2011 Delaware Code
Title 29 - State Government
CHAPTER 48. LOTTERIES
Subchapter I. State Lottery
TITLE 29 State Government State Agencies and Offices Not Created by Constitution CHAPTER 48. LOTTERIES Subchapter I. State Lottery § 4801. Statement of purpose.
(a) It is the purpose of this subchapter to establish a state-operated lottery under the supervision of a Director who shall be appointed by the Secretary of Finance with the written approval of the Governor and hold broad authority to administer the system in a manner which will produce the greatest income for the State.
(b) In authorizing a video lottery, it is the further purpose of the General Assembly to:
(1) Provide nonstate supported assistance in the form of increased economic activity and vitality for Delaware's harness and thoroughbred horse racing industries, which activity and vitality will enable the industry to improve its facilities and breeding stock, and cause increased employment; and
(2) Restrict the location of such lottery to locations where wagering is already permitted and/or such immediately adjacent property or properties that are owned by, or immediately adjacent properties that may be acquired by, the video lottery licensee as defined in § 4805(b)(13) of this title, and where controls exist.
59 Del. Laws, c. 348, § 1; 60 Del. Laws, c. 539, § 1; 61 Del. Laws, c. 189, § 1; 69 Del. Laws, c. 446, § 2; 76 Del. Laws, c. 156, § 1.;
§ 4802. State Lottery Office.
A State Lottery Office shall exist as part of the Department of Finance and shall be administered by a Director responsible for the operation of a state lottery. The net proceeds of the state lottery shall be placed in the General Fund of the State.
59 Del. Laws, c. 348, § 1; 60 Del. Laws, c. 539, § 2.;
§ 4803. Definitions.
(a) "Credit slip" shall mean the receipt generated by a video lottery terminal when a player is playing that particular video lottery terminal, or the ticket resulting from a sports lottery game.
(b) "Director," as used in this subchapter, shall mean the Director of the State Lottery Office.
(c) "Employee organization" shall mean any organization that admits or seeks to admit to membership employees of a Delaware video lottery agent and that has as a purpose the representation of such employees in collective bargaining, grievance representation, labor disputes, salaries, wages, rates of pay, hours of employment, or conditions of work.
(d) "Gaming area" shall mean a location in a video lottery facility where gaming activity is conducted at video lottery machines or table games.
(e) "Gaming employee" shall mean 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 allowed to grant variances to policies concerning complimentaries.
(f) "Gaming excursion" shall mean an arrangement the purpose of which is to induce any person, selected or approved for participation therein on the basis of said person's ability to satisfy a financial qualification obligation related to said person's ability or willingness to gamble or on any other basis related to said 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 thereof.
(g) "Gaming room service employee" shall mean a person employed to perform services or duties in a video lottery facility, who has access to the gaming area or restricted gaming area, but who is not included within the definition of "key employee" or "gaming employee".
(h) "Gross table game revenue" shall mean 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.
(i) "Key employee" shall mean 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, 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 this subchapter, 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.
(j) "Lottery" or "state lottery" or "system" shall mean the public gaming systems or games established and operated pursuant to this subchapter and including all types of lotteries.
(k) "Net moneys" shall mean all moneys received from the sale of lottery tickets after first deducting sales agent commissions and payment of prizes under $600.
(l) "Office" shall mean the State Lottery Office established by this subchapter.
(m) "Poker revenue" shall mean 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.
(n) "Restricted gaming area" shall mean the cashier's cage, the count room, the cage booths and runway areas, the interior of table game pits, the surveillance room and catwalk areas, the video lottery machine repair room and any other area designated by the Director as a restricted gaming area.
(o) "Sports lottery" shall mean a lottery in which the winners are determined based on the outcome of any professional or collegiate sporting event, including racing, held within or without the State, but excluding collegiate sporting events that involve a Delaware college or university and amateur or professional sporting events that involve a Delaware team.
(p) "Sports lottery machine" shall mean any machine in which bills, coins or tokens are deposited in order to play a sports lottery game. A machine shall be considered a sports lottery machine notwithstanding the use of an electronic credit system making the deposit of bills, coins or tokens unnecessary.
(q) "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.
(r) "State Lottery Fund" shall mean those moneys derived from the sale of state lottery tickets and deposited in the state account of that name and those funds appropriated for the start-up costs of the system.
(s) "Table game" shall mean 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, keno 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.
(t) "Table game equipment" shall mean 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.
(u) "Table game win or loss" shall mean the value of gaming chips and cash won from patrons at gaming tables 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.
(v) "Video lottery" shall mean any lottery conducted with a video lottery machine or a network of linked video lottery machines with an aggregate progression prize or prizes.
(w) "Video lottery facility" shall mean a building containing a gaming area.
(x) "Video lottery machine" shall mean any machine in which bills, coins or tokens are deposited in order to play in a 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.
59 Del. Laws, c. 348, § 1; 60 Del. Laws, c. 9, § 1; 61 Del. Laws, c. 169, § 1; 61 Del. Laws, c. 189, § 1; 69 Del. Laws, c. 446, § 3; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 184, § 1; 71 Del. Laws, c. 253, §§ 1, 2; 75 Del. Laws, c. 89, § 154; 75 Del. Laws, c. 229, § 1; 77 Del. Laws, c. 28, § 2; 77 Del. Laws, c. 219, §§ 2, 3, 4; 77 Del. Laws, c. 329, § 65; 78 Del. Laws, c. 76, § 68.;
§ 4804. Director -- Appointment; qualifications; salary.
(a) The State Lottery Office shall be administered and supervised by a Director who shall be a person qualified by business experience and training to supervise the operation of a public gaming system in a manner which will produce the greatest income for the State. The Director shall be appointed by the Secretary of Finance with the written approval of the Governor.
(b) The qualifications of the person appointed as Director shall be as follows:
(1) Five or more years experience as the head of an autonomous business, division or independent segment of a large company or governmental agency having to do with public gaming. The position or positions held should have broad authority and carry major responsibility; except that experience in a public utility or other monopolistic enterprise does not meet this requirement. There shall be positive evidence that the company, division or independent segment of a large company or government agency was well managed during the tenure of the prospective Director;
(2) Shall be in good health, shall have a good reputation, particularly as a person of honesty and integrity, and shall be able to pass a thorough background investigation prior to appointment;
(3) Shall not hold political office in the government of the State either by election or appointment while serving as Director, nor shall anyone who holds elected or appointed office in the government of the State be appointed as Director until the person has completed serving the full term to which the person was elected or appointed. The Director shall be a citizen of the United States, and must become a resident of the State within 90 days of appointment.
(c) The Director shall serve on a full-time basis and shall not be engaged in any other profession or occupation. The Director shall receive such salary as provided by law.
59 Del. Laws, c. 348, § 1; 60 Del. Laws, c. 93, § 1; 60 Del. Laws, c. 539, § 3; 70 Del. Laws, c. 186, § 1.;
§ 4805. Director -- Powers and duties.
(a) The Director shall have the power and the duty to operate and administer the state lottery and to promulgate such rules and regulations governing the establishment and operation of the lottery as the Director deems necessary and desirable in order that the lottery be initiated at the earliest feasible time and in order that the system shall produce the maximum amount of net revenues consonant with the dignity of the State and the general welfare of the people. The rules shall provide for all matters necessary or desirable for the efficient and economical operation and administration of the system and for the convenience of the purchasers of lottery tickets and the holders of winning tickets, and the players of the the video lottery, the sports lottery and table games including, but not limited to, the following:
(1) Type and number of games to be conducted;
(2) Price or prices of tickets for any game;
(3) Numbers and sizes of the prizes on the winning tickets;
(4) Manner of selecting the winning tickets;
(5) Manner of payment of prizes to the holders of winning tickets;
(6) Frequency of the drawings or selections of winning tickets;
(7) Number and types of locations at which tickets may be sold;
(8) Method to be used in selling tickets;
(9) Licensing of agents to sell tickets; provided, that, no person under the age of 18 shall be licensed as an agent;
(10) Manner and amount of compensation, if any, to be paid to licensed ticket sales agents necessary to provide for the adequate availability of tickets to prospective buyers and for the convenience of the public;
(11) Apportionment of the total revenues accruing from the sale of tickets among:
a. Payment of prizes to the holders of winning tickets;
b. Payment of costs incurred in the operation and administration of the state lottery system, including the expenses of the office and the costs resulting from any contract or contracts entered into for promotional, advertising or operational services or for the purchase or lease of gaming equipment and materials;
c. Repayment of the moneys appropriated to the State Lottery Fund pursuant to § 3 of 59 Del. Laws, c. 348; and
d. Payment of earnings to the General Fund of the State;
Provided, that no less than 30 percent of the total revenues accruing from the sale of tickets or shares shall be dedicated to subparagraph d. of this paragraph;
(12) Such other matters necessary or desirable for the efficient and economical operation and administration of the game and for the convenience of the purchasers of tickets and the holders of winning tickets and the players of the video lottery, the sports lottery and table games;
(13) Value of bills, coins or tokens needed to play the video lottery machines, sports lottery machines and table games;
(14) Licensing of agents for video lotteries;
(15) Payout from video lottery machines, provided that such payouts shall not be less than 87% on an average annual basis, and further provided that video lottery agents may return a payout greater than 87% but not greater than 95% upon 10 days written notice to the Director, and further provided that video lottery agents may, with the approval of the Lottery Director, return a greater payout percentage than 95%;
(16) A licensure requirement and enforcement procedure for officers, directors, key employees, gaming employees, gaming room service employees, sport lottery operations employees, and persons who own directly or indirectly 10% or more of such agent, in accordance with § 4828 of this title;
(17) A licensure requirement and enforcement procedure for service companies in accordance with § 4829 of this title;
(18) Standards for advertising, marketing and promotional materials used by video lottery agents;
(19) Regulations and procedures for the accounting and reporting of the payments required under §§ 4815 and 4819 of this title;
(20) The registration, kind, type, number and location of video lottery machines, sports lottery machines and table games on the licensee's premises, subject to the Director's obligations set forth in § 4820(b) of this title;
(21) The on-site security arrangements for video lottery agents;
(22) Requiring the reporting of information about the video lottery agent, its employees, vendors and finances necessary or desirable to ensure the security of the video lottery system. None of the information disclosed pursuant to this subsection shall be subject to disclosure under the Freedom of Information Act, §§ 10001-10005 of this title;
(23) The reporting and auditing of financial information of licensees including, but not limited to, the reporting of profits or losses incurred by licensees and the reporting by licensees of such employment and payroll information as is necessary for the Director to determine compliance with § 10148(1) of Title 3 or § 100048 of Title 3 as the case may be. None of the information disclosed pursuant to this subsection shall be subject to disclosure under the Freedom of Information Act, §§ 10001-10005 of this title;
(24)a. A registration requirement and enforcement procedure for any employee organization representing or seeking to represent employees who are employed by a Delaware video lottery agent. Any employee organization may at any time file with the office an application for registration as an employee organization. However, an employee organization shall be required to file such registration application within 10 business days after it secures a signed authorization card from any employee who is employed by a Delaware video lottery agent.
Any registration statement filed by an employee organization after the signature of an authorization card but prior to the employee organization's petition for election shall not be subject to disclosure by the Lottery Office to any video lottery agent;
b. Every key employee of an employee organization shall be required to register with the office at the same time as the application for registration is filed under subparagraph a. of this paragraph or within 30 days after the date on which such individual is elected, appointed or hired, whichever is later;
c. The application for registration by an employee organization or key employee of such employee organization may be denied or registration revoked under the following circumstances:
1. If such employee organization or key employee of such employee organization is in violation of standards established under the Labor-Management Reporting and Disclosure Procedure Prohibition Against Certain Persons Holding Office, 29 U.S.C 504(a);
2. The applicant's competence, honesty or integrity pose a threat to the public interest of the State or to the reputation of or effective regulation and control of the lottery based on the applicant's associations or by virtue of the fact that the applicant has been convicted of a felony crime of moral turpitude or has been arrested for an act constituting racketeering under § 1502(9)a., b.2. or b.4. through 10. of Title 11 within 10 years prior to applying for registration hereunder or at any time thereafter. Any employee or employee organization denied registration based on an arrest for an act constituting racketeering under § 1502(9)a., b.2. or b.4. through 10. of Title 11 may apply for reconsideration of registration if subsequently acquitted or a nolle prosequi is entered or the charge is otherwise dismissed. In such instances, the Lottery Office shall reconsider the applicant's registration based on the criteria previously set forth in this subsection;
3. The organization or individual has knowingly made or caused to be made any written statement to any representative of the office or the Delaware State Police or any oral response to an official inquiry by the office, its employees or agents which was at the time and in light of circumstances under which it was made false or misleading;
4. The organization or key employee thereof holds or obtains a direct financial interest in any video lottery agent, provided the employee organization is provided a 30-day period to divest of any such direct financial interest.
