Procedures must be in place to ensure all financial transactions are conducted in accordance with federal regulations and the commission’s rules. To protect payment methods against fraudulent uses, the advance deposit wagering licensee shall:

1. (1) Ensure collection of sensitive information directly related to financial transactions must be limited to the information strictly needed for such transaction;
2. (2) Take adequate measures to protect any type of payment in the system from a fraudulent use;
3. (3) Verify that the payment processors ensure the protection of the account holder’s data, including any sensitive information given by the account holder, or transaction related data;
4. (4) Establish procedure for assuring a match of ownership between the payment type holder and the wagering account holder; and

5. (5) Generate all transactional records of wagering accounts. The data recorded must allow the licensee to trace a single financial transaction of an account holder from another transaction.

   All financial transactions must be reconciled with financial institutions and payment processors daily or as otherwise specified by the commission.

   Additional requirements for payment processors may be specified by the commission through internal control procedures.

Source: 48 SDR 14, effective August 22, 2021; 48 SDR 61, effective December 8, 2021 .

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

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

Prior versions effective: 2021-08-22.