Skip to Page Content
Delaware.gov  |  Text OnlyGovernor | General Assembly | Courts | Elected Officials | State Agencies
 Photo: Featured Delaware Photo
 
 
 Phone Numbers Mobile Help Size Print Email

Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsOctober 2018


Regulatory Flexibility Act Form

Authenticated PDF Version

10 DE Admin. Code 203
The Director of the Office of the State Lottery (Director) hereby gives notice of amendments to 10 DE Admin. Code 203 relating to the Video Lottery and Table Games Regulations.
The Director seeks to adopt substantive and procedural revisions to the State Lottery's existing regulations on video lottery and table games (10 DE Admin. Code 203) to clarify certain sections of the Delaware Code, to update the regulations to allow exemptions for certain ownership interests in video lottery agents, and to allow waivers for institutional investors. These revisions should not pose additional burdens or costs on individual licensees or small business licensees. The statutory authority for these revisions is 29 Del.C. §§4805(a)(14), (a)(31), and (b)(13). The Office of the State Lottery does not plan to hold a public hearing on the proposed revisions to the existing regulations. The revisions appear below. Members of the public may also request a copy of the revisions by visiting the Office of the State Lottery, 1575 McKee Road, Suite 102, Dover, Delaware 19904.
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.
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. The following words and terms, when used in this regulation, have the following meaning unless the context clearly indicates otherwise. Words importing the masculine gender include the feminine as well, except as otherwise clearly indicated by the context.
"agency Agency" or "lottery Lottery office" - means the Delaware State Lottery Office created pursuant to 29 Del.C. Ch. 48, subch. I.
"agent Agent" or "licensed Licensed agent" or "licensed Licensed video lottery agent" - means any person licensed by the Director of the agency to conduct table games and/or video lottery operations.
"applicant Applicant" - means any person applying for a license authorized under these regulations whether for itself or for another person that is owned either directly or indirectly by the person applying.
"authorized Authorized game" - means 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 Background investigation" - means the security, fitness and background checks conducted of an applicant.
"Beneficial owner" means a person that enjoys the benefits of owning an asset, property, or security, regardless of whose name is listed on the title of the asset, property or security, and includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares:
"business Business plan" - means a document containing information regarding table game and video lottery operations as may be required by the Director.
"cage Cage" and "cage area"- means 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.
"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.
"cash Cash equivalent" - means 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.
"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.
"chip Chip" - means 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 Count room" - means the room or rooms designated for the counting, wrapping, and recording of the agent's gaming receipts.
"credit Credit slip" - means the receipt issued from a video lottery machine for payment of credits by an agent.
"central Central system" - means the hardware, software and network components, which link and support all required video lottery machines and the central site.
"central 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 video lottery machines.
"central Central site" - means the location where the central video lottery communications' control systems shall be located.
"certification Certification" - means 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 Counter check" or "marker Marker" - means 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 Credit" - means the opportunity provided to a player to play a video game or redeem the credit for cash.
"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.
"drop Drop box" - means 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 Elector" - means any person who, under 29 Del.C. §4821, decides not to become an agent.
"Excluded person" means any person who has been placed upon the exclusion 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.
"Exclusion list" means the 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.
"front Front money" - means 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 Gaming" - means the dealing, operating, carrying on, maintaining or exposing for play any video lottery machine or table game in a licensed video lottery facility.
"gaming Gaming area" - A means a location in a video lottery facility where gaming activity is conducted at video lottery machines or table games.
"gaming Gaming employee" - means 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 Gaming equipment" - means any mechanical, electrical or electronic contrivance or machine or equipment used in connection with gaming including, without limitation:
"gaming Gaming excursion" - means 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 Gaming excursion provider" is a means any person that provides gaming excursion services to an agent.
"gaming Gaming room service employee" - A means 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 Gaming vendor" - means 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 that offers to the State of Delaware or to any agent any gaming equipment.
"gross Gross table game revenue" - means 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 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 Immediate family" - means a person's spouse and any children, whether by marriage, adoption or natural relationship.
"imprest Imprest" - means 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.
"Institutional investor" means any of the following:
"key Key employee" - means 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.
"Legal owner" means a person that has the opportunity, directly or indirectly, to profit or share in any profit derived from a transaction involving an interest in an asset, property, or security of a business entity or other type of legal entity.
"license License" - means 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 License application" - means the process by which a person requests licensing for participation in the table game and/or video lottery operations.
"licensee Licensee" - means any person authorized by the Director to participate in table game and/or video lottery operations.
"lottery Lottery" - means the public gaming system or games established and operated by the Delaware State Lottery Office.
"Lottery Commission" - means 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 Match play coupon" - means 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 Maximum wager limit" - means 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" - means a written machine entry authorization log stored inside the required for each video lottery machine.
"MICS" - means Minimum Internal Control Standards as adopted by the Director.
"net Net video lottery game proceeds" - means 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 Non-value chip- means 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 Non-gaming vendor" - means any vendor offering goods or services other than those considered to be a gaming vendor as defined above gaming equipment.
"Occupational manner or context" means the systematic planning, administration, management, or execution of an activity for financial gain.
"owner Owner" - means a person who owns, directly or indirectly, ten percent or more of an applicant or licensee.
"person Person" - means an individual, general partnership, limited partnership, corporation, limited liability company, trust, statutory or business trust, association, joint venture, or any other type of business entity or legal entity.
"pit Pit" - means 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 Player" - means an individual who plays a table game or video lottery machine.
"poker Poker revenue" - means 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 Premises" - means 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.
"Prohibited person" means both a self-excluded person and an excluded person as defined in these regulations and as described in 29 Del.C. §§4834 and 4835, respectively.
"rake Rake" - means 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 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} service companies as a means of acquiring bids for goods or services.
restricted Restricted gaming area- The means 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.
"Self-excluded person" means any person whose name is included, at his or her request, on the self-exclusion list maintained by the Director or Deputy Director.
"Self-exclusion list" means a list of names of persons who, pursuant to this subchapter, have voluntarily agreed to be excluded from all video lottery agent premises and to be prohibited from collecting any winnings or recovering any losses at all licensed video lottery agents.
"Service companies" means those persons who offer or provide goods or services as set forth in 29 Del.C. §4829(a)(1), (a)(2), or (a)(3), and which include gaming vendors, non-gaming vendors, and gaming excursion providers.
"Service company license" means the license required by the sections set forth in 29 Del.C. §4829(b) to (e).
"service technician Service Technician" - means any person who performs service, maintenance and repair operations on table games or video lottery machines.
"table Table game" - means 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 Table game equipment" - means 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 Table game win or loss" - means 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 Terminal" - means a gaming device linked to the central system as part of the video lottery operations.
"value Value chip" - means 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 Video game" - means 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 Video game event outcome" - means the result of a video game achieved by a player at a video lottery machine.
