Section 68 IAC 27-5-2 - Internal controlsAuthority: IC 4-38-3-1
Affected: IC 4-38-11; IC 5-14
Sec. 2.
Prior to beginning sports wagering operations, a sports wagering operator must submit for approval under 68 IAC 11 internal controls for the following:
(1) In the event of a failure of the sports wagering system's ability to pay winning wagers, the sports wagering operator shall have internal controls detailing the method of paying winning wagers. The sports wagering operator shall also file an incident report for each system failure and document the date, time, and reason for the failure along with the date and time the system is restored with the division.(2) The internal controls shall address the following items regarding the sports wagering system and online sports wagering systems, at a minimum: (A) In the event of a failure of the sports wagering system's ability to pay winning wagers, the sports wagering operator shall have internal controls detailing the method of paying winning wagers. The sports wagering operator shall also file an incident report for each system failure and document the date, time, and reason for the failure along with the date and time the system is restored with the division.(B) User access controls for all sports wagering personnel.(C) Segregation of duties.(D) Automated and manual risk management procedures.(E) Procedures for identifying and reporting fraud and suspicious conduct including identifying unusual betting activity and reporting such activity to an independent integrity monitoring provider.(F) Procedures to prevent wagering by prohibited sports wagering participants. However, an individual that has enrolled for a statewide Internet self-restriction is only restricted from placing wagers online or via mobile device.(G) Procedures for sports wagering operator-imposed exclusion of patrons, including: (i) providing a notification containing operator-imposed exclusion status and general instructions for resolution;(ii) ensuring that immediately upon executing the operator-imposed exclusion order, no new wagers or deposits are accepted from the patron, until such time as the operator-imposed exclusion has been revoked; and(iii) ensuring that the patron is not prevented from withdrawing any or all of the patron's account balance, provided that the sports wagering operator acknowledges that the funds have cleared, and that the reason or reasons for exclusion would not prohibit a withdrawal.(H) Description of anti-money laundering compliance standards, which shall include limitations placed on anonymous wagering at the sports wagering kiosks.(I) Process for submitting or receiving approval of all types of wagers available to be offered by the system.(J) Description of process for accepting wagers and issuing payouts, plus any additional controls for accepting wagers and issuing payouts in excess of ten thousand dollars ($10,000).(K) Description of process for accepting multiple wagers from one (1) patron in a twenty-four (24) hour cycle, including process to identify patron structuring of wagers to circumvent recording and reporting requirements.(L) For sports wagering conducted by a vendor, a description of how revenue will be reported to the certificate of authority holder and how the certificate of authority holder will remit taxes as required by IC 4-38.(M) Detailed procedures for reconciliation of assets and documents contained in a sports wagering lounge cashier's drawer, sports wagering kiosks, and online sports wagering, which shall include the drop, fill, and count procedures for sports wagering kiosks.(N) Procedures for cashing winning tickets at the cage after the sports wagering lounge has closed, if applicable.(O) Procedures for accepting value game chips for sports wagers, if applicable.(P) Procedures for issuance and acceptance of promotional funds for sports wagering.(Q) Description of all integrated third-party systems.(R) Identifying and restricting prohibited sports wagering participants. However, an individual that has enrolled for a statewide Internet self-restriction is restricted only from placing wagers online or via mobile device.(S) Instituting a process to close out dormant accounts.(T) Detailed procedures for making adjustments to a patron's account, providing a method for a patron to close out an account, and detail how a patron will be refunded after the closure of an account.(U) Detailed procedure for W-2G issuance when triggered.(V) If the sports wagering system allows online wagering, method for verifying geolocation systems to establish a patron's geographic location.(W) Maintaining the security of identity and financial information of patrons.(X) Withholding winnings from delinquent child support obligors in accordance with IC 4-38-11, including a plan for complying with IC 4-38-11 if the sports wagering operator allows the redemption of tickets via mail.(Y) Detailed problem gambling program procedures.(Z) Method for securely implementing the statewide Internet self-restriction program.(AA) Method for securely issuing, modifying, and resetting a patron's account password, personal identification number (PIN), or other approved security feature, when applicable.(BB) Methods of patron notification, including any password or security modification via electronic mail or regular mail, text message, or other manner approved by the executive director or the executive director's designee. Such methods shall include at a minimum: (i) proof of identity, if in person;(ii) the correct response to two (2) or more challenge questions; or(iii) strong authentication.(CC) Procedures for receiving, investigating, and responding to all patron complaints and submitting any unresolved patron complaint reports to the division.(DD) Detailing the location of the sports wagering servers, including any third party remote location servers, and what controls will be in place to ensure security of the sports wagering servers.(EE) Terms and conditions for sports wagering shall be included as an appendix.(FF) Description of the process for line setting and line moving.(GG) If allowed, method of redeeming lost tickets.(HH) Method by which the sports wagering operator will identify and cancel wagers in accordance with IC 4-38, including defining "obvious error".(II) Method for deploying changes and updates to the sports wagering system, including notification to the commission.(JJ) Any other internal control deemed necessary by the executive director or the executive director's designee to ensure the integrity of sports wagering.(3) The sports wagering operator shall stamp or otherwise mark each page of the internal control procedures submitted to the commission with the word "CONFIDENTIAL" if the material submitted is not subject to disclosure under IC 4-38 or IC 5-14.Indiana Gaming Commission; 68 IAC 27-5-2; filed 6/25/2021, 2:59 p.m.: 20210721-IR-068200420FRA