10 DE Admin. Code 203. Video Lottery and Table Game Regulations

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Delaware Administrative Code › Title 10 Charitable Gaming, Lottery, and Fantasy Sports › 200 Office of the State Lottery › 10 DE Admin. Code 203

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DEPARTMENT OF FINANCE

Office of the State Lottery

200 Office of the State Lottery

203 Video Lottery and Table Game Regulations

1.0 Introduction: Role of State Lottery Office, Minimum Internal Control Standards

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.

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

1.2.1 A minimum uniform standard of accountancy methods, procedures and forms; a uniform code of accounts and accounting classifications; and such other standard operating procedures as may be necessary to assure consistency, comparability, and effective disclosure of all financial information, including calculations of percentages of profit by games, tables, and gaming devices;

1.2.2 The organizational structure of the agent and the required departments necessary to assure that management is held accountable within its area of responsibility and to provide adequate segregation so that incompatible functions do not permit employees to be in a position both to commit and conceal an error or to perpetrate a fraud in their normal course of duties;

1.2.3 Formulas and required reports covering the calculation of hold percentages; revenue and drop; expense and overhead

ure that management is held accountable within its area of responsibility and to provide adequate segregation so that incompatible functions do not permit employees to be in a position both to commit and conceal an error or to perpetrate a fraud in their normal course of duties;

1.2.3 Formulas and required reports covering the calculation of hold percentages; revenue and drop; expense and overhead schedules; complimentary services; cash, counter check and cash equivalent transactions;

1.2.4 Adequate safeguards within the cashiers’ cage for the receipt, storage, inventory and disbursal of chips, cash, counter checks and other cash equivalents used in gaming; the cashing of checks; the redemption of chips and other cash equivalents used in gaming; and the recording of transactions pertaining to gaming;

1.2.5 A system for the collection and security of moneys at the table games, the transfer and recordation of chips between the table games and the cashiers’ cage, and the transfer of money from the table games to the counting process;

1.2.6 The process and equipment to assure security for the counting and recordation of revenue;

1.2.7 Security, storage and recordation of chips, cards, dice, cash, and other sensitive equipment utilized in gaming;

1.2.8 Standards governing the utilization of the surveillance and security departments within the video lottery facility;

1.2.9 Rules governing the conduct of authorized games and the responsibility of video lottery facility personnel in respect thereto;

1.2.10 The orderly shutdown of gaming operations in the event that a state of emergency is declared, including without limitation, the securing of all keys and gaming assets;

1.2.11 Physical and systems controls for information technology;

1.2.12 Currency Transaction and Suspicious Activity Reporting in accordance with the Bank Secrecy Act

ty of video lottery facility personnel in respect thereto;

1.2.10 The orderly shutdown of gaming operations in the event that a state of emergency is declared, including without limitation, the securing of all keys and gaming assets;

1.2.11 Physical and systems controls for information technology;

1.2.12 Currency Transaction and Suspicious Activity Reporting in accordance with the Bank Secrecy Act.

2.0 Definitions

The following words and terms, when used in this regulation, have the following meaning:

" Agency " or " lottery office " means the Delaware State Lottery Office created pursuant to 29 Del.C. Ch. 48, subch. I.

" Agent " or " licensed agent " or " licensed video lottery agent " means any person licensed by the Director of the agency to conduct table games or video lottery operations, or both.

" 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 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 1 or more of the games authorized herein if the tournaments are authorized by the Director.

" Background investigation " means the security, fitness and background checks conducted of an applicant

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 1 or more of the games authorized herein if the tournaments are authorized by the Director.

" Background investigation " means the security, fitness and background checks conducted of an applicant.

" 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:

a. voting power in a business entity or other type of legal entity, which includes the power to vote, or to direct the voting of, such interest held in the business entity or other type of legal entity; and

b. investment power in a business entity or other type of legal entity. which includes the power to dispose of, or to direct the disposition of, such interest held in the business entity or other type of legal entity.

" Business plan " means a document containing information regarding table game and video lottery operations as may be required by the Director.

" Cage " 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

or.

" Cage " 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.

" 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.

" Central site " means the location where the central video lottery communications' control systems shall be located.

" Central system " means the hardware, software and network components, which link and support all required video lottery machines and the central site.

" Central system provider " means a person with whom the agency has contracted for the purpose of providing and maintaining a central communication system and the related management facilities with respect to operating and servicing the video lottery machines.

" 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.

" 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 " 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

rtification to relate to either hardware or software.

" 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 " 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 room " means the room or rooms designated for the counting, wrapping, and recording of the agent's gaming receipts.

" Counter check " or " 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 " means the opportunity provided to a player to play a video game or redeem the credit for cash.

" Credit slip " means the receipt issued from a video lottery machine for payment of credits by an agent.

" Crime of moral turpitude " means a misdemeanor or felony crime punishable by incarceration or a court fine in any amount and that involves moral turpitude or is in itself immoral or wrong including, but not limited to, the following: Murder, manslaughter, assault, sexual assault, sexual abuse of a minor, unlawful exploitation of a minor, robbery, extortion, coercion, kidnapping, incest, arson, burglary, theft, forgery, criminal possession of a forgery device, offering a false instrument for recording, scheme to defraud, falsifying business records, commercial bribe receiving, commercial bribery, bribery, receiving a bribe, perjury, perjury by inconsistent statements, endangering the welfare of a minor, escape, promoting contraband, interference with official proceedings, receiving a bribe by a witness or a juror, jury tampering, misconduct by a juror, tampering with physical evidence, hindering prosecution, terroristic threatening, riot, criminal possession of explosives, unlawful furnishing of explosives, sex trafficking,

perjury by inconsistent statements, endangering the welfare of a minor, escape, promoting contraband, interference with official proceedings, receiving a bribe by a witness or a juror, jury tampering, misconduct by a juror, tampering with physical evidence, hindering prosecution, terroristic threatening, riot, criminal possession of explosives, unlawful furnishing of explosives, sex trafficking, criminal mischief, misconduct involving a controlled substance or an imitation controlled substance, permitting an escape, promoting gambling, possession of gambling records, distribution of child pornography, and possession of child pornography. A crime of moral turpitude also includes the following crimes listed in the Delaware Code (or similar crimes under the laws of other jurisdictions); 11 Del.C. §763 (sexual harassment); 11 Del.C. §764 (indecent exposure in the second degree); 11 Del.C. §765 (indecent exposure in the first degree); 11 Del.C. §766 (incest); 11 Del.C. §767 (unlawful sexual contact in the third degree); 11 Del.C. §781 (unlawful imprisonment in the second degree); 11 Del.C. §840 (shoplifting); 11 Del.C. §861 (forgery); 11 Del.C. §871 (falsifying business records); 11 Del.C. §881 (bribery); 11 Del.C. §907 (criminal impersonation); 11 Del.C. §1101 (abandonment of a child); 11 Del.C. §1102 (endangering the welfare of a child); 11 Del.C. §1105 (crime against a vulnerable adult); 11 Del.C. §1106 (unlawfully dealing with a child); 11 Del.C. §1107 (endangering children); 11 Del.C. §1245 (falsely reporting an incident); 11 Del.C. §1341 (lewdness); 11 Del.C. §1342 (prostitution); 11 Del.C. §1343 (patronizing a prostitute); 11 Del.C. §1355 (permitting prostitution); 16 Del.C. §1136 (violations in Health and Safety, Nursing Facilities and Similar Facilities); and 31 Del.C. §3913 (violations in Welfare, Adult Protective Services).

" DGE " means the Division of Gaming Enforcement of the Department of Safety and Homeland Security, as authorized by the Delaware Code

ostitution); 11 Del.C. §1343 (patronizing a prostitute); 11 Del.C. §1355 (permitting prostitution); 16 Del.C. §1136 (violations in Health and Safety, Nursing Facilities and Similar Facilities); and 31 Del.C. §3913 (violations in Welfare, Adult Protective Services).

" 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 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 " 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 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 " 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 area " means a location in a video lottery facility where gaming activity is conducted at video lottery machines or table games

edit to guarantee payment of a marker issued or to establish a line of credit for gaming purposes.

" 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 area " means a location in a video lottery facility where gaming activity is conducted at video lottery machines or table games.

" 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 equipment " means any mechanical, electrical or electronic contrivance or machine or equipment used in connection with gaming including, without limitation:

a. roulette wheels and balls

b. big six wheels

c. cards

d. dice

e. value and non-value chips

f. gaming plaques

g. match play coupons

h. card dealing shoes and shuffling devices

i. drop boxes

j. pai gow tiles and shakers

k. table game layouts

equipment " means any mechanical, electrical or electronic contrivance or machine or equipment used in connection with gaming including, without limitation:

a. roulette wheels and balls

b. big six wheels

c. cards

d. dice

e. value and non-value chips

f. gaming plaques

g. match play coupons

h. card dealing shoes and shuffling devices

i. drop boxes

j. pai gow tiles and shakers

k. table game layouts

l. other devices, machines, equipment, items or articles as determined by the Director

" Gaming excursion " means an arrangement, the purpose of which is to induce any person, selected or approved for participation in the arrangement on the basis of the person’s ability to satisfy a financial qualification obligation related to the person’s ability or willingness to gamble or on any other basis related to the person’s 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 of the agent.

