Statutes, codes, and regulations
Delaware Administrative Code
Title 10 - Charitable Gaming, Lottery, and Fantasy SportsOffice of the State Lottery
Internet Lottery Rules and Regulations
Section 206-16.0 - Accounting and Distribution Procedures

10 Del. Admin. Code § 206-16.0

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Current through Reigster Vol. 28, No. 6, December 1, 2024
Section 206-16.0 - Accounting and Distribution Procedures

Maintenance of Accounts

16.1 The technology provider will provide an accounting mechanism for the Internet lottery system as a whole, which mechanism shall achieve compliance with the standards of integrity, security and control established by the agency.
16.2 The agency or its designated agents shall have the right to audit the books and records including without limitation tax returns and IRS withholding and reporting records of any agent and each technology provider. To such end, the agents and technology providers shall fully cooperate with whoever undertakes the audit.
16.3 The agency will maintain a separate bank account to hold funds deposited into registered player's accounts.
16.4 All proceeds, net of proceeds returned to players, from the operation of the Internet lottery shall be electronically transferred no less than monthly at the discretion of the Lottery Director into designated accounts held by the licensed Internet lottery agents. To the extent, if any, that such remission cannot be achieved due to the unavailability of bank services, the remission shall be made on the first day that such services are available. Agents shall furnish to the agency all information and bank authorizations required to facilitate the timely transfer of monies from the State lottery fund. Agents shall provide the agency 30 days advance notice of any proposed account changes in order to assure the uninterrupted electronic transfer of funds.
16.5 Agents shall follow all prescribed Federal requirements for tax withholding, recording and reporting, including, without limitation, those requirements relating to the transfer of funds withheld from player winnings from the agents to the tax authorities.
16.6 Any discrepancy regarding settlement of accounts will be resolved by the Director as he or she deems appropriate.

Anti-money Laundering

16.7 Each agent and technology provider shall maintain complete, accurate, and supporting records sufficient to comply with all federal financial record keeping requirements of Title 31 Code of Federal Regulations, part 103.

Submission of Reports to Lottery

16.8 Each agent and technology provider shall submit to the Director such financial and operating information as the Director shall require from time to time at such times and in such format as the Director shall specify. For purposes of submission of this and other information, each agent shall have a computer on the premises which is suitable for this purpose.
16.8.1 Each agent, unless specifically exempted by the Agency, shall file weekly, monthly, quarterly, and annual reports and statistical data in a format specified by the Director. The data may be used by the agency to evaluate the financial position and operating performance of individual Internet lottery agents and to compile information regarding the performance and trends of the Internet lottery industry in the State of Delaware.
16.8.2 Each agent, unless specifically exempted by the Agency, shall at its own expense, cause its annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant licensed to practice in the State of Delaware.
16.8.3 The annual financial statement shall be prepared on a comparative basis for the current and prior fiscal year, and shall present the Internet lottery agent's present financial position and results of operations in conformity with generally accepted accounting principles.
16.8.4 The agency may periodically prescribe a set of standard reporting forms and instructions to be used by each Internet lottery agent for filing the weekly, monthly, and quarterly reports.
16.8.5 Each Internet lottery agent and technology provider, unless specifically exempted by the Agency, shall conduct its Internet lottery operations to meet the minimum requirements set forth in the Agency's Minimum Internal Control Standards (MICS).

10 Del. Admin. Code § 206-16.0

17 DE Reg. 317 (9/1/2013) (Final)