South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:18 - GAMING COMMISSION - DEADWOOD GAMBLING › Chapter 20:18:35 - Requirements of sports wagering operations › Section 20:18:35:02 - Internal control procedures

Current through Register Vol. 51, page 10, July 15, 2024
Either the licensee or sports wagering services provider or
				  both shall submit a description of internal controls to the commission. The
				  submission shall be made at least 30 days before sports wagering operations are
				  to commence. All internal controls must be approved by the executive secretary
				  prior to commencement of sports wagering operations. Either the licensee or
				  sports wagering services provider, or both, shall submit to the commission any
				  changes to the internal controls previously approved at least 15 days before
				  the changes are to become effective unless otherwise directed by the executive
				  secretary. Each licensee and sports wagering services provider and their
				  employees shall be responsible for complying with all approved internal
				  controls.
The submission describing the internal controls must include
				  controls and reasonable methods for the following.
(1) Automated and manual risk management
				procedures;
(2) Employee
				management, including user access controls for all sports wagering personnel
				and segregation of duties;
(3)
				Identifying and reporting fraud and suspicious conduct, including identifying
				unusual wagering activity and reporting such activity to an independent
				integrity monitoring provider;
(4)
				Ensuring regulatory compliance;
(5)
				Anti-money laundering compliance standards;
(6) Accepting wagers and issuing pay outs,
				plus any additional controls for issuing pay outs in excess of
				$10,000;
(7) Accepting multiple
				wagers from one patron in a 24-hour cycle, including a process to identify
				patron structuring of wagers to circumvent recording and reporting
				requirements;
(8) All software
				applications that comprise the sports wagering system;
(9) Submitting and receiving approval of all
				types of wagers available to be offered by the system;
(10) Accounting for all integrated
				third-party systems;
(11)
				Reconciling assets and documents contained in a sports wagering area cashier's
				drawer and in sports wagering kiosks, including the drop and count procedures
				for sports wagering kiosks;
(12)
				Cashing winning tickets at the cage after the sports wagering area has closed,
				if applicable;
(13) Accepting value
				game chips for sports bets, if applicable;
(14) Issuance and acceptance of promotional
				funds and free bets for sports wagering;
(15) Identifying and preventing wagering by
				prohibited persons;
(16) Preventing
				past-post wagers from being placed;
(17) Paying winning wagers, in the event of a
				failure of the sports wagering system's ability to pay winning
				wagers;
(18) Filing an incident
				report with the commission for each sports wagering system failure and
				documenting the date, time, and reason for the failure along with the date and
				time the system is restored;
(19)
				Rejecting or refusing bets that which exceed the value set forth in SDCL
				42-7B-14; and
(20) Any other information which may be
				required by the commission.
General Authority:
SDCL
					 42-7B-7,
					 42-7B-11(13).
Law Implemented:
SDCL
					 42-7B-2.1(1),
					 42-7B-43.