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Delaware General AssemblyDelaware RegulationsAdministrative CodeTitle 10200

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1.0 Introduction

These regulations are authorized pursuant to 29 Del.C. §4826 of the Delaware Code. Internet lottery operations in the State of Delaware are strictly regulated by the Delaware State Lottery Office through the powers delegated to the Director of the Lottery pursuant to Title 29 of the Delaware Code.

 

2.0 Definitions

For the purposes of these regulations, the following words and phrases have the meaning ascribed to them in this Section unless the context of the regulation clearly indicates otherwise, or unless they are inconsistent with the manifest intention of the Delaware State Lottery Office.

"Agency" means the Delaware State Lottery Office created pursuant to 29 Del.C. Ch. 48.

"Agent" or "licensed agent" means any person licensed by the Director of the agency to conduct Internet lottery games including Internet ticket games, the Internet video lottery and Internet table games.
"Applicant" means any person applying for a license authorized under these regulations.
"Authorized game" means all lottery games in which the player’s interaction with the game occurs over the Internet including Internet ticket games, the Internet video lottery and Internet table games, and any variations or composites of such games, provided that such variations or composites are found by the Director to be suitable for use after an appropriate test or experimental period under such terms and conditions as the Director may deem appropriate. "Authorized game" may also include any other game which is determined by the Director to be compatible with the public interest and to be suitable for use after such appropriate test or experimental period as the Director may deem appropriate. "Authorized game" includes gaming tournaments in which players compete against one another in one or more of the games authorized herein if the tournaments are authorized by the Director.
"Background investigation" means the security, fitness and background checks conducted of an applicant.
"Business plan" means a document containing information regarding Internet lottery operations as may be required by the Director.
"Certification" means the authorization by the lottery in accordance with its inspection and approval process of Internet lottery games, such certification to relate to either hardware or software.
"DGE" means the Division of Gaming Enforcement of the Department of Safety and Homeland Security, as authorized by the Delaware Code.
"Director" means the Director of the Delaware State Lottery Office as established by Title 29 of the Delaware Code.
Game cycle” means all of the activities and communications over the duration of a game. A game cycle starts after the player account balance has adequate funds, the player has nominated the size of the wager to be placed on the game, and the player takes an action to initiate play. A single game cycle includes games which trigger a free game feature and any subsequent free games, bonus features, games with player choices, games where the rules permit the wagering of additional funds, and secondary game features, such as double up. A game cycle is considered complete when the final transfer of winnings to the player’s account takes place or when all funds wagered are lost.
"Gaming" means the operating, carrying on, maintaining or exposing for play any Internet lottery game.
"Gaming employee" means a person employed in the operation of an Internet lottery and determined by the Director to have employment duties and responsibilities involving the security, maintenance, servicing, repair, or operation of Internet lottery equipment, or is employed in a position that allows direct access to the internal workings of Internet lottery equipment. Such employees shall include, without limitation, Internet lottery IT staff, security and surveillance employees, and employees responsible for handling assets and proceeds associated with the operation of gaming activity.
"Gaming vendor" means any vendor offering goods or services relating to the manufacture, operation, maintenance, security, distribution, service or repair of Internet lottery equipment.
"Hearing officer" means a member of the Lottery Commission or other qualified person designated by the Chairperson of the Lottery Commission to conduct a hearing on any matter within the jurisdiction of the Lottery.
"Immediate family" means a person's spouse and any children, whether by marriage, adoption or natural relationship.
Internet lottery” means all lottery games in which the player’s interaction with the game operated by the agency occurs over the Internet (which, for the purposes of these regulations, shall include any public or private computer or terminal network, whether linked electronically, wirelessly, through optical networking technology or other means), including Internet ticket games, the Internet video lottery and Internet table games.
Internet table game” means a lottery game in which the player’s interaction with the game operated by the agency occurs over the Internet through a website or network of a video lottery agent, rather than at a table game in a video lottery facility, and in which the game is an Internet variation or compilation of a table game or table games, provided that the game is expressly authorized by rule of the Director.
Internet ticket game” means a lottery game in which the player’s interaction with the game operated by the agency occurs over the Internet through a website or network of the agency, and in which the winner is decided by chance through mechanical or electronic means, and which shall include keno but which shall not include the video lottery, table games, and other forms of the Internet lottery.
Internet video lottery” means a lottery game in which the player’s interaction with the game operated by the agency occurs over the Internet through a website or network of a video lottery agent, rather than at a video lottery machine in a video lottery facility, and in which the game is an Internet variation of a video lottery game, and which shall not include keno, table games, and other forms of the Internet lottery.
"Key employee" means a person employed in the operation of an Internet lottery and determined by the Director to be acting in a supervisory capacity or empowered to make discretionary decisions with respect to Internet lottery operations, including, without limitation, the chief executive, financial and operation managers, Internet lottery department managers, credit executives, or any other employee so designated by the Director for reasons consistent with the public policies of 29 Del.C. and shall include any officer or any employee of an employee organization who has direct involvement with or who exercises authority, discretion or influence in the representation of employees of a Delaware Internet lottery agent in collective bargaining, grievance representation, labor disputes, salaries, wages, rates of pay, hours of employment or conditions of work.
"License" means the authorization granted by the agency which permits an applicant to engage in defined Internet lottery activities as an agent or service company; and authorization granted by the agency which permits an applicant to perform employment duties as a key employee or gaming employee.
"License application" means the process by which a person requests licensing for participation in the Internet lottery operations.
"Licensee" means any person authorized by the Director to participate in Internet lottery operations.
"Lottery" means the public gaming system or games established and operated by the Delaware State Lottery Office.
"MICS" means Minimum Internal Control Standards as adopted by the Director.
Net internet table game proceeds" means the total amount of credits or cash played less chargebacks less the total amount of credits or cash won by the players less the amounts given away as free promotional play by the agent(s) which shall be within the limits as recommended by the Lottery Director and approved by the Secretary of Finance. "Net internet table game proceeds" does not include sums withheld from player winnings for tax liabilities incurred by the players, nor does it include amounts held in reserve for large or progressive prizes yet to be won by players. However, any interest earned on such amounts held in reserve is included in net internet table game proceeds.
Net internet video lottery game proceeds" means the total amount of credits or cash played less chargebacks less the total amount of credits or cash won by the players less the amounts given away as free promotional play by the agent(s) which shall be within the limits as recommended by the Lottery Director and approved by the Secretary of Finance. "Net internet video lottery game proceeds" does not include sums withheld from player winnings for tax liabilities incurred by the players, nor does it include amounts held in reserve for large or progressive prizes yet to be won by players. However, any interest earned on such amounts held in reserve is included in net internet video lottery game proceeds.
"Owner" means a person who owns, directly or indirectly, 10 percent or more of an applicant or licensee.
"Person" means an individual, general partnership, limited partnership, corporation or other legal entity.
"Player" means an individual who plays an Internet lottery game.
Poker revenue means the total value of rake and tournament fees charged to players at all poker tables pursuant to the approved rules of the game.
"Rake" means the percentage of the pot collected by the Internet table game system pursuant to the approved rules of the game as poker revenue.
Request for proposals and qualifications” means a document developed under the direction of the Delaware State Lottery Office for the purpose of soliciting responses from potential technology providers as a means of acquiring bids for goods or services.
Self excluded person” means any person whose name is included, at his or her request, on the self-exclusion list maintained by the Lottery Director or Deputy Director.
Self exclusion list” means a list of names of persons who have voluntarily agreed to be excluded from all Internet lotteries and to be prohibited from collecting any winnings or recovering any losses at all licensed Internet lottery agents.
Service employee” means a person employed in the operation of an Internet lottery and determined by the Director to have employment duties and responsibilities involving direct access to player and gaming information stored on Internet lottery equipment. Such employees shall include, without limitation, Internet lottery customer service staff, marketing and business intelligence employees, and employees responsible for handling player loyalty promotions.
Technology provider” means any person or entity who proposes to contract with an Internet lottery agent or the agency for the provision of goods or services related to an Internet lottery, the provision of which requires a license pursuant to 29 Del.C. Ch. 48.
Tournament fee means the entry fee collected by the internet table game system when players register for a poker tournament pursuant to the approved rules of the game as poker revenue.

