R 432.644 Reserve requirement.

Rule 644. (1) An internet gaming operator or internet gaming platform provider must maintain a reserve in the amount necessary to ensure the security of funds held in internet wagering accounts. The reserve must be in the form of: (a) Cash or cash equivalents maintained in a U.S. bank account segregated from the internet gaming operator’s or internet gaming platform provider’s operational funds. (b) An irrevocable letter of credit. (c) A bond. (d) Any other form acceptable to the board. (e) Any combination of the allowable forms described in subdivisions (a) to (d) of this subrule. (2) The reserve must be not less than the sum of the following: (a) The daily ending cashable balance of all authorized participants’ internet wagering accounts. (b) Pending withdrawals. (c) The sum of all pending internet wagers, funds transferred to an internet game not yet wagered, and pending wins. (3) Funds held in internet wagering accounts must not be automatically transferred by an internet gaming operator or internet gaming platform provider. An internet gaming operator or internet gaming platform provider must not require an authorized participant to transfer funds from his or her internet wagering account, in order to circumvent this rule. (4) Amounts available to authorized participants for play that are not redeemable for cash may be excluded from the reserve computation. (5) On request, the board may allow an internet gaming operator or internet gaming platform provider to combine the reserve for all of its Michigan internet gaming, or all of its Michigan internet sports betting conducted under the lawful sports betting act, 2019 PA 149, MCL 432.401 to 432.419, or both. (6) An internet gaming operator or internet gaming platform provider must have access to all internet wagering account and transaction data to ensure the amount of its reserve is sufficient. Unless otherwise directed by the board, an internet gaming operator or internet gaming platform provider must file a monthly attestation with the board, in the form and manner prescribed by the board, that funds have been safeguarded under this rule. (7) The board may audit an internet gaming operator’s or internet gaming platform provider’s reserve at any time and may direct an internet gaming operator or internet gaming platform provider to take any action necessary to ensure the purposes of this rule are achieved, including but not limited to requiring the internet gaming operator or internet gaming platform provider to modify the form of its reserve or increase the amount of its reserve.