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" Sec. 401. Definitions
" For purposes of this title, the term:
" (1) "ABC Board" means the Alcoholic Beverage Control Board.
" (2) "ABRA" means the Alcoholic Beverage Regulation Administration.
" (3) "CFO" means the Chief Financial Officer of the District of Columbia.
" (4) "Centralized accounting system" and "CAS" mean the accounting system linked by a communications network as described in sections 410 and 414.
" (5) "Distributor" means a person licensed under this title to buy, sell, lease, maintain, or service game of skill machines, or any major components or parts of a game of skill machine, for distribution to retailers.
" (6) "Game of skill machine" means a mechanical or electronic gaming device that rewards the winning player or players with cash, a gift card, or a voucher that can be redeemed for cash. The term "game of skill machine" does not include a mechanical or electronic gaming device if:
" (A) The ability of a player to succeed at the game is impacted by the number or ratio of prior wins to prior losses of players playing the game;
" (B) The outcome of the game can be controlled by a source other than a player playing the game;
" (C) The success of a player is or may be determined by a chance event that cannot be altered by the player's actions;
" (D) The ability of a player to succeed at the game is impacted by game features not visible or known to a reasonable player; or
" (E) The ability of a player to succeed at the game is impacted by the exercise of skill that no reasonable player could exercise.
" (7) "Gross game of skill machine revenue" means the total of cash or cash equivalents received from a game of skill machine minus the total of:
" (A) Cash or cash equivalents paid to players as a result of a game of skill machine;
" (B) Cash or cash equivalents paid to purchase annuities to fund prizes payable to players over a period of time as a result of a game of skill machine; and
" (C) The actual cost paid by the license holder for personal property distributed to a player as a result of a game of skill machine, excluding travel expenses, food, refreshments, lodging, and services.
" (8) "Licensed establishment" means an on-premises retail establishment licensed by the ABC Board to sell, serve, and allow for the consumption of alcoholic beverages.
" (9) "Licensed premises" means the physical location of a licensed establishment that is authorized by the Office to offer game of skill machines.
" (10) "Licensee" means a person who possesses a game of skill manufacturer, distributor, supplier, or retailer license issued by the Office.
" (11) "Manufacturer" means a person that is licensed under this title and that manufactures or assembles game of skill machines for sale or lease to distributors.
" (12) "Office" means the Office of Lottery and Gaming.
" (13) "Retailer" means a person that is licensed under this title to offer game of skill machines on its licensed premises.
" (14) "Supplier" means a person that is licensed under this title to supply major components or parts of game of skill machines to licensed manufacturers or distributors.
" Sec. 402. Authorization of game of skill machines.
"The operation of game of skill machines shall be lawful in the District if conducted in accordance with this title and the rules issued pursuant to this title.
" Sec. 403. Game of skill machine license requirements; prohibition.
" (a) Except as provided in subsection (f) of this section, no person may offer or allow a game of skill machine in the District unless all the licenses required by this title, or by a rule issued pursuant to this title, have been duly obtained.
" (b) (1) The Office shall issue the following categories of game of skill machine licenses:
" (A) Manufacturer;
" (B) Distributor;
" (C) Supplier; and
" (D) Retailer.
" (2) The Office shall not grant a license listed in paragraph (1) of this subsection until it has determined that each person that possesses 10% or greater beneficial or proprietary interest in the applicant has been approved for licensure in accordance with this title and rules issued pursuant to this title.
" (c) (1) An applicant for an initial manufacturer, distributor, or supplier license shall be subject to District and national criminal history background checks.
" (2) The applicant shall submit an application to the Office, in a form determined by the Office, for fingerprints for a national criminal records check by the Metropolitan Police Department and the Federal Bureau of Investigation of all individuals required to be named in the application and a signed authorization of each individual submitting fingerprints for the release of information by the Metropolitan Police Department and the Federal Bureau of Investigation.
" (3) In the case of an application for license renewal, the Office may require additional background checks.
" (d) The Office shall require proof of good standing pursuant to D.C. Official Code § 29-102.08 of an applicant for a license pursuant to this title and may, in addition, require certification that the Citywide Clean Hands Database indicates that the proposed licensee is current with its District taxes.
