809 KAR | Title 809 KAR — Public Protection Cabinet - Kentucky Horse Racing Commission

Chapter 1 Licensing

809 KAR 1:002 Service provider licensing {#sec-809-kar-1-002 omnilex-key=us-ky-regs-official--title-809--809 KAR 1:002}

Section 1. Definitions.

(1) "Applicant" means a person applying for a service provider license under KRS 230.814.

(2) "Application" means "Initial/Renewal Application for Service Provider License," KHRGC 01-003-01, 06/2023.

(3) "Service provider" is defined by KRS 230.210(30).

(4) "Service provider license" means a license granted to a service provider that has a contract with an operator to provider sports wagering services pursuant to KRS 230.814.

(5) "Substantial owner" means a person who owns five (5) percent or more of the company.

Section 2. Applications for Sports Wagering Service Providers.

(1) Initial applications. An applicant shall apply to the commission for a service provider license pursuant to KRS 230.814.

(2) Renewal applications. A service provider license shall be renewed annually in accordance with KRS 230.814.

(3) An initial or renewal application for a service provider license shall be submitted on the form Initial/Renewal Application for a Service Provider License, KHRGC 01-003-01, 06/2023, pursuant to Section 6 of this administrative regulation.

Section 3. License Fees.

(1) An applicant shall submit the initial fee of $50,000 with an initial application for a service provider license. The initial fee shall not be refundable.

(2) A service provider shall submit the renewal fee of $10,000 with a renewal application for a service provider license. The renewal fee shall not be refundable.

(3) Pursuant to KRS 230.811, the fees in this section shall be deposited into the fund established by KRS 230.817.

Section 4. Licensing Criteria. The corporation shall grant a service provider license if the corporation determines that the applicant's participation as a sports wagering service provider is in the best interests of sports wagering in Kentucky. The corporation shall consider, at a minimum, whether or not the applicant:

(1) Otherwise qualifies to receive a license under KRS Chapter 230;

(2) Has key persons and substantial owners who qualify to receive applicable occupational licenses under 809 KAR 1:003;

(3) In the case of an individual or the applicant's substantial owners, is at least eighteen (18) years of age;

(4) Demonstrates a level of skill, experience, knowledge, and ability necessary to operate as a service provider as required under this administrative regulation;

(5) Was convicted or charged with any offense for a violation of a gaming law in any jurisdiction;

(6) Appears on the exclusion list of any jurisdiction for having violated a rule of gaming;

(7) Has at least one (1) contract to provide services pursuant to KRS 230.814 to a sports wagering operator; and

(8) Or the applicant's substantial owners are in substantial compliance with all state and federal tax laws.

Section 5. Temporary Licensing.

(1) The corporation may grant a temporary license after an applicant submits an initial application if the submitted information is sufficient to determine the applicant's suitability and based on the history, if any, of the applicant for a service provider license or its parent company of offering sports wagering or other gaming in other jurisdictions.

(2) An applicant issued a temporary license pursuant to this administrative regulation or KRS 230.260 shall not be entitled to receive any refund of the fee submitted in connection with the license application.

(3) The commission may change a temporary license issued pursuant to this administrative regulation into an annual license if:

(a) All investigations into the license application are complete;

(b) The corporation is satisfied the holder of a temporary license qualifies to hold an annual license; and

(c) The applicant, its parent company, or affiliate subsidiaries have demonstrated that it is licensed to provide gaming services in at least three (3) other United States gaming jurisdictions.

(4) If the corporation changes a temporary license into an annual license, the date of issuance of the annual license shall be deemed to be the date that the corporation approved the annual license.

(5) A temporary authorization shall expire of its own accord, or it may be suspended, revoked, or summarily suspended. Suspension, revocation, and summary suspension shall be under the same terms and conditions as an annual license.

(6) The temporary license shall not extend beyond one (1) year and shall expire at the end of the calendar year for which it was issued.

Section 6. Application Procedure.

(1) Application procedures for service providers shall be as established in paragraphs (a) through (g) of this subsection.

(a) The commission may deny the application if the applicant makes a material misrepresentation or omission in its application or supporting documentation.

(b) An application shall be deemed filed when the corporation receives the completed application forms, including all additional information that the corporation requires.

An applicant shall submit an original of a fully-executed hard copy application to the commission at the commission's office in Lexington, Kentucky and shall submit the application online at https://khrc.ky.gov/.
An applicant shall submit the application by September 1 of the year immediately preceding the year for which the license is sought.

(d) An applicant shall be under a continuing duty to disclose any changes in the information submitted to the corporation.

(e) Any service provider license holder that enters into or modifies a contract with an operator licensed under 810 KAR 3:010 shall provide notice to the corporation and a copy of the contract within fourteen (14) calendar days.

(f) Any service provider license holder that enters into or modifies a contract with an occupational licensee that is an information services provider shall provide notice to the corporation within fourteen (14) calendar days and, if requested, a copy of the contract.

(g) If a service provider license holder ceases to offer goods and services to an operator licensee, then the service provider shall notify the corporation.

(2) An application for a service provider's license shall include:

(a) The name, address, and legal information of the applicant that allows the corporation to verify the applicant's legal existence, status, and eligibility for a license, including the applicant's:

Business registration details,
Business structure, and
Business identification number.

(b) A Key Employee License Application as required by 809 KAR 1:003, Section 6(3);

(c) A description of all sports wagering services, equipment, devices, and supplies offered for sale or lease by the applicant in connection with sports wagering;

(d) Details regarding the corporate form of the applicant, including the legal structure or type of business applying for the license;

(e) Relevant contracts related to the sports wagering;

(f) Disclosure of any criminal, civil, or administrative action brought against the applicant;

(g) Description of all other licenses held by the applicant;

(h) The applicant's audited financial statements for each of the three (3) fiscal years immediately preceding the application; and

(i) Organizational and ownership charts of the applicant.

(3) Initial applications completed for sports wagering conducted in 2023 may also serve as the renewal application for sports wagering conducted in 2024.

(4) For sports wagering conducted in 2025 and thereafter, an application shall be filed with the corporation prior to November 1 of the preceding calendar year.

Section 7. Duty to Maintain Suitability; Duty to Disclose; Transfer of Ownership Interest.

(1) A service provider shall have a continuing duty to maintain suitability for licensure. A license issued under this administrative regulation does not create a property right but shall be a revocable privilege granted by the corporation contingent upon continuing suitability for licensure.

(2) A service provider shall be responsible for:

(a) Ensuring that all aspects of the sports wagering operation are conducted in accordance with 809 KAR 10:001 through 809 KAR 10:007;

(b) The acts of its employees and agents in the course of their employment; and

(c) Notification of a material change in the information submitted in the application, or a matter that renders the service provider ineligible to hold a service provider license.

(3) A substantial change in ownership shall not occur without prior approval from the commission based on the best interests of sports wagering.

Section 8. Incorporation by Reference.

(1) "Initial/Renewal Application for Service Provider License", KHRGC 01-002-001, 06/2023, is incorporated by reference.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Horse Racing and Gaming Corporation, 4047 Iron Works Parkway, Lexington, Kentucky 40511, Monday through Friday, 8 a.m. to 4:30 p.m. This material may also be obtained at the corporation's Web site at http://khrc.ky.gov.

History

RELATES TO: KRS Chapter 230
STATUTORY AUTHORITY: KRS 230.260, 230.361, 230.811, 230.814
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16) requires the corporation to promulgate administrative regulations to establish standards for the conduct of sports wagering. KRS 230.361 requires the racing corporation to promulgate administrative regulations to establish a fully functioning sports wagering system. KRS 230.811 and 230.814 authorize a licensed service provider to conduct sports wagering in Kentucky. This administrative regulation establishes requirements and guidelines concerning the process by which applications for a service provider license for sports wagering in Kentucky are reviewed and approved.
History: 50 Ky.R. 533, 1317, 1499; eff. 4-2-2024; TAm eff. 7-1-2024.

809 KAR 1:003 Occupational licenses {#sec-809-kar-1-003 omnilex-key=us-ky-regs-official--title-809--809 KAR 1:003}

Section 1. Definitions.

(1) "Annual license" means the occupational license issued by the corporation after a thorough review of an application, valid for the calendar year for which it is applied.

(2) "Applicant" means a person who applies for an occupational license.

(3) "Background check" means a review of an applicant's criminal, financial, and personal history conducted by the corporation.

(4) "Critical component" means any sub-system for which failure or compromise can lead to loss of player entitlements, government revenue, or unauthorized access to data used for generating reports for the regulatory body.

(5) "Fees" mean the administrative charges levied by the corporation for the processing, issuance, and renewal of occupational licenses.

(6) "Licensee" means any individual or entity that has been granted an occupational license by the corporation.

(7) "Occupational license" means the categories of licenses established by the corporation pursuant to Section 6 of this administrative regulation, for participants in sports wagering pursuant to KRS 230.210.

(8) "Race and sportsbook employee license" means a category of occupational license, which is required for all individuals listed in Section 6 of this administrative regulation.

(9) "Temporary license" means a provisional license granted by the corporation during the process of evaluating an application for a permanent license.

Section 2. General Requirements for Applications.

(1) Eligibility: Any individual or entity desiring to participate professionally in sports wagering activities in the Commonwealth shall apply to the corporation for an occupational license as categorized in Section 6 of this administrative regulation. This type of license shall be required for certain persons working in a licensed facility for sports wagering, supervisors of individuals who can influence the outcome of sports wagering, and specific individuals who have the capability to affect the outcome of sports wagering through the deployment of code and other persons required under this KAR Title 809.

(2) Submission timeframe. Applications for licenses shall be submitted annually. Licenses granted shall remain active only for the calendar year for which they have been applied.

(3) Legal compliance. All applicants shall demonstrate compliance with all laws, KAR Titles 809 and 810, and any other regulatory, state, federal, or taxing authority.

(4) Lack of material misrepresentation. All information provided on the application form shall be accurate and complete. Material misrepresentation on the application may result in immediate suspension, revocation, denial of the license, imposition of fines by the corporation, or a combination of license action and fines.

(5) Minimum age. The minimum age requirement for an occupational license in sports wagering shall be eighteen (18) years.

(6) Transparency in entities. If an entity consisting of multiple individuals applies for a license, the entity shall fully disclose the identities and the type of ownership held by all controlling individuals. This information shall include the degree and type of ownership held by each individual in the entity.

(7) Categories of licenses. Different roles within the sports wagering industry may require distinct categories of licenses as established in Section 6 of this administrative regulation.

Section 3. Application Fees.

(1) All required application fees established under this section shall be submitted to the corporation in the form of cash, a certified check, ACH payment, or cashier's check made payable to the corporation.

(2) The following fees shall accompany applications for the following categories of occupational license:

(a) Race and Sportsbook Employee License: $150;

(b) Information Services Provider: $5,000; and

(3) All occupational licenses shall be renewed annually. The renewal fee for each category shall be the same as the initial licensing fee.

(4) If additional costs become necessary to investigate an applicant for a license, the corporation may assess an additional investigation fee based on actual costs. Failure to submit an additional requested payment shall result in suspension of the processing of the license application and may result in denial of the license. The investigative fee shall be based on actual costs and time expended for the investigation. If any portion of the investigative fee remains after the investigation is concluded, the remaining portion shall be returned to the applicant or licensee.

(5) Except as established in subsection (4) of this section, all fees are non-refundable, regardless of whether the application is approved, denied, withdrawn, or if the license is surrendered or revoked.

Section 4. Applications.

(1) Application procedures shall be as established in paragraphs (a) through (f) of this subsection.

(a) An application shall be deemed filed when the corporation has received the completed application forms, including the information that the corporation has required.

(b) Applicants shall submit the application online at https://khrc.ky.gov/ or in hard copy to: The Kentucky Horse Racing Corporation, 4047 Iron Works Parkway, Lexington, Kentucky 40511.

(c) An applicant shall be under a continuing duty to disclose any changes in the information submitted to the corporation.

(d) Any change in information required for licensing shall be submitted in writing and filed at the corporation office: 4047 Iron Works Parkway, Lexington, Kentucky 40511, within thirty (30) days of the change, unless it is information established in paragraph (e) of this subsection.

(e) Alternatively, any change in information may be reported online at KHRC.SportsWagering@ky.gov.

(f) The applicant shall report changes in information in writing within five (5) days of the occurrence for:

Criminal charges;
Criminal convictions;
License denials and license suspensions of ten (10) days or more;
License revocations or fines of $500 or more in other jurisdictions;
Racing related disciplinary charges pending in other jurisdictions; and
Withdrawal, with or without prejudice, of a license application by the licensee in any jurisdiction.

(2) An applicant for a race and sportsbook employee license or an information services provider license shall include with its application, an agreement or statement of intent indicating that a licensed operator or service provider shall utilize the applicant for the provision of goods and services. For 2023 only, the agreement or statement of intent supporting the applicant's claims may come from a person applying for an operator or service provider license.

(3) The application forms shall be accompanied and supplemented by documents and information required by the corporation. Failure to supply the information requested within five (5) days after the request has been made by the corporation shall constitute grounds for delaying consideration of the application.

(4) Renewal applications for licenses may be submitted and may be renewed upon the filing and approval of an application for renewal. Renewal applications for occupational licenses shall be received by the corporation sixty (60) days before the expiration of the current license. Renewal applicants who fail to submit their completed applications when due shall not be considered to have made a timely and sufficient application for renewal.

Section 5. Temporary Licenses.

(1) The corporation shall issue a temporary license in accordance with KRS 230.805.

(2) The corporation may issue the applicant a temporary license if the application and a criminal history check completed by the corporation reveals that the applicant:

(a) Has not been charged or convicted of a felony under state or federal law;

(b) Has not been charged or convicted of a misdemeanor related to gaming; and

(3) A temporary license issued under this section shall include, at a minimum:

(a) The applicant's name and business address;

(b) A temporary license number assigned by the corporation;

(d) The date the temporary license was issued;

(e) The date the temporary license will expire; and

(f) A reference to any conditions placed on the temporary license.

(4) If the corporation grants an annual license to a temporary license holder, the temporary license shall automatically expire upon the start date of the annual license.

(5) A temporary license shall not be transferred without prior approval by the corporation based on the sufficiency of the information submitted to determine the proposed transferee's suitability and the history, if any, of the proposed transferee or its parent company of offering sports wagering or other gaming in other jurisdictions.

(6) Failure to advise the corporation that the applicant has failed to begin or has ceased providing a licensee with goods and services shall be grounds for the corporation to withdraw the temporary license and deny licensure in the future.

Section 6. Categories of Occupational Licenses.

(1) Race and sportsbook employee licenses.

(a) Race and sportsbook employee license holders shall include the following categories of people, except as otherwise established in this section:

Individuals who work directly in a licensed facility for sports wagering regarding the sports wagering aspect of the facility, including sports wagering:

a. Customer service representatives;

b. Ticket writers;

c. Supervisors;

d. Security personnel; and

e. Facility management;

Individuals directly supervising other employees in any licensed Kentucky sports wagering business who have the capability of affecting the outcome of sports wagering;
Employees in any licensed Kentucky sports wagering business who have the capability to affect the outcome of sports wagering through the deployment of code to production for any critical component of a sports wagering system; and
Employees whose duties are performed in the licensed facility for sports wagering that involve money obtained as a result of sports wagering, including the handling of tickets, money, or performing accounting and auditing functions.

(b) The following people shall hold a race and sportsbook employee license, even if they do not work directly in a licensed facility for sports wagering regarding the sports wagering aspect of the facility:

Audit manager;
Chief of security;
Chief of surveillance;
Chief financial officer or controller;
General manager;
Support operations manager;
Change management employees; and
Compliance employee supervisors;
Information technology professionals responsible for maintaining the technology infrastructure of the sports wagering system; and
Any other employee of an operator or service provider whose duties:

a. Are performed in the licensed facility for sports wagering and whose duties affect sports wagering;

b. Affect the flow of money obtained as a direct result of sports wagering operations; or

c. Include accounting and auditing functions and whose duties relate to money obtained as a result of sports wagering.

(c) An employee seeking a race and sportsbook employee license shall submit a completed Race and Sportsbook Employee Application Form, KHRGC 01-003-03, to the corporation's Lexington office or online at https://khrc.ky.gov/Sportsbetting/newappwelcome.

(2) Information services provider licenses.

(a) All business entities that provide information services to sports wagering licensees in Kentucky shall obtain an information services license, such as sports wagering:

Oddsmakers or traders;
Data source;
Risk management;
Player account management; and
Platform providers, including geolocation technology, Know Your Customer, or Sports Wagering Equipment Manufacturer.

(b) To apply for an information services provider license, an applicant shall submit a completed Information Services License Application Form, KHRGC 01-003-01, to the corporation's Lexington office or online at https://khrc.ky.gov/Sportsbetting/newappwelcome.

(3) Key employee licenses.

(a) Each person applying for a license under this administrative regulation that is not an individual shall designate an individual with decision-making authority for its day-to-day operations to apply for a key employee license.

(b) Additionally, a licensed sports wagering business operating in Kentucky shall designate a supervisor for the following areas to apply for a key employee license:

Compliance;
Trading;
Customer Service;
Finance and Audit;
Risk and Payments; and
Information Technology.

(c) An applicant seeking a key employee license shall submit a completed and notarized Multi Jurisdictional Key Employee License Form, KHRGC 01-003-02, along with photo identification, to the corporation's Lexington office or online at https://khrc.ky.gov/Sportsbetting/newappwelcome.

Section 7. Waiver for Race and Sports Book Employee License or Key Employee License.

(1) At any time, an applicant may submit a written request for a waiver to be exempt from licensure to prevent dual licensing for one (1) individual across multiple disciplines. This waiver shall be submitted to the corporation's office in Lexington, Kentucky on form Race & Sportsbook and Key Employee License Waiver Application Form, KHRGC 01-003-04 or online at https://khrc.ky.gov/Sportsbetting/newappwelcome.

(2) The written request for waiver shall include at least the following information:

(a) The name and contact information of the waiver applicant;

(b) All gaming licenses issued to the waiver applicant;

(d) The waiver applicant's current position and job description.

(3) Upon receipt of a waiver request, the corporation may grant or deny a waiver, upon consideration of at least the:

(a) Nature of the employee's duties; and

(b) Best interests and integrity of horse racing, pari-mutuel wagering, and sports wagering.

Section 8. Background Checks. After an applicant files a license application, the corporation may:

(1) Investigate the criminal background, employment history, and gaming history record of the applicant;

(2) Verify information provided by the applicant; or

(3) Engage in research and interviews to determine the applicant's character and qualifications.

Section 9. License Denial, Revocation, or Suspension.