 

3.0 Minimum Internal Control Standards

3.1 In order to ensure the public trust, the integrity of gaming operations and the collection of required tax revenue, the agency shall adopt Minimum Internal Control Standards (MICS) which prescribe minimum procedures for the exercise of effective control over the internal fiscal affairs of a licensed agent and Internet lottery technology providers, including provisions for the safeguarding of assets and revenue, the recording of cash and evidence of indebtedness, and the maintenance of reliable records, accounts, and reports of transactions, operations and events, including reports to the Director. Such MICS shall address, at a minimum, the following:

3.1.1 A minimum uniform standard of accountancy methods, procedures and forms; a uniform code of accounts and accounting classifications; and such other standard operating procedures as may be necessary to assure consistency, comparability, and effective disclosure of all financial information, including calculations of percentages of profit by Internet table games, Internet ticket games and Internet video lottery games;

 

4.0 Licensing of Agents

License Applications

4.1 Any potential Internet lottery agent who is already licensed as a Delaware State Lottery video lottery agent is not required to apply for a separate Internet lottery license. Any such agent must, however, file with the agency, the names, addresses, employer identification or social security numbers (if applicable) and dates of birth of its directors, officers or partners, owners, key employees and Internet lottery operations employees not already provided under the agent’s video lottery license application. The agent must also submit an amendment to its video lottery business plan.

