Conn. Agencies Regs. § 12-865-1

Current through September 9, 2024

Section 12-865-1 - Definitions, constructions, interpretations

As used in this section and sections 12-865-2 to 12-865-34, inclusive, of the Regulations of Connecticut State Agencies, the following words and terms have the following meanings unless the context clearly indicates otherwise:

(1) "Act" means Public Act 21-23.

(2) "Auto play" means a feature that allows an internet game to place wagers automatically without patron interaction, once a denomination, wager and other play attributes have been selected by the patron.

(3) "Bots" means a computerized player of an internet game.

(4) "Business entity" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(5) "CLC" means the Connecticut Lottery Corporation as created under section 12-802 of the Connecticut General Statutes.

(6) "Commissioner" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(7) "Compliance manager" means the individual designated to be responsible for overseeing and managing compliance issues within each gaming entity licensee, including compliance with internal controls and all statutory and regulatory requirements.

(8) "Complimentaries" means promotional allowances or other promotional credits, including free play, that are provided to patrons and which allow patrons to participate in internet games on an electronic wagering platform or participate in retail sports wagering.

(9) "Comprehensive identity check" means the steps taken to: prevent identity theft and fraud; confirm that patrons meet minimum legal age requirements and are not a prohibited patron; and comply with master wagering licensee and online gaming operator's anti-money laundering and "know your customer" internal controls.

(10) "Confidential information" means an individual's first and last name in combination with one or more of the following: date of birth, mother's maiden name, motor vehicle operator's license number, Social Security number, employer or taxpayer identification number, alien registration number, government passport number, health insurance identification number, demand deposit account number, bank account number, credit card number, debit card number or unique biometric data such as fingerprint, voice print, retina or iris image, or other unique physical representation, voluntary self-exclusion list information, protected health information, as defined in 45 CFR 160.103, as amended from time to time, and information sufficient to determine the location of a patron. "Confidential information" does not include information that may be lawfully obtained from publicly available sources or from federal, state, or local government records.

(11) "Confidential information breach" means unauthorized access to, or unauthorized acquisition, control, or possession of, confidential information owned, licensed, or maintained by or on behalf of a gaming entity licensee, unless such information is in electronic form and encrypted or secured by a comparably effective method that renders the information unreadable or unusable. Any and all instances in which there is a substantial risk of identity theft or fraud to the licensee, its employees, patrons, or the state shall be considered a confidential information breach.

(12) "Consumables" means objects such as dice or playing cards used in live online casino games.

(13) "Core function" means any function related to the placement, recording, and resolution of wagers, or any other function or feature that affects the security, confidentiality, integrity, availability, or record keeping of the electronic wagering platform.

(14) "Critical component" has the same meaning as provided in section 12-858 of the Connecticut General Statutes.

(15) "Department" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(16) "Disaster recovery plan" means a plan that provides for a back-up site, detailing the computer systems, communications equipment, power supply, security procedures, recovery procedures, and time schedules for the recovery and continuation of the electronic wagering platform operation.

(17) "Document" means all records, including without limitation any writing, drawing, graph, chart, photograph, sound recording, video recording, image, code, algorithms, code repositories, audit logs, and other data or data compilation, stored in any medium from which information can be obtained either directly or, if necessary, after translation into a reasonably usable form. A draft or nonidentical copy is a separate document within the meaning of this term. The term "documents" expressly includes electronically stored information including, but not limited to, electronic mail, text messages, Microsoft Teams messages, Zoom chats, instant messaging, and Slack communications.

(18) "Dormant account" means an internet gaming account, which has had no patron initiated activity for a period of three years.

(19) "Drawing" means the process whereby winning numbers or symbols in a keno or lottery game are conclusively determined.

(20) "Drawing device" means an instrument approved by the department for conducting an electronically generated drawing.

(21) "Electronic wagering platform" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(22) "Entry fee" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(23) "Excluded person" means any individual who has voluntarily placed himself or herself in the voluntary self-exclusion database and who is prohibited from establishing an internet gaming account or participating in wagering on internet games or retail sports wagering.

(24) "Fantasy contest" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(25) "Gaming" means offering internet games and retail sports wagering.

