Source: https://www.gamingregulation.com/regulation/united-states/maryland/commercial-gaming/
Timestamp: 2019-04-18 16:18:36+00:00

Document:
In 2008, voters approved a constitutional referendum that authorized the operation of up to 15,000 video lottery terminals at five locations throughout the state.1 These locations are regulated by the Maryland Lottery Commission (“Commission”) with the tax revenue collected used largely for public education funding. Locations for each of the five licenses are limited to Anne Arundel, Cecil, Worcester, and Allegany counties, as well as the City of Baltimore.2 In addition, all video lottery terminals and associated equipment must be owned, leased, or under the control of the Commission.
The first location to operate slot machines in the state under the 2008 referendum was the Hollywood Casino in Perryville, opened in 2010. In January 2011, the Casino at Ocean Downs opened with 750 slot machines in operation. The largest of the three casinos in operation is the Maryland Live! Casino, which opened in Hanover on June 7, 2012 and operates 3,200 slot machines and electronic table games.
As a general matter, those supplying gaming-related goods or services must be licensed as a manufacturer. Those providing non-gaming goods or services must complete the vendor certification or registration requirements.
Manufacturers will contract with the Commission for the sale of equipment, as Maryland law requires that all video lottery terminals and associated equipment be owned, leased, or controlled by the Commission.6 The Commission has set up a “VLT RFQ” section of its website where interested vendors can bid on contracts to supply VLT materials, as well as see details for contracts that have been issued in the past.
Manufacturer licenses are issued for a period of three years.7 Renewal applications, materials, and fees must be submitted to the Commission prior to the expiration of the licensee’s current license.
In addition to the corporate licensing requirements listed above, the applicant must have each of its principal employees complete the Principal Employee Application. Principal employees of manufacturers include employees that exercise control over the manufacturer, perform service on video lottery terminals, or who have control over those performing service on video lottery terminals.
Please note that these individuals can request a waiver from filing the Principal Employee Form, but will be required to submit a Principal Employee Waiver Form. Those seeking a waiver must prove to the Commission that they are “not significantly involved in the affairs of the VLT Applicant,” among other items. After receiving the waiver form, the Commission will determine if the applicant qualifies for the waiver. If not, the applicant will be required to complete the Principal Employee Form.
A Principal Employee License is issued for a period of three years. Renewal applications must be submitted prior to the expiration of the current license.
Waivers are also issued for a period of three years.
Those seeking a waiver are required to submit the same fees listed above.
16.	Personal references, three persons.
3.	Tax returns, past five years.
A vendor certification is valid for a period of three years. There is no specific term for a vendor registration, but the VLT operator is responsible for the maintenance of the registration with the Commission.
Those completing the Vendor Certification Form must submit a $500 application fee at the time of application. The Vendor Registration Form does not have any fees associated with the process.
The Vendor Registration Form is a simple, two-page form that merely requires the applicant to list its name, address, and contact person, and provide a description of the goods or services provided to the VLT operator.
Those seeking to provide VLT-related equipment to the Commission should first check the Commission’s website to review any outstanding RFQs issued by the Commission, as the Commission is the party responsible for purchasing, leasing, and/or acquiring VLT equipment.
For manufacture licenses and vendor certifications, interested parties should complete and submit the required forms, along with attachments and fees, to the Commission. If the applicant is seeking a waiver, then the Commission will review the information submitted and make a determination on whether the applicant is eligible for a waiver. If the applicant does not qualify for a waiver, then the Commission will inform the applicant and require the applicant to complete the appropriate licensing forms.
The Commission will then conduct a review of the application and begin its background investigation. The Commission may require personal interviews with the applicant and its principal employees during this process. The applicant is responsible for paying for all investigative costs which are drawn from the background check deposit submitted with the application.
For those vendors that require registration, the vendor should complete the appropriate forms and submit same to the VLT operator with which the applicant is conducting business. The VLT operator is responsible for submitting vendor registration information to the Commission.
The Commission maintains a detailed list of regulations that define the technical standards for VLTs and related equipment. These regulations are contained at COMAR 14.01.15.
Manufacturer licensing exemptions are available for those individuals or entities that hold a valid gaming license in another jurisdiction and the Commission determines that the licensing criteria in that jurisdiction are “comprehensive, thorough, and provide similar adequate safeguards” to the state’s requirements.16 The Commission, at its discretion, may waive parts of or all of the licensing requirements for manufacturers that hold a valid license that meets the criteria above and if the exemption is not contrary to the public’s interest. This power includes the ability to waive all or parts of the associated principal employee licensing requirements.
Vendor exemptions are available for those entities that provide public utilities, insurance services, or employee benefit plans, among other services outlined in COMAR 14.01.10.19(C).
1'Frequently Asked Questions,' Video Lottery Terminal Resources and Information, Maryland Lottery Website, available at www.slots.mdlottery.com.
2'Video Lottery Location Commission,' Video Lottery Terminal Resources and Information, Maryland Lottery Website, available at www.slots.mdlottery.com.
Md. Code, State Government, §9-1A-21.
4Md. Code, State Government, §9-1A-15.
5Md. Code, State Government, § 9-1A-01(r).
6Md. Code, State Government, §9-1A-21.
7Md. Code, State Government, §9-1A-07(f)(1).
8Manufacturer License Application, Maryland State Lottery Commission, p. 2.
9Manufacturer License Application, Maryland Lottery Commission.
10Manufacturer License Application, Maryland Lottery Commission.
12Principal Employee Application, Maryland Lottery Commission, p. 2.
text=Vendor Certification Form, Maryland Lottery Commission, pp. 2-3.
15Vendor Certification Form, Maryland Lottery Commission.
16Md. Code, State Government, §9-1A-16.

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