Virginia Law

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.