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<section article="gsg" article_name="State Government" number="9-1A-01" title_number="9" title_name="Miscellaneous Executive Agencies" subtitle_number="1A" subtitle_name="Video Lottery Terminals">
  <level label="a">
    <text>In this subtitle the following words have the meanings indicated.</text>
  </level>
  <level label="b">
    <text>“Applicant” means a person who applies for any license required under this subtitle.</text>
  </level>
  <level label="c">
    <text>“Associated equipment” means hardware located on the licensee’s premises that is connected to the video lottery system for the purpose of performing communication, validation, or other functions, but not including the communication facilities of a regulated utility or the video lottery terminals.</text>
  </level>
  <level label="d">
    <text>“Average payout percentage” means the average percentage of money used by players to play a video lottery terminal that is returned to players of that video lottery terminal.</text>
  </level>
  <level label="e">
    <text>“Award” means the act, by the Video Lottery Facility Location Commission, of approving the issuance of a video lottery operation license by the State Lottery and Gaming Control Commission to an applicant for the operation of video lottery terminals at a specified location.</text>
  </level>
  <level label="f">
    <text>“Background investigation” means a security, criminal, and credit investigation of a person who applies for or who is granted a license under this subtitle.</text>
  </level>
  <level label="g">
    <text>“Career offender” means a person whose behavior is pursued in an occupational manner or context for the purpose of economic gain and who utilizes methods that are deemed by the Commission as criminal violations inimical to the interest of the State.</text>
  </level>
  <level label="h">
    <text>“Career offender cartel” means a group of persons who operate together as career offenders.</text>
  </level>
  <level label="i">
    <text>“Central monitor and control system” means a central system provided to and controlled by the Commission to which video lottery terminals communicate for purposes of:</text>
    <level label="1">
      <text>information retrieval;</text>
    </level>
    <level label="2">
      <text>retrieval of the win and loss determination from video lottery terminals; and</text>
    </level>
    <level label="3">
      <text>programs to activate and disable video lottery terminals.</text>
    </level>
  </level>
  <level label="j">
    <text>“Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services.</text>
  </level>
  <level label="k">
    <text>“Commission” means the State Lottery and Gaming Control Commission.</text>
  </level>
  <level label="l">
    <text>“Control” means the authority to direct the management and policies of an applicant or licensee.</text>
  </level>
  <level label="m">
    <text>“Costs” means, unless the context otherwise requires, the expenses incurred by the Commission in the administration of this subtitle, including:</text>
    <level label="1">
      <text>the costs of leasing or the capitalized cost of purchasing the video lottery terminals, central monitor and control system, and associated equipment and software;</text>
    </level>
    <level label="2">
      <text>the costs to repair and maintain the video lottery terminals, central monitor and control system, and associated equipment and software to the extent these costs are not included in the costs of leasing or purchasing the video lottery terminals, central monitor and control system, and associated equipment and software;</text>
    </level>
    <level label="3">
      <text>the costs of testing and examination of video lottery terminals and the central monitor and control system; and</text>
    </level>
    <level label="4">
      <text>the costs of performing background investigations and other related activities.</text>
    </level>
  </level>
  <level label="n">
    <text>“Family” means spouse, parents, grandparents, children, grandchildren, siblings, uncles, aunts, nephews, nieces, fathers–in–law, mothers–in–law, daughters–in–law, sons–in–law, brothers–in–law, and sisters–in–law, whether by whole blood or half blood,  marriage, adoption, or natural relationship.</text>
  </level>
  <level label="o">
    <text>“Institutional investor” means:</text>
    <level label="1">
      <text>a retirement fund administered by a public agency for the exclusive benefit of federal, state, or local public employees;</text>
    </level>
    <level label="2">
      <text>an investment company registered under the Investment Company Act of 1940;</text>
    </level>
    <level label="3">
      <text>a collective investment trust organized by banks under Part 9 of the rules of the Comptroller of the Currency;</text>
    </level>
    <level label="4">
      <text>a closed end investment trust;</text>
    </level>
    <level label="5">
      <text>a chartered or licensed life insurance company;</text>
    </level>
    <level label="6">
      <text>a property and casualty insurance company;</text>
    </level>
    <level label="7">
      <text>a banking or other chartered or licensed lending institution;</text>
    </level>
    <level label="8">
      <text>an investment advisor registered under the Investment Advisors Act of 1940; or</text>
    </level>
    <level label="9">
      <text>any other person registered in any foreign jurisdiction and regulated in accordance with a statute of any foreign jurisdiction that the Commission determines to be substantially similar to that regulated by the Investment Company Act of 1940 or the Investment Advisors Act of 1940.</text>
    </level>
  </level>
  <level label="p">
    <text>“License” means, unless the context otherwise requires, a license required under this subtitle.</text>
  </level>
  <level label="q">
    <text>“Licensee” means an applicant who has been issued a license required under this subtitle.</text>
  </level>
  <level label="r">
    <text>“Manufacturer” means a person:</text>
    <level label="1">
      <level label="i">
        <text>that is engaged in the business of designing, building, constructing, assembling, manufacturing, or distributing a central monitor and control system, video lottery terminals, associated equipment or software, or the cabinet in which a video lottery terminal is housed;</text>
      </level>
      <level label="ii">
        <text>that produces a product that is intended for sale, lease, or other assignment to the Commission or a licensee; and</text>
      </level>
      <level label="iii">
        <text>that contracts with the Commission or a licensee for the sale, lease, or other assignment of a product described in  item (i) of this item; or</text>
