(a) An eligible charitable gaming organization must apply for and receive the approval of the Director to operate charitable video lottery machines. The application form which will be promulgated by the Director shall at a minimum include the name of the eligible organization, the location at which the organization is applying to have video lottery machines, the individual who will be the primary contact and the vendor who will supply the charitable video lottery machines. Such approval will take into consideration a recommendation from the Division of Gaming Enforcement before a license is approved by the Director.

(b) Proceeds returned to players. — A portion of such proceeds, but not less than 60% or greater than 86% of the total proceeds on an average annual basis received from the operation of a charitable video lottery machine, shall be retained by and returned to the players under rules prescribed by the Director.

(c) Proceeds returned to the State. Amounts remaining after all payments to players under subsection (b) of this section, there shall be returned to the State 40%. If the Director determines that a charitable video lottery machine at an authorized charitable gaming organization is connected to the lottery’s central computer system, then there shall be 35% returned to the State. From the amount returned to the State, the vendor who supplies the charitable video lottery machines shall be paid. In addition, 1% of the proceeds returned to the State from this section shall be sent to the Division of Substance Abuse and Mental Health of the Department of Health and Social Services for funding programs for the treatment, education and assistance of compulsive gamblers and their families.

(d) Application of remaining proceeds. — The proceeds remaining after payments as set forth in subsections (b) and (c) of this section shall be made to the respective charitable gaming organization.

(e) The maximum number of charitable video lottery machines that a charitable gaming organization may apply to have and be approved by the Director is 25. Each eligible charitable gaming organization may have up to 10 charitable video lottery machines, plus 1 additional charitable video lottery machine for every 70 members of the charitable gaming organization over 500 members of said organization. Any change in the membership requirements of a charitable gaming organization that in effect would alter the number of charitable video lottery machines a charitable organization would be authorized to have must be approved by the Director of the Lottery.

(f) The charitable gaming organization shall submit to the Director a report monthly regarding the amount played and amount returned to the players from the charitable video lottery machines in their respective locations. The form of the report shall be promulgated by the Director.

(g) The Lottery Office or the Division of Gaming Enforcement shall have access to the charitable video lottery machines in order to make sure that the intent of 79 Del. Laws, c. 1 is being enforced.

(h) The Department of Finance shall enact regulations on an emergency basis to implement the operation of the charitable video lottery machines for the approved charitable gaming organizations.

(i) Any organization denied application of being a qualified charitable gaming organization as defined by § 4803(a) of this title may enter the appeal process outlined in § 4830(j) of this title.

(j) Effective January 1, 2014, charitable gaming organizations will be required to donate at least 40% of the organization’s proceeds from charitable video lottery machine gaming annually to a charitable purpose, including donations to an organization’s national programs; DE-based 501(c) [26 U.S.C. § 501(c)] charities, local individuals in need, payment in the form of scholarships, sponsorships of local organizations and the use of supplies, equipment and facilities that benefit the communities within the State. For purposes of meeting the 40% threshold, charitable gaming organizations are prohibited of making donations to another qualified charitable gaming organization that has been approved by the Lottery Director and is operating. A report on this activity shall be submitted to State Lottery Office by March 31 of each year on a form promulgated by the Lottery Director. If a charitable organization does not meet the 40% threshold, then it may apply for a waiver from the Secretary of Finance citing the reasons for not obtaining the required level of donations. A decision will be made by the Secretary of Finance whether or not to grant the waiver for a particular year.

(k) (1) An Advisory Council on Charitable Gaming Planning is established and shall serve in an advisory capacity to the Secretary of Finance. Its membership shall include:

a. The Director of the State Lottery Office.

b. One member appointed by the President Pro Tempore of the Senate who is a member of an eligible charitable gaming organization.

c. One member appointed by the Speaker of the House who is a member of a eligible charitable gaming organization.

d. Two members appointed by the Governor who are members of eligible charitable gaming organizations.

(2) The Governor shall designate 1 member to serve as Chairperson of the Council, who shall serve in that capacity for 2 years and shall be eligible for reappointment.

(3) The Council shall consider matters relating to the effectiveness of current operational procedures and recommendations for new operational procedures or regulations.

(4) Members of the Council shall serve without compensation.

(5) Any member of the Council other than the Director of the State Lottery Office shall be subject to removal and replacement, without cause, at any time by the person who appointed or designated the member.

(6) The Council shall meet at least 1 time each calendar year, at the call of the Director, the Chairperson, or a majority of the members.

(7) The Council shall submit a report on its activities to the Secretary of Finance by November 5 of each year, together with recommendations for legislative and/or administrative changes it deems desirable.

(l) [Repealed.]

79 Del. Laws, c. 1, § 2; 79 Del. Laws, c. 77, §§ 2, 5; 79 Del. Laws, c. 292, § 70; 80 Del. Laws, c. 78, §§ 74, 75; 82 Del. Laws, c. 158, § 1.