Chapter 10. Video Lottery Facility Minimum Internal Control Standards

“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:

“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.

“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:

“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:

“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:

“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:

“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.

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:

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:

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.

Administrative controls and record keeping that document the authorization of transactions;

Accounting controls that provide reasonable assurance that:

Procedures and controls for ensuring:

Access controls which address, at a minimum:

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.

All mandatory departments required under Regulation .10E(6) of this chapter; and

The Commission’s on-site office.

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:

An opinion letter by an independent certified public accountant expressing an opinion as to:

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.

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.

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.

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.

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.

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 report identifying:

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.

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.

Any report required to be filed with the Securities and Exchange Commission including:

Any other report required to be filed with a domestic or foreign securities regulatory agency.

Resigns;

Is dismissed as the facility operator’s principal accountant; or

Is replaced by another independent certified public accountant as principal accountant.

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:

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.

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.

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:

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.

Ownership of the facility;

Internally initiated investigations and due diligence;

Personnel matters;

Signature cards of current employees; and

Destruction of documents including:

Identified for indefinite retention under §D of this regulation; or

Subject to an exemption under §F 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:

A minimum retention period of 30 days shall apply to:

A minimum retention period of 7 days shall apply to gaming tickets redeemed at a video lottery terminal or ticket redemption unit.

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.

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 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 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:

Separate complimentary services into the following categories:

Determine the cost of complimentary services provided to a player as follows:

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:

Be submitted:

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 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:

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:

The following mandatory departments and supervisors:

Individual based for employment purposes at the facility with no incompatible functions; or

Audit committee of:

Based for employment purposes at the facility; and

Individually and jointly accountable and responsible for the operation of the department.

No later than 5 days after the date of a vacancy, a facility operator shall notify the Commission in writing of:

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:

Light sensitive cameras enabled by:

A monitor room located in the facility:

Digital video recording capability equipped to:

Audio recording capability in the count room that is:

An access system which:

For a standard definition camera, 30 frames per second; or

For a high definition camera, 15 frames per second.

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.

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.

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:

Restrict or deny access to a recording or photograph.

A surveillance system meeting the requirements of Regulation .11 of this chapter including, at a minimum, details pertaining to:

Surveillance department operating procedures conforming to this regulation.

Coverage of all areas and transactions enumerated in Regulation .11 of this chapter;

Contingency plans addressing:

A surveillance incident log:

A surveillance room entry log:

That surveillance monitor room employees notify:

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.

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:

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.

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 security zone plan for the facility, employing fixed security posts and roving security officers designed to ensure:

Procedures and controls addressing:

A security department incident log:

A requirement that a facility operator notice the Commission on detection of:

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:

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.

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.

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.

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:

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:

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:

Submit audit reports to the Commission on a schedule specified by the Commission; and

Verify that:

Cashiers' cage;

Main bank;

Collection of cash storage boxes;

Cash count;

Revenue audit;

Operations department;

Key control; and

Table game operations.

Responsible gaming program;

Security department;

Currency transaction reporting;

Suspicious activity reporting;

Information technology controls;

Surveillance department; and

Player tracking system.

An individual on the list described under §B of this regulation;

A compliance agent of the Commission; and

Commission staff authorized by the Director.

All keys which access the segregated area where the central monitor and control system equipment resides to be maintained by representatives of the:

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:

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:

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 manually triggered silent alarm system connected:

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:

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.

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.

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:

Compute its reserve cash bankroll requirement based on a calendar year; and

Submit its computation to the Commission:

The cashiers' cage and any satellite cage to be physically segregated by personnel and function as follows:

Each general cashier and main bank cashier to prepare a cashiers’ count sheet on each shift:

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:

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:

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.

Facility operator; and

Person that:

Employment compensation; or

A payout in connection with gaming activity.

Except as provided under §C of this regulation, accept a check that is payable to an individual, including:

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.

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.

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:

Verified for signature authenticity by a general cashier who shall:

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:

In the aggregate do not exceed $250,000; and

Were issued to an individual as a payout in connection with gaming activity by:

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.

Facility operator; and

Person that:

Employment compensation; or

A payout in connection with gaming activity.

Except as provided under §C of this regulation, accept a check that is payable to an individual, including:

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.

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.

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:

Verified for signature authenticity by a general cashier who shall:

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:

In the aggregate do not exceed $500,000; and

Were issued to an individual as a payout in connection with gaming activity by:

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:

Require that a cashiers’ cage supervisor other than the cashiers’ cage employee who initially documented acceptance of the wire transfer or ACH transfer:

Document the procedures used to:

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:

Document the procedures used to:

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.

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:

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.

Require acceptance of customer deposits at:

Require preparation of a receipt documenting:

Provide for full or partial withdrawal of a customer deposit:

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.

Player submits a credit application in writing in accordance with this regulation;

Facility operator complies with the:

Credit is issued:

Player’s outstanding counter check balance does not at any time exceed the player’s authorized credit limit.

During the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02;

By mail; and

By electronic submission.

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:

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.

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.

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:

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 signature or authorization code of the employee authorizing the extension of credit.

Date and time of the request;

New limit requested by the player; and

Signature of the player.

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:

The increase:

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.

The increase:

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.

On receipt of:

Who has been inactive at the facility’s video lottery terminals and table games for more than 24 months.

