<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } a.sd0a13b60-e9de-4a1a-913b-2d51c9c79c30000002 { text-decoration: none; } span.sd0a13b60-e9de-4a1a-913b-2d51c9c79c30000003 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } h2.sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000004 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:18:35:02"><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000000">20:18:35:02</span></a><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000001">.  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000001">Internal control procedures</span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000001">.</span><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0"> </span><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Either the licensee or </span><a id="_Hlk69208517" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30000002"></a><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">sports wagering services </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">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</span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">.</span></p><p dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30000003"> </span></p><p dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">The submission describing the internal controls must include controls and reasonable methods for the following</span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">.</span></p><p dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30000003"> </span></p><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (1)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Automated and manual risk management procedures;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (2)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Employee management, including user access controls for all sports wagering personnel and segregation of duties;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (3)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Identifying and reporting fraud and suspicious conduct, including identifying unusual wagering activity and reporting such activity to an independent integrity monitoring provider;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (4)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Ensuring regulatory compliance;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (5)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Anti-money laundering compliance standards;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (6)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Accepting wagers and issuing pay outs, plus any additional controls for issuing pay outs in excess of $10,000;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (7)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">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;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (8)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">All software applications that comprise the sports wagering system;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (9)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Submitting and receiving approval of all types of wagers available to be offered by the system;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (10)  </span><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Accounting for all integrated third-party systems; </span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (11)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">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;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (12)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Cashing winning tickets at the cage after the sports wagering area has closed, if applicable;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (13)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Accepting value game chips for sports bets, if applicable;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (14)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Issuance and acceptance of promotional funds and free bets for sports wagering;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (15)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Identifying and preventing wagering by prohibited persons;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (16)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Preventing past-post wagers from being placed;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (17)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Paying winning wagers, in the event of a failure of the sports wagering system s ability to pay winning wagers;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (18)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">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;</span></h2><h2 dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P1"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    (19)  </span><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Rejecting or refusing bets that which exceed the value set forth in SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-14"><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000004">42-7B-14</span></a><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">; and</span></h2><p dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">     (20)  </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">Any other information which may be required by the commission</span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">.</span></p><p dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30000003"> </span></p><p dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000001">Source:</span><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0"> </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">48 SDR 14, effective August 22, 2021</span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">.</span></p><p dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000001">General Authority:</span><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-7"><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000004">42-7B-7</span></a><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-11"><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000004">42-7B-11</span></a><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">(13).</span></p><p dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">    </span><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000001">Law Implemented:</span><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-2.1"><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000004">42-7B-2.1</span></a><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">(1), </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-43"><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0-000004">42-7B-43</span></a><span class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30C0">.</span></p><p dir="ltr" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30P0"><span xml:space="preserve" class="sd0a13b60-e9de-4a1a-913b-2d51c9c79c30000003"> </span></p></div></body></html>