Source: http://www.delottery.com/games/sports/rules.asp
Timestamp: 2014-08-29 18:03:19
Document Index: 270102250

Matched Legal Cases: ['§4805', '§4805', '§4820', '§4805', '§4823', '§10125', '§10142', '§4823']

SPORTS LOTTERY RULES & REGULATIONS JUNE 2009
Ammended September 11, 2012
1.0 Introduction 2.0 Definitions 3.0 Licensing of Agents; Business Plans
6.0 Agents: Duties 7.0 Sports Lottery 8.0 Accounting and Distribution Procedures
10.0 Standards for Advertising, Marketing and Promotional 11.0 Enforcement 12.0 Employee Licensing Procedure
13.0 Severability 1.0 Introduction
These regulations are authorized pursuant to 29 Del. C. §4805 of Title 29 of the Delaware Code. Sports lottery operations in the State of Delaware are strictly regulated by the Delaware State Lottery Office through the powers delegated to the Director of the Lottery pursuant to Title 29 of the Delaware Code.
"agency" - the Delaware State Lottery Office created pursuant to 29 Del. C. Ch. 48.
“DGE” – Division of Gaming Enforcement of the Department of Homeland Security.
'Director" - the Director of the Delaware State Lottery Office as established by Title 29 of the Delaware Code.
"owner" - a person who owns, directly or indirectly, any portion of an applicant or licensee. "person" - an individual, general partnership, limited partnership, corporation or other legal entity.
"premises" - the building and grounds occupied by a licensed agent where the agent's sports 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 sports lottery operations are kept. "request for proposals and qualifications" - a document developed under the direction of the Delaware State Lottery Office for the purpose of soliciting responses from potential technology providers as a means of acquiring bids for goods or services.
“sports lottery operations employee” shall mean an individual employee, person or agent of an applicant or licensee who is responsible for the security of sports lottery operations or proceeds. “sports lottery systems” – systems provided by a technology provider that consist of sports wagering products, risk management (bookmaking), operations and support services.
"technology provider" - any person or entity who proposes to contract with a sports lottery agent or the agency for the provision of goods or services related to a sports lottery, the provision of which requires a license pursuant to 29 Del. C. Ch. 48. "terminal" – see “sports lottery machine”. Back to Top
of Agents; Business Plans 3.1 Video Lottery Agents
Any potential sports lottery agent who is already licensed as a Delaware State Lottery Video Lottery Agent is not required to apply for a separate sports lottery 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 sports lottery operations 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. 3.2 Retail Lottery Agents
Any potential sports lottery agent who is already licensed as a Delaware State Lottery Retail Lottery Agent (retailer) must apply to the agency for a separate sports lottery license. Any such applicant desiring to obtain a sports lottery license shall apply to the agency on forms specified by the Director from time to time as defined in section 3.3. At the discretion of the Director, such an applicant may be allowed to meet the requirements of the application process for a sports lottery license by relying on forms, materials, criminal history responses, and submissions already provided for the purpose of determining the qualifications of the applicant during the retail lottery licensing process. Nothing in this section will limit the Director’s authority to require an existing Agent to undergo a new and complete application process for a sports lottery license. 3.3 Application Process for Licensing as a Sports Lottery Agent
3.3.1.1 The applicant's legal name, form of entity (e.g., general or limited partnership, corporation);
3.3.1.2 The names, addresses, employer identification or social security numbers (if applicable) and dates of birth (if applicable) of its directors, officers, partners, owners;
3.3.1.3 A Statement of Eligibility to hold a Lottery Sports Agent License, including disclosure regarding the Applicant, or any persons identified in subparagraph 3.3.1.2, who have:
3.3.1.3.1 Been convicted of an offense other than a traffic violations;
3.3.1.3.2 Been subject to any disciplinary action, past or pending, by any administrative, government, or regulatory body;
3.3.1.3.3 Been charged with a violation of any statute, rule, regulation, or ordinance of any administrative, regulatory, or other governmental body;
3.3.1.3.4 Been in default of any taxes, fees, or other obligations owed to the State of Delaware, local, or federal government. 3.4 Applicant Submissions
Any applicant desiring to obtain a license to act as an agent shall submit, without limitation, the following documentation in conjunction with application forms as required by the Director: 3.4.1 A copy of a license issued by the Delaware Division of Revenue to conduct business in the State of Delaware;
