.01 General Responsibilities.

A. Lottery Laws and Regulations. A retailer shall:

(1) Comply with all lottery laws and regulations of the Agency;

(2) Be aware of all lottery laws and regulations pertaining to the duties and responsibilities of a retailer; and

(3) Inform the Director of an act or omission that the retailer knows or should know constitutes a violation of lottery laws and regulations.

B. Services. A retailer shall:

(1) Provide specified services for the Agency, including the sale, cashing, and issuance of lottery tickets as directed by the Agency;

(2) Sell a lottery ticket for cash only;

(3) Sell lottery tickets only at the location specified on the retailer’s license.

(4) Exercise courteous and fair treatment to lottery ticket purchasers;

(5) Sell all games as directed by the Agency;

(6) Except for those requiring submission of a claim form to the Agency, pay every winning ticket upon validation under COMAR 36.02.06;

(7) Report, as required by the Internal Revenue Service or the Agency, income tax information relating to holders of winning lottery tickets;

(8) Charge no fee for the issuance or cashing of checks for lottery winnings;

(9) Display the retailer’s license in a prominent location;

(10) Keep playslips in stock and available to players;

(11) Not sell any lottery ticket or lottery-style ticket other than those made available for sale by the Agency;

(12) Obtain prior Agency approval for any advertising of a permanent or semi-permanent nature such as signs and billboards, other than advertising located on the licensed premises; and

(13) Prominently post point-of-sale and other promotional/consumer materials supplied by the Agency.

C. Care of Terminals. A retailer shall:

(1) Place terminals within the retailer’s premises only on a site approved by the Agency;

(2) Provide sufficient space for the proper operation of the terminal;

(3) Provide all electrical requirements as prescribed in the vendor pre-site form, before the installation of the terminal;

(4) Participate in training approved by the Agency;

(5) Replace lottery ticket stock when necessary;

(6) Provide reasonable care and security for lottery ticket stock;

(7) Exercise due diligence in the operation, security, and care of the terminal as specified in the retailer’s operating manual;

(8) Perform no mechanical or electrical maintenance on the terminal except as directed by the Agency or an Agency vendor;

(9) As directed by the Agency, immediately notify the technical support operations center in the event of any terminal malfunction;

(10) Make the terminal available for the sale and cashing of lottery tickets as directed by the Agency;

(11) Except for materials that are provided by the Agency and are specifically authorized to be placed on a terminal, keep all surfaces of the terminal free and clear;

(12) Pay all electrical utility charges in connection with the operation of the terminal; and

(13) Assume the cost of any repairs to the terminal arising out of or related to:

(a) Unauthorized attempts to modify or repair the terminal;

(b) Unauthorized attempts to move or relocate the terminal; and

(c) Intentional damage to the terminal or defacement of the terminal surface or repeated or continuing negligence which results in damage to the terminal.

D. A retailer shall hold the Agency and the State of Maryland and their officials and employees harmless from any liability arising in connection with operating and conducting lottery ticket sales.

E. A retailer shall notify the Agency at least 14 days before the retailer temporarily or permanently ceases the operation of the retailer’s business.

F. If a person ceases to be a retailer, the person shall:

(1) Surrender, or allow an Agency vendor to remove, any materials or equipment that were provided by the Agency or a vendor of the Agency; and

(2) Assume the cost of any repairs to the retailer’s location arising from the removal of the Agency’s equipment.