(a) “Service company” shall mean:

(1) Any vendor offering goods or services relating to the manufacture, operation, maintenance, security, distribution, service or repair of video lottery machines, sports lottery machines or table game equipment directly to the State;

(2) Any vendor offering goods or services to a video lottery agent on a regular and continuing basis, as defined in regulations promulgated hereunder; or

(3) Any person providing gaming excursion services to a video lottery agent.

(b) The Director shall have the power and duty to license those service companies meeting this definition as the Director determines to be necessary to the integrity of the operations of the lottery, and to promulgate rules and regulations for such purpose. The licensure procedure shall include the satisfaction of such security, fitness and background standards as determined necessary relating to competence, honesty and integrity, such that a service company’s reputation, habits and associations do not pose a threat to the public interest of the State or to the reputation of, or effective regulation and control of, the lottery. Vendors holding licenses as technology providers or other service provider shall remain licensed as a service company and shall not be required to seek licensure under this section until the license is to be renewed. Vendors licensed or approved by the Harness Racing Commission or the Thoroughbred Racing Commission to provide services to a video lottery agent need not secure a service company license pursuant to this section unless such vendor seeks to provide services other than those already authorized.

(c) Each service company identified in this section shall be licensed in accordance with the standards of a key employee. The owners, management, and supervisory personnel of each such service company shall be qualified to the standards of and for the term of a key employee. The employees of each such service company whose duties and responsibilities involve the security, maintenance, servicing, repair, or operation of video lottery machines or table game equipment shall be licensed to the standards of and for the term of a gaming employee.

(d) Each service company identified in paragraph (a)(2) of this section shall be licensed in accordance with the standards of a key employee except as to the requirement to establish financial stability, integrity and responsibility. The owners, management, and supervisory personnel of each such service company shall be qualified to the standards of a key employee, except as to the requirement to establish financial stability integrity and responsibility.

(e) Each service company identified in paragraph (a)(3) of this section shall be licensed in accordance with the standards of a key employee except as to the requirement to establish financial stability, integrity and responsibility. The employees of each such service company whose duties and responsibilities include arranging, procuring or selecting participants in a gaming excursion shall be qualified to the standards of a key employee, except as to the requirement to establish financial stability integrity and responsibility.

(f) For purposes of this section, an owner of a corporation shall be defined as “any person who owns directly or indirectly more than 10% of the equity securities of the corporation.”

(g) (1) Each service company identified in paragraph (a)(1) of this section shall be licensed as a service company prior to conducting any business whatsoever, provided, however, that upon a finding of good cause by the Director for each business transaction, the Director may permit an applicant for such service company license to conduct business transactions prior to the licensure of that company.

(2) Each service company identified in paragraph (a)(2) of this section, may transact business with a video lottery agent prior to obtaining a service company license upon the filing of a vendor registration form by a video lottery agent for such service company pursuant to regulations promulgated hereunder.

(h) The terms of licenses under this section shall be as follows:

(1) Service companies identified in paragraph (a)(1) of this section shall be licensed for an initial term of 2 years and succeeding renewal terms of 3 years from date of issuance;

(2) Service companies identified in paragraphs (a)(2) and (a)(3) of this section shall be licensed for an initial term of 3 years and succeeding renewal terms of 4 years from date of issuance.

(i) The risk manager of the sports lottery must be a bookmaker currently licensed to operate, and operating, sports books in the United States and the sports lottery technology system provider must be licensed to operate lotteries in the United States. The Director may determine whether the licensing standards of another state are comprehensive, thorough and provide similar adequate safeguards and, if so, may, in the Director’s discretion, license an application already licensed in such state without the necessity of a full application and background check.

77 Del. Laws, c. 219, § 20; 70 Del. Laws, c. 186, § 1.