# Business Regulation (GBR)

## Title 11. Horse Racing

### Subtitle 6. Harness Racing

#### Section 11-601

In this subtitle, "average handle" means the daily average amount bet in a year.

#### Section 11-602

This subtitle applies only to harness racing licenses and to licensees who have been awarded racing days to hold harness racing.

#### Section 11-603

A licensee may hold harness racing only with standardbred horses.

#### Section 11-604

Three harness judges shall officiate at each race that a licensee holds.

#### Section 11-605

If the Commission approves, harness racing may be held on a Sunday.

#### Section 11-606

A licensee may not hold live harness racing after 2 a.m. unless circumstances beyond the control of the licensee cause a delay.

#### Section 11-608

(a) Subject to Sec. 11-610 of this subtitle, if an applicant qualifies for a license under this title, the Commission shall send the applicant a notice stating:

  (1) the fact that the applicant has qualified for a license;

  (2) the dates of the race meeting awarded;

  (3) the total number of racing days awarded; and

  (4) the kind of racing to be held.

(b) Before the Commission may issue a license to a person, the person shall pay to the Commission a license fee of $25 for each racing day of the race meeting.

#### Section 11-609

The Commission may not issue:

(1) licenses to more than 3 racing associations;

(2) a license for use in Carroll, Dorchester, Frederick, Montgomery, or Wicomico County; or

(3) more than 1 license for use in any 1 county.

#### Section 11-610

(a) The Commission may award for any calendar year up to the number of racing days requested by an applicant.

(b) The decision of the Commission on the award of a racing day is final.

#### Section 11-611

Subject to the hearing provisions of Sec. 11-612 of this part, the Commission may authorize a licensee to transfer a race meeting from the licensee's own track to another track:

(1) on receipt of the appropriate license fees; and

(2) with the express consent of the owner or lessee of the track to which the transfer is made.

#### Section 11-612

(a) Except as otherwise provided in this section, the Commission shall hold a public hearing before the Commission awards, for racing at a particular track, racing days that:

  (1) total at least 3 more than those awarded for racing at that track in the previous calendar year; or

  (2) result from the transfer of racing days to that track from another track in the same year.

(b) The Commission shall:

  (1) hold the hearing not more than 10 miles from the track where the racing is to be held; and

  (2) allow any person to testify.

(c) The Commission:

  (1) at least 15 days before the hearing, shall have notice of the hearing published in at least 1 newspaper with a substantial circulation in the county where the track is located; and

  (2) shall try to give notice of the hearing to any public unit or private organization that has made a written request for notice.

(d)

  (1) If the transfer of racing days from one track to another becomes necessary due to fire, flood, mechanical failure, or any other similar circumstance deemed by the Commission to constitute an emergency:

    (i) the racing days may be transferred immediately; and

    (ii) as soon as practicable, the Commission shall provide notice of a hearing and conduct a hearing pursuant to subsection (c) of this section.

  (2) As soon as the track and the facilities of the licensee from which race days were transferred under paragraph (1) of this subsection are in a condition to continue racing and pari-mutuel betting, any remaining days of the meet that was being conducted when the days were transferred shall be held at the track from which the days were transferred.

#### Section 11-613

(a)

  (1) A licensee whose average handle is $150,000 or less shall keep the breakage.

  (2) A licensee whose average handle is over $150,000 shall:

    (i) allocate 50% of the breakage to the Sires Stakes Program; and

    (ii) keep 50% of the breakage to pay for personnel-related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction.

(b) If an average handle is over $600,000, the takeout shall be:

  (1) 17% from each regular mutuel pool;

  (2) 19% from each multiple mutuel pool for 2 horses; and

  (3) 25% from each multiple mutuel pool on 3 or more horses.

(c) If the average handle is $600,000 or less, the takeout shall be:

  (1) not more than 18.75% from each regular mutuel pool;

  (2) not more than 20.75% from each multiple mutuel pool on 2 horses; and

  (3) not more than 26.75% from each multiple mutuel pool on 3 or more horses.

(d) Money that remains after deductions are made under this section shall be returned as winnings to successful bettors.

