10 Del. Admin. Code § 206-3.0

Current through Reigster Vol. 28, No. 6, December 1, 2024

Section 206-3.0 - Minimum Internal Control Standards

3.1 In order to ensure the public trust, the integrity of gaming operations and the collection of required tax revenue, the agency shall adopt Minimum Internal Control Standards (MICS) which prescribe minimum procedures for the exercise of effective control over the internal fiscal affairs of a licensed agent and Internet lottery technology providers, including provisions for the safeguarding of assets and revenue, the recording of cash and evidence of indebtedness, and the maintenance of reliable records, accounts, and reports of transactions, operations and events, including reports to the Director. Such MICS shall address, at a minimum, the following:

3.1.1 A minimum uniform standard of accountancy methods, procedures and forms; a uniform code of accounts and accounting classifications; and such other standard operating procedures as may be necessary to assure consistency, comparability, and effective disclosure of all financial information, including calculations of percentages of profit by Internet table games, Internet ticket games and Internet video lottery games;

3.1.2 The organizational structure of the agent and the technology provider required to provide assurance that management is held accountable within its area of responsibility and to provide adequate segregation so that incompatible functions do not permit employees to be in a position both to commit and conceal an error or to perpetrate a fraud in their normal course of duties;

3.1.3 Physical systems and controls for information technology covering physical access to Internet lottery equipment, logical access controls to Internet lottery equipment, remote access to Internet lottery equipment, backup and recovery procedures, electronic storage of player account and gaming information, and change control processes;

3.1.4 Standards governing monitoring activities and security processes used to maintain the integrity of the Internet lottery;

3.1.5 Rules governing the conduct of authorized games and the responsibility of the agent and the technology provider in respect thereto;

3.1.6 The ability of the Internet lottery system to perform an orderly shutdown of gaming operations if deemed necessary by the Director, including without limitation, the securing of all Internet lottery systems; and

3.1.7 Currency transaction and suspicious activity reporting in accordance with the Bank Secrecy Act 1970 ( 31 CFR 103) and the responsibility of the agent and the technology provider in respect thereto.

10 Del. Admin. Code § 206-3.0

17 DE Reg. 317 (9/1/2013) (Final)