aVLT CENTRAL SYSTEM RFP #2021-06 (10-1-2020).docx

STATE OF MARYLAND

MARYLAND LOTTERY AND GAMING CONTROL COMMISSION (MLGCC)

REQUEST FOR PROPOSALS (RFP)

CENTRAL MONITOR AND CONTROL SYSTEM FOR A VIDEO LOTTERY TERMINAL PROGRAM

RFP NUMBER MLGCA #2021-06

ISSUE DATE: OCTOBER 1, 2020

NOTICE

A Prospective Offeror that has received this document from a source other than eMarylandMarketplace Advantage (eMMA) https://procurement.maryland.gov should register on eMMA. See Section 4.2

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO RESPOND TO THIS SOLICITATION.

VENDOR FEEDBACK FORM

To help us improve the quality of State solicitations, and to make our procurement process more responsive and business friendly, please provide comments and suggestions regarding this RFP. Please return your comments with your response. If you have chosen not to respond to this RFP, please email this completed form to the attention of the Procurement Officer (see Key Information Summary Sheet below for contact information).

Title: Central Monitor and Control System for a Video Lottery Terminal Program RFP No: MLGCA #2021-06

1. If you have chosen not to respond to this RFP, please indicate the reason(s) below:

· Other commitments preclude our participation at this time

· The subject of the solicitation is not something we ordinarily provide

· We are inexperienced in the work/commodities required

· Specifications are unclear, too restrictive, etc. (Explain in REMARKS section)

· The scope of work is beyond our present capacity

· Doing business with the State is simply too complicated. (Explain in REMARKS section)

· We cannot be competitive. (Explain in REMARKS section)

· Time allotted for completion of the Proposal is insufficient

· Start-up time is insufficient

· Bonding/Insurance requirements are restrictive (Explain in REMARKS section)

· Proposal requirements (other than specifications) are unreasonable or too risky (Explain in REMARKS section)

· MBE or VSBE requirements (Explain in REMARKS section)

· Prior State of Maryland contract experience was unprofitable or otherwise unsatisfactory. (Explain in REMARKS section)

· Payment schedule too slow

· Other: __________________________________________________________________

2. If you have submitted a response to this RFP, but wish to offer suggestions or express concerns, please use the REMARKS section below. (Attach additional pages as needed.)

REMARKS: ____________________________________________________________________________________ Vendor Name: ___________________________________________ Date: _______________________ Contact Person: ___________________________________ Phone (____) _____ - _________________ Address: ____________________________________________________________________________ Email Address: ________________________________________________________________

STATE OF MARYLAND

MARYLAND LOTTERY AND GAMING CONTROL AGENCY (MLGCA)

KEY INFORMATION SUMMARY SHEET

Montgomery Park Business Center 1800 Washington Blvd., Suite 330 Baltimore, MD 21230 email:

Office Phone:

Robert.Howells@Maryland.gov 410-230-8789

1800 Washington Blvd., Suite 330 Baltimore, MD 21230 Attention: Robert Howells

Montgomery Park Business Center 1800 Washington Blvd., Suite 330 Baltimore, MD 21230

Conference will be held by Video Teleconference See Section 4.1 and Attachment A for directions and instructions.

Offerors are reminded that a completed Vendor Feedback Form is requested if a no-bid decision is made (see page 2).

The MLGCA’s existing contract for Central Monitor and Control System for a VLT Program (#2009-11) currently expires on September 26, 2021.

The Implementation Period shall be the period of time from the Effective Date of the Central Monitor and Control System Contract (#2021-06) that results from this RFP until the expiration date of the current Contract (#2009-11), during which time the Contractor shall install the system including all required components, and prepare to commence operations and assume responsibility for the statewide monitoring and control of the VLT program. The Contractor shall not be paid or accrue the right to any payments from the State during the Implementation Period.

