Kan. Admin. Regs. § 112-3-11 - Racing operation and parimutuel wagering

Each application for an organization license shall contain the following information about the operation and conduct of any horse races or greyhound races and the parimutuel system of wagering:

(a) The application shall state by actual dates the live racing days requested by the applicant.

(b) The application shall state the kind of racing to be conducted.

(c) The application shall list those persons within the applicant organization who will be supervising the conduct and operation of the horse races or greyhound races, or both, and the operation of the parimutuel system of wagering to the extent known, including the following:

(1) The legal name, all aliases, and any previous name;

(2) the current residence and each business address and telephone number;

(3) any qualifications and experience in the following areas:

(A) General business;

(B) finance and accounting;

(C) racing industry;

(D) parimutuel systems and wagering; and

(E) security;

(4) a copy of any written contract or a statement of the terms of any oral agreement between the applicant and each officer and staff member identified in subsection (c) above;

(5) the basic job description and qualifications for each position described in subsection (c) above and a personnel organization chart;

(6) a plan for preopening and continuing training for the applicant's personnel; and

(7) a personal background disclosure form executed and verified by each of the individuals identified in subsection (c) above.

(d) The application shall state financial projections regarding the operation and conduct of any races and parimutuel wagering during the first five racing years, with separate schedules based upon the number of racing days and types of parimutuel wagering that the applicant requires to break even and the optimum number of live racing days and types of wagering the applicant seeks each year. The applicant shall attach to the financial projection statement any documentation of assumptions or projections made, including the following:

(1) Projected balance sheets by an independent certified public accountant that, for the end of the development or improvement period and for each of the first five years of racing, state the current, fixed, and other noncurrent assets, current and long-term liabilities, and capital accounts, including the accountant's review report of the financial and cash flow projections based on, among others, the following assumptions and support for them:

(A) The average daily attendance;

(B) the average daily handle;

(C) the average per capita wager;

(D) the number of estimated admissions to the track, including each ticket price and free admission;

(E) the estimated minimum purse schedule;

(F) the totalisator equipment lease;

(G) any state and federal tax;

(H) the estimated payroll;

(I) the amount of insurance;

(J) any travel expense;

(K) any operating supplies and services;

(L) any repair and maintenance expense;

(M) any membership expense;

(N) any legal and audit expense;

(O) any retainage from the parimutuel handle;

(P) any parimutuel expense; and

(Q) any equipment depreciation and the meth-od of depreciation used; and

(2) an information sheet detailing the background of the independent certified public accountant who provided the financial projections requested in paragraph (d)(1).

(e) The application shall state whether the applicant, any officer, any director, or any principal stockholder has complied with and is in compliance with K.S.A. 74-8810, and amendments thereto.

(f) The application shall state a proposal for security of payment, including a surety bond or other financial security, and the amount of payment adequate to secure the licensee's potential financial liability for unpaid taxes, purses, and distribution of parimutuel winnings and breakage.

(g) The application shall state a plan for distribution of the net earnings from the conduct of horse races or greyhound races, or both, pursuant to K.S.A. 74-8813(d), and amendments thereto, projected over the first five years of racing.

(h) The application shall describe the applicant's parimutuel department, including the totalisator facility, the nature and type of equipment to be installed, and any proposed lease agreements relating to the totalisator system and the equipment. A copy of each lease agreement, written contract, or statement of the terms of any oral agreement between the applicant and the totalisator equipment provider shall be attached to the application.

(i) The application shall describe the starting, timing, photo finish, and photo patrol or video equipment, including any provider of equipment or services. A copy of any lease agreement, written contract or statement of the terms of any oral agreement between the applicant and any provider identified in this subsection shall be attached to the application.

(j) The application shall list memberships of the applicant, any personnel, and consultants in horse racing or greyhound racing organizations and memberships in any other organizations.

Notes

Kan. Admin. Regs. § 112-3-11

Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8813 and 74-8814; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988; amended Sept. 5, 2003.