Subject: 462-210-0030 (Establishing an Account): Remove
language pertaining to player account balance requirements.
(Operation of an Account): Amends the section to state, “Cash deposit made at
an approved outlet, or other deposit mechanisms as approved by the commission.”
(Operation of an Account): Amends section to read, “Upon request by an account
holder the account wagering center shall provide on an annual basis, at no
cost, a written statement of an individual’s account activity. Unless written
notice to the contrary is received by the account wagering center within
fourteen (14) days of the date that any statement is sent to an account holder,
the statement will be deemed accepted as correct.”
(Approval of the License for a Hub Operation): Adds (1)(a) and (1)(a)(A) which
state: (1)(a) “A license may range from one to five years in length and the
length should be so noted in the application submitted” and, (1)(a)(A) “The
current, daily licensing fee is to be remitted no later than June 30th of each
year licensing has been granted or is being requested.”
(Approval of the License for a Hub Operation): Removes “FDIC” requirement and
establishes new requirement for regulatory enforcement.
(Approval of the License for a Hub Operation): Amends 9(a)(b)(c) to read as
An applicant must
provide the following to the commission:
(a) Access to
customer call monitoring, account holder detail, and electronic wagering data;
(b) On site
regulatory visits of the call center by authorized commission staff; and
to the commission for expenses associated with out-of-state regulatory visits.
(Approval of the License for a Hub Operation): Adds new sub-section (10) which
reads: “An applicant must maintain all customer account related documentation
for a period of not less than one year, and audio recording for a period of not
less than three months.”
Rules Coordinator: Nancy A. Artmann—(971) 673-0211
Establishing An Account
(1) An established account is necessary to place
account wagers. An account may be established at either an account wagering
center or by mail to a race meet licensee:
(a) For establishing the account with an account
wagering center an application form must be signed or otherwise authorized in a
manner acceptable to the commission and include:
(A) The applicant’s full legal name;
(B) Principal residence address;
(C) Telephone number; and
(D) Any other information required by the commission.
(b) Each application submitted will be subject to
electronic verification with respect to name, principal residence address and
date of birth by either a national, independent, individual reference service
company or another technology which meets or exceeds the reliability, security,
accuracy, privacy and timeliness provided by individual reference service
companies. An account wagering center may require the applicant’s social
security number to complete the verification process and for tax reporting
purposes. If there is a discrepancy between the application submitted and the
information provided by the electronic verification described above or if no
information on the applicant is available from such electronic verification,
another individual reference service may be accessed or another technology
meeting the requirements described above may be used to verify the information
provided. If these measures prove unsatisfactory, then the applicant will be
contacted by the account wagering center and given instructions as to how to
resolve the matter.
(c) All account holder identities must be verified via
electronic means or copies of other documents before a wager can occur.
(2) Each account shall have an unique identifying
account number. The identifying account number may be changed at any time by
the account wagering center provided the account wagering center informs the
account holder in writing prior to the change.
(3) The applicant shall supply the account wagering
center with an alpha-numeric code, to be used as a secure personal
identification code when the account holder is placing an account wager. The
account holder has the right to change this code at any time.
(4) The account wagering center may not establish an
account for any person whose principal residence address is not within the
State of Oregon. The principal residence address shall be established by
reliance on the information submitted on the application form provided and
certified by the applicant.
(5) The holder of the account shall receive at the time
the account is approved:
(a) Unique account identification number;
(b) Copy of the account wagering rules and such other
information and material that is pertinent to the operation of the account; and
(c) Such other information as the account wagering
center or commission may deem appropriate.
(6) The account wagering center shall accept accounts
in the name of a natural person only.
(7) The account is nontransferable between natural
(8) The account wagering center may close or refuse to
open an account for what it deems good and sufficient reason, and shall order
an account closed if it is determined that information that was used to open an
account was false, or that the account has been used in violation of these
Stat. Auth.: ORS 462.270(3) &
Stats. Implemented: ORS 462.142
Hist.: RC 3-2000, f. 3-27-00,
cert. ef. 5-1-00; RC 1-2002, f. & cert. ef. 1-3-02; RC 3-2007, f. 3-29-07,
cert. ef. 7-1-07; RC 1-2009, f. 4-21-09, cert. ef. 7-1-09; RC 1-2010, f.
9-23-10, cert. ef. 10-1-10; RC 1-2011, f. 6-6-11, cert. ef. 6-9-11
Operation of an Account
(1) The account wagering center may refuse deposits to
an account for what it deems good and sufficient reason.
(2) The account wagering center may suspend any account
or close any account at any time provided that when an account is closed, the
account wagering center shall, within five business days, return to the account
holder all monies then on deposit by sending a check to the principal residence
address as listed on the application.