" (e) Proprietary information, trade secrets, financial information, and personal information about a person in an application submitted to the Office pursuant to this title shall not be a public record and shall not be made available under the Freedom of Information Act of 1976, effective March 29, 1977 (D.C. Law 1-96; D.C. Official Code § 2-531 et seq .), or any other law.
" (f) (1) A retailer shall display its license as required by section 411(d) and shall make the license immediately available for inspection upon request by an employee of the Office, the Metropolitan Police Department, or ABRA.
" (2) When present at a licensed establishment, an employee of a distributor shall carry a copy of its license and make it readily available for inspection by an employee of the Office, the Metropolitan Police Department, or ABRA.
" (g) A licensed establishment that applied for and obtained a game of skill machine endorsement from the ABC Board pursuant to D.C. Official Code § 25-113.01(e) prior to the effective date of the Game of Skill Machines Consumer Protection Act of 2020, passed on 2nd reading on July 28, 2020 (Enrolled version of Bill 23-760) ("Act"), shall have 180 calendar days after the effective date of the Act to come into compliance with this title or rules issued pursuant to this title. Failure to do so may result in the Office taking action against the licensed establishment in accordance with section 417.
" Sec. 404. License prohibitions; suspensions and revocation of licenses.
" (a) An applicant convicted of a disqualifying offense shall not be licensed. The Office shall define disqualifying offenses by a rule issued pursuant to this title.
" (b) No Office or ABRA employee, or immediate family member of an Office or ABRA employee, may be an applicant for, have an interest in, or obtain a license issued pursuant to this title.
" (c) Failure of an applicant or licensee to notify the Office of a change to the information provided in its application for license or renewal within 10 days after the change may result in the Office suspending or revoking the licensee's license, denying the applicant's license, or issuing a fine.
" (d) (1) The Office shall not grant a license pursuant to this title, and shall revoke a license previously granted, if evidence satisfactory to the Office exists that the applicant or licensee has:
" (A) Knowingly made a false statement of a material fact to the Office;
" (B) Had a license revoked by a governmental authority responsible for regulation of games of skill;
" (C) Been convicted of a felony and has not received a pardon or been released from parole or probation for at least 5 years; or
" (D) Been convicted of a gambling-related offense or a theft or fraud offense.
" (2) The Office may deny a license to an applicant or suspend or revoke a license of a licensee if the applicant or licensee:
" (A) Has not demonstrated, to the satisfaction of the Office, financial responsibility sufficient to adequately meet the requirement of the proposed activity;
" (B) Is not the true owner of the licensed business or has not disclosed the existence or identity of another individual or entity that has an ownership interest in the business; or
" (C) Is a corporation that sells more than 5% of a licensee's voting stock, more than 5% of the voting stock of a corporation that controls the licensee, or sells a licensee's assets to an individual or entity not already determined by the Office to have met the qualifications of a licensee pursuant to this title, or is a non-corporate entity where a person not already determined by the Office to have met the qualifications of a licensee pursuant to this title holds more than 10% interest in the non-corporate entity.
" Sec. 405. Conflicts of interest.
" (a) Before issuing, authorizing the transfer to a new owner of, or renewing a license, the Office shall determine that the applicant is not disqualified because of a conflicting interest in another license.
" (b) In making a determination regarding a conflicting interest, the following standards shall apply:
" (1) No licensee under a supplier's license shall hold a license in another license issued under this title.
" (2) No licensee under a distributor's license shall hold a license in another license issued under this title; except, that the holder of a distributor's license may also hold a manufacturer's license.
" (3) No licensee under a manufacturer's license shall hold another license issued under this title; except, that the holder of a manufacturer's license may also hold a distributor's license.
" Sec. 406. Manufacturer licensure.
" (a) A person may not manufacture a game of skill machine in the District unless the person has a valid manufacturer's license issued under this title. A manufacturer may only sell game of skill machines for use in the District to persons having a valid distributor's license.
