Board clarifies 60‑day rule for fund-loss claims; managers urged to file LG250 notice promptly
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Summary
Enforcement staff and the assistant attorney general told managers the LG250 fund-loss form must be filed within 60 days of discovery to be considered; police reports and other documents may be added later but initial notice is required.
Board enforcement staff and legal counsel used a February 17 meeting to clarify procedures and deadlines for fund-loss claims after attendees raised cases of burglaries and late submissions.
Enforcement Manager Brett McKeever told the board the LG250 fund-loss form "must be received by us within 60 days of discovery of funds." He explained that missing documents — often a police report — can delay a final determination but do not excuse failure to notify the board within the 60-day window. "Get it to us as soon as possible. Within that 60 days, if there are details missing, we can wait for those details or request those," McKeever said.
Assistant Attorney General Leah Hedman echoed the enforcement manager and described the 60-day requirement as a "bright line rule" contained in board rules and statute. "The 60 days is 60 days," Hedman said, adding that the rule is applied consistently to all licensed organizations.
Regulation Manager Steve Peterson and other staff described common casework practices: organizations should file an initial LG250 when a loss is discovered and follow up with police reports or other evidence as they become available. Peterson noted that agencies sometimes delay providing reports until cases close; staff can accept supplemental documents but cannot consider an LG250 filed after the 60-day notification window.
Why it matters: The 60-day notification window determines whether an organization’s fund-loss claim can be considered; denial of a claim can create substantial repayment obligations for licensees. One speaker at the meeting said a fund-loss denial for a burglary of $18,166 (denied because it was submitted two days late) would impose a heavy financial burden on a small organization.
Bottom line: Gambling managers should submit an LG250 promptly after discovery of missing funds, even if they do not yet have a police report. The board’s enforcement and legal staff will accept supporting materials later but will not consider claims for which initial notification arrived after the 60-day window.