11 Va. Admin. Code § 5-70-20

Current through Register Vol. 41, No. 8, December 2, 2024

Section 11VAC5-70-20 - Application process

A. General provisions.

1. Upon filing of an online application for a permit, license, or registration, the applicant shall pay by wire transfer the applicable investigation and nonrefundable application fees established by the board by regulation.

2. If an application for a permit, license, or registration must be submitted to the director by a particular date, the application shall be delivered to the director not later than 11:59:59 p.m. on the last day of the specified period, and an application submitted after the deadline will not be accepted or considered by the director.

3. Applications and required fees for permits will be accepted by the director only during the initial permit application period and, thereafter, during an annual permit application period, as defined in this chapter.

a. The initial application period begins October 15, 2020, and ends October 31, 2020, at 11:59:59 p.m. The initial permit application period does not apply to applications other than permit holder applications.

b. In 2021 and succeeding years, the annual permit application period begins May 15 and ends May 31 at 11:59:59 p.m. The annual permit application period does not apply to applications other than permit holder applications.

4. Applications and required fees for licenses and registrations may be accepted by the director at any time following October 12, 2020. 5. An applicant may not submit an application earlier than one year after the director has:

a. Taken final action on a denial of a previous permit, license, or registration application involving the applicant;

b. Taken final action on a sanction resulting in revocation of a previous permit, license, or registration application involving the applicant; or

c. Provided a permit holder, licensee, registrant, or individual with written notice of termination of a temporary permit, license, or registration.

B. Applications.

1. Information and documents submitted to the director under this chapter shall be made using the electronic form required by the director and, as required by the director, may include an original and copies.

2. Information and documents submitted to the director in a permit, license, or registration application shall be sworn under the penalties of perjury as to their truth and validity by the applicant or, if the applicant is not an individual, by an officer or director of the applicant.

3. Upon receipt of an application by the director, department staff shall review the application to determine whether it contains all the information required under this chapter.

4. If the director determines that required information has not been submitted, department staff shall notify the applicant and state the nature of the deficiency.

5. An applicant notified in accordance with subdivision 4 of this subsection shall submit the information necessary to complete the application no later than 15 days after issuance of the notice.

6. The director will not consider the application of an applicant notified in accordance with subdivision 4 of this subsection that fails to submit the requested information in a timely manner.

7. The director will consider only a timely, complete application.

C. Changes in application.

1. If information submitted by an applicant as part of a permit, license, or registration application changes or becomes inaccurate before the director acts on the application, the applicant shall immediately notify department staff of the change or inaccuracy.

2. After an application has been filed by an applicant, the applicant may not amend the application except:

a. To address a deficiency in accordance with a notice sent under subdivision B 4 of this section;

b. As required by the director or department staff for clarification of information contained in the application; or

c. To address a change in the circumstances surrounding the application that was outside the control of the applicant and that affects the ability of the applicant to comply with the law or the regulations of the board.

3. To amend an application under this subsection, an applicant shall submit to the director a written request to amend the application stating:

a. The change in the circumstances surrounding the application that necessitates the amendment;

b. The nature of the amendment; and

c. The reason why the amendment is necessary to bring the application into compliance with the law or the regulations of the board.

4. The director or department staff shall grant or deny each request submitted under subdivision 2 c of this subsection.

5. A request shall be granted if the applicant demonstrates to the satisfaction of the director that:

a. Before the change in the circumstances surrounding the application, the application complied with the pertinent provisions of the law or the regulations of the board; and

b. The amendment is necessary to bring the application into compliance with the pertinent provisions of the law or the regulations of the board.

6. An application for a permit, license, or registration may be withdrawn if the:

a. Applicant submits a written request to the director to withdraw the application; and

b. Written request is submitted before the director has:

(1) Denied the application; or

(2) Terminated a temporary permit, license, or registration.

D. Burden of proof.

1. The burden of proof shall be on the applicant to show by clear and convincing evidence (i) that the applicant complies with the laws of the Commonwealth of Virginia and the regulations of the board regarding eligibility and qualifications for the permit, license, or registration (ii) and that the applicant is not otherwise disqualified from holding a permit, license, or registration.

2. The director may deny a permit, license, or registration to an applicant whose gaming or similar license has been suspended or revoked in another jurisdiction.

3. The director may deny a permit, license, or registration to an applicant whose past or present conduct would bring the Commonwealth into disrepute.

4. Inadvertent, nonsubstantive errors that might be made in furnishing the information required by this section may not be used as a reason by the director for disqualifying the applicant.

E. Administrative costs of background investigations.

1. Except for a permit, principal license, or supplier license application, the administrative costs associated with performing background investigations shall be incorporated into the fixed application/license fee set out in this chapter.

2. For a permit, principal license, or supplier license application, the administrative costs associated with performing background investigations shall vary depending on the complexity of the investigation and the time spent conducting the investigation.

3. Promptly upon receipt of an invoice from the department, an applicant for a permit, principal license, or supplier license shall reimburse the department by wire transfer for:

a. The administrative costs associated with performing background investigations of the applicant and any individual required to provide information under this chapter; and

b. Any payments made by the director to a person approved by the director to conduct the background investigation.