3.4.2 A personal financial statement of and for the applicant, or any persons identified in subparagraph 3.3.1.2, OR, at the Director’s discretion, copies of the applicant’s audited financial statements for the previous three (3) years;
3.4.3 Copies of the State and Federal tax returns for the most recently completed tax year for the applicant, or any persons identified in subparagraph 3.3.1.2;
3.4.4 Personal Guaranty (corporations only);
3.4.5 Notarized Criminal History Affidavit signed by the applicant and all persons identified in subparagraph 3.3.1.2;
3.4.6 Delaware criminal history record for the applicant, and any persons identified in subparagraph 3.3.1.2;
3.4.7 Federal criminal history record for the applicant, and any persons identified in subparagraph 3.3.1.2;
3.4.8 Statement of compliance and Lottery-approved inspection report for Section (30) Delaware Lottery Accessibility Process, Lottery Rules and Regulations, certifying non-discrimination on the basis of disability in Delaware Lottery programs;
3.4.9 Any and all other information as the Director may require to determine the competence, honesty and integrity of the applicant as required by Title 29 of the Delaware Code.
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 his or her knowledge, information and belief, based on diligent inquiry, the contents of the form or documents so supplied are true.
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.
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.
3.8 Application Evaluation Criteria The Director shall weigh the following factors in evaluation of the application: 3.8.1 The criminal background, if any, of the applicant, or any of its officers, directors, partners, owners, key employees, and sports lottery operations 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.
3.8.5 Whether the person, or any of its officers, directors, partners, owners, 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.
3.8.6 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.
The Director shall weigh the following factors and, as well as other objective business site evaluation criteria and to determine the suitability of applicant business site locations as licensed retail selling locations for sports lottery games: 3.9.1 Customer traffic count
3.9.2 Business hours
3.9.3 Available parking
3.9.4 Trade style (products sold)
3.9.5 Product exposure within the location
3.9.6 Security of sports lottery machines and systems
3.9.7 Nearest licensed retailer of similar trade style
3.9.8 Convenience of accessibility to Lottery products and services within a community or commercial cluster)
A license shall be issued to the applicant if the Director is satisfied, upon evaluation of a sports lottery application as defined in subsection 3.4, and upon further consideration of site evaluation as criteria specified subsection 3.5, and upon further determining 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. At the discretion of the Director, a license may be issued as “conditional” or “probationary” based upon information received or determinations reached during the sports lottery application process.
3.11.3 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.
3.11.6 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. 3.11.7 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. chapter 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. chapter 101.
To the extent provided by law, any information obtained pursuant to this Section 3 shall be held in confidence and not subject to the Delaware Freedom of Information Act, 29 Del. C. chapter 100.
of Technology Providers
4.1. As deemed necessary, the Director shall give public notice of the agency's intent to select technology providers of sports lottery systems that consist of sports wagering products, risk management (bookmaking), operations and support services 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 serve as a technology provider. The licensing of a technology provider shall not serve as the basis of requiring the Director to select the technology provider under the procurement procedures set forth in Chapter 69 of Title 29 of the Delaware Code.
4.2. Each person desiring to obtain a license from the agency as a technology provider shall submit a license application on a form specified and supplied by the agency. Any person or entity who proposes to contract with a sports lottery agent or the Lottery for the provision of goods or services related to sports lottery operations, must obtain a technology provider license pursuant to these Sports Lottery Regulations. The license application shall, among other things:
4.2.3 Require the applicant to disclose the identity of all customers to whom it has furnished sports lottery systems within the three years immediately preceding the date of the application. 4.2.4 Require the applicant to disclose whether the applicant, or any of its present or former officers, directors, owners, partners, key employees, or sports lottery operations 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.
