In this subtitle: “slot machine” means a machine, apparatus, or device that: operates or can be made to operate by inserting, depositing, or placing with another person money, a token, or another object; and through the element of chance, the reading of a game of chance, the delivery of a game of chance, or any other outcome unpredictable by the user, awards the user: money, a token, or other object that represents or that can be converted into money; or the right to receive money, a token, or another object that represents and can be converted into money; “slot machine” includes: a machine, apparatus, or device described in item (1) of this section that also sells, delivers, or awards merchandise, money, or some other tangible thing of value; a pinball machine or console machine that pays off in merchandise; and a machine, apparatus, or device described in item (1) of this section, regardless of whether the machine, apparatus, or device delivers a game through the Internet or offers Internet or other services; and “slot machine” does not include a machine, apparatus, or device that: awards the user only free additional games or plays; awards the user only noncash merchandise or noncash prizes of minimal value; dispenses paper pull tab tip jar tickets or paper pull tab instant bingo tickets that must be opened manually by the user provided that the machine, apparatus, or device does not: read the tickets electronically; alert the user to a winning or losing ticket; or tabulate a player’s winnings and losses; is a handheld device that displays only facsimiles of bingo cards that an individual uses to mark and monitor contemporaneously to a live call of bingo numbers called on the premises by an individual where the user is operating the machine; does not permit a user to play more than 100 bingo cards at the same time; does not randomly generate any numbers; and is not part of an integrated system; is used by the State Lottery and Gaming Control Commission under Title 9 of the State Government Article; if legislation takes effect authorizing the operation of video lottery terminals, is a video lottery terminal as defined in and licensed under that legislation; is a skills–based amusement device that awards prizes, merchandise, tickets, tokens, or other objects that: per play, do not exceed minimal value approved by the State Lottery and Gaming Control Commission through regulation; and may be accumulated and exchanged for noncash merchandise or prizes of value that: is similar to the cumulated value of the objects exchanged; and does not exceed a minimal wholesale value of $599; or is a skills–based device that awards noncash merchandise and is located at a family entertainment center in Worcester County licensed under § 9–1B–02 of the State Government Article.

In this subtitle, “Commission” means the State Lottery and Gaming Control Commission. Except as provided in paragraphs (2) and (3) of this subsection and consistent with the provisions of this title and Title 13 of this article, the Commission shall certify and regulate the operation, ownership, and manufacture of an electronic gaming device authorized under this title. This section does not apply to: the ownership or operation of slot machines that are subject to regulation by the Comptroller under § 12–304 of this subtitle; and paper tip jar gaming where authorized. This paragraph applies only in Baltimore City and Baltimore County. If a local law enforcement agency refuses to enforce a provision regarding the legal operation of amusement games, the Commission shall refer the matter to the appropriate office of the State’s Attorney. The Commission shall adopt regulations that: define lawful and unlawful electronic and mechanical equipment used in connection with gaming devices that are consistent with this title; approve and license electronic gaming devices authorized under State law; approve and license owners, operators, and manufacturers of electronic gaming devices authorized under State law; establish procedures for the license application and renewal processes required under this section; and establish license fees, effective on July 1, 2016, that are sufficient to cover the direct and indirect costs of licensure required under this section. The Commission may determine: that a county’s licensing and regulatory process for electronic gaming devices is equivalent to the State licensing and regulatory process required under this section; and that a county license for owning, operating, or manufacturing an electronic gaming device in that county is equivalent to a State license. If the Commission does not make a determination under paragraph (1) of this subsection, the regulations and licensing requirements of the Commission shall supersede: the application of any county fees or regulations and licensing requirements for electronic gaming devices under this subsection; or a requirement for a county license for owning, operating, or manufacturing an electronic gaming device under this subsection. This subsection does not apply to an electronic instant bingo machine authorized under § 12–308 of this subtitle. An electronic gaming device that is not licensed or otherwise operated in compliance with the provisions of this section as of January 1, 2013, is an illegal gaming device that may not legally operate in the State. There is a Maryland Amusement Game Advisory Committee. The Advisory Committee shall advise the Commission on the conduct and technical aspects of the amusement game industry, including recommendations for the legality of skills–based amusement games. The Advisory Committee consists of: the following members appointed by the Governor: two members selected from a list of five names submitted by the Maryland Amusement and Music Operators Association; one member who is a local government official selected from a list of names submitted by the Maryland Association of Counties and the Maryland Municipal League; one member who is a local law enforcement officer; and one citizen representative; and the Director of the Commission, or the Director’s designee, who shall serve as a nonvoting member of the Advisory Committee. The Governor shall designate the chair of the Advisory Committee. The Commission shall provide staff for the Advisory Committee. A member of the Advisory Committee: may not receive compensation as a member of the Advisory Committee; but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

Except as allowed under §§ 12-304 through 12-306 of this subtitle, a person may not locate, possess, keep, or operate a slot machine in the State as an owner, lessor, lessee, licensor, licensee, or in any other capacity. A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine of $1,000 or both for each violation.

