(1) The director may issue an on-line endorsement to a licensed retailer taking into consideration factors including, but not limited to:

(a) history of scratch ticket sales;

(b) customer count;

(c) days and hours of operation;

(d) location relative to other terminal issue retailers.

(2) In order to receive an on-line endorsement a licensed retailer must enter into a formal agreement with the Montana lottery outlining the conditions associated with the installation and operation of an on-line lottery terminal.