The Delaware State Police shall conduct the background checks required by this paragraph. The failure of any key employee to satisfy the requirements of paragraph (a)(24)c.1. through 4. of this section may constitute grounds for suspension of the registration of the employee organization if the organization does not remove the key employee from the key employee's duties as defined in § 4803(i) of this title. The employee organization will be given a reasonable opportunity to remove or replace any key employee found to be in violation of paragraph (a)(24)c.1. through 4. of this section;
d. All registration statements filed under this paragraph shall be valid for a 1-year period and a renewed registration form or an updated supplemental registration form must be filed annually. The entity or individual filing such form is under a continuing duty to promptly notify the Director of any changes in disclosed information;
e. The Secretary of Finance shall, within a reasonable time, if requested by the Director, appoint a hearing officer to determine whether the application for registration shall be denied or the registration suspended or revoked. The hearing officer shall be required to hold a hearing in conformance with the requirements of § 10131 of this title. In any hearing, the Delaware Uniform Rules of Evidence shall be in effect. The denial of an application of registration or the suspension or revocation of a registration shall be bound by the provisions of §§ 10133 and 10134 of this title. The hearing officer's decision to deny an application of registration or to suspend or revoke a registration shall be appealable to the Superior Court under the Delaware Administrative Procedures Act [Chapter 101 of this title]. All applications for registration shall be deemed approved unless the Director notifies the applicant within 60 days of his or her decision not to approve and to appoint a hearing officer under this paragraph, or unless extenuating circumstances require a longer period, in which case the Director shall act with all deliberate speed to complete the process. Any employee organization may continue to provide services to employees of a Delaware video lottery agent during the review of the application process and the appeal process, except where the employee organization is found in violation of paragraph (a)(24)c.4. of this section or there has been a previous violation of paragraph (a)(24)c.1. through 3. of this section by the employee organization within the previous 10 years;
f. Information requested in the application of registration provided for under this paragraph shall be adopted as part of the office's official rules and regulations upon notice and opportunity for a hearing under the Delaware Administrative Procedures Act [Chapter 101 of this title];
(25) The Director shall adopt procedures under the Delaware Administrative Procedures Act for employment investigations of the honesty, integrity, reputation and associations of office employees in order to determine that the employee's employment does not pose a threat to the public interest of the State or the integrity of the office. The procedures and any rules and regulations shall require any person seeking employment for compensation with the office for a position which has direct access to lottery ticket sales agents, video lottery agents or vendors to submit his or her fingerprints and other relevant information in order to obtain the individual's entire federal and state criminal history record. The Delaware State Police shall conduct the investigations required under such rules and regulations. The rules and regulations shall require new employees to submit fingerprints for purposes of the state and federal criminal history checks;
(26) Type and number of sports lottery games to be conducted, the price or prices for any sports lottery games, the rules for any sports lottery games, and the payout and manner of compensation to be paid to winners of sports lottery games;
(27) Type and number of table games to be conducted, the price or prices for any table games, the rules for any table games, the payout and manner of compensation to be paid to winners of table games, and the minimum and maximum wagers for any table games;
(28) The regulations and procedures for the display and presentation of messages concerning responsible gaming and the regulations, procedures and training for identification of and assistance to compulsive gamblers;
(29) The provision of complimentary services, gifts, transportation, cash, food, nonalcoholic beverages, entertainment or any other thing of value by a video lottery agent to a guest;
(30) The procedures for the review and evaluation of licensing applications, including the forms of applications, procedures for fingerprinting and other means of identification, procedures for hearings, and grounds and procedures for the approval, denial, revocation or suspension of a license;
(31) Procedures relating to internal management controls of video lottery agents, including accounting controls and employee and supervisory organizational charts and responsibilities; and
(32) Standards for the manufacture, sale, distribution, maintenance, repair, and servicing of video lottery machines and table game equipment.
(b) The Director shall also have the power and it shall be the Director's duty to:
(1) Appoint such deputy directors as may be required to carry out the functions and duties of the office. Each deputy director shall have had 3 years management experience in areas pertinent to the prospective responsibilities and an additional 3 years of experience in the same field.
(2) Within the limit of the funds made available in § 3 of 59 Del. Laws, c. 348, and proceeding from the sale of lottery tickets and generated by the operations of video lottery agents, appoint such professional, technical, and clerical assistants and employees as may be necessary to perform the duties imposed upon the office by this subchapter.
(3) In accordance with this subchapter, license as agents to sell lottery tickets persons who will best serve, by location or accessibility, the public convenience and promote the sale of lottery tickets. The Director may require a bond from every agent so licensed in such amount as the Director deems necessary. Every licensed agent shall prominently display the agent's license or a copy thereof.
(4) Enter into contracts for the operation of any game or part thereof and into contracts for the promotion of the game or games. This authorization is to be construed to include, but not be limited to, contracting with any racing or other sporting association to conduct sporting events within any racetrack or sports field in the State, the outcome of which shall determine the winners of a state game or, as an alternative, to affiliate the determination of the winners of a game with any racing or sporting event held within or without the State, and, including agreements with other state, provincial or international lotteries for participation in lottery games. All contracts for other than professional services in an amount greater than $2,000 shall be awarded to the lowest responsible bidder in the manner prescribed by state bidding laws. No contract awarded or entered into by the Director may be assigned by the holder thereof except by specific approval of the Director.
(5) Make arrangements for any person or organization, including banks, to perform such functions, activities or services in connection with the operation of the system as the Director may deem advisable.
(6) Suspend or revoke any license issued pursuant to this subchapter or the rules and regulations promulgated hereunder.
(7) Certify and report monthly to the State Treasurer the total lottery revenues, prize disbursements and other expenses for the preceding month, and to make an annual report to the Governor and the General Assembly, which report shall include a full and complete statement of revenues, prize disbursements and other expenses and recommendations for such changes in this subchapter as the Director deems necessary or desirable.
(8) Report immediately to the Governor and members of the General Assembly any matters which shall require immediate changes in the laws of the State in order to prevent abuses and evasions of this subchapter or the rules and regulations promulgated hereunder or to rectify undesirable conditions in connection with the administration or operation of the gaming system. Such a report shall be disclosed to the public immediately upon issuance.
(9) Carry on a continuous study and investigation of the system:
a. For the purpose of ascertaining any defects in this subchapter or in the rules and regulations issued hereunder by reason whereof any abuses in the administration and operation of the lottery or any evasion of this subchapter or the rules and regulations may arise or be practiced;
b. For the purpose of formulating recommendations for changes in this subchapter and the rules and regulations promulgated hereunder to prevent such abuses and evasions;
c. To guard against the use of this subchapter to benefit organized gambling and crime or criminals in any manner whatsoever; and
d. To insure that this law and the rules and regulations shall be in such form and be so administered as to serve the true purpose of this subchapter.
(10) Make a continuous study and investigation of:
a. The operation and administration of similar laws which may be in effect in other states and countries;
b. Any literature on the subject which from time to time may be published or available;
c. Any federal laws which may affect the operation of the lottery; and
d. The reaction of Delaware citizens to existing and potential features of the games with a view to recommending or effecting changes that will tend to serve the purposes of this subchapter.
(11) Make available to the State Auditor or the State Auditor's representative such information as may be required to perform an annual audit as prescribed in Chapter 29 of this title.
(12) Establish state-operated sales offices, without limit as to number or location, as the Director shall deem suitable and economical in order to make lottery tickets more available to the public, which offices shall be operated solely from funds generated by the lotteries permitted by this subchapter.
(13) License as video lottery agents each person, corporation or association which, in 1993, held either a horse racing meet pursuant to Title 3 or Title 28 or a harness horse racing meet pursuant to Title 3 and who satisfies such fitness and background standards as the Director may promulgate pursuant to subsection (a)(16) of this section. In the event that there shall have been or shall be a change of ownership or such person, corporation or association after the close of the 1993 racing meet then the issuance by the Director of a license to serve as a video lottery agent shall be conditioned upon the Director's determination that such person, corporation or association shall have met the requirements of § 4806(a)(1)-(4) and (b) of this title and satisfies such fitness and background standards as the Director may promulgate pursuant to subsection (a)(16) of this section. Change of ownership occurring after the Director has issued a license shall automatically terminate the license 90 days thereafter unless the Director has determined after application to issue a license to the new owner(s) because the new owner(s) have met the requirements of § 4806(a)(1)-(4) and (b) of this title and satisfied such fitness and background standards as the Director may promulgate pursuant to subsection (a)(16) of this section. Any license granted pursuant to this subsection is a privilege personal to the video lottery agent and is not a legal right. A license granted or renewed pursuant to this subsection may not be transferred or assigned to another person, nor may a license be pledged as collateral. For purposes of this subsection, "a change of ownership" shall have occurred if more than 20 percent of the legal or beneficial interests in such person, corporation or association shall be transferred, whether by direct or indirect means.
(14) Whenever the Director deems necessary, examine all accounts, bank accounts, financial statements and records of the licensee in a licensee's possession or under its control in which it has an interest and the licensee must authorize all 3rd parties, including parents, subsidiaries or related entities, in possession or control of the accounts or records of the licensee to allow examination of any of those accounts or records by the Director. None of the information disclosed pursuant to this subsection shall be subject to disclosure under the Freedom of Information Act, §§ 10001-10005 of this title.
(15) Subpoena witnesses and compel the production of books, papers and documents of a licensee in connection with any hearings of the Director and may administer oaths or affirmations to the witnesses whenever, in the judgment of the Director, it may be necessary for the effectual discharge of duties.
If any person refuses to obey any subpoena or to testify or to produce any books, papers or documents, then the Director may apply to the Superior Court of the county in which the Director may be sitting and, thereupon, the Court shall issue its subpoena requiring the person to appear and testify or to produce the books, papers and documents before the Director. Whoever fails to obey or refuses to obey a subpoena of the Superior Court shall be guilty of contempt of court and shall be punished accordingly. False swearing on the part of any witness shall be deemed perjury and shall be punished as such.
(16) Bar, pursuant to §§ 4834 and 4835 of this title, any person from entering the premises of a video lottery agent or from participating in any capacity in the play of any table game, sports lottery game or video lottery game, and procure such assistance from video lottery agents as is appropriate to enforce any such bar.
(17) Impose reasonable fees, as set by the Director and payable to the Office, upon applicants for licenses pursuant to §§ 4828 and 4829 of this title for the conduct of the review and investigation of the applicant, such fees to approximate and reasonably reflect all costs necessary to defray the expenses of the lottery and Division of Gaming Enforcement.