(1) The corporation or its designee shall deny, suspend, or revoke a license, or otherwise penalize in accordance with KRS 230.310, 230.260, or 230.814 a sports wagering licensee, for any of the following reasons:

(a) Lack of suitability as established in KRS Chapter 230;

(b) Adverse effect on public interest, failure to uphold the integrity of the regulatory activities, or engagement in conduct that is otherwise against the best interest of sports wagering, pari-mutuel wagering, or horse racing;

(d) Previous license denial, suspension, or revocation by any authority of any state or federal jurisdiction;

(e) Material misrepresentation, falsification, or omission of information in a license application;

(f) Violation or attempt to manipulate outcomes of regulated activities, such as sports wagering, pari-mutuel wager, or horse racing, in any jurisdiction;

(g) Financial irresponsibility or engagement in actions against the best interest of the regulated activities;

(h) Failure to comply with rulings, orders, or requirements of the corporation, such as failure to cooperate with a corporation investigation;

(i) Misconduct or disorderly behavior on regulated grounds; or

(j) Possession of prohibited substances or devices, or employment of unlicensed personnel.

(2) A license suspension, revocation, or denial shall be reported in writing to the applicant by the corporation or its designee.

(3) Licensees or applicants may appeal the suspension, revocation, or denial. An appeal shall be in accordance with KRS Chapters 13B and 230.

Section 10. Reciprocity. If a person's license has been denied, suspended, or revoked in another jurisdiction, the corporation may require reinstatement of the license in that jurisdiction before a license is granted by the corporation.

Section 11. Changes in Application Information.

(1) Any changes in the information provided by the licensee or applicant required for obtaining or maintaining a license shall be reported to the corporation in writing as established in subsections (2) and (3) of this section.

(2) Changes in information that are not established in subsection (3) shall be reported to the corporation within thirty (30) days of the change occurring.

(3) The licensee or applicant shall report the following changes in information to the corporation in writing within five (5) days:

(a) The licensee or applicant is charged with criminal activity related to sports wagering;

(b) The licensee or applicant is convicted of a crime related to sports wagering;

(c) The licensee or applicant's sports wagering license is denied or suspended for ten (10) days or more in any jurisdiction; and

(d) The licensee or applicant's sports wagering license is revoked or they are fined $500 or more in other jurisdictions.

Section 12. License Identification and Display.

(1) For each issued license, the corporation shall provide an identification badge to individuals or a certificate of licensure to entities.

(2) All individuals working in a licensed facility for sports wagering shall wear an identification badge.

(3) Operators or service providers shall disable the work badge of any person whose license has been revoked or suspended.

(4) Each identification badge or license shall contain essential details, including the licensee's name, license number, date of issuance, and expiration date.

(5) Individual licensees shall wear their identification badges visibly at all times during their working hours in any licensed facility for sports wagering.

(6) If a licensee fails to display his or her badge or license as required, the commission may impose penalties based on individual circumstances, such as the reason the person failed to display his or her badge or license and the number of prior violations. Penalties may include fines, suspension, revocation of the license, or a combination of license action and fines.

(7) Loss, theft, or damage of an identification badge or license shall be reported to the commission immediately. The commission shall provide a process for obtaining replacement badges or licenses under these circumstances.

(8) Any attempt to falsify, alter, or misuse an identification badge or license shall be considered a severe violation and may result in immediate revocation of the license and potential legal action.

Section 13. Incorporation by Reference.

(1) The following material is incorporated by reference:

(a) "Information Services License Application Form", KHRGC 01-003-01, 06/2023;

(b) "Multi Jurisdictional Key Employee License Form", KHRGC 01-003-02, 11/2023;

(d) "Race & Sportsbook and Key Employee License Waiver Application Form", KHRGC 01-003-04, 06/2023.

History

RELATES TO: KRS Chapter 230
STATUTORY AUTHORITY: 230.260(16), 230.310(2)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16) requires the corporation to promulgate administrative regulations to establish standards for the conduct of sports wagering. KRS 230.310(2) requires the corporation to license applicants for occupations related to sports wagering, particularly those who have the capacity to affect the outcome of sports wagering and their supervisors. This administrative regulation establishes occupational licensing application procedures and requirements for a individuals involved in the conduct and management of sports wagering in the Commonwealth.
History: 50 Ky.R. 535, 1320, 1500; eff. 4-2-2024; TAm eff. 7-1-2024.

Chapter 10 Technical Criteria

809 KAR 10:001 Definitions {#sec-809-kar-10-001 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:001}

Section 1. Definitions.

(1) "Abnormal wagering activity" means wagering activity exhibited by one (1) or more patrons and considered by a licensee to be an indicator of suspicious or illegal wagering activity.

(2) "Account holder" means an individual for whom the licensee has opened a sports wagering account.

(3) "Act" means KRS 138.552 and Chapter 230.

(4) "Adjusted gross revenue" is defined by KRS 138.552(1)(a).

(5) "Affiliate" means a person that, owns, controls, manages, or is operationally interdependent with a licensee.

(6) "Amateur youth sporting event" is defined by KRS 230.210(3).

(7) "Applicant" means a person who applies with the racing commission to be an authorized licensee.

(8) "Cancelled wager" means a sports wager that was valid at the time it was made but has since been invalidated in accordance with KAR TITLE 809 due to an event or action that prevents its completion.

(9) "Card" means the list of sporting events and types of wager from which a patron can make selections for a given pool.

(10) "Cash" means U.S. currency.

(11) "Cash equivalent" means an asset convertible to cash for use in connection with authorized sports wagering, including:

(a) Traveler's checks;

(b) Foreign currency and coin;

(d) Personal checks and drafts;

(e) Digital, crypto, and virtual currencies;

(f) Online and mobile payment systems that support online money transfers; and

(g) Electronic devices with "prepaid access", as defined by 31 C.F.R. Section 1010.100(ww).

(12) "Confidential information" means:

(a) The amount of money credited to, debited from, withdrawn from, or present in any particular sports wagering account;

(b) The amount of money wagered by a particular patron on any event or series of events;

(c) The unique sports wagering account ID or username and authentication credentials that identify the particular account holder;

(d) The identities of particular sporting events or types of wagers on which the patron is wagering or has wagered; and

(e) Unless otherwise authorized by the patron, the name, address, and other information in possession of the licensee that would identify the patron to anyone other than the racing commission or the licensee.

(13) "Communications technology" means the methods used and the components employed to facilitate the transmission of information, such as electronic communications, and transmission and reception systems based on wire, cable, radio, microwave, light, optics, or computer data networks or any similar electronic agent, such as the internet and intranets.

(14) "Critical employee" means any employee whose duties directly impact the integrity of sports wagering in the Commonwealth, including:

(a) An individual who has the capability of affecting the outcome of sports wagering through deployment of code to production for any critical components of a sports wagering system;

(b) An individual who can deploy code to production and directly supervises individuals who have the capability of affecting the outcome of sports wagering in Kentucky through deployment of code to production for other than read-only or the equivalent access to any critical components of a sports wagering system;

(c) An individual who directly manages a licensee or who directly supervises an individual who directly manages a licensee; or

(d) An individual in a decision-making or managerial role, who has the capability to directly affect the outcome of a sports wager or a payout to a patron.

(15) "Data source" means a supplier that sells league or event data, participant, or team statistics necessary to enable sports wagering.

(16) "Department" means Department of Revenue.

(17) "Electronic sports", "e-sports", "competitive video game events", and "electronic sporting events" means leagues, competitive circuits, tournaments, or similar competitions in which individuals or teams play video games, typically for spectators, either in-person or online, for the purpose of prizes, money, or entertainment.

(18) "Electronic sporting event operator" means a person or entity that sanctions, manages, or organizes an electronic sporting event.

(19) "Geofence" is defined by KRS 230.210(7).

(20) "GLI-CMP Guide" means the Gaming Laboratories International, GLI-CMP: Change Management Program Guide, Version 1.0, Published May 6, 2020.

(21) "GLI-33 Standards" means the Gaming Laboratories International, GLI-33: Standards for Event Wagering Systems, Version. 1.1, and its appendices, Revised May 14, 2019.

(22) "Integrity monitoring" means the monitoring of sports wagering to identify abnormal or suspicious wagering activities from a match-fixing and sporting corruption standpoint.

(23) "Internal controls," "minimum internal control standards," or "control standards" means a system of internal procedures, as well as administrative and accounting controls related to the integrity of sports wagering. This type of system includes wagering rules and is required by the racing commission as a condition to sports wagering, pursuant to the license conditions issued by the racing commission pursuant to KRS 230.290(3).

(24) "Layoff wager" means a wager placed by a licensee with another licensee for the purpose of offsetting sports wagers.

(25) "Licensed premises" is defined by KRS 230.210(16).

(26) "Licensed facility for sports wagering" is defined by KRS 230.210(15).

(27) "Licensee" means the holder of a sports wagering operator's license, service provider license, or an occupational license as applicable.

(28) "Mobile sports wagering" means the conduct of sports wagering through or by means of Web sites or mobile applications.

(29) "Multi-factor authentication" means a type of authentication that uses two (2) or more of the following to verify a person's identity:

(a) Information known only to the person (for example, a password, pattern, or answers to challenge questions);

(b) An item possessed by a person (for example, an electronic token, physical token, or an identification card); or

(30) "Operator licensee" or "sports wagering operator" or means a Kentucky racing association licensed to conduct sports wagering pursuant to KRS 230.805.

(31) "Person" is defined by KRS 230.210(19).

(32) "Personal identifying information" means any sensitive information that could potentially be used to identify a particular patron, such as a legal name, date of birth, place of birth, social security number (or equivalent government identification number), driver's license number, passport number, residential address, phone number, email address, debit instrument number, credit card number, or bank account number.

(33) "Patron" means a person who wagers on sporting events.

(34) "Pool" means an offering in which patrons can make selections of outcomes on a set number of sporting events and types of wagers on a card in order to enter for a chance to win all or a portion of the prize pool.

(35) "Prize pool" means the prizing available for an individual tournament, contest, or pool.

(36) "Prohibited patron" means:

(a) Any "underage person", as defined by subsection (63) of this section;

(b) Any individual wagering while not in the authorized geographic boundaries within the Commonwealth of Kentucky;

(d) Any restricted patron wagering in violation of their restrictions;

(e) Any voluntarily or involuntarily excluded person; or

(f) Any individual wagering in violation of Commonwealth, local, or federal law.

(37) "Race and sports book" means the area designated by the licensee that is utilized as the primary location for displaying sporting events and offering sports wagering on the licensed premises.

(38) "Racing commission" is defined by KRS 230.210(22).

(39) "Rake" means the fee that is deducted by a licensee from entry fees paid by patrons who participate in a tournament, contest, or pool.

(40) "Rake adjustment" means an adjustment made by a licensee to account for any shortfall in connection with a tournament, contest, or pool.

(41) "Restricted patron" means any patron restricted by KRS 230.820 or 230.823.

(42) "Self-exclusion list" means a list of individuals who voluntarily excluded themselves from establishing or maintaining a sports wagering account with a licensee.

(43) "Sensitive information" means personal identifying information, transactional wagering data, authentication credentials, and other data to be handled in a secure manner such as PINs and passwords and secure seeds and keys used in encryption.

(44) "Service provider" is defined by KRS 230.210.

(45) "Shared liquidity pool" means a tournament, contest, or pool offering in Kentucky and at least one (1) other jurisdiction where patrons can make selections of outcomes on a set number of sporting events and types of wager on a card in order to enter for a chance to win all or a portion of the prize pool.

(46) "Sporting event" is defined by KRS 230.210(26).

(47) "Sports governing body" is defined by KRS 230.210(27).

(48) "Sports wagering" is defined by KRS 230.210(28).

(49) "Sports wagering account" or "account" means an account established by an account holder for use in sports wagering with a specific identifiable record of deposits, wagers, and withdrawals.

(50) "Sports wagering device" is defined by KRS 230.210(29).

(51) "Sports wagering kiosk" means a sports wagering device within a licensed facility for sports wagering that, at a minimum, can be used for the submission of wagers placed by a patron directly and can be used for redemption of applicable awards or prizes.

(52) "Sports wagering service provider" or "service provider" is defined by KRS 230.210(30).

(53) "Sports wagering system" means the hardware, software, firmware, communications technology, and other equipment, as well as procedures implemented in order to allow patron participation in sports wagering, and, if supported, the corresponding equipment related to the display of the wager outcomes, and other similar information necessary to facilitate patron participation.

(54) "Sports wagering ticket" or "ticket" means a printed record, or digital representation thereof, issued by a sports wagering system that contains information pertaining to a sports wager.

(55) "Sports wagering voucher" or "voucher" means a printed record, or digital representation thereof, issued by a sports wagering system that can be used to fund a sports wager or can be redeemable for cash.

(56) "Sufficient clarity" means the capacity of a surveillance system to record images:

(a) At a minimum of twenty (20) frames per second or equivalent recording speed, or other recording speed approved by the commission to clearly identify the intended activity, person, object, or location; and

(b) At a resolution determined by the racing commission to clearly identify the intended activity, person, object, or location.

(57) "Surveillance operation room" means the secured area where surveillance takes place or where active surveillance equipment is located.

(58) "Surveillance system" means a system of video cameras, monitors, recorders, video printers, switches, selectors, and other equipment used for surveillance.

(59) "Suspicious or illegal wagering activity" means abnormal wagering activity that cannot be explained and is indicative of any prohibited activity or conduct that could corrupt the outcome of an event, including:

(a) Match-fixing;

(b) The manipulation of an event;

(d) A potential breach of a sports governing body's or equivalent's internal rules or code of conduct pertaining to sports wagering; or

(e) Any other conduct that corrupts the outcome of an event.

(60) "Supplier" means a person who provides services, goods, software, or other components necessary for the creation of sports wagering markets and determination of sports wager outcomes, to any licensee involved in the acceptance of sports wagers, such as: providers of data feeds and odds services, internet platform providers, risk management providers, and integrity monitoring providers.

(61) "Ticket writer station" means a sports wagering device that at a minimum will be used by a ticket writer for the execution or formalization of wagers placed on behalf of a patron.

(62) "Type of wager" means the form of a wager offered by a licensee, such as single game bets, teaser bets, parlays, over-under bets, money line bets, pools, in-game wagering, in-play bets, proposition bets, and straight bets.

(63) "Underage person" means any person under eighteen (18) years of age.

(64) "Void wager" or "voided wager" means a sports wager that was not valid at the time it was placed or a sports wager that was valid at the time it was placed but has since become invalid as established in 809 KAR 10:002, Section 8.

(65) "Voluntarily excluded person" means any individual whose name is included, at their own request, on a self-exclusion list.

(66) "Wager" or "sports wager" means a sum of money or representation of value that is risked on a sporting event for which the outcome is uncertain.

(67) "Wagering window" means a teller window dedicated to the receipt and processing of sports wagers and pari-mutuel wagers on horse racing in the race and sports book location of a licensed facility for sports wagering.

(68) "Web site or mobile application" means a Web site or application on a mobile phone or other device through which an individual is able to place a sports wager.

(69) "Winnings" means the total cash value of all property or sums, such as the currency or instruments of monetary value paid to a patron by a licensee as a direct result of a winning sports wager.

Section 2. Incorporation by Reference.

(1) The following material is incorporated by reference:

(a) "Gaming Laboratories International, GLI-33: Standards for Event Wagering Systems, Version 1.1, and its appendices, May 14, 2019 Revision Date", KHRC 10-001-1, 06/2023; and

(b) "Gaming Laboratories International, GLI-CMP: Change Management Program Guide, Version 1.0, Published May 6, 2020", KHRC 10-001-02, 06/2023.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Horse Racing Commission, 4063 Iron Works Parkway, Building B, Lexington, Kentucky 40511, Monday through Friday, 8 a.m. to 4:30 p.m.This material may also be obtained at the commission's Web site at http://khrc.ky.gov.

History

RELATES TO: KRS 138.552, Chapter 230, 31 C.F.R. 1010.100(ww)
STATUTORY AUTHORITY: KRS 230.260(16), 230.210
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16) requires the commission to promulgate administrative regulations to establish standards for the conduct of sports wagering. This administrative regulation establishes definitions for terms used throughout the commission's sports wagering administrative regulations.
History: 50 Ky.R. 540; 1324; 1503; eff. 4-2-2024; TAm eff. 7-1-2024.

809 KAR 10:002 Standards for sports wagering {#sec-809-kar-10-002 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:002}

Section 1. Authorized and Prohibited Sporting Events and Types of Wagers.

(1) Sporting events that may be wagered upon shall include those listed in KRS 230.808.

(2) Of those events listed in KRS 230.808, only those categories of sporting events and their types of wager authorized by the corporation in accordance with Section 2 of this administrative regulation and posted on the corporation's Web site may be offered for sports wagering by a licensee.

(3) A wager that complies with the criteria established in paragraphs (a) through (d) of this subsection and that does not involve any criteria listed in subsection (4) of this section shall be approved and shall not need specific approval under Section 2 of this administrative regulation prior to being offered by a licensee. A wager under this subsection shall be based on:

(a) An outcome or outcomes determined because of a sporting event or sporting events sanctioned by a sports governing body or equivalent that is approved by the corporation in the best interests of sports wagering;

(b) Statistical results that can be verified by a data source, box score, aggregation of box scores, or other statistical analysis;

(d) The result of an outcome on the field of play.

(4) A licensee shall not offer sports wagering on:

(a) Any electronic sporting event that:

Is not sanctioned by an approved sports governing body or equivalent; or
Has not been approved by the corporation pursuant to the requirements established in Section 2 of this administrative regulation;

(b) Any occurrence of injuries or penalties;

(d) Any disciplinary proceedings against a participant in a sporting event;

(e) Any amateur youth sporting events in which the majority of participants are under the age of eighteen (18) or are competing on behalf of or under the sponsorship of one (1) or more public or private preschools or public or private elementary, middle or junior high, or high schools;

(f) Any sporting event or type of wager in which the outcome has already been determined and is publicly known;

(g) Any dog or horse races; and

(h) Any categories of sporting event or type of wager until the sporting event or type of wager has been approved by the corporation in accordance with Section 2 of this administrative regulation.

Section 2. Petition for a Category of Sporting Event or Type of Wager. Except as established in Section 1(3) of this administrative regulation, all types of wagers and categories of sporting events shall be reviewed and approved by the corporation before a licensee shall be allowed to offer the wager to the public. A licensee may petition the corporation for approval of a new category of sporting event or type of wager.

(1) A proposed new sporting event or type of wager may be a variation of an authorized sporting event or type of wager, a composite of authorized sporting events or types of wager, or a new sporting event or type of wager.

