Current through Register Vol. 41, No. 3, September 23, 2024
A.
Definitions. In addition to the terms defined in 11VAC65-90-10, the following
terms have the meanings indicated.
"Sports betting kiosk" means the physical device and
collective hardware, software, communications technology, and other ancillary
equipment used for sports betting voucher and ticket processing and automated
functions as approved by the department.
"Sports betting law" means Article 2 (§ 58.1-4030 et
seq.) of Chapter 40 of Title 58.1 of the Code of Virginia.
"Sports betting lounge" means a designated area in a casino
gaming facility where sports betting is conducted.
"Sports betting platform" means a website, mobile
application, or other platform accessible via the Internet or mobile, wireless,
or similar communications technology that sports bettors use to participate in
sports betting.
"Sports betting ticket" means a printed record issued or an
electronic record maintained by the casino gaming operator that evidences a
sports wager.
"Sports betting voucher" means a printed record or digital
representation thereof issued by a casino gaming operator that may be used to
fund a wager or may be redeemable for cash.
B. Sports betting transactions.
1. Before offering sports betting
transactions in its sports betting facility, a facility operator shall submit a
plan to the department that meets the requirements of 11VAC5-90-100 and has
been approved by the department.
2.
Sports betting transactions may be conducted from:
a. A sports betting lounge counter located in
the sports betting lounge or other window locations as approved by the
department;
b. Sports betting
kiosks in locations as approved by the department;
c. Devices as approved by the department;
or
d. A designated window in a
cashiers' cage for the redemption of winning sports betting tickets
only.
C.
Security requirements.
1. Sports betting
operations within a casino gaming facility shall be designed to promote optimum
security of the casino gaming facility, and shall include the installation and
maintenance of security and surveillance equipment pursuant to the requirements
of 11VAC5-90-110 and 11VAC5-90-120 and shall be approved by the
department.
2. The department shall
have direct access to the system and its transmissions.
3. At least 60 days before sports betting
operations are to commence, a facility operator shall submit to the department
the surveillance plan for its sports betting facility.
D. Internal controls. At least 60 days before
sports betting operations are to commence, a facility operator shall submit to
the department for approval its internal controls which, in addition to those
required by11VAC5-70, shall address at a minimum the following items:
1. Description of the limitations placed on
anonymous wagering at the sports betting kiosks;
2. Description of the process for accepting
wagers and issuing payouts in excess of $10,000;
3. Description of the process for accepting
multiple wagers from a single player in a 24-hour cycle, including a process to
identify player structuring of wagers to circumvent recording and reporting
requirements;
4. Detailed
procedures for reconciliation of assets and documents contained in a sports
betting lounge cashier's drawer and sports betting kiosks, which shall include
the drop, fill and count procedures for sports betting kiosks;
5. Procedures for cashing winning tickets at
the cashiers' cage after the sports betting facility has closed, if
applicable;
6. Procedures for
accepting value game chips for sports wagers, if applicable;
7. Detailed procedure for the issuance of IRS
Form W-2G, Certain Gambling Winnings;
8. If allowed, the procedure for redeeming
lost tickets; and
9. In the event
of a failure of the facility's ability to pay winning wagers, detailed
procedures for the method of paying winning wagers.
E. House rules. The house rules required by
11VAC5-70, together with any other information the director deems appropriate,
shall be conspicuously displayed in the sports betting facility, and copies
shall be made readily available to players.
F. Player wagers.
1. Wagers available to players shall be
displayed in a manner visible to the public and the facility operator's closed
circuit television system. The display shall include a brief description of the
event and the odds.
2. All sports
betting tickets generated by a sports betting facility shall contain the
following information:
a. Description of the
sporting event;
b. Wager
selection;
c. Type of
wager;
d. Amount of
wager;
e. Date and time of the
wager;
f. Unique wager
identifier;
g. An indication of
when the ticket expires;
h. Name
and address of the party issuing the ticket;
i. A barcode or similar symbol or marking as
approved by the department corresponding to the unique wager
identifier;
j. Method of redeeming
winning ticket via mail; and
k.
Cashier, device, or sports betting kiosk generating the ticket.
3. If the facility operator issues
and redeems a sports betting voucher, the system shall be capable of recording
the following information for each voucher:
a.
Amount of voucher;
b. Date, time,
and location of issuance;
c. Unique
voucher identifier;
d. Expiration
date of the voucher; and
e. Date,
time, and location of redemption, if applicable.
4. Sports betting vouchers issued by a
facility operator shall contain the following information:
a. Date, time, and location of
issuance;
b. Amount of the
voucher;
c. Unique voucher
identifier;
d. Expiration date of
the voucher;
e. Name of the issuing
facility operator; and
f. An
indication that the voucher can only be redeemed in exchange for a sports wager
or cash.
5. A cashier may
not cancel a wager for which the cashier wrote the ticket and must instead call
a supervisor to cancel the wager.
6. For all lost tickets that are redeemed,
the facility operator's sports betting platform shall record and maintain the
following information:
a. Date and time of
redemption;
b. Employee responsible
for redeeming the ticket;
c. Name
of player redeeming the wager;
d.
Unique wager identifier; and
e.
Location of the redemption.
7. A player may redeem a winning sports
wagering ticket by mail according to the facility operator's internal
controls.
8. A winning sports
wagering ticket that has not been redeemed within 180 days shall be treated
like an unclaimed jackpot under 11VAC5-90-20.
G. Sports betting kiosks.
1. A facility operator may utilize sports
betting kiosks within a casino gaming facility for sports betting wagering
transactions at a location approved by the department.