" Gaming excursion provider " means any person that provides gaming excursion services to an agent.

" Gaming room service employee " 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 vendor " means any vendor that offers to the State of Delaware or to any agent any gaming equipment.

" 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

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 officer " means a member of the Lottery Commission or other qualified person designated by the Chairperson of the Lottery Commission to conduct a hearing on any matter within the jurisdiction of the Lottery.

" Immediate family " means a person's spouse and any children, whether by marriage, adoption or natural relationship.

" 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:

a. A retirement fund administered by a public agency for the exclusive benefit of federal, state, or local public employees;

b. An investment company registered under the Investment Company Act of 1940 (15 U.S.C. §80a-1 et seq.);

c. A collective investment trust organized by banks under Part Nine of the Rules of the Comptroller of the Currency;

d. A closed end investment trust;

e. A chartered or licensed life insurance company or property and casualty insurance company;

f. A banking or other chartered or licensed lending institution;

g. An investment advisor registered under The Investment Advisors Act of 1940 (15 U.S.C. §80b-1 et seq.); and

tment trust organized by banks under Part Nine of the Rules of the Comptroller of the Currency;

d. A closed end investment trust;

e. A chartered or licensed life insurance company or property and casualty insurance company;

f. A banking or other chartered or licensed lending institution;

g. An investment advisor registered under The Investment Advisors Act of 1940 (15 U.S.C. §80b-1 et seq.); and

h. Any other persons whom the Director may reasonably determine to qualify as an institutional investor for reasons consistent with the purposes of Title 29, ch. 48, subch. I.

" 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, count, 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.

" 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

ery agent in collective bargaining, grievance representation, labor disputes, salaries, wages, rates of pay, hours of employment or conditions of work.

" License " means the authorization granted by the agency which permits an applicant to engage in defined table game or video lottery activities, or both as an agent or service company; and authorization granted by the agency which permits an applicant to perform employment duties as a key employee or gaming employee.

" License application " means the process by which a person requests licensing for participation in the table game or video lottery operations, or both.

" Licensee " means any person authorized by the Director to participate in table game or video lottery operations, or both.

" 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 .

" 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 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 machine entry authorization log required for each video lottery machine

tron receives as the result of a winning wager made with the gaming chips and their accompanying promotional item.

" 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 machine entry authorization log required for each video lottery machine.

" MICS " means Minimum Internal Control Standards as adopted by the Director.

" 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 or agents 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-gaming vendor " means any vendor offering goods or services other than gaming equipment.

" 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.

" Occupational manner or context " means the systematic planning, administration, management, or execution of an activity for financial gain.

" Owner " means a person who owns, directly or indirectly, 10% or more of an applicant or licensee.

" 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

stration, management, or execution of an activity for financial gain.

" Owner " means a person who owns, directly or indirectly, 10% or more of an applicant or licensee.

" 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 " means an individual who plays a table game or video lottery machine.

" 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 " 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 " 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

he 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 " 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 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 gaming area " 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 their 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 " means any person who performs service, maintenance and repair operations on table games or video lottery machines

ervices 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 " means any person who performs service, maintenance and repair operations on table games or video lottery machines.

" 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 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 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 " means a gaming device linked to the central system as part of the video lottery operations.

" 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

nts recorded on fills removed from a drop box. Match play coupons shall not be included, subject to limitations imposed by the Director.

" Terminal " means a gaming device linked to the central system as part of the video lottery operations.

" 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 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 game event outcome " means the result of a video game achieved by a player at a video lottery machine.

" 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 lottery facility " means a building containing a gaming room or rooms.

" 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 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 the use of an electronic credit system making the deposit of bills, coins, or tokens unnecessary.

22 DE Reg. 500 (12/01/18)

29 DE Reg. 699 (02/01/26)

3.0 Licensing of Agents; Business Plans

3.1 Any applicant required by Delaware law to obtain a video lottery agent license shall apply to the agency on forms specified by the Director from time to time

nsidered a video lottery machine notwithstanding the use of an electronic credit system making the deposit of bills, coins, or tokens unnecessary.

22 DE Reg. 500 (12/01/18)

29 DE Reg. 699 (02/01/26)

3.0 Licensing of Agents; Business Plans

3.1 Any applicant required by Delaware law to obtain a video lottery agent license 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.

3.1.2 A description of the applicant's organizational structure.

3.1.3 With respect to any persons named in 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 subsections 3.1.1 or 3.1.3 above. At the Director’s discretion, periodic reexamination of the percentage of ownership shares held by persons subject to such disclosures under these regulations

, members, LLC managers, key employees, or gaming employees of any such persons.

3.1.5 The names of all persons principally involved in the original creation of the applicant's 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, 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

ficate 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 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 3 years before the filing of the application, deeds in the chain of title and satisfied mortgages.

3.1.9 The information required by subsection 3.1.1 above as to any operator of any business conducted by 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 $400,000 in any of the 3 preceding fiscal years, together with a copy of all agreements between the applicant and such operator or contractor and a statement of all compensation paid to such operator or contractor during said 3-year period

ant 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 $400,000 in any of the 3 preceding fiscal years, together with a copy of all agreements between the applicant and such operator or contractor and a statement of all compensation paid to such operator or contractor during said 3-year period.

3.1.10 Copies of the applicant's audited financial statements for the preceding 3 fiscal years and a copy of internally prepared financial statements for the current fiscal year as of the close of the most recent fiscal quarter.

3.1.11 Copies of the applicant's State and Federal income tax returns for a period of 3 fiscal or calendar years, as applicable.

3.1.12 Copies of the declaration pages of all insurance policies insuring the applicant or the premises upon which the applicant operates its gaming operations.

3.1.13 The information required by subsection 3.1.1 above as to the 10 largest unsecured creditors to which the applicant owes more than $25,000 for a period in excess of 60 days and which are not publicly traded business entities, accounting firms or legal firms of the applicant.

3.1.14 Disclosure 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 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.

ormation 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.

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

3.3 Upon request of the agency, the applicant shall supplement the information provided in the application form as deemed necessary by the agency. The applicant shall furnish all information, including financial data and documents, certifications, consents, waivers, individual history forms, tax returns, cancelled checks or other materials required or requested by the agency for purposes of determining the qualifications of the applicant or agent.

3.4 To the extent, if any, that the information supplied in the application or otherwise supplied by the applicant or on the applicant's behalf, 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 correct the inaccuracy or incompleteness of the information.

3.5 The applicant shall cooperate fully with the agency and the Division of Gaming Enforcement (DGE) with respect to its background investigation of the applicant. Among other things, the applicant, upon request, shall make available any and all of its books or records for inspection by the agency or the DGE.

3.6 The applicant shall submit with the application a proposed business plan for the conduct of table games or video lottery operations, or both

and the Division of Gaming Enforcement (DGE) with respect to its background investigation of the applicant. Among other things, the applicant, upon request, shall make available any and all of its books or records for inspection by the agency or the DGE.

3.6 The applicant shall submit with the application a proposed business plan for the conduct of table games or video lottery operations, or both. 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 or manufacturers 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)

rers 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% on an annual average basis, and shall otherwise comport with the requirements contained at 29 Del.C. §4805(a) (15).

3.6.1 The business plan shall also include a description of its initial system of internal procedures and administrative and accounting controls for gaming operations accompanied by a certification by its chief financial officer or equivalent that the submitted procedures provide adequate and effective controls, establish a consistent overall system of internal procedures and administrative and accounting controls, and conform to generally accepted accounting principles, except an additional standard may be required by the Director for gross revenue tax purposes.

3.6.2 Each initial internal control submission shall contain a narrative description of the internal control system to be utilized by the casino and address all areas of the MICS as required by the Director, including but not limited to those set forth in subsections 1.2.1 through 1.2.12 herein.

3.7 As soon as the agency receives the application, it shall forward the application to the DGE. As soon as practicable, DGE shall 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

ing but not limited to those set forth in subsections 1.2.1 through 1.2.12 herein.

3.8 The Director shall weigh the following factors when evaluating the application:

3.8.1 Whether the applicant holds at least 1 of the following: 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.

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

3.8.3 The extent to which, if any, the applicant would be subject to the control or influence of its activities by any person having a financial interest pertaining to the applicant, including a mortgage or other lien against property of the applicant or, who in the opinion of the agency, might otherwise influence its activities. In such case the Director shall consider the character, honesty and integrity of whomever has the ability to control or influence the activities of the applicant.

3.8.4 The degree to which the applicant has demonstrated its ability to finance the proposed table games and video lottery operations, as well as the source of such financing.

3.8.5 The degree to which the applicant has supplied accurate and complete information pursuant to the requirements of these regulations.

3.8.6 Whether the applicant holds a license as a service company

ies of the applicant.