(26) "Gaming entity licensee" means a master wagering licensee and a licensed online gaming operator, online gaming service provider and sports wagering retailer.

(27) "Gaming equipment" means any component of an electronic wagering platform or any equipment used to operate internet games.

(28) "Geolocation system" means the processes used to reasonably detect the physical real-world geographic location of an individual.

(29) "Gross receipts" has the same meaning as provided in section 12-868 of the Connecticut General Statutes.

(30) "Hardware" means all equipment, devices and peripherals, including, but not limited to, computers and computer components.

(31) "House-banked internet game" means any internet game of chance that is played with the house as a participant in the game, where the house takes on all players, collects from all losers, and pays all winners, and the house can win.

(32) "House rules" means the terms and conditions for sports wagering.

(33) "Incident" means a statutory, regulatory, or criminal violation or allegation of a violation and any irregularity that affects a gaming entity licensee or electronic wagering platform.

(34) "Independent audit" means an audit of records, policies, and procedures by a certified public accountant consistent with the standards accepted by the American Institute of Certified Public Accountants or a successor organization.

(35) "Interactive online game" means online casino gaming and online sports wagering.

(36) "Internal controls" means the written system of administrative and accounting processes and procedures implemented or anticipated to be implemented at a master wagering licensee or online gaming operator that are designed to ensure compliance with the act and sections 12-865-1 to 12-865-34, inclusive, of the Regulations of Connecticut State Agencies, including, but not limited to:

(A) financial reporting,

(B) effectiveness and security of operations,

(C) "know your customer" procedures, and

(D) deterring fraud and anti-money laundering.

(37) "Internet games" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(38) "Internet gaming" means placing wagers through an electronic wagering platform.

(39) "Internet gaming account" means an account established by a patron and maintained and overseen by an online gaming operator that a patron uses for the deposit and withdrawal of funds used for internet gaming.

(40) "Internet gaming app" means the software application used to participate in internet games that is installed on a patron device.

(41) "Keno" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(42) "Key employee" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(43) "Know your customer" has the same meaning as provided in Financial Industry Regulatory Authority Rule 2090.

(44) "Licensee" means a person licensed by the department pursuant to the act.

(45) "Live game equipment" means equipment used in conducting online casino gaming that involves at least one physical component or object whose real-time use is part of the game experience and includes, but is not limited to, live game systems, automated or non-automated roulette wheels, card shufflers, automated card readers, and automated dice shakers and throwers.

(46) "Live online casino games" includes live dealer and peer-to-peer internet games.

(47) "Lottery" means the lottery as defined in section 12-801 of the Connecticut General Statutes.

(48) "Lottery draw game" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(49) "NIST" means the National Institute of Standards and Technology.

(50) "Occupational employee" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(51) "Occupational licensee" means an employee of a gaming entity licensee with a position integral to gaming as described in section 12-858 of the Connecticut General Statutes.

(52) "Official procedures" means the documents which contain the methods of operation and management of online lottery and online keno, including, but not limited to, technical specifications, rules of play, and the configuration of the electronic wagering platform.

(53) "Online casino gaming" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(54) "Online gaming operator" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(55) "Online gaming service provider" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(56) "Online keno" means keno through the internet or a mobile application.

(57) "Online lottery" means the sale of tickets for lottery draw games through the internet or a mobile application.

(58) "Ownership interest" means any right to, ownership, an investment or a compensation arrangement with another person through business, investment or family. "Ownership interest" does not include ownership of investment securities in a publicly-held corporation that is traded on a national exchange or over-the-counter market, provided the investment securities held by such person and such person's spouse, parent or child, in the aggregate, do not exceed one-half of one per cent of the total number of shares issued by the corporation.

(59) "Patron" means any individual who takes part in an internet game or places a wager at a sports wagering retailer facility.

(60) "Patron device" means any device that is used to interact with an electronic wagering platform for the purpose of conducting internet gaming. A patron device includes, but is not limited to, personal computers, mobile phones and tablets.

(61) "Patron session" means a period of time when a patron is logged on to an electronic wagering platform.

(62) "Peer-to-peer gaming" means all gaming activity, such as poker, where patrons compete against each other.

(63) "Person" means any business entity as defined in section 12-850 of the Connecticut General Statutes or any individual.

