In addition to the general duties imposed on all licensees in section 22B-701 of this article, an operator shall:
(1) Acquire video lottery terminals by purchase, lease or other assignment only from licensed manufacturers;
(2) Acquire no video lottery terminals in excess of the number they are authorized to operate in this state as stated in the permit issued under part 11 of this article;
(3) Contract with limited video lottery retailers for a secure location for the placement, operation and play of the video lottery terminals;
(4) Pay no compensation of any kind to any limited video lottery retailer or give or transfer anything of value to any limited video lottery retailer, that is in addition to the consideration stated in the written agreement between the operator and the limited video lottery retailer, which may be not less than forty percent nor more than fifty percent of the amount of net terminal income received by the operator in connection with the video lottery terminals at that location;
(5) Pay for the installation and operation of commission approved telephone lines to provide direct dial-up or on-line communication between each video lottery terminal and the commission's central control computer;
(6) Purchase or lease and install computer controller units and other associated equipment required by the commission for video lottery terminals owned or leased by the permittee;
(7) Permit no person to tamper with or interfere with the operation of any video lottery terminal;
(8) Ensure that telephone lines from the commission's central control computer to the video lottery terminals located at the approved location are at all times connected, and prevent any person from tampering or interfering with the operation of the telephone lines;
(9) Ensure that video lottery terminals are placed and remain placed in the specific places within the approved restricted access adult-only facility that have been approved by the commission. No video lottery terminal in a restricted access adult-only facility may be relocated within the restricted access adult-only facility without the prior written approval of the commission;
(10) Assume financial responsibility for proper and timely payments by limited video lottery retailers of all credits awarded to players in accordance with legislative rules promulgated by the commission;
(11) Enter into contracts with limited video lottery retailers to provide for the maintenance and repair of video lottery terminals and associated equipment only by licensed service technicians, and to provide for the placement of video lottery terminals pursuant to the provisions of this article;
(12) Conduct no video lottery advertising and promotional activities;
(13) Install, post and display prominently within or about the approved location signs, redemption information and other material as required by the commission;
(14) Maintain general liability insurance coverage for all video lottery terminals in an amount of at least $1 million per claim;
(15) Promptly notify the commission in writing of any breaks or tears to any logic unit seals;
(16) Assume liability for all amounts due to the commission in connection with any money lost or stolen from any video lottery terminal;
(17) Comply with all applicable provisions of this article and rules and orders of the commission; and
(18) Maintain a separate bank account into which the operator shall deposit the gross terminal income from all of the operator's video lottery terminals.
(a) A person who operates, carries on or exposes for play a video lottery game or video lottery terminal after the person's license has expired and prior to the actual renewal of the license is guilty of a misdemeanor and, upon conviction thereof, shall for a first conviction be confined in a county or regional jail for not more than one year or fined not less than $1,000 nor more than $5,000, except that, in the case of a person other than an individual, the amount of the fine imposed may not be less than $10,000 nor more than $25,000.
(b) A second and each subsequent offense under this section shall be a felony and, upon conviction thereof, the person shall be confined in a state correctional facility for a term of not less than one year nor more than three years and fined not less than $10,000 nor more than $20,000, except that in the case of a person other than an individual, the fine may not be less than $25,000 nor more than $50,000.