1800 Washington Boulevard, Suite 330 Baltimore, MD 21230

TABLE OF CONTENTS – RFP

Central Monitor and Control System for a Video Lottery Terminal Program Solicitation #: MLGCA #2021-06 RFP Document

RFP for Maryland Lottery and Gaming Control Agency Page 137 of 189

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

To be considered reasonably susceptible of being selected for award, the Offeror must document in its Proposal that, within the last five (5) years, the following Minimum Qualifications have been met:

1.1.1 The Offeror shall have experience in the implementation and operation of a central system that can control all brands and models of VLTs or slot machines and Electronic Table Games, both fully automatic and hybrid. The proposed system must be able to operate fully where different kinds of machines are taxed at different rates. The proposed system must be able to control all machines that are currently approved in Maryland and be able to expand to other kinds of machines when authorized by State law. The proposed system must:

A. be owned and operational by the Offeror for not less than three (3) years;

B. currently control not less than 10,000 VLTs in a single jurisdiction; and C. be scalable to control not less than 20,000 VLTs across six or more gaming venues.

1.1.2 The software and hardware proposed shall currently be in operation in a regulated jurisdiction, with the exception that equivalent or improved newer releases or models of the proposed products and their architectures are acceptable at time of installation as accepted by and agreed to in writing by the MLGCC. The MLGCC shall not accept configuration items that are at the specifications or concept stage only, early in development, or that are products announced but not yet engineered and ready for manufacture and delivery. The MLGCC acknowledges that the Central System may require adaptation to Maryland's requirements and that component parts may need to be ordered and assembled for delivery.

1.1.3 The Offeror, if not currently licensed as a Manufacturer by the Maryland Lottery and Gaming Control Commission (MLGCC), shall include with its Proposal a completed Application for a Manufacturer's License, related forms and all required Application Fees and Background Investigation Fees as described in section 4.40. Fees shall be in the form of a check payable to the Maryland Lottery and Gaming Control Agency or a wire/electronic transfer. License Applications and fees received from Unsuccessful Offerors will be returned.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.1.1 The Maryland Lottery and Gaming Control Agency (“MLGCA”), on behalf of the Maryland Lottery and Gaming Control Commission (“MLGCC”), is issuing this Request for Proposals (“RFP”) to solicit proposals from qualified Offerors to provide the customization, development, implementation, operation, and maintenance of a complete turnkey Central Monitor and Control System for a Video Lottery Terminal Program (“Central System”).

2.1.2 It is the State’s intention to obtain goods and services, as specified in this RFP, through a Contract between the selected Offeror and the State. The Commission intends to make a single contract award as a result of this RFP. See RFP Section 4.9 Award Basis for more Contract award information.

2.1.3 Offerors may subcontract with other vendors to provide some of the requirements of the RFP, but Offerors must submit proposals encompassing all of the services required in the RFP and may not submit proposals for only a portion of the services specified in the RFP. An Offeror, either directly or through its subcontractor(s), must be able to provide all goods and services and meet all of the requirements specified in this RFP and the successful Offeror (Contractor) shall remain responsible for Contract performance regardless of subcontractor participation in the work.

2.1.4 The State will not accept a software application that is still under development. The software utilized in the solution shall be operational (i.e., not under development) and in production in a United States jurisdiction at the time of Proposal submission (see Section 1.1.1)

2.1.5 A Contract award does not ensure a Contractor will receive all or any State business under the Contract.

2.2 Background and Purpose

The Maryland Video Lottery Terminal (VLT) Program has been in operation since September 2010. The enabling legislation specified that the Maryland Lottery and Gaming Control Commission (“MLGCC” or “Commission”) shall regulate the operation of VLTs, including licensing of gaming Facility operators and the operation of a central system. The MLGCA is tasked to provide assistance to the MLGCC in the performance of its duties. In 2012 a referendum passed allowing the introduction of Table Games at Maryland VLT Facilities. All six VLT Facilities (i.e. casinos) currently offer Table Games.

