10 Del. Admin. Code § 205-10.0

Current through Register Vol. 28, No. 7, January 1, 2025

Section 205-10.0 - Enforcement and Hearings

10.1 The Director shall not deny any license to an applicant or refuse to renew, suspend, or revoke any license of a licensee unless he or she has afforded the applicant or licensee an opportunity for a hearing on an appeal for reconsideration before the Lottery Commission.

10.2 If the Director determines that an applicant has failed to satisfy the requirements for the granting of a license or that a licensee has failed to continue to satisfy the requirements for the retention of a license, he or she shall serve the applicant a written notice of an intent to deny the application or shall serve the licensee a written notice of an intent to suspend or revoke the license. The written notice must include the reasons for the intended denial, suspension, or revocation and must advise the applicant or licensee of the right to request a hearing on an appeal for reconsideration before the Lottery Commission.

10.3 An applicant or licensee who has received a notice of intent to deny, suspend, or revoke an application or license shall have an opportunity to request a hearing on an appeal for reconsideration before the Lottery Commission within thirty (30) days of receipt of the written notice.

10.4 If an applicant or licensee desires a hearing, it shall provide the Lottery Commission and the Director with a written statement within thirty (30) days of receipt of the notice. The written statement must contain the following:

10.4.1 A clear and concise statement indicating the reasons for appealing the decision of the Director;

10.4.2 A notarized verification by the applicant or the licensee that the information provided is true and accurate; and

10.4.3 The signature of the applicant or the licensee.

10.5 If an applicant or licensee fails to timely file an appeal for reconsideration or withdraws the appeal for reconsideration, the Director shall determine that the applicant or licensee has waived its right to a hearing and that the applicant or licensee has admitted to all of the allegations of fact set forth in the Director's notice of intent to deny, suspend, or revoke the license. The Director shall then take final action, including denying, suspending, or revoking the license.

10.6 The appeal for reconsideration shall be heard by the Lottery Commission. The hearing shall be conducted within thirty (30) days of the receipt of the letter of appeal unless extenuating circumstances require a longer period.

10.7 The Lottery Commission shall provide written notice of the hearing to the parties at least twenty (20) days before the date on which the hearing is to be held.

10.8 At the hearing, the Director or his or her designee shall be responsible for presenting to the Lottery Commission the reasons in support of his or her determination, which may include presenting witnesses, introducing any relevant evidence, and making any necessary arguments.

10.9 If the parties agree to a settlement prior to the conclusion of the hearing, the parties shall submit a signed stipulation to the Lottery Commission. The Lottery Commission shall then schedule a review of the settlement at a public meeting at which time the Lottery Commission shall:

10.9.1 Approve the settlement;

10.9.2 Approve the settlement as modified by the Lottery Commission with the consent of the parties;

10.9.3 Reject the settlement and schedule the matter for further proceedings; or

10.9.4 Take such action as the Lottery Commission deems appropriate.

10.10 The Lottery Commission may not approve any settlement unless the settlement is voluntary, consistent with the law, and fully dispositive of all of the issues in controversy.

10.11 Once the Lottery Commission approves an executed settlement, the settlement will be considered both a withdrawal of the appeal for reconsideration and evidence of the parties' informed consent to such final Lottery Commission action.

10.12 The applicant or licensee may appear individually or by legal counsel.

10.13 With the approval of the Lottery Commission, the applicant, licensee, or the legal counsel of the applicant or licensee may waive the hearing and agree to submit the case for decision on the record, with or without a written brief. Such a waiver or agreement must be in writing and placed in the record.

10.14 The applicant or licensee shall be given an opportunity for argument within the time limits fixed by the Lottery Commission following submission of the evidence. The Lottery Commission, upon request of the applicant or licensee, may accept briefs in lieu of argument. The briefs shall be filed within ten (10) days after the hearing date or within such other time as fixed by the Lottery Commission.

10.15 The Lottery Commission may admit any relevant evidence, except that it shall observe the rules of privilege recognized by law. The Lottery Commission may exclude any evidence which is irrelevant, unduly repetitious, or lacking a substantial probative effect.

10.16 A written record made by a court reporter must be made of all hearings, and all witnesses shall be sworn and subject to cross examination.

10.17 An applicant or licensee shall have the affirmative obligation to establish by clear and convincing evidence that the Director's determination was in error under the criteria for licensing established by Delaware law.

10.18 The Lottery Commission shall render a written decision via an order that sets forth its findings of fact, conclusions of law, and recommendation within 45 days of the date of the hearing, unless extenuating circumstances require a longer period of time. All orders and decisions made by the Lottery Commission under this appeal procedure are final once signed by the required number of Lottery Commission members.

10.19 The Lottery Commission shall submit to the Director a copy of its written decision and order and shall serve the applicant or licensee and any attorney of record with its written decision and order, either in person or by registered or certified mail.

10.20 A person aggrieved by a final decision or order of the Lottery Commission may obtain judicial review by appeal to the Superior Court pursuant to 29 Del.C. § 10142. The filing of an appeal shall not stay enforcement of the decision or order of the Lottery Commission unless a stay is obtained from the court upon application in accordance with the rules of court.

10.21 An applicant or licensee 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 five (5) years from the date of the order denying or revoking the license.

10.22 Any money or thing of value which has been obtained by any person prohibited from gaming activity in a charitable 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 file an appeal for reconsideration by the Lottery Commission in accordance with the procedures set forth in this Section 10.0.

10 Del. Admin. Code § 205-10.0

22 DE Reg. 163 (8/1/2018) (Final)