11 VAC 5-60-60 Forfeiture of winnings by self-excluded individual

The provisions of this section provide the process by which winnings attributable to individuals who are found to be self-excluded individuals may be forfeited.  There is one significant issue which needs to be addressed in this section.  Throughout the section there is a reference to the forfeiture of an individual’s “winnings or other things of value.”  It would be no more appropriate to require permit holders to seize the funds (not ascribable to winnings) in an individual’s account, any more than it would be for a casino operator to seize all the money in a self-excluded individual’s wallet if they were found to have entered the casino.  In the event that a self-excluded individual maintains a sports betting account, the funds in that account (not ascribable to winnings) should be returned to the individual following the procedures outlined in a permit holder’s internal controls.  Additionally, there are a couple minor changes to this section that will improve the clarity of these provisions.

To address the concerns raised above, we suggest the following changes to 11 VAC 5-60-60:

“B.  Upon verification of a self-excluded status, the sports betting permit holder shall:

1. 1. Immediately prohibit access to the individual's sports betting account and seize the individual’s winnings [or other things of value];
   2. Issue a Payout Receipt and Notice of Forfeiture to the excluded player via electronic or regular mail, containing the following:
      1. The total value and a detailed description of winnings [or things of value] that were seized;
      2. The date of the incident;
      3. The name of the self-excluded individual, if known, and basis for determining the individual is a self-excluded individual;
      4. The street and mailing address of the self-excluded individual, if known, at which he or she may be [noticed] notified or served notice regarding any future proceedings;
      5. The identification of the internet or mobile wagering session during which the self-excluded individual was engaged in a gaming transaction; and
      6. Notice to the self-excluded individual that the Department shall be seeking forfeiture of the winnings [or things of value] seized that the individual has the right to be heard about the forfeiture, and that failure to respond to a forfeiture notice from the Department shall be deemed a waiver of the right to be heard.

…

E.  Pursuant to the self-excluded individual’s request submitted under 11 VAC 5-60-20, any winnings [or things of value] seized from a self-excluded individual shall be subject to forfeiture, following notice to the self-excluded individual and an opportunity to be heard. A failure to respond to a forfeiture notice shall result in the waiver of the right to be heard.

F.  The internal controls of a sports betting permit holder shall contain procedures for processing any winnings [or things of value] confiscated or withheld from a self-excluded individual as if the winnings [or things of value] were paid and reported in accordance with normal procedures applicable to such payouts. Such procedures shall include, however, such modification to forms or additional documentation as necessary to record and report the payout as a payout confiscated or withheld from a self-excluded individual. This documentation shall be compared by the sports betting permit holder’s accounting department at the end of the gaming day to the copy of the Payout Receipt and Notice of Forfeiture. Any winnings [or things of value] confiscated or withheld from a self-excluded individual that are paid and reported in accordance with the normal procedures applicable to such payouts, as modified in this section, shall be deducted in the calculation of gross revenue as if the winnings [or things of value] were actually paid to the self-excluded individual.

G.  The Department may initiate forfeiture of a self-excluded individual’s winnings [or things of value] and by sending notice to the self-excluded individual via personal service or regular mail sent to the address [contained] provided by the individual in the request for self-exclusion. Notice shall include a description of the winnings [or things of value] subject to forfeiture and the self-excluded individual's right to a hearing.

H.  If the self-excluded individual wishes to contest the forfeiture, the individual shall submit a written request for a hearing within 15 days of the date of the notice of the forfeiture. If no response is filed by the self-excluded individual within 15 days of the date of the notice of the forfeiture, the winnings [or things of value] shall be deemed forfeited and transmitted to the Commonwealth’s Problem Gambling Treatment and Support Fund. The decision of the Board shall be final and may not be appealed.”