Mich. Admin. Code R. 432.665 - Accounting records

Rule 665.

(1) An internet gaming operator and internet gaming platform provider must maintain complete, accurate, and legible records of all transactions related to their internet gaming, including transactions pertaining to revenues, expenses, assets, liabilities, and equity in conformance with generally accepted accounting principles.

(2) The board may direct an internet gaming operator and internet gaming platform provider to alter the manner in which the records are maintained if the internet gaming operators and internet gaming platform providers records are not in accordance with generally accepted accounting principles or if the records are not in sufficient detail.

(3) 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.

(4) The detailed subsidiary records must include, at a minimum, all of the following:

(a) Detailed general ledger accounts identifying all revenue, expenses, assets, liabilities, and equity.

(b) A record of all investments, advances, loans, and accounts receivable balances due the establishment.

(c) A record of all loans and other accounts payable.

(d) A record of all accounts receivable written off as uncollectible.

(e) Journal entries prepared.

(f) Tax work papers used in preparation of any state or federal tax return if applicable.

(g) Records supporting the accumulation of the costs for complimentary services and items. A complimentary service or item provided to individuals in the normal course of an internet gaming business must be recorded in an amount based upon the full retail price normally charged for the service or item or as is otherwise consistent with generally accepted accounting principles.

(h) Records required by the internal control system.

(i) Other records that the board requires to be maintained.

(5) The internet gaming operator and internet gaming platform provider must maintain all records supporting the adjusted gross receipts.

(6)If an internet gaming operator or internet gaming platform provider, or both, fails to maintain the records used by it to calculate the adjusted gross receipts, the board may compute and determine the amount upon the basis of an audit conducted by the board using available information.

Notes

Mich. Admin. Code R. 432.665

2020 MR 22, Eff. 12/2/2020