In this subtitle the following words have the meanings indicated. “Commission” has the meaning stated in § 9–1A–01 of this title. “Entry fee” means cash or cash equivalents that a fantasy competition player is required to pay to a fantasy competition operator in order to participate in a fantasy competition. “Fantasy competition” includes any online fantasy or simulated game or contest such as fantasy sports, in which: participants own, manage, or coach imaginary teams; all prizes and awards offered to winning participants are established and made known to participants in advance of the game or contest; the winning outcome of the game or contest reflects the relative skill of the participants and is determined by statistics generated by actual individuals (players or teams in the case of a professional sport); and no winning outcome is based: solely on the performance of an individual athlete; or on the score, point spread, or any performances of any single real–world team or any combination of real–world teams. “Fantasy competition operator” means any person that offers services in connection with fantasy competitions to individuals by means of: the Internet; a smart phone application; or any other electronics, digital media, communication technology, or device. “Fantasy competition operator” includes, for purposes of the federal Bank Secrecy Act of 1970 and its related regulations, a gaming establishment having at least $1,000,000 in annual gross revenue. “Fantasy competition operator” does not include an individual who: organizes a fantasy competition in which the individual also participates; and receives no compensation for organizing the fantasy competition. “Fantasy competition player” means an individual who participates in a fantasy competition offered by a fantasy competition operator. “Location percentage” means, for a fantasy competition, the percentage, rounded to the nearest one–tenth of a percent, of the total entry fees collected by a fantasy competition operator from fantasy competition players in the State divided by the total entry fees collected from all fantasy competition players, regardless of the players’ locations, of the fantasy contests. “Proceeds” means, for a fantasy competition, the amount of entry fees collected by a fantasy competition operator from all fantasy competition players entering the fantasy competition, less winnings paid to fantasy competition players, multiplied by the location percentage.

Notwithstanding the provisions of Title 12 of the Criminal Law Article or any other title, and except as provided under subsection (b) of this section, the prohibitions against betting, wagering, and gambling do not apply to participation in a fantasy competition. A person may not operate a kiosk or machine that offers fantasy competition to the public in a place of business physically located in the State.

A fantasy competition operator shall register with the Commission before the fantasy competition operator may offer a fantasy competition or services in connection with a fantasy competition in the State. Unless a registration is renewed for a 1–year term, the registration expires 1 year from the initial date of registration. The Commission may impose a fee for the registration of a fantasy competition operator in accordance with this section.

A fantasy competition operator shall retain 85% of the proceeds and pay the remainder to the Commission. The Commission shall distribute the proceeds paid under subsection (a) of this section to the Blueprint for Maryland’s Future Fund established under § 5–206 of the Education Article.

The Commission shall adopt regulations to carry out the provisions of this subtitle. The regulations adopted under this section may include requirements for the establishment of a voluntary exclusion list.