Mich. Admin. Code R. 432.644 - Reserve requirement
Rule 644.
(1) An
internet gaming operator or internet gaming platform provider must maintain a
reserve in the amount necessary to ensure the security of funds held in
internet wagering accounts. The reserve must be in the form of:
(a) Cash or cash equivalents maintained in a
U.S. bank account segregated from the internet gaming operators or internet
gaming platform providers operational funds.
(b) An irrevocable letter of
credit.
(c) A bond.
(d) Any other form acceptable to the
board.
(e) Any combination of the
allowable forms described in subdivisions (a) to (d) of this subrule.
(2) The reserve must be not less
than the sum of the following:
(a) The daily
ending cashable balance of all authorized participants internet wagering
accounts.
(b) Pending
withdrawals.
(c) The sum of all
pending internet wagers, funds transferred to an internet game not yet wagered,
and pending wins.
(3)
Funds held in internet wagering accounts must not be automatically transferred
by an internet gaming operator or internet gaming platform provider. An
internet gaming operator or internet gaming platform provider must not require
an authorized participant to transfer funds from his or her internet wagering
account, in order to circumvent this rule.
(4) Amounts available to authorized
participants for play that are not redeemable for cash may be excluded from the
reserve computation.
(5) On
request, the board may allow an internet gaming operator or internet gaming
platform provider to combine the reserve for all of its Michigan internet
gaming, or all of its Michigan internet sports betting conducted under the
lawful sports betting act, 2019 PA 149, MCL 432.401 to 432.419, or
both.
(6) An internet gaming
operator or internet gaming platform provider must have access to all internet
wagering account and transaction data to ensure the amount of its reserve is
sufficient. Unless otherwise directed by the board, an internet gaming operator
or internet gaming platform provider must file a monthly attestation with the
board, in the form and manner prescribed by the board, that funds have been
safeguarded under this rule.
(7)
The board may audit an internet gaming operators or internet gaming platform
providers reserve at any time and may direct an internet gaming operator or
internet gaming platform provider to take any action necessary to ensure the
purposes of this rule are achieved, including but not limited to requiring the
internet gaming operator or internet gaming platform provider to modify the
form of its reserve or increase the amount of its reserve.
Notes
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