316 Neb. Admin. Code, 35, § 623

Current through September 17, 2024

Section 316-35-623 - COMINGLING OF KENO FUNDS IN NON-SEGREGATED BANK ACCOUNT

623.01 Unless specifically modified by the regulations in this section, all regulations of Reg-35-600 to 35-622 remain in effect. This section will only apply to lottery operators seeking authorization to comingle keno funds in a non-segregated bank account of the lottery operator location or sales outlet location.

623.02 If a lottery operator intends to have the lottery operator location or sales outlet location deposit keno funds into a non-segregated bank account of the location at the close of business each day, the operator and participating lottery operator location or sales outlet location must follow one of the two methods outlined in Reg-35-623.03 and 35-623.04, unless other sufficient controls are agreed to in writing by the Department. The operator must inform the Department in writing which method they intend to use for each lottery operator location or sales outlet location for compliance with Reg-35-623.02.

623.03 An operator may comply with Reg-35-623.02 by instituting the following audit procedures:

623.03A The operator must perform at least one monthly random audit of every keno drawer at each lottery operator location and sales outlet location.

623.03B The operator must maintain documentation relating to all audits performed pursuant to. Documentation must include all of the following:

623.03B(1) The reason for audit;

623.03B(2) The person who performed audit;

623.03B(3) The date and time of audit;

623.03B(4) All keno writers on duty;

623.03B(5) All keno managers on duty;

623.03B(6) The results of the audit;

623.03B(7) Any action taken as a result of the audit; and

623.03B(8) Any other information and documentation the auditor deems necessary.

623.03C Documentation of all audits must be maintained by the operator for a period of three years and be provided to the Department upon request within a reasonable time.

623.03D A copy of audit documentation relating to the lottery operator location or sales outlet location must be kept on the premises of the location for a period of three months and be provided to the Department upon request.

623.04 An operator may comply with Reg-35-623.02 by installing video cameras with recording equipment and adhering to the following procedures:

623.04A At each lottery operator location or sales outlet location, at least one camera must be installed to monitor each keno writer station. The camera(s) must be positioned to provide a full view of the keno drawer, terminal, scanner, printer, and area where the customer transactions take place.

623.04A(1) The Department reserves the right to request any camera be adjusted and/or moved to provide an adequate line of sight.

623.04A(2) A single camera may be positioned to record multiple stations only if the Department after reviewing the position determines that the items referenced in Reg-35-623.04A can be adequately monitored.

623.04B The operator must notify the Department of the date they intend to install the camera(s) to allow the Department, if they choose, to be present for the installation and inspect the cameras and recording equipment.

623.04C Cameras installed in accordance with Reg-35-623.04 must meet the following technical requirements:

623.04C(1) Have a minimum resolution of 704 x 480;

623.04C(2) Record at a minimum of 30 frames per second;

623.04C(3) Must display the date and time for all recordings; and

623.04C(4) Be equipped with an uninterruptable power supply.

623.04D Recording equipment may record in any format of media. Recording equipment must be housed in secured location under lock and key. Physically stored recordings must be stored in secured location under lock and key. If recordings are stored electronically, password protection must be used.

623.04D(1) Recording equipment must be equipped with an uninterruptable power supply.

623.04D(2) All recordings, regardless of format, must be retained for at least three months.

623.04D(3) Regardless of the format of recording, the stored recordings must be accessible by the Department upon demand within a reasonable time.

623.04E All cameras and recording equipment must be inspected daily prior to beginning the first game. All cameras and recording equipment must also be monitored throughout the day.

623.04E(1) All camera and recording equipment failures must be reported to the Department immediately upon discovery and repaired as soon as is practical.

623.04E(1)(a) The game may continue upon noticing the failure only if the Department has been notified.

623.04E(1)(b) If the camera or recording issue has not been resolved after five days, then the lottery operator location or sales outlet location where the issue is occurring is not permitted to comingle keno funds until the repair is completed, unless the location utilizes the audit procedures outlined in Reg-35-623.03.

623.05 An operator who follows the provisions of Reg-35-623.01 to 35-623.04 at a lottery operator location or sales outlet location is permitted to have lottery proceeds from the location deposited into a non-segregated bank account of the lottery operator location or sales outlet location. Such bank account must be designated by the lottery operator, county, city, or village. Keno funds must remain segregated from all other revenue of the lottery operator location or sales outlet location until the deposit is made into the non-segregated bank account.

623.05A If the deposit is made with non-lottery funds from the lottery operator location or sales outlet location, the deposit slip must clearly indicate the amount of keno funds being deposited.

623.05B The deposit must be made within five business days following the day such gross proceeds were collected.

623.05C Transfer of funds from the lottery operator location or sales outlet location non-segregated bank account to the bank account of the lottery operator, county, city, or village may be done by an electronic transfer of funds.

623.05C(1) A transfer pursuant to Reg-35-623.05C must be made no later than five business days following the day the funds were collected.

316 Neb. Admin. Code, 35, § 623

Adopted effective 1/1/2024