36.04.02.02

.02 Request for Reduction.

A. A facility operator may request a reduction in the number of video lottery terminals that are authorized for operation at the facility by submitting a request to the Commission.

B. The request shall indicate:

(1) The reason for the request;

(2) The number of video lottery terminals requested for removal, including, if applicable, the:

(a) Device Asset Number;

(b) Manufacturer; and

(c) Game theme;

(3) The proposed reconfiguration of the facilityís floor plan;

(4) Whether the requested removal is temporary or permanent;

(5) The requested time frame for the reduction; and

(6) A projected analysis of the impact of the reduction on gaming revenues at the facility.

C. If the reduction request is determined to be in the best interest of the State, the Commission may grant approval.

D. The Commission may approve:

(1) A reduction in the amount requested;

(2) A different selection of video lottery terminal machines than what was requested; or

(3) A different timeline than what was requested.

E. Temporary Removal.

(1) A removal under this regulation shall be considered to be temporary if it is for 365 days or less.

(2) A temporary removal that is not restored to operation within 365 days shall become a permanent removal.

(3) For each video lottery terminal that is temporarily removed, a facility operator shall continue to pay the annual fee of $425 per video lottery terminal as required by State Government Article, §9-1A-33, Annotated Code of Maryland.

F. Permanent Removal.

(1) A facility operatorís authorized allocation of video lottery terminals shall be permanently reduced by the number approved by the Commission.

(2) For permanently removed video lottery terminals, a facility operator 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.

(3) The facility operatorís license shall be amended to reflect the lower number of video lottery terminals.

(4) A facility operator who later wishes to expand its complement of authorized video lottery terminals shall follow the procedure for reallocation of video lottery machines in State Government Article, §9-1A-36, Annotated Code of Maryland.

G. Cost of Reduction.

(1) A facility operator shall pay all costs incurred by the Commission associated with the removal of video lottery terminals, including:

(a) Handling;

(b) Transportation;

(c) Storage;

(d) Contract termination; and

(e) Disposition.

(2) A facility operator shall pay all costs incurred by the Commission associated with restoring any temporarily removed video lottery terminals.