" (b) A person applying for a manufacturer's license shall do so on a form prescribed by the Office. The form shall require:
" (1) The name of the applicant;
" (2) The mailing address of the applicant and, if the applicant is a corporation, the name of the state in which it is incorporated, the location of its principal place of business, and the names and addresses of its directors;
" (3) A report of the applicant's financial activities, including evidence of financial stability, such as bank statements, business and personal income and disbursement schedules, and tax returns; and
" (4) Any other information the Office considers necessary.
" (c) In considering whether to approve an application for a distributor's license, the Office may consider evidence the distributor submitted to the Office of an existing license as a distributor from another jurisdiction that the Office has determined has licensing requirements similar to those required by the District.
" (d) An applicant for a manufacturer's license shall pay a nonrefundable application fee of $10,000 with the application.
" (e) A manufacturer's license shall be renewed annually; provided, that the licensee has continued to comply with all statutory and regulatory requirements and pays upon submission of its renewal application a $5,000 renewal fee.
" Sec. 407. Distributor licensure.
" (a) A person may not buy, sell, distribute, lease, maintain, market, or service a game of skill machine or a major component or part of a game of skill machine for distribution in the District unless the person has a valid distributor's license issued by the Office.
" (b) A licensed distributor may buy, sell, distribute, lease, maintain, market, or service a game of skill machine or any major component or part of a game of skill machine for distribution in the District to a licensed establishment that possesses a retailer's license from the Office and a game of skill machine endorsement from the ABC Board pursuant to D.C. Official Code § 25-113.01(e). No distributor may give anything of value, including a loan or financing agreement, to a licensed establishment as an incentive or inducement to locate a game of skill machine in the establishment.
" (c) A person applying for a distributor's license shall do so on a form prescribed by the Office. The form shall require:
" (1) The name of the applicant;
" (2) The mailing address of the applicant and, if the applicant is a corporation, the name of the state in which it is incorporated, the location of its principal place of business, and the names and addresses of its directors;
" (3) A report of the applicant's financial activities, including evidence of financial stability, such as bank statements, business and personal income and disbursement schedules, and tax returns; and
" (4) Any other information the Office considers necessary.
" (d) In considering whether to approve an application for a distributor's license, the Office may consider evidence the distributor submitted to the Office of an existing license as a distributor from another jurisdiction that the Office has determined has licensing requirements similar to those required by the District.
" (e) An applicant for a distributor's license shall demonstrate that the equipment, system, or device that the applicant plans to offer to retailers conforms to standards established pursuant to this title, rules issued pursuant to this title, and other applicable law.
" (f) An applicant for a distributor's license shall pay a nonrefundable application fee of $10,000 with the application.
" (g) A distributor's license shall be renewed annually; provided, that the licensee has continued to comply with all statutory and regulatory requirements and pays upon submission of its renewal application a $5,000 renewal fee.
" (h) A distributor shall submit to the Office, at such times as are established by the Office by rule, a list of all game of skill machines sold, delivered, or offered to a retailer. All such equipment shall be tested and approved by an independent testing laboratory approved by the Office.
" Sec. 408. Supplier licensure.
" (a) A person shall not sell parts or components for a game of skill machine or provide services related to a game of skill machine unless the person has a valid supplier's license. A supplier may only provide parts and components for a game of skill machine or services related to a game of skill machine for use in the District to a person having a valid manufacturer's or distributor's license.
" (b) A person applying for a supplier's license shall do so on a form prescribed by the Office. The form shall require:
" (1) The name of the applicant;
" (2) The mailing address of the applicant and, if the applicant is a corporation, the name of the state in which it is incorporated, the location of its principal place of business, and the names and addresses of its directors;
" (3) A report of the applicant's financial activities, including evidence of financial stability, such as bank statements, business and personal income and disbursement schedules, and tax returns; and
" (4) Any other information the Office considers necessary.".
" (c) In considering whether to approve an application for a supplier's license, the Office may consider evidence the supplier submitted to the Office of an existing license as a supplier from another jurisdiction that the Office has determined has licensing requirements similar to those required by the District.
" (d) An applicant for a supplier's license shall demonstrate that the equipment, components, or parts that the applicant plans to offer to manufacturers or distributors conform to standards established pursuant to this title, rules issued pursuant to this title, and other applicable law.
