This subtitle applies to the State’s Video Lottery Terminal and Table Games Program. In addition to the terms defined in State Government Article, §9-1A-01, Annotated Code of Maryland, which have the same meanings in this subtitle, in this subtitle and in COMAR 36.04 and 36.05 the following terms have the meanings indicated. Terms Defined. “Beneficial owner” means a person that holds at least a 5 percent interest in an applicant for, or holder of, a license awarded or issued under this subtitle that is evidenced by: Record ownership; Stock or other ownership in an entity in a chain of parent and subsidiary, or affiliate entities, any one of which participates in the capital or profits of a video lottery facility operator licensee; or An interest that entitles a person to benefit substantially and is equivalent to ownership by an agreement, relationship, or other arrangement; or Compensation of a person, in any financial, legal, or beneficial form, if the compensation is based on revenue generated by a video lottery facility operator licensee, including a percentage share on, or any compensation that is tied to, the performance of a video lottery facility operator licensee’s operations. “Change in employment status” means, for an individual holding an unexpired video lottery employee license: Employment at a facility that is different from the facility at which the individual is currently employed; Re-employment at a facility at which the individual was previously employed; and Except for an unexpected termination from employment, a separation from employment with a facility. “Contractor” or “gaming contractor” means a person who contracts with a video lottery operation licensee to provide services as a Tier 1 or Tier 2 contractor that may include: Management or operation; Security; Service, maintenance, update, or repair of video lottery or table game equipment or associated equipment or software; Own or control a person described in §B(2)(a)—(c) of this regulation; or Any other service for which the Commission requires a contractor license. “Contractor — Tier 1” or “Tier 1 contractor” means a person, other than an employee of a video lottery operation licensee, who contracts with a video lottery operation licensee or other person to: Manage or operate a video lottery facility; Provide security for a video lottery facility; Perform service, maintenance, or repairs of a video lottery terminal, table game device, central operating system, associated equipment, or software; Provide junket enterprise services; or Provide any other service that is essential to operation of a video lottery facility that may involve contact with or access to: A central operating system; A facility’s video lottery system; A video lottery terminal; or An electronic component of a table game. “Contractor — Tier 2” or “Tier 2 contractor” means a person, other than an employee of a video lottery operation licensee, who contracts with a video lottery operation licensee or other person to provide a service that is essential to the operation of a video lottery facility, but has no contact or access to: A central operating system; A facility’s video lottery system; A video lottery terminal; or An electronic component of a table game. “Controlling entity” means an entity that possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract, by beneficial ownership, or otherwise. “Counter check” means a negotiable instrument made available by a facility operator to a player for whom credit has been authorized under COMAR 36.03.10.24 of this chapter to effect: A short-term extension of credit to enable the player to take part in gaming; and The payment of the credit extended by the transfer of funds from the player’s bank account to the facility operator in accordance with a deposit schedule complying with COMAR 36.03.10.29. “Dealer” means an employee of a facility operator whose primary function is to directly operate and conduct table games. “Facility” means a video lottery facility. “Facility operator” means a person who operates or manages the operation of a video lottery facility. “Fill” means the distribution of gaming chips, coins, and plaques to a gaming table to replenish the table inventory. “Floorperson” means an employee of a facility operator whose primary function is to supervise the conduct of table games at multiple tables on the gaming floor. “Gaming chip” means a roulette chip, poker rake chip, tournament chip, or value chip. “Gaming day” means a period of time determined by the Commission not to exceed 24 hours marking the beginning and ending times of gaming activities for the purposes of accounting reports and determination by the central monitor and control system of daily proceeds. “Gaming employee” means an individual who: Is or is seeking to be employed by an applicant for or holder of an operation license, whose duties relate or will relate to the operation of a facility, and who performs or supervises or will perform or supervise the performance of: Operating, servicing, or maintaining a video lottery terminal, table game, or associated equipment; Accounting, maintaining, or auditing a facility’s financial records; Counting or processing video lottery terminal or table game revenue; Conducting security or surveillance in or around a facility; or Operating or maintaining a facility’s information systems; Is employed by a contractor or manufacturer, whose duties directly relate to the repair, service or distribution of a video lottery terminal, table game, or associated equipment, or is otherwise required to be present on the gaming floor or in a restricted area of the facility; Is employed by a contractor as a junket representative; or Is otherwise required by the Commission to be licensed as a gaming employee. “Gaming floor” means that part of a facility where video lottery terminals or table games have been installed for use or play. “Independent certified testing laboratory” means a person engaged in the testing and verification of video lottery terminals and the equipment, systems, and software utilized to collect, monitor, interpret, analyze, authorize, issue, redeem, report, and audit data with regard to activity at video lottery terminals that: Holds a certificate in good standing for compliance with: International Organization for Standardization # 17025 — General Requirements for the Competence of Testing and Calibration Laboratories; and International Organization for Standardization # 17020 — General Criteria for the Operation of Various Types of Bodies Performing Inspections; Has performed testing and certification of gaming equipment, systems, and software on behalf of a state within the United States for a period of 5 or more years; Has been approved by the Commission to test and certify equipment, systems, and software on its behalf; and Meets all conditions and requirements enumerated in any request for proposals issued by the Commission pertaining to testing, as amended or clarified. “Jackpot” means any cash, annuity, or merchandise to be paid to a player as a result of a specific combination of characters on a video lottery terminal. “Junket” means an arrangement: That is intended to induce an individual who is selected or approved for participation based on the individual’s ability to satisfy financial qualification obligations, willingness to gamble, or any other basis related to propensity to gamble; and Under which, or as consideration for which, any or all of the cost of transportation, food, lodging, and entertainment for an individual is directly or indirectly paid by a facility operator or an employee or agent of a facility operator. “Junket enterprise” means a person, other than a facility operator, who employs or otherwise engages the services of a junket representative in connection with a junket to a facility, regardless of whether the activity occurs in the State. “Junket representative” means an individual who negotiates the terms of, or engages in the referral or selection of an individual who may participate in, a junket to a facility, regardless of whether the activity occurs in the State. “License” means a license issued under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, to: An operator of a facility; A person that contracts with an operator of a facility to provide any of the services related to operating a facility; A manufacturer as defined in State Government Article, §9-1A-01, Annotated Code of Maryland; A video lottery employee as defined in State Government Article, §9-1A-01, Annotated Code of Maryland; or Any other person whom the Commission requires to be licensed. “Location Commission” means the Video Lottery Facility Location Commission established by State Government Article, §9-1A-36, Annotated Code of Maryland. “Manufacturer” has the meaning stated in State Government Article §9-1A-01, Annotated Code of Maryland. “Manufacturer – Tier 1” or “Tier 1 Manufacturer” means a person that: Produces: A video lottery terminal; Table game equipment; A central monitor and control system; or Equipment associated with §B(24)(a)(i)—(iii) of this regulation; or Distributes or resells: A video lottery terminal; Table game equipment; A central monitor and control system; or Equipment associated with §B(24)(b)(i) – (iii) of this regulation. “Manufacturer – Tier 2” or “Tier 2 – Manufacturer” means a person that produces a product: Intended for sale, lease or other assignment to a licensee and is related to: Video lottery terminals; Table games; or Equipment or software associated with §B(25)(a)(i) or (ii) of this regulation. That does not have the ability to impact the integrity of a game; and Is not essential to table game play. “Nongaming employee” means an individual who is: Employed or is seeking to be employed by an applicant for or holder of an operation license and whose duties are or will be other than the duties of a gaming employee; or Otherwise required by the Commission to be licensed as a gaming employee. “Operation license” means a license awarded by the Location Commission to operate a video lottery facility. “Plaque” means a rectangular, square, or oval marker that can be used instead of value chips. “Principal” means: An officer, director, or person who directly holds a beneficial interest in, or ownership of, the securities of an applicant or licensee; A person who has a controlling interest in an applicant or licensee or has the ability to elect a majority of the board of directors of a licensee or to otherwise control a licensee; A lender or other licensed financial institution of an applicant or licensee, other than a bank or lending institution which makes a loan or holds a mortgage or other lien acquired in the ordinary course of business; An underwriter of an applicant or licensee; or Another person or employee of an applicant or licensee deemed by the Commission to be a principal. Principal Employee. “Principal employee” means a video lottery employee who owns, controls, or manages a licensee, or otherwise exercises control over a video lottery or table game function of a licensee; “Principal employee” includes an employee of a contractor who performs any function described in §B(3) of this regulation; and “Principal employee” does not include a gaming, temporary gaming, or nongaming employee. “Principal entity” means a person, other than an individual, that is a principal. “Restricted area” means that part of a facility directly related to the operation of the gaming floor where access is specifically designated by the Commission as restricted, including: Cashier’s cage, including a satellite cashiers’ cage and ancillary offices; Computer space allocated to the central monitor and control system; Count room and trolley storage areas; Areas designated for the storage or repair of equipment of video lottery terminals or table game devices; Information technology department operations centers; Progressive controller locations; Surveillance monitoring rooms; Vault and armored car bay locations; and Any area that the facility operator has designated as restricted in its Commission-approved accounting an internal control systems. “Signature” means, at a minimum, an employee’s first initial, last name, and Commission license number, written by the employee. Table Game Equipment. “Table game equipment” means equipment that is related to the operation of table games and that is owned or leased by a video lottery facility and located on the video lottery facility’s premises, and includes table layouts, cards, dice, chips, shufflers, tiles, wheels, or any mechanical, electrical, or computerized device, apparatus, or supplies used to conduct a table game or designated by the Commission as table game equipment. “Table game equipment” does not mean: A table or base that does not have a device that is attributable to a specific table game or is not identified with the facility operator’s logo on the layout; or An item described in §B(29)(a) of this regulation that is unfinished or inoperable. “Terminal” means a computerized unit specifically designed for issuing and processing tickets and for printing of special reports. “Value chip” means a chip that contains a denomination on each face. In this regulation, “unclaimed jackpot” means any cash, annuity, merchandise, cashable credit as defined in COMAR 36.03.10.01, or gaming ticket as defined in COMAR 36.03.10.01 to be paid or dispensed to a player. A video lottery terminal player shall have a maximum of 182 days from the date an unclaimed jackpot is won to claim it. After 182 days, an unclaimed jackpot shall be distributed as provided under State Government Article, §9-1A-26, Annotated Code of Maryland. General. A person seeking an exemption from a Commission regulation issued under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, shall request that the Commission waive the regulation. Process. A person requesting a waiver of a regulation shall submit a written waiver request in a format specified by the Commission. A written waiver request shall contain at least the following: The Maryland regulation for which the waiver is sought; Detailed facts in support of the waiver request; An explanation of the unique circumstances justifying the request; and Any other information requested by the Commission. Upon receipt of a waiver request that fails to comply with §B(1) or (2) of this regulation, Commission staff shall notify the requestor: Of any deficiency in the waiver request; and That the waiver request will not be presented to the Commission unless the identified deficiency is corrected. Upon receipt of a waiver request that complies with §B(1) and (2) of this regulation, Commission staff shall present the waiver request to the Commission as soon as practicable. Decision. In deciding whether to grant a waiver request, the Commission may consider: The particular facts supporting the waiver request; Whether enforcement of the regulation as to the subject of the waiver request is necessary to protect the public interest or accomplish the policies established by State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; Limiting or restricting the relief sought as the Commission considers necessary in the public interest; Granting the waiver request subject to a condition; Requiring the requestor to submit any additional information; and Any other relevant information. The Commission shall provide the requestor with written notification of its decision. This regulation does not apply to a request for waiver of a licensing requirement under COMAR 36.03.02.11. State Government Article, §§9-1A-01, 9-1A-02(b) and 9-1A-04(d), Annotated Code of Maryland Effective date: Regulations .01—.04 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01—.04 adopted effective August 19, 2013 (40:16 Md. R. 1347) Regulation .02A amended effective October 27, 2014 (41:21 Md. R. 1262) Regulation .02B amended effective December 12, 2013 (40:24 Md. R. 2018); October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976); January 14, 2019 (46:1 Md. R. 13); October 19, 2020 (47:21 Md. R. 905) Regulation .02B amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .03 amended effective May 25, 2015 (42:10 Md. R. 686) Regulation .03C amended effective October 23, 2017 (44:21 Md. R. 985) General Provisions. Upon filing of an application for a license under this chapter other than an operation license, the applicant shall pay a nonrefundable application fee established by the Commission. If a license application must be submitted to the Commission by a particular date, the application documents shall be delivered to the Commission not later than 5 p.m. on the last day of this period, and an application submitted after the deadline may not be accepted or considered by the Commission. An applicant may not submit an application less than 1 year after the Commission has: Taken final action on a license denial of a previous license application involving the applicant; Taken final action on a sanction resulting in revocation of a previous license application involving the applicant; or Provided an individual with written notice of termination of a temporary license. Applications. Documents submitted to the Commission or the Location Commission under this chapter shall consist of an original and the number of copies required by the relevant commission and shall be in the electronic format required by the relevant commission. Documents and information submitted to the Commission or the Location Commission in a license application shall be sworn before a notary public as to their truth and validity by the applicant or, if the applicant is not an individual, by the chief executive officer of the applicant. Upon receipt of an application by the Commission, the Commission staff shall review the application to determine whether it contains all the information required under this chapter. If the Commission determines that the required information has not been submitted, the Commission staff shall notify the applicant in writing and state the nature of the deficiency. An applicant notified in accordance with §B(4) of this regulation may submit the documents necessary to complete the application not later than 15 days after issuance of the notification. The Commission may not consider the application of an applicant who is notified in accordance with §B(4) of this regulation and who fails to submit the requested documents in a timely manner. The Commission shall consider a timely, complete application. Changes in Application. If information submitted by an applicant as part of a license application changes or becomes inaccurate before the Commission acts on the application, the applicant shall immediately notify the Commission in writing of the change or inaccuracy. After an application has been filed by an applicant, the applicant may not amend the application except: To address a deficiency in accordance with a notice sent under §B(4) of this regulation; As required by the Commission or the Commission staff for clarification of information contained in the application; or To address a change in the circumstances surrounding the application that was outside the control of the applicant and that affects the ability of the applicant to comply with the law or the regulations of the Commission. To amend an application under §C(2)(c) of this regulation, an applicant shall submit to the Commission a written request to amend the application, stating: The change in the circumstances surrounding the application that necessitates the amendment; The nature of the amendment; and The reason why the amendment is necessary to bring the application into compliance with the law or the regulations of the Commission. The Commission or Commission staff shall grant or deny each request submitted under §C(3) of this regulation. A request shall be granted if the applicant demonstrates to the satisfaction of the Commission that: The circumstances requiring the amendment were outside the control of the applicant; Before the change in the circumstances surrounding the application, the application complied with the pertinent provisions of the law or the regulations of the Commission; and The amendment is necessary to bring the application into compliance with the pertinent provisions of the law or the regulations of the Commission. Except for an application for an operation license, an application for a license may be withdrawn if the: Applicant submits a written request to the Commission to withdraw the application; and Written request is submitted before the Commission has: Denied the application; or Terminated a temporary license. Notice of Intended Change in Licensed Video Lottery Employee’s Employment Status. Within 14 calendar days before a change in employment status, a licensee shall notify the Commission of the intended change in employment by submitting forms and documents required by the Commission in the manner set forth in §B of this regulation. A licensee submitting notification of an intended change in employment status shall comply with the application requirements and processes set forth in §B of this regulation. The Commission shall conduct a background investigation of the individual to verify that the individual’s license remains in good standing. No later than 15 days after the Commission issues the notification that the individual’s license is not in good standing, the licensee shall submit: Information, documentation, or assurances to establish, by clear and convincing evidence, that the licensee remains qualified to hold a license; and Any other information, documentation, or assurances required by the Commission. If the licensee has been separated from employment with a facility for more than 6 months and notified the Commission of an intended change in employment status, the licensee shall pay the fee for conducting a criminal history records check specified in Regulation .03B of this chapter. The Commission may not approve a change in employment status for a video lottery employee licensee who fails to establish, by clear and convincing evidence, all license qualification criteria. A video lottery employee may not effect a change in employment status without prior Commission approval. Burden of Proof. An applicant and licensee shall always bear the burden of proof to show by clear and convincing evidence that the applicant or licensee complies with the laws and regulations of the Commission regarding eligibility and qualifications for the license, including: When an applicant submits a license application; At a hearing on a recommended denial of a license; When a video lottery employee licensee notifies the Commission of an intended change in employment status; At a hearing on a recommended revocation of a license; and In any other instance where qualifications for a license issued under a provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, are at issue. Subject to State Government Article, §9-1A-14(c)(8), Annotated Code of Maryland, the Commission may deny a video lottery employee license to an applicant whose past or present conduct would bring the State into disrepute. The Commission may deny a license to an applicant whose gaming license has been suspended or revoked in another jurisdiction. Administrative Costs of Background Investigations. Promptly upon receipt of an invoice from the Commission, an applicant for a license or a licensee who has notified the Commission of an intended change in employment status shall reimburse the Commission for: The administrative costs associated with performing background investigations of the applicant, the licensee who has notified the Commission of an intended change in employment status, and any individual required to provide information under Regulation .04 of this chapter; and Any payments made by the Commission to a person approved by the Commission to conduct the background investigations. Failure to reimburse the Commission shall be grounds for disqualification of an applicant or disapproval of a licensee’s change in employment status. The Commission may require an advance deposit from an applicant or a licensee who has notified the Commission of an intended change in employment status for the Commission’s estimate of the administrative costs of conducting the applicant’s or licensee’s background investigation. The Commission shall refund any unused amount of the advance deposit. Payment and Collection. Applicants shall pay the administrative costs and fees required under this regulation by: Wire transfer; Money order; Certified check; or Any other manner designated by the Commission. Continuing Obligations. Applicants who are awarded a license shall, during the term of their licensures, conform to all of the information contained in their license applications. If information submitted by an applicant who is issued a license changes during the term of the license, the licensee shall immediately submit written notification of the change to the Commission. In addition to the requirements of this regulation, a holder of an operation license must also comply with the requirements of COMAR 36.03.03. Failure to comply with the obligations of §G(1), (2), or (3) of this regulation shall be grounds for the Commission taking enforcement action against the licensee under COMAR 36.03.04. Except as otherwise provided by this regulation, the application documents shall include the information under §B of this regulation, for an individual who is: The applicant; A director, officer, or key management individual employed by the applicant; A partner of the applicant; An owner of an interest of 5 percent or more in the applicant; or A principal. An individual listed under §A of this regulation shall furnish the following: Full name and any previous names or aliases; Date of birth; Physical description; Home and business addresses and telephone numbers; Driver's license number and state of issuance; Social Security number; Passport or identification photo; Fingerprints for a criminal records check: For a State resident, from an electronic fingerprinting service approved by the Commission; or For an out-of-State resident, one FBI and one State fingerprint card, taken within the previous 45 days before submission to the Commission; and Any other document or information required by the Commission. If the applicant is a corporation, the application documents shall state the: State in which the applicant is incorporated; and Name and address of the applicant's agent for service of process in Maryland. If an applicant is a nonprofit corporation, only an individual who is a director or officer of the applicant shall provide the information required under §B of this regulation. A licensee who has notified the Commission of an intended change in employment status shall provide the information as set forth in §B of this regulation. The Commission may require an applicant to furnish the information listed in §B of this regulation with regard to the applicant's family and associates. Inadvertent, nonsubstantive errors that might be made in furnishing the information required by this regulation may not be used as a reason by the Commission for disqualifying the applicant. If directed by the Commission, an individual shall also submit three complete legible sets of the individual's fingerprints and complete a background form supplied by the Commission which includes a statement disclosing whether the individual has ever been: Arrested; Convicted of, pled nolo contendere to, or received probation before judgment for, a felony or misdemeanor, other than a misdemeanor traffic offense; Sanctioned by a government agency related to gaming; Found liable in connection with a civil action related to gaming; A debtor in a bankruptcy proceeding; or Denied a bond. The forms submitted in compliance with this regulation shall be accompanied by the: Fee authorized under Criminal Procedure Article, §10-221(b)(7), Annotated Code of Maryland, for access to Maryland criminal history records; Mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check; and Mandatory processing fee required by Interpol for an international criminal history records check. If an applicant for any license under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, is a citizen of any country other than the United States, the background investigation required under State Government Article, §9-1A-07(d), Annotated Code of Maryland, shall include an international criminal history records check. An individual who is required to provide personal and background information under this chapter shall provide a statement that irrevocably gives consent to the Commission, the Location Commission, the Maryland State Police, and persons authorized by the Commission to: Verify all information provided in all documents or forms submitted to the Commission; and Conduct a background investigation of the individual. An applicant or licensee shall authorize the Commission and, if appropriate, the Location Commission to have access to any and all information the applicant or licensee has provided to any other jurisdiction while seeking a similar license in that other jurisdiction, as well as the information obtained by that other jurisdiction during the course of any investigation it may have conducted regarding the applicant. If the applicant is a corporation, the application documents shall include a: Statement of when the corporation was organized; Copy of the articles of incorporation and bylaws of the corporation; Statement and documentation of whether the corporation has been reorganized or reincorporated during the 5-year period preceding the date on which the application documents are submitted to the Commission; and Statement and documentation of whether the corporation has filed restated articles of incorporation. If the applicant is an unincorporated business association, the application documents shall include a: Copy of each organizational document of the applicant, including any partnership agreement; and Description of any oral agreements involving the organization of the applicant. If the applicant is an unincorporated business association, the application documents shall identify: Each person who exercises voting rights in the applicant; and Each person who directly or indirectly owns 5 percent or more of the business association. If the applicant is authorized to issue capital stock, the applicant shall state, for each class of stock authorized, the: Total number of shares; Par value, if any; Voting rights; Current rate of dividend; and Number of shares outstanding and the market value of each share. If the applicant is a corporation, the application documents shall identify each person who: Exercises voting rights in the corporation; and Directly or indirectly owns 5 percent or more of the corporation. The application documents shall include a certified copy of each voting trust or voting agreement in which capital stock of the applicant is held and shall state the: Name and address of each stockholder participating in the trust or agreement; Class of stock involved; and Total number of shares held by the trust or agreement. The application documents shall describe the terms of any proxy by which any capital stock may be voted and shall state the: Name and address of the person holding the proxy; Name and address of the stockholder who granted the proxy; Class of stock for which the proxy may vote; and Total number of shares voted by the proxy. The application documents shall state any provisions, and the procedures by which these provisions may be modified, for the redemption, repurchase, retirement, conversion, or exchange of an ownership interest. The application documents shall state whether the applicant's stock may be traded through options and whether the corporation or a stockholder has executed an agreement or contract to convey any of the corporation's or the stockholder's stock at a future date. The application documents shall include a copy or a description of each agreement or contract disclosed under §G of this regulation. The application documents shall include a copy of each prospectus, pro forma, or other promotional material given to potential investors about the video lottery facility. The application documents shall provide full disclosure for any stock options that may exist or have been granted. The application documents shall disclose all principal entities of the applicant. Principal Entities as Approved Institutional Investors. A principal entity may request the Commission to waive the requirement of conducting a full background investigation of the principal entity. The Commission may approve a principal entity's request for a waiver if the principal entity: Meets one of the definitions of institutional investor in State Government Article, §9-1A-01, Annotated Code of Maryland; and Satisfactorily completes and submits an institutional investor waiver application as required by the Commission. A principal entity for which the Commission has approved a waiver request under §L(2) of this regulation is an approved institutional investor. An institutional investor may maintain an approved waiver as an institutional investor by: Maintaining an ownership interest in an applicant or licensee; and Providing the Commission with the statement of ownership percentage it reported to the Securities and Exchange Commission: Annually, before the last day of April; or As otherwise directed by the Commission. If an approved institutional investor complies with §L(4) of this regulation, the Commission's approval is valid for 5 years from the date of approval, and: The waiver may apply to one or more applicants or licensees in which the entity is an institutional investor; and The institutional investor shall submit an institutional waiver application every 5 years from the date of the Commission's last approval. If an approved institutional investor does not meet the requirements of §L(4) of this regulation with respect to one or more applicants or licensees: The approved institutional investor shall notify the Commission in writing if the institutional investor's ownership interest falls below 5 percent; and The Commission may require the institutional investor to submit a new waiver application if the institutional investor acquires an ownership interest of 5 percent or greater in any applicant or licensee. Qualified Principal Entities. This section does not apply to a principal entity that is an approved institutional investor under §L of this regulation. If the Commission investigates a principal entity’s application for qualification and determines that the principal entity is qualified: The Commission shall recognize the qualification determination for 5 years from the date the principal entity is found qualified; and If the same qualified principal entity is identified in a subsequent license application within the 5-year period described in §M(2)(a) of this regulation, the principal entity is not required to submit a new principal entity disclosure form. A qualified principal entity shall comply with the continuing obligation requirements described in Regulation .01 of this chapter. If a qualified principal entity no longer meets a qualification requirement, the Commission may require the principal entity to: File a new principal entity disclosure form; Submit to a new background investigation; and Pay all fees and costs associated with the new principal entity disclosure form and investigation. If the applicant is not an individual, the application documents shall include a list of the individuals who are serving, or who are designated to serve, during the first year after the date the application documents are submitted to the Commission or the Location Commission, as a director, officer, partner, an individual having key management responsibility, or any other principal. For each individual listed under §A of this regulation, the applicant shall provide: The individual's name and address; Each position or office of the applicant held by the individual; The individual's principal occupation during the 5-year period preceding the date on which the application documents are submitted to the Commission; and The nature and extent of any ownership interest that the individual has in the applicant. The application documents shall: State whether another entity has a beneficial ownership in the applicant, as defined in Business Regulation Article, §11-301, Annotated Code of Maryland; Describe the: Nature of the beneficial ownership; and Extent of control exercised by the beneficial owner; and Include information and documents required under Regulations .04—.09 of this chapter as to each beneficial owner and principal entity. The application documents shall state whether the applicant, a director, an officer, or a partner of the applicant, or an owner of 5 percent or more of an interest in the applicant: Has ever held an ownership interest in a licensee of the Commission; or Is currently engaged in the business of gaming in another state, and the nature and extent of that involvement. The applicant shall describe the nature of participation stated under §A of this regulation. General. The Commission may establish an abbreviated process for licensing an applicant who holds a valid license in another state if the Commission determines that the licensing standards of the other state: Are comprehensive; Are thorough; and Provide similar adequate safeguards to those in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland. Except for an operation or manufacturer license applicant, the Commission may: Waive some or all of the requirements in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; and Issue a license to a person having a similar license in another state. The Commission may delegate its authority to decide whether to apply an alternative license standard to staff. Process. An applicant or licensee requesting the application of alternative licensing requirements shall submit a written request in a format specified by the Commission. A written waiver request shall contain at least the following: The state in which the applicant holds a valid license; An explanation of the unique circumstances justifying the request; and Any other information requested by staff or the Commission. Upon receipt of a request that fails to comply with §B(1) and (2) of this regulation, staff shall notify the requestor: Of any deficiency; and That the waiver request will not be presented to the Commission unless the identified deficiency is corrected. Decision. Upon receipt of a waiver request that complies with §B of this regulation, staff shall: Present the waiver request to the Commission as soon as practicable; or If the Commission has delegated to staff the authority to decide the waiver request, decide the waiver request as soon as practicable. After the Commission or staff decides whether to grant the waiver request, staff shall notify the requestor. General. The Commission may: Grant an exemption to a licensing requirement; Waive a licensing requirement; or Waive grounds for denial of a license. Except for an operation or manufacturer license applicant, the Commission may grant an exemption or waive a requirement under this regulation only after the Commission determines that the requirement or grounds for denial of a license as applied to the applicant are not necessary in order to protect the public interest or accomplish the policies established by State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland. The Commission may delegate its authority to decide a waiver of a licensing requirement to staff. Process. A person requesting an exemption or waiver shall submit a written request in a format specified by the Commission. A written request shall contain at least the following: The COMAR section for the standard for which the exemption or waiver is sought; Detailed facts in support of the request; An explanation of the unique circumstances justifying the request; and Any other information requested by staff or the Commission. Upon receipt of an exemption or waiver request that fails to comply with §B(1) or (2) of this regulation, staff shall notify the requestor: Of any deficiency; and That the request will not be presented to the Commission unless the identified deficiency is corrected. Decision. Upon receipt of a request that complies with §§A and B of this regulation, staff shall: Present the request to the Commission as soon as practicable; or If the Commission has delegated to staff the authority to decide the waiver request, [decide the waiver request] make a decision as soon as practicable. At any time before or after a waiver or exemption has been granted, the Commission may: Limit or place restrictions on the exemption or waiver as the Commission considers necessary in the public interest; and Require the licensee who is granted the exemption or waiver to cooperate with the Commission and to provide the Commission with any additional information required by the Commission as a condition of the waiver or exemption. After the Commission or staff decides whether to grant or deny the request, staff shall notify the requestor of the decision. General. Unless an individual holds a valid video lottery employee license that is in good standing issued by the Commission, the individual may not be employed by a licensed facility operator, manufacturer, or contractor as a video lottery employee. License Categories. The Commission may issue a video lottery employee license that is a: Principal employee license; Gaming employee license; Nongaming employee license; Temporary principal employee license; or Temporary gaming employee license. Requirements. The Commission may issue a video lottery employee license to an individual who has or has had on their behalf: Paid all required application and license fees; Submitted a completed license application to the Commission; Furnished the personal and background information required under Regulation .02 of this chapter; Provided the documentation required under Regulation .03 of this chapter; Executed the consent for investigation required under Regulation .04 of this chapter; Unless exempt, obtained a bond required under Regulation .15 of this chapter; Received at least a conditional offer of employment as a video lottery employee from a licensed facility operator, manufacturer, or contractor; Demonstrated that within the 365 days before the application is submitted, the applicant has not served as a Commission member or been employed by the Agency; For an applicant for a nongaming employee license, documented that the applicant has obtained an offer of at least conditional employment from a licensed facility operator, manufacturer or contractor, or a registered or certified vendor, and that the employer has: Obtained a bond if required under Regulation .15 of this chapter; and Performed, at a minimum, a Social Security database check, criminal check, employment verification, and national database search; and Provided the Commission with sufficient information, documentation, and assurances to establish, by clear and convincing evidence, that the individual: Except as provided in §L of this regulation, has not been mandatorily disqualified under State Government Article, §9-1A-14(c), Annotated Code of Maryland; Has met the applicable requirements of State Government Article, §9-1A-07(c), Annotated Code of Maryland; and Is otherwise qualified for a video lottery employee license. Application and License Fees. For a principal employee, $5,287.25, of which the: Application fee is $2,500; License fee is $750; Refundable advance deposit authorized under Regulation .01E(3) of this chapter for the administrative costs of conducting the applicant's background investigation is $2,000; and Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25. For a gaming employee, $437.25, of which the: Application fee is $250; License fee is $150; and Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25. For a nongaming employee, $187.25, of which the: Application fee is $50; License fee is $100; and Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25. Employment of a Video Lottery Employee Licensee. A video lottery employee license authorizes the licensee to be employed as a principal, gaming or nongaming employee in the State. Nothing in this chapter precludes a licensee from being employed by more than one video lottery facility or sports wagering licensee, concurrently or consecutively, while the individual’s license is in