Current through Register 1531, September 27, 2024
For any transaction where a Sports Wagering Operator may cancel
or void a Wager, with or without prior authorization of the Commission, the
Sports Wagering Operator shall submit a system of Internal Controls in
accordance with
205
CMR 238.02 for voiding Wagers and subsequent
allocation of patron funds. Such system shall include, at a minimum, the
following:
(1) Cancellation of an
otherwise validly placed Wager by a Sports Wagering Operator shall be
nondiscretionary. A Sports Wagering Operator shall cancel or void a Wager
without prior authorization of the Commission under the following
circumstances:
(a) Any Wager where after a
patron has placed a Sports Wager, the Sporting Event is cancelled, postponed or
rescheduled to a different date prior to completion of the Sporting Event;
1. In the case of a Wager on a portion of a
Sporting Event, that Wager shall be valid when the event is canceled,
postponed, or rescheduled if the outcome of the affected portion was determined
prior to the cancelation, postponement or rescheduling; or
2. A Sports Wagering Operator may establish a
timeframe in which an event may be rescheduled or postponed without canceling
the wager. This timeframe shall be tied to specific Sporting Events, subject to
the approval of the Commission, and documented in the system of Internal
Controls.
(b) A change in
the venue where a Sporting Event was scheduled to be held occurs after a patron
has placed a Sports Wager;
(c) Any
tier 1 Sports Wager in a non-team event when an individual athlete or
competitor fails to participate in a Sporting Event and the outcome of the
Wager is solely based upon the individual athlete or competitor's
performance;
(d) Any tier 2 Sports
Wager when an individual athlete or competitor fails to participate in a
Sporting Event and the outcome of the wager is solely based upon that
individual athlete or competitor's performance;
(e) Any Sports Wager received for an act, or
set of acts, to be performed during a Sporting Event when such act or acts does
not occur and the ability to Wager on the non-occurrence of the event was not
offered. For example, a Sports Wager on punt return yardage in an American
football game where no punts occur and zero was not an available
Wager;
(f) Any Wager received on
whether a team will qualify to participate in post-season competitions when the
number of teams allowed to participate in the post-season changes after a
patron has placed a Wager;
(g)
Changes to rules by a Sports Governing Body regarding the format or number of
athletes or competitors scheduled to participate in a defined phase of a
sporting event or that particular phase is not played at all;
(h) A material change in circumstances for a
given Sporting Event or Wager category occurs, provided:
1. The Commission approves the material
change;
2. The Sports Wagering
Operator documents the material change in its system of Internal Controls;
and
3. The Sports Wagering Operator
displays the material change to a patron at the time of placement of the Sports
Wager.
(i) When a patron
requests a Sports Wager be cancelled or voided prior to the commencement of the
Sporting Event due to:
1. An error in
communicating the type, amount or parameters of the Wager; or
2. An error of a Ticket Writer entering such
transaction in the Sports Wagering Equipment, in such case the ticket writer
must call a supervisor to cancel or void the Wager; or
(j) When authorized or ordered by the
Commission pursuant to
205
CMR 238.35.
(2) For all circumstances that are not set
forth in
205
CMR 238.35(1), a Sports
Wagering Operator may request the Commission authorize the cancellation or
voiding of all Wagers of a specific type, kind, or subject. A Sports Wagering
Operator shall submit its request to cancel or void the Wager in writing, and
such request shall contain the following:
(a)
A description of the type, kind, or subject of Wager the Sports Wagering
Operator is requesting to cancel or void;
(b) A description of any facts relevant to
the request; and
(c) An explanation
why cancelling or voiding the Wager is in the best interests of the
Commonwealth or ensures the integrity of the Sports Wagering
industry.
(3) The Sports
Wagering Operator shall provide any additional information requested by the
Commission to review and approve the request.
(4) The Commission shall issue a written
order granting or denying the request to cancel or void the Wager. In
determining whether to grant or deny the request, the Commission shall consider
any relevant factors, including:
(a) Whether
the alleged facts implicate the integrity of the Sporting Event subject to the
Wager or the Sports Wagering industry;
(b) Whether the alleged facts implicate
possible illegal activity relating to the Sporting Event or the Sports Wagering
industry;
(c) Whether allowing the
Wager would be unfair to patrons; or
(d) Whether allowing the Wager is contrary to
public policy.
(5) No
Wager subject to the request to cancel or void shall be redeemed, cancelled, or
voided, until the Commission or its designee issues an order granting or
denying the request to cancel.
(6)
If the Commission or its designee grants the request to cancel or void, the
Sports Wagering Operator shall make commercially reasonable efforts to notify
patrons of the cancellation or voiding of the Wager.
(7) The Commission or its designee has
discretion to order all Sports Wagering Operators to cancel or void all Wagers
on a specific Sporting Event or Wagers of a specific type or kind on a specific
Sporting Event. In exercising its discretion, the Commission shall apply the
same factors described in
205
CMR 238.35(1).
(8) A patron may request the Commission or
its designee review any Wager declared cancelled or voided by a Sports Wagering
Operator. If the Commission or its designee concludes there is no reasonable
basis to believe there was obvious error in the placement or acceptance of the
Wager, the Commission or its designee may order the Sports Wagering Operator to
honor the Wager.
(9) If a Wager is
declared canceled or voided, the Wager shall be refunded to the patron and that
amount shall be deducted from the Adjusted Gross Sports Wagering Receipts. For
cancelled or voided Wagers not tied to a Sports Wagering Account, the following
shall apply:
(a) Any cancelled or voided Wager
shall be refunded upon request by a patron prior to the expiration of the
original redemption period and shall be deducted from Adjusted Gross Sports
Wagering Receipts; and
(b) At the
expiration of any outstanding cancelled or voided Wager which has not been
refunded, the original amount of the outstanding Wager shall be deducted from
Adjusted Sports Wagering Receipts and remitted to the Sports Wagering
Fund.
(10) All voided or
cancelled Wagers and all refunds of any voided or cancelled Wager pursuant to
205
CMR 238.35 shall be logged at the time they
occur and such log must be made available to the Commission upon
request.