4.2.10 Require persons who are proposing to contract with the agency or a sports lottery agent to provide a copy of their contract proposal. 4.3. Upon request, the applicant shall supplement the information provided in the application form as deemed necessary by the Director.
4.4. To the extent, if any, that the information in the application or the supplemental information provided by the 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.
4.5. The applicant shall cooperate fully with the agency and the DGE in any background investigation of the applicant.
4.6. The 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.
4.7. As soon as the agency has determined that the application form is complete and that the applicant is otherwise qualified, it shall forward the same to the DGE which shall conduct as soon as practicable a background investigation of the applicant, its officers, partners, owners, directors, key employees, and sports lottery operations employees, and report its findings to the agency.
4.8. Notwithstanding any other provision contained herein to the contrary, the Director may determine, upon review of the licensing standards of another state, that such standards are so comprehensive, thorough, and provide similar adequate safeguards, that the license of an applicant in such other state precludes the necessity of a full application and background check. In such case, the Director shall require a limited application and background check, as determined by the Director in his sole discretion, as are necessary to assure that the 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 sports lottery.
4.9. In evaluating applications, the Director shall consider:
4.9.1 Whether the applicant has demonstrated that it has the resources, experience and ability necessary to supply the necessary sports lottery systems as may be required under a contract with the agency. 4.9.2 Any past conduct of the applicant, or any of its present or former officers, directors, partners, owners, key employees, or sports lottery operations employees 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. No license shall be issued to any applicant if any of the persons identified in this subsection have been convicted, within ten years prior to the filing of the application, of any felony, a crime of moral turpitude or a crime involving gambling.
4.9.3 Any findings provided by the DGE following its background investigation.
4.9.7 The degree to which the applicant has supplied accurate and complete information pursuant to the requirements of these regulations. 4.9.8 Whether the applicant is in compliance with the section of Title 29, ch. 48, §4805 (a) (17) that states: “The risk manager must be a bookmaker currently licensed to operate, and operating, sports books in the United States and the sports lottery technology system provider must be licensed to operate lotteries in the United States.”
4.10. A license shall not be issued to a technology provider if the applicant technology provider has any direct or indirect financial interest in an agent licensee or the real or personal property of an agent licensee.
4.11. A license shall be issued to the applicant if the Director is satisfied, upon consideration of the factors specified in subsection 4.9, that the applicant would be a fit technology provider and not pose a threat to the public interest, the reputation of the lottery or to the effective control of the lottery.
4.12. An applicant for a technology provider's 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.
4.13. The agency, with the assistance of the DGE, may require licensed technology providers to annually update information submitted with their initial license application. Back to Top
5.1. The Director shall, pursuant to the procedures set forth in chapter 69 of title 29 of the Delaware Code, enter into contracts with licensed technology providers as he or she shall determine to be appropriate, pursuant to which the technology providers shall furnish to the State, a sports lottery system that results in the efficient and economical operation of the lottery, convenience of the players, and is in accordance with the agents' business plans as approved and amended by the Director. 5.2
All contracts with technology providers who are sports lottery system providers shall include without limitation, provisions to the following effect:
5.2.2 The technology provider shall submit sports 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 sports lottery machines; 5.2.3 For testing, examination and analysis purposes, the technology provider shall furnish working models of sports lottery machines, associated equipment, and documentation at locations designated by the Director. The technology provider shall maintain the current software and sports lottery machines in good working order acceptable to the agency. The technology provider shall pay all costs of any testing, examination, analysis and transportation of the sports lottery machines, which may include the entire dismantling of the machines and some tests that may result in damage or destruction to one 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 technology provider provide specialized equipment or the agency may employ the services of an independent technical laboratory expert to test the sports lottery machine at the technology provider's expense;
5.2.5 The software or other equivalent technology of each sports lottery machine shall be certified to be in compliance with published specifications; 5.2.6 No sports lottery machine shall be put into use prior to certification of its model by the Director.
