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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsMarch 2013

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Delaware Department of Finance, Office of the State Lottery, pursuant to 29 Delaware Code, Section 4819A(h), is adopting amendments to 10 DE Admin. Code 205 without prior notice or public hearing in response to the signing of House Bill #1, an Act to Amend Title 29 of the Delaware Code Relating to Lotteries, on January 30, 2013.
It is hereby ordered the 25th day of February that the above referenced amendment to 10 DE Admin. Code 205 is adopted pursuant to 29 Delaware Code, Section 4819.
These regulations are authorized pursuant to 29 Del.C. §4819A(h) of Title 29 of the Delaware Code. Charitable Video 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 “lottery office” - the Delaware State Lottery Office created pursuant to 29 Del.C. Ch. 48.
"agent" or "licensed agent" or "charitable gaming organization" or “charitable video lottery agent” - any person licensed by the Director of the agency to conduct charitable video lottery operations.
"applicant" - any person applying for a license authorized under these regulations.
"background investigation" - the security, fitness and background checks conducted of an applicant.
"charitable video lottery" - any lottery conducted with a charitable video lottery machine or linked charitable video lottery machines with an aggregate progression prize or prizes.
charitable video lottery facility” - a building containing a gaming room or rooms.
"charitable video lottery machine" - any machine in which coins, credits or tokens are deposited in order to play any game of chance in which the results, including options available to the player, are randomly and immediately determined by the machine. A machine may use spinning reels or video displays or both, and may or may not dispense coins or tokens directly to winning players. A machine shall be considered a charitable video lottery machine notwithstanding (i) the use of an electronic credit system making the deposit of bills, coins, or tokens unnecessary.
charitable video lottery vendor” - any person who supplies or services charitable video lottery machines or associated equipment.
"certification" - the authorization by the lottery in accordance with its inspection and approval process of charitable video lottery machines and video games, such certification to relate to either hardware or software.
"credit slip" - the receipt issued from a charitable video lottery machine for payment of credits by an agent.
"credit" - the opportunity provided to a player to play a video game or redeem the credit for cash.
DGE” - the Division of Gaming Enforcement of the Department of Safety and Homeland Security, as authorized by the Delaware Code.
"Director" - the Director of the Delaware State Lottery Office as established by Title 29 of the Delaware Code.
gaming” - the dealing, operating, carrying on, maintaining or exposing for play any charitable video lottery machine in a licensed charitable gaming organization.
gaming area” - A location in a charitable gaming organization where gaming activity is conducted at charitable video lottery machines.
gaming vendor” - any vendor offering goods or services relating to the manufacture, operation, maintenance, security, distribution, service or repair of charitable video lottery machines.
"hearing officer" - 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.
"license" - the authorization granted by the agency which permits an applicant to engage in defined charitable video lottery activities as an agent or charitable gaming vendor;
"license application" - the process by which a person requests licensing for participation in the charitable video lottery operations.
"licensee" - any person authorized by the Director to participate in charitable video lottery operations.
"lottery" - the public gaming system or games established and operated by the Delaware State Lottery Office.
Lottery Commission” – the Lottery Commission of the State of Delaware as established by 29 Del.C. §4837.
MEAL" - a written Machine Entry Authorization Log stored inside the charitable video lottery machine.
"net charitable video lottery game proceeds" - the total amount of credits or cash played less the total amount of credits or cash won by the players. "Net charitable 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.
"owner" - a person who owns, directly or indirectly, ten percent or more of an applicant or licensee.
"person" - an individual, general partnership, limited partnership, corporation or other legal entity.
"player" - an individual who plays a charitable video lottery machine.
"premises" - the building and grounds occupied by a licensed agent where the agent's charitable video 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 charitable video lottery operations are kept.
"terminal" - a charitable video lottery gaming device.
"video game" - any game played on a charitable video lottery machine, including but not limited to a variation of poker, blackjack, pull tabs, instant or line-up games.
"video game event outcome" - the result of a video game achieved by a player at a charitable video lottery machine.
10.28 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. §4805, or any Administrative Order issued pursuant to Lottery statutes or regulations shall be punishable as follows:
10.28.1 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 $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.
10.29 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 thirty (30) days from receipt of such notice to file an appeal for reconsideration before the Lottery Commission in accordance with the procedures set forth above. A hearing, if requested, shall be held prior to the imposition of the penalty in accordance with the procedures set forth above. If no hearing is timely requested, the proposed penalty shall become final and shall be paid no later than sixty (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 thirty (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 §10142 of Title 29.
10.30 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.
10.31 The Director shall enforce Ch. 48, 29 Delaware Code and any rules, regulations, or Administrative Orders issued thereunder.
10.32 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.
Consistent with the requirements of the federal Bank Secrecy Act, (31 U.S.C. 5311, et seq) and regulations promulgated thereunder, each licensed agent shall comply with federal law pertaining to reportable currency transactions and transactions that are believed to be suspicious.
Last Updated: December 31 1969 19:00:00.
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