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 (Repealed.)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.