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§ 2072. Approval to Conduct Advance Deposit Wagering by an Out-of-State Applicant.


Barclays Official California Code of Regulations Currentness
Title 4. Business Regulations
Division 4. California Horse Racing Board
Article 26. Advance Deposit Wagering (Refs & Annos)
4 CCR § 2072
§ 2072. Approval to Conduct Advance Deposit Wagering by an Out-of-State Applicant.
(a) Prior to an Account being established or wagering being conducted the Applicant located out-of-state must be Board-approved. All approvals granted shall be subject to the provisions of Business and Professions Code section 19460 et. seq.
(b) An out-of-state Applicant shall complete an Application For Approval to Conduct Advance Deposit Wagering, CHRB-133 (Rev. 02/19), hereby incorporated by reference, which is available at the Board's administrative office. The Application must be filed not later than 90 days in advance of the scheduled start date of operation. A bond from a surety company admitted in the state of California or other form of financial security in the amount of $500,000 must accompany the Application. The term of approval is two years from the date the approval is issued.
(c) Out-of-state Applicants shall establish security access policies and safeguards pursuant to Business and Professions Code section 19604.
(d) Out-of-state Applicants that accept wagers from California residents shall provide a full accounting and verification of the source of the wagers, and a detailed wagering information file that includes, but is not limited to dollar amount wagered, pool on which the wager was placed, race number and racing venue, zone, breed, zip code of the Account Holder, time wagering stopped, and time of the wager in the form of a daily download of pari-mutuel data to the Board designated database, CHRIMS, Inc., that is compatible with a Comma Delimited Text File.
(e) Out-of-state Applicants shall provide financial information that demonstrates the financial resources to operate Advance Deposit Wagering and provide a detailed budget that shows anticipated revenue, expenditures and cash flows by month projected for the term of the approval.
(f) The Board may conduct investigations, inspections or request additional information from the out-of-state Applicant as it deems appropriate in determining whether to approve the Application.
(g) The Board, or its designee, shall be given access for review and audit of all records. The out-of-state Applicant shall, at their location during hours of operation, make such information available. The Board may require the out-of-state Applicant to annually submit audited financial statements.
(h) All advertisements shall contain a statement that persons under 18 are not allowed to open or have access to Accounts. All advertisements shall contain contact information for a recognized problem-gambling support organization.
(i) The Board shall notify the out-of-state Applicant in writing within 30 calendar days from the receipt date by the Board's administrative office if the Application is complete or deficient. If the Application is deficient, the notice shall include:
(1) Instructions as to what are required of the out-of-state Applicant to complete the Application.
(2) Instructions for requesting additional time to satisfy the requirements listed in the notification, if needed.
(j) The Board shall approve or deny an Application within 90 calendar days from the receipt date by the Board unless the out-of-state Applicant requests and is granted additional time to supply information.
(k) If the Board denies an Application, the out-of-state Applicant has 30 calendar days from the receipt date of the Board's denial notification, to request a reconsideration of the Board's decision. This request must be in writing and sent to the Board's administrative office. The Board shall respond in writing to the reconsideration request within 30 working days from the receipt date of the request. If reconsideration is denied, the out-of-state Applicant may file for judicial review in accordance with section 11523 of the Government Code.
(l) Subsequent to the issuance of an approval to conduct Advance Deposit Wagering under this article, changes or amendments to information or operating procedures contained in an Application will be permitted by order of the Board or by Board approval of a request submitted in writing by the Applicant.
(m) As a condition of approval the out-of-state Applicant shall designate a California agent for receipt of service of process.
(n) By submitting the Application the out-of-state Applicant consents to the jurisdiction of California courts and the application of California law as to all California wagers and operations.
Note: Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Sections 19460 and 19604, Business and Professions Code.
1. New section filed 1-7-2002; operative 1-7-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).
2. Amendment of subsections (a)-(d) and (k) filed 1-28-2020; operative 4-1-2020 (Register 2020, No. 5).
This database is current through 9/11/20 Register 2020, No. 37
4 CCR § 2072, 4 CA ADC § 2072
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