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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsJanuary 2019

Authenticated PDF Version

10 DE Admin. Code 204
The Director of the Office of the State Lottery (Director) hereby gives notice of amendments to 10 DE Admin. Code 204, the Delaware Sports Lottery Rules and Regulations. These amendments correct minor wording errors and in one case are necessary to make the regulations consistent with changes in basic law but which do not otherwise alter the substance of the regulations. Pursuant to 29 Del.C. §10113(b)(5), such amendments are exempted from the notice and public comment requirements of 29 Del.C. Ch. 101. The Delaware Code authority for these revisions is 29 Del.C. §§4805(a) and 4825(a).
These regulations are authorized pursuant to 29 Del.C. §4805 of Title 29 of the Delaware Code. Sports 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.
"Agency" or “Delaware Lottery” means the Delaware State Lottery Office created pursuant to 29 Del.C. Ch. 48.
"Agent" or "licensed agent" or "licensed sports lottery agent" means any person licensed by the Director of the agency to conduct sports lottery operations.
"Applicant" means any person who applies for a license to be an Agent as authorized under Delaware law and these regulations.
"Background investigation" means the security, fitness and background checks conducted of an applicant.
"Business plan" means a document containing information regarding lottery operations as may be required by the Director.
"Central system" means the hardware, software and network components, components which link and support all required sports lottery machines and the central site.
"Central system provider" means a person with whom the agency has contracted for the purpose of providing and maintaining a central communication system and the related management facilities with respect to operating and servicing the sports lottery machines.
"Central site" means the location where the central sports lottery communications control systems shall be located.
"Certification" means the authorization by the lottery in accordance with its inspection and approval process of sports lottery machines, such certification to relate to either hardware or software.
"Credit" means the opportunity provided to a player to play a sports lottery game or redeem the credit for cash.
"Credit slip" means the ticket (receipt) resulting from a sports lottery game.
Director" means the Director of the Delaware State Lottery Office as established by Title 29, Ch. 48 of the Delaware Code.
Division of Gaming Enforcement” or “DGE” means the Division established within the Department of Safety and Homeland Security under 29 Del.C. §8236 to (i) exercise exclusive jurisdiction for the criminal offenses which relate to gaming that occurs in a licensed video lottery facility or which relate the operation of the Lottery, and (ii) investigate the background, qualifications, and suitability of each applicant or licensee before any license is issued or re-issued by the Director.
"Key employee" means an individual employee, person or agent of an applicant or licensee who has the power to exercise significant influence over significant decisions concerning the applicant's or licensee's business.
"Kind, type and number" means the generic varieties of sports lottery machines that may be selected for installation, and the quantities in which they may be installed.
"License" means (i) the authorization granted by the agency which permits an applicant to engage in defined sports lottery activities as an agent or technology provider; and (ii) the authorization granted by the agency which permits an applicant to perform employment duties as a key employee or sports lottery operations employee.
"License application" means the process by which a person requests licensing for participation in the sports lottery operations.
"Licensed video lottery agent" means any person licensed by the Director to conduct table games and/or video lottery operations in a video lottery facility and that has a sportsbook.
"Licensee" means any person authorized by the Director to participate in sports lottery operations.
"Lottery" means the public gaming system or games established and operated by the Delaware State Lottery Office.
"Maximum wager limit" means the maximum amount that can be wagered on a single sports lottery wager be it head-to-head or parlay, as determined by the Lottery Director from time to time.
"Net proceeds" means all proceeds net of proceeds returned to players.
"Owner" means a person who owns, directly or indirectly, any portion of an applicant or licensee.
"Person" means an individual, general partnership, limited partnership, corporation or any other type of legal entity or legal organization.
"Player" means an individual who plays a sports lottery game.
"Premises" means the building and grounds occupied by a licensed agent where the agent's sports lottery operations occur or support facilities for such operations exist, such as facilities for the service of food or drink, including those areas not normally open to the public, such as areas where records related to sports lottery operations are kept.
