RSA 287-I:8 · Sports Wagering Supervision

287-I:8 Sports Wagering Supervision. – The commission shall create a division of sports wagering which will be responsible for ensuring compliance with the requirements of this chapter and any rules promulgated by the commission in accordance with the authorities granted under this chapter. In addition, the division, under the direction of the director and commission, shall ensure that the commission's agents and vendors comply with the following obligations:

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I.

Each agent or vendor engaged in sports wagering shall submit a security and internal control report for the division's review and approval prior to conducting any sports wagering within the state and every year thereafter. This report shall address all aspects of security and controls including physical security, personnel security, and computer systems security including:

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(a)

Surveillance plans for all retail sports book locations, including surveillance coverage and direct access for the commission to the surveillance system.

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(b)

User access controls for sports book personnel.

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(c)

Segregation of duties within the sports book.

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(d)

Employment background checks and policies.

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(e)

Automated and manual risk management procedures.

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(f)

Procedures for identifying and reporting fraud and suspicious conduct.

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(g)

Procedures to establish connectivity with monitoring services and/or sports governing bodies relating to suspicious activity.

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(h)

Any and all monitoring systems utilized by the agents or vendor to report and receive information on suspicious betting activities.

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(i)

Systems and procedures to prevent prohibited sports bettors from placing wagers.

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(j)

Description of anti-money laundering compliance standards.

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(k)

Descriptions of all integrated third-party systems or components and the security procedures relating to those systems.

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II.

For each wagering computer system used to conduct sports wagering, including all mobile sports wagering platforms within the state, the agent or vendor providing such system shall provide a detailed computer system security report to be approved by the commission prior to the acceptance of wagers and each year thereafter. The report shall address the issues set forth in the security and internal control report along with the following:

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(a)

Documented system security testing performed by a licensed third-party contractor approved by the commission;

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(b)

A description of all software applications that comprise the system;

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(c)

A procedure for third-party auditing of financial transactions received by the system;

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(d)

A description of all types of wagers supported by the system;

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(e)

Unique identification and verification systems for wagers;

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(f)

Procedures to prevent past posting of wagers;

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(g)

A list of data recorded relating to each wager;

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(h)

System redundancy to ensure recording of wagers during a system outage;

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(i)

A mechanism to provide read only access to the commission to the back office system for the purposes of reviewing and auditing wagering activities;

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(j)

Integration with an independent control system to ensure integrity of system wagering information;

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(k)

Capabilities for canceling existing wagers, freezing or suspending wagering across the platform, or for specific events; and

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(l)

Any other issue identified by the division upon review of the proposed gaming system.

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III.

Each agent engaged in sports wagering shall submit house rules for the division's review and approval prior to conducting any sports wagering within the state and every year thereafter. These house rules shall include at a minimum:

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(a)

The method for calculation and payment of winning wagers.

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(b)

The effect of schedule changes for a sports event.

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(c)

The method of notifying bettors of odds or proposition changes.

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(d)

Acceptance of wagers at terms other than those posted.

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(e)

Expiration dates for winning tickets.

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(f)

Circumstances under which the agent will void a bet.

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(g)

Treatment of errors, late bets, and related contingencies.

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(h)

Method of contacting the agents or vendor for questions or complaints.

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(i)

Description of those persons who are prohibited from wagering with the agents or contractor if broader than the prohibited bettors list set forth in this section.

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(j)

The method and location for posting and publishing the approved house rules.

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IV.

Each agent or vendor engaged in sports wagering shall submit accounting controls for the division's review and approval prior to conducting any sports wagering within the state and every year thereafter. These accounting controls shall include at a minimum:

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(a)

A process for documenting and verifying beginning of day cash balance;

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(b)

Processes for recording collection of wagers, payment of wagers, and cancellation of wagers issued;

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(c)

Processes for handling cash within sports book retail locations including segregation of duties related to counting and storage of cash; and

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(d)

The establishment of a segregated account related to New Hampshire sports wagering activities.

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V.

The commission's agents shall submit a responsible gaming plan for the division's review and approval prior to conducting any sports wagering within the state and every year thereafter. This plan should include identification of posting and materials related to problem gaming, resources to be made available to bettors expressing concerns about problem gaming, house imposed player limits, and self-exclusion programs.

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VI.

The commission's agents shall maintain a cash reserve available to pay wagers as determined by the commission.

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VII.

The commission's agents or vendor shall not accept any wager on a sports event unless it has received approval from the commission to conduct that type or category of wager. A type of wager refers to the method of determining the outcome of the wager. The category refers to the kind of event being wagered on. The commission shall approve wager categories and types in a reasonable time frame. Once a particular category or wager type is approved for its first use it may be used on multiple events without further approval.

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VIII.

The commission shall only approve wagers on categories of events where:

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(a)

The outcome can be verified;

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(b)

The outcome can be generated by a reliable and independent process; and

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(c)

The event is conducted in conformity with applicable laws.

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IX.

Wagers made under this section shall be made with:

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(a)

Cash;

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(b)

Cash equivalent;

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(c)

PayPal;

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(d)

Debit card;

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(e)

ACH;

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(f)

Promotional funds; and

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(g)

Any other means approved by the executive director.

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X.

Any agent or contractor who sends or receives electronic sports wagers is responsible to ensure that any transfer of that wager is initiated and received and completed within the state of New Hampshire and that only incidental intermediate routing of the wager occurs outside of the state. The agent and contractor shall be responsible for periodically reviewing their information technology systems and networks to ensure compliance with this section. Source. 2019, 215:1, eff. July 12, 2019.

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