#### Section 11-614

A licensee whose average handle is over $600,000 shall:

(1) allocate 0.50% of each mutuel pool to the Commission as State tax;

(2) allocate 0.25% of each mutuel pool to the Maryland Harness Track Employees Pension Fund;

(3) keep 16.25% of each regular mutuel pool;

(4) keep 18.25% of each multiple mutuel pool on 2 horses; and

(5) keep 24.25% of each multiple mutuel pool on 3 or more horses.

#### Section 11-615

(a) From a licensee's share of the takeout on each mutuel pool, the licensee whose average handle is over $600,000 shall allocate equally to the Sires Stakes Program and the Foaled Stakes Program of the Maryland Standardbred Race Fund the following amounts:

  (1) on the first $125,000 of the average handle:

    (i)

      (0) 50% of each regular mutuel pool;

    (ii)

      (0) 50% of each multiple mutuel pool on 2 horses; and

    (iii) 1% of each multiple mutuel pool on 3 or more horses.

  (2) on the rest of the average handle:

    (i) 1% of each regular mutuel pool;

    (ii) 1% of each multiple mutuel pool on 2 horses; and

    (iii)

      (1) 5% of each multiple mutuel pool on 3 or more horses.

(b) From the licensee's share of the takeout, the licensee shall allocate 0.50% on the part of an average handle over $150,000 to pay for:

  (1) purses;

  (2) personnel-related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction; and

  (3) maintenance of proper living conditions in the backstretch.

(c)

  (1) From the licensee's share of the takeout, the licensee shall allocate 0.25% of each mutuel pool to improve the facilities and services of the track and to increase marketing activity, so as to promote:

    (i) increased attendance and pari-mutuel betting; and

    (ii) enhanced well-being of the standardbred racing industry.

  (2) The General Assembly, by statute, may direct that the Commission not award in the following calendar year part or all of the racing days authorized under Sec. 11-610 of this part to the licensee if the General Assembly finds that:

    (i) the proposed use of the allocation under this subsection is inconsistent with the purposes specified in this section; or

    (ii) the licensee has not spent the allocation in a way that is consistent with the proposal.

(d) From the licensee's share of the takeout on each multiple mutuel pool on 2 horses, the licensee shall allocate at least 1% of the mutuel pool as follows:

  (1) one-half to purses; and

  (2) one-half to personnel-related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction.

(e) From the licensee's share of the takeout on each multiple mutuel pool on 3 or more horses, a licensee shall allocate at least 6.5% of each mutuel pool as follows:

  (1) one-half to purses; and

  (2) one-half to personnel-related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction.

#### Section 11-616

A licensee whose average handle is $600,000 or less shall:

(1) allocate 0.32% of each mutuel pool to the Commission as State tax;

(2) subject to Sec. 11-618 of this part, allocate 0.25% of each mutuel pool to the Maryland Harness Track Employees Pension Fund;

(3) allocate for purses 0.18% of each mutuel pool, or an amount that is otherwise agreed to by the licensee and the organization representing a majority of the harness owners and trainers in the State, which shall provide revenue in addition to any other funds set aside for purses by private parties;

(4) keep 18.00% of each regular mutuel pool;

(5) keep 20.00% of each multiple mutuel pool on 2 horses; and

(6) keep 26.00% of each multiple mutuel pool on 3 or more horses.

#### Section 11-617

(a) From a licensee's share of the takeout on each mutuel pool, the licensee whose average handle is $600,000 or less shall allocate 1.75% to increased purses.

(b) From the licensee's share of the takeout on each mutuel pool, a licensee whose average handle is over $150,000 shall allocate equally to the Sires Stakes Program and the Foaled Stakes Program of the Maryland Standardbred Race Fund the following amounts:

  (1) on the first $125,000 of the average handle:

    (i)

      (0) 50% of each regular mutuel pool;

    (ii)

      (0) 50% of each multiple mutuel pool on 2 horses; and

    (iii) 1% of each multiple mutuel pool on 3 or more horses.

  (2) on the rest of the average handle:

    (i) 1% of each regular mutuel pool;

    (ii) 1% of each multiple mutuel pool on 2 horses; and

    (iii)

      (1) 5% of each multiple mutuel pool on 3 or more horses.

