10 Del. Admin. Code § 203-5.0
Current through Reigster Vol. 28, No. 6, December 1, 2024
Section 203-5.0 - Service Companies: Contracts; Requirements; Duties5.1 The Director shall, pursuant to the procedures set forth in Ch. 69 of Title 29 of the Delaware Code, enter into contracts with licensed service companies as he or she shall determine to be appropriate, pursuant to which the service companies shall furnish by sale or lease to the State video lottery machines in such numbers and for such video games as the Director shall approve from time to time as necessary for the efficient and economical operation of the lottery, or convenience of the players, and in accordance with the agents' business plans as approved and amended by the Director. No more than 2,500 video lottery machines shall be located within the confines of an agent's premises unless the Director approves up to an additional 1,500 machines or other number approved by the Director as permitted by law.5.2 All contracts with service companies who are video lottery machine manufacturers shall include, without limitation, provisions to the following effect:5.2.1 The service company shall furnish a person to work with the agency and its consultants to provide assistance as needed in establishing, planning and executing acceptance tests on the video lottery machines provided by such service company. Service company assistance shall be provided as requested by the agency in troubleshooting communication and technical problems that are discovered when video lottery machines are initially placed at the agent's site;5.2.2 The service company shall submit video lottery machine illustrations, schematics, block diagrams, circuit analysis, technical and operation manuals, program source code and object code and any other information requested by the Director for purposes of analyzing and testing the video lottery machines. A maximum of $100 shall be permitted for wagering on a single play of any video game except that the Director pursuant to subsection 7.3 may authorize play on a video lottery machine in excess of the $100 maximum bet limit;5.2.3 For testing, examination and analysis purposes, the service company shall furnish working models of video lottery machines, associated equipment, and documentation at locations designated by the Director. The service company shall maintain the current software and video lottery machines in good working order acceptable to the agency. The service company shall pay all costs of any testing, examination, analysis and transportation of the video lottery machines, which may include the entire dismantling of the machines and some tests that may result in damage or destruction to one or more electronic components of the machines. The agency and its agents shall have no liability for any damage or destruction. The agency may require that the service company provide specialized equipment or the agency may employ the services of an independent technical laboratory expert to test the video lottery machine at the service company's expense;5.2.4 Service companies shall submit all hardware, software, and test equipment necessary for testing of their video lottery machines, and shall provide the Director with keys and locks subject to the Director's specifications for each approved video lottery machine;5.2.5 The EPROMs, CDs, or other equivalent technology of each video lottery machine shall be certified to be in compliance with published specifications;5.2.6 No video lottery machine shall be put into use prior to certification of its model by the Director.5.2.7 All game software being shipped into the State of Delaware is required to be sent to the lottery office.5.3 All contracts with service companies shall include without limitation, provisions to the following effect; 5.3.1 Service companies shall agree to promptly report any violation or any facts or circumstances that may result in a violation of these rules; provide immediate access to all its records and its physical premises for inspection at the request of the Director; attend all trade shows or conferences as required by the Director;5.3.2 Service companies shall agree to modify their hardware and software as necessary to accommodate video game changes directed by the agency from time to time;5.3.3 Service companies shall provide such bonds and provide evidence of such insurance as the Director shall require from time to time and in such amounts and issued by such companies as the Director shall approve; and5.3.4 Service companies shall have a valid license to conduct business in the State of Delaware, shall comply with all applicable tax provisions, and shall in all other respects be qualified to conduct business in Delaware.5.4 Each video lottery machine and table game equipment certified by the Director shall bear a unique serial number and shall conform to the exact specifications of the video lottery machine model or table game equipment model tested and certified by the Director.5.5 The lottery office prescribes testing standards, or portions thereof, for video lottery machines and table game equipment, which standards are incorporated by reference into these regulations. The materials listed in this subsection have the full force of law.5.5.1 To be certified by the Director, the video lottery machine or table game equipment must meet, as a minimum testing requirement, the standards set forth below, unless an exception is otherwise noted:5.5.1.1 GLI Standard 11, version 3.0 (release date September 21 2016) for gaming devices.5.5.1.2 GLI Standard 13, version 2.1 (release date September 6, 2011) for on-line monitoring and control systems and validation systems in casinos.5.5.1.3 GLI Standard 24, version 1.3 (release date September 6, 2011) for electronic table game systems; however, as an exception, the minimum payout will be 82%.5.5.2 All of the materials incorporated by reference are available for inspection from Gaming Laboratories International, Inc. ("GLI"), 600 Airport Road, Lakewood, New Jersey 08701. For more information, call 1-732-942-3999 or go to the GLI website at: https://www.gaminglabs.com/contact-us.5.5.3 All of the materials incorporated by reference in this subsection are also publicly posted on the following websites:5.6 Service companies shall hold harmless the agency, the State of Delaware, and their respective employees for any claims, loss, cost, damage, liability or expense, including, without limitation, legal expense arising out of any hardware or software malfunction resulting in the wrongful award or denial of credits or cash.5.7 A service company shall not distribute a video lottery machine for placement in the state unless the video lottery machine has been approved