S.D. Admin. R. 20:18:36.02

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:18:36.02 - Authorization to conduct advance deposit wagering

An advance deposit wagering licensee shall receive specific authorization from the commission to conduct advance deposit wagering prior to conducting advance deposit wagering. Any entity authorized to conduct advance deposit wagering shall comply with all applicable federal, state, local, and commission requirements to be eligible for authorization.

The licensee shall submit internal controls, approved by the executive secretary, that include:

(1) Specific procedures and technology partners to fulfill the requirements set forth in this chapter;

(2) Commercially available and demonstrable standards to confirm that an individual attempting to create a wagering account is not a prohibited person;

(3) A process to close out inactive accounts;

(4) A method for verifying location detection procedures to establish account holders' geographic locations;

(5) Detailed procedures for making adjustments to a wagering account;

(6) Providing a method for an account holder to close out an account;

(7) Detailed description how an account holder will be refunded after the closure of an account;

(8) Detailed procedures for maintaining the security of personal identifying information of account holders;

(9) Method for securely issuing, modifying, and resetting an account holder's authentication credential;

(10) Methods of account holder notification when changes are made to any account used for financial transactions or to registration information or when financial transactions are made unless other notification preferences are established by the account holder;

(11) Methods of account holder notification including any authentication credential modification via electronic or regular mail, text message, or other manner approved by the executive secretary. Such methods must include:

(i) Proof of identity, if in person;

(ii) The correct response to two or more challenge questions;

(iii) Strong authentication; or

(iv) Multi-factor authentication; and

(12) Processes to ensure funds in a licensee's account are held in trust for the player in a special purpose segregated account, and that make clear the funds do not belong to the licensee and are not available to creditors other than the account holder whose funds are being held.

S.D. Admin. R. 20:18:36.02

48 SDR 014, effective 8/22/2021

General Authority: SDCL 42-7B-7, 42-7B-11(13).

Law Implemented: SDCL 42-7B-2.1(1), 42-7B-43.