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 12-865-28 - Policies and ProceduresFinancial Reporting and Auditing

Current through July 10, 2024
(a) Prior to any independent audit of a
			 master wagering licensee or online gaming operator to be performed by a
			 certified public accountant, the master wagering licensee or online gaming
			 operator shall provide to the department the opportunity to meet with the
			 independent certified public accountant that will perform such audit to
			 identify areas of audit to be conducted. At least ten days prior to issuance of
			 a final independent audit report, the certified public accountant performing
			 such audit shall send the draft report to the department for review. The
			 department may require a meeting with the certified public accountant prior to
			 issuance of the final audit report.
(b) A master wagering licensee and online
			 gaming operator shall have an independent certified public accountant audit its
			 books and accounts at least once each fiscal year. The books, records and
			 financial statements of the master wagering licensee and the online gaming
			 operator shall be prepared in accordance with generally accepted accounting
			 principles. A master wagering licensee and online gaming operator shall require
			 that an independent certified public accountant submit to the department within
			 one-hundred-fifty days after the close of its fiscal year, a complete set of
			 audited financial statements that present the licensee's financial position and
			 the results of its operations and its cash flows in conformity with generally
			 accepted accounting principles.
(c)
			 A master wagering licensee and online gaming operator shall provide to the
			 department any audit report related to internet games, or sports wagering
			 retail operation in the state of Connecticut, completed by any governmental
			 body, independent certified public accountant, independent testing laboratory,
			 or other consultant, including any audit report performed on its electronic
			 wagering platform.
(d) Master
			 wagering licensees and online gaming operators shall provide the following to
			 the department on an annual basis:
(1) An
			 organizational chart;
(2) A report
			 as to whether any material deficiencies in internal controls were noted by the
			 independent certified public accountant during the course of the annual
			 independent audit of the licensee's financial statements. In addition, the
			 master wagering licensee and the online gaming operator shall submit to the
			 department a copy of any report and associated certified public accountant
			 engagement letters issued by the independent certified public accountant
			 lawyers' contingency letters in connection with the annual audit;
(3) The master wagering licensee and the
			 online gaming operator's management representation letter to the auditor for
			 accounting information material to the financial statements and for matters
			 relating to audit disclosure requirements. Any reports resulting from an
			 examination or the performance of mutually agreed upon procedures relating to
			 the design or operating effectiveness of the master wagering licensee and the
			 online gaming operator's internal controls; and (4) If amended since the last
			 annual submission to the department, articles of organization, certificates of
			 incorporation, bylaws, corporate resolutions or any other organizing documents
			 of the master wagering licensee or the online gaming operator.