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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsMay 2013

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10 DE Admin. Code 203
1.1 These regulations are authorized pursuant to 29 Del.C. §4805 of Title 29 of the Delaware Code. Video lottery and table game 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 "licensed video lottery agent" - any person licensed by the Director of the agency to conduct table games and/or video lottery operations.
"applicant" - any person applying for a license authorized under these regulations.
"authorized game" - roulette, baccarat, blackjack, craps or mini craps, big six wheel, poker, Let it Ride, minibaccarat, red dog, pai gow, sic bo, 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" - the security, fitness and background checks conducted of an applicant.
"business plan" - a document containing information regarding table game and video lottery operations as may be required by the Director.
"cage" and "cage area"- a secure work area within the video lottery facility for cashiers and a storage area for the agent's working fund of cash and gaming chips.
"cash equivalent" - a certified check, cashier's check, treasurer's check, recognized traveler's check or recognized money order that: is made payable to the presenting patron or the agent where presented, or a holding company of the agent, or "bearer" or "cash;" is dated, but not postdated; and either does not contain any endorsement other than that of the presenting patron or is endorsed in blank by the presenting patron.
"chip" - a small disk issued by the agent representing a set value that is used for making table game wagers and is redeemable only for cash, the agent's check or in redemption of a marker.
"count room" - the room or rooms designated for the counting, wrapping, and recording of the agent's gaming receipts.
"credit slip" - the receipt issued from a video lottery machine for payment of credits by an agent.
"central system" - the hardware, software and network components, which link and support all required video lottery machines and the central site.
"central system provider" - 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 video lottery machines.
"central site" - the location where the central video lottery communications' control systems shall be located.
"certification" - the authorization by the lottery in accordance with its inspection and approval process of video lottery machines and video games, such certification to relate to either hardware or software.
"counter check" or "marker" - an electronic or written document that evidences an extension of credit to a patron by the agent, or a front money withdrawal, including any counter check taken in consolidation, redemption, or payment of a previous counter check.
"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.
"drop box" - the dual key-locked box attached to a table game that is used to collect currency, coin, chips, cash equivalents, documents verifying the extension and redemption of credit, requests for fill and credit forms and any other documents as approved by the Director.
"elector" - any person who, under 29 Del.C. §4821, decides not to become an agent.
"front money" - a patron deposit that is used in lieu of credit to guarantee payment of a marker issued or to establish a line of credit for gaming purposes.
"gaming" - the dealing, operating, carrying on, maintaining or exposing for play any video lottery machine or table game in a licensed video lottery facility.
"gaming area" - A location in a video lottery facility where gaming activity is conducted at video lottery machines or table games.
"gaming employee" - a person employed in the operation of a Video Lottery Facility and determined by the Director to have employment duties and responsibilities involving the security, maintenance, servicing, repair, or operation of video lottery machines and table game equipment, or is employed in a position that allows direct access to the internal workings of video lottery machines or table game equipment. Such employees shall include, without limitation, dealers, floorpersons, video lottery machine personnel, video lottery machine technicians, count room and cage personnel, security and surveillance employees, employees responsible for handling assets and proceeds associated with the operation of gaming activity, and employees with responsibility for policies concerning complimentaries or who are authorized to grant variances to policies concerning complimentaries.
"gaming equipment" - any mechanical, electrical or electronic contrivance or machine or equipment used in connection with gaming including, without limitation:
"gaming excursion" - an arrangement, the purpose of which is to induce any person, selected or approved for participation therein on the basis of his ability to satisfy a financial qualification obligation related to his ability or willingness to gamble or on any other basis related to his propensity to gamble, to come to a video lottery facility for the purpose of gaming and pursuant to which, and as consideration for which, any or all of the cost of transportation, food, lodging, and entertainment for said person is directly or indirectly paid by a video lottery agent or employee thereof.
"gaming excursion provider" is a person that provides gaming excursion services to an agent.
"gaming room service employee" - A person employed to perform services or duties in a video lottery facility who has access to the gaming or restricted gaming area but who is not included within the definition of key employee or gaming employee.