" (e) An applicant for a supplier's license shall pay a nonrefundable application fee of $2,000 with the application.
" (f) A supplier's license shall be renewed annually; provided, that the licensee has continued to comply with all statutory and regulatory requirements and pays upon submission of its renewal application a $1,000 renewal fee.
" (g) A supplier shall submit to the Office, at such times as are established by the Office by rule, a list of all components or parts for game of skill machines sold, delivered, or offered to a manufacturer or operator. All such equipment shall be tested and approved by an independent testing laboratory approved by the Office.
" Sec. 409. Retailer licensure; registration of game of skill machines.
" (a) (1) A person may not own, lease, maintain, install, make available, or offer or allow another to play a game of skill machine in the District unless the person:
" (A) Is a licensed establishment;
" (B) Possesses a retailer's license from the Office and a game of skill machine endorsement from ABRA in accordance with D.C. Official Code § 25-113.01(e); and
" (C) Has entered into a written use agreement with a licensed distributor for the placement or installation of a game of skill machine on the licensed premises.
" (2) A person convicted of violating this subsection shall be subject to a fine not to exceed $5,000 or imprisonment not to exceed 6 months, or revocation of the retailer's license, or all of the foregoing.
" (b) (1) Each game of skill machine located on a retailer's licensed premises shall be registered with the Office by the retailer before the game of skill machine is installed on the licensed premises.
" (2) A retailer may register and operate up to 5 game of skill machines on the licensed premises at any time. The registration fee for each game of skill machine shall be $100.
" (3) The Office shall issue to the retailer a registration sticker for placement on each registered game of skill machine.
" (c) A person shall apply for a retailer's license on a form prescribed by the Office. The form shall require:
" (1) The name of the applicant;
" (2) The mailing address of the applicant and, if the applicant is a corporation, the name of the state in which it is incorporated, the location of its principal place of business, and the names and addresses of its directors;
" (3) A report of the applicant's financial activities, including evidence of financial stability, such as bank statements, business and personal income and disbursement schedules, and tax returns; and
" (4) Any other information the Office considers necessary.
" (d) An applicant for a retailer's license shall pay a nonrefundable application fee of $300 with the application.
" (e) A retailer's license shall be renewed annually; provided, that the licensee continued to comply with the statutory and regulatory requirements and pays upon submission of its renewal application a $300 renewal fee.
" (f) The Office shall require a retailer to be bonded, in such amounts and in such manner as determined by the Office, and to agree, in writing, to indemnify and hold harmless the District government against any actions, claims, and demands of whatever kind or nature that the District may incur by reason of or in consequence of issuing the retailer's license to the retailer.
" Sec. 410. Minimum requirements of game of skill machines.
" (a) (1) Every game of skill machine offered for play shall first be tested and approved pursuant to this title and rules issued pursuant to this title.
" (2) The Office shall utilize the services of an accredited independent outside testing laboratory to test and assess each game of skill machine.
" (3) The applicant shall be responsible for paying the fees associated with testing the game of skill machines.
" (b) Every game of skill machine offered in the District shall meet the minimum standards approved by the Office, including that a game of skill machine:
" (1) Conform to all requirements of federal law and regulations, including the Federal Communications Commission's Class A emissions standards;
" (2) Pay out a mathematically demonstrable percentage during the expected lifetime of the machine of all amounts played, which shall not be less than 80%;
" (3) Display an accurate representation of the game outcome;
" (4) Not automatically alter pay tables or any function of the game of skill machine based on an internal computation of a hold percentage or have a means of manipulation that affects the random selection process or probabilities of winning a game;
" (5) Not be negatively affected by static discharge or other electromagnetic interference;
" (6) Be capable of displaying the following during idle status: "power reset"; "door open"; or "door closed";
" (7) Be able to detect and display the game's complete play history and winnings for the previous 10 games;
" (8) Not have a theoretical payback percentage capable of being changed without making a hardware or software change in the machine itself;
" (9) Be designed so that the replacement of parts or modules required for normal maintenance does not necessitate replacement of the electromechanical meters;
" (10) Contain a non-resettable meter that shall be located in a locked area of the machine that is accessible only by a key;
" (11) Be capable of storing the meter information required by paragraph (10) of this subsection for a minimum of 180 days after a power loss to the machine;
" (12) Have accounting software that keeps an electronic record that includes:
" (A) Total cash inserted into the game of skill machine;
" (B) The value of winning tickets awarded to players by the game of skill machine;
" (C) The total credits played on the game of skill machine;
" (D) The total credits awarded by the game of skill machine; and
" (E) The payback percentage credited to players of the game of skill machine;
" (13) Be linked to a centralized accounting system that will allow the Office to activate or deactivate the game of skill machine from the centralized system remotely; and
" (14) Be linked to a centralized accounting system in accordance with section 414 by which all approved game of skill machines shall be connected for the purposes set forth in section 414.
