Indiana Administrative Code › Title 68 - INDIANA GAMING COMMISSION › Article 27 - SPORTS WAGERING › Rule 5 - Internal Controls and House Rules › Section 5-2 - Internal controls

Current through July 10, 2024
Authority: IC 4-38-3-1
Affected: IC 4-38-11; IC 5-14
Sec. 2.
Prior to beginning sports wagering operations, a sports
				  wagering operator must submit for approval under 68 IAC 11 internal controls
				  for the following:
(1) In the event of
				a failure of the sports wagering system's ability to pay winning wagers, the
				sports wagering operator shall have internal controls detailing the method of
				paying winning wagers. The sports wagering operator shall also file an incident
				report for each system failure and document the date, time, and reason for the
				failure along with the date and time the system is restored with the
				division.
(2) The internal controls
				shall address the following items regarding the sports wagering system and
				online sports wagering systems, at a minimum:
(A) In the event of a failure of the sports
				wagering system's ability to pay winning wagers, the sports wagering operator
				shall have internal controls detailing the method of paying winning wagers. The
				sports wagering operator shall also file an incident report for each system
				failure and document the date, time, and reason for the failure along with the
				date and time the system is restored with the division.
(B) User access controls for all sports
				wagering personnel.
(C) Segregation
				of duties.
(D) Automated and manual
				risk management procedures.
(E)
				Procedures for identifying and reporting fraud and suspicious conduct including
				identifying unusual betting activity and reporting such activity to an
				independent integrity monitoring provider.
(F) Procedures to prevent wagering by
				prohibited sports wagering participants. However, an individual that has
				enrolled for a statewide Internet self-restriction is only restricted from
				placing wagers online or via mobile device.
(G) Procedures for sports wagering
				operator-imposed exclusion of patrons, including:
(i) providing a notification containing
				operator-imposed exclusion status and general instructions for
				resolution;
(ii) ensuring that
				immediately upon executing the operator-imposed exclusion order, no new wagers
				or deposits are accepted from the patron, until such time as the
				operator-imposed exclusion has been revoked; and
(iii) ensuring that the patron is not
				prevented from withdrawing any or all of the patron's account balance, provided
				that the sports wagering operator acknowledges that the funds have cleared, and
				that the reason or reasons for exclusion would not prohibit a
				withdrawal.
(H)
				Description of anti-money laundering compliance standards, which shall include
				limitations placed on anonymous wagering at the sports wagering
				kiosks.
(I) Process for submitting
				or receiving approval of all types of wagers available to be offered by the
				system.
(J) Description of process
				for accepting wagers and issuing payouts, plus any additional controls for
				accepting wagers and issuing payouts in excess of ten thousand dollars
				($10,000).
(K) Description of
				process for accepting multiple wagers from one (1) patron in a twenty-four (24)
				hour cycle, including process to identify patron structuring of wagers to
				circumvent recording and reporting requirements.
(L) For sports wagering conducted by a
				vendor, a description of how revenue will be reported to the certificate of
				authority holder and how the certificate of authority holder will remit taxes
				as required by IC 4-38.
(M)
				Detailed procedures for reconciliation of assets and documents contained in a
				sports wagering lounge cashier's drawer, sports wagering kiosks, and online
				sports wagering, which shall include the drop, fill, and count procedures for
				sports wagering kiosks.
(N)
				Procedures for cashing winning tickets at the cage after the sports wagering
				lounge has closed, if applicable.
(O) Procedures for accepting value game chips
				for sports wagers, if applicable.
(P) Procedures for issuance and acceptance of
				promotional funds for sports wagering.
(Q) Description of all integrated third-party
				systems.
(R) Identifying and
				restricting prohibited sports wagering participants. However, an individual
				that has enrolled for a statewide Internet self-restriction is restricted only
				from placing wagers online or via mobile device.
(S) Instituting a process to close out
				dormant accounts.
(T) Detailed
				procedures for making adjustments to a patron's account, providing a method for
				a patron to close out an account, and detail how a patron will be refunded
				after the closure of an account.
(U) Detailed procedure for W-2G issuance when
				triggered.
(V) If the sports
				wagering system allows online wagering, method for verifying geolocation
				systems to establish a patron's geographic location.
(W) Maintaining the security of identity and
				financial information of patrons.
(X) Withholding winnings from delinquent
				child support obligors in accordance with IC 4-38-11, including a plan for
				complying with IC 4-38-11 if the sports wagering operator allows the redemption
				of tickets via mail.
(Y) Detailed
				problem gambling program procedures.
(Z) Method for securely implementing the
				statewide Internet self-restriction program.
(AA) Method for securely issuing, modifying,
				and resetting a patron's account password, personal identification number
				(PIN), or other approved security feature, when applicable.
(BB) Methods of patron notification,
				including any password or security modification via electronic mail or regular
				mail, text message, or other manner approved by the executive director or the
				executive director's designee. Such methods shall include at a minimum:
(i) proof of identity, if in
				person;
(ii) the correct response
				to two (2) or more challenge questions; or
(iii) strong authentication.
(CC) Procedures for receiving,
				investigating, and responding to all patron complaints and submitting any
				unresolved patron complaint reports to the division.
(DD) Detailing the location of the sports
				wagering servers, including any third party remote location servers, and what
				controls will be in place to ensure security of the sports wagering
				servers.
(EE) Terms and conditions
				for sports wagering shall be included as an appendix.
(FF) Description of the process for line
				setting and line moving.
(GG) If
				allowed, method of redeeming lost tickets.
(HH) Method by which the sports wagering
				operator will identify and cancel wagers in accordance with IC 4-38, including
				defining "obvious error".
(II)
				Method for deploying changes and updates to the sports wagering system,
				including notification to the commission.
(JJ) Any other internal control deemed
				necessary by the executive director or the executive director's designee to
				ensure the integrity of sports wagering.