§ 36–641.07. Distributor licensure.
(a) A person may not, after March 31, 2021, engage in any of the following activities unless the person has a valid distributor's license issued by the Office:
(1) Buy or lease from a manufacturer a game of skill machine for distribution in the District;
(2) Sell, lease, or distribute a game of skill machine in the District or market for sale, lease, or distribution a game of skill machine in the District; or
(3) Repair, replace, maintain, or service a game of skill machine or a major component or part of a game of skill machine in the District or market the repair, replacement, or maintenance of a game of skill machine or a major component or part of a game of skill machine in the District.
(b) A licensed distributor may sell, lease, or distribute a game of skill machine, or repair, replace, maintain, or service a game of skill machine or any major component or part of a game of skill machine in the District to a licensed establishment that possesses a game of skill machine endorsement from the ABC Board pursuant to§ 25-113.01(e), and after March 31, 2021, a retailer's license from the Office. 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; provided, that a distributor may provide funding to a licensed establishment for the payment of winnings to players of the distributor's game of skill machines in the licensed 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) Such other information as the Office may require by rule.
(d) In considering whether to approve an application for a distributor's license, the Office may consider, among such other evidence that may come before the Office, evidence of the applicant's licensure, conduct, and activities in another jurisdiction.
(e) An applicant for a distributor's license shall demonstrate that the equipment, system, or device that the applicant plans to offer to retailers conform
s to standards established pursuant to this subchapter, the rules issued pursuant to this subchapter, 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 models and versions of 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 as provided in § 36-641.09.