1. A. A permit holder and its sports betting platform supplier shall develop and maintain internal control standards that meet or exceed industry standards as approved by the director.

2. B. A permit holder's internal control standards shall address at a minimum:

   1. 1. Safeguarding assets and revenues;
   2. 2. Safeguarding player accounts;
   3. 3. Requirements for internal and independent audits of the permit holder and its sports betting platform supplier;
   4. 4. User access controls for all personnel;
   5. 5. Segregation of duties among personnel;
   6. 6. Automated and manual risk management procedures;
   7. 7. Procedures for identifying and reporting fraud, cheating, and suspicious or unusual wagering activity;
   8. 8. Procedures for identifying and preventing sports betting by prohibited individuals;
   9. 9. Description of its AML compliance standards;
   10. 10. Description of all types of wagers available to be offered by the permit holder;
   11. 11. Description of all integrated third-party hardware, software, or systems;
   12. 12. A monitoring system to identify irregularities in volume or odds and swings that could signal unusual or suspicious wagering activity that should require further investigation; and
   13. 13. A wager or attempt to wager above any maximum wager threshold set by the permit holder that qualifies as unusual or suspicious wagering.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 37, Issue 4, eff. October 12, 2020.