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.

Identifying the employee positions authorized to extend credit or approve a change in a credit limit; and

Creation and maintenance of the credit file.

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:

May be performed telephonically if the facility operator:

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.

Verify the player’s current gaming related credit limits and outstanding balances with:

Document the player’s current gaming related credit limits and outstanding balances in the credit file by recording for each gaming related credit limit:

If applicable, document in the credit file that no gaming related credit limit or outstanding balance information is available on the player.

Verify the player’s outstanding indebtedness with a:

Document the player’s outstanding indebtedness in the credit file by recording:

Verify the player’s personal checking account information with:

Document the player’s personal checking account information by recording in the credit file:

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.

Identifying those employees authorized to conduct the verifications required under this regulation; and

Addressing the verification process required under this regulation.

The use of a three-part computer-generated counter check that:

Procedures and controls addressing the identification of a player which include:

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:

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:

If utilized, procedures and controls addressing:

Procedures and controls addressing:

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:

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:

Use of a player signature file which shall:

Procedures and controls addressing the identification of the player which include:

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:

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:

Use of a player signature file which shall:

Procedures and controls addressing the identification of the player which include:

Procedures and controls over the counter check issuance process which require:

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:

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.

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.

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.

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.

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 requirement that a redemption occur:

A requirement that a general cashier or casino clerk:

Procedures and controls over the counter check redemption process which require:

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:

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:

No later than:

In accordance with a deposit schedule agreed to between the facility operator and the player if the deposit schedule:

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.

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.

Procedures and controls addressing:

A prohibition against correcting information that identifies the verified bank account on which the counter check was originally drawn.

Returned directly to an accounting department employee with no incompatible functions; and

Maintained by a check bank cashier with no incompatible functions.

Limit collection efforts pertaining to a returned check to the following persons:

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.

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.

Transactions recorded in chronological order;

Credit transactions segregated from customer deposit transactions; and

Documentation of:

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:

For checks deposited, substituted, consolidated, or redeemed by a player on the shift:

The balance of the checks on hand in the check bank at the end of each shift.

In person at a facility; or

By mail if:

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.

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.

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.

The player:

The identification of the player and the authenticity of the player's signature on the request is established by an employee satisfactorily comparing the:

Has registered online with the facility operator for the establishment of an account; and

Enters a unique login credential at a:

Issue a gaming ticket which does not expire for 182 days after the date of issuance;

Configure its gaming ticket system to:

Configure a ticket redemption unit under Regulation .38 of this regulation to:

Redeem at its cashiers’ cage a gaming ticket of $5,000 or more by:

Require a gaming ticket to include:

Include procedures and controls which:

Issue promotional play if it is not awarded as cashable credit; and

Utilize a promotional play system meeting the requirements of this subtitle.

Promotional play awarded for the period including:

Promotional play redeemed by players for the period including:

Methods utilized to:

A promotion play instrument including a requirement that it document:

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.

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.

Shall in accordance with Regulation .36 of this chapter be configured to:

May be configured to function as a bill breaker changing bills of one denomination into bills of a smaller denomination.

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 transaction history report which details all critical player transaction history including the date, time, amount, and disposition of each complete and incomplete transaction.

A jackpot not totally and automatically paid by a video lottery terminal; or

Credits accumulated by a player on a video lottery terminal if:

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:

$50,000 or more by check; and

Less than $50,000 by:

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:

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:

A provision that only the preparer is required to sign the jackpot or credit meter payout document if:

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:

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:

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:

If utilized, procedures and controls applicable to a jackpot or credit meter payout:

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:

Details pertaining to:

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:

Procedures utilized to issue a manual jackpot or credit meter payout document which:

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:

In this regulation, the following terms have the meanings indicated.

Terms Defined.

The specific terms of:

The written trust agreement supporting the trust fund used to make future cash payments on the annuity jackpot, including details pertaining to:

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.

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.

Procedures to be followed by a player to exercise a cash payout option; and

Procedures utilized to document payment of an annuity jackpot.

In this regulation, the following terms have the meanings indicated.

Terms Defined.

The specific terms of:

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.

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.

Procedures to be followed by a player to exercise a cash payout option; and

Procedures utilized to document payment of a merchandise jackpot.

A jackpot or credit meter payout transaction at an automated jackpot payout machine; and

Reconciliation and replenishment of an automated jackpot payout machine.

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:

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 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:

Assign to a cash storage box an asset number that:

With the written approval of the Commission, utilize a computerized system for:

An employee involved in removing or replacing a cash storage box; and

The surveillance department.

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.

A table game shall have a secure tamper-resistant table game drop box attached to it in which the following shall be deposited:

A table game drop box shall have:

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:

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.

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:

Specific pick-up days and times for collection of cash storage and table game drop boxes and requirements that:

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.

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.

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.

Detail the actual procedures to be performed and documentation to be generated by drop team employees collecting cash storage and table game drop boxes:

Require:

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.

A manual key box; or

An automated key tracking system.

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:

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.

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:

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:

Require computerized equipment utilized to count and strap currency, gaming tickets, and promotional play instruments to:

Require a count room employee to:

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.

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:

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:

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:

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 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:

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.

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:

The reason for the variance; and

Corrective action taken or adjustments made.