Authority: IC 4-31-7.5-11

Affected: IC 4-31-7.5

Sec. 4. (a) The commission may issue a license under IC 4-31-7.5 if the commission determines that the applicant meets all of the requirements under IC 4-31-7.5 and this article and, that on the basis of all the facts before it, the following is shown:

1. (1) The applicant is qualified and financially able to operate advance deposit wagering in the state of Indiana.
2. (2) Advance deposit wagering in Indiana will be operated in accordance with all applicable laws and rules.
3. (3) The issuance of a license will ensure that advance deposit wagering will be conducted with the highest of standards and the greatest level of integrity, and ensure the protection of the public interest.

(b) In reviewing an application, the commission may consider any information, data, reports, findings, factors, or indices available that it considers important or relevant to its determination of whether an applicant is qualified to hold an SPMO license under IC 4-31-7.5, including, without limitation, the following:

1. (1) The integrity of the applicant, its partners, directors, officers, policymakers, and affiliates, including, but not limited to, the following:

   1. (A) Criminal record.
   2. (B) Whether a party to litigation over business practices, disciplinary actions over a business license or permit, or refusal to renew a license or permit.
   3. (C) Proceedings in which unfair labor practices, discrimination, or government regulation of advance deposit wagering was an issue, or bankruptcy proceedings.
   4. (D) Failure to satisfy judgments, orders, or decrees.
   5. (E) Delinquency in filing of tax reports or remitting taxes.
   6. (F) Any other indices related to the integrity of the applicant that the commission considers important or relevant to its determination.
2. (2) The financial strength of the applicant.
3. (3) The management ability of the applicant.
4. (4) The experience of the applicant.
5. (5) Compliance with applicable statutes and regulations.
6. (6) Whether licensing the SPMO would be in the best interest of the public health, safety, and welfare in the state.
7. (7) The potential effect on revenue to the state and Indiana horse racing constituents.

(c) The commission may grant or deny an SPMO license subject to conditions specified by the commission and agreed to by the applicant.

(d) The commission may require changes in the proposed plan of operations or advance deposit wagering terms and agreement, or both, as a condition of granting a license. A licensed SPMO shall not make subsequent material changes in the plan of operations or advance deposit wagering terms and agreement, or both, unless ordered by the commission or until approved by the commission after receiving a written request.

(e) A licensed SPMO shall file a license renewal request for the upcoming calendar year by November 1 of the preceding year. The license renewal request must be accompanied by a cashier's check or certified check payable to the commission in the amount of one thousand dollars ($1,000) as a nonrefundable annual license fee. In addition, the licensed SPMO must submit a letter detailing any requested changes in the commission approved plan of operations or advance deposit wagering terms and agreement, or both.

(f) A license issued under this article is neither transferable nor assignable, including by operation of law, without the prior written consent of the commission.

(g) Any action that suspends or otherwise prohibits a licensed SPMO from operating in another state may be used as grounds for a suspension of its Indiana SPMO license.

(h) A licensed SPMO must also hold an Indiana commission vendor contractor license. After the initial licensing period, the vendor contractor commission license shall be renewed after December 1 with the licensing office for the upcoming year. The fee is one hundred dollars ($100).

(i) All employees working on behalf of a licensed SPMO that are officers, directors, and managers who are involved in Indiana advance deposit wagering must hold an Indiana vendor employee commission license. All other employees working on behalf of a licensed SPMO who are involved in Indiana advance deposit wagering must hold an Indiana commission license. After the initial licensing period, the Indiana commission vendor employee license shall be renewed after December 1 with the licensing office for the following year. However, the commission or commission's designee may, at their discretion, allow a licensed SPMO to forgo licensing of some individuals involved in advance deposit wagering in Indiana provided that:

1. (1) those individuals are licensed and in good standing with appropriate regulatory authorities in the jurisdiction from which they are operating; and
2. (2) an individual that is the direct supervisor of the unlicensed individuals holds an Indiana commission license.

(Indiana Horse Racing Commission; 71 IAC 9-2.2-4; emergency rule filed Aug 29, 2018, 11:12 a.m.: 20180905-IR-071180370ERA; emergency rule filed Jun 1, 2020, 1:57 p.m.: 20200610-IR-071200295ERA; emergency rule filed Jul 22, 2022, 11:47 a.m.: 20220727-IR-071220238ERA; readopted filed Jul 6, 2023, 1:50 p.m.: 20230802-IR-071230371RFA; filed Aug 4, 2025, 10:22 a.m.: 20250903-IR-071250147FRA) NOTE: Agency cited as 71 IAC 9-2.1-4, which was renumbered by the Publisher as 71 IAC 9-2.2-4.