1. (a) A certificate shall be denied or revoked by the commission if the applicant or certificate holder has been convicted of any felony, crime involving gambling, or crime of moral turpitude.

2. (b) A certificate may be denied, suspended, or revoked by the commission, and a certificate holder may be sanctioned by the commission under K.A.R. 112-113-1 if the certificate holder or its officers, directors, key gaming employees, or any person known to directly or indirectly own an interest of at least 0.5% in the applicant meets any of the following conditions:

   1. (1) Has knowingly provided false or misleading material information through its employees to the commission or commission staff;
   2. (2) fails to notify the commission staff about a material change in the application within seven days;
   3. (3) has violated any provision of the act or any regulation adopted under the act;
   4. (4) has failed to meet any monetary or tax obligation to the federal government or to any state or local government;
   5. (5) is financially delinquent to any third party;
   6. (6) has failed to provide information or documentation requested in writing by the commission in a timely manner;
   7. (7) does not consent to or cooperate with investigations, interviews, inspections, searches, or having photographs and fingerprints taken for investigative purposes;
   8. (8) has failed to meet the requirements of K.A.R. 112-102-6;

   9. (9) has any officers, directors, key gaming employees, or any person known to directly or indirectly own an interest of at least 0.5% in the applicant that has any present or prior activities, criminal records, reputation, habits, or associations meeting either of the following criteria:

      1. (A) Pose a threat to the public interest or to the effective regulation of gaming; or
      2. (B) create or enhance the dangers of unfair or illegal practices in the conduct of gaming; or
   10. (10) has violated any contract with the Kansas lottery.

(Authorized by and implementing K.S.A. 2009 Supp. 74-8751 and 74-8772; effective Aug. 14, 2009; amended April 1, 2011.)