Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.3 - Internal controls

Current through Register Vol. 54, No. 28, July 13, 2024
(a) At least 90
				  days prior to commencing sports wagering under this subpart, a sports wagering
				  certificate holder or sports wagering operator shall submit to the Board for
				  approval internal controls for all aspects of sports wagering, including retail
				  sportsbooks, interactive sportsbook operations through a web site or mobile
				  application and nonprimary location sportsbook operations, prior to
				  implementation and any time a change is made thereafter. The internal controls
				  shall include detailed procedures for system security, operations, accounting,
				  and other information as required by the Board.
(b) Notwithstanding subsection (a), the
				  procedures and controls may be implemented by a sports wagering certificate
				  holder or sports wagering operator upon the filing of the procedures and
				  controls with the Board and written approval to commence operations by the
				  Executive Director. Each procedure or control submission shall contain both
				  narrative and diagrammatic representations of the system to be utilized and
				  shall include the following:
(1) Provide for
				  reliable accounting controls, including the standardization of forms and
				  definition of terms to be utilized in the retail sports wagering and
				  interactive or mobile sports wagering operations.
(2) Procedures, forms and, where appropriate,
				  details as to the reconciliation of assets and documents contained in the
				  retail sports wagering cashier drawers. These procedures shall provide for the
				  reporting of any overage or shortage.
(3) Job descriptions and the system of
				  personnel and chain of command, establishing a diversity of responsibility
				  among employees engaged in sports wagering operations, including employees of a
				  sports wagering operator and identifying primary and secondary management and
				  supervisory positions for areas of responsibility.
(4) Procedures for the registration of
				  players and establishment of sports wagering accounts, including a procedure
				  for authenticating the age, identity and physical address of an applicant for a
				  sports wagering account and whether the applicant is a person prohibited from
				  establishing or maintaining an account under applicable laws or regulations.
(5) Procedures for terminating a
				  registered player's sports wagering account and the return of any funds
				  remaining in the sports wagering account to the registered player.
(6) Procedures for suspending or terminating
				  a dormant sports wagering account and the return of any funds remaining in the
				  dormant sports wagering account to the registered player.
(7) Procedures for the logging in and
				  authentication of a registered player to enable the player to commence sports
				  wagering and the logging off of the registered player when the registered
				  player has completed play, including a procedure to automatically log a
				  registered player out of the registered player's sports wagering account after
				  a specified period of inactivity.
(8) Procedures for the crediting and debiting
				  of a registered player's sports wagering account.
(9) Procedures for cashing checks, receiving
				  electronic negotiable instruments and for redeeming cash equivalents.
(10) Procedures for withdrawing funds from a
				  sports wagering account by the registered player.
(11) Procedures for the protection of a
				  registered player's funds, including the segregation of a registered player's
				  funds from operating funds of the sports wagering certificate holder or sports
				  wagering operator.
(12) Procedures
				  for recording transactions pertaining to sports wagering.
(13) Procedures for the security and sharing
				  of personal identifiable information of a registered player, funds in a sports
				  wagering account and other information as required by the Board. The procedures
				  shall include the means by which a sports wagering certificate holder or sports
				  wagering operator will provide notice to a registered player related to the
				  sharing of personal identifiable information.
(14) Procedures and security for the
				  calculation and recordation of revenue.
(15) Procedures for the security of the
				  sports wagering platform, sports wagering interactive system, sports wagering
				  devices and associated equipment.
(16) Procedures and security standards as to
				  receipt, handling and storage of sports wagering devices and associated
				  equipment.
(17) Procedures and
				  security standards to protect and respond to suspected or actual hacking or
				  tampering by any person with the sports wagering certificate holder's or sports
				  wagering operator's interactive sports wagering web site, mobile application
				  and sports wagering devices and associated equipment.
(18) Procedures to verify each registered
				  player's physical location each time a registered player logs into his or her
				  sports wagering account and at appropriate intervals thereafter as determined
				  by the Board.
(19) Procedures and
				  appropriate measures implemented to deter, detect and, to the extent possible,
				  to prevent cheating, including collusion and use of cheating devices, including
				  the use of software programs that make wagers according to
				  algorithms.
(20) Procedures to
				  govern emergencies, including suspected or actual cyber-attacks, hacking or
				  tampering with the sports wagering certificate holder's or sport wagering
				  operator's interactive sports wagering platform, interactive sports wagering
				  web site or mobile application and sports wagering devices and associated
				  equipment. The procedures shall include the process for the reconciliation or
				  repayment of a registered player's sports wagering account.
(21) If any athlete or person who holds a
				  position of authority or influence sufficient to exert influence over the
				  participants in sporting event, as fully described in §
											1401a.7(c) 
				  (relating to prohibited and restricted sports wagering activities) of this
				  subpart, has less than 10% direct or indirect ownership interest in or control
				  of a sports wagering certificate holder or a sports wagering operator,
				  procedures for the following shall be included:
(i) Providing notice to the Board of the
				  identity of the owner, and if known, the ownership interest in the sports
				  wagering certificate holder or sports wagering operator.
(ii) Implementing appropriate measures to
				  prevent an athlete or a person from participating in the management or
				  operations of sports wagering activities of a sports wagering certificate
				  holder or a sports wagering operator.
(iii) Obtaining a certification from the
				  owner acknowledging that the less than 10% direct or indirect owner is not
				  permitted to be a customer of the sports wagering certificate holder or
				  operator under §
												1401a.7(b)(2),
				  not permitted participate in the management or operations of the sports
				  wagering certificate holder or sports wagering operator, and in the instance of
				  an owner of an athletic team, not permitted to engage in sports wagering
				  activity on any team in the league as that in which he has an ownership
				  interest.