(a) Prior to operating requirements.--Before doing business in this Commonwealth, all of the following are required of a licensee:
(1) Be qualified to do business in this Commonwealth.
(2) Submit a copy of each document required to be filed with the Department of Revenue and each document related to an audit or investigation by any Federal, State or local regulatory agency to the commission.
(3) Remit to the commission a copy of each document required to be filed with any Federal, State or local regulatory agency.
(b) Requirements.--
(1) A licensee shall submit quarterly reports to the commission providing amounts wagered by residents in this Commonwealth and amounts wagered on races in this Commonwealth.
(2) A licensee shall contribute to the purse account in accordance with section 9331(d) (relating to pari-mutuel wagering at nonprimary locations).
(3) A licensee shall not commingle account funds with other funds.
(4) A licensee shall provide quarterly financial statements to the commission for the first calendar year of operation if the licensee does not have audited financial statements for the last three years as referenced in section 9353(a)(4) (relating to license application procedures).
(5) A licensee shall use and communicate pari-mutuel wagers to a totalisator licensed by the commission.
(6) A licensee shall operate and communicate with the totalisator in such a way as not to provide or facilitate a wagering advantage based on access to information and processing of wagers by account holders relative to individuals who wager at licensed racing entities or simulcast facilities.
(7) All personnel processing wagers made by residents of this Commonwealth shall be licensed by the commission.
(8) Accounts shall only be accepted in the name of an individual and shall not be transferable. Only individuals who have established accounts with a licensee may wager through a licensee.
(9) Each account holder shall provide personal information as the licensee and the commission require, including all of the following:
(i) Name.
(ii) Principal residence address.
(iii) Telephone number.
(iv) Social Security number.
(v) Date of birth.
(vi) Other information necessary for account administration.
(10) The information supplied by the account holder shall be verified by the licensee using means acceptable to the commission.
(11) The licensee shall provide each account holder a secure personal identification code and password to be used by the account holder to confirm the validity of every account transaction.
(12) An employee or agent of the licensee shall not disclose any confidential information except as follows:
(i) To the commission.
(ii) To the account holder as required by this chapter.
(iii) To the licensee and its affiliates.
(iv) To the licensed racing entity as required by the agreement between the licensee and the licensed racing entity.
(v) As otherwise required by law.
(13) The licensee shall provide each account holder a copy of account holder rules and the terms of agreement and other information and materials that are pertinent to the operation of the account.
(14) The licensee may refuse to establish an account if it is found that any of the information supplied is false or incomplete or for any other reason the licensee deems sufficient.
(15) Each account shall be administered in accordance with the account holder rules and the terms of agreement provided to account holders, including:
(i) Placing of wagers.
(ii) Deposits to accounts.
(iii) Credits to accounts.
(iv) Debits to accounts.
(v) Refunds to accounts.
(vi) Withdrawals from accounts.
(vii) Minimum deposit requirements.
(viii) Fees per wager.
(ix) Rebates.
(16) Each licensee shall have protocols in place and shall publicize to its account holders when the wagers are excluded from a host racetrack's wagering pool. These protocols shall include an immediate electronic mail message to affected account holders and immediate posting on the licensee's publicly accessible Internet website.
(17) A licensee shall maintain complete records of the application and the opening of an account for the life of the account plus two additional years. A licensee shall also maintain complete records of the closing of an account for two years after closing. These records shall be provided to the commission upon request.
(18) A licensee shall maintain complete records of all transactions, including deposits, credits, debits, refunds, withdrawals, fees, wagers, rebates and earnings for two years. These records shall be provided to the commission upon request.
(19) All wagering conversations, transactions or other wagering communications, verbal or electronic, shall be recorded by means of the appropriate electronic media, and the tapes or other records of the communications shall be kept by the licensee for a period of two years. These tapes and other records shall be made available to the commission upon request.
(20) The recording of the confirmation of the transaction, as reflected in the voice or other data recording, shall be deemed to be the actual wager regardless of what was recorded by the totalisator.
(21) A licensee shall not accept wagers if its recording system is not operable.
(22) The commission may monitor the equipment and staff and review the records of a licensee and any of the transactions conducted by the licensee with regards to wagers made by residents of this Commonwealth.
(23) A licensee may suspend or close any account for violation of the account holder rules and the terms of agreement, or any other reason it deems sufficient, if the licensee returns to the account holder all money then on deposit within seven calendar days.