3.8.4 The degree to which the applicant has demonstrated its ability to finance the proposed table games and video lottery operations, as well as the source of such financing.

3.8.5 The degree to which the applicant has supplied accurate and complete information pursuant to the requirements of these regulations.

3.8.6 Whether the applicant holds a license as a service company. An agent license shall not be granted to an applicant who is an owner of a service company.

3.8.7 Whether the applicant has demonstrated the business ability and experience necessary to satisfactorily conduct the table games or video lottery operations, or both.

3.8.8 The extent to which the applicant has cooperated with the agency and the DGE in connection with the background investigation.

3.8.9 Whether the person, or any of its officers, directors, partners, owners, key employees, or gaming employees are known to associate with persons of nefarious backgrounds or disreputable character such that the association could adversely affect the general credibility, security, integrity, honesty, fairness or reputation of the lottery.

3.8.10 With respect to any past conduct which may adversely reflect upon the applicant, the nature of the conduct, the time that has passed since the conduct, the frequency of the conduct and any extenuating circumstances that affect or reduce the impact of the conduct or otherwise reflect upon the applicant's fitness for the license.

3.8.11 The extent, if any, to which the applicant has failed to comply with any applicable tax laws of the federal, state or local governments.

3.8.12 The adequacy of the applicant's business plan, as it reflects on the applicant's competency or capability to conduct table games or video lottery operations in conformance with the requirements of these regulations

plicant's fitness for the license.

3.8.11 The extent, if any, to which the applicant has failed to comply with any applicable tax laws of the federal, state or local governments.

3.8.13 Any other information before the Director, including substantially similar background investigations performed by other agencies or jurisdictions, which relates to the applicant's competency, financial capability, honesty, integrity, reputation, habits, or associations.

3.9 A license shall be issued to the applicant if the Director is satisfied, upon consideration of the factors specified in subsection 3.8, that the applicant would be a fit agent and not pose a threat to the public interest, the reputation of the lottery, or the effective control of the lottery.

3.10 The approval of any license or the renewal of a license to an agent is subject to the following conditions:

3.10.1 Operation pursuant to a license issued under these regulations shall signify agreement by the agent to abide by all provisions of the regulations, including those contained in this section.

3.10.2 The agent shall at all times make its premises available for inspection by authorized representatives of the agency or the DGE personnel, on a 24-hour unannounced basis. The Lottery and the DGE shall be authorized entry to the premises and access to any table game or video lottery machines or records of the agent without acquiring a warrant.

3.10.3 The agent and any entity owned by the agent in which the agent has a controlling ownership interest shall consent in writing to the examination of all accounts, bank accounts, and records under the control of the agent or the owned entity; and, upon request of the agency, shall authorize all third parties in possession or control of the said documents to allow the agency to examine such documents

The agent and any entity owned by the agent in which the agent has a controlling ownership interest shall consent in writing to the examination of all accounts, bank accounts, and records under the control of the agent or the owned entity; and, upon request of the agency, shall authorize all third parties in possession or control of the said documents to allow the agency to examine such documents.

3.10.4 To the extent permitted by law, an agent accepts all risks of adverse public notice, embarrassment, criticism, damages, or financial loss which may result from any disclosure or publication of material or information supplied to the agency in connection with the application for the agent's operations.

3.10.5 An agent shall immediately notify the agency of any proposed or effective change regarding the makeup of the owners, directors, officers, partners, or key employees of the agent.

3.10.6 The agent shall certify by a sworn notarized statement that it has not entered and does not intend to enter into any joint venture, partnership or teaming agreement in order to fulfill its obligations in connection with the table games or video lottery operations; that it is not acting as a distributor of products manufactured by another entity; and that it has not entered and does not intend to enter into any agreement whereunder the proceeds generated by any agreement between the agent and the agency would be shared with one or more other persons. Provided, however, that an agent may enter into a management agreement with a third-party, who is not licensed under these regulations as a {technology provider} service company, for the operation of the lottery on the agent's premises provided that: (1) the proposed management agreement is provided to and approved by the agency, and (2) the third-party complies with all these regulations which apply to agents, including without limitation the licensure requirements.

3.10.7 An agent has a continuing duty to maintain suitability for licensure

logy provider} service company, for the operation of the lottery on the agent's premises provided that: (1) the proposed management agreement is provided to and approved by the agency, and (2) the third-party complies with all these regulations which apply to agents, including without limitation the licensure requirements.

3.10.7 An agent has a continuing duty to maintain suitability for licensure. A license does not create a property right, but is a revocable privilege contingent upon continuing suitability for licensure.

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 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 1 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

eek approval of a proposed change in ownership prior to the actual change.

3.13 At the time of issuance of the license or thereafter, in the Director's sole discretion, the Director may approve the proposed business plan of the applicant or the agent. If the Director determines that an amendment or amendments to the plan are necessary to increase revenue from the table games or video lottery, protect the public welfare or ensure the security of the table games or video lottery, the Director may amend the plan accordingly. An agent may request an amendment to an approved business plan, which proposed amendment shall be subject to the approval of the Director. The Director shall also review a submission made pursuant to subsection 3.6.1 to determine whether it conforms to the requirements of the Delaware Code, to the regulations and MICS, and provides adequate and effective controls for the operations of the particular agent submitting it. If the Director is satisfied that all requirements have been met, a written approval of the submission shall be granted. No changes to the approved system of internal control shall be implemented until it is submitted to and approved by the Director in writing.

3.14 To the extent provided by law, any non-publicly available information obtained pursuant to this Section 3.0 shall be held in confidence and not subject to the Delaware Freedom of Information Act, 29 Del.C. Ch. 100.

3.15 Any potential agent who is already licensed as a Delaware State Lottery Video Lottery Agent is not required to apply for a separate table game license

the Director in writing.

3.15 Any potential agent who is already licensed as a Delaware State Lottery Video Lottery Agent is not required to apply for a separate table game license. Any such agent must, however, file with the agency the names, addresses, employer identification or social security numbers (if applicable) and dates of birth (if applicable) of its directors, officers or partners, owners, key employees and gaming employees not already provided under the agent's video lottery license application. The agent must also submit an amendment to its video lottery business plan that shall include, without limitation, the items as described in subsection 3.6 of this regulation.

3.16 Unless exempted from the licensing requirements under subsection 3.1, the Director, in the Director’s sole discretion and upon receipt of a written application, may waive the licensing requirements for institutional investors that hold directly or indirectly up to 15% of the beneficial ownership or legal ownership in the applicant or in any person that will act as the agent. An applicant must submit to the Director any waiver applications at the same time that it submits its licensing application. If the Director grants or denies a person's waiver application, the Director must give the person a written notice of the Director's decision within 60 days of receiving the waiver application. Upon any denial of a waiver, the person must submit to all of the licensing requirements set forth in this Section 3.0. The Director's decision to deny any person a waiver of the licensing requirements is final and cannot be appealed. However, the Director upon good cause and with written notice may later revoke any grant of a waiver

r's decision within 60 days of receiving the waiver application. Upon any denial of a waiver, the person must submit to all of the licensing requirements set forth in this Section 3.0. The Director's decision to deny any person a waiver of the licensing requirements is final and cannot be appealed. However, the Director upon good cause and with written notice may later revoke any grant of a waiver.

3.16.1 Any person that applies for a waiver under subsection 3.16 must affirm under oath that the person purchased, received, or otherwise acquired beneficial ownership or legal ownership in the applicant or the agent for investment purposes only and that the person does not have any intention of influencing or affecting the affairs or operations of the applicant or the agent.

3.16.2 All waivers must be notarized affidavits and must state the signatory acknowledges that the statements made on the waiver form are subject to penalties of perjury under Delaware law.

3.16.3 If a person that has applied for or been granted a waiver under subsection 3.16 subsequently decides to influence or affect the affairs or operations of the applicant or agent, it shall provide not less than 30 days' notice of such decision to the lottery office. Such person shall then be required to file an application under Section 3.0 and be subject to the licensing requirements of these regulations before taking any action that may influence or affect the affairs of the applicant or the agent.

the affairs of the applicant or the agent.

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) .

22 DE Reg. 500 (12/01/18)

29 DE Reg. 699 (02/01/26)

4.0 Licensing of Service Companies; Gaming and Non-Gaming Vendors

Gaming Vendors

4.1 As deemed necessary, the Director shall give public notice of the agency's intent to select gaming vendors through a request for proposal and qualifications by advertising in a newspaper of general circulation in Delaware and in a prominent trade publication requesting expressions of interest to be selected as a gaming vendor. The issuance of a service company license to a gaming vendor shall not serve as the basis for requiring the Director to select the gaming vendor under the procurement procedures set forth in Ch. 69 of Title 29 of the Delaware Code.

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 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

nse in accordance with these regulations.

4.2 Each person desiring to obtain a service company license from the agency as a gaming vendor shall submit a license application on a form specified and supplied by the agency. The license application shall, among other things:

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

4.2.2 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, including copies of financial statements, tax returns, insurance policies, and lists of creditors.