5.3 All contracts with technology
providers shall include without limitation, provisions to the following effect;
5.3.1 Technology providers 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 Technology providers shall agree to modify their hardware and software as necessary to accommodate sports game changes directed by the agency from time to time; 5.3.3 Technology providers 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
Each sports lottery machine certified by the Director shall bear a unique serial number and shall conform to the exact specifications of the sports lottery machine model tested and certified by the Director.
5.5. Technology providers 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.
5.6. A technology provider shall not distribute a sports lottery machine for placement in the state unless the machine has been approved by the agency. Only licensed technology providers may apply for approval of a sports lottery machine or associated equipment. The technology provider shall submit two copies of sports 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 sports lottery machine or associated equipment.
5.7. The agency may require that two working models of a sports lottery machine be transported to the location designated by the agency for testing, examination, and analysis. The technology provider shall pay all costs of testing, examination, analysis and transportation of such sports lottery machine models, which may include the entire dismantling of the sports lottery machine and tests which may result in damage or destruction to one or more electronic components of such sports lottery machine model. The agency may require that the technology provider provide specialized equipment or the services of an independent technical expert in testing the terminal.
5.8. After each test has been completed, the agency shall provide the sports lottery systems provider with a report that contains findings, conclusions, and pass/fail results. Prior to approving a particular sports lottery machine model, the agency may require a trial period not in excess of sixty (60) days for a licensed agent to test the sports lottery machine. During the trial period, the technology provider may not make any modifications to the sports lottery machine model unless such modifications are approved by the agency.
5.9. The technology provider is responsible for the assembly and initial operation, in the manner approved and licensed by the agency, of all its sports lottery machines and associated equipment. The technology provider may not change the assembly or operational functions of any of its sports lottery machines approved for placement in Delaware unless a "request for modification to an existing sports 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 sports lottery machines after modifications have been made.
5.10. Each sports lottery machine approved for placement in a licensed agent's place of business shall conform to the exact specifications of the sports lottery machine prototype tested and approved by the agency. Any sports lottery machine which does not so conform shall be disconnected from the Delaware sports lottery system until compliance has been achieved. Each sports lottery machine shall at all times operate and be placed in accordance with the provisions of these regulations.
5.11.The following duties are required of all licensed technology providers, without limitation:
5.11.16 Comply with such other requirements as shall be specified by the Director. Back to Top
6.1. Provide a secure location for the placement, operation, and play of all licensed sports lottery machines located on the licensed agent's premises.
6.2. Permit no person to tamper with or interfere with the approved operation of any licensed sports lottery machine without prior written approval of the agency, unless otherwise directed by the Lottery.
6.3. Assure that telephone lines from the central computer system to the licensed sports 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.
6.4. With respect to sports lottery operations, contract only with officers, directors, owners, partners, key employees, and suppliers of sports lottery equipment and paraphernalia authorized by the agency to participate in sports lottery operations within the State of Delaware.
6.5. Ensure that licensed sports 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, if self-service terminals, by the use of surveillance cameras at all times.
6.6. Ensure that licensed sports lottery machines are placed and remain as placed in the specific area of the premises as approved by the lottery. The initial placement and any subsequent relocation of any sports lottery machine require the prior written approval of the agency. 6.7. Monitor sports lottery play and prevent 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.
6.8. 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.
6.9. Maintain at all times sufficient cash for daily operations.
6.10. Video lottery agents authorized to extend credit shall exercise caution and good judgment in extending credit for sports lottery play, and comply with all applicable federal and state laws. 6.11. Exercise caution and good judgment in providing cash for checks presented for sports lottery 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.
