61D-11.019. Internal Controls

(1) Initial applications for a cardroom license shall include a complete set of written internal controls established in compliance with Section 849.086, F.S., and the rules promulgated thereunder. Subsequent changes to the internal controls must be submitted to the division for approval prior to implementation, as one complete set, in a format which will include underlining additions and striking through deletions, since the last date of approved revisions with a footnote of the current revision date.

(2) Failure of any cardroom operator to follow the internal controls once approved by the division shall be a violation of these rules.

(3) A cardroom operator shall design and document internal controls to reasonably assure that:

(a) Assets are safeguarded;

(b) Financial records are accurate and reliable;

(c) Transactions are performed in accordance with management’s authorization;

(d) Access to assets is permitted only in accordance with management’s specific authorization;

(e) Recorded accountability for assets is compared with actual assets at frequent intervals and appropriate action is taken with respect to any discrepancies;

(f) Functions, duties, and responsibilities are appropriately segregated and performed in accordance with sound practices by competent, qualified personnel so that errors will be disclosed and corrected in a timely manner;

(g) Fraud is prevented or detected;

(h) Safety of the public and employees is enhanced; and,

(i) Competency of staff and ability to comply with established policies and procedures is promoted through training.

(4) The cardroom manager or general manager shall sign and submit the internal controls to the division. The internal controls shall at a minimum contain the following:

(a) A requirement that a supervisor or the transporter verify all transfers between imprest trays and the cardroom vault with their signature on the transfer document or a procedure in which tokens that display monetary amounts, commonly referred to as lammers, are used by cardroom floor staff to authorize and document transfers between imprest trays and cardroom vaults or cages;

(b) The designation of a cardroom vault holding all cardroom funds;

(c) The designation of the secure location holding all imprest trays;

(d) The designation of a cashier cage methodology for or as a method of controlling and accounting for funds within the cashiers’ cage that are part of the cardroom vault;

(e) A requirement that all transactions flowing through the cardroom vault be summarized daily as specified in the internal controls as follows:

1. Increases and decreases to the cardroom vault inventory shall be summarized and supported by documentation,

2. A record shall reflect that the cardroom vault inventories are counted by at least two persons and recorded at the end of each day on inventory documentation,

3. Information shall be summarized and recorded in the cardroom operator’s accounting records on the business day following each day of operation; and,

4. A statement of whether a cardroom vault or cashier cage methodology is used shall be indicated by the cardroom operator.

(f) When a cashier cage methodology is used, the facility shall include in the cardroom internal controls security procedures that limit access into the cashiers’ cage;

(g) A requirement that the cardroom operator perform an internal audit of the cardroom internal controls once annually. Internal audit documentation must:

1. Be submitted in a checklist format consisting of the cardroom operator’s existing approved internal controls, with attestation by the signature of the cardroom manager or his/her equivalent,

2. Include a footnote as to the date the audit is completed,

3. Include documentation of material exceptions to internal controls; and,

4. Be provided to the division within 30 days of the date of completion of the internal audit.

(h) A description of the cardroom’s patron dispute resolution process;

(i) The methodology for administration of jackpot payouts shall include:

1. Documentation of whether the payment was made in chips, tokens, currency, or by check, or any combination thereof; and,

2. That the patron shall have the option to select the type of payment.

(j) An identification of where dealers may take their break, and provide at a minimum, that such breaks be arranged so there is limited opportunity for dealer and player personal interaction;

(k) The methodology for administration of rakes to include:

1. A flat fee rake or a rake on a time limit shall be designated for each cardroom or cardroom game. The method of rake may be different for different cardroom games within one cardroom,

2. When the cardroom elects to use a flat fee rake, the amount of the rake the cardroom operator designates shall be stated in the cardroom internal controls; and,

3. When the cardroom operator elects to employ a rake on a time limit basis, the amount of the rake for each time period shall be stated in the cardroom internal controls.

(l) The methodology for key access controls for drop boxes;

(m) The methodology for retirement of cards, chips, dominoes, or tokens. The methodology shall:

1. Designate the individual position responsible for the retirement procedure,

2. State the time line for how often the retirements shall occur; and,

3. Maintain a record of all retirement actions, which shall be available to the division upon request.

(n) The methodology for a dealer or cage cashier when counting the impressments under surveillance coverage, when a card table imprest tray is replenished.

Rulemaking Authority 550.0251(12), 849.086(4), (11) FS. Law Implemented 849.086 FS. History–New 1-7-97, Amended 9-7-08, 7-21-14, 1-2-18.