4.2.3 Require the applicant to disclose the identity of all customers to whom it has furnished video games or other gambling equipment or technology within the 3 years immediately preceding the date of the application.

4.2.4 Require the applicant to list all persons with whom the applicant has a communications protocol agreement.

4.2.5 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.

4.2.6 Provide a description of the means by which the applicant exercises security and financial control over the activities of service technicians in order to insure the integrity of video lottery operations

s, 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.

4.2.7 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.

4.2.8 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.

4.2.9 Require the applicant to enclose copies of its audited financial statements for the preceding 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.

4.2.10 Require the applicant to provide a description of its engineering and software development resources, technical support capabilities and ability to manufacture and deliver the video lottery machines.

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 Gaming Excursion Providers

4.3 A non-gaming vendor and gaming excursion provider may transact business upon the filing of a vendor registration form (VRF) in accordance with this subsection

ency 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 Gaming Excursion Providers

4.3 A non-gaming vendor and gaming excursion provider may transact business upon the filing of a vendor registration form (VRF) in accordance with this subsection. A VRF shall be required only for a non-gaming vendor that transacts business in excess of $50,000 per year.

4.4 An agent shall file a vendor registration form for each non-gaming vendor and gaming excursion provider that is not required to file an application for a service company license. The vendor registration form shall, among other things, include:

4.4.1 Company identification information as follows:

4.4.1.1 Nature of business;

4.4.1.2 The date on which a formal offer and acceptance of the agreement to conduct business occurred;

4.4.1.3 Names and addresses of all subsidiaries;

4.4.1.4 The name, address and percentage of ownership of each entity directly owning more than 10% of the non-gaming vendor or gaming excursion provider.

4.4.2 The names of each of the following:

4.4.2.1 Any individual who entered into the agreement with or will deal directly with the agent, including sales representatives, the immediate supervisors of such persons, and all persons responsible for the office out of which such supervisors work;

4.4.2.2 Any officer, partner, or director who will be significantly involved in the conduct of the non-gaming vendor's or gaming excursion provider's business with the agent;

4.4.2.3 If the 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 5% of the outstanding voting securities or other type of beneficial or legal ownership interests of the non-gaming vendor or gaming excursion provider, and the percentage of ownership; and

4.4.2.5 The name and position or title of the individual who supplied the informa

r gaming excursion provider is a sole proprietorship, the name of the sole proprietor;

4.4.2.5 The name and position or title of the individual who supplied the information in the VRF.

4.4.3 Estimated dollar amount of the contract with the agent.

4.5 A non-gaming vendor and gaming excursion provider that provides goods or services to an agent on a regular and continuing basis shall be licensed in accordance with the Delaware Code and these regulations.

4.5.1 Banks and other licensed lending institutions and insurance companies that are licensed by a state bank commission or department of insurance shall be exempt from the license requirements under Section 4.0.

4.5.2 Marketing firms, food and beverage companies, and retailers who do not work on the gaming floor are exempt from the license requirements under Section 4.0.

4.6 A non-gaming vendor shall be deemed to be transacting regular and continuing business if:

4.6.1 The total dollar amount of transactions with a single agent is or is expected to be equal to or greater than $400,000 within any 12-month period; or

4.6.2 The total dollar amount of such transactions with multiple agents is or is expected to be equal to or greater than $750,000 within any 12-month period.

4.7 A gaming excursion provider shall be deemed to be transacting regular and continuing business if:

4.7.1 The total dollar amount of transactions with a single agent is or is expected to be equal to or greater than $150,000 within any 12-month period; or

4.7.2 The total dollar amount of such transaction with multiple agents is or is expected to be equal to or greater than $300,000 within any 12-month period

excursion provider shall be deemed to be transacting regular and continuing business if:

4.7.1 The total dollar amount of transactions with a single agent is or is expected to be equal to or greater than $150,000 within any 12-month period; or

4.7.2 The total dollar amount of such transaction with multiple agents is or is expected to be equal to or greater than $300,000 within any 12-month period.

4.8 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:

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

4.8.2 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;

4.8.3 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;

4.8.4 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;

4.8.5 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

4.8.6 Require persons who are proposing to contract with the agency or a video lottery agent to provide either a copy of their

ners, owners, key employees and gaming employees;

4.8.6 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.

For Gaming Vendors, Non-Gaming Vendors, and Gaming Excursion Providers

4.9 Upon request, the service company applicant shall supplement the information provided in the application form as deemed necessary by the Director.

4.10 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.

4.11 The service company applicant shall cooperate fully with the agency and the DGE in any background investigation of the applicant.

4.12 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, 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.

4.13 As soon as the agency receives the service company application, it shall forward the same to the DGE, which shall conduct as soon as practicable a background investigation of the applicant and all associated license applications and report its findings to the agency

bsection shall, to the extent provided by law, be held in confidence and not subject to the Delaware Freedom of Information Act.

4.14 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 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 the Director's 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 lottery.

4.15 In evaluating service company applications, the Director shall consider, in addition to the license criteria set forth in the Delaware Code, the following:

4.15.1 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.

4.16 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

ral 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.

4.16 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.

4.17 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.

4.18 Gaming vendors shall be licensed for a term of 3 years. The term of a gaming vendor license shall expire and be renewable on the last day of the month on the third anniversary of the issuance date.

4.19 Non-gaming vendors and gaming excursion providers shall be licensed for a term of 4 years. The term of a license 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.

4.20 At a minimum of 60 days prior to expiration, each service company licensee shall submit a new and updated license application form.

4.21 A service company license shall remain valid pending the disposition of a license renewal application filed in accordance with the timelines set forth herein.

4.22 The fee for a service company license application and renewal application shall be $5,000 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 office on matters directly related to the applicant or licensee.

4.23 The fee shall be $2,000 for a non-gaming vendor and gaming excursion provider application and renewal application.

22 DE Reg

ation and renewal application shall be $5,000 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 office on matters directly related to the applicant or licensee.

4.23 The fee shall be $2,000 for a non-gaming vendor and gaming excursion provider application and renewal application.

22 DE Reg. 500 (12/01/18)

27 DE Reg. 678 (03/01/24)

28 DE Reg. 386 (11/01/24)

29 DE Reg. 699 (02/01/26)

5.0 Service Companies: Contracts; Requirements; Duties

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 the Director 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.

5.2 All contracts with service companies who are video lottery machine manufacturers shall include, without limitation, provisions to the following effect:

5.2.1 The service company shall furnish a person to work with the agency and its consultants to provide assistance as needed in establishing, planning and executing acceptance tests on the video lottery machines provided by such service company. Service company assistance shall be provided as requested by the agency in troubleshooting communication and technical problems that are discovered when video lottery machines are initially placed at the agent's site;

5.2.2 The service company shall submit 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 Director for purposes of analyzing and testing the video lottery machines. A maximum of $500 shall be permitted for wagering on a single play of any video game except that the Director pursuant to subsection 7.3 may authorize play on a video lottery machine in excess of the $500 maximum bet limit;

5.2.3 For testing, examination and analysis purposes, the service company shall furnish working models of video lottery machines, associated equipment, and documentation at locations designated by the Director. The service company shall maintain the current software and video lottery machines in good working order acceptable to the agency. The service company shall pay all costs of any testing, examination, analysis and transportation of the video lottery machines, which may include the entire dismantling of the machines and some tests that may result in damage or destruction to 1 or more electronic components of the machines. The agency and its agents shall have no liability for any damage or destruction

r acceptable to the agency. The service company shall pay all costs of any testing, examination, analysis and transportation of the video lottery machines, which may include the entire dismantling of the machines and some tests that may result in damage or destruction to 1 or more electronic components of the machines. The agency and its agents shall have no liability for any damage or destruction. The agency may require that the service company provide specialized equipment or the agency may employ the services of an independent technical laboratory expert to test the video lottery machine at the service company's expense;

5.2.4 Service companies shall submit all hardware, software, and test equipment necessary for testing of their video lottery machines, and shall provide the Director with keys and locks subject to the Director's specifications for each approved video lottery machine;

5.2.5 The EPROMs, CDs, or other equivalent technology of each video lottery machine shall be certified to be in compliance with published specifications;

5.2.6 No video lottery machine shall be put into use prior to certification of its model by the Director.

5.2.7 All game software being shipped into the State of Delaware is required to be sent to the lottery office.

5.3 All contracts with service companies shall include without limitation, provisions to the following effect;

5.3.1 Service companies shall agree to promptly report any violation or any facts or circumstances that may result in a violation of these rules; provide immediate access to all its records and its physical premises for inspection at the request of the Director; attend all trade shows or conferences as required by the Director;

5.3.2 Service companies shall agree to modify their hardware and software as necessary to accommodate video game changes directed by the agency from time to time;

5.3.3 Service companies shall provide such bonds and provide evidence of such insurance as the Director shall require from time to time and in such amounts and issued by suc

end all trade shows or conferences as required by the Director;

5.3.2 Service companies shall agree to modify their hardware and software as necessary to accommodate video game changes directed by the agency from time to time;

5.3.3 Service companies shall provide such bonds and provide evidence of such insurance as the Director shall require from time to time and in such amounts and issued by such companies as the Director shall approve; and

5.3.4 Service companies shall have a valid license to conduct business in the State of Delaware, shall comply with all applicable tax provisions, and shall in all other respects be qualified to conduct business in Delaware.

