N.J. Admin. Code § 13:69N-1.7 - Internal controls; house rules

(a) Sports pool operators shall file with the Division internal controls for all aspects of sports pool and/or online sports pool wagering operations prior to commencing operations.
(b) In the event of a failure of the sports pool system's ability to pay winning wagers, the licensee shall have internal controls detailing the method of paying winning wagers. The licensee shall also file an incident report for each system failure and document the date, time, and reason for the failure along with the date and time the system is restored with the Division.
(c) The internal controls shall address the following, at a minimum:
1. User access controls for all sports pool personnel;
2. Segregation of duties;
3. Automated and manual risk management procedures;
4. Procedures for identifying and reporting fraud and suspicious conduct;
5. Procedures to prevent wagering by patrons prohibited from wagering pursuant to this chapter;
6. Description of anti-money laundering compliance standards including, but not limited to, filing of CTRs, SARs, and procedures for detecting structuring to avoid reporting requirements;
7. Description of all types of wagers available to be offered by the system; and
8. Description of all integrated third-party systems.
(d) The internal controls shall detail the reconciliation of assets and documents contained in a sports wagering lounge ticket writer's drawer and sports pool kiosks pursuant to N.J.A.C. 13:69N- 1.15 and 1.14.
(e) The internal controls shall detail the procedures to redeem lost tickets or vouchers, which shall include a supervisor's approval and documentation of the:
1. Date and time of the redemption;
2. Employee responsible for redeeming the ticket or voucher;
3. Supervisor authorizing the redemption;
4. Patron identification;
5. Unique ticket or voucher identifier; and
6. Location of the redemption.
(f) The internal controls shall detail procedures to reprint tickets and vouchers that fail to print at either a ticket station or kiosk. Such procedures shall include a requirement of supervisory authorization for the reprint.
(g) Sports pool and online sports pool operators shall adopt comprehensive house rules, which shall be approved by the Division that include the following, at a minimum:
1. Method for calculation and payment of winning wagers;
2. Description of the process for handling incorrectly posted events, odds, wagers, or results;
3. Effect of schedule changes;
4. Method of notifying patrons of odds or proposition changes;
5. Acceptance of wagers at other than posted terms;
6. Expiration of any winning ticket one year after the date of the event;
7. Method of contacting the operator for questions and complaints;
8. Description of prohibited sports pool participants;
9. A statement regarding the policy and methods for limiting the maximum amount that a patron can win on any particular wager; however, such policy will not preclude a patron from collecting a payout in excess of the purported amount if the system allows the patron to place a valid wager that pays more than the stated maximum amount;
10. Method of the process for any employee of a sports governing body or member team who is not prohibited from wagering to register with the Division prior to placing a sports wager; and
11. Method of funding a sports wager.
(h) The house rules, together with any other information the Division deems appropriate, shall be conspicuously displayed in the sports wagering lounge, posted on the operator's Internet website, and included in the terms and conditions of the account wagering system and copies shall be made readily available to patrons.


N.J. Admin. Code § 13:69N-1.7
Adopted by 50 N.J.R. 1652(a), effective 7/16/2018 Amended by 51 N.J.R. 1514(b), effective 10/7/2019

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