" (c) The CFO may issue rules to establish additional licensing and registration requirements.
" Sec. 411. Registration; display of registration sticker, license, and warning sign; locations of game of skill machines.
" (a) A retailer shall register each of its game of skill machines in the District with the Office before the game of skill machine may be installed at the licensed establishment.
" (b) A retailer shall locate its game of skill machines for play only in specific locations approved by ABRA within the retailer's licensed establishment.
" (c) A retailer shall affix and maintain a registration sticker issued by the Office to the game of skill machine at all times the game of skill machine is located at the establishment. If the registration sticker is damaged, destroyed, lost, or removed, the retailer shall pay the Office $75 for a replacement registration sticker.
" (d) A retailer shall post both its retailer's license and a warning sign, maintained in good repair and in a place clearly visible at the point of entry to the designated areas where the game of skill machines are located. The warning sign shall include:
" (1) The minimum age required to play a game of skill machine;
" (2) The contact information for the District's gambling hotline; and
" (3) The contact information for the Office for purposes of filing a complaint against the manufacturer, supplier, distributor, or retailer.
" (e) Failure to display the registration sticker, license, or warning sign may result in the Office revoking or suspending the license or issuing a fine against the licensed establishment pursuant to section 416.
" Sec. 412. Cash award.
" (a) A game of skill machine shall not directly dispense cash awards to a player. If, at the conclusion of the game, a player is entitled to a cash award, the game of skill machine shall dispense a ticket or voucher to the player. The ticket or voucher shall indicate:
" (1) The total amount of the cash award;
" (2) The time of day that the cash award was issued in a 24-hour format showing hours and minutes, the date, the terminal serial number, and the sequential number of the ticket or voucher; and
" (3) An encrypted validation number from which the validity of the cash award may be determined.
" (b) A retailer shall allow a player to take the ticket or voucher to the owner of the licensed establishment or the owner's designee, who shall be located at the licensed establishment, for payment of the cash award.
" Sec. 413. Game of skill machine use by minors prohibited.
" (a) A licensee shall not permit a person under the age of 18 to use or play a game of skill machine.
" (b) The Office may suspend or revoke a license and issue a fine, in accordance with section 416, against a licensee that knowingly allows a person under the age of 18 to use or play a game of skill machine.
" Sec. 414. Centralized accounting system.
" (a) (1) Within 6 months after the effective date of the Game of Skill Machines Consumer Protection Act of 2020, passed on 2nd reading on July 28, 2020 (Enrolled version of Bill 23-760) ("Act"), the Office shall issue a solicitation to procure a centralized accounting system, which shall be administered by the Office and designed and operated to allow the monitoring and reading of all game of skill machines for the purpose of compliance with this title and rules issued pursuant to this title.
" (2) When the Office is satisfied with the operation of the CAS, it shall:
" (A) Certify the effective status of the system; and
" (B) Notify all retailers of the date by which the retailer's game of skill machines must be linked to the CAS.
" (b) (1) (A) A game of skill machine approved prior to the effective date of the Act shall be connected to the CAS within one year after notification pursuant to subsection (a)(2) of this section.
" (B) A game of skill machine approved on or after the effective date of the Act but prior to the deployment of the CAS shall be connected within 6 months after notification pursuant subsection (a)(2) of this section.
" (C) A game of skill machine approved after the effective date of the Act and after deployment of the CAS shall be connected to the CAS prior to operation of the game of skill machine.