4. Failure to reimburse the director shall be grounds for disqualification of the applicant.

5. The director may require initial and additional deposits from an applicant for the administrative costs of conducting the applicant's background investigation.

6. The director will refund to an applicant for a permit, principal license, or supplier license any unused amount of the advance deposit.

F. Effect of permit, license, or registration.

1. Participation in sports betting operations by a permit holder, licensee, or registrant shall be deemed a revocable privilege and shall be conditioned on the proper and continued qualification of the permit holder, licensee, or registrant and on the discharge of the affirmative responsibility of each permit holder, licensee, and registrant to provide to the regulatory and investigatory authorities under this chapter or any other provision of law, any assistance and information necessary to assure that the policies underlying this chapter are achieved.

2. Consistent with subdivision 1 of this subsection, the intent of this chapter is to:

a. Preclude:

(1) The creation of any property right in any permit, license, or registration required under this chapter;

(2) The accrual of any monetary value to the privilege of participation in sports betting operations; and

(3) Except as specifically provided by the sports betting law and the board's regulations, the transfer of any permit, license, or registration issued under this chapter; and

b. Require that participation in sports betting operations be conditioned solely on the continuing qualifications of the person who seeks the privilege.

3. A permit holder may sublicense, convey, concede, or otherwise transfer the holder's permit to a third party only after the transferee:

a. Applies and pays all application and background investigation fees for a permit;

b. Receives the approval of the director; and

c. Pays a nonrefundable transfer fee of $200,000.

G. Continuing obligations.

1. Applicants who are awarded a permit, license, or registration shall, during the term of their permits, licenses, or registrations, conform to all the information contained in their applications.

2. If information submitted by an applicant issued a permit, license, or registration changes during its term, the permit holder, licensee, or registrant shall immediately submit to the director notice in writing of the change.

3. As a condition of holding a permit, license, or registration, a permit holder, licensee, or registrant must comply with all requirements of the sports betting law, this chapter, and any other chapter in this title related to sports betting.

4. Failure to comply with the obligations of subdivision 1, 2, or 3 of this subsection shall be grounds for the director taking enforcement action against the permit holder, licensee, or registrant.

H. Temporary or conditional permit, license, or registration.

1. Upon request of an applicant, the director may in his sole discretion issue a temporary or conditional permit, license, or registration to an apparently-qualified applicant.

2. An applicant for a permit, license, or registrant may not be considered to be apparently-qualified if:

a. The applicant has an immediately known present or prior activity, criminal record, reputation, habit, or association that would disqualify the applicant from holding a permit, license, or registration under the sports betting law or this chapter;

b. The applicant poses a serious imminent risk of harm to the integrity, security, or profitability of the Commonwealth's sports betting program; or

c. Reasonable grounds exist to believe that the applicant will not be able to establish the applicant's qualifications by clear and convincing evidence under this chapter.

3. By accepting a temporary or conditional permit, license, or registration, an applicant waives the right to challenge or contest a final decision by the director concerning the application.

4. A temporary or conditional permit holder, licensee, or registrant whose permanent permit, license, or registration is denied shall not receive a refund of any fees paid toward the application and the costs of the department's investigation.

5. A temporary or conditional permit, license, or registration:

a. May not be issued until the applicant has acknowledged in writing that the Commonwealth is not financially responsible for any consequences resulting from termination of a temporary or conditional permit, license, or registration or a denial of the application;

b. Expires 180 days after the date of issuance; and

c. May be extended by the director for one period of up to 180 days.

6. When the director changes a temporary or conditional permit, license, or registration into permanent status, the date of issuance of the permanent permit, license, or registration shall be deemed to be the date that the director approved the temporary permit, license, or registration.

7. By written notice to a temporary or conditional permit holder, licensee, or registrant, the director may terminate, without a hearing and without following the denial process under 11VAC5-70-120, the temporary or conditional permit, license, or registration of an applicant for:

a. Failure to pay a required fee;

b. Failure to submit required information and documentation to department staff within 15 days of responding to a request for additional information or documents;

c. Failure to comply with any other request of department staff;

d. Engaging in conduct that obstructs department staff from completing the applicant's background investigation;

e. Failure to comply with the conditions imposed by the director, or

f. Violating any provision of the sports betting law or this chapter.

8. The director's written notice of termination of a temporary or conditional permit, license, or registration is the final action of the director.

9. If, during the course of conducting an applicant's background investigation, department staff reasonably believes there is a basis for recommending denial of a permanent permit, license, or registration to a temporary or conditional permit holder, licensee, or registrant, department staff shall:

a. Notify the director and the temporary or conditional permit holder, licensee, or registrant; and

b. If the director has not yet issued a final decision on the application, allow the application to be withdrawn.

11 Va. Admin. Code § 5-70-20

Derived from Virginia Register Volume 37, Issue 04, eff. 10/12/2020.

Statutory Authority: §§ 58.1-4007, 58.1-4015.1, and 58.1-4030 through 58.1-4047 of the Code of Virginia.