10 Del. Admin. Code § 203-16.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 203-16.0 - The Agent's Organization

16.1 Each agent shall maintain an organizational structure which meets the following criteria designed to preserve the integrity of gaming operations. Provided the criteria of this section are met, each agent shall be permitted to tailor its organizational structure to meet the needs of its own particular management style. The proposed table of organization of each agent shall be approved by the Director and shall provide for the following criteria:

16.1.1 A system of personnel and chain of command which permits management and supervisory personnel to be held accountable for actions or omissions within their area of responsibility; and

16.1.2 The segregation of incompatible functions so that no employee is in a position both to commit an error or perpetrate a fraud and to conceal the error or fraud in the normal course of his or her duties;

16.1.3 Primary and secondary supervisory positions which permit the authorization or supervision of necessary transactions at all relevant times; and

16.1.4 Areas of responsibility which are not so extensive as to be impractical for one person to monitor.

16.2 In addition to satisfying the requirements of subsection 16.1, each agent's organizational structure shall include the following departments and supervisory positions as required by the Director. Each of these departments and supervisors shall be required to cooperate with, yet perform independently of all other departments and supervisors.

16.2.1 Accounting Department - Each agent shall have in its accounting department one or more individuals responsible for and dedicated to verifying table game financial transactions and reviewing and controlling accounting forms and data. This function, which may be referred to as gaming income or revenue audit, shall be independent of the transactions under review. Among other things, this function shall include, but not be limited to, a daily audit of the table games' documentation, a daily audit of the main cage accountability, a daily audit of the coin vault accountability, and document control and signature verification. The accounting department shall also include the cashiers' cage, supervised by a cage manager or an equivalent responsible for the cage and all related functions.

16.2.2 Surveillance Department - Each agent shall have a surveillance department that is independent of all aspects of video lottery facility operations and shall be supervised by a director of surveillance. The director of surveillance shall report to either the independent audit committee of the Board of Directors; the independent audit committee of any holding company of the agent which has absolute authority to direct operations of the video lottery facility; the senior executive of any holding company if such person reports directly to the independent audit committee; or to comparable positions for gaming facilities that are not corporate entities or any such reporting line as approved by the Director.

16.2.2.1 The personnel of the surveillance department shall at all times be employees of the agent. The agent shall not outsource the surveillance function to any third party.

16.2.2.2 The surveillance department shall be responsible for the covert monitoring of:

16.2.2.2.1 The conduct and operation of the video lottery machines and table games;

16.2.2.2.2 The conduct and operation of the cashiers' cage;

16.2.2.2.3 The collection and count of the table games;

16.2.2.2.4 The movement of cash, chips and any other video lottery facility assets;

16.2.2.2.5 Detection of cheating, theft, embezzlement, and other illegal activities in the video lottery facility;

16.2.2.2.6 Detection of the presence in the video lottery facility of any person who is required to be excluded; and

16.2.2.2.7 Illegal, suspicious or unusual activities.

16.2.3 Security Department - Each agent shall have a security department supervised by a director of security that is independent of all aspects of gaming operations and is responsible for the overall security of the facility including, without limitation, the following:

16.2.3.1 The physical safety of patrons and employees in the video lottery facility;

16.2.3.2 The physical safeguarding of assets transported to, from, or through the video lottery facility and immediate notification to the agency and the DGE of any incident that has compromised the safeguarding of such assets;

16.2.3.3 The protection of patrons, employees and video lottery facility property from illegal activity;

16.2.3.4 The recordation of any and all unusual occurrences including the date, time, nature of the incident, persons involved in the incident, and the assigned security department personnel;

16.2.3.5 The control and maintenance of a system for the issuance of temporary license credentials and vendor access credentials;

16.2.3.6 Ensuring the gaming facility is constantly secure during normal operations and any emergencies due to malfunctioning equipment, loss of power, any natural disaster or any other cause; and

16.2.3.7 The identification, monitoring and removal of any person who is required to be excluded pursuant to Ch. 7 of these regulations.

16.2.3.7.1 The personnel of the security department who participate in any aspect of the gaming operation shall at all times be employees of the agent.

16.2.3.7.2 The security department shall maintain sufficient staff in accordance with regulations, minimum internal control standards and operational needs to meets its assigned responsibilities.

16.2.4 Table Games Department - Each agent shall have a table games department responsible for the conduct of the table games in accordance with the established rules of the games, as well as the MICS and approved internal controls of the agent, and which ensures that there is sufficient supervision, knowledge and training within the department to provide for the proper and fair conduct of the games.

16.2.5 Internal Audit - Each agent shall maintain an internal audit function either through a separate on-site department, or through the use of corporate internal audit, or through the outsourcing of this function. The internal audit function shall maintain its independence through an organizational reporting line that is outside the management of the gaming operation. The director of the function shall report directly to the license holder, a corporate executive outside the property, or to an independent audit committee.

16.2.5.1 The internal audit function shall operate with audit programs, checklists, or reports which, at a minimum, address the regulations and MICS and properly document the work performed, the conclusions reached, the resolution of all exceptions, and any other additional information as required by the director. Reports documenting audits performed shall be maintained for a minimum of five (5) years and shall be made available to the Director upon request.

16.2.6 Management Information Systems (MIS) Department - Each agent shall maintain an MIS Department which shall be responsible for the accuracy, integrity, confidentiality and availability of all computer systems. The MIS Department will have specific responsibility for Information Technology (IT) operations, physical and environmental security of IT hardware, system-wide security of information resources, back-up of information resources and business continuity. The MIS Department shall be responsible for, without limitation, the following activities:

16.2.6.1 The acquisition, installation and maintenance of all hardware, software and data communications' resources required to support gaming operations;

16.2.6.2 To provide physical and environment security, insure that access to computer hardware and data communication equipment is limited to authorized personnel and provide standard environmental components, including reliable electric service and appropriate temperature control;

16.2.6.3 The timely back-up of information resources and the development of a business continuity plan;

16.2.6.4 The development and maintenance of access controls that limit the use of all information resources to authorized users and permit access only to the types of transactions and functions that authorized users are permitted to exercise; and

16.2.6.5 The development of IT audit procedures and the preservation of audit data that enable the monitoring and investigation of unlawful, unauthorized, or inappropriate information system activity and insure that these actions can be traced to the user(s) responsible.

10 Del. Admin. Code § 203-16.0

22 DE Reg. 500 (12/1/2018) (Final)