(2) A petition for a proposed new sporting event or type of wager shall be in writing and shall include the following information or material as requested by the corporation:

(a) The name and address of each petitioner;

(b) The name of the sporting event or type of wager;

(c) If the sporting event or type of wager is a variation of an authorized sporting event or type of wager, a composite of authorized sporting events or types of wager, or a new sporting event or type of wager;

(d) The name of the licensee serving as a sponsor of the new sporting event or type of wager variation petition;

(e) A complete and detailed description of the sporting event or type of wager for which approval is sought, including:

A summary of the sporting event or type of wager and the manner in which sports wagers would be placed and winning sports wagers would be determined;
A draft of the proposed wagering rules, which shall include a description of any technology that would be used to offer the sporting event or type of wager;
Any rules or voting procedures related to the sporting event or type of wager; and
Written attestation that the sporting event or type of wager meets the requirements of subsection (3) of this section;

(f) For the approval of an electronic sporting event, complete information about:

Each proposed location of the electronic sporting event;
The video game used for the electronic sporting event, including the key role of game publishers as creators of the underlying video game;
The electronic sporting event operator, if the electronic sporting event operator is approved to host events by the video game publisher, and if the electronic sporting event operator has any affiliation with the video game publisher;
The manner in which the electronic sporting event is conducted by the electronic sporting event operator, including electronic sporting event rules; and
As required by the corporation, certification from a third party, such as an electronic sporting event operator or game publisher certifying that the electronic sporting event meets all event integrity requirements of the corporation established in KRS Chapter 230 and KAR Titles 809 and 810;

(g) The name of the sports governing body or equivalent; and

(h) A description of the licensee's policies and procedures regarding event integrity.

(3) The type of wager being requested shall meet the following criteria:

(a) The outcome shall be able to be verified;

(b) The outcome shall be generated by a reliable and independent process;

(c) The sporting event generating the outcome shall be conducted in a manner that ensures sufficient integrity monitoring controls exist so that the outcome can be trusted;

(d) The outcome shall not be likely to be affected by any sports wager placed; and

(e) The sporting event shall be conducted in conformity with applicable laws.

(4) The corporation shall approve types of wagers and categories of sporting events. The corporation shall consider the request, all provided materials, and any relevant input from the sports governing body or equivalent, or the conductor of the sporting event, prior to authorizing a sporting event or type of wager.

(5) In the best interests of sports wagering, the corporation may require a test or experimental period before granting final approval to a sporting event or type of wager. The corporation may subject any technology that would be used to offer a sporting event or type of wager to testing, investigation, and approval.

(6) The corporation may grant, deny, limit, restrict, or condition a request made pursuant to this procedure for reasonable cause, in order to ensure the integrity of sports wagering in the Commonwealth. The corporation may issue an order revoking, suspending, or modifying any approval of a sporting event or type of wager granted under this procedure for reasonable cause.

(7) The corporation shall notify all licensees of any additions, deletions, or changes regarding authorized sporting events and types of wager. Once a particular category of sporting event or type of wager is approved for its first use, it may be used on multiple events without further approval. The corporation may issue general approval for licensees to offer wagers on enumerated categories of sporting events and types of wagers.

(8) The corporation shall reserve the right to prohibit the acceptance of any sports wagers and may order the cancellation of sports wagers and require refunds on any sporting event or type of wager for which wagering would be contrary to the public policies of the Commonwealth.

(9) If it is determined that a licensee has offered an unauthorized or prohibited sporting event or type of wager, the licensee shall immediately cancel and refund all sports wagers associated with the unauthorized or prohibited sporting event or type of wager. the licensee shall notify the corporation immediately after cancelling and refunding the sports wagers. This notice shall include, without limitation, which sports wagers were cancelled or refunded and the reasons for the cancellations or refund.

(10) The corporation may use any information it considers appropriate, such as information received from a sports governing body or equivalent, to determine whether to authorize or prohibit wagering on a particular sporting event or type of wager, consistent with industry standards.

(11) The corporation may restrict, limit, or exclude a certain type, form, or category of sports wagering if the corporation determines that the restriction, limitation, or exclusion is necessary to ensure the integrity of the licensee.

Section 3. Limitations on Certain Sports Wagering for Good Cause. A sports governing body may submit a request to the corporation to restrict, limit, or exclude a certain type, form, or category of sports wagering pursuant to KRS 230.808.

(1) The sports governing body shall provide the corporation with notice of a request to restrict, limit, or exclude a certain type, form, or category of sports wagering, which shall contain information required by the corporation, including:

(a) The identity of the sports governing body and contact information for at least one (1) specific individual who will be the primary point of contact for questions related to the request;

(b) A description of the sports wagering information, event, or wager type that is the subject of the request; and

(c) Information explaining why granting the request is necessary to protect the integrity of the event, or public confidence in the integrity of the event, that is the subject of the request. This may include information regarding any credible threat to the integrity of the event that is beyond the control of the sports governing body to preemptively remedy or mitigate.

(2)

(a) The request shall be sent to the corporation at least ten (10) calendar days before the particular sporting event.

(b) At any time a sports governing body shall report information to the corporation if the information involves allegations of prohibited activity, such as match-fixing, the manipulation of an event, or misuse of inside information.

(3) The corporation shall request comment from licensees on all requests made under subsection (1) of this section. The request for comment shall include the date by which written comments shall be submitted to the corporation.

(4) Pursuant to the criteria established in KRS 230.808, the corporation shall grant, provisionally grant, or deny the request.

(5) The corporation may reconsider its decision if there is a material change in the circumstances related to the original request.

Section 4. Data Sources for Sports Wagering. A licensee shall report to the corporation in its sports wagering license application, incorporated by reference in KAR Title 809 or 810 KAR 3:010, the data source or sources that it uses to resolve sports wagers. The corporation may disapprove of a data source for any reason in the best interest of sports wagering integrity.

(1) The data source and corresponding data shall be complete, accurate, reliable, timely, and available.

(2) The data source shall be appropriate to settle the category of sporting events and types of wagers for which it is used.

Section 5. Wagering Rules. The licensee shall adopt comprehensive wagering rules, which shall be approved by the corporation as established in subsection (2) of this section.

(1) The wagering rules shall be conspicuously displayed on the licensee's Web site or mobile application and within the race and sports book location, and copies shall be made readily available to individuals and patrons. Licensees may elect to display copies of comprehensive wagering rules solely in electronic form on sports wagering kiosks, if the licensees make hard copies of the wagering rules readily available to individuals and patrons or display corporation-approved short-form wagering rules, as established in subsection (2) of this section, in race and sports book locations.

(2) The wagering rules shall comply with GLI-33 Standards and shall state the amount to be paid on winning wagers and the effect of schedule changes.

(3) The licensee shall not implement any changes or modifications of the practices, procedures, or representations upon which the approval of wagering rules was based without the prior approval of the corporation. Failure by a licensee to act in accordance with its approved wagering rules may result in disciplinary action.

Section 6. Tournaments, Contests, and Pools.

(1) A sports wagering tournament, contest, or pool shall not be conducted unless the licensee, before the first time a tournament, contest, or pool type is offered, files written notice with the corporation of the licensee's intent to offer that tournament, contest, or pool type and obtains approval from the corporation in the best interests of sports wagering. The licensee may file a master list with the corporation to satisfy this requirement.

(2) The request shall provide a detailed description of the tournament, contest, or pool type and shall include the rules of the tournament, contest, or pool, the requirements for entry, the entry fees, the rake, and potential payouts. The request shall also indicate if the proposed type involves a shared liquidity pool available to patrons in Kentucky and other jurisdictions with the prize pool being comprised of entry fees collected from patrons in multiple jurisdictions.

(3) The request shall be submitted to the corporation in writing via electronic mail. All requests shall be submitted at least ten (10) business days prior to start date of the tournament, contest, or pool.

(4) Once a licensee receives approval to offer a tournament, contest, or pool type, the licensee shall not be required to seek additional approvals from the corporation for each subsequent type that has only minor variations, such as to the size, number of entries permitted, entry fee, rake, or prize structure.

(5) Each licensee shall maintain a record of each tournament, contest, or pool it offers for at least five (5) years. These records shall include the:

(a) Name or identification of the tournament, contest, or pool;

(b) Date and time the tournament, contest, or pool occurred or will occur (if known);

(d) Rules concerning tournament, contest, or pool play and participation; and

(e) For each patron:

Unique patron identification;
Amount of entry fee collected, including any promotional or bonus credits, and the date collected;
Patron scorings or rankings; and
Amount of payouts paid, including any promotional or bonus credits and the date paid;

(f) Total amount of entry fees collected, including any promotional or bonus credits;

(g) Total amount of payouts paid to patrons, including any promotional or bonus credits;

(h) Total rake, takeout, or fees collected;

(i) Funding source amount or amounts comprising the prize pool, such as buy-ins, re-buys, or add-ons;

(j) Prize structure on payout;

(k) Methodology for determining winner or winners; and

(l) The current status of the tournament, contest, or pool, such as if the event is in-progress, complete, interrupted, cancelled.

(6) The licensee shall be responsible for the rake. At no time shall the calculation resulting from a rake or rake adjustment be negative.

(7) For a contest, tournament, or pool that utilizes shared liquidity available to patrons in Kentucky and other jurisdictions, the rake rate shall be the same for all jurisdictions participating.

Section 7. Acceptance of Wagers.

(1) A licensee shall comply with GLI-33 Standards in accepting wagers.

(2) A licensee shall not set lines or odds or offer wagering propositions designed for the purposes of ensuring that a patron will win a sports wager or a series of sports wagers, unless the lines, odds, or wagering propositions are offered in connection with a promotion or bonus conducted in accordance with Section 9 of this administrative regulation.

(3) A Licensee shall not accept a sports wager on a sporting event unless a wagering proposition is posted by electronic or manual means.

(4) Sports wagers may only be made by patrons using forms of payment approved by the corporation including:

(a) Cash;

(b) Cash equivalents converted to cash;

(d) Electronic funds transfers (EFTs), including automated clearing house and other electronic methods;

(e) Promotional or bonus credit;

(f) Winning sports wagering tickets or vouchers; and

(g) Funds within a sports wagering account.

(5) The licensee shall debit the amount wagered by a patron from the patron's sports wagering account. Wagers shall not be accepted in an amount in excess of a sports wagering account balance.

(6) A licensee shall not accept a sports wager from a person on the sports wagering account of or for any other person.

(7) The licensee shall operate and communicate with the sports wagering system in a way that does not provide or facilitate a wagering advantage based on access to information and processing of mobile sports wagers by account holders relative to patrons who wager at a licensed premises.

Section 8. Cancelled or Voided Wagers. Wagers shall not be cancelled or voided without prior approval of the corporation based on the best interests of sports wagering, unless the wagers are cancelled or voided by an authorized supervisory employee of the licensee, in accordance with GLI-33 standards and this section.

(1) A licensee shall cancel or void a sports wager under the circumstances established in paragraphs (a) through (i) of this subsection. The licensee need not obtain prior authorization of the corporation to cancel or void the sports wager under these circumstances:

(a) Any sports wager in which after a patron has placed a sports wager, the sporting event is cancelled, postponed, or rescheduled to a different date prior to completion of the sporting event.

In the case of a sports wager on a portion of a sporting event, that wager shall be valid when the event is canceled, postponed, or rescheduled if the outcome of the affected portion was determined prior to the cancelation, postponement, or rescheduling; or
A licensee may establish a timeframe in which an event may be rescheduled or postponed without canceling the sports wager. This timeframe shall be tied to specific sporting events, with the approval of the corporation, and documented in the internal controls;

(b) A change in the venue where a sporting event was scheduled to be held occurs after a patron has placed a sports wager and the licensee cancels or voids the sports wager prior to the commencement of the sporting event;

(c) Any sports wager in which an athlete fails to participate in a sporting event and the outcome of the wager is solely based upon that athlete's performance;

(d) Any sports wager received for an act, or set of acts, to be performed during a sporting event in which the act does not occur and the ability to wager on the non-occurrence of the event was not offered;

(e) Any wager received on if a team will qualify to participate in post-season competitions if the number of teams allowed to participate in the post-season changes after a patron has placed a wager;

(f) Changes to rules are made by a sports governing body or equivalent regarding the format or number of participants scheduled to participate in a defined phase of a sporting event or that particular phase is not played at all;

(g) If the licensee has reasonable basis to believe there was an obvious error in the placement or acceptance of the wager, including:

The wager was placed with incorrect odds;
Human error in the placement of the wager; or
Any other obvious error specifically included in the licensee's internal controls.

(h) If a patron requests a sports wager be cancelled or voided prior to the commencement of the sporting event due to an error in communicating the type, amount, or parameters of the sports wager; or

(i) If authorized or ordered by the corporation pursuant to this section.

(2) A licensee may cancel or void a sports wager for a material change in circumstances for a given sporting event or type of wager, if:

(a) The licensee documents the material change in its internal controls; and

(b) The licensee displays what constitutes a material change to a patron at the time of placement of the sports wager;

(3) For all circumstances that are not established in subsection (1) of this section, a licensee may request the corporation authorize the cancellation or voiding of all sports wagers of a specific type, kind, or subject. A licensee shall submit its request to cancel or void the sports wager in writing, and the request shall contain:

(a) A description of the type, kind, or subject of sports wager the licensee is requesting to cancel or void;

(b) A description of any facts relevant to the request; and

(c) An explanation why cancelling or voiding the sports wager is in the best interests of the Commonwealth or ensures the integrity of the sports wagering industry.

(4) The corporation shall issue a written order granting or denying the request to cancel or void the sports wager. In determining whether to grant or deny the request, the corporation shall consider at least the following factors:

(a) If the alleged facts implicate the integrity of the sporting event subject to the wager or the sports wagering industry;

(b) If the alleged facts implicate possible illegal activity relating to the sporting event or the sports wagering industry;

(d) If allowing the wager is contrary to public policy.

(5) A sports wager subject to the request to cancel or void shall not be redeemed, cancelled, or voided, until the corporation or its designee issues an order granting the request to cancel.

(6) If the corporation or its designee grants the request to cancel or void, the licensee shall make commercially and technologically reasonable efforts to notify patrons of the cancellation or voiding of the sports wager.

(7) The corporation has discretion to order all licensees to cancel or void all wagers on a specific sporting event or wagers of a specific type or kind on a specific sporting event. In exercising its discretion, the corporation shall apply the same factors established in subsection (1) of this section.

(8) A patron may request that the corporation or its designee review any sports wager declared cancelled or voided by a licensee. If the corporation or its designee concludes the canceling or voiding of the sports wager did not conform with this administrative regulation, the corporation or its designee may order the licensee to honor the sports wager.

(9) A sports wager shall not be declared canceled or voided without the approval of an authorized supervisory employee of the licensee pursuant to the licensee's internal controls, unless the corporation or its designee has issued an order requiring the sports wager to be canceled or voided.

(10) If a sports wager is declared canceled or voided, the sports wager shall be refunded to the patron and that amount shall be deducted from the adjusted gross revenue.

Section 9. Promotional or Bonus Wagering. A licensee may conduct sports wagering promotions or bonuses. Promotions or bonuses shall be conducted in accordance with this section.

(1) Procedures for the issuance, acceptance, and tracking of promotions or bonuses shall be included in the licensee's internal controls.

(2) A licensee shall maintain a record of all promotions or bonuses related to sports wagering to facilitate the corporation's tracking of promotional or bonus activity, which shall address the:

(a) Unique ID for each promotion or bonus;

(b) Date and time the promotion or bonus was or is scheduled to be available;

(d) Total amount of promotional or bonus awards issued;

(e) Total amount of promotional or bonus awards redeemed;

(f) Total amount of promotional or bonus awards expired;

(g) Total amount of promotional or bonus award adjustments;

(h) Current status of the promotion or bonus (such as active, disabled, or decommissioned); and

(i) Date and time the promotion or bonus was or is scheduled to be decommissioned.

(3) All promotion or bonus rules shall be full, accurate, concise, transparent, and shall not contain misleading information. Promotion or bonus rules shall be readily accessible by the patron and provide unambiguous notice of the:

(a) Date and time the promotion or bonus is active and expires;

(b) Rules of play;

(d) Eligibility restrictions or limitations;

(e) Wagering and redemption requirements, which shall include a description of any limitations;

(f) Patron notification procedure if they have received an award;

(g) Order in which funds are used for wagers;

(h) Eligible events or wagers; and

(i) Cancellation requirements.

(4) Promotions or bonuses shall not be described as free or risk-free if those promotions or bonuses require the patron to incur any loss or risk the patron's own money to use or withdraw winnings from the free wager.

(5) A licensee shall provide a clear and conspicuous method for a patron to cancel their participation in a promotion or bonus that utilizes restricted wagering credits that cannot be cashed out until a wagering requirement or other restriction associated with the credits is met.

(a) Upon request for cancellation, the licensee shall inform the patron of the amount of unrestricted funds that will be returned upon cancellation and the value of restricted wagering credits that will be removed from the sports wagering account.

(b) If a patron elects to proceed with cancellation, unrestricted funds remaining in a patron's sports wagering account shall be returned according to the rules of a promotion or bonus.

(6) Once a patron has met the terms of a promotion or bonus, a licensee shall not limit winnings earned while participating in the promotion or bonus.

History

RELATES TO: KRS Chapter 230
STATUTORY AUTHORITY: KRS 230.260(16), 230.361, 230.808
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16) requires the corporation to "promulgate administrative regulations to establish standards for the conduct of sports wagering." KRS 230.361 states the "corporation shall promulgate administrative regulations to establish a fully functioning sports wagering system...." KRS 230.808 lists the categories of sporting events that may be wagered upon and allows a sports governing body to submit a request to the corporation to restrict, limit, or exclude a type, form, or category of sports wagering. This administrative regulation establishes standards for sports wagering in Kentucky, including authorized and prohibited sporting events and types of wagers and data sources for sports wagering.
History: 50 Ky.R. 543, 1327; 1505; eff. 4-2-2024; TAm eff. 7-1-2024.

809 KAR 10:003 Technical requirements and oversight {#sec-809-kar-10-003 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:003}

Section 1. Sports Wagering Standards. A licensee shall use a sports wagering system to offer, conduct, or operate sports wagering in accordance with KRS Chapter 230 and KAR Titles 809 and 810. Only an approved licensee may process, accept, offer, or solicit sports wagers.

(1) The licensee shall operate in conformity with the license conditions issued by the corporation pursuant to KRS 230.290(2) and (3) and GLI-33 Standards.

