R 432.743 Integrity monitoring/suspicious behavior.

Rule 743. (1) A sports betting operator or internet sports betting platform provider must have internal controls in place to identify unusual wagering activity and promptly report that activity to an independent integrity monitoring provider. (2) All independent integrity monitoring providers must share information with each other and must disseminate all reports of unusual wagering activity to all member sports betting operators and internet sports betting platform providers. All sports betting operators and internet sports betting platform providers must review these reports and notify the independent integrity monitoring provider whether they have experienced similar activity. (3) If an independent integrity monitoring provider finds that previously reported unusual wagering activity rises to the level of suspicious wagering activity, it must immediately notify all other independent integrity monitoring providers, its member sports betting operators and internet sports betting platform providers, the board, the appropriate sports governing body, and all other regulatory agencies as directed by the board. All independent integrity monitoring providers receiving a report under this subrule must share such report with their member sports betting operators and internet sports betting platform providers. (4) A sports betting operator or internet sports betting platform provider receiving a report of suspicious wagering activity must be permitted to suspend wagering on events or wager types related to the report, but may only cancel internet sports betting wagers related to the report after receiving approval from the board. (5) The board may require a sports betting operator or internet sports betting platform provider to provide any hardware or software necessary to the board, or to an independent lab approved by the board, for evaluation of its internet sports betting offering or to conduct further monitoring of data provided by its internet sports betting platform. (6) A sports betting operator or internet sports betting platform provider must maintain records of all integrity monitoring services and activities, including all reports of unusual or suspicious wagering activity and any supporting documentation, for a minimum of 5 years and must provide such records to the board on request. (7) If the board receives information regarding the integrity of events on which internet sports betting wagers are made, the board may, to the extent allowed or provided for in the act and these rules, share such information with a sports betting operator, internet sports betting platform provider, independent integrity monitoring provider, sports governing body, sports team, law enforcement entity, regulatory agency, or other person the board considers appropriate. (8) An independent integrity monitoring provider must register as a vendor with the board before providing integrity monitoring services to a sports betting operator or internet sports betting platform provider under the act and these rules. (9) An independent integrity monitoring provider must maintain records of all integrity monitoring services and activities relating directly or indirectly to Michigan internet sports betting, sports betting operators, or internet sports betting platform providers for a minimum of 5 years and must provide the board with access to these records in a manner approved by the board. These records must include, at a minimum: (a) All reports of unusual wagering activity. (b) If the activity was determined to be suspicious wagering activity. (c) The actions taken by the independent integrity monitoring provider. (10) A sports betting operator or internet sports betting platform provider must maintain the confidentiality of information provided by a sports governing body to the sports betting operator or internet sports betting platform provider related to unusual wagering activity, suspicious wagering activity, or the integrity of an event, unless disclosure is required by the board, any applicable law, or a lawful order of a court of competent jurisdiction. (11) A sports betting operator or internet sports betting platform provider must employ personnel responsible for ensuring the operation and integrity of internet sports betting and reviewing all reports of suspicious behavior. Unless otherwise directed by the board, a sports betting operator or internet sports betting platform provider must immediately notify the board upon detecting or becoming aware of any of the following: (a) Any person participating in internet sports betting who is engaging in or attempting to engage in, or who is reasonably suspected of, cheating, theft, embezzlement, collusion, use of funds derived from illegal activity, money laundering, or any other illegal activities, including those activities prohibited in section 13 of the act, MCL 432.413. (b) Any person who is reasonably suspected of misrepresenting their identity or using false identification to establish or attempt to establish an internet sports betting account. (c) Suspected criminal activity related to any aspect of internet sports betting. (d) Any criminal or disciplinary proceedings commenced against the sports betting operator or internet sports betting platform provider in connection with its internet sports betting operations. (e) Any internet sports betting wagers that violate any applicable state or federal law. (12) An internet sports betting platform provider must promptly notify any affected sports betting operators on behalf of which it accepts internet sports betting wagers of any issues impacting the integrity of internet sports betting.