23 CAR § 357-622. Advance deposit wagering

(a) As used in this section: (1) "ADW" means advance deposit wagering; (2) "Commission" means the Arkansas Racing Commission; (3) "Federal Interstate Horseracing Act" means the federal Interstate Horseracing Act of 1978, as amended, 15 U.S.C. § 3001 et seq., as in effect on the effective date of this section; (4) "Franchise holder" means the holder of a franchise to conduct pari-mutuel wagering on: (A) Horse racing under the Arkansas Horse Racing Law, Arkansas Code § 23-110-101 et seq.; or (B) Greyhound racing under the Arkansas Greyhound Racing Law, Arkansas Code § 23-111-101 et seq; (5) "Greyhound racing franchise holder" means the holder of a franchise to conduct pari-mutuel wagering on greyhound racing under the Arkansas Greyhound Racing Law, Arkansas Code § 23-111-101 et seq; (6) "Horse racing franchise holder" means the holder of a franchise to conduct pari-mutuel wagering on horse racing under the Arkansas Horse Racing Law; and (7) "Other ADW provider" means any individual or entity licensed in a jurisdiction other than Arkansas to engage in ADW on horse or greyhound racing that accepts advance deposit wagers from Arkansas residents, under the applicable law of the jurisdiction where the individual or entity is so licensed, and in the case of horse racing, under the federal Interstate Horseracing Act of 1978. (b)(1) Horse racing franchise holders may conduct ADW under Arkansas Code § 23-110-405(e) and in accordance with this section. (2) Greyhound racing franchise holders may conduct ADW under Arkansas Code § 23-111-508(e) and in accordance with this section. (c) A franchise holder’s patrons may, with money on deposit in an account with the franchise holder, place wagers by communication through telephone or other mobile device, or through other electronic means, on races conducted at the franchise holder’s racetrack facility and races (horse and greyhound) at other racetracks, whether or not the patron is located on the grounds of the franchise holder’s racetrack facility when placing the wager. (d) A franchise holder or other ADW provider may not accept advance deposit wagers under this section on any horse or greyhound race unless the franchise holder or other ADW provider, as the case may be, has the consent of the host racetrack, i.e., the racetrack where the race is conducted, allowing the franchise holder or other ADW provider, as the case may be, to accept wagers on such race. (e)(1) Prior to conducting ADW under this part, the franchise holder shall provide to the Arkansas Racing Commission the franchise holder’s proposed rules governing patrons' ADW accounts, and such rules shall be subject to approval by the commission. (2) Such ADW account rules, as approved by the commission, shall be made available to each account holder at the time the ADW account is opened, either online at the franchise holder’s internet website or ADW platform, or in other written form delivered, mailed, or otherwise made reasonably available to the account holder. (f)(1)(A) ADW accounts may be opened only by an individual eighteen (18) years of age or older. (B) An applicant for an ADW account with a franchise holder must provide to the franchise holder the applicant's name, resident address, mailing address if different, Social Security number, date of birth, and such other information required by the franchise holder’s ADW account rules. (C) Any person that submits a birth date that indicates they are under eighteen (18) years of age shall be denied the ability to register for an ADW account. (2)(A)(i) Identity verification shall be undertaken before a player is allowed to place a wager using an ADW account. (ii) Third-party service providers may be used for identity verification as allowed by the commission. (B) Identity verification shall authenticate the legal name, physical address, and age of the individual at a minimum as required by the commission. (C) Identity verification shall also confirm that the person is not on any exclusion list held by the franchise holder or the commission to the extent disclosed to the franchise holder by the commission or prohibited from establishing or maintaining a wagering account for any other reason under this part. (D) Details of identity verification shall be kept in a secure manner. (3) The ADW account can only become active once age and identity verification are successfully completed, the patron is determined to not be on any exclusion lists as provided in this part or prohibited from establishing or maintaining an account for any other reason under this part, the patron acknowledged the necessary privacy policies and terms and conditions, and the ADW account registration is complete. (4) A patron shall only be permitted to have one (1) active player ADW account at a time unless specifically authorized by the commission. (5)(A) The system shall allow the ability to update passwords, registration information, and the account used for financial transactions for each patron. (B) A multi-factor authentication process may be employed for these purposes. (6)(A)(i) A player accesses their ADW account using a username (or