230.779 Operation of hub -- Application for licensure -- Requirements -- Investigations -- Inspections -- Administrative regulations -- Review and audit. (1) Notwithstanding KRS 230.361(1), a licensee may operate the hub either independently or in associ ation with one (1) or more racetracks licensed by the corporation to run live races and conduct pari -mutuel wagering in Kentucky. Hub operations may be physically located on property other than that operated by a racetrack and may accept wagers at that loc ation and shall comply with the Interstate Horseracing Act, 15 U.S.C. secs. 3001 to 3007. (2) As a part of the application for licensure as a hub, an applicant shall submit a detailed plan of operations in a format and containing any information as require d by the corporation. The application shall be accompanied by an application fee to cover incremental costs to the corporation, in an amount the corporation determines to be appropriate. At a minimum, the operating plan shall address the following: (a) The manner in which the proposed wagering system will operate, including its proposed operating schedule; (b) The requirements for a qualified subscriber -based service set out ess the following: (a) The manner in which the proposed wagering system will operate, including its proposed operating schedule; (b) The requirements for a qualified subscriber -based service set out in KRS 230.775; and (c) The requirements for accounts established and operated for persons whose principal residence is outside of the Commonwealth of Kentucky. (3) The corporation may require changes in a proposed plan of operations as a condition of licensure. Subsequent material changes in the system's operation shall not occur unless approved by the corporation. (4) The corporation may conduct investigations or inspections or request additional information from any applicant as it deems appropriate in determining whether to approve the license application. (5) An applicant licensed un der this section may enter into any agreements that are necessary to promote, advertise, and further the sport of horse racing, or for the effective operation of hub operations, including, without limitation, interstate account wagering, television product ion, and telecommunications services. (6) The corporation shall promulgate administrative regulations to effectuate the provisions of KRS 230.775 tion, interstate account wagering, television product ion, and telecommunications services. (6) The corporation shall promulgate administrative regulations to effectuate the provisions of KRS 230.775 to 230.785. The administrative regulations shall include but not be limited to criteria for licensing, the app lication process, the format for the plan of operations, requisite fees, procedures for notifying the corporation of substantive changes, contents of agreements entered into under subsection (5) of this section, procedures for accounting for wagers made, a nd other matters reasonably necessary to implement KRS 230.775 to 230.785. (7) The corporation may require the hub to make the following payments to the corporation: (a) A license fee not to exceed two hundred dollars ($200) per operating day; and (b) A fee of not more than one percent (1%) of the hub's total gross wagering receipts. (8) A hub's records and financial information shall not be subject to the provisions of KRS 61.870 to 61.884. (9) The Auditor of Public Accounts may review and audit all records and financial information of the hub, including all account information. not be subject to the provisions of KRS 61.870 to 61.884. (9) The Auditor of Public Accounts may review and audit all records and financial information of the hub, including all account information. The Auditor shall prepare a report of the review and audit which shall not contain any propriet ary information regarding the hub. A copy of the report shall be sent to the Legislative Research Commission for referral to the appropriate committee. Effective: July 1, 2024 History: Amended 2024 Ky. Acts ch. 171, sec. 91, effective July 1, 2024. -- Amen ded 2010 Ky. Acts ch. 24, sec. 489, effective July 15, 2010. -- Created 2004 Ky. Acts ch. 173, sec. 4, effective July 13, 2004.
Kentucky Legal Code