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.

5.5 The lottery office prescribes testing standards, or portions thereof, for video lottery machines and table game equipment, which standards are incorporated by reference into these regulations. The materials listed in this subsection have the full force of law.

5.5.1 To be certified by the Director, the video lottery machine or table game equipment must meet, as a minimum testing requirement, the standards set forth below, unless an exception is otherwise noted:

5.5.1.1 GLI Standard 11 for gaming devices.

5.5.1.2 GLI Standard 13 for on-line monitoring and control systems and validation systems in casinos.

5.5.1.3 GLI Standard 24 for electronic table game systems; however, as an exception, the minimum payout will be 82%.

5.5.2 All of the materials incorporated by reference are available for inspection from Gaming Laboratories International, Inc. ("GLI"), 600 Airport Road, Lakewood, New Jersey 08701. For more information, call 1-732-942-3999 or go to the GLI website at: https://www.gaminglabs.com/contact-us

GLI Standard 24 for electronic table game systems; however, as an exception, the minimum payout will be 82%.

5.6 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.

5.7 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 2 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.

5.8 The agency may require that 2 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

ransportation 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.

5.9 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 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.

5.10 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.

ency 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.

5.11 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.

5.12 The following duties are required of all licensed service companies, without limitation:

5.12.1 Manufacture terminals and associated equipment for placement in Delaware in accordance with the specifications of the agency.

5.12.2 Manufacture terminals and associated equipment to ensure timely delivery to licensed Delaware agents.

5.12.3 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.

5.12.4 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.

5.12.5 Obtain any certification of compliance required under the applicable provisions of rules adopted by the Federal Communications Commission

ng 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.

5.12.5 Obtain any certification of compliance required under the applicable provisions of rules adopted by the Federal Communications Commission.

5.12.6 Promptly report to the agency any violation or any facts or circumstances that may result in a violation of State or Federal law, or any rules or regulations adopted pursuant to either or both.

5.12.7 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.

5.12.8 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.

5.12.9 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.

5.12.10 Maintain all required records.

5.12.11 Lease or sell only those licensed video lottery machines, validation units and associated equipment approved under these regulations.

5.12.12 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 the repair or maintenance of the video lottery machines, or positions that provide direct access to the video lottery machines

y 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 the repair or maintenance of the video lottery machines, or 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.

5.12.13 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.

5.12.14 Supervise its employees and their activities to ensure compliance with these rules.

5.12.15 Promptly report to the lottery office any violation or any facts or circumstances that may result in a violation of State or Federal law or any rules or regulations pursuant thereto, excluding violations concerning motor vehicle laws.

5.12.16 Comply with such other requirements as shall be specified by the Director.

22 DE Reg. 500 (12/01/18)

29 DE Reg. 699 (02/01/26)

6.0 Agents: Duties

The following duties are required of all licensed agents:

6.1 Provide a secure location for the placement, operation, and play of all licensed table games or video lottery machines located on the licensed agent's premises.

6.2 Ensure that only table games authorized by the Director shall be offered for play and shall be conducted only in accordance with rules promulgated and authorized by the Director

following duties are required of all licensed agents:

6.1 Provide a secure location for the placement, operation, and play of all licensed table games or video lottery machines located on the licensed agent's premises.

6.2 Ensure that only table games authorized by the Director shall be offered for play and shall be conducted only in accordance with rules promulgated and authorized by the Director.

6.3 Permit no person to tamper with or interfere with the approved operation of any licensed video lottery machine, table game or other gaming equipment without prior written approval of the agency and the DGE, unless otherwise directed by the lottery office.

6.4 Assure that telephone lines from the agency's central computer to the licensed video lottery machines located on the licensed agent's premises are at all times connected, and prevent any person from tampering or interfering with the continuous operation of the lines.

6.5 With respect to video lottery operations, contract only with officers, directors, owners, partners, key employees, and suppliers of video lottery equipment and paraphernalia authorized by the agency to participate in video lottery operations within the State of Delaware.

6.6 Ensure that no gaming equipment or any other related accessory shall be used in a video lottery facility if the equipment, materials and suppliers have not been previously approved by the agency.

6.7 Ensure that table games or licensed video lottery machines are placed and remain as placed unless the agency authorizes their movement within the sight and control of the agent or a designated employee, through physical presence and by the use of surveillance cameras at all times.

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

mployee, through physical presence and by the use of surveillance cameras at all times.

6.9 Monitor table games and video lottery machine play and prevent access to or play by persons who are under the age of 21 years or who are intoxicated, or whom the agent has reason to believe are intoxicated, and prohibit play by persons who are barred by law or self-barred from playing any table games or video lottery machine.

6.10 Commit no violations of the laws of this State concerning the sale, dispensing, and consumption on the premises of alcoholic beverages that result in suspension or revocation of an alcoholic beverage license.

6.11 Maintain at all times sufficient tokens, change and cash in denominations accepted by the video machines located in the premises.

6.12 Exercise caution and good judgment in extending credit for table games or video lottery machine play, and comply with all applicable federal and state laws.

6.13 Exercise caution and good judgment in providing cash for checks presented for table games or video lottery machine play. The agent shall also ensure that any contractor who performs check-cashing services for the agent also exercises caution and good judgment in providing cash for checks under this regulation.

6.14 Report promptly all video lottery machine malfunctions to the appropriate service company and agency and notify the agency of any technology provider failure to provide service and repair of such terminals and associated equipment.

6.15 Conduct agency approved advertising and promotional activities related to table games or video lottery operations

iding cash for checks under this regulation.

6.15 Conduct agency approved advertising and promotional activities related to table games or video lottery operations.

6.16 Install, post and display prominently at locations within or about the premises signs, redemption information and other promotional material as may be required by the agency.

6.17 Conduct video lottery and table games operations only during those hours established and approved by the Director or designee.

6.18 Assume responsibility for the proper and timely payment to players of credits or tokens awarded.

6.19 Prohibit the possession, use or control of gambling paraphernalia on the premises not directly related to the lottery or horse racing or harness horse racing and prohibit illegal gambling on the premises.

6.20 Attend all meetings, seminars, and training sessions required by the agency.

6.21 Supervise its employees and their activities to ensure compliance with these rules.

6.22 Assume responsibility for the proper and immediate redemption of all credits; however, no credits may be redeemed by a person under 21 years of age, and no credits submitted for redemption beyond the 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.

6.23 Provide dedicated power and a proper video lottery machine environment in accordance with the specifications of the agency. The agent shall permit no person to completely shut off power to an operational video lottery machine or table game without the prior approval of the agency

llegally on the agent's premises or persons who have requested that they be self-banned from the agent's premises.

6.24 Furnish to the Director complete information pertaining to any change in ownership of the agent or the owner of the premises or beneficial owner (other than a change in ownership by an owner of less than 20% of the issued and outstanding capital stock of the agent or premises owner if such stock is publicly traded).

6.25 Immediately report to the agency any violation or any facts or circumstances that may result in a violation of State or Federal law or any rules or regulations pursuant thereto by the agent, its employees, or anyone acting on behalf of the agent, excluding violations concerning motor vehicle laws.

6.26 Conduct table game and 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 lottery.

6.27 Hold the Director, the State of Delaware, and employees thereof harmless from and defend and pay for the defense of any and all claims which may be asserted against the Director, the State or the employees thereof, arising from the participation in the table game or video lottery system, except claims arising from the negligence or willful misconduct of the Director, the State or the employees thereof.

6.28 Maintain all required records.

6.29 Provide at the request of the Director or the DGE immediate access to the premises and to all records related to any aspect of these regulations, including without limitation the duties imposed by these regulations

me or video lottery system, except claims arising from the negligence or willful misconduct of the Director, the State or the employees thereof.

6.28 Maintain all required records.

6.30 Keep current on all payments, tax obligations and other obligations to the agency and other licensees with whom table game or video lottery business is conducted. The agent shall {pay the players and} transfer the net video lottery game proceeds and gross table game revenue to the State lottery fund in conformity with the requirements set forth in these regulations and 29 Del.C. Ch. 48.

6.31 Locate all table games and video lottery machines within the viewing range of closed circuit television cameras at all times, including both normal business hours and those periods when operations are closed. The presence of these cameras is to ensure the integrity of the lottery, the table games and video lottery operations, and the safety of the patrons. Surveillance video will be maintained by the agent according to a schedule established by the Director and the DGE. The installation of any new closed circuit television or repositioning of any CCTV cameras or new surveillance system must be reviewed and approved by the Director and the DGE before placed in to operation.

