Virginia Law

A. All wagers on sporting events authorized by the sports betting law and this chapter shall be initiated, received, and otherwise made within the Commonwealth of Virginia unless otherwise permitted by federal law. Consistent with the Unlawful Internet Gambling Enforcement Act (31 USC §§ 5361-5367), the intermediate routing of electronic data relating to the lawful intrastate sports betting authorized under the sports betting law and this chapter shall not determine the location in which such bet is initiated and received.

B. Before a permit holder is issued its permit, all equipment and software used in conjunction with its operation shall be submitted to an independent testing laboratory approved by the director.

C. A sports betting platform submitted to an approved independent testing laboratory shall contain:

1. A complete, comprehensive, technically accurate description and explanation of the sports betting platform;

2. Detailed operating procedures of the sports betting platform;

3. A description of the risk management framework, including:

a. User access controls for all permit holder personnel;

b. Information regarding segregation of duties;

c. Information regarding automated risk-management procedures;

d. Information regarding identifying and reporting fraud and suspicious activity;

e. Controls for ensuring regulatory compliance;

f. A description of AML compliance standards;

g. A description of all software applications that comprise the system;

h. A description of all types of wagers available to be offered by the system;

i. A description of all types of third-party systems proposed for utilization; and

j. A description of the method proposed by the permit holder to prevent past posting.

D. Upon request, a permit holder shall promptly provide the director with relevant reports and documentation that shall include, at a minimum:

1. Complete access to all wagers, including canceled, voided, pending, and redeemed wagers;

2. The ability to query or sort wagering data; and

3. The ability to export wagering data.

E. A permit holder or the supplier providing a permit holder's sports betting platform shall maintain all transactional wagering data for a period of five years.

F. The house rules that apply to wagers placed on a sports betting platform shall be readily available to a player.

G. A sports betting platform shall be capable of recording, for each wager made:

1. Description of the sporting event;

2. Wager selection;

3. Type of wager;

4. Amount of wager;

5. Date and time of the wager;

6. Unique wager identifiers;

7. Player identification number;

8. Current wager status (i.e., active, canceled, voided, pending, etc.);

9. Relevant location information;

10. Results of the wager;

11. Amount won; and

12. Date and time the winning wager was paid to the player.

H. A sports betting platform that offers live betting shall be capable of:

1. Accurate and timely updates of odds for live betting wagers;

2. Notifying a player of any change in odds that is not beneficial to the player while the wager is selected but before it is placed;

3. Allowing players to confirm the wager after notification of the odds change; and

4. Freezing or suspending the offering of wagers when necessary.

I. A sports betting platform shall be capable of:

1. Creating wagers;

2. Settling wagers;

3. Voiding wagers;

4. Canceling wagers; and

5. Preventing the acceptance of wagers on prohibited sports events.

J. When a wager is voided or canceled, a sports betting platform shall indicate clearly that the transaction was voided or canceled, render the transaction nonredeemable, and make an entry in the system indicating the voiding or cancellation of the wager.

K. Unless approved in advance by the director. a permit holder or a supplier providing a permit holder's sports betting platform may not alter the odds or any other material aspect of the transaction after a player's wager has been accepted.

L. A sports betting platform shall prevent past posting of wagers and the voiding and cancellation of wagers after the outcome of an event is known.

M. If a player has a pending wager and the player subsequently self-excludes, the wager may settle and the funds and account balance shall be returned to the player in accordance with the permit holder's internal control standards.

N. At least once every 24 hours, a sports betting platform shall perform an authentication process on all software used to offer, record, and process wagers to ensure there have been no unauthorized modifications. As part of this authentication process, the sports betting platform must be able to detect if any system component is determined to be invalid in the event of an authentication failure.

O. In the event of an authentication failure, the permit holder shall notify the director within 24 hours of the failure. The results of all authentication attempts shall be recorded by the sports betting platform and maintained for a period of 90 days.

P. A sports betting platform shall have controls in place to review the accuracy and timeliness of any data feeds used to offer or settle wagers. If an incident or error occurs that results in a loss of communication with the data feeds used to offer or redeem wagers, such error shall be recorded in a log capturing the date and time of the error, the nature of the error, and a description of its impact on the system's performance. Such information shall be maintained for a minimum period of two years.

Q. A permit holder and a supplier providing a permit holder's sports betting platform shall grant the director access to wagering systems, transactions, and related data as deemed necessary and in the manner required by the director.

R. A sports betting platform shall provide a process for the director to query and export, in the format required by the director, all sports betting platform data.

S. Additional system specifications may be specified by the director through the issuance of a technical bulletin.