"video Video lottery" - means any lottery conducted in a video lottery facility with a video lottery machine or a network of linked video lottery machines with an aggregate progression prize or prizes (excluding keno, table games, and the Internet lottery).
"Video lottery agent license" means the authorization granted by the agency which permits an applicant to engage in defined table game and video lottery activities as an agent.
video Video lottery facility- means a building containing a gaming room or rooms.
"video Video lottery machine" - means 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.
3.1 Any applicant desiring required by Delaware law to obtain a video lottery agent license to act as an agent shall apply to the agency on forms specified by the Director from time to time. All persons who directly or indirectly are beneficial owners or legal owners of over 10% in the applicant or in any person that will act as the agent must submit the information listed in this Section 3.0 and meet the qualifications set forth in subsection 3.8. Application forms shall require the applicant to provide the following, without limitation:
3.1.1 The applicant's legal name, form of entity (e.g., general or limited partnership, corporation), the names, addresses, federal employer identification or social security or individual taxpayer identification numbers (if applicable) and dates of birth (if applicable) for each of its directors, officers, partners, owners, key employees, table game employees and video lottery operations employees.
3.1.3 With respect to any persons named in subparagraph subsection 3.1.1 that are not individuals, the names, addresses, social security or individual taxpayer identification or federal employer identification numbers, and birth dates of all individuals who are directors, officers, owners, partners, trustees, members, LLC managers, key employees, or gaming employees of any such persons.
3.1.4 The percentages of shares of stock, membership shares, or other forms of ownership, if any, held by each person named in subparagraph subsections 3.1.1 or subparagraph 3.1.3 above. The Director may, at his or her discretion, cause periodic reexamination of the percentage of ownership shares held by persons subject to such disclosures under these regulations.
3.1.5 The names of all persons principally involved in the original creation of the applicant's enterprise company, trust, or other type of business entity or association.
3.1.6 The names, if any, and addresses, social security or individual taxpayer identification numbers, and dates of birth of any person who is or was a director, officer, owner, partner, key employee, or gaming employee of the applicant who has been charged with or convicted of a felony, a crime involving gambling, or a crime of moral turpitude.
3.1.7 Certified copies of the applicant's charter, articles or certificate of incorporation, partnership agreement, certificate of formation, certificate of statutory (or business) trust, certificate of limited partnership, statement of partnership, and any other documents which constitute or explain the legal organization of the applicant plus a certificate of good standing that has been issued by the Secretary of State for the state in which the applicant was created and that is dated within 30 days of the date of the licensing application.
3.1.8 The name, address, social security or federal employer identification or individual taxpayer identification number and date of birth or date of creation of the record owner of the premises upon which the applicant’s business operations are located or the property upon which the premises are located or, if the applicant is not the sole owner of the premises or property, the information required by subparagraph subsection 3.1.1 above with respect to all persons having an ownership interest in the premises or property and copies of all agreements pursuant to which the applicant occupies the premises or property, as well as copies of all documents relating to the premises or property including, without limitation, all mortgages, deeds of trust, bonds, debentures, pledges of corporate stock and voting trust agreements, but excluding easements; utility agreements; subdivision and plot plans; and, for the period prior to three years before the filing of the application, deeds in the chain of title and satisfied mortgages.
3.1.9 The information required by subparagraph subsection 3.1.1 above as to any operator of any business conducted by such the applicant and any other contractor (which is not a publicly traded entity) utilized by such applicant which has received compensation from such applicant in excess of $50,000 $400,000 in any of the three (3) preceding fiscal years, together with a copy of all agreements between such the applicant and such operator or contractor and a statement of all compensation paid to such operator or contractor during said three-year period.
3.1.11 Copies of the applicant's State and Federal income tax returns for a period of three (3) fiscal or calendar years, as applicable.
3.1.13 The information required by subparagraph subsection 3.1.1 above as to the ten (10) largest unsecured creditors to which the applicant owes more than $25,000 for a period in excess of sixty (60) days and which are not publicly traded business entities, or accounting firms or legal firms of the applicant who are owed more than $25,000 by the applicant for a period in excess of sixty (60) days.
3.1.14 Disclosure regarding the applicant or any other persons identified in subparagraphs 3.1.1 or 3.1.3 who were rejected for any gambling or gaming license or permit in any other jurisdiction of all gaming or gambling licenses or permits in any other jurisdiction regardless of whether they are expired, pending, active, denied, suspended, or revoked for the applicant and any other persons identified in subsections 3.1.1 or 3.1.3.
3.1.15 Any and all other information as the Director may require to determine the competence, honesty and integrity of the applicant as required by Title 29 of the Delaware Code, Ch. 48, subch. I.
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).
3.7 As soon as the agency has determined that receives the application is complete, it shall forward same the application to the DGE. which As soon as practicable, DGE shall, as soon as practicable, undertake and complete the background investigation of the applicant, its officers, directors, partners, owners, key employees, and gaming employees and report its findings to the agency.
3.8.1 Whether the applicant satisfies the requisites of 29 Del.C. §4805(b)(13) as that section pertains to the holding of holds either a horse racing meet license pursuant to Title 3 or Title 28 of the Delaware Code or a harness racing meet license pursuant to Title 3 of the Delaware Code.
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.
3.14 To the extent provided by law, any non-publicly available information obtained pursuant to this Section 3 shall be held in confidence and not subject to the Delaware Freedom of Information Act, 29 Del.C. Ch. 100.
3.17 All applicants, licensees, registrants, or any other person who must be qualified pursuant to 29 Del.C. Ch. 48, subch. I shall have the continuing duty to provide any assistance or information required by the Director or the DGE, and to cooperate in any background check or investigation conducted by the DGE or in any hearing conducted by the Director. If an applicant, licensee, registrant or any other person who must be qualified refuses to provide information, evidence or testimony upon formal request by the Director or the DGE, the Director may deny or revoke the application, license, registration or qualification of such person as permitted by 29 Del.C. §4830(a).
4.1.1 A person expressing an interest to be selected as a gaming vendor pursuant to subsection 4.1 shall file an application for a service company license in accordance with these regulations.
4.1.2 A gaming vendor shall be licensed in accordance with the Delaware Code prior to conducting any business with the Lottery or video lottery agent office, provided, however, that upon a finding of good cause by the Director for each business transaction, the Director may permit an applicant for said license to conduct business transactions prior to the issuance of the license.
4.2.7 Require the applicant to disclose its legal name, form or entity (e.g., general or limited partnership, corporation, etc.), the names, addresses, social security or federal employment identification or federal individual taxpayer identification numbers and dates of birth or formation dates of its directors, officers, partners, owners, key employees and gaming employees.
4.2.9 Require the applicant to enclose copies of its audited financial statements for the preceding three (3) five (5) fiscal or calendar years, as applicable, and a copy of internally prepared financial statements for the current fiscal year or calendar year, as applicable, or at the close of the most recent fiscal quarter.
4.2.11 Require persons who are proposing to contract with the agency or a video lottery agent to provide either a copy of their contract proposal or contact information for the agent that can confirm interest in conducting business with the applicant.
