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Can you summarize LAAC Title 42, Part VI, Chapter 7?
Sports Wagering > Records; Accounting; Confidentiality
Short Summary
This legal document, part of the Louisiana Administrative Code, pertains to the requirements for financial statements and records in the context of sports wagering. It applies to operators and licensees involved in sports wagering in Louisiana. The document mandates that operators maintain accurate, complete, legible, and permanent records of all transactions related to taxable revenue or fees under the Act. These records should follow generally accepted accounting principles and include details such as revenues, expenses, assets, liabilities, journal entries, work papers, financial statements, and any other records required by the division. Licensees or operators failing to maintain adequate records may have their revenue and other amounts computed by the division through an audit and statistical analysis. The document also outlines reporting requirements for net gaming proceeds and the payment of taxes. Additionally, it specifies that accounting controls must be submitted to the division for review and approval before conducting sports wagering, including processes for cash handling, establishment of segregated accounts, and other requirements as determined by the division. This legal document, found in the Louisiana Administrative Code under the Louisiana Gaming section, outlines the record retention and backup requirements for licensees and permittees in the sports wagering industry. According to the document, licensees and permittees must provide the division with the required records upon request and retain them for a minimum of five years in an approved location. In case of a change of ownership, records of prior owners must also be retained for five years. Electronic records may be maintained in other locations as long as access is available at the principal place of business or another approved location. Additionally, licensees and operators are required to conduct a complete system data backup to a primary off-site location at least once a month. They must submit the name, location, and security controls of the primary off-site storage facility to the division and notify any changes at least 30 days in advance. The document also emphasizes the need for a written contingency plan in the event of a system failure or data loss. Overall, this document ensures that licensees and permittees in the Louisiana gaming industry adhere to proper record retention and backup practices to maintain the integrity of their operations. This legal document governs the segregation of funds for sports wagering operators in Louisiana. The operators are required to either segregate sports wagering account funds from operational funds or maintain a reserve to cover outstanding sports wagering liabilities. The reserve funds can be in the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond, or a combination thereof. The reserve funds should not be used for operational activities and must be separate from other gaming activities. Operators can satisfy the requirements by establishing a special purpose segregated account controlled by a corporate entity with independent corporate directors. The corporate entity must have articles of incorporation that prohibit commingling of funds, except for necessary reconciliation. Documentation of cash reserves must be provided to the division monthly, and operators must continuously monitor and maintain records of sports wagering liabilities and cash reserves. Any deficiency in cash reserves must be reported to the division within 48 hours, along with the reason and resolution to correct the deficiency. This document governs audits, annual reviews, and periodic reporting requirements for licensees or their operators in the Louisiana gaming industry. Licensees and operators are required to comply with the provisions of the Act, Part III of the Louisiana Administrative Code, and the regulations outlined in this document. They must submit annual financial statements to the division by May 1 each year or 120 days after the end of the fiscal year. Additionally, licensees or operators must provide the division with copies of any reports filed with securities regulatory agencies within 15 days of filing. Operators are also required to submit annual audited financial statements prepared by an independent certified public accountant (CPA). The document outlines the content and timing of various reports, including the annual review of operations and quarterly reports on net gaming proceeds and taxes paid. The division may request additional information and review the work papers of the CPA. The document also addresses the independence of CPAs performing financial audits and requires the submission of audit reports issued by the Internal Revenue Service (IRS).
Whom does it apply to?
Operators and licensees involved in sports wagering in Louisiana
What does it govern?
Requirements for financial statements and records, record retention and backup practices, segregation of funds, audits, annual reviews, and periodic reporting requirements
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Penalties for non-compliance or violation of the provisions are not specified in the document.
Jurisdiction
Louisiana