(18) Require video lottery agents to submit regular internal control submissions, which shall contain a narrative description of the internal control system to be utilized by the video lottery facility, including, but not limited to:
a. Accounting controls, including the standardization of forms and definition of terms to be utilized in the gaming;
b. Procedures, forms and, where appropriate, formulas covering the calculation of hold percentages; revenue drop; expense and overhead schedules; complimentary services;
c. Job descriptions and the system of personnel and chain-of-command, establishing a diversity of responsibility among employees engaged in gaming operations and identifying primary and secondary supervisory oversight responsibilities; and personnel practices;
d. Procedures within the cashier's cage for the receipt, storage and disbursal of chips, cash, and other cash equivalents used in wagering; the cashing of checks; the redemption of chips and other cash equivalents used in gaming;
e. Procedures for the collection and security of moneys at the gaming tables;
f. Procedures for the transfer and recordation of chips between the gaming tables and the cashier's cage and the transfer and recordation of moneys within the facility;
g. Procedures for the transfer of moneys from the gaming tables to the counting process and the transfer of moneys within the facility for the counting process;
h. Procedures and security for the counting and recordation of table game revenue;
i. Procedures and security standards for the handling and storage of gaming apparatus, including cards, dice, machines, wheels and all other gaming equipment;
j. Procedures and rules governing the conduct of particular games and the responsibility of casino personnel in respect thereto;
k. Procedures for the security, storage and recording of cash, chips, and cash equivalents utilized in gaming operations.
(c) The license granted pursuant to subsection (b)(13) of this section may be revoked or suspended for cause upon 30 days' written notice to the licensee or due to a change in ownership as set forth in subsection (b)(13) of this section, but shall otherwise not be subject to expiration or termination. "Cause" shall by way of example and not by limitation include falsifying any application for license or report required by the rules and regulations, the failure to report any information required by the rules and regulations, the material violation of any rules and regulations promulgated by the Director or any conduct by the licensee which undermines the public confidence in the video 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 video lottery agent has made diligent efforts to cure. The Secretary of Finance shall within a reasonable time, if requested, appoint a hearing officer to hold a hearing to determine whether the license should be revoked or suspended. The hearing officer's decision revoking or suspending the license shall be appealable to the Superior Court under the provisions of the Administrative Procedures Act. Any decision of the Director relating to the business plan or the number of video lottery machines to be awarded to licensees under § 4820(b) of this title shall be appealable under the Administrative Procedures Act in the manner of a case decision. Notwithstanding the foregoing, nothing in this subsection shall otherwise prohibit the termination or revocation of a license in accordance with the rules and regulations adopted hereunder.
59 Del. Laws, c. 348, § 1; 61 Del. Laws, c. 189, § 1; 69 Del. Laws, c. 446, §§ 4-8, 10-13; 70 Del. Laws, c. 167, § 1; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 184, § 2; 71 Del. Laws, c. 253, §§ 3-5; 74 Del. Laws, c. 53, § 1; 77 Del. Laws, c. 28, §§ 3-9; 77 Del. Laws, c. 219, §§ 5-11.;
§ 4806. Lottery sales agents -- Qualifications; prohibitions.
(a) No license as an agent to sell lottery tickets shall be issued to any person to engage in business exclusively as a lottery ticket sales agent except those persons hired to staff the State Lottery Office or a state-operated sales office. Before issuing a license to an agent, the Director shall consider such factors as:
(1) Financial responsibility and security of the person and the person's business or activity;
(2) Accessibility of the person's place of business or activity to the public;
(3) Sufficiency of existing licenses to serve the public convenience; and
(4) Volume of expected sales.
(b) If the Director shall find that the experience, character and general fitness of the applicant are such that the participation of such a person as a lottery ticket sales agent will be consistent with the public interest, convenience and the purposes of this subchapter, the Director shall thereupon grant a license.
For the purposes of this section, the term "person" shall be construed to mean and shall include an individual, association, corporation, club, trust, estate, society, company, joint stock company, receiver, trustee, assignee, referee or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals. "Person" shall also be construed to mean and include all departments, commissions, agencies and instrumentalities of the State, including counties and municipalities and agencies and instrumentalities thereof.
59 Del. Laws, c. 348, § 1; 61 Del. Laws, c. 189, § 1; 70 Del. Laws, c. 186, § 1.;
§ 4807. Lottery sales agents -- Authorization of agents.
Notwithstanding any other provision of law, any person licensed as provided in this subchapter is hereby authorized and empowered to act as a lottery ticket sales agent or a video lottery agent as the case may be.
59 Del. Laws, c. 348, § 1; 61 Del. Laws, c. 189, § 1; 69 Del. Laws, c. 446, § 14.;
§ 4807A. Fingerprinting procedure required.
(a) Any person seeking a license from the State Lottery Office shall be required to submit fingerprints and other necessary information in order to obtain the following:
(1) A report of the individual's entire criminal history record from the State Bureau of Identification or a statement from the State Bureau of Identification that the State Bureau of Identification Central Repository contains no such information relating to that person; and
(2) A report of the individual's entire federal criminal history record pursuant to the Federal Bureau of Investigation appropriation of Title II of Public Law 92-544. The State Bureau of Identification shall be the intermediary for the purposes of this section and the State Lottery Office shall be the screening point for the receipt of said federal criminal history records.
(b) All information obtained pursuant to subsection (a) of this section shall be forwarded to the State Lottery Office, which shall access the information and make a determination of suitability for licensure. The person seeking licensure shall be provided with a copy of all information forwarded to the State Lottery Office pursuant to this subsection. Information obtained under this subsection is confidential and may only be disclosed to the Director and Deputy Director of the State Lottery Office. The State Bureau of Identification may release any subsequent criminal history to the State Lottery Office.
(c) Costs associated with obtaining criminal history information shall be paid by the person seeking licensure.
(d) A person seeking licensure shall have an opportunity to respond to the State Lottery Office regarding any information obtained pursuant to subsection (b) of this section prior to a determination of suitability for licensure. The grounds upon which a person seeking licensure may be denied consideration for a license include, but are not limited to:
(1) A conviction of a felony in this State or any other jurisdiction; or
(2) A conviction of any crime involving gambling or a crime of moral turpitude within 10 years prior to applying for a license or at any time subsequent to the granting of a license.
(e) Upon making its determination of suitability for licensure, the State Lottery Office shall forward the determination to the person seeking a license.
(f) Any person seeking a license with the State Lottery Office who has submitted to a criminal background check in this or any other state within the previous 12 months shall not be required to submit to another criminal background check; provided, however, that the person submits (1) the results of such previous criminal background check, including any previous federal criminal background check, and (2) a reference from the person's most recent employer, if any, covering the previous 12 months.
(g) The State Lottery Office shall, in the manner provided by law, promulgate regulations necessary to implement this subchapter. These regulations shall include, but are not limited to:
(1) Establishment, in conjunction with the State Bureau of Identification, of a procedure for fingerprinting persons seeking licensure with the State Lottery Office and providing the reports obtained pursuant to subsection (a) of this section;
(2) Establishment of a procedure to provide confidentiality of information obtained pursuant to subsection (a) of this section and of the determination of suitability for licensure.
70 Del. Laws, c. 167, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4808. Nonassignability of prizes.
No right of any person to a prize or a portion of a prize shall be assignable; except that payment of any prize shall be made to the estate of a deceased prize winner; and except that any person pursuant to an appropriate judicial order may be paid the prize, or portion thereof, to which the winner is entitled. The Director shall be discharged of all further liability upon payment of a prize pursuant to this section.
59 Del. Laws, c. 348, § 1; 64 Del. Laws, c. 383, § 1.;
§ 4809. Restrictions on ticket sales; penalties.
(a) No person shall sell a ticket at a price greater than that fixed by rule or regulation of the Director. No person other than a licensed lottery sales agent shall sell lottery tickets or shares, except that nothing in this section shall be construed to prevent any person from giving lottery tickets to another as a gift or bonus.
(b) Any person convicted of violating this section shall pay a fine not exceeding $500.
59 Del. Laws, c. 348, § 1.;
§ 4810. Sales to certain persons prohibited; penalties.
(a) No person who is under the age of 18 shall purchase a lottery ticket. No person who is under the age of 21 shall wager on the video lottery, sports lottery or table games in a video lottery facility. Whoever has not reached the specified age and has violated this subsection shall be guilty of a misdemeanor.
(b) No ticket shall be sold to any person under the age of 18 years, but this shall not be deemed to prohibit the purchase of a ticket for the purpose of making a gift by a person 18 years of age or older to a person less than that age.
(c) No licensed video lottery agent or employee of a video lottery agent shall allow a person under the age of 21 to wager on the video lottery, table games or the sports lottery.
(d) A violation of subsection (b) or (c) of this section shall be a misdemeanor, except that the establishment of the following facts shall constitute a defense to any prosecution therefor:
(1) That the underage person presented proof of age or photographic identification that would lead a reasonable person to believe that the underage person was over the minimum age required in this section.
(2) That the appearance of the underage person was such that an ordinary prudent person would believe that the person was over the minimum age required in this section.
(e) No ticket shall be purchased by and no prizes received by or awarded to any officers or employees of the State Lottery Office or any member of their immediate households. Any person convicted of violating this section shall forfeit any prize money so obtained and shall be sentenced to not less than 1 year in jail and pay a fine of no less than $5,000.
59 Del. Laws, c. 348, § 1; 60 Del. Laws, c. 539, § 4; 66 Del. Laws, c. 367, § 2; 69 Del. Laws, c. 446, § 15; 70 Del. Laws, c. 186, § 1; 77 Del. Laws, c. 221, § 10.;
§ 4811. Jurisdiction in Superior Court.
The Superior Court shall have exclusive jurisdiction of offenses under this subchapter, except for offenses under § 4810 of this title.
59 Del. Laws, c. 348, § 1; 61 Del. Laws, c. 189, § 1; 70 Del. Laws, c. 186, § 1; 77 Del. Laws, c. 221, § 11.;
§ 4812. Disposition of unclaimed prize money.
Unclaimed prize money for the prize on a winning ticket shall be retained by the Director for the person entitled thereto for 1 year after the drawing or event in which the prize was won. If no claim is made for said money within such year, the prize money shall be reverted to the State Lottery Fund.
59 Del. Laws, c. 348, § 1; 60 Del. Laws, c. 539, § 5; 66 Del. Laws, c. 303, § 152.;
§ 4813. Prizes to minors.
If the person entitled to a prize or any winning ticket is under the age of 14 years, the Director may direct payment of the prize by delivery to an adult member of the minor's family or a guardian of the minor a check or a draft payable to the order of the minor. The Director shall be discharged of all liability upon payment of a prize to a minor pursuant to this section.
59 Del. Laws, c. 348, § 1.;
§ 4814. Transfer of funds and transaction records between agents and the State.
The Director may, at the Director's discretion, require any or all lottery ticket sales agents to deposit to the credit of the State Lottery Fund in banks designated by the Director all or part of the moneys received by such agents from the sale of lottery tickets and to file with the Director or the Director's designated agents reports of their receipts and transactions in the sale of lottery tickets in such form and containing such information as the Director may require. The Director or a representative shall make such arrangements with any licensed sales agent.
59 Del. Laws, c. 348, § 1; 70 Del. Laws, c. 186, § 1.;
§ 4815. State Lottery Fund.
(a) All moneys received from the sale of lottery tickets shall be accounted for to the State Treasurer and all net moneys shall be placed into a special account known as the State Lottery Fund. From the Fund, the Director shall first pay for the operation and administration of the lottery as authorized in this subchapter and thereafter shall pay as prizes not less than 45% on the average of the total amount of tickets which have been sold and are scheduled for sale throughout the games, which percentage shall include prizes already awarded or to be awarded. The total of payments for operations and administration of the lottery shall not exceed 20% of the gross amount received from the sale of tickets. The remaining moneys shall accumulate in the State Lottery Fund for the payments of operations and administration costs and on a monthly basis, or more frequently if required by the Director, there shall be placed into the General Fund of the State a payment of earnings provided that no less than 30% of the total revenues accruing from the sale of tickets or shares shall be so dedicated. In the event that the percentage allocated for operations (including prize payments) generates a surplus, said surplus shall be allowed to accumulate to an amount not to exceed $ 1,000,000. On a quarterly basis, the Director shall report to the Secretary of Finance any surplus in excess of $ 1,000,000 and remit to the General Fund of the State the entire amount of those surplus funds in excess of $ 1,000,000.