(3) Credits to an account after the initial
establishment of the account may be made as follows:
(a) Deposits to an account by an account holder shall
be made in the following forms:
(A) Cash deposit made at an approved outlet, or other
deposit mechanisms as approved by the commission; or
(B) Check, money order or negotiable order of
withdrawal given or sent to an account wagering center; or
(C) Charges made to an account holder’s credit card or
debit card upon the direct and personal instruction of the account holder,
which may be given by telephone to the account wagering center by the account
holder if the use of the card has been approved by the account wagering center;
(D) Transfer by means of an electronic funds transfer
from a monetary account controlled by an account holder to his/her account,
said account holder to be liable for any charges imposed by the transmitting or
receiving entity with such charges to be deducted from the account.
(E) Funds so deposited will be made available for
wagering use in accordance with financial institution funds availability
(b) Credit for winnings from wagers placed with funds
in an account and credit for account wagers on entries that are scratched shall
be posted to the account by the account wagering center.
(c) For fees for service or other transaction-related
charges by the race meet licensee and/or agent of the race meet licensee.
(4) Debits to an account shall be made as follows:
(a) Upon receipt by the account wagering center of an
account wager, the account wagering center shall debit the account in the
amount of the wager; or
(b) For fees for service or other transaction-related
charges by the race meet licensee and/or agent of the race meet licensee; or
(c) An account wagering center may authorize a
withdrawal from an account when one of the following exists:
(A) The account holder of an account appears personally
at the account wagering center and provides the following:
(i) Proper identification;
(ii) The correct secure personal identification code;
(iii) A properly completed and signed withdrawal slip.
(B) The account holder sends to the account wagering
center a properly completed and signed withdrawal slip. Upon receipt of a
properly completed and signed withdrawal slip, and if there are sufficient
funds in the account to cover the withdrawal, the account wagering center
shall, within five business days of its receipt, send a check to the account
holder. The check shall be payable to the holder of the account and in the
amount of the requested withdrawal. If funds are not sufficient to cover the
withdrawal, the account holder will be notified in writing and those funds in
the account will be withdrawn and sent to the account holder within the
five-day time period. Electronic funds transfers may be used for withdrawals in
lieu of a check at the discretion of the account holder and the account
wagering center subject to the same conditions described for electronic funds
transfer credits described in subsection (3)(a)(D) of this rule.
(d) The race meet licensee and/or the agent of the race
meet licensee may close accounts in which there has been no activity for at
least six (6) months, returning funds remaining therein to the account holder
at his/her principal residence address.
(e) In the event an account holder is deceased, funds
accrued in the account shall be released to the decedent’s legal representative
upon receipt of a copy of a valid death certificate, tax releases or waivers,
probate court authorizations or other documents required by applicable laws.
(5) The account wagering center shall not accept wagers
from an account holder in an amount in excess of the account balance.
(6) Checks, money orders and other negotiable
instruments shall be posted to the credit of the account holder in accordance
with financial institution funds availability schedules.
(7) Monies deposited with the account wagering center
for account wagering shall not bear any interest to the account holder.
(8) Account wagers shall be accepted during such time
and on such days in such manner as designated by the commission.
(9) Notwithstanding any other rules, the managing
employee of the account wagering center may at any time declare the account
wagering center closed for receiving wagers on any pari-mutuel pool, race,
group of races, or closed for all wagering. Anytime the account wagering center
is closed during normal wagering hours by the managing employee a written
report must be filed with the commission within forty-eight (48) hours.
(10) The account wagering center has the right at any
time and for what it deems good and sufficient reason to refuse to accept all
or part of any wager.
(11) Accounts are for the personal use of the account
holder. The account holder is responsible for maintaining the secrecy of the
account number and secure personal identification code. Except where the
account wagering center or its employees or agents act without good faith or
fail to exercise ordinary care, the account wagering center shall not be
responsible for any loss arising from the use by any other person or persons of
an account holder’s account. The account holder must immediately notify the
account wagering center of a breach of the account’s security.
(12) Payment on winning pari-mutuel wagers and credits
for account wagers on entries which are scratched shall be posted to the credit
of the account holder as soon as practicable after the race is declared official.
(13) Upon request by an account holder the account
wagering center shall provide on an annual basis, at no cost, a written
statement of an individual’s account activity. Unless written notice to the
contrary is received by the account wagering center within fourteen (14) days
of the date that any statement is sent to an account holder, the statement will
be deemed accepted as correct.
principal residence address provided in writing by the account holder at the
time of application is deemed to be the proper address for the purposes of
mailing checks, statements of account, account withdrawals, notices, or other
appropriate correspondence. The mailing of checks or other correspondence to
the address given by the account holder shall be at the sole risk of the
(15) No employee or agent of the account wagering
center shall divulge any confidential information related to the placing of any
wager or any confidential information related to the operation of the account
wagering center, except to the account holder as required by these rules, the
commission, and as otherwise required by state or federal law, or the rules of
racing of this state.
