§ 183.4. Review and approval.
(a) The Commission shall determine the suitability, fitness and experience of a SPMO and its key employees, consistent with the public interest, convenience and necessity and the best interests of racing generally, including, the provisions set forth in section 9318(e) and (f) of the act (relating to licenses for horse race meetings) and the following:
(1) Meeting general industry standards for business and financial practices, procedures and controls.
(2) Possession of a wagering system that ensures that all wagering information is transmitted to and calculated in the appropriate host track pool.
(3) Utilization of a totalisator system that meets wagering-industry standards and certification criteria.
(4) Meeting general industry standards for physical security of computerized wagering systems, business records, facilities and patrons.
(5) Having no indications of improper manipulation of a secondary pari-mutuel organization’s wagering system, including software.
(6) Having policies and procedures that ensure a secondary pari-mutuel organization’s key individuals have applied and are eligible for all required occupational licenses.
(7) Having an annual independent audit with no audit opinion qualifications that reflect adversely on integrity.
(8) Having a system that verifies the identity of each person placing a wager and requires the person placing a wager to disclose each beneficial interest in a wager the secondary pari-mutuel organization accepts.
(9) Having a real-time independent monitoring system to monitor wagering activity to detect suspicious patterns, including any that might indicate criminal activity or regulatory violations. The system must verify each transaction performed by the totalisator system and provide expeditious notice of any discrepancies or suspicious activity to the host track, wagering site, due diligence investigating body and any affected regulatory agency.
(10) Having a satisfactory record of customer relations, including no excessive unresolved patron complaints concerning the secondary pari-mutuel organization’s business practices.
(11) Holding required permits, licenses, certifications or similar documents that may be required by a racing, gaming or other pari-mutuel wagering jurisdiction.
(12) Having sufficient measures to protect customer funds from being commingled with other moneys.
(13) Publicizing and providing a sufficient program for customer self-exclusion and wagering limitation.
(14) Having expertise in pari-mutuel wagering and being technologically capable of participating in simulcast and wagering activities.
(b) As set forth in section 9353(b) of the act (relating to license application procedures), the Commission may also consider the following information in making a determination for a SPMO’s initial license or renewal application:
(1) The integrity of the applicant and its principals, including:
(i) Whether the applicant or its principals are unsuitable.
(ii) Whether the applicant or its principals have been a party to litigation over business practices, disciplinary actions over a business license or refusal to renew a license.
(iii) Whether the applicant or its principals have been a party to proceedings in which unfair labor practices, discrimination or violation of government regulations pertaining to racing or gaming laws was an issue or bankruptcy proceedings.
(iv) Whether the applicant or its principals have failed to satisfy judgments, orders or decrees.
(v) Whether the applicant or its principals have been delinquent in filing tax reports or remitting taxes.
(2) The quality of physical facilities and equipment.
(3) The financial ability of the applicant to conduct wagering.
(4) The protections provided to safeguard accounts, including a certification from the licensee’s chief financial officer that account funds will not be commingled with other funds as required under this chapter.
(5) The management ability of the applicant and its principals.
(6) Compliance of the applicant with applicable statutes, charters, ordinances and administrative regulations.
(7) The efforts of the applicant to promote, develop and improve the horse racing industry in this Commonwealth.
(8) The efforts of the applicant to safeguard and promote the integrity of pari-mutuel wagering in this Commonwealth.
(9) The economic impact of the applicant upon the Commonwealth.
(10) The secondary pari-mutuel organization and the secondary pari-mutuel organization’s owners and sources of funds must have sufficient financial means to participate in simulcast and wagering activities, including sufficient assets and means to pay industry-related debts and obligations and to fund the operations of the secondary pari-mutuel organization.
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