2. All aspects of a sports betting kiosk,
including the computer and any related hardware, software, or related devices,
shall be tested by an independent certified testing laboratory and approved by
the department prior to use by a facility operator.
3. When used to redeem sports betting tickets
or vouchers, sports betting kiosks shall work in conjunction with the facility
operator's sports betting platform and shall be designed to:
a. Accurately obtain the unique
identification number of the item presented for redemption and cause such
information to be accurately and securely relayed to the facility operator's
sports betting platform for the purpose of redemption;
b. Issue currency, a sports betting voucher,
or both in exchange for the item presented only if the facility operator's
sports betting platform has authorized and recorded the transaction;
and
c. Return a sports betting
ticket and voucher to the player when it cannot be validated by the facility
operator's sports betting platform or is otherwise unredeemable.
4. A facility operator shall be
able to generate the following reports by a sports betting kiosk or ancillary
system or application for the reconciliation period, which may be by gaming
day, shift, or drop cycle as approved by the department:
a. A sports betting ticket issuance report
that details:
(1) Unique wager
identifier;
(2) Date and time of
issuance; and
(3) Amount of
wager;
b. A sports
betting ticket redemption report that details:
(1) Unique wager identifier;
(2) Date and time of redemption;
and
(3) Amount redeemed;
c. A sports betting voucher
issuance report that details:
(1) Unique
voucher identifier;
(2) Date and
time of issuance; and
(3) Amount of
voucher;
d. A sports
betting voucher redemption report that details:
(1) Unique voucher identifier;
(2) Date and time of redemption;
and
(3) Amount redeemed;
e. A reconciliation report that
details:
(1) Date and time;
(2) Unique asset identification number of the
sports betting kiosk;
(3) Total
amount of cash in the currency and coin cassettes;
(4) Total number of bills accepted by
denomination;
(5) Total amount of
credit card and debit card transactions;
(6) Total amount of sports betting vouchers
dispensed and inserted; and
(7)
Total amount of sports betting tickets dispensed and inserted;
f. A transaction history report
that details all critical player transaction history including for each
transaction, whether complete or incomplete, the following:
(1) Date and time;
(2) Amount;
(3) Disposition as complete or
incomplete;
(4) Error conditions
including failed access attempts;
(5) User access data; and
(6) If equipped to issue or redeem multiple
sports betting tickets and sports betting vouchers in a single transaction, a
breakdown of the transaction by individual sports betting ticket and sports
betting voucher.
5. On a daily basis, a facility operator
shall:
a. Remove the bill validator boxes in
the sports betting kiosks; and
b.
Monitor and record by surveillance the removal of each bill validator
box.
6. A facility
operator shall submit to the department in advance its daily schedule for
removal of the sports betting kiosk bill validator boxes.
7. A facility operator's accounting
department shall reconcile the sports betting kiosks on a daily basis pursuant
to internal controls. Any variance of $500 or more shall be documented by the
accounting department and reported in writing to the department within three
days after the gaming day during which the variance was discovered. The report
shall indicate the cause of the variance and shall contain any documentation
required to support the stated explanation.
H. Accounting controls.
1. A cashier shall begin a shift with an
imprest amount of sports betting inventory, consisting of currency and coin. No
funds shall be added to or removed from the sports betting inventory during a
shift except:
a. In collection of sports
wagers;
b. In order to make change
for a player buying a sports betting ticket;
c. In collection for the issuance of sports
betting vouchers;
d. In payment of
winning or properly canceled or refunded sports betting tickets;
e. In payment of sports betting vouchers;
or
f. In exchanges with the
cashiers' cage, a satellite cage, or sports betting lounge booth vault
supported by proper documentation which documentation shall be sufficient for
accounting reconciliation purposes.
2. A sports betting count sheet shall be
completed and signed by a supervisor, and the following information, at a
minimum, shall be recorded on the count sheet at the beginning of a shift:
a. The date, time, and shift of
preparation;
b. The denomination of
currency and coin in the sports betting inventory issued to the
cashier;
c. The total amount of
each denomination of currency and coin in the sports betting inventory issued
to the cashier;
d. The sports
betting window number to which the cashier is assigned; and
e. The signature of the sports betting shift
supervisor.
3. A cashier
assigned to a cashier window shall count and verify the sports betting
inventory at the sports betting vault and ensure that the inventory agrees with
the count sheet. The cashier shall sign the count sheet attesting to the
accuracy of the information on the count sheet. The sports betting inventory
shall be placed in a cashier's drawer and transported directly to the
appropriate sports betting lounge booth window by the cashier.
4. If the system generated sports betting
window net receipts for a shift do not agree with the sports betting count
sheet total plus the sports betting inventory, the shift supervisor shall
record any overage or shortage. If the count does not agree, the cashier and
the shift supervisor shall attempt to determine the cause of the discrepancy in
the count. Any discrepancy that cannot be resolved by the cashier and the shift
supervisor shall be submitted in writing immediately to the
department.
5. If a discrepancy
identified in subdivision G 4 of this section is more than $500, within three
days the facility operator shall submit a report to the department that
includes the:
a. Date on which the discrepancy
occurred;
b. Shift during which the
discrepancy occurred;
c. Name of
the cashier;
d. Name of the
supervisor;
e. Window number;
and
f. Amount of the
discrepancy.
6. A sports
betting shift supervisor shall:
a. Compare the
cashier window net for each shift as generated by the terminal, and
b. If the cashier window net agrees with the
sports betting count sheet total plus the sports betting inventory:
(1) Certify the count on the sports betting
count sheet, and
(2) Sign the
sports betting count sheet attesting to its accuracy.
Statutory Authority: §§ 58.1-4101 and 58.1-4102
of the Code of Virginia.