(b) All proceeds, net of proceeds returned to players pursuant to paragraph (b)(1) of this section, from the operation of the video lottery shall be electronically transferred daily or weekly at the discretion of the Lottery Director into a designated State Lottery account by the agent, and transferred to the State Lottery Fund by the Lottery on a daily or weekly basis and shall be applied as follows:
(1) Proceeds returned to players. -- A portion of such proceeds, but not less than 87% of the total proceeds on an average annual basis received from the operation of a video lottery, shall be retained by and returned to the players under rules prescribed by the Director. Proceeds returned to players in excess of the payout authorized pursuant to § 4805(a)(15) of this title shall be the sole responsibility of the video lottery agent and the State Lottery's proceeds shall not be reduced on account of such excess payment. Subject to the recommendations of the Lottery Director, and approval of the Secretary of Finance, a video lottery agent may chose to offer free promotional play to players. The amount of free promotional play permitted shall be recommended by the Lottery Director and approved by the Secretary of Finance. The amount of money given away as free promotional play and used by players shall not be included in the amounts remaining after all payments to players. If the amount of money given away as free promotional play by a video lottery agent and used by players exceeds the amount authorized by the Lottery Director and the Secretary of Finance authorized during a fiscal year, the video lottery agent shall reimburse net proceeds the amount of the overage which will be distributed as outlined in paragraphs (b)(2) and (b)(3) of this section.
(2)a. Proceeds returned to the State. -- Except as otherwise provided by this paragraph, of amounts remaining after all payments to players under paragraph (b)(1) of this section, there shall be returned to the State 43 1/2%. For licensees which conducted 40 or fewer (but at least 1) days of live harness horse races during 1992, should such licensees' video lottery proceeds, net of proceeds returned to players, at the end of any fiscal year fall below $107,500,000, then, in the subsequent fiscal year, there shall be returned to the State 42 1/2% of amounts remaining after all payments to players under paragraph (b)(1) of this section.
b. The State shall also receive the funds on each credit slip that has not been presented for redemption within 1 year from the date the slip is issued.
c. Application of funds retained by the state lottery. -- The funds retained by the state lottery shall be applied as follows: first, to the administrative costs and expenses in respect of the video lottery including, but not limited to, administrative expenses including payroll and other employment costs attributable to the operation of the video lottery by the State Lottery Office, law-enforcement and security expenses, including payroll and other employment costs of the state lottery, the Office of the Attorney General and the Delaware State Police, attributable to the operation by the state lottery of a video lottery; second, $1,000,000 or 1%, whichever is greater, of the proceeds returned to the State under this paragraph (b)(2), to the Division of Substance Abuse and Mental Health of the Department of Health and Social Services for funding programs for the treatment, education and assistance of compulsive gamblers and their families; third, costs of the Administrator of Racing and racing inspectors referenced in Chapters 100 and 101 of Title 3; fourth, the State's contribution to the Delaware Standardbred Breeder's Program and Delaware Certified Thoroughbred Program (DCTP); and fifth, the remainder shall be paid into the State's General Fund.
d. The State's contribution to the Delaware Standardbred Breeder's Program pursuant to this subsection shall be $750,000, and said amount is to be allocated equally as of January 1 of the calendar year among existing licensees which conduct live harness horse racing, but moneys shall not be expended for the program until such time as a plan has been approved pursuant to paragraph (b)(3)b.2. of this section. The State's contribution to the Delaware Certified Thoroughbred Program (DCTP) pursuant to this subsection shall be $250,000, and said amount shall be allocated as of January 1 of each calendar year to the existing licensee which conducts live thoroughbred horse racing, but moneys shall not be expended for the program until such time as a plan has been approved pursuant to paragraph (b)(3)b.1. of this section.
(3) Application of remaining proceeds. -- The proceeds remaining after payments as set forth in paragraphs (b)(1) and (2) of this section shall be applied as follows:
a. Administrative and vendor costs. -- The State shall receive an amount equal to all costs of equipment (both video lottery machines and related equipment), whether leased or owned by the State, used or under the control of such agent, the cost of the central computer used to monitor the equipment used by the agent, and related vendor fees, and from these proceeds the State shall pay for these costs, provided that the video lottery agents shall pay all equipment costs consisting of video lottery machine license or proprietary fees.
b. Purses. --
1. For video lottery agents licensed only to conduct horse racing meets under Chapter 101 of Title 3 or Chapter 4 of Title 28, such agents shall be paid and shall pay additional purses (and related administrative expenses of the horse racing association) to be applied under the direction of the Delaware Thoroughbred Racing Commission, for races conducted at such agent's racetrack in accordance with § 10148 of Title 3 or § 427 of Title 28 as appropriate, in an amount calculated as follows: 9% of the proceeds remaining after payments made under paragraph (b)(1) of this section. Five hundred thousand dollars of those proceeds, which would otherwise fund purses, on an annual basis, shall fund a Delaware Certified Thoroughbred Program (DCTP) to enhance the quantity of thoroughbred foals and/or yearlings stabled within Delaware for a period meeting the Delaware minimum residency requirement. The DCTP shall be administered by a Board comprised of the following:
A. Four members of the Delaware Thoroughbred Horseman's Association;
B. One member designated by the video lottery agent licensed to conduct live thoroughbred horse racing meets under Chapter 101 of Title 3;
C. One member appointed by the Speaker of the House of the General Assembly;
D. One member appointed by the President Pro Tempore of the Senate of the General Assembly;
E. The Secretary of Agriculture or the Secretary's designee; and
F. The Secretary of Finance or the Secretary's designee.
Members shall be chosen by the organizations they represent, and shall serve 4-year terms, except the 4 initial Board members selected by the Delaware Thoroughbred Horseman's Association shall serve an initial term of 2 years, and 4 years thereafter. The Board created hereunder must develop and present a plan for the administration of the DCTP no later than December 31, 2005. This plan and all subsequent plans amending the DCTP shall be subject to the written approval of the Secretary of Agriculture or the Secretary's designee, the Secretary of Finance or the Secretary's designee, and the Chairperson of the Thoroughbred Racing Commission or the Chairperson's designee. The Board shall transmit minutes and actions from all meetings to the Chairperson of the Delaware Thoroughbred Racing Commission within 10 days of the meeting. The Board shall submit an annual report detailing the allocation of such funds of the DCTP to the Commission and make available to the State Auditor such information as may be required to perform an annual audit of funds allocated from the DCTP. The Board may also, at its discretion, use funds from the DCTP for advertising, promotion, education and administrative purposes directly related to the program, however, the total amount for these purposes cannot exceed 5% of the total allocation. Funds dedicated to the DCTP shall not be subject to a 1-year payout requirement, but payouts may be dispersed throughout the year.
2. For video lottery agents licensed only to conduct harness racing meets under Chapter 100 of Title 3, such agents shall be paid and shall pay additional purses (and related administrative expenses of the horse racing association) to be applied under the direction of the Delaware Harness Racing Commission to purses for races conducted at such agent's racetrack in accordance with § 10048 of Title 3, in an amount calculated as follows: 10.75% of the proceeds remaining after payments made under paragraph (b)(1) of this section.
One million five hundred thousand dollars of those proceeds, which would otherwise fund purses, on an annual basis ($750,000 to come from each licensee which conducts live harness horse racing) to be set aside for purses under this paragraph (b)(3)b.2. shall be used to fund a Delaware Standardbred Breeder's Program which shall be administered by a board comprised of 4 members from the Delaware Standardbred Owners Association, 1 member from the Standardbred Breeders and Owners of Delaware, Inc., 1 member from each video lottery agent licensed to conduct harness racing meets under Chapter 100 of Title 3, 1 member appointed by the Speaker of House of the General Assembly, 1 member appointed by the President Pro Tempore of the Senate of the General Assembly, the Secretary of Agriculture or the Secretary's designee, and the Secretary of Finance or the Secretary's designee. Members shall be chosen by the organizations they represent, and shall serve 4-year terms except that 4 of the initial board selected by the members of the Delaware Standardbred Owners Association shall serve an initial term of 2 years, and 4 years thereafter. The board created hereunder will present a plan for the administration of the Program to the General Assembly no later than May 15, 1999. This plan, and all subsequent amendments to the plan, shall be subject to the written approval of the Secretary of Agriculture or the Secretary's designee, the Chairperson of the Delaware Harness Racing Commission or the Chairperson's designee, and the Secretary of Finance or the Secretary's designee. The board shall transmit minutes of all meetings and any proposed actions to the Delaware Harness Racing Commission within 10 days after each meeting. The board shall transmit an annual report detailing the allocation of proceeds from the fund and make available to the State Auditor or the State Auditor's representative such information as may be required to perform an annual audit of funds allocated from the Delaware Standardbred Breeder's Program. In addition to funding special purses for Delaware standardbred horses, the board created hereby may also use the funds dedicated to this Program for advertising, promotion, educational and administrative purposes. Funds dedicated to the Delaware Standardbred Breeder's Program shall not be subject to the 1-year payout requirement of § 10048 of Title 3.
3. For video lottery agents licensed to conduct harness horse racing meets under Chapter 100 of Title 3 on January 1, 1993, such agents, which in the future also conduct horse racing meets under Chapter 101 of Title 3 or Chapter 4 of Title 28, shall be paid and shall pay additional purses (and related administrative expenses of the horse racing association) administered by either the Delaware Thoroughbred Racing Commission or the Delaware Harness Racing Commission, as appropriate, in accordance with the formula set forth in sub-subparagraph 2. of this subparagraph, for races conducted at such agent's racetrack based on the ratio of live horse racing days to total live racing days and live harness horse racing days to total live racing days.
4. For video lottery agents licensed to conduct horse racing meets under Chapter 101 of Title 3 on January 1, 1993, such agents, which in the future also conduct harness horse racing meets under Chapter 100 of Title 3, shall be paid and shall pay additional purses (and related administrative expenses of the horse racing association) administered by either the Delaware Thoroughbred Racing Commission or the Delaware Harness Racing Commission, as appropriate, in accordance with the formula set forth in sub-subparagraph 1. of this subparagraph, for races conducted at such agent's racetrack based on the ratio of live horse racing days to total live racing days and live harness racing days to total live racing days.
c. Jockey health and other welfare benefits. -- For video lottery agents which are licensed only to conduct thoroughbred horse racing meetings under Chapter 101 of Title 3 or Chapter 4 of Title 28, such agents annually shall be paid and shall pay the sum of $175,000 plus an additional $175,000 (which shall be subtracted from the amount such agent is paid and shall pay as additional purses under paragraph (b)(3)b.1 of this section) for a total payment of $350,000 annually, adjusted for inflation by the Delaware Thoroughbred Racing Commission, which shall be payable to fund a Delaware Jockeys Health and Welfare Benefit Fund on July 20 of each year. The Fund shall be used to provide, for jockeys who regularly ride in Delaware, health and other welfare benefits for active, disabled and retired jockeys pursuant to reasonable criteria for benefit eligibility. The Jockeys Health and Welfare Benefit Fund shall be administered by a Board, known as the Jockeys Health and Welfare Benefit Board, comprised of 1 member of the Delaware Thoroughbred Racing Commission, 1 member from the licensed agent under Chapter 101 of Title 3 or Chapter 4 of Title 28, 1 member of the Delaware Horsemen's Association, and 1 representative from the organization that represents the majority of the jockeys who are licensed and ride regularly in Delaware, and 2 jockeys who are licensed and ride regularly in Delaware. The Chairman of the Commission shall serve as an ex officio member and vote on matters in the event of a tie vote on any issue. Members shall be appointed by the Commission and shall serve 2-year terms. In addition to providing funding for jockey health and other welfare benefits, the fund may expend reasonable expenses for administrative purposes.
d. Commissions to agents. -- The portion of such proceeds remaining after the payments required by paragraphs (b)(3)a., b. and c. of this section shall be paid to such video lottery agent as commission.
For video lottery agents licensed only to conduct horse racing meets under Chapter 101 of Title 3 or Chapter 4 of Title 28, such agents shall pay $250,000 of the proceeds received under this section to fund the video lottery agent's contribution to the Delaware Certified Thoroughbred Program (DCTP) annually. Said amount shall be allocated as of January 1 of each calendar year.
