Mich. Admin. Code R. 432.746

Current through Vol. 24-19, November 1, 2024

Section R. 432.746 - Data Source and Official League Data

Rule 746.

(1) All of the following conditions apply to a data source used to offer or settle an internet sports betting wager:

(a) Except as otherwise provided in this part, a sports betting operator or internet sports betting platform provider may use any data source to determine the results of all tier 1 sports bets and tier 2 sports bets, subject to all of the following conditions:

(i) The data source and corresponding data must be complete, accurate, reliable, timely, and available.

(ii) The data source must be appropriate to settle the types of events and types of wagers for which it is used.

(iii)Any person that provides data directly to a sports betting operator or internet sports betting platform provider must be licensed by the board as a sports betting supplier.

(iv) The data source and corresponding data must meet any other conditions considered appropriate by the board.

(b) Except as otherwise provided in this part, the board reserves the right to disapprove any data source.

(c) A sports betting operator or internet sports betting platform provider must have internal controls in place to review the completeness, accuracy, reliability, timeliness, and availability of any data feeds used to offer or settle internet sports betting wagers. In the event an incident or error occurs that results in a loss of communication with data feeds used to offer or settle internet sports betting wagers, the incident or error must be recorded in a log capturing the date and time of the incident or error, the nature of the incident or error, and a description of its impact on the internet sports betting platforms performance. This information must be maintained for a minimum period of 5 years and must be made available to the board on request.

(2) All of the following conditions apply to a sports governing body notification regarding the use of official league data to settle tier 2 sports bets under section 10a of the act, MCL 432.410a:

(a) A sports governing body headquartered in the United States must notify the board in writing if it desires sports betting operators to use official league data to settle tier 2 sports bets under section 10a of the act, MCL 432.410a. The notification must be filed in the form and manner prescribed by the board and must include all of the following:

(i) Identification information for the sports governing body.

(ii) Identification and contact information for at least one specific individual who will be the primary point of contact for issues related to the provision of official league data and compliance with the act and these rules.

(iii) Identification of any designees that are or will be expressly authorized by the sports governing body to provide official league data in Michigan.

(iv) Copies of any contracts relevant to the provision of official league data in Michigan, including all of the following:

(A) Copies of any contracts between the sports governing body and any designees that are or will be expressly authorized by the sports governing body to provide official league data in Michigan.

(B) Copies of any contracts between the sports governing body or its designees and sports betting operators or internet sports betting platform providers in Michigan.

(v) A description of the official league data the sports governing body desires to provide.

(vi) Any other information required by the board.

(b) A sports governing body may not submit a notification under subdivision (a) of this subrule unless the board has authorized sports betting operators to accept tier 2 wagers on athletic events of the sports governing body.

(c) On receipt of a complete notification from a sports governing body under subdivision (a) of this subrule, the board shall notify each sports betting operator within 5 days. The notification must include the date on which the sports betting operator, and any internet sports betting platform provider accepting internet sports betting wagers on behalf of the sports betting operator, is required to use official league data to determine the results of tier 2 sports bets on athletic events of the relevant sports governing body unless one of the exceptions set forth in this part applies. The date must be 60 days after the date of the boards notification. Each sports betting operator is responsible for informing its internet sports betting platform provider of the boards notification and its effective date.

(d) Except as otherwise provided in this part, after the date identified in the boards notification under subdivision (c) of this subrule, sports betting operators and internet sports betting platform providers must use only official league data to determine the results of tier 2 sports bets on athletic events sanctioned by the sports governing body that is the subject of the notification.

(e) The board shall maintain and may publish a list of all sports governing bodies that provide official league data under this rule.

(f) A sports governing body may rescind its notice at any time. Such rescission must be made in writing to the board and all sports betting operators and internet sports betting platform providers to which the sports governing body or its designee provides official league data. On receipt of the rescission, a sports betting operator or internet sports betting platform provider may use any data source that meets the requirements of subrule (1) of this rule to determine the results of tier 2 sports bets on athletic events of the sports governing body.

(g) If a sports governing body does not notify the board that it desires sports betting operators to use official league data under this rule, sports betting operators and internet sports betting platform providers may use any data source that meets the requirements of subrule (1) of this rule to determine the results of all tier 2 sports bets on athletic events of the sports governing body.

(3) If a sports governing body notifies the board of its desire to supply official league data for tier 2 sports bets under subrule (2) of this rule, both of the following apply:

(a) Official league data must be obtained by a sports betting operator or internet sports betting platform provider pursuant to a written contract with a sports governing body or one or more of its designees, or both. The contract must be filed with the board.

(b) A sports governing body or its designee may not unilaterally cancel or modify any material provisions of a contract entered into under this subrule or directly or indirectly cease its provision of official league data to a sports betting operator or internet sports betting platform provider without prior written approval of the board unless the cancellation, modification, or cessation is provided for in and executed in accordance with the terms of the contact or is due to a material breach.

(4) If a sports governing body notifies the board of its desire to supply official league data for tier 2 sports bets under subrule (2) of this rule, all of the following apply:

(a) A sports governing body or its designee must provide official league data on commercially reasonable terms.

