(a) A book engaging in global risk management may provide direction, management, consultation, and/or instruction to the operator of a wagering pool located in a jurisdiction approved by the Arkansas Racing Commission concerning:

1. (1) The management of risks associated with a wagering pool for a race or sporting event or any other event for which the wagering pool is permitted to accept wagers;
2. (2) The determination of where lines, point spreads, odds, or other activity relating to betting or wagering are initially set and the determination of whether to change such lines, point spreads, odds, or other activity relating to betting or wagering;

3. (3) Whether or not to:

   1. (A) Accept or reject bets or wagers;
   2. (B) Pool bets or wagers; or
   3. (C) Lay off bets or wagers;
4. (4) The use, transmittal, and accumulation of information and data for the purpose of providing global risk management; and
5. (5) Any other activity associated with a wagering pool if approved in writing by the commission prior to a book commencing direction, management, consultation, and/or instruction concerning the activity.

(b) A book which intends to provide global risk management shall:

1. (1)

   1. (A) Enter into a written agreement to provide global risk management with any operator of a wagering pool to which the book proposes to provide global risk management.
   2. (B) A copy of such executed agreement with an operator of a wagering pool located outside of Arkansas shall be provided to the commission no later than the date on which the book commences global risk management for the operator of the wagering pool;
2. (2) Provide details to the commission regarding any permissible jurisdiction other than Arkansas where the book intends to provide global risk management no later than the date on which the book commences global risk management in such permissible jurisdiction;

3. (3)

   1. (A) No later than the date on which a book commences global risk management, submit the book’s systems of accounting and internal control utilized for global risk management to the commission.
   2. (B) Such systems must include provisions for complying with all federal laws and regulations; and
4. (4) Provide such other information as the commission may require concerning global risk management.

(c)

1. (1) In addition to the requirements contained in subsection (b) of this section, at least thirty (30) days prior to providing global risk management to a Arkansas licensee, a book shall submit to the commission the written agreement for the global risk management provided to the Arkansas licensee.
2. (2) The commission may object in writing to such agreements in the commission’s sole and absolute discretion.
3. (3) If the commission objects to an agreement, the book shall not provide global risk management to the Arkansas licensee until the book has resubmitted the agreement to the commission, and the commission has indicated in writing that the commission does not object to the resubmitted agreement.