10 Del. Admin. Code § 203-6.0

Current through Reigster Vol. 28, No. 6, December 1, 2024

Section 203-6.0 - 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.

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.

6.9 Monitor table games and video lottery machine play and prevent access to or play by persons who are under the age of twenty-one (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.

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 twenty-one (21) years of age, and no credits submitted for redemption beyond the one (1) year time limit will be redeemed. No credits or prizes may be redeemed by or for any person illegally on the agent's premises or persons who have requested that they be self-banned from the agent's premises.

6.23 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.

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 twenty (20) percent 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 and/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.

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 his or her 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 (1) the security of the table games or video lottery machines, (2) the handling or transporting of proceeds from the table games or video lottery machines, or (3) 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. 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 forty-eight (48) hours prior to the date of assignment. The TWAs must be accompanied by a copy of a valid photo identification for each temporary employee, consultant, or contractor. The lottery office will not approve a TWA for any individual who has been convicted of a felony within the past ten (10) years. The lottery office may approve a TWA for no longer than six (6) months per applicant.

6.35 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 thirty (30) days of this notice unless an appeal for reconsideration is filed.

6.37 Comply with the applicable requirements contained in Title 3 Del.C. § 10048 and § 10148 and Title 28 Del.C. § 427 of the Delaware Code. The agent shall file an annual report, due January 15th of each year, which provides sufficient information for the Director to determine whether the agent has satisfied the requirements of this provision.

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 and/or suspicious activities that occur or are occurring in the agent's video lottery facility that relate to the safety, security and/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 and/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.

10 Del. Admin. Code § 203-6.0

22 DE Reg. 500 (12/1/2018) (Final)