The MLGCC, by and through the MLGCA, is issuing this RFP to invite qualified Offerors to submit proposals to provide the customization, development, installation, implementation, operation, and maintenance of a complete turnkey Central Monitor and Control System for a Video Lottery Terminal Program (“Central System”) which includes, but is not limited to, a primary operations center co-located with the MLGCC's headquarters, a primary Data Center, a remote hot back-up system, all operating and reporting software, and a Telecommunications Network that will connect each VLT Facility and all VLTs to the Central System as described more fully in this RFP. The MLGCC will retain ownership of the network wiring from the communications closets to the VLT, ETG and dealer controlled ETG banks within each Facility at the end of the current contract and the contract awarded as a result of this RFP. Nonetheless, it will be the Contractor’s responsibility to maintain and replace the cabling as needed over the life of the Contract.

There are currently six VLT Facilities in operation in Maryland. The locations, number of active VLTs (which includes ETGs and dealer controlled ETGs) and the number of table games at each as of February 2020 are provided in the below table. The current number of VLTs and table games operational as of the date of issuance for this RFP is significantly reduced due to the COVID-19 pandemic. The MLGCA can provide no estimates about if or when counts will return to the previous levels.These numbers are subject to further change as market conditions dictate and the Contractor shall modify its systems and network as needed to accommodate changes and expansion within the current Facilities.

The VLT Facility License renewal criteria and process has not yet been established.

Facility Name

Hollywood

Live!

Rocky Gap

Total

This RFP requires the Contractor to provide a Central System capable of supporting not less than 20,000 VLTs at the above six Facilities. The system should be upgradeable to permit the addition of more VLTs and/or Facilities should they be constitutionally authorized. The Central System shall be capable of controlling all brands and models of VLTs and Electronic Table Games (ETGs) currently approved for use in any United States jurisdiction and shall operate on a current, universally accepted industry protocol (e.g., Gaming Standards Association SAS, G2S).

If not currently licensed by the MLGCC at the time of Proposal submission, the Offeror shall include with its proposal a completed Application for a Manufacturer's License, related forms and Application and Background Investigation Fees as described in Section 4.40 - 4.42. Application forms are available electronically on the MLGCC’s website: www.mdgaming.com. Applicants and Licensees shall reimburse the MLGCC for all costs related to Background Investigations and licensing, to include but not limited to, Background Investigations conducted by a contractor for the MLGCC, in-house costs for MLGCC staff based on the hourly rates of the MLGCC employees, and all reasonable expenses such as travel, lodging, meals, etc.

2.2.1 Project Goals

A. To replace the entire existing VLT Central System and all associated system infrastructure (servers, site controllers, PCs, intersite communications networks, intrasite communications networks connecting all VLTs to the Central System) as well as a full suite of reporting tools for MLGCA’s use.

B. It is anticipated that all VLTs in each VLT Facility will be disconnected from the current system and connected to the new system in a phased approach based upon banks and sections within each VLT Facility. An alternative implementation plan may be proposed by an Offeror. To the extent possible, the MLGCC wants to minimize downtime and potential revenue losses resulting from implementation.

C. The incoming Contractor will be required to work with the current Contractor to import data to the new system.

2.2.2 Current Environment

INTELLIGENTM Central Management System by International Game Technology, PLC (“IGT”) is a redundant central system consisting of two hosts at the primary data center (PDC) and two hosts at the backup data center (BDC). The systems are configured in a quadplex configuration with a primary, a backup, and two spares. The systems comprise servers hosting relational databases and are configured with Red Hat® (Linux) operating systems (OSs). The communications infrastructure is redundant Enterprise Series servers (ES Connect) used for Multi-Terminal Site Controller (MTSC) management and an ES INTELLIGEN Management Terminal to host the ES INTELLIGEN Management Application. The network infrastructure and security comprise redundant routers, switches, and firewalls.

Each VLT Facility houses one or more MTSCs, which are connected to all VLTs. The MTSC is a server, or group of servers, that manages the VLT machines on the Facility floor. A MTSC manages up to 300 VLTs and contains Redundant Array of Independent Disks (RAID) disk subsystems and are part of the Facility built-in uninterrupted power supply (UPS) system. Ocean Downs Casino and MGM National Harbor utilize a singlemode fiber solution. Hollywood Casino Perryville, Live! Casino, Horseshoe Casino Baltimore, and Rocky Gap Casino utilize a Cat 6 solution.

