2023 Delaware Code › Title 29 - State Government › Chapter 48. LOTTERIES › Subchapter I. State Lottery › § 4820. Rights and obligations of Director and video lottery agent relating to video lottery machines, sports lottery machines and table game equipment.

§ 4820. Rights and obligations of Director and video lottery agent relating to video lottery machines, sports lottery machines and table game equipment.
(a) All video lottery machines, sports lottery machines and table game equipment shall be at all times subject to state control and the use of any such video lottery machines, sports lottery machines and table game equipment shall occur only with the approval of the Office. All video lottery machines and sports lottery machines shall be owned or leased by the State and shall be obtained from manufacturers licensed under § 4805(a)(17) of this title. All video lottery machines and sports lottery machines shall be leased or purchased under the procedures set forth in Chapter 69 of this title. All table game equipment shall be leased, purchased or used by a video lottery agent only upon the approval of the Office and from manufacturers licensed under § 4805(a)(17) of this title. Any video lottery agent must file with the Director a copy of any current or proposed agreement or disclose any other relationship between the agent, its parents, subsidiaries, related entities, directors, officers or key employees for the sale, lease, maintenance, repair or other assignment to the agent's facility of video lottery machines, sports lottery machines and table game equipment, or any other relationship with any vendor, manufacturer or other party which stands to benefit financially from the possession or use of video lottery machines, sports lottery machines or table game equipment by such agent. Failure to file such information shall constitute grounds for the revocation or suspension of a license. The lottery may own or lease video lottery machines pursuant to this subsection that require the payment of an additional license or proprietary fees and the number of such license or proprietary fee machines at any licensed video lottery agent may not exceed more than 5% of the total number of video lottery machines at the licensed racetrack property unless the Director finds that an additional number of such machines are necessary to increase revenues, will not produce reductions in the overall net proceeds from the lottery, will protect the public welfare, and will ensure the security of the video lottery.
(b) (1) Upon submission by a video lottery agent of a proposed plan for the lease or purchase of video lottery machines in accordance with procedures to be established by the Director, the Lottery Director shall lease or purchase the number, type and kind of video lottery machines necessary for the efficient and economical operation of the lottery, or the convenience of the players and in accordance with the plan of the licensee, provided that no more than 2,500 video lottery machines shall be located within the confines of a racetrack property unless the Director recommends up to an additional 1,500 for each racetrack property, and further provided that the Director may recommend the amendment of such plan where the Director finds that such amendments are necessary to increase revenues, provided such amendments do not produce reductions in the overall net proceeds from the video lottery, protect the public welfare or ensure the security of the video lottery, provided that the maximum number of video lottery machines under this subsection shall not include video lottery machines at each racetrack used exclusively for promotional tournaments in which players are not required to pay any fee to participate. Such recommendations by the Lottery Director are subject to the approval of the Secretary of Finance. No more than 30 promotional tournament machines are permissible at each racetrack. The Director's lease or purchase of video lottery machines under this subsection shall be pursuant to the procedures used for procurement under §§ 6981 and 6982 of this title.
(2) No refund of license fees shall be payable for any unexpired term of a license.
(c) Upon submission by a video lottery agent of a proposed plan for the lease or purchase of sports lottery machines in accordance with procedures to be established by the Director, the Lottery Director shall lease or purchase the number, type and kind of sports lottery machines necessary for the efficient and economical operation of the lottery, or the convenience of the players, and in accordance with the plan of the licensee, provided that the Director may recommend the amendment of such plan where the Director finds that such amendments are necessary to increase revenues, protect the public welfare or ensure the security of the video lottery. The Director's lease or purchase of sports lottery machines under this subsection shall be pursuant to the procedures used for procurement under Chapter 69 of this title.
(d) Each video lottery agent shall be responsible for the security and safekeeping of the video lottery machines, sports lottery machines and table game equipment of which it has physical custody.
(e) The Director shall contract with an independent laboratory, which shall be licensed as a service company, to test video lottery machines, sports lottery machines and table game equipment and related equipment on a periodic basis to ensure that the machines and equipment comply with the requirements of this chapter and any other applicable standards and regulations. The manufacturer, vendor or lessor of such machines and equipment shall pay all costs associated with such testing.
(f) Each video lottery agent shall hold the Director and this State 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 games at a video lottery facility; specifically excluding, however, any claims arising from the negligence or wilful misconduct of the Director, the State or the employees thereof.
(g) Each video lottery agent shall provide access to all records of the licensee and the physical premises of the business or businesses where the agent's lottery activities occur for the purpose of monitoring or inspecting the agent's activities and the lottery games, machines and associated equipment. None of the information disclosed pursuant to this subsection shall be subject to disclosure under the Freedom of Information Act, § 10001 et seq. of this title.
(h) Prior to commencing the operations of any table game in a gaming area, a video lottery agent shall submit to the Office for its approval a detailed floor plan depicting the location of the gaming area in which table game equipment will be located, the proposed arrangement of the table game equipment, and sufficient area to be used by the Office and Division of Gaming Enforcement for their operations at the video lottery facility. Within 30 days, the Office shall approve such plans that satisfy the rules and regulations promulgated by the Office and shall deny such other plans. Amendments to an approved floor plan shall be submitted to the Office for its approval, and the Office shall, within 15 days, approve such amendments that satisfy the rules and regulations promulgated by the Office and shall deny such other plans.
69 Del. Laws, c. 446, §  19;  70 Del. Laws, c. 186, §  1;  71 Del. Laws, c. 253, §  10;  73 Del. Laws, c. 139, §  1;  74 Del. Laws, c. 53, §§  5, 6;  74 Del. Laws, c. 307, §  131;  75 Del. Laws, c. 229, §  6;  77 Del. Laws, c. 28, §§  19, 20;  77 Del. Laws, c. 219, §§  15- 18;  78 Del. Laws, c. 285, §  11;