Section R19-2-414. Application for Original Teletrack Wagering Permit; Plan of Operation; Renewals of Teletrack Wagering Permit

A.      An applicant for a teletrack wagering permit shall submit an application and plan of operation to the Commission. The Commission shall issue a teletrack wagering permit for no more than three years.

B.       An applicant shall include the following in the plan of opera- tion:

1.        A feasibility study that estimates both gross revenue from the teletrack wagering operation and costs to operate. The feasibility study shall include:

a.         Types of wagering to be offered and hours during which pari-mutuel windows will be in operation,

b.        Estimated attendance at all additional wagering facilities,

c.         Level of anticipated wagering activity,

d.        Source and amount of estimated revenues other than pari-mutuel wagering,

e.         Cost of operating the teletrack wagering system,

f.         Amount and source of revenues needed for financ- ing the teletrack wagering operation,

g.        Proof of financial stability and assets sufficient to cover projected costs, and

h.        Estimate of the total amount of anticipated revenues to be paid to the state resulting from teletrack wager- ing operations;

2.        The following information regarding any group, conces- sion, or contract related to the teletrack wagering opera- tion whether within or outside of Arizona unless the information is already on record with the Department as part of the applicant’s original application to operate a racing meet:

a.         Copy of all contracts to provide service within Ari- zona;

b.        Name and background of the individuals responsible for operating the teletrack wagering system;

c.         Copies of proposed agreements for any transmission of audio-visual signals of racing events and the transmission of sales transaction and pari-mutuel output data; and

d.        Other information that, in the Director’s judgment, is or may be material, such as information pertaining to financial background and persons associated with the parties to the contract;

3.      The following information regarding security:

a.         Security measures to be employed to protect the teletrack wagering facilities,

b.        Security measures to be employed to protect the public, and

c.         Security measures to be employed to protect trans- mission of sales transaction and pari-mutuel output data; and

4.      The following information regarding equipment, commu- nication, and transmission:

a.         Type of data processing, communication, and trans- mission equipment to be used;

b.        Description of all computer services and all other methods used to transmit any data or signal; and

c.         Description of any alternate or backup system in case of principal system failure of communications or data-processing equipment used for forwarding wagers.

C.      Approval and amendments. A teletrack wagering permittee shall conduct a teletrack wagering operation only according to the provisions of an approved plan of operation. The teletrack wagering permittee shall obtain the Director’s written approval for any change to the plan of operation. The teletrack wagering permittee shall:

1.        Notify the Department of any anticipated change in the plan of operation;

2.        Report to the Department any changes in ownership or management groups,

3.        Provide the Department with a copy of all new contracts or amendments to existing ones, and

4.        Request the approval of the Director for any change in technology used to transmit sales transaction data.

D.      Renewal. A teletrack wagering permittee shall apply to the Commission for renewal of its teletrack wagering permit at the time the permittee makes application for a permit to operate a racing meet. The teletrack wagering permittee shall include in the renewal application the information required in subsec- tions (B)(1) through (4).

Historical Note

New Section R19-2-414 renumbered from R19-2-404 and amended by exempt rulemaking at 20 A.A.R. 2874, effective October 10, 2014 (Supp. 14-4).