(a) Upon application for an operator license, and annually thereafter, an operator shall submit to the Office an audit of the financial transactions and condition of the licensee's total operations prepared by a certified public accountant in accordance with generally accepted accounting principles and applicable District and federal law.

(b)(1) An operator shall be prohibited from wagering through its own sports wagering facility and shall employ reasonable methods to prohibit:

(A) A director, officer, owner, or employee of the operator, and any relative living in the same household as the aforementioned individuals from placing a wager with the operator;

(B) An athlete, coach, referee, team owner, employee of a sports governing body or its member teams, and player and referee union personnel from wagering on a sporting event overseen by their sports governing body;

(C) An individual, group of individuals, or entity with access to non-public confidential information held by the operator from placing wagers with the operator; or

(D) An individual, group of individuals, or entity from placing a wager as an agent or proxy for others.

(2) In determining which individual, group of individuals, or entity is to be excluded from placing a wager pursuant to paragraph (1) of this subsection, an operator shall use publicly available information and any lists of such individuals, group of individuals, or entities that the sports governing body may provide to the Office, and which the Office, or sports governing body, has provided to the operator.

(c) An operator shall:

(1) Employ a monitoring system utilizing software to identify irregularities in volume or odds and swings that could signal suspicious activities that should require further investigation, and immediately report to the Office;

(2) Develop system requirements and specifications according to industry standards and implement the requirements and specifications as required by the Office as part of its minimum internal control standards;

(3) Immediately report to the Office facts or circumstances related to the operation of a sports wagering licensee that may constitute a violation of District or federal law, including suspicious sports waging over a threshold set by the operator as approved by the Office;

(4) Provide a secure location for the placement, operation, and play of sports wagering equipment;

(5) Prevent an individual, group of individuals, or entity from tampering with or interfering with the operation of sports wagering or sports wagering equipment;

(6) Ensure that sports wagering occurs only in the specific locations within a designated sports wagering facility approved by the Office, using an Office-approved mobile application, other digital platform, or sports wagering device that utilizes communications technology to accept wagers originating within the District, and that sports wagering is conducted within the sight and control of designated employees of the licensee and under continuous observation by security equipment, as required by the Office.

(7) Maintain a sufficient cash supply and other supplies within the boundaries of the District;

(8) Maintain daily records showing the gross sports wagering receipts and adjusted gross sports wagering receipts of the operator;

(9) Timely file with the Office records or reports required by this subchapter, or regulations issued pursuant to this subchapter;

(10)(A) Verify that an individual, or group of individuals, placing a wager is of the legal minimum age for placing the wager;

(B) If the sports wagering is conducted using on-line or mobile devices, have in place technical and operational measures to prevent access by those who are underage;

(C) Have an age verification process as a part of its registration, which may include requiring the use of a reputable independent third party that is commonly in the business of verifying an individual's personal identity information; and

(D) Include on its website a description of the possible repercussions for an underage player, such as immediate stoppage of play, account closure, and confiscation of winnings.

(11)(A) Allow individuals to set limits with the operator, including limits on the time spent betting and the amounts to be wagered, and take reasonable steps to prevent those individuals from overriding their self-imposed limits, including, at the request of the individual, sharing the requested limitations with the Office for the sole purpose of disseminating the request to other operators;

(B) Prohibit an individual from sports wagering over the limit the individual has set or from sports wagering if the individual is on a list provided by the Office of the individuals who have requested to be excluded from sports wagering; and

(C) Implement and maintain reasonable security procedures and practices that are appropriate to the nature of the personal information of individuals who place a wager with the operator from unauthorized access, use, modification or disclosure;

(12) Establish procedures to evaluate requests made by third parties to exclude an individual from sports wagering, including requests to exclude an individual from placing sports wagers when the requestor provides documentary evidence of sole or joint financial responsibility for the source of funds deposited with an operator by the individual or a court order requiring the individual to pay unmet child-support obligations;

(13) Establish a system to allow individuals to self-identify as problem gamers to the Office and request to be excluded from any gaming regulated by the Office;

(14) Establish a system to enable the Office to provide to the operator a daily list of players who have requested to be excluded from sports wagering;

(15) Prohibit an operator, director, officer, owner, and employee of the operator from extending credit to an individual, group of individuals, or entity that places wagers with the operator or seeks to place wagers with the operator;

(16) Prohibit an individual, group of individuals, or entity that places wagers with the operator from establishing more than one active account with the operator; and

(17) Permit an individual, group of individuals, or entity that places wagers with the operator to terminate the account at any time and for any reason.

(d) An operator's unauthorized or improper disclosure of names included on the self-exclusion list, as allowed by subsection (c)(11) of this section, shall be punishable by penalties determined by the Office, including revocation of the operator's license.

(e)(1) Each operator shall submit a monthly report to the Office that includes:

(A) The total amount of sports wagers received from authorized sports bettors;

(B) The total amount of prizes awarded to sports bettors;

(C) The total amount of gross sports wagering revenue received by the operator;

(D) The total number of authorized sports bettors that requested to exclude themselves from sports wagering; and

(E) Any additional information the Office considers necessary to carry out the provisions of this subchapter.

(2) The Office shall publish reports based on the information provided by operators pursuant to this subsection.

(f) An operator may continue to use supplies acquired from a licensed sports wagering supplier whose supplier license has expired or has otherwise been cancelled, unless the Office prohibits such use.

(Mar. 10, 1981, D.C. Law 3-172, § 307; as added May 3, 2019, D.C. Law 22-312, § 2(e), 66 DCR 1402.)

Applicability of D.C. Law 22-312: § 7177 of D.C. Law 23-16 amended § 5(a) of D.C. Law 22-312 to repeal the delayed applicability affecting this section. Therefore the creation of this section by D.C. Law 22-312 has been implemented.

Section 7177 of the Fiscal Year 2020 Budget Support Emergency Amendment Act of 2019 (D.C. Act 23-91) amended § 5 of D.C. Law 22-312 removing the applicability restriction impacting this section. Therefore the amendment of this section by D.C. Law 22-312 has been given effect.

Applicability of D.C. Law 22-312: § 5 of D.C. Law 22-312 provided that the creation of this section by § 2(e) of D.C. Law 22-312 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

For temporary (90 days) creation of this section, see § 2(e) of the Sports Wagering Lottery Congressional Review Emergency Amendment Act of 2018 (D.C. Act 23-43, Apr. 15, 2019, 66 DCR 5273).

For temporary (90 days) creation of this section, see § 2(e) of the Sports Wagering Lottery Emergency Amendment Act of 2018 (D.C. Act 22-630, Jan. 30, 2019, 66 DCR 1745).