good standing. A video lottery employee’s second or subsequent employment with a licensee or a sports wagering licensee does not change the term of the individual’s license. Without filing an application for a sports wagering employee license, a video lottery employee may be employed by a sports wagering licensee if: The individual will perform work for the sports wagering licensee that is comparable to work performed as a video lottery employee; and The individual’s license is in good standing. Under State Government Article, §9-1A-24(c)(2), Annotated Code of Maryland, a video lottery employee who is 18 to 20 years old may enter, or remain on, the gaming floor if the employee is working. A licensed video lottery employee, or temporary licensee, may not play a video lottery terminal or table game at, or receive a jackpot from, a facility: Where the individual is employed; That is operated by the individual's employer; or Where the individual is currently assigned to work. A sports wagering employee who is employed as a video lottery facility employee is subject to the restrictions in: Section F of this regulation; and COMAR 36.10.06.07. A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commission's regulations. Term; Renewal. The term of a video lottery employee license is 5 years from the date of initial licensure. The Commission may stagger the terms of licenses. Except for a sponsored principal or sponsored gaming employee, or temporary licensee, the Commission may renew the license if, before the term of the license expires, the licensee: Applies for renewal; Continues to comply with all licensing requirements; Maintains employment as a video lottery employee; Submits to a background investigation under Regulation .03 of this chapter; and Pays the fees described in §I(4) of this regulation. The fee required for processing a licensing renewal is: For a principal employee, $2,787.25, of which the: License fee is $750; Refundable advance deposit for administrative costs of conducting the applicant’s background investigation is $2,000; and Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25. For a gaming employee, $187.25, of which the: License fee is $150; and Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25. For a nongaming employee, $97.25, of which the: License fee is $60; and Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25. Except as provided in §H(5) of this regulation, a video lottery employee shall submit an application for renewal to the Commission at least 90 days before the video lottery employee's license expires. A principal employee shall submit an application for renewal to the Commission at least 6 months before the principal employee's license expires. Temporary License. The Commission may issue to a video lottery employee license applicant a temporary license to permit the individual to work legally as a video lottery employee before the Commission completes the full licensing process. A licensed facility operator, manufacturer, or contractor may submit an application for a temporary license on behalf of an individual who is seeking a principal or gaming employee license. An application for a temporary license shall be in a format designated by the Commission and shall include: A completed application for a principal or gaming employee license; Payment of the fees required under §D of this regulation; Documentation to verify that the applicant has obtained an offer of at least conditional employment from a licensed facility operator, manufacturer or contractor, or a registered or certified vendor, and that the employer has: Obtained a bond if required under Regulation .15 of this chapter; and Performed, at a minimum, a Social Security database check, criminal check, employment verification, and national database search; and Documentation that the applicant has acknowledged, in writing, that the State is not financially responsible for any consequences resulting from termination of a temporary license under State Government Article, §9-1A-14(d)(4), Annotated Code of Maryland. The Commission may grant a temporary license after: Receiving all items required under §I(3) of this regulation; and Performing on the individual a: Criminal background investigation under Regulation .03 of this chapter; and Financial stability investigation. A temporary license: Expires 180 days after the date of issue; and May be extended by the Commission for one period of 180 days. A temporary license may not be issued if: An applicant has an immediately known present or prior activity, criminal record, reputation, habit, or association that would disqualify the applicant from holding a video lottery employee license under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or regulations promulgated under that subtitle; An applicant poses a serious imminent risk of harm to the integrity, security, or profitability of the State's video lottery terminal or table game operations; or There are reasonable grounds to believe that the applicant will not be able to establish the applicant's qualifications by clear and convincing evidence under State Government, §9-1A-07, Annotated Code of Maryland. By written notice to a temporary licensee, Commission staff may terminate, without a hearing and without following the denial process under Regulation .16 of this chapter, the temporary license of an applicant for: Failure to pay a required fee; Failure to submit required documentation to Commission staff within 30 days of submitting the application; Failure to comply with a request of Commission staff; Engaging in conduct that obstructs Commission staff from completing the applicant's background investigation; or Violating any provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commission's regulations. Commission staff's written notice of termination of a temporary license is the final action of the Commission. If, during the course of conducting an applicant's background investigation, Commission staff reasonably believes there is a basis for recommending that the application for a video lottery employee license be denied, Commission staff shall: Notify the temporary licensee; and Follow the process for denial of a license under Regulation .16 of this chapter. Relinquishment of a License. An individual who is licensed as a video lottery employee may relinquish the license. A licensee shall relinquish a license in writing by submitting to Agency staff a document that: Includes the licensee’s name and date of request; Clearly expresses the individual’s desire to knowingly and voluntarily relinquish, end, or otherwise give up the individual’s licensure; and Gives a reason for the request. Agency staff may accept a relinquishment request that is consistent with §K(2) of this regulation. Agency staff shall update the Agency’s records to show the voluntary relinquishment. By submitting a written relinquishment request of a video lottery employee license under §K(2) of this regulation, the individual acknowledges that: The State is not financially responsible for any consequences resulting from the relinquishment of the individual’s license; Regardless of relinquishment, the Agency shall maintain an individual’s licensing records, to which public access is governed by General Provisions Article, §4-201, et seq., Annotated Code of Maryland; Although relinquishment ends an individual’s obligation to comply with the Commission’s licensing requirements, relinquishment does not change or affect any other obligation. Agency staff may deny a relinquishment request from an individual who is not in good standing. An individual who has relinquished a video lottery employee license may request that the Commission return the license to active status, and the Commission may require the individual to: Submit fingerprint cards; and Provide any other information that staff requires. Exemption from Mandatory Disqualification. Definition. In this section, “problem-solving court” means: A judiciary program under the Office of Problem-Solving Courts of the Maryland Administrative Office of the Courts; or A program from another state that: Provides a collaborative, therapeutic, nonadversarial approach to judicial supervision of eligible offenders; and Is comparable to a judiciary program described in §L(1)(a) of this regulation. Except for a crime involving gambling, an applicant for a video lottery employee license is not disqualified from licensure under State Government Article, §9-1A-14(c)(1)(iii) or (iv), Annotated Code of Maryland, for a nonviolent misdemeanor offense for which the applicant has: Been convicted or is on active parole, probation, or prosecution; and Participated in and completed a problem-solving court program described in §L(1) of this regulation. An applicant shall provide the Commission with documentation to verify the applicant’s exemption from disqualification under §L(2) of this regulation. General. Unless a manufacturer holds a valid manufacturer’s license issued by the Commission or Agency staff before conducting business with a licensee or the State, the manufacturer may not offer any video lottery terminal, table game device, central monitor and control system, associated equipment or software, or goods or services that directly relate to the operation of video lottery terminals or table games under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland. The following persons must meet the Commission's manufacturer license requirements: A manufacturer; and Each person that owns, controls, or is a representative of a manufacturer. Qualification Requirements. Agency staff may issue a manufacturer license to a manufacturer that has: Paid the application and license fee under §C of this regulation; Unless exempt, obtained a bond required under Regulation .15 of this chapter; Furnished the Commission or Agency staff with the information and documentation required under this chapter; Established by clear and convincing evidence that each person identified in §A(2) of this regulation has: Qualified under State Government Article, §9-1A-07(c), Annotated Code of Maryland; and Not been disqualified under State Government Article, §9-1A-08, Annotated Code of Maryland; Provided the Commission or Agency staff with sufficient information to establish that the manufacturer has otherwise qualified for a manufacturer license; and Established that its system, associated equipment or software, or goods or services meet the specifications and procedures in COMAR 36.03.12. Application and License Fees. The application fee for a: Tier 1 manufacturer is $10,000; and Tier 2 manufacturer is $1,200. The license fee or a: Tier 1 manufacturer of a central monitor and control system is $25,000; Tier 1 manufacturer of a video lottery terminal or table game equipment is $5,000; Tier 1 manufacturer of associated equipment and software in §C(2)(a) or (b) of this regulation is $5,000; Tier 1 manufacturer that distributes or resells a video lottery terminal, a table game device, a central monitor and control system, or associated equipment and software is $1,000; and Tier 2 manufacturer is $800. The manufacturer license authorizes the licensee to manufacture or distribute a video lottery terminal, table game equipment, central monitor and control system, and associated equipment and software to the Commission or a facility operator in the State. A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commission's regulations. Term; Renewal; License Renewal Fee. The term of a Tier 1 and Tier 2 manufacturer license is 5 years from the date of initial licensure. The Commission may stagger the terms of licenses. Agency staff may renew the license if the manufacturer licensee: Submits an application for renewal to the Commission at least 6 months before the manufacturer’s license expires; Continues to comply with all licensing requirements; Submits to a background investigation under Regulation .05 of this chapter; and Pays a license renewal fee. The license renewal fee for a: Tier 1 manufacturer of a central monitor and control system is $25,000; Except as provided in §F(4)(a) of this regulation, Tier 1 manufacturer is $5,000; and Tier 2 manufacturer is $800. Background Investigation Deposit. A $2,000 background investigation deposit is required at the time an applicant files a manufacturer license application. If the deposit is exhausted prior to completion of the background investigation, the applicant will be billed for any additional investigative costs the Commission incurs. General. If a video lottery operation licensee engages a Tier 1 or Tier 2 contractor to provide services described in COMAR 36.03.01.02B(2), the contractor shall qualify under the standards and provisions set forth in State Government Article, §§9-1A-07 and 9-1A-08, Annotated Code of Maryland. Qualification Requirements. Agency staff may issue Tier 1 or Tier 2 a contractor license to a person that has provided the Commission or Agency staff with sufficient information to establish by clear and convincing evidence that it: Is qualified under State Government Article, §9-1A-07(c), Annotated Code of Maryland; and Has not been disqualified under State Government Article, §9-1A-08, Annotated Code of Maryland. The Commission may charge a Tier 1 or Tier 2 contractor for the administrative costs associated with performing a background investigation. Application and License Fees. For a Tier 1 contractor: The application fee is $1,500; The license fee is $2,500; and The Background investigation deposit is $2,000. For a Tier 2 contractor: The application fee is $750; The license fee is $800; and The background investigation deposit is $2,000. Term; Renewal; Fees. The term of a Tier 1 and Tier 2 contractor license is 5 years from the date of the initial licensure. The Commission may stagger the terms of licenses. Agency staff may renew the license if the contractor licensee: Submits an application for renewal to the Commission at least 6 months before the contractor's license expires; Continues to comply with all licensing requirements; Submits to a background investigation under Regulation .05 of this chapter; and Pays a license renewal fee. The license renewal fee for a: Tier 1 contractor is $2,500; and Tier 2 contractor is $800. The background investigation deposit for license renewal of a Tier 1 or Tier 2 contractor is $2,000. A Tier 1 and Tier 2 contractor is exempt from: Bond requirements under Regulation .15 of this chapter; and Labor peace agreement requirements under State Government Article, §9-1A-07(c)(7)(v), Annotated Code of Maryland, unless the contractor is engaged: As a lessee; As a tenant; or Under a management agreement. The Commission may require an applicant or licensee to obtain a bond before the Commission issues or reissues a license. A video lottery employee may be exempted if the employee is not directly involved in video lottery operations and is employed: As a nongaming employee; or In any other category of video lottery employee for whom the Commission determines the bond is not necessary to protect the public interest. A bond shall be for the benefit of the State for the faithful performance of the requirements imposed by State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and any regulations issued under that subtitle. For an operator of a facility, or an entity that contracts with the operator of a facility to provide any of the services related to operating the facility, the amount of the bond may not exceed three times the initial licensing fee under State Government Article, §9-1A-36(j), Annotated Code of Maryland. For a manufacturer, the amount of the bond shall be specified in the Commission’s contract with manufacturers of video lottery terminals. For a gaming employee, who is not covered by a bond under §D of this regulation, the amount of the bond: Shall be determined by the Commission based on the employee’s level of responsibility and the State’s risk of exposure to liability for the employee’s performance; and May not exceed three times the gaming employee’s initial licensing fee. For any other licensee, the amount of the bond shall be determined by the Commission. The Commission may not issue or reissue a license unless it has received satisfactory proof of a bond. The Commission may apply a bond to the payment of an unpaid liability of the applicant or licensee. Denial of a Video Lottery Employee, Manufacturer, or Contractor License. In addition to the hearing requirements in §B of this regulation, the following process shall precede a hearing on the denial of a video lottery employee, manufacturer, or contractor license. After reviewing an application submitted for a video lottery employee, manufacturer, or contractor license, the Director may recommend that the Commission deny the application of an applicant who: Has not established by clear and convincing evidence that the applicant meets applicable qualifications; or Has violated: A provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; A regulation adopted pursuant to State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; or A condition set by the Commission. If the Director recommends that the Commission deny a video lottery employee, manufacturer, or contractor license, the Director, or the Director's designee, shall promptly provide the applicant with written notice of the: Recommendation for denial; Basis for the recommendation; and Applicant's right to request a reconsideration meeting with the Director or the Director's designee. An applicant may submit to the Commission a written request for a reconsideration meeting within 15 days of the date of the notice described in §A(3) of this regulation. If an applicant fails to timely submit a request under §A(4) of this regulation, the Commission may adopt as final the recommendation of the Director or the Director's designee. During a reconsideration meeting, an applicant may: Be represented by counsel; and Present evidence as to why the license should be granted; If after the reconsideration meeting the applicant is dissatisfied with the recommendation of the Director or the Director's designee, the applicant may submit to the Commission, in writing: A request for hearing before the Commission on the recommendation of the Director or the Director's designee; and The applicant's legal and factual bases for disagreeing with the recommendation of the Director or the Director's designee. An applicant may submit a hearing request to the Commission within 15 days of the date of the recommendation of the Director or the Director's designee after the reconsideration meeting. If an applicant fails to timely submit a written hearing request under §A(8) of this regulation, the Commission may adopt as final the recommendation of the Director or the Director's designee. Upon receipt of a timely written hearing request, the Director shall provide the applicant a hearing notice for a hearing before the Commission. The Director's hearing notice, and the Commission hearing at which the recommended denial will be considered, shall comply with the requirements of COMAR 36.01.02.06. The Commission shall: Grant the license after determining that the applicant is qualified; or Deny the license after determining that the applicant: Is not qualified or is disqualified; or Has violated a provision described in §A(2)(b) of this regulation. Following a hearing at which a license is denied, the Commission shall: Prepare an order denying the license with a statement of the reasons and specific findings of fact; and Provide the applicant with written notification of its final action. The Commission's final action on a license denial is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland Definitions. In this regulation, the following terms have the meaning indicated. Terms Defined. “Commission” means Agency staff in this regulation. Vendor. “Vendor” means a person that: Provides goods or services at a value of $50,000 or more to a video lottery operation applicant or licensee; and Is not required to be licensed as a manufacturer or contractor under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or this chapter. “Vendor” does not include: Public utilities that provide water, sewerage, electricity; or natural gas; Insurance companies that provide insurance to a video lottery applicant or licensee or its employees; Employee benefit and retirement plans, including 401(k) plans and employee stock purchase programs; Professional associations that receive funds from the video lottery applicant or licensee for the cost of enrollment, activities, and membership; Units of federal, State, county, or municipal government; Manufacturers of alcoholic beverages; State-chartered or federally chartered banks or savings and loan associations; Providers of professional services, including accountants, attorneys, engineers or architects, and others identified by Agency staff to be providers of professional services; Telecommunication, satellite, or internet services; Parcel shipping and delivery services; Persons that engage in efforts to influence legislative or administrative action on behalf of a video lottery operation applicant or licensee for economic consideration; Educational or training opportunities for facility employees; Professional or amateur entertainers, sports figures, social media personalities, or other celebrities engaged by a video lottery operation licensee to appear at a licensee-sponsored entertainment or promotional event; Representatives of a media outlet or provider of a simulcast service; A vendor that provides, or anticipates providing, within a calendar year a combined total value of nongaming related goods and services to State video lottery operation applicants or licensees of less than $50,000; or A vendor for whom the Commission determines is not necessary in order to protect the public interest. Except as provided in §§D and G of this regulation, a vendor that conducts business with a video lottery operation applicant or licensee shall be registered with the Commission. Certain Vendors Exempt from Registration Requirements. A vendor is exempt from registration requirements if it provides, or anticipates providing, goods or services that a video lottery operator purchases solely to be given to a player. A vendor exempted under this section may only provide the following goods and services to a video lottery facility operator: Leisure or recreational travel; Lodging; Vehicles; Entertainment; Dining; Clothing; Jewelry; Gift cards; or Other gift items. A video lottery operator that purchases goods or services from a vendor exempted under this section: Is subject to the requirements of COMAR 36.03.10.09; and Shall identify in a report submitted under COMAR 36.03.10.09 each exempted vendor from which it purchased goods or services during the reporting period. Vendor Registration. A vendor that provides, or anticipates providing, nongaming related goods and services to a single video lottery operation applicant or licensee shall be registered with the Commission. The video lottery operation applicant or licensee to which a vendor provides, or anticipates providing, the nongaming related goods and services shall submit to the Commission a completed registration form in a format designated by the Commission that includes: Vendor name; Vendor business address; Type of goods or services provided; Total value of goods or services provided to video lottery applicants or licensees in the State within a calendar year; Documentation that: The vendor’s business is in good standing or active with the Maryland State Department of Assessment and Taxation; or The vendor is not a legal entity that is required to register with the Maryland State Department of Assessments and Taxation; Registration fee of $100; and Any other information the Commission requires. Upon receipt of the registration fee and completed registration form, the Commission shall provide the applicant or licensee with written notification of whether it has registered the vendor. Except as provided in §G of this regulation, a vendor may not provide goods or services related to a video lottery operation applicant or licensee until it is registered with the Commission. Emergency Notification. An applicant or licensee may accept goods or services from a vendor that is not registered by the Commission if: The applicant or licensee encounters an emergent threat to public health, safety, or welfare that is outside its control and requires immediate provision of goods or services by a vendor; and Except as provided in §C of this regulation: No later than the next State business day after the vendor’s emergency provision of goods or services, the applicant or licensee shall submit to the Commission a vendor emergency notification form that includes an explanation of the need for its emergency use of a vendor that is not registered with the Commission; and Within 20 business days of submitting the vendor emergency notification form, the applicant or licensee shall submit to the Commission a vendor registration form. A vendor’s registration: Remains in effect for 5 years from the date the Commission approves the registration; May be renewed by the Commission if the vendor submits the required form, and renewal fee required in §I of this regulation, as required under §D Shall automatically expire if a vendor does not comply with renewal requirements under this regulation; and Is subject to cancellation by the Commission if the Commission determines that the vendor's continued conduct of business with a video lottery operation applicant or licensee is contrary to the public interest of the State or the policies in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or this subtitle. Renewal Fee. The renewal fee for a vendor is $100. The Commission’s decision to deny or cancel a vendor registration, or to deny the renewal of a vendor registration, does not give rise to an appeal right under the contested case provisions of the Maryland Administrative Procedure Act. The Commission may maintain and make publicly available a list of: Registered vendors; and Vendors that are prohibited from doing business with a video lottery operation applicant or licensee because the Commission has denied or cancelled their application or registration. A video lottery operation applicant or licensee shall: Submit to the Commission a monthly vendor payments report in a format prescribed by the Commission; and Ensure that a vendor appearing on its monthly vendor payments report is: Registered; Exempt. The Commission shall issue an identification card to an individual who is licensed as a video lottery employee. Identification Card. An identification card shall display a photograph of the licensee and, at a minimum, indicate: The individual's name; By color, pattern, or symbol, the licensing category; and The license expiration date. An identification card is evidence that the licensee is authorized to be employed in the designated licensing category by a licensed facility operator, manufacturer, or contractor. An identification card is the property of the Commission. Licensee Obligations. A licensee: Shall wear or otherwise prominently display the licensee’s identification card at all times while working unless otherwise approved by the Commission for a specific date and time; Shall immediately report a loss or theft of the card to the licensee’s employer and the Commission; May not allow another individual to possess the card; and Shall comply with an order of the Commission to surrender the card. Replacement Identification Card. If an identification card issued under this regulation is lost or stolen: The licensee shall immediately: Report the loss or theft to the licensee’s employer; and In a form or format designated by the Commission, submit to the Commission a written description of the circumstances of the loss or theft; and After verifying the licensee’s identity, the Commission may issue a new identification card to the licensee. If an identification card issued under this regulation is temporarily unavailable to the licensee: The licensee shall immediately: Report the temporary unavailability of the card to the licensee’s employer; and In a form or format designated by the Commission, submit to the Commission a written description as to why the card is temporarily unavailable; After verifying the licensee’s identity, the Commission may issue an emergency credential to the licensee that is valid for 1 work day; and The licensee shall surrender the emergency credential to the Commission at the end of the work day on which the licensee received the card. If the Commission issues a replacement or temporary identification card to a licensee, the licensee’s employer shall pay the Commission: $40 for the cost of a replacement identification card; or $20 for the cost of a temporary identification card. Surrender and Reissuance of Identification Card. The employer of the video lottery employee who was issued an identification card under this regulation shall ensure that the licensee’s identification card is surrendered to the Commission if the: Commission suspends or revokes the license; License is not renewed; Licensee separates from employment with licensee’s employer; or Licensee is otherwise ordered to surrender the identification card. If an identification card is not surrendered as required under §D(2)(c) or E(1) of this regulation, the licensee’s employer may be subject to enforcement action under COMAR 36.03.04. If an identification card was surrendered when the licensee separated employment from the licensee’s employer, the Commission may issue the licensee another identification card if the: Licensee obtains employment with a licensed facility operator, manufacturer, or contractor; Term of the license has not expired; and Commission verifies: The licensee’s identity; That the license was in good standing when the card was surrendered; and That the license has not expired and remains in good standing. Nothing in this regulation shall preclude the Commission from taking enforcement action against a licensee based on the circumstances related to the licensee’s separation from employment or information obtained while reviewing a licensee’s notification of an intended change in employment status. : State Government Article, §§9-1A-01, 9-1A-02, 9-1A-04, 9-1A-06, 9-1A-07, 9-1A-12—9-1A-16, 9-1A-19, 9-1A-20, and 9-1A-24, Annotated Code of Maryland Effective date: Regulations .01—.18 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01—.18 adopted effective August 19, 2013 (40:16 Md. R. 1347) Regulation .01 amended effective October 19, 2020 (47:21 Md. R. 905) Regulation .01A, C amended as an emergency provision effective July 1, 2015 (42:15 Md. R. 1014); amended permanently effective September 14, 2015 (42:18 Md. R. 1180) Regulation .02 amended effective October 19, 2020 (47:21 Md. R. 905) Regulation .02B amended as an emergency provision effective July 1, 2015 (42:15 Md. R. 1014); amended permanently effective September 14, 2015 (42:18 Md. R. 1180) Regulation .03A amended effective October 19, 2020 (47:21 Md. R. 905) Regulation .04 amended effective October 19, 2020 (47:21 Md. R. 905) Regulation October 19, 2020 (47:21 Md. R. 905) Regulation .06M adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .11 amended effective September 26, 2016 (43:19 Md. R. 1073) Regulation .12 amended effective August 18, 2014 (41:16 Md. R. 947) Regulation .12 amended as an emergency provision effective July 1, 2015 (42:15 Md. R. 1014); amended permanently effective September 14, 2015 (42:18 Md. R. 1180) Regulation .12 amended effective March 14, 2016 (43:5 Md. R. 388) Regulation .12 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .12A, E amended effective October 19, 2020 (47:21 Md. R. 905) Regulation .12H, I amended effective December 12, 2013 (40:24 Md. R. 2018) Regulation .13 amended effective December 12, 2013 (40:24 Md. R. 2018) Regulation .13 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .13C amended effective March 14, 2016 (43:5 Md. R. 388) Regulation .14 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .14B, E amended effective December 12, 2013 (40:24 Md. R. 2018) Regulation .14D, E amended effective March 14, 2016 (43:5 Md. R. 388) Regulation .16A amended effective March 14, 2016 (43:5 Md. R. 388) Regulation .16A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .17 amended effective July 4, 2016 (43:13 Md. R. 714) Regulation .17 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .17C amended effective September 6, 2021 (48:18 Md. R. 695) Regulation .17D amended effective October 19, 2020 (47:21 Md. R. 905) Regulation .18C—E amended effective September 26, 2016 (43:19 Md. R. 1073) Regulation .18E amended effective October 19, 2020 (47:21 Md. R. 905) This chapter articulates the standards which the Commission shall use to: Qualify an applicant for a video lottery facility operation license; and Renew a video lottery facility operation license. After being awarded an operation license by the Location Commission, a facility operation license holder shall maintain compliance with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this subtitle. In addition to the terms defined in COMAR 36.03.01.02, in this chapter, the following term has the meaning indicated. Term Defined. “Application” means a written request for an operation license, and includes a proposal submitted to the Location Commission in response to a solicitation from that Commission. An applicant for an operation license shall submit an application in the form and format established by the Location Commission. The Commission shall receive an application for an operation license from the Location Commission. The Commission shall review an application to determine whether the applicant is qualified to hold an operation license. Upon making a determination as to an applicant's qualifications to hold an operation license, the Commission shall notify the Location Commission. In determining the qualifications of an applicant for an operation license, the Commission shall consider the information submitted by the applicant in response to the Location Commission's solicitation. An applicant for an operation license shall present in its application sufficient information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence: The applicant's financial stability, integrity, and responsibility; The integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bears a relation to the application; The applicant's good character, honesty, and integrity; Sufficient business ability and experience of the applicant; and The viability and appropriateness of the applicant's labor practices. The Commission shall disqualify an applicant for an operation license on the basis of any of the following criteria: Failure of the applicant to prove by clear and convincing evidence that the applicant and each person who owns or controls the applicant are qualified; Failure of the applicant or any person required to be qualified as a condition of a license to provide information, documentation, and assurances required by or requested by the Commission or the Location Commission; Failure of the applicant or any person required to be qualified as a condition of a license to reveal any fact material to qualification; Supplying, by the applicant or any person required to be qualified as a condition of a license, information that is untrue or misleading as to a material fact concerning the qualification criteria; Conviction of the applicant, or of any person required to be qualified as a condition of a license, of an offense under the laws of any jurisdiction that is a criminal offense involving moral turpitude or a gambling offense; Current prosecution of the applicant, or a person who is required to be qualified as a condition of a license, for an offense described under §C(5) of this regulation, provided that, at the request of the applicant, the Commission may defer its decision on the application during the pendency of the charge; Pursuit by the applicant, or a person who is required to be qualified as a condition of a license, of economic gain in an occupational manner or context that is in violation of the laws of the State, if the pursuit creates a reasonable belief that participation of the applicant in video lottery operations would be inimical to the policies of State law and this chapter; Identification of the applicant, or a person who is required to be qualified as a condition of a license, as a career offender, a member of a career offender cartel, or an associate of a career offender or career offender cartel, in a manner that creates a reasonable belief that the association is of a nature as to be inimical to the policies of State law and this chapter; The commission of an act by the applicant, or a person who is required to be qualified as a condition of a license, within the prior 7 years, that would constitute an offense described under §C(5) of this regulation, even if the act was not prosecuted or may not be prosecuted under the criminal laws of any jurisdiction; or Willful defiance by the applicant, or a person who is required to be qualified as a condition of a license, of a legislative investigatory body or other official investigatory body of the United States, or a jurisdiction within the United States, when the body is engaged in the investigation of crimes relating to gambling, official corruption, or organized crime activity. If the Commission identifies potential problems in the information submitted by the applicant with regard to a subject area that is not relevant to §B or C of this regulation, the Commission shall notify the Location Commission of these potential problems. The Commission shall notify the Location Commission upon making a determination that an applicant is or is not qualified to hold an operation license. The Commission shall issue an operation license to the applicant selected for award by the Location Commission. For an original license for a location that was awarded by the Video Lottery Facility Location Commission and issued by the Commission, the term of a license is 15 years from the date issued. As described in Regulation .10 of this chapter, upon timely and proper application, the Commission shall renew the operation license of a qualified operator. A renewal term of a license is 15 years from expiration of the existing term. Upon issuance or renewal of an operation license, a license holder shall exercise all diligence in fulfilling the specific requirements set out in the Location Commission’s request for proposals and the specific details in its license application, including all of the details in the final proposal that the license holder submitted to, and was approved by, the Location Commission. As required under State Government Article, §9-1A-19(b), Annotated Code of Maryland, an operation licensee may not sell or otherwise transfer more than 5 percent of the legal or beneficial interests of the licensee unless the Commission approves the transfer in advance. Failure to comply with the specific details referred to in §A or B of this regulation shall be grounds for the Commission invoking against the licensee the sanctions described in COMAR 36.03.04. Placement; Limitations. Subject to surveillance requirements in COMAR 36.03.10.11 and 36.03.11.04, a facility operator may place automated teller machines on the gaming floor within the facility. Gaming Floor. The proximity of an automated teller machine to a video lottery terminal or table game that is on a gaming floor is subject to the following limitations: An automated teller machine may be placed no closer than 7 feet to a video lottery terminal or table game; and There may be no more than one automated teller machine for every 75 video lottery terminals and table game seats. Withdrawal Limits. Exclusive of transaction fees or surcharges, the maximum amount that a player may withdraw from an account by using an automated teller machine located on the gaming floor is no more than $2,500 per gaming day. Negotiable Instruments Prohibited. In this regulation, "negotiable instruments” means an electronic benefit card, debit card, or similar instrument issued by the Department of Human Services for the purpose of accessing temporary cash assistance. An automated teller machine may not accept a negotiable instrument. Definition. In this regulation, the following term has the meaning indicated. Term Defined. “Predatory marketing practice” means an advertisement or promotion of an activity, product, or service related to play of a video lottery terminal or table game that is: False or deceptive; Illegal; or Knowingly directed to an individual: Who is under the age of 21 years; Whose name is included on the voluntary exclusion list maintained by the Commission under COMAR 36.01.03; Whose name is included on the mandatory exclusion list maintained by the Commission under COMAR 36.03.07; or Who is otherwise prohibited by law or court order from being on the premises of any video lottery operation licensed by the State. “Predatory marketing practice” includes an advertisement or promotion of an activity, product, or service related to play of a video lottery terminal or table game that: Uses or depicts an individual who is, or appears to be, under the age of 21 years; By font, color, placement, or any other means: Obscures or fails to disclose any material condition or limiting factor associated with the activity, product, or service that is being marketed; or Obscures the gambling assistance message required under COMAR 36.03.06. A facility operator may not: Engage in a predatory marketing practice; or Contract with another person to engage in a predatory marketing practice. Interference. Unless allowed by the First Amendment of the Constitution of the United States, a licensee may not knowingly, directly or indirectly, interfere with, hinder, obstruct, impede, or take any action to delay the implementation or establishment of a video lottery facility. Prohibition. The restrictions specified in §A of this regulation shall: Prohibit, as unlawful indirect conduct, activity: By an entity in which the licensee owns a beneficial or proprietary interest; or By an entity in which an affiliate of the licensee owns a beneficial or propriety interest; and Be deemed to prohibit as unlawful, activity: By an entity in which the licensee owns a beneficial or proprietary interest; or By an entity in which an affiliate of the licensee owns a beneficial or propriety interest. Civil Penalty or Sanction. A knowing violation of §A of this regulation may be used by the Commission to take enforcement action under COMAR 36.03.04. General. Unless otherwise specified, nothing in this chapter changes a requirement set forth in applicable law or regulation. Unless the Commission finds that the licensee is not qualified to hold a license, the Commission shall renew an operation license. Notice of Intent to Apply for Renewal. If a licensee seeks renewal of its operation license, the licensee shall submit to the Commission a timely and proper notice of intent to apply for renewal: At least 2 years, but not more than 5 years, before the expiration of a license term; and In a form and format required by the Commission. The notice of intent shall include: Name under which the licensee operates; Identification of all persons that are legal or beneficial owners as defined in State Government Article, §9-1A-05(d), Annotated Code of Maryland, and COMAR 36.03.01; An affidavit signed by an authorized representative affirming that the licensee: Intends to apply for license renewal; Is currently in compliance with all applicable requirements in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this subtitle; Acknowledges that the Agency may begin investigating the licensee’s qualifications upon receiving the notice of intent; Acknowledges that the licensee is responsible for reimbursing the Agency for the cost of the investigation; Attests to the truth and accuracy of the notice of intent; and Agrees to the release of information; and Any other information the Commission requires. Application to Renew Video Lottery Operation License. If a licensee submitted a timely and proper notice of intent to apply for renewal of the operation license, the licensee may submit an application to renew the license. A licensee shall submit an application to renew: At least 1 year, but not more than 5 years, before the expiration of a license term; and In a form and format required