Md. Code Regs. 36.03.01.02

Current through Register Vol. 51, No. 12, June 14, 2024

Section 36.03.01.02 - Definitions

A. 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.

B. Terms Defined.

(1) "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:

(a) Record ownership;

(b) 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

(c) An interest that entitles a person to benefit substantially and is equivalent to ownership by an agreement, relationship, or other arrangement; or

(d) 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.

(2) "Change in employment status" means, for an individual holding an unexpired video lottery employee license:

(a) Employment at a facility that is different from the facility at which the individual is currently employed;

(b) Re-employment at a facility at which the individual was previously employed; and

(c) Except for an unexpected termination from employment, a separation from employment with a facility.

(3) "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:

(a) Management or operation;

(b) Security;

(c) Service, maintenance, update, or repair of video lottery or table game equipment or associated equipment or software;

(d) Own or control a person described in §B(2)(a)-(c) of this regulation; or

(e) Any other service for which the Commission requires a contractor license.

(4) "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:

(a) Manage or operate a video lottery facility;

(b) Provide security for a video lottery facility;

(c) Perform service, maintenance, or repairs of a video lottery terminal, table game device, central operating system, associated equipment, or software;

(d) Provide junket enterprise services; or

(e) Provide any other service that is essential to operation of a video lottery facility that may involve contact with or access to:

(i) A central operating system;

(ii) A facility's video lottery system;

(iii) A video lottery terminal; or

(iv) An electronic component of a table game.

(5) "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) A central operating system;

(b) A facility's video lottery system;

(c) A video lottery terminal; or

(d) An electronic component of a table game.

(6) "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.

(7) "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) A short-term extension of credit to enable the player to take part in gaming; and

(b) 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.

(8) "Dealer" means an employee of a facility operator whose primary function is to directly operate and conduct table games.

(9) "Facility" means a video lottery facility.

(10) "Facility operator" means a person who operates or manages the operation of a video lottery facility.

(11) "Fill" means the distribution of gaming chips, coins, and plaques to a gaming table to replenish the table inventory.

(12) "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.

(13) "Gaming chip" means a roulette chip, poker rake chip, tournament chip, or value chip.

(14) "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.

(15) "Gaming employee" means an individual who:

(a) 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:

(i) Operating, servicing, or maintaining a video lottery terminal, table game, or associated equipment;

(ii) Accounting, maintaining, or auditing a facility's financial records;

(iii) Counting or processing video lottery terminal or table game revenue;

(iv) Conducting security or surveillance in or around a facility; or

(v) Operating or maintaining a facility's information systems;

(b) 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;

(c) Is employed by a contractor as a junket representative; or

(d) Is otherwise required by the Commission to be licensed as a gaming employee.

(16) "Gaming floor" means that part of a facility where video lottery terminals or table games have been installed for use or play.

(17) "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:

(a) Holds a certificate in good standing for compliance with:

(i) International Organization for Standardization # 17025 - General Requirements for the Competence of Testing and Calibration Laboratories; and

(ii) International Organization for Standardization # 17020 - General Criteria for the Operation of Various Types of Bodies Performing Inspections;

(b) 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;

(c) Has been approved by the Commission to test and certify equipment, systems, and software on its behalf; and

(d) Meets all conditions and requirements enumerated in any request for proposals issued by the Commission pertaining to testing, as amended or clarified.

(18) "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.

(19) "Junket" means an arrangement:

(a) 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

(b) 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.

(20) "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.

(21) "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.

(22) "License" means a license issued under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, to:

(a) An operator of a facility;

(b) A person that contracts with an operator of a facility to provide any of the services related to operating a facility;

(c) A manufacturer as defined in State Government Article, § 9-1A-01, Annotated Code of Maryland;

(d) A video lottery employee as defined in State Government Article, § 9-1A-01, Annotated Code of Maryland; or

(e) Any other person whom the Commission requires to be licensed.