For video lottery agents licensed only to conduct harness racing meets under Chapter 100 of Title 3, each agent shall pay $375,000 of the proceeds received under this section to fund the video lottery agent's contribution to the Delaware Standardbred Breeder's Program annually. Said amount shall be allocated as of January 1 of each calendar year.
(c) 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, and transferred to the State Lottery Fund by the lottery on a daily or weekly basis. Proceeds from the sports lottery, less the amounts returned to winning players and vendor fees, shall be returned to the State at a rate of 50% of the total win so experienced. Purses shall be paid from the proceeds from the sports lottery, less amounts returned to winning players and vendors fees, at the rate of 10.2% for video lottery agents licensed only to conduct harness racing meets and at the rate of 9.6% for video lottery agents licensed only to conduct thoroughbred racing meets. The Director, by regulation shall adopt accounting procedures for the sports lottery in order to accommodate the differences between the sports lottery and the video lottery. Administrative costs and expenses incurred by the video lottery agent for the initiation of the sports lottery and the costs of the equipment shall be solely the responsibility of the video lottery agent. The provisions of subsection (b) of this section shall not apply to the proceeds from the operation of the sports lottery.
(d) Gross table game revenue shall be electronically transferred daily or weekly at the direction of the Lottery Director into a designated state lottery account by the agent, and transferred to the State Lottery Fund by the lottery on a daily or weekly basis. Gross table game revenue shall be applied as follows:
(1) Proceeds returned to the State. --
a. Except as otherwise provided by this paragraph, of gross table game revenue, there shall be returned to the State 29.4%.
b. The funds retained by the State shall be applied as follows: first, to the administrative costs and expenses of the Office, including, but not limited to, administrative expenses including payroll and other employment costs, and law-enforcement and security expenses, including payroll and other employment costs of the state lottery, the Office of the Attorney General, the Division of Gaming Enforcement, and the Delaware State Police; second, $250,000 or 1%, whichever is greater, of the proceeds returned to the State under this paragraph, to the Division of Substance Abuse and Mental Health of the Department of Health and Social Services to be used exclusively for funding programs for the treatment, education and assistance of compulsive gamblers and their families; third, costs of the Administrator of Racing and racing inspectors referenced in Chapters 100 and 101 of Title 3; and fourth, the remainder shall be paid into the State's General Fund.
(2) Purses. -- Of gross table game revenue, such agent shall be paid and shall pay additional purses in the amount of 4.5% of such proceeds.
a. For video lottery agents licensed only to conduct horse racing meets under Chapter 101 of Title 3 or Chapter 4 of Title 28, such purses shall be applied under the direction of the Delaware Thoroughbred Racing Commission for races conducted at such agent's racetrack in accordance with § 10148 of Title 3 or § 427 of Title 28, as appropriate.
b. For video lottery agents licensed only to conduct harness racing meets under Chapter 100 of Title 3, such purses shall be applied under the direction of the Delaware Harness Racing Commission to races conducted at such agent's racetrack in accordance with § 10048 of Title 3.
c. For video lottery agents licensed to conduct both harness racing meets under Chapter 100 of Title 3 and horse racing meets under Chapter 101 of Title 3 or Chapter 4 of Title 28, such purses shall be applied pursuant to the formulae set forth in paragraphs (b)(3)b.3. and (b)(3)b.4. of this section.
(3) The proceeds remaining after the payments in paragraphs (d)(1) and (2) of this section above shall be paid to video lottery agents as their commission.
(4) The administrative costs incurred by the Office shall be an administrative cost of the State.
59 Del. Laws, c. 348, § 1; 60 Del. Laws, c. 9, §§ 2, 3; 60 Del. Laws, c. 91, § 1; 60 Del. Laws, c. 92, § 1; 60 Del. Laws, c. 539, § 6; 61 Del. Laws, c. 189, § 1; 66 Del. Laws, c. 367, § 1; 69 Del. Laws, c. 446, § 16; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 253, §§ 6-9; 71 Del. Laws, c. 414, § 8; 73 Del. Laws, c. 41, § 1; 74 Del. Laws, c. 53, §§ 2, 3; 74 Del. Laws, c. 222, §§ 1-3; 74 Del. Laws, c. 424, § 1; 75 Del. Laws, c. 98, §§ 131, 132; 75 Del. Laws, c. 229, §§ 2-4; 76 Del. Laws, c. 19, §§ 1, 2; 76 Del. Laws, c. 283, §§ 1-4, 6, 7; 77 Del. Laws, c. 28, §§ 10-15; 77 Del. Laws, c. 186, §§ 1, 2; 77 Del. Laws, c. 219, § 12.;
§ 4816. Post-audit of accounts and transactions of Office.
The State Auditor shall conduct a yearly post-audit of all accounts and transactions of the State Lottery Office. The cost of the audit shall be paid out of the State Lottery Fund moneys designated for payment of operating expenses.
59 Del. Laws, c. 348, § 1.;
§ 4817. Exemption of lottery prizes from state and local taxation.
Repealed by 77 Del Laws, c. 74, § 1, effective Jan. 1, 2010.
§ 4818. Disclosure of certain information regarding a prize winner.
The name and address of any prize winner under this chapter shall not be disclosed to the public by the State Lottery Office unless permission is given by the prize winner.
66 Del. Laws, c. 367, § 3.;
§ 4819. Restrictions on location and use of video lottery and sports lottery machines; fees.
(a) Video lottery machines, sports lottery machines and table game equipment shall only be located within the confines of an existing racetrack property in this State on which was conducted in 1993 either a horse racing meet pursuant to Title 3 or Title 28 or a harness horse racing meet pursuant to Title 3 and/or such immediately adjacent property or properties that are owned by, or immediately adjacent properties that may be acquired by, the video lottery licensee authorized to conduct such horse racing or harness racing; and provided further, that video lottery machines, sports lottery machines and table game equipment shall not be located in a hotel, motel or other overnight sleeping facility.
(b) In respect of any pari-mutuel harness racing or pari-mutuel horse racing property the racing operations on which were lawful under any county or municipal zoning ordinance as of January 1, 1993, the use of video lottery machines pursuant to the provisions of this act on such property and/or on any immediately adjacent property or properties that are owned by, or immediately adjacent properties that may be acquired by, the video lottery licensee authorized to conduct such horse racing or harness racing shall not be deemed to change the character of such lawful land use and such use of video lottery machines shall not be prohibited by any such county or municipal zoning ordinance, including amendments thereto.
(c) Video lottery machines and sports lottery machines shall be connected to the lottery's central computer system, except when used for promotional tournaments in which players are not required to pay any fee to participate, and shall not be available for play on Christmas, or after 4:00 a.m. on Easter. Subject to the foregoing, the specific hours of operation for each video lottery agent are subject to the recommendation of the Lottery Director and the approval of the Secretary of Finance.
(d) The State shall collect from the video lottery agents no later than February 15 of each year license fees totaling $4,000,000. Each video lottery agent shall be liable for and shall pay to the State the portion of the $4,000,000 that is in proportion to the amount of the video lottery net proceeds of that agent in the preceding fiscal year in comparison to the total video lottery net proceeds recovered by the State in the preceding fiscal year. The Director shall determine that proportion and the amount due from each video lottery agent no later than July 30 of each year. The license fees collected pursuant to this subsection shall be contributed to the General Fund.
(e)(1) For the privilege of hosting the operation of table games, the State shall collect from the video lottery agents for the benefit of the General Fund:
a. For each fiscal year after June 30, 2011, license fees totaling $13,500,000, to be paid no later than June 1 of the preceding fiscal year, and to be allocated among the video lottery agents offering table games as follows: Each video lottery agent's license fee shall be the portion of $13,500,000 that is equal to the percentage of gross table game revenue generated at that video lottery facility in the preceding fiscal year out of the total gross table game revenue generated at all video lottery facilities in the preceding fiscal year, and
b. For the fiscal year ending June 30, 2011, and any preceding period, license fees totaling $13,500,000, to be paid no later than January 15, 2011, and to be allocated among the video lottery agents offering table games as follows: Each video lottery agent's license fee shall be the portion of $13,500,000 that is equal to the percentage of video lottery proceeds remaining after payments to players under § 4815(b) of this title generated at that video lottery facility in the preceding fiscal year out of the total video lottery proceeds remaining after payments to players under § 4815(b) of this title generated at all video lottery facilities in the preceding fiscal year. Should table gaming not be operating at a video lottery facility on July 1, 2010, the Director and Secretary of Finance may determine to reduce the license fees otherwise imposed for the year by an amount proportionate to the part of the fiscal year ended June 30, 2011, in which the table gaming is not operating.
(2) Should the video lottery agents collectively make or commit to make qualified capital investments in the improvement of their video lottery facilities and adjoining properties after January 28, 2010, in any 12-month period ending on June 30 in the amount of $2,500,000, each video lottery agent shall be permitted for purposes of this paragraph to reduce the license fee it would otherwise owe for that year pursuant to paragraph (e)(1) of this section by 1/2 of the license fee. A qualified capital investment pursuant to this paragraph shall be an amount paid out for new video lottery facility buildings or permanent improvements or betterments to existing video lottery facilities that would not be deductible for purposes of § 263(a)(1) of the Internal Revenue Code [26 U.S.C. § 263(a)(1)]. The video lottery agents shall provide the Director annually an accounting of the qualified capital investments made pursuant to this paragraph (e)(2).
(3) The license fees to be paid for each fiscal year after the fiscal year ending June 30, 2011, pursuant to paragraphs (e)(1) and (e)(2) of this section may be reduced by a specified amount in the event the video lottery agent outperforms its expected portion of $80,000,000 in gross table game revenue, as follows:
a. For each fiscal year after June 30, 2011, each video lottery agent's expected gross table game revenue shall be equal to the portion of $80,000,000 that corresponds to its percentage of total gross table game revenue from all video lottery agents generated in the preceding fiscal year, and should the video lottery agent generate that expected gross table game revenue, its license fees to be paid shall be reduced by the portion of $1,750,000 that corresponds to its percentage of total gross table game revenue from all video lottery agents generated in the preceding fiscal year; and
b. For the fiscal year ended June 30, 2011, each video lottery agent's expected gross table game revenue shall be equal to the portion of $80,000,000 that corresponds to its percentage of total video lottery proceeds remaining after payments to players under § 4815(b) of this title from all video lottery agents generated in the preceding fiscal year, and should the video lottery agent generate that expected gross table game revenue, its license fees to be paid shall be reduced by the portion of $1,750,000 that corresponds to its percentage of total video lottery proceeds remaining after payments to players under § 4815(b) of this title from all video lottery agents generated in the preceding fiscal year.
(4) In the event a video lottery agent has not achieved, as of June 1 of each year, gross table game revenue sufficient to reduce the license fees owed in the following year pursuant to paragraph (e)(3) of this section, the video lottery agent shall pay the license fee without regard for the reduction under that paragraph, unless, in the judgment of the Office, such video lottery agent is expected to achieve sufficient table gaming revenue by the end of the fiscal year, in which case the video lottery agent shall receive the reduction specified in paragraph (e)(3) of this section that is contingent upon successfully reaching the level of gross table game revenue that warrants the reduction.
(5) The license fees to be paid for the fiscal year ending June 30, 2011, pursuant to paragraphs (e)(1) and (e)(2) of this section shall not be reduced at the time of payment pursuant to paragraph (e)(3) of this section, but if the video lottery agent successfully reaches the gross table game revenue targets specified in paragraph (e)(3) of this section during the fiscal year ending June 30, 2011, the reduction specified in paragraph (e)(3) of this section shall be applied to the license fee owed for the fiscal year ending June 30, 2012.
69 Del. Laws, c. 446, § 18; 74 Del. Laws, c. 53, § 4; 75 Del. Laws, c. 229, § 5; 76 Del. Laws, c. 156, §§ 2, 3; 76 Del. Laws, c. 283, § 5; 77 Del. Laws, c. 28, §§ 16-18; 77 Del. Laws, c. 219, §§ 13, 14.;
§ 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) Each video lottery agent shall pay to the State annual license fees for additional video lottery machines as follows:
2501 to 3000 -- $1,100 per machine;
3001 to 3500 -- $700 per machine; and
3501 to 4000 -- $300 per machine.