6.32 Comply with such other requirements as shall be specified by the Director. The agent shall submit to the Director a description of its system of internal procedures and administrative and accounting controls which shall conform to the rules and regulations of the agency and be otherwise satisfactory to the Director in the Director’s sole discretion.

6.33 Provide, on a continuing basis, to the Director the names and addresses of all employees who are involved in the daily operation of table games or the video lottery machines

its system of internal procedures and administrative and accounting controls which shall conform to the rules and regulations of the agency and be otherwise satisfactory to the Director in the Director’s sole discretion.

6.33 Provide, on a continuing basis, to the Director the names and addresses of all employees who are involved in the daily operation of table games or the video lottery machines. These employees will include individuals or their supervisors involved with the security of the table games or video lottery machines, the handling or transporting of proceeds from the table games or video lottery machines, or positions that provide direct access to table games or video lottery machines. It shall be the continuing duty of the video lottery agent licensee to provide for the bonding of any of the above-mentioned employees to ensure against financial loss resulting from wrongful acts on their parts. Likewise, the agent shall post a bond or irrevocable letter of credit in a manner and in an amount established by the agency. Any such bonds 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.

6.34 Notify the Director on a continuing basis of any change in officers, partners, directors, key employees, table games or gaming employees, and owners.

6.34.1 The video lottery agent shall provide this information to the 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

o 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 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 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 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 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. The agent must submit a Request for Temporary Work Approval Form (TWA) to the lottery office at least 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 10 years. The lottery office may approve a TWA for no longer than 6 months per applicant

to the lottery office at least 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 10 years. The lottery office may approve a TWA for no longer than 6 months per applicant.

6.35 As soon as it is known to the agent, file with the Director a copy of any current or proposed agreement and disclose to the Director any other relationship between the agent, its parents, subsidiaries, related entities, partners, owners, directors, officers or key employees for the sale, lease, maintenance, repair or other assignment of the agent's premises, or any other relationship of any vendor, manufacturer or other person who stands to benefit financially from the possession or use of video lottery machines or table games by such agent.

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 subsection 13.1 et.seq. The contract shall terminate within 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

shall have an opportunity to file an appeal for reconsideration before the Lottery Commission pursuant to the procedures set forth in subsection 13.1 et.seq. The contract shall terminate within 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 15 of each year, which provides sufficient information for the Director to determine whether the agent has satisfied the requirements of this provision.

6.38 Comply with the provisions of the business plans as approved and amended.

6.39 Comply on a continuing basis with the requirements for obtaining or retaining a license under the provisions of these regulations and 29 Del.C. Ch. 48.

6.40 Immediately notify the DGE and agency about, and submit any evidence of, any gaming equipment or other device used in a video lottery facility which has been, or there is reasonable suspicion that it may have been, tampered with or altered in such a way that the integrity or conformity of the gaming equipment or the device may have affected its use.

6.40.1 Immediately notify the DGE about any illegal or suspicious activities that occur or are occurring in the agent's video lottery facility that relate to the safety, security or gaming operations of the facility. An agent shall also immediately notify the DGE of any illegal or suspicious activities that occur outside of the video lottery facility that relate to the safety, security or gaming operations of the video lottery facility.

6.40.2 Immediately notify the DGE if the agent's security personnel or anyone acting on behalf of the agent physically detain a person suspected of a violation of 11 Del.C. 1471

n agent shall also immediately notify the DGE of any illegal or suspicious activities that occur outside of the video lottery facility that relate to the safety, security or gaming operations of the video lottery facility.

6.40.2 Immediately notify the DGE if the agent's security personnel or anyone acting on behalf of the agent physically detain a person suspected of a violation of 11 Del.C. 1471.

6.41 The agent who has retained any gaming equipment or other devices, under a reasonable suspicion that said gaming equipment or article was tampered with or altered, or who has retained any device of those specified in these regulations under a reasonable suspicion that said device was introduced or used or intended to be used in the video lottery facility in violation of the law or the regulations, shall keep said equipment or article in the state in which it was found when it was retained, and shall deliver said equipment or article to a representative of the DGE as soon as possible.

6.41.1 The agent shall be responsible for ensuring that any gaming equipment or any other device and any evidence related to the same which should be submitted to the DGE is maintained in a secure manner until the arrival of an authorized representative of the DGE.

22 DE Reg. 500 (12/01/18)

29 DE Reg. 699 (02/01/26)

7.0 Game Requirements, Voluntary and Involuntary Exclusion

7.1 The Director shall authorize such table games and video games to be played on the agent's premises in conformity with approved business plans, as amended.

7.2 Video games shall be based on bills, coins, tokens or credits, worth between $.01 and $100 each, in conformity with approved business plans as amended.

7.3 The Director, in the Director's discretion, may authorize play on a video lottery machine to which the maximum wager limit of $500 shall not apply.

7.4 Each video game shall display the amount wagered and the amount awarded for each possible winning occurrence based on the number of credits wagered

redits, worth between $.01 and $100 each, in conformity with approved business plans as amended.

7.3 The Director, in the Director's discretion, may authorize play on a video lottery machine to which the maximum wager limit of $500 shall not apply.

7.4 Each video game shall display the amount wagered and the amount awarded for each possible winning occurrence based on the number of credits wagered.

7.5 Each video game shall provide a method for players to view payout tables.

7.6 Each player shall be at least 21 years of age. In the event an underage player attempts to claim a prize, the video lottery agent should treat the play of the game as void and the underage player shall not be entitled to any prize won or a refund of amounts bet. In the event a person illegally on the premises or a self-barred person attempts to claim a prize, the video lottery agent will also treat the play of the game as void and the person shall not be entitled to any prize won or a refund of amounts bet. This policy prohibiting persons underage, persons illegally entering the premises, and persons self-barred from winning prizes shall be prominently displayed on the premises of the video lottery agent.

7.7 Agents shall redeem credit slips, tokens, or video lottery machine credits presented by a player in accordance with procedures proposed by the agent and approved by the Director prior to the opening of the premises for video game play. Such procedures shall be modified at the direction of the Director in the Director's sole discretion at any time. Nothing in this subsection (7.7) shall prohibit the use of coin-in/coin-out machines. Players claiming prizes may be required to present sufficient identification as required by the agency.

7.8 Credit slips and prize claim forms may be redeemed by a player at the designated place on the premises where the video game issuing the credit slip or prize claim form is located during the 1 year redeeming period commencing on the date the credit slip or prize claim form was issued

achines. Players claiming prizes may be required to present sufficient identification as required by the agency.

7.9 No credit slip or prize claim shall be redeemed more than 1 year from the date of issuance. No jackpot from a coin-in/coin-out machine shall be redeemed more than 1 year from the date on which the jackpot occurred. Funds reserved for the payment of a credit slip or expired unclaimed jackpot shall be treated as net proceeds if unredeemed 1 year from the date of issuance of the credit slip or occurrence of the winning jackpot. The 1 year redemption policy in this regulation shall be prominently displayed on the premises of the video lottery agent.

7.9.1 No person may play or attempt to play credits on a video lottery machine that were won by another player on that machine and inadvertently or accidentally left on the machine by the original player. Any such play of another person's credits shall be treated as void and the person who plays another player's credits that were accidentally left on the machine shall not be entitled to any prize won or a refund. The tracks shall prominently post this policy on the premises.

7.9.2 Any unclaimed credits left on a video lottery machine shall revert to the agency after a 1-year period

original player. Any such play of another person's credits shall be treated as void and the person who plays another player's credits that were accidentally left on the machine shall not be entitled to any prize won or a refund. The tracks shall prominently post this policy on the premises.

7.9.2 Any unclaimed credits left on a video lottery machine shall revert to the agency after a 1-year period.

7.10 No payment for a credit slip or a prize claim form for a prize awarded on a video lottery machine may be made unless the credit slip or prize claim form meets the following requirements:

7.10.1 It is presented on a fully legible, valid, printed credit slip on paper approved by the agency, containing the information as required;

7.10.2 It is not mutilated, altered, unreadable, or tampered with in any manner, or previously paid;

7.10.3 It is not counterfeit in whole or in part; and

7.10.4 It is presented by a person authorized to play.

7.11 Method of Payment. The management of each licensed agent shall designate employees authorized to redeem credit slips during the hours of operation. Credits shall be immediately paid in cash or by check when a player presents a credit slip for payment meeting the requirements of this section.

7.12 Restrictions on Payment. Agents may only redeem credit slips for credits awarded on video lottery machines located on its premises. The agency and the State of Delaware are not liable for the payment of any credits on any credit slips.

7.13 Redeemed Tickets Defaced. All credit slips redeemed by a licensed agent shall be marked or defaced in a manner that prevents any subsequent presentment and payment.

7.14 Liability for Malfunction. The agency and the State of Delaware are not responsible for any video lottery machine malfunction or for any error by the agent that causes credit to be wrongfully awarded or denied to players

ips.

7.13 Redeemed Tickets Defaced. All credit slips redeemed by a licensed agent shall be marked or defaced in a manner that prevents any subsequent presentment and payment.

