10 Del. Admin. Code § 203-8.0

Current through Reigster Vol. 28, No. 6, December 1, 2024

Section 203-8.0 - Accounting and Distribution Procedures; Forms, Records and Documents

8.1 The central system provider will provide an accounting mechanism for the video lottery system as a whole, which mechanism shall achieve compliance with the standards of integrity, security and control established by the agency.

8.2 Each agent and service company 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.

8.2.1 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 video lottery agents and to compile information regarding the performance and trends of the table game and video lottery industry in the State of Delaware.

8.2.2 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.

8.2.3 The annual financial statement shall be prepared on a comparative basis for the current and prior fiscal year, and shall present the video lottery agent's present financial position and results of operations in conformity with generally accepted accounting principles.

8.2.4 The agency may periodically prescribe a set of standard reporting forms and instructions to be used by each video lottery agent for filing the weekly, monthly, and quarterly reports.

8.2.5 Each video lottery agent and service company, unless specifically exempted by the agency, shall conduct its operations in accordance with the Internal Control Submission approved by the Director and to meet the minimum requirements set forth in the agency's Minimum Internal Control Standards (MICS).

8.3 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 service company. To such end, the agents and service companies shall fully cooperate with whomever undertakes the audit.

8.4 The agency shall provide licensed service companies with the protocol documentation data necessary to enable the respective video lottery machines to communicate with the agency's central computer when transmitting the auditing program information and controls approved by the agency.

8.5 The net video lottery game proceeds and gross table game revenue of the agent's operations shall be remitted daily or weekly to the agency at the discretion of the Lottery Director through the electronic transfer of funds to an EFT account segregated and held in trust for the agency. To the extent, if any, that such daily or weekly 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 to the State lottery fund. Agents shall provide the agency thirty (30) days advance notice of any proposed account changes in order to assure the uninterrupted electronic transfer of funds.

8.6 The agency is not responsible for resolving discrepancies which are differences between actual money collected and the amount shown on the accounting meters or billing statement. Further, the agency is not responsible for the loss or theft of money prior to its deposit in the agency's account in the bank.

8.7 Agents shall comply with 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.

8.8 Any discrepancy regarding settlement of accounts will be resolved by the Director as he or she deems appropriate.

8.9 Each agent shall maintain complete, accurate, and legible records of all transactions pertaining to revenue and gaming activities. Each agent shall maintain detailed, supporting, subsidiary records sufficient to meet the following:

8.9.1 Individual and statistical game records to reflect statistical drop, statistical win, and the percentage of statistical win to statistical drop by each table game, and to reflect statistical drop, statistical win, and the percentage of statistical win to statistical drop for each type of table game, by day, cumulative month-to-date and year-to-date, and individual and statistical game records reflecting similar information for all other games;

8.9.2 Records of all patron counter checks initially accepted by the agent, deposited by the agent, returned to the agent as "uncollected," and ultimately written-off as uncollectible;

8.9.3 Records supporting the accumulation of the costs and number of persons, by category of service, for regulated complimentary services;

8.9.4 Records which identify the purchase, receipt, and destruction of gaming chips and plaques.

8.9.5 Records to comply with all federal financial record keeping requirements of Title 31 Code of Federal Regulations, part 103; and

8.9.6 All records provided for in the MICS and the approved system of internal accounting controls as required.

8.10 If the agent fails to maintain the records used by it to calculate the gross revenue from the operation of table games, the agency may compute and determine the amount upon the basis of an audit conducted by the agency using available information.

8.10.1 For table games, gross revenue means the total dollar amount that is won by the agent through play at live table games as defined in Section 2 of these regulations

8.10.2 For each card game and any other game in which the agent is not a party to a wager, gross revenue equals all money received by the operation as compensation for conducting the game.

8.11 All information required to be placed on any form, record, or document and in stored data shall be recorded on such form, record, or document and in stored data in ink or other permanent form. Whenever duplicate or triplicate copies are required of a form, record, or document the name of the recipient receiving a copy shall be preprinted on the bottom of that copy so as to differentiate one from the other.

8.12 Serial numbers on manual forms shall be printed on the form by the manufacturer and computerized forms shall be sequentially numbered by the computer.

8.13 The accounting department shall be responsible for receipt, control and issuance of all pre-numbered forms and appropriate documentation shall be maintained to account for the forms. Whenever serial numbers are required to be accounted for or copies of forms are required to be compared for agreement and exceptions are noted, such exceptions shall be reported immediately in writing to management and the agency for investigation.

8.14 The agent shall establish an inventory system of retained documents that facilitates their preservation, includes an indexing system, makes them readily available for review or copying by regulatory authorities and other authorized individuals or groups, and provides procedures for destruction.

10 Del. Admin. Code § 203-8.0