(b) Definitions. As used in this section:

1. (1) “Commission” means the Arkansas Racing Commission or the commission’s designee;
2. (2) “Assumes responsibility” means to acquire control over, or ownership of, a person, or to acquire the authority, by contract or otherwise, to direct a person to make corrections, modifications, or changes to any aspect of the service or services provided by the person, including corrections, modifications, or changes to software or hardware;

3. (3)

   1. (A) “Geolocation service provider” means a person who identifies, or provides information for the identification of, the geographic location of individuals to a licensed operator of interactive gaming, licensed interactive gaming service provider, or licensed manufacturer of interactive gaming systems for purposes of interactive gaming.
   2. (B) This definition does not include:

(i) A person who otherwise generally provides such information for purposes other than interactive gaming;

1. (ii) A licensed operator of interactive gaming who obtains such information for its own use;

   1. (iii) A licensed interactive gaming service provider, or licensed manufacturer of interactive gaming systems who provides such information; or

      1. (iv) A person who provides such information to a licensed operator of interactive gaming, licensed interactive gaming service provider, or licensed manufacturer of interactive gaming systems so long as the licensed operator of interactive gaming, licensed interactive gaming service provider, or licensed manufacturer of interactive gaming systems assumes responsibility for the information provided;
2. (4) “Information technology service provider” means a person who, on behalf of another licensee, provides management, support, security, or disaster recovery services for commission-regulated hardware or software;

3. (5)

   1. (A) “Patron identification service provider” means a person who verifies, or provides information for the verification of, the identification of individuals to a licensed operator of interactive gaming, licensed interactive gaming service provider, or licensed manufacturer of interactive gaming systems for purposes of interactive gaming.

   2. (B) This definition does not include:

      1. (i) A person who otherwise generally provides such information for purposes other than interactive gaming;
      2. (ii) A licensed operator of interactive gaming who obtains such information for its own use;
      3. (iii) A licensed interactive gaming service provider, or licensed manufacturer of interactive gaming systems who provides such information; or
      4. (iv) A person who provides such information to a licensed operator of interactive gaming, licensed interactive gaming service provider, or licensed manufacturer of interactive gaming systems so long as the licensed operator of interactive gaming, licensed interactive gaming service provider, or licensed manufacturer of interactive gaming systems assumes responsibility for the information provided;

4. (6)

   1. (A) “Payment processing service provider” means a person who directly facilitates the depositing of funds into or withdrawing of funds from interactive gaming accounts for a licensed operator of interactive gaming or licensed interactive gaming service provider.

   2. (B) This definition does not include:

      1. (i) A licensed operator of interactive gaming who provides such services for its patrons;
      2. (ii) A licensed interactive gaming service provider who provides such services; or
      3. (iii) A person who provides such services to a licensed operator of interactive gaming or licensed interactive gaming service provider, so long as the licensed operator of interactive gaming or licensed interactive gaming service provider assumes responsibility for the service provided; and

5. (7) “Service provider” means a person who:

   1. (A) Acts on behalf of another licensed person who conducts casino gaming operations, and who assists, manages, administers, or controls wagers or games, or maintains or operates the software or hardware of games on behalf of such a licensed person, and is authorized to share in the revenue from games without being licensed to conduct gaming at an establishment;
   2. (B) Is an interactive gaming service provider as defined pursuant to this part;
   3. (C) Is a cash access and wagering instrument service provider;
   4. (D) Is an information technology service provider;
   5. (E) Acts on behalf of another licensed person who conducts casino gaming operations where the services provided include those functions that fall within the definition of “gaming employee”;
   6. (F) Is a geolocation service provider;
   7. (G) Is a patron identification service provider; or

   8. (H) Is a payment processing service provider.

      1. (c) Service provider investigation classifications.
6. (1) The level of investigation conducted by the commission of a service provider applicant is classified based on the significance of the activities to be provided on behalf of a licensee and regulatory risk of the service provider.

7. (2) The investigation classifications are as follows:

   1. (A) The following service providers are subject to a class 1 investigation:

      1. (i) Any interactive gaming service provider;
      2. (ii) Any service provider who receives payments based on earnings or profits from any gambling game; or
      3. (iii)

(b) (b) Such determination shall be based on the policy set forth in this subsection; and

1. (B) Any service provider other than those identified in subdivision (c)(2)(A) of this section is subject to a class 2 investigation.

   1. (d) A licensee may only use a service provider that is licensed as such by the commission.

(f)

1. (1) A person may act as a service provider only if that person holds a license authorizing the person to act as a service provider and subject to any further conditions, limitations, and restrictions imposed by the commission.
2. (2) Once licensed, a service provider may act on behalf of one (1) or more casino licensees.

(g) Licensing.

1. (1) Applications for a service provider license that is subject to a class 1 investigation shall be made, processed, and determined in the same manner as applications for casino licenses, using such forms as the commission may require or approve.

2. (2)

   1. (A) Applications for a service provider license that is subject to a class 2 investigation shall be made, processed, and determined using such forms as the commission may require or approve and must be accompanied and supplemented by such documents and information as may be specified or required.
   2. (B) Such service providers shall be subject to an investigation and review by the commission as deemed necessary by the commission based on the regulatory risk and the intended activities of the service provider but that is at a level less than a class 1 investigation.
3. (3) Before receiving a license, a service provider must meet the qualifications for licensing.

4. (4)

   1. (A) Nothing in this subpart shall be construed to limit or prevent the commission from conducting such supplementary or expanded investigations of any applicant for a service provider license as determined necessary by the commission.
   2. (B) The commission may require an applicant for a service provider license to pay any supplementary investigative fees and costs in accordance with this part.

(h) An applicant for a service provider license shall have the burden of showing that its operations are secure and reliable.

1. (i) Applications for a service provider license shall be subject to the application and investigative fees established pursuant to this part.

(j)

1. (1) The premises on which a service provider conducts its operations is subject to the power and authority of the commission.
2. (2) It shall be an unsuitable method of operation for a service provider holding a license issued by the commission to deny any commission member or agent, upon proper and lawful demand, access to, inspection, or disclosure of any portion or aspect of their operations.

(k) A service provider shall be liable to the licensee on whose behalf the service provider acts for the service provider’s proportionate share of the fees and taxes paid by the licensee.

1. (l) Employees of service provider. Any employee of a service provider who is connected directly with the operations of the service provider or who, on behalf of a licensee or on behalf of the service provider, performs the duties of a gaming employee is a gaming employee subject to the provisions of this part.

   1. (m) License fees.
2. (1) Before the commission issues an initial license or renews a license for a service provider, the service provider shall pay a license fee of one thousand dollars ($1,000).
3. (2) All service provider licenses shall be issued for the calendar year beginning on January 1 and expiring on December 31.
4. (3) If the operation as a service provider is continuing, the fee prescribed by subdivision (m)(1) of this section shall be due on or before December 31 of the ensuing calendar year.
5. (4) Regardless of the date of application or issuance of the license, the fee charged and collected under this section is the full annual fee.

(o) Grounds for disciplinary action.

1. (1) Failure to comply with the provisions of this subpart shall be an unsuitable method of operation and grounds for disciplinary action.
2. (2) The commission may limit, condition, suspend, revoke, or fine any license, registration, finding of suitability, or approval given or granted under this subpart on the same grounds as it may take such action with respect to any other license, registration, finding of suitability, or approval.