Non-Gaming Vendors and Service Companies Providing Gaming Excursion Services Providers
4.3 A non-gaming vendor and service company providing gaming excursion services provider may transact business upon the filing of a vendor registration form (VRF) in accordance with this section subsection. A VRF shall only be required only for a non-gaming vendor who that transacts business in excess of $10,000 per year.
4.4 A video lottery An agent shall file a vendor registration form for each non-gaming vendor and service company providing gaming excursion services provider that is not required to file an application for a service company license. The vendor registration form shall, among other things, include:
4.4.2.2 Any officer, partner, or director who will be significantly involved in the conduct of the enterprise's non-gaming vendor's or gaming excursion provider's business with the agent;
4.4.2.3 If the enterprise non-gaming vendor or gaming excursion provider is a sole proprietorship, the name of the sole proprietor;
4.4.2.4 Each beneficial owner of more than five percent of the outstanding voting securities or other type of beneficial or legal ownership interests of the enterprise non-gaming vendor or gaming excursion provider, and the percentage of ownership; and
4.5 A non-gaming vendor and service company providing gaming excursion services provider that provides goods or services to a video lottery agent on a regular and continuing basis shall be licensed in accordance with the Delaware Code and these regulations.
4.6.1 The total dollar amount of transactions with a single video lottery agent is or will be equal to or greater than $400,000 within any twelve- twelve (12) month period; or
4.6.2 The total dollar amount of such transactions with all video lottery agents is or will be equal to or greater than $750,000 within any twelve- twelve (12) month period.
4.7 A service company providing gaming excursion services provider shall be deemed to be transacting regular and continuing business if:
4.7.1 The total dollar amount of transactions with a single video lottery agent is or will be equal to or greater than $150,000 within any twelve (12) month period; or
4.7.2 The total dollar amount of such transaction with all video lottery agents is or will be equal to or greater than $300,000 within any twelve (12) month period.
4.94.8 A non-gaming vendor or gaming excursion 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:
4.9.14.8.1 Give notice that the applicant will be required to submit to a background investigation, the cost of which must be borne by the applicant;
4.9.24.8.2 Require the applicant to supply specified information and documents related to the applicant's fitness and the background of its owners, partners, directors, officers, key employees, and gaming employees;
4.9.34.8.3 Require the applicant to disclose whether the applicant, or any of its present or former officers, directors, owners, partners, key employees, or gaming employees, is or has been the subject of an investigation in another jurisdiction, the nature of the investigation, and the outcome, if any, of such investigation;
4.9.44.8.4 ‘ Require the applicant to disclose its legal name, form or entity (e.g., general or limited partnership, corporation, etc.), the names, addresses, social security or federal employer identification or federal individual identification numbers and dates of birth of its directors, officers, partners, owners, key employees and gaming employees;
4.9.54.8.5 Require the applicant to disclose the names and addresses of individuals who have been authorized by the applicant to engage in dealings with the agency for purposes of representing the interests of the applicant; and
4.9.64.8.6 Require persons who are proposing to contract with the agency or a video lottery agent to provide either a copy of their contract proposal or contact information for the agent or the agency that can confirm interest in conducting business with the applicant.
4.104.9 Upon request, the service company applicant shall supplement the information provided in the application form as deemed necessary by the Director.
4.114.10 To the extent, if any, that the information in the application or the supplemental information provided by the service company applicant becomes inaccurate or incomplete, the applicant shall so notify the agency in writing as soon as it is aware that the information is inaccurate or incomplete, and shall at that time supply the information necessary to make the application or supplementary information accurate and complete.
4.124.11 The service company applicant shall cooperate fully with the agency and the DGE in any background investigation of the applicant.
4.134.12 The Subject the limitations in 29 Del.C. §4829(d) and (e), the service company applicant, upon request of the agency or the DGE, shall make any and all of its books and records available for inspection by the agency or the DGE.; Provided provided, however, that any information obtained pursuant to this subsection shall, to the extent provided by law, be held in confidence and not subject to the Delaware Freedom of Information Act.
4.144.13 As soon as the agency has determined that receives the service company application form is complete and that the applicant is otherwise qualified, it shall forward the same to the DGE, which shall conduct as soon as practicable a background investigation of the applicant, its officers, partners, owners, directors, key employees, and gaming employees, and report its findings to the agency.
4.154.14 Notwithstanding any other provision contained herein to the contrary, the Director may determine, upon review of the licensing standards of another state, that such standards are so comprehensive, thorough, and provide similar adequate safeguards, that the license of an a service company applicant in such other state precludes the necessity of a full application and background check. In such case, the Director shall require a limited application and background check, as determined by the Director in his sole discretion, as are necessary to assure that the service company applicant is fit for the license and does not pose a threat to the public interest of the State or to the reputation of or effective regulation of the video lottery.
4.164.15 In evaluating service company applications, the Director shall consider, in addition to the license criteria set forth in the Delaware Code, the following:
4.16.14.15.1 Whether the gaming vendor or non-gaming vendor applicant has demonstrated an ability to interface its technical capabilities with the selected central system and that it has the resources, experience and ability necessary to manufacture, deliver, install and service such number of video lottery machines as it may be required to supply under a contract with the agency.
4.174.16 A license shall not be issued to a service company that has any direct or indirect ownership or financial interest in an agent or the real or personal property of an agent.
4.184.17 An applicant for a service company license shall, prior to issuance of the license, post a bond or irrevocable letter of credit in a manner and in an amount established by the agency. Any such bond shall be issued by a surety company authorized to transact business in Delaware, and said company shall be approved by the State Insurance Commissioner as to solvency and responsibility.
4.194.18 Gaming vendors shall be licensed for an initial term of two (2) years and succeeding renewal terms of three (3) years. The initial term of a gaming vendor license shall expire and be renewable on the last day of the month on the second anniversary of the issuance date. The renewal term for a gaming vendor license shall expire and be renewable on the last day of the month on the third anniversary of the issuance date.
4.204.19 Non-gaming vendors and gaming excursion providers shall be licensed for an initial term of three (3) years and succeeding renewal terms of four (4) years. The initial term of a license for a non-gaming vendor license or a gaming excursion provider shall expire and be renewable on the last day of the month on the second third anniversary of the issuance date. The renewal term for a non-gaming vendor or a gaming excursion provider shall expire and be renewable on the last day of the month on the fourth anniversary of the issuance date.
4.214.20 At a minimum of sixty (60) days prior to expiration, each service company licensee shall submit a new and updated license application form.
4.224.21 A service company license shall remain valid pending the disposition of a license renewal application filed in accordance with the timelines set forth herein.
4.234.22 The fee for a service company license application and renewal application shall be $4,000 for a gaming vendor. In addition, a gaming vendor shall pay for all unusual or out of pocket expenses incurred by the Division of Gaming Enforcement or Lottery lottery office on matters directly related to the applicant or licensee.
