Either the licensee or sports wagering services provider or
both shall submit a description of internal controls to the commission. The
submission shall be made at least 30 days before sports wagering operations are
to commence. All internal controls must be approved by the executive secretary
prior to commencement of sports wagering operations. Either the licensee or
sports wagering services provider, or both, shall submit to the commission any
changes to the internal controls previously approved at least 15 days before
the changes are to become effective unless otherwise directed by the executive
secretary. Each licensee and sports wagering services provider and their
employees shall be responsible for complying with all approved internal
controls.
The submission describing the internal controls must include
controls and reasonable methods for the following.
(1) Automated and manual risk management
procedures;
(2) Employee
management, including user access controls for all sports wagering personnel
and segregation of duties;
(3)
Identifying and reporting fraud and suspicious conduct, including identifying
unusual wagering activity and reporting such activity to an independent
integrity monitoring provider;
(4)
Ensuring regulatory compliance;
(5)
Anti-money laundering compliance standards;
(6) Accepting wagers and issuing pay outs,
plus any additional controls for issuing pay outs in excess of
$10,000;
(7) Accepting multiple
wagers from one patron in a 24-hour cycle, including a process to identify
patron structuring of wagers to circumvent recording and reporting
requirements;
(8) All software
applications that comprise the sports wagering system;
(9) Submitting and receiving approval of all
types of wagers available to be offered by the system;
(10) Accounting for all integrated
third-party systems;
(11)
Reconciling assets and documents contained in a sports wagering area cashier's
drawer and in sports wagering kiosks, including the drop and count procedures
for sports wagering kiosks;
(12)
Cashing winning tickets at the cage after the sports wagering area has closed,
if applicable;
(13) Accepting value
game chips for sports bets, if applicable;
(14) Issuance and acceptance of promotional
funds and free bets for sports wagering;
(15) Identifying and preventing wagering by
prohibited persons;
(16) Preventing
past-post wagers from being placed;
(17) Paying winning wagers, in the event of a
failure of the sports wagering system's ability to pay winning
wagers;
(18) Filing an incident
report with the commission for each sports wagering system failure and
documenting the date, time, and reason for the failure along with the date and
time the system is restored;
(19)
Rejecting or refusing bets that which exceed the value set forth in SDCL
42-7B-14; and
(20) Any other information which may be
required by the commission.