(64) "Physical receipt" means a print-out or other item evidencing a wager placed at a sports wagering retailer.

(65) "Pool" means the amount of money wagered for a particular keno or lottery draw game.

(66) "Prizes" means anything of value provided to a patron due to the outcome of online lottery game or online keno. Prizes may include money, complimentaries, or merchandise; however, for purposes of calculating gross revenue for online keno, "prize" shall include only money paid to a patron and shall not include complimentaries, merchandise, or admission to another competition.

(67) "Prohibited patron" means an individual prohibited from placing a wager in accordance with section 12-864 or 12-561 of the Connecticut General Statutes and the following individuals:

(A) An individual who is under the minimum legal age.

(B) An individual not in an authorized location to make a wager.

(C) An individual placing a wager on behalf of another.

(D) An individual wagering in violation of state, tribal, or federal law.

(E) Other individuals determined by the department to pose a threat to the integrity of gaming due to cheating or involvement in criminal activity.

(68) "Promotion" means an event or activity, conducted by a licensee for the purpose of encouraging participation in internet games or retail sports wagering.

(69) "Promotional drawing" means any keno or lottery drawing that determines the winner of any prize that is provided by the CLC and that is not part of any lottery game prize structure.

(70) "Reservation" has the same meaning as provided in section 2(t) of the Mashantucket Pequot procedures and section 2(t) of the Mohegan compact, as such terms are defined in section 12-850 of the Connecticut General Statutes, and the geographic boundaries for geofencing the reservation shall be established by plots and grid coordinates based on U.S. Census maps.

(71) "Retail sports wagering" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(72) "Return to player" means the percentage of wagers that will be returned to players of a specific game over time.

(73) "Script" means a list of commands that a fantasy contest related computer program can execute and that are created by patrons, or by third parties for the use of patrons, to automate processes on an electronic wagering platform solely used for fantasy contests.

(74) "Sports wagering" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(75) "Sports wagering retailer" has the same meaning as provided in section 12-850 of the Connecticut General Statutes.

(76) "Sports wagering retailer facility" means the premises approved by the department where a sports wagering retailer is authorized to conduct sports wagering.

(77) "State" means the state of Connecticut, excluding the reservations.

(78) "Strong authentication" means a method used to secure computer systems or networks by verifying a user's identity by requiring multiple factors in order to authenticate (such as, something you know, something you are, or something you have).

(79) "Substantial change" means any change that directly affects the operation of a core function.

(80) "Suspended account" means an internet gaming account that has been temporarily disabled from engaging in internet gaming.

(81) "T&S controls" means an online gaming operator's technical and security standards.

(82) "Technical standard" means a standard or specification prescribed by the department concerning the design, performance, operation, testing, or maintenance of the electronic wagering platform and all gaming equipment.

(83) "Terminal" means a piece of equipment located in a sports wagering retailer facility that is dedicated to sports wagering activity utilizing the electronic wagering platform employed by or contracted for by the CLC.

(84) "Ticket" means any lottery ticket approved for sale to the general public pursuant to sections 12-568a-1 to 12-568a-24, inclusive, of the Regulations of Connecticut State Agencies.

(85) "Voluntary self-exclusion" means the process for an individual to designate himself or herself as an excluded person.

(86) "Wager" means the risking or accepting of money, credit, deposit, cash equivalent, including free play, loyalty points, and other redeemable betting credits, or anything of value on an uncertain occurrence, but does not include entry fees.

(87) "Winnings" means anything of value provided to a patron due to the outcome of a sports wager, online casino game or fantasy contest. Winnings may include money, competition credits, merchandise, or admission to another competition; however, for purposes of calculating gross revenue, "winnings" shall include only money paid to a patron and shall not include the cash equivalent value of any merchandise or thing of value or admission to another competition.

(88) "Youth athletics" means an athletic event (A) involving a majority of participants under eighteen years of age or (B) in which at least one participant is a team from a public or private elementary, middle, or secondary school, regardless of where such school is located. However, if an athletic event is a college sports or professional sports athletic event, such event shall not be considered youth athletics regardless of the age of the participants.

Conn. Agencies Regs. § 12-865-1

Effective 2/1/2022