(2) A sports wagering system shall meet the requirements established in subsection (1) of this section and KAR Title 809. Failure to comply with the requirements, internal controls, or technical specifications may result in disciplinary action by the corporation.

Section 2. Testing and Certification of Sports Wagering System. Prior to conducting sports wagering and annually thereafter, the sports wagering system utilized by the licensee shall be submitted to an independent testing laboratory approved by the corporation in the best interests of sports wagering for certification testing. Certification and corporation approval shall be received prior to the use of any sports wagering system to conduct sports wagering. The licensee shall be responsible for all costs associated with testing and obtaining of certifications.

(1) To obtain a temporary license, a licensee may submit to the corporation a certification report of an independent testing laboratory of a system in operation in another jurisdiction in the United States where the licensee is currently licensed or permitted. The report shall certify the system to either the GLI-33 Standards or a standard deemed to be the equivalent of the GLI-33 Standards. This alternative certification report shall include a list of all critical files and associated signatures and an appendix that lists the differences of any controlled items or processes required to be certified in Kentucky which were not certified in the jurisdiction in which the report was issued. Upon review of the certification report, the corporation shall make a determination on whether to accept the certification or require additional information, documentation, or testing.

(2) Unless otherwise authorized by the corporation, the independent testing laboratory shall be provided access to the sports wagering system's controlled software source code, along with the means to verify compilation of the source code. The result of the compiled source code shall be identical to that in the software submitted for evaluation.

(3) If the sports wagering system meets or exceeds the GLI-33 Standards and the corporation's requirements in KAR Title 809, the independent testing laboratory approved by the corporation in the best interests of sports wagering shall certify the sports wagering system. Licensees shall not offer sports wagering in Kentucky without certification.

Section 3. Integration Requirements. The licensee shall be responsible for sports wagering offered by the licensee through other service providers and suppliers and other licensees if applicable.

(1) The servers and equipment of service providers and suppliers shall be considered part of the licensee's sports wagering system and shall comply with these regulations.

(2) The licensee shall guarantee that any integration with the servers and other equipment of another licensee is completed in a way that complies with KAR Title 809.

(3) An independent testing laboratory shall conduct integration testing and certification for each critical server and other equipment with the licensee's sports wagering system prior to its deployment and as requested by the corporation.

Section 4. Change Management Processes. The licensee shall submit change management processes to the corporation for approval pursuant to subsection (1) of this section. The change management processes shall include evaluation procedures for identifying the criticality of updates and determining which updates shall be submitted to the approved independent testing laboratory for review and certification.

(1) Change management processes shall be:

(a) Developed in accordance with the Kentucky Horse Racing and Gaming Corporation license conditions issued by the corporation pursuant to KRS 230.290(3) and the GLI-CMP Guide;

(b) Approved by the corporation prior to its deployment in accordance with this administrative regulation; and

(2) Quarterly change reports shall be issued to the corporation for review to ensure risk is being assessed according to the change management processes and all documentation for all changes to the critical components is complete.

(3) At least once annually, each product operating under the approved change management processes shall be fully certified to comply with KAR Titles 809 and 810 and other technical conditions in accordance with KRS 230.290(3) and shall be accompanied by formal certification documentation from an independent testing laboratory. The licensee may seek approval for an extension beyond the annual approval if hardship can be demonstrated. Granting of a hardship waiver shall be at the sole discretion of the corporation, upon written proof of good cause by the licensee.

Section 5. Geolocation Requirements. Mobile sports wagers shall be initiated, received, and otherwise placed in the authorized geographic boundaries within the Commonwealth of Kentucky.

(1) The licensee shall use geolocation or geofencing technology pursuant to KRS 230.805 and to monitor and block unauthorized attempts to place sports wagers if an individual or patron is physically outside the authorized geographic boundaries within the Commonwealth of Kentucky at the time the sports wager is placed.

(2) The licensee shall trigger:

(a) A geolocation check prior to the placement of the first wager after login or upon a change of IP address;

(b) Recurring periodic geolocation checks as follows:

For static connections, at least every twenty (20) minutes or five (5) minutes if within one (1) mile of the border; and
For mobile connections, at intervals to be based on a patron's proximity to the border with an assumed travel velocity of seventy (70) miles per hour or a demonstrated average velocity of a roadway/path, not to exceed twenty (20) minutes.

(3) Mechanisms shall be in place to detect software, programs, virtualization, and other technology that could obscure or falsify the patron's physical location for the purpose of placing sports wagers.

(4) The geolocation services used by the licensee shall be certified by an authorized, independent testing laboratory approved by the corporation in the best interests of sports wagering. The corporation may conduct applicable field testing upon certification.

(5) The corporation may enter into agreements with other jurisdictions or entities to facilitate, administer, and regulate multi-jurisdictional sports wagering by licensees pursuant to KRS 230.805.

Section 6. Data Security. A licensee's data security policies shall comply with KRS 230.805. Nothing in this section shall preclude the use of internet or cloud-based hosting of data and information or disclosure as required by Commonwealth or federal law or a court order.

Section 7. Location of Servers, Security, and Cloud Storage. A licensee shall maintain in secure locations in the Commonwealth its primary servers used to transmit information for purposes of accepting or settling of wagers on a sporting event placed by patrons in the Commonwealth.

(1) The location of all other technology and servers used by a licensee in connection with sports wagering shall be approved by the corporation in the bests interests of sports wagering and shall be accessible by the corporation.

(2) The corporation, based on good cause identified by the licensee, may approve of the use of internet or cloud-based hosting of duplicate data or data not related to transactional wagering data upon written request of a licensee.

Section 8. Integrity and Security Assessments. Each licensee shall run integrity and security assessments that comply with GLI-33 Standards.

(1) Each licensee shall, within ninety (90) calendar days after commencing operations in Kentucky and annually thereafter, have integrity and security assessments of the sports wagering system conducted by a third-party contractor experienced in security procedures, including, without limitation, computer security and systems security. The third-party contractor shall be selected by the licensee and shall be subject to approval of the corporation in accordance with subsection (3) of this section. Integrity and security assessments shall include a review of:

(a) Network vulnerability;

(b) Application vulnerability;

(d) Wireless security;

(e) Security policy and processes;

(f) Security and privacy program management;

(g) Technology infrastructure and security controls;

(h) Security organization and governance; and

(i) Operational effectiveness.

(2) The scope of the integrity and security assessments shall be subject to approval of the corporation and shall be based on:

(a) A vulnerability assessment of all digital platforms, Web sites, mobile applications, internal, external, and wireless networks with the intent of identifying vulnerabilities of all devices, the sports wagering systems, and applications transferring, storing, or processing personally identifiable information or other sensitive information connected to or present on the networks;

(b) A penetration test of all digital platforms, Web sites, mobile applications, internal, external, and wireless networks to confirm if identified vulnerabilities of all devices, the sports wagering systems, and applications are susceptible to compromise;

(c) A review of the firewall rules to verify the operating condition of the firewall and the effectiveness of its security configuration and rule sets performed on all of the perimeter firewalls and the internal firewalls;

(d) A security control assessment conducted in accordance with the provisions established in KAR Title 809, including the technical security controls established within the GLI-33 Standards, and with generally accepted professional standards.

(e) If a cloud service provider is in use, an assessment performed on the access controls, account management, logging and monitoring, and over security configurations of their cloud tenant; and

(f) An evaluation of information security services, payment services such as financial institutions and payment processors, geolocation services, and any other services that could be offered directly by the sports wagering licensee or involve the use of service providers.

(3) To qualify as a third-party contractor, the third-party contractor shall demonstrate to the corporation's satisfaction, at minimum:

(a) Relevant education background or in other ways provide relevant qualifications in assessing sports wagering systems;

(b) Certifications sufficient to demonstrate proficiency and expertise as a network penetration tester by recognized certification boards, either nationally or internationally; and

(4) The third-party contractor's full security audit report containing the overall evaluation of sports wagering in terms of each aspect of security shall be provided to the corporation no later than thirty (30) calendar days after the assessment is conducted and shall include the:

(a) Scope of review;

(b) Name and company affiliation, contact information, and qualifications of the individual or individuals who conducted the assessment;

(d) Findings;

(e) Recommended corrective action, if applicable; and

(f) Licensee's response to the findings and recommended corrective action, if applicable.

(5) The licensee may reuse the results of prior assessments within the past year conducted by the same third-party contractor if the testing was conducted pursuant to accepted industry standards, such as International Organization for Standardization ("ISO")/International Electrotechnical Commission ("IEC") standards, the NIST Cybersecurity Framework ("CSF"), the Payment Card Industry Data Security Standards ("PCI-DSS"), or the equivalent. Reuse shall be noted in the third-party contractor's security audit report. This reuse option shall not include any critical components of a sports wagering system unique to the Commonwealth that will require fresh assessments.

(6) If the third-party contractor's security audit report recommends corrective action, the licensee shall provide the corporation with a remediation plan and any risk mitigation plans that state the licensee's actions and schedule to implement the corrective action.

(a) The remediation and risk mediation plans shall be presented within a time period established by the corporation, which shall be based on at least the:

Severity of the problem to be corrected;
Complexity of the problem to be corrected; and
Risks associated with the problem to be corrected.

(b) After considering the factors established in paragraph (a)1. through 3. of this subsection and in the best interests of sports wagering, the corporationmay require suspension of operations until implementation of any critical corrective action.

(c) Once the corrective action has been taken, the licensee shall provide the corporation with documentation evidencing completion.

Section 9. Quarterly Vulnerability Scans. Internal and external network vulnerability scans shall be run at least quarterly and after any significant change to the sports wagering system or network infrastructure.

(1) Testing procedures shall include protocol verifying that four (4) quarterly internal and external scans took place in the past twelve (12) months and that re-scans occurred until all "Medium Risk" (CVSS 4.0 or Higher) vulnerabilities were resolved or accepted via a formal risk acceptance program. Internal scans shall be performed from an authenticated scan perspective. External scans may be performed from an uncredentialed perspective.

(2) The quarterly scans shall be performed by either a qualified employee of the licensee or a qualified third-party contractor selected by the licensee and subject to approval of the racing commission pursuant to Section 8(3) of this section.

(3) Verification of scans shall be submitted to the racing commission on a quarterly basis and within thirty (30) calendar days of running the scan. The scan verifications shall include a remediation plan and any risk mitigation plans for those vulnerabilities not able to be resolved. The commission may, in accordance with Section 8(6)(a)1. through 3. of this administrative regulation and in the best interests of sports wagering, impose disciplinary action in the event of critical unresolved vulnerabilities or vulnerabilities that continue unabated.

History

RELATES TO: KRS Chapter 230
STATUTORY AUTHORITY: KRS 230.260(16), 230.805, 230.811(2)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16)(a) requires the corporation to promulgate regulations to establish standards related to sports wagering, including standards for "maintaining and auditing books and financial records, securely maintaining records of bets and wagers, integrity requirements for sports wagering and related data, . . . surveillance and monitoring systems, and other reasonable technical criteria related to conducting sports wagering." KRS 230.811(2) requires tracks and service providers to "comply with the standards established by the corporation . . . to ensure the integrity of the system of sports wagering." KRS 230.805 establishes requirements for geolocation, technology, and servers. This administrative regulation establishes the technical standards for sports wagering technology within the state, establish testing procedures, as well the handling of changes in sports wagering technology.
History: 50 Ky.R. 547; 1332; 1509; eff. 4-2-2024; TAm eff. 7-1-2024.

809 KAR 10:004 Sports wagering accounts {#sec-809-kar-10-004 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:004}

Section 1. Sports Wagering Account Requirements. Patrons shall register their sports wagering accounts with the licensee pursuant to KRS 230.805. Licensees shall adopt account registration policies pursuant to KRS 230.805. All account registration policies shall be subject to approval by the corporation pursuant to KAR Titles 809 and 810. Nothing in this section shall be interpreted to prohibit the licensee from accepting anonymous wagers by a sports wagering device within the licensed premises.

(1) An account shall only be established in the name of an account holder who is a natural person and shall not be in the name of any beneficiary, custodian, joint trust, corporation, partnership, or any other entity.

(2) A licensee shall collect the following personally identifiable information from each account holder through the sports wagering system:

(a) The account holder's full legal name;

(b) The account holder's date of birth;

(c) The account holder's Social Security number, or the last four (4) digits of the Social Security number, or an equivalent government identification number for a noncitizen, such as a passport or taxpayer identification number; and

(d) All data required by KRS 230.805.

(3) During the sports wagering account registration process, the licensee shall:

(a) Deny patrons the ability to register for account if they submit a birth date that indicates that they are an underage person; and

(b) Inform the patron on the account application:

Which information fields are "required";
Which information fields are not required; and
The consequences of not filling in the required fields.

(4) During the sports wagering account registration process, patrons shall:

(a) Agree to the terms and conditions and privacy policies of the licensee;

(b) Acknowledge that the patron is prohibited from:

Transferring or selling an account or account balance;
Using any technology that could obscure or falsify the account holder's physical location for the purpose of placing sports wagers;
Allowing any unauthorized person to access or use their account; and
Any form of collusion, cheating, or other unlawful activity.

(d) Attest that:

The account holder meets all eligibility requirements to place a wager with a licensee in this Commonwealth; and
The personally identifiable information the account holder is providing to open the account is accurate; and

(e) Authorize the provision of notices and other required communications either through a designated mobile or other interface or to an electronic mail address designated by the account holder.

(5) A licensee shall maintain an electronic patron file, which shall include for each sports wagering account:

(a) Unique sports wagering account ID and username (if different);

(b) The information established in subsection (2) of this section to register an account holder and create the account;

If applicable, the licensee shall maintain the document number of the government-issued identification credential examined and its date of expiration.
If a government-issued identification credential is not required for registration, the electronic record that details the process used to confirm the account holder's identity shall be recorded.

(d) The date of account holder agreement to the terms and conditions and privacy policies;

(e) Previous sports wagering accounts, if any, and reason for de-activation;

(f) The date and method from which the sports wagering account was registered;

(g) The date and time a sports wagering account is accessed by any person;

(h) The IP address at which a sports wagering account is accessed by any person;

(i) A history of financial transactions, including deposits, withdrawals, and account adjustments;

(j) Account details and current balance, including any incentive credits. All restricted wagering credits and unrestricted funds that have a possible expiration shall be maintained separately; and

(k) The current status of the sports wagering account (for example, active, dormant, closed, suspended, and excluded).

(6) The following information maintained as part of the electronic patron file shall be stored in encrypted form:

(a) The account holder's government identification number, or portion thereof;

(b) The account holder's previous and current password, PIN, or other authentication credential; and

(c) The account holder's previous and current debit instrument number, credit or debit card number, bank account number or other personal financial information.

(7) A licensee may allow the account holder to update authentication credentials, registration information and the account used for financial transactions. A multi-factor authentication process shall be employed for these purposes.

Section 2. Age and Identity Verification. The licensee shall comply with KRS 230.805. The licensee shall also adopt commercially and technologically reasonable policies and procedures to verify and authenticate the age and identity of each account holder.

(1) Only eligible persons may create a sports wagering account, deposit funds, or participate in sports wagering. The licensee shall make commercially and technologically reasonable efforts to deny the ability to create a sports wagering account, deposit funds, or participate in sports wagering to any prohibited patron. This section shall not be construed to prevent a restricted patron from creating a sports wagering account and depositing funds into an account even if the patron is prohibited from placing certain wagers.

(2) At the time of account establishment, the licensee shall employ electronic verification with respect to:

(a) All information required by KRS 230.805;

(b) Each account holder's government identification number or portion thereof.

(3) The electronic verification information shall be verified by a licensed information services provider.

(4) The following data shall be verified before account holders may initiate activity including deposits, withdrawals, and wagering:

(a) Items that require an exact match:

The account holder's last name;
The account holder's date of birth;
The account holder's government identification number, or portion thereof; and

(b) Items that permit flexible match for common interpretations of names and abbreviations used in the address fields, including the account holder's first name.

(5) Reasonable measures shall be taken to ensure the person providing identity information is truly the owner of the identity before an account holder may initiate any activity including deposits, withdrawals, and wagering. One (1) of the following methods, or another method approved by the corporation in accordance with contemporary industry standards, shall be required:

(a) Correctly answer three (3) dynamic knowledge-based questions compiled from public and private data, such as public records, credit reports, marketing data, and other recorded facts;

(b) Verification that the account holder's phone number or e-mail address matches the information provided by the account holder; or

(6) The licensee may refuse to establish an account if it is found that any of the information supplied is false or incomplete or for any other reason the licensee deems sufficient.

(7) A licensee shall use commercially available and demonstrable standards to confirm that an individual attempting to create a sports wagering account is not prohibited from placing a wager.

(8) A licensee shall immediately re-verify an account holder's identification upon reasonable suspicion that the account holder's identification has been compromised.

Section 3. Limitation to One (1) Account per Account Holder. Except as established in subsection (4) of this section, a licensee shall use all commercially and technologically reasonable means to ensure that each individual is limited to one (1) sports wagering account with that licensee in the Commonwealth.

(1) The licensee shall implement procedures to terminate all accounts of any account holder that establishes or seeks to establish more than one (1) username or more than one (1) account, whether directly or by use of another person as proxy.

(2) Procedures may allow an account holder that establishes or seeks to establish more than one (1) username or more than one (1) account to retain one (1) account if the licensee investigates and makes a good-faith determination that the account holder's conduct was not intended to obtain a competitive advantage.

(3) This section shall not be construed to prevent an individual from holding other sports wagering accounts in other jurisdictions.

(4) If an operator licensee has contracted with multiple service provider licensees to offer mobile sports wagering on its behalf, individuals may have one (1) sports wagering account with each service provider licensee offering mobile sports wagering.

Section 4. Terms and Conditions and Privacy Policies for Sports Wagering Accounts. All terms and conditions and privacy policies for sports wagering accounts shall be maintained in a separate, easily accessible repository that shall be reviewed by the corporation. These documents shall be readily accessible to the account holder before and after registration. Material updates to these terms and conditions and privacy policies shall trigger immediate notification to the licensee's internal controls oversight team and the corporation.