6.12. Report promptly all sports lottery machine malfunctions to the appropriate technology provider and notify the agency of any technology provider failure to provide service and repair of such terminals and associated equipment.
6.13. Conduct agency approved advertising and promotional activities related to sports lottery operations.
6.14. 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.
6.15. Conduct sports lottery operations only during those hours established and approved by the Director or designee.
6.16. Assume responsibility for the proper and timely payment to players of winning sports lottery wagers. Winning sports lottery tickets with a value of more than $599 (after deducting the amount of the wager) must be cashed at a video lottery agent’s Sports Book or the Lottery Office. 6.17. 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.
6.18. Attend all meetings, seminars, and training sessions required by the agency.
6.19. Supervise its employees and their activities to ensure compliance with these rules.
6.20. 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 year time limit will be redeemed. No credits or prizes may be redeemed by any person illegally on the agent’s premises. For Sports Lottery Agents who are also Video Lottery Agents, no credits or prizes may be redeemed by any persons who have requested that they be self-banned from the agent’s premises.
6.21. Provide dedicated power and a proper sports lottery environment in accordance with the specifications of the agency. The agent shall permit no person to completely shut off power to an operational sports lottery machine without the prior approval of the agency.
6.22. Furnish to the Director complete information pertaining to any change in ownership of the agent or the owner of the premises or beneficial owner. 6.23. Promptly report to the lottery any violation or any facts or circumstances that may result in a violation of State or Federal law and/or any rules or regulations pursuant thereto, excluding violations concerning motor vehicle laws.
6.24. Conduct sports 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.
6.25. 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 sports lottery, except claims arising from the negligence or willful misconduct of the Director, the State or the employees thereof.
6.26. Maintain all required records.
6.27. 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.
6.28. Keep current on all payments, tax obligations and other obligations to the agency and other licensees with whom sports lottery business is conducted. The agent shall pay the players and transfer the net proceeds to the State lottery fund in conformity with the requirements set forth in these regulations and 29 Del. C. Ch. 48.
6.29. Locate all self-service sports lottery machines within the viewing range of closed circuit television cameras at all times, including both normal business hours and those periods when sports lottery operations are closed. The presence of these cameras is to ensure the integrity of the lottery, the sports lottery operations, and the safety of the patrons. Surveillance tapes will be maintained by the agent according to a schedule established by the Director. 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 Lottery before being placed in operation. 6.30. Comply with such other requirements as shall be specified by the Director. The agent may be required to 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.
6.31. At the Director’s discretion, provide, on a continuing basis, to the Director the names and addresses of all employees who are involved in the daily operation of the sports lottery. These employees will include individuals or their supervisors involved with (1) the security of the sports lottery, (2) the handling or transporting of proceeds from sports lottery, or (3) positions that provide direct access to sports lottery machines. 6.32. Notify the Director on a continuing basis of any change in officers, partners, directors, key employees, sports lottery operations employees, and owners. 6.33. 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. Back to Top
7.1. The Director shall authorize a sports lottery on the agent's premises in conformity with approved operational procedures.
7.2. The sports lottery shall be based on bills, coins, or credits and the wagering limits shall be set by the Lottery in cooperation with the technology provider.
7.3. Each sports lottery ticket shall display the amount wagered and the payout based on the amount wagered.
7.4. Each player shall be at least twenty-one (21) years of age. In the event an underage player attempts to claim any winning payout, the sports lottery agent should treat the wager as void and the underage player shall not be entitled to any winning payouts or a refund of amounts bet. In the event a person illegally on the premises attempts to claim any winning payout, the sports lottery agent will also treat the wager as void and the person shall not be entitled to any winning payouts or a refund of amounts bet. This policy prohibiting persons underage and persons illegally entering the premises from winning prizes shall be prominently displayed on the premises of the sports lottery agent.
7.5. Agents shall redeem credit slips 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 sports lottery wagering. Such procedures shall be modified at the direction of the Director in his or her sole discretion at any time. Players claiming winning payouts may be required to present sufficient identification as required by the agency.
