Sec 5-108.03. Restrictions on ownership of licenses, permits and tracks; exemptions; sale for fair market value

A. From and after December 31, 1978, no person, firm, partnership, corporation or association or any affiliate thereof shall simultaneously hold or have an ownership interest, direct or indirect, in permits to conduct racing meetings at more than four racetracks within this state. For the purpose of this chapter a person, firm, partnership, corporation or association holding or having an ownership interest, direct or indirect, in a place, enclosure or track at which a racing meeting is conducted in this state shall be considered as holding an ownership interest in the permit or permits issued for a racing meeting at that location. This subsection shall not apply with respect to a corporation unless the person, firm, partnership, corporation or association otherwise subject to the provisions of this subsection owns or controls ten per cent or more of any class of stock of the corporation.

B. From and after December 31, 1978, no person, firm, partnership, corporation or association or any affiliate thereof, which holds or has an ownership interest, direct or indirect, in a permit to conduct a racing meeting within a county having a population of seven hundred thousand persons, or more, as shown by the last United States decennial census, shall simultaneously hold or have any ownership interest, direct or indirect, in a permit to conduct the same kind of racing within any other county having a population of seven hundred thousand persons, or more, as shown by the last United States decennial census.

C. For the purposes of subsections A or B of this section, a person, firm, partnership, corporation or association shall be considered as itself holding or having any ownership interest held directly or indirectly by its affiliates. For the purposes of this chapter, one person, firm, partnership, corporation or association shall be considered the affiliate of another person, firm, partnership, corporation or association if any of the following applies:

1. They are either directly or indirectly under common control.

2. Any officer, director, manager, partner, supervisor, substantial stockholder, owner, trustee or administrator of one person, firm, partnership, corporation or association is an officer, director, manager, partner, substantial stockholder, owner, trustee or administrator of the other person, firm, partnership, corporation or association. For the purposes of this paragraph, a substantial stockholder is one who owns at least ten per cent of the issued and outstanding stock of a corporation.

3. They, at any time, within an immediately preceding three-year period, have each had a substantial ownership interest in the same permittee authorized to conduct a racing meeting in this state. For the purposes of this paragraph, the direct or indirect ownership of ten per cent or more of the equity of a permittee shall be considered a substantial ownership interest.

D. For purposes of determining interest in a permit or permittee, insofar as the determination is based on stock ownership:

1. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be considered as being owned proportionately by its shareholders, partners or beneficiaries.

2. An individual shall be considered as owning the stock owned, directly or indirectly, by or for his family or by or for his partner. For purposes of this section, the family of an individual includes only his brothers and sisters, whether by the whole or half blood, spouse, ancestors and lineal descendants.

3. Stock constructively owned by a person by reason of the application of paragraph 1 of this subsection shall, for purposes of applying paragraph 1 or 2 of this subsection, be treated as actually owned by the person. Stock constructively owned by the person by reason of the application of paragraph 2 of this subsection shall not be treated as owned by the person for purposes of again applying paragraph 2 of this subsection in order to make another the constructive owner of the stock.