" (2) After a game of skill machine has been connected to the CAS, it shall remain connected as required by the Office.
" (c) All game of skill machines registered in the District shall be linked to the CAS for purposes of accounting, reporting, monitoring, and reading machine activities as provided for in this title or rules issued pursuant to this title.
" (d) The CAS shall not provide for the monitoring or reading of personal or financial information concerning patrons of game of skill machines.
" (e) Employees and agents of a contractor or subcontractor of the Office that is engaged in building, operating, maintaining, or contracting to build, operate, or maintain the CAS, and the immediate family members of such employees and agents, shall be prohibited from obtaining a license under this title.
" (f) Unless a retailer's license is canceled, suspended, or revoked, nothing in this section shall authorize the Office to limit or eliminate a registered game of skill from the CAS.
" Sec. 415. Insurance.
"Each distributor shall maintain liability insurance on all game of skill machines that it places in a licensed establishment in an amount set by the Office by rule issued pursuant to this title.
" Sec. 416. Penalties.
" (a) In the event of a violation of this title or a rule issued pursuant to this title, the Office may:
" (1) Impose a fine of not more than $50,000;
" (2) Revoke a licensee's license; or
" (3) Suspend the licensee's license for up to one year.
" (b) A person that has been fined or whose application has been denied, revoked, or suspended pursuant to this section shall have a right to a hearing before the Office and, in the event of the Office's affirmation of the fine, denial, revocation, or suspension, the right to appeal the decision of the Office to the Superior Court of the District of Columbia.
" (c) The Office shall notify ABRA within 48 hours after the Office suspends or revokes a retailer's license.
" Sec. 417. Authority of the Office.
" (a) The Office may enforce the provisions of this title with respect to licensees and any individual or entity not holding a license and offering a game of skill machine in violation of the provisions of this title or rules issued pursuant to this title.
" (b) Subject to subsection (c) of this section, the Office and the Metropolitan Police Department may issue citations for civil violations of this title as set forth in rules issued pursuant to this title.
" (c) A citation for a violation for which the penalty includes the suspension or revocation of a license shall be issued by the Office as a result of an investigation carried out by the Office.
" (d) The Office may request and check the identification of a person who has played, is playing, or is attempting to play a game of skill machine. The Office may seize evidence that substantiates a violation under this title, which may include seizing the tickets, vouchers, or cash awards issued to a person under the age of 18 and fake identification documents used by a person under the age of 18.
" (e) The Office may seize a game of skill machine license from an establishment if:
" (1) The game of skill machine license has been suspended, revoked, or canceled by the Office;
" (2) The business is no longer in existence; or
" (3) The business has been closed by another District government agency.
" Sec. 418. Investigations and inspections.
" (a) The Office may conduct investigations, searches, seizures, and perform other duties authorized by this title and rules issued pursuant to this title.
" (b) An applicant for a license and each licensee shall allow an authorized member of the Office, an ABRA investigator, or any member of the Metropolitan Police Department full opportunity to examine at any time during business hours:
" (1) The location on the premises where game of skill machines are available to play; and
" (2) The books and records of the licensee or applicant.
" Sec. 419. Unlawful acts; action by the Attorney General.
" (a) (1) No manufacturer, distributor, supplier, licensed establishment, or employee or agent of a manufacturer, distributor, supplier, or licensed establishment shall intentionally make a false or misleading representation concerning an individual's chances, likelihood, or probability of winning at playing a game of skill machine.
" (2) An individual or entity claiming to be aggrieved by a fraudulent act or a false or misleading statement by a licensee shall have a cause of action in a court of competent jurisdiction for damages and any legal or equitable relief as may be appropriate.
" (b) The Attorney General for the District of Columbia, in the name of the District of Columbia, may bring an action in the Superior Court of the District of Columbia to enjoin an individual or entity or to seek a civil penalty of up to $50,000 for a violation of this title or rule issued pursuant to this title.
" Sec. 420. Taxation of game of skill machines.
