Mich. Admin. Code R. 432.765a - Annual audits and annual compliance reports
Rule 765a.
(1) All
of the following provisions apply to annual and special audits and other
reports:
(a) The board requires an annual
audit of the financial condition of the sports betting operator's and internet
sports betting platform providers total internet sports betting operations. For
a sports betting operator licensed as a casino under the Michigan Gaming
Control and Revenue Act, the audit prepared pursuant to section 14 of the
Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.214, satisfies this
requirement. An independent certified public accountant must perform the annual
audit.
(b) The annual audit must be
performed and presented in accordance with generally accepted accounting
principles and contain the opinion of the independent certified public
accountant as to its fair preparation and presentation in accordance with
generally accepted accounting principles.
(c) To assure the integrity of internet
sports betting and compliance with the act and these rules, the board may
require a special audit of a sports betting operator or an internet sports
betting platform provider, or both, to be conducted by board personnel or an
independent certified public accountant. The board shall establish the scope,
procedures, and reporting requirements of a special audit. For a sports betting
operator who is an Indian tribe, the scope of the special audit must be limited
to the sports betting operators internet sports betting operations.
(2) The board shall require annual
compliance reports to be prepared by the sports betting operator or the
internet sports betting platform provider, or both, and submitted in a manner
and form prescribed by the board. The annual compliance report must address all
of the following areas:
(a) Compliance with
procedures to ascertain that adjusted gross sports betting receipts are
determined and state and local taxes or payments are paid, in conformity with
the act and these rules.
(b)
Compliance with applicable ordinances and agreements with other governmental
authorities.
(c) Compliance with
internal control procedures, accounting procedures, credit procedures, dispute
procedures, and board-imposed security and safety requirements.
(d) A material deviation from the internal
control procedures, accounting procedures, credit and dispute procedures, and
board-imposed security and safety requirements.
(e) Corrective action taken to resolve
deficiencies observed in subdivisions (a) to (d) of this subrule.
(f) Other matters required by the board to
measure compliance with the act and these rules.
(3) The board shall determine the date of
filing and the number of copies of audits or reports required under this rule.
The audits or reports must be received by the board or postmarked no later than
the required filing date.
(4) The
reporting year-end of the sports betting operator and internet sports betting
platform provider is December 31 unless otherwise approved by the
board.
Notes
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