2103.1 An individual, group of individuals or entity may apply to the Office for a Management Services Provider License, the application for which shall be on a form provided by the Office.
2103.2 An Operator may enter into a management services contract that permits an individual, group of individuals or entity other than the licensed Operator to conduct sports wagering on the Premises.
2103.3 The management services contract shall be in writing and must be approved by the Office.
2103.4 The Office may require the following information in conjunction with an application for a Management Services Provider License:
(a) The Applicant's legal name and form of business entity;(b) The mailing address of the Applicant and, if a corporation, the name of the state in which it is incorporated and the location of its principal place of business;(c) The names, addresses, employer identification or Social Security numbers and dates of birth of its directors, officers, partners, owners and key personnel;(d) The names, addresses, employer identification or Social Security numbers and dates of birth, as applicable, of each individual, group of individuals or entity associated with a corporate Applicant, including a corporate holding company, parent company, or subsidiary company of the Applicant that has the ability to control the activities of the corporate Applicant or elect a majority of the board of directors of that corporation, excluding any bank or other licensed lending institution that holds a mortgage or other lien acquired in the ordinary course of business;(e) The names, addresses, employer identification or Social Security numbers and dates of birth, as applicable, of each individual, group of individuals or entity associated with a non-corporate Applicant that directly or indirectly holds a five percent (5%) or greater beneficial or proprietary interest in the Applicant's business operation, or that the Office otherwise determines has the ability to control the Applicant.;(f) Information regarding the Applicant or any persons identified in subsections (c) through (e) are eligible to hold a Management Services Provider License, including disclosure of the following information:(1) Whether the Applicant or any persons identified in subsections (c) through (e) have been convicted of an offense other than a traffic violation;(2) Whether the Applicant or any persons identified in subsections (c) through (e) have been subject to any disciplinary action, past or pending, by any administrative, governmental, or regulatory body;(3) Whether the Applicant or any persons identified in subsections (c) through (e) have been charged with a violation of any statute, rule, regulation, or ordinance of any administrative, regulatory, or other governmental body; or(4) Whether the Applicant or any persons identified in subsections (c) through (e) have been in default of paying any taxes, fees, or other obligations owed to the District of Columbia, any local governmental entity, or the federal government;(g) A report of the Applicant's or any person identified in subsections (c) through (e)' s financial activities, including evidence of financial stability, such as bank statements, business and personal income and disbursement schedules, tax returns, or other documentation satisfactory to the Office that demonstrates that the Applicant has sufficient business ability and experience to establish and maintain a successful sports wagering business;(h) A certification indicating whether the Applicant or any persons identified in subsections (c) through (e) have been directly employed by an illegal or offshore Sports Wagering Operator that serviced the United States or otherwise accepted black market wagers from individuals located in the United States;(i) A description of the proposed information security program to protect the confidentiality, integrity, and availability of personal information of individuals who place sports wagers;(j) A description of the proposed internal controls and security systems to be used in conducting sports wagering or processing sports wagering transactions ;(k) The number of employees expected to be employed at the proposed Sports Wagering Facility;(l) The location of the proposed Sports Wagering Facility;(m) Proof that the Applicant has obtained a Basic Business License in the District of Columbia ;(n) Proof of good standing pursuant to D.C. Official Code § 29-102.08 and a certification that the Citywide Clean Hands Database indicates that the proposed Licensee is current with its District taxes;(o) A list of jurisdictions where the Applicant has applied for a sports wagering or gambling license;(p) A list of jurisdictions where the Applicant has been issued a sports wagering or gambling license;(q) A list of jurisdictions where the Applicant has had any sports wagering or gambling license suspended or revoked;(r) Criminal history and background information of the Applicant or any person identified in subsections (c) through (e) as required by the Office;(s) A copy of the contract or proposed contract between the Management Services Provider and the Operator;(t) Information demonstrating whether the Applicant is a Small Business Enterprise; and(u) Any other information the Executive Director considers necessary and appropriate to determine competency, honesty and integrity.2103.5 The Applicant shall notify the Office of any changes to their application within ten (10) business days of the change.
2103.6 Upon a showing of good cause, the Executive Director may grant a waiver of information that must be provided in conjunction with the application for a Management Services Provider License.