4.244.23 The fee shall be $2,000 for a non-gaming vendor and gaming excursion provider application and renewal application.
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.
5.4 Each video lottery machine and table game equipment certified by the Director shall bear a unique serial number and shall conform to the exact specifications of the video lottery machine model or table game equipment model tested and certified by the Director.
5.55.6 Service companies shall hold harmless the agency, the State of Delaware, and their respective employees for any claims, loss, cost, damage, liability or expense, including, without limitation, legal expense arising out of any hardware or software malfunction resulting in the wrongful award or denial of credits or cash.
5.65.7 A service company shall not distribute a video lottery machine for placement in the state unless the video lottery machine has been approved by the agency. Only licensed service companies may apply for approval of a video lottery machine or associated equipment. The service company shall submit two copies of video lottery machine illustrations, schematics, block diagrams, circuit analysis, technical and operation manuals, program source code and object code, and any other information requested by the agency for purposes of analyzing and testing the video lottery machine or associated equipment.
5.75.8 The agency may require that two working models of a video lottery machine be transported to the location designated by the agency for testing, examination, and analysis. The service company shall pay all costs of testing, examination, analysis and transportation of such video lottery machine models, which may include the entire dismantling of the video lottery machine and tests which may result in damage or destruction to one or more electronic components of such video lottery machine model. The agency may require that the service company provide specialized equipment or the services of an independent technical expert in testing the terminal.
5.85.9 After each test has been completed, the agency shall provide the video lottery machine service company with a report that contains findings, conclusions, and pass/fail results. Prior to approving a particular video lottery machine model, the agency may require a trial period not in excess of sixty (60) days for a licensed agent to test the video lottery machine. During the trial period, the service company may not make any modifications to the video lottery machine model unless such modifications are approved by the agency.
5.95.10 The service company is responsible for the assembly and initial operation, in the manner approved and licensed by the agency, of all its video lottery machines and associated equipment. The service company may not change the assembly or operational functions of any of its video lottery machines approved for placement in Delaware unless a "request for modification to an existing video lottery machine prototype" is made to the agency, that request to contain all appropriate information relating to the type of change, reason for change, and all documentation required. The agency must approve such request prior to any changes being made, and the agency shall reserve the right to require second testing of video lottery machines after modifications have been made.
5.105.11 Each video lottery machine approved for placement in a licensed agent's place of business shall conform to the exact specifications of the video lottery machine prototype tested and approved by the agency. Any video lottery machine which does not so conform shall be disconnected from the Delaware video lottery system until compliance has been achieved. Each video lottery machine shall at all times operate and be placed in accordance with the provisions of these regulations.
5.115.12 The following duties are required of all licensed service companies, without limitation:
5.11.15.12.1 Manufacture terminals and associated equipment for placement in Delaware in accordance with the specifications of the agency.
5.11.25.12.2 Manufacture terminals and associated equipment to ensure timely delivery to licensed Delaware agents.
5.11.35.12.3 Maintain and provide an inventory of associated equipment to assure the timely repair and continued, approved operation and play of licensed video lottery machines acquired under the contract for placement in Delaware, provided further that said equipment will be maintained at a Delaware storage facility or warehouse.
5.11.45.12.4 Provide an appropriate number of service technicians with the appropriate technical knowledge and training to provide for the service and repair of its licensed video lottery machines and associated equipment so as to assure the continued, approved operation and play of those licensed video lottery machines acquired under contract for placement in Delaware.
5.11.55.12.5 Obtain any certification of compliance required under the applicable provisions of rules adopted by the Federal Communications Commission.
5.11.65.12.6 Promptly report to the agency any violation or any facts or circumstances that may result in a violation of State or Federal law and/or any rules or regulations adopted pursuant thereto.
5.11.75.12.7 Conduct video lottery operations in a manner that does not pose a threat to the public health, safety, or welfare of the citizens of Delaware, or reflect adversely on the security or integrity of the video lottery.
5.11.85.12.8 Hold the agency and the State of Delaware and its employees harmless from any and all claims that may be made against the agency, the State of Delaware, or the employees of either, arising from the service company's participation in or the operation of a video lottery game.
5.11.95.12.9 Defend and pay for the defense of all claims that may be made against the agency, the State of Delaware, or the employees of either, arising from the service company's participation in video lottery operations.
5.11.105.12.10 Maintain all required records.
5.11.115.12.11 Lease or sell only those licensed video lottery machines, validation units and associated equipment approved under these regulations.
5.11.125.12.12 It shall be the continuing duty of the service company licensee to provide the Director with an updated list of the names and addresses of all its employees who are involved in the daily operation of the video lottery machines. These employees will include individuals or their supervisors involved with (1) the repair or maintenance of the video lottery machines, or (2) positions that provide direct access to the video lottery machines. It shall be the continuing duty of the service company licensee to provide for the bonding of each of these individuals to ensure against financial loss resulting from wrongful acts on their parts.
5.11.135.12.13 It shall be the ongoing duty of the service company licensee to notify the Director of any change in officers, partners, directors, key employees, video 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 constitute "cause" for the suspension or revocation of the service company's license.
5.11.145.12.14 Supervise its employees and their activities to ensure compliance with these rules.
5.11.155.12.15 Promptly report to the Lottery lottery office any violation or any facts or circumstances that may result in a violation of State or Federal law and/or any rules or regulations pursuant thereto, excluding violations concerning motor vehicle laws.
5.11.165.12.16 Comply with such other requirements as shall be specified by the Director.
6.8 Ensure that table games or licensed video lottery machines are placed and remain as placed in the specific area of the premises as approved by the lottery office. The initial placement and any subsequent relocation of any table games or video lottery machine requires the prior written approval of the agency.
6.22 Assume responsibility for the proper and immediate redemption of all credits; however, no credits may be redeemed by a person under twenty-one (21) years of age, and no credits submitted for redemption beyond the one- one (1) year time limit will be redeemed. No credits or prizes may be redeemed by or for any person illegally on the agent's premises or persons who have requested that they be self-banned from the agent's premises.
6.34.1 The video lottery agent shall provide this information to the Lottery lottery office and the DGE on a weekly basis. Such persons will also be subject to a background investigation. The failure of any of the above-mentioned persons to satisfy a background investigation may constitute "cause" for the suspension or revocation of the video lottery agent's license, provided that an agent is first given a reasonable opportunity to remove or replace such person if the agent was unaware of such "cause" prior to the background investigation. The agent must supply the DGE with the completed License Application Form ("LAF") and fingerprint cards for each employee before the employee begins employment. Agent employees required to be licensed by the Delaware Lottery lottery laws, 29 Del.C. Ch. 48, and these regulations must have been successfully completed and been issued a valid license under Section 14.0 of these regulations prior to commencement of employment.
6.34.2 The agent must notify the agency and DGE of the transfer of any employee within the agent's organization on a weekly basis. The Lottery lottery office and the DGE will determine if a new or updated LAF must be submitted for the transferred employee.