2.2.3 Existing Reporting

The existing Central System produces a suite of reports used by MLGCC staff on a daily basis. All necessary data will be available in a new system and the MLGCC reserves the right to request specific formats for both file transfers and hard copy reports.

2.2.4 State Staff and Roles

In addition to the Procurement Officer and Contract Monitor, the Contractor will interact with the VLT Operations Department, Finance Department, Compliance, Internal Audit, and other stakeholders. The State will also provide a State Project Manager who will be responsible for overall coordination of the conversion from the incumbent provider to the successful Offeror.

2.2.5 Other State Responsibilities

A. All changes to the gaming floors must be completed based upon approved Change Requests. The State will conduct coin testing using staff and/or third parties for new game deployments.

B. The State is responsible for providing required information, data, documentation, and test data to facilitate the Contractor’s performance of the work, and will provide such additional assistance and services as is specifically set forth.

2.3 Responsibilities and Tasks

The following sections describe the SCOPE OF WORK for the providing of a Central Monitor and Control System for a Video Lottery Terminal Program. The Contractor shall deliver all requirements and shall be responsible for all technical functionality and business support.

The Procurement Officer will issue a Notice to Proceed (NTP) for any work required by the Contract, to include but not be limited to:

A. Installation and initial start-up of the Central System located at the MLGCC's headquarters, a hot back-up located off site, software, and all other Central System components, Telecommunications Network and equipment installed at a Facility;

B. Installation of all equipment related to the Central System that is required to be located at each Facility to support the existing VLTs and the Telecommunications Network connecting each Facility to the Central System; and C. The support of additional VLTs, ETGs and dealer controlled ETGs that may be installed at any VLT Facility.

It is anticipated that the MLGCC will issue multiple NTPs over the Contract term, or any extension thereof. The Contractor shall not perform any such work unless a written NTP is issued by the Commission.

2.3.1 General

A. The Contractor shall provide the customization, development, implementation, operation, and maintenance of a complete turnkey Central Monitor and Control System for a Video Lottery Terminal Program (“Central System”) which includes, but is not limited to, a primary operations center located at the MLGCC's headquarters, a primary data center either located at the MLGCC’s headquarters or remotely, a hot back-up system located separately from the primary data center, software, and a Telecommunications Network that will connect each VLT Facility and all VLTs to the Central System as described more fully in this RFP.

B. The VLT Facilities will separately procure VLTs, games and software from multiple manufacturers that will connect to and work with the Central System.

C. The Contractor shall coordinate the implementation of the Central System and Telecommunications Network with each of the VLT Facilities to ensure the smooth and timely installation of all components at the Facilities.

D. The Contractor shall coordinate the interoperability testing required by the MLGCC prior to the introduction of any new or upgraded VLT devices which will be selected by the VLT Facilities with the VLT Manufacturers to assist with the smooth and timely installation at the Facilities.

E. The Contractor shall be responsible for all costs, coordination and maintenance as they relate to the customization, installation, training, testing, operations and support of a turnkey Central System environment. Areas of the Contractor's responsibility specifically include, but are not limited to:

1) All Primary and Back-up Site communication lines, computer system components and peripheral equipment, including data center environmental equipment, mainframes/servers, front-end communications processor(s), printers, and storage media.

2) All communication lines and equipment to each VLT Facility.

3) All equipment at the VLT Facility necessary for communicating with the Primary Operations Site, Primary Data Center, Back-up Operations Site, Back-up Data center, the VLT floor, and each VLT within each VLT Facility.

4) All cabling infrastructure within each Facility (installation, termination and testing):

a) From the Point of Entry in a Facility to the Central System Wiring Closets

b) From the Central System Wiring Closet to each VLT Bank

c) From the VLT Bank to each VLT

d) From Central System Primary and Back-up Data Centers to the Commission

5) As needed, provide support to Facility staff for connectivity to each VLT including connection from the wiring closet to the VLT bank, within the VLT bank and to each VLT. Connectivity includes all hardware, software, cable runs, cable terminations, and cable testing.

