Md. Code Regs. 36.10.13.24

Current through Register Vol. 51, No. 17, August 23, 2024

Section 36.10.13.24 - Checks Accepted from a Bettor

A. A sports wagering licensee may accept a negotiable instrument in the form of a check meeting the requirements of this regulation from a bettor to enable the bettor to take part in sports wagering.

B. A sports wagering licensee may accept a check only during the hours of operation approved by the Commission for the facility under COMAR 36.10.17.02.

C. A sports wagering licensee may accept a personal check that is:

(1) Made payable to the sports wagering licensee;

(2) Drawn on a bank, savings and loan association, or credit union subject to federal or State banking regulation;

(3) Drawn for a specific amount;

(4) Currently dated, not postdated; and

(5) Payable on demand.

D. Subject to the requirements of §E of this regulation, a sports wagering licensee may accept a check issued by:

(1) A Sports wagering licensee;

(2) The Agency; and

(3) A person that:

(a) Is an affiliate of the sports wagering licensee; and

(b) Holds a valid sports wagering license in another jurisdiction.

E. A sports wagering licensee shall only accept a check under §D of this regulation which has been issued to an individual as:

(1) Employment compensation; or

(2) A payout in connection with:

(a) Sports wagering activity;

(b) Casino activity; or

(c) Maryland lottery prizes.

F. A sports wagering licensee may not:

(1) Except as provided under §C of this regulation, accept a check that is payable to an individual, including:

(a) A Social Security check;

(b) An unemployment insurance check;

(c) A disability payment check; or

(d) A public assistance check; or

(2) Except for a check issued under §E of this regulation, accept from a bettor under this regulation a check or multiple checks which in the aggregate exceed $30,000 during a wagering day.

G. For a personal check equaling or exceeding $ 5,000, a sports wagering licensee shall confirm the availability of funds by:

(1) Directly contacting the bank, savings and loan association, or credit union upon which the check is drawn;

(2) Obtaining an authorization and guarantee of the check from a check verification and warranty service licensed as a contractor under COMAR 36.10.06.04; or

(3) Alternate procedures addressing acceptance and verification of personal checks submitted in writing and approved by the Commission.

H. A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the acceptance and verification of checks meeting the requirements of this regulation.

I. A sports wagering licensee's internal controls shall require a check accepted from a bettor by a general cashier to be:

(1) If a personal check other than an electronic check, restrictively endorsed "for deposit only" to the bank account designated for this purpose by the sports wagering licensee and:

(a) Initialed by the accepting general cashier;

(b) Date and time stamped;

(c) Documented on the face of the check the number on the bettor's government-issued photographic identification; and

(d) If a personal check equaling or exceeding $5,000, confirmed for availability of funds under §G of this regulation;

(2) Verified for signature authenticity by a general cashier who shall:

(a) Obtain from the bettor one form of identification that is a valid, unexpired government-issued photographic identification; and

(b) Satisfactorily compare the:

(i) Signature of the bettor on the personal check or endorsing the payroll or payout check with the signature on an identification credential; and

(ii) Bettor's physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the bettor;

(3) If presented by a bettor as a payroll or payout check under §E of this regulation, confirmed to have been issued as employment compensation or as a payout in connection with sports wagering activity; and

(4) Immediately exchanged for:

(a) Cash;

(b) If the sports wagering licensee has the capability, a sports wagering ticket; or

(c) Funding for a sports wagering account in accordance with this chapter.

J. Subject to the limit in §F(2) of this regulation, a sports wagering licensee may accept a check issued to an individual as a payout in connection with sports wagering activity from a sports wagering licensee that holds a valid sports wagering license in another jurisdiction.

Md. Code Regs. 36.10.13.24

Amended effective 49:1 Md. R.16, eff. 1/13/2022