4.2.1 The applicant's legal name and form of entity (e.g., general or limited partnership, corporation);

4.2.3.1 Been convicted of an offense other than a traffic violation;

4.2.4 The following documentation in conjunction with application forms as required by the Director:

4.2.4.1 A copy of a license issued by the Delaware Division of Revenue to conduct business in the State of Delaware;

4.3 The application, as well as other documents submitted to the agency by or on behalf of the applicant for purposes of determining the qualifications of the applicant or agent, shall be sworn to or affirmed before a notary public. If any form or document is signed by an attorney for the applicant, the signature shall certify that the attorney has read the forms or documents and that, to the best of his knowledge, information and belief, based on diligent inquiry, the contents of the form or documents so supplied are true.

4.7.1 The criminal background, if any, of the applicant, or any of its officers, directors, partners, owners, key employees, and Internet lottery operations employees. No license shall be issued to any applicant if any of the persons identified in this subsection have been convicted, within 10 years before the filing of the application, of any felony, a crime of moral turpitude or a crime involving gambling;

4.8 A license shall be issued to the applicant if the Director is satisfied, on consideration of the factors specified in subsection 4.7, that the applicant would be a fit agent and not pose a threat to the public interest, the reputation of the lottery, or the effective control of the lottery. At the discretion of the Director, a license may be issued as “conditional” based on information received or determinations made during the Internet lottery application process.

4.9 If the Director proposes to deny a license application and the agency is subject to the requirements contained in subchapter IV of 29 Del.C. Ch. 101, the agency shall first give written notice to the applicant of the intended action, the reasons therefore, and the right to a hearing as provided for in 29 Del.C. Ch. 101.

4.11.1 Agents shall have a valid license to conduct business in the State of Delaware, shall follow all applicable tax provisions, and shall in all other respects be qualified to conduct business in Delaware.

Modification to and Surrender of License

4.12 Any license granted may not be transferred, assigned or pledged as collateral. A change of ownership which occurs after the Director has issued a license shall automatically terminate the license ninety (90) days thereafter. Provided, however, that the Director may issue a license to the new owner if satisfied, after the submission of an application that the new owner has met the requirements contained in 29 Del.C. §4806(a)(1-4), as well as the fitness and background standards contained in such law and these regulations. In the case of a death of an owner, the estate of such owner shall be deemed to have met the requirements of §4806(a)(1-4) for a period of one year following such death without the need for submitting an application, and, thereafter, need only supply such additional information as the Director may request. In the case of a shift in equity positions of owners, or a transfer among owners, notice shall be given the Director, but the license shall not terminate so long as no new owner is created or results. An agent may also seek approval of a proposed change in ownership prior to the actual change.

 

5.0 Licensing of Technology Providers

5.1 As deemed necessary, the Director shall give public notice of the agency's intent to select technology providers of Internet lottery systems that consist of the hardware software and expertise to operate a gaming platform providing an integrated suite of modules including player account management, network management, multi-level tracking and reporting and integration with multiple game content vendors through a request for proposal and qualifications by advertising in a newspaper of general circulation in Delaware and in a prominent trade publication requesting expressions of interest to be selected as a technology provider. The licensing of a technology provider shall not serve as the basis of requiring the Director to select the technology provider under the procurement procedures set forth in Ch. 69 of Title 29 of the Delaware Code.

5.2.1 It provides the hardware, software or operational services required to operate the Internet lottery gaming platform; or

License Applications

5.3.1 Give notice that the applicant will be required to submit to a background investigation, the cost of which must be borne by the applicant.

5.3.9 Require the applicant to provide a description of its risk management capabilities, engineering and software development resources, technical and maintenance support capabilities and ability to develop and deliver the Internet lottery system.

5.4 On request, the applicant shall supplement the information provided in the application form as deemed necessary by the Director.

5.10.1 Whether the applicant has demonstrated that it has the resources, experience and ability necessary to supply the necessary Internet lottery systems as may be required under a contract with the agency.

5.11 A license shall be issued to the applicant if the Director is satisfied, on consideration of the factors specified in subsection 5.10, that the applicant would be a fit technology provider and not pose a threat to the public interest, the reputation of the lottery or to the effective control of the lottery.