(c) A licensee whose average handle is $150,000 or less shall allocate equally to the Sires Stakes Program and the Foaled Stakes Program of the Maryland Standardbred Race Fund:

  (1)

    (0) 50% of each regular mutuel pool;

  (2)

    (0) 50% of each multiple mutuel pool for 2 horses; and

  (3) 1% of each multiple mutuel pool for 3 or more horses.

(d) From the licensee's share of the takeout, the licensee shall allocate 0.50% on the part of an average handle over $150,000 to pay for:

  (1) purses;

  (2) personnel-related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction; and

  (3) maintenance of proper living conditions in the backstretch.

(e)

  (1) From the licensee's share of the takeout, the licensee shall allocate 0.25% of each mutuel pool to improve the facilities and services of the track and to increase marketing activity, so as to promote:

    (i) increased attendance and pari-mutuel betting; and

    (ii) enhanced well-being of the standardbred racing industry.

  (2) The General Assembly, by statute, may direct that the Commission not award in the following calendar year part or all of the racing days authorized under Sec. 11-610 of this part to the licensee if the General Assembly finds that:

    (i) the proposed use of the allocation under this subsection is inconsistent with the purposes specified in this section; or

    (ii) the licensee has not spent the allocation in a way that is consistent with the proposal.

(f) From the licensee's share of the takeout on each multiple mutuel pool on 2 horses, the licensee shall allocate at least 1% of the mutuel pool as follows:

  (1) one-half to purses; and

  (2) one-half to personnel-related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction.

(g) From the licensee's share of the takeout on each multiple mutuel pool on 3 or more horses, a licensee shall allocate at least 6.5% of each mutuel pool as follows:

  (1) one-half to purses; and

  (2) one-half to personnel-related expenses, physical improvements, track maintenance, and indebtedness related to the track, including indebtedness for clubhouse and grandstand construction.

#### Section 11-618

A licensee whose average handle is $125,000 or less is exempt from paying 0.25% of each mutuel pool to the Maryland Harness Track Employees Pension Fund.

#### Section 11-619

A licensee shall:

(1) deduct the fee for a driver from the purse of an owner; and

(2) pay the fee to the driver not later than 7 work days after the last day of the month in which the driver earns the fee.

#### Section 11-620

(a)

  (1) A licensee shall:

    (i) estimate daily the State tax on money bet; and

    (ii) pay to the Commission the estimated tax, to be credited against the total tax due at the close of the race meeting.

  (2) The first payment of estimated tax is due 33 days after the start of the race meeting and covers the estimated tax for the first 30 days of the race meeting.

  (3) The estimated daily tax for each later day of the race meeting shall be paid to the Commission not later than 72 hours after the close of racing for that day.

  (4) The total tax due for the race meeting shall be paid within 5 days after the close of the race meeting.

(b) If the estimated tax paid by a licensee is less than 75% of the total tax due at the end of a race meeting, the Comptroller may assess a penalty of 25% of any additional tax due at the end of the race meeting.

(c) The Commission promptly shall send to the Comptroller all taxes and estimated taxes it collects.

#### Section 11-623

(a) In this part the following words have the meanings indicated.

(b) "Advisory Committee" means the Maryland Standardbred Race Fund Advisory Committee.

(c) "Fund" means the Maryland Standardbred Race Fund.

(d) "Fund Race" means a race funded by the Maryland Standardbred Fund.

#### Section 11-624

There is a Maryland Standardbred Race Fund consisting of the Foaled Stakes Program and the Sires Stakes Program.

#### Section 11-625

There is a Maryland Standardbred Race Fund Advisory Committee, under the jurisdiction of the Commission, in the Department.

#### Section 11-626

(a)

  (1) The Advisory Committee consists of members appointed by the Commission with the approval of the Secretary.

  (2) Of the members of the Advisory Committee:

    (i) 1 shall be nominated by the chairman of the Commission and be another member of the Commission;

    (ii) 1 shall be nominated by the chairman of the Commission to represent each harness racing licensee;

    (iii) 2 shall be nominated by a majority vote of the organization that represents a majority of Standardbred Breeders in the State, and 1 of those recommended shall be a commercial breeder as defined by the Commission; and

    (iv) 1 shall be nominated by a majority vote of the Cloverleaf Standardbred Owners Association, Inc.