7.6. Credit slips may be redeemed by a player at the designated place on the premises where the sports lottery is located during the one year redeeming period commencing on the date that the last wagered event occurred. 7.7. No credit slip or winning ticket shall be redeemed more than one (1) year from the date that the last wagered event occurred. Funds reserved for the payment of a credit slip or expired winning ticket shall be paid into the State Lottery Fund if unredeemed one year from the date that the last wagered event occurred. The one-year redemption policy in this regulation shall be prominently displayed on the premises of the sports lottery agent.
7.8. No payment for a credit slip may be made unless the credit slip meets the following requirements:
7.8.2 It is not mutilated, altered, unreadable, or tampered with in any manner, or previously paid; 7.8.3 It is not counterfeit in whole or in part; and
7.9. 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. Winning sports lottery tickets with a value of more than $599 (after deducting the amount of the wager) must be cashed at a video lottery agent’s Sports Book or the Lottery Office. 7.10. Liability for Malfunction - The agency and the State of Delaware are not responsible for any sports lottery machine malfunction or for any error by the agent that causes credit to be wrongfully awarded or denied to players.
7.11. Sports lottery machines shall not be operated or available for play on Christmas, or after 4:00 a.m. on Easter.
8.1. The technology provider will provide an accounting mechanism for the sports lottery system as a whole, which mechanism shall achieve compliance with the standards of integrity, security and control established by the agency.
8.2.1 Each agent, unless specifically exempted by the Agency, shall file weekly, monthly, quarterly, and annual reports and statistical data in a format specified by the Director. The data may be used by the Agency to evaluate the financial position and operating performance of individual sports lottery agents and to compile information regarding the performance and trends of the sports lottery industry in the State of Delaware. 8.2.2 Each agent, unless specifically exempted by the Agency, shall at its own expense, cause its annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant licensed to practice in the State of Delaware.
8.3.The agency or its designated agents shall have the right to audit the books and records including without limitation tax returns and IRS withholding and reporting records of any agent and each technology provider. To such end, the agents and technology providers shall fully cooperate with whoever undertakes the audit.
8.4. All proceeds, net of proceeds returned to players, from the operation of the sports lottery shall be electronically transferred daily or weekly at the discretion of the Lottery Director into a designated State Lottery account by the agent. To the extent, if any, that such daily or weekly remission cannot be achieved due to the unavailability of bank services, the remission shall be made on the first day that such services are available. Agents shall furnish to the agency all information and bank authorizations required to facilitate the timely transfer of monies to the State lottery fund. Agents shall provide the agency thirty (30) days advance notice of any proposed account changes in order to assure the uninterrupted electronic transfer of funds.
8.5. The agency is not responsible for resolving net proceeds discrepancies which are differences between actual money collected and the amount shown on the billing statement. Further, the agency is not responsible for the loss or theft of money prior to its deposit in the agency's account in the bank.
8.6. Agents shall comply with all prescribed Federal requirements for tax withholding, recording and reporting, including, without limitation, those requirements relating to the transfer of funds withheld from player winnings from the agents to the tax authorities.
8.7. Any discrepancy regarding settlement of accounts will be resolved by the Director as he or she deems appropriate.
of Sports Lottery Machines
9.1. No sports lottery machine may be placed in operation in Delaware until the technology provider has provided its personnel with sufficient and appropriate training in the service and repair of each of its approved sports lottery machine models.
9.2. Each technology provider shall service and maintain its sports lottery machines, current software, and associated equipment in the manner and condition required by the agency and in accordance with its contractual arrangements. 9.3. Technology providers shall provide the agency or its designee upon request with a master key for access into each locked compartment of each sports lottery machine placed in operation.