5.15.1 Technology providers shall, if required by law, have a valid license to conduct business in the State of Delaware, shall follow all applicable tax provisions, and shall in all other respects be qualified to conduct business in Delaware;

Modification to and Surrender of License

 

6.0 Licensing of Internet Lottery Service Providers

Classification of Service Providers

6.3.1 The total dollar amount of transactions with a single technology provider is or will be equal to or greater than $100,000 within any 12 month period; or

6.4 Notwithstanding the above, the Director may in his sole discretion determine that a service provider is required to apply for a service provider license.

6.6.1 For technology provider defined in section 5.2.1, on a quarterly basis; and

6.7 A service provider that is deemed to be conducting regular and continuing business as defined above shall submit a license application on a form specified and supplied by the agency. The license application shall, among other things:

6.7.1 Give notice that the applicant will be required to submit to a background investigation, the cost of which must be borne by the applicant;

6.8 On request, the applicant shall supplement the information provided in the application form as deemed necessary by the Director.

6.14.1 Whether the applicant has demonstrated an ability to interface its technical capabilities with the selected gaming platform and that it has the resources, experience and ability necessary to provide the services it may be required to supply under a contract with the agency.

6.15 A license shall not be issued to a service provider which has any direct or indirect ownership or financial interest in an Internet lottery agent or Internet lottery technology provider.

6.21.1 Operation in response to a license issued under these regulations shall signify agreement by the service provider to abide by all the provisions of the regulations, including those contained in this section;

Modification to and Surrender of License

6.23 A service provider licensee shall immediately notify the agency of any change in officers, partners, directors, key employees, Delaware Internet lottery operations employees, or owners. These individuals shall also be subject to a background investigation. The failure of any of the above-mentioned individuals to satisfy a background investigation may be cause for the suspension or revocation of the service provider’s license.

 

7.0 Employee Licensing

Requirements for all Employee Applicants

7.2.1 A waiver will be signed by the applicant indicating that should the DGE provide evidence that the applicant is disqualified pursuant to the Delaware Code, the applicant's temporary license will be suspended. If a temporary license is suspended, the applicant shall have an opportunity to request a hearing in accordance with these regulations.

7.3 An employee license application shall not be accepted for processing without confirmation of an offer of employment from an Internet lottery agent, a licensed technology provider or licensed service provider. The completed application form shall be reviewed and witnessed by the applicant's human resources personnel or designee.

7.5.1 One of the following authentic documents:

7.5.1.1 A current passport from the United States or another country;

7.5.2 Any two of the following authentic documents:

7.5.2.1 A certified copy of a birth certificate issued by a state, county or municipal authority in the United States or another country bearing an official seal;

7.6 Each applicant shall be fingerprinted by the State Bureau of Identification or shall supply fingerprints to the Delaware Lottery before acceptance of his or her application by the Lottery. An application shall not be accepted for processing unless accompanied by a receipt for fingerprinting.

7.8.1 The fee for an initial and renewal key employee license application shall be $500. In addition, an applicant for a key license shall pay for all unusual or out of pocket expenses incurred by the Division of Gaming Enforcement or Lottery on matters directly related to the applicant or licensee.

7.9 The State Bureau of Identification shall act as the intermediary for the receipt of the federal criminal history record checks performed by the Federal Bureau of Investigation. The State Bureau of Identification shall forward the results of these federal record checks to the attention of the DGE in a confidential manner.

7.13 All records pertaining to criminal background checks, pursuant to 29 Del.C. §4807A and copies of suitability determinations of applicants for licensure, shall be maintained in a confidential manner, including, but not limited to the following:

7.13.1 Access to criminal background check records, and letters of reference accompanying out-of-state criminal background checks, and determinations of suitability of applicants shall be limited to the Director and designated personnel;

Key Employees

7.14.1 Personal background information;

7.15 Key employee licenses shall be for an initial term of two years. The initial term of a key employee license shall expire and be renewable on the last day of the month on the second anniversary of the issuance date. Key employee license renewals shall be for a term of three years. The renewal term of a key employee license shall expire and be renewable on the last day of the month on the third anniversary of the issuance date.

7.15.1 At a minimum of 60 days before expiration, each employee licensee shall submit a renewal application form for a background investigation.

7.16 The licensed badge is the property of the Lottery and shall be returned to the Lottery when the licensee's employment is either terminated involuntarily by the employer or terminated at the request of the employee.