"gaming vendor" - any vendor offering goods or services relating to the manufacture, operation, maintenance, security, distribution, service or repair of video lottery machines, sports lottery machines or table game equipment.
"gross table game revenue" - the total of all table game win or loss and poker revenue, including checks received whether collected or not; received by a video lottery agent from table game operations; provided that if the value of gross table game revenue at any video lottery facility in a given fiscal year is less than zero, any liabilities to winners in such year shall be the responsibility of the video lottery agent. Gross table game revenue shall include entry fees charged in a tournament in excess of cash prizes awarded. For purposes of this section, any check which is invalid and unenforceable shall be treated as cash and included within gross table game revenue.
"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.
"immediate family" - means a person's spouse and any children, whether by marriage, adoption or natural relationship.
"imprest" - a specific amount of funds which are replenished from time to time or at the end of a shift in exactly the value of the expenditures made from the funds as documented. A review is made by a higher authority of the propriety of the expenditures before the replenishment.
"key employee" - a person employed in the operation of a video lottery facility and determined by the Director to be acting in a supervisory capacity or empowered to make discretionary decisions with respect to video lottery machine or table game operations, including, without limitation, the chief executive, financial and operation managers, video lottery department managers, cashier and cage supervisors, credit executives, pit bosses or managers, gaming employee shift managers 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 video lottery agent in collective bargaining, grievance representation, labor disputes, salaries, wages, rates of pay, hours of employment or conditions of work.
"kind, type and number" - the generic varieties of video lottery machines that may be selected for installation, and the quantities in which they may be installed.
"license" - the authorization granted by the agency which permits an applicant to engage in defined table game and/or video 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" - the process by which a person requests licensing for participation in the table game and/or video lottery operations.
"licensee" - any person authorized by the Director to participate in table game and/or 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.
"master game report (stiff sheet)" - a record of the computation of the win or loss or, for the game of poker, the poker revenue, for each gaming table, each game, and each shift.
"match play coupon" - a promotional item in paper or plastic form with a fixed stated play ratio and value that is issued and used by an agent, and the stated value of which, when presented by a patron with gaming chips which are in the stated ratio in value to the stated value of the promotional item, is included in the amount of the patron's wager in determining the amount the patron receives as the result of a winning wager made with the gaming chips and their accompanying promotional item.
"maximum wager limit" - the maximum amount that can be wagered on a single play on any single video game or table game event outcome, as determined by the Lottery Director from time to time.
"MEAL" - a written machine entry authorization log stored inside the video lottery machine.
"MICS"- Minimum Internal Control Standards as adopted by the Director.
"net video lottery game proceeds" - the total amount of credits or cash played 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 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 video lottery game proceeds.
"non-value chip” - a chip which is clearly and permanently impressed, engraved, or imprinted with the name of the licensee, but which does not bear a value designation.
"non-gaming vendor" - any vendor offering goods or services other than those considered to be a gaming vendor as defined above.
"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.
"pit" - the area of arrangement of a group of gaming tables in which gaming employees administer and supervise the table games played at the grouping of tables.
"player" - an individual who plays a table game or video lottery machine.
"poker revenue" - the total value of rake charged to players at all poker tables. The poker revenue is determined by adding the value of cash, coupons, the amount recorded on the closer, the totals of amounts recorded on the credits and markers removed from a drop box, and subtracting the amount on the opener and the total of amounts recorded on fills removed from a drop box.
"premises" - the building and grounds occupied by a licensed agent where the agent's table game or 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 table game or video lottery operations are kept. "Premises" do not include areas where such operations or facilities do not take place or exist, such as racetrack areas, which are wholly unrelated to table game or video lottery operations. The boundaries of the premises will be delineated on the floor plan in an agent's business plan.
"rake" - the amount of gaming chips, gaming plaques or coin collected by the dealer pursuant to the approved rules of the game as poker revenue.