(3) Annual license fees as prescribed in paragraph (2) of this subsection shall expire on December 31 of each calendar year and shall be payable no less than 30 days before the commencement of the calendar year.
(4) In the case of any video lottery agent making an initial application for machines subject to the provisions as prescribed in paragraph (b)(2) of this section, the basic annual license fee for such initial year specified therein shall be reduced pro rata by the portion attributable to the number of full calendar months of the license year that have expired prior to the issuance of the license and shall be payable within 30 days of receipt of approval from the Secretary of Finance.
(5) 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, §§ 10001-10005 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.;
§ 4821. Decision to forego video lottery.
Any person, corporation or association licensed under Chapter 100 of Title 3 to conduct a harness horse racing meet during 1993 which conducted live harness horse races on 30 days or less during 1993 may forego the opportunity to become a video lottery agent under this chapter. Any such person, corporation or association electing to forego such opportunity shall notify the Director and all other video lottery agents of such decision, and so long as such person, corporation or association conducts live harness horse races on at least 90% of the same number of racing days as were conducted by such person, corporation or association in 1992, and so long as such person, corporation or association maintains and awards an average purse per race which is not less than the average purse per race offered by such person, corporation or association during 1992, then such person, corporation or association shall receive an annual payment of $100,000 from all video lottery agents licensed under Chapter 101 of Title 3 and $75,000 from all video lottery agents licensed under Chapter 100 of Title 3 or Chapter 4 of Title 28, such payment to be made on an annual basis commencing 6 months after the 1st customer plays the video lottery and shall continue so long as the video lottery is in operation. Video lottery agents licensed under more than 1 chapter of Title 28 and Title 3 shall only make 1 payment as set forth in the preceding sentence. An election to forego the opportunity to become a video lottery agent shall be effective for 1 year from the date of such election, after which time the licensee making the election may apply for licensure to become a video lottery agent, or may elect to forego such opportunity for an additional 1 year.
69 Del. Laws, c. 446, § 27.;
§ 4822. Annual crime report.
The State Lottery Office, with the assistance of the Attorney General's Office and the State Bureau of Identification, shall annually provide to the General Assembly a report detailing the crimes that occur within the communities surrounding each racetrack property, including an analysis of crimes relating to table gaming, whether in or outside the property of a video lottery facility.
69 Del. Laws, c. 446, § 28; 77 Del. Laws, c. 219, § 19.;
§ 4823. Enforcement.
(a) Whoever violates this chapter or any rule or regulation duly promulgated thereunder, or any condition of a license issued pursuant to § 4805 of this title, or any administrative order issued pursuant to this section, shall be punishable as follows:
(1) If the violation has been completed, by a civil penalty imposed by Superior Court, which shall have jurisdiction of civil penalty actions brought pursuant to this section, of not less than $1,000 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.
(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.
(3) In the Director's discretion, the Director may impose an administrative penalty of not more than $1,000 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 violation 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 this title. 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 this title.
(4) In the Director's discretion, the Director may endeavor to obtain compliance with requirements of this chapter 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.
(b) The Director shall enforce this chapter.
(c) Any interest, costs or expense collected under this section shall be appropriated to the State Lottery Office to carry out the purposes of this chapter.
71 Del. Laws, c. 253, § 11.;
§ 4824. Advisory Council on Video Lottery Planning.
(a) An Advisory Council on Video Lottery Planning is established and shall serve in an advisory capacity to the Secretary of Finance. Its membership shall include:
(1) The Director of the State Lottery Office.
(2) One member from each licensed video lottery agent, to be designated by the respective agent.
(3) Two members representing all of the licensed manufacturers of video lottery machines to be designated by the Director of the State Lottery Office, and/or the licensed manufacturer of the central computer systems to be designated by the Director of the State Lottery Office.
(b) The Governor shall designate one member to serve as Chairperson of the Council, who shall serve in that capacity for two years and shall be eligible for reappointment.
(c) The Council shall consider matters relating to the growth and competitive vitality of the video lottery industry in the State, including but not limited to:
(1) The status of video lottery game development issues in the State;
(2) The status of known game problem resolution;
(3) Personnel issues and concerns affecting the industry;
(4) The effectiveness of current operational procedures and recommendations for new operational procedures or regulations;
(5) The competitive vitality of the video lottery industry in the state, and recommendations for marketing and technological improvements;
(6) Issues and concerns relating to the repair and maintenance of video lottery machines and related equipment, including preventive maintenance programs;
(7) Video lottery agent or manufacturer specific projects that will impact the operation of the video lottery; and
(8) Issues and concerns of the State Lottery Office relating to video lottery operations and the status of internal control approvals.
(d) Members of the Council shall serve without compensation, except that they may be reimbursed for reasonable necessary expenses incident to their duties as members in accordance with state law.
(e) Any member of the Council other than the Director of the State Lottery Office shall be subject to removal and replacement, without cause, at any time by the person who appointed or designated the member.
(f) The Council shall meet at least 4 times each calendar year, at the call of the Director, the Chairperson, or a majority of the members.
(g) The Council shall submit a report on its activities to the Secretary of Finance by November 5 of each year, together with recommendations for legislative and/or administrative changes it deems desirable.
74 Del. Laws, c. 53, § 7.;
§ 4825. Sports lottery.
(a) The Director shall, pursuant to the authority granted under § 4805(a)(1) and (b)(4) of this title, commence a sports lottery as soon as practicable. The Director shall, by rules and regulations, provide for the features and attributes of a sports lottery. The regulations must, in the Director's judgment, administer the sports lottery in a manner which will produce the greatest income for the State while minimizing or eliminating the risk of financial loss to the State.
(b) A person under the age of 21 may not purchase a sports lottery ticket, or wager on a sports lottery machine, or in any way participate in the sports lottery.
(c) A sports lottery commenced pursuant to this section must be conducted exclusively at facilities operated by video lottery agents licensed by the State. Licenses awarded to video lottery agents relative to the video lottery shall automatically allow those agents to operate facilities at which the sports lottery can be conducted.
77 Del. Laws, c. 28, § 1.;
§ 4826. Feasibility of additional venues.
(a) There is created the Video and Sports Lottery Study Commission, which shall be composed of 9 persons. The President Pro Tempore of the Senate shall appoint 2 members of the Senate and the Minority Leader of the Senate shall appoint 1 member of the Senate to serve on the Video and Sports Lottery Study Commission. The Speaker of the House of Representatives shall appoint 2 members of the House of Representatives and the Minority Leader of the House of Representatives shall appoint 1 member of the House of Representatives to serve on the Video and Sports Lottery Study Commission. The Secretary of Finance and Director of the Delaware Economic Development Office shall serve as members of the Video and Sports Lottery Study Commission, and the Governor shall appoint 1 other person to serve on the Video and Sports Lottery Study Commission. The Governor shall appoint a Chairperson of the Video and Sports Lottery Study Commission from among its members. The Video and Sports Lottery Study Commission may engage and retain such consultants as it deems necessary. Appointees to the Video and Sports Lottery Study Commission shall serve until the Commission has fulfilled its obligations pursuant to subsections (b) and (c) of this section, at which time the Video and Sports Lottery Study Commission shall be terminated, if not reconstituted by further act of the General Assembly.
(b) Not later than October 15, 2009, the Video and Sports Lottery Study Commission shall report to the General Assembly on the effects on state revenues, the revenues of existing video lottery agents, the horse racing industry, employment, and the surrounding communities and businesses if the State were to grant additional video lottery licenses to any person, including, but not limited to, a person who does not operate a racetrack property in this State conducting horse racing meets pursuant to Title 3 or Title 28 or harness racing meets pursuant to Title 3.
(c) Not later than 30 days after the United States Supreme Court's issuance of a mandate concluding the State's appeal of the decision entered by the United States Court of Appeals for the Third Circuit in case No. 09-3297 (captioned as Ofc. Comm. Baseball, et al. v. Markell [579 F.3d 293 (3d Cir. 2009]), the Video and Sports Lottery Commission shall reconvene at the call of the Chairperson for the purpose of discussing the effect of the United States Supreme Court's decision, and discussion on the feasibility of licensing additional sports lottery venues, including the effects on state revenues, the revenues of existing video lottery agents, the horse racing industry, employment, and the surrounding communities and businesses if the State were to grant additional licenses to operate only a sports lottery to any person, including, but not limited to, a person who does not operate a racetrack property in this State conducting horse racing meets pursuant to Title 3 or Title 28 or harness racing meets pursuant to Title 3.
77 Del. Laws, c. 28, § 1; 77 Del. Laws, c. 235, §§ 1, 2.;
§ 4827. Table gaming.
(a) Legislative findings. --
(1) The General Assembly finds that the video lottery operated by the Delaware Lottery plays a critical role in the economy of the State; that it has made significant revenue contributions to the State; that it has provided for significant employment opportunities in the State; that it has greatly benefited the horse breeding, horse racing and agricultural industries in the State; that it has contributed to the preservation of open space in the State; that it has enhanced tourism in the State; that it has provided many indirect benefits to various segments of the State's economy; and that video lottery agents have made significant investments in their personnel and their facilities to host the video lottery.
(2) The General Assembly finds that allowing the Delaware Lottery also to offer table gaming at the sites of video lottery agents could further the success of the Delaware lottery; foster additional revenue contributions to the State; promote Delaware as a leisure and tourism destination; create as many as 750 new jobs; and provide other indirect benefits throughout the State's economy.
(3) The General Assembly finds that table game wagers authorized under this article are lotteries under state control. Each game involves the 3 essential elements necessary for a lottery: consideration, chance and a prize. The General Assembly finds that where a table game wager has mixed elements of chance and skill, it will continue to qualify as a lottery as long as chance is the predominant factor. The General Assembly further finds that the outcome of the table games expressly enumerated under this subchapter is determined predominantly by chance.
(4) The General Assembly finds that an essential element of the regulation and control of video lottery agents by the State rests in the public confidence and trust in the credibility and integrity of the regulatory process and gaming operations. The General Assembly further finds that the regulatory provisions of this act are designed to extend strict state control over all persons, locations, practices and associations related to the operation of licensed video lottery agents.
(b) The Director shall, pursuant to the authority granted under § 4805 of this title, establish an initial regulatory framework for table games and commence table game operations as soon as reasonably possible. The Director shall, by rules and regulations, provide for the features and attributes of the table game operations.
(c) The regulations must administer table game operations in a manner that minimizes or eliminates the risk of financial loss to the State.
(d) Table game operations shall be conducted exclusively at video lottery facilities owned and operated by video lottery agents licensed in the State. Licenses awarded to video lottery agents relative to the video lottery shall allow those agents to act as agents for the State with respect to table game operations, and such licenses shall be subject to the same license requirements and procedures as video lottery licenses pursuant to this subchapter.
(e) On March 15 of each year, each video lottery agent shall report to the Office, in a form and in a manner required by the Office, and to the General Assembly the number of full-time and part-time employees engaged in the conduct of table games and the number of full-time and part-time employees otherwise engaged.
77 Del. Laws, c. 28, § 1; 77 Del. Laws, c. 219, § 1.;
§ 4828. Licensing of video lottery agent directors, officers, and employees.
(a) The Director shall have the power and duty to license those persons required by this chapter to be licensed and to promulgate rules and regulations for such purpose. The licensure procedure shall include the satisfaction of such security, fitness and background standards as determined necessary relating to competence, honesty and integrity, such that a person's reputation, habits and associations do not pose a threat to the public interest of the State or to the reputation of or effective regulation and control of the lottery.
(b) It shall be the obligation of the video lottery agent to notify the Director on a continuing basis of any change in officers, directors, key employees, gaming employees, gaming room service employees, sports lottery operations employees and persons who own, directly or indirectly, 10% or more of such entity. Persons holding key employee licenses on January 28, 2010, shall remain licensed as key employees and shall not be required to seek licensure under this section until the license is to be renewed. Persons holding video lottery operations employee licenses shall remain licensed as a gaming employee, but shall be required to seek renewal of their licenses no later than July 28, 2010.
