Connecticut Administrative Code › Title 12 - Taxation › 865 - Online Casino Gaming, Retail and Online Sports Wagering, Fantasy Contests, Keno and Online Sale of Lottery Tickets › Section 12-865-29 - Enforcement and Summary Suspension

Current through July 10, 2024
(a) Investigation.
			 The department may investigate any person with a license issued pursuant to
			 this act for potential violation of the technical standards or state or federal
			 law.
(b) Failure to comply with the
			 act, sections 12-865-1 to 12-865-34, inclusive of the Regulations of
			 Connecticut State Agencies, internal controls, or technical standards
			 established pursuant to section 12-865-3(n) of the Regulations of Connecticut
			 State Agencies shall constitute a violation of law and the commissioner shall
			 have authority to issue fines, or suspend, revoke, deny, or place conditions
			 upon a license pursuant to section 12-862 of the Connecticut General
			 Statutes.
(c) Inspection of
			 records. Every person required by sections 12-865-1 to 12-865-34, inclusive, of
			 the Regulations of Connecticut State Agencies, to prepare, obtain or keep
			 records, logs, reports or other documents, and every person in charge of or
			 having custody of such documents, shall maintain such documents in an auditable
			 format. Upon request, such person shall make such documents available for
			 review and copying by the department. When possible, such documents shall be
			 submitted to the department in electronic form. The commissioner may request
			 any information the commissioner deems necessary for the proper administration
			 of the act and sections 12-865-1 to 12-865-34, inclusive, of the Regulations of
			 Connecticut State Agencies. Inspection may include the review and reproduction
			 of any record.
(d) Application
			 Denial. The department may deny any application for a license or renewal
			 application for cause, including, but limited to, conduct of a character
			 inimical to the integrity of gaming, the provision of false or misleading
			 information, or due to an incomplete application. Upon refusal to issue or
			 renew a license, the commissioner shall notify the applicant of the denial and
			 of the applicant's right to request a hearing within ten days from the date of
			 receipt of the notice of denial. If the applicant requests a hearing within
			 such ten days, the commissioner shall give notice of the grounds for the
			 commissioner's refusal and shall conduct a hearing concerning such refusal in
			 accordance with the provisions of chapter 54 of the Connecticut General
			 Statutes concerning contested cases. If the commissioner's denial of a license
			 is sustained after such hearing, an applicant may make new application not less
			 than one year after the date on which such denial was sustained.
(e) License Enforcement Actions. The
			 commissioner shall have the authority to take enforcement action against
			 licensees in accordance with chapter 54 of the Connecticut General Statutes.
			 The department is authorized to engage in settlement negotiations and enter
			 into settlement agreements with licensees in lieu of formal administrative
			 enforcement action.
(f) Summary
			 Suspension, Cease and Desist. A license may be summarily suspended, pending a
			 hearing pursuant to section 4-182 of the Connecticut General Statutes, or a
			 cease and desist order may be issued to the licensee by the commissioner, if
			 the department finds that based on the conduct of a licensee, emergency action
			 is required to protect public health, safety, or welfare, such as when a
			 licensee, or employee or officer of a licensee, is alleged to have manipulated
			 or inappropriately accessed an electronic wagering system or any associated
			 hardware or software; tampered with a licensee's gaming files; or otherwise
			 defrauded the public by compromising wagering authorized by the act.
(g) Distribution of Investigation and
			 Enforcement Information. To ensure compliance with technical standards, and
			 state and federal laws and regulations, the department may refer any case
			 involving an alleged violation of law to a state, federal or local law
			 enforcement agency. In addition, the department may inspect, obtain or provide
			 information regarding applicants, licensees or any of their affiliates from or
			 to law enforcement entities or gaming authorities and other domestic, federal
			 or foreign jurisdictions, including the Federal Bureau of
			 Investigation.
(h) Embargo of
			 Unlawful Hardware. Whenever the department finds, or has probable cause to
			 believe, that any hardware related to gaming authorized by the act has been
			 compromised in such a way that affects the integrity of gaming or causes
			 economic harm to consumers or the state, the department may require that such
			 hardware be embargoed in a manner acceptable to the department. Upon notice by
			 the department of such embargo, the licensee or such third party in control of
			 the hardware shall immediately affix a tag or other appropriate marking on the
			 hardware to indicate that it is not available for use. The licensee may request
			 a hearing before the commissioner in accordance with chapter 54 of the
			 Connecticut General Statutes. Such request for hearing shall be made in writing
			 to the commissioner within ten days of receipt from the department of the
			 notice of embargo. The Commissioner may grant or deny the request for a hearing
			 at the Commissioner's discretion. If such request for a hearing is denied, the
			 denial shall be final and the licensee may appeal such denial to the Superior
			 Court in accordance with section 4-183 of the Connecticut General
			 Statutes.
(i) No person shall
			 transfer, remove or dispose of the embargoed hardware without the written
			 permission of the commissioner. The embargo shall remain in force until removed
			 by the commissioner, ordered to be removed by a court of competent jurisdiction
			 or the hardware is confiscated pursuant to an order by the court.