"request for proposals and qualifications" - a document developed under the direction of the Delaware State Lottery Office for the purpose of soliciting responses from potential {technology providers} service companies as a means of acquiring bids for goods or services.
restricted gaming area” - The cashiers' cage, the count room, the cage booths and runway areas, the interior of table game pits, the surveillance room, the video lottery machine repair room and any other area designated by the Director as a restricted gaming area.
"service technician" - any person who performs service, maintenance and repair operations on table games or video lottery machines.
"table game" - any game played with cards, dice or any mechanical, electromechanical or electronic device or machine (excluding video lottery machines) for money, credit or any representative of value, including, but not limited to, baccarat, blackjack, twenty one, poker, craps, roulette, bingo, wheel of fortune or any variation of these games, whether or not similar in design or operation, provided that the game is expressly authorized by rule of the Director.
"table game equipment" - gaming tables, cards, dice, chips, tiles, shufflers, drop boxes or any other mechanical, electronic or other device, mechanism or equipment or related supplies used or consumed in the operation of any table games.
"table game win or loss" - the value of gaming chips and cash won from patrons less the value of gaming chips and cash won by patrons at gaming tables other than poker tables. The table game win or loss is determined by adding the value of cash, total value of coupons, the amount recorded on the closer, the totals of amounts recorded on the credits and the issuance copies of markers removed from a drop box, subtracting the amount recorded on the opener and the total of amounts recorded on fills removed from a drop box. Match play coupons shall not be included, subject to limitations imposed by the Director.
"terminal" - a gaming device linked to the central system as part of the video lottery operations.
"value chip" - a chip that is clearly and permanently impressed, engraved, or imprinted with the name of the licensee and the specific value of the chip.
"video game" - any game played on a 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 video lottery machine.
"video lottery" - any lottery conducted with a video lottery machine or linked video lottery machines with an aggregate progression prize or prizes.
video lottery facility” - a building containing a gaming room or rooms.
"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 video lottery machine notwithstanding (i) the use of an electronic credit system making the deposit of bills, coins, or tokens unnecessary, or (ii) the fact that the video lottery machine has employed dual function terminal technology.
3.6 The applicant shall submit with the application a proposed business plan for the conduct of table games and/or video lottery operations. Such plan shall be submitted in conformity with a separate form specified and supplied by the agency. The plan shall include, without limitation, the following items: a floor plan of the area to be used for table games or video lottery operations; an advertising/marketing plan; the proposed placement of table games and video lottery machines on the premises; the kind, type and number of table games and video lottery machines proposed, provided however that the name of the manufacturer(s) of such machines shall not be included; money control procedures; a security plan; a staffing plan for table games and video lottery operations; accounting and tax compliance procedures; and the method to be utilized for prize payments. The plan shall provide the details of any progressive jackpot games and shall provide for an escrow account or escrow accounts to be established and maintained in accordance with instructions provided by the agency for the purpose of holding in reserve large or progressive prizes yet to be won by players. The plan shall propose the use of video lottery machines such that a reasonable number of competitor manufacturers would be able to supply such machines. The specification of the kind, type and number of the video lottery machines in the business plans shall make clear whether or not the devices are video versus spinning reel; coin-in/coin-out versus coin-in/credit-out, etc. The plan shall also propose the generic games to be played on the devices (e.g., video poker, keno, bingo, blackjack, line-up games). The plan shall provide for payment for payout from video lottery machines such that the payouts shall not be less than 87 percent on an annual average basis, and shall otherwise comport with the requirements contained at 29 Del.C. §4805(a)(15).
3.8.1 Whether the applicant satisfies the requisites of 29 Del.C. §4805(b)(13) as that section pertains to the holding of either a horse racing meet or a harness racing meet.
3.11 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.
3.12 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.
