No owner's license or renewal thereof shall be granted to any corporation if the Commission finds that any principal stockholder of such stock corporation, or any member of such nonstock corporation:
1. Is or has been guilty of any illegal, corrupt or fraudulent act, conduct or practice in connection with horse racing in this or any other state, or has knowingly failed to comply with the provisions of this chapter or Commission regulations;
2. Has had a license or permit to hold or conduct a race meeting denied for cause, suspended or revoked in any other state or country; or
3. Has at any time during the previous five years knowingly failed to comply with the provisions of this chapter or any Commission regulations.