Iowa Code r. 491-13.2 - Conduct of all sports wagering
(1)
Commission policy. It is the policy of the commission to
require that all industry participants conduct sports wagering in a manner
suitable to protect the public health, safety, morals, good order, and general
welfare of the state. Responsibility for selecting, implementing, and
maintaining suitable methods of operation rests with the facility, vendor, and
advance deposit sports wagering operator. Willful or persistent use or
toleration of methods of operation deemed unsuitable in the sole discretion of
the commission will constitute grounds for disciplinary action, up to and
including revocation.
(2)
Activities prohibited. A facility, vendor, or advance deposit
sports wagering operator is expressly prohibited from the following activities:
a. Failing to conduct advertising and public
relations activities in accordance with decency, dignity, good taste, and
honesty.
b. Failing to comply with
or make provision for compliance with all federal, state, and local laws and
rules pertaining to the operation of a facility or advance deposit sports
wagering operation including, but not limited to, payment of license fees,
withholding payroll taxes, and violations of alcoholic beverage laws or
regulations.
c. Permitting
cheating, failing to discover cheating that should have been discovered with
reasonable inquiry, or failing to take action to prevent cheating.
d. Failing to conduct sports wagering
operations in accordance with proper standards of custom, decorum, and decency;
or permitting any type of conduct that reflects negatively on the state or
commission or acts as a detriment to the sports wagering industry.
e. Performing any type of sports wagering
activity, at any time, that is contrary to the representation made to the
commission, commission representatives, or the public.
f. Denying a commissioner or commission
representative, upon proper and lawful demand, information, documents, or
access to inspect any portion of the sports wagering operation.
(3)
Wagers.
Wagers may only be made by persons 21 years of age or older and on activities
authorized pursuant to Iowa Code chapter 99F which are approved by the
commission.
(4)
Public
notice.
a. The public shall have
access to the sports wagering rules, available wagers, odds or payouts, the
payout period, and the source of the information used to determine the outcome
of a sports wager. All licensees and advance deposit sports wagering operators
shall require participants to follow the rules of play. The sports wagering
rules shall be:
(1) Displayed in the
licensee's sports wagering area.
(2) Posted on the Internet site or mobile
application used to conduct advance deposit sports wagering.
(3) Included in any terms and conditions
disclosure statements of the advance deposit sports wagering system.
b. During account setup and login,
advance deposit sports wagering operators shall display the following
information on any interface that accepts wagers:
(1) Account sharing is prohibited.
(2) Persons under the age of 21 are
prohibited from wagering.
(3) Any
other disclosures, as required by the administrator.
(5)
Bond. A
licensee shall post a bond or irrevocable letter of credit, at an amount
determined by the commission, to the state of Iowa to guarantee that the
licensee and any vendor or advance deposit sports wagering operator licensed in
conjunction with the licensee faithfully makes the payments, keeps its books
and records and makes reports, and conducts its gambling games and sports
wagering in conformity with Iowa Code chapter 99F and the rules adopted by the
commission.
(6)
Reserve. A reserve in the form of cash or cash equivalents
segregated from operational funds, an irrevocable letter of credit, payment
processor reserves and receivables, a bond, or a combination thereof shall be
maintained in the amount necessary to cover the outstanding vendor sports
wagering liability and advance deposit sports wagering liability. An accounting
of this reserve shall be made available for inspection to the commission upon
request.
a. The method of reserve shall be
submitted to and approved by the administrator prior to
implementation.
b. Reserve
calculation shall include the following: patron accounts, future wagers
liability, unpaid wagers and pending withdrawals.
c. If, at any time, the licensee's total
reserve is less than the amount required by the reserve calculation, the
licensee shall notify the commission of this deficiency within 72
hours.
d. On a form provided by the
commission, the controller or an employee of higher authority shall file a
monthly attestation to the commission that the reserve funds have been
safeguarded pursuant to this subrule. The attestation shall be provided to the
commission no later than 15 days after the end of each
month.
(7)
Internal controls. Licensees and advance deposit sports
wagering operators shall submit a description of internal controls to the
administrator. The submission shall be made at least 30 days before sports
operations are to commence unless otherwise approved by the administrator. All
internal controls must be approved by the administrator prior to commencement
of sports operations. The operator shall submit to the administrator any
changes to the internal controls previously approved at least 15 days before
the changes are to become effective unless otherwise directed by the
administrator. It shall be the affirmative responsibility and continuing duty
of each licensee and advance deposit sports wagering operator and their
employees to follow and comply with all internal controls. The submission shall
include controls and reasonable methods that provide for the following:
a. To prohibit wagering by coaches, athletic
trainers, officials, players, or other individuals who participate and persons
employed in a position with direct involvement with coaches, athletic trainers,
officials, players or other individuals who participate in an authorized
sporting event in which wagers may be accepted. Licensees shall demonstrate the
capability, subject to review and approval by the administrator, to prevent
prohibited persons from wagering on events on which they are not allowed to
wager by implementing one of the following:
(1) Organize and maintain a list of
prohibited persons.