Stat. Auth.: ORS 462.270(3) &
Stats. Implemented: ORS 462.142
Hist.: RC 3-2000, f. 3-27-00,
cert. ef. 5-1-00; RC 1-2002, f. & cert. ef. 1-3-02; RC 1-2011, f. 6-6-11,
cert. ef. 6-9-11
Approval of the License for a Hub
(1) Prior to operating a hub the entity must apply for
and be granted a license from the commission to conduct simulcasting and
pari-mutuel wagering in accordance with ORS 462.725 and these rules as a
“Multi-Jurisdictional Simulcasting and Interactive Wagering Totalizator Hub.”
(a) A license may range from one to five years in
length and the length should be so noted in the application submitted.
(b) The current, daily licensing fee is to be remitted
no later than June 30th of each year licensing has been granted or is being
(2) An applicant for a “Multi-Jurisdictional
Simulcasting and Interactive Wagering Totalizator Hub” license must provide the
following information as part of the application thirty days prior to the
scheduled commission meeting at which the application is to be presented:
(a) The applicant’s legal name;
(b) If the applicant is a corporation, the names,
addresses, dates of birth of its shareholders, directors and officers; if a
shareholder is a corporation the date of incorporation, the place of
incorporation and the names, addresses, and dates of birth of its shareholders,
directors and officers must be provided;
(c) If the applicant is a partnership the names,
addresses, dates of birth of the partners; if a partner is a corporation the
date of incorporation, the place of incorporation and the names, addresses, and
dates of birth of its share holders must be provided;
(d) If the applicant is a corporation ultimately owned
by a not-for-profit entity without any shareholders, or is a publicly traded
corporation, the information required in subsection (2)(b) and (2)(c) of this rule
shall be required from the directors of the membership organization, or the
directors and officers of the publicly traded corporation, in lieu of the
(e) The names of the race tracks the applicant, or its
agent, has contracts with that allow the applicant to provide the simulcast
signals and pari-mutuel wagering on the product;
(f) Financial information from the applicant that
demonstrates whether the applicant has the financial resources to install and
operate a hub;
(g) A detailed budget showing anticipated revenue,
expenditures and cash flows by month, from the hub’s operation during the
(h) The number of days that the applicant is planning
to operate the hub during the fiscal year in which they are seeking to be licensed;
(i) A list of all hub personnel containing the name,
position, job location, license number and expiration date. All current gaming
licenses should be listed, regardless of jurisdiction;
(j) A chart illustrating the organizational structure,
including reporting lines;
(k) A list of all states where the hub is operating;
(l) Documentation of proper filing that the Hub
applicant and/or parent company is registered to do business in the state of
(3) As part of the application for licensure as a hub,
the applicant shall submit a detailed plan of operations in a format and
containing such information as required by the commission. At a minimum, the
operating plan shall address the following issues:
(a) The manner in which the proposed simulcasting and
wagering system will operate;
(b) The requirements for a “qualified subscriber based
service” or “closed loop subscriber based system” set out in OAR
(c) Programs for responsible wagering;
(d) Mitigation for the effects of account wagering on
the source market in Oregon. In addition to the source market mitigation plan
as outlined in the application, more detailed source market information shall
be provided by the hub at the commission’s request. A mitigation plan must
include one of the following options:
(A) An agreement with a state commercial race meet
licensee as defined in ORS 462.062, a copy of which has been submitted to the
(B) A written agreement with the Oregon HBPA, a copy of
which has been submitted to the commission; or
(C) A written plan submitted to, and approved by, the
commission that mitigates the effect of account wagering and provides equitable
compensation to the commercial race meet licensee as defined in ORS 462.062.
Source market fees shall be paid statewide on Oregon accounts. Accounts must be
available to Oregon residents if a hub is licensed in Oregon.
(e) The requirements for accounts established and
operated for persons whose principal residence is outside of the state of
Oregon. The commission may require changes in a proposed plan of operations as
a condition of granting a license. No subsequent changes in the system’s
operation may occur unless ordered by the commission or until approval is
obtained from the commission after it receives a written request.
(f) A list of any affiliate sites or potential
affiliate sites of the hub. The operating plan must provide the following
information and meet the following affiliate guidelines:
(A) The name and web address of the affiliate site.
(B) The person or companies involved in the affiliate
(C) That the affiliate site agreement is clearly noted
as either a marketing or service agreement.
(D) Customers using the affiliate site will be
customers of the licensed hub, subject to the same verification process and
account operational procedures as any other customer of said hub licensee.
