OAR 462-220-0085: Associations with Prohibited Persons or Entities

(1) Applicability. This rule applies to any Oregon Racing Commission’s (ORC) Person or entity licensed, registered, certified, approved, or seeking licensure or approval by the Oregon Racing Commission (“Commission”) including but not limited to vendors, service providers, partners, and white label operators. (2) Prohibited Entities. (a) A licensee, applicant and/or service provider may not enter into, maintain, or renew any partnership, contractual relationship, vendor agreement, subcontract, or other business association with any person or entity determined by ORC to be a prohibited person or entity, as defined in section (3) of this rule. (b) If a business associate is determined to be a Prohibited Entity after a relationship has begun, the licensee or ADW Service Partner must take reasonable steps to terminate or disengage from the relationship within a reasonable period of time as to be determined by the Commission. (3) Prohibited Person or Entity. For purposes of this rule, a “prohibited person or entity” includes any individual or entity that the Commission determines, based on credible evidence, has engaged in, or presents a material risk of engaging in: (a) Criminal conduct involving fraud, money laundering, racketeering, illegal gambling, bribery, corruption, embezzlement, or financial crimes under federal, state, or foreign law; (b) Operation of, participation in, or material support of illegal wagering, gaming, or betting activities in any jurisdiction; (c) Revocation, suspension, or denial of a gaming, wagering, racing, or similar license by a regulatory authority in any jurisdiction for reasons involving integrity, honesty, or suitability; (d) Inclusion on a government sanctioned or exclusion list relevant to financial crimes or gaming regulations, on any international, federal, or state exclusion list, sanctions list, or law-enforcement watch list, including, but not limited to, those maintained by the U.S. Department of Justice, U.S. Department of the Treasury, or equivalent foreign authorities; (e) A documented pattern of regulatory violations demonstrating lack of compliance, or regard for regulatory compliance; (f) Any other conduct that, in the judgment of the Commission, poses a risk to the integrity of racing, wagering, or the public interest. (4) Due Diligence Requirement. Licensees and service partners must exercise reasonable risk-based due diligence before entering and during the term of business relationships to identify and avoid associations with prohibited persons or entities. Documentation sufficient to demonstrate compliance must be maintained and made available to the Commission upon request. (5) Prohibited Persons or Entities List. The Oregon Racing Commission, at its sole discretion, retains the ability to maintain a list of prohibited persons or entities and reserves the right to add or remove entities from this list based upon its own findings at its sole discretion.