North Carolina Administrative Code

24 NCAC 06A .0325 Conduct of a Hearing (a) All hearings shall be open to the public. Hearings shall be conducted in a fair and impartial manner. (b) At the hearing the parties shall be given an opportunity to present evidence on issues of fact, to examine and cross-examine witnes…

24 NCAC 06A .0326 Venue of a Hearing (a) The hearing of a contested case shall be conducted where the Commission maintains its principal office or in any county determined by the hearing officer in their discretion to promote the ends of justice or better serve the convenience of…

24 NCAC 06A .0327 Failure to Appear (a) If a party fails to appear in a contested case after they have been given proper notice, the hearing officer may continue the hearing or proceed with the hearing and make its decision in the absence of the party. (b) Subject to Paragraph (c…

24 NCAC 06A .0328 Examination of Witnesses (a) Witnesses shall be examined orally under oath or affirmation. Opposing parties shall have the right to cross-examine any witness whose testimony is introduced by an adverse party. All parties may cross-examine any witness called by t…

24 NCAC 06A .0329 Hearing Officer Recommendation (a) The recommendation of the hearing officer shall be in writing and shall include findings of fact, conclusions of law, and a recommended disciplinary action, if any, to the Sports Betting Committee. (b) Findings of fact shall be…

24 NCAC 06A .0330 Sports Betting Committee Decision (a) After review and consideration of the hearing officer's recommendation, the Sports Betting Committee shall make a written order adopting, amending, or rejecting and remanding the recommendation of the hearing officer. (b) Af…

24 NCAC 06A .0331 Appeal to the Commission (a) A Responsible Party may appeal the order of the Sports Betting Committee to the Commission by filing a written appeal with the Commission no later than 15 Days from receipt of the Sports Betting Committee's order. The written appeal …

24 NCAC 06A .0332 Judicial Review Any party or Person aggrieved by the final decision or order of the Commission in a hearing, and that has exhausted all administrative remedies made available to the party or Person aggrieved by statute or Commission Rule, may seek judicial revie…

24 NCAC 06A .0333 Official Record (a) The Commission shall prepare an official record of a hearing that shall include: (1) notices, pleadings, motions, and intermediate rulings; (2) questions and offers of proof, objections, and rulings thereon; (3) evidence presented; (4) matter…

24 NCAC 06A .0334 Request for Transcript of Hearing (a) Upon written request, Commission staff shall provide a non-certified copy of a transcript of hearing within a reasonable time after receiving the request. (b) Should a party wish to receive a certified copy of a transcript o…

24 NCAC 06A .0335 Summary Suspension (a) Counsel for the Commission shall present a motion for summary Suspension to the Chair of the Commission, or the Chair of the Sports Betting Committee if the Chair of the Commission is unavailable, and may be presented ex parte. The motion …

Section .0400 – Audit and Internal Control Standards 24 NCAC 06A .0401 Internal Controls (a) Unless otherwise provided for by the Commission, before beginning Wagering operations, an Operator shall submit its Internal Controls in detail, as identified in these Rules. (b) The Oper…

24 NCAC 06A .0402 Revisions to Internal Controls (a) A proposed revision to a portion of an Internal Control shall be submitted to the Director for approval. If within 30 Days the Director has not approved, denied, or otherwise provided written notice of an action taken to the pr…

24 NCAC 06A .0403 Emergency Revision to Internal Controls (a) In the event of an emergency, the Operator may temporarily revise or amend its Internal Controls. The Operator shall notify the Director in writing that an emergency exists before temporarily amending its Internal Cont…

24 NCAC 06A .0404 Operator Remains Ultimately Responsible for Internal Controls (a) To the extent a Service Provider, Supplier, or other third-party is involved in or provides Internal Controls required in this Chapter, the Operator's Internal Controls shall document the roles an…

24 NCAC 06A .0405 Administrative and Accounting Procedures The Operator's Internal Controls shall include a detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of these Rules, including: (1) Administrative controls a…

24 NCAC 06A .0406 Jobs Compendium The Internal Controls shall include a complete and up-to-date jobs compendium detailing job descriptions, chains of command, and lines of authority for personnel engaged in the Wagering operation. The Operator shall submit the updated jobs compen…