10.0 Standards
for Advertising, Marketing and Promotional Materials
10.1. All advertising, marketing and promotional materials, related to the sports lottery or referencing the sports lottery, to be utilized by an agent or person acting on behalf of the agent shall be submitted to the agency for review and approval prior to use, except that such materials need not be submitted for review and approval if identical materials have been previously submitted and approved. Materials are not identical for purposes of this provision if they vary in any respect, such as in the size of a billboard.
10.2. The agency shall review any materials submitted pursuant to this section and approve their use unless in the judgment of the agency such materials, if used, would result in an appearance which reflects adversely on the agency, would reasonably be expected to offend a substantial number of people, contain inaccurate or misleading information, or otherwise be inappropriate.
11.1.1 Failure of the agent to file with the Director the information required pursuant to 29 Del. C. §4820(a); and
11.1.2 For cause, such as, but not limited to falsifying any application for license or report to the agency; failure to report information required by the regulations; the material violation of the regulations; or any conduct by the licensee, or any of its owners, officers, directors, partners, key employees, or sports lottery operations employees, which undermines the public confidence in the sports lottery system or serves the interest of organized gambling or crime and criminals in any manner. A license may be revoked for an unintentional violation of any Federal, State or local law, rule or regulation provided that the violation is not cured within a reasonable time as determined by the Director, or a longer period where the sports lottery agent has made diligent efforts to cure. For purposes of this provision, the licensee is deemed to be familiar with all the provisions of these regulations and unintentional violations shall not include violations which the agent or technology provider asserts are unintentional because of lack of awareness of these regulations. Likewise, for purposes of this provision, diligent efforts to cure shall not constitute a defense to a suspension or revocation of the license arising out of situations where the violation would not have occurred had the licensee exercised diligent efforts to comply with the requirements when they were first applicable
11.2. Prior to the revocation or suspension of any license, the agency shall notify the licensee of the intended revocation or suspension of the license, and the reasons therefor. No revocation or suspension shall be effective until a final order is issued pursuant to the following procedure, except when the public welfare clearly requires emergency action and the agency's order so states. The notice of the intended revocation or suspension shall comply with any applicable requirements of the Delaware Administrative Procedures Act and, at a minimum, afford the licensee with an opportunity for a hearing.
11.3. If the licensee desires a hearing, it shall provide the agency with a written statement within ten days of receipt of the notice which contains the following:
11.3.4 The signature of the licensee or an officer authorized to request the hearing. 11.3.5 A verification by the licensee or counsel for the licensee that the statements contained in the statement are true.
11.4. The Secretary of Finance with respect to petitions filed by agents, and the Director with respect to petitions filed by technology providers, shall appoint a hearing officer within a reasonable time of receipt of the statement referenced in the preceding paragraph. Notice of the hearing shall be given at least 20 days before the date it is to be held.
11.5. The licensee may appear individually, by legal counsel, or by any other duly authorized representative. In the absence of the licensee, written evidence of a representative's authority shall be presented to the hearing officer in a form satisfactory to the hearing officer.
11.6. The licensee or his duly authorized representative, may, with the approval of a hearing officer, waive the hearing and agree to submit the case for decision on the record, with or without a written brief. Such a waiver or agreement shall be in writing and placed in the record.
11.7. The licensee shall be given an opportunity for argument within the time limits fixed by the hearing officer following submission of the evidence. The hearing officer, upon request of the licensee, may accept briefs in lieu of argument. The briefs shall be filed within ten days after the hearing date or within such other time as fixed by the hearing officer.
11.8. The hearing officer may admit any relevant evidence, except that it shall observe the rules of privilege recognized by law. The hearing officer may exclude any evidence which is irrelevant, unduly repetitious, or lacking a substantial probative effect.
11.9. A record shall be made of all hearings and all witnesses shall be sworn and subject to cross examination.
11.10. Following the conclusion of the hearing and within ten days of the receipt of the transcript thereof, or within such other time as fixed by the hearing officer but in no event later than forty-five days following the hearing, the hearing officer shall in proceedings involving agents prepare a final decision, including his or her findings of fact and conclusions of law, and the order signed by the hearing officer shall be final. A copy of said order shall be served upon the licensee and any attorney of record in person or by registered or certified mail. In proceedings involving technology providers, the hearing officer shall submit his or her recommendations to the Director for decision.