by the Commission. The application shall include: Proof of the $1,000,000 performance bond; Proof of the $2,000,000 payment bond; Proof of the $100,000 fidelity bond; and Any other information the Commission requires. After completing the investigation of qualifications under §D of this regulation, the Agency shall provide the Commission with the investigation results and a recommendation about the licensee’s qualifications. If the Agency recommends the Commission find the licensee qualified, the Commission shall issue a license renewal. If the Agency recommends that the Commission find the licensee not qualified, the Commission shall notify the licensee of the recommendation and provide the licensee with due process required for denial of a license application in COMAR 36.03.02.16.B. Investigation of Qualifications. The Commission may choose to commence its investigation no sooner than 2 years before expiration of the licensee’s current license. If an application is submitted prior to 2 years before the expiration of the licensee’s existing license, the licensee shall: Update its license application within 2 years of the expiration of the existing license; and Provide any additional information required by the Commission. The Agency shall: Conduct the investigation of the licensee’s qualifications in the same manner as under COMAR 36.03.02; and Apply the qualification criteria in Regulation .04B and C of this chapter. A licensee shall pay a deposit and submit reimbursement to the Commission for the costs of the investigation. License Renewal Fee. If the Commission renews a video lottery facility operation license, the licensee shall pay the license renewal fee in equal annual installments, as provided in State Government Article, §9-1A-13(d)(6), Annotated Code of Maryland. For each 5-year period of the 15-year renewal term, the video lottery licensee shall pay an amount calculated as the most recent 3-year average of: 0.75 percent of the amounts wagered less the amounts paid as prizes for VLTs and banked table games; and Plus 0.75 percent of the facility share of non-banked table game revenues. On or before the date the Commission renews the license, the licensee shall pay the first installment of the license renewal fee, representing 20 percent of the total fee due. Subsequent payments shall be paid on the anniversary of the license renewal. At the conclusion of each 5-year period, a new 3-year average will be calculated as the basis for the renewal fee payments over the next 5 years. State Government Article, §§9-1A-02, 9-1A-04, 9-1A-07, 9-1A-08, 9-1A-11, 9-1A-13, 9-1A-19, 9-1A-23, 9-1A-24, and 9-1A-36, Annotated Code of Maryland Effective date: Regulations .01—.09 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulation .01A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R 529) Regulation .04C amended effective March 14, 2016 (43:5 Md. R. 388) Regulation .04F amended as an emergency provision effective August 12, 2014 (41:18 Md. R. 1008); amended permanently effective October 27, 2014 (41:21 Md. R. 1262) Regulation .04F repealed effective March 14, 2016 (43:5 Md. R. 388) Regulation .05 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R 529) Regulation .06A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R 529) Regulation .07A amended effective October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976) Regulation .07A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R 529) Regulation .07B amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .10 adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); adopted permanently effective May 27, 2024 (51:10 Md. R 529) This chapter establishes a framework within which the Commission may take enforcement action against a licensee that results in a reprimand, fine, or condition placed on a licensee, or a suspension or revocation of a license. In addition to the terms defined in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, which have the same meanings in this chapter, in this chapter the following terms have the meaning indicated. Terms Defined. “Penalty” means a per day fine, not exceeding $5,000 for each separate violation, that the Commission may impose on a licensee under State Government Article, §9-1A-25(b), Annotated Code of Maryland. “Sanction” means non-monetary enforcement action that the Commission may take against a licensee for a violation specified in State Government Article, §9-1A-25(a), Annotated Code of Maryland, and includes suspension or revocation of a license, reprimand, or imposition of a condition on a licensee. A licensee may not: Violate: A provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; A regulation adopted under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; or A directive of the Commission or the Director; Take, or attempt to take, any action that is intended to: Change or influence the outcome of a video lottery terminal or table game; Influence any person or unit of government that is involved in implementing or enforcing State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; or Interfere with the regular operation of: The central monitor and control system; A video lottery terminal; Associated equipment or software; or A table game; or Fail to: Conform to the information contained in a license application; Meet a licensing requirement; Promptly submit to the Commission a change to the information contained in a license application; Adequately remedy a deficiency of which the licensee has received notice under Regulation .04E of this chapter; or Maintain a video lottery employee license in good standing. After receiving a report of a licensee’s alleged violation of Regulation .03 of this chapter, the agency shall: Notify the licensee of the alleged violation; and Investigate the report. The Director may designate staff to serve on a review board that: Reviews the investigation of an alleged violation conducted under §A of this regulation; and Makes a recommendation to the Director for addressing the alleged violation. The review board’s recommendation to the Director may include: Requiring the licensee to implement a corrective action plan; Issuing the licensee a warning letter; Entering into a settlement agreement with the licensee; Recommending that the Director initiate Commission proceedings to impose a penalty or sanction on the licensee; or Any other appropriate action. After reviewing the board’s recommendation, the Director may: Initiate Commission proceedings to impose a penalty or sanction on the licensee; or Direct staff to: Implement the board’s recommendation; or Take other appropriate action. A licensee shall be provided a notice of the violation that describes the statute, regulation, or directive allegedly violated, along with the Director’s recommendation for addressing the alleged violation. Nothing in this chapter shall be construed to require that: The licensee receive an opportunity to meet with staff to discuss an informal settlement of a violation; or The agency undertake a corrective action plan or attempt to reach a settlement with the licensee before the Director initiates Commission proceedings for imposition of a penalty or sanction against a licensee. If the Director directs staff to implement a corrective action plan with a licensee, agency staff shall give written notice to a licensee that includes: A description of the alleged violation; A description of the possible sanctions; and The requirement for the licensee to submit a corrective action plan to the Director. Contents of Corrective Action Plan. A corrective action plan shall include: Periodic monitoring or progress reports; Timelines for completing corrective action; Implementation of measures to guard against recurrence of the alleged violation; and Any other measures necessary to resolve the alleged violation. Time for Implementing a Corrective Action Plan. Within 10 days of receipt of a notice under §A of this regulation, the licensee shall submit a corrective action plan to the Director, or the Director’s designee. The Director, or the Director’s designee, shall review the corrective action plan and inform the licensee whether the corrective action plan is acceptable. If the corrective action plan is acceptable, the licensee shall execute it immediately. If the corrective action plan is not acceptable, the licensee shall submit a revised plan immediately. If the licensee fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the Director may: Provide the licensee with additional time within which to submit a revised corrective action plan; or Initiate proceedings before the Commission for imposition of a penalty or sanction on the licensee. If the Director, or the Director’s designee, provided a licensee with a notice under §A of this regulation and did not receive a timely written response, the Commission may adopt a recommendation by the Director for imposition of a penalty or sanction. Corrective Action Plan Outcome. After a licensee has completed, to the satisfaction of the Director or the Director’s designee, a corrective action plan, the alleged violation is resolved, except that the alleged violation may be: The basis of a subsequent corrective action plan, settlement, penalty, or sanction if a similar violation occurs; or Raised during a Commission hearing as part of the agency’s enforcement record for the licensee. If at any time during the corrective action period the Director, or the Director’s designee, determines that the licensee has made insufficient progress toward fulfilling a requirement of the corrective action plan, the Director may: For good cause, extend the time for completion of a corrective action plan; or Initiate proceedings before the Commission for imposition of a penalty or sanction on the licensee. If at the end of the corrective action period the licensee has failed to satisfactorily complete the corrective action plan, the Director may initiate proceedings before the Commission for imposition of a penalty or sanction on the licensee. The Commission may provide a licensee with the opportunity to discuss with staff a means of entering into a settlement agreement between the licensee and the Commission by which the violation is settled without a penalty or sanction. A settlement agreement: Shall be signed by an authorized representative of the licensee and the Director or the Director’s designee; and May not be considered final and binding until approved by the Commission. If a licensee violates a term of a settlement agreement, nothing in this regulation shall be construed to prevent the Commission from imposing a penalty or sanction against the licensee for that, or the underlying, violation. General. The Director may initiate Commission proceedings for imposition of a penalty or sanction against a licensee if a licensee: Violates a provision of Regulation .03 of this chapter; Fails to timely or satisfactorily complete a corrective action plan required by the Commission; Violates a term of a settlement agreement; or Engages in any conduct that exposes the State’s gaming program to a serious and imminent risk of harm to its integrity, security, or profitability. Initiation of Commission Proceedings. The Director shall initiate Commission proceedings for the imposition of a penalty or sanction on a licensee by scheduling a Commission hearing in accordance with COMAR 36.01.02.06 on the alleged violation and providing the licensee with written notice of the: Recommendation for imposition of the penalty or sanction; Basis for the recommendation for imposition of the penalty or sanction; Consequences of a decision by the Commission to impose a penalty or sanction; Date, time and location of the hearing; and Applicable hearing rights. The Director may emergently suspend a license if the Director determines that suspension is necessary in order to protect the State’s gaming program against a serious and imminent risk of harm to its integrity, security, or profitability. Emergency Suspension—Process. If the Director emergently suspends a license, the Director shall promptly schedule a Commission hearing on the emergency suspension and provide the licensee with the written notice required under Regulation .07B of this chapter, along with notice directing the licensee that: The licensee shall immediately cease performing under the license; and Failure to comply with the Director’s directive to cease performing under the license constitutes a separate violation of Regulation .03 of this chapter for which an additional penalty or sanction may be imposed. Consequences. For a violation of Regulation .03 of this chapter, the Commission may impose a: Penalty not exceeding $5,000 for each day and each violation; Sanction, including: Revocation of a license; Suspension of a license for a period of time; Reprimand; or Condition that must be met within a specified time as to: Training; Staffing; Supervision; Compliance with internal controls; Probationary periods; or Any other directive to address the violation. Penalty—Required Considerations. To determine the amount of a penalty to impose on a licensee, the Commission shall consider: The seriousness of the violation; The harm caused by the violation; and Whether the person who committed the violation acted in good faith. Sanction—Considerations. To determine the appropriate sanction to impose on a licensee, the Commission may consider the factors in §B of this regulation, and: Whether a violation was willful; Whether the licensee had, or should have had, control of the situation; Whether the violation may have occurred in connection with unclear or insufficient: Information; Training; Communication; or Requirements; Any extraordinary circumstances; Prior disciplinary history with the Commission; Profit that resulted, or may have resulted, from the violation; Harm that resulted, or may have resulted, from the violation; How the violation was detected; Tailoring the discipline to address the violation; Action taken by the licensee to prevent recurrence of the violation; Action taken by the Commission to address similar violations; and Any other information that the Commission finds relevant. Ignorance No Defense. Because a licensee is presumed to be familiar with applicable statutes and regulations governing the State’s video lottery terminal program, a claim of ignorance of the law may not be used as a defense to a finding of a violation or to the imposition of a penalty or sanction. Imposition of penalty and sanction. A penalty and a sanction may be imposed for each violation. Commission action against a licensee for a violation of Regulation .03 of this chapter shall be conducted as specified in COMAR 36.01.02.06, and the Commission shall: Make a finding whether the licensee violated a provision of Regulation .03 of this chapter; and If the licensee violated a provision of Regulation .03 of this chapter, decide whether, and to what extent, to impose a penalty or sanction. A licensee may seek judicial review of the Commission’s decision. A licensee against whom the Commission ordered the imposition of suspension or revocation of a license shall immediately comply with the Commission’s order. A licensee against whom the Commission imposed a penalty shall remit to the Commission payment in full of the penalty within 30 calendar days. State Government Article, §§9-1A-04, 9-1A-24, and 9-1A-25, Annotated Code of Maryland Effective date: Regulations .01—.07 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01—.10 adopted effective August 5, 2013 (40:15 Md. R. 1233) Regulation .03C amended effective October 19, 2020 (47:21 Md. R. 905) Regulation .07 amended effective September 26, 2016 (43:19 Md. R. 1073) This chapter establishes the manner and method by which the Commission may conduct an unannounced inspection of the premises, records, and equipment of a licensee and related entities in order to evaluate and verify a licensee’s compliance with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and the regulations promulgated by the Commission for the Video Lottery Terminal Program. A licensee is subject to unannounced inspections conducted by the Commission in order to evaluate and verify the licensee’s compliance with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland and the regulations promulgated by the Commission for the Video Lottery Terminal Program. The Commission or a designee may conduct an unannounced inspection without a warrant and take any of the following actions: Conduct an inspection of premises in which: Video lottery or table game operations are conducted; Authorized video lottery terminals, table game equipment, a central monitor and control system, or associated equipment and software are: Designed; Built; Constructed; Assembled; Manufactured; Sold; Distributed; or Serviced; or Records are prepared or maintained for activities referenced in §B(1)(a) or (b) of this regulation; Conduct an inspection of a video lottery terminal, table game equipment, a central monitor control system, or associated equipment and software in, about, on, or around the premises specified in §B(1) of this regulation; From the premises specified in §B(1) of this regulation, summarily seize, remove, impound, or assume physical control of, for the purposes of examination and inspection: A video lottery terminal; Table game equipment; A central monitor and control system; or Associated equipment and software; Inspect, examine, and audit books, records, and documents concerning a licensee’s video lottery or table game operations, including the financial records of a: Parent corporation; Subsidiary corporation; or Similar business entity; or Seize, impound, or assume physical control of: Books; Records; Ledgers; Cash boxes and their contents; A counting room or its equipment; Other physical objects relating to video lottery operations; or Any record or object that a licensee is required by law or license terms to maintain. During an inspection, a licensee and its employees, agents, and representatives: Shall: Make available for inspection, copying, or physical control a record that a licensee is required to maintain; Authorize any person having financial records relating to the licensee to provide those records to the Commission; and Otherwise cooperate with the activities of the Commission described in this chapter; and May not knowingly interfere with the authorized activity of the Commission during an unannounced inspection. An unannounced inspection may be conducted: Any time during reasonable business hours; and Periodically, as determined by the Commission. The refusal of a licensee or a licensee’s employees or agents to provide the Commission with the access necessary to perform an unannounced inspection may be the basis for enforcement action under COMAR 36.03.04. Within a reasonable time after the conclusion of the unannounced inspection, the Commission’s inspectors shall submit a written report of the inspection to: The Commission; The Director; and The licensee who was the subject of the Commission’s unannounced inspection. A written report of an unannounced inspection shall be considered a public record to the extent allowable under State Government Article, Title 10, Subtitle 6, Annotated Code of Maryland. State Government Article, §9-1A-04, Annotated Code of Maryland Effective date: Regulations .01—.03 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01—.03 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347) The Commission shall notify each State facility operator of the placement of an individual on the voluntary exclusion list established in COMAR 36.01.03. A facility operator may disclose information about an individual on the voluntary exclusion list to: The Commission; The facility’s: Manager; Security department; Surveillance department; or Employees who are directly responsible for excluding unauthorized individuals from the facility; and If the facility operator pursues criminal charges against an individual on the voluntary exclusion list who is suspected of trespassing at a video lottery facility, to: A law enforcement officer; or A person who is legally authorized to be involved in the criminal prosecution of an individual on the voluntary exclusion list who is suspected of trespassing at a video lottery facility. If a facility operator uses technology for the purpose of complying with §E of this regulation, the facility operator shall ensure that the technology: Complies with all applicable State requirements; and Is designed to prevent unauthorized access to confidential records. If an individual on the voluntary exclusion list is found on the premises of a video lottery facility, the operator: Shall immediately notify the Commission; and May pursue criminal charges against the individual for trespassing or any other appropriate criminal charge. A facility operator may not: Permit an individual on the voluntary exclusion list to: Enter into the video lottery facility; or Play a video lottery terminal or table game; Knowingly fail to exclude from the premises an individual on the voluntary list; or Disclose information about individuals on the voluntary exclusion list beyond the disclosures that are authorized under §B of this regulation. A facility shall establish a responsible gaming plan that sets forth the facility’s plan for addressing problem gambling at the facility that shall include at least the following elements of the plan: Goals; Procedures and deadlines for implementation; Identification of facility personnel responsible for implementation; Responsibilities of facility personnel identified as responsible for implementation; Training for facility personnel on problem gambling and voluntary exclusion; Means of controlling access to records pertaining to voluntary exclusion; Means of educating players about: Problem gambling; Problem gambling treatment resources, including treatment and prevention programs established under State Government Article, §9-1A-33, Annotated Code of Maryland; and Voluntary exclusion; Placement of responsible gambling awareness materials in the facility as required under Regulation .03 of this chapter; Ensuring that an individual in the Voluntary Exclusion Program is not permitted to: Enter the video lottery facility; Play a video lottery terminal or table game; or Claim a jackpot; The facility’s response to the discovery of an individual who is enrolled in the voluntary exclusion program on facility property, which may include pursuing criminal charges against the individual; and Any other element required by the Commission. A facility operator shall submit to the Commission the responsible gaming plan required under §A of this regulation at least 60 days before video lottery terminal operations are to commence. A facility operator shall submit any amendments to a facility’s responsible gaming plan to the Commission prior to implementation. A facility operator shall submit to the Commission an annual report describing the facility’s responsible gaming plan, which shall include a statement regarding compliance with Regulation .01C of this chapter. Definitions. In this regulation the following terms have the meaning indicated. Terms Defined. “Advertisement” means any material that is: Disseminated to the public through broadcasting, publication, mail, or any other means; and Intended to encourage video lottery terminal or table game play. “Billboard advertisement” means a roadside sign, aviation banner, or event banner that is intended to encourage video lottery terminal or table game play. “Gambling assistance message” means a phrase approved by the Commission to encourage responsible play; “Online advertisement” means an advertisement on a website, an application, in social media, or otherwise on the internet, that is intended to encourage video lottery terminal or table game play. “Printed advertisement” means an advertisement that appears in or on a sign, direct mailing, poster, brochure or other written material and is intended to encourage video lottery terminal or table game play. “Responsible gambling awareness materials” means a sticker, a brochure, a wallet card, or other material that conveys only problem gambling resource information. “Underage warning message” means the language that prohibits individuals under the age of 21 on the gaming floor”. A facility operator shall: Post signage approved by the Commission that prominently bears the gambling assistance message and the underage warning message at each customer entrance to the gaming floor; Include the gambling assistance message on an advertisement that is intended to encourage video lottery terminal or table game play at its facility; Ensure that a printed advertisement bears the gambling assistance message and meets requirements of COMAR 36.03.03.08; Ensure that a billboard bearing a printed advertisement bears the gambling assistance message and meets requirements of COMAR 36.03.03.08; Ensure that a radio, television, or video advertisement bears the gambling assistance message and meets requirements of COMAR 36.03.03.08; Ensure that the gambling assistance message is printed on a paper product that is associated with player consumption of food or beverage if the paper product is: Special ordered; and Branded with the facility's logo; Ensure that the gambling assistance message is printed on ticket stock; Place in the facility responsible gambling awareness materials according to its responsible gaming plan required under Regulation .02 of this chapter; and Ensure that an advertisement does not include language that suggests an outcome is guaranteed or without risk; and Ensure that an advertisement includes a gambling assistance message that: For a printed advertisement, the font height is the greater of: The majority of the text in the advertisement; or Three percent of the height or width of the advertisement. For a billboard advertisement, the font height of the gambling assistance message shall be at least 5 percent of the height or width, whichever is greater, of the face of the billboard; For a video and television advertisement, the gambling assistance message shall: Be visible for the entire duration of the advertisement, with a font size that is at least 3 percent of the image height or width, whichever is greater; or From the first instance video lottery terminal, table game play or a facility operator is displayed, appear on the final screen for at least the final three seconds of the advertisement with a font height that is at least 8 percent of the image height or width, whichever is greater; For websites and social media, the gambling assistance message shall: Be posted on each webpage or profile page, and on any gaming-related advertisement posted on the webpage or profile page, with a font height that is at least the same size as the majority of the text used on the webpage or profile page; or Meet the font height and shall comply with the requirements in §B(10)(a) of this regulation.. State Government Article, §9-1A-24, Annotated Code of Maryland Effective date: Regulations .01— .03 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01— .03 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347) Regulation .01 amended effective October 19, 2020 (47:21 Md. R. 905) Regulation .01B, C amended effective February 3, 2014 (41:2 Md. R. 93) Regulation .02A, D amended effective February 3, 2014 (41:2 Md. R. 93) Regulation .02D amended effective October 19, 2020 (47:21 Md. R. 905) Regulation .03 amended effective May 25, 2026 (53:10 Md. R. 459) Regulation .03A amended effective January 7, 2016 (42:26 Md. R. 1597) Regulation .03B amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) This chapter establishes a mechanism by which the Commission: Maintains a list of individuals who are to be mandatorily excluded or ejected from a video lottery facility; and Establishes standards that require a video lottery operation licensee to: Exclude or eject an individual from the premises of a video lottery facility; and Ensure that intoxicated individuals and individuals under the age of 21 are not allowed: To play video lottery terminals or table games; and In areas of the video lottery facility where video lottery terminals or table games are located. In this chapter, the following terms have the meaning indicated. Terms Defined. “Excluded individual” means an individual whose name and identifying information have been placed on the mandatory exclusion list. “Mandatory exclusion list” means a list that is maintained by the Commission and identifies those individuals whom the Commission has directed be mandatorily excluded or ejected by a video lottery operation licensee from any video lottery operation licensed in the State. Unredeemed Item. “Unredeemed item” means a token, voucher, check, ticket, chip, coupon, or similar item that has monetary value, and that a player has: Won by playing a video lottery terminal or table game; Inserted into a video lottery terminal; Played at a table game; or Received by converting cash, check, or wire transfer at a video lottery facility. “Unredeemed item” does not include cash. The Commission shall establish a mandatory exclusion list. The Director may place on the mandatory exclusion list an individual who: Is a career offender; Has been convicted of a criminal offense under the laws of the United States or any jurisdiction within the United States that is a criminal offense involving moral turpitude or a gambling offense; Would adversely affect the interests of the State, the licensee, or the individual if the individual were to be present at a video lottery facility; Is the subject of any administrative or judicial order directing the individual to stay away from a video lottery or other gaming facility; Presents a threat to the safety of any individual on the premises of a video lottery facility; Engages in, or has a documented history of engaging in, disruption of video lottery or table game play; The Director or a facility operator has a reasonable belief has cheated, or attempted to cheat, at a facility by engaging in conduct including: Altering or misrepresenting the outcome of a game or event on which bets have been placed; Placing, cancelling, increasing, or decreasing a bet based on knowledge that is not available to other players; Claiming or collecting a prize from a video lottery facility that the individual did not win or earn or that the individual was not otherwise authorized to claim or collect; Manipulating a video lottery terminal, a table game, a central monitor and control system, or associated equipment or software to affect the outcome of a game or bet; or Altering the elements of chance or methods of selection or criteria that determine the outcome of a game or bet; or Engages in any conduct that may adversely affect public confidence in, or perception of, video lottery or table game operations in the State. In evaluating whether to place an individual on the mandatory exclusion list, the Director may specify monetary amounts and circumstances, including: The nature of the incident; Whether the individual was a video lottery employee licensee at the time of the incident; If the individual was a licensee, whether the individual was working at a video lottery facility while the individual engaged in conduct described in §B of this regulation; Whether the incident directly impacts: A video lottery facility; A player; or A licensee; The amount or type of loss to: A video lottery facility; A player; or A licensee; Whether the individual made restitution; Whether the individual was involved in a prior incident that meets the criteria of §B of this regulation; Whether a video lottery facility has other information the Director finds relevant; and Any other information the Director finds relevant. The entry of an individual on the mandatory exclusion list shall include sufficient information to identify the excluded individual. The information used to identify an excluded individual may include: The individual’s: Name and any nickname or alias; Residential address; Telephone numbers; Gender; Physical description, including any birthmarks, scars, or tattoos; Race or ethnic origin; For non-United States citizens, country of origin; and Photograph; Date of placement on the mandatory exclusion list; Brief statement of the basis for placing the individual on the mandatory exclusion list; and Any other information the Commission requires. The mandatory exclusion list and related records are public records under General Provisions Article, §4-101, Annotated Code of Maryland. Upon receipt of information that reasonably indicates an individual meets any criteria under Regulation .03B of this chapter, and after making any considerations described in Regulation .03 of this chapter, the Director shall: Evaluate the information; Ensure that the information required under Regulation .03E of this chapter sufficiently identifies the individual; and Decide whether to place the individual on the mandatory exclusion list. Prior to placing an individual on the mandatory exclusion list, the Director or the Director’s designee may provide a video lottery facility with: Information used to identify an individual who may be excluded; The factual basis for placing an individual on the mandatory exclusion list; and An opportunity to provide the Director with information identified in Regulation .03 of this chapter. If the Director decides to place an individual on the mandatory exclusion list, staff shall deliver to the individual by U.S. mail a written notice explaining: The factual basis for placing the individual on the mandatory exclusion list; The availability of a reconsideration meeting with the Director or the Director’s designee; The requirements for submitting a request for a reconsideration meeting; If a timely request for a reconsideration meeting is not submitted, the individual’s name shall be placed on a mandatory exclusion list and the name will be distributed to all facility operators in the State and be publicly available; and That the excluded individual shall be: Prohibited from entering any video lottery facility, and from playing any video lottery terminal or table game, in the State; Subject to criminal charges for trespassing or any other appropriate criminal charge; and Required to: Redeem or liquidate an unredeemed item with monetary value that the individual has received since being placed on the mandatory exclusion list; and Surrender to the Problem Gambling Fund established under State Government Article, §9-1A-33, Annotated Code of Maryland, any unredeemed items and prizes in the possession of the individual or received by the individual at a video lottery facility after placement on the mandatory exclusion list. Reconsideration Meeting. An individual may submit to the Director a written request for a reconsideration meeting within 15 days of the date of the individual’s receipt of the notice described in §C of this regulation. If an individual fails to timely submit a request under §D(1) of this regulation, the individual shall be placed on the mandatory exclusion list. A reconsideration meeting may be held by the Director or the Director’s designee; During a reconsideration meeting, an individual may: Be represented by counsel; and Present evidence as to why the individual does not meet the criteria under Regulation .03B of this chapter. The Director or the Director’s designee shall deliver to the individual by U.S. mail a written notice of the decision following the reconsideration meeting. An individual dissatisfied with the result of a reconsideration meeting may submit a written request to the Commission for an appeal hearing. The request for an appeal hearing shall: Be submitted within 15 days of the date of the individual’s receipt of the written notice of the decision following the reconsideration meeting; and Describe the individual’s legal and factual bases for disagreeing with placement on the mandatory exclusion list. If an individual fails to timely submit a written request for an appeal hearing under §D(7) of this regulation, the individual shall be placed on the mandatory exclusion list. Upon receipt of a timely written request for an appeal hearing, the Director or the Director’s designee shall provide the individual with a notice for the appeal hearing. Appeal Hearing. If after an appeal hearing the Commission decides that the excluded individual does not meet any criteria under Regulation .03B of this chapter, the individual’s name may not be placed on the mandatory exclusion list. If after an appeal hearing the Commission decides that the excluded individual meets any criteria under Regulation .03B of this chapter: The individual’s name shall remain on the mandatory exclusion list; The Commission shall notify all facility operators in the State of the individual’s addition to the mandatory exclusion list; The individual may seek judicial review of the Commission’s decision; and The individual may request to be removed from the mandatory exclusion list only as provided in Regulation .05 of this chapter. After an excluded individual has been on the mandatory exclusion list for at least 5 years, the individual may request removal from the mandatory exclusion list. An excluded individual’s request under §A of this regulation shall be submitted to the Director in writing and shall include a detailed statement about why there is: Good cause for removal of the individual from the list; and A material change in the individual’s circumstances since the individual’s name was placed on the list. The Director or the Director’s designee shall investigate the request and make a recommendation to the Commission whether to grant or deny the request. If the Director or the Director’s designee recommends removing the individual from the list, the Commission may approve the recommendation without a hearing, and Agency staff shall: Remove the individual from the mandatory exclusion list; Deliver to the individual by U.S. mail a notice of removal from the mandatory exclusion list; and Notify the State’s facility operators of the individual’s removal from the mandatory exclusion list. If the Director or the Director’s designee recommends continued inclusion on the mandatory exclusion list, the excluded individual may submit a written request for an appeal hearing to the Commission. Appeal Hearing. The request for an appeal hearing shall: Be submitted within 15 days of the date of the individual’s receipt of the written notice of the recommendation of the Director or the Director’s designee; and Describe the individual’s legal and factual bases for disagreeing with the recommendation. If an individual fails to timely submit a written request for an appeal hearing under §F(1)(a) of this regulation, the individual shall remain on the mandatory exclusion list. Upon receipt of a timely written request for an appeal hearing, the Director shall provide the individual with a hearing notice for a hearing. If after a hearing the Commission denies the individual’s request for removal, it shall deliver to the individual by U.S. mail a notice that the: Request was denied; and Individual shall remain on the mandatory exclusion list. Separate from the individual’s ability to request removal under §A of this regulation, the Director shall periodically review the mandatory exclusion list and may consider the following in order to determine if an individual should be removed: Whether the individual is living; Whether there are changed circumstances; or Any other relevant information. The Commission’s decision under Regulations .04E(2) and .05G of this chapter may be subject to judicial review. A facility operator may not: Knowingly fail to exclude or eject from the facility premises an excluded individual; Fail to notify the Commission if an excluded individual is excluded or ejected from the facility; Permit an intoxicated individual or individual under the age of 21 to: Play a video lottery terminal or table game; or Be in areas of the video lottery facility where video lottery terminals or table games are located; Knowingly allow the following individuals to collect a jackpot: An excluded individual; or An individual under the age of 21; or Fail to obtain any unredeemed items and prizes in the possession of an excluded individual and transfer them to the Problem Gambling Fund established under State Government Article, §9-1A-33, Annotated Code of Maryland. A facility operator shall establish a plan for identifying and: Excluding or ejecting from a facility: Excluded individuals; and Individuals who may be eligible for placement on the mandatory exclusion list; and Ensuring that intoxicated individuals and individuals under the age of 21 are not allowed: To play video lottery terminals; and In areas of the video lottery facility where video lottery terminals or table games are located. The plan required under §A of this regulation shall include at least the following elements: Goals; Procedures and deadlines for implementation; Identification of facility personnel responsible for implementation; Responsibilities of facility personnel identified as responsible for implementation; Training for facility personnel on the requirements of this chapter; Regular monitoring of the mandatory exclusion list; Prompt reports to the Commission about the presence on facility premises of an individual who: Is included on the mandatory exclusion list; and Is required to be prevented from playing video lottery terminals or table games; Prompt reports to the Commission about an individual who is permanently excluded from the facility; The facility’s response to the discovery of an individual who is on the mandatory exclusion list on facility property, which may include pursuing criminal charges against the individual; and Any other element required by the Commission. A facility operator shall submit to the Commission for its approval: The exclusion plan required under §A of this regulation at least 60 days before video lottery terminal operations are to commence; Any amendments to a facility’s exclusion plan prior to implementation; and An annual report describing the operation of the facility’s exclusion plan. State Government Article, §9-1A-24(d), Annotated Code of Maryland Effective date: Regulations .01—.08 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01—.08 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347) Regulation .02B amended effective February 26, 2018 (45:4 Md. R. 208) Regulation .03 amended effective October 22, 2018 (45:21 Md. R. 976) Regulation .03B, C amended effective June 23, 2014 (41:12 Md. R. 670) Regulation .03C—E amended effective February 26, 2018 (45:4 Md. R. 208) Regulation .04 amended effective February 26, 2018 (45:4 Md. R. 208); October 22, 2018 (45:21 Md. R. 976) Regulation .04B, C amended effective June 23, 2014 (41:12 Md. R. 670) Regulation .05 amended effective February 26, 2018 (45:4 Md. R. 208); October 22, 2018 (45:21 Md. R. 976) Regulation .06 amended effective June 23, 2014 (41:12 Md. R. 670); February 26, 2018 (45:4 Md. R. 208); October 22, 2018 (45:21 Md. R. 976) Regulation .07 amended effective October 22, 2018 (45:21 Md. R. 976) Regulation .07D amended effective June 23, 2014 (41:12 Md. R. 670) Regulation .08B amended effective June 23, 2014 (41:12 Md. R. 670); February 26, 2018 (45:4 Md. R. 208) This chapter establishes the manner and method by which the Commission may collect from an applicant or licensee a tax, fee or civil penalty established under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and the manner by which a facility operator may reconcile proceeds under State Government Article, §9-1A-26, Annotated Code of Maryland. In this chapter, the following terms have the meanings indicated. Terms Defined. “Fee” means an amount established by the Commission that an applicant or licensee is required to pay and includes: A license fee under State Government Article, §9-1A-07(b), Annotated Code of Maryland; A fee associated with an applicant's criminal history records check under State Government Article, §9-1A-20(d), Annotated Code of Maryland; An application, license, or renewal fee under COMAR 36.03.02, 36.03.03, and 36.04.02; An annual fee of $425 for each authorized video lottery terminal on a video lottery terminal operator’s license, to be paid by a video lottery operation licensee as required by State Government Article, §9-1A-33, Annotated Code of Maryland, and COMAR 36.04.02.02; For the highest number of table games in use on a single gaming day in the applicable