6) All VLTs currently operational in Maryland VLT Facilities are equipped with an interface board, which is provided by the Facilities, as part of the incumbent contractor’s central system communications. If additional components within the VLTs, ETGs or the banks are required to operate the Contractor’s system, the Contractor is responsible for all costs to acquire and install the components.

F. Dispute Resolution – The Contract Monitor shall have the final authority to resolve any disputes between the Contractor and the VLT Facilities, VLT manufacturers, etc. Failure to meet performance requirements may result in the assessment of Liquidated Damages by the State in accordance with Section 3.4 of this Contract or in damages to other entities such as a Facility or VLT manufacturer.

G. Player Tracking Systems and Ticket-In/Ticket-out – The Facilities have installed their own player tracking systems and cashless technology (ticket-in/ticket-out). The Central System shall be totally independent of any such player tracking system and cashless technology and the Contractor shall have no responsibility for the installation, management or support of these Facility systems. The Contractor and Central System shall be responsible for the polling and reporting of VLT Ticket-in/Ticket-out meters. The VLT Facilities currently provide gaming data to the Agency in a format approved by the Commission. In the event a new casino management system is introduced at a VLT Facility, the Facility will be required to match the current reporting format.

H. The Contractor will be required to coordinate with VLT Facility slot departments and IT staff to manage ongoing changes to the gaming floors.

2.3.2 Central Monitor and Control System ("Central System")

A. General Requirements The Contractor shall provide a Central System with comprehensive functionality which shall include, but not be limited to, recording all gaming activities, Gross Terminal Revenue (GTR), inventory management, and information management reporting. The Contractor shall provide the following to the MLGCC for the duration of this Contract and any extension thereof:

1) Computer hardware and software, with full redundancy, and Telecommunications Network to support VLT operations.

2) A Central System which shall meet all performance requirements specified in this RFP.

3) A Central System which shall be operational daily, 24 hours per Day, 7 days per week providing implementation, maintenance, day to day operation and resolution of outages on the Telecommunications Network which links the VLT Facilities, devices and systems within the Facilities and any associated communication/networking equipment involved in the operation of the VLT network. There shall be no cost to the MLGCC or to the Facilities in resolving Telecommunication Network problems and/or repairs, including problems, which involve wiring or devices used to connect the VLTs to the Central System.

4) Any other item, equipment or service deemed necessary by the MLGCC for the efficient operation of the Central System.

B. Operations Procedures The Contractor shall:

1) Create and document the procedures for computer operations staff, especially regarding failure situations, in a straightforward manner.

2) Provide to the Contract Monitor documentation on how the Central System will maintain the required availability and how upgrades will be performed throughout the term of the Contract, and any Contract extensions.

3) Create documentation on how the Central System shall be compatible with all VLTs using open industry protocols (such as: SAS, G2S and S2S).

4) Document the procedures and processes on how the MLGCC shall be able to activate, de-activate and re-activate an individual VLT, a bank of VLTs or a whole Facility.

5) Provide to the Contract Monitor a site implementation guide detailing what the Facilities must make available to the Contractor to assure successful deployment of the new VLT system equipment at each Facility.

C. Redundancy The Contractor shall provide and operate Primary and Back-up Sites including, but not limited to, facilities, equipment and staff. The Contractor shall provide a telecommunication transport path between its Primary and Back-up Data Centers. The intent is to assure Central System survival in the event of a major outage. Each of these transport paths shall be capable of supporting all of the gaming traffic, the traffic needed between the Data Centers, and the traffic between the Data Centers and the MLGCC.

The Central System computer shall be a state-of-the-art, fault-tolerant, redundant, high availability system. The Central System may be configured in a variety of ways to achieve the desired results. If an Offeror chooses to utilize virtual machines for any portion of the Central System, there shall be no shared hardware; the environment must be entirely dedicated to the MLGCC. All computer system components and peripheral equipment, including front-end communications processor(s), system printers and storage media must be similarly fault-tolerant and redundant and maintain high availability. No performance degradation or loss of system functionality shall occur with the failure of a single system component. The Central System’s storage management solution shall provide fault tolerance and scalability. The remaining system(s) shall immediately assume the load in case of a failure in one system without loss or corruption of any data and transactions received prior to the time of the failure, with minimal service disruption and no loss of processing continuity.

