wagering facility (to include management services provider) to be qualified for a limited event wagering operator license:

1. It must meet the definition of a limited event wagering operator in A.R.S. § 5-1301(8) and the requirements of A.R.S. § 5-1307(A), (B) and (C).

E. If more than 10 tribes and/or more than 10 professional sports teams qualify for an event wagering operator license, the Department shall allocate the licenses among the qualifying tribes and/or qualifying professional sports teams and ensure an equal opportunity for all qualified applicants required by A.R.S. § 5-1305(C) by considering the following criteria (which may include information from a wholly owned entity, designee, management services provider, affiliate, or other partner):

1. Business ability, experience, and track record of the event wagering operator applicant, designee applicant, and/or management services provider applicant, both local and international, which establishes the ability to create and maintain a successful event wagering operation;

2. Experience and track record of the event wagering operator applicant, designee applicant, and/or management services provider, both local and international, in the operation of gaming or related activity;

3. Contributions to the surrounding tribal, local, or State community to include:

a. Consideration of the size of the community impacted, or to be impacted in the future;

b. The extent to which the community has already benefited from gaming, or may do so in the future; and

c. The use of revenue to assist the community in the past, and how event wagering revenue will assist in the future;

4. Good standing in terms of obtaining and maintaining licenses/permits in all markets;

5. Demonstrated vision, willingness, and commitment to make local investments in the State, or on tribal lands, including prior investments in other states, if applicable;

6. Demonstrated culture of player protection, investments in player protection, and an effective governance program;

7. Responsiveness, approachability, and involvement of local management;

8. Competency to conduct event wagering, including proposed internal controls, and the maximization of privilege fees to the State;

9. Ability to begin operating event wagering within six months after obtaining the license;

10. Demonstrated financial stability, resources, integrity, and business ability and acumen;

11. Demonstrated regulatory compliance and cooperation with regulatory authorities;

12. The lack of opportunity to benefit from event wagering type activity in some manner or location without a license;

13. Whether the issuance of the license will provide benefits to other qualified applicants through partnerships or other opportunities;

14. Increased employment and enhancement of the labor market in the State or on tribal lands;

15. A preference for applicants who are located, headquartered, and/or own or operate a physical facility in the State, or applicants who will use a designee or management services provider, or are partners with an entity located, headquartered, and/or who own or operate a physical facility in the State;

16. For tribal licenses, a preference that licenses be distributed among non-gaming tribes, rural gaming tribes, and to tribes located relatively near metropolitan areas in the State;

17. Whether the event wagering operator applicant would appeal to a unique or unaddressed market or introduce a unique brand or affiliate;

18. Whether the issuance of a license to the event wagering operator applicant would increase the patron base in the State; and

19. Any other criteria, or the weighting of them, deemed by the Department to be in the best interests of the State.

F. If more than 10 racetrack enclosures or additional wagering facilities qualify for a limited event wagering operator license, the Department shall allocate the licenses and ensure an equal opportunity for all qualified applicants required by A.R.S. § 5-1305(C) by considering the following criteria (which may include information from a management services provider, affiliate, or other partner):

1. Business ability, experience, and track record of the limited event wagering operator applicant and/or management services provider applicant, both local and international which establishes the ability to create and maintain a successful limited event wagering operation;

2. Experience and track record of the limited event wagering operator applicant and/or management services provider, both local and international, in the operation of pari-mutuel wagering, gaming, or related activity;

3. Good standing in terms of obtaining and maintaining licenses/permits in all markets;

4. Demonstrated vision, willingness, and commitment to make local investments in the State including prior investments in other states, if applicable;

5. Demonstrated culture of player protection, investments in player protection, and an effective governance program;

6. Responsiveness, approachability, and involvement of local management;

7. Competency to conduct event wagering, including proposed internal controls, and the maximization of privilege fees to the State;

8. Ability to begin operating event wagering within six months after obtaining the license;

9. Demonstrated financial stability, resources, integrity, and business ability and acumen;

10. Demonstrated regulatory compliance and cooperation with regulatory authorities;

11. Increased employment and enhancement of the labor market in the State, as well as enhancement of other racing enterprises in the State;

12. A preference for locations with a large, unique, or unaddressed market;

13. Whether the limited event wagering operator applicant would introduce a unique brand or affiliate;

14. Whether the issuance of a license to the limited event wagering operator applicant would increase the patron base in the State; and

15. Any other criteria, or the weighting of them, deemed by the Department to be in the best interests of the State.

G. Any applicant deemed qualified for licensure, or who was allocated a license, must be deemed suitable for licensure under A.R.S. § 51305.

H. In the event one or more licenses become available, the Department will announce an application period and follow the allocation procedures in R19-4-106.

Ariz. Admin. Code § R19-4-106

Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.