205 CMR, § 238.14 - Risk Management Framework

(1) A Sports Wagering Operator must implement risk management procedures. These procedures may be provided in-house by a unit capable of performing this function with appropriate segregation of functions and reporting duties, or by a licensed Sports Wagering Vendor.

(2) A system of Internal Controls submitted by a Sports Wagering Operator in accordance with 205 CMR 238.02 shall contain a description of the risk management framework, including, but not limited to:

(a) Automated and manual risk management procedures;

(b) Employee management, including access controls and segregation of duties;

(c) Information regarding identifying and reporting fraud and suspicious conduct;

(d) Controls ensuring regulatory compliance;

(e) Description of Anti-Money Laundering (AML) compliance standards;

(f) Description of all software applications that comprise the Sports Wagering Equipment;

(g) Description of all types of Sports Wagers available to be offered by the Sports Wagering Operator;

(h) Description of the method to prevent past-post Wagers from being placed;

(i) Description of all integrated third-party platforms; and

(j) Any other information which may be required by the Commission.

(3) A Sports Wagering Operator shall file with the Commission, in a manner and form approved by the Commission, a report of any error that occurs in offering an event or Wager or if an unapproved Sporting Event or Wager category is offered to the public.

Notes

205 CMR, § 238.14

Adopted by Mass Register Issue 1486, eff. 12/21/2022 (EMERGENCY). Amended by Mass Register Issue 1492, eff. 3/9/2023 (EMERGENCY). Amended by Mass Register Issue 1494, eff. 3/9/2023 (COMPLIANCE). Amended by Mass Register Issue 1498, eff. 6/7/2023 (EMERGENCY). Amended by Mass Register Issue 1503, eff. 6/7/2023 (COMPLIANCE). Amended by Mass Register Issue 1523, eff. 6/7/2024.