Section 1900.1520  Minimum Standards for Internal Control Systems

 

a)         The internal control system shall include a detailed narrative description of the master sports wagering licensee's sports wagering, administrative and accounting procedures, including without limitation separate sections comprehensively describing the specific procedures that the licensee will follow in meeting the requirements of Section 1900.1500.  The procedures shall discuss at a minimum, when applicable, the topics listed in subsection (c).

 

b)         The Administrator shall develop and publish, with input from master sports wagering licensees, Minimum Internal Control Standards (MICS) necessary to address the requirements in Section 1900.1500.  All internal control systems shall address all topics covered in the MICS.

 

c)         The MICS shall cover, without limitation, the following topics:

 

1)         Submission, Approval, and Amendment of the Internal Control System;

 

2)         General and Administrative;

 

3)         Access Control

 

A)        General – Location and Access;

 

B)        Key Procedures; and

 

C)        Data Access;

 

4)         Conduct of Wagering, including:

 

A)        Wagering and Payout Procedures; and

 

B)        Statistics;

 

5)         Rules of Wagering, including:

 

A)        What May be Wagered Upon;

 

B)        Types of Wagers Offered; and

 

C)        Establishing Lines or Payout Odds;

 

6)         Wagering Equipment, including:

 

A)        Access and Computer Monitoring Procedures;

 

B)        Point of Sale Devices;

 

C)        Kiosks;

 

D)        Location, Conversion and Movement of Kiosks; and

 

E)        Suspected Defective or Malfunctioning Equipment;

 

7)         Kiosk Fill and Counts, including:

 

A)        Transportation of Fills/Collections; and

 

B)        Counting and Recording Drops;

 

8)         Cashiering, including:

 

A)        Fills and Payouts;

 

B)        Cage Accountability; and

 

C)        Main Bank/Vault Accountability;

 

9)         Internet Wagering, including:

 

A)        Sports Wagering Accounts;

 

B)        Identity Verification;

 

C)        Internet Wagering System Description, including:

 

i)          Structural Overview;

 

ii)         Security and Integrity; and

 

iii)        Upgrade and Improvement Plans;

 

D)        Identity Protection;

 

E)        Fraud Prevention;

 

F)         Contested Transaction Procedures; and

 

G)        Patron Terms and Conditions;

 

10)        Accounting, including:

 

A)        Accounting Records;

 

B)        Controls over Locked Accounting Box;

 

C)        Procedures for Monitoring and Reviewing Wagering Operations; and

 

D)        Monthly Reporting Requirements;

 

11)        Suspicious Activity Reporting, including:

 

A)        Financial Activity; and

 

B)        Wagering Activity;

 

12)        Internal Audit, including:

 

A)        Required Internal Audits; and

 

B)        Reporting Guidelines;

 

13)       Surveillance, including:

 

A)        Surveillance Room Access and Control; and

 

B)        Surveillance System Description;

 

14)        Security, including:

 

A)        Case Number System/Incident Reports;

 

B)        Lost Badges/Temporary Badges;

 

C)        Power Failure/Camera Outage;

 

D)        Enforcement of Wagering Restrictions/21 Years Old Minimum; and

 

E)        Handling of Emergencies.