(b) A member of the Advisory Committee shall be a resident of the State.

(c)

  (1) This subsection does not apply to the chairman of the Advisory Committee.

  (2) The term of a member of the Advisory Committee is 4 years and begins on June 1.

  (3) A member of the Advisory Committee may serve multiple but not consecutive complete terms.

  (4) The terms of members are staggered as required by the terms in effect for members of the Advisory Committee on October 1, 1992.

  (5) If a member other than the 2 members nominated by the chairman of the Commission has not been nominated by June 1, the Commission, with the approval of the Secretary, shall nominate the member.

  (6) At the end of a term, a member continues to serve until a successor is appointed.

  (7) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed.

(d) The Governor may remove a member of the Advisory Committee for incompetence or misconduct.

#### Section 11-627

(a) The member of the Commission who is on the Advisory Committee is the chairman of the Advisory Committee.

(b)

  (1) The term of the chairman of the Advisory Committee is 1 year.

  (2) At the end of a term, the chairman continues to serve until a successor is appointed.

  (3) A chairman who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed.

  (4) An individual stops serving as chairman when the individual leaves the Advisory Committee.

#### Section 11-628

(a) The Advisory Committee shall set the times and places of its meetings.

(b) A member of the Advisory Committee:

  (1) may not receive compensation; but

  (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

#### Section 11-629

(a) The Commission shall:

  (1) administer the Fund with the help and advice of the Advisory Committee; and

  (2) order each payment that is to be made from the Fund.

(b) The Commission shall:

  (1) deposit the money allocated by each licensee to the Fund into a bank or trust company in the State; and

  (2) require the bank or trust company to secure the Fund by collateral.

(c) Within 5 days after a race meeting, the licensee shall pay to the Commission to be held in the Fund all money that is allocated to the Fund under this title but was not disbursed during the race meeting.

(d) If the Commission uses ordinary care to choose the depository bank or trust company, members are not personally liable for loss to the Fund because of failure, insolvency, or other fault of the depository.

#### Section 11-631

Each licensee shall provide for the running of Fund Races.

#### Section 11-632

(a) A horse shall be registered with the Advisory Committee before the horse may start in a race of the Foaled Stakes Program.

(b) A horse may be registered with the Advisory Committee only if the horse was foaled in Maryland as shown by a foal certificate from the United States Trotting Association and:

  (1) the breeder of the horse has maintained a place of abode in Maryland for more than 9 months immediately before registration;

  (2) the breeder of the horse keeps breeding stock continually in Maryland;

  (3) the horse was conceived during the previous season by the horse's dam being covered by a Maryland stallion registered with the Advisory Committee; or

  (4) the horse's dam was sent to Maryland to foal and after foaling was covered by a Maryland stallion during the season of the horse's birth.

#### Section 11-633

The offspring of a standardbred sire is eligible for the Sires Stakes Program if:

(1) the sire is registered with the United States Trotting Association and with the Advisory Committee;

(2) the sire was at stud in the State for a full breeding season; and

(3) the offspring was conceived during that breeding season.

#### Section 11-634

(a) A Fund Race shall be held in accordance with regulations that the Commission adopts on the recommendation of the Advisory Committee.

(b) On recommendation of the Advisory Committee, the Commission shall set:

  (1) the number of Fund Races;

  (2) the amount of each purse and bonus;

  (3) the date of each Fund Race;

  (4) the distance of each Fund Race;

  (5) each breeder's award;

  (6) nomination and registration procedures; and

  (7) any other condition needed to carry out the purpose of a Fund Race.

(c) The Commission shall set the amount of each purse and the conditions for each Fund Race in time to allow a licensee to include the purse and conditions in the stake book and condition book of the licensee.

#### Section 11-635

(a) A licensee may add to any purse in a Fund Race.

(b) A purse, authorized under this part and paid in a Fund Race, is specifically excluded from breeders' bonuses, purses, or stakes that are paid or offered by licensees in races other than Fund Races, as determined by agreement or formula between a licensee and an organization that represents a majority of the owners and trainers.

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Md. Code Ann., Bus. Reg. (as displayed at mgaleg.maryland.gov, October 16, 2026)