Primary System recovery from a one-system failure shall be accomplished immediately while still maintaining current transactions. This includes the ability to fully service the communications network supporting the VLTs and management terminals.

Back-up System recovery from a Primary Data Center failure shall be accomplished immediately without loss of any transactions. This includes the ability to fully service the communications network supporting the VLTs and supplying management terminals.

D. Central System Requirements

1) The Central System shall have the capability to support not less than twenty-thousand (20,000) VLTs and six (6) Facilities. The Central System, as delivered and installed, shall be capable of supporting a network of 15,000 VLTs and associated controllers during peak transaction volume. The proposed system must be able to operate fully where different kinds of machines are taxed at different rates. The proposed system must be able to control all machines that are currently approved in Maryland and be able to expand to other kinds of machines when authorized by State law.

2) The Central System shall operate on a universally accepted gaming industry open protocol (e.g., Gaming Standards Association SAS, G2S, S2S) to facilitate the ability of the maximum number of VLT manufacturers to communicate with the Central System and shall be capable of controlling all brands and models of VLTs currently approved in a regulated United States jurisdiction.

3) The Central System shall provide the capacity for at least an eleven (11) digit dollar amount ($99,999,999,999.99) for VLT sales.

4) The Central System shall be configurable and capable of future scaling and expansion of transactions, storage, Facility locations, and number of VLTs.

5) Alarms and monitoring devices shall be in place and shall automatically notify the MLGCC if the Central System goes down. All levels of sensing such as environmental and system/network availability shall be considered and captured. The Contractor shall notify the MLGCC based upon notice and escalation procedures as approved by the MLGCC.

6) At the direction of the MLGCC, the Central System shall be able to immediately start or cease gaming functions by disabling or enabling any individual VLT, any group of VLTs, or all VLTs. The Contractor shall provide for a process of executing a shutdown command from the Central System that causes VLTs to cease functioning and a process of executing a startup command from the Central System. Both automatic and manual shutdown capabilities shall be available from the Central System. The Central System shall have the functionality to disable and enable VLTs at a VLT Facility and system wide with a single command for each type.

7) When communication between the Central System and a VLT is disrupted, the components shall automatically resume processing as soon as communication is restored without any loss of data.

8) The Central System shall provide a warning for each VLT when polled meters are outside of expected parameters which will allow the Contractor and Facility to proactively react to inaccurate or suspected inaccurate meter readings. The Central System shall provide the setting and monitoring of thresholds that provide an alert to the MLGCC in the event any and all meters fall outside of the established threshold values.

9) The Central System shall provide a single point of entry for all management functions from Management Terminals on the MLGCC's Local Area Network (LAN).

10) The Management Terminal software and emulators shall be compatible with the current version of Microsoft Windows (Windows 10 or higher).

11) The Central System shall be capable of accepting and processing adjustments to include specification of a dollar amount and explanation for the adjustment. Posting of adjustments shall be allowed from either Management Terminals or in bulk using computer files. The Central System shall provide a single screen for meter adjustments which will allow all adjustments to key meters to be made on a single screen.

12) The Central System shall provide the capability for VLTs to operate for up to twenty-four (24) hours without connection to the Central System, with all data being collected and stored without loss by the site controllers.

13) The functions of the Central System shall not be obtrusive to players or to employees who require real-time monitoring of security events and financial transactions, or for servicing of the VLTs. The performance of the Central System shall not degrade during its normal functionality. In addition, the Central System shall provide capacity to accommodate VLT populations, play volumes, and event recording consistent with all specifications.

14) Time Synchronizing:

a) Multiple systems in the configuration, such as a clustering of processors, shall have a time synchronizing mechanism to ensure consistent time recording and reporting for events and transactions.

b) The Primary and Back-up Systems shall be time-synchronized, to ensure that both Systems have all transaction data at all times.

c) The Central System shall provide Synchronization with an external time standard.