" (a) (1) On or before the 20th day of each month, each retailer shall:
" (A) File a return, on forms and in the manner prescribed by the CFO, with the CFO indicating the amount of gross game of skill machine revenue for the retailer's game of skill machines for the preceding calendar month; and
" (B) Pay to the District of Columbia Treasurer 10% of the gross game of skill machine revenue for the preceding month.
" (b) All funds owed to the District under this section shall be held in trust within the boundaries of the District for the District by the retailer until the funds are paid to the District of Columbia Treasurer.
" (c) A retailer that falsely reports or fails to report the amount due as required by this section may be fined or imprisoned in accordance with Title 22 of the District of Columbia Official Code and shall have its retailer's license revoked.
" (d) A retailer shall keep a record of the gross game of skill machine revenue, awards, and net income of each game of skill machine in such form as the Office may require.
" (e) A payment required by this section that is not remitted when due shall be assessed a late payment penalty in amount set forth in D.C. Official Code § 47-4213.
" (f) In the case of an underpayment of the tax required by this section, there shall be added to the tax, an amount of interest determined by applying the underpayment rate set forth in D.C. Official Code § 47-4201 to the amount of the underpayment for the period of the underpayment.
" Sec. 421. Deposit of license fees.
"All fees collected under sections 406 through 409 shall be deposited in the Lottery, Gambling, and Gaming Fund, established by section 4 (D.C. Official Code § 36-601.12).".
" Sec. 422. Rules and regulations governing game of skill machines.
" (a) The CFO, pursuant to section 424(d) of the District of Columbia Home Rule Act, approved April 17, 1995 (109 Stat. 142; D.C. Official Code § 1-204.24d), shall issue rules to implement the provisions of this title.
" (b) The rules issued by the CFO pursuant to subsection (a) of this section shall include:
" (1) Standards for conducting inspections of game of skill machines for compliance with industry standards;
" (2) Standards for inspecting licensed establishments for compliance with this title;
" (3) Minimum and maximum payment amounts for playing game of skill machines;
" (4) The maximum amount of allowable winnings per game;
" (5) Requirements relating to how fees and taxes are to be remitted;
" (6) The method of accounting to be used by a licensed establishment where a game of skill machine is authorized;
" (7) Methods of age verification;
" (8) Types of records that shall be required to be maintained by a licensee;
" (9) Posting requirements;
" (10) Advertising guidelines, including specific language concerning individuals under the age of 18;
" (11) Penalties for a violation of this title or rule issued pursuant to this title; and
" (12) Internal control standards for game of skill machines.".
Sec. 6023. Title 25 of the District of Columbia Official Code is amended as follows:
(a) Chapter 1 is amended as follows:
(1) Section 25-101 is amended as follows:
(A) A new paragraph (22B) is added to read as follows:
" (22B) "Game of skill machine" has the meaning set forth in section 401(6) of the Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for Charitable Purposes in the District of Columbia, passed on 2nd reading on July 28, 2020 (Enrolled version of Bill 23-760) .".
(B) A new paragraph (53A) is added to read as follows:
" (53A) "Voucher" means a ticket issued by a game of skill machine that is redeemable for cash winnings.".
(2) Section 25-113a is amended as follows:
(A) The section is redesignated as § 25-113.01.
(B) The section heading is amended to read as follows:
" Sec. 25-113.01. License endorsements.
(C) A new subsection (e) is added to read as follows:
" (e) (1) A licensee under a manufacturer's license class A or B holding an on-site sales and consumption permit, or an on-premises retailer's license, class C/R, D/R, C/H, D/H, C/T, D/T, C/N, D/N, C/X, or DX, shall obtain a game of skill machine endorsement from the Board in order to offer a game of skill machine on the licensed premises.
" (2) (A) A game of skill machine shall not be placed on outdoor public or private space; provided, that the Board, in its discretion, may allow for the placement of a game of skill machine on outdoor public or private space if, in the Board's determination, activity associated with the game of skill machine is:
" (i) Not visible from a public street or sidewalk;
" (ii) Adequately secured against unauthorized entrance; and
" (iii) Accessible only by patrons from within the establishment.
" (B) Subparagraph (A) of this paragraph shall not apply to a licensee operating a passenger-carrying marine vessel in accordance with § 25-113(h) .".
