Mich. Admin. Code R. 432.711

Current through Vol. 24-23, January 1, 2025

Section R. 432.711 - Definitions

Rule 711. As used in these rules:

(a) "Act" means the lawful sports betting act, 2019 PA 149, MCL 432.401 to 432.419.

(b) "Affiliate" means a person that, directly or indirectly, through 1 or more intermediaries, controls or is controlled by a sports betting operator.

(c) "Affiliate marketer" means a person involved in promoting, marketing, and directing business to online gaming sites who is compensated based on the volume of customer referrals to an online gaming site or customer activity, including but not limited to, number of registrations, number of depositing registrations, or wagering activity, or both.

(d) "Agent" means any individual who is employed by any agency of this state, other than the board, the state police, or attorney general, and who is assigned to perform full-time services on behalf of or for the benefit of the board regardless of the title or position held by that individual.

(e) "Authorized participant session" means the period of time that an authorized participant is logged on to an internet sports betting platform.

(f) "Conflict of interest" means a situation, relationship, or association in which the private interest of employees, agents, and contractors of the board may influence the judgment of the employee, agent, or contractor in the performance of his or her public duty under the act.

(g) "Contractor" means any individual not employed by this state who performs services on behalf of or for the benefit of the board and requires unescorted access to board facilities.

(h) "Event category" means a specific type of athletic event or other event governed by a specific sports governing body or other oversight body (for example, professional basketball governed by the National Basketball Association).

(i) "Event wagering system" means the hardware, software, firmware, communications technology, other equipment, as well as the sports betting operator procedures implemented to allow an authorized participant to participate in wagering, and, if supported, the corresponding equipment related to the display of the wager outcomes, and other similar information necessary to facilitate an authorized participants participation. The event wagering system provides the authorized participant with the means to place and manage wagers. The event wagering system provides the sports betting operator with the means to review internet sports betting accounts, if supported, suspend events, generate various wagering/financial transaction and account reports, input outcomes for events, and set any configurable parameters. The term does not include computer equipment or communications technology used by an authorized participant to access the internet sports betting platform. Unless otherwise specified in these rules, the term internet sports betting platform includes the entire event wagering system.

(j) "Excluded person" means any individual who has been involuntarily placed in the responsible gaming database by the executive director and who is prohibited from establishing an internet sports betting account or participating in internet sports betting, or both, offered under the act or these rules.

(k) "Executive Director" means the executive director of the Michigan gaming control board, appointed under section 4 of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.204.

(l) "Independent integrity monitoring provider" means an independent person who is registered with the board as a vendor and who receives reports of unusual wagering activity from a sports betting operator or internet sports betting platform provider for the purpose of assisting in identifying suspicious wagering activity.

(m) "Key person" means any of the following except as otherwise provided in paragraph (vii):

(i) A director of the applicant.

(ii) A managerial employee of the applicant that performs the function of principal executive officer, principal operations officer, or principal accounting officer.

(iii)A person who holds more than 5% ownership interest in the applicant.

(iv) An affiliate of the applicant.

(v) A director of an affiliate of the applicant.

(vi) A managerial employee of an affiliate of an applicant that performs the function of principal executive officer, principal operations officer, or principal accounting officer.

(vii) Key person does not include an elected or appointed representative of any applicant or licensee that is a federally recognized Indian tribe located in this state unless the representative is also a full-time employee of the applicants or licensees internet sports betting operations. A key person for an Indian tribe includes a primary management official of the applicant who has management responsibilities for the applicants internet sports betting operations.

(n) "Layoff wager" means a wager placed by a sports betting operator or internet sports betting platform provider with another sports betting operator or internet sports betting platform provider for the purpose of offsetting authorized participant internet sports betting wagers.

(o) "Licensee" means a person who holds a license under the act.

(p) "Prohibited person" means any excluded person, any voluntarily-excluded person, and all of the following:

(i) An individual who is under the age of 21.

(ii) Any employee of, or appointee to, the Michigan gaming control board.

(iii)Employees of a sports betting operator. An employee of a sports betting operator shall not create an internet sports betting account or place an internet sports betting wager with the sports betting operator for which he or she is employed unless using a test account under R 432.739a.

(iv) Employees of an internet sports betting platform provider. An employee of an internet sports betting platform provider shall not create an internet sports betting account or place an internet sports betting wager with the sports betting operator for which the internet sports betting platform provider supplies the internet sports betting platform unless using a test account under R 432.739a.