6.34.3 The agent must notify the Lottery lottery office and the DGE of the termination of any employee and the reason for the termination on a weekly basis.
6.34.4 The agent must submit to the Lottery lottery office and the DGE on a weekly basis the names of all new employees who will work on the video lottery premises.
6.34.5 The agent must obtain advance approval before any temporary employee, consultant, or contractor will be permitted access to a restricted area. Any such temporary employee, consultant, or contractor The agent must submit a Request for Temporary Work Approval Form (TWA) to the DGE lottery office at least forty-eight (48) hours prior to the date of assignment. The TWAs must be accompanied by a copy of a valid photo identification for each temporary employee, consultant, or contractor. The lottery office will not approve a TWA for any individual who has been convicted of a felony within the past ten (10) years. The lottery office may approve a TWA for no longer than six (6) months per applicant.
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 subsection 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.
7.15 Table games or video lottery machines shall not be operated or available for play on Christmas, or after 4:00 a.m. on Easter. Self-Excluded Players
7.16.27.15.1 Request for Self-Exclusion; Form
7.16.2.17.15.1.1 Any person may have his or her name placed on the self-exclusion list by submitting a request for self-exclusion in the form and manner required by these Video Lottery Regulations regulations. Such self-exclusion form must include the following information concerning the person submitting the request for self-exclusion:
7.16.2.27.15.1.2 Any person requesting placement on the self-exclusion list shall submit in person, a completed request for self-exclusion form as required in this Regulation regulation. The request shall form must be delivered to the Delaware State Lottery Office, 1575 McKee Road, Dover, DE. Any person submitting a self-exclusion request form shall be required to present valid identification credentials containing his or her signature, and a photograph of the person, and a general physical description of the person. Any person requesting self-exclusion pursuant to these Regulations shall be required to have his or her photograph taken by the Lottery or DGE lottery office upon submission of the request form.
7.16.37.15.2 Self-exclusion list.
7.16.3.17.15.2.1 The Lottery lottery office shall maintain the official self-exclusion list and shall notify each video lottery agent of any addition to or deletion from the list by mailing a notice to each video lottery agent. The Lottery may provide lottery office shall make available copies of the official self-exclusion list to the DGE as well as the documents required by subsection 7.15.1.
7.16.3.27.15.2.2 Each video lottery agent shall maintain its own copy of the self-exclusion list. In addition, each video lottery and shall establish procedures to ensure that its copy of the self-exclusion list is updated and that all appropriate employees and agents of the video lottery agent are notified of any addition to or deletion from the list within forty eight (48) hours after the notice is mailed by the Lottery lottery office. The notice mailed by the Lottery lottery office shall include the name and date of birth of any person whose name shall be removed from self-exclusion list and the following information concerning any person whose name shall be added to the self-exclusion list: information regarding the excluded person that is listed in subsections 7.15.1.1.1 through 7.15.1.1.8 and a copy of the photograph that the lottery office or DGE took of the excluded person.
7.16.3.37.15.3 Information furnished to or obtained by the Lottery or DGE shall be deemed confidential and not be disclosed except in accordance with these regulations.
7.16.3.47.15.4 No video lottery agent or employee or agent thereof shall disclose the name of, or any information about, any person who has requested self-exclusion to anyone other than employees of the agent whose duties and functions require access to such information. Notwithstanding the foregoing, a video lottery agent may disclose the name of and information about a self-excluded person to appropriate employees of another video lottery agent for the purpose of alerting other video lottery agents that a self-excluded person has tried to play a video lottery machine or table game or obtain access to the premises of a video lottery agent.
7.16.47.15.5 Duties of Video Lottery Agent
7.16.4.17.15.5.1 Each video lottery agent shall establish procedures that are designed, to the greatest extent practicable, to:
7.16.4.1.17.15.5.1.1 Permit appropriate employees of the video lottery agent to identify a self-excluded person when present in a video lottery facility and, upon such identification, notify:
7.16.4.1.1.17.15.5.1.1.1 Those employees of the video lottery agent designated to monitor the presence of the self-excluded persons;
7.16.4.1.1.27.15.5.1.1.2 Designated representatives of the Lottery lottery office and the DGE.
7.16.4.1.27.15.5.1.2 Refuse access to the premises for any self-excluded person;
7.16.4.1.37.15.5.1.3 Deny check cashing privileges, player club membership, complimentary goods and services, and other similar privileges and benefits to any self-excluded person;
7.16.4.1.47.15.5.1.4 Ensure that self-excluded persons do not receive, from the video lottery agent any solicitations, targeted mailings, telemarketing promotions, player club materials or other promotional materials relating to video lottery or table game activities at the video lottery agent's premises;
7.16.4.27.15.5.2 Each video lottery agent shall submit to the Lottery lottery office and the DGE, a copy of its procedures established to comply with these self-exclusion regulations within thirty (30) 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 lottery office and the DGE at least three business days prior to the implementation. If the Lottery lottery office and the DGE do not object to said procedures or amendments thereto, such procedures or amendments shall be deemed to be approved.
7.16.57.15.6 Removal from Self-Exclusion List
7.16.5.17.15.6.1 Except for those persons choosing a lifetime self-exclusion, any self-excluded person may, upon the expiration of the period of self-exclusion requested pursuant to Video Lottery Regulation subsection 7.16, request removal of his or her name from the self-exclusion list by submitting, in person, a completed request for removal as required in subsection (2) 7.15.6.2 below. The request shall be delivered to the Lottery Office, 1575 McKee Road, Dover, DE. Any person submitting a request for removal from the list shall be required to present valid identification credentials containing his or her signature and a photograph and general physical description.
7.16.5.27.15.6.2 A request for removal from the self-exclusion list shall be in a form prescribed by the Lottery, which form shall include:
7.16.5.2.17.15.6.2.1 The identifying information specified in Video Lottery Regulation subsection 7.16;
7.16.5.2.27.15.6.2.2 The signature of the person requesting removal from the self-exclusion list indicating acknowledgment of the following statement:
"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 Delaware Lottery to permit all video lottery agents to reinstate my video lottery and table games privileges at licensed video lottery premises;"
7.16.5.2.37.15.6.2.3 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,
7.16.5.2.47.15.6.2.4 The signature of a Lottery or DGE employee authorized to accept such request, indicating that the signature of the person on the request for removal from the self-exclusion list appears to agree with that contained on his or her identification credentials and that any photograph and physical description appears to agree with his or her actual appearance.
7.16.5.37.15.6.3 The Lottery shall delete the name of the person requesting the removal from the self-exclusion list and notify each video lottery agent of such removal by mailing a notice to each video lottery agent.
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.
7.187.16 Involuntary Exclusion
"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.