(b) A sports betting operator may petition the board in writing for a determination that the terms under which official league data is or will be provided to the sports betting operator, or an internet sports betting platform provider accepting internet sports betting wagers on behalf of the sports betting operator, by a sports governing body or its designee are not commercially reasonable. The petition may be submitted at any time provided the parties have engaged in good-faith negotiations and the sports betting operator provides written notice to the sports governing body at least 5 business days before filing the petition. The petition must be filed in the form and manner prescribed by the board and must include all of the following:

(i) Identification of the sports betting operator and contact information for at least one specific individual who will be the primary point of contact for questions related to the petition.

(ii) Identification of the sports governing body.

(iii) Copies of any contracts, offer sheets, or other written documentation the sports betting operator alleges to include the commercially unreasonable terms.

(iv) Identification of the specific terms the sports betting operator alleges are commercially unreasonable.

(v) Detailed information explaining why the sports betting operator believes the terms are not commercially reasonable, including information pertaining to any relevant factors listed in subdivision (h) of this subrule.

(vi) Any evidence or other documentation supporting the sports betting operators argument that the terms are not commercially reasonable.

(vii) Information explaining how the sports betting operator, or an internet sports betting platform provider accepting internet sports betting wagers on behalf of the sports betting operator, does or will settle tier 2 sports bets on athletic events of the sports governing body in the absence of official league data.

(viii) Any other information the sports betting operator believes the board should consider.

(ix) Any other information required by the board.

(c) From the date a petition is filed until the date the board issues a determination, the sports betting operator, and an internet sports betting platform provider accepting internet sports betting wagers on behalf of the sports betting operator, may use any data source that meets the requirements of subrule (1) of this rule to determine the results of tier 2 sports bets on athletic events of the sports governing body.

(d) The board may, in its discretion, jointly consider multiple petitions if they involve the same sports governing body and substantially similar allegations.

(e) Except as otherwise provided in subdivision (m) of this subrule, on receipt of a complete petition, the board shall immediately forward the petition to the relevant sports governing body. The sports governing body must be given an opportunity to respond to the petition in writing. The response must be submitted to the board within 30 days after the board forwards the petition to the sports governing body or as otherwise directed by the board. The response must be filed in the form and manner prescribed by the board and must include all of the following:

(i) Identification of the sports governing body and contact information for at least one specific individual who will be the primary point of contact for questions related to the response.

(ii) Detailed responses to each of the sports betting operators allegations.

(iii) Detailed information explaining why the sports governing body believes the terms identified in the petition are commercially reasonable, including information pertaining to any relevant factors listed in subdivision (h) of this subrule.

(iv) Any evidence or other documentation supporting the sports governing bodys argument that the terms are commercially reasonable.

(v) Any other information the sports governing body believes the board should consider.

(vi) Any other information required by the board.

(f) If the sports governing body does not submit a response within 30 days or as otherwise directed by the board, or fails to submit a response that meets the requirements of subdivision (e) of this subrule, the board may decide the petition in favor of the sports betting operator.

(g) The board may request any additional information from a sports betting operator, an internet sports betting platform provider accepting internet sports betting wagers on behalf of a sports betting operator, or a sports governing body that the board considers necessary to evaluate a petition or response filed under this subrule. The board may, in its discretion, schedule a hearing before deciding a petition.

(h) The board may consider the following factors to determine whether official league data is or will be provided by a sports governing body on commercially reasonable terms:

(i) Whether the sports governing bodys official league data is available to the sports betting operator, or an internet sports betting platform provider accepting internet sports betting wagers on behalf of the sports betting operator, from more than one authorized source and whether it is offered under materially different terms.

(ii) Market information regarding the purchase of data used to settle tier 2 sports bets by any licensed entities from any authorized data source, including sports governing bodies or their designees, in this state or any other jurisdiction.

(iii) Any characteristics of the official league data and any alternate data sources, including but not limited to, both of the following:

(A) The nature, quantity, quality, integrity, completeness, accuracy, reliability, availability, and timeliness of the data.

(B) The quality, complexity, integrity, and reliability of the process used to collect the data.

(iv) The extent to which sports governing bodies or their designees have made data used to settle tier 2 sports bets available to sports betting operators and internet sports betting platform providers accepting internet sports betting wagers on behalf of sports betting operators.

(v) The availability and cost of comparable, lawfully derived data from other data sources.

(vi) Whether any terms of the contract or offer sheet are uncompetitive in nature, are economically unfeasible, or place an undue burden on the sports betting operator or internet sports betting platform provider accepting internet sports betting wagers on behalf of the sports betting operator.

(vii) Any other factors the board considers appropriate.

(i) The board shall issue a determination within 120 days after the board receives a petition from a sports betting operator under this subrule. The determination must be sent in writing to the sports betting operator and the sports governing body. A sports betting operator is responsible for notifying its internet sports betting platform provider of the boards determination.