(1) All terms and conditions for sports wagering accounts shall address all aspects of the licensee, including:

(a) A statement that only individuals located in the authorized geographic boundaries within the Commonwealth of Kentucky may participate in sports wagering;

(b) A statement that prohibited patrons shall not participate in sports wagering;

(d) All processes for dealing with lost authentication credentials, forced password changes, password strength;

(e) Full explanation of all rules applicable to dormant sports wagering accounts, including the conditions under which an account is declared dormant and what actions will be undertaken on the account once this declaration is made;

(f) Actions that will be taken on the account holder's pending wagers placed prior to any exclusion or suspension, including the return of all wagers, or settling all wagers, as appropriate;

(g) Information about timeframes and limits regarding deposits to and withdrawals from sports wagering accounts, including a clear and concise explanation of all fees, if applicable; and

(h) Statements indicating that the licensee has the right to:

Refuse to establish a sports wagering account for what it deems good and sufficient reason;
Refuse deposits to or withdrawals from sports wagering accounts for what it deems good and sufficient reason; and
Unless there is a pending investigation or dispute, suspend or close any sports wagering account at any time pursuant to the terms and conditions between the licensee and the account holder.

(2) All privacy policies for sports wagering accounts shall address all aspects of the personally identifiable information protection, including:

(a) The personally identifiable information required to be collected;

(b) The purpose and legal basis for personally identifiable information collection and of every processing activity for which consent is being sought;

(c) The period in which the personally identifiable information is stored, or, if no period can be possibly set, the criteria used to set this;

(d) The conditions under which personally identifiable information may be disclosed;

(e) An affirmation that measures are in place to prevent the unauthorized or unnecessary disclosure of the personally identifiable information; and

(f) The identity and contact details on the licensee who is seeking the consent.

Section 5. Account Access.

(1) The sports wagering system shall use authentication credentials, such as a username (or similar) and a password or a secure alternative means to assure that only the account holder shall have access to the sports wagering account. Allowable authentication credentials shall be approved by the corporation based on federal law, KRS Chapter 230, and KAR Titles 809 and 810. The requirement shall not prohibit the option for more than one (1) method of authentication being available for an account holder to access their account.

(2) If the sports wagering system does not recognize the authentication credentials when entered, an explanatory message shall be displayed to the account holder that shall prompt the account holder to try again. The error message shall be the same regardless of which authentication credential is incorrect.

(3) Account holders shall be given the option to use a multi-factor authentication process for accessing their sports wagering account. In addition, a multi-factor authentication shall be employed for the retrieval or reset of an account holder's forgotten or lost authentication credentials.

(4) Current account balance information, such as any restricted wagering credits, unrestricted funds, and transaction options shall be available to the account holder once authenticated. All restricted wagering credits and unrestricted funds that have a possible expiration shall be indicated separately.

(5) The sports wagering system shall support a mechanism that allows for an account to be locked if suspicious activity is detected, such as three (3) consecutive failed access attempts in a thirty (30) minute period. A multi-factor authentication process shall be employed for the account to be unlocked.

Section 6. Financial Transactions.

(1) Licensees shall provide the account holder written confirmation or denial of every financial transaction initiated on sports wagering accounts, including:

(a) The type of transaction (deposit or withdrawal);

(b) The transaction value; and

(c) For denied transactions, a descriptive message, if appropriate and available, as to why the transaction did not complete as initiated.

(2) A sports wagering account may be funded using acceptable form of payment or advance deposit method that shall produce a sufficient audit trail for verification of the source of the wagers.

(a) Payment or advance deposit methods for funding sports wagering accounts may be funded by forms or methods approved by the corporation including:

All forms of payment authorized in KRS 230.805;
Cash equivalents converted to cash;
Electronic funds transfers (EFTs), such as automated clearing house and other electronic methods;
Promotional or bonus credit;
Winnings; and
Adjustments made by the licensee with documented notification to the account holder.

(b) The sports wagering account shall be credited for any deposit in accordance with the internal controls as submitted by the licensee and approved by the corporation as established in 809 KAR 10:006.

(c) For credit or debit cards, and EFTs, the account holder may be liable for any charges imposed by the transmitting or receiving licensee and the charges may be deducted from the account holder's sports wagering account.

(3) If financial transactions are conducted through EFT, the licensee shall have security measures and controls to prevent EFT fraud. A failed EFT attempt shall not be considered fraudulent if the account holder has successfully performed an EFT on a previous occasion with no outstanding chargebacks. If an account holder has previously performed an EFT with a chargeback, the licensee shall:

(a) Temporarily block the account holder's sports wagering account for investigation of fraud after five (5) consecutive failed EFT attempts within a ten (10) minute period. If there is no evidence of fraud, the block may be vacated; and

(b) Suspend the account holder's sports wagering account after five (5) additional consecutive failed EFT attempts within a ten (10) minute period.

(4) An account holder may withdraw the funds maintained in their sports wagering account, whether the account is open or closed, except as otherwise established in KAR Title 809 or any other applicable state or federal laws.

(a) A licensee shall employ a mechanism that can detect and prevent any withdrawal activity initiated by an account holder that would result in a negative balance of the sports wagering account.

(b) A licensee shall not allow a sports wagering account to be overdrawn unless caused by payment processing issues outside the control of the licensee.

(c) A licensee shall honor the account holder's request to withdraw funds within five (5) business days after the request, unless the conditions established in paragraph (d) of this subsection are met. For withdrawals via check, a licensee shall honor the account holder's request within fourteen (14) days after the request, unless the conditions established in paragraph (d) of this subsection are met.

(d) The licensee may decline to honor an account holder's request to withdraw funds only if the licensee believes in good faith that the account holder engaged in either fraudulent conduct or other conduct that would put the licensee in violation of KRS Chapter 230 or KAR Title 809, in which case the licensee shall:

Suspend the account holder's sports wagering account and provide notice to the account holder; and
Conduct an investigation in a reasonable and expedient fashion, providing the account holder additional written notice of the status of the sports wagering account every 10th business day starting from the day the original notice was provided to the account holder.

(e) For purposes of this subsection, a request for withdrawal shall be considered honored if it is processed by the licensee notwithstanding a delay by a payment processor, credit or debit card issuer, or the custodian of a financial account.

(5) All adjustments to sports wagering accounts for amounts of $500 or less shall be reviewed by supervisory personnel at least monthly as established in the licensee's internal controls. All other adjustments shall be authorized by an authorized supervisory personnel of the licensee before being entered.

Section 7. Account Information. Upon request of the account holder, the licensee shall provide a statement detailing account activity for the past year, including wagers, deposit amounts, withdrawal amounts, and bonus or promotion information.

Section 8. Patron-imposed Limits. A licensee shall allow an account holder to limit the amount of money that may be deposited into an account and spent through an account.

(1) A deposit limit shall be offered on a daily, weekly, and monthly basis and shall state the maximum amount of money an account holder may deposit into their sports wagering account during a particular period of time.

(2) A wager limit shall be offered on a daily, weekly, and monthly basis and shall state the maximum amount of account holder funds that may be put at risk during a particular period of time.

(3) Any decrease to these limits shall be effective immediately or at the point in time (for example, next login or next day) that was clearly indicated to the account holder. Any increase to these limits shall become effective only after the time period of the previous limit (e.g., day, week, month, etc.) has expired. Upon making an increase, the licensee shall notify the account holder of an option to reverse the increase within a time frame included in the licensee's internal controls.

Section 9. Breaks from Wagering.

(1) A licensee shall enable an account holder to request a break from wagering for a period of time the account holder specifies, which shall not be less than seventy-two (72) hours, by submitting a request to the licensee through its Web site or mobile application.

(2) The licensee shall provide to an account holder who requests a break from wagering information concerning:

(a) Available resources addressing addiction and compulsive behavior;

(b) How to close an account and restrictions on opening a new account during the break;

(d) The ability to enroll in the voluntary self-exclusion program and a link to the Web site; and

(e) How the licensee addresses bonuses or promotions and account balances during and after the break, and if the account holder closes their sports wagering account.

Section 10. Suspension and Restoration of Sports Wagering Accounts.

(1) A sports wagering account may be placed into a suspended mode by the Licensee for any reason, not otherwise prohibited by state or federal law, at the sole discretion of the licensee.

(2) A sports wagering account shall be placed into a suspended mode by the licensee:

(a) If the account holder requests a break from wagering under Section 9(1) of this administrative regulation;

(b) If required by the corporation in the best interests of sports wagering;

(d) Upon a determination by a licensee that an account holder:

Has provided any false or misleading information in connection with the opening of the account or has engaged in collusion, cheating, or other unlawful conduct;
Is barred from placing sports wagers in the Commonwealth of Kentucky; or
Is a prohibited patron; or

(e) If the licensee has evidence that indicates:

Illegal activity, including providing any false or misleading information in connection with the opening of the account, or engaging in collusion, cheating, or other unlawful conduct;
A negative sports wagering account balance; or
A violation of the terms and conditions has taken place on an account holder's sports wagering account.

(3) If a sports wagering account is in a suspended mode, the licensee shall:

(a) Prevent the account holder from placing sports wagers;

(b) Prevent the account holder from depositing funds unless the account is suspended due to having a negative sports wagering account balance but only to the extent the sports wagering account balance is brought back to zero dollars;

(c) Prevent the account holder from withdrawing funds from their sports wagering account, unless the licensee acknowledges that the funds have cleared, and that the reason for suspension would not prohibit a withdrawal;

(d) Prevent the account holder from making changes to their sports wagering account;

(e) Prevent the removal of the sports wagering account from the sports wagering system;

(f) Prominently display to the account holder that the sports wagering account is in a suspended mode, the restrictions placed on the sports wagering account, and any further course of action needed to remove the suspended mode; and

(g) Remove the account holder from any advertising or marketing distribution lists.

(4) A sports wagering account in a suspended mode may be restored:

(a) Upon completion of the break from wagering established by the account holder under Section 9(1) of this administrative regulation;

(b) If authorized by the corporation in the best interests of sports wagering;

(d) If the licensee has lifted the suspended status.

(5) If the sports wagering account is terminated in accordance with this section, any funds remaining in the sports wagering account shall be refunded to the account holder, if the licensee acknowledges that the funds have cleared, and if the reason for termination would not prohibit a withdrawal.

Section 11. Account Closure.

(1) A sports wagering system shall provide a conspicuous and readily accessible method for an account holder to close their sports wagering account through the account management or similar page or through the licensee's customer support team.

(2) Upon closure, any funds remaining in the sports wagering account shall be refunded to the account holder, if the licensee acknowledges that the funds have cleared and there is not a pending corporation investigation regarding the funds.

Section 12. Dormant Accounts. Any sports wagering account without log-in activity for at least two (2) years may be closed by the licensee.

(1) Within two (2) weeks following the closure of an account due to inactivity, the licensee shall notify the account holder by both electronic mail and certified mail to his or her last-known physical address. The notification shall clearly inform the account holder of his or her right to withdraw the funds within a period of at least six (6) months following the account's closure date.

(2) The notification shall include the balance of funds due to the account holder and enumerate reasonable methods through which the account holder may request these funds. Methods shall include electronic transfer or check, but may include additional methods. In following the procedure provided by the licensee in this notice, the account holder shall be able to elect to withdraw these funds. The notification shall clearly state any processing fees that will be deducted from the account balance upon the disbursement of funds. Processing fees shall be approved by the corporation in the licensee's internal controls if exceeding three (3) percent of the funds disbursed.

Section 13. Test Accounts. A licensee may establish test accounts to be used to test the various components and operation of a licensee pursuant to the internal controls, which shall address the:

(1) Procedures for issuing funds used for testing, including the identification of who may issue the funds and the maximum amount of funds that may be issued;

(2) Procedures for assigning each test account for use by only one (1) individual, unless each user's activities are separately logged;

(3) Maintenance of a record for all test accounts, to include when they are active, to whom they are issued, and the employer of the individual to whom they are issued;

(4) Procedures for auditing testing activity by the licensee to ensure the accountability of funds used for testing and proper adjustments to adjusted gross revenue; and

(5) Procedures for authorizing and auditing out-of-state test activity.

History

RELATES TO: KRS Chapter 230
STATUTORY AUTHORITY: KRS 230.260(16), 230.361(2), 230.805
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16) requires the corporation to "promulgate administrative regulations to establish standards for the conduct of sports wagering." KRS 230.361(2) requires the corporation to "promulgate administrative regulations governing and regulating sports wagering, including administrative regulations for the deposit of funds by credit or debit cards or other means of electronic funds transfer." KRS 230.805(3) requires standards for registration of sports wagering patrons' accounts, such as account registration and wager placement. This administrative regulation establishes sports wagering account requirements, dormant and closed account requirements, and responsible gaming limits.
History: 50 Ky.R. 551; 1335; 1511; eff. 4-2-2024; TAm eff. 7-1-2024.

809 KAR 10:005 Licensed premises {#sec-809-kar-10-005 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:005}

Section 1. Floor Plan.

(1) An applicant for a sports wagering operator's license shall specify where sports wagering will take place within the licensed facility for sports wagering, if any, by providing:

(a) A drawing to scale of the building, and each floor thereof, in which sports wagering shall be conducted, at a scale sufficient to identify all of the information established in this section. The drawing shall depict:

The total square footage of the race and sports book location;
A diagram, outlined in red, of the proposed designated area for the sports wagering, if any, on each floor within the building;
The race and sports book locations, including each wagering window;
The locations of each sports wagering kiosk. Licensees may move sports wagering kiosks from one location to another with approval of the corporation based on the proximity to the cage or wagering window and the accessibility to mitigate risk while performing a cash drop;
Any race and sports book location that is, or is from time to time, a restricted race and sports book location, stating the nature of the restrictions and the conditions under which they will apply;
Each cage;
The count room;
The vault;
Any other restricted areas; and
All areas subject to surveillance; and

(b) A Certificate of Occupancy issued by the authority having jurisdiction.

(2)

(a) The race and sports book shall include both sports wagering and pari-mutuel products.

(b) All floor plans for a race and sports book shall be approved by the corporation.

The equitable number, size, and picture clarity of displays or other equipment used to show broadcasts of horse racing and sporting events;
The equitable number of sports wagering kiosks and pari-mutuel wagering terminals; and
The presence of a live sports wagering teller on the licensed premises.

(3) The designated licensed facility for sports wagering and simulcasting areas shall be approved by the corporation as a condition of license approval based on, at a minimum, the conditions established in Sections 1(2)(c) and 9 of this administrative regulation.

(4) A floor plan may be amended upon request by the licensed premises and approval by the corporation. The request shall be filed with the corporation in writing at least seventy-two (72) hours prior to the time for which implementation of the amendment is sought.

(5) If a licensee includes a sports wagering kiosk in a simulcast area, the layout of the simulcast area shall be approved by the corporation in the best interests of horse racing, pari-mutuel wagering, and sports wagering.

Section 2. Race and Sports Book Locations. Designated race and sports book locations within the licensed premises shall be established so as to control access by the general public and prevent entry by any patron who is under eighteen (18) years of age or is otherwise not allowed to place wagers.

Section 3. Anonymous Wagers and Payouts Greater Than $10,000. The requirements of this section shall only apply for wagers and payouts not associated with a sports wagering account.

(1) Prior to accepting any wager in excess of $10,000 or making a payout in excess of $10,000 on a winning wager, a licensee shall obtain and record the patron's:

(a) Full legal name;

(b) Date of birth;

(d) Social Security number, the last four (4) digits of the Social Security number, or an equivalent government identification number for a noncitizen, such as a passport or taxpayer identification number; and

(e) Document number from one (1) of the following valid identification credentials collected from the patron to verify the patron's identity:

Driver's license;
Passport;
Non-resident alien identification card;
Other reliable government-issued identification credentials; or
Other picture identification credential normally acceptable as a means of identification when cashing checks.

(2) Subsequent to accepting a wager in excess of $10,000 or making a payout in excess of $10,000 on a winning wager, the licensee shall maintain records for at least five (5) years that include the:

(a) Time and date of the wager or payout;

(b) Amount of the wager or payout;

(d) Ticket writer or other identification of the location where the wager or payout occurred; and

(e) Identification of the employee accepting or approving the wager and payout on the wager.

(3) Licensees shall monitor all wagers and payouts to ensure patrons shall not circumvent the recording and reporting requirements of this section.

Section 4. Wagering Windows.

(1) Each licensed premises may have one (1) or more wagering windows located in the race and sports book location or other window locations as approved by the corporation, which shall consider at least the criteria established in subsections (2) through (4) of this section.

(2) A wagering window shall:

(a) Be designed and constructed to provide maximum security for the materials stored and the activities performed therein;

(b) Include one (1) or more ticket writer stations, each of which shall:

Interface with the sports wagering system for all sports wagers placed;
Contain a permanently affixed number, which shall be visible to the surveillance system;
Contain manually triggered silent alarm systems, which shall be connected directly to the surveillance operation room; and
Contain full enclosures, unless funds are either secured in a drop safe approved by the corporation, in the best interests of sports wagering, or transferred to the vault or cage;

(c) Include manually triggered silent alarm systems, which shall be connected directly to the surveillance operation room(s);

(d) Provide for surveillance equipment capable of accurate visual monitoring and recording of any activities; and

(e) Require any emergency exit door that is not a mantrap to be alarmed.

(3) A wagering window shall have access to a secure location, such as a vault, for the purpose of storing funds issued by a cage to be used in the operation of sports wagering. The secure location shall:

(a) Be a fully enclosed room, located in an area not accessible to the public;

(b) Have a metal door with a locking mechanism that shall be maintained and controlled by the wagering manager;

(d) Have surveillance equipment capable of accurate visual monitoring and recording of all activities in the secure location.

(4) A wagering window shall have an operating balance not to exceed an amount stated in the licensee's internal controls. Funds in excess of the operating balance shall be transferred to the cage in a secured container by an employee of the counter accompanied by a security officer. Prior to transporting the funds, security personnel shall notify surveillance personnel that the transfer will take place. Surveillance personnel shall monitor the transfer. The funds shall be transferred with appropriate documentation as stated in the internal controls.

(5) The assets for which each ticket writer is responsible shall be maintained on an imprest basis. A ticket writer shall not allow any other person to access the ticket writer's imprest inventory.

(6) A ticket writer shall begin a shift with an imprest amount of currency and coin to be known as the "wagering inventory." Funds shall not be added to or removed from the wagering inventory during the shift except:

(a) In collection of sports wagers;

(b) In order to make change for a patron placing a wager;

(d) In payment of winning or properly cancelled or refunded wagers;

(e) In payment of vouchers;

(f) To process deposits or withdrawals to or from a sports wagering account, if supported;

(g) In exchanges with the cashier's cage, a satellite cage, or vault supported by proper documentation that shall be sufficient for accounting reconciliation purposes; or

(h) In payment of appeasement payments.

(7) A wagering inventory slip shall be completed and signed or initialed by the wagering manager, and the following information shall be recorded thereon at the commencement of a shift:

(a) The date, time, and shift of preparation;

(b) The denomination of currency and coin in the wagering inventory issued to the ticket writer;

(d) The ticket writer station to which the ticket writer is assigned; and

(e) The signature or initials of the wagering manager.