7.18.1 Personal background information;

7.19 Gaming employee licenses shall be for an initial term of three years. The initial term of a gaming employee license shall expire and be renewable on the last day of the month on the third anniversary of the issuance date. Gaming employee license renewals shall be for a term of four years. The renewal term of a gaming employee license shall expire and be renewable on the last day of the month of the fourth anniversary of the issuance date.

7.19.1 At a minimum of 60 days before expiration, each employee licensee shall submit a new and updated license application form for a background investigation.

7.20 The licensed badge is the property of the Lottery and shall be returned to the Lottery when the licensee's employment is either terminated involuntarily by the employer or terminated at the request of the employee.

7.22.1 Personal background information;

7.23 Service employee licenses shall be for an initial term of five years. The initial term of a service employee license shall expire and be renewable on the last day of the month on the fifth anniversary of the issuance date. Service employee license renewals shall be for a term of six years. The renewal term of a Service employee license shall expire and be renewable on the last day of the sixth anniversary of the issuance date.

7.23.1 At a minimum of 60 days before expiration, each employee licensee shall submit a new and updated license application form for a background investigation.

7.24 The licensed badge is the property of the Lottery and shall be returned to the Lottery when the licensee's employment is either terminated involuntarily by the employer or terminated at the request of the employee.

7.26.1 Applicants will be required to follow the procedures in Regulations 7.1 - 7.28 if twelve months or more have passed since the end of the applicant's former employment.

7.27 Licensees transferring employment from one licensed entity to another licensed entity under these Regulations will be required to fill out a License Application Update Form and submit to a new background investigation including a release of information waiver form.

7.29.1 Change their personal details;

 

8.0 Approval of Gambling Equipment

8.1 All equipment used in the provision of Internet lottery games must be approved by the Director.

8.2.1 The technology provider shall furnish a person to work with the agency and its consultants to provide assistance as needed in establishing, planning and executing acceptance tests on the Internet lottery systems provided by the technology provider;

8.2.9.1 The licensed agent and technology provider must submit a formal application to the Director for conditional approval of a game;

Criteria for Evaluation

 

9.0 Changes to Approved Gambling Equipment

9.1 The technology provider may not change the assembly or operational functions of any Internet lottery system approved for operation in Delaware unless before the change the agency is:

9.1.1 Informed of the reason for the change;

9.2 The agency must approve such request before any changes being made, and the agency shall reserve the right to require additional testing of proposed changes to the Internet lottery system as provided for in the change control process established in the MICS.

 

10.0 Approval of Internal Control System

10.1 Internet lottery games shall not be offered without the system of internal procedures and administrative and accounting controls used to govern the operations of the Internet lottery system being approved by the Director.

 

11.0 Changes to Approved Internal Control System

11.1 The agent or technology provider may not change the system of internal controls used to govern the operation of an approved Internet lottery system unless the changes are approved by the Director.

11.2.1 The reason for the change;

11.3 The Director must approve all such requests before any changes being made, and the Director shall reserve the right to have the impact of proposed changes to the Internet lottery internal control system assessed by an expert third party.

 

12.0 Incomplete Games

12.1 A licensee shall take all reasonable steps to ensure that the licensee’s approved Internet lottery system enables a player whose participation in a game, after making a wager, is interrupted by a failure of the telecommunications system or a failure of the player’s computer system which prevents the player from continuing the game, to resume participation in the game which was interrupted on the restoration of the system.

12.3.1 Process any pending wagers in accordance with the terms and conditions;

 

13.0 Customers: Registration, Funds and Protection

Requirement to Register

13.2.1 Full Name

13.3 Automated identity and age verification need not be performed for players registering to play for free. Only subsection 13.2.3 shall be required for players registering to play for free on a mobile device.

13.4.1 Full Name

13.5 Identity and age verification must be performed for players registering to play for real-money wagering.

13.8 Players shall be permitted to have one active account at each Internet lottery agent provided the Internet lottery system employs a method of preventing inappropriate or fraudulent play resulting from an individual attempting to log on at more than one agent’s site at the same time.

13.8.1 Each player account shall be treated independently and players shall not be permitted to transfer funds between accounts held with different Internet lottery agents.

Identity Verification

13.10.1 The agency or licensed agents will provide a current copy of the official exclusion list to the technology provider for the purposes of screening applicants registering for or attempting to play with an Internet lottery gaming account.