(c) The terms of licenses under this section shall be as follow:
(1) Initial licenses of key employees, officers, directors, and persons who own directly or indirectly 10% or more of a video lottery agent shall have a term of 2 years, and renewals of licenses of key employees shall have a term of 3 years;
(2) Initial licenses of gaming employees and sport lottery operations employees shall have a term of 3 years, and renewals of licenses of gaming employees shall have a term of 4 years; and
(3) Initial licenses of gaming room service employees shall have a term of 5 years, and renewals of licenses of gaming room service employees shall have a term of 6 years.
77 Del. Laws, c. 219, § 20.;
§ 4829. Licensing of service companies.
(a) "Service company" shall mean:
(1) Any vendor offering goods or services relating to the manufacture, operation, maintenance, security, distribution, service or repair of video lottery machines, sports lottery machines or table game equipment directly to the state;
(2) Any vendor offering goods or services to a video lottery agent on a regular and continuing basis, as defined in regulations promulgated hereunder; or
(3) Any person providing gaming excursion services to a video lottery agent.
(b) The Director shall have the power and duty to license those service companies meeting this definition as the Director determines to be necessary to the integrity of the operations of the lottery, and to promulgate rules and regulations for such purpose. The licensure procedure shall include the satisfaction of such security, fitness and background standards as determined necessary relating to competence, honesty and integrity, such that a service company's reputation, habits and associations do not pose a threat to the public interest of the State or to the reputation of, or effective regulation and control of, the lottery. Vendors holding licenses as technology providers or other service provider shall remain licensed as a service company and shall not be required to seek licensure under this section until the license is to be renewed. Vendors licensed or approved by the Harness Racing Commission or the Thoroughbred Racing Commission to provide services to a video lottery agent need not secure a service company license pursuant to this section unless such vendor seeks to provide services other than those already authorized.
(c) Each service company identified in this section shall be licensed in accordance with the standards of a key employee. The owners, management, and supervisory personnel of each such service company shall be qualified to the standards of and for the term of a key employee. The employees of each such service company whose duties and responsibilities involve the security, maintenance, servicing, repair, or operation of video lottery machines or table game equipment shall be licensed to the standards of and for the term of a gaming employee.
(d) Each service company identified in paragraph (a)(2) of this section shall be licensed in accordance with the standards of a key employee except as to the requirement to establish financial stability, integrity and responsibility. The owners, management, and supervisory personnel of each such service company shall be qualified to the standards of a key employee, except as to the requirement to establish financial stability integrity and responsibility.
(e) Each service company identified in paragraph (a)(3) of this section shall be licensed in accordance with the standards of a key employee except as to the requirement to establish financial stability, integrity and responsibility. The employees of each such service company whose duties and responsibilities include arranging, procuring or selecting participants in a gaming excursion shall be qualified to the standards of a key employee, except as to the requirement to establish financial stability integrity and responsibility.
(f) For purposes of this section, an owner of a corporation shall be defined as "any person who owns directly or indirectly more than 10% of the equity securities of the corporation."
(g)(1) Each service company identified in paragraph (a)(1) of this section shall be licensed as a service company prior to conducting any business whatsoever, provided, however, that upon a finding of good cause by the Director for each business transaction, the Director may permit an applicant for such service company license to conduct business transactions prior to the licensure of that company.
(2) Each service company identified in paragraph (a)(2) of this section, may transact business with a video lottery agent prior to obtaining a service company license upon the filing of a vendor registration form by a video lottery agent for such service company pursuant to regulations promulgated hereunder.
(h) The terms of licenses under this section shall be as follows:
(1) Service companies identified in paragraph (a)(1) of this section shall be licensed for an initial term of 2 years and succeeding renewal terms of 3 years from date of issuance;
(2) Service companies identified in paragraphs (a)(2) and (a)(3) of this section shall be licensed for an initial term of 3 years and succeeding renewal terms of 4 years from date of issuance.
(i) The risk manager of the sports lottery 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. The Director may determine whether the licensing standards of another state are comprehensive, thorough and provide similar adequate safeguards and, if so, may, in the Director's discretion, license an application already licensed in such state without the necessity of a full application and background check.
77 Del. Laws, c. 219, § 20; 70 Del. Laws, c. 186, § 1.;
§ 4830. Standards of licensing.
(a) All applicants, licensees, registrants, or any other person who must be qualified pursuant to this chapter shall have the continuing duty to provide any assistance or information required by the Director or the Division of Gaming Enforcement, and to cooperate in any background check or investigation conducted by the Division of Gaming Enforcement or in any hearing conducted by the Director. If an applicant, licensee, registrant or any other person who must be qualified pursuant to this act refuses to provide information, evidence or testimony upon formal request by the Director or the Division of Gaming Enforcement, the Director may deny or revoke the application, license, registration or qualification of such person.
(b) An applicant for a key license or gaming employee license shall be required to establish that applicant's qualifications for obtaining a license by clear and convincing evidence. The Director of the Delaware lottery shall deny a license to any applicant who fails to prove by clear and convincing evidence that the applicant is qualified under the provisions of this chapter.
(1) An applicant for a key license or gaming employee license shall provide such information, documentation and assurances as may be required to establish by clear and convincing evidence that the applicant has good character, honesty and integrity.
(2) An applicant for a key license or gaming employee license has the affirmative obligation to provide such information, documentation and assurances as may be required to establish by clear and convincing evidence that the applicant has financial stability, responsibility and integrity.
(c) The Director shall deny a license to any applicant or revoke the license of any licensee based on the following criteria:
(1) The conviction of a felony in any jurisdiction;
(2) The conviction of a gambling offense or a crime of moral turpitude in any jurisdiction within 10 years prior to applying for a license or at any time subsequent to the granting of a license;
(3) The commission of any act within 10 years prior to applying for a license or at any time subsequent to the granting of a license in any jurisdiction, which would constitute any offense enumerated in paragraphs (c)(1) and (2) of this section, even if such conduct has not been prosecuted, or if prosecuted, has not resulted in a conviction;
(4) A conviction which has been the subject of a pardon or order of expungement shall not be grounds for automatic disqualification under paragraphs (c)(1) and (2) of this section, but may be grounds for disqualification under paragraph (c)(3) of this section. Such conviction also may be considered in evaluating an applicant's ability to demonstrate his qualifications pertaining to good character, honesty and integrity;
(5) Current prosecution for any offense listed in paragraphs (c)(1) and (2) of this section, provided that, at the request of the applicant, the Director shall defer its decision on the application during the pendency of the charge;
(6) The failure to provide information, documentation and assurances required by the act or requested by the Director, or the supplying of information which is untrue or misleading as to a material fact pertaining to the criteria for obtaining a license;
(7) Notorious or unsavory reputation that would adversely affect public confidence and trust that the Delaware Lottery is free from criminal or corruptive elements; or
(8) Anything that, in the opinion of the Director, would denigrate or undermine the integrity or overall soundness of the lottery, including but not limited a person's reputation, habits and associations that may pose a threat to the public interest of the State or to the reputation or effective control of the lottery.
(d) Notwithstanding the provisions in paragraphs (c)(1), (2), and (3) of this section above for the denial or revocation of a license, no application should be denied and no license should be revoked if the applicant or licensee is able to demonstrate that applicant's or licensee's rehabilitation by clear and convincing evidence. In determining whether an applicant or licensee has affirmatively established that applicant's or licensee's rehabilitation, the Director shall consider the following factors:
(1) The conviction occurred more than 5 years from the date of application;
(2) The nature and duties of the position applied for;
(3) The nature and seriousness of the offense or conduct;
(4) The circumstance under which the offense or conduct occurred;
(5) The age of the applicant or licensee when the offense or conduct was committed;
(6) Whether the offense or conduct was an isolated or repeated incident; and
(7) Any evidence of rehabilitation including, without limitation, good conduct in prison or in the community; successful completion of court-ordered probation; counseling or medical treatment received; and the recommendations of persons who have had the person under their supervision.
(e) Participation in gaming operations as a licensed employee or service company under this chapter shall be deemed a revocable privilege conditioned upon the proper and continued qualification of the individual licensee and upon the discharge of the affirmative responsibility of each such licensee to provide to the regulatory and investigatory authorities established by this subchapter, any assistance and information necessary to assure that the policies declared by this subchapter are achieved. Consistent with this policy, it is the intent of this chapter to preclude the creation of any property right in any license permitted by this chapter, or the accrual of any value to the privilege of participation in gaming operations, and to require that participation in gaming be solely conditioned upon the individual qualifications of the person seeking such privilege.
(f)(1) All information and data required by the Office to be furnished in the application or investigative process, or which otherwise may be obtained by the Office or Division of Gaming Enforcement, pertaining to an applicant's criminal record, financial record, family and background, including, but not limited to, an application form, license investigation report, or request for placement on the self-exclusion list, shall be considered confidential, shall not be public records subject to Chapter 100 of this title, and shall not be revealed in whole or in part except in the ordinary administration of the chapter, or upon the lawful order of a court of competent jurisdiction, or, with the approval of the Attorney General, to a duly authorized law-enforcement agency. The Division of Gaming Enforcement may enter into agreements with other law-enforcement agencies or other gaming regulatory agencies that have law-enforcement status for the sharing of confidential information. Any person who violates this paragraph (f)(1) shall be guilty of a Class A misdemeanor.
(2) All information and data required by the Office or the Division of Gaming Enforcement to be furnished, or which otherwise may be obtained by the Office or the Division of Gaming Enforcement, relative to internal controls of a video lottery agent shall be considered confidential, shall not be public records subject to Chapter 100 of this title, and shall not be revealed in whole or in part except in the ordinary administration of the chapter, or upon the lawful order of a court of competent jurisdiction, or, with the approval of the Attorney General, to a duly authorized law-enforcement agency. Any person who violates this paragraph (f)(2) shall be guilty of a Class A misdemeanor.
(g) The licensure procedure shall take no more than 90 days to complete, unless extenuating circumstances require a longer period, in which case the Director and the State shall act with all deliberate speed to complete the process. The Division of Gaming Enforcement or persons acting at the direction of the Division of Gaming Enforcement shall conduct the security, fitness and background checks required by this chapter.
(h) The Director may issue temporary licenses for good cause and upon a finding that the issuance of a temporary license is necessary to allow for the efficient operation of the video lottery facility. Temporary licenses shall remain in effect for no more than 6 months from the date of issuance.
(i) The Director of the Delaware Lottery may issue an emergency order for the suspension of any license, other than a video lottery agent license, if the Director finds that:
(1) A licensee has been charged with a violation of the criminal laws of Delaware or any jurisdiction; and
(2) Such action is necessary to preserve the public policy of this subchapter.
An emergency order shall set forth the grounds upon which it is issued and shall be effective immediately upon issuance, and remain in effect until further order of the Director. An emergency order for suspension shall be served upon the licensee within 5 days of issuance. The person or entity against whom the emergency order has been issued shall be entitled to a hearing on an appeal to the Lottery Commission for reconsideration in accordance with the provisions of this chapter and the regulations promulgated hereunder.
(j)(1) Within 30 days after an adverse determination by the Director, the applicant or licensee seeking to appeal the denial of a permit application or revocation or suspension of a previously issued permit may demand a hearing before the Lottery Commission and show cause why the Director's determination was in error. Failure to demand a hearing within the time allotted in this section precludes the person from having an administrative hearing, but in no way affects his right to petition for judicial review.
(2) Upon receipt of a demand 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 demand for the hearing, unless the time of the hearing is changed by the Lottery Commission with the agreement of the Director and the person demanding the hearing. At the hearing, the person seeking the hearing shall have the affirmative obligation to demonstrate by clear and convincing evidence that the Director's determination was in error under the criteria for licensing established by this chapter and any regulations hereunder.
(3) If, upon completion of the hearing, the Lottery Commission determines that the person seeking the hearing has met that person's own burden of proof, an order to that effect should be entered and the license issued. If, upon completion of the hearing, the Lottery Commission finds that the person seeking the hearing has not met that person's own burden of proof, an order shall be entered to that effect. This order is subject to review in the Superior Court pursuant to the Administrative Procedures Act [Chapter 101 of this title].
