Mich. Admin. Code R. 432.729

Current through Vol. 24-22, December 15, 2024

Section R. 432.729 - Vendors

Rule 729.

(1) All of the following apply regarding vendor registration:

(a) A vendor who provides goods or services, or both, directly or indirectly, to a sports betting operator or internet sports betting platform provider in connection with its Michigan internet sports betting operation may be required to register with the board. Vendors requiring registration include, but are not limited to, the following:

(i) Affiliate marketers that do not have an agreement based on the sharing of customer revenue.

In connection with its vendor registration, the affiliate marketer must certify it does not promote or market, or both, illegal sports betting sites to individuals located in Michigan. An illegal sports betting site is one that is not licensed to accept wagers from customers located in Michigan or any other state.

(ii) Independent integrity monitoring providers.

(iii) Payment processors.

(iv) A person that provides over $100,000.00 worth of goods or services, or both, to any sports betting operator or internet sports betting platform provider in connection with its Michigan internet sports betting operation in a calendar year.

(v) Data centers providing physical security and infrastructure.

(vi) Any other person as considered necessary by the board.

(b) Unless otherwise provided for by the board, a person must be registered as a vendor before providing goods or services, or both, as a vendor to a sports betting operator or sports betting platform provider.

(c) A sports betting operator or sports betting platform provider is prohibited from using an unregistered vendor to provide goods or services that require a vendor registration.

(d) Unless otherwise provided for by the board, the following persons are not required to register as a vendor:

(i) Insurance companies.

(ii) A person or entity that provides legal services.

(iii) Entities providing medical related services.

(iv) Michigan public institutions of higher education.

(v) Public utilities regulated by the Michigan public service commission.

(vi) A Michigan or federally chartered depository financial institution.

(vii) A person or business that provides goods or services as a result of the licensees employees engaging in business travel, including transportation, lodging, food, and fuel providers.

(viii) A person who provides employee training or professional development to a licensee.

(ix) A person who provides conferences, seminars, publications, or memberships that will directly contribute to the work performance or professional development of the licensees employees.

(e) To register, a vendor must complete and file with the board an application for registration and required disclosure forms in the manner and form prescribed by the board. An application for registration and required disclosure forms must be submitted to the board, together with a nonrefundable application fee of $200.00 by a payment method acceptable to the board, such as a certified check, cashiers check, money order made payable to "State of Michigan", or electronic fund transfer.

(2) All of the following apply regarding renewal of a vendor registration:

(a) A vendor must renew its registration every 5 years after initial registration.

(b) A vendor intending to renew its registration must, at least 30 days before expiration of its registration, submit the annual registration fee and application in the manner and form required by the board.

(3) All of the following apply regarding vendor conduct:

(a) A vendor must, at all times, conduct itself in a manner that does not compromise the integrity of internet sports betting or violate any applicable provisions of the act and these rules.

(b) 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. The following may be considered during an investigation:

(i) Criminal records.

(ii) Suspension of licenses, registration certificates, or their equivalent, or any other adverse actions in other jurisdictions.

(iii) Business reputation.

(iv) Associations with businesses and individuals.

(v) Compliance with gaming laws and regulations in Michigan and other jurisdictions.

(vi) Any other information considered appropriate by the board.

(c) Vendors agree to be subject to the jurisdiction of the board, have a continuing duty to provide information or records requested by the board, must cooperate with the board in any investigation, inspection, audit, or inquiry, and must allow the board access to its facilities that are relevant to Michigan internet sports betting operations.

(d) If the investigation reveals a vendors 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 any other action necessary to protect the integrity of internet sports betting in this state, or all 3.

(e) Vendors have a continuing duty to notify the board of any change in information previously submitted to the board.

Mich. Admin. Code R. 432.729

2020 MR 22, Eff. 12/2/2020