Connecticut Administrative Code
Title 12 - Taxation
568a - Operation of Lottery
Section 12-568a-19 - Security and compliance

Universal Citation: CT Reg of State Agencies 12-568a-19

Current through March 14, 2024

(a) Director of security. The CLC director of security shall be a duly qualified, full time director of security licensed by the department as a class IV occupational licensee. The duties of the director of security include, but are not limited to, responsibility for the security of the CLC's facilities and for monitoring the wearing of badges at said facilities.

(b) Compliance officer. The CLC shall have a compliance officer who shall be a duly qualified, full time employee licensed by the department as a class IV occupational licensee. The compliance officer may be an existing employee of the CLC who is designated by the president to serve in this capacity. The duties of the compliance officer include, but are not limited to, enforcing all regulations and statutes pertaining to the CLC, ensuring compliance with all internal controls and rules of operation, and ensuring that the lottery is operated with absolute integrity and for the public good.

(c) Facility security. The CLC and any vendor or licensee shall comply with any requirement of the commissioner regarding the security of any of its facilities.

(d) Cyber security. The CLC shall employ commercially reasonable best practices to ensure data security and prevent cyber attacks. Such best practices shall include maintaining appropriate cyber security insurance coverage, facilitating relevant employee training, and conducting information system audits.

(e) Visitor log. The CLC and any vendor shall maintain an accurate and up-to-date log of all visitors to their facilities and provide a copy of this log to the department upon request. The log shall contain the date, time and purpose of each person's visit. The CLC shall secure its facility so as to protect the integrity of lottery operations, including its lottery gaming system, property, people, and trade secrets.

(f) Drawings. The department shall oversee drawings conducted by the CLC. The CLC shall conduct any lottery game drawing in the presence of department personnel and in accordance with official procedures approved by the department. The department shall have sole responsibility for the ultimate decision for any and all drawing problems or circumstances that may arise. The department shall have approval authority over any winning number combination to be paid.

(g) Promotional drawings. The CLC shall provide the department with advance notice of, and drawing procedures for, any promotional drawings. Said procedures shall be reviewed by the department and approved prior to said events being publicized or offered to purchasers. The department shall oversee promotional drawings. The department shall have sole responsibility for the "final call", in the event of any drawing problems or circumstances that may arise.

(h) Unfettered access to, inspection of, and monitoring of all facilities of the CLC. Employees of the department and its designated representatives shall have the right to unannounced and unfettered entry to all of the CLC and vendor facilities. The department shall inspect the CLC and vendor facilities for possible breaches of security and physical security standards. The CLC shall ensure that all vendors comply with physical security standards as approved by the department.

(i) Instant tickets. The CLC shall submit working papers for instant games to the department. The department shall review and approve said papers for integrity purposes prior to ticket production. Department representatives shall obtain a sample of instant tickets during production and shall submit such samples to a department-approved independent laboratory for testing purposes. Tickets shall not be allowed to be distributed by the CLC until the independent laboratory results are received and approved by the department. The CLC shall submit to the department an independent auditor report in a form prescribed by the department for any instant game. The CLC shall also submit any additional information requested by the department.

(j) Instant game ticket partial pack return. The CLC shall establish procedures, approved by the department, for the return of any partial pack of instant tickets by an agent.

(k) Lottery game discontinuation.

(1) Top prizes claimed. The CLC may discontinue any lottery game provided reasonable notice is provided to the department and to the public as described in section 12-568a-2 of the Regulations of Connecticut State Agencies and subdivision (4) of this subsection. The CLC shall take immediate steps to notify all agents when the last top prize has been validated and no instant game shall be advertised or distributed and no new pack of instant tickets for such game shall be activated after the last top prize has been validated nor shall any instant game ticket be sold by an agent after agents have been notified that the last top prize has been validated.

(2) Rights of ticket holder. Except as otherwise provided in sections 12-568a-1 to 12-568a-24, inclusive, of the Regulations of Connecticut State Agencies, a lottery game discontinuation shall not affect the rights of those who purchased tickets prior to the effective date of discontinuation.

(3) Emergencies. If any unforeseen problem occurs that may reasonably cause substantial detriment to the public interest or the state of Connecticut, the department may order an immediate suspension of the sales of any tickets or the conduct of any drawing relating to a particular lottery game. The department may thereafter require the CLC to establish new procedures relating to the conduct of any incidental drawing and the determination of any winner and prize to be paid.

(4) Final claiming dates. The CLC shall provide the public at least three weeks advance notice of all unclaimed jackpot prizes, grand prize winning tickets and discontinued lottery games. The CLC shall post notice on the CLC website of the final claiming date.

(l) Master system console logs. The CLC shall ensure that its vendor maintains system console logs of activity for the lottery gaming system. These console log reports shall reflect all system activity, including, but not limited to, all system access, system transmissions and system errors.

(m) Retention and inspection of system console logs. The CLC shall retain, or ensure that its vendor retains, all system console logs. The logs shall be in a media and format acceptable to the department and shall be retained for no less than five (5) years. The department, in its sole discretion, may request to review the system console logs at any time.

(n) Disaster recovery. The CLC shall submit for department approval a disaster recovery plan for the lottery gaming system.

(o) Redundant fault-tolerant system. The CLC shall insure the lottery gaming system records each transaction in at least two separate locations.

(p) Ticket validation requirements. The CLC shall set minimum ticket validation requirements for all lottery game tickets subject to department approval. All claims presented shall be verified in accordance with official procedures for validating winning tickets processed through the lottery gaming system.

(q) Ticket purge requirements for winning tickets. The lottery gaming system vendor shall utilize software that restricts access to nearly purged or soon to be purged winning tickets, and ensures reporting controls to detect unusual cashing activity by agents, the lottery gaming system vendor, and the CLC. The CLC shall provide system reports on a regular basis, as determined by the department, which identify the cashing of nearly purged or soon to be purged tickets.

(r) Tampering with pools, liabilities, console log review. The lottery gaming system vendor shall utilize software protection in the lottery gaming system to prohibit employees of the CLC or vendor from tampering with pools, liabilities or winning ticket information. The vendor shall also produce system pool reports generated immediately at the close of games. These reports shall be provided to the department to verify liabilities. If an attempt is made to tamper with information, such activity shall be indicated on the system console log.

(s) System management reports. The CLC shall ensure that its vendor provides system reports that reveal all system activity generated at and by the terminals, including, but not limited to: wagers, cashes, cancels, errors, statuses, validations, activations, deactivations, special reports, sign-ons, sign-offs, inquiries, and diagnostic requests. These reports shall be available upon the department's request and shall be used to verify the operating status of the system and agent terminals.

(t) Liability for loss of data. In the event of loss of any data or records necessary for the performance of department duties, the CLC shall recreate, or cause its vendor to recreate, such lost data or records at the CLC's own expense, which expense may be charged back to the vendor if the CLC determines that its contract with the vendor permits such a charge.

Disclaimer: These regulations may not be the most recent version. Connecticut may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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