Original Section(s)

11 VAC 5-70-160 Audit, Financial, and Recordkeeping Requirements.

GLI Recommendations

11 VAC 5-70-160.A

1. A permit holder shall receive engage a certified public accountant to prepare in accordance with generally accepted accounting principles an annual audit of the financial transactions and condition of the permit holder’s sports betting operation and submit that audit to the Director. This audit shall include two components, a financial audit and an internal control audit as described below.

• 1. 1. The permit holder shall submit a financial audit, prepared by a certified public accountant to prepare in accordance with generally accepted accounting principles, of the permit holder’s financial operations and handling of player accounts and funds pursuant to the sports betting law.
     2. The permit holder shall submit an internal control system audit, prepared by an independent testing laboratory or an independent professional approved by the Director, to verify compliance with the operational provisions of the sports betting law and this chapter, the appendices of the GLI-33 Standards for Event Wagering Systems or other generally accepted standards approved by the Board in addition to the following:

• 1. 1. 1. Review of the internal control system and operational processes that are critical to compliance;
        2. Any changes to the internal control system and operating environment since the previous review.
        3. The effectiveness of the permit holder’s internal control systems to ensure compliance with all statutory and Board requirements
        4. The permit holder’s compliance with its internal control systems; and
        5. Any other objectives established by the Board

GLI recommends updates based on what has been seen in other markets, including a reference to GLI-33 as well as what operational aspects to consider for these audits.

GLI also recommends moving requirements after 11 VAC 5-70-160.D to other sections (as indicated in the other recommendations) where they may fit better.