(1) A variation of an authorized sports pool may not be conducted unless approved by the department.

(2) A person requesting approval from the department for conducting a variation of an authorized sports pool shall submit the following information to the department:

(a) a detailed description of the operation of the pool, which verifies that:

(i) there would be at least one winner from among the participants in the sports pool;

(ii) each participant would have an equal chance to win; and

(iii) competitors would be randomly assigned to each participant.

(b) a description of the method of choosing a winner; and

(c) an illustration or sample of the card used to conduct the pool.

(3) The department may request additional information, including a demonstration of the sports pool variation submitted for approval.

(4) After reviewing the proposed sports pool variation, the department shall notify in writing the person submitting the variation of its intended action. If the person desires a hearing he shall submit a written request to the department within 20 days. Upon receipt of the request, all proceedings must be conducted according to the Montana Administrative Procedure Act and the Attorney General's Model Rules of Procedure.