7.18.27.16.1 Maintenance and distribution of excluded persons list
7.18.2.17.16.1.1 The Director shall maintain an updated master exclusion list of all persons to be excluded or ejected from all video lottery facilities pursuant to this section subsection and shall notify all licensed agents in writing of any additions to or deletions from the exclusion list. Each agent shall date and time stamp any such notice immediately upon receipt and shall acknowledge receipt thereof of the notice in writing. An updated master exclusion list of excluded persons shall be maintained by each licensed agent. The Lottery may provide lottery office shall make available a current copy of the official exclusion list to the DGE and upon request to any licensed agent.
7.18.2.27.16.1.2 The list shall be open to public inspection.
7.18.2.37.16.1.3 Each video lottery agent shall have the responsibility to distribute copies of the exclusion list to its employees. Any additions, deletions, or other updates to the exclusion list shall be distributed by each video lottery agent to its employees within two (2) business days of receipt of such updates from the Director.
7.18.37.16.2 Criteria for exclusion. The exclusion list may include any person who meets any of the following criteria:
7.18.3.17.16.2.1 Prior conviction of a crime which is a felony in this state or under the laws of the United States; or a crime involving moral turpitude; or a violation of the gaming laws of any state;
7.18.3.27.16.2.2 Violation or conspiracy to violate any of the provisions of 11 Del.C. §1471;
7.18.3.37.16.2.3 The failure to disclose an interest in a video lottery facility for which the person must obtain a license; or
7.18.3.47.16.2.4 Willful evasion of fees or taxes;
7.18.3.57.16.2.5 Notorious or unsavory reputation which would adversely affect public confidence and trust that the Delaware Lottery is free from criminal or corruptive elements; or
7.18.3.67.16.2.6 Written order of a governmental agency which authorizes the exclusion or ejection of the person from an establishment at which gaming or pari-mutuel wagering is conducted.
7.18.3.77.16.2.7 A career or professional offender whose presence in a video lottery facility would be inimical to the interest of the State of Delaware or of lottery operations therein;
7.18.3.87.16.2.8 An associate of a career or professional offender whose association is such that his or her presence in a video lottery facility would be inimical to the interest of the State of Delaware or of lottery operations therein;
7.18.3.97.16.2.9 Any person whose presence in a video lottery facility would be inimical to the interest of the State of Delaware or of lottery operations therein, including, but not limited to:
7.18.3.9.17.16.2.9.1 Cheats;
7.18.3.9.27.16.2.9.2 Persons whose privileges for licensure have been revoked;
7.18.3.9.37.16.2.9.3 Persons who pose a threat to the safety of the patrons or employees of a video lottery agent; and
7.18.3.9.47.16.2.9.4 Persons with a documented history of conduct involving the undue disruption of the video lottery and/or table games operations of video lottery agents.
7.18.3.107.16.2.10 For purposes of this subsection, a person's presence may be considered "inimical to the interest of the State of Delaware or of lottery operations therein" if known attributes of such person's character and background:
7.18.3.10.17.16.2.10.1 Are incompatible with the maintenance of public confidence and trust in the credibility, integrity and stability of lottery operations;
7.18.3.10.27.16.2.10.2 Could reasonably be expected to impair the public perception of, and confidence in, the Lottery or its regulatory processes; or
7.18.3.10.37.16.2.10.3 Would create or enhance a risk of the fact or appearance of unsuitable, unfair or illegal practices, methods or activities in the conduct of lottery operations or in the business or financial arrangements incidental thereto.
7.18.3.117.16.2.11 A finding of inimicality may be based upon the following:
7.18.3.11.17.16.2.11.1 The nature and notoriety of the attributes of character or background of the person;
7.18.3.11.27.16.2.11.2 The history and nature of the involvement of the person with lottery operations in Delaware or with licensed gaming in any other jurisdiction;
7.18.3.11.37.16.2.11.3 The nature and frequency of any contacts or associations of the person with any video lottery agents or with any employees thereof; or
7.18.3.11.47.16.2.11.4 Any other factor reasonably related to the maintenance of public confidence in the efficacy of the regulatory process and the integrity of lottery operations, video lottery agents and their employees.
7.18.3.127.16.2.12 In considering placement on the exclusion list, it shall be improper to discriminate on any basis prohibited by § 711(a) of Title 19.
7.18.47.16.3 Duties of the Director of the State Lottery Office, Lottery Commission, and the DGE
7.18.4.17.16.3.1 The DGE shall promptly investigate any individual who would appear to be an appropriate candidate for placement on the exclusion list. If, upon completion of an investigation, the Director of the Division of Gaming Enforcement DGE determines that the person so investigated satisfies the criteria for exclusion, the DGE shall file a Verified Petition verified petition with the Director of the State Lottery Office requesting as set forth in 29 Del.C. §4835(a) and request that the person be placed on the exclusion list. The Verified Petition verified petition shall state with particularity the reasons why the person satisfies the criteria for exclusion, and shall also contain all identifying information required in subsection 7.18.4.7 herein.
7.18.4.27.16.3.2 Upon receipt of a Verified Petition 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 the exclusion list pursuant to this section subsection, the Director shall serve notice of such fact to such person:
7.18.4.2.17.16.3.2.1 By personal service;
7.18.4.2.27.16.3.2.2 By certified mail to the last known address of such person; or
7.18.4.2.37.16.3.2.3 By publication daily for one (1) week in one of the principal newspapers published in the city of Dover and in one of the principal newspapers published in the city of Wilmington, Delaware.
7.18.4.37.16.3.3 Within thirty (30) days after service by mail or in person or sixty (60) days after the last publication, the person named may request a hearing before the Lottery Commission and show cause why he should have his name taken from such a list. Failure to request a hearing within the time allotted in this section precludes the person from having an administrative hearing, but in no way affects his right to petition for judicial review.
7.18.4.47.16.3.4 Upon receipt of a request for hearing, the Lottery Commission shall set a time and place for the hearing. This hearing must not be held later than thirty (30) days after receipt of the request for the hearing, unless the time of the hearing is changed by the Lottery Commission with the agreement of the DGE and the person demanding the hearing. At the hearing, the DGE shall have the affirmative obligation to establish a reasonable basis that the person named for exclusion satisfies the criteria for exclusion established by statute and these regulations. The Lottery Commission may admit any relevant evidence, except that it shall observe the rules of privilege recognized by law. The Lottery Commission may exclude any evidence which is irrelevant, unduly repetitious, or lacking a substantial probative effect. A record shall be made of all hearings and all witnesses shall be sworn and subject to cross examination.
7.18.4.57.16.3.5 If, upon completion of the hearing, the Lottery Commission determines that: (a) The DGE has not met its burden of proof, an order shall be entered requiring that the person's name be removed from the list of excluded persons and requiring the Director to so notify all video lottery agents of the person's removal from the list. (b) Placing the person on the exclusion list was proper, a written decision shall be rendered setting forth findings of fact and conclusions of law, and an order shall be entered to that effect, and the Director shall serve a copy of that written decision and order on the person so named. The order shall be served on all video lottery agents. Service of said order on the person whose name has been placed on the list of excluded persons shall be made in the same manner as provided in subsection 7.18.4.2. This written decision and order are subject to review in the Superior Court, which shall have exclusive jurisdiction over appeals of exclusion listings from the Lottery Commission.
