(b)

1. (1) A book is prohibited from accepting wagers from a business entity unless all of the business entity’s owners, directors, officers, managers, partners, holders of indebtedness, and anyone entitled to payments based on profits or revenues of the entity are fully disclosed.
2. (2) If the business entity is owned or controlled by one (1) or more holding companies, each of the holding companies’ owners, directors, officers, managers, partners, holders of indebtedness, and everyone entitled to payments based on profits or revenues of the entity must be fully disclosed.

(c) A book which elects to accept wagers from business entities must conduct due diligence on each business entity from which the book will accept wagers which, at a minimum, includes, but is not limited to:

1. (1) Requiring the business entity to affirm that it has met all of the applicable requirements found in this part and that it is not established for the purpose of circumventing any applicable federal or state laws including, but not limited to, laws concerning illegal:

   1. (A) Sports wagering;
   2. (B) Electronic communications; and
   3. (C) Money laundering;
2. (2) Ascertaining all equity owners, holders of indebtedness, directors, officers, managers, partners, anyone entitled to payments based on the profits or revenues, and any designated individuals; and

3. (3)

   1. (A) Ascertaining the natural person who is the source of funds for each contribution to the business entity.
   2. (B) A book shall maintain records of the due diligence it performs on a business entity for no less than one (1) year following the closure of the wagering account of the business entity or for no less than one (1) year after rejection of a business entity wagering account application by the book.

(d) A book shall not accept wagers from a business entity if:

1. (1) The business entity does not make the affirmation or disclosures required by subsection (b) of this section or subdivision (c)(1) of this section;
2. (2) The book is unable to verify the identity of all the equity owners, holders of indebtedness, directors, officers, managers, partners, anyone entitled to payments based on the profits or revenues, and any designated individuals of the business entity; or
3. (3) The book is unable to verify the natural person who is the source of funds for each contribution to the business entity.

(e)

1. (1) Upon receipt of updated information from a business entity, a book shall verify the updated information.
2. (2) If a book is unable to verify the updated information within thirty (30) days of the book’s receipt of the updated information from the business entity, the book shall suspend the wagering account and not allow further wagering activity on the wagering account.

(f) A book shall require a business entity from which the book accepts wagers to provide:

1. (1)

   1. (A) For business entities from which the book accepts wagers aggregating more than five million dollars ($5,000,000) in a calendar year, an independent third-party verification concerning to whom the business entity made payments based on profits or revenues to ensure no payments were made to persons other than those permitted by this part to receive such payments.
   2. (B) If the book does not receive a copy of the independent third-party verification prior to April 1 of the year following the year in which the business entity placed wagers in excess of five million dollars ($5,000,000), the book shall suspend the wagering account and not allow further wagering activity on the wagering account; or

2. (2)

   1. (A) For business entities from which the book accepts wagers aggregating five thousand dollars ($5,000,000) or less within a calendar year, an affirmation stating the business entity did not make payments based on profits or revenues to persons other than those permitted by this part to receive such payments.
   2. (B) If the book does not receive such affirmation prior to April 1 of the year following any year in which the business entity placed wagers with the book, the book shall suspend the wagering account and not allow further wagering activity on the wagering account.

(g)

1. (1) A book shall report any violation or suspected violation of law or rule related to business entity wagering to the commission immediately.
2. (2) Such reporting shall include, but is not limited to, any violation or suspected violation of relevant federal laws such as The Interstate Wire Act, 18 U.S.C. § 1084, Part C of the Organized Crime Control Act of 1970, 18 U.S.C. § 1955, and Title 31 anti-money laundering laws.

(h)

1. (1) A book may only accept wagering activity from a business entity, acting through one (1) or more designated individuals, through a wagering account established by the business entity and may only deposit winnings into such wagering account.
2. (2) The book must use an account wagering system for such wagering activity.
3. (3) The requirement to use an account wagering system will become effective upon the date approved by the commission.

(j)

1. (1) A book shall report the suspension or closure of a business entity wagering account to the commission within five (5) days of suspension or closure and shall include the reason for such suspension or closure in the report.
2. (2) A book shall report the reinstatement of a suspended business entity wagering account to the commission within five (5) days of reinstatement and shall include the reasons the book reinstated the wagering account.

(m)

1. (1) As used in this section, “holding company” means any corporation, firm, partnership, limited partnership, limited liability company, trust, or other form of business organization which, directly or indirectly owns, as defined in this part; controls, as defined in this part; or holds with power to vote any part of a business entity subject to this section.
2. (2) In addition to any other reasonable meaning of the words used, a holding company indirectly has, holds, or owns any power, right, or security if it does so through any interest in a subsidiary or successive subsidiaries, however many such subsidiaries may intervene between the holding company and the business entity subject to this section.