N.J. Admin. Code § 13:69Q-1.8

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:69Q-1.8 - Internal controls; house rules

(a) Licensed wagering operators shall file with the Division internal controls for all aspects of fixed odds wagering operations prior to commencing operations. Such internal controls shall be maintained by the licensed wagering operator and shall be filed with the Division at least 72 hours prior to implementation or amendment.

(b) In the event of a failure of the fixed odds wagering system's ability to pay winning wagers, the licensee shall have internal controls detailing the method of paying winning wagers. The licensee 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.

(c) The internal controls shall address the following, at a minimum:

1. User access controls for all fixed odds wagering personnel;

2. Segregation of duties;

3. Automated and manual risk management procedures;

4. Procedures for identifying and reporting fraud and suspicious conduct;

5. Procedures to prevent wagering by patrons prohibited from wagering, such as self-excluded, not geographically authorized, or underage;

6. Description of anti-money laundering compliance standards including, but not limited to, filing of CTRs, SARs, and procedures for detecting structuring to avoid reporting requirements;

7. Description of all types of wagers available to be offered by the system;

8. Description of all integrated third-party systems;

9. Description of procedures for ensuring that fixed odds vendors are appropriately registered, if required; and

10. Description of procedures to be used by retail licensed wagering operators for telephone wagering.

(d) The internal controls shall detail the reconciliation of assets and documents contained in each ticket writer's drawer and in a kiosk.

(e) The internal controls shall detail the procedures to redeem lost tickets, which shall include a supervisor's approval and documentation of the:

1. Date and time of the redemption;

2. Employee responsible for redeeming the ticket or voucher;

3. Supervisor authorizing the redemption;

4. Patron identification;

5. Unique ticket or voucher identifier; and

6. Location of the redemption.

(f) The internal controls shall detail procedures to reprint tickets that fail to print at either a ticket station or kiosk. Such procedures shall include a requirement of supervisory authorization for the reprint.

(g) Licensed wagering operators shall adopt comprehensive house rules, which shall be approved by the Division that include the following, at a minimum:

1. Method for calculation and payment of winning wagers, including the method of reducing winnings due to scratches;

2. Description of the process for handling incorrectly posted events, odds, wagers, or results;

3. Effect of schedule changes;

4. Method of notifying patrons of odds or proposition changes;

5. Acceptance of wagers at other than posted terms;

6. Expiration of any winning ticket one year after the date of the event;

7. Method of contacting the operator for questions and complaints;

8. Description of prohibited participants, including those with insider knowledge;

9. A statement regarding the policy and methods for limiting the maximum amount that a patron can win on any particular wager; however, such policy will not preclude a patron from collecting a payout in excess of the purported amount if the system allows the patron to place a valid wager that pays more than the stated maximum amount;

10. Method of funding a fixed odds wager; and

11. Methods of redemption, including redemption by mail or other means, if permitted.

(h) The house rules, together with any other information the Division deems appropriate, shall be conspicuously displayed in the area where wagers are taken, posted on the operator's Internet website, and included in the terms and conditions of the account wagering system. Copies shall be made readily available to patrons.

N.J. Admin. Code § 13:69Q-1.8

Adopted by 53 N.J.R. 2081(a), effective 11/3/2021

Amended by 55 N.J.R. 1839(a), effective 8/21/2023