Virginia Administrative Code › Title 11 - GAMING › Agency 5 - VIRGINIA LOTTERY BOARD › Chapter 70 - SPORTS BETTING › Section 11VAC5-70-160 - Audit, financial, recordkeeping, and banking requirements

Current through Register Vol. 40, No. 24, July 15, 2024
A. A permit holder
				shall engage a certified public accountant to prepare in accordance with
				generally accepted accounting principles an annual audit of the financial
				transactions and condition of the permit holder's sports betting operation and
				submit that audit to the director.
B. A permit holder shall establish and
				maintain books, records, and documents, including electronic storage media, in
				accordance with generally accepted accounting principles and practices that
				sufficiently and properly reflect all revenues and expenditures of funds
				associated with its sports betting operation.
C. A permit holder shall retain all records,
				financial records, supporting documents, statistical records, and any other
				documents, including electronic storage media, pertinent to its sports betting
				operation for at least five years from their creation.
D. Books and records pertaining to a permit
				holder's sports betting operation shall be subject to inspection, review, and
				audit by the director or department staff at any time within the sole
				discretion of the director.
E. A
				permit holder shall deliver all data requested by the director either by report
				or data file in the form and frequency required by the director while achieving
				compliance with the standards of integrity, security, and control.
F. A permit holder shall generate reports
				necessary to record all the components of the adjusted gross revenue
				calculation over a specific period as required by the director.
G. All requested data shall be made available
				in the report formats and database formats required by the director.
H. All required reports shall be generated by
				the permit holder even if the period specified contains no data to be
				presented, in which case the report shall indicate all required information and
				contain an indication of "No Activity" or similar message.
I. A permit holder shall generate reports for
				each day of operation in order to calculate the adjusted gross revenue and to
				ensure the integrity of its sports betting platform.
J. A permit holder shall maintain an
				operating account with a financial institution that is federally insured by the
				FDIC and licensed to transact business in the Commonwealth of
				Virginia.
K. A permit holder shall
				maintain an escrow account with a financial institution federally insured by
				the FDIC and licensed to transact business in the Commonwealth of Virginia,
				into which shall be deposited all taxes and fees due to be transferred to the
				department pursuant to procedures to be established by the director. The
				department shall be designated as sole beneficiary on the account. This escrow
				account shall be separate from all other operating accounts of the permit
				holder to ensure the security of funds due to the Commonwealth of
				Virginia.
Statutory Authority: §§
											58.1-4007,
					 58.1-4015.1,
					 and
					 58.1-4030 through
					 58.1-4047
					 of the Code of Virginia.