by the agency. Only licensed service companies may apply for approval of a video lottery machine or associated equipment. The service company shall submit 2 copies of video lottery machine illustrations, schematics, block diagrams, circuit analysis, technical and operation manuals, program source code and object code, and any other information requested by the agency for purposes of analyzing and testing the video lottery machine or associated equipment.5.8 The agency may require that 2 working models of a video lottery machine be transported to the location designated by the agency for testing, examination, and analysis. The service company shall pay all costs of testing, examination, analysis and transportation of such video lottery machine models, which may include the entire dismantling of the video lottery machine and tests which may result in damage or destruction to one or more electronic components of such video lottery machine model. The agency may require that the service company provide specialized equipment or the services of an independent technical expert in testing the terminal.5.9 After each test has been completed, the agency shall provide the video lottery machine service company with a report that contains findings, conclusions, and pass/fail results. Prior to approving a particular video lottery machine model, the agency may require a trial period not in excess of 60 days for a licensed agent to test the video lottery machine. During the trial period, the service company may not make any modifications to the video lottery machine model unless such modifications are approved by the agency.5.10 The service company is responsible for the assembly and initial operation, in the manner approved and licensed by the agency, of all its video lottery machines and associated equipment. The service company may not change the assembly or operational functions of any of its video lottery machines approved for placement in Delaware unless a "request for modification to an existing video lottery machine prototype" is made to the agency, that request to contain all appropriate information relating to the type of change, reason for change, and all documentation required. The agency must approve such request prior to any changes being made, and the agency shall reserve the right to require second testing of video lottery machines after modifications have been made.5.11 Each video lottery machine approved for placement in a licensed agent's place of business shall conform to the exact specifications of the video lottery machine prototype tested and approved by the agency. Any video lottery machine which does not so conform shall be disconnected from the Delaware video lottery system until compliance has been achieved. Each video lottery machine shall at all times operate and be placed in accordance with the provisions of these regulations.5.12 The following duties are required of all licensed service companies, without limitation: 5.12.1 Manufacture terminals and associated equipment for placement in Delaware in accordance with the specifications of the agency.5.12.2 Manufacture terminals and associated equipment to ensure timely delivery to licensed Delaware agents.5.12.3 Maintain and provide an inventory of associated equipment to assure the timely repair and continued, approved operation and play of licensed video lottery machines acquired under the contract for placement in Delaware, provided further that said equipment will be maintained at a Delaware storage facility or warehouse.5.12.4 Provide an appropriate number of service technicians with the appropriate technical knowledge and training to provide for the service and repair of its licensed video lottery machines and associated equipment so as to assure the continued, approved operation and play of those licensed video lottery machines acquired under contract for placement in Delaware.5.12.5 Obtain any certification of compliance required under the applicable provisions of rules adopted by the Federal Communications Commission.5.12.6 Promptly report to the agency any violation or any facts or circumstances that may result in a violation of State or Federal law and/or any rules or regulations adopted pursuant thereto.5.12.7 Conduct video lottery operations in a manner that does not pose a threat to the public health, safety, or welfare of the citizens of Delaware, or reflect adversely on the security or integrity of the video lottery.5.12.8 Hold the agency and the State of Delaware and its employees harmless from any and all claims that may be made against the agency, the State of Delaware, or the employees of either, arising from the service company's participation in or the operation of a video lottery game.5.12.9 Defend and pay for the defense of all claims that may be made against the agency, the State of Delaware, or the employees of either, arising from the service company's participation in video lottery operations.5.12.10 Maintain all required records.5.12.11 Lease or sell only those licensed video lottery machines, validation units and associated equipment approved under these regulations.5.12.12 It shall be the continuing duty of the service company licensee to provide the Director with an updated list of the names and addresses of all its employees who are involved in the daily operation of the video lottery machines. These employees will include individuals or their supervisors involved with (1) the repair or maintenance of the video lottery machines, or (2) positions that provide direct access to the video lottery machines. It shall be the continuing duty of the service company licensee to provide for the bonding of each of these individuals to ensure against financial loss resulting from wrongful acts on their parts.5.12.13 It shall be the ongoing duty of the service company licensee to notify the Director of any change in officers, partners, directors, key employees, video lottery operations employees, or owners. These individuals shall also be subject to a background investigation. The failure of any of the above-mentioned individuals to satisfy a background investigation may constitute "cause" for the suspension or revocation of the service company's license.5.12.14 Supervise its employees and their activities to ensure compliance with these rules.5.12.15 Promptly report to the lottery office any violation or any facts or circumstances that may result in a violation of State or Federal law and/or any rules or regulations pursuant thereto, excluding violations concerning motor vehicle laws.5.12.16 Comply with such other requirements as shall be specified by the Director.10 Del. Admin. Code § 203-5.0
22 DE Reg. 500 (12/1/2018)
28 DE Reg. 386 (11/1/2024) (Final)