11.12 Whoever violates the Lottery chapter 29 Del. C. Ch. 48, or any Lottery rule or regulation duly promulgated there under, or any condition of a license issued pursuant to 29 Del. C. §4805, or any Administrative Order issued pursuant to Lottery statutes or Regulations shall be punishable as follows:
11.12.1 If the violation has been completed, by a civil penalty imposed by Superior Court, which by 29 Del. C. §4823 shall have jurisdiction of civil penalty actions brought pursuant to this section, of not less than $1000 nor more than $10,000 for each completed violation. Each day of a continued violation shall be considered as a separate violation if, on each such day, the violator has knowledge of the facts constituting the violation and knows or should know that such facts constitute or may constitute a violation. Lack of knowledge regarding such facts or violation shall not be a defense to a continued violation with respect to the first day of its occurrence.
11.12.2 If the violation is continuing or there is a substantial likelihood that it will reoccur, the Director may also seek a temporary restraining order, preliminary injunction, or permanent injunction in the Court of Chancery, which shall have jurisdiction of an action for such relief. 11.12.3 In his discretion, the Director may impose an administrative penalty of not more than $1,000 for each administrative penalty for each violation. Each day of continued violation shall be considered as a separate violation if the violator has knowledge of the facts constituting the violation and knows or should know that such facts constitute or may constitute a violation. Lack of knowledge regarding such facts or violations shall not be a defense to a continued violation with respect to the first day of its occurrence. Prior to the assessment of an administrative penalty, written notice of the Director's proposal to impose such penalty shall be given to the violator, and the violator shall have 30 days from receipt of such notice to request a public hearing. Any public hearing, if requested, shall be held prior to the imposition of the penalty and shall be governed by §10125 of Title 29. If no hearing is timely requested, the proposed penalty shall become final and shall be paid no later than 60 days from receipt of the notice of proposed penalty. Assessment of an administrative penalty shall take into account the circumstances, nature, and gravity of the violation, as well as any prior history of violations, the degree of culpability, the economic benefit to the violator resulting from the violation, any economic loss to the State, and such other matters as justice may require. In the event of nonpayment of an administrative penalty within 30 days after all legal appeal rights have been waived or otherwise exhausted, a civil action may be brought by the Director in Superior Court for the collection of the penalty, and for interest, from the date payment was due, attorneys' fees and other legal costs and expenses. The validity or amount of such administrative penalty shall not be subject to review in an action to collect the penalty. Any penalty imposed after a public hearing is held pursuant to this subsection shall be appealable to Superior Court, and such appeal shall be governed by §10142 of Title 29.
11.12.4 In his discretion, the Director may endeavor to obtain compliance with requirements of the Lottery chapter, 29 Del. C. Ch. 48, by written Administrative Order. Such order shall be provided to the responsible party, shall specify the complaint, and propose a time for correction of the violation. It may also provide an opportunity for a public hearing at which the Director shall hear and consider any submission relevant to the violation, corrective action, or the deadline for correcting the violation.
11.13 The Director shall enforce Ch. 48, 29 Delaware Code and any rules, regulations, or Administrative Orders issued there under.
11.14 Any interest, costs or expenses collected by the Lottery under actions instituted by 29 Del. C. §4823 or these regulations shall be appropriated to the State Lottery Office to carry out the purposes of 29 Del. C. Ch. 48.
Employee License Procedure
12.1 Except as required of video lottery agent employees as specified in Section 14 of the Delaware State Lottery Video Lottery & Table Game Regulations, individual employee gaming licenses are not required to operate a sports lottery terminal. Any employee who currently holds a valid video lottery license shall not be required to be re-licensed for the sports lottery. Back to Top