(8) A ticket writer assigned to a ticket writer station shall count and verify the wagering inventory at the vault or other secure location not accessible to the public and shall reconcile the count to the wagering inventory slip. The ticket writer shall sign the count sheet attesting to the accuracy of the information recorded thereon. The wagering inventory shall be placed in a ticket writer's drawer and transported directly to the appropriate ticket writer station by the ticket writer.

(9) If funds are transferred from the vault to a ticket writer, the wagering manager responsible for the vault shall prepare a two-part Writer Transfer-Out form. Upon completion of the form, the original shall be retained by the vault manager and the duplicate shall be retained by the ticket writer. The form shall include:

(a) Date and time of the transfer;

(b) Designation of the vault location;

(d) Amount of each denomination being transferred;

(e) Total amount of the transfer;

(f) Signature of the preparer of the transfer;

(g) Signature of the manager verifying and issuing the funds; and

(h) Signature of the ticket writer verifying and receiving the funds.

(10) If funds are transferred from the ticket writer to a vault, a two-part Writer Transfer-In form shall be prepared. Upon completion of the form, the original shall be retained by the ticket writer and the duplicate shall be immediately returned with the funds to the vault. The form shall include:

(a) Date and time of the transfer;

(b) Designation of the vault location where the funds are being transferred to;

(d) Amount of each denomination being transferred;

(e) Total amount of the transfer;

(f) Signature of the ticket writer verifying and sending the funds to the vault; and

(g) Signature of the manager verifying and receiving the funds.

(11) At the conclusion of a ticket writer's shift, the ticket writer's drawer and its contents shall be transported directly to the vault or to a secure location not accessible to the public, where the ticket writer shall count the contents of the drawer and record on the wagering inventory slip the:

(a) Date, time, and shift of preparation;

(b) Denomination of currency and coupons in the drawer;

(d) Total of the Writer Transfer-Out forms;

(e) Total of the Writer Transfer-In forms;

(f) Total amount in the drawer; and

(g) Signature of the ticket writer.

(12) The wagering manager shall compare the ticket writer closing balance to the wagering inventory slip total, record any over or short amount, and sign the wagering inventory slip.

(13) If the wagering inventory slip lists an overage or shortage, the ticket writer and the wagering manager shall attempt to determine the cause of the discrepancy in the count. If the discrepancy cannot be resolved, the discrepancy shall be reported to surveillance personnel and the wagering manager or supervisor in charge at the time. Any discrepancy in excess of $500 shall be reported to the corporation. The report shall include:

(a) Date on which the discrepancy occurred;

(b) Shift during which the discrepancy occurred;

(d) Name of the wagering manager;

(e) Ticket writer station number; and

(f) Amount of the discrepancy.

(14) If funds are transferred from the vault to the cashier's cage, the wagering manager responsible for the vault shall prepare a two (2) part Vault Transfer-Out form. Upon completion of the form, the original shall be retained by the vault manager and the duplicate shall be transferred with the funds to the cashier's cage. The form shall include:

(a) Date and time of the transfer;

(b) Designation of the vault location;

(d) Amount of each denomination being transferred;

(e) Total amount of the transfer;

(f) Signature of the preparer of the transfer;

(g) Signature of the vault manager verifying and issuing the funds; and

(h) Signature of the cage cashier verifying and receiving the funds.

(15) If funds are transferred from the cashier's cage to a vault, a two-part Vault Transfer-In form shall be prepared. Upon completion of the form, the original shall be retained by the cage cashier and the duplicate shall be transferred with the funds to the vault. The form shall include:

(a) Date and time of the transfer;

(b) Designation of the vault location where the funds are being transferred to;

(d) Amount of each denomination being transferred;

(e) Total amount of the transfer;

(f) Signature of the cage cashier verifying and sending the funds to the vault; and

(g) Signature of the vault manager verifying and receiving the funds.

(16) In lieu of separate wagering windows with live tellers, cage personnel may write and cash tickets.

Section 5. Wrong Ticket Claims. Subject to a ticket writer's discretion, any claim by a patron that he or she has been issued a sports wagering ticket other than that requested shall be made before the patron has left the wagering window or before the ticket writer has initiated a transaction with another patron.

Section 6. Sports Wagering Kiosks. A licensee may utilize sports wagering kiosks located in a licensed premises for wagering transactions in conjunction with a sports wagering system in a location approved by the corporation based on, at a minimum, proximity to the cage or wagering window and accessibility to mitigate risks while performing a cash drop. A sports wagering kiosk shall be established and operated as follows:

(1) All aspects of a sports wagering kiosk, including the computer and any related hardware, software, or related devices, shall be submitted to an independent testing laboratory approved by the corporation for certification testing prior to use by a licensee. The corporation's approval shall be based on the best interests of sports wagering. In the best interests of sports wagering, the corporation may require any additional testing or field inspection of the sports wagering kiosk it deems necessary prior to or after approval;

(2) To obtain a temporary license, a licensee may submit to the corporation a certification report of an independent testing laboratory of kiosk components in operation in another jurisdiction in the United States where the licensee is currently licensed or permitted. The report shall certify the kiosk components to either the GLI-33 Standards or, at the discretion of the corporation, a standard deemed to be the equivalent of the GLI-33 Standards. This alternative certification report shall include a list of all critical files and associated signatures and an appendix that lists the differences of any controlled items or processes required to be certified in Kentucky that were not certified in the jurisdiction in which the report was issued. Upon review of the certification report, the corporation shall make a determination on whether to accept the certification or require additional information or documentation or testing;

(3) Each sports wagering kiosk shall be configured not to:

(a) Issue a sports wagering ticket with a wager in excess of $10,000;

(b) Redeem a winning sports wagering ticket with a value in excess of $10,000 or other limits set by the IRS; or

(4) All sports wagering kiosks shall have a sign permanently affixed to the kiosk notifying the public that patrons shall not be underage persons;

(5) On a schedule documented in the internal controls, a licensee shall remove the drop boxes in the sports wagering kiosks. The drop boxes shall be monitored and recorded by surveillance. The licensee shall submit the sports wagering kiosk drop schedule to the corporation or its designee;

(6) The licensee shall reconcile the sports wagering kiosks on a schedule approved by the corporation pursuant to internal controls. Any variance of $500 dollars or more shall be documented by the accounting department and reported in writing to the corporation within five (5) business days after drop and count of sports wagering kiosks. The report shall indicate the cause of the variance and shall contain any documentation required to support the stated explanation; and

(7) In locations where sports wagering kiosks do not allow for redemption, the licensee shall display prominently the methods of paying out or cashing out vouchers near each sports wagering kiosk.

Section 7. Drop and Count.

(1) A licensed premises shall have a count room whose physical access shall be limited to count team employees, designated staff, corporation employees, and other persons authorized by the licensee, and shall remain locked unless entry and exist is required by authorized persons.

(a) Count team employees shall not exit or enter the count room during the count except for emergencies or scheduled breaks.

(b) Surveillance staff shall be notified if count room employees exit or enter the count room during the count.

(c) A licensee shall establish a count team policy that shall address the transportation of extraneous personal items, such as personal belongings, toolboxes, and beverage containers, into or out of the count room.

(2) Security of the count and the count room shall be ensured to prevent unauthorized access, misappropriation of funds, forgery, theft, or fraud.

(a) All counts shall be performed by at least two (2) employees.

(b) At no time during the count shall there be fewer than two (2) count team employees in the count room until the drop proceeds have been accepted into cage or vault accountability.

(c) Count team employees shall be independent of the department being counted. A cage or vault employee may be used if they are not the sole recorder of the count and do not participate in the transfer of drop proceeds to the cage or vault. An accounting employee may be used if there is an independent audit of all count documentation.

(3) Currency cassettes and drop boxes shall be securely removed from sports wagering kiosks.

(a) Surveillance shall be notified prior to the drop boxes or currency cassettes being accessed in a kiosk.

(b) At least two (2) employees shall be involved in the collection of currency cassettes and drop boxes from kiosks, and at least one (1) employee shall be independent of kiosk accountability.

(c) Currency cassettes and drop boxes shall be secured in a manner that restricts access to only employees authorized by the licensee.

(d) If applicable, redeemed vouchers collected from the kiosk shall be secured and delivered to the appropriate department (cage or accounting) for reconciliation.

(e) Controls shall be established and procedures implemented to ensure that currency cassettes shall contain the correct denominations and have been properly installed.

(f) Access to stored full kiosk drop boxes and currency cassettes shall be restricted to:

Employees authorized by the licensee; and
In an emergency, additional persons authorized for the resolution of a problem.

(g) The kiosk count shall be performed in a secure area, such as the cage or count room.

(h) If counts from kiosks and any other areas requiring counts occur simultaneously in the count room, procedures shall be in effect that prevent the commingling of funds from the kiosks with any other areas requiring counts.

(i) The kiosk drop boxes and currency cassettes shall be individually emptied and counted so as to prevent the commingling of funds between kiosks until the count of the kiosk contents has been recorded.

(j) Procedures shall be implemented to ensure that any corrections to the count documentation shall be permanent and identifiable, and that the original, corrected information shall remain legible. Corrections shall be verified by two (2) employees.

Section 8. Winning Wagers and Vouchers.

(1) Payment on valid sports wagering tickets shall be made only if presented and surrendered within one (1) year following the settling of the sporting event, or, in the event of a parlay, the last-in-time sporting event to settle on the ticket. Failure to present a ticket within one (1) year shall constitute a waiver of the right to receive payment on the ticket.

(2) Sports wagering vouchers shall be valid for one (1) year after the date of issuance. Failure to present any voucher for redemption within one (1) year of issuance shall constitute a waiver of the right to receive payment on the voucher.

(3) A mutilated sports wagering ticket or voucher that cannot be identified as a valid ticket or voucher shall not be accepted for payment.

(4) A licensee shall establish a written procedure for granting patrons an opportunity to file a claim on a lost sports wagering ticket or voucher and provide a copy to the corporation.

Section 9. Cashiers, Windows, and Cages.

(1) Each licensed premises shall have on or immediately adjacent to the race and sports book location a physical structure known as a cashiers' cage to house the cashiers, which shall be located in or within close proximity to the race and sports book location. Each licensed premises may also have one (1) or more satellite cages in or within close proximity to the race and sports book location.

(2) A cage or satellite cage shall be fully enclosed and shall:

(a) Be for performing financial transactions related to sports wagering;

(b) Be designed and constructed to provide maximum security for the materials stored and the activities performed therein;

(c) Include openings at one (1) or more numbered cashier windows through which financial transactions related to sports wagering will be conducted, each of which shall contain a cashier's drawer;

(d) Include manually triggered silent alarm systems, which shall be connected directly to the surveillance and the security operation rooms;

(e) Provide for surveillance equipment capable of accurate visual monitoring and recording of any activities; and

(f) Include a mantrap if the cage or satellite cage secure assets having a value greater than an amount established by the corporation. The outer door of the mantrap shall be controlled by security personnel, and the inner door shall be controlled by accounting personnel. The doors of the mantrap shall have separate and distinct locking mechanisms on each door of the double door entry and exit system. The mantrap shall have continuous surveillance coverage.

(3) Each licensed premises may have one (1) or more service windows to serve as a location in the facility to conduct financial transactions. Each window shall be designed and constructed in accordance with subsection (2)(b) of this section, and access shall be controlled by an accounting supervisor.

(4) If approved paperless systems are not in use, the internal controls shall require that documents regarding the funds stored in cages shall be transported between cages in a secure manner and accompanied by security.

(5) Each licensed premises shall have on hand in the cage or readily available, such as in a restricted bank account or by bond, a reserve of cash to pay winning patrons.

(6) A cashiers' cage and any satellite cage shall be segregated by personnel so that a single person shall not have both control and approval for any aspect of cage operations maintained.

(7) A qualified supervisor may perform the functions of a cashier if the functions are not incompatible with proper separation of duties. A supervisor shall not operate from another cashier or supervisor's imprest inventory.

(8) The assets for which each cashier is responsible shall be maintained on an imprest basis. A cashier shall not allow any other person to access his or her imprest inventory. Cashier functions shall include:

(a) Performing check consolidations, total or partial redemptions, or substitutions for patrons;

(b) Receiving cash, authorized cash equivalents, and authorized electronic transfers from patrons in exchange for currency or sports wagering vouchers;

(d) Processing exchanges with cashiers, supported by documentation with signatures thereon, for the effective segregation of functions in the cashiers' cage;

(e) Receiving sports wagering tickets or vouchers from patrons or authorized employees in exchange for cash; and

(f) Exchanging and reconciling imprest funds used by attendants, including imprest change or pouch payout funds.

(9) A licensed premises may consolidate the cashier functions, if the cashier is qualified to perform all functions and does not perform functions incompatible with proper separation of duties.

Section 10. Security and Surveillance.

(1) The licensed premises shall have appropriate physical security and surveillance controls that:

(a) Enable a suitable response to any security issue within the licensed premises; and

(b) Prevent any person from tampering with or interfering with the operation of any sports wagering or equipment.

(2) The licensed premises shall establish provisions describing the duties and operation of its security department, which shall include details relative to the design, construction, and location of primary and secondary armored car routes, including provisions for the security of routes.

(3) Licensed premises shall install, maintain, and operate a surveillance system that has the capability to monitor and record continuous unobstructed views of all sports wagering and financial transactions, as well as any dynamic displays of sports wagering information.

(4) The surveillance system shall:

(a) Have the capability to display all camera views on a monitor; and

(b) Record all camera views.

(5) The surveillance system shall be maintained and operated from a surveillance operation room or a secured location, such as a locked cabinet.

(a) The surveillance operation room shall be secured to prevent unauthorized entry.

(b) The location of the surveillance operation room or rooms shall ensure the interior shall not be visible to the public and employees who do not work in the surveillance room or rooms.

(c) Access to the surveillance operation room shall be limited to surveillance personnel, the corporation, and other persons authorized by the licensee.

(d) Surveillance operation room access logs shall be maintained, recording all entries and exits.

(e) Personal recording devices of any kind shall not be allowed in the surveillance operation room, including devices such as cameras, video recorders, and mobile phones.

(f) Surveillance operation room equipment shall have total override capability over all other satellite surveillance equipment.

(6) If a power loss to the surveillance system occurs, alternative security procedures, such as additional supervisory or security employees, shall be implemented immediately.

(7) The surveillance system shall record an accurate date and time stamp on recorded events. The displayed date and time shall not significantly obstruct the recorded view.

(8) All surveillance employees shall be trained in the use of the equipment and wagering rules.

(9) Inspection of the surveillance systems shall be conducted by the licensee at least quarterly. If a dedicated camera stops providing coverage in the racing and sports book or to sports wagering kiosks, the coverage failure and necessary repairs shall be documented and repairs initiated within seventy-two (72) hours.

(a) If a dedicated camera stops providing coverage, alternative security procedures, such as additional supervisory or security personnel, shall be implemented immediately.

(b) The corporation shall be notified immediately of any coverage failure for more than twenty-four (24) hours and the alternative security measures being implemented.

(10) Surveillance coverage shall be provided for the following areas as follows:

(a) For public entrances to the licensed facility for sports wagering:

Each entrance shall have sufficient coverage of at least two (2) cameras that shall be able to positively identify each person entering; and
Each security check-in point at the entrances shall have a dedicated camera to capture an unobstructed facial view of all persons entering the licensed premises;

(b) For non-public entrances to the licensed facility for sports wagering, including loading docks and emergency exits:

Each entrance shall have sufficient camera coverage, of at least two (2) cameras with sufficient image quality to be able to positively identify each person entering;
Employee entrances shall be secured either via the use of digitally controlled access systems or by in-person verification conducted by security; and
Policies shall be in place requiring that:

a. Employees entering the licensed facility for sports wagering shall be identifiable; and

b. Cameras shall be of sufficient quality to positively identify each person entering.

All restricted areas shall have surveillance coverage sufficient that all persons in the area can be clearly identified;
All restricted areas shall have sufficient coverage and resolution that all cash-handling and gaming equipment and currency and currency equivalents shall be identifiable;
All restricted areas shall have additional camera coverage sufficient to provide asset protection; and
Access to coverage of the surveillance operation room is limited to senior management and the corporation;

(d) For all race and sports book locations:

The surveillance system shall monitor and record general activities, to include the ticket writer and cashier areas, with sufficient clarity to identify the personnel performing the different functions; and
All race and sports book locations shall have sufficient coverage that a patron can be tracked throughout the entirety of the race and sports book location;

(e) For ticket writer stations:

All ticket writer stations shall have sufficient coverage to identify currency amounts;
Any ticket writer stations that can be utilized for placing wagers shall have surveillance coverage sufficient to identify the patron and employee involved in the transaction; and
Surveillance personnel shall have access to the ticket writer stations to access transaction amounts;

(f) For sports wagering kiosks, the surveillance system shall monitor and record activities occurring at each sports wagering kiosk with:

Sufficient clarity to identify the activity and the individuals performing it, including maintenance, drops or fills, and redemption of sports wagering tickets or vouchers; and
Accurate time stamps;

(g) For the cage and vault:

The surveillance system shall monitor and record activities occurring in each cage and vault area with:

a. Sufficient clarity to identify individuals within the cage and patrons and staff members at the window areas, and to confirm the amount of each cash transaction; and

b. Accurate time stamps;

Each cashier station shall be equipped with at least one (1) dedicated overhead camera covering the transaction area; and
The cage or vault area in which exchange and transfer transactions occur shall be monitored and recorded by a dedicated camera or motion activated dedicated camera that provides coverage with sufficient clarity to identify the amounts on the exchange and transfer documentation. Controls provided by a computerized exchange and transfer system shall constitute an adequate alternative to viewing the amounts on the exchange and transfer documentation;

(h) For count rooms, the surveillance system shall:

Monitor and record with sufficient clarity a general overview of all areas where cash or cash equivalents can be stored or counted; and
Provide coverage of count equipment with sufficient clarity to view any attempted manipulation of the recorded data; and

(i) All machines capable of dispensing cash shall have sufficient coverage to view the transaction and the currency amount being dispensed and the individuals at the machine.

(11) The licensed premises shall utilize an incident reporting system to document incidents and activities, as established in paragraph (a) of this subsection.

(a) Security and surveillance procedures shall be implemented for reporting:

An individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities;
An individual possessing a firearm, electronic control device, dangerous weapon, or other device or object prohibited KAR Title 809;
An individual in the race and sports book location who is a prohibited person, the subject of a law enforcement contact by the licensee, or a potential victim of human trafficking;
All camera, system, or recording outages;
Any routine tasks accomplished by security or surveillance personnel at the request of another team; and
Any suspicious incidents observed.