"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.
"Service technician" means any person who performs service, maintenance and repair operations on sports lottery machines.
Sports lottery” means a lottery in which the winners are determined based on parlay wagering on the outcome of any National Football League games and does not include wagering on any other football games in any other league, professional or otherwise, or any other sport or sporting event played in any league, professional or otherwise professional or collegiate sport or sporting event, including racing, held within or without the State, but excluding collegiate sporting events that involve a Delaware college or university and amateur or professional sporting events that involve a Delaware team.
Sports lottery machine” or “terminal” means any machine in which bills, coins or tokens are deposited in order to play a sports lottery game. A machine shall be considered a sports lottery machine notwithstanding the use of an electronic credit system making the deposit of bills, coins or tokens unnecessary.
Sports lottery operations employee” means an individual employee, person or agent of an applicant or licensee who is responsible for the security of sports lottery operations or proceeds.
Sports lottery systems” means systems provided by a technology provider that consist of sports wagering products, risk management (bookmaking), operations and support services.
"Technology provider" means any person or entity who proposes to contract with a sports lottery agent or the agency for the provision of goods or services related to a sports lottery, the provision of which requires a license pursuant to 29 Del.C. Ch. 48.
3.2 Retail Lottery Agents. Any potential sports lottery agent who has already obtained from the Director a license to sell lottery tickets and provide lottery-related services under 10 DE Admin. Code 202 is not required to apply to the agency for a separate sports lottery license.
3.4.8 A statement of compliance and an inspection report as required under 10 DE Admin. Code 202, Section 29.0 regarding non-discrimination on the basis of disability in Delaware lottery programs; and
4.9.8 Whether the applicant is in compliance with 29 Del.C. §4829(i) that states: “The risk manager of the sport lottery must be a bookmaker currently licensed to operate, and operating, sports books in the United States and the sports lottery technology system provider must be licensed to operate lotteries in the United States.”
5.1 The Director shall, pursuant to the procedures set forth in Chapter 69 of Title 29 of the Delaware Code, enter into contracts with licensed technology providers as he or she shall determine to be appropriate, pursuant to which the technology providers shall furnish to the State, State a sports lottery system that results in the efficient and economical operation of the lottery, convenience of the players, and is in accordance with the agents' business plans as approved and amended by the Director.
6.1.3 Assure that telephone lines from the central computer system to the sports lottery machines located on the agent's premises are at all times connected, and prevent any person from tampering or interfering with the continuous operation of the lines.
6.1.10 Exercise caution and good judgment in extending credit for sports lottery play if the agent is a licensed video lottery agent authorized to extend such credit and comply with all applicable federal and state laws.
6.1.14 Install, post and display prominently at locations within or about the premises signs, redemption information and other promotional material as may be required by the agency.
7.12.1 the The types of sports wagers that will be offered for sale at sportsbooks and at agents' premises, and;
7.12.2 at At which locations players may cash winning sports lottery tickets.; and
7.14 The Director will determine and post online on the lottery’s website (www.delottery.com) the "Delaware Lottery Sportsbook Wagering Rules" and the "Delaware Lottery Sports Retailer Wagering Rules," which may be updated from time to time. These wagering rules will control the type and amount of sports wagers that will be accepted at sportsbooks and at agents’ premises.
11.12 Whoever violates 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. §4805, or any Administrative Order issued pursuant to Lottery statutes or Regulations shall be punishable as follows:
11.12.1 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 pursuant to this section, of not less than $1000 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.
11.12.3 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. Prior to 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 prior to the imposition of the penalty and shall be governed by 29 Del.C. §10125. 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 pursuant to this subsection shall be appealable to Superior Court, and such appeal shall be governed by 29 Del.C. §10142.
11.12.4 In his discretion, the Director may endeavor 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.
11.13 The Director shall enforce 29 Del.C. Ch. 48 and any rules, regulations, or Administrative Orders issued thereunder.
11.14 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.
Last Updated: December 31 1969 19:00:00.
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