24 NCAC 06A .0407 Information Security Responsibilities (a) The Internal Controls shall ensure that an Operator effectively implements its information security program in compliance with this Chapter and effectively allocates information security function responsibilities. (b) Th…

24 NCAC 06A .0408 Information Processing The Internal Controls shall include a summary description of the Operator's or its Affiliates' use of computerized algorithms, automated decision-making, machine learning, artificial intelligence, or any similar system that analyzes patron…

24 NCAC 06A .0409 Reporting Requirements in the Event of a Cyber Incident (a) The Internal Controls shall ensure that an Operator that experiences a cyber incident to its information system resulting in a material loss of control, compromise, unauthorized disclosure of data or in…

24 NCAC 06A .0410 Accounting Records (a) The Operator shall maintain complete, accurate, and legible records of transactions related to their Wagering Operation for five years, including transactions pertaining to revenues, expenses, assets, liabilities, and equity in conformance…

24 NCAC 06A .0411 Financial Audits (a) Upon submitting an application, and annually thereafter, Operators and Service Providers shall submit to the Director, within 120 Days of the Operator's fiscal year end, its financial audit for that fiscal year. (b) The financial audit shall…

24 NCAC 06A .0412 Retention, Storage, and Destruction of Records The Internal Controls shall include a records retention schedule, and provisions related to the storage and destruction of records that at a minimum incorporates the following provisions: (1) An Operator shall maint…

24 NCAC 06A .0413 Reserve Requirement (a) The Internal Controls shall include a plan to maintain and protect sufficient Cash or Cash Equivalents and other supplies to continuously conduct Sports Wagering or Pari-Mutuel Wagering through a reserve in the amount needed to ensure the…

24 NCAC 06A .0414 Risk Management Framework (a) The Operator shall implement and maintain an effective risk management framework. This framework may be provided in-house by a unit capable of performing this function with appropriate segregation of functions and reporting duties, …

24 NCAC 06A .0415 Taxation Requirements The Internal Controls shall ensure that the Operator remains in full compliance with Internal Revenue Service and North Carolina Department of Revenue requirements, and the Operator shall provide for the withholding or reporting of income t…

24 NCAC 06A .0416 Bank Secrecy Act Compliance The Internal Controls shall ensure that the Operator remains in full compliance with provisions of The Bank Secrecy Act of 1970, 31 U.S.C 5311, and related federal regulations, applicable to the operation of Sports Wagering or Pari-Mu…

24 NCAC 06A .0417 Anti-Money Laundering Monitoring The Internal Controls shall implement anti-money laundering procedures and policies that adequately address the risks posed by Sports Wagering or Pari-Mutuel Wagering for the potential of money laundering and terrorist financing.…

24 NCAC 06A .0418 Integrity Monitoring and Suspicious Behavior (a) An Operator shall implement and maintain an effective Integrity Monitoring system. This solution may be provided in-house by a unit capable of performing this function with appropriate segregation of functions and…

24 NCAC 06A .0419 Data Security The Internal Controls shall ensure that an Operator maintains the security and confidentiality of Wagering data, Player data, Personal Information, financial information, and other confidential information, including information provided by a Sport…

24 NCAC 06A .0420 Personal Information Security (a) Information an Operator obtains with respect to the creation and maintenance of a Wagering Account, including Personal Information and authentication credentials, shall be collected in compliance with the Operator's privacy poli…

24 NCAC 06A .0421 Disputes Pertaining to Wagering (a) The Operator's Internal Controls shall set forth its procedures for receiving, investigating, responding to and reporting on disputes submitted to it by Players. (b) An Operator shall include on their websites, mobile applicat…

24 NCAC 06A .0422 Prohibition of Credit Extension (a) The Internal Controls shall include controls to prohibit the Operator from accepting a Wager or deposit of funds into a Wagering Account that is derived from the extension of credit to a Player by an Operator's Affiliates or a…

24 NCAC 06A .0423 Ineligible Persons (a) The Internal Controls shall include commercially and technologically reasonable measures to prevent access to Sports Wagering or Pari-Mutuel Wagering by an Ineligible Person. (b) If an Operator detects, or is notified of, information tendi…

