36.04.02.01

.01 Purchase or Lease of Video Lottery Terminals; Manufacturer Incentives.

A. Except as provided in §B, C, and D of this regulation, the Commission shall:

(1) Purchase or lease video lottery terminals for use in a facility; and

(2) Maintain control over the video lottery terminals that it has purchased or leased.

B. For each video lottery terminal used by a facility, a facility in Allegany or Worcester County may submit a written application to the Commission for permission to:

(1) Assume ownership of the machine; or

(2) Obtain the right to lease the machine.

C. For a facility in Anne Arundel or Cecil County:

(1) The Commission shall own each video lottery terminal through March 31, 2015; and

(2) Effective April 1, 2015, a facility shall own or lease each video lottery terminal from a manufacturer that is licensed under COMAR 36.03.02.13.

D. For a facility in Baltimore City or Prince George’s County, the facility shall own or lease the machines.

E. In deciding which video lottery machines to purchase or lease, the Commission shall evaluate bids submitted by a manufacturer of video lottery terminal machines based on:

(1) Price per machine for:

(a) Purchase;

(b) Lease;

(c) Fixed daily rate;

(d) Percentage of proceeds; or

(e) Any other pricing option provided by a manufacturer;

(2) The Commission’s projection of a machine price over:

(a) A 5-year period; or

(b) The remaining life of a master contract for video lottery terminal machines that is in effect at the time a manufacturer submits pricing under §B(1) of this regulation;

(3) A purchase method that is most advantageous to the State; or

(4) Any other factor that serves the best interests of the State.

F. The Commission may cancel or alter a contract for purchase or lease of video lottery terminal machines if one or more eligible applicant for a video lottery facility license fails to obtain a license.

G. Except as provided in §§B, C and D of this regulation, a facility shall operate only video lottery terminal machines that have been purchased or leased by the Commission.

H. The Commission may provide an incentive to a licensed manufacturer of video lottery terminal machines that is based on the performance of the manufacturer’s video lottery terminal machines.