(b) Section 25-401 is amended by adding a new subsection (e) to read as follows:
" (e) An applicant for a game of skill machine endorsement shall submit to the Board with its application:
" (1) A diagram of where the game of skill machines will be placed on the licensed premises; and
" (2) The name of the manufacturer and distributor of the game of skill machines and documentation reflecting that the manufacturer and distributor are licensed to do business and pays taxes in the District of Columbia.".
(c) Section 25-508 is amended to read as follows:
" Sec. 25-508. Minimum fee for permits, and manager's license, and endorsement.
"The minimum fees for permits, manager's license, and endorsement shall be as follows:
"Tasting permit for class A licensees $100/year
"Importation permit $5
"Manager's license $100/year
"On-site sales and consumption permit $1,000/year
"Game of skill machine endorsement $200".
(d) Chapter 7 is amended as follows:
(1) The table of contents is amended by adding a new section designation to read as follows:
25-786. Game of skill machine operating requirements.
(2) Section 25-763 is amended by adding a new subsection (g) to read as follows:
" (g) Exterior signs advertising game of skill machines shall be prohibited on the licensed establishment.".
(3) Section 25-765 is amended by adding a new subsection (c) to read as follows:
" (c) Advertisements related to game of skill machines shall not be placed on the interior or exterior of a window or on the exterior of a door that is used to enter or exit the licensed establishment.".
(4) A new section 25-786 is added to read as follows:
" Sec. 25-786. Game of skill machine operating requirements.
" A licensee with a game of skill machine endorsement shall:
" (1) Not allow or permit a person under 18 years of age to play a game of skill machine and shall designate an employee to regularly monitor the designated area where game of skill machines are played to ensure that no person under 18 years of age is playing or attempting to play a game of skill machine;
" (2) Verify that each person playing a game of skill machine is lawfully permitted to do so by checking the person's government-issued identification document upon entry into either the licensed establishment or the designated area where the game of skill machines are located and where the person seeks to cash out his or her winnings, if any; except, that the failure of a licensee to verify a person's identification shall not be a violation of this paragraph if the person whose identification was not checked is 18 years of age or older;
" (3) Not allow or permit a person that appears intoxicated or under the influence of a narcotic or other substance to play a game of skill machine;
" (4) Not share revenue from the licensee's sale of alcohol with a manufacturer or distributor of a game of skill machine, unless approved by the Board as an owner of the license;
" (5) Not allow or permit the placement of a game of skill machine on an outdoor public or private space that has not been approved by the Board;
" (6) Not allow or permit the placement of a game of skill machine outside of the designated areas contained on the applicant's diagram provided as part of the license application or outside the areas approved by the Board;
" (7) Not have more than 5 game of skill machines on the licensed premises; and
" (8) Install security cameras that are operational and record for 30 days, in the areas designated for game of skill machines, near the cash register or terminal where cash winnings of game of skill machines are processed, and where the licensee's money is stored.".
(e) Section 25-801 is amended by adding a new subsection (h) to read as follows:
" (h) An ABRA investigator may request and check the identification of a person who has played, is playing, or is attempting to play a game of skill machine. An ABRA investigator may seize fake identification used by a person under 18 years of age and may seize such records related to a game of skill machine as the investigator deems appropriate to investigate the playing of a game of skill machine by a person under 18 years of age.".
Sec. 6024. Section 865 of An Act To establish a code of law for the District of Columbia, approved March 3, 1901 (31 Stat. 1331; D.C. Official Code § 22-1704), is amended as follows:
(a) The existing text is designated as subsection (a).
(b) A new subsection (b) is added to read as follows:
" (b) It shall be unlawful to install or operate a game of skill machine in the District except as permitted by D .C. Official Code § 25-113.01(e) . Whoever shall install or operate a game of skill machine at a location not licensed under Title 25 of the District of Columbia Official Code shall be punished by imprisonment for a term of 180 days or fined not more than the amount set forth in section 101 of the Criminal Fine Proportionality Amendment Act of 2012, effective June 11, 2013 (D.C. Law 19-317; D.C. Official Code § 22-3571.01) , or both.".