Mich. Admin. Code R. 432.744 - Reserve requirement
Rule 744.
(1) A
sports betting operator or internet sports betting platform provider must
maintain a reserve in the amount necessary to ensure the security of funds held
in internet sports betting accounts and the ability to cover the outstanding
internet sports betting liability. The reserve must be in the form of:
(a) Cash or cash equivalents maintained in a
U.S. bank account segregated from the sports betting operator's or internet
sports betting 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 sports betting
accounts.
(b) Pending
withdrawals.
(c) Amounts accepted
by the sports betting operator or internet sports betting platform provider on
internet sports betting wagers whose outcomes have not been
determined.
(d) Amounts owed but
unpaid on winning internet sports betting wagers through the period established
by the sports betting operator or internet sports betting platform provider for
honoring winning internet sports betting wagers.
(3) Funds held in internet sports betting
accounts must not be automatically transferred by a sports betting operator or
internet sports betting platform provider. A sports betting operator or
internet sports betting platform provider must not require an authorized
participant to transfer funds from his or her internet sports betting 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 a sports betting operator or internet sports
betting platform provider to combine the reserve for all of its Michigan
internet sports betting or all of its Michigan internet gaming conducted under
the lawful internet gaming act, 2019 PA 152, MCL 432.301 to MCL 432.322, or
both.
(6) A sports betting operator
or internet sports betting platform provider must have access to all internet
sports betting account and transaction data to ensure the amount of its reserve
is sufficient. Unless otherwise directed by the board, a sports betting
operator or internet sports betting 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 a sports betting
operators or internet sports betting platform providers reserve at any time and
may direct a sports betting operator or internet sports betting platform
provider to take any action necessary to ensure the purposes of this rule are
achieved, including but not limited to requiring the sports betting operator or
internet sports betting platform provider to modify the form of its reserve or
increase the amount of its reserve.
Notes
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