Self-Exclusion

13.14.1 The following identifying information concerning the person submitting the request for self-exclusion:

13.14.1.1 Name, including any aliases or nicknames;

13.14.1.5 Social security number or other form of government issued identification for non-US residents;

13.14.2 The length of minimum self-exclusion requested by the person:

13.14.2.1 One year;

13.14.3 A waiver and release which shall release and forever discharge the State of Delaware, its employees, and agents, and all Internet lottery agents, and their employees and agents from any liability to the person requesting self exclusion and his or her heirs, administrators, executors, and assigns for any harm, monetary or otherwise, which may arise out of or by reason of any act or omission relating to the request for self-exclusion or request for removal from the self-exclusion list, including:

13.14.3.1 Its processing or enforcement;

13.14.4 The signature of the person submitting the request for self-exclusion indicating acknowledgment of the following statement:

"I am voluntarily requesting exclusion from all gaming activities at all licensed Delaware Video Lottery Agent locations and their Internet lottery sites because I am a problem gambler. I certify that the information provided above is true and accurate, and that I have read and understand and agree to the waiver and release included with this request for self-exclusion. I am aware that my signature below authorizes the Lottery and the DGE to direct all licensed Video Lottery Agents to prohibit my access to their premises and all Internet lottery sites in accordance with this request and unless I have requested to be excluded for life, until such time as the Lottery removes my name from the self-exclusion list in response to my written request to terminate my voluntary self-exclusion. I am aware and agree that during any period of self-exclusion, I shall not collect any winnings or recover any losses resulting from any gaming activity at all licensed Video Lottery Agent facilities and Internet lottery sites, and that any money or thing of value obtained by me from, or owed to me by a Video Lottery Agent as a result of wagers made by me while on the self-exclusion list shall be subject to forfeiture. I am aware that during my period of self-exclusion I will be denied access to any player club promotions, offers or memberships relating to video lottery and internet lottery activities. Note: any person whose name has been placed on the self-exclusion list, who thereafter knowingly enters a gaming area, is guilty of a Class A misdemeanor.”

13.14.5 The type of identification credentials examined containing the signature of the person requesting self-exclusion, and whether said credentials included a photograph and general physical description of the person; and

Self Exclusion List

13.16.1 Name, including any aliases or nicknames;

13.17 Information furnished to or obtained by the Lottery or DGE shall be deemed confidential and not be disclosed except in accordance with these regulations.

13.19.1 Prevent any self-excluded person from registering an Internet lottery gaming account.

13.20 Each Internet lottery agent shall submit to the Lottery and the DGE, a copy of its procedures established to follow with these self-exclusion regulations within thirty days of the effective date of these regulations. The agent's procedures will be incorporated into the agent's internal control submission with the agency. Any amendments to said procedures shall be submitted to the Lottery and the DGE at least three business days before the implementation. If the Lottery and the DGE do not object to said procedures or amendments thereto, such procedures or amendments shall be deemed to be approved.

13.21.1 A request for removal from the self-exclusion list shall be in a form prescribed by the Lottery, which form shall include:

13.21.1.1 The identifying information specified in Internet lottery regulation 13.8;

"I certify that the information that I have provided above is true and accurate. I am aware that my signature below constitutes a revocation of my previous request for self-exclusion, and I authorize the Lottery to permit all Internet lottery agents to reinstate my Internet lottery privileges at licensed Internet lottery websites;"

13.21.1.3 The type of identification credentials examined containing the signature of the person requesting removal from the self-exclusion list, and whether said credentials included a photograph and general physical description of the person; and,

13.21.2 The Lottery shall delete the name of the person requesting the removal from the self-exclusion list and notify each Internet lottery agent of such removal by mailing a notice to each Internet lottery agent.

Geolocation

13.22.1 The Internet lottery system shall block access to play for money games from any player for whom a geographic location cannot be determined.

Customer Accounts

13.23.1 It is not permitted to have a negative customer account balance.

13.24 Funds may only be deposited into customer accounts by the following means:

13.24.1 Credit card;

13.25 Funds may only be withdrawn from customer accounts by the following means:

13.25.1 Bank transfer;

Inactive Accounts

13.26 Accounts shall be deemed inactive as specified in Title 29, Section 4826 (c)(4) of the Delaware Code.
13.27 Inactive accounts shall be treated according to the Title 12, Chapter 11, Subchapter II of the Delaware Code related to abandoned or unclaimed property.

13.27.1 On or before November 10 in each year every Internet lottery license holder shall make a verified written report to the State Escheator which shall contain a true and accurate statement, as of the preceding June 30, of all inactive accounts held by it.

