(A) Denial of application. If after a full review of an application and consideration of any other factors deemed relevant to the issuance of a license, the director determines that an applicant has not met the requirements for issuance of a license, the director may deny the application.
(B) Mandatory denial of application. Except as provided in paragraph (C) of this rule, in the event any of the following are determined by the director, an application for a license shall be denied:
(1) An applicant has been convicted of any of the following offenses:
(a) A felony, or a crime involving moral turpitude;
(b) An offense involving illegal gambling; and
(c) An offense involving fraud or misrepresentation.
(2) An applicant is affiliated with a technology provider or other vendor engaged in the operation of video lottery gaming in the state which has been determined by the director to be an unacceptable affiliation.
(C) Offense conviction. The director may require an applicant who has been convicted of any of the offenses set forth in paragraph (B) of this rule to obtain an order from a court of competent jurisdiction to have the record of such offense sealed. If such an order is not obtained during the time specified by the director, the director may refuse the application. However, if the record of an applicant contains an offense set forth in paragraph (B) of this rule which is at least ten years old, the director may disregard the offense and may license the applicant.
(D) Hearings. When required to do so by the Administrative Procedure Act, the director shall afford a hearing to an applicant for a license affected by a decision to deny an application for license. Such hearings shall be conducted by the director or a hearing officer designated by the director and shall comply with the requirements for adjudication hearings set out in the Administrative Procedure Act. Nothing contained herein shall require the director to afford the employer or potential employer of an applicant for a license a hearing or an opportunity to be heard on any decision relating specifically to an application for a license.
(E) Applicant denial and reapplication. If an application is denied, an applicant may reapply, but any subsequent application shall require submission of a new application and payment of a separate fee, and shall only be submitted after any waiting period for reapplication, if any, established by the director, has expired.