(k) Any person whose license has been revoked or whose application for a license has been denied shall be prohibited from reapplying for any license for a period of 5 years from the date of the order denying or revoking the license.
77 Del. Laws, c. 219, § 20; 70 Del. Laws, c. 186, § 1.;
§ 4831. Prohibition on employment of persons or service companies without a license.
(a) It shall be unlawful for any licensed agent to employ or continue to employ an individual or service company that is required to possess a license under the provisions of this chapter, but that is not licensed. A licensed agent who violates the provisions of this section shall pay a fine imposed by the Office of not less than $1,000 and not more than $5,000. A licensed person who knowingly violates the provisions of this section is guilty of a Class A misdemeanor.
(b) Any individual or service company that works or is employed in a position whose duties require licensing under the provisions of this chapter, without holding the requisite license, is guilty of a Class A misdemeanor.
77 Del. Laws, c. 219, § 20.;
§ 4832. Prohibition on employee gaming.
It shall be unlawful for any key employee or gaming employee who is required to hold a license under this chapter to wager on table games or the video lottery in a video lottery facility in which such employee is employed. Violation of this section shall subject the violator to the imposition of a fine.
77 Del. Laws, c. 219, § 20; 70 Del. Laws, c. 186, § 1.;
§ 4833. Exemption from federal law.
Pursuant to § 2 of Chapter 1194, 64 Stat. § 1134, 15 U.S.C. § 1172, the State, acting by and through its duly elected and qualified members of the General Assembly, does declare and proclaim that the State is exempt from Chapter 1194, 64 Stat. § 1134, 15 U.S.C. § 1172, and that the shipment of table gaming equipment, sports lottery machines and video lottery machines to video lottery agents in Delaware, done in accordance with federal law, shall be a legal shipment of a gambling device within the State.
77 Del. Laws, c. 219, § 20.;
§ 4834. List of persons self-excluded from gaming activity.
(a) The Director shall provide by regulation for the establishment of a list of persons self-excluded from gaming activity at video lottery facilities. A person may request placement on the list of self-excluded persons by acknowledging in a manner to be established by the Director that the person is a problem gambler and by agreeing that, during the period of voluntary exclusion, the person may not collect any winnings or recover any losses resulting from any gaming activity at a video lottery facility.
(b) A person may request placement on the list of self-excluded persons for any of the following periods:
(1) Lifetime;
(2) Five years;
(3) One year.
(c) The Director shall establish procedures for placements on and removals from the list of self-excluded persons and procedures for the transmittal to operators of a video lottery facility of identifying information concerning self-excluded persons.
(d) The Director shall require licensed agents of video lottery facilities to establish procedures designed to:
(1) Prevent self-excluded persons from engaging in any gaming activity;
(2) Remove them from any forms of advertising or promotions; and
(3) Deny self-excluded persons access to credit, complimentaries, check cashing privileges, and similar benefits.
(e) The list of self-excluded persons shall be confidential and not open to public inspection under Chapter 100 of this title.
(f) A licensed video lottery agent and the directors, officers and employees of a video lottery agent shall not be liable to any self-excluded person or any other party in any judicial proceeding for any harm, monetary or otherwise, that may arise as a result of the failure of the video lottery facility to withhold gaming privileges to a self-excluded person.
(g) A licensed video lottery agent and the directors, officers and employees of a licensed video lottery agent shall not be liable to any self-excluded person or any other party in any judicial proceeding for any harm, monetary or otherwise, which may arise as a result of disclosure in any manner, other than a wilfully unlawful disclosure, of the identity of any self-excluded person.
77 Del. Laws, c. 219, § 20.;
§ 4835. Exclusion or ejection of certain persons from video lottery facilities.
(a) The Director shall by regulation provide for the establishment of a list of persons who are to be excluded or ejected from any licensed video lottery facility. Persons shall be placed on the list by order of the Director, predicated upon the filing of a petition by the Division of Gaming Enforcement. Persons shall be placed on the list if a reasonable basis exists for believing that the person's presence in the facility is inimical to the interests of this State or to the operation of the video lottery facilities, or both. Such provisions shall define the standards for exclusion and shall require the Director and the Division of Gaming Enforcement to consider any:
(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;
(2) Violation or conspiracy to violate any of the provisions of § 1471 of Title 11;
(3) The failure to disclose an interest in a video lottery facility for which the person must obtain a license;
(4) Wilful evasion of fees or taxes;
(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
(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.
(b) In considering placement on the exclusion list, it shall be improper to discriminate on any basis prohibited by § 711(a) of Title 19.
(c) Whenever the name and description of any person is placed on a list pursuant to this section, the Director shall serve notice of such fact to such person:
(1) By personal service;
(2) By certified mail to the last known address of such person; or
(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.
(d) Within 30 days after service by mail or in person or 60 days after the last publication, the person named may demand a hearing before the Lottery Commission and show cause why that person's name should be taken from such a list. Failure to demand a hearing within the time allotted in this section precludes the person from having an administrative hearing, but in no way affects that person's right to petition for judicial review.
(e) Upon receipt of a demand 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 demand for the hearing, unless the time of the hearing is changed by the Lottery Commission with the agreement of the Division of Gaming Enforcement and the person demanding the hearing. At the hearing, the Division of Gaming Enforcement shall have the affirmative obligation to establish a reasonable basis that the person named for exclusion satisfies the criteria for exclusion established by this section and any regulations hereunder.
(f) If, upon completion of the hearing, the Lottery Commission determines that:
(1) The Division of Gaming Enforcement has not met its burden of proof, an order shall be entered requiring that the person's name be removed from the list of excluded persons and requiring the Director to so notify all video lottery agents of the person's removal from the list.
(2) Placing the person on the exclusion list was proper, an order shall be entered to that effect, and the Director shall serve a copy of that order on the person so named pursuant to subsection (c) of this section, supra, as well as all video lottery agents. This order is subject to review in the Superior Court, which shall have exclusive jurisdiction over appeals of exclusion listings from the Lottery Commission.
(g) Nothing contained in this section shall:
(1) Affect the common law right of a video lottery agent, as an owner or lessor of property, from excluding or ejecting any person from its property for any reason that is not unlawful; or
(2) Be applicable to any action undertaken by a video lottery agent in the exercise of such right.
77 Del. Laws, c. 219, § 20; 70 Del. Laws, c. 186, § 1.;
§ 4836. Penalties for wagering by excluded persons.
(a) Any person whose name has been placed on the list of persons to be excluded or ejected from video lottery facilities, except for persons whose name has been placed on the self-exclusion list, who thereafter knowingly enters the premises of a video lottery facility, is guilty of a Class A misdemeanor.
(b) Any person whose name has been placed on the self-exclusion list, who thereafter knowingly enters a gaming area, is guilty of a Class A misdemeanor.
(c) A licensed agent shall have a duty to keep from its premises any person who is on the list of persons to be excluded from entering a video lottery facility, and shall have a duty to keep from its gaming room any person who is on the self-exclusion list. 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, or knowingly fails to exclude or eject from its gaming room any person on the self-exclusion list.
(d) A person who is prohibited from gaming activity by any order of the Director, or court of competent jurisdiction, or by any provision of this chapter, including underage persons and any person on the exclusion or self-exclusion list, shall not collect, in any manner or proceeding, any winnings or recover any losses arising as a result of any prohibited gaming activity.
(e) In addition to any other penalty provided by law, any money or thing of value which has been obtained by any person prohibited from gaming activity in a video lottery facility shall be subject to an order of forfeiture by the Director, following notice to the prohibited person and an opportunity for the prohibited person to be heard.
(f) The Director shall establish regulations concerning the disposition of any forfeited funds received under this section.
77 Del. Laws, c. 219, § 20.;
§ 4837. Lottery Commission.
(a) The Lottery Commission is created in the Department of Finance. The Lottery Commission shall be composed of 5 members who shall be citizens of the State, including at least 1 certified public accountant, 1 lawyer, 1 businessperson, 1 person with experience in law enforcement, and 1 public member, all of whom shall be appointed by the Governor and confirmed by the Senate, provided however, no member shall be a member of the Standardbred Owners Association, the Delaware Thoroughbred Horsemen's Association, or an owner, employee or agent of a video lottery agent. The Governor shall name the Chairperson of the Commission from among its members and the Chairperson shall serve in that capacity at the Governor's pleasure. Each of the members shall serve for a term of 5 years and until that member's successor qualifies. No member shall serve for more than 1 full 5-year term. Not more than 3 members of the Commission shall be of the same political party. No member shall hold any elected or appointed office under the government of the United States or the State or be a candidate for such office.
(b) A person appointed to fill a vacancy on the Lottery Commission holds office for the remainder of the unexpired term of the former member. Of the initial members, 1 must be appointed for a 1-year term, 1 must be appointed for a 2-year term, 1 must be appointed for a 3-year term, and 1 must be appointed for a 4-year term and the remainder must be appointed for a 5-year term. Thereafter, all members shall serve 5-year terms.
(c) Prior to the nomination of a candidate to serve on the Lottery Commission, the Division of Gaming Enforcement shall review, in accordance with the standards of a key employee, the background, qualifications and suitability of each nominee and make an appropriate report to the Governor. The Governor may at any time, after notice and hearing, remove any Commission member for gross inefficiency, neglect of duty, malfeasance, misfeasance or nonfeasance in office.
(d) To serve on the Lottery Commission, a member may not be and may not ever have been an employee, officer, director, owner of securities of a video lottery agent, or owner of a licensed service company, nor a member of the immediate family of an employee, officer, director or owner of a video lottery agent; may not ever have had a material or financial interest in a video lottery agent or a licensed service company; and may not ever have been engaged in any services on behalf of a video lottery agent or a licensed service company related to the activities of the lottery. The provisions of Chapter 58 of Title 29 (State Employees', Officers' and Officials' Code of Conduct) apply to all members of the Lottery Commission and to all agents appointed or otherwise employed by the Lottery Commission. No person convicted of a felony or crime involving moral turpitude shall be eligible for appointment nor appointed as a commissioner.
(e) The Lottery Commission shall have powers, duties and responsibilities as specified in this title. Included among the powers, duties and responsibilities are those specified in this subsection. The Lottery Commission shall receive reasonable staff support in the performance of its duties from Department of Finance staff who do not report to the Office, and from a deputy attorney general assigned to the Commission. The Lottery Commission shall:
(1) Provide the Secretary of Finance and Director with advice and guidance with respect to the development of policy in those areas where rule- and regulation-making authority is entrusted to the Director.
(2) Provide guidance on new initiatives which may from time to time be proposed by the Director and recommend to the Director initiatives that the Commission believes would benefit the Lottery.
(3) Conduct hearings relating to licensing disputes, exclusion list disputes, and other disputes as specified in this chapter or by rule and regulation.
(4) As it deems necessary, subpoena witnesses and documents, administer and examine persons under oath, and appoint hearing officers as the Commission finds appropriate to conduct investigations and hearings pursuant to this chapter. If any person refuses to obey any subpoena or to testify or to produce any books, papers or documents, then the Director may apply to the Superior Court of the county in which the Commission may be sitting and, thereupon, the Court shall issue its subpoena requiring the person to appear and testify or to produce the books, papers and documents before the Director. Whoever fails to obey or refuses to obey a subpoena of the Superior Court shall be guilty of contempt of court and shall be punished accordingly. False swearing on the part of any witness shall be deemed perjury and shall be punished as such.
(5) Review and approve all regulations issued by the Director on or after July 1, 2010, pursuant to specific provisions of this title, before such regulations are implemented.
(f) The members of the Board shall receive $250 for each day's attendance at the meetings of the Commission, not to exceed 24 days' attendance in any 1 calendar year; and they shall be reimbursed for their actual travel and other necessary expenses incurred in attending meetings and transacting the business of the Commission.
77 Del. Laws, c. 219, § 20.;
§§ 4838-4849. [Reserved.]
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