5.1 The Director shall, pursuant to the procedures set forth in Ch. 69 of Title 29 of the Delaware Code, enter into contracts with licensed service companies as he or she shall determine to be appropriate, pursuant to which the service companies shall furnish by sale or lease to the State video lottery machines in such numbers and for such video games as the Director shall approve from time to time as necessary for the efficient and economical operation of the lottery, or convenience of the players, and in accordance with the agents' business plans as approved and amended by the Director. No more than 2,500 video lottery machines shall be located within the confines of an agent's premises unless the Director approves up to an additional 1,500 machines or other number approved by the Director as permitted by law.
6.36 Any such contract may be reviewed by the Director on the basis of the qualifications of the owners, officers, employees, and directors of any enterprise involved in the contract, which qualifications shall be reviewed according to the license standards enunciated in Title 29 Del.C. §4830 of the Delaware Code. If the Director disapproves such a contract or the owners, officers, employees, or directors of any enterprise involved therein, the Director shall serve a written notice of an intent to terminate the contract upon the parties to the contract. A person aggrieved by a decision of the Director to terminate a contract shall have an opportunity to file an appeal for reconsideration before the Lottery Commission pursuant to the procedures set forth in section 13.1 et.seq. The contract shall terminate within thirty (30) days of this notice unless an appeal for reconsideration is filed.
6.37 Comply with the applicable requirements contained in Title 3 Del.C. §10048 and §10148 and Title 28 Del.C. §427 of the Delaware Code. The agent shall file an annual report, due January 15th of each year, which provides sufficient information for the Director to determine whether the agent has satisfied the requirements of this provision.
7.17.2 If a video lottery agent wishes to obtain Promotional Tournament Terminals, the agent must submit a written request to the Lottery. Under 29 Del.C. §4820(b), video lottery agents may have a maximum of thirty (30) video lottery machines used exclusively for promotional tournaments in which players are not required to pay any fee to participate. The request must be on a Promotional Tournament Request Form which will be available from the Lottery. The request must contain: i) the number of promotional tournament terminals requested; ii) a description of the location where the tournament terminal will be stored or installed on the agent's premises; iii) a description of the agent's security plan for the tournament terminals when in storage and when operated for promotional tournaments.
"Career or professional offender" means any person whose behavior is pursued in an occupational manner or context for the purpose of economic gain, utilizing such methods as are deemed criminal violations of the public policy of this state.
"Cheat" means any person whose act or acts in any jurisdiction would constitute any offense under 11 Del.C. §1471, if prosecuted under Delaware law.
"Excluded person" means any person who has been placed upon the list by order of the Director or of a court of competent jurisdiction and who pursuant to 29 Del.C. §4835 and these regulations is required to be excluded or ejected from a video lottery facility.
"List or exclusion list" means a list of names of persons who, pursuant to 29 Del.C. §4835 and these regulations, are required to be excluded or ejected from video lottery facilities.
"Occupational manner or context" means the systematic planning, administration, management, or execution of an activity for financial gain.
7.18.4.2 Upon receipt of a Verified Petition that complies in form and substance with 29 Del.C. §4835 and these regulations, the Director of the State Lottery Office shall place the person so named on the exclusion list. Whenever the name and description of any person is placed on a list pursuant to this section, the Director shall serve notice of such fact to such person:
12.1 Any person who qualifies pursuant to the requirements contained in 29 Del.C. §4821 may elect to forego the opportunity to become a video lottery agent by notifying the Director and all other video lottery agents of such decision in writing.
13.23 A person aggrieved by a final decision or order of the Lottery Commission made after a hearing may obtain judicial review thereof by appeal to the Superior Court pursuant to §10142 of Title 29. The filing of an appeal shall not stay enforcement of the decision or order of the Lottery Commission unless a stay is obtained from the court upon application in accordance with the rules of court or from the Lottery Commission.
13.29 Whoever violates the Lottery Ch. 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:
13.29.1 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.
13.30 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.
13.31 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.
13.32 The Director shall enforce Ch. 48, 29 Delaware Code and any rules, regulations, or Administrative Orders issued thereunder.
13.33 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.
Key Employees:
Gaming Employees:
Rehires/Transfers
14.12 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:
Last Updated: December 31 1969 19:00:00.
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