Gaming Regulations

State of Maryland

Situation

Following a 2008 Referendum approving up to 15,000 video lottery terminals in five facilities within the State of Maryland, the Maryland State Lottery Agency needed a consultant to advise it on the development and implementation, within the constraints of the enabling statute, of a comprehensive regulatory scheme covering the conduct of video lottery terminal operations and the development of the Request for Proposals required to facilitate its acquisition of the video lottery terminals and a central control computer system to monitor activity at those video lottery terminals.

Approach

WhiteSand was able to successfully develop effective regulatory controls commensurate with the statutory provisions by developing a consensus approach involving all stakeholders: the facility operators, the video lottery terminal manufacturers, central system provider, service vendors and the Lottery to ensure that the operating controls were cost effective, clearly apportioned responsibility among the parties and that the necessary segregation of duties was attained. WhiteSand likewise ensured the success of the request for proposal process in similar fashion.   Our involvement ensured that the Lottery was able to clearly and concisely communicate its technical requirements to bidding manufacturers and distributors.

Results

Drawing upon its regulatory expertise, WhiteSand developed facility construction and approval standards, accounting and internal control standards and video lottery technical standards that were both consistent with the Lottery’s existing regulatory philosophy and the highest industry best practices. This aspect of the engagement was successfully concluded with the adoption by the Maryland Lottery Commission on August 23, 2010 of the comprehensive regulatory approach recommended by WhiteSand, which approach was formalized in COMAR 14.01.13, Facility Standards, COMAR 14.01.14, Video Lottery Facility Minimum Internal Control Standards and COMAR 14.01.15, Video Lottery Technical Standards.

Utilizing our information technology and casino operations expertise, WhiteSand developed for the Lottery two very technically robust Requests for Proposals coordinated with Lottery staff the attendant question and comment period and assisted Lottery staff with technical and operational aspects of terminal and central control computer system selection, acquisition, configuration and implementation.