2103.7 A Management Services Provider License shall be issued for a one (1)- year period and require a non-refundable application fee of ten thousand dollars ($10,000), which shall be submitted with the application.
2103.8 A Management Services Provider License may be renewed annually; provided, that the Licensee has continued to comply with all statutory and regulatory requirements and pays upon submission of a renewal application a two thousand dollar ($2,000) renewal fee.
2103.9 Each Management Services Provider License is limited to a single Sports Wagering Facility.
2103.10 A Management Services Provider may provide Sports Wagering Equipment, software, systems, data or services for the location which it has obtained a license without having to obtain a separate Suppliers License. If a Management Services Provider purchases, leases or otherwise obtains Sports Wagering Equipment from a third party, it must do so from a licensed Supplier.
2103.11 The duties and responsibilities of a Management Services Provider under a management services contract shall not be assigned, delegated, subcontracted, or transferred to a third party without the prior approval of the Office.
2103.12 The Office shall not issue a Management Services Provider License unless it is satisfied that the Applicant meets the requirements for a Management Services Provider License and is a suitable and qualified individual, group of individuals or entity to be licensed to conduct or participate in conducting all aspects of Sports Wagering pursuant to its management services contract that has been approved by the Office.
2103.13 An Applicant for a Management Services Provider License shall establish their suitability for a license by clear and convincing evidence.
2103.14 In determining whether an Applicant is suitable and to approve an application for a Management Services Provider License, the Executive Director shall consider the following factors, when applicable, relating to the Applicant:
(a) Whether the Applicant is Management Services Provider Licensee is capable of operating a Sports Wagering Facility that will have a positive impact on the District and its residents through increased revenues and improving the quality and marketability of sports wagering entertainment within the District;(b) Whether the Applicant possesses adequate funds or has secured adequate financing to operate a Sports Wagering Facility in conformity with the regulations and standards promulgated by the Office;(c) Whether the Applicant has the financial stability, integrity, and responsibility to conduct a sports wagering operation.(d) Whether the Applicant has sufficient business ability and experience to operate and maintain a successful sports wagering operation;(e) Whether the Applicant has proposed adequate measures for internal and external security, including a surveillance system or protocol;(f) Whether the Applicant has proposed an adequate information security program to protect the confidentiality, integrity, and availability of personal information of individuals who place sports wagers;(g) Whether the Applicant has satisfied the Management Services Provider License requirements;(h) Whether the Applicant has demonstrated that its proposed sports wagering operation will be conducted in accordance with the Act and all other applicable District and federal laws;(i) Whether the Applicant has been convicted of a disqualifying offense, as established by regulation by this chapter; (j) Whether the Applicant is a Small Business Enterprise;(k) The past and present compliance of the Applicant and its affiliates or affiliated companies with gaming-related licensing requirements in the District or any other jurisdiction, including whether the Applicant has a history of non-compliance with the gaming licensing requirements of any jurisdiction;(l) If the Applicant has been charged with, convicted, pleaded guilty, or forfeited bail concerning any criminal offense under the laws of any jurisdiction, not including a traffic offense; (m) If the Applicant has filed, or had filed against it a proceeding for bankruptcy or has ever been involved in any formal process to adjust, defer, suspend, or otherwise work out the payment of any debt;(n) If the Applicant has been served with a complaint or other notice filed with any public body regarding a payment of any tax required under any law in any jurisdiction, where the Applicant has been in breach for one or more years;(o) If the Applicant is or has been a defendant in litigation involving its business practices that would call into question its suitability to be licensed;(p) If awarding a license would undermine the public's confidence in the gaming industry in the District; and(q) If the Applicant meets other prescribed standards for the issuance of a license.2103.15 An Applicant may apply for up to but no more than two (2) Management Services Provider Licenses, unless, the Applicant enters into a joint venture or other contractual agreement whereby a majority interest is owned by a Certified Business Enterprise for any additional licenses.
2103.16 A Management Services Provider shall prominently display in the Sports Wagering Facility the Management Services Provider License issued by the Office.
D.C. Mun. Regs. tit. 30, r. 30-2103
Final Rulemaking published at 36 DCR 6681, 6710 (September 22, 1989); amended by Final Rulemaking published at 66 DCR 011618 (8/30/2019)