(23) "Location Commission" means the Video Lottery Facility Location Commission established by State Government Article, § 9-1A-36, Annotated Code of Maryland.

(24) "Manufacturer" has the meaning stated in State Government Article § 9-1A-01, Annotated Code of Maryland.

(25) "Manufacturer - Tier 1" or "Tier 1 Manufacturer" means a person that:

(a) Produces:

(i) A video lottery terminal;

(ii) Table game equipment;

(iii) A central monitor and control system; or

(iv) Equipment associated with §B(24)(a)(i)-(iii) of this regulation; or

(b) Distributes or resells:

(i) A video lottery terminal;

(ii) Table game equipment;

(iii) A central monitor and control system; or

(iv) Equipment associated with §B(24)(b)(i) - (iii) of this regulation.

(26) "Manufacturer - Tier 2" or "Tier 2 - Manufacturer" means a person that produces a product:

(a) Intended for sale, lease or other assignment to a licensee and is related to:

(i) Video lottery terminals;

(ii) Table games; or

(iii) Equipment or software associated with §B(25)(a)(i) or (ii) of this regulation.

(b) That does not have the ability to impact the integrity of a game; and

(c) Is not essential to table game play.

(27) "Nongaming employee" means an individual who is:

(a) 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

(b) Otherwise required by the Commission to be licensed as a gaming employee.

(28) "Operation license" means a license awarded by the Location Commission to operate a video lottery facility.

(29) "Plaque" means a rectangular, square, or oval marker that can be used instead of value chips.

(30) "Principal" means:

(a) An officer, director, or person who directly holds a beneficial interest in, or ownership of, the securities of an applicant or licensee;

(b) 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;

(c) 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;

(d) An underwriter of an applicant or licensee; or

(e) Another person or employee of an applicant or licensee deemed by the Commission to be a principal.

(31) Principal Employee.

(a) "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;

(b) "Principal employee" includes an employee of a contractor who performs any function described in §B(3) of this regulation; and

(c) "Principal employee" does not include a gaming, temporary gaming, or nongaming employee.

(32) "Principal entity" means a person, other than an individual, that is a principal.

(33) "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:

(a) Cashier's cage, including a satellite cashiers' cage and ancillary offices;

(b) Computer space allocated to the central monitor and control system;

(c) Count room and trolley storage areas;

(d) Areas designated for the storage or repair of equipment of video lottery terminals or table game devices;

(e) Information technology department operations centers;

(f) Progressive controller locations;

(g) Surveillance monitoring rooms;

(h) Vault and armored car bay locations; and

(i) Any area that the facility operator has designated as restricted in its Commission-approved accounting an internal control systems.

(34) "Signature" means, at a minimum, an employee's first initial, last name, and Commission license number, written by the employee.

(35) Table Game Equipment.

(a) "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.

(b) Table game equipment does not mean:

(i) 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

(ii) An item described in §B(29)(a) of this regulation that is unfinished or inoperable.

(36) "Terminal" means a computerized unit specifically designed for issuing and processing tickets and for printing of special reports.

(37) "Value chip" means a chip that contains a denomination on each face.

Md. Code Regs. 36.03.01.02

Regulations .02 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013
Regulations .02 adopted effective August 19, 2013 (40:16 Md. R. 1347)
Regulation .02B amended effective December 12, 2013 (40:24 Md. R. 2018)
Regulation .02 amended effective 41:21 Md. R. 1262, eff.10/27/2014; amended effective 44:21 Md. R. 985, eff. 10/23/2017; amended effective 45:21 Md. R. 973, eff. 10/22/2018; amended effective 46:1 Md. R. 13, eff. 1/14/2019; amended effective 47:21 Md. R. 905, eff. 10/19/2020; amended effective 50:26 Md. R. 1130, effective 12/12/2023, exp. 6/9/2024 (Emergency); amended effective 51:10 Md. R. 529, eff. 5/27/2024.