1. (a) The Operator shall implement and maintain an effective risk management framework. This framework may be provided in-house by a unit capable of performing this function with appropriate segregation of functions and reporting duties, or by a Supplier.

2. (b) The Internal Controls shall contain a description of the risk management framework, including but not limited to:

   1. (1) automated and manual risk management procedures;
   2. (2) employee management, including access controls and segregation of duties;
   3. (3) information regarding identifying and reporting fraud, suspicious conduct, or Suspicious or Illegal Wagering Activity;
   4. (4) controls ensuring regulatory compliance;
   5. (5) description of anti-money laundering compliance standards;
   6. (6) description of software applications that comprise the system used for Wagering;
   7. (7) description of types of Wagers available to be offered by the Operator;
   8. (8) description of the procedures to prevent past posting of Wagers;
   9. (9) description of the procedures to cancel or void a Wager;
   10. (10) description of the procedures to prevent individuals from placing Wagers as agents or proxies for other Individuals or Persons;
   11. (11) description of integrated third-party platforms; and
   12. (12) other information that may be required by the Commission.

History Note: Authority G.S. 18C-114(a)(14);
Previously adopted as Rule 1D-014;
Eff. January 8, 2024;
Readopted Eff. March 27, 2024.