(b) Any violation of KRS Chapter 230 or KAR Title 809 shall be identified as a violation in the incident reporting system.

(d) The incident reporting system shall be capable of generating reports that detail all incident types, and reports shall be delivered to the corporation upon request.

(e) The incident reporting system shall be in an electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system.

(f) The incident reporting system shall document the:

Assignment number of the incident;
Date and time of the incident;
Name and identification license of the individual covering the incident;
Nature of the incident; and
Resolution of the incident.

(g) All recordings required by this section shall be retained for a minimum retention period of ninety (90) calendar days. Suspected crimes, illegal activity, or detentions by security personnel discovered within the initial retention period shall be copied and retained for a time period not less than five (5) years.

History

RELATES TO: KRS Chapter 230
STATUTORY AUTHORITY: KRS 230.260(16), 230.361, 230.805
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16)(a) requires the corporation to "promulgate administrative regulations to establish standards for the conduct of sports wagering." KRS 230.361(2) states the "corporation shall promulgate administrative regulations to establish a fully functioning sports wagering system...." KRS 230.805 authorizes sports wagering at a licensed facility for sports wagering on licensed premises. This administrative regulation establishes controls for sports wagering on licensed premises, including the floor plan, security, surveillance, sports wagering windows, sports wagering kiosks, sports wagers and vouchers, drop and count, and incident reporting.
History: 50 Ky.R. 555; 1340; 1515; eff. 4-2-2024; TAm eff. 7-1-2024.

809 KAR 10:006 Audit and internal control standards {#sec-809-kar-10-006 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:006}

Section 1. Internal Controls. Before beginning operations, a licensee shall submit its administrative and accounting controls, in detail, in a system of internal controls for corporation review and approval in accordance with GLI-33 Standards and subsection (3) of this section. The corporation or its designee may perform any inspection necessary in order to determine conformance with the approved internal controls.

(1) Amendments to any portion of the internal controls shall be submitted to the corporation for approval consistent with corporation staff audits in accordance with GLI-33 Standards. If, within thirty (30) calendar days the corporation has not approved, denied, or otherwise provided written notice, a licensee may implement the amended internal controls, which shall be implemented as submitted, in which case the corporation shall retain its authority to require further amendment, approval, or denial.

(a) The corporation may approve, deny, or require a revision to the amendment to the internal controls consistent with corporation staff audits in accordance with GLI-33 Standards. If the licensee is notified of a required revision, the licensee shall address the revision within fifteen (15) calendar days, unless otherwise required by the corporation based on immediate risk or immediate implied risk to sports wagering.

(b) If the corporation requests additional information, clarification, or revision of an amendment to the internal controls and the licensee fails to satisfy the request within thirty (30) calendar days after the corporation submits the request, the corporation shall consider the amendment denied and the amendment shall not be implemented or, if previously implemented, the licensee shall cease implementation of that amendment within fifteen (15) calendar days. If the licensee subsequently wants to pursue the amendment, it shall resubmit the request along with the additional information previously requested by the corporation.

(2) In an emergency, the licensee may temporarily amend their internal controls. The corporation or its designee shall be notified immediately that an emergency exists before the licensee temporarily amends its internal controls due to an emergency. The licensee shall submit the temporary emergency amendment of the internal controls to the corporation or its designee within twenty-four (24) hours of the amendment. The submission shall include the detailed emergency procedures that will be implemented and the time period the emergency procedures will be temporarily in place.

(3) The internal controls shall include a detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of KAR Title 809, including:

(a) Reliable accounting controls, including the standardization of forms and definition of terms to be used in the sports wagering operations;

(b) Reporting controls, which shall include policies and procedures for the timely reporting of standard financial and statistical information in accordance with this administrative regulation;

(d) Tables of organization, which shall provide for:

A system of personnel and chain of command that allows management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility;
The segregation of functions that are incompatible with separation of duties, so that no employee is in a position both to commit an error or to perpetrate a fraud and to conceal the error or fraud in the normal course of their duties;
Supervisory positions that allow the authorization or supervision of necessary transactions at all relevant times; and
Areas of responsibility that are not so extensive as to be impractical for one (1) person to monitor;

(e) A jobs compendium detailing job descriptions, chains of command, and lines of authority for all personnel engaged in the operation of sports wagering. The licensee shall maintain and update the jobs compendium on a regular basis, but at least annually;

(f) An infrastructure and information security program; and

(g) All wagering procedures and practices established within the GLI-33 Standards.

(4) To the extent a service provider is involved in or provides any of the internal controls required in 809 KAR Chapter 10, the licensee's internal controls shall document the roles and responsibilities of the service provider and shall include procedures to evaluate the adequacy of and monitor compliance with the service provider's internal controls.

(5) The licensee shall stamp or otherwise mark each page of the internal controls submitted to the corporation with the word "CONFIDENTIAL" if the licensee does not believe the material submitted is subject to public disclosure.

(6) If a licensee intends to utilize any new technology not identified in its initial proposal, it shall submit the changes to its internal controls to incorporate the use of any new technology to the corporation for approval based on GLI-33 Standards.

(7) If the corporation determines that the internal controls of the licensee do not comply with the requirements of KAR Title 809, the corporation shall notify the licensee in writing. Within fifteen (15) calendar days after receiving the notification, the licensee shall amend its internal controls accordingly and shall submit, for corporation approval, a copy of the written internal controls, as amended, and a description of any other remedial measure taken. Corporation approval shall be based on corporation staff audits and compliance with GLI-33 Standards.

Section 2. Information Security Responsibilities. The internal controls shall ensure that an information security program shall be effectively implemented and information security function responsibilities shall be effectively allocated.

(1) The licensee shall implement, maintain, and comply with a comprehensive information security program, the purpose of which shall be to take reasonable steps to protect the confidentiality, integrity, and availability of personally identifiable information of individuals who place a sports wager with the licensee.

(2) The licensee's information security program shall contain administrative, technical, and physical safeguards appropriate to the size, complexity, nature, and scope of the operations, and the sensitivity of the personally identifiable information owned, licensed, maintained, handled, or otherwise in the possession of the licensee.

(3) A licensee's information security department shall exist that shall be responsible for developing a security strategy in accordance with the overall operation. The information security department shall subsequently work with the other departments to implement the associated action plans. It shall be involved in reviewing all tasks and processes that are necessary from the security perspective for the licensee, including the protection of information and data, communications, physical, virtual, personnel, and overall business operational security.

(4) The licensee's information security department shall report to no lower than executive level management and shall be independent of the IT department with regard to the management of security risk.

(5) The licensee's information security department shall have the competencies and be sufficiently empowered, and shall have access to all necessary resources, to enable the adequate assessment, management, and reduction of risk.

Section 3. Accounting Records. Licensees shall maintain complete, accurate, and legible records of all financial transactions for at least five (5) years, including transactions pertaining to revenues, expenses, assets, liabilities, and equity in conformance with generally accepted accounting principles. The licensee's financial transaction reports shall be in compliance with GLI-33 Standards.

(1) The detailed subsidiary records shall include:

(a) Detailed general ledger accounts identifying all revenue, expenses, assets, liabilities, and equity;

(b) A record of all investments, advances, loans, and accounts receivable balances due the establishment;

(d) A record of all accounts receivable written off as uncollectible;

(e) Journal entries prepared;

(f) Tax work papers used in preparation of any state or federal tax return if applicable;

(g) Records supporting the accumulation of the costs for complimentary services and items. A complimentary service or item provided to individuals in the normal course of a sports wagering business shall be recorded in an amount based upon the full retail price normally charged for the service or item or as is otherwise consistent with generally accepted accounting principles; and

(h) Records required by the internal controls.

(2) The licensee shall maintain all records supporting the adjusted gross revenue for at least five (5) years.

(3) If a licensee fails to maintain the records used by it to calculate the adjusted gross revenue, the corporation may compute and determine the amount upon the basis of an audit conducted by the corporation using available information.

Section 4. Financial Audits. Upon application, and annually thereafter, each licensee shall submit to the corporation, within ninety (90) calendar days of the licensee's fiscal year end, its financial audit for that fiscal year.

(1) The licensee shall operate in conformity with financial audit conditions established in the license conditions issued by the corporation pursuant to KRS 230.290(3).

(2) Upon request by the corporation, the licensee shall submit pro forma statements that present projected or estimated financial performance, assets, and liabilities. These pro forma statements shall include:

(a) Pro forma balance sheet: A projected or estimated balance sheet stating the entity's assets, liabilities, and equity at a specific point in time;

(b) Pro forma income statement: A projected or estimated income statement presenting the entity's anticipated revenues, expenses, and net income for a specific period;

(c) Pro forma cash flow statement: A projected or estimated cash flow statement demonstrating the expected cash inflows and outflows of the entity over a specific period;

(d) Pro forma statement of retained earnings: A projected or estimated statement reflecting changes in the entity's retained earnings over a specific period, considering projected net income, dividends, and other adjustments; and

(e) Notes for financial statements: Explanatory notes providing additional information and disclosures related to the pro forma statements, including significant assumptions, methodologies used, and any other relevant details.

(3) If audited financial statements are not available, the licensee shall provide audited financial statements of its parent company and the licensee's unaudited financial statements, which document the licensee's financial performance, assets, and liabilities, including:

(a) A balance sheet;

(b) An income statement;

(d) A statement of retained earnings; and

(e) Notes for financial statements.

(4) The pro forma statements shall be clearly labeled as unaudited and based on management's estimates and assumptions. These statements may serve as temporary financial documentation until audited financial statements become available.

(5) The financial audit shall be performed in accordance with generally accepted accounting principles by an independent certified public accountant currently authorized to practice in Kentucky or any other U.S. state or jurisdiction, and shall contain the opinion of the independent certified public accountant as to its fair preparation and presentation in accordance with generally accepted accounting principles.

(6) The corporation shall determine the number of copies of audits or reports required under this procedure. The audits or reports shall be received by the corporation or postmarked no later than the required filing date.

(7) The reporting year-end of the licensee shall be December 31 of each year, unless otherwise approved by the corporation for good cause shown by the licensee.

Section 5. Retention, Storage, and Destruction of Records. The internal controls shall include a records retention schedule and provisions related to the storage and destruction of records that incorporates the provisions established in subsections (1) through (7) of this section.

(1) Each licensee shall maintain, in a place secure from theft, loss, or destruction, adequate records of its business and accounting operations.

(2) A licensee shall make the records available to the corporation, upon request, within a time provided for by the corporation. A licensee shall retain the records for not less than five (5) years.

(3) A licensee shall keep and maintain accurate, complete, and legible records of any books, records, or documents pertaining to, prepared in, or generated by, the licensee.

(4) A licensee shall organize and index all required records in a manner that enables the corporation to locate, inspect, review, and analyze the records with reasonable ease and efficiency.

(5) A licensee shall notify the corporation in writing at least sixty (60) calendar days prior to the scheduled destruction of any record required to be retained in accordance with this section, if within the five (5) year record retention requirement. Notice shall list each type of record scheduled for destruction, including a description sufficient to identify the records included, the retention period, and the date of destruction. If documents are to be destroyed in the normal course of business in accordance with document retention policies previously established in the internal controls approved by the corporation, no notice to the corporation shall be required.

(6) The corporation may prohibit the destruction of any record required to be retained in accordance with this section by so notifying the licensee in writing within forty-five (45) calendar days of receipt of the notice of destruction pursuant to subsection (5) or within the established retention period. This prohibition shall be based on factors such as an ongoing investigation or the licensee's history of unusual wagering activity. An original record may thereafter be destroyed only upon notice from the corporation, by order of the corporation upon the petition of the licensee, or by the corporation on its own initiative.

(7) The licensee may use the services of a disposal company for the destruction of any records required to be retained in accordance with this section.

Section 6. Reserve Requirement.

(1) The internal controls shall include a plan to maintain and protect sufficient funds to conduct sports wagering at all times through a reserve in the amount necessary to ensure the security of funds held in sports wagering accounts and the ability to cover the outstanding sports wagering liability.

(a) The reserve shall be in the form of cash, cash equivalents, payment processor receivables, payment processor reserves, an irrevocable letter of credit, a bond, or a combination thereof.

(b) The reserve shall be not less than the greater of $25,000 or the sum of:

The daily ending cashable balance of all sports wagering accounts;
Pending withdrawals;
Amounts accepted by the licensee on sports wagers with undetermined outcomes; and
Amounts owed but unpaid on winning sports wagers.

(c) Amounts available to patrons for wagering that are not redeemable for cash may be excluded from the reserve computation.

(2) A licensee shall have access to all sports wagering account and transaction data to ensure the amount of its reserve is sufficient. Unless otherwise directed by the corporation based on the risk assessed from audits performed by corporation staff, a licensee shall file a monthly attestation with the corporation, which shall state that funds have been safeguarded under this procedure.

(3) The corporation may audit a licensee's reserve at any time and may direct a licensee to take any action necessary to ensure the requirements of this section are met.

Section 7. Risk Management Framework. A licensee shall implement a risk management framework. This framework may be provided in-house by a unit capable of performing this function with appropriate segregation of functions and reporting duties, or by a third-party entity.

(1) The internal controls shall contain a description of the risk management framework, including:

(a) Automated and manual risk management procedures;

(b) Employee management, including access controls and segregation of duties;

(d) Controls ensuring regulatory compliance;

(e) Description of Anti-money Laundering (AML) compliance standards;

(f) Controls for accepting wagers and issuing pay outs in excess of $10,000;

(g) Controls for accepting multiple wagers from one patron in a twenty-four (24) hour cycle, including a process to identify patron structuring of wagers to circumvent recording and reporting requirements;

(h) Description of all software applications that comprise the sports wagering system;

(i) Description of all types of sports wagers available to be offered by the licensee;

(j) Description of the procedures to prevent past posting of wagers;

(k) Description of the procedures to prevent individuals from placing wagers as agents or proxies for other individuals; and

(l) Description of all integrated third-party platforms.

(2) A licensee shall file with the corporation a report of any error that occurs in offering an event or wager or if an unapproved sporting event or type of wager is offered to the public.

Section 8. Taxation Requirements.

(1) The internal controls shall ensure compliance with all Internal Revenue Service (IRS) requirements, and the licensee shall provide for the withholding or reporting of income tax of patrons as required by applicable state or federal law.

(2) The licensee shall disclose potential tax liabilities to patrons at the time of award of any sports wagering payouts in excess of limits established by the IRS. Disclosure shall include a statement that the obligation to pay applicable taxes on payouts shall be the responsibility of the patron and that failure to pay applicable tax liabilities may result in civil penalties or criminal liability. Upon written request, the licensee shall provide patrons with summarized tax information on sports wagering activities.

Section 9. Reports of Suspicious Transactions.

(1) A transaction shall require reporting under the terms of this section if the transaction is conducted or attempted, by, at, or through a licensee, and involves or aggregates to at least $5,000 in funds or other assets, and the licensee knows, suspects, or has reason to suspect that the transaction or a pattern of transactions of which the transaction is a part and:

(a) Involves funds derived from illegal activity or is intended or conducted in order to hide or disguise funds or assets derived from illegal activity (such as the ownership, nature, source, location, or control of funds or assets) as part of a plan to violate or evade any federal law or regulation or to avoid any transaction reporting requirement under federal law or regulation or of the corporation;

(b) Is designed, whether through structuring or other means, to evade any requirements of KAR Title 809;

(c) Does not have business or an apparent lawful purpose or is not the sort in which the particular patron would normally be expected to engage, and the licensee is not aware of a reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction; or

(d) Involves use of the licensee to facilitate criminal activity.

(2) A licensee may also file a report of any suspicious transaction that the licensee believes relevant to the possible violation of any law or regulation but whose reporting is not required by this section.

(3) The report shall be filed no later than thirty (30) calendar days after the initial detection by the licensee of facts that might constitute a basis for filing a report. In situations involving violations that require immediate attention, the licensee shall immediately notify the corporation in addition to filing a report.

(4) A licensee shall maintain a copy of any report filed and the original or business record equivalent of any supporting documentation for a period of at least five (5) years from the date of filing the report. Supporting documentation shall be identified and maintained by the licensee, and shall be deemed to have been filed with the report. A licensee shall make all supporting documentation available to the corporation and any appropriate law enforcement agencies upon request.

(5) Unless otherwise required by KAR Title 809, other law, or court order, a licensee and its directors, officers, employees, or agents who file a report pursuant to this administrative regulation shall not notify any person involved in the transaction that the transaction has been reported. Any report filed with the corporation shall be confidential and may be disclosed by the corporation in the necessary administration of their duties and responsibilities under KRS Chapter 230 or as otherwise required by law or court order.

Section 10. Anti-money Laundering (AML) Monitoring. The internal controls shall implement AML procedures and policies that adequately address the risks posed by sports wagering for the potential of money laundering and terrorist financing. The AML procedures and policies shall provide for:

(1) Up-to-date training of employees in the identification of unusual or suspicious transactions;

(2) Assigning an individual or individuals to be responsible for all areas of AML by the licensee, including reporting unusual or suspicious transactions;

(3) Use of any automated data processing systems to aid in assuring compliance; and

(4) Periodic independent tests for compliance with a scope and frequency as required by the corporation. Logs of all tests shall be maintained for at least five (5) years.

Section 11. Integrity Monitoring and Suspicious Behavior. A licensee shall implement an integrity monitoring system. This solution may be provided in-house by a unit capable of performing this function with appropriate segregation of functions and reporting duties, or by a third-party entity.

(1) The internal controls shall include provisions for a licensee to report to the corporation as soon as practicable, but in no event longer than forty-eight (48) hours after discovery:

(a) Any information regarding irregularities in volume or changes in odds identified as abnormal wagering activity;

(b) Any information relating to criminal or disciplinary proceedings commenced against the licensee in connection with its operations;

(c) Any information relating to the following, which shall also be reported to the relevant sports governing body or equivalent:

Abnormal wagering activity or patterns that may indicate a concern with the integrity of a sporting event or events;
Any potential breach of the internal rules and codes of conduct pertaining to sports wagering of a relevant sports governing body or equivalent, to the extent the licensee has actual knowledge of the potential breach; and
Any other conduct that corrupts a sports wagering outcome of a sporting event or events for purposes of financial gain, including match-fixing; or

(d) Any information relating to suspicious or illegal wagering activities, including the use of funds derived from illegal activity, the placement of wagers to conceal or launder funds derived from illegal activity, the use of agents to place wagers, and the use of false identification in placing wagers.

