Indiana Administrative Code
Title 68 - INDIANA GAMING COMMISSION
Article 26 - PAID FANTASY SPORTS
Rule 2 - Internal Control Procedures
Section 2-2 - Internal controls
Universal Citation: 68 IN Admin Code 2-2
Current through September 18, 2024
Authority: IC 4-33-24-13
Affected: IC 4-33; IC 5-14; IC 20-18-2-4; IC 20-18-2-7
Sec. 2.
(a) The game operator must submit for approval under 68 IAC 11 internal controls for the following:
(1) Procedures to handle security
incidents, which may include system failures, loss of service, breaches of
confidentiality, and malicious intrusion.
(2) In addition to the normal contingency
plans, these internal controls shall include the following:
(A) Analysis and cause of the security
incident.
(B)
Containment.
(C) Planning and
implementation of corrective action to prevent recurrence.
(D) Communication with those affected by or
involved with recovery from the security incident.
(E) Reporting of the action to the executive
director or executive director's designee.
(3) Action to recover from security breaches
and correct system failures shall be carefully and formally controlled; the
procedures shall ensure the following:
(A)
Only clearly identified and authorized personnel are allowed access to live
systems and data.
(B) Emergency
actions taken are documented in detail.
(C) Emergency action is reported to
management and reviewed in an orderly manner.
(D) The integrity of the paid fantasy sports
game platform is confirmed with minimal delay.
(E) Reporting of the action to the executive
director or executive director's designee.
(4) Testing to ensure that the paid fantasy
sports game platform meets or exceeds current industry standards.
(5) Notifying game participants of potential
tax liabilities and providing required federal and state tax forms when a game
participant has six hundred dollars ($600) or more in net winnings in a
calendar year.
(6) Identifying and
prohibiting self-restricted game participants.
(7) Confirming age and identity verification
protocol to prohibit game participants that are less than eighteen (18) years
of age from participating in paid fantasy sports games and to authenticate the
legal name and physical address of each game participant. Details of the age
and identity verification must be kept in a secure manner.
(8) Instituting a process to close out
dormant accounts.
(9) Verifying
geolocation system to establish game participant geographic location.
(10) Segregating game participant account
funds from a game operator's operational funds.
(11) Maintaining the security of identity and
financial information of game participants.
(12) Preventing game operator employees, or a
licensee with whom the game operator has entered into a contract, and any
relative of a game operator employee living in the household of the game
operator employee, from competing in a paid fantasy sports game where the cash
prize exceeds five dollars ($5).
(13) Preventing an owner, director, or
officer of the game operator, or a licensee with whom the game operator has
entered into a contract, from being a game participant in a paid fantasy sports
game offered by the game operator.
(14) Preventing game operator employees, or a
licensee with whom the game operator has entered into a contract, from sharing
confidential information that could affect paid fantasy sports game play with
third parties until the information is made publicly available.
(15) Preventing an individual who is a
player, game official, or other participant in an actual sporting event or
competition from participating in a paid fantasy sports game that is determined
in whole or in part on the performance of that individual, the individual's
actual team, or the accumulated statistical results of the sporting event or
competition in which the individual is a player, game official, or other
participant.
(16) Disclosing the
number of paid fantasy sports games a game participant may enter, and
preventing game participants from entering into more than the maximum number of
allowed paid fantasy sports games.
(17) Maintaining a reserve in the form of
cash, cash equivalents, an irrevocable letter of credit, a bond, or a
combination of these sources that is equal to the amount of money deposited in
paid fantasy sports game accounts of game participants.
(18) Detecting and preventing the misuse of
proxy servers.
(19) Preventing the
use of unauthorized scripts.
(20)
Withholding winnings from delinquent child support obligors in accordance with
IC 4-33-24.
(21) Preventing the
advertisement of paid fantasy sports contests in any publication or medium that
is aimed exclusively at juveniles, or advertising a paid fantasy sports contest
and running promotional activities concerning a paid fantasy sports contest at
any of the following:
(A) Elementary schools,
as defined by IC 20-18-2-4.
(B)
High schools, as defined by IC 20-18-2-7.
(C) Sports venues used exclusively for:
(i) elementary school, as defined by IC
20-18-2-4; or
(ii) high school, as
defined by IC 20-18-2-7; student sports activities.
(22) Any other internal control
deemed necessary by the executive director or the executive director's
designee.
(b) The game operator shall submit internal control procedures to the commission for review and approval within one hundred eighty (180) days after submitting an application for licensure.
(c) The game operator shall stamp or otherwise mark each page of the internal control procedures submitted to the commission with the word "CONFIDENTIAL" if the material submitted is not subject to disclosure under IC 4-33 or IC 5-14.
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