Final Text
11VAC10-45-25. Temporary licenses to conduct account
wagering. (Repealed.)
A. If an applicant for a license to operate account
wagering has not been able to reach an agreement with an unlimited licensee and
representatives of the recognized majority horsemen's organizations concerning
the distribution of the retainage after good faith negotiations, the license
applicant may submit its application together with an affidavit specifying and
certifying its offer to an unlimited licensee and the recognized horsemen's
groups, attesting that it has entered into good faith negotiations with both,
that it has offered the terms specified and certified in its affidavit, and
that its offer has been rejected, stating with particularity the basis given to
it for rejection of its offer and by whom it was rejected. In such event, the
commission shall (i) consider the applicant's request for a temporary license
as provided in subsection B of this section and (ii) be authorized to appoint
an impartial third party to mediate the negotiations regarding the contractual
agreement between the applicant and an unlimited licensee and representatives
of the recognized majority horsemen's groups concerning the distribution of the
remaining portion of the retainage. If during the term of the temporary
license, the parties are unable to reach agreement through mediation, the
commission shall specify the percentage of the total gross handle of wagers
placed with the account wagering applicant from within the Commonwealth to be
paid by the applicant to an unlimited licensee and representatives of the
recognized majority horsemen's groups. In doing so, the commission shall
consider among other factors, the contractual agreements that other account
wagering licensees have with an unlimited licensee and representatives of the
recognized majority horsemen's groups. The percentage specified by the
commission shall be the best offer made by either (a) the account wagering
applicant or (b) the unlimited licensee and the representatives of the
recognized majority horsemen's groups. The percentage specified by the
commission shall be effective for one year from the one-year term of the
applicant's temporary license.
B. Upon receipt of the application and affidavit described
in subsection A of this section, the commission may grant a temporary license
to operate account wagering to any applicant for a license to conduct account
wagering whose application is complete except for a contractual agreement, approved
by the commission, between such entity and an unlimited licensee and
representatives of the recognized majority horsemen's groups concerning the
distribution of the portion of the retainage remaining after the license fee
has been paid to the commission and that is otherwise deemed by the commission
to be fully qualified to conduct deposit wagering in the Commonwealth. Such
license shall expire at the end of six months and shall be subject to one
renewal. If a temporary license is not granted, the applicant is entitled to a
hearing on the issue of qualifications.
C. If a temporary license is granted, the temporary
licensee shall pay to the commission one-half percent of the gross total handle
of wagers placed with the temporary licensee from within the Commonwealth on
the tenth day of the month following the month in which the temporary licensee
receives wagers from within the Commonwealth. Each month the temporary licensee
shall also pay an amount equal to the average of all account wagering licensees
in the Commonwealth, as calculated by the commission, into an escrow account in
the name of the commission no later than the tenth of the month following the
month in which such wagers are placed. Such escrow account shall be in a
financial institution approved by the commission and shall be distributed
within three business days by the commission in equal amounts to any unlimited
licensee and representatives of the recognized majority horsemen's groups,
until such time as the unlimited licensee, representatives of the recognized
horsemen's groups, and the temporary account wagering licensee reach an
agreement regarding the retainage that is acceptable to the commission and the
commission has granted a license to operate account wagering replacing the
temporary license.
D. A temporary license may be revoked summarily by the
commission for any cause set forth in this chapter without complying with
subsection A of this section. Revocation of a temporary license shall be
effective upon service of the order of revocation upon the licensee or upon the
expiration of three business days after the order of the revocation has been
mailed to the licensee either at his residence or the address given for the
business in the license application. No further notice shall be required.