Spring 2014 issue of Horizons

Overall, Nevada has more regulations around information technology requirements and has generally applied a more principles- based form of regulation.

Delaware further states that the director must approve the system before the provider can operate in Delaware. Delaware does not have as many stated requirements around protecting player information and communication between the server and player. However, the director must approve all equipment and it is assumed these risks would be top priority before granting a provider a license. New Jersey has the strictest mandates by requiring “an annual system integrity and security assessment conducted by an independent professional” and calling for providers to put certain IT securities in place, such as encryption. One key difference is Nevada used broad language for operators stating, “Interactive gaming systems must employ a mechanism to reasonably protect the gaming network and systems from malicious attacks.” This language could be instrumental should a breach ever occur and a legal battle between the state and operator follow.

Conclusion Delaware, New Jersey and Nevada

regulators and operators have outlined the first set of regulations and implemented the first control frameworks to address risks associated with patron account set up, communication between the server and players, protection of player information and detective and preventive techniques employed to minimize criminal activities. These three states are building the cornerstones for this new market and hope the road ahead is paved with gold. This new source of revenue for states and the convenience for players is thrilling; but only time will tell how successful this segment will be at managing cyber risk.

RubinBrown’s Gaming Services Group Many gaming operations throughout the nation seek out RubinBrown’s accounting, consulting, and tax services.

Brandon Loeschner, CPA, CISA Partner & Gaming Practice Leader Gaming Services Group 314.290.3324 brandon.loeschner@rubinbrown.com

Daniel Holmes, CPA, CIA Manager & Gaming Practice Leader Gaming Services Group 314.290.3346 daniel.holmes@rubinbrown.com

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