(2) Participate
in a third-party association or group that organizes and maintains a list of
prohibited persons.
b. To
identify and suspend accounts opened by individuals on behalf of persons under
the age of 21.
c. To promptly
report to the commission any criminal or disciplinary proceedings commenced
against the licensee or its employees.
d. To promptly report to the commission, in a
format approved by the administrator, any abnormal wagering activity or
patterns that may indicate a concern about the integrity of an authorized
sporting event or events, and any other conduct with the potential to corrupt a
wagering outcome of an authorized sporting event for purposes of financial
gain, including but not limited to match fixing, and suspicious or illegal
wagering activities, including the use of funds derived from illegal activity,
wagers to conceal or launder funds derived from illegal activity, use of agents
to place wagers, account sharing, or use of false identification.
Integrity-monitoring procedures shall also provide for the sharing of
information with other licensees, other governing authorities, and accredited
sports governing entities by participating in an integrity-monitoring
association or group or by another method as approved by the
administrator.
e. Written
notification to the commission for any incident where there is a violation
involving criminal activity, Iowa Code chapter 99F, a commission rule or order,
or an internal control within 72 hours of detection. The licensee or advance
deposit sports wagering operator shall provide a written report detailing the
violation as required by and in a format approved by the
administrator.
f. The segregation
of incompatible functions so that no employee is in a position to perpetrate
and conceal errors or irregularities in the normal course of the employee's
duties.
g. User access controls for
all sensitive and secure, physical and virtual, areas and systems within a
sports wagering operation.
h.
Treatment of problem gambling by:
(1)
Identifying problem gamblers.
(2)
Complying with the process established by the commission pursuant to Iowa Code
section 99F.4(22) and
491-subrule 5.4(12).
(3)
Cooperating with the Iowa gambling treatment program in creating and
establishing controls.
(4)
Including information on the availability of the gambling treatment program in
a substantial number of the licensee's advertisements and printed
materials.
i. Setoff
winnings of customers who have a valid lien established under Iowa Code chapter
99F.
(8)
Revenue
reporting. Reports generated from the sports wagering system shall be
made available as determined by the commission. The reporting system shall be
capable of issuing reports by wagering day, wagering month, and wagering year.
Wagering data shall not be purged unless approved by the commission. The
reporting system shall provide for a mechanism to export the data for the
purposes of data analysis and auditing or verification. The reporting system
shall be able to provide, at a minimum, the following sports wagering
information:
a. The date and time each event
started and ended.
b. Total amount
of wagers collected.
c. Total
amount of winnings paid to players.
d. Total amount of wagers canceled, voided,
and expired.
e. Commission or fees
collected.
f. Total value of
promotional play or free play used to purchase or execute a sports
wager.
g. Event status.
h. Total amount held by the operator for the
player accounts.
i. Total amount of
wagers placed on future events.
j.
Total amount of winnings owed but unpaid by the operator on winning
wagers.
k. The date, time, stake
amount, win amount and individual associated with each event where winnings are
required to be reported on Internal Revenue Service form W-2G, as recorded by
the reporting system.
(9)
Unclaimed winnings and abandoned accounts. Unclaimed winnings
and abandoned accounts are subject to the following requirements:
a. Abandoned player accounts under this rule
are subject to Iowa Code chapter 556.
b. Player accounts are considered abandoned
if no activity by the account holder has occurred for three years. Player
activity includes making a wager, making an account deposit, or withdrawing
funds.
c. No licensee or advance
deposit sports wagering operator shall charge an administration fee or
maintenance fee for any inactive player account derived from state of Iowa
residents at any time for any reason.
(10)
Annual audit. If a
vendor is conducting sports wagering for a casino licensee, an audit of the
sports wagering operations for the vendor or parent company of the vendor shall
be conducted by certified public accountants authorized to practice in the
state of Iowa, and the audit shall be provided to the commission within 90 days
of the vendor's fiscal year and meet the following conditions:
a. Inclusion of an internal control letter,
audited balance sheet, and audited profit-and-loss statement including a
breakdown of expenditures and subsidiaries of sports wagering
activities.
b. Inclusion of a
supplement schedule indicating financial activities on a calendar-year basis if
the vendor's fiscal year does not correspond to the calendar year.
c. Inclusion of a supplement schedule for all
Iowa locations in which the vendor operates.
d. Report of any material errors,
irregularities that may be discovered during the audit, or notice of any audit
adjustments.
e. Availability, upon
request, of an engagement letter for the audit between the vendor or parent
company of the vendor and the auditing firm.
(11)
Revenue reports.
Licensees and advance deposit sports wagering operators shall provide
additional reports, as determined necessary by the administrator, that detail
the revenue submission required by 491-paragraph 5.4(10)"d."
Reports shall be provided to the commission in a format approved by the
administrator. The administrator shall provide written notice to any licensee
if additional reports are determined necessary. In addition, the administrator
shall provide adequate time to any licensee if a report needs to be created to
satisfy this requirement.
(12)
Ticket payouts. A method shall be available for players to
collect at any time during the facility's hours of operation winnings from
wagers made in person at a facility. Winnings required to be reported on
Internal Revenue Service Form W-2G are exempt from this requirement.
(13)
Records. Licensees
shall provide all information requested by the commission. Access to this
information shall be prompt, and copies of the information shall be delivered
within seven days or less as ordered or requested by the commission. The
licensees shall ensure all books and records and the retention of all books and
records comply with 491-subrule 5.4(14). All records pertaining to wagers shall
be available to allow for player complaint resolution. All records pertaining
to the accounts of persons who registered or have account activity in Iowa
shall be available to allow for audits and investigations.
Notes
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