24 NCAC 06A .0424 Reporting Requirements Related to Ineligible Persons (a) The Internal Controls shall ensure that an Operator submits an Ineligible Person Report to the Director each month reporting the following information for the previous month, as applicable: (1) the number …

24 NCAC 06A .0425 Wagering Reports of Operators (a) The Internal Controls shall detail the Operator's ability to prepare reports for Wagering Activities as required by the Commission including reports detailing, as applicable: (1) for Sports Wagering, the Gross Wagering Revenue, …

24 NCAC 06A .0426 Access to Wagering Data and Records by Commission or the Department of Revenue (a) The Operator's Wagering data and records concerning its Wagering operation in the State shall be subject to inspection, review, and audit by the Commission staff, as assigned by t…

24 NCAC 06A .0427 Independent Audit of Internal Controls (a) The Operator shall have its Internal Controls independently audited at least once every two years with the results documented in a written report. For Sports Wagering, this includes Internal Controls conducted by other …

24 NCAC 06A .0428 TIMELY RESPONSE TO FORMAL LETTER OF INQUIRY (a) The Commission, through its legal counsel or other staff, may send a Responsible Party, Key Person, or applicant a formal letter of inquiry requesting a response. The Letter of Inquiry, or attachments thereto, shal…

SECTION .0500 – STANDARDS FOR WAGERING 24 NCAC 06A .0501 Wagering Rules (a) The Operator shall adopt comprehensive Wagering Rules, which shall be approved by the Director. The Wagering Rules, together with other information the Director considers appropriate, shall be conspicuous…

24 NCAC 06A .0502 Acceptance of Wagers (a) Wagers shall be placed through a Wagering Account or within a Wagering Facility. (b) Available Wagers shall be displayed to Players and include the lines or odds, the Wager Type, and Wagering Event on which Wagers are being accepted. (c)…

24 NCAC 06A .0503 Promotional or Bonus Wagering (a) An Operator may conduct promotions or bonuses in accordance with this Rule. Procedures for the issuance, acceptance, and tracking of promotions or bonuses shall be defined in the Internal Controls. (b) An Operator shall maintain…

Section .0600 – Responsible Gaming 24 NCAC 06A .0601 Responsible Gaming Plan (a) At least 30 Days prior to conducting Sports Wagering or Pari-Mutuel Wagering in North Carolina, Operators shall submit a responsible gaming plan to the Commission that shall include information relat…

24 NCAC 06A .0602 Voluntary Exclusion Program (a) The Commission operates a Voluntary Exclusion Program under which Individuals are excluded from establishing a Wagering Account or placing Wagers for a set period, up to and including that Individual's lifetime. Information regard…

24 NCAC 06A .0603 Eligibility and Petition for Removal from Voluntary Exclusion Program Before Completion of Exclusion Period (a) To be eligible for removal from the Voluntary Exclusion Program, a Voluntarily Excluded Person shall participate in a reinstatement session with a des…

24 NCAC 06A .0604 involuntary exclusion (a) When the Commission is notified of an Individual who has been adjudicated by law as prohibited from engaging in Wagering in the State, the Individual shall be excluded from establishing or maintaining a Wagering Account or placing Wager…

24 NCAC 06A .0605 Commission Maintenance of Exclusion Lists (a) The Commission shall maintain lists of all Voluntarily Excluded Persons and Involuntarily Excluded Persons, including the information provided pursuant to Rule .0602 of this Subchapter and any new or updated informat…

24 NCAC 06A .0606 Operator Duties (a) The Operator shall maintain its own copies of the exclusion lists and shall establish Internal Controls to ensure that its copies of the lists are kept up to date. The Operator shall obtain the lists from the Commission in a secure and confid…

24 NCAC 06A .0607 Limitations on Use of Excluded Person's Data and Personal Information (a) Personal Information furnished to or obtained by the Commission pursuant to rules pertaining to the Voluntary Exclusion Program shall be deemed confidential and not be disclosed unless nec…

24 NCAC 06A .0608 Wagering Facilities and Excluded Persons For Wagering Facilities, the prohibition against allowing Voluntarily Excluded Persons and Involuntarily Excluded Persons to be present where Wagering Activities are conducted shall not apply to an excluded Person if: (1)…