Section R19-2-410. ADW Accounts

A.      An individual who wishes to establish an ADW account shall establish the account in person or by mail, telephone, or other electronic means before making any wager. The individual establishing an ADW account shall:

1.        Establish the account in the individual’s name,

2.        Be at least 21 years old,and

3.        Not be prohibited from wagering by Arizona rules or stat- utes.

B.       An ADW account is not transferable.

C.      An ADWP shall obtain the following regarding an individual who wishes to establish an ADW account:

1.        Full legal name;

2.        Address of principal residence;

3.        Address to which communications are to be delivered if different from the principal residence address;

4.        Telephone number;

5.        Social Security number;

6.        Copy of evidence that the individual is at least 21 years old; and

7.        Whether the individual will make ADW deposits through the use of cash, personal check, credit or debit card, or electronic funds transfers.

D.      An ADWP shall electronically verify an ADW-account appli- cant’s name, principal residence address, date of birth, and Social Security number at the time application is made using a Department-approved national, independent, individual refer- ence company or other independent technology approved by the Department.

E.       An ADWP may refuse to establish an ADW account if it deter- mines that any of the information supplied is untrue or incom- plete and may at any other time, with reasonable cause, refuse to accept a wager or deposit.

F.       An ADWP shall designate each ADW account with a unique account number. The ADWP may change an ADW account number if the ADWP provides notice to the account holder before the change is made.

G.      An ADWP shall ensure that an ADW-account holder is able to access the account holder’s account by means of personal identification or account password.

H.      When an ADW account is established, the ADWP shall:

1.        Inform the account holder of the assigned account num- ber; and

2.        Provide the account holder a copy of the ADWP’s advance deposit wagering procedures, terms and condi- tions and other information pertaining to the operation of the ADW account including any rules the ADWP has made concerning deposits, withdrawals, average  daily balance, user fees (including for EFT deposits), interest payments, and any other aspect of the operation of the account.

I.        An ADWP shall notify an account holder before making any change to the rules governing the account and provide an opportunity for the account holder to close or cash-in the account. The ADWP may deem an account holder to have accepted the  rules  of  account  operation when the account holder opens or does not close the account.

J.        An ADWP shall comply with Internal Revenue Service (IRS) requirements for  reporting and  withholding  proceeds from advance deposit wagers by account holders. The ADWP shall send an account holder subject to IRS reporting or withholding a form W2-G summarizing the information for tax purposes following a winning wager being deposited into the account holder’s account. Upon written request, the ADWP shall pro- vide an account holder with summarized tax information on advance deposit wagering activities.

K.      An account holder is deemed to be aware of the status of the account holder’s account at all times. An ADWP shall not accept a wager that exceeds the available balance of an account. An account not updated when a transaction is com- pleted shall be inoperable until the account balance is updated and the transaction is posted.

L.       When an ADW account is entitled to a payout or refund, the ADWP shall credit the monies to the account. This will increase the balance in the account. The account holder shall verify that proper credits have been made and, if in doubt, notify the ADWP within the agreed upon time for consider- ation. The ADWP or the account holder may forward an unre- solved dispute to the Department. The Department shall not

consider a dispute unless it is submitted in writing and accom- panied by supporting evidence.

M.     Account Operation.

1.        An ADWP shall maintain complete records of every deposit, withdrawal, wager, and winning payout for each ADW account. The ADWP shall make these records available to the Department promptly upon request and retain the records for the time required under R19-2- 502(A).

2.        An ADWP shall allow an ADW account holder to make wagers from the account only by telephone.

3.        Placing or accepting wagers over the communications facility known as the Internet is not authorized with the exception of multi-jurisdictional totalisator wagering hubs. However, it is permissible to transmit handicapping data, race results, or other information relating to pari- mutuel racing over the Internet.

4.        An ADWP shall ensure that the ADW system provides for the account holder to review and finalize a wager before the wager is accepted by the ADW system. Nei- ther the account holder nor the ADWP shall change a wager after the account holder has reviewed and finalized the wager except as allowed under R19-2-504(C).

N.      An ADWP may close an ADW account when the account holder attempts to operate with an insufficient balance or when the account is dormant for a period approved by the Depart- ment. When an ADWP closes an ADW account, the ADWP shall refund the remaining account balance to the account holder.

Historical Note

Adopted effective April 3, 1984 (Supp. 84-2). Repealed

effective December 14, 1994 (Supp. 94-4). R19-2-410 recodified from R4-27-410 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). Section R19-2-410 renumbered to R19-2-418; new Sec- tion R19-2-410 made by exempt rulemaking at 20 A.A.R.

2874, effective October 10, 2014 (Supp. 14-4).