Section 432.10  Criteria for Eligibility

An application for an occupation license as an operator of a totalizator system shall:  

a)         have a contract to provide a totalizator system with an organization, or inter-track wagering licensee; and

b)         either have operated a totalizator system at a pari-mutuel race meeting in Illinois for at least three years prior to the effective date of these rules; or

c)         provide the Illinois Racing Board (Board) evidence that the applicant has the experience and expertise to operate a totalizator system at the race meeting at which the applicant proposes to participate in Illinois racing.  Such evidence shall include, but not be limited to, a demonstration that the applicant can comply with 11 Ill. Adm. Code 433.

Section 432.20  License Application

a)         An application for a license to operate as a totalizator system licensee shall be made on forms furnished by the Board.

b)         One original and ten copies of the application shall be filed at the Board's central office at 100 W. Randolph St., #11-100, Chicago, IL 60601.

c)         The applicant shall submit $25.00 for a one-year license fee.

d)         The applicant shall submit with the application copies of all contracts with organization licensees and instruments evidencing any indebtedness between the applicant and any and all organization licensees.

e)         If circumstances change or events occur after the filing of an application, the applicant shall submit an amendment to the Board. Examples of such changes include, but are not limited to, a change of corporate officers, the signing of additional contracts with organization, or inter-track wagering licensees.

Section 432.30  Time of Filing an Application

a)         Applications for an occupation license as a totalizator system licensee shall be filed 60 days prior to the opening of the first racing meet, or inter-track wagering meet, during a calendar year at an Illinois race track at which the applicant seeks to participate in Illinois racing.

b)         The Board may, in its discretion, upon good cause shown, receive applications for an occupation license to operate as a totalizator system licensee at a date subsequent to the date of a totalizator contract fewer than 60 days prior to the opening of a meet.  Good cause means a change in ownership of totalizator licensee; upgrading a totalizator; changes in the financial position of a totalizator system licensee, such as, but not limited to, the dissolution or bankruptcy of the totalizator system licensee; or the impossibility of a licensee to furnish equipment for an upcoming racing or inter-track meet.

Section 432.40  Application from Corporation

A corporation applicant for a license as a totalizator system licensee shall disclose the names and business addresses of its directors, officers, and the owners of any legal or beneficial interest of five percent of more of the corporation.  If the corporation is owned, in whole or in part, by another corporation, such disclosure shall be made for such other corporation and for the owners of 25% or more of the equity of such other corporation.

Section 432.50  Grounds for Denial of an Application

The Board may deny an application for an occupation license as a totalizator system licensee based on the rules contained in 11 Ill. Adm. Code 502.60 through 502.110.  An applicant whose application for a license is denied may request a hearing pursuant to 11 Ill. Adm. Code 204.

Section 432.60  Change of Officers or Directors

Within 15 days after election, appointment or resignation of an officer or director of a licensed totalizator system, the totalizator system licensee shall notify the Board in writing of the identity of each new or resigned officer or director and shall file a disclosure statement for each person.

Section 432.70  License Deemed Personal

Licenses to operate totalizator systems are deemed personal in nature and non-transferable, and will terminate upon a substantial change of ownership of the totalizator company unless the Board grants approval of the substantial change of ownership.  The sale or transfer of 25% or more of the equity of a totalizator company shall be considered a substantial change or ownership.  In acting upon a request for approval of a substantial change in ownership, the Board shall consider the same factors as it considers in the initial grant of an occupation license to an applicant for a totalizator system license.