(2) A licensee shall maintain the confidentiality of information provided by a sports governing body or equivalent for purposes of investigating or preventing the conduct established in subsection (1)(d) of this section, unless disclosure is required by KRS Chapter 230, the corporation, or other law or court order, or unless the sports governing body or equivalent consents to its disclosure in writing.

(3) A licensee receiving a report of suspicious or illegal wagering activity may suspend wagering on sporting events or types of wager related to the report, and may place a hold on suspicious wagers while investigating, but may only cancel or void sports wagers related to the report after receiving written approval from the corporation.

(4) Upon request by the corporation or its designee, a licensee shall provide remote, read-only access and the necessary software and hardware for the corporation to evaluate or monitor the sports wagering system. If requested, the licensee shall provide the corporation with remote access or other approved mechanism as established in paragraphs (a) through (d) of this subsection, which shall provide:

(a) All reports of abnormal wagering activity;

(b) Whether the abnormal wagering activity was subsequently determined to be suspicious or illegal wagering activity;

(d) The actions taken by the licensee according to its integrity monitoring system.

(5) Nothing in this section shall require a licensee to provide any information in violation of federal, state or local law or regulation, including laws and regulations relating to privacy and personally identifiable information .

(6) A licensee shall maintain records of all integrity monitoring services and activities, including all reports and suspicious or illegal wagering activity and any supporting documentation, for a minimum of five (5) years after a sporting event occurs. The licensee shall disclose these records to the corporation upon request.

(7) The corporation may require a licensee to provide any hardware or software necessary to the corporation, or to an independent testing laboratory approved by the corporation in the best interests of sports wagering, for evaluation of the licensee's sports wagering offering or to conduct further monitoring of sports wagering data.

Section 12. Personally Identifiable Information Security.

(1) Any information obtained in respect to a patron, including confidential information, personally identifiable information, and authentication credentials for a sports wagering account, shall be collected in compliance with the licensee's privacy policies established in its internal controls. Both personally identifiable information and the sports wagering account funds shall be considered as critical assets for the purposes of risk assessment.

(2) An employee or agent of the licensee shall not divulge any confidential information or personally identifiable information related to a patron, the placing of any wager, or any other sensitive information related to the operation of the licensee without the consent of the patron, except as required by this section, the corporation, and as otherwise required by state or federal law.

(3) The internal controls shall include procedures for the security and sharing of confidential information, personally identifiable information, funds in a sports wagering account, and other sensitive information, including:

(a) The designation and identification of one (1) or more employees having primary responsibility for the design, implementation, and ongoing evaluation of procedures and practices;

(b) The procedures to be used to determine the nature and scope of all information collected, the locations in which information is stored, and the storage devices on which information can be recorded for purposes of storage or transfer;

(d) The procedures to be used if a breach of data security has occurred, including required notification to the corporation.

Section 13. Complaints Pertaining to Sports Wagering. The internal controls shall provide procedures for receiving, investigating, responding to, and reporting on complaints by patrons.

(1) If a patron makes a complaint, the licensee shall, within twenty-four (24) hours, issue a complaint report, setting out:

(a) The name of the complainant;

(b) The nature of the complaint;

(d) The date of the complaint; and

(e) The action taken or proposed to be taken, if any, by the licensee.

(2) All complaints received by a licensee from a patron and the licensee's responses to complaints shall be retained for at least five (5) years and made available to the corporation upon request.

(3) A licensee shall investigate and attempt to resolve all complaints with the patron within ten (10) days of the complaint being filed.

Section 14. Prohibition of Credit Extension. The internal controls shall include controls relating to not allowing the acceptance of a sports wager or deposit of funds into a sports wagering account that is derived from the extension of credit by affiliates or agents of the licensee. For purposes of this section, credit shall not be deemed to have been extended if, although funds have been deposited into a sports wagering account, the licensee is awaiting actual receipt of the funds in the ordinary course of business.

(1) Credit providers such as small amount credit contracts shall not be advertised or marketed to patrons.

(2) A patron shall not be referred to a credit provider to finance their sports wagering activity.

(3) Personally identifiable information related to a patron shall not be provided to any credit provider.

Section 15. Prohibited Patrons. The internal controls shall include commercially and technologically reasonable measures to prevent access to sports wagering by any prohibited patrons at a licensed premises and online via Web site or mobile application.

(1) If a licensee detects, or is notified of, an individual suspected of being a prohibited patron who had engaged or is engaging in prohibited sports wagering, the licensee shall use reasonable measures to verify whether the individual is prohibited or not.

(2) If the licensee is able to establish, by reasonable measures, that the individual is prohibited, the licensee shall cancel a sports wager.

Section 16. Layoff Wagers. The internal controls shall include procedures for a licensee to accept layoff wagers placed by other licensees and place layoff wagers with other licensees for the purpose of offsetting sports wagers.

(1) The licensee placing a layoff wager shall inform the licensee accepting the wager that the wager is being placed by a licensee and shall disclose their identity.

(2) A licensee may decline to accept a layoff wager in its sole discretion.

(3) Layoff wagers shall be reported to the corporation daily.

Section 17. Reports of Licensees. The internal controls shall include the licensee's capacity to prepare standard reports related to sports wagering revenues, wagering liability, patron information, payouts, or any combination thereof. The internal controls shall be amended to include any additional reports required by the corporation to audit sports wagering activity to ensure that all reports shall be prepared in accordance with the technical conditions prescribed by the corporation pursuant to KRS 230.290. The internal controls shall provide the licensee's process for the filing of the reports prepared pursuant to this section. Any information provided under this section shall be confidential and proprietary and shall be exempt from disclosure unless disclosure is required by 809 KAR Chapter 10, by other law, or by court order.

Section 18. Corporation Access to Sports Wagering Data. The internal controls shall establish measures to ensure that all sports wagering data shall be maintained in compliance with KRS Chapter 230 and KAR Title 809. The internal controls shall also establish measures to ensure that all sports wagering data shall be segregated and controlled to prevent unauthorized access.

(1) Licensees shall provide the corporation with access to all applicable data, upon request and with reasonable notice.

(2) Licensees shall retain data for a minimum of five (5) years.

Section 19. Independent Audit of Internal Controls. Licensees shall have their internal controls independently audited at least once every two (2) years with the results documented in a written report. This shall include internal controls conducted by an affiliate on behalf of the licensee. Reports shall be maintained and available to the racing commission for at least five (5) years.

(1) Independent audits may be conducted by the racing commission in accordance with KAR Titles 809 and 810 and GLI-33 Standards, or a third-party contractor approved by the racing commission in the best interests of sports wagering. The racing commission may, in its discretion, approve the licensee to complete an internal audit, if the licensee uses an independent auditing team to serve as a third-party contractor for use in completing this audit.

(2) The racing commission or third-party contractor shall be responsible for auditing the licensee's compliance with KRS Chapter 230 and KAR Title 809, the Wagering Procedures and Practices established within the GLI-33 Standards, and the internal controls.

(3) Documentation shall be prepared to evidence all independent audit work performed as it relates to the requirements of this section, including all instances of noncompliance.

(4) Independent audit reports shall include objectives, procedures and scope, findings and conclusions, and recommendations.

(5) Independent audit findings shall be reported to management. Management shall be required to respond to the independent audit findings and the stated corrective measures to be taken to avoid recurrence of the audit exception. Management responses shall be included in the final independent audit report.

(6) Follow-up observation and examinations shall be performed to verify that corrective action has been taken regarding all instances of noncompliance cited by the independent audits. The verification shall be performed within six (6) months following the date of notification.

(7) The licensee may reuse the results of prior audits conducted within the audit period by the same third-party contractor in another sports wagering jurisdiction. A reuse shall be noted in the audit report. This reuse option shall not include any internal controls unique to the Commonwealth, which shall require a new audit.

History

RELATES TO: KRS Chapter 230
STATUTORY AUTHORITY: KRS 230.260(16), 230.811(2)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16)(a) requires the corporation to promulgate regulations to establish standards related to sports wagering, including standards for "maintaining and auditing books and financial records, securely maintaining records of bets and wagers, integrity requirements for sports wagering and related data surveillance and monitoring systems, and other reasonable technical criteria related to conducting sports wagering." KRS 230.811(2) requires tracks and service providers to "comply with the standards established by the corporation. . . to ensure the integrity of the system of sports wagering." This administrative regulation establishes internal control standards, including administration and accounting controls, and establishes certain duties to permit access to the corporation of information and records, record retention, and reporting requirements.
History: 50 Ky.R. 561; 1346; 1520; eff. 4-2-2024; TAm eff. 7-1-2024.

809 KAR 10:007 Responsible gaming and advertising {#sec-809-kar-10-007 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:007}

Section 1. Self-Exclusion List.

(1) Each operator licensee shall develop a corporation-approved self-exclusion list for individuals who wish to be temporarily or permanently excluded from gambling in the Commonwealth for any reason, such as self-identification as problem or compulsive gamblers.

(2) The corporation shall consider at least the factors established in paragraphs (a) through (d) of this subsection in approving a self-exclusion list.

(a) The list shall include the names and other identifying information of the individuals who have self-excluded from sports wagering at a licensed premises and online via a licensee-specific Web site, mobile application, or by phone.

(b) Each licensee shall display a notice to the public of the existence of the self-exclusion list and the method or methods individuals may use to self-identify at the licensed premises, online, or by phone.

(c) The notice shall be displayed at public entrances to the race and sports book location and on the licensee's Web site or mobile application.

(d) The notice shall include information about the consequences of self-exclusion.

(3) The notice and its placement locations shall be approved by the corporation. In approving the notice, the corporation shall consider the notice's visibility and any other relevant factors.

(4) Each licensee shall collect self-exclusion information from individuals who self-identify as problem or compulsive gamblers.

(5) The self-exclusion information collected shall include the individual's name, address, date of birth, and other identifying information as established by the corporation in accordance with KRS 230.290.

(6) The licensee shall provide any newly-collected self-exclusion information to the corporation on an as-needed basis, but at least weekly through the online portal.

(7) The corporation shall compile and maintain a comprehensive list of all voluntarily self-excluded persons.

(8) The comprehensive list shall include the self-exclusion information provided by each licensee.

(9) The comprehensive list shall be provided to all licensees and updated on an as-needed basis, but at least monthly.

(10) Pursuant to KRS 61.878(1)(a) and KRS 230.260, information collected under this Section shall be exempt from disclosure under the Kentucky Open Records Act, KRS 61.870 through 61.884.

(11) Self-exclusion information shall be kept confidential and shall not be disclosed except as necessary to enforce KAR Titles 809 and 810 or as required by law.

(12) Each licensee shall establish its own self-exclusion policy. Each policy shall be approved by the corporation to ensure the best interests of sports wagering and compliance with KRS 230.260.

(13) The policy may cover how the licensee chooses to exclude individuals on the self-exclusion list. The policy may include identification and verification, forfeiture of prizes by voluntarily excluded persons, security personnel, technology, employee training, contractual obligations, or collaboration with other licensees.

(14) Each licensee shall review its self-exclusion policy at least once every two (2) years and amend it as necessary to ensure:

(a) Compliance with KAR Titles 809 and 810;and

(b) The policy's effectiveness in achieving the purpose for which it is established.

Section 2. Responsible Gaming Program.

(1) A licensee shall develop and maintain a responsible gaming program that shall be approved by the corporation pursuant to this section. The responsible gaming program shall require:

(a) Posting in a conspicuous place on the licensee's Web site or mobile application and in every licensed premises a sign that bears a toll-free number for a corporation-approved organization that provides assistance to problem or compulsive gamblers;

(b) Providing corporation-approved disclosures on the licensee's Web site or mobile application and informational leaflets or other similar materials at the licensed premises containing information on the dangers associated with problem gambling;

(c) Providing patrons expressing concern with a gambling problem with information on corporation-approved organizations that provide assistance to problem or compulsive gamblers;

(d) Providing notification that underage gambling is a criminal offense and that anyone who facilitates an underage person to place a sports wager has committed a criminal offense; and

(e) Ensuring that any request by a patron who wishes to self-exclude from sports wagering shall be honored by the licensee.

(2) In approving the organizations and disclosures established in subsection (1) of this section, the corporation shall consider industry standards for responsible gambling and any other relevant factors.

(3) At least every (5) years, the licensee shall ensure that the licensee's responsible gaming program utilized in Kentucky shall be independently reviewed by a third party and performed by a third party approved by the corporation based on experience with auditing, industry standards, and responsible gaming. The corporation shall require the licensee to pay for the independent review.

Section 3. Advertising and Marketing.

(1) A licensee shall not allow, conduct, or participate in any false or misleading advertising or marketing concerning the licensee's sports wagering operations.

(2) A licensee shall only make representations concerning winnings that are accurate, not misleading, and capable of substantiation at the time of the representation. An advertisement shall be misleading if the advertisement makes representations about average winnings without equally prominently representing the average net winnings of all patrons.

(3) A licensee shall not advertise or market at elementary, middle, or high school activities. The prohibition in this subsection shall exclude an advertisement distributed via mass media, such as television, radio, print media, or the Internet, if the advertisement is not specifically directed toward (but could be incidentally received by) elementary, middle, or high schools.

History

RELATES TO: KRS Chapter 230
STATUTORY AUTHORITY: KRS 230.260(15), (16)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(15) requires the corporation to "promulgate administrative regulations establishing a self-exclusion list for individuals who self-identify as being problem or compulsive gamblers." KRS 230.260(16) requires the corporation to "promulgate administrative regulations to establish standards for the conduct of sports wagering." This administrative regulation establishes a self-exclusion list and responsible gaming programs for sports wagering participants.
History: 50 Ky.R. 567; 352; 1525; eff. 4-2-2024; TAm eff. 7-1-2024.

809 KAR 10:008 Disciplinary actions and hearings {#sec-809-kar-10-008 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:008}

Section 1. Grounds for Disciplinary Actions.

(1) The corporation may take disciplinary action against any person holding a license for a violation of any of the provisions of KRS Chapter 230 or KAR Titles 809 and 810, by the licensee or its employees or agents.

(2) Acceptance or renewal of a license by a licensee shall constitute an agreement on the part of the license-holder to comply with KRS Chapter 230 and KAR Titles 809 and 810.

Section 2. Violations.

(1) It shall be a violation of this administrative regulation if an applicant or licensee:

(a) Provides the corporation, any advisory committee, or any corporation employee with incorrect, false, or misleading information;

(b) Fails to submit information requested by the corporation, any advisory committee, or any corporation employee pursuant to KRS Chapter 230 or KAR Titles 809 or 810;

Involving moral turpitude;
That constitutes a felony;
Involving sports wagering;
Of cruelty, mistreatment, abuse, or neglect of a horse; or
That discredits or tends to discredit the Commonwealth of Kentucky, sports wagering, or the gaming industry;

(d) Engages in conduct that is against the best interests of horse racing, pari-mutuel wagering, or sports wagering; or

(e) Violates any provision of KRS Chapter 230 or KAR Titles 809 or 810.

(2) For any violation established in subsection (1) of this section, the corporation may:

(a) Deny a license application;

(b) Suspend or revoke a license;

(d) Issue licensure conditions, such as restitution of money, restitution of property, or making periodic reports to the corporation or designee as required; or

(e) Issue a written reprimand or admonishment.

Section 3. Disciplinary Process Investigations.

(1) The corporation shall investigate suspected violations of KRS Chapter 230 and KAR Titles 809 and 810 of the Kentucky Administrative Regulations.

(2) Upon the completion of the investigation, the person or persons completing the investigation shall submit a written report to the corporation containing a statement of facts revealed by the investigation.

(3) Based on consideration of the investigative report, the corporation shall determine if there is probable cause to believe that a violation has been committed.

Section 4. Notice of Disciplinary Action and Appeals.

(1) Upon determination that probable cause exists, the corporation shall issue written notice of disciplinary action. The notice shall establish:

(a) The statutory or regulatory violation;

(b) The factual basis on which the disciplinary action is based;

(d) A statement that the notice may be appealed and that an appeal shall be in accordance with KRS Chapter 13B by written notice sent to the corporation within twenty (20) calendar days.

(2) Notice of a disciplinary action under this section may be appealed to an administrative hearing.

(3) A written request for an administrative hearing shall be filed with the corporation within twenty (20) calendar days of the date of the notice. The request shall identify the specific issues in dispute and the legal basis on which the corporation's or designee's decision on each issue is believed to be erroneous.

(4) An administrative hearing under this section shall be conducted in accordance with KRS Chapter 13B.

(5) If the request for an administrative hearing is not timely filed as established in subsection (3) of this section, the penalty stated in the notice of disciplinary action shall be effective upon the expiration of the time to request an administrative hearing.

(6) Denial of an application for licensure may also be appealed. An appeal shall be in accordance with KRS Chapter 13B, by submitting a written request for an administrative hearing to the corporation within twenty (20) calendar days of the date of the notice of denial.

History

RELATES TO: KRS Chapter 230
STATUTORY AUTHORITY: KRS 230.260(16), 230.361
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.260(16) requires the corporation to "promulgate administrative regulations to establish standards for the conduct of sports wagering." KRS 230.361 states the "corporation shall promulgate administrative regulations to establish a fully functioning sports wagering system...." This administrative regulation establishes procedures and grounds for disciplinary actions, imposing sanctions, investigating suspected violations, providing notice of disciplinary actions, and requesting and conducting an administrative hearing.
History: 50 Ky.R. 569; 1526; eff. 4-2-2024; TAm eff. 7-1-2024.

Title 809 KAR — Public Protection Cabinet - Kentucky Horse Racing Commission

Chapter 1 Licensing

809 KAR 1:002 Service provider licensing {#sec-809-kar-1-002 omnilex-key=us-ky-regs-official--title-809--809 KAR 1:002}

809 KAR 1:003 Occupational licenses {#sec-809-kar-1-003 omnilex-key=us-ky-regs-official--title-809--809 KAR 1:003}

Chapter 10 Technical Criteria

809 KAR 10:001 Definitions {#sec-809-kar-10-001 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:001}

809 KAR 10:002 Standards for sports wagering {#sec-809-kar-10-002 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:002}

809 KAR 10:003 Technical requirements and oversight {#sec-809-kar-10-003 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:003}

809 KAR 10:004 Sports wagering accounts {#sec-809-kar-10-004 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:004}

809 KAR 10:005 Licensed premises {#sec-809-kar-10-005 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:005}

809 KAR 10:006 Audit and internal control standards {#sec-809-kar-10-006 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:006}

809 KAR 10:007 Responsible gaming and advertising {#sec-809-kar-10-007 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:007}

809 KAR 10:008 Disciplinary actions and hearings {#sec-809-kar-10-008 omnilex-key=us-ky-regs-official--title-809--809 KAR 10:008}

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