Original Section(s)

11 VAC 5-70-230 Investigations; Reporting.

GLI Recommendations

11 VAC 5-70-230.A

1. 1. 1. 1. 1. In this section “regulated entity” means a person or individual who is a permit holder, license holder, or registrant. The Department may review and monitor the equipment, staff and records of a regulated entity and any of the transactions conducted by the regulated entity in regard to wagers made by players.

GLI recommends moving definition to 11 VAC 5-60-10 and replacing with requirement based on what has been seen in other markets

11 VAC 5-70-230.I

2. A regulated entity shall, as soon as is commercially reasonable, immediately report to the Department Director any information relating to:

1. Criminal, civil, administrative or disciplinary proceedings or non-routine government or law enforcement investigations commenced against the regulated entity in connection with its operations in the Commonwealth or in any jurisdiction;
2. Unusual or suspicious wagering activity or wagering activities or patterns that may indicate a concern with the integrity of a sporting event;
3. Any potential or actual breach of a sports governing body's internal rules and codes of conduct pertaining to sports betting, either:
   1. Known to the regulated entity, or
   2. That reasonably should have been known by the regulated entity;
4. Conduct that corrupts, is intended to corrupt, or unduly influences the betting outcome of a sporting event for the purposes of financial gain, including match fixing; or
5. Suspicious or illegal wagering activities, including:
   1. Cheating;
   2. The use of funds derived from illegal activity to place bets;
   3. Suspicious activities reported to the federal government pursuant to AML laws and regulations;
   4. Prohibited wagers;
   5. Wagers to conceal or launder funds derived from illegal activity;
   6. Use of compensated agents or proxies to place wagers; and
   7. Use of false identification in connection with sports betting activity.

GLI recommends merging clauses with similar intent as well as changes to keep consistent with § 58.1-4044.A. GLI also recommends moving some items into Integrity Monitoring section and moving the remainder up after 11 VAC 5-70-230.A