(a) Definitions. As used in this section:

1. (1) “Director” means the Director of the Arkansas Racing Commission or the commission’s designee;

2. (2) “Communications technology” means the methods used and the components employed to facilitate the transmission of information, including but not limited to:

   1. (A) Transmission and reception systems based on:

(i) Wire;

1. (ii) Cable;

   1. (iii) Radio;

      1. (iv) Microwave;
      2. (v) Light;
      3. (vi) Optics;
      4. (vii) Cellular data; or
      5. (viii) Computer data networks; and
   2. (B) The internet;
2. (3) “Equipment associated with mobile gaming” means associated equipment, which will be approved as associated equipment;
3. (4) “Licensed gaming establishment” means the establishment of a licensee, which includes all land, together with all buildings and improvements located thereon;

4. (5)

   1. (A) “Licensee” means a person or entity licensed to conduct casino gaming operations, who at all times exposes to the public for play one hundred (100) or more slot machines and at least one (1) table game within its licensed gaming establishment.
   2. (B) The term does not include a person or entity licensed as a holder of a security or other ownership interest in the licensee, or as an officer, director, or key employee of the licensee, or due to any other relationship or involvement with the licensee or gaming operation;
5. (6) “Mobile communications device” means a device which displays information relating to the game to a participant in the game as part of a system;

6. (7) “Mobile gaming system” or “system” means a system that allows for the conduct of sports wagering through mobile communications devices operated by the use of communications technology that allows a patron to bet or wager, and corresponding information related to the display of the:

   1. (A) Game;
   2. (B) Gaming outcomes; or
   3. (C) Other similar information;
7. (8) “Operator of a mobile gaming system” or “operator” means a person or entity who under any agreement whereby consideration is paid or payable for the right to place a mobile gaming system engages in the business of placing and operating a mobile gaming system and who is authorized to share in the revenue from the mobile gaming system without having been individually licensed to conduct gaming at the establishment; and
8. (9) All mobile gaming systems must be approved by the commission.

(b) Mobile gaming systems may be exposed for play as follows:

1. (1) A system may only be exposed for play to the public by an operator licensed by the commission and approved by the commission; and

2. (2)

   1. (A) A licensee or an operator may submit a request to the commission for approval to expose a system for play at a licensed gaming establishment.

   2. (B) Such a request must specify at a minimum:

      1. (i) How the operator intends to:

(b) (b) Reasonably ensure only players of lawful age will operate the mobile communications devices; and

1. (ii) Such additional information as the commission may require.

   1. (C) A licensee or an operator aggrieved by a decision of the commission may request a hearing before the commission and may appeal any decision by the commission under the Arkansas Administrative Procedure Act, Arkansas Code § 25-15-201 et seq.

      1. (c) In addition to any other requirements set forth in this part, the operator and licensee where a system is operated shall comply with the following requirements:
2. (1) Only a system that has been approved by the commission may be exposed for play within a licensed gaming establishment;
3. (2) The licensee shall be responsible for all payouts from each system operated within its licensed gaming establishment;
4. (3) Systems that expose games with fixed payoff schedules that exceed two hundred fifty thousand dollars ($250,000), or in the case of systems that expose games with progressive payoff schedules that are expected to exceed two hundred fifty thousand dollars ($250,000), are limited to casino gaming operations;

5. (4)

   1. (A) At the request of the commission, an operator shall deposit with the commission and thereafter maintain a revolving fund in an amount of twenty thousand dollars ($20,000) unless a lower amount is approved by the commission, which shall be used to ensure compliance of the system with applicable laws, rules, and regulations.
   2. (B) Upon surrendering its operator’s license, the commission may refund the balance remaining in the revolving fund;

6. (5)

   1. (A) All revenue received from the system, regardless of whether any portion of the revenue is shared with the operator, must be attributed to the licensee of the licensed gaming establishment and counted as part of the gross revenue of the licensee.
   2. (B) The operator, if receiving a share of the revenue from a system, is liable to the licensee for the operator’s proportionate share of the license fees paid by the licensee;
7. (6) Each separate mobile communications device is subject to the same fees and taxes made applicable to all other casino gaming receipts; and

8. (7) Operators shall retain and provide commission agents, upon request, all records pertaining to their mobile gaming systems including, without limitation, all revenue and cash records, end-of-day reports, computer room visitors’ logs, details of any patron disputes, device or game performance reports, weekly reports, and any other financial or nonfinancial records or reports required to be provided by the commission.

   1. (d) Failure to comply with any of the requirements set forth in subsection (c) of this section shall be an unsuitable method of operation.