E. Power-up and Power Failure Recovery During a Central System power-up or power recovery, the Contractor shall monitor the Central System and all VLTs to ensure the proper response and functioning of all VLTs. The Contractor shall respond to any VLT request to reestablish connectivity with the Central System within five (5) minutes. The Contractor shall establish and follow a manual intervention process for corrective action for any VLT that does not respond or fails to function properly, including communications and coordination with the Facility.

F. Hardware

1) The Contractor shall obtain prior approval in writing from the MLGCC before making any enhancement or modification to the hardware configuration or procedures.

2) All hardware and ancillary peripherals making up the Central System shall be new equipment that has not previously been used or refurbished, with the exception of data lines between site controllers and the VLT banks.

G. Software

1) Unauthorized Changes to Software The Contractor shall obtain prior written approval from the MLGCC before making any enhancement or modification to the operating software, configuration or procedures. The Contractor shall run a software utility on a daily basis that checks to ensure software libraries have not been modified in order to prevent unexpected and non-approved software changes. The Central System shall automatically generate and send daily to the MLGCC a report of the results of the software utility check.

2) Software Licenses and Escrow All software installed by the Contractor, as well as any maintenance or enhancements to that software, and all program documentation supplied by the Contractor for the duration of the Contract, shall be licensed to the MLGCC for the duration of the Contract and any extensions at no additional cost.

The Contractor shall provide to the MLGCC, or place in escrow with an escrow agent, in a form acceptable to the MLGCC, up to date copies of all software source code and related documentation developed (or modified) by the Contractor to operate the Central System and games. If the Contractor supplies existing software for which it or others have copyright/ownership rights, the Contractor shall either provide the source code directly to the MLGCC, in a form acceptable to the MLGCC, or shall place the source code in escrow with an escrow agent. Two copies of all source code shall be provided in a format approved by the MLGCC. The Contractor shall require the escrow agent to provide written notification to the MLGCC upon receipt of the source code. See Section 3.15.1 – Source Code Escrow for escrow requirements.

3) Protocol Simulation

a) The Contractor shall furnish specifications, protocols and formats of messages to/from the Central System. This also includes communication between Central System devices.

b) Protocol Simulator

i. The simulator shall adequately support and exercise all of the transactions and message types that are to be used by the communications protocol.

ii. The simulator shall be capable of generating common communication errors to confirm that the VLT software is properly handling the event (i.e., malformed messages, no acknowledgement, incorrect cyclic redundancy checking ("CRC"), incorrect data, etc.).

iii. The simulator shall provide for performance/volume testing.

iv. An operations manual or other suitable documentation shall be supplied with the simulator.

v. The simulator shall run on standard, freely available equipment such as a PC or the equivalent. Alternatively, the supplier may loan suitable simulator hardware to all users approved by the Contract Monitor.

4) Software Validation

a) The Central System shall initiate a signature validation command whenever any VLT is enrolled.

b) If a VLT fails the signature validation test, it shall not be possible to enable that VLT into normal mode without manual intervention at the level of the Central System, which shall generate a report for both validated and failed VLTs and which the Contractor shall submit daily to the MLGCC.

c) One of the following two methods of signature check reference storage shall be implemented:

i. Game software image storage: All game software images that exist in the VLT shall also be stored in the Central System. The game software images stored in the Central System are used for signature calculations and are subsequently used to validate the signature calculation results reported from the VLT.

ii. Pre-calculated signature results storage: The table of signature results shall have at a minimum of five (5) entries. These entries shall be generated from randomly selected seed values for each game and repopulated on a daily basis. The utility program used to generate the signature check result table shall be approved by the MLGCC.

d) Both the game software image and pre-calculated signature results are sensitive data files that shall have appropriate security such as password protection and file encryption.

e) If the image used for validating the VLT software is comprised of more than one program or device (for example, a VLT may have one main program and one game program) the Central System shall have the functionality to allow the operator to load each component individually and the Central System shall combine the individual images based upon the scheme supplied by the VLT manufacturer to create the combined image.

