Kentucky Administrative Regulations › Title 809 - Public Protection Cabinet - Kentucky Horse Racing Commission › Chapter 10 - Technical Criteria › Section 809 KAR 10:006 - Audit and internal control standards

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO: KRS Chapter 230
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16)(a)
				requires the racing commission to promulgate regulations to establish standards
				related to sports wagering, including standards for "maintaining and auditing
				books and financial records, securely maintaining records of bets and wagers,
				integrity requirements for sports wagering and related data surveillance and
				monitoring systems, and other reasonable technical criteria related to
				conducting sports wagering."KRS 230.811(2) requires tracks and service
				providers to "comply with the standards established by the racing commission .
				. . to ensure the integrity of the system of sports wagering." This
				administrative regulation establishes internal control standards, including
				administration and accounting controls, and establishes certain duties to
				permit access to the racing commission of information and records, record
				retention, and reporting requirements.
Section
			 1. Internal Controls. Before beginning operations, a licensee
			 shall submit its administrative and accounting controls, in detail, in a system
			 of internal controls for racing commission review and approval in accordance
			 with GLI-33 Standards and subsection (3) of this section. The racing commission
			 or its designee may perform any inspection necessary in order to determine
			 conformance with the approved internal controls.
(1) Amendments to any portion of the internal
			 controls shall be submitted to the racing commission for approval consistent
			 with commission staff audits in accordance with GLI-33 Standards. If, within
			 thirty (30) calendar days the racing commission has not approved, denied, or
			 otherwise provided written notice, a licensee may implement the amended
			 internal controls, which shall be implemented as submitted, in which case the
			 racing commission shall retain its authority to require further amendment,
			 approval, or denial.
(a) The racing commission
			 may approve, deny, or require a revision to the amendment to the internal
			 controls consistent with commission staff audits in accordance with GLI-33
			 Standards. If the licensee is notified of a required revision, the licensee
			 shall address the revision within fifteen (15) calendar days, unless otherwise
			 required by the commission based on immediate risk or immediate implied risk to
			 sports wagering.
(b) If the racing
			 commission requests additional information, clarification, or revision of an
			 amendment to the internal controls and the licensee fails to satisfy the
			 request within thirty (30) calendar days after the racing commission submits
			 the request, the racing commission shall consider the amendment denied and the
			 amendment shall not be implemented or, if previously implemented, the licensee
			 shall cease implementation of that amendment within fifteen (15) calendar days.
			 If the licensee subsequently wants to pursue the amendment, it shall resubmit
			 the request along with the additional information previously requested by the
			 racing commission.