      </level>
    </level>
    <level label="2">
      <level label="i">
        <text>that is engaged in the business of designing, building, constructing, assembling, manufacturing, or distributing table games or table game equipment;</text>
      </level>
      <level label="ii">
        <text>that produces a product related to table games that is intended for sale, lease, or other assignment to a licensee; and</text>
      </level>
      <level label="iii">
        <text>that contracts with a licensee for the sale, lease, or other assignment of a product described in item (i) of this item.</text>
      </level>
    </level>
  </level>
  <level label="s">
    <text>“Own” means having a beneficial or proprietary interest of at least 5% in the property or business of an applicant or licensee.</text>
  </level>
  <level label="t">
    <text>“Player” means an individual who plays a video lottery terminal at a video lottery facility licensed by the Commission.</text>
  </level>
  <level label="u">
    <level label="1">
      <text>“Proceeds” means the part of the amount of money bet through video lottery terminals and table games that is not returned to successful players but is otherwise allocated under this subtitle.</text>
    </level>
    <level label="2">
      <level label="i">
        <text>“Proceeds” may be reduced consistent with regulations adopted by the Commission in accordance with subparagraph (ii) of this paragraph.</text>
      </level>
      <level label="ii">
        <text>If a video lottery operation licensee returns to successful players more than the amount of money bet through video lottery terminals or table games on a given day, the video lottery licensee may subtract that amount from the proceeds of up to 7 following days.</text>
      </level>
    </level>
    <level label="3">
      <level label="i">
        <text>Subject to subparagraph (ii) of this paragraph, “proceeds” does not include money given away by a video lottery operation licensee as free promotional play and used by players to bet in a video lottery terminal or at a table game.</text>
      </level>
      <level label="ii">
        <text>After the first fiscal year of operations, the exclusion specified in subparagraph (i) of this paragraph may not exceed a percentage established by the Commission by regulation of the proceeds received from video lottery terminals and table games in the prior fiscal year by the video lottery operation licensee under § 9–1A–27(a)(2), (c)(1)(ii), and (d)(1) of this subtitle.</text>
      </level>
    </level>
  </level>
  <level label="v">
    <text>“Progressive jackpot” means a prize that increases as one or more video lottery terminals are connected to a progressive jackpot system.</text>
  </level>
  <level label="w">
    <text>“Progressive jackpot system” means a system capable of linking one or more video lottery terminals in one or more licensed facilities and offering one or more common progressive jackpots.</text>
  </level>
  <level label="w–1">
    <text>“Racing licensee” means the holder of a license issued by the State Racing Commission to hold a race meeting in the State under Title 11 of the Business Regulation Article.</text>
  </level>
  <level label="w–2">
    <text>“Table game equipment” means equipment that is related to the operation of table games and that is owned or leased by the video lottery facility and located on the video lottery facility’s premises.</text>
  </level>
  <level label="w–3">
    <text>“Table games” means:</text>
    <level label="1">
      <text>roulette, baccarat, blackjack, craps, big six wheel, minibaccarat, poker, pai gow poker, and sic bo, or any variation and composites of such games; and</text>
    </level>
    <level label="2">
      <text>gaming tournaments in which players compete against one another in one or more of the games authorized under item (1) of this subsection.</text>
    </level>
  </level>
  <level label="x">
    <text>“Video lottery” means gaming or betting conducted using a video lottery terminal.</text>
  </level>
  <level label="y">
    <text>“Video lottery destination location” means a location that is eligible for or has been awarded in the manner provided by law a video lottery operation license.</text>
  </level>
  <level label="z">
    <text>“Video lottery employee” means an employee of a person who holds a license.</text>
  </level>
  <level label="aa">
    <text>“Video lottery facility” means:</text>
    <level label="1">
      <text>a facility at which players play video lottery terminals and table games under this subtitle; and</text>
    </level>
    <level label="2">
      <text>a casino for the purposes of the federal Bank Secrecy Act of 1970 and its related regulations.</text>
    </level>
  </level>
  <level label="bb">
    <text>“Video lottery operation license” means a license awarded by the Video Lottery Facility Location Commission and issued by the State Lottery and Gaming Control Commission to a person that allows players to play video lottery terminals and table games.</text>
  </level>
  <level label="cc">
    <text>“Video lottery operator” means a person licensed to operate a video lottery facility under this subtitle.</text>
  </level>
  <level label="dd">
    <level label="1">
      <text>“Video lottery terminal” means any machine or other device that, on insertion of a bill, coin, token, voucher, ticket, coupon, or similar item, or on payment of any consideration:</text>
      <level label="i">
        <text>is available to play or simulate the play of any game of chance in which the results, including the options available to the player, are randomly determined by the machine or other device; and</text>
      </level>
      <level label="ii">
        <text>by the element of chance, may deliver or entitle the player who operates the machine or device to receive cash, premiums, merchandise, tokens, or anything of value, whether the payout is made automatically from the device or in any other manner.</text>
      </level>
    </level>
    <level label="2">
      <text>“Video lottery terminal” includes a machine or device:</text>
      <level label="i">
        <text>that does not directly dispense money, tokens, or anything of value to winning players; and</text>
      </level>
      <level label="ii">
        <text>described under paragraph (1) of this subsection that uses an electronic credit system making the deposit of bills, coins, or tokens unnecessary.</text>
      </level>
    </level>
    <level label="3">
      <text>“Video lottery terminal” does not include an authorized slot machine operated by an eligible organization under Title 12, Subtitle 3 of the Criminal Law Article.</text>
    </level>
  </level>
</section>
