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 20:18:35:39 - Internal control procedures audit

Current through Register Vol. 51, page 10, July 15, 2024
Licensees shall have internal control procedures
				  independently audited at least once every two years with the results documented
				  in a written report, which shall be maintained and available to the commission.
				  This requirement includes internal control procedures conducted by a sports
				  wagering services provider on behalf of the licensee. The following apply to
				  independent audits:
(1) Independent
				audits may be conducted by the commission, or a commission approved third-party
				auditor. The commission may, in its discretion, allow for an internal audit
				department within the licensee or parent company of the licensee, which is
				independent of the sports wagering operation, to serve as a third-party auditor
				for use in completing this audit;
(2) The commission, or third-party auditor
				shall be responsible for auditing the licensee's compliance with SDCL chapter
				42-7 B and chapter 20:18:35, including those adopted in appendix A of GLI-33,
				the internal control system, and any other applicable rules and
				regulations;
(3) Documentation,
				including checklist, programs, reports, corrective actions, and other items,
				must be prepared to evidence all independent audit work performed as it relates
				to the requirements of this section, including all instances of
				noncompliance;
(4) Independent
				audit reports must include objectives, procedures and scope, findings and
				conclusions, and recommendations;
(5) Independent audit findings must be
				reported to management. Management shall respond to the independent audit
				findings and shall state the corrective measures to be taken to avoid
				recurrence of the audit exception. Such management responses must be included
				in the final independent audit report;
(6) Follow-up observation and examinations
				must verify that corrective action has been taken regarding all instances of
				noncompliance cited by the independent audits, or by the commission. The
				verification must be performed within six months following the date of
				notification; and
(7) Where
				approved by the commission, a licensee may leverage the results of prior audits
				conducted within the two-year period by the same third-party auditor in another
				sports wagering jurisdiction. Such leveraging must be noted in the audit
				report. This leveraging does not include any internal control procedures unique
				to the state, which require new audits.
General Authority:
SDCL
					 42-7B-7,
					 42-7B-11(13).
Law Implemented:
SDCL
					 42-7B-43,
					 42-7B-76.
GLI-33 Standards for Event Wagering Systems,
v1.1, May 14, 2019, Gaming Laboratories International, LLC. Copies may be
					 obtained without charge from Gaming Laboratories International, LLC, at 600
					 Airport Road, Lakewood, New Jersey, 08701 (732) 942-3999 and online at
					 Gaminglabs.com/gli-standards.