7.15 Self-Excluded Players

7.15.1 Request for Self-Exclusion; Form

7.15.1.1 Any person may request to be placed on the self-exclusion list by submitting a request for self-exclusion in the form and manner required by these regulations. Such self-exclusion form must include the following information concerning the person submitting the request for self-exclusion:

7.15.1.1.1 Their name, including any aliases or nicknames;

7.15.1.1.2 Their date of birth;

7.15.1.1.3 Their address of current residence;

7.15.1.1.4 The telephone number of their current residence or their cell phone number;

7.15.1.1.5 Their social security or individual taxpayer identification number;

7.15.1.1.6 Their physical description, including height, weight, gender, hair color, eye color, and any other physical characteristic that may assist in the identification of the person;

7.15.1.1.7 The length of minimum self-exclusion requested by the person, which may be 1 year, 5 years, or for the lifetime of the person;

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

7.15.1.1.8.1 Its processing or enforcement;

7.15.1.1.8.2 The failure of an agent to prevent game play by a self-excluded person, or the failure by the a

eirs, administrators, executors, and assigns for any harm, monetary or otherwise, which may arise out of or by reason of any act or omission relating to the request for self-exclusion or request for removal from the self-exclusion list, including:

7.15.1.1.8.1 Its processing or enforcement;

7.15.1.1.8.2 The failure of an agent to prevent game play by a self-excluded person, or the failure by the agent to restore the ability of self-excluded person to play games;

7.15.1.1.8.3 Permitting a self-excluded person to engage in video lottery or table game play at a video lottery agent's premises while on the list of self-excluded persons; and

7.15.1.1.8.4 Disclosure of the information contained in the self-exclusion request or list, except for a willfully unlawful disclosure of such information.

7.15.1.1.9 Their signature and the following statement:

"I am voluntarily requesting exclusion from all gaming activities at all licensed Delaware video lottery agents and internet lottery platforms because I am a problem gambler. I certify that the information provided above is true and accurate, I have read, understand, and agree to the waiver and release included with this request for self-exclusion. I am aware that my signature below authorizes the Delaware Lottery and the DGE to direct all licensed video lottery agents to prohibit my access to all video lottery facilities and internet lottery platforms in accordance with this request until such time as the Delaware Lottery removes my name from the self-exclusion list in response to my written request to terminate my voluntary self-exclusion, unless, however, I have requested to be excluded for life

Lottery and the DGE to direct all licensed video lottery agents to prohibit my access to all video lottery facilities and internet lottery platforms in accordance with this request until such time as the Delaware Lottery removes my name from the self-exclusion list in response to my written request to terminate my voluntary self-exclusion, unless, however, I have requested to be excluded for life. I am aware and agree that during any period of self-exclusion, I shall not collect any winnings or recover any losses resulting from any gaming activity at all licensed video lottery agent facilities and internet lottery platforms, and that any money or thing of value obtained by me from, or owed to me by a licensed video lottery agent as a result of wagers made by me while on the self-exclusion list shall be subject to forfeiture. I am aware that during my period of self-exclusion I will be denied access to any player club promotions, offers or membership relating to video lottery, table games or internet lottery activities."

7.15.1.1.10 The type of identification credentials the lottery office examined, which must contain the signature of the person requesting self-exclusion, and whether said credentials included a photograph and general physical description of the person; and

7.15.1.1.11 The signature of an authorized lottery office employee who accepted the person's request for self-exclusion. The lottery office employee must indicate on the form that the signature of the person on the request for self-exclusion appears to agree with the signature contained on the person’s identification credentials and that any photograph and physical description of the person appears to agree with the person’s actual appearance.

any photograph and physical description of the person appears to agree with the person’s actual appearance.

7.15.1.2 Any person requesting placement on the self-exclusion list shall submit a completed self-exclusion form to the Delaware State Lottery as required in this regulation. Any person submitting a self-exclusion form shall be required to provide valid government issued photo identification. The Delaware State Lottery requires a photograph from each person who requests self-exclusion pursuant to this regulation and upon submission of the self-exclusion form.

7.15.2 Self-Exclusion List

7.15.2.1 The 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 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.

7.15.2.2 Each video lottery agent shall maintain its own copy of the self-exclusion list. In addition, each video lottery agent 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 48 hours after the notice is mailed by the lottery office. The notice mailed by the lottery office shall include the information regarding the excluded person that is listed in subsections 7.15.1.1.1 through 7.15.1.1.8 and a photograph of the person requesting self-exclusion.

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

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

7.15.4 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.

7.15.5 Duties of Video Lottery Agent

7.15.5.1 Each video lottery agent shall establish procedures that are designed, to the greatest extent practicable, to:

7.15.5.1.1 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:

7.15.5.1.1.1 Those employees of the video lottery agent designated to monitor the presence of the self-excluded persons;

7.15.5.1.1.2 Designated representatives of the lottery office and the DGE.

7.15.5.1.2 Refuse access to the premises and internet lottery platforms for any self-excluded person;

7.15.5.1.3 Deny check cashing privileges, player club membership, complimentary goods and services, and other similar privileges and benefits to any self-excluded person;

7.15.5.1.4 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;

7.15.5.2 Each video lottery agent shall submit to the lottery office and the DGE, a copy of its procedures established to comply with these self-exclusion regulatio

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;

7.15.5.2 Each video lottery agent shall submit to the lottery office and the DGE, a copy of its procedures established to comply with these self-exclusion regulations within 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 office and the DGE at least 3 business days prior to the implementation. If the lottery office and the DGE do not object to said procedures or amendments thereto, such procedures or amendments shall be deemed to be approved.

7.15.5.3 If any agent recognizes a self-excluded person entering or attempting to enter any video lottery premises, the agent shall immediately notify the lottery office and DGE of such fact. The agent shall also take all reasonable steps to initiate and maintain video surveillance of the self-excluded person if they are on video lottery premises and securely retain any ensuing recordings until directed otherwise by the lottery office or DGE.

7.15.6 Removal from Self-Exclusion List

7.15.6.1 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 subsection 7.15.2, request to be removed from the self-exclusion list by submitting a completed request for removal as required in subsection 7.15.6.2 of this regulation. The request shall be submitted to the Delaware State Lottery Office. Any person submitting a request for removal from the list shall be required to present valid government issued photo identification

lusion requested pursuant to subsection 7.15.2, request to be removed from the self-exclusion list by submitting a completed request for removal as required in subsection 7.15.6.2 of this regulation. The request shall be submitted to the Delaware State Lottery Office. Any person submitting a request for removal from the list shall be required to present valid government issued photo identification.

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

7.15.6.2.1 The identifying information specified in subsection 7.15.1.1;

7.15.6.2.2 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, table games, and internet lottery privileges at licensed video lottery premises and internet lottery platforms;"

7.15.6.2.3 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,

7.15.6.2.4 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 the person’s identification credentials and that any photograph and physical description appears to agree with the person’s actual appearance.

7.15.6.3 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

ion list appears to agree with that contained on the person’s identification credentials and that any photograph and physical description appears to agree with the person’s actual appearance.

7.16 Involuntary Exclusion

7.16.1 Maintenance and distribution of excluded persons list

7.16.1.1 The Director shall maintain an updated master exclusion list pursuant to this subsection and shall notify all agents in writing of any additions to or deletions from the exclusion list. Each agent shall acknowledge receipt of the notice in writing. An updated master exclusion list shall be maintained by each agent. The lottery office shall make available a current copy of the official exclusion list to the DGE and upon request to any agent.

7.16.1.2 The list shall be open to public inspection.

7.16.1.3 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 2 business days of receipt of such updates from the Director.

7.16.2 Criteria for exclusion. The exclusion list may include any person who meets any of the following criteria:

7.16.2.1 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;

7.16.2.2 Violation or conspiracy to violate any of the provisions of 11 Del.C

the Director.

7.16.2 Criteria for exclusion. The exclusion list may include any person who meets any of the following criteria:

7.16.2.1 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;

7.16.2.2 Violation or conspiracy to violate any of the provisions of 11 Del.C. §1471 ;

7.16.2.3 The failure to disclose an interest in a video lottery facility for which the person must obtain a license; or

7.16.2.4 Willful evasion of fees or taxes;

7.16.2.5 Notorious or unsavory reputation which would adversely affect public confidence and trust that the Delaware Lottery is free from criminal or corruptive elements; or

7.16.2.6 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.

7.16.2.7 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;

7.16.2.8 An associate of a career or professional offender whose association is such that the person’s presence in a video lottery facility would be inimical to the interest of the State of Delaware or of lottery operations therein;

7.16.2.9 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:

7.16.2.9.1 Cheats;

7.16.2.9.2 Persons whose privileges for licensure have been revoked;

7.16.2.9.3 Persons who pose a threat to the safety of the patrons or employees of a video lottery agent; and

7.16.2.9.4 Persons with a documented history of conduct involving the undue disruption of the video lottery or table games operations or both of video lottery agents

erein, including, but not limited to:

7.16.2.9.1 Cheats;

7.16.2.9.2 Persons whose privileges for licensure have been revoked;

7.16.2.9.3 Persons who pose a threat to the safety of the patrons or employees of a video lottery agent; and

7.16.2.9.4 Persons with a documented history of conduct involving the undue disruption of the video lottery or table games operations or both of video lottery agents.

