Wyo. Code R. 038-0003-6
Effective Date: 02/22/2023 to Current
Rule Type: Current Rules & Regulations
Reference Number: 038.0003.6.02222023
Audit and Internal Controls
(a) Unless otherwise provided by the Commission, before beginning skill based amusement game operations, a vendor must submit its administrative and accounting procedures, in detail, in a written system of internal controls for Commission review and approval. Previously licensed vendors shall have sixty (60) days from the effective date of these rules to comply. A written system of internal controls must include a detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of these rules.
(b) The written system of internal controls must address the following items, at a minimum:
(i) Automated and manual risk management procedures; (ii) Information regarding identifying and reporting fraud and suspicious conduct; (iii) Controls ensuring regulatory compliance; (iv) Description of Anti-Money Laundering (AML) compliance standards; (v) Description of all types of skill based amusement games to be offered by the operator; and (vi) Any other information which may be required by the Commission.
Section 2. Amendments to Internal Controls. Unless otherwise provided by the Commission, all of the following provisions apply to amendments to the internal control procedures:
(a) Amendments to any portion of the internal control procedures must be submitted to the Commission for review; and
(b) The Commission may, in writing, approve, deny, or require a revision to the amendment to the internal control procedures. If the vendor is notified of a required revision, the vendor must work with the Commission to address the revision.
(a) In the event of an emergency, the vendor may temporarily amend an internal control procedure. The director or his or her designee must be notified that an emergency exists before temporarily amending an internal controls procedure.
(b) A vendor must submit the temporary emergency amendment of the internal control procedures to the director or his or her designee within twenty-four (24) hours of the amendment. The submission must include the detailed emergency procedures that will be implemented and the time period the emergency procedures will be temporarily in place. Any concerns the Commission has with the submission must be addressed with the vendor.
Section 4. Failure to Comply with Requirements. If the Commission determines that the administrative or accounting procedures or written internal control procedures of the vendor do not comply with the requirements of these rules or require improvement, the Commission shall notify the vendor in writing. Within fifteen (15) days after receiving the notification, the vendor must amend its procedures and written internal control procedures accordingly and must submit, for Commission approval, a copy of the written internal control procedures, as amended, and a description of any other remedial measure taken.
(a) Vendors and operators must comply with all internal controls.
(b) If a vendor or operator fails to comply with any provision of its internal controls, the Commission may initiate a disciplinary action.
(a) Vendors must maintain complete, accurate, and legible records of all transactions related to their skill based amusement game operations, including transactions pertaining to revenues, expenses, assets, liabilities, and equity.
(b) The Commission may direct vendors to alter the manner in which the records are maintained if a vendor's records are not in sufficient detail or properly maintained.
(c) The accounting records must be maintained using a double entry system of accounting with transactions recorded on the accrual basis and supported by detailed subsidiary records.
(d) The vendor must maintain all records supporting the revenues generated, player payouts, net proceeds, and taxes paid.
(e) If a vendor fails to maintain the records used by it to calculate the net proceeds, the Commission may compute and determine the amount upon the basis of an audit conducted by the Commission using available information.
(a) Upon application for a permit the vendor shall provide a financial statement that reflects the applicant’s financial stability.
(b) Annually thereafter permitting, each vendor shall submit an annual report, within ninety (90) days of the vendor’s fiscal year end reflecting all wagering activity as it pertains to its skill based amusement games in a format approved by the Commission.
(c) The Commission shall determine the date of filing and the number of copies of the report required under this rule. The reports must be received by the Commission or postmarked no later than the required filing date.
(d) The reporting fiscal year end of the vendor shall be June 30, unless otherwise approved by the Commission.
(e) In the event it is determined that there is a discrepancy the Commission may require a financial audit performed by an independent third party, approved by the Commission. The vendor shall pay all expenses incurred to perform the audit.
Vendors must detail the controls that are in place to assure that all data the Commission requires to be maintained under the statutes or these rules is appropriately segregated and controlled to prevent unauthorized access. Vendors must provide the Commission with access to all such data upon request. A vendor must retain such data for a minimum of five (5) years.
(a) Each vendor and operator must maintain, in a place secure from theft, loss, or destruction, adequate records of its business and accounting operations as it relates to skill based amusement games.
(b) Each vendor or operator must make the records available to the Commission upon request. A vendor must hold the records for not less than five (5) years. The records must include, but not be limited to, all of the following:
(i) All correspondence with, or reports to, the Commission or any local, state, or federal governmental agency regarding skill based amusement games;
(ii) Accounting records pertaining to skill based amusement games;
(iii) Ledgers pertaining to skill based amusement games;
(iv) If applicable, a copy of the contract or revenue-sharing agreement;
(v) An accurate accounting of all amounts received by a vendor from, or revenue shared with, an operator; and
(vi) All correspondence concerning the business between a vendor and its operators, regarding skill based amusement games.
(c) A vendor and its operators must keep and maintain, in a manner and form required by the Commission, accurate, complete, and legible records of any books, records, or documents pertaining to, prepared in, or generated by the vendor and its operators, including but not limited to, all of the following:
(i) Forms;
(ii) Reports, including Tax Worksheets and Attestation Reports;
(iii) Accounting records;
(iv) Ledgers;
(v) Subsidiary records; and
(vi) Internal audit records.
(d) A vendor or operator must organize and index all required records in a manner that enables the Commission to locate, inspect, review, and analyze the records with reasonable ease and efficiency. Records may be retained at a vendor’s or operator’s principal place of business, or other location and manner approved by the Commission, provided that records retained at a location outside this state are maintained in such a manner to allow for the electronic transmission of records to the Commission within a reasonable time.
Section 10. Tax Worksheet and Attestation Reports of Skill Based Amusement Game Operations. The vendor must be able to prepare reports supporting net proceeds, liability, winnings, and any other reports considered necessary by the Commission. It is the vendor's responsibility to ensure these reports are true and accurate.