7.18.4.67.16.3.7 The Director may revoke, limit, condition, or suspend the license of a video lottery agent, or impose a fine or other monetary penalty, if that video lottery agent knowingly fails to exclude or eject from its premises any excluded person placed on the list of persons to be excluded or ejected.
7.18.4.67.16.3.6 The Director may revoke, limit, condition, or suspend the license of a video lottery agent, or impose a fine or other monetary penalty, if that video lottery agent knowingly fails to exclude or eject from its premises any person placed on the list of persons to be excluded or ejected. This written decision and order are subject to review in the Superior Court, which shall have exclusive jurisdiction over appeals of exclusion listings from the Lottery Commission.
7.18.4.77.16.4 Information contained on the list of excluded persons
7.18.4.7.17.16.4.1 The following information and data shall be provided for each excluded person:
7.18.4.7.1.17.16.4.1.1 The full name and all aliases the person is believed to have used;
7.18.4.7.1.27.16.4.1.2 A description of the person's physical appearance, including height, weight, type of build, color of hair and eyes and any other physical characteristics which may assist in the identification of the person;
7.18.4.7.1.37.16.4.1.3 Date of birth;
7.18.4.7.1.47.16.4.1.4 The effective date of the order mandating the exclusion or ejection of the person named therein;
7.18.4.7.1.57.16.4.1.5 A photograph, if obtainable, and the date thereof;
7.18.4.7.1.67.16.4.1.6 Such other miscellaneous information as is deemed necessary by the Director for the enforcement of this regulation.
7.18.57.16.5 Duties of video lottery agents
7.18.5.17.16.5.1 A video lottery agent shall exclude or eject the following persons from its video lottery facility:
7.18.5.1.17.16.5.1.1 Any excluded person; or
7.18.5.1.27.16.5.1.2 Any person known to the agent to satisfy the criteria for exclusion set forth in these regulations.
7.18.5.27.16.5.2 If an excluded person enters, attempts to enter, or is in a video lottery facility and is recognized by the agent, the agent shall immediately notify the Lottery Commission and DGE of such fact. The agent shall also take all reasonable steps to initiate and maintain video surveillance coverage of the person while he/she is on the premises and securely retain any ensuing recordings until directed otherwise by the Lottery and/or DGE.
7.18.5.37.16.5.3 The Director may, upon request of any video lottery agent or any person who has been excluded or ejected from a video lottery facility pursuant to 7.18.5.1b above subsection 7.16.5.1, refer a matter to the DGE for investigation to determine whether such person meets the criteria for exclusion.
7.18.5.47.16.5.4 It shall be the continuing duty of a video lottery agent to inform the DGE in writing of the names of persons it believes are appropriate for placement on the exclusion list.
7.18.67.16.6 Petition to remove name from exclusion list
7.18.6.17.16.6.1 An excluded person may petition the Lottery Commission to request a hearing concerning his or her removal from the list at any time after five (5) years from the placement of such person on the list.
7.18.6.27.16.6.2 The petition shall be verified under oath by a notary public, with supporting affidavits, and shall state with particularity the grounds believed by the petitioner to constitute good cause for his removal from the list. Upon receipt of such petition, the Lottery Commission shall request the DGE to update its previous investigation of the excluded person, to include an examination of the claims set forth in the verified petition.
7.18.6.37.16.6.3 Upon the receipt of the results of the DGE investigation, the Lottery Commission may summarily deny the petition or may grant the petition and direct that a hearing be held. The Lottery Commission shall grant the petition only upon a finding that there is new evidence which is material and necessary, or that circumstances have changed since the placement of the excluded person on the list, and that there would be a reasonable likelihood that the Lottery Commission would alter its previous decision.
7.18.6.47.16.6.4 Any excluded person who is barred from requesting a hearing concerning his or her removal from the list by 7.18.6.1 above subsection 7.16.6.1 may petition the Lottery Commission for early consideration at any time; provided, however, that no excluded person may, within the five- (5) year period of exclusion, file more than one such petition. Such petition shall be verified, with supporting affidavits, and shall state with particularity any grounds upon which exclusion was based, and the facts and circumstances which warrant the relief sought. Upon receipt of such petition, the Lottery Commission shall request the DGE to update its previous investigation of the excluded person, including but not limited to an examination of the claims set forth in the verified petition. Upon the receipt of the results of the DGE investigation, the Lottery Commission may summarily deny the petition or may grant the petition and direct that a hearing be held. The Lottery Commission shall grant the petition only upon a finding that there exist extraordinary facts and circumstances warranting early consideration of the excluded person's request for removal from the list.
7.18.2 If an agent wishes to obtain Promotional Tournament Terminals, the agent must submit a written request to the lottery office. Under 29 Del.C. §4820(b), 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. Agents must send to the lottery office a request for a promotional tournament on a Promotional Tournament Request Form that the lottery office will make available. Any request to hold a promotional tournament must contain the following:
9.3 A MEAL book shall be kept within the main cabinet access area in for each video lottery machine. Every person, including agency personnel, who gains entry into any internal space of a video lottery machine shall sign the MEAL book, indicate the time and date of entry, and reason for entry in the MEAL. The MEAL books shall be retained by agents for a period of three years from the date of the last entry. The MEAL books shall be made available upon request for inspection by the agency.
10.1 No person shall ship or transport a video lottery machine into the State without first obtaining a written authorization for such transport from the Director or designee. Shipping requests should be submitted five (5) days prior to shipping, when possible. Transporting or shipping into the State means the starting point is outside the State and terminates in the State. Any person shipping a video lottery machine into Delaware shall provide the agency in writing at the time of shipment the following information on forms required by the agency:
10.3 Transporting of video lottery machines within the State of Delaware shall be accomplished by the service company or his designate, with the concurrence of the Director or designee. Shipping requests should be submitted five (5) days prior to shipment, when possible. Video lottery agents are not authorized to transport video lottery machines at any time without agency approval. Any person transporting a video lottery machine from one location to another within the State, shall notify the agency in writing prior to the transportation of said video lottery machine and shall provide the following information on forms required by the agency:
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.
13.1 Except for those situations when the Director may issue an emergency order under 29 Del.C. §4830(i), The the Director shall not deny, refuse to renew, or revoke any license for a key employee, a gaming employee, or a gaming room service employee unless it he has first afforded the applicant or licensee an opportunity for a hearing on an appeal for reconsideration before the Lottery Commission.
13.2 If the Director determines that an applicant or licensee for a key employee, a gaming employee, or a gaming room service employee has not satisfied or continued to satisfy the license requirements for the granting or retention of an application or license, a written notice of an intent to deny or revoke the application or license shall be served upon the applicant or licensee. The written notice shall include the reasons for the intended denial or revocation and shall advise the applicant or licensee of the right to request a hearing on an appeal for reconsideration before the Lottery Commission.
