(a)

1. (1) Each casino licensee that accepts wagering communications shall establish and implement pursuant to 23 CAR § 358-601 et seq., a system of internal control for such transactions, and comply with both its system of internal control and the minimum internal control standards contained in this part.
2. (2) Each licensee that accepts wagering communications shall comply with the internal control procedures contained in this part.

(b)

1. (1) Each book shall prepare a written description of its house rules and procedures for wagering communications, and shall make a copy available to each patron for whom a wagering account is established.
2. (2) Prior to adopting or amending such house rules, a book shall submit such rules to the Arkansas Racing Commission for approval.

(c)

1. (1) A race book licensed to accept off-track pari-mutuel horse race wagers may establish wagering accounts for residents of Arkansas and residents of any state or foreign jurisdiction in accordance with this part.
2. (2) Patrons having established a wagering account may place off-track pari-mutuel horse race wagers from within Arkansas or from other states or foreign jurisdictions in which pari-mutuel horse race wagering is legal provided that the state or foreign jurisdiction does not otherwise restrict wagering on accounts located outside its borders.

3. (3) Before a race book accepts a wagering communication, or a call center accepts a wagering instruction, on an off-track pari-mutuel horse race, the following must occur:

   1. (A) A race book must register the patron and create a wagering account for the patron in accordance with this part, except that a race book may confirm the patron’s identity remotely if the wagering account is used solely to place off-track pari-mutuel horse race wagers;
   2. (B)

(i) A race book shall confirm that the state or foreign jurisdiction in which the patron resides is a jurisdiction in which off-track pari-mutuel horse race wagering is legal, and that the state or foreign jurisdiction does not otherwise restrict wagering on accounts located outside its borders, prior to the book accepting wagers on such accounts.

1. (ii) The race book shall maintain a record of such confirmation;

   1. (C) The race book must have the patron affirm that the patron has been informed and acknowledges that, with regard to off-track pari-mutuel horse race wagers, the book may accept such wagers from patrons only when the patron is located within Arkansas or other states or foreign jurisdictions in which pari-mutuel horse race wagering is legal and such wagering on accounts located outside its borders is not otherwise restricted;

   2. (D) Notwithstanding the requirements of this part, for a business entity patron, the patron must provide an employee of the book, and the book must record and maintain, the following information before the book registers and creates a wagering account for the patron:

      1. (i) The name, residential address, copy of a valid photo identification which evidences that the person is at least twenty-one (21) years of age, and Social Security number or individual taxpayer identification number, of each of the business entity’s equity owners, holders of indebtedness, directors, officers, managers, and partners, anyone entitled to payments based on the profits or revenues, and any designated individuals;
      2. (ii) The business entity’s formation documents and all filings with the Secretary of State;
      3. (iii) Any other documentation or information the commission may require; and
      4. (iv) Any other documentation or information the race book or sports pool may require; and

   3. (E)

      1. (i) The employee must record such information.
      2. (ii) Unless a book has otherwise been granted approval by the commission pursuant to this part, the information required by this subsection shall be provided by the patron to an employee of the book at the premises of the book.
      3. (d)
2. (1) In addition to the posting of the wager in the off-track pari-mutuel race system, all wagering communications shall be electronically recorded and retained for a period of sixty (60) days.
3. (2) The method of recording the wager must be approved by the commission.
4. (3) Such recordings must be made immediately available to any commission agent upon request.

(e)

1. (1) All wagering account applications or amendments thereto for active accounts must be retained by the book.
2. (2) All wagering account applications or amendments thereto for rejected applications shall be retained by the book for no less than one (1) year following the rejection of the related application.
3. (3) All wagering account applications or amendments thereto for closed accounts shall be retained by the book for no less than one (1) year following the closure of the related wagering account.

(f) A race book shall not allow the use of a wagering account established pursuant to this section for forms of wagering other than off-track pari-mutuel horse race wagering unless:

1. (1) The establishment and use of the wagering account otherwise meets all of the requirements of this part; and
2. (2) Administrative approval has been granted by the commission.