N.H. Admin. Code § Lot 8202.02

Current through Register No. 50, December 12, 2024

Section Lot 8202.02 - Obtaining a License to Offer Pari-Mutuel Wagers on Historic Horse Racing

(a) A game operator employer shall obtain a license from the commission in accordance with this section prior to offering pari-mutuel wagers on historical horse races.

(b) Each applicant for an HHR license shall submit the following to the commission at least 90 days prior to the date they wish to begin offering pari-mutuel wagers on historic horse races:

(1) A completed "Application to Offer Wagering on Historic Horse Races" form (9/2021);

(2) For first time applicants or licensees seeking to operate at a new location, a plan of operation the includes:

a. The number of terminals to be operated at the facility broken down by terminal provide make, and model;

b. A detailed description of the proposed area designated for the sale of pari-mutuel pool, an the placement of terminals within the area, including a drawn-to-scale architectural rendering that describes:

1. The size, construction, and capacity of the area;

2. The number and location of each terminal; and

3. The type and location of surveillance and other security equipment, which shall me or exceed the requirements set forth in Lot 8205 below;

c. The type, number and denominations of pari-mutuel wagers to be offered;

d. General and game specific information regarding the pari-mutuel wagers, including the mathematical models, methods of calculating payouts, the configuration of pools, how money is allocated to the pools, including seed pools, and pool payout methodology;

e. Documentation from an independent testing laboratory confirming that the terminals comply with the requirements of this chapter;

f. The maintenance and repair procedures that will ensure the integrity of the terminals;

g. A description of the type of data processing, communication, totalizator and transmission equipment to be utilized;

h. A networking diagram detailing the manner in which the machines will be networked with the gaming servers and back office systems;

i. An IT security plan detailing the logical security measures for the gaming system;

j. Safeguards and controls that will be in place relative to the transmission of wagering data effectuate common wagering pools;

k. A copy of the written internal control policies and procedures designed to ensure effective control over the gaming operation, which shall meet or exceed the applicable requirements set forth in Lot 7206.08;

l. The practices and procedures that will ensure the security, safety, and comfort of patron in the designated area; and

m. For gaming operations annual gaming revenue of more than $1,000,000, an anti-money laundering (AML) compliance program that complies with the requirements of 31 CFR 1021.210, available as noted in Appendix B, to prevent the licensee from being used facilitate money laundering and financing of terrorist activities;

(3) A complete list of the parties to the application that includes:

a. Legal name and contact information of each of the parties;

b. The nature and type of ownership interest held;

c. Percent of ownership interest or number of stocks held;

d. How the ownership interest or stocks were obtained; and

e. The conditions under which the party holds and votes or has subscribed for such stock;

(4) The following documents for each party to the application:

a. A completed "Suitability Determination Release of Liability Waiver" form (9/2021);

b. A completed "Multi-Jurisdictional Personal History Disclosure Form" (as accessed an printed on March 2, 2018), available as noted in Appendix B;

c. A completed and notarized "New Hampshire State Police Criminal Records Release Authorization" form (DSSP392 rev. 5/2017) obtained from the commission authorizing the release of the individual's criminal history record;

d. A complete set of fingerprints taken by a qualified law enforcement agency as follows;

1. If fingerprints are digitally captured via a Livescan device, the original Livescan Site Form; or

2. If fingerprints are captured via ink impressions, the FBI FD-258 fingerprint card issued by the New Hampshire state police;

e. Payment for the criminal history record, payable to the "State of NH - Criminal Record and in the amount established by the New Hampshire state police;

f. A copy of a credit report issued no more than 3 months prior to the application;

g. A copy of the signed and filed tax returns from the prior 3 tax years, including supporting schedules; and

h. Any other information the commission requests that bears on the subject's suitability be associated with racing or charitable gaming in New Hampshire, including, but not limited to, the subject's character, personal associations, and the extent to which the subject is proper doing, or has done business in the manner in which it purports to operate within and outside the state of New Hampshire;

(5) For applicants that are organizations, financial statements reviewed or audited by a certified public accountant covering the same 3-year period as the tax returns submitted in accordance with (4)e. above, including a minimum of the following:

a. Balance sheet;

b. Income statement;

c. Cashflow statement; and

d. Statement of equity;

(6) For applicants structured as a limited liability corporation (LLC), a copy of the LLC's operating agreement outlining the company's ownership, management, and each member's rights an responsibilities;

(7) When applicable, the names and contact information of any persons or entities upon whom the business relies for financial support, including but not limited to loans or contributions of capital, an a brief description of the financial support being provided;

(8) When applicable, the pertinent details related to any judgements, petitions, relief, appointments issued to the business or any holding or intermediary companies within the last 1 years;

(9) When applicable, the pertinent details related to a gaming license denial, suspension, revocation against any party to the application by this or any other state;

(10) A copy of the applicant's responsible gaming plan that meets the requirements of Lot 8202.04

(11) Copies of all agreements between the applicant and all historic horse racing vendors, including the terminal provider, and all contracts relating to the operation of the pari-mutuel wagers. The applicant may mark any information that he or she deems confidential or proprietary. The commission shall not disclose any information so marked, unless required by law; and

(12) A letter of credit, bond with surety, or other instrument of financial security in an amount an form sufficient to cover outstanding vouchers together with any indebtedness incurred by the licensee to the state and affected licensed charitable organizations for an average 3-month period. no instance shall the amount be less than $100,000.

