205 C.M.R. 238.14 – Risk Management Framework

(1) A Sports Wagering Operator must implement risk management procedures. These procedures may be provided in-house by a unit capable of performing this function with appropriate segregation of functions and reporting duties, or by a licensed Sports Wagering Vendor.
(2) A system of Internal Controls submitted by a Sports Wagering Operator in accordance with 205 CMR 238.02 shall contain a description of the risk management framework, including, but not limited to:
1. (a) Automated and manual risk management procedures;
2. (b) Employee management, including access controls and segregation of duties;
3. (c) Information regarding identifying and reporting fraud and suspicious conduct;
4. (d) Controls ensuring regulatory compliance;
5. (e) Description of Anti-Money Laundering (AML) compliance standards;
6. (f) Description of all software applications that comprise the Sports Wagering Equipment;
7. (g) Description of all types of Sports Wagers available to be offered by the Sports Wagering Operator;
8. (h) Description of the method to prevent past-post Wagers from being placed;
9. (i) Description of all integrated third-party platforms; and
10. (j) Any other information which may be required by the Commission.
(3) A Sports Wagering Operator shall file with the Commission, in a manner and form approved by the Commission, a report of any error that occurs in offering an event or Wager or if an unapproved Sporting Event or Wager category is offered to the public.