D.C. Mun. Regs. tit. 30, r. 30-2117

Current through Register Vol. 71, No. 48, November 29, 2024

Rule 30-2117 - RESERVE REQUIREMENTS

2117.1

Operators or Management Services Providers shall establish a reserve of not less than the greater of twenty- five thousand dollars ($25,000) or the sum of the following amounts:

(a) Amounts held by the Operator for Sports Wagering Accounts;

(b) Aggregate amounts accepted by the Operator as wagers on sports wagering events whose outcomes have not been determined; and

(c) Amounts owed but unpaid by the Operator on winning wagers through the period established by the Operator for honoring winning wagers.

2117.2

Operators and Management Services Providers shall calculate their reserve requirements each day. In the event an Operator determines that their reserve is not sufficient to cover the calculated requirement, the Operator must, within twenty-four (24) hours, notify the Office of this fact and must also indicate the steps the Operator has taken to remedy the deficiency.

2117.3

If a reserve is maintained in the form of cash, cash equivalent, or an irrevocable letter of credit, it must be held or issued, as applicable, by a federally- insured financial institution.

2117.4

If the reserve is maintained in the form of a bond, it must be written by a bona fide insurance carrier.

2117.5

The reserve must be established pursuant to a written agreement between the Operator or Management Services Provider and the financial institution or insurance carrier.

2117.6

The Operator or Management Services Provider may engage an intermediary company or agent acceptable to the Executive Director to deal with the financial institution or insurance carrier, in which event the reserve may be established pursuant to written agreements between the licensee and the intermediary and between the intermediary and the financial institution or insurance carrier.

D.C. Mun. Regs. tit. 30, r. 30-2117

Final Rulemaking published at 66 DCR 011618 (8/30/2019)