13.27.2.1 The name and last registered address of the account holder,

13.27.3 Such report shall be in the form prescribed by the State Escheator.

Privacy Policy

13.29.1 Disclose information about the name, or other identifying particulars, of a player; or

13.30 The disclosure of information, or its use for a purpose other than the purpose for which it was given, is authorized if the disclosure or use is:

13.30.1 Approved in writing by the player

Customer Complaints and Disputes

13.33.1 After investigating the complaint the Director shall:

13.33.1.1 Make a preliminary determination of the matter in dispute between the customer and the Internet lottery licensee;

13.33.1.4.1 A clear and concise assignment of each error alleged to have been committed in the preliminary determination.

13.33.1.5 The Secretary of Finance shall appoint a hearing officer within a reasonable time of receipt of the statement referenced in the preceding paragraph. Notice of the hearing shall be given at least 20 days before the date it is to be held.

18 DE Reg. 370 (11/01/14)

 

14.0 Promotional Gaming Activities

Advertising

14.4.1 The play for free game shall use the same random number generator, scaling algorithms and symbol mapping as the corresponding real money wagering game.

14.4.2.1 Where play for free games use virtual cash, the virtual cash payouts should be the same as the corresponding real money wagering game

14.5 Play for free games may be deployed under conditional approval by the director according to the requirements in section 8.2.9.

14.6.1 Rules and policies for player loyalty accounts including the awarding, redeeming and expiration of points shall be available to a registered player on the website where the promotional activity is being conducted;

14.7 Video Lottery Agents shall retain full ownership of all customer data, including but not limited to, all player data from game play as well as deposit/withdrawal, fraud, collusion, personal player information as well as all qualitative information pertaining to players such as all analytical information/data on players, e.g. player segmentation and factoring. Technology Service Providers shall not sell or disclose customer data to any third parties, shall not retain any customer data in any form once their contracts have ended, and shall only have the right to access and use customer data for the benefit and on behalf of the Lottery and the Video Lottery Agents. The Lottery has the right to access all player data.

14.8.1 Transfers must be performed through an agency-approved mechanism designed to facilitate electronic financial transactions; and

 

15.0 Gaming Records

Method of Storage

15.1.1 Application data

15.2 Backup media shall be transferred to a storage location which is secured to prevent unauthorized access and provides adequate physically protection to prevent the permanent loss of any data.

15.3.1 Is properly configured to maintain the original version along with all subsequent versions reflecting all changes to the document;

15.3.4.1 Date and time document was generated;

15.3.5 Is configured to limit access to modify or add documents to the system through logical security of specific user accounts; and

15.4 Electronic document retention systems may utilize CD-ROM, DVD-ROM, Hard Drive, or other type of storage, but the system must be properly secured through use of logical security measures (user accounts with appropriate access, proper levels of event logging, and document the version control, etc.) and the system must be physically secured with all other critical components of the interactive gaming system.

 

16.0 Accounting and Distribution Procedures

Maintenance of Accounts

16.8.1 Each agent, unless specifically exempted by the Agency, shall file weekly, monthly, quarterly, and annual reports and statistical data in a format specified by the Director. The data may be used by the agency to evaluate the financial position and operating performance of individual Internet lottery agents and to compile information regarding the performance and trends of the Internet lottery industry in the State of Delaware.

 

17.0 Monitoring of Operations

Internal Audit

17.1.1 The internal audit function shall operate with audit programs, checklists, or reports which, at a minimum, address the regulations and MICS and properly document the work performed, the conclusions reached, the resolution of all exceptions, and any other additional information as required by the director. Reports documenting audits performed shall be maintained for a minimum of five years and shall be made available to the Director on request.

Periodic Security Audits

17.2.1 Have the external interface of the website scanned for known vulnerabilities at least once every six months by an expert third party.

 

18.0 Enforcement

18.1 The license of an Internet lottery agent, technology provider or service provider may be suspended or revoked for the following reasons:

18.1.1 Failure of the agent to file with the Director the information required pursuant to 29 Del.C. §4826; and

18.1.2 For cause, such as, but not limited to falsifying any application for license or report to the agency; failure to report information required by the regulations; the material violation of the regulations; or any conduct by the licensee, or any of its owners, officers, directors, partners, key employees, or Internet lottery operations employees, which undermines the public confidence in the Internet lottery system or serves the interest of organized gambling or crime and criminals in any manner. A license may be revoked for an unintentional violation of any Federal, State or local law, rule or regulation provided that the violation is not cured within a reasonable time as determined by the Director, or a longer period where the Internet lottery agent has made diligent efforts to cure. For purposes of this provision, the licensee is deemed to be familiar with all the provisions of these regulations and unintentional violations shall not include violations which the agent, technology provider or service provider asserts are unintentional because of lack of awareness of these regulations. Likewise, for purposes of this provision, diligent efforts to cure shall not be a defense to a suspension or revocation of the license arising out of situations where the violation would not have occurred had the licensee exercised diligent efforts to follow the requirements when they were first applicable.

