Current through Register Vol. 46, No. 19, March 20, 2024
(1) The lottery may suspend or revoke any MVM
retailer license issued pursuant to these rules for one or more of the
following reasons:
a. Failing to meet or
maintain the eligibility criteria for MVM retailer license application and
issuance established by Iowa Code Supplement chapter 99G or these
rules.
b. Violating any of the
provisions of Iowa Code Supplement chapter 99G, these rules, or the MVM license
terms and conditions.
c. Failing to
file any return or report or to keep records required by the lottery; failing
to maintain an acceptable level of financial responsibility as evidenced by the
financial condition of the business, incidents of failure to pay taxes or other
debts, or by the giving of financial instruments which are dishonored or
electronic funds transfers that are not paid; fraud, deceit, misrepresentation,
or other conduct prejudicial to the public confidence in the lottery.
d. If public convenience is adequately served
by other licensed MVM retailers.
e.
Failing to sell a minimum number of tickets as established by the
lottery.
f. The MVM retailer has a
history of thefts or other forms of losses of tickets or revenue.
g. Violating federal, state, or local law or
allowing the violation of any of these laws in connection with the operation of
MVMs.
h. Obtaining a license by
fraud, misrepresentation, concealment or through inadvertence or
mistake.
i. Making a
misrepresentation of fact to the board or lottery on any report, record,
application form, or questionnaire required to be submitted to the board or
lottery.
j. Denying the lottery or
its authorized representative, including authorized local law enforcement
agencies, access to any place where a licensed activity is conducted.
k. Failing promptly to produce for inspection
or audit any book, record, document, or other item required to be produced by
law, these rules, or the terms of the license.
l. Systematically pursuing economic gain in
an occupational manner or context that is in violation of the criminal or civil
public policy of this state if such pursuit creates cause to believe that the
participation of such person in these activities is detrimental to the proper
operation of an authorized lottery.
m. Failing to follow the instructions of the
lottery for the conduct of any particular game or special event.
n. Failing to follow security procedures of
the lottery for the management of personnel, handling of tickets, or for the
conduct of any particular game or special event.
o. Making a misrepresentation of fact to a
purchaser, or prospective purchaser, of a ticket, or to the general public with
respect to the conduct of a particular game or special event.
p. For a licensee who is an individual, when
the lottery receives a certificate of noncompliance from the child support
recovery unit in regard to the licensee, unless the unit furnishes the
department with a withdrawal of the certificate of noncompliance.
(2) Advertising by MVM retailers.
a. When referring to MVMs or their associated
games in advertisements, signage, promotional materials, or any other similar
items, MVM retailers shall not use any false or misleading terms or statements
including, but not limited to, "casino," "slot machine," "slots," "video
lottery," "VLTs," "video slots," "video poker," or any other related
terms.
b. Upon suspicion that an
MVM retailer has violated 14.13(2) "a, " the lottery shall investigate and
provide a written warning to the MVM retailer describing the report of the
event and of the potential violation of 14.13(2) "a. " In the event the lottery
can substantiate the claim that an MVM retailer has violated
14.13(2)"a, " the lottery shall suspend the license of the MVM
retailer in question for 7 days. If the lottery can substantiate the claim that
an MVM retailer has violated 14.13(2)"a " a second time in a
period of one year from the date of the first event, the lottery shall suspend
the MVM retailer license for a period of 30 days. If the lottery can
substantiate the claim that an MVM retailer has violated 14.13(2)"a
" at a given MVM premises a third time in a period of one year from
the date of the first event as described in this rule, the lottery shall
suspend the license of the MVM retailer in question for one year.
(3) The eiTective date of
revocation or suspension of an MVM retailer license, or denial of the issuance
or renewal of an MVM retailer license, as specified in the notice required by
Iowa Code section 252J.8, shall be 60 days
following service of the notice upon the licensee. All other notices of
revocation or suspension shall be 20 days following service upon a
licensee.
(4) If an MVM retailer
license is suspended for more than 180 days from the effective date of the
suspension, the lottery will revoke the license upon 15 days' notice served in
conformance with rule 531-12.I3(99G,252J).
(5) Upon revocation or suspension of an MVM
retailer license of 30 days or longer, the MVM retailer shall surrender to the
lottery, by a date designated by the lottery, the MVM license, lottery
identification card, and all other lottery property. The lottery will settle
the MVM retailer's account as if the MVM retailer had terminated its
relationship with the lottery voluntarily.
This rule is intended to implement Iowa Code section
252J.8 and Iowa Code Supplement
sections 990.9(3),
99G.21(2),
99G.24, 990.27,
99G.30(3), and
99G.35.
