A facility operator shall: Purchase or lease video lottery terminals for use in its facility; and Maintain control over the video lottery terminals that it has purchased or leased. Before placing a video lottery machine into operation in a facility, a facility operator shall obtain written authorization from Agency staff for: Operating the video lottery terminal on the gaming floor; and As required under COMAR 36.03.11.05, any corresponding change to the facility gaming floor. General. A facility operator: Is authorized to operate the maximum number of video lottery terminals that is specified on its video lottery facility operation license; Subject to §A(3) of this regulation, may operate less than the number of authorized video lottery terminals on its license; and Shall submit written notification to Agency staff at least 21 days before temporarily decreasing the number of video lottery terminals on its gaming floor. Request for Reduction. A facility operator may submit one request each calendar year to reduce the number of authorized video lottery terminals on its video lottery facility operation license. An operator seeking to reduce the number of authorized video lottery terminals on its license shall submit to Agency staff a written request for reduction no later than December 1 of a calendar year and specify the: Reason for the request; Number of video lottery terminals requested to be taken off the license; and For each video lottery terminal subject to the request: Device asset number; Proposed reconfiguration of the facility’s floor plan after the reduction; Proposed date by which the reduction would be implemented; and Projected analysis of the impact of the reduction on the facility’s gaming revenue. Agency Staff may approve or deny a request. Agency staff shall notify the operator in writing of the effective date of an approved request. Implementation of Approved Request for Reduction. No later than December 31 following the effective date of an approved reduction request, the operator shall remove the subject video lottery terminals from its gaming floor. Agency staff shall implement an approved reduction by issuing the operator an amended license certificate. The operator for which a request for reduction was approved may operate: A maximum of the number of authorized video lottery terminals on its license; or Less than the number of authorized video lottery terminals on its license. The facility operator shall pay all costs incurred by the Commission associated with reducing the number of authorized video lottery terminals from the operator’s license. A facility operator for which a reduction was approved may not be credited or refunded any portion of the initial license fee paid under State Government Article, §9-1A-36, Annotated Code of Maryland. A facility operator shall pay the annual fee of $425 required by State Government Article, §9-1A-33, Annotated Code of Maryland, for each terminal at the beginning of each calendar year. The annual fee is based on the highest number of video lottery terminal positions in use on any day during the prior calendar year. Unless otherwise specified, a reduction in the number of authorized video lottery terminals does not change any other applicable requirement. Request to Increase Number of Authorized Video Lottery Terminals on a License. A facility operator may submit a written request to the Commission to increase the number of authorized video lottery terminals on its license up to and including the allocation limit for its location specified in State Government Article, §9-1A-36(i)(1), Annotated Code of Maryland. A written request under §D(1) of this regulation shall include the: Reason for the request; Number of video lottery terminals to be added to the license; Proposed reconfiguration of the facility’s floor plan; Proposed date by which the increase would be implemented; and Projected analysis of the impact of the increase on the facility’s gaming revenues. The Commission may approve or deny a request. To implement an approved request for an increased number of authorized video lottery terminals on its license, the operator shall: Pay a nonrefundable license fee of $6,000 for each additional video lottery terminal on the license, to accrue to the Education Trust Fund; At its own expense, purchase or lease, and maintain, the additional video lottery terminals; Pay all costs incurred by the Commission associated with increasing the number of authorized video lottery terminals on the operator’s license; and Meet all applicable Commission requirements for placing the additional authorized video lottery terminals on the gaming floor. A facility operator shall pay the annual fee of $425 required by State Government Article, §9-1A-33, Annotated Code of Maryland. The annual fee is based on the highest number of video lottery terminals in use on any day of the calendar year. Agency staff shall implement an approved increase by issuing the operator an amended license certificate. The operator for which a request for increase was approved may operate: A maximum of the number of authorized video lottery terminals on its license; or Less than the number of authorized video lottery terminals on its license. This regulation does not apply to a request for an increased allocation of video lottery terminals under State Government Article, §9-1A-36(i), Annotated Code of Maryland. State Government Article, §§9-1A-04 and 9-1A-21, Annotated Code of Maryland Effective date: Regulations .01—.02 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); adopted permanently effective April 29, 2013 (40:8 Md. R. 725) Regulation .01 amended effective May 26, 2014 (41:10 Md. R. 566) Regulation .01 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 .02 repealed and new Regulation .02 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) Regulation .02C, D amended effective July 7, 2025 (52:13 Md. R. 657)