18.2 Before the revocation or suspension of any license, the agency shall notify the licensee of the intended revocation or suspension of the license, and the reasons for such action. No revocation or suspension shall be effective until a final order is issued in response to the following procedure, except when the public welfare clearly requires emergency action and the agency's order so states. The notice of the intended revocation or suspension shall follow any applicable requirements of the Delaware Administrative Procedures Act and, at a minimum, afford the licensee with an opportunity for a hearing.

18.3.1 A clear and concise assignment of each error which the licensee alleges to have been committed in the tentative determination to suspend or revoke the license. Each assignment of error should be listed in a separately numbered paragraph.

18.4 The Secretary of Finance with respect to petitions filed by agents, and the Director with respect to petitions filed by technology providers and service providers, shall appoint a hearing officer within a reasonable time of receipt of the statement referenced in the preceding paragraph. Notice of the hearing shall be given at least 20 days before the date it is to be held.

18.12 Whoever violates the Lottery chapter 29 Del.C. Ch. 48, or any Lottery rule or regulation duly promulgated thereunder, or any condition of a license issued pursuant to 29 Del.C. §4826, or any Administrative Order issued in response to Lottery statutes or Regulations shall be punishable as follows:

18.12.1 If the violation has been completed, by a civil penalty imposed by Superior Court, which by 29 Del.C. §4823 shall have jurisdiction of civil penalty actions brought in response to this section, of not less than $1,000 nor more than $10,000 for each completed violation. Each day of a continued violation shall be considered as a separate violation if, on each such day, the violator has knowledge of the facts constituting the violation and knows or should know that such facts constitute or may constitute a violation. Lack of knowledge regarding such facts or violation shall not be a defense to a continued violation with respect to the first day of its occurrence.

18.12.3 In his discretion, the Director may impose an administrative penalty of not more than $1,000 for each administrative penalty for each violation. Each day of continued violation shall be considered as a separate violation if the violator has knowledge of the facts constituting the violation and knows or should know that such facts constitute or may constitute a violation. Lack of knowledge regarding such facts or violations shall not be a defense to a continued violation with respect to the first day of its occurrence. Before the assessment of an administrative penalty, written notice of the Director's proposal to impose such penalty shall be given to the violator, and the violator shall have 30 days from receipt of such notice to request a public hearing. Any public hearing, if requested, shall be held before the imposition of the penalty and shall be governed by §10125 of Title 29. If no hearing is timely requested, the proposed penalty shall become final and shall be paid no later than 60 days from receipt of the notice of proposed penalty.
Assessment of an administrative penalty shall take into account the circumstances, nature, and gravity of the violation, as well as any prior history of violations, the degree of culpability, the economic benefit to the violator resulting from the violation, any economic loss to the State, and such other matters as justice may require. In the event of nonpayment of an administrative penalty within 30 days after all legal appeal rights have been waived or otherwise exhausted, a civil action may be brought by the Director in Superior Court for the collection of the penalty, and for interest, from the date payment was due, attorneys' fees and other legal costs and expenses. The validity or amount of such administrative penalty shall not be subject to review in an action to collect the penalty. Any penalty imposed after a public hearing is held in regard to this subsection shall be appealable to Superior Court, and such appeal shall be governed by §10142 of Title 29.
18.12.4 In his discretion, the Director may try to obtain compliance with requirements of the Lottery chapter, 29 Del.C. Ch. 48, by written Administrative Order. Such order shall be provided to the responsible party, shall specify the complaint, and propose a time for correction of the violation. It may also provide an opportunity for a public hearing at which the Director shall hear and consider any submission relevant to the violation, corrective action, or the deadline for correcting the violation.

18.13 The Director shall enforce Ch. 48, 29 Delaware Code and any rules, regulations, or Administrative Orders issued thereunder.

18.14 Any interest, costs or expenses collected by the Lottery under actions instituted by 29 Del.C. §4823 or these regulations shall be appropriated to the State Lottery Office to carry out the purposes of 29 Del.C. Ch. 48.

 

19.0 Severability

The sections and subsections of these rules and regulations shall be deemed severable. Should any section or subsection be deemed by judicial opinion or legislative enactment to be invalid, unconstitutional or in any manner contrary to the laws of the State of Delaware, then such opinion or enactment shall invalidate only that particular section or subsection of these rules and regulations and all other sections shall remain in full force and effect.

17 DE Reg. 317 (09/01/13)

 

 

Last Updated: November 07 2014 16:15:08.
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