10 Del. Admin. Code § 202-3.0

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

Section 202-3.0 - Licensing of Agents

3.1 Application. Any person interested in obtaining a license as an Agent must first file an "Application for Lottery Sales Agent's License" with the Director . The applications, as well as other documents submitted to the Lottery Office and the DGE by the applicant for the purposes of determining the qualifications of the applicant, must be sworn to or affirmed before a notary public. The applicant must grant to the Lottery Office and the DGE the right to perform a security investigation and to release to the Lottery Office and the DGE any criminal history found by the SBI and the Federal Bureau of Investigation. The applicant must also grant to the Lottery Office and the DGE the right to perform a routine credit check on the applicant. The DGE, or persons acting at the direction of the DGE, shall conduct the security, fitness, and background checks required by the Delaware Code and these Regulations. If an applicant, licensee, registrant, or any other person who must be qualified pursuant to 29 Del.C. Ch. 48 refuses to provide information, evidence, or testimony upon formal request by the Director or the DGE, the Director may deny or revoke the application, license, registration, or qualification of such person.

3.2 Eligibility for License. Before issuing any license, the Director shall consider certain factors, including, but not limited to:

3.2.1 The financial responsibility and security of the applicant and the applicant's business or activity;

3.2.2 The honesty and integrity of the applicant;

3.2.3 The accessibility to the public of the applicant's place of business or activity;

3.2.4 The sufficiency of the number of existing licensees to serve the public convenience;

3.2.5 The volume of expected sales of the applicant;

3.2.6 The veracity of the information supplied in the "Application for Lottery Sales Agent's License";

3.2.7 The results of the applicant's state and federal criminal history record check;

3.2.8 The extent to which the applicant is 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;

3.2.9 Whether the applicant's experience, character, and general fitness are such that his or her participation as an Agent would be consistent with the public interest, convenience and the purposes of Delaware lottery laws; and

3.2.10 Whether the applicant has obtained from the Delaware Division of Revenue a license to conduct business and whether the applicant's license is current and has been kept current for all applicable time periods.

3.3 Ineligibility of Certain Persons.

3.3.1 The Lottery Office shall not issue a license to act as an Agent to any person who is under the age of twenty-one (21). Nothing herein shall be construed to mean an employee of any Agent must be twenty-one (21) years old to sell tickets within the licensed establishment.

3.3.2 The Lottery Office shall not issue to any person a license to sell lottery tickets if the person will engage in business primarily as a lottery sales agent.

3.4 Issuance of License

3.4.1 The Director shall license, in accordance with the provisions of Delaware Law and these Regulations, such persons as Agents to sell lottery tickets who, as in his option, will best serve the public convenience and promote the sale of lottery tickets.

3.4.2 The issuance of a license signifies an agreement by the agent to abide by all of the provisions of the Delaware Code and these Regulations. All Agents shall also sign the Lottery Retailer Agreement and abide by its terms. The Director shall provide a form of the Lottery Retailer Agreement to each Agent for his signature. The Director may revise the Lottery Retailer Agreement at his discretion and from time to time. If an Agent fails to abide by the terms of the Lottery Retailer Agreement, such violation may result in the suspension, revocation, or non-renewal of the Agent's license.

3.4.3 An Agent's license shall be reviewed annually on or about the anniversary date of the original issuance.

3.4.4 The Director reserves the right to require a surety bond from every Agent in such amount consistent with his determination of the financial stability of said Agent so as to avoid any monetary loss to the State because of the Agent's activities in the sale of lottery tickets.

3.5 License to be Displayed

3.5.1 Every Agent shall prominently display his lottery license in an area visible to the general public.

3.5.2 Agents must also display their State of Delaware, Division of Revenue business license in an area that is prominently visible to the general public.

3.5.3 The Agent shall maintain and display all promotional material in conjunction with ticket sales in accordance with instructions issued by the Lottery Office.

3.6 Sale of Lottery Tickets at Specific Locations, Licensed and Nontransferability

3.6.1 An Agent may sell lottery tickets only at the specific location named in the Agent's license.

3.6.2 No other sales of lottery tickets are permitted, except as provided in the Delaware Code or these Regulations.

3.7 Sale and/or Transfer of Ownership of Specific Licensed Locations

3.7.1 All Agents are required to notify the Lottery Office of a pending sale of a specific licensed location. This requirement of notice includes ownership change in corporations as well as individual ownership changes affecting a specific licensed location. No license may be transferred, assigned, or pledged as collateral. All licenses to sell lottery tickets are nontransferable.

3.7.2 Any change in ownership of a specific licensed location requires a new Agent application process. Change of ownership does not automatically guarantee the granting of a license to the new ownership. If a licensee dies, the Lottery Office will suspend operations at the Agent's location until a new Agent application is approved for that location.

3.8 Liability of Lottery Office and State of Delaware. All Agents shall hold the Lottery Office, all Lottery employees, and the State of Delaware harmless from any liability arising in connection with conducting lottery ticket sales.

10 Del. Admin. Code § 202-3.0

22 DE Reg. 494 (12/1/2018) (Final)