10 Del. Admin. Code § 205-3.0

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

Section 205-3.0 - Licensing of Agents

3.1 Any applicant desiring to obtain a license to act as an agent shall apply to the agency on forms specified by the Director. Application forms shall require the applicant to provide the following, without limitation:

3.1.1 The applicant's full legal name, address, type of organization (fraternal or veterans), organizational identification number or Federal Employer's Identification Number (FEIN); and the names, addresses, social security numbers and dates of birth of all officers of the applicant's organization.

3.1.2 Certified copies of the applicant's certificate of incorporation, certificate of formation, or a certificate of good standing, and other documents that constitute or explain the legal organization of the applicant.

3.1.3 Any and all other information as the Director may require to determine the competence, honesty and integrity of the applicant as required by Title 29, Chapter 48 of the Delaware Code.

3.2 The application, as well as other documents submitted to the agency by or on behalf of the applicant for purposes of determining the qualifications of the applicant, shall be sworn to or affirmed before a notary public.

3.3 Upon request of the agency, the applicant shall supplement the information provided in the application as deemed necessary by the agency. The applicant shall furnish all information, including financial data and documents, certifications, consents, waivers, individual history forms, tax returns, cancelled checks or other materials required or requested by the agency for purposes of determining the qualifications of the applicant.

3.4 To the extent, if any, that the information supplied in the application, or otherwise supplied by the applicant or on the applicant's behalf, becomes inaccurate or incomplete, the applicant shall so notify the agency in writing as soon as it is aware that the information is inaccurate or incomplete and shall at that time supply the information necessary to correct the inaccuracy or incompleteness of the information.

3.5 The applicant shall cooperate fully with the agency and the DGE with respect to the applicant's background investigation. Among other things, the applicant, upon request, shall make available any and all of its books or records for inspection by the agency or the DGE.

3.6 As soon as the agency has determined that the application is complete, it shall forward the same to the DGE, which shall, as soon as practicable, undertake and complete the background investigation of the applicant and its officers and report its findings to the agency.

3.7 The Director shall weigh the following factors in his or her evaluation of the application:

3.7.1 The criminal background, if any, of the applicant or any of its officers. No license shall be issued to any applicant if any of the persons identified on the application have been convicted, within ten (10) years prior to the filing of the application, of any felony, a crime of moral turpitude or a crime involving gambling.

3.7.2 The degree to which the applicant has supplied accurate and complete information pursuant to the requirements of these rules.

3.7.3 The extent to which the applicant has cooperated with the agency and the DGE in connection with the background investigation.

3.7.4 Whether the person, or any of its officers, are known to associate with persons of nefarious backgrounds or disreputable character such that the association could adversely affect the general credibility, security, integrity, honesty, fairness or reputation of the lottery office.

3.7.5 With respect to any past conduct which may adversely reflect upon the applicant, the nature of the conduct, the amount of time that has passed since the conduct, the frequency of the conduct and any extenuating circumstances that affect or reduce the impact of the conduct or otherwise reflect upon the applicant's fitness for the license.

3.7.6 The extent, if any, to which the applicant has failed to comply with any applicable tax laws of the federal, state or local governments.

3.7.7 Any other information before the Director, including substantially similar background investigations performed by other agencies or jurisdictions, which relates to the applicant's competency, financial capability, honesty, integrity, reputation, habits, or associations.

3.8 A license shall be issued to the applicant if the Director is satisfied, upon consideration of the factors specified in subsection 3.7, that the applicant would be a fit agent and not pose a threat to the public interest, the reputation of the lottery office, or the effective control of the lottery office.

3.9 The granting of any license to an agent or the renewal of an agent's license is subject to the following conditions:

3.9.1 Operation pursuant to a license issued under these rules shall signify agreement by the agent to abide by all provisions of these rules and the requirements of Delaware and federal laws and regulations.

3.9.2 The agent shall at all times make its premises available for inspection during all operational hours by authorized representatives of the agency or the DGE personnel. The lottery office and the DGE shall be authorized to enter the premises and to access any charitable video lottery machines or records of the agent without acquiring a warrant.

3.9.3 To the extent permitted by law, an agent accepts all risks of adverse public notice, embarrassment, criticism, damages, or financial loss which may result from any disclosure or publication of material or information supplied to the agency in connection with the application for the agent's operations.

3.9.4 An agent shall immediately notify the agency of any proposed or effective change regarding the makeup of the officers who assume responsibility of the agent.

3.9.5 An agent has a continuing duty to maintain suitability for licensure. A license does not create a property right, but is a revocable privilege that is contingent upon the agent's continuing suitability for licensure.

3.9.6 An agent may not transfer, assign, or pledge as collateral any license to which it has been granted. If, after the Director has issued a license to an agent, the agent's organization loses its good standing with the State of Delaware or if any other action occurs which causes the agent to no longer qualify as a Charitable Gaming Organization as defined in 29 Del.C. § 4803 (a), the agent's license will automatically terminate ninety (90) days after such event.

3.10 To the extent provided by law, any information obtained pursuant to this Section 3 shall be held in confidence and not subject to the Delaware Freedom of Information Act, 29 Del.C. Ch. 100.

10 Del. Admin. Code § 205-3.0

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