13.3 An For a key employee, a gaming employee, or a gaming room service employee, an applicant or licensee who has received a notice of intent to deny or revoke an application or an intent to revoke or suspend a license shall have an opportunity to request a hearing on an appeal for reconsideration before the Lottery Commission within thirty (30) days of receipt of the written notice.
13.4 If an applicant or licensee for a key employee, a gaming employee, or a gaming room service employee license desires a hearing on an appeal for reconsideration, it shall provide the Lottery Commission and Director with a written statement within ten (10) thirty (30) days of receipt of the notice which of the intent to deny the application or intent to revoke or suspend the license. The statement shall contains contain the following:
13.4.1 A clear Clear and concise statement indicating the reasons for appealing the decision of the Director;
13.4.2 A signed and sworn verification by the applicant or licensee that the information provided is true and accurate; and
13.4.3 The signature of the applicant or licensee as witnessed by and signed by a notary public.
13.5 If an applicant or licensee for a key employee, a gaming employee, or a gaming room service employee license fails to timely file an appeal for reconsideration or withdraws the appeal for reconsideration, the Director shall determine that there is a waiver of the right to a hearing and an admission of all allegations of fact set forth in the Director's notice of intent to deny or revoke a license. The Director shall take final action, including denying or revoking a the key employee or gaming employee license.
13.6 The appeal for reconsideration shall be heard by the Lottery Commission, provided, however, that the Chairperson of the Lottery Commission may, in his discretion, designate a member of the Lottery Commission, or other qualified person other than an employee of the Lottery Commission, to serve as a hearing officer in a particular matter. The hearing shall be conducted within thirty (30) days of the receipt of the letter of appeal unless extenuating circumstances require a longer period.
13.8 Notice of the hearing shall be given by the Lottery Commission to the parties at least twenty (20) days before the date it is to be held.
13.12 The applicant or licensee may appear individually, or by legal counsel, or by any other duly authorized representative. In the absence of the applicant or licensee, written evidence of a representative's legal counsel’s authority shall be presented to the Lottery Commission in a form satisfactory to the Lottery Commission.
13.13 The applicant or licensee, or his legal counsel or duly authorized representative may, with the approval of the Lottery Commission, waive the hearing and agree to submit the case for decision on the record, with or without a written brief. Such a waiver or agreement shall be in writing and placed in the record.
13.16 A court reported record shall be made of all hearings, and all witnesses shall be sworn and subject to cross examination.
13.17 An applicant or licensee for a key employee, a gaming employee, or a gaming room service employee shall have the affirmative obligation to establish by clear and convincing evidence that the Director's determination was in error under the criteria for licensing established by 29 Del.C. §4830.
13.18 An applicant or licensee for a key employee, a gaming employee, or a gaming room service employee shall have the affirmative obligation to establish by clear and convincing evidence rehabilitation in accordance with 29 Del.C. §4830(d).
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.
13.24 An applicant or licensee for a key employee or gaming employee license whose license has been revoked or whose application for a license has been denied shall be prohibited from reapplying for any license for a period of five (5) years from the date of the order denying or revoking the license.
13.28 Any money or thing of value which has been obtained by any person prohibited from gaming activity in a video lottery facility shall be subject to an order of forfeiture by the Director, following notice to the prohibited person and an opportunity for the prohibited person to file an appeal for reconsideration by the Lottery Commission in accordance with the procedures set forth in 13.1 et.seq.
13.29 Whoever violates the Lottery Ch. 29 Del.C. Ch. 48, or any Lottery 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:
13.29.113.28.1 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.
13.29.213.28.2 If the violation is continuing or if there is a substantial likelihood that it will reoccur, the Director may also seek a temporary restraining order, preliminary injunction, or permanent injunction in the Court of Chancery, which shall have jurisdiction of an action for such relief.
13.3013.29 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.
13.3113.30 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.
13.3213.31 The Director shall enforce Ch. 48, 29 Delaware Code and any rules, regulations, or Administrative Orders issued thereunder.
13.3313.32 Any interest, costs or expenses collected by the Lottery lottery office under actions instituted by 29 Del.C. §4823 or these regulations shall be appropriated to the State Lottery Office lottery office to carry out the purposes of 29 Del.C. Ch. 48.
13.33.1 If the Director denies a license to any applicant required by Delaware law to obtain a video lottery agent license, or suspends or revokes an agent's video lottery agent license for cause as set forth in 29 Del.C. §4805(c) or based on a change in ownership as set forth in 29 Del.C. §4805(b)(13) and (c), the applicant or licensee may appeal within thirty (30) days of receiving the Director's written notice of denial, suspension, or revocation. Any appeal must be in writing and sent to the Delaware Secretary of Finance with a copy to the Director.
14.1.2 An employee license application shall not be accepted for processing unless accompanied by a letter indicating an offer of employment from a video lottery agent or licensed service company. The completed application form shall be reviewed and witnessed by the applicant's human resources personnel or designee. The lottery office will not accept an employee license application until the lottery office receives written confirmation that a video lottery agent or a licensed service company has extended an offer of employment to an applicant that is applying for a license for the first time. The lottery office will not accept a renewal employee license application until the lottery office receives written confirmation that a video lottery agent or a licensed service company intends to continue employing the applicant.
Key Employees:
Gaming Employees:
14.4 Each applicant for a gaming room service employee shall file a Delaware gaming Gaming Room Service Employee application as prescribed by the Director. This application form shall, among other things, require the applicant to provide:
Rehires/Transfers
14.5.1 Applicants will be required to follow the procedures in Regulations subsections 14.1-14.5 if twelve (12) months or more have passed since the end of the applicant's former employment.
14.5.2 Applicants will be required to follow the procedures in Regulations subsections 14.1-14.5, except for the fingerprinting requirements, if less than twelve (12) months but more than thirty (30) days have passed since the end of the applicant's prior employment.
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:
16.2 In addition to satisfying the requirements of Section subsection 16.1, each agent's organizational structure shall include the following departments and supervisory positions as required by the Director. Each of these departments and supervisors shall be required to cooperate with, yet perform independently of all other departments and supervisors.
20.6.1 Permanently imprinted or impressed thereon a A number corresponding to a permanent number on the gaming table and marked to indicate game, and table number and day, except that emergency drop boxes may be maintained without such number or marking provided the word "emergency" is permanently imprinted or impressed thereon and, when put into use, is temporarily marked with the number of the gaming table and identification of the game and day;
32.17.1 No person Persons shall be permitted to wager a value chip with a match play coupon at any roulette table at which match play coupons are permitted to be used; and
36.1.3 Train licensed personnel in reportable currency transactions and identifying unusual or suspicious transactions;
Last Updated: December 31 1969 19:00:00.
site map   |   about this site   |    contact us   |    translate   |    delaware.gov