(j) If the board determines that the sports betting operator has successfully demonstrated that the sports governing body does not or will not provide official league data on commercially reasonable terms, the sports betting operator, and an internet sports betting platform provider accepting internet sports betting wagers on behalf of the sports betting operator, may use any data source that meets the requirements of subrule (1) of this rule to determine the results of tier 2 sports bets on athletic events of the sports governing body.

(k) If the board determines that the sports betting operator has not successfully demonstrated that the sports governing body does not or will not provide official league data on commercially reasonable terms, the sports betting operator, and an internet sports betting platform provider accepting internet sports betting wagers on behalf of the sports betting operator, must use only official league data to determine the results of tier 2 sports bets on athletic events sanctioned by the sports governing body.

(l) On request of a sports betting operator or sports governing body, the board may reconsider a determination reached under this subrule if the sports betting operator or sports governing body can demonstrate that there has been a material change in terms or other circumstances related to the original petition. The board may, in its discretion, apply a determination reached under this subrule to any subsequently filed petitions that involve the same sports governing body and contain substantially similar allegations.

(5) If a sports governing body and its designees cannot provide a feed of official league data to determine the results of a particular type of tier 2 sports bet for which official league data would otherwise be required under subrule (2) of this rule, sports betting operators and internet sports betting platform providers may use any data source that meets the requirements of subrule (1) of this rule to determine the results of the particular type of tier 2 sports bet. This subrule applies until the official league data necessary to determine the results of the particular type of tier 2 sports bet becomes available on commercially reasonable terms.

(6) Before a sports governing body and its designees may provide or be involved in the provision of official league data under subrule (2) of this rule, all of the following conditions apply:

(a) A sports governing body or designee that provides official league data directly to a sports betting operator or internet sports betting platform provider must be licensed by the board as a sports betting supplier.

(b) A sports governing body or designee that is not licensed as a sports betting supplier must not provide official league data directly to a sports betting operator or internet sports betting platform provider.

(c) A sports governing body or designee that does not provide official league data directly to a sports betting operator or internet sports betting platform provider but is otherwise involved in the provision of official league data, as determined by the board, must be approved in writing by the board.

(d) A sports governing body or designee that is not approved by the board must not be involved in the provision of official league data to a sports betting operator or internet sports betting platform provider.

(e) Involvement in the provision of official league data includes, but is not limited to, all of the following:

(i) Supplying, packaging, or providing official league data to a sports betting supplier who provides the data directly to a sports betting operator or internet sports betting platform provider.

(ii) Creating, generating, producing, augmenting, or modifying official league data that is intended for or known to be used for packaging, supply, or use by a sports betting supplier or vendor under these rules.

(iii)Any method involving or resulting in the use of official league data by a sports betting operator, internet sports betting platform provider, or a sports betting supplier.

(f) A request for approval under this subrule must consist of the following:

(i) A completed registration form providing the sports governing bodys or designees office address and contact information of each primary employee involved in the provision of official league data.

(ii) A list of all designees authorized by the sports governing body to supply official league data in Michigan.

(iii)An acknowledgement that approval is conditioned upon the sports governing bodys or designees compliance with all applicable provisions of the act and these rules.

(iv) Any other information related to the provision of official league data required by the board, subject to the following:

(A) The board may, in its discretion, request information from the sports governing body or designee if the information is directly related to its process for creating, generating, producing, augmenting, modifying, supplying, packaging, or providing official league data, including procedures designed to ensure the completeness, accuracy, reliability, timeliness, availability, and integrity of the official league data.

(B) Information requested by the board must be limited to the organizational units and processes involved in the provision of official league data.

(C) The board shall not investigate or request information regarding employees of a sports governing body not involved in the provision of official league data or the owners of a sports governing bodys member teams.

(g) The board shall grant a request for approval under this subrule if the sports governing body or designee provides the information set forth in subdivision (f) of this subrule and the sports governing body or designee complies with all of the following:

(i) The sports governing body or designee complies with all applicable provisions of the act and these rules.

(ii) The sports governing body or designee agrees to and timely provides, on written request of the board, information and records related to its provision of official league data.

(iii)The sports governing body or designee cooperates with investigations conducted by the board regarding the provision of official league data.

(iv) The sports governing body or designee creates, generates, produces, augments, modifies, supplies, packages, or provides official league data that is generally complete, accurate, reliable, timely, and available based on relevant and applicable standards.

(h) None of these rules may be interpreted to include official league data that is used, packaged, sold, produced, or provided in ways separate from sports betting under the act.

(i) If a sports governing body and its designees have not obtained all sports betting supplier licenses and approvals required by this subrule, sports betting operators and internet sports betting platform providers may use any data source that meets the requirements of subrule (1) of this rule to determine the results of tier 2 sports bets on athletic events of the sports governing body. This applies until the sports governing body and its designees have obtained all sports betting supplier licenses and approvals required by this subrule.

(j) A sports governing body and its designees are not required to obtain approval under this subrule if sports betting operators and internet sports betting platform providers are not required to use official league data to determine the results of tier 2 sports bet on athletic events of the sports governing body under subrule (2) of this rule.

Mich. Admin. Code R. 432.746

2020 MR 22, Eff. 12/2/2020