similar) and password, or a secure alternative means for the patron to perform authentication to log in to the ADW account. (ii) Authentication methods are subject to the discretion of the commission as necessary. (iii) The requirement does not prohibit the option for more than one (1) method of authentication being available for a patron to access their wagering accounts. (B) If the system does not recognize the username and/or password when entered, an explanatory message shall be displayed to the patron which prompts the patron to re-enter the information. (C) Where a patron has forgotten their username and/or password, a multi-factor authentication process may be employed for the retrieval of the username/resetting of the password. (D) Current account balance information and transaction options shall be available to the patron once authenticated. (E)(i) The ADW account shall support a mechanism that allows for an ADW account to be locked in the event that suspicious activity is detected, e.g. too many failed attempts for login. (ii) A multi-factor authentication process may be employed for the ADW account to be unlocked. (g)(1) Franchise holders and other ADW providers conducting ADW under this section shall operate a secure ADW platform consistent with, or exceeding, current security standards and protocols in the ADW industry. (2) Each ADW account shall have a separate unique username and passcode or personal identification number. (h) Funds in ADW accounts shall be segregated from the franchise holder’s own funds, and shall be maintained in a separate account or accounts separate and apart from the franchise holder’s other accounts. (i) A franchise holder may contract with another AWD provider to utilize the other ADW provider’s ADW platform as the franchise holder's ADW platform under this part. (j) Wagers accepted under Arkansas Code § 23-110-405(e) or Arkansas Code § 23-111-508(e), as applicable to the franchise holder, and this part shall be treated for all purposes under the provisions of Arkansas Horse Racing Law, Arkansas Code § 23-110-101 et seq. or the Arkansas Greyhound Racing Law, Arkansas Code § 23-111-101 et seq., as applicable to the franchise holder, and the rules of the commission, as if the wagers were made by the patron on the grounds of the franchise holder’s racetrack facility, e.g., advance deposit wagers accepted by the franchise holder on its live races, shall be treated as if the patron made a wager at the franchise holder’s racetrack facility on a live race conducted at the franchise holder’s racetrack facility, and advance deposit wagers accepted by the franchise holder on simulcast races from other racetracks shall be treated as if the patron made a wager at the franchise holder’s racetrack facility on the simulcast race. (k)(1) On or before January 7, 2014, and continuing on or before January 7 (if a business day, or if not, by the next business day) of each calendar year thereafter, each other ADW provider shall register as such with the commission on forms supplied by the commission, and shall provide to the commission information reasonably requested by the commission to verify that the other ADW provider is: (A) Duly licensed by the applicable regulatory agency; and (B) In good standing in the jurisdiction where the other ADW provider is licensed to conduct ADW. (2) Other ADW providers accepting wagers on horse racing from Arkansas residents shall comply, as applicable, with the federal Interstate Horseracing Act of 1978. (l)(1) Another ADW provider may not accept advance deposit wagers on horse racing from Arkansas residents unless the other ADW provider has a mutually acceptable written agreement in place with the Arkansas horse racing franchise holder to pay the Arkansas horse racing franchise holder commercially reasonable source market fees consistent with generally prevailing standards in the horse racing ADW industry relating to such source market fees. (2) The Arkansas horse racing franchise holder shall have a mutually acceptable written agreement in place with the organization representing horsemen at the horse racing franchise racetrack regarding the portion of such source market fees to be dedicated and used for purses on live horse races conducted at the horse racing franchise holder’s racetrack. (m)(1) Another ADW provider may not accept advance deposit wagers on greyhound racing from Arkansas residents unless the other ADW provider has a mutually acceptable written agreement in place with the Arkansas greyhound racing franchise holder to pay the Arkansas greyhound racing franchise holder commercially reasonable source market fees consistent with generally prevailing standards in the greyhound racing ADW industry relating to such source market fees. (2) The Arkansas greyhound racing franchise holder shall have a mutually acceptable written agreement in place with the organization representing greyhound owners and trainers at the greyhound racing franchise holder’s racetrack regarding the portion of such source market fees to be dedicated and used for purses on live greyhound races conducted at the greyhound racing franchise holder’s racetrack.