(c) If elements of the plan of operation are not available until time of construction or operation, the applicant may submit all available materials for consideration, and note what materials are pending an why. When the available materials otherwise demonstrate compliance, the commission shall grant a preliminary approval conditioned upon final review of all required documents or information.

(d) Failure to provide information required by this chapter, or as requested by the commission, shall b grounds for the commission to deny the request for an HHR license.

(e) When the operation of the pari-mutuel wagers and pools are provided via a contract between the HH licensee and an operations provider, the following shall apply:

(1) No contract between the HHR licensee and the operations provider shall be valid until reviewed by the commission, and found to be in compliance with RSA 284:22-b and this rule

(2) The operations provider shall be subject to the requirements set forth in Lot 8202.02(b)(1)-(4);

(3) The commission shall approve such contracts when:

a. The HHR licensee is in good standing with the commission;

b. The operations provider:

1. Has demonstrated that it would be deemed suitable to be associated with pari-mutuel wagers and charitable gaming in the state of New Hampshire if it were a direct licensee accordance with RSA 284:15-b, RSA 287-D:11 and Lot 7204; and

2. Is in good standing with the New Hampshire secretary of state;

c. The contract demonstrates that the operations provider will operate in accordance with a applicable laws, rules, and regulations; and

d. The contract requires that the HHR licensee and the operations provider are joint responsible for ensuring that pari-mutuel wagers and pools on historic horse races operate compliance with all applicable laws, rules, and regulations;

(4) Prior to operations commencing, the operations provider shall:

a. Complete a criminal background check, prior to any work being performed and every years thereafter, on each employee who will perform any work related to the operation of pari-mutuel wagers on historic horse races in New Hampshire regardless of whether that work take place at the HHR licensees' location or remotely;

b. Prohibit any employee who does not meet the provisions of RSA 287-D:14, IX fro participating in the operations of New Hampshire pari-mutuel wagers in any form; and

c. Maintain a certified list of all current employees participating in the operations of pari-mutuel wagers on historic horse races in New Hampshire, and make said list available to the commission upon request;

(5) Compensation paid to the operations provider by the HHR licensee shall not be paid fro revenue that is otherwise due to the licensed charitable organizations or the State of New Hampshire

(6) Any contract for the operation of pari-mutuel wagers on historic horse races shall not absolve the HHR licensee of its obligations under law, rule, or regulation, and as such the HHR licensee remain liable for the operation of the pari-mutuel wagers in compliance with all applicable laws, rules, an regulations; and

(7) The commission shall suspend or retract approval of the contract at any time when it determine that the operations provider is not operating in material compliance with New Hampshire laws, rule or regulations, or the commission determines that any of the conditions set forth in (2) above are n longer being met by the operations provider or the HHR licensee.

(f) The commission shall issue an HHR license when:

(1) All of the information required by (b) above has been submitted and otherwise meets the requirements of this chapter;

(2) The applicant has demonstrated effective safeguards and internal controls over the operation, an any significant control deficiencies identified during a commission audit have been resolved;

(3) The applicant has established, by clear and convincing evidence, that they possess the financial stability, the integrity, and responsibility to offer gaming to the public; and

(4) Pursuant to RSA 284:15-b, II and RSA 287-D:11, the attorney general determines that the applicant is suitable to be associated with racing and charitable gaming in this state.

(g) If at any time the information provided to the commission in accordance with this chapter has change or is otherwise found to be inaccurate, the HHR licensee shall submit updated or corrected information to the commission within 10 days of the event that resulted in the change, or discovery of the inaccuracy.

(h) Except as provided in Lot 8202.03 below, authorization to offer pari-mutuel wagers on historic horse races shall expire in conjunction with the licensee's games of chance license every 5 years, such the authorization granted in conjunction with a 2022 game operator employer license would expire with the game operator's 2026 license.

(i) In accordance with RSA 284:22-b, HHR licenses granted in accordance with this chapter shall not b transferred or sold.

N.H. Admin. Code § Lot 8202.02

Derived from Volume XLII Number 6, Filed February 10, 2022, Proposed by #13330, Effective 1/22/2022, Expires 1/22/2032.