11 Va. Admin. Code § 5-70-140

Current through Register Vol. 41, No. 8, December 2, 2024

Section 11VAC5-70-140 - Reserve and insurance requirements

A. A permit holder shall maintain a reserve in the form of cash, cash equivalents, irrevocable letter of credit, or bond, or a combination thereof, in an amount approved by the director to cover the outstanding liability of the permit holder to players. A bond used by a permit holder to maintain any portion of its reserve shall comply with the bond requirements of 11VAC5-70-100. A permit holder may not remove, release, or withdraw funds from its reserves without the written approval of the director. Permit holders shall at all times also maintain cash reserves in amounts to be established by board regulation.

B. The amount in the reserve fund shall be at least $500,000 and equal or exceed the aggregate sum of:

1. Funds held by the permit holder in player accounts;

2. The total amount of funds accepted by the permit holder as wagers on sports events with outcomes that have not been determined; and

3. Money owed but unpaid by the permit holder to players on winning wagers.

C. All reserve funds shall be held with a financial institution federally insured by the FDIC and licensed to transact business in the Commonwealth of Virginia.

D. A permit holder shall calculate its reserve requirements each day and, if the permit holder determines its reserve is insufficient to cover the requirement of this subsection, it shall notify the director of the deficiency within 24 hours and identify the steps taken to remedy the deficiency.

E. Before its sports betting permit or renewal is issued, a permit holder shall provide the director with certificates of insurance from a company financially rated A or better by a nationally recognized rating agency and permitted to transact business in the Commonwealth of Virginia.

F. A permit holder shall maintain the following types and levels of insurance:

1. General commercial liability insurance in the amount of $5 million;

2. Errors and omissions insurance in the amount of $15 million; and

3. Such other types and amounts of insurance as the director requires.

11 Va. Admin. Code § 5-70-140

Derived from Virginia Register Volume 37, Issue 04, eff. 10/12/2020.

Statutory Authority: §§ 58.1-4007, 58.1-4015.1, and 58.1-4030 through 58.1-4047 of the Code of Virginia.