Kentucky Administrative Regulations › Title 809 - Public Protection Cabinet - Kentucky Horse Racing Commission › Chapter 10 - Technical Criteria › Section 809 KAR 10:004 - Sports wagering accounts

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO: KRS Chapter 230
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16) requires
				the commission to "promulgate administrative regulations to establish standards
				for the conduct of sports wagering."KRS 230.361(2) requires the commission to
				"promulgate administrative regulations governing and regulating sports
				wagering, including administrative regulations for the deposit of funds by
				credit or debit cards or other means of electronic funds transfer."KRS 230.805(3) requires standards for registration of sports wagering patrons'
				accounts, such as account registration and wager placement. This administrative
				regulation establishes sports wagering account requirements, dormant and closed
				account requirements, and responsible gaming limits.
Section 1. Sports Wagering Account
			 Requirements. Patrons shall register their sports wagering accounts with the
			 licensee pursuant to KRS 230.805. Licensees shall adopt account registration
			 policies pursuant to KRS 230.805. All account registration policies shall be
			 subject to approval by the commission pursuant to KAR Titles 809 and 810.
			 Nothing in this section shall be interpreted to prohibit the licensee from
			 accepting anonymous wagers by a sports wagering device within the licensed
			 premises.
(1) An account shall only be
			 established in the name of an account holder who is a natural person and shall
			 not be in the name of any beneficiary, custodian, joint trust, corporation,
			 partnership, or any other entity.
(2) A licensee shall collect the following
			 personally identifiable information from each account holder through the sports
			 wagering system:
(a) The account holder's full
			 legal name;
(b) The account
			 holder's date of birth;
(c) The
			 account holder's Social Security number, or the last four (4) digits of the
			 Social Security number, or an equivalent government identification number for a
			 noncitizen, such as a passport or taxpayer identification number; and
(d) All data required by KRS 230.805.
(3) During the
			 sports wagering account registration process, the licensee shall:
(a) Deny patrons the ability to register for
			 account if they submit a birth date that indicates that they are an underage
			 person; and
(b) Inform the patron
			 on the account application:
1. Which
			 information fields are "required";
2. Which information fields are not required;
			 and
3. The consequences of not
			 filling in the required fields.
(4) During the sports wagering account
			 registration process, patrons shall:
(a) Agree
			 to the terms and conditions and privacy policies of the licensee;
(b) Acknowledge that the patron is prohibited
			 from:
1. Transferring or selling an account or
			 account balance;
2. Using any
			 technology that could obscure or falsify the account holder's physical location
			 for the purpose of placing sports wagers;
3. Allowing any unauthorized person to access
			 or use their account; and
4. Any
			 form of collusion, cheating, or other unlawful activity.
(c) Consent to the monitoring and recording
			 of the use of their account by the licensee and the racing
			 commission;
(d) Attest that:
1. The account holder meets all eligibility
			 requirements to place a wager with a licensee in this Commonwealth;
			 and
2. The personally identifiable
			 information the account holder is providing to open the account is accurate;
			 and
(e) Authorize the
			 provision of notices and other required communications either through a
			 designated mobile or other interface or to an electronic mail address
			 designated by the account holder.
(5) A licensee shall maintain an electronic
			 patron file, which shall include for each sports wagering account:
(a) Unique sports wagering account ID and
			 username (if different);
(b) The
			 information established in subsection (2) of this section to register an
			 account holder and create the account;
(c) The date and method of identity
			 verification.
1. If applicable, the licensee
			 shall maintain the document number of the government-issued identification
			 credential examined and its date of expiration.
2. If a government-issued identification
			 credential is not required for registration, the electronic record that details
			 the process used to confirm the account holder's identity shall be
			 recorded.
(d) The date
			 of account holder agreement to the terms and conditions and privacy
			 policies;
(e) Previous sports
			 wagering accounts, if any, and reason for de-activation;
(f) The date and method from which the sports
			 wagering account was registered;
(g) The date and time a sports wagering
			 account is accessed by any person;
(h) The IP address at which a sports wagering
			 account is accessed by any person;
(i) A history of financial transactions,
			 including deposits, withdrawals, and account adjustments;
(j) Account details and current balance,
			 including any incentive credits. All restricted wagering credits and
			 unrestricted funds that have a possible expiration shall be maintained
			 separately; and
(k) The current
			 status of the sports wagering account (for example, active, dormant, closed,
			 suspended, and excluded).
(6) The following information maintained as
			 part of the electronic patron file shall be stored in encrypted form:
(a) The account holder's government
			 identification number, or portion thereof;
(b) The account holder's previous and current
			 password, PIN, or other authentication credential; and
(c) The account holder's previous and current
			 debit instrument number, credit or debit card number, bank account number or
			 other personal financial information.
(7) A licensee may allow the account holder
			 to update authentication credentials, registration information and the account
			 used for financial transactions. A multi-factor authentication process shall be
			 employed for these purposes.