calendar year, an annual fee of $500 to be paid by a video lottery operation licensee for each table game as authorized by State Government Article, §9-1A-33, Annotated Code of Maryland; Except for an initial license fee for a video lottery operation license, any other fee imposed by the Commission under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; and A renewal of a video lottery facility license under COMAR 36.03.03.10. “Penalty” has the meaning stated in COMAR 36.03.04.02. “Proceeds” has the meaning stated in State Government Article, §9-1A-01, Annotated Code of Maryland. A tax that is due and payable shall be paid by an applicant or licensee and collected in accordance with State and federal law. For a fee or penalty: The Commission shall issue an invoice or other order to pay; and An applicant or licensee shall remit payment to the Commission within 30 days after the date of the invoice or order to pay. Reconciliation of Proceeds. In reconciling proceeds as described in this section, a facility operator shall account for video lottery terminal proceeds separately from table game proceeds. If a facility operator returns to successful players more than the amount of money bet through video lottery terminal or table game play on a gaming day, the facility operator may subtract the difference between the amount bet and the amount returned to players from its proceeds of up to 7 following gaming days. A facility operator may not subtract losses pursuant to §C(2) of this regulation for more than 7 consecutive gaming days. An applicant or licensee shall pay a fee or civil penalty by: Wire transfer; Money order; Certified check made payable to the “State of Maryland”; or Any other manner designated by the Commission. The Commission shall deposit payment of: Except as provided in §B(3) of this regulation, an application, license, renewal, or other fee into a bank account that the State Treasurer designates to the credit of the State Lottery and Gaming Control Agency Fund to cover the Commission’s administrative costs related to licensing; A fee into the Problem Gambling Fund established in the Maryland Department of Health under State Government Article, §9-1A-33(b), Annotated Code of Maryland: An annual fee of $425 for a video lottery terminal; and An annual fee of $500 for a table game; and A fee for renewing a video lottery facility operator license as authorized in State Government Article, §9-1A-13, Annotated Code of Maryland, into the Education Trust Fund established in State Government Article, §9-1A-30, Annotated Code of Maryland. The Commission may recover from an applicant or licensee whose payment of a fee or penalty is overdue: The unpaid amount of the fee or penalty; Revenues lost to the State as the result of the nonpayment; Attorney's fees; and Any other penalty, interest, cost, and expense allowable by law. The failure of a licensee to timely pay a fee or penalty is a violation of a directive of the Commission. The Commission's election to seek recovery under §C of this regulation for a licensee's failure to pay a fee or penalty does not preclude the Commission or the State from enforcing other rights, or seeking other remedies, for the same failure to pay. Nothing in this chapter shall be construed to preclude the Commission from withholding or reducing the distribution of proceeds to an operator under State Government Article, §9-1A-27, Annotated Code of Maryland, or instituting as set-off, counterclaim, fines, penalties, or any other legally permitted deduction, for a licensee's: Failure to pay a fee or penalty; Unsatisfactory performance; Failure to timely fulfill all of the Commission's requirements; or Material breach of a term or condition of a license. The Commission shall account for collection of a fee or penalty in accordance with applicable law. State Government Article, §§9-1A-01, 9-1A-04, 9-1A-13, 9-1A-26, and 9-1A-33, Annotated Code of Maryland Effective date: Regulations .01—.04 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01—.04 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347) Regulation .01 amended as an emergency provision effective July 10, 2017 (44:16 Md. R. 807); amended permanently effective September 11, 2017 (44:18 Md. R. 867) Regulation .02B amended as an emergency provision effective July 10, 2017 (44:16 Md. R. 807); amended permanently effective September 11, 2017 (44:18 Md. R. 867) Regulation .02B amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .03C adopted as an emergency provision effective July 10, 2017 (44:16 Md. R. 807); amended permanently effective September 11, 2017 (44:18 Md. R. 867) Regulation .03C amended effective August 13, 2018 (45:16 Md. R. 776) Regulation .04B amended effective January 7, 2016 (42:26 Md. R. 1597) Regulation .04B, D amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) A facility operator shall ensure that: A junket agreement between a facility operator and a junket enterprise, or junket representative, is in writing; and An executed copy of the junket agreement is submitted to the Commission before a junket arrives at the video lottery facility. A junket agreement shall include at least the following provisions: If the Commission disapproves a term of the junket agreement, or determines that a junket enterprise or junket representative has engaged in an activity prohibited under Regulation .02 of this chapter: The Commission shall notify the facility operator that is a party to the junket agreement of the disapproval or determination; and The operations under the agreement shall be suspended as of the date of the Commission’s disapproval until it is amended by the parties to the satisfaction of the Commission. The junket enterprise or junket representative shall: Maintain good standing with the Maryland Department of Assessment and Taxation; and Obtain and maintain all required business licenses and permits; The services of the junket enterprise and junket representative will comply with all applicable laws. Junket final reports shall: Be prepared by a facility operator for a junket engaged in or on its property, and shall include: The origin of a junket and its date and time of arrival and departure; The name of all junket enterprises and junket representatives involved in the junket; A junket manifest that lists the names and addresses of the junket participants; The nature, amount, and value of complimentary services, accommodations, and other items provided by the facility to a junket participant; and The total amount of services or other items of value provided to or for the benefit of a patron participating in a junket that was paid for by the junket enterprise, a junket representative, or an agent or employee of a junket enterprise or junket representative; Be prepared and signed by an employee of the facility operator; Be prepared within 7 days of completion of the junket; and Upon request of the Commission, be submitted to the Commission. A facility operator shall ensure that a junket enterprise or a junket representative, or an agent or employee of a junket enterprise or a junket representative, does not: Unless approved in writing by the Commission, accept compensation on any basis other than theoretical win; Engage in collection efforts; Solicit, receive, or accept any fee or gratuity from a patron for the privilege of participating in a junket or for performance of any function for which the junket enterprise or junket representative is licensed; Unless disclosed in writing to the facility operator for which the junket was arranged, pay for transportation or any other service or item of value that is provided to or for the benefit of a patron participating in a junket; Extend credit to, or grant credit on behalf of a facility operator to, a patron participating in a junket; Accept an advance of money or a loan from a patron participating in a junket; Engage in conduct that would bring the State into disrepute; Pursue economic gain in an occupational manner or context that is in violation of the laws of the State, if the pursuit creates a reasonable belief that participation of the junket enterprise or junket representative would be inimical to the policies of State law or the State’s video lottery terminal operations; Engage in activities that create a reasonable belief that the junket enterprise or junket representative is, or is an associate of, a career offender or a member of a career offender cartel. Engage in a predatory marketing practice prohibited under COMAR 36.03.03.08; or Perform junket services under an agreement that has not been reduced to writing. State Government Article, §§9-1A-02 and 9-1A-12, Annotated Code of Maryland Effective date: Regulations .01 and .02 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01—.02 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347) In this chapter, the following terms have the meanings indicated. Terms Defined. “Bill validator” means an element of a video lottery terminal designed and configured to accept any combination of currency, gaming tickets, promotional play instruments, or other instruments authorized by the Commission for activating credits on a video lottery terminal. “Cash” means currency and coin. “Cash equivalent” means a: Certified check, cashier’s check, treasurer’s check, travelers check, or money order that is: Payable to the facility operator, “bearer”, or “cash”; Drawn for a specific amount; Currently dated not postdated; Payable on demand; and Without an endorsement; and Certified check, cashier’s check, treasurer’s check, or money order that is: Made payable to the presenting player; Drawn for a specific amount; Currently dated not postdated; Payable on demand; Endorsed by the presenting player; and Without an endorsement other than that of the presenting player. “Cash storage box” means a secure tamper resistant container in a bill validator into which currency, gaming tickets, promotional play instruments, or other instruments authorized by the Commission for activating credits on a video lottery terminal are deposited. “Cashable credit” means a credit on a video lottery terminal which activates play and is convertible to cash at the conclusion of play. Complimentary Services. “Complimentary services” means any lodging, service, or item which: Is offered by a facility operator directly or indirectly to a player at no cost or at a reduced cost; and Is not generally available to the public. “Complimentary services” does not include: Noncashable credits issued to a player as part of a player incentive or reward program; and Lodging available to the public through convention or government rates. “Customer deposit account” means a player-specific account established in a facility operator’s cashiers’ cage accountability into which a player may deposit cash or funds accepted by means of personal check, wire transfer, cash equivalent, or other negotiable instrument. “Gaming ticket” means an instrument that upon insertion into a video lottery terminal bill validator entitles the player inserting the gaming ticket to credits on a video lottery terminal corresponding to the amount printed on the gaming ticket. “Gaming ticket system” means the collective hardware, software, communications technology, and other ancillary equipment owned or leased by a facility operator to facilitate the issuance or redemption of a gaming ticket. “Noncashable credit” means a credit on a video lottery terminal which activates play but is not convertible to cash at the conclusion of play. “Promotional play” means an award by a facility operator of noncashable credits on a video lottery terminal: Directly or indirectly to a player; and With or without regard to the: Identity of the player; or Player’s level of gaming activity. “Promotional play system” means the collective hardware, software, communications technology and other ancillary equipment owned or leased by a facility operator to facilitate the award of promotional play at a video lottery terminal or table game by means of a: Promotional play instrument; or Download from the system to the video lottery terminal. “Replacement check” means a personal check accepted by a facility operator in a counter check substitution, consolidation, or redemption transaction under Regulation .28 of this chapter. “Signature”, for a facility employee or contractor, means: At a minimum, the first initial, last name, and Commission license number, written by the facility employee or contractor; or The unique identification code issued to the facility employee or contractor by the facility operator if the document to be signed is authorized by the Commission to be generated by a video lottery system and the method of signature is approved or required by the Commission. “Video lottery system” means the collective hardware, software, communications technology, and other ancillary equipment owned or leased by a facility operator to collect, monitor, interpret, analyze, authorize, issue, redeem, report, and audit data with regard to activity at video lottery terminals, including, but not limited to, a: Video lottery terminal data system; Casino management system; Gaming ticket system; Promotional play system; and Player tracking system. “Wire transfer” means a transfer of funds by means of the Federal Reserve Bank wire system in accordance with the requirements of 12 C.F.R. 210.25 et seq. A facility operator shall maintain complete, accurate, and legible records of all transactions pertaining to the revenues and expenses of a facility. General ledger records shall be maintained on a double entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles in the United States. Subsidiary ledgers and records supporting general ledger records shall be prepared in accordance with generally accepted accounting principles in the United States. Subsidiary ledgers and records shall include, at a minimum, documents that: Support the financial statements and all transactions impacting the financial statements including contracts or agreements with manufacturers, contractors, and management companies; Pertain to proceeds including generation of, accounting for, and transmission into the State Lottery Fund; Identify for each video lottery terminal and table game on a week-to-date, month-to-date, and year-to-date basis: Handle; Payout; Win amount; Win percentage; and Average payout percentage; Summarize the cost, by category of service, of complimentary services under Regulation .09 of this chapter; Identify all costs and expenses associated with the operation of a facility; Are prepared in compliance with the internal controls approved by the Commission under Regulation .05 of this chapter; and Relate to: Loans and other amounts payable by a facility operator; Player disputes including player complaint forms filed with the Commission under Regulation .47 of this chapter; Negotiable instruments accepted, deposited, returned as uncollected or ultimately written-off by a facility operator under this chapter; and Investments in property and equipment for the benefit of a facility. A form or document required by this chapter, including stored data, shall have: All information placed on the form or document recorded in ink or another permanent form; and The title of the form or document and the name of the facility imprinted or preprinted on it. If under this chapter multiple copies are required of a form or document, all copies shall have the name of the recipient receiving the copy preprinted on the bottom of the copy in order to differentiate between the copies. If under this chapter a form or document is required to be accounted for by series number or copies of a form or document are required to be compared for agreement, the accounting department shall report exceptions in writing to the responsible department and facility’s internal audit department not later than 2 days after identification of the exception. A facility operator may prepare more copies of a form or document than required by this chapter. A facility operator shall develop a written description of its administrative and accounting procedures, including the system of internal controls over video lottery terminal and table game operations. A facility operator’s internal controls are subject to review and approval under Regulation .05 of this chapter. Internal controls shall, at a minimum, include: Administrative controls and record keeping that document the authorization of transactions; Accounting controls that provide reasonable assurance that: Transactions or financial events which occur in connection with the operation of a video lottery terminal or table game are: Executed in accordance with the facility operator’s authorization protocols; Recorded to permit preparation of financial statements in conformance with generally accepted accounting principles in the United States and the requirements of this chapter; and Recorded to permit proper and timely reporting and calculation of proceeds and to maintain accountability for assets; Access to assets is permitted only in accordance with the facility operator’s authorization protocols; and The recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with regard to a discrepancy; Procedures and controls for ensuring: That a video lottery terminal accurately and timely communicates all required activities and financial details to the: Central monitor and control system; and Video lottery system; That all functions, duties, and responsibilities are segregated and performed in accordance with sound financial practices by qualified personnel; and Through the use of a surveillance and a security department, that the facility is secure at all times during normal operation and during any emergency due to malfunctioning equipment, loss of power, natural disaster, or any other cause; Access controls which address, at a minimum: Content of, and administrative responsibility over, the manual or computerized access control matrix governing employee access to restricted areas; Issuance of a temporary access credential; and Comprehensive key controls; A record retention policy in accordance with Regulation .08 of this chapter; Procedures and controls over the movement of cash and the count room; Procedures and standards for conducting internal audits; and Other procedures and controls the Commission may require to be included in a facility operator’s internal controls. A facility operator shall make available a current version of its Commission-approved internal controls, in hard copy or through secure computer access, to: All mandatory departments required under Regulation .10E(6) of this chapter; and The Commission’s on-site office. A facility operator shall maintain, in hard copy or electronic form, all superseded internal controls together with the written representations required under Regulation .05 of this chapter, for at least 5 years subsequent to the date the internal controls were superseded. At least 60 days before video lottery terminal or table game operations are to commence, a facility operator shall submit its internal controls to the Commission for review and written approval. The internal controls shall be accompanied by: A certification by the facility operator’s chief executive officer or chief legal officer that the submitted internal controls conform to the requirements of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this chapter; A certification by the facility operator’s director of finance that the submitted internal controls: Establish a consistent overall system of internal controls; Provide reasonable assurance that financial reporting conforms to generally accepted accounting principles in the United States; and Conform to the requirements of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this chapter; and An opinion letter by an independent certified public accountant expressing an opinion as to: The effectiveness of the design of the submitted system of internal controls over financial reporting; Whether the submitted system of internal controls conforms to the requirements of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this chapter; and If applicable, whether a deviation from the requirements of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or this chapter identified by the independent certified public accountant in the course of its review of the submitted system of internal controls is material. A facility operator may not commence operations until its internal controls are approved in writing by the Commission. If the Commission determines that a submitted internal control is deficient the: Commission shall provide the facility operator with written notice of the deficiency; and Facility operator shall revise the internal control as appropriate and resubmit to the Commission for review. A facility operator may not implement a change or amendment in its approved internal controls without the prior written approval of the Commission. A facility operator’s initial internal controls submission and a change or amendment to its approved internal controls shall be reviewed and approved in accordance with a process and time frame developed and implemented by the Commission. The process developed by the Commission under §F of this regulation shall, at a minimum, require the facility operator to: Submit a redlined copy of any section of the approved internal controls to be changed or amended with added text underlined and deleted text lined out; Document on the redlined copy the date the Commission approved the section to be changed or amended and the date the revision was submitted to the Commission for review; Submit a narrative explaining the reason for the change or amendment which includes the facility operator’s target date for implementation; Submit the written representations required in §B(1) and (2) of this regulation with regard to the proposed change or amendment; Maintain a log of all changes or amendments in approved internal controls which includes the initial approval date and the effective date of any change or amendment approved by the Commission; and Mark each page of approved internal controls with the date on which it was approved by the Commission. The Commission may require a facility operator to submit daily, weekly, monthly, quarterly, and annual reports of financial and statistical data. Reports required under this regulation shall be in a form and submitted in accordance with a time frame specified by the Commission. Unless otherwise specified by the Commission, reports to the Commission shall be signed by the: Chief executive officer if the facility operator is a corporation; General partner if the facility operator is a partnership; Manager if the facility operator is a limited liability company; Chief executive officer or functional equivalent if the facility operator is any other form of business association; or Owner if the facility operator is a sole proprietorship. A facility operator shall submit a report to the Commission on the due date specified by the Commission unless an extension has been approved in writing by the Commission. The Commission may, on written notice to a facility operator, require an interim report to be submitted in a form and in accordance with a time frame specified by the Commission. A facility operator shall cause its annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant. The annual financial statements shall be: Prepared on a comparative basis for the current and prior fiscal year and present financial position and results of operations in conformity with generally accepted accounting principles in the United States; and If the revenue and assets of the Maryland facility operator operations are less than 75 percent of the combined total of the operator’s parent, Maryland specific audited annual financial statements of the facility operator revenue and assets. The audited financial statements shall include a footnote reconciling and explaining any difference between the financial statements included in any report submitted to the Commission under Regulation .06 of this chapter and the audited financial statements. A facility operator shall with regard to adjustments resulting from the annual audit: Disclose to the Commission all adjustments whether or not recorded in the accounting records; and Record the adjustment in the accounting records of the year to which the adjustment relates. No later than 90 days after the end of its fiscal year, a facility operator shall submit to the Commission: A copy of its audited financial statements; and Any management letter or report prepared with regard to the financial statements by its independent certified public accountant. A facility operator shall require the independent certified public accountant auditing its financial statements or other qualified entity approved by the Commission to render the following additional reports: A report identifying: Material weaknesses or significant deficiencies in the facility operator’s Commission-approved internal controls noted in the course of the examination of the financial statements; and Recommendations as to how to eliminate each material weakness or significant deficiency identified; and A report assessing the adequacy and effectiveness of the facility operator’s information technology security controls and system configurations with recommendations as to how to eliminate each material weakness or significant deficiency identified. A facility operator shall prepare a written response to the reports required by §F of this regulation which includes details as to any corrective action taken. No later than 120 days after the end of its fiscal year, a facility operator shall submit to the Commission a copy of: The reports required under §F of this regulation; The response required under §G of this regulation; and Any other report on internal controls or other matters relative to its accounting or operating procedures rendered by its independent certified public accountant. If a facility operator or any of its affiliates are publicly held, the facility operator shall submit to the Commission a copy of: Any report required to be filed with the Securities and Exchange Commission including: Form S-1; Form 8-K; Form 10-Q; Form 10-K; Proxy statement; Information statement; and Registration statement; and Any other report required to be filed with a domestic or foreign securities regulatory agency. A report required to be filed under §I of this regulation shall be submitted to the Commission no later than 10 days after the date of filing with the applicable agency. A facility operator shall submit a written report to the Commission if an independent certified public accountant who is engaged as the principal accountant to audit its financial statements: Resigns; Is dismissed as the facility operator’s principal accountant; or Is replaced by another independent certified public accountant as principal accountant. A report required to be filed under §K of this regulation shall include: The date of the resignation, dismissal, or new engagement; Whether in connection with the audits of the 2 most recent years preceding a resignation, dismissal, or new engagement there were any disagreements, resolved or unresolved, with the former accountant on: Accounting principles or practices; Financial statement disclosure; or Auditing scope or procedure; The nature of any disagreement disclosed in §L(2) of this regulation; Whether the principal accountant’s report on the financial statements for either of the past 2 years contained an adverse opinion or disclaimer of opinion or was qualified; The nature of any adverse opinion, disclaimer of opinion, or qualification; and A letter from the former principal accountant addressed to the Commission stating whether the principal accountant concurs with the statements made by the facility operator in the report to the Commission submitted under this section. A report required to be filed under §K of this regulation shall be submitted to the Commission no later than 10 days after the end of the month in which the resignation, dismissal, or new engagement occurred. No later than 7 days after the date of filing with the Financial Crimes Enforcement Network, a facility operator shall provide the Commission with access to each Suspicious Activity Report-Casino filed under 31 CFR §103.21. A facility operator or a director, officer, employee, or agent of a facility operator who reports suspicious activity under 31 CFR §103.21 may not notify an individual involved in the suspicious activity that the suspicious activity has been reported. No later than 7 days after the date of filing with the Financial Crimes Enforcement Network, a facility operator shall provide the Commission with access to each Currency Transaction Report by Casino filed under 31 CFR §103.22. At least 30 days before video lottery terminal operations are to commence, a facility operator shall submit to the Commission a copy of its compliance program required under 31 CFR §103.64. On or before the effective date, a facility operator shall submit to the Commission any change or amendment to its compliance program required under 31 CFR §103.64. Definition. In this regulation, the following term has the meaning indicated. Term Defined. “Books and records” means any document pertaining to, prepared in, or generated by a facility operator, without regard to the medium through which the record is generated or maintained, including all general ledger records, subsidiary records and ledgers, computer-generated data, forms, documents, internal audit reports and work papers, correspondence, and personnel records. All original books and records shall be: Prepared and maintained in a complete, accurate, and legible form; Stored in a format that ensures readability, regardless of whether the technology or software that created or maintains it has become obsolete; Retained in a secure location equipped with a fire notification system: At the facility; or An off-site location approved by the Commission under §G of this regulation for the express purpose of document storage; Kept immediately available for inspection by the Commission during all hours of operation; Organized and indexed in a manner designed to provide immediate accessibility to the Commission; and Destroyed only after expiration of the minimum retention period required under this regulation. The Commission may, on submission of a written request or alternate record retention schedule by a facility operator, authorize destruction prior to the expiration of the minimum retention period required under this regulation. Unless a request for destruction or alternate record retention schedule is submitted in writing and approved in writing by the Commission, a facility operator shall retain indefinitely original books and records documenting: Ownership of the facility; Internally initiated investigations and due diligence; Personnel matters; Signature cards of current employees; and Destruction of documents including: The identity of the document; Period of retention; and Date of destruction. Unless a request for destruction or alternate record retention schedule is submitted in writing and approved in writing by the Commission, a facility operator shall retain for a minimum of 5 years all original books and records not: Identified for indefinite retention under §D of this regulation; or Subject to an exemption under §F of this regulation. Exceptions. The following exceptions apply to the retention period in §D of this regulation: A minimum retention period of 4 years shall apply to documentation pertaining to cashiers’ cage transactions; A minimum retention period of 3 years shall apply to: Signature cards of terminated employees; Insurance records relating to claims by players; Surveillance and security department: Employee duty logs; Visitor logs; Incident logs; Recording logs; and Equipment malfunction reports; and Documentation pertaining to gaming tickets or promotional play instruments reported to the Commission as possibly counterfeit, altered, or tampered with; A minimum retention period of 30 days shall apply to: Cancelled promotional play instruments for which all reconciliations required by the facility operator’s approved internal controls have been conducted and resolved; Voided gaming tickets; and Gaming tickets redeemed at a location other than a video lottery terminal or ticket redemption unit; and A minimum retention period of 7 days shall apply to gaming tickets redeemed at a video lottery terminal or ticket redemption unit. On submission of a written request by the facility operator, the Commission may approve a location outside the facility to store original books and records. A facility operator requesting to store original books and records outside the facility shall submit to the Commission: A description of the proposed location, including details with regard to security and fire notification systems; Details with regard to the ownership of the proposed storage facility; and Procedures for Commission access to original books and records retained at the proposed location. A facility operator may not store books and records outside the facility without the prior written approval of the Commission. On submission of a written request by a facility operator, the Commission may approve a microfilm, microfiche, or other suitable media system for the copying and storage of original books and records. A facility operator submitting a system for the copying and storage of original books and records shall demonstrate to the satisfaction of the Commission that the: Processing, preservation, and maintenance methods to be utilized will make books and records readily available for review and reproduction; Inspection and quality control methods to be utilized will ensure that when books and records are viewed or reproduced they will exhibit a high degree of legibility and readability; Equipment necessary to readily locate, read, and reproduce books and records is available to the Commission at the facility or approved off-site storage location; and Detailed index of all microfilmed, microfiched, or other stored data maintained and arranged to facilitate the immediate location of particular books and records is available to the Commission at the facility or approved off-site storage location. A facility operator may not utilize a microfilm, microfiche, or other suitable media system for the copying and storage of original books and records without the prior written approval of the Commission. A facility operator may utilize the services of a contractor for the destruction of books and records permitted to be destroyed under this regulation. Nothing in this regulation shall be construed as relieving a facility operator of any obligation to prepare or maintain books and records required by any other federal, State, or local governmental entity. Definition. A facility operator shall be under the authority of the County Alcoholic Beverages Licensing Authority for the county in which the facility is located with regard to the sale to individuals of food and alcoholic beverages; Except as provided in this section, a facility operator may not provide food or alcoholic beverages to individuals at no cost; Food or alcoholic beverages offered by a facility operator for sale to individuals may be offered only at prices that are determined by the County Alcoholic Beverages Licensing Authority to be commensurate with the price of similar types of food and alcoholic beverages at restaurants in the county in which the facility is located; and A facility operator may provide food at no cost to individuals to the same extent allowed under Article 2B, §12-106, Annotated Code of Maryland, for a person engaged in the sale or barter of spirituous, malt, or intoxicating liquors and licensed in Maryland. A facility operator shall develop, maintain in writing, and implement adequate internal controls over the authorization and provision of complimentary services. A facility operator shall at all times make available to the Commission the internal controls required under §C of this regulation but is not required to include them in the system of internal controls submitted to the Commission for approval under Regulation .05 of this chapter. A facility operator shall collect and retain data pertaining to the cost of, and number of individuals provided with, each category of complimentary services. Report. A facility operator shall submit to the Commission a quarterly report summarizing complimentary services provided during the reporting period. The report shall include year-to-date totals of complimentary services provided. The report must be submitted: On or before the 15th day of the month following the end of each quarter; or At the request of the Commission. The report required under §F of this regulation shall: Separate complimentary services into the following categories: Rooms; Food and Beverage; Travel; Gifts: Cash; and Noncash; and Other; and Determine the cost of complimentary services provided to a player as follows: Complimentary services offered by a facility operator in the normal course of business shall be reported at an amount based upon the full retail price normally charged for the service by the facility operator; Complimentary services not offered for sale by the facility operator in the normal course of business but provided directly by the facility operator to the player shall be reported at an amount based upon the actual cost to the facility operator of providing the service; Complimentary services provided directly or indirectly on behalf of a facility operator by a third party not related to the facility operator shall be reported at an amount based upon the actual cost to the facility operator of having the third party provide the service; and Complimentary services provided directly or indirectly on behalf of a facility operator by a third party related to the facility operator shall be reported at an amount based upon the actual cost to the third party of providing the service. A facility operator shall submit to the Commission a report identifying a player who, together with guests, received $5,000 or more in complimentary services within a period of 5 consecutive days. The report required by §G of this regulation shall: State the reason complimentary services were provided; Include the player’s rating in the facility operator’s player rating system at the time the complimentary services were provided; Disclose the total amount, including year-to-date totals, provided in complimentary services separated into the following categories: Rooms; Food and Beverage; Travel; Gifts: Cash; and Noncash; and Other; and Be submitted: At least quarterly, by the 15th day of the month following the end of each quarter; or At the request of the Commission. For the purposes of this regulation, the title used to describe a department head is intended to indicate responsibility for the functions of the enumerated department and does not obligate the facility operator to the use of that particular title. Subject to the requirements of this regulation, a facility operator shall tailor its table of organization to meet its needs and policies. At least 30 days before video lottery terminal or table game operations are to commence, a facility operator shall submit to the Commission for review and written approval a table of organization depicting all direct and indirect reporting lines for: The chief executive officer required under §E(5) of this regulation; Mandatory departments required under §E(6) of this regulation; The cashiers’ cage manager required under §M of this regulation; Employees authorized to verify credit applications under Regulation .25 of this chapter; and Employees authorized to extend credit or to approve credit limit increases under Regulation .24 of this chapter. A facility operator may not commence operations until the table of organization submitted under §C of this regulation is approved in writing by the Commission. A facility operator’s table of organization shall include: A system of personnel and chain of command which permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility; The segregation of incompatible functions, duties, and responsibilities so that no individual is in a position to both: Commit an error or to perpetrate a fraud; and Conceal the error or fraud in the normal course of the individual’s duties; All functions, duties, and responsibilities of qualified personnel; Areas of responsibility which are not so extensive as to be impractical for one individual to monitor; A chief executive officer: Based for employment purposes at the facility; Licensed as a principal employee; and Ultimately responsible for the daily conduct of all operations at the facility; and The following mandatory departments and supervisors: A surveillance department supervised by a director of surveillance: Based for employment purposes at the facility; Subject to the reporting requirements of §G of this regulation; Licensed as a principal employee; and Responsible for the surveillance of all aspects of video lottery terminal and table game operations; An internal audit department supervised by a director of internal audit: Based for employment purposes at the facility; Subject to the reporting requirements of §G of this regulation; Licensed as a principal employee; and Responsible for assessing compliance with approved internal controls, applicable laws and regulations, the reliability of financial reporting, deterring and investigating fraud, and the safeguarding of assets; An information technology department supervised by a director of information technology: Based for employment purposes at the facility; Licensed as a principal employee; and Responsible for the quality, reliability, accuracy, and security of all video lottery systems and associated equipment and software utilized by the facility operator regardless of whether the data, software, or systems are located in or outside the facility; A security department supervised by a director of security: Based for employment purposes at the facility; Licensed as a principal employee; and Responsible for the overall security of the facility; An accounting department supervised by a director of finance: Based for employment purposes at the facility; Licensed as a principal employee; and Responsible for all accounting and finance functions including the control and supervision of the cashiers' cage, satellite cages, and count room; and A gaming operations department supervised by a director of gaming operations: Based for employment purposes at the facility; Licensed as a principal employee; and Responsible for the operation and conduct of gaming at video lottery terminals and table games. Nothing in this regulation shall preclude a facility operator from establishing a video lottery terminals and table games department supervised by a director of video lottery terminal operations and a director of table games operation. The director of surveillance and the director of internal audit required under §E(6) of this regulation shall be independent of the chief executive officer regarding matters of policy, purpose, responsibility, and authority and shall report directly to an: Individual based for employment purposes at the facility with no incompatible functions; or Audit committee of: The facility operator; or A Commission-authorized licensed affiliate of the facility operator. The individual or audit committee to whom the director of surveillance and the director of internal audit report under §G of this regulation shall also control the hiring, termination, and salary of the director. The director of surveillance and the director of internal audit may report to the chief executive officer with regard to daily operations. Mandatory departments and the supervisors over them shall cooperate with, yet perform independently of, all other mandatory departments and supervisory positions. A facility operator may designate more than one individual to serve jointly as the director of a mandatory department required by §E of this regulation. A joint director of a mandatory department under §K of this regulation shall be: Based for employment purposes at the facility; and Individually and jointly accountable and responsible for the operation of the department. A department that is not mandatory may operate under, or in conjunction with, a mandatory department where the table of organization is consistent with the requirements of §E of this regulation. A facility operator’s cashiers’ cage manager shall be licensed as a principal employee. Unless another principal employee required by this regulation is present at the facility, on any shift for which the cashiers’ cage manager is not present in the facility, the cashiers’ cage shift manager responsible for the cashiers’ cage shall be licensed as a principal employee. A facility operator may not implement a change in the table of organization approved by the Commission under §D of this regulation without the prior written approval of the Commission. A facility operator shall ensure that an individual employed at the facility is trained in the policies, procedures, and internal controls relevant to the individual’s function. Vacancy. If there is a vacancy in the chief executive officer position or any mandatory department director position required by §E of this regulation, the following shall apply: No later than 5 days after the date of a vacancy, a facility operator shall notify the Commission in writing of: The vacant position; The date on which the position will become or became vacant; and The date on which the facility operator anticipates that the vacancy will be filled on a permanent basis; No later than 30 days after the date of a vacancy, a facility operator shall fill the vacant position on a temporary basis; No later than 120 days after the original date of the vacancy, a facility operator shall fill the vacant position on a permanent basis; and No later than 5 days after filling a vacancy, a facility operator shall notify the Commission in writing of: The vacant position filled; The name of the individual designated to fill the position; The date that the vacancy was filled; and Whether the vacancy has been filled on a temporary or permanent basis. A facility operator shall install in its facility a surveillance system that complies with the requirements of this regulation. A facility operator’s surveillance system shall be reviewed and approved by the Commission under Regulation .12 of this chapter. A facility operator’s surveillance system shall include: Light sensitive cameras enabled by: Lenses of sufficient magnification to read a video lottery terminal reel strip and credit meter; Lighting which is continuous and of sufficient quality to produce clear video recordings and still pictures; and 360-degree pan, tilt, and zoom capability, without camera stops, configured to clandestinely monitor and record: Play and transactions conducted at video lottery terminals; Transactions conducted in the cashiers' cage and any satellite cage including the face of each individual transacting business with a cashier; Transactions conducted at ticket redemption units, automated jackpot payout machines, and automated teller machines; Activity in the count room; Movement of cash and cash storage boxes within the facility; Entrances and exits to the facility and the gaming floor; Activities in all other restricted areas; and Other areas and events designated by the Commission; A monitor room located in the facility: Staffed by employees of the facility operator’s surveillance department 24 hours per day; and Equipped with: A communication system capable of monitoring all security department communications; Connections, direct or through a documented communication protocol with the security department, to all facility alarm systems; A surveillance failure notification system that provides an audible, as well as a visual notification, of any failure in the surveillance system or the digital video recording media storage system; An emergency power system, tested by the facility operator in the presence of the Commission at least once a year, which can be used to operate the surveillance system in the event of a power failure; Computer terminals permitting event notification to, and read only access by authorized surveillance department employees to, the facility operator’s video lottery system; An updated photo library, consisting of photographs that are no more than 5 years old, of all current employees of the facility; A copy of the facility operator’s gaming floor plan required under COMAR 36.03.11.05; A copy of the procedures addressing the evacuation of the facility in the event of fire or other emergency required under Regulation .14 of this chapter; and Copies of the surveillance system contingency plans required under Regulation .12 of this chapter; Digital video recording capability equipped to: Superimpose the date and time on all monitoring and recording; Identify and locate, through the use of a meter, counter, or other device or method, a particular event which was recorded; Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images; and Be authenticated through use of an embedded video verification encryption code or watermark; Audio recording capability in the count room that is: Installed and disclosed to employees of the facility; and Consistent with Courts and Judicial Proceedings Article, §§10-401—10-414, Annotated Code of Maryland; and An access system which: Controls: Physical and logical access to the surveillance system; and Physical access to the surveillance monitor room; and Restricts access to the security administration capabilities of the system. A facility operator shall configure its surveillance system to record all areas and transactions enumerated in §C(1)(c) of this regulation with a resolution of 4 common image format at a minimum of: For a standard definition camera, 30 frames per second; or For a high definition camera, 15 frames per second. A facility operator may configure its surveillance system to record activity in areas of the facility not covered by §D of this regulation at a reduced frame rate with a resolution of 4 common image format, as follows: Public areas shall be recorded at a minimum frame rate of 15 frames per second; and Areas not accessible to the public shall be recorded at a minimum frame rate of 7.5 frames per second. Except as provided in §G of this regulation, a facility operator shall retain surveillance recordings: For a minimum of 7 days for transactions or events in the areas covered under §E of this regulation; and For a minimum of 14 days for transactions or event in the areas covered under §D of this regulation. Upon the request of the Commission or a law enforcement agency that has proper jurisdiction over the facility, a recording shall be retained and stored in accordance with the directives of the Commission or law enforcement agency pertaining to that recording. Except as provided in this regulation, the surveillance system shall be under the exclusive control of the facility operator’s surveillance department. A facility operator shall provide the Commission with timely and unfettered access to its surveillance monitor room, surveillance system, and all transmissions. A facility operator shall timely comply with a request from the Commission to: Use, as necessary, any monitor room in the facility; Display on the monitors in its monitor room or in the Commission’s on-site monitor room any event capable of being captured by the surveillance system; Relinquish control of a camera or monitor; Discontinue monitoring a particular camera or recording activity captured by it; Make a video recording or photograph of any event capable of being captured by the surveillance system; and provide the recording: In a compact disc; Using a secure drive; or Another method approved by the Commission; and Restrict or deny access to a recording or photograph. A surveillance system may not be remotely accessed from a location outside the surveillance monitor room without the prior written approval of the Commission. An entrance to a surveillance monitor room may not be visible from the gaming floor. At least 60 days before video lottery terminal or table game operations are to commence, a facility operator shall submit to the Commission for review and written approval: A surveillance system meeting the requirements of Regulation .11 of this chapter including, at a minimum, details pertaining to: Camera configuration inside and outside the facility; Monitor room configuration; Video recording format and configuration specifications; Authentication of digital recordings, including Commission access to the system’s video verification encryption code or watermark; Audio recording format; and System access controls; and Surveillance department operating procedures conforming to this regulation. A facility operator may not commence operations until its surveillance system and surveillance department operating procedures are approved in writing by the Commission. A facility operator’s surveillance department operating procedures shall, at a minimum, require: Coverage of all areas and transactions enumerated in Regulation .11 of this chapter; Contingency plans addressing: Full and partial failure of the surveillance system including: A contact list with telephone numbers for individuals required to be notified in the event of a failure; and Facility closure protocols; or An electronic format equipped with software that documents changes made by each user; and Planned shutdown of the surveillance system; A surveillance incident log: Maintained by monitor room employees in: A book with bound numbered pages that cannot be readily removed; An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; or An electronic format equipped with software that documents changes made by each user; and Documenting the scheduled coverage in §C(1) of this regulation and all other nonroutine surveillance activity as follows: Date and time surveillance is commenced; Name and Commission license number of the individual initiating, performing, or supervising the surveillance; Reason for the surveillance; Whether the suspicious activity involves an alleged regulatory violation or criminal activity; Name, if known, alias, or description of an individual being monitored; Description of the activity in which the individual being monitored is engaged; Reading on a meter, counter, or device that identifies the point on the video recording at which the event was recorded; Time at which a video recording is commenced and terminated, if different than when surveillance is commenced or terminated; Date and time surveillance is terminated; Summary of the results of the surveillance; and Description of the time, date, and cause of any equipment or camera malfunction which occurred during the conduct of surveillance; A surveillance room entry log: To be signed by an individual entering the surveillance monitor room who is not a surveillance department employee assigned to the monitor room’s work shift at the time of entry; Maintained by monitor room employees in: A book with bound numbered pages that cannot be readily removed; or An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and Documenting the following: Date and time of entering the monitor room; The entering individual's name and department or affiliation; The reason for entering the monitor room; The name of the individual authorizing the individual's entry into the monitor room; and The date and time of exiting the monitor room; That surveillance monitor room employees notify: Security department supervisory personnel within 5 minutes of an incident of equipment failure affecting coverage of the facility; and The Commission within 30 minutes of an incident of equipment failure affecting coverage of the facility citing: Date and time; Cause of the malfunction; and Time the facility operator’s security department was notified of the malfunction; That the facility operator confirm in writing a notice given verbally to the Commission under §C(5) of this regulation; and That, on a daily basis, the facility operator synchronize the date and time on the surveillance system to the date and time on the central monitor and control system and its video lottery system. A facility operator may not implement a change or amendment in its surveillance system or surveillance department operating procedures approved by the Commission under §B of this regulation without the prior written approval of the Commission. Surveillance department employees shall be reasonably segregated and independent of all other departments at the facility. A surveillance department employee may not transfer to any other department in the facility without the prior written approval of the Commission. At least 60 days before video lottery terminal or table game operations are to commence, a facility operator shall submit its surveillance department minimum staffing plan to the Commission for review and written approval. A facility operator may not commence operations until its surveillance department minimum staffing plan is approved in writing by the Commission. A surveillance department minimum staffing plan shall assess, on a per-shift basis, the minimum number of on duty surveillance department employees necessary to: Provide adequate and effective surveillance of all activities in and outside the facility; Ensure the physical safety of employees of and invitees to the facility; Comply with all applicable laws and regulations including Commission-approved internal controls and operating procedures; Monitor the facility to ensure that the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility: An intoxicated individual; An individual who is mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; and An individual who is voluntarily excluded in accordance State Government Article, §9-1A-24(e), Annotated Code of Maryland; and Monitor the gaming floor to ensure that an individual under the age of 21 years is identified, prohibited from accessing the gaming floor in accordance with State Government Article, §9-1A-24(c), Annotated Code of Maryland, and, if necessary, immediately removed from the gaming floor. A facility operator’s proposed surveillance department minimum staffing plan shall consider: Square footage and layout of the facility; Number and configuration of video lottery terminals and table games; Use of fixed and roving security posts; Activity level on a per-shift basis and identify it as slow, normal, or peak; Department supervisory needs; and A limit of one employee per monitor station. A facility operator may not implement a change or amendment in the surveillance department minimum staffing plan approved by the Commission under §B of this regulation without the prior written approval of the Commission. At least 60 days before video lottery or table game operations are to commence, a facility operator shall submit to the Commission for review and written approval its security department operating procedures. A facility operator may not commence operations until its security department operating procedures are approved in writing by the Commission. A facility operator’s security department operating procedures shall, at a minimum, include: A security zone plan for the facility, employing fixed security posts and roving security officers designed to ensure: The physical safety of employees of and invitees to the facility; The safeguarding of assets; Compliance with all applicable laws and regulations including Commission approved internal controls and operating procedures; That the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility: An intoxicated individual; An individual who is mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; and An individual who is voluntarily excluded in accordance State Government Article, §9-1A-24(e), Annotated Code of Maryland; and That an individual under the age of 21 years is identified, prohibited from accessing the gaming floor in accordance with State Government Article, §9-1A-24(c), Annotated Code of Maryland, and, if necessary, immediately removed from the gaming floor; Procedures and controls addressing: Facility access controls including: An access badge system; If utilized, specifications pertaining to a computerized access control system; and Administrative responsibility over a manual or computerized access control system; A temporary access credential; Key controls; Emergency alarm and fire command responsibilities including communication protocols with the surveillance department; Evacuation of the facility in the event of fire or other emergency; The identification and immediate removal of an intoxicated individual, an individual under the age of 21 years, an individual who is mandatorily excluded, and an individual who is voluntarily excluded; Player disputes under Regulation .47 of this chapter; and The notice requirements of §C(4) of this regulation; A security department incident log: Maintained by security department employees in: A book with bound numbered pages that cannot be readily removed; or An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and Documenting the following: Assignment number of the incident; Date and time; Name and Commission license of the department member covering the incident; Nature of the incident; and Resolution of the incident; and A requirement that a facility operator notice the Commission on detection of: An individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities; An individual possessing a firearm, electronic control device, dangerous weapon, or other device or object prohibited under Regulation .48 of this chapter; or An individual who is: Under the age of 21 years; Intoxicated; Mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; or Voluntarily excluded in accordance with State Government Article, §9-1A-24(e), Annotated Code of Maryland. At least 60 days before video lottery terminal or table game operations are to commence, a facility operator shall submit its security department minimum staffing plan to the Commission for review and written approval. A facility operator may not commence operations until its security department minimum staffing plan is approved in writing by the Commission. A security department minimum staffing plan shall assess, on a per-shift basis, the minimum number of on-duty security department employees necessary to: Ensure the physical safety of employees of and invitees to the facility; Effectively safe guard assets; Comply with all applicable laws and regulations including Commission-approved internal controls and operating procedures; Monitor the facility to ensure that the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility: An intoxicated individual; An individual who is mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; and An individual who is voluntarily excluded in accordance State Government Article, §9-1A-24(e), Annotated Code of Maryland; and Monitor the gaming floor to ensure that an individual under the age of 21 years is identified, prohibited from accessing the gaming floor in accordance with State Government Article, §9-1A-24(c), Annotated Code of Maryland and, if necessary, immediately removed from the gaming floor. A facility operator’s proposed security department minimum staffing plan shall consider: Square footage and layout of the facility; Number and configuration of video lottery terminals and table games; Use of fixed and roving security posts; Activity level on a per-shift basis and identify it as slow, normal, or peak; and Department supervisory needs. A facility operator may not implement a change or amendment in the security department minimum staffing plan approved by the Commission under §B of this regulation without the prior written approval of the Commission. At least 60 days before video lottery terminal operations are set to commence, a facility operator shall submit to the Commission for review and approval internal audit department operating standards and procedures that: Meet the requirements of Regulation .10E(6)(b) of this chapter; Conform to this regulation; and Ensure that an internal audit is conducted in accordance with generally accepted auditing standards in the United States. A facility operator's internal audit department operating procedures and standards shall, at a minimum, require the internal audit department to: Work independently of the departments of the facility that are subject to audit; Assess whether the facility's internal controls comply with applicable law and Commission directives; Test the facility's compliance with its internal controls; Immediately report a deficiency in, or noncompliance with, the facility's internal controls to: The audit committee; The chief executive officer; Management; and The Commission; Recommend resolution for eliminating a deficiency in, or noncompliance with, the facilitys internal control system; Meet periodically with the audit committee or director of internal audit; Perform audits of: Unless an alternate risk assessment and audit plan is submitted in writing and approved in writing by the Commission, all departments of the facility that are designated under §§C and D of this regulation; and A department of the facility designated by the Commission; Prepare an audit report for each audit conducted; Accurately document the audit process and results in an audit report that, at a minimum, shall include: Audit objectives; Audit procedures and scope; Findings and conclusions; A recommendation for addressing a deficiency in, or noncompliance with, the facility's internal controls; Resolution of all exceptions; and Management's response; Submit audit reports to the Commission on a schedule specified by the Commission; and Verify that: A deficiency or noncompliance revealed during an audit has been corrected; and An exception disclosed during an audit has been resolved. The audit department shall audit at least semiannually the functions and operations of the facility's: Cashiers' cage; Main bank; Collection of cash storage boxes; Cash count; Revenue audit; Operations department; Key control; and Table game operations. The audit department shall audit at least annually: Responsible gaming program; Security department; Currency transaction reporting; Suspicious activity reporting; Information technology controls; Surveillance department; and Player tracking system. The internal audit department shall conduct an audit on an unannounced basis when possible. Central monitor and control system equipment shall reside in an area physically segregated from other systems and equipment utilized by the facility operator which conforms to the requirements of COMAR 36.03.11.03. At least 10 days before video lottery terminal operations are to commence, the Commission shall issue to the facility operator a list of individuals that it has approved to have access to the central monitor and control system equipment under State Government Article, §9-1A-02(c)(5), Annotated Code of Maryland. A facility operator may not implement a change or amendment in its approved access list without the prior written approval of the Commission. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing physical access to central monitor and control system equipment located in the facility. Central monitor and control system equipment may be accessed by: An individual on the list described under §B of this regulation; A compliance agent of the Commission; and Commission staff authorized by the Director. The facility operator’s internal controls shall require: All keys which access the segregated area where the central monitor and control system equipment resides to be maintained by representatives of the: Commission; and Central monitor and control system operator; and An individual requiring access to the segregated area where the central monitor and control system equipment resides who is not included on the Commission-approved access list maintained under §B of this regulation to be: Authorized by the Commission; and At all times, escorted by a Commission compliance agent, or Commission staff authorized by the Director; and Reported in the entry log maintained in accordance with §G of this regulation. The Commission shall maintain an entry log for the segregated area where the central monitor and control system equipment resides which is: Kept inside the segregated area in a book with bound numbered pages that cannot be readily removed; and Utilized by an individual entering the segregated area to record: Date and time of entering; Entering individual’s name and department or affiliation; Reason for entering; Name of the individual authorizing the individual’s entry into the segregated area; and Date and time of exiting. A facility operator shall have on, adjacent, or proximate to the gaming floor a physical structure known as a cashiers' cage to house the cashiers and to serve as the central location in the facility for: The custody of the cash, accounting records, and forms and documents required under this chapter to conduct video lottery and table game operations; The initial financial consolidation of all transactions pertaining to video lottery terminal and table game activity; and Other functions normally associated with the operation of a cashiers' cage. A cashiers’ cage shall include the following design features: A manually triggered silent alarm system connected: Directly to the security department; or Directly, or through a documented communication protocol, to the monitor room of the surveillance department; A double door entry and exit system that will not permit an individual to pass through the second door until the first door is securely locked, as follows: The first door leading from the gaming floor shall be controlled by the security department, the surveillance department, or a Commission-approved computerized access control system. The second door leading into the cashiers’ cage shall be controlled by the cashiers' cage or a Commission-approved computerized access control system. The double door entry and exit system shall be equipped with surveillance capability sufficient to allow monitoring of: All ingress and egress; and The interior compartment; and Both doors of the double door entry and exit system shall be equipped with: Separate locks with a key or release mechanism which is different on each door; and Locks which are operational in the event of a power failure; and Any entrance to the cashiers’ cage that is not a double door entry and exit system shall be equipped as an alarmed emergency exit door. A facility may have one or more satellite cages physically separate from the cashiers' cage which: May perform all of the functions of a cashiers' cage authorized by this chapter; and Shall be equipped with an alarm system in compliance with §B(1) of this regulation. A facility operator shall make readily available to the Commission: An access control matrix indicating which employee job descriptions are authorized to have access to the cashiers’ cage and any satellite cage; and A list of employees, with license number, who are authorized: To have access to the: Cashiers’ cage and any satellite cage; Keys to the manual locks securing the double door entry and exit system; and Release button on magnetic locks securing the double door entry and exit system; To activate or deactivate alarm systems for the cashiers' cage and any satellite cage; and To grant access to the cashiers’ cage and any satellite cage through the access control matrix or a computerized access control system. A facility operator may only conduct transactions with individuals at its cashiers’ cage and any satellite cage during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02. A facility operator shall at all times maintain in its cashiers’ cage a reserve cash bankroll sufficient to pay all winning wagers. A facility operator shall: Compute its reserve cash bankroll requirement based on a calendar year; and Submit its computation to the Commission: At least 30 days prior to the commencement of video lottery or table game operations; and On or before January 30 of each year subsequent to the year in which operations are commenced. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the segregation of the cashiers’ cage and the general conduct of cashiers’ cage transactions. A facility operator’s internal controls shall require: The cashiers' cage and any satellite cage to be physically segregated by personnel and function as follows: General cashiers shall be responsible for: An individual imprest inventory of cash; Receipt and payout of cash, negotiable instruments, gaming tickets, and other documentation from and to players subject to the limitations imposed under this chapter; Preparation of jackpot documents; and Other functions designated by the facility operator which are not incompatible with the functions of a general cashier; and Main bank cashiers shall be responsible for: Receipt of cash, negotiable instruments, gaming tickets, jackpot, and other documentation from general cashiers in exchange for cash or documentation; Replenishment of ticket redemption units and automated jackpot payout machines; Receipt of unsecured cash and unsecured gaming tickets; Receipt of cash and documentation from the count room; Preparation of the overall cashiers’ cage reconciliation; Preparation of bank deposits; Compliance with reserve cash bankroll requirements; Receipt of original and redemption copies of counter checks; Receipt from general cashiers of documentation supporting counter check substitution, consolidation, or redemption; and Other functions designated by the facility operator which are not incompatible with the functions of a main bank cashier; Each general cashier and main bank cashier to prepare a cashiers’ count sheet on each shift: Recording the amount of the inventory in the window or bank; Reconciling the total closing inventory with the total opening inventory; and Including the signature of the: Outgoing general or main bank cashier; and Incoming general or main bank cashier; At the end of the gaming day, the cashiers’ cage to forward a copy of each cashiers’ count sheet and related documentation to the accounting department for: Agreement of opening and closing inventories; and Comparison of forms or documents; and No more than 48 hours after the discovery of an employee’s unresolved cage or count room overage or shortage of $500 or more, a facility operator shall submit a written report to the Commission describing: The reason for the overage or shortage and corrective action taken or adjustment made; or That a notice of investigation is ongoing and the written report will be submitted within the following 48 hours. A facility operator may accept a negotiable instrument in the form of a check meeting the requirements of this regulation from a player to enable the player to take part in gaming. A facility operator may accept a check only during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02. A facility operator may accept a personal check that is: Made payable to the facility operator; Drawn on a bank, savings and loan association, or credit union subject to federal or State banking regulation; Drawn for a specific amount; Currently dated, not postdated; and Payable on demand. Subject to the requirements of §§E and J of this regulation, a facility operator may accept a check issued by a: Facility operator; and Person that: Is an affiliate of the facility operator; and Holds a valid gaming license in another jurisdiction. A facility operator shall only accept a check under §D of this regulation which has been issued to an individual as: Employment compensation; or A payout in connection with gaming activity. A facility operator may not: Except as provided under §C of this regulation, accept a check that is payable to an individual, including: A Social Security check; An unemployment insurance check; A disability payment check; or A public assistance check; or Except for a check issued under §§E, J, and K of this regulation, accept from a player under this regulation a check or multiple checks which in the aggregate exceed $50,000 during a gaming day. For a personal check equaling or exceeding $5,000, a facility operator shall confirm the availability of funds by: Directly contacting the bank, savings and loan association, or credit union upon which the check is drawn; Obtaining an authorization and guarantee of the check from a check verification and warranty service licensed as a contractor under COMAR 36.03.02.14; or Alternate procedures addressing acceptance and verification of personal checks submitted in writing and approved by the Commission. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter, procedures addressing the acceptance and verification of checks meeting the requirements of this regulation. A facility operator's internal controls shall require a check accepted from a player by a general cashier to be: If a personal check other than an electronic check, restrictively endorsed for deposit only to the bank account designated for this purpose by the facility operator and: Initialed by the accepting general cashier; Date and time stamped; Documented on the face of the check the number on the player's government-issued photographic identification; and If a personal check equaling or exceeding $5,000, confirmed for availability of funds under §G of this regulation; Verified for signature authenticity by a general cashier who shall: Obtain from the player one form of identification that is a valid, unexpired government-issued photographic identification; and Satisfactorily compare the: Signature of the player on the personal check or endorsing the payroll or payout check with the signature on an identification credential; and Player's physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the player; If presented by a player as a payroll or payout check under §E of this regulation, confirmed to have been issued as employment compensation or as a payout in connection with gaming activity; and Immediately exchanged for: Cash; If the facility operator has the capability, a gaming ticket; A chip or plaque; or A customer deposit account in accordance with this chapter. A facility operator that is a designated Agency customer resource center may accept an Agency check for Lottery prize winnings for up to $25,000 under COMAR 36.02.06.01. On a single gaming day, a facility operator may accept a check or multiple checks which: In the aggregate do not exceed $250,000; and Were issued to an individual as a payout in connection with gaming activity by: A facility operator; or A person that: Is an affiliate of a facility operator; and Holds a valid gaming license in another jurisdiction. A. A facility operator may accept a negotiable instrument in the form of a check meeting the requirements of this regulation from a player to enable the player to take part in gaming. A facility operator may accept a check only during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02. A facility operator may accept a personal check that is: Made payable to the facility operator; Drawn on a bank, savings and loan association, or credit union subject to federal or State banking regulation; Drawn for a specific amount; Currently dated, not postdated; and Payable on demand. Subject to the requirements of §§E and J of this regulation, a facility operator may accept a check issued by a: Facility operator; and Person that: Is an affiliate of the facility operator; and Holds a valid gaming license in another jurisdiction. A facility operator shall only accept a check under §D of this regulation which has been issued to an individual as: Employment compensation; or A payout in connection with gaming activity. A facility operator may not: Except as provided under §C of this regulation, accept a check that is payable to an individual, including: A Social Security check; An unemployment insurance check; A disability payment check; or A public assistance check; or Except for a check issued under §§E, J, and K of this regulation, accept from a player under this regulation a check or multiple checks which in the aggregate exceed $50,000 during a gaming day. For a personal check equaling or exceeding $5,000, a facility operator shall confirm the availability of funds by: Directly contacting the bank, savings and loan association, or credit union upon which the check is drawn; Obtaining an authorization and guarantee of the check from a check verification and warranty service licensed as a contractor under COMAR 36.03.02.14; or Alternate procedures addressing acceptance and verification of personal checks submitted in writing and approved by the Commission. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter, procedures addressing the acceptance and verification of checks meeting the requirements of this regulation. A facility operator's internal controls shall require a check accepted from a player by a general cashier to be: If a personal check other than an electronic check, restrictively endorsed for deposit only to the bank account designated for this purpose by the facility operator and: Initialed by the accepting general cashier; Date and time stamped; Documented on the face of the check the number on the player's government-issued photographic identification; and If a personal check equaling or exceeding $5,000, confirmed for availability of funds under §G of this regulation; Verified for signature authenticity by a general cashier who shall: Obtain from the player one form of identification that is a valid, unexpired government-issued photographic identification; and Satisfactorily compare the: Signature of the player on the personal check or endorsing the payroll or payout check with the signature on an identification credential; and Player's physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the player; If presented by a player as a payroll or payout check under §E of this regulation, confirmed to have been issued as employment compensation or as a payout in connection with gaming activity; and Immediately exchanged for: Cash; If the facility operator has the capability, a gaming ticket; A chip or plaque; or A customer deposit account in accordance with this chapter. A facility operator that is a designated Agency customer resource center may accept an Agency check for Lottery prize winnings for up to $25,000 under COMAR 36.02.06.01. On a single gaming day, a facility operator may accept a check or multiple checks which: In the aggregate do not exceed $500,000; and Were issued to an individual as a payout in connection with gaming activity by: A facility operator; or A person that: Is an affiliate of a facility operator; and Holds a valid gaming license in another jurisdiction. A facility operator may accept a negotiable instrument in the form of a wire transfer or ACH transfer from a player to enable the player to take part in gaming or to pay an outstanding debt to a facility operator. A facility operator shall record in its cashiers’ cage accountability any funds accepted by wire transfer or ACH transfer with no documented business purpose other than to enable a player to take part in gaming within 24 hours of receipt of the wire transfer. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the acceptance, verification, and sending of wire transfers or ACH transfers meeting the requirements of this regulation. A facility operator’s internal controls shall: Require preparation of a cashiers’ cage wire transfer or ACH transfer log to record the following information pertaining to a wire transfer or ACH transfer accepted by a facility operator on behalf of a player: A sequential number assigned by the facility operator to the wire transfer or ACH transfer accepted; Date and time notice of the wire transfer or ACH transfer was received; Name of the financial institution to which the funds were sent; Amount transferred; Name of the player for whose benefit the funds were accepted; The name of the financial institution from which the funds were transferred; The method by which the facility operator was notified of the receipt of the wire transfer or ACH transfer; If noticed by telephone, the name and title of the individual providing notice; The signature of the cashiers' cage employee receiving and recording the information required by this section; and If applicable, a notation that the wire transfer or ACH transfer has been returned under §E of this regulation; Require that a cashiers’ cage supervisor other than the cashiers’ cage employee who initially documented acceptance of the wire transfer or ACH transfer: Independently confirm: Date, time, and method by which the facility operator was notified of the wire transfer or ACH transfer; and If noticed by telephone, the name and title of the individual providing notice; Record the date and time of confirmation in the wire transfer or ACH transfer log; and Sign the wire transfer or ACH transfer log as completing the confirmation process; Document the procedures used to: Establish, verify, and document the identity of a player sending a wire transfer or ACH transfer; Make the wire transfer or ACH transfer proceeds available to a player at the cashiers’ cage; and Adjust the cashiers' cage accountability; Require preparation of a cashiers’ cage wire transfer or ACH transfer log to record the following information pertaining to a wire transfer or ACH transfer sent by a facility operator on behalf of a player: A sequential number assigned by the facility operator to the wire transfer or ACH transfer sent; Name of the player; Date of the transaction; Amount wired; Source of funds; The name and address of the financial institution to which the funds were wired; Account number to which the funds are credited; If the request to send a wire transfer or ACH transfer is made in person at the cashiers’ cage, the signature of the player; If the request to send a wire transfer or ACH transfer is not made in person at the cashiers’ cage, documentation supporting the receipt of a request by the facility operator to send a wire transfer or ACH transfer on behalf of a player; The signature of the cashiers' cage employee receiving and recording the information required by this regulation; and The signature of the cashiers’ cage supervisor or accounting department supervisor authorizing the wire transfer or ACH transfer; and Document the procedures used to: Establish, verify, and document the identity of a player requesting that a wire transfer or ACH transfer be sent; Send the wire transfer or ACH transfer; and Adjust the cashiers' cage accountability. A facility operator shall take immediate action to return to a player by wire transfer or ACH transfer funds initially accepted by wire transfer or ACH transfer under the following circumstances: The wired funds received by the facility operator have no documented business purpose other than to enable a player to take part in gaming; All or a substantial portion of the wired funds remain in the facility operator's cashiers' cage accountability more than 14 days following transfer to that accountability; and The player has engaged in minimal or no video lottery or table game play since receipt of the wire transfer or ACH transfer. A wire transfer or ACH transfer returned in accordance with §E of this regulation shall be sent to the same individual, financial institution, and account number from which the funds were debited. Return of a wire transfer or ACH transfer shall be recorded in the wire transfer or ACH transfer log maintained under §D of this regulation. A facility operator may accept a negotiable instrument in the form of a cash equivalent from a player to enable the player to take part in gaming. A facility operator may accept a cash equivalent only during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the acceptance and verification of cash equivalents meeting the requirements of this chapter. A facility operator’s internal controls shall: Enumerate the type of cash equivalents complying with this chapter to be accepted; Detail the specific verification procedures required by each issuer; Require that a general cashier: Perform the specific verification procedures required by each issuer; Prepare and maintain documentation evidencing the verification of a cash equivalent accepted; and Examine a cash equivalent for counterfeiting, forgery, or alteration; Detail the criteria for cashiers' cage supervisor involvement in the verification process; and Include procedures for verifying the authenticity of a player’s signature on a cash equivalent in conformance with the signature authentication procedures in Regulation .20 of this chapter. A facility operator may establish a customer deposit account for a player to enable the player to take part in gaming. A facility operator shall perform all procedures required by this chapter before depositing funds accepted by means of check, wire transfer, cash equivalent, or other negotiable instrument into a customer deposit account. A facility operator may accept a customer deposit only during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the acceptance of customer deposits meeting the requirements of this regulation. A facility operator’s internal controls shall: Require acceptance of customer deposits at: The cashiers’ cage; or An off-site customer service location; Require preparation of a receipt documenting: Amount deposited; Date of the deposit; and The signature of the general cashier accepting the customer deposit; Provide for full or partial withdrawal of a customer deposit: By a player at the cashiers’ cage; or Upon receipt by the facility operator of a written request for withdrawal for which validity has been established; and Include procedures for documenting acceptance and withdrawal of customer deposits including a verification of the authenticity of a player’s signature on a customer deposit withdrawal document in conformance with the signature authentication procedures in Regulation .20 of this chapter. For the purposes of this regulation, “derogatory information” means any information associated with a credit account indicating that the account is partially or completely uncollectible, has had checks returned unpaid, or has required settlement, lien, judgment, or other collection efforts by a gaming operator. A facility operator may not extend a line of credit to a player to enable the player to take part in gaming which exceeds the player’s authorized credit limit. A facility operator may extend credit to a player if a: Player submits a credit application in writing in accordance with this regulation; Facility operator complies with the: Credit application verification requirements of Regulation .25 of this chapter; and Credit authorization and credit file documentation requirements of this regulation; Credit is issued: By acceptance of a negotiable instrument in the form of a counter check under Regulation .26 or .27 of this chapter; and During the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02; and Player’s outstanding counter check balance does not at any time exceed the player’s authorized credit limit. A facility operator shall accept a credit application submitted by a player: During the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02; By mail; and By electronic submission. A facility operator shall create and maintain a credit file for a player applying for an extension of credit or authorized counter check privileges. A credit file shall: Be prepared, either manually or by computer, by a general cashier or credit department representative with no incompatible functions including the ability to authorize credit or approve a change in a credit limit; Contain the credit application submitted by the player documenting, at a minimum, the following: Name; Residential address; Personal telephone number; Personal checking account information including: Name and routing number of a bank, savings and loan or credit union subject to federal or State banking regulation on which a counter check is to be drawn; Account number; and A representation that the player is individually authorized to draw on the account; Credit limit requested by the player; Good faith estimate of: Outstanding indebtedness including gaming related credit limits and outstanding balances; and The amount and source of income and assets that support the requested credit limit; and Signature of the player: Acknowledging the request for an extension of credit and counter check privileges; Certifying that all information provided on the application is true and accurate; Authorizing the facility operator to conduct the due diligence it deems appropriate prior to the credit decision; and Acknowledging that the player may be subject to civil or criminal liability if any material information provided is willfully false; and Document, in accordance with §J of this regulation, the credit limit initially authorized by the facility operator for a player and any change in that credit limit. A facility operator may: Consider a checking account of a sole proprietorship owned by a player to be a personal checking account; and Not consider a partnership or corporate checking account to be a personal checking account even if a player is individually authorized to draw on the account. Prior to authorizing an extension of credit, the facility operator shall verify the information on the credit application submitted by the player in accordance with Regulation .25 of this chapter. A facility operator shall restrict authority to extend credit or to approve a change in a credit limit to the following employees: If the facility operator’s table of organization includes a separate credit department, cage credit director, credit manager, cage/credit shift manager, or credit executive who has no involvement with the verifications required under Regulation .25 of this chapter; A principal employee or a credit manager who has no involvement in the verifications required under Regulation .25 of this chapter; and A credit committee composed of principal employees: Which may authorize credit as a group; and Whose members may not act individually to authorize credit unless an individual meets the requirements of §I(1) or (2) of this regulation. A facility operator shall record in a player’s credit file the initial decision to authorize an extension of credit including: The credit limit assigned to the player; Date and time the credit limit was activated; Information used to support the extension of credit including the source of the information, if such information is not otherwise recorded in the credit file under Regulation .25 of this chapter; If applicable, a brief explanation as to why: The credit limit authorized deviates from the credit limit requested by the player in the credit application; and Credit was authorized when the verification process conducted under Regulation .25 of this chapter disclosed derogatory information; and The signature or authorization code of the employee authorizing the extension of credit. A facility operator shall require a request for a change in credit limit to be in writing and include: Date and time of the request; New limit requested by the player; and Signature of the player. Prior to approving a change in a player’s authorized credit limit, a facility operator shall: Verify the player’s current gaming related credit limits and outstanding balances in accordance with Regulation .25 of this chapter unless the facility operator verified that same information earlier in the same gaming day; If a player’s increased credit limit will exceed $2,500, verify the player's outstanding indebtedness in accordance with Regulation .25 of this chapter unless the facility operator verified the player’s outstanding indebtedness in the previous 12 months; Verify the player’s personal checking account information in accordance with Regulation .25 of this chapter unless the facility operator verified the player’s checking account information in the previous 24 months; Review player rating system data regarding the amount and frequency of play subsequent to the initial extension of credit; and Document in the player’s credit file: If approved, the change in credit limit; If disapproved, the reason the credit limit was not changed; The verifications required by this regulation; The player’s rating in the player rating system on the date the change in credit limit was authorized; and The signature or authorization code of the employee responsible for the assessment of the request for a change in credit limit. A facility operator may approve a “this trip only” increase in a credit limit without performing the verifications required by §L of this regulation if: The increase: Is in effect for a single trip to the facility consisting of consecutive gaming days; and Does not exceed 25 percent of the currently authorized credit limit; and The increase is documented in the player’s credit file including the signature or authorization code of the employee approving the “this trip only” credit limit increase. A facility operator may approve a “this trip only” increase in a credit limit after performing the verifications required by §L of this regulation if: The increase: Is in effect for a single trip to the facility consisting of consecutive gaming days; and Exceeds 25 percent of the currently authorized credit limit; and The increase is documented in the player’s credit file including the signature or authorization code of the employee approving the “this trip only” credit limit increase. A facility operator may not accept a counter check from a player before the decision to authorize an extension of credit, approve a change in a credit limit, or approve a “this trip only” credit limit increase is recorded in the credit file, including the signature or authorization code of the employee authorizing the extension of credit or credit limit increase. A facility operator shall suspend the counter check privileges of a player: On receipt of: Derogatory information; Information that indicates that a player’s financial position has materially deteriorated; or A returned check; or Who has been inactive at the facility’s video lottery terminals and table games for more than 24 months. A facility operator may reinstate the counter check privileges of a player suspended under §P of this regulation after: Completion of the verification requirements of Regulation .25 of this chapter; Receipt as a result of those verifications of information supporting the authorized credit limit; and If applicable, payment in full of a returned check. If derogatory information develops pertaining to a player’s account at a facility, a facility operator shall report the derogatory information to the same casino credit bureau it utilizes to verify gaming related credit limits and outstanding balances under Regulation .25 of this chapter within 24 hours of development of the derogatory information. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the issuance of credit including: Identifying the employee positions authorized to extend credit or approve a change in a credit limit; and Creation and maintenance of the credit file. Prior to authorizing an extension of credit and counter check privileges under Regulation .24 of this chapter, a facility operator shall verify the information on the credit application submitted by the player in accordance with this regulation. The verification of credit application information required under this regulation: Shall be conducted by a general cashier or credit department representative with no incompatible functions including the ability to authorize credit or approve a change in a credit limit; Shall be documented in the player’s credit file by recording the following: Source of the verification; Date and time; Method of verification; and Signature of the verifying general cashier or credit department representative; and May be performed telephonically if the facility operator: Requests documentation confirming the information verified telephonically; Documents the request for confirming information in the player’s credit file; and Maintains all confirming documentation received in the player’s credit file. If a player’s credit limit will exceed $2,500, the facility operator shall verify the player’s residential address with: A consumer credit bureau; The player’s bank; or An alternative source which may not include examination of additional identification credentials or other documentation presented by the player at the facility. The facility operator shall: Verify the player’s current gaming related credit limits and outstanding balances with: A casino credit bureau; or Each gaming operator with whom the player has an outstanding limit; Document the player’s current gaming related credit limits and outstanding balances in the credit file by recording for each gaming related credit limit: The date the player’s credit account was established; Amount of the current authorized credit limit; Current balance; and Any derogatory information noted in the player’s account; and If applicable, document in the credit file that no gaming related credit limit or outstanding balance information is available on the player. A facility operator shall: Verify the player’s outstanding indebtedness with a: Consumer credit bureau; or Casino credit bureau; and Document the player’s outstanding indebtedness in the credit file by recording: If available, the current balance of each debt obligation; and Any derogatory information noted. A facility operator shall: Verify the player’s personal checking account information with: The player’s bank; or A bank verification service; and Document the player’s personal checking account information by recording in the credit file: Confirmation that the account is a personal account on which the player may draw individually; Account number; Date the account was opened; If available, average balance of the account for the last 12 months; Balance in the account; and Name and title of the person supplying the information. A facility operator shall verify that the player is not an individual who is: Under 21 years of age; Voluntarily suspended from counter check privileges under Regulation .32 of this chapter; Mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; or Voluntarily excluded in accordance State Government Article, §9-1A-24(e), Annotated Code of Maryland. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures: Identifying those employees authorized to conduct the verifications required under this regulation; and Addressing the verification process required under this regulation. Subject to the requirements of this chapter, a facility operator may accept a negotiable instrument in the form of a counter check from a player at the cashiers’ cage to enable the player to take part in gaming. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the issuance of a counter check at the cashiers’ cage. A facility operator’s internal controls shall include: The use of a three-part computer-generated counter check that: Consists of an original, issuance, and accounting copy; Is initiated on receipt by a general cashier of a request for counter check document; and Is serially numbered and issued; Procedures and controls addressing the identification of a player which include: A requirement that a one-part request for counter check document be prepared which includes: Amount requested; If a facility operator has the capability of offering a gaming ticket as an alternative to cash, an indication as to the desired form of payment; and Signature of the player; A requirement that a general cashier obtain from the player a valid form of unexpired government-issued photographic identification; A requirement that a general cashier satisfactorily compare the: Signature of the player on the counter check request document with the signature on the identification credential; and Player’s physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the player; A requirement that a general cashier record on the counter check request document the: Number on the player’s government-issued photographic identification; and Signature of the general cashier; An option for a general cashier who has on that same shift previously verified the identity of a player by credential review in accordance with §C(2)(b) of this regulation to satisfy the requirements of this regulation by recording on the counter check request document: The series number of the counter check for which the identity of the player was established by credential review; and Signature of the general cashier; An option for a facility operator who has created a signature file on a player prior to the completion by the player of a request for counter check document to satisfy the requirements of this regulation by having the general cashier: Confirm that the player’s signature on the counter check request document matches the signature in the signature file; and Sign the counter check request document; and A requirement that a credential review in accordance with §C(2)(b) and (c) of this regulation is a prerequisite to creation of a player signature file; A requirement that prior to issuing a counter check a general cashier confirm with a check bank cashier or through the video lottery system that the amount requested does not exceed the player’s credit limit; A requirement that all copies of a computer-generated counter check include the following information: Name of the player; Name of the bank, savings and loan, or credit union on which the counter check is to be drawn; Date and time; Amount of the counter check; Location of preparation of the counter check; Signature of a cashiers’ cage supervisor; and Signature or identification code of the preparer of the counter check; A requirement that the back of the original copy of the counter check contain a restrictive endorsement “for deposit only” to the facility operator’s designated bank account; Procedures and controls over the counter check issuance process which require: A cashiers’ cage supervisor to sign all copies of the counter check after confirming that the counter check was prepared for the amount the player recorded on the counter check request document; A player to sign all copies of the counter check in the presence of the same general cashier who verified the player’s identification and prepared the counter check; A general cashier to immediately exchange the counter check for: Cash; If a facility operator has the capability, a gaming ticket; or A customer deposit account in accordance with this chapter; and A general cashier to distribute the copies of the counter check as follows: The original copy of the counter check shall be expeditiously transferred to the check bank directly or to a security department employee for transportation to the cashiers’ cage if the counter check is issued in a satellite cage; The issuance copy of the counter check shall be maintained by the general cashier to serve as documentation supporting the exchange of cash, a gaming ticket, or a customer deposit for the counter check; and The accounting copy of the counter check shall be attached by the general cashier to the counter check request document and forwarded to the accounting department; If utilized, procedures and controls addressing: Use of a signature exemplar; Creation of a player signature file; and Generation of a gaming ticket at the cashiers’ cage; Procedures and controls addressing: Voided counter checks; The use and location of accounting drop boxes; and Audit procedures performed by the facility operator’s accounting department at the conclusion of each gaming day; Details which establish the ability of the facility operator’s video lottery system to ensure that a three-part computer-generated counter check is not susceptible to change or deletion from the system after preparation; and Procedures utilized to issue a manual counter check which: Are to be utilized only when the video lottery system is unable to generate a counter check; Conform to the requirements of this regulation; Require use of a serially pre-numbered three-part counter check consisting of an original, issuance, and accounting copy, residing in a book, wiz machine, or functional equivalent; Require manual counter checks to be maintained in a secured locked cabinet in the cashiers’ cage; and Require the key to the cabinet in §C(10)(d) of this regulation to be: Controlled by the security department or the cage department employees responsible for the control of and accounting for the unused supply of counter checks; and Limited to sign out by a cashiers’ cage shift manager or cashiers’ cage manager. Electronic Credit System. A facility operator may use an electronic credit system approved by the Commission to process electronic counter check transactions. The facility operator may access the player’s file in the electronic credit system using a portable device or other method approved by the Commission. The electronic credit system shall be capable of maintaining independently, or in conjunction with another computer system, as approved by the Commission: A digital photograph and signature of the player; Encrypted employee and player personal identification numbers; For each player account and transaction, the information required to be recorded by §C of this regulation; A record of each electronic transaction, printable in the check bank, which shall include at least: Date and time; Transaction type; Document number; Location; Player name and account number; and Amount; A record of each electronic transaction for which the player has successfully entered the player’s personal identification number and digital signature in the system; A record of voided transactions and the reason for the void; and Any other information the Commission requests. Subject to the limitations of this chapter, a facility operator may accept a negotiable instrument in the form of a counter check from a player at a video lottery terminal or table game to enable the player to take part in gaming. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter, procedures addressing the issuance of a counter check at a video lottery terminal or table game. A facility operator’s internal controls for a counter check exchanged for value chips or plaques at a gaming table shall include: Use of a player signature file which shall: Be established prior to the completion by a player of a request for counter check document at the table game; and Require an identification credential review in accordance with Regulation .26C(2) of this chapter; Procedures and controls addressing the identification of the player which include: A requirement that a floorperson satisfactorily compare the: Signature of the player on a form with the signature on the identification credential; and Player’s physical appearance with the photograph contained on the valid form of unexpired government-issued photographic identification presented by the player; A requirement that a floorperson record on the form the: Number on the player’s government-issued photographic identification; and Signature of the floorperson; A requirement that a floorperson or above shall: Obtain the player’s signature, on a form, which shall be compared to the signature contained within a player signature file; Sign the form indicating that the signature of the player on the form matches the signature in the player signature file; and Attach the form to the accounting copy of the counter check exchanged by the player prior to forwarding it to the accounting department; A requirement that after the player’s identity has been verified by the floorperson or above, staff shall: Ensure that subsequent verification of the player’s identity during the same shift and in the same gaming pit is satisfied by the employee who performed the initial verification signing a form attesting to the player’s identity before each subsequent counter check is exchanged; Ensure that the form includes the player’s name and the serial number of the initial counter check exchanged by the player; and Ensure that the form attaches to the accounting copy of the subsequent counter check prior to forwarding the accounting copy to the accounting department; and A requirement that a floorperson or above attest to the identity of the player which includes: The floorperson or above record the floorperson’s or above’s gaming license number and sign a form or the counter check attesting to the player’s identity; and If used, the form is attached to the accounting copy of the counter check exchanged by the player prior to forwarding it to the accounting department; A requirement that prior to issuing a counter check, the floorperson or above determines the player’s remaining credit limit from the cage or casino management system; A requirement that all copies of a computer-generated counter check include the following information: Name of the player; Name of the bank, savings and loan, or credit union on which the counter check is to be drawn; Date and time; Amount of the counter check; Location of preparation of the counter check; Signature of a gaming operations department supervisor; and Signature or identification code of the preparer of the counter check; A requirement that the floorperson or above present the original and all duplicate copies of the counter check to the player for signature; A requirement that the back of the original copy of the counter check contain a restrictive endorsement “for deposit only” to the facility operator’s designated bank account after being transferred to the check bank; and Procedures and controls over the counter check issuance process which require: A floorperson to receive the signed counter check directly from the player; The issuance copy of the counter check to be immediately given to the dealer or boxperson to be exchanged for value chips or gaming plaques; The issuance copy of the counter check to be deposited by the dealer or boxperson in the drop box; The original copy of the counter check to be expeditiously transported to the cage where the original copy shall be maintained and controlled by the cage cashier designated to act as the check bank; and The accounting copy of the counter check to be maintained and controlled by the pit clerk or above until forwarded to the accounting department. A facility operator’s internal controls for a counter check exchanged for cash or gaming ticket directly at a video lottery terminal shall include: Use of a player signature file which shall: Be established prior to the completion by a player of a request for counter check document at the video lottery terminal; and Require an identification credential review in accordance with Regulation .26C(2) of this chapter; Procedures and controls addressing the identification of the player which include: A gaming operations supervisor to obtain the amount of the requested counter check and the player’s signature on a one-part counter check request form and transport the counter check request form directly to the cage cashier; and A cage cashier to compare the signature on the one-part counter check request form to the signature contained within a player signature file; Procedures and controls over the counter check issuance process which require: A general cashier to: Prepare the counter check in accordance with this regulation; Summon to the cashiers’ cage a verifying employee from the security department or gaming operations department provided the verifying employee is not the gaming operations department supervisor who transported the counter check request document to the cashiers’ cage; Present the counter check request document, all copies of the counter check and the cash, gaming ticket, chip, or plaque to the gaming operations department supervisor and the verifying employee; Obtain the signature of the gaming operations department supervisor on all copies of the counter check confirming that the amount of the counter check agrees with the amount on the counter check request document; Obtain the signature of the verifying employee on the counter check request document confirming that the amount of cash, gaming ticket, chip, or plaque to be transported to the player agrees with the amount on the counter check and on the counter check request document; and Release to the verifying employee the counter check request document, all copies of the counter check, and the cash, gaming ticket, chip, or plaque for transportation, in the presence of the gaming operations department supervisor who transported the counter check request to the cashiers’ cage, to the player; A verifying employee to present all copies of the counter check to the player for signature in the presence of the gaming operations department supervisor; A gaming operations department supervisor to compare the player’s signature on the counter check to the signature on the counter check request document; A verifying employee to immediately exchange the counter check for: Cash; or If a facility operator has the capability, a gaming ticket; A gaming operations department supervisor to: Sign the back of the accounting copy confirming the exchange with the player; and Drop the accounting copy of the counter check into an accounting drop box for forwarding to accounting; A verifying employee to immediately return the original and issuance copies of the counter check to a general cashier; and A general cashier to: Expeditiously transfer the original copy of the counter check to the check bank directly or to a security department employee for transportation to the cashiers’ cage if the counter check is issued in a satellite cage; and Attach the counter check request document to the accounting copy of the counter check to serve as documentation supporting the exchange of cash, gaming ticket, for the counter check. Electronic Credit System. A facility operator may use an electronic credit system approved by the Commission to process electronic counter check transactions. The facility operator may access the player’s file in the electronic credit system using a portable device or other approved method. The electronic credit system shall be capable of maintaining independently, or in conjunction with another computer system, as approved by the Commission: A digital photograph and signature of the player; Encrypted employee and player personal identification numbers; For each player account and transaction, the information required to be recorded by §§C and D of this regulation; A record of each electronic transaction, printable in the check bank, which shall include at least: Date and time; Transaction type; Document number; Location; Player name and account number; and Amount; A record of each electronic transaction for which the player has successfully entered the player’s personal identification number and digital signature in the system; A record of voided transactions and the reason for the void; and Any other information the Commission requests. A player to whom a counter check has been issued by a facility operator may use a personal check meeting the requirements of §B of this regulation to: Substitute for a counter check which has not been deposited by the facility operator; Consolidate two or more counter checks which have not been deposited by the facility operator; and Redeem, partially or in full, a counter check which has not been deposited by a facility operator. A personal check accepted by a facility operator in a substitution, consolidation, or redemption transaction shall: Be drawn on an account which has been verified in accordance with Regulation .25 of this chapter; Except as provided in §C of this regulation, comply with the requirements of Regulation .20 of this chapter; and Be redeemed or deposited in accordance with Regulation .29 of this chapter. If a personal check is accepted in an amount less than or equal to the amount of a counter check being partially or fully redeemed, the $50,000 limitation on acceptance of personal checks in Regulation .20F(2) of this chapter does not apply. A player who has issued a replacement check to a facility operator may present another replacement check in a substitution, consolidation, or partial redemption transaction involving the original replacement check. A replacement check accepted by a facility operator in a substitution, consolidation, or partial redemption transaction shall be: Dated with the date of the initial counter check being substituted, consolidated, or partially redeemed; or If the check is subject to Commission-approved internal controls which ensure that the date of the initial counter check being substituted, consolidated, or partially redeemed is used to determine the date on which the replacement check is deposited under Regulation .29 of this chapter, currently dated. A facility operator may not accept a replacement check in substitution, consolidation, or partial redemption for the purpose of avoiding or delaying the deposit requirements for a counter check or replacement check under Regulation .29 of this chapter. If a player has more than one counter check or replacement check which has not been deposited, the most recently dated check shall be redeemed first, except that: If more than one check bears the same date, the player may choose the order in which to redeem the checks; If, pursuant to Commission-approved internal controls, a facility operator does not require a replacement check used in a substitution, consolidation, or partial redemption transaction to be dated with the date of the initial counter check being substituted, consolidated, or partially redeemed, then the date of the initial counter check and not the date of the replacement check shall be used to determine the order in which outstanding checks are redeemed; and If a facility operator receives a check through the mail or by other means approved by the Commission and the player requests that it be applied to a transaction having an earlier redemption date, the facility operator may apply the check according to the player’s request. A facility operator may conduct a substitution, consolidation, and full or partial redemption transaction: At the cashiers’ cage during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02; By mail; At an off-site customer service location; or In a table game pit. A facility operator shall develop and include in the internal controls submitted to and approved under Regulation .05 of this chapter procedures and controls addressing the substitution, consolidation, and full or partial redemption of a counter check. A facility operator may allow a player to redeem a counter check at a gaming table in exchange for gaming chips. A facility operator’s internal controls for redeeming a counter check at a gaming table shall include: A requirement that a redemption occur: On the same gaming day the counter check is issued; and In the same gaming pit where the counter check was issued and held for pit redemption; A requirement that a general cashier or casino clerk: Remove the original and all duplicate copies of the counter check from its secured location in the pit; Prepare a two-part serially prenumbered pit redemption form in accordance with this regulation; and Present the pit redemption form and the original and all duplicate copies of the counter check to the dealer or boxperson, in the presence of a floorperson or above; Procedures and controls over the counter check redemption process which require: A dealer or boxperson to verify that the amount of chips received from the player agrees with the amount of the original counter check and the pit redemption form; The dealer or boxperson to place the gaming chips from the player into the table inventory; The dealer or boxperson, and the floorperson to sign the pit redemption form; The dealer or boxperson to deposit the original of the pit redemption form in the drop box; The floorperson to return the original counter check to the player; The floorperson to return the duplicate copies of the counter check and the duplicate copy of the pit redemption form to the general cashier or casino clerk; The general cashier or casino clerk to forward the duplicate copies of the counter check to the check bank for processing; and The cashiers’ cage to forward the duplicate copy of the pit redemption form to the casino accounting department at the end of the gaming day; and A requirement that the general cashier or casino clerk record the following information on a two-part serially prenumbered pit redemption form residing in a book, wiz machine, or functional equivalent: The date and time of redemption; The identification number of the table game; The player's name; The counter check number and amount; The signature of the general cashier or casino clerk; The signature of the table game dealer or boxperson; and The signature of the floorperson or above. Electronic Credit System. A facility operator may use an electronic credit system approved by the Commission to process electronic counter check transactions. The facility operator may access the player’s file in the electronic credit system using a portable device or other method approved by the Commission. The electronic credit system shall be capable of maintaining independently, or in conjunction with another computer system, as approved by the Commission: A digital photograph and signature of the player; Encrypted employee and player personal identification numbers; For each player account and transaction, the information required to be recorded by §§B and E of this regulation; A record of each electronic transaction, printable in the check bank, which shall include at least: Date and time; Transaction type; Document number; Location; Player name and account number; and Amount; A record of each electronic transaction for which the player has successfully entered the player’s personal identification number and digital signature in the system; A record of voided transactions and the reason for the void; and Any other information the Commission requests. A facility operator shall deposit a counter check in its bank account or present the counter check directly to the player’s bank: No later than: 14 days after the date of the check for a check of $1,000 or less; 21 days after the date of the check for a check greater than $1,000 but not more than $2,500; 45 days after the date of the check for a check greater than $2,500; or 60 days after the date of the check for a check greater than $10,000; or In accordance with a deposit schedule agreed to between the facility operator and the player if the deposit schedule: Does not authorize deposit more than 60 days after the date of the check; May not be amended or modified to change the deposit date of a counter check after acceptance of the counter check from the player; and Was at the time of the initial authorization of credit or an approved change in a credit limit: Agreed to and approved by the employee who extended the credit; and Documented in the credit file. A facility operator shall deposit a replacement check accepted from a player in a substitution, consolidation, or partial redemption transaction in its bank account or present the replacement check directly to the player’s bank: On the deposit date of the initial counter check in accordance with Regulation .28D of this chapter; and In accordance with one of the deposit options of §A of this regulation. A facility operator shall deposit in its bank account or present directly to the player’s bank a personal check accepted in full redemption of a counter check on the next day. A facility operator: If there are a series of consolidation or redemption transactions with a player, may substitute a current counter check for the earliest dated counter check returned to the player in the first of the series of consolidation or redemption transactions; and In computing the time periods in §§A, B, and C of this regulation, shall consider the last day of the period to be included unless it is a Saturday, Sunday, or a State or federal holiday, in which event the time period runs until the next banking day. A facility operator shall develop and include in the internal controls submitted to and approved under Regulation .05 of this chapter procedures and controls addressing the deposit of counter checks and replacement checks. A facility operator’s internal controls shall include: Procedures and controls addressing: Release of a counter check or replacement check for presentment to a player’s bank to: A principal employee of the facility operator; or An attorney; and Correction, prior to deposit or presentment or on redeposit of a returned check, of data entry errors in: Bank name; Bank routing number; Bank account number; or Micro-encoding number; and A prohibition against correcting information that identifies the verified bank account on which the counter check was originally drawn. All checks returned after deposit shall be: Returned directly to an accounting department employee with no incompatible functions; and Maintained by a check bank cashier with no incompatible functions. A facility operator shall: Limit collection efforts pertaining to a returned check to the following persons: A gaming or principal licensed employee of the accounting department with no incompatible functions; and An attorney representing the facility operator; Notice the employee or attorney authorized to conduct collection efforts of any verbal or written communication with a player regarding collection efforts; Document all collection efforts in the player’s credit file; and Send a statement to a player at reasonable intervals. After reasonable collection efforts, returned checks may be considered uncollectible for accounting purposes if the write off is authorized by the: Chief executive officer; and Director of finance or another designated principal employee who does not possess authority to authorize credit or approve a change in a credit limit. In addition to the documentation requirements of Regulations .24 and .25 of this chapter, a facility operator shall record in a player’s credit file all transactions affecting a player's outstanding indebtedness to the facility operator, and the credit file shall include: Transactions recorded in chronological order; Credit transactions segregated from customer deposit transactions; and Documentation of: For counter checks, the date, amount, and series number; For each substitution check: The date, amount, and check number of the substitute check; and The series number of the counter check or check number of the replacement check returned to the player; For each consolidation check: The date, amount, and check number of the consolidation check; and The series numbers of the counter check or check number of the replacement check returned to the player; For each redemption check: The date, amount, and check number of the redemption check; An indication as to whether the redemption was partial or full; and The series number of the counter check or check number of the replacement check returned to the player; Date, amount, and series or check number of each check: Deposited; and Returned; If a check has been returned, the reason for its return; Player’s outstanding balance after each transaction; Date, amount, and series or check number of a check which has been partially or completely written off by the facility operator; and If a write off, the reason for the write off. A facility operator shall maintain original copies of counter checks and replacement checks accepted in substitution, consolidation, and redemption transactions in its check bank. A facility operator’s check bank shall prepare and maintain for each shift, manually or by computer, a log of all counter checks exchanged and of all replacement checks received in substitution, consolidation, and redemption transactions which includes the following: The balance of the checks on hand in the check bank at the beginning of each shift; For counter checks accepted and for replacement checks received in substitution, consolidation, or redemption on the shift: Date of the check; Name of the drawer of the check; Amount of the check; If a counter check, the series number; If a replacement check, the check number; and If applicable, an indication that the check was accepted in a substitution, consolidation, or redemption transaction; For checks deposited, substituted, consolidated, or redeemed by a player on the shift: Date on which the check was deposited, substituted, consolidated, or redeemed; Name of the drawer of the check; Amount of the check; If a counter check, the series number; If a replacement check, the check number; and An indication as to whether the check was deposited, substituted, consolidated, or redeemed; and The balance of the checks on hand in the check bank at the end of each shift. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing accounting controls over the check bank, including end of shift and end of gaming day deposits and reconciliations. A player may voluntarily suspend the player’s credit privileges at a Maryland facility by submitting a written request to the facility in a form specified by the facility. A request for suspension of credit privileges shall be made: In person at a facility; or By mail if: Submitted with a signature signed before a notary public or other individual empowered by law to take oaths; and Accompanied by a certificate of acknowledgement by the notary public or other individual empowered by law to take oaths attesting to the identity of the individual making the request. The facility receiving a player’s request for suspension of credit privileges shall maintain a master list of all individuals who have requested suspension of credit privileges under this regulation. A facility operator shall suspend the credit privileges of an individual requesting suspension within 24 hours of receipt of notice that the individual’s name has been added to the facility’s master list. A facility operator shall: Maintain the most current master list in its cashiers’ cage; and Within 24 hours of receipt of notice that an individual has requested a suspension of credit privileges, record the suspension in the player’s credit file. No less than 60 days after the request for suspension of credit privileges, a player whose credit privileges have been suspended under this regulation may request reinstatement of credit privileges by submitting a written request to the facility. The facility shall on receipt of a request for reinstatement update its master list of individuals to document the request for reinstatement. A facility operator may not reinstate the credit privileges of a player removed from facility’s master list without performing the verifications required by Regulation .25 of this chapter. Information furnished to or obtained by the facility under this regulation shall be deemed confidential and may not be disclosed except to facility personnel whose duties and functions require access to the information. A facility operator requested to provide information regarding the status of a player’s credit account may not disclose any information other than to identify the credit account as voluntarily suspended. A video lottery terminal or table game may not be played or activated in any way by insertion, directly or indirectly, or use of a: Credit card; Debit card; or Electronic transfer of funds from a credit card or debit card. For the purposes of this regulation, a player tracking system means the collective hardware, software, communications technology, and other ancillary equipment owned or leased by a facility operator to collect, monitor, interpret, analyze, authorize, report, and audit data pertaining to: Player activity generally at video lottery terminals and table games; and Individual player activity at video lottery terminals and table games where the player has registered with the facility operator for inclusion in the player tracking system. A facility operator shall utilize a player tracking system meeting the requirements of this subtitle. A facility operator may not collect or monitor the activity of an individual who it knows, suspects, or has reason to know or suspect is: Under the age of 21 years; Mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; or Voluntarily excluded in accordance State Government Article, §9-1A-24(e), Annotated Code of Maryland. A facility operator shall provide a player with a record of video lottery terminal and table game spending levels if: The player: Has registered with the facility for inclusion in the player tracking system; and Submits a signed request for the spending level documentation at: The cashiers' cage; or Other location at the facility approved by the Commission; and The identification of the player and the authenticity of the player's signature on the request is established by an employee satisfactorily comparing the: Player's information recorded on the spending level request documentation with the information contained on the valid, unexpired government-issued photographic identification presented by the player; and Player's physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the player. A facility operator shall provide a player with a record of video lottery terminal and table game spending levels if the player: Has registered online with the facility operator for the establishment of an account; and Enters a unique login credential at a: Self-service kiosk; or Facility operator’s player rewards website. A facility operator may issue a gaming ticket and utilize a gaming ticket system meeting the requirements of this subtitle. A facility operator shall: Issue a gaming ticket which does not expire for 182 days after the date of issuance; Configure its gaming ticket system to: Prevent issuance of a gaming ticket exceeding $10,000; and Require gaming tickets of $5,000 or more to be redeemed only at the cashiers’ cage; Configure a ticket redemption unit under Regulation .38 of this regulation to: Redeem only a gaming ticket of less than $5,000; and Direct a player attempting to redeem a gaming ticket of $5,000 or more to the cashiers’ cage; and Redeem at its cashiers’ cage a gaming ticket of $5,000 or more by: Cash or check; or Check on the request of a player. A facility operator shall immediately report to the Commission evidence that a gaming ticket has been counterfeited, tampered with, or altered in any way which would affect the integrity, fairness, or reliability of the gaming ticket. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the issuance and redemption of a gaming ticket. A facility operator’s internal controls shall: Require a gaming ticket to include: Name or trade name of the facility operator; Date and time of issuance; Amount of the gaming ticket; Unique series number automatically generated by the gaming ticket system; Asset number of the video lottery terminal dispensing the gaming ticket; At least one anticounterfeiting measure, which appears on one or both sides of the gaming ticket; Locations where the gaming ticket may be redeemed and any restrictions applicable to redemption; A bar code or magnetic strip which enables the gaming ticket system to identify the numeric information required by this section; and Notice to the player of the terms of expiration; and Include procedures and controls which: Require a gaming ticket system to perform the following prior to payment: Verify the validity of the series number and amount of the gaming ticket; and Electronically cancel the gaming ticket; Require the gaming ticket system to be configured: To permit access to the complete series number of an unredeemed gaming ticket only to gaming ticket system administrative employees and accounting department employees not assigned to the cashiers’ cage; and To maintain a record of all unredeemed gaming tickets for a minimum of 2 years from the date of issuance of the gaming ticket unless a request to remove or relocate system records is submitted in writing and approved in writing by the Commission; Address the following events: Calculation and transmittal by the facility operator of its outstanding expired unredeemed gaming ticket balance to the State; An election by a facility operator to pay a gaming ticket when the gaming ticket system is inoperable or otherwise unable to verify the validity of the gaming ticket at the time of payment; and An election by a facility operator to pay a gaming ticket where the gaming ticket system fails to verify and electronically cancel the gaming ticket when it is presented by the player and scanned for verification; and Require generation, at the conclusion of each gaming day, of reports detailing: Gaming tickets issued; Gaming tickets redeemed and cancelled by redemption location; Unredeemed liability for gaming tickets; Readings on gaming ticket related video lottery terminal meters; Meter readings compared to number and amount of issued and redeemed gaming tickets; and Any exceptions. A facility operator may: Issue promotional play if it is not awarded as cashable credit; and Utilize a promotional play system meeting the requirements of this subtitle. A facility operator may not issue to a player promotional play equaling or exceeding $5,000 per gaming day without approval from the chief executive or the chief executive’s designee. A facility operator shall immediately report to the Commission evidence that a promotional play instrument has been counterfeited, tampered with, or altered in any way which would affect the integrity, fairness, or reliability of the promotional play instrument. A facility operator shall submit to the Commission in a form and in accordance with a time frame specified by the Commission a quarterly report summarizing: Promotional play awarded for the period including: Total amount in promotional play awarded in noncashable credits; and Other forms of promotional play; and Promotional play redeemed by players for the period including: Total amount in promotional play redeemed in noncashable credits; and Other forms of promotional play redeemed. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing: Methods utilized to: Issue promotional play; and Redeem promotional play; and A promotion play instrument including a requirement that it document: Name or trade name of the facility operator; Amount in noncashable credits; Unique series number automatically generated by the promotional play system; Locations where a promotional instrument may be redeemed and any restrictions applicable to redemption; A bar code or magnetic strip which enables the promotional play system to identify the numeric information required by this section; and Notice to the player of the terms of expiration. Limitation on Free Promotional Play. Through the first full fiscal year of a facility’s operations, the proceeds of a facility excludes money given away by a licensee as free promotional play and used by players to bet in a video lottery terminal or at a table game. After the first full fiscal year of a facility’s operations, the amount of money given away as free promotional play in a fiscal year may not exceed a percentage of the facility’s proceeds received in the prior fiscal year under State Government Article, §9-1A-27(a)(2), (c)(1)(ii), and (d)(1), Annotated Code of Maryland, that equates to 20 percent of total video lottery terminal and table game proceeds the facility generated in the prior fiscal year. An amount of money given away as free promotional play in a fiscal year exceeding the percentage defined in §F(2) of this regulation of the facility’s proceeds of the prior fiscal year shall be allocated as proceeds under State Government Article, §9-1A-27, Annotated Code of Maryland. No later than 90 days after the end of the fiscal year, a facility operator shall submit to the Commission a written: Report of its use of free promotional play during the prior fiscal year; and Recommendation for any adjustment to the limitation on free promotional play established under §F(2) of this regulation. For purposes of §§F and G of this regulation, “fiscal year” means the fiscal year of the facility operator. A facility operator may utilize a ticket redemption unit meeting the requirements of this subtitle. A facility operator shall locate a ticket redemption unit on the gaming floor or cashier’s cage, subject to the surveillance coverage requirements of Regulation .11 of this chapter. A ticket redemption unit: Shall in accordance with Regulation .36 of this chapter be configured to: Redeem a gaming ticket of less than $5,000; and Direct a player attempting to redeem a gaming ticket of $5,000 or more to the cashiers’ cage; and May be configured to function as a bill breaker changing bills of one denomination into bills of a smaller denomination. A facility operator shall develop and include in the internal controls submitted under Regulation .05 of this chapter, procedures addressing a ticket redemption unit. A facility operator’s internal controls shall address: Distribution of cash to a ticket redemption unit; Removal of gaming tickets and cash accepted by a ticket redemption unit; Reconciliations associated with the replenishment process; Generation of the following reports by a ticket redemption unit or ancillary system or application for the reconciliation period, which may be by gaming day, shift, or drop cycle: A gaming ticket transaction report which details: Disposition, as paid, partially paid, or unpaid, of gaming tickets accepted by a ticket redemption unit; Gaming ticket validation number; Date and time of redemption; Amount requested; and Amount dispensed; A reconciliation report which details: Date and time; Unique asset identification number of the ticket redemption unit; Total amount of cash in the currency and coin cassettes; Total number of bills accepted by denomination; and Total amount of gaming tickets accepted; and A gaming ticket and currency storage box report which details the following data whenever a storage box is removed from the ticket redemption unit: Date and time; Unique asset identification number of the ticket redemption unit; Unique identification number for each storage box in the ticket redemption unit; Total amount of currency dispensed; Total number of bills dispensed by denomination; Total amount of gaming tickets accepted; Total count of gaming tickets accepted; and Details required to be included in the gaming ticket transaction report required under §E(4)(a) of this regulation; and A transaction history report which details all critical player transaction history including the date, time, amount, and disposition of each complete and incomplete transaction. Definition. A facility operator shall utilize a multipurpose jackpot or credit meter payout document meeting the requirements of this regulation to pay: A jackpot not totally and automatically paid by a video lottery terminal; or Credits accumulated by a player on a video lottery terminal if: The number of accumulated credits exceeds the amount which may be paid utilizing a gaming ticket under Regulation .36 of this chapter; Due to malfunction, the credits cannot be paid by the video lottery terminal; or A single jackpot event requires the filing of IRS Form W-2G, Certain Gambling Winnings. A facility operator shall: Prepare and timely file IRS Form W-2G, Certain Gambling Winnings, in accordance with IRS rules and regulations; Withhold payment of a jackpot prize to satisfy a player’s financial obligation to the State, such as the payment of child support arrearage or other requirements of State law; and Immediately report to the Commission any incident in which a video lottery terminal fails to lock up and preclude play following a single jackpot event: Requiring the filing of an IRS Form W-2G, Certain Gambling Winnings, as required by the IRS; or At an amount lower than the IRS requires for reporting, as approved by the Agency. A facility operator shall pay a jackpot or credit meter payout of: $50,000 or more by check; and Less than $50,000 by: Cash or check; or On the request of a player, any combination of cash, gaming ticket, check, or other method of payment approved by the Commission. A facility operator may withhold a player’s outstanding indebtedness to the facility from a jackpot prize or credit meter payout after satisfying a player’s financial obligation to the State, as required in §C(2) of this regulation; A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the payment of a jackpot or credit meter payout not totally and automatically paid by a video lottery terminal. A facility operator’s internal controls shall include: The use of a two-part computer-generated jackpot or credit meter payout document initiated on the request of a gaming operations department attendant or gaming operations department supervisor or above after verifying the: Winning combination of characters on the video lottery terminal or table game and the amount of the jackpot; or Number of accumulated credits; Unless a request for an alternate verification procedure is submitted in writing and approved by the Commission, a requirement that, if a jackpot or credit meter payout is $1,200 or more but less than $15,000, a security department employee or a gaming operations department attendant or gaming operations department supervisor or above other than the preparer of the document sign the jackpot or credit meter payout document after verifying the payment of the jackpot or credit meter payout to the player and: Winning combination of characters on the video lottery terminal and the amount of the jackpot; or Number of accumulated credits; A provision that only the preparer is required to sign the jackpot or credit meter payout document if: A jackpot or credit meter payout is less than $10,000; A facility operator’s slot or casino management system can independently verify a jackpot or credit meter payout; The facility operator’s slot or casino management system and the central monitor and control system are fully operational; and Overrides or adjustments are not required; A requirement that, if a jackpot or credit meter payout is $15,000 or more but less than $35,000, a security department employee or a gaming operations department supervisor or above other than the preparer of the document sign the jackpot or credit meter payout document after verifying the payment of the jackpot or credit meter payout to the player and: Winning combination of characters on the video lottery terminal and the amount of the jackpot; or Number of accumulated credits; A provision that, if a jackpot or credit meter payout document generated under §G(1) of this regulation is requested by a gaming operations department supervisor or above, the verification required by §G(4) of this regulation may be completed by a gaming operations department attendant, a gaming operations department supervisor or above, or a security department employee; A requirement that, if a jackpot or credit meter payout is $35,000 or more, an operations department shift manager or higher level operations department employee other than the preparer of the document sign the jackpot or credit meter payout document after verifying the payment of the jackpot or credit meter payout to the player and: Winning combination of characters on the video lottery terminal and amount of the jackpot; or Number of accumulated credits; A provision that, if a jackpot or credit meter payout document required under §G(1) of this regulation is requested by a gaming operations department shift manager or higher level gaming operations department employee, the verification required by §G(6) of this regulation may be completed by a gaming operations department attendant, a gaming operations department supervisor or above, or a security department employee; A requirement that the following information be on a two-part computer-generated jackpot or credit meter payout document: Date and time; Asset number of the video lottery terminal or table game on which the jackpot was registered or credits accumulated; Winning combination of characters constituting the jackpot or a code corresponding to the winning combination of characters constituting the jackpot or an indication that a credit meter payout is to be made; Amount to be paid; Unique transaction number generated by the video lottery system; Signature or identification code of the preparer of the document; If the payout is $1,200 or more, the signature or identification code of a verifying witness in accordance with this regulation; and Unless an automated jackpot payout machine or a cash wallet is utilized to effect the payment, the signature or identification code of the cashier issuing the funds; If utilized, procedures and controls applicable to a jackpot or credit meter payout: Using an automated jackpot payout machine meeting the requirements of Regulation .42 of this chapter; and By a gaming operations department attendant from a cash wallet impressed with $10,000 or less; If utilized, procedures and controls to be implemented if the facility operator resets the video lottery terminal or credit meter before the player is paid; A requirement that the surveillance department: Be notified of a jackpot or credit meter payout of $25,000 or more; Log all notices regarding a jackpot or credit meter payout in the surveillance log required under Regulation .12 of this chapter; and Obtain and retain in accordance with Regulation .11 of this chapter a photograph of the face of the player receiving the payout; Details pertaining to: Payment of a jackpot or credit meter payout at the: Cashiers’ cage; Video lottery terminal; and Table game; The use of an accounting drop box; and Audit procedures to be performed by the facility operator’s accounting department at the conclusion of each gaming day; Procedures addressing unclaimed jackpots or accumulated credits abandoned on a video lottery terminal or table game; Details which establish the ability of the facility operator’s video lottery system to: Ensure that a two-part computer-generated jackpot or credit meter payout document is not susceptible to change or deletion from the system after preparation; Process and document system overrides or adjustments to jackpot or credit meter payouts including: Overrides or adjustments where the payout requested does not match the payout amount sent from the video lottery terminal to the video lottery system; and Identification of the level of employee having override authority; and Process voided jackpot or credit meter payout documents; and Procedures utilized to issue a manual jackpot or credit meter payout document which: Are to be used only when the video lottery system is unable to generate an jackpot or credit meter payout document; Conform to the jackpot payout or credit meter payout verification and signature requirements of this regulation; Involve use of a three-part serially prenumbered manual jackpot or credit meter payout document residing in a book, wiz machine, or functional equivalent; Require manual jackpot or credit meter payout books or their functional equivalent to be maintained in a secured locked cabinet in the cashiers’ cage; and Require the key to the cabinet in §G(15)(d) of this regulation to be: Controlled by the security department or the accounting department; and Limited to sign out by a gaming operations department supervisor or above. Electronic Jackpot or Credit Meter Payout System. A facility operator may use an electronic jackpot or credit meter payout system approved by the Commission to process jackpot or credit meter payout transactions. A facility operator may process jackpot or credit meter payouts using a portable device or other method approved by the Commission. The electronic jackpot or credit meter payout system shall be capable of maintaining independently, or in conjunction with another computer system: A record of each IRS Form W-2G in accordance with §C of this regulation; A record of each jackpot or credit meter payout document in accordance with §G of this regulation; All signatures required by this regulation; A record of a voided transaction and the reason for the void; and Any other information the Agency staff requires. Definitions. In this regulation, the following terms have the meanings indicated. Terms Defined. “Annuity jackpot” means a video lottery terminal or table game jackpot in which a player wins the right to receive fixed cash payments at specified intervals; and “Discount rate” means a discount rate equal to the United States Treasury constant maturity rate for 20-year United States government securities for the week ending prior to the date of the jackpot, as identified in the applicable H.15 Statistical Release issued by the Federal Reserve Board plus 0.5 percent. A facility operator may not offer an annuity jackpot without the prior written approval of the Commission. A facility operator submitting a request for approval of an annuity jackpot to the Commission shall submit details pertaining to the annuity jackpot including: The specific terms of: The annuity; and Any cash payout option; The written trust agreement supporting the trust fund used to make future cash payments on the annuity jackpot, including details pertaining to: Administration and funding of the trust agreement; Liability for payments owed to a player; and Designation of a trustee; Internal controls addressing the offer and award of an annuity jackpot in accordance with §G of this regulation; and Documentation supporting that the average payout percentage on the video lottery terminal offering the annuity jackpot will comply with this subtitle. A facility operator that offers an annuity jackpot payable over 10 years or more may offer a player the option to be paid in a single cash payout provided that payout is equal to the present value of the annuity jackpot as calculated in §E of this regulation. The present value of a cash payout option on an annuity jackpot shall be determined by: Applying the discount rate to each of the future annuity jackpot payments; Multiplying the number of years until each jackpot payment would otherwise have been received; and Adding to that amount the amount of the first cash payment that would otherwise have been received. A facility operator shall pay a cash payout requested by a player in lieu of an annuity jackpot in accordance with Regulation .39 of this chapter. A facility operator shall develop and include in the internal controls submitted to and approved under Regulation .05 of this chapter procedures addressing the offer and award of an annuity jackpot. A facility operator’s internal controls shall include: Procedures to be followed by a player to exercise a cash payout option; and Procedures utilized to document payment of an annuity jackpot. Definitions. In this regulation, the following terms have the meanings indicated. Terms Defined. “Merchandise” means goods, commodities, or other things of value; and “Merchandise jackpot” means a video lottery terminal or table game jackpot in which a player wins: Merchandise; A combination of a cash payout and merchandise; or An option to choose between a cash payout and merchandise. A facility operator may not offer a merchandise jackpot without the prior written approval of the Commission. A facility operator submitting a request for approval of a merchandise jackpot to the Commission shall submit details pertaining to the merchandise jackpot including: The specific terms of: The merchandise offer; and Any cash payout option; Documentation supporting the acquisition of the merchandise and its cash equivalent value under §D of this regulation; Internal controls addressing the offer and award of a merchandise jackpot in accordance with §H of this regulation; and Documentation supporting that the average payout percentage on the video lottery terminal offering the merchandise jackpot will comply with this subtitle. If a facility operator offers a merchandise jackpot consisting of merchandise or an optional cash payout, the optional cash payout shall equal the cash equivalent value of the merchandise determined in accordance with §E of this regulation. The cash equivalent value of merchandise shall be determined as follows: Merchandise that the facility operator sells directly to the public in the normal course of business shall be valued at an amount equal to the full retail price normally charged for the merchandise; Merchandise that the facility operator does not sell directly to the public in the normal course of business, but which is provided directly to a player by the facility operator, shall be valued at an amount equal to the actual cost to the facility operator of the merchandise; Merchandise that is provided directly or indirectly to a player on behalf of a facility operator by a third party not related to the facility operator shall be valued at an amount equal to the actual cost to the facility operator of having the third party provide the merchandise; and Merchandise that is provided directly or indirectly to a player on behalf of a facility operator by a third party who is related to the facility operator shall be valued as if the related party were the facility operator under §E(1) and (2) of this regulation. For the purpose of determining proceeds, the cash equivalent value of any merchandise paid as, or as a portion of, a jackpot shall be included in total winnings paid. A facility operator shall pay a cash payout portion of a merchandise jackpot and a cash payout requested by a player in lieu of a merchandise jackpot in accordance with Regulation .39 of this chapter. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the offer and award of a merchandise jackpot. A facility operator’s internal controls shall include: Procedures to be followed by a player to exercise a cash payout option; and Procedures utilized to document payment of a merchandise jackpot. A facility operator may utilize an automated jackpot payout machine meeting the requirements of this subtitle. A facility operator may locate an automated jackpot payout machine on the gaming floor subject to the surveillance coverage requirements of Regulation .11 of this chapter. A facility operator shall, in accordance with Regulation .38D of this chapter, configure an automated jackpot payout machine to only process a jackpot or credit meter payout of less than $50,000. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the payment of a jackpot or credit meter payout utilizing an automated jackpot payout machine. A facility operator’s internal controls shall include procedures and controls documenting: A jackpot or credit meter payout transaction at an automated jackpot payout machine; and Reconciliation and replenishment of an automated jackpot payout machine. Access. A facility operator shall control access to a bill validator, a cash storage box housed in a video lottery terminal, and a table game drop box in accordance with this regulation. Access to a bill validator shall be controlled by: At least one lock; and Requiring the key to the lock to be maintained by the security department. The cash storage box shall be secured to a bill validator by two separate locks, the keys to which are different from each other, and, for the lock on the belly door or main door of the video lottery terminal: The key shall be controlled by the slots department in: A manual key box; or An automated key tracking system; Immediately prior to the commencement of the drop, the slots department may issue its belly door or main door key to the accounting department; A key transferred from the slots department to the accounting department shall be returned immediately following the conclusion of the drop; The facility operator shall establish sign in and sign out procedures in its internal controls documenting the transfers; and If an automated key tracking system is used, a facility operator shall require dual access from the security department and accounting department to obtain keys. The lock on the release mechanism securing the cash storage box to the bill validator shall be controlled by the security department. Access to the contents of a cash storage box shall be controlled by: At least one lock; and Requiring the key to the lock to be maintained by the accounting department. Control. A facility operator shall either: Assign to a cash storage box an asset number that: Is permanently imprinted or affixed to the outside of the cash storage box; and Corresponds to the asset number of the video lottery terminal in which the cash storage box is installed; or With the written approval of the Commission, utilize a computerized system for: Assigning a unique identification number to a cash storage box; and Attributing it to the video lottery terminal in which the cash storage box is installed. Unique identification number. A facility operator shall ensure that an asset number or unique identification number on a cash storage box is clearly visible to: An employee involved in removing or replacing a cash storage box; and The surveillance department. Emergency cash storage box. A facility operator may maintain an emergency cash storage box without an asset number or a unique identification number if: The word “emergency” is permanently imprinted or affixed on the box; and When put into use, the cash storage box is temporarily marked with the asset number of the video lottery terminal in which it is installed. Table Game Drop Box. A table game shall have a secure tamper-resistant table game drop box attached to it in which the following shall be deposited: Cash exchanged for gaming chips and plaques at the gaming table; Issuance copies of counter checks exchanged at the gaming table for gaming chips and plaques; Copies of fill request slips, fill slips, credit request slips, credit slips, and table inventory slips; and Other table game wagering instruments approved by the Commission. A table game drop box shall have: One lock securing the contents deposited into it; A separate lock securing the table game drop box to the gaming table, the key to which must be different from the keys to the locks securing the contents of the table game drop box; A slot opening through which currency, value chips, or poker rake chips for nonbanking games, other table game wagering instruments approved by the Commission, and required instruments can be inserted into it; A mechanical device that automatically closes and locks the slot opening upon removal of the table game drop box from the gaming table; and Permanently imprinted or impressed thereon, and clearly visible to surveillance, either: A number corresponding to a unique permanent number on the gaming table to which the table game drop box is attached and at least one letter indicating the type of game; and The word “emergency”. In addition to the requirements of §E(2)(e) of this regulation, a table game drop box may also be identified by a bar code label that is securely affixed to the table game drop box and shall be: At a minimum, encoded with the information required under §E(2)(e) of this regulation; and Prepared in accordance with the facility operator’s approved internal controls. The security department shall control the key used to release a table game drop box from a table game in a manual key box or an automated key tracking system. Immediately prior to the commencement of the table game count process, the security department may issue its release key to the count room supervisor for the purpose of resetting the release mechanism on empty table game drop boxes; A key transferred by the security department shall be immediately returned after the conclusion of the table game drop box count; In its internal controls, a facility operator shall establish sign-in and sign-out procedures governing key transfers and control of a key during breaks taken by count room personnel; and If an automated key tracking system is used, a facility operator shall require dual access from the security department and accounting department to obtain keys. The keys to the table game drop box locks required under §E(2)(a) of this regulation shall be controlled by the accounting department. Before using a table game drop box labeled “Emergency” for a table game, a facility manager shall: Obtain verbal approval of Commission compliance personnel; and Temporarily mark the emergency table game drop box with the number of the gaming table and at least one letter indicating the game type. At least 30 days before video lottery terminal or table game operations are to commence, a facility operator shall submit to the Commission in writing a drop schedule setting forth: Specific pick-up days and times for collection of cash storage and table game drop boxes and requirements that: Cash storage boxes may not be commingled with table game drop boxes; Unless a drop box is from a table game pit that was never opened for gaming on that gaming day, table game drop boxes shall be collected once each gaming day; and The facility operator notify the Commission by telephone and in writing 1 hour in advance of changes to the table game drop box collection schedule required under §A(1)(b) of this regulation. Specifications as to what areas of the gaming floor will be covered on each pick-up day; and Specific transportation routes to be utilized from the gaming floor to the count room on each pick-up day. A facility operator shall notify the Commission: In writing, of a permanent change in the drop schedule including a pick-up day or time, area of the floor to be dropped, or transportation route; and Prior to any temporary deviation from the drop schedule. A facility operator shall make readily available to the Commission: An access control matrix indicating which employee job descriptions are authorized to participate in the cash storage and table game drop box collection process; and A list of employees, with license numbers, who are authorized to participate in the cash storage and table game drop box collection process. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the collection of cash storage and table game drop boxes. A facility operator’s internal controls shall: Detail the actual procedures to be performed and documentation to be generated by drop team employees collecting cash storage and table game drop boxes: In accordance with the drop schedule; and On an emergency basis; and Require: Cash storage and table game drop boxes to be transported directly to, and secured in: The count room; or A trolley storage area approved by the Commission under COMAR 36.03.11; The cash storage and table game drop box collection process to involve the participation of at least three employees, at least one of whom is an employee of the: Security department; and Accounting department; Prior to the movement of a trolley containing cash storage boxes from the gaming floor into the count room, an accounting department supervisor to verify that the number of cash storage boxes being transported from the gaming floor equals the number of cash storage boxes scheduled for collection that day; Prior to the movement of a trolley containing table game drop boxes from the gaming floor into the count room, an accounting department supervisor or floorperson or above to verify that the number of table game drop boxes being transported from the gaming floor equals the number of table game drop boxes scheduled for collection; and Prior to changing the type of table game offered, or removing a video lottery terminal or table game from the gaming floor, that an emergency drop shall be conducted. A facility operator shall transport cash storage and table game drop boxes in an enclosed trolley secured by one lock that has a key which is controlled by the security department. A facility operator shall store cash storage and table game drop boxes not attached to a bill validator, including emergency cash storage and table game drop boxes that are not actively in use: In the count room in an area approved by the Commission; In a trolley storage area approved by the Commission under COMAR 36.03.11; or In another location at the facility approved by the Commission. The cabinet or trolley used for storage under §G of this regulation shall be secured by one lock that has a key which is controlled by the security department in: A manual key box; or An automated key tracking system. Immediately prior to the commencement of the count process, the security department may issue its key to the storage cabinet or trolley required under §G of this regulation to a count room supervisor for the purpose of allowing count room personnel to gain access to the cash storage or table game drop boxes to be counted. A trolley storage area utilized to store cash storage or table game drop boxes prior to the count process shall meet the design standards for a count room under Regulation .44 of this chapter. Except for security officers, the drop and count team members assigned to the collection of cash storage or table game drop boxes shall wear a one-piece, pocketless jumpsuit. A facility operator shall have a count room designated, designed, and used for counting the contents of cash storage and table game drop boxes at a location approved by the Commission. A count room shall conform to the following standards: Be constructed of materials and have an interior design which provides maximum security over the assets stored, and the activities conducted in, the room; Meet the surveillance requirements of Regulation .11 of this chapter including audio coverage of the count process; and Be constructed with doors equipped with: An alarm system which tracks all ingress to and egress from the room and: Directly alerts the security department; or Directly, or through a documented communications protocol, alerts the surveillance department; and A locking mechanism with key backup, or a key that is: Different from the key to any other door to the count room; Different from the keys to the locks securing each cash storage and table game drop box; and Controlled by the security department or the accounting department. A facility operator shall install in its count room a table constructed of clear glass or similar transparent material to be used for the emptying, counting, and recording of the contents of cash storage and table game drop boxes. Count Schedule. At least 30 days before video lottery terminal or table game operations are to commence, a facility operator shall submit to the Commission a count schedule setting forth the specific times during which cash storage and table game drop boxes are to be counted and recorded. Notifications. A facility operator shall: Notify the Commission in writing of any permanent change in the count schedule; and Notify the Commission of any temporary deviation from the count schedule. Count Frequency. A facility operator shall count the contents of each cash storage box at least once every 7 days unless an alternative count schedule is submitted in writing to and approved in writing by the Commission. A facility operator shall count the contents of each table game drop box at least once each gaming day unless an alternative count schedule is submitted to, and approved in writing by, the Commission. Unless no gaming is conducted or otherwise offered at the video lottery facility, a facility operator shall count the contents of each table game drop box at least once each gaming day. The following shall be counted and recorded separately: Table game drop boxes from banking games; and Table game drop boxes from nonbanking games. Procedures. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the counting and recording of cash storage and table game drop boxes. Internal Controls. A facility operator’s internal controls shall: Detail all hardware, software, and related equipment utilized by the facility operator to conduct the count; Detail the actual procedures to be performed and documentation to be generated by: Count team employees conducting the counting process; and The main bank cashier in verifying and accepting the count; Require computerized equipment utilized to count and strap currency, gaming tickets, and promotional play instruments to: Conduct two separate counts; If the separate counts are not in agreement, document the discrepancy; Be capable of determining the amount of a gaming ticket or promotional play instrument by independently examining information printed on the gaming ticket or promotional play instrument and: Calculating the amount internally; or Obtaining the amount directly from a gaming ticket system or promotional play system in a secure manner; and If a gaming ticket system or promotional play system is utilized to obtain the amount of a gaming ticket or promotional play instrument, require the system to perform a calculation or integrity check to ensure that the amount of the gaming ticket or promotional play instrument has not been altered in the system in any manner since the time of issuance; Require a count room employee to: Wear a one-piece, pocketless garment; Carry only a handbag or other container constructed of transparent material; and Remove the count room employee’s hands from, or return them to, a position on or above the count table or counting equipment only after holding the backs and palms of the hands straight out and exposing them to the view of other employees of the count team and a surveillance camera; and Prior to the commencement of the count, require a count room employee to notify the surveillance department and receive confirmation that recording of the count process has commenced. Table Game Drop Box Count Requirements. The Commission may require that the table game drop box be conducted in the presence of a Commission compliance representative. After the contents of each table game drop box from a banking table game are counted, a member of the count team shall record, on a three-part Daily Banking Table Game Count Report or electronic equivalent prepared on a computer system, the following: Value of each denomination of currency counted; Total value of all denominations of currency counted; Gaming date of the items being recorded; Total number of banking table game drop boxes opened and counted; and Current date. After the contents of each table game drop box from a nonbanking table game are counted, a member of the count team shall record the following on a three-part Daily Nonbanking Table Game Count Report or electronic equivalent prepared on a computer system: Value of poker rake chips counted; Value of value chips counted; Total value of poker rake chips and value chips counted; Gaming date of the items being recorded; Total number of nonbanking table game drop boxes opened and counted; and Current date. After the preparation of the Daily Banking Table Game Count Report and the Daily Nonbanking Table Game Count Report, the count team members and the count room supervisor shall sign the reports attesting to the accuracy of the information recorded thereon. After the contents of all table game drop boxes have been counted, all cash, value chips, and poker rake chips shall be presented in the count room by a count team member to a main bank cashier or cage supervisor who, prior to having access to the information recorded on the Daily Banking Table Game Count Report and Daily Nonbanking Table Game Count Report, and in the presence of the count team members and, if required, a Commission compliance representative, shall recount the currency, value chips, and poker rake chips as follows: The main bank cashier or cage supervisor may bulk count all strapped currency; The Commission compliance representative may direct that currency straps be recounted by the main bank cashier or cage supervisor if a discrepancy is discovered during the initial bulk recount; and All partial straps, loose currency, mutilated or torn currency, value chips, and poker rake chips shall be recounted by the main bank cashier or cage supervisor. Upon completion of the recount, the main bank cashier or cage supervisor shall attest to the accuracy of the count by signature on the Daily Banking Table Game Count Report and Daily Nonbanking Table Game Count Report. The Daily Banking Table Game Count Report and the Daily Nonbanking Table Game Count Report shall be distributed as follows: Immediately after leaving the count room, the count room supervisor shall deliver the original to revenue audit or place it in a secure locked box controlled by revenue audit; The Commission compliance representative who observed the count shall retain the second copy; and The cage supervisor or main bank cashier shall retain the third copy. Immediately after leaving the count room, the count room supervisor shall deliver any additional documents contained in the table game drop boxes to revenue audit or place the documents in a secured locked box controlled by revenue audit, including: Requests for fills; Fill slips; Requests for credit; Credit slips; Issuance copies of counter checks; and Table inventory slips. A count room employee shall conduct a thorough inspection of the count room, and all counting equipment in the count room, to verify that no currency, chips, checks, vouchers, coupons, or other documentation remains in the room. A gaming ticket or promotional play instrument accepted by a cash storage or table game drop box shall be counted and included in the calculation of proceeds without regard to the validity of the gaming ticket or promotional play instrument. A promotional play instrument which is not cancelled upon acceptance or during the count process shall be cancelled prior to the conclusion of the count. A facility operator shall report in writing to the Commission within 72 hours of the count: Any variance between the actual count of cash, gaming tickets, and promotional play instruments in a cash storage box as determined in the count room and the amount for that particular cash storage box recorded on the: Facility operator’s video lottery terminal; and If the data has been made available to the facility operator, the central monitor and control system; The reason for the variance; and Corrective action taken or adjustments made. A facility operator shall construct all signs required under this regulation using a color scheme and font size reasonably expected to produce a sign which is readily visible to and readable by an individual entering the facility. A facility operator shall post signs containing the following messages in a conspicuous location not more than 20 feet from each customer entrance to the facility: “An individual, including an off-duty officer or agent of a local, state or federal law enforcement agency, may not possess a weapon or other device designed to be used to inflict pain or cause injury in (name of facility) without the prior written approval of the Maryland State Lottery and Gaming Control Commission.” A facility operator shall attempt to timely resolve a dispute with a player concerning operation of a video lottery terminal, table game, or payment of alleged winnings. A facility operator who is unable to satisfactorily resolve a dispute with a player within 3 days of notice of the dispute shall notify the Commission of the dispute. On receipt of notice by the facility operator of the dispute, the Commission shall provide the player with a Commission player complaint form together with instructions for completing and submitting the form. The Commission shall investigate a complaint submitted to the Commission and notify the player and facility operator of its determination. The Commission may provide a player with a complaint form at any time upon request. Except as otherwise provided in this regulation, an individual may not possess in a facility: A firearm as defined in Public Safety Article, §5-101, Annotated Code of Maryland; An electronic control device as defined in Criminal Law Article, §4-109, Annotated Code of Maryland; A dangerous weapon as defined in Criminal Law Article, §4-101, Annotated Code of Maryland; or Any other device or object designed to be used to inflict pain or cause injury. The prohibition in §A of this regulation: Applies to all employees and contractors of the facility operator including security department employees; and Does not apply to: An on-duty officer or agent of a local, State or federal law enforcement agency having proper jurisdiction over the facility when the officer or agent is acting in an official capacity; An individual who is employed by an armored car company or other entity that is under contract with the facility to transport cash or a cash equivalent; or An individual authorized by the Commission to possess a weapon or device identified in §A of this regulation. An individual requesting Commission authorization to possess a weapon identified in §A of this regulation in a facility shall submit to the Commission in writing a request documenting: A compelling need to possess a weapon in the facility; That the individual is lawfully in possession of the weapon under applicable federal and State law; and That the individual has received training in the possession and use of the weapon. Except as otherwise provided in this regulation: A supervisory video lottery employee of a facility is prohibited from soliciting or accepting a tip or gratuity directly from a player; A video lottery employee is prohibited from soliciting a tip or gratuity from a player; and A facility operator may permit an employee who is authorized to accept a gratuity from a player to accept a gaming ticket if the gaming ticket is redeemed: At the cashiers’ cage; and With approval of the employee’s department supervisor, if the amount of the gaming ticket exceeds $100. At least 30 days before table game operations are to commence, a facility operator shall submit to the Commission for approval internal controls relating to the acceptance of tips or gratuities by dealers at banking and nonbanking table games. Except as provided in §G of this regulation, a dealer shall immediately deposit all tips and gratuities into a transparent locked box reserved for tips and gratuities, and: If roulette chips are received as a tips or gratuity, the marker button indicating the specific value of the roulette chips may not be removed until after the dealer, in the presence of a floorperson or above, has converted the roulette chips into value chips which shall then be immediately deposited in the transparent locked box reserved for tips and gratuities; Tip and gratuities shall be: Collected and accounted for at least once each gaming day; and Placed in a common pool for distribution pro rata among all dealers in accordance with §E of this regulation; and A facility operator may include dealer supervisors in the common pool described in §C(3) of this regulation. Upon receipt of a tip or gratuity from a player, the dealer shall extend the dealer’s arm in an overt motion and deposit the tip or gratuity in the locked box reserved for tips and gratuities. Tips and gratuities placed in a common pool shall be distributed pro rata among the dealers in the pool based on the number of hours worked and based on any standards for distribution established by a facility operator, which may include: Hours of vacation time, personal leave time, or any other authorized leave of absence in the number of hours worked by each employee; and Different full-time or part-time employees. A distribution of tips and gratuities from a common tip pool shall occur no more than once every 7 calendar days. Notwithstanding the requirements in §C of this regulation, a facility operator that offers the game of poker: May establish a separate common pool for tips and gratuities received by its poker dealers; or If it allows a poker dealer to retain the poker dealer’s own tips and gratuities: Shall require tips and gratuities received by a poker dealer to be deposited in a transparent locked box assigned to the particular dealer; and Shall require that the transparent locked box be moved from table to table with the dealer. If a facility operator elects to follow the requirements of §G(2) of this regulation, at the end of the poker dealer's shift: The dealer shall take the transparent locked box assigned to the dealer to a cage cashier; and The cage cashier shall open the container and count the tips and gratuities in the presence of the poker dealer, and record the total amount of the tips and gratuities received by the dealer, and: Return the tips and gratuities to the dealer; or Retain all or a portion of the tips and gratuities for inclusion in the dealer's paycheck. If a facility operator elects to follow the requirements of §G(2) of this regulation and has established a gaming industry tip and compliance agreement, §H of this regulation does not apply. A facility operator shall specify in its internal controls how dealer tips and gratuities will be reported to the Internal Revenue Service. A facility operator may establish an off-site customer service location for a player to: Establish a customer deposit account and make a deposit under Regulation .23 of this chapter; and Pay a counter check under Regulation .28 of this chapter. A facility operator that uses an off-site customer service location shall have internal controls that require: Establishment of a compliance program required under COMAR 36.03.10.07.Q, that is updated to include the off-site customer service location operation; Identification of the: Address of the off-site customer service location; Date the off-site customer service location is expected to open; Name and contact information of the off-site customer service location manager; Off-site customer service location telephone number(s); Off-site customer service location normal hours of operation; and An organization chart listing all positions that will have responsibility over Maryland operations related to the off-site customer service location; Commencement of an off-site customer service location operation only after receiving Commission approval; An employee independent of the off-site customer service location operation and the cage department to submit a monthly listing and reconciliation of all outstanding credit instruments that have been transferred to branch offices to the credit issuances and payments recorded by the cage; An Off-Site Customer Service Location Report to be maintained by the licensee and updated quarterly to include the following for each off-site customer service location: Address and telephone numbers; If applicable, opening and closing date; Name of the off-site customer service location manager; Off-site customer service location normal hours of operation; and Year-to-date and previous calendar year dollar amounts of the following Maryland specific transactions received or disbursed, and controlled by, the off-site customer service location: Cash deposits, noncash deposits, and total deposits; Cash withdrawals, noncash withdrawals, and total withdrawals; and Cash payments on credit instruments, noncash payments on credit instruments, and total payments on credit instruments; The Off-Site Customer Service Location Report to be submitted to the Commission no later than 30 days after the end of the calendar year; An off-site customer service location to maintain the following records for Maryland video lottery operations: A separate monthly log, by day, of payments received on credit instruments that includes: Player’s name on an account to which a payment is being applied; Name of individual making a payment; Date of payment; Amount of payment; and Whether a payment was by cash, check or other financial instrument; A separate monthly log, by day, of all funds deposited and withdrawn that includes: Player’s name on an account to which the funds are being applied; Name of the individual making the payment; Date of deposit or withdrawal; Amount of deposit or withdrawal; Whether the transfer of funds was made by cash, check, or other financial instrument; and New ending account balance; and Monthly record of currency exchange rate gains and losses and money changer fees in conjunction with a player’s payment on a credit instrument that includes: Player’s name; Date of receipt; and Amount of payment; and Any costs associated with the Commission’s audit or review of an off-site customer service location operation to be reimbursed by the licensee to the Commission. An off-site customer service location may not open until the Commission approves: The internal controls described in §B of this regulation; and An activation request submitted by the facility to the Commission. A facility operator shall offer players the opportunity to donate to the Maryland Veterans Trust Fund by providing at least one donation box or container that is: Clearly marked as accepting donations for the Maryland Veterans Trust Fund; Equipped with an opening that is large enough for players to donate coins, cash, gaming chips, gaming tickets, or other items that are redeemable for cash at the facility; Capable of being locked; Securely attached to a stationary object or otherwise secured to prevent unauthorized removal of the box or container; and Located near an exit, cage, customer service window or kiosk, or in any other part of the facility that experiences high player traffic. A facility operator shall develop and include in the internal controls submitted to and approved under Regulation .05 of this chapter procedures and controls addressing the donation and security of items described in §A(2) of this regulation as donations to the Maryland Veterans Trust Fund. An item that was deposited into a Maryland Veterans Trust Fund box or container described in §A of this regulation may not be distributed as an unclaimed video lottery terminal jackpot under COMAR 36.03.01.03. A facility operator shall submit terms and conditions of each promotion or tournament to the Commission no later than 14 days before the planned start of the promotion or tournament. Submission shall include: A description of the promotion or tournament; The dates and times of the promotion or tournament; The participation requirements for the promotion or tournament; If applicable, the procedure for a claim or to redeem the promotional offer; Registration procedures; Limitations on participation; The gambling assistance message required by COMAR 36.03.06.03; and Any other information the Commission requires. Family Law Article, §10-113.1; State Government Article, §§ 9-1A- 01, 9-1A- 02, 9-1A- 04, and 9-1A-24, Annotated Code of Maryland Effective date: Regulations .01— .49 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01— .49 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347) Regulation .02D amended effective October 23, 2017 (44:21 Md. R. 985) Regulation .03C amended effective October 19, 2020 (47:21 Md. R. 905) Regulation .07 amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .07B amended effective July 7, 2025 (52:13 Md. R. 657) Regulation .07F amended effective August 17, 2015 (42:16 Md. R. 1056) Regulation .07F, L amended effective September 26, 2016 (43:19 Md. R. 1073) Regulation .07N, P amended effective November 14, 2022 (49:23 Md. R. 997) Regulation .08 amended effective January 7, 2016 (42:26 Md. R. 1597) Regulation .08F amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .09 amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .10 amended effective January 7, 2016 (42:26 Md. R. 1597) Regulation .11C amended effective October 23, 2017 (44:21 Md. R. 985) Regulation .11D amended effective January 2, 2017 (43:26 Md. R 1450) Regulation .11J amended effective April 27, 2026 (53:8 Md. R. 356) Regulation .12C amended effective July 7, 2025 (52:13 Md. R. 657); April 27, 2026 (53:8 Md. R. 356) Regulation .14C amended effective July 7, 2025 (52:13 Md. R. 657) Regulation .16 amended effective October 19, 2020 (47:21 Md. R. 905) Regulation .16B amended effective January 7, 2016 (42:26 Md. R. 1597) Regulation .16C amended effective May 26, 2014 (41:10 Md. R. 566) Regulation .16C, D amended effective October 22, 2018 (45:21 Md. R. 976); November 14, 2022 (49:23 Md. R. 997) Regulation .16D amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .18B amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .19E amended effective October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976) Regulation .20 amended effective October 22, 2018 (45:21 Md. R. 976) Regulation .20F, I amended effective March 30, 2015 (42:6 Md. R. 515); October 23, 2017 (44:21 Md. R. 985) Regulation .20F, G, I amended effective September 26, 2016 (43:19 Md. R. 1073) Regulation .20F amended effective October 7, 2019 (46:20 Md. R. 848); September 6, 2021 (48:18 Md. R. 695) Regulation .20F amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .20K adopted effective October 19, 2020 (47:21 Md. R. 905) Regulation .20K amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); July 7, 2025 (52:13 Md, R. 657) Regulation .21 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .21D amended effective January 7, 2016 (42:26 Md. R. 1597) Regulation .23E amended effective March 13, 2017 (44:5 Md. R. 294) Regulation .24 amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .24D, I amended effective September 26, 2016 (43:19 Md. R. 1073) Regulation .24P, Q amended effective October 23, 2017 (44:21 Md. R. 985) Regulation .26C amended effective March 30, 2015 (42:6 Md. R. 515); September 26, 2016 (43:19 Md. R. 1073); October 22, 2018 (45:21 Md. R. 976) Regulation .26D adopted effective October 7, 2019 (46:20 Md. R. 848) Regulation .27 amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .27C amended effective September 26, 2016 (43:19 Md. R. 1073); October 22, 2018 (45:21 Md. R. 976) Regulation .27D amended effective October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976) Regulation .27E adopted effective October 7, 2019 (46:20 Md. R. 848) Regulation .28 amended effective March 30, 2015 (42:6 Md. R. 515); October 19, 2020 (47:21 Md. R. 905) Regulation .28C amended effective January 7, 2016 (42:26 Md. R. 1597); October 23, 2017 (44:21 Md. R. 985); October 7, 2019 (46:20 Md. R. 848); September 6, 2021 (48:18 Md. R. 695); July 7, 2025 (52:13 Md. R. 657) Regulation .28C, G amended effective October 22, 2018 (45:21 Md. R. 976) Regulation .28H amended effective March 13, 2017 (44:5 Md. R. 294) Regulation .28J adopted effective October 7, 2019 (46:20 Md. R. 848) Regulation .29A amended as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); amended permanently effective February 3, 2014 (41:2 Md. R. 93) Regulation .29A, D amended effective October 22, 2018 (45:21 Md. R. 976) Regulation .30 amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .31B amended effective October 22, 2018 (45:21 Md. R. 976) Regulation .32 amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .34D amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .34E adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .35B amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .36D amended effective September 26, 2016 (43:19 Md. R. 1073) Regulation .36F amended effective December 12, 2013 (40:24 Md. R. 2018) Regulation .37B amended effective November 14, 2022 (49:23 Md. R. 997) Regulation .38 amended effective October 23, 2017 (44:21 Md. R. 985) Regulation .38C amended effective August 17, 2015 (42:16 Md. R. 1056); May 25, 2026 (53:10 Md. R. 459) Regulation .38D amended effective March 30, 2015 (42:6 Md. R. 515); October 22, 2018 (45:21 Md. R. 976) Regulation .38F amended effective January 7, 2016 (42:26 Md. R. 1597) Regulation .38G amended effective October 22, 2018 (45:21 Md. R. 976); October 7, 2019 (46:20 Md. R. 848); September 6, 2021 (48:18 Md. R. 695) Regulation .38H adopted effective July 7, 2025 (52:13 Md. R. 657) Regulation .41C amended effective March 30, 2015 (42:6 Md. R. 515); October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976) Regulation .42A, E amended effective March 30, 2015 (42:6 Md. R. 515); January 7, 2016 (42:26 Md. R. 1597) Regulation .42E amended effective October 23, 2017 (44:21 Md. R. 985) Regulation .43 amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .43A amended effective October 22, 2018 (45:21 Md. R. 976) Regulation .43B, G amended effective January 7, 2016 (42:26 Md. R. 1597) Regulation .43K adopted effective April 27, 2026 (53:8 Md. R. 356) Regulation .44A amended effective September 26, 2016 (43:19 Md. R. 1073) Regulation .45 amended effective September 26, 2016 (43:19 Md. R. 1073) Regulation .45C amended effective October 22, 2018 (45:21 Md. R. 976) Regulation .49A amended effective March 30, 2015 (42:6 Md. R. 515) Regulation .49 amended effective September 26, 2016 (43:19 Md. R. 1073) Regulation .49D amended effective December 12, 2013 (40:24 Md. R. 2018) Regulation .50 adopted effective March 13, 2017 (44:5 Md. R. 294) Regulation .51 adopted effective October 23, 2017 (44:21 Md. R. 985) Regulation .52 adopted effective July 7, 2025 (52:13 Md. R. 657) The terms defined in State Government Article, §9-1A-01, Annotated Code of Maryland, have the same meanings in this chapter. A facility operator may not offer fewer hours of operation than provided for in State law without the prior written approval of the Commission. A facility operator that has received Commission approval to offer fewer hours of operation under §A of this regulation may, upon written notice to the Commission, extend its hours of operation up to and including those allowable under State law. A facility operator shall, at its own expense, construct its facility in accordance with specifications established by the Commission, including: Computer space for the central monitor and control system contractor that is: Equipped with heating, ventilation, and air conditioning; Supplied with power including an uninterruptible backup power supply; Secured with a key or alternative locking mechanism maintained and controlled by representatives of the Commission and central monitor and control system operator in accordance with this subtitle; Equipped with a door that, when opened, audibly signals the facility operator’s surveillance monitoring room; and Covered by a surveillance system enabled to record all entry and exit to the computer space and activity in the area; Equipment storage space for the central monitor and control system contractor; Equipment storage and repair space for video lottery terminal contractors; Cable infrastructure access to the gaming floor; All necessary wiring for the gaming floor, except that wiring which the Commission requires to be installed by a Commission contractor; A base and high backed seat for each video lottery terminal; At least 400 square feet of office space for use by Commission staff that is located immediately adjacent to the gaming floor and is equipped with: Partitioned work space, computers, telephones, copy capability, and supplies sufficient to meet the Commission’s data processing and related needs; Computer terminals permitting read only access by authorized Commission staff to any computerized slot monitoring system, casino management system, or player tracking system used by the facility operator; and Keys or alternative locking mechanisms which are under the exclusive control of the Commission; A surveillance system approved in writing by the Commission that is: Configured to provide surveillance of all video lottery terminal and table game related activities within the facility in accordance with standards established by the Commission; Enabled with a digital video recording format in accordance with standards established by the Commission; and Equipped with a monitoring station for the exclusive use of the Commission which is configured with full camera control capability over the surveillance system and is capable of overriding the camera control capability of the facility operator; An alarm system connected to all emergency exits from the gaming floor which: Produces a distinguishable warning sound that is discernible in the vicinity of an exit when the emergency door is opened; and Requires deactivation and reset by means of a key or alternative locking mechanism maintained and controlled by the security department; An area for the detention of individuals taken into custody by any law enforcement agency that has jurisdiction over the facility; Adequate space for use by the Commission in connection with conducting background investigations of applicants or licensees; Any signage required by the Commission; Communication systems capable of effecting timely communication between the facility and the Commission, law enforcement exercising proper jurisdiction over the facility, and emergency first responders; and Any other equipment or design feature required by the Commission. State Lottery Games. A facility operator shall provide at least two locations at the facility for the sale of State Lottery games that are offered by or through the Commission. State Lottery game sales locations shall be situated as near as practicable to a cashiers’ cage. Surveillance System. In addition to the surveillance system requirements in Regulation .03 of this chapter and COMAR 36.03.10, a facility operator that offers table games shall have a surveillance system that includes: Light sensitive cameras with lenses of sufficient magnification to allow the certificate holder to clandestinely monitor in detail: The gaming conducted at each gaming table in the licensed facility with sufficient clarity and coverage to simultaneously: Identify patrons and dealers; and View the table and determine the configuration of wagers, card, dice and tile values and game outcomes; The movement of cash, gaming chips, and plaques, tip boxes, and drop boxes within the facility; and Any other activity or areas designated by the Commission; and Stationary cameras dedicated to each table game offered by the facility, which shall be: Except for Craps, Baccarat, Roulette and Big Six Wheel, for each table game, at least one stationary camera; For a Craps table, at least two stationary cameras, with one camera covering each end of the table; For a Baccarat table: That is 72 inches or longer, at least two stationary cameras, with one camera covering each end of the table; or That is less than 72 inches, at least one stationary camera covering the table; For a Roulette table, at least two stationary cameras, with one camera covering the Roulette wheel and one camera covering the Roulette table layout; For a Big Six Wheel, at least two stationary cameras, with one camera covering the Big Six Wheel and one camera covering the Big Six Wheel table layout; Additional cameras as required by the Commission, which may include cameras with 360-degree pan, tilt, and zoom capabilities; and Single stationary cameras that: Are capable of clearly identifying the entire table layout, conduct, and outcome of the game; and May be used by a facility operator in lieu of cameras identified in §A(2)(b)—(e) of this regulation. Required Recordings. A facility’s surveillance system must continuously record transmissions from cameras used to observe the: Gaming conducted at table games; Collection of drop boxes and tip boxes; Distribution of cards, dice, and tiles to gaming pits; Inspection of cards, dice, and tiles in the gaming pits and at the gaming tables; Retrieval of cards, dice, and tiles from the gaming pits at the end of the gaming day; and Delivery of cards, dice, and tiles to the location designated and approved by the Commission for inspection, cancellation, destruction, or, if applicable, packaging for reuse. Retention. The surveillance recordings required under §B of this regulation shall be retained for a minimum of 14 days. A surveillance recording of suspicious activity, suspected or alleged regulatory violations, or suspected or alleged criminal activity shall be retained for a minimum of 30 days. A surveillance recording shall be made available for review upon request by law enforcement. Commission approval of monitoring rooms. Prior to the commencement of table game operations, a facility shall submit to the Commission a revised minimum staffing submission for the facility operator’s surveillance monitor rooms. The minimum staffing submission must consider the size and layout of the licensed facility as well as the number of table games and must at all times provide for surveillance of activities inside and outside the licensed facility. A facility operator may not implement a surveillance plan, or an amendment to a surveillance plan or minimum staffing submission, without prior Commission approval. At least 60 days before video lottery terminal or table game operations are to commence, a facility operator shall submit a floor plan depicting its gaming floor and all restricted areas to the Commission for review and written approval. A facility operator may not commence operations until its gaming floor plan is approved in writing by the Commission. A gaming floor plan that a facility operator submits to the Commission shall: Be drawn to 1/8 inch scale, unless another scale is approved by the Commission; Be certified by an architect licensed to practice in Maryland; Depict the gaming floor with a notation as to: Total square feet; Total square feet utilized for the placement of video lottery terminals and table games; Total square feet reserved for future placement of video lottery terminals and table games; Each video lottery terminal or table game location, identified by number and notation as to whether it is proposed for present use or reserved for future use; Number of video lottery terminal and table game locations proposed for use on the gaming floor; Number of video lottery terminal and table game locations reserved for future use; Each seat on the gaming floor; Perimeter of the gaming floor; A clearly delineated route for an individual who is not allowed to play video lottery terminals or table games to bypass the gaming floor; Each automated bill breaker, gaming ticket redemption, coupon redemption, and jackpot payout machine; and Each security department zone, including a notation as to whether it is a fixed or roving post; Depict all restricted areas within the facility with a notation as to: Cashiers' cage, any satellite cashiers' cage, and ancillary offices, inclusive of each cashiers' cage window location and location number; Computer space allocated to the central monitor and control system; Count rooms and any trolley storage areas; An area designated for the storage or repair of equipment or video lottery terminals or table game equipment; Information technology department operations centers; Progressive controller locations; Surveillance monitoring room; Vault and armored car bay locations; and Any area designated as restricted by the facility operator in its Commission-approved internal controls; Depict each surveillance camera with a notation as to camera type and location number; and Depict each automated teller machine installed in accordance with COMAR 36.03.03.07. If a gaming floor includes an outdoor area, in addition to the requirements of §C of this regulation an operator shall submit to the Commission a gaming floor plan that includes: The amenities that the operator intends to offer in the outdoor area; An affidavit from the chief executive officer attesting that the outdoor area and its intended use meet all applicable local and State requirements; and A plan for player and equipment safety during inclement weather. A facility operator may not implement any change to its approved gaming floor plan without the prior written approval of Agency staff. A facility operator may not commence video lottery operations until the Commission has issued an operation license. The operation license issued by the Commission shall specify: Date and time at which operations may commence; Maximum square footage of gaming floor; and Maximum number of video lottery terminals which may be operated by the facility operator under the operation license. The initial 15-year term of an operation license shall commence with the date the Commission issues an operation license. The Commission may issue an operation license subject to conditions. The Commission may issue an operation license after determining that: The facility operator’s proposed hours of operation comply with State Government Article, §9-1A-23, Annotated Code of Maryland, and Regulation .02 of this chapter; The facility complies with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and Regulation .03 of this chapter; All video lottery terminals and associated equipment have been tested and comply with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and any standards established by the Commission; The gaming floor plan complies with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and Regulation .05 of this chapter; The facility operator’s internal controls comply with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and COMAR 36.03.10; The facility operator is prepared to implement the internal controls, surveillance, and security procedures that are necessary to ensure that the operation of the video lottery terminals and video lottery facility is conducted safely and legally; The facility operator’s employees are: Licensed and registered with the Commission; and Trained in the performance of their responsibilities; The facility is prepared in all respects to receive the public; The facility operator has complied with any additional pre-opening conditions imposed by the Commission; and The facility operator has successfully completed a test period. A facility operator shall commence operation of video lottery terminals in a permanent facility within 18 months after the date the Commission issues an operation license. The permanent facility must be located at the location for which the Video Lottery Facility Location Commission awarded a video lottery operation license. The Commission may approve an extension of time for the commencement of operations if: A facility operator submits a written request for an extension; and The Commission determines that extenuating circumstances exist that are beyond the control of the facility operator which have prevented the facility operator from complying with §A of this regulation. The Commission may: Approve an extension of 6 months to comply with §A of this regulation; and Not grant more than two extensions to a facility operator. If a facility operator fails to comply with the requirements of this regulation, its operation license shall be revoked and shall automatically revert to the State. The Commission may issue an operation license for a temporary facility. A temporary facility must comply with the requirements this chapter. Upon the written submission of a facility operator, the Commission may authorize a deviation from the requirements of Regulation .05 of this chapter when it issues an operation license for a temporary facility. A facility shall be operational in a permanent facility no later than 30 months after the Commission issues an operation license. If the Commission issues an operation license for a temporary facility, the facility operator shall be responsible for all costs associated with the transition from a temporary facility to a permanent facility, including the cost of relocating the: Central control monitor and control computer system; Video lottery terminals; and Associated equipment. §§9-1A-02, 9-1A-04, 9-1A-11, and 9-1A-23, Annotated Code of Maryland Effective date: Regulations .01—.08 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01—.08 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347) Regulation .04A amended effective September 26, 2016 (43:19 Md. R. 1073); April 27, 2026 (53:8 Md. R. 356) Regulation .04C amended effective January 7, 2016 (42:26 Md. R. 1597) Regulation .05 amended effective August 17, 2015 (42:16 Md. R. 1056) Regulation .05C, E amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) In this chapter, the following terms have the meanings indicated. Terms Defined. Transport; Transportation. “Transport” or “transportation” means any shipping, transfer, delivery, or other movement of a video lottery terminal or table game equipment into or out of the State, or between facilities within the State. “Transport” or “transportation” does not include the movement of a video lottery facility or table game equipment within a facility. “Written notice” means information provided to the Commission in an electronic or written form or format designated by the Commission. A person who transports a video lottery terminal or table game equipment shall comply with applicable provisions of 15 U.S.C. §§1171—1178, commonly known as the Johnson Act. Unless otherwise directed by the Commission, a person shall submit a written notice to the Commission prior to transporting a video lottery terminal or table game equipment. A person proposing to transport a video lottery terminal or table game equipment shall submit to the Commission a written notice containing: Name and address of person initiating transportation; Reason for transportation; Method of transportation; Name of and address of carrier; Anticipated beginning and end dates of transportation; Name and address of destination; Name and address of manufacturer; Manufacturer's serial number; Model number; Description; and Any other information requested by the Commission. The person proposing to transport or transporting a video lottery terminal or table game equipment shall promptly provide the Commission with written notice of any changes to the information already submitted as required under §B of this regulation. A person transporting a video lottery terminal or table game equipment shall plainly and clearly label the package so that the name and address of the shipper and recipient, and the contents of the package, may be readily ascertained during an inspection of the outside of the package. After delivery of a video lottery terminal or table game equipment, the facility to which the terminal is delivered shall promptly provide the Commission with written notice that includes: Date video lottery terminal or table game equipment was received; Date video lottery terminal or table game equipment will be placed into operation; and Any other information requested by the Commission. Storage. If a video lottery terminal or table game equipment will not be placed into operation upon delivery to a facility, the facility shall provide the Commission with written notice that includes: Identification of the video lottery terminal or table game equipment; Reason for storage; Storage facility location; and Any other information requested by the Commission. A facility shall store a video lottery terminal or table game equipment only in a manner that the Commission has approved. The Commission shall maintain a register of each video lottery terminal and specified table game equipment placed in operation in the State. The table game equipment for which the Commission shall maintain a register under §A of this regulation is: Table games that contain an approved table layout; Automated table game shuffling devices; Table game progressive controllers; and Any other table game equipment specified by the Commission. For each video lottery terminal placed into operation, the Commission shall incorporate the video lottery terminal into the Commission's central monitoring system. For each piece of video lottery and table gaming equipment specified in §B of this regulation that is placed into operation, the Commission shall: Assign a registration control number; and Affix a Commission registration tag. A video lottery terminal or gaming table may not be transported out of the State unless the Commission: Approves the action; and If the video lottery terminal is being permanently removed from the State, removes the registration tag. The Commission may test video lottery terminals and associated equipment for: Accuracy; Compatibility with the central monitor and control system; and Any other function that the Commission determines may be necessary to validate the proper functionality and performance of the terminals and equipment. The Commission may test table game rules and table game equipment for: Accuracy; and Any other function the Commission determines is necessary to validate the proper functionality and performance of table game equipment. A facility shall obtain prior written Commission authorization before taking any of the following actions with respect to a video lottery terminal or table game equipment in its facility: Placing a video lottery terminal or table game into operation; Relocating a video lottery terminal or table game within the facility; Converting a game theme or table layout; Converting a play denomination on a video lottery terminal; Changing percentage payout; Changing an erasable programmable read only memory chip; Changing a jackpot lockup amount; Changing a configuration; Performing a substantial replacement of parts; Implementing any variation, composite, or new feature of a table game; or Performing any other action that materially alters or interrupts the operation of a video lottery terminal or table game. Before the Commission may authorize an action described in §A of this regulation, a facility shall submit to the Commission written notice of the request that includes: Description of proposed action; Location of action; Start and end dates and times; Estimated “go live” date for the video lottery terminal or table game; Approval of the manufacturer of the affected video lottery terminal or table game equipment; Approval of the operator of the central monitor and control system for video lottery terminals; and Any other information requested by the Commission. Notice of Changes. A facility shall promptly provide the Commission with written notice of any changes to the information already submitted under §A or B of this regulation. Commission Response to Request for Authorization. The Commission may impose additional requirements on the facility or the manufacturer before authorizing the action. The Commission may deny approval of the action. A facility shall notify the Commission if the action is not completed as approved by the Commission. State Government Article, §§9-1A-04, 9-1A-15, and 9-1A-21, Annotated Code of Maryland Effective date: Regulations .01—.06 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013 Regulations .01—.06 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)