7.16.2.10 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:

7.16.2.10.1 Are incompatible with the maintenance of public confidence and trust in the credibility, integrity and stability of lottery operations;

7.16.2.10.2 Could reasonably be expected to impair the public perception of, and confidence in, the Lottery or its regulatory processes; or

7.16.2.10.3 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.

7.16.2.11 A finding of inimicality may be based upon the following:

7.16.2.11.1 The nature and notoriety of the attributes of character or background of the person;

7.16.2.11.2 The history and nature of the involvement of the person with lottery operations in Delaware or with licensed gaming in any other jurisdiction;

7.16.2.11.3 The nature and frequency of any contacts or associations of the person with any video lottery agents or with any employees thereof; or

7.16.2.11.4 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.

7.16.2.12 In considering placement on the exclusion list, it shall be improper to discriminate on any basis prohibited by §711(a) of Title 19

tery agents or with any employees thereof; or

7.16.2.12 In considering placement on the exclusion list, it shall be improper to discriminate on any basis prohibited by §711(a) of Title 19.

7.16.3 Duties of the Director, Lottery Commission, and the DGE

7.16.3.1 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 DGE determines that the person so investigated satisfies the criteria for exclusion, the DGE shall file a verified petition with the Director as set forth in 29 Del.C. §4835(a) and request that the person be placed on the exclusion list. The 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.

7.16.3.2 Upon receipt of a verified petition that complies in form and substance with 29 Del.C. §4835 and these regulations, the Director shall place the person so named on the exclusion list. Whenever the name and description of any person is placed on the exclusion list pursuant to this subsection, the Director shall serve notice of such fact to such person:

7.16.3.2.1 By personal service;

7.16.3.2.2 By certified mail to the last known address of such person; or

7.16.3.2.3 By publication daily for 1 week in 1 of the principal newspapers published in the city of Dover and in 1 of the principal newspapers published in the city of Wilmington, Delaware.

aily for 1 week in 1 of the principal newspapers published in the city of Dover and in 1 of the principal newspapers published in the city of Wilmington, Delaware.

7.16.3.3 Within 30 days after service by mail or in person or 60 days after the last publication, the person named may request a hearing before the Lottery Commission and show cause why the person's name should be 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 the person’s right to petition for judicial review.

7.16.3.4 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 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

ed 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.

7.16.3.5 If, upon completion of the hearing, the Lottery Commission determines that:

7.16.3.5.1 The DGE has not met its burden of proof, the Lottery Commission shall prepare and issue a written decision and order that sets forth its findings of fact and conclusions of law, includes a statement that the person's name must be removed from the exclusion list, directs the Director to notify all agents of the person's removal from the exclusion list, and directs the Director to serve a copy of its written decision and order on the person so named; or

7.16.3.5.2 Placing the excluded person on the exclusion list was proper, in which case the Lottery Commission shall prepare and issue a written decision and order that sets forth its findings of fact and conclusions of law, includes a statement that the person's name must remain on the exclusion list, and directs the Director to serve a copy of its written decision and order on the person so named.

7.16.3.6 The Director shall serve the Lottery Commission's written decision and order on the person whose name will be removed from the exclusion list or whose name will remain on the exclusion list in one of the manners listed in subsections 7.17.4.2.1, 7.17.4.2.2, or 7.17.4.2.3. 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

itten decision and order on the person whose name will be removed from the exclusion list or whose name will remain on the exclusion list in one of the manners listed in subsections 7.17.4.2.1, 7.17.4.2.2, or 7.17.4.2.3. 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.

7.16.3.7 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.

7.16.3.8 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.

7.16.4 Information contained on the list of excluded persons

7.16.4.1 The following information and data shall be provided for each excluded person:

7.16.4.1.1 The full name and all aliases the person is believed to have used;

7.16.4.1.2 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;

7.16.4.1.3 Date of birth;

7.16.4.1.4 The effective date of the order mandating the exclusion or ejection of the person named therein;

7.16.4.1.5 A photograph, if obtainable, and the date thereof;

7.16.4.1.6 Such other miscellaneous information as is deemed necessary by the Director for the enforcement of this regulation

physical characteristics which may assist in the identification of the person;

7.16.4.1.3 Date of birth;

7.16.4.1.4 The effective date of the order mandating the exclusion or ejection of the person named therein;

7.16.4.1.5 A photograph, if obtainable, and the date thereof;

7.16.4.1.6 Such other miscellaneous information as is deemed necessary by the Director for the enforcement of this regulation.

7.16.5 Duties of video lottery agents

7.16.5.1 A video lottery agent shall exclude or eject the following persons from its video lottery facility:

7.16.5.1.1 Any excluded person; or

7.16.5.1.2 Any person known to the agent to satisfy the criteria for exclusion set forth in these regulations.

7.16.5.2 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 on the premises and securely retain any ensuing recordings until directed otherwise by the Lottery or DGE.

7.16.5.3 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 subsection 7.16.5.1, refer a matter to the DGE for investigation to determine whether such person meets the criteria for exclusion.

7.16.5.4 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.

7.16.6 Petition to remove name from exclusion list

7.16.6.1 An excluded person may petition the Lottery Commission to request a hearing concerning their removal from the list at any time after 5 years from the placement of such person on the list

nuing 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.

7.16.6 Petition to remove name from exclusion list

7.16.6.1 An excluded person may petition the Lottery Commission to request a hearing concerning their removal from the list at any time after 5 years from the placement of such person on the list.

7.16.6.2 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 the person’s 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.

7.16.6.3 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.

7.16.6.4 Any excluded person who is barred from requesting a hearing concerning removal from the list by 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 5-year period of exclusion, file more than 1 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

.6.1 may petition the Lottery Commission for early consideration at any time; provided, however, that no excluded person may, within the 5-year period of exclusion, file more than 1 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.

7.17 Forfeiture of Winnings by Prohibited Person

7.17.1 If any prohibited person obtains any money or thing of value ("winnings") from gaming activity in a video lottery facility, the prohibited person shall forfeit the winnings and shall not transfer them to anyone else.

7.17.2 Within 30 days after a prohibited person forfeits any winnings, the prohibited person may request a hearing from the Director. Failure to demand a hearing within the time allotted in this subsection precludes the prohibited person from having an administrative hearing, but in no way affects the person’s right to petition for judicial review.

ht to petition for judicial review.

7.17.3 Upon receiving a written demand for a hearing, the Director or the Director's designee shall set a time and place for the hearing. This hearing must be held not later than 30 days after the Director receives the written demand, unless the time of the hearing is changed by the Director or the Director's designee, with the agreement of the prohibited person. At the hearing, the prohibited person shall have the obligation to demonstrate by clear and convincing evidence that the forfeiture determination was in error.

7.17.4 If, upon completion of the hearing, the Director or the Director's designee determines that the prohibited person has met that person's burden of proof, the Director will enter an order to that effect. The Director or the Director's designee will then send a copy of the written notice to the agent and direct it to distribute the winnings to the prohibited person. If, however, upon completion of the hearing, the Director or the Director's designee finds that the prohibited person has not met their burden of proof, the Director or designee will enter an order to that effect, and the winnings will remain in forfeiture.

7.17.5 If the prohibited person fails to file a timely written request for a hearing or loses a hearing on the forfeiture decision and 60 days have passed, the forfeited winnings shall be forwarded to the lottery office and will be sent to the Delaware Department of Health and Social Services, Division of Substance Abuse and Mental Health to be applied to funding programs for the treatment, education and assistance of compulsive gamblers and their families.

7.18 Promotional Video Lottery Tournaments

7.18.1 The lottery office will be solely responsible for the procurement of any modified video lottery terminals ("Promotional Tournament Terminals") to be used by an agent for promotional tournaments. A Promotional Tournament Terminal will be modified so that at a minimum, it does not contain any bill acceptor, coin acceptor, or hopper

nd their families.

7.18 Promotional Video Lottery Tournaments

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 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:

7.18.2.1 The number of Promotional Tournament Terminals requested;

7.18.2.2 A description of the location where the Promotional Tournament Terminal will be stored or installed on the agent's premises; and

7.18.2.3 A description of the agent's security plan for the Promotional Tournament Terminals when they are in storage and when they are being used for promotional tournaments.

7.18.3 The lottery office with lease or purchase Promotional Tournament Terminals and provided these to the agents to use for promotional tournaments.

7.18.4 An agent may store the Promotional Tournament Terminals in a secure, locked room when the machines are not being used for approved promotional tournaments. The locked storage area must be under surveillance at all times. The storage area must be approved by the lottery office. The agent must control access to the locked storage area that holds the Promotional Tournament Terminals

urnaments.

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