In this section, “antique slot machine” means a slot machine that was manufactured at least 25 years before the date on which the machine is seized. A person may not be convicted under § 12-302 of this subtitle if the person shows by a preponderance of the evidence that the slot machine: is an antique slot machine; and was not operated for gambling purposes while in the person’s possession. If the defense is offered that a seized slot machine is an antique slot machine, the slot machine may not be destroyed or otherwise altered until after a final judicial determination, including review on appeal, that the defense does not apply. If the defense applies, the person who seized the slot machine shall return the slot machine in accordance with applicable provisions of law for the return of property.

In this section, “eligible organization” means: a nonprofit organization that: has been located in a county listed in subsection (b) of this section for at least 5 years before the organization applies for a license under subsection (e) of this section; and is a bona fide: fraternal organization; religious organization; or war veterans’ organization; or a nonprofit organization that has been affiliated with a national fraternal organization for less than 5 years and has been located in a county listed in subsection (b) of this section for at least 50 years before the nonprofit organization applies for a license under subsection (e) of this section. This section applies in: Caroline County; Cecil County; Dorchester County; Kent County; Queen Anne’s County; Somerset County; Talbot County; Wicomico County; and Worcester County. In this subsection, a console or set of affixed slot machines is not an individual slot machine. Notwithstanding any other provision of this subtitle, an eligible organization may own and operate a slot machine if the eligible organization: obtains a license under subsection (e) of this section for each slot machine; owns each slot machine that the eligible organization operates; owns not more than five slot machines; locates and operates its slot machines at its principal meeting hall in the county in which the eligible organization is located; does not locate or operate its slot machines in a private commercial facility; uses: at least one–half of the net after payout proceeds from its slot machines for the benefit of a charity; and the remainder of the proceeds from its slot machines to further the purposes of the eligible organization; does not use any of the proceeds of the slot machine for the financial benefit of an individual; and reports annually under affidavit to the State Comptroller: the income of each slot machine; and the disposition of the income from each slot machine. An eligible organization may not use or operate a slot machine unless: the slot machine is equipped with a tamperproof meter or counter that accurately records gross receipts; and the eligible organization keeps an accurate record of the gross receipts and payoffs of the slot machine. The State Comptroller shall regulate the operation of slot machines under this section. The State Comptroller may adopt regulations to implement the requirements of this section, including requiring audits of the annual reports submitted to the State Comptroller under subsection (c)(2)(viii) of this section. Before an eligible organization may operate a slot machine under this section, the eligible organization shall obtain a license for the slot machine from the State Comptroller. The State Comptroller shall: charge an annual fee for each license for a machine; and issue a license sticker to the applicant. The applicant shall place the sticker on the slot machine. The State Comptroller shall set the amount of the annual fee so that the total proceeds of the annual fee equal an amount directly related to administrative costs of the State Comptroller to regulate the operation of slot machines under this section. In the application to the State Comptroller for a license, one of the principal officers of the eligible organization shall certify under affidavit that the organization: is an eligible organization; and will comply with this section. A principal officer of the eligible organization may not intentionally misrepresent a statement of fact on the application. A person who violates this subsection is guilty of perjury and on conviction is subject to the penalty provided under Title 9, Subtitle 1 of this article. The Comptroller may not issue a license for a slot machine to an eligible organization located in Ocean City that is located east of South and North Baltimore Avenues.

A person may take delivery of, possess, or transport a slot machine to demonstrate or sell the slot machine to a prospective customer who is allowed to purchase a slot machine if the person: operates with or under a distributorship contract with a manufacturer of slot machines; is registered with the United States Department of Justice as a distributor of slot machines; and has provided the Secretary of State Police with a copy of the person’s current federal registration. A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine of $1,000 or both for each violation.

In this section, “premises” means an improved or unimproved parcel or tract of land that is owned by: a person; or persons associated in a joint or common venture. Except as provided in paragraph (2) of this subsection, in a county or municipal corporation where, before July 1, 1963, county or municipal officials licensed slot machines for operation, a person may not, as an owner, lessor, lessee, licensor, licensee, or in any other capacity, keep or operate a slot machine for any purpose in any place of business or building or on any premises. Before disposing of a slot machine, the county commissioners or county executive of a county where a slot machine is located may require the slot machine to be: registered in a manner appropriate to the office of county executive or county commissioners; and sealed against use, stored, and kept under the supervision and control of the county commissioners or county executive.

Because of an act of God, or condemnation or abandonment of the primary business by the owner of a business operating on the premises, a person may: remove a slot machine from any premises on which a slot machine is allowed to operate under law; and transfer the slot machine to another premises within the same county. A person who transfers a slot machine from one premises to another may not increase the total number of machines allowed by law.

Notwithstanding any other provisions of this subtitle, an entity licensed to offer instant bingo under a commercial bingo license on July 1, 2007, or by a qualified organization as defined in § 13–201 of this article on the premises of the qualified organization may continue to operate a game of instant bingo in the same manner using electronic machines, provided that: the machines were in operation for a 1–year period ending December 31, 2007; or the machines were in operation under a commercial bingo license on December 31, 2007; the entity does not operate more than the number of electronic machines in operation on February 28, 2008; and the conduct of the gaming and operation of the machines are consistent with all other provisions of this article. An electronic machine allowed under subsection (a) of this section is not required to print a paper ticket for each game of instant bingo played unless the player elects to print the ticket. The State Lottery and Gaming Control Commission shall adopt regulations to implement this section.