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 12-865-27 - Policies and Procedures

Current through July 10, 2024
(a) Unless
			 otherwise provided for by the department, before beginning internet gaming, an
			 online gaming operator and sports wagering retailer shall submit their internal
			 controls in detail in writing for department review and approval. If an online
			 gaming operator is licensed to offer more than one type of internet game, for
			 example online casino gaming and fantasy contests, the online gaming operator
			 may have separate sets of internal controls for each type of internet game.
			 Internal controls shall include a detailed description of the administrative
			 and accounting procedures to be utilized by the online gaming operator in
			 compliance with the act and sections 12-865-1 to 12-865-34, inclusive, of the
			 Regulations of Connecticut State Agencies. The procedures shall include, but
			 not be limited to:
(1) An online gaming
			 operator's procedures for responding to a failure of the electronic wagering
			 platform, including procedures for restoring internet gaming.
(2) An online gaming operator's automated and
			 manual risk management procedures, including procedures to govern emergencies
			 such as suspected or actual cyber-attacks on, hacking of, or tampering with the
			 electronic wagering platform and associated equipment. The procedures shall
			 include the process for the reconciliation or repayment of an internet gaming
			 account.
(3) Procedures for
			 identifying and reporting fraud and suspicious conduct.
(4) Procedures to prevent wagering by
			 excluded or prohibited patrons.
(5)
			 Procedures for online gaming operator and sports wagering retailer imposed
			 expulsion of patrons, including the following:
(A) Providing a notification to the patron of
			 the patron's expulsion status and general instructions for
			 resolution.
(B) Ensuring that
			 immediately upon executing the expulsion order, no new wagers or deposits are
			 accepted from the expelled patron, until such time as the licensee lifts the
			 expulsion order.
(C) Ensuring that
			 the patron is not prevented from withdrawing any or all of his or her account
			 balance, if the online gaming operator acknowledges that the funds have
			 cleared, and that the reason or reasons for expulsion would not prohibit a
			 withdrawal.
(6)
			 Description of the process for voiding or cancelling wagers and refunding the
			 patron.
(7) Procedures for issuance
			 and acceptance of complimentaries for internet gaming.
(8) Procedures for identifying and
			 restricting prohibited patrons.
(9)
			 An online gaming operator's methods for securely issuing, modifying, and
			 resetting a patron's account password, personal identification number, or other
			 approved security feature, if applicable. Any such method shall include
			 notification to the patron following any modification via electronic or regular
			 mail, text message, or other manner approved by the department. Such methods
			 shall include, at a minimum, one of the following:
(A) Proof of identity, if in
			 person.
(B) The correct response to
			 two or more challenge questions.
(C) Strong authentication.
(10) In detail, the location of
			 the online gaming operator's gaming servers, including any third-party remote
			 location servers, and what controls will be in place to ensure security of the
			 gaming servers.
(11) Procedures and
			 security for the calculation, recording, and reporting of gross revenue,
			 adjusted gross revenue, winnings, and prizes; or gross receipts and winnings if
			 the online gaming operator provides fantasy contests.
(12) Policies and procedures in connection
			 with the internal audit, or equivalent, function of its internet gaming
			 operations.
(13) Any other items
			 considered necessary by the department.