H. Accounting Requirements

1) The Central System shall monitor the operation of each VLT and create reports using, at a minimum, the following information:

a) Number of cents wagered;

b) Number of cents won;

c) Number of cents paid out by a printed ticket;

d) Number of cents accepted via a printed ticket;

e) Number of cents accepted via coin, bill, ticket or other instrument of value;

f) Number of cents transferred to the VLT electronically;

g) Number of cents transferred from the VLT electronically;

h) Number of cents paid out via hand pay or canceled credit;

i) Number of cents paid out via jackpot;

j) Number of cumulative credits representing money inserted by a player;

k) Number of cents on the credit meter;

l) Number of games played;

m) Number of games won;

n) Number of times the logic area was accessed;

o) Number of times the cash door was accessed;

p) Each person who accessed the logic area and the date and time it was accessed;

q) Each person who accessed the cash door and the date and time it was accessed;

r) The number of all promotional credits (cashable and non-cashable) received at the game;

s) The value of all promotional credits (cashable and non-cashable) received at the game;

t) The number of all promotional credits (cashable and non-cashable) sent from the game;

u) The value of all promotional credits (cashable and non-cashable) sent from the game;

v) The number and value of other electronic credits including, but not limited to, Debit Cards, Gift Cards and Smart Cards; and

w) For Progressive Games the Central System shall account for and report progressive jackpots.

2) The Central System shall receive all meter-reading data in real time in an on-line, automated fashion. At a minimum, the Central System shall poll all VLTs on an hourly basis. Manual reading of meter values may not be substituted for automated requirements.

3) The Central System shall acquire and report the VLT game meter readings directly from the VLTs. An external or Central System meter incrementation process shall not be used. The Central System shall read and report using the full set of actual VLT meters.

4) The Central System shall be able to process all VLT game meter sizes and record lengths with scalability for future growth or enhancement.

5) The Central System shall provide support for promotional credits and provide a breakout of promotional credits by VLT Facility, which shall include both cashable and non-cashable promotional credits. In addition, the MLGCC has established a threshold of non-taxable promotional credits on an annual basis. The current threshold is 20% of the prior year’s net win. The Central System shall report on the status of promotional credits within that threshold. In the event the threshold is surpassed, the Central System shall continue to separately report the promotional credits but include the value of credits redeemed over the threshold as taxable win.

6) The Central System shall be configured to properly account for RAM clear, or other scenarios where all or part of a VLT’s master meter is reset to zero. RAM clear logic is intended to significantly reduce inaccurate accounting data and reporting during the invoice process.

7) The Central System shall be able to to produce invoices for all of the Facilities, or to produce invoices for some Facilities while postponing the invoicing of one or more.

8) The system shall be able to account for a loss carryforward. Currently, loss carryforwards are limited to 7 calendar days for any loss occurrence. The application of the loss carryforward should be reflected in both the GTR and the daily invoices. On the day that the loss occurs, the invoice should be produced with a zero balance, the daily GTR should be the amount of the loss ( a negative value) and the cumulative YTD GTR should be the total net year to date including any losses). On the days subsequent to the loss, the invoice should be the total of the daily GTR less any remaining loss balance, the daily GTR should remain the same, and the cumulative YTD GTR should be the net amount year to date. The system shall also be able to account for include additional losses occurring before an initial loss is settled.

9) The Central System shall be configured to properly account for and report on early and late VLT meters as per MLGCA requirements.

10) The Central System’s accounting day must be configurable to meet the MLGCA’s desired timeframe.

11) The Central Systems’ accounting day and reporting day may be based on different timeframes.

11) The table below reflects the tax rates for each Facility in effect as of 7/1/202019. The Contractor shall be required to account for these tax categories and rates and to quickly adjust these rates if they are modified during the term of the Contract.

Facility Tax Rates and Revenue Splits

Effective 7/1/2020

VLT Proceeds Distribution

Table Game Proceeds Distribution

I. Local and Wide Area Progressive VLTs

1) The Central System shall be able to report progressive jackpot games, including linked games at a single, multiple, or multi-state licensed Facility. The Central System Contractor is responsible only for the financial reporting of progressives for data relative to the State of Maryland.

2) The Central System shall produce documentation of credits contributed from the beginning of the polling cycle (including those from the time period immediately following the previous jackpot) and all credits contributed up to and including the polling cycle…