(v) Employees and appointees of a tribal gaming regulatory agency with jurisdiction over internet gaming being operated under such tribes gaming ordinance and the Indian gaming regulatory act, 25 USC 2701 to 2721.

(vi) Occupational licensees and applicants. Occupational licensees and applicants shall not place wagers with the sports betting operator or internet sports betting platform provider for which they are employed or for which they had to qualify.

(vii) An individual not in an authorized location to make a wager.

(viii) An individual placing an internet sports betting wager on behalf of another.

(ix) An individual with access to non-public/exclusive information related to an event or an individual who may impact the outcome of an event or wager type is prohibited from wagering on any event overseen by the relevant sports governing body.

(x) Athletes, coaches, managers, owners, and anyone with sufficient authority to influence the outcome of an event are prohibited from wagering on events overseen by the relevant sports governing body.

(xi) Employees of a sports governing body or its members teams are prohibited from wagering on any event overseen by the relevant sports governing body.

(xii) Owners of a sports governing body or member team are prohibited from wagering on any event overseen by the sports governing body or any event in which a member team of that sports governing body participates.

(xiii) At the boards discretion, an individual on a list provided by a team or sports governing body may be prohibited from wagering on any event overseen by the relevant sports governing body.

(xiv) An individual wagering in violation of state, tribal, or federal law.

(xv) Other prohibited persons as determined by the board.

(q) "Publicly traded corporation" means any corporation or other legal entity regulated by the U.S. Securities and Exchange Commission under the securities exchange act of 1934, 15 USC 78a to 78qq, or securities act of 1933, 15 USC 77a to 77aa.

(r) "Secure transaction file" means a file that contains data that cannot be modified without detection.

(s) "Self-authentication process" means a method used by a system to verify the validity of software and includes the following:

(i) The method requires the calculation of an output digest that is compared to a secure embedded value.

(ii) The output digest must be of 128-bit complexity, at a minimum.

(iii)Software is authenticated if the calculated digest equals the secure embedded value.

(t) "Self-exclusion list" means a list of individuals who voluntarily excluded themselves from establishing or maintaining an internet sports betting account with a sports betting operator or internet sports betting platform provider.

(u) "Strong authentication" means a method that has been demonstrated to the satisfaction of the board to effectively provide higher security than a username and password alone.

(v) "Suspended account" means an internet sports betting account that has been temporarily disabled from engaging in wagering activity.

(w) "Suspicious wagering activity" means unusual wagering activity that cannot be explained and is indicative of any of the following:

(i) Match-fixing.

(ii) The manipulation of an event.

(iii) Misuse of inside information.

(iv) A potential breach of a sports governing bodys internal rules or code of conduct pertaining to sports betting.

(v) Any other conduct that corrupts the outcome of an event.

(vi) Any other prohibited activity.

(x) "Targeted mailing" means an advertisement or promotional offer from a sports betting operator or an internet sports betting platform provider directed to an individual on the basis of specific criteria, such as being a member or former member of a rewards club or a participant in social games. "Targeted mailing" does not include mass communication, including mailings or e-mailings, made to an entire area or zip code or targeted list, nor does it include an advertisement that arrives in a packet of 5 or more non-gaming advertisements, if the packet of advertisements is addressed to "resident," "occupant," or some similar wording and not to a specific individual. "Targeted mailing" further does not include any "popup" advertisement that appears on an individuals computer or mobile device on the basis of his or her IP Address.

(y) "Things of value" means anything of value that may be used to place an internet sports betting wager.

(z) "Unusual wagering activity" means abnormal wagering activity exhibited by one or more authorized participants and considered by a sports betting operator or internet sports betting platform provider as a potential indicator of suspicious wagering activity. Unusual wagering activity may include the size of an authorized participant's internet sports betting wager or increased wagering volume on a particular event or wager type.

(aa) "Voluntarily-excluded person" means any individual whose name is included, at his or her own request, in the responsible gaming database or on a self-exclusion list, or both.

(bb) "Wager type" means a type of internet sports betting wager, which may include, but is not limited to, the following:

(i) Single-game bets.

(ii) Teaser bets.

(iii) Parlays.

(iv) Over-under.

(v) Moneyline.

(vi) Pools.

(vii) Exchange betting.

(viii) In-game betting.

(ix) Proposition bets.

(x) Straight bets.

Mich. Admin. Code R. 432.711

2020 MR 22, Eff. 12/2/2020