                                 CODE OF VIRGINIA

ISSUANCE OF REGISTRATION; DENIAL OF SAME (§ 59.1-558)

A. The Department shall consider all applications for registration and shall
issue a valid registration to an applicant that meets the criteria set forth in
this chapter.

B. The Department shall deny registration to any applicant unless it finds that:

   1. If the corporation is a stock corporation, such stock is fully paid and
   nonassessable and has been subscribed and paid for only in cash or property to
   the exclusion of past services and, if the corporation is a nonstock
   corporation, that there are at least five members;

   2. All principal stockholders or members have submitted to the jurisdiction of
   the Virginia courts for the purposes of this chapter, and all nonresident
   principal stockholders or members have designated the Commissioner of the
   Department as their agent for receipt of process;

   3. The applicant&#8217;s articles of incorporation provide that the
   corporation may, on vote of a majority of the stockholders or members,
   purchase at fair market value the entire membership interest of any
   stockholder or require the resignation of any member who is or becomes
   unqualified for such position under subsection C; and

   4. The applicant meets the criteria established by the Department for the
   granting of registration.

C. The Department may deny registration to an applicant if it finds that the
applicant, or any officer, partner, principal stockholder, or director of the
applicant:

   1. Has knowingly made a false statement of material fact or has deliberately
   failed to disclose any information requested;

   2. Is or has been found guilty of any illegal, corrupt, or fraudulent act,
   practice, or conduct in connection with any fantasy contest in this or any
   other state or has been convicted of a felony, a crime of moral turpitude, or
   any criminal offense involving dishonesty or breach of trust within the 10
   years prior to the date of application for registration;

   3. Has at any time knowingly failed to comply with the provisions of this
   chapter or of any requirements of the Department;

   4. Has had a registration or permit to hold or conduct fantasy contests denied
   for just cause, suspended, or revoked in any other state or country;

   5. Has legally defaulted in the payment of any obligation or debt due to the
   Commonwealth; or

   6. Is not qualified to do business in the Commonwealth or is not subject to
   the jurisdiction of the courts of the Commonwealth.

D. Any operator applying for registration or renewal of a registration may
operate during the application period unless the Department has reasonable cause
to believe that such operator is or may be in violation of the provisions of
this chapter and the Department requires such operator to suspend the operation
of any fantasy contest until registration or renewal of registration is issued.

E. The Department shall issue such registration within 60 days of receipt of the
application for registration. If the registration is not issued, the Department
shall provide the operator with the justification for not issuing such
registration with specificity.

HISTORY: 2016, cc. 318, 703.