(E) The wagers placed through the affiliate site will
be processed through equipment owned and operated by the licensed hub and their
commission approved tote provider.
(F) The commission approved totalizator provider will
incorporate the handle of the affiliate site into the handle report for the
licensed hub, or generate a separate daily report for this handle. In either
case, the handle will count as part of the hub licensee’s handle, and the hub
licensee will be responsible for all taxes on the handle generated from their
own site and any affiliate sites.
(G) The affiliate site will be branded in some form to
indicate to the customer that they will be wagering through systems operated by
the licensed hub. The commission reserves the right to approve or deny any
affiliate sites. Additionally, the commission may determine a handle level at
which an affiliate site may need to apply for its own hub license, or at which
the hub licensee must be subject to the tax rate described in OAR
(4) The commission may conduct investigations or
inspections or request additional information from the applicant as it deems
appropriate in determining whether to approve the license application.
(5) The fee of $200 per day that the hub is scheduled
to operate must accompany the application. If the license is denied by the
commission the fee will be refunded less the amount equal to the amount that
the commission expended in conducting investigations and inspections which was
in excess of the expenses that would have otherwise been incurred by the
(6) To ensure that the funds of an applicant’s account
holders will be properly held and maintained by the applicant:
(a) The applicant must provide evidence to the
commission that the applicant has established a segregated account (the Bank
Account) in which all funds of its account holders will be deposited in an
insured account, approved by the commission, solely for the benefit of the
(A) No hub shall use the funds deposited in the Bank
Account for any purpose except to facilitate the wagering activities and other
instructions or agreements of account holders. The funds of an account holder
held in the Bank Account shall remain the property of the account holder for
all purposes until wagered by the account holder or otherwise withdrawn or used
in accordance with the account holder’s instruction or agreement;
(B) The hub shall maintain a record of each deposit,
withdrawal or other use of funds held in the Bank Account for each account
holder (the Customer Record);
(C) Any account holder, who claims that any credit or
debit to his or her Customer Record is incorrect or who claims that any
deposit, withdrawal or use of the account holder’s funds is incorrect, may file
a claim with the commission. The commission shall investigate all claims and
provide the hub with an opportunity to respond to such claim. The hub may
submit any information, documentation or other evidence supporting its position
with respect to the claim. If the commission determines that the Customer
Record is incorrect or that any deposit, withdrawal or use of an account
holder’s funds was incorrect, the hub shall have 10 days to correct same as
instructed by the commission. Such correction may require the hub to correct
the Customer Record for the account holder, to deposit additional funds into
the Bank Account for the account holder, to remit funds directly to the account
holder, or any combination thereof.
(b) The applicant must provide a $50,000 irrevocable
bond, letter of credit, or other security instrument to the commission, in a
form acceptable to the commission, which designates the commission as the
beneficiary thereof (the Security Instrument). The Security Instrument shall
permit the commission to make draws to cover such amounts as the commission
finds is necessary. For example, if a hub fails to deposit funds into the Bank
Account for an account holder or to remit funds directly to the account holder,
as described in subsection 6(a)(C) above, within 10 days of the commission’s
decision, the commission may draw down on or take other appropriate action
against the Security Instrument to ensure the account holder is immediately
(7) An applicant licensed under this section may enter
into such agreements, as for what it deems good and sufficient reasons, that
are necessary to promote, advertise and further the sport of racing or that may
be necessary for the effective operation of interstate account wagering,
including, without limitation, television production and telecommunications
(8) An applicant must maintain an operational presence
within the State of Oregon. A call center for customer wagering, a sub-contract
with an existing call center for customer wagering, or a business office is
required. In addition, totalizator equipment must be located in Oregon, and
services must be provided by a totalizator vendor identified in the hub
operating plan as approved by the commission.
(9) An applicant must provide the following to the
(a) Access to customer call monitoring, account holder
detail, and electronic wagering data;
(b) On site regulatory visits of the call center by
authorized commission staff; and
(c) Reimbursement to the commission for expenses
associated with out-of-state regulatory visits.
(10) An applicant must maintain all customer
account-related documentation for a period of not less than one year, and audio
recording for a period of not less than three months.
Stat. Auth.: ORS 462.270(3) &
Stats. Implemented: ORS 462.725
Hist.: RC 3-2000, f. 3-27-00,
cert. ef. 5-1-00; RC 3-2007, f. 3-29-07, cert. ef. 7-1-07; RC 1-2009, f.
4-21-09, cert. ef. 7-1-09; RC 1-2010, f. 9-23-10, cert. ef. 10-1-10; RC 1-2011,
f. 6-6-11, cert. ef. 6-9-11
Notes 1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.