Title 9. Miscellaneous Executive Agencies — Subtitle 1E. Sports Wagering

on a computer, a mobile device, or any other interactive device; and

that is accepted by a sports wagering licensee or an online sports wagering operator.

the amount returned to successful bettors;

the cash equivalents of any merchandise or thing of value awarded as a prize to successful bettors;

free bets and promotional credits redeemed by bettors; and

all excise taxes paid by a sports wagering licensee in accordance with federal law.

“Sporting event” means:

“Sporting event” does not include:

“Sports wagering facility licensee” means a sports wagering licensee who is authorized to conduct and operate sports wagering at the sports wagering facility owned, leased, or occupied by the sports wagering licensee.

“Sports wagering facility licensee” includes the holder of a Class A–1, A–2, B–1, or B–2 sports wagering facility license issued under § 9–1E–06 of this subtitle.

Unless the context requires otherwise, the requirements under §§ 9–1A–04, 9–1A–06, 9–1A–07, 9–1A–08, 9–1A–12, 9–1A–14, 9–1A–18, 9–1A–19, 9–1A–20, and 9–1A–25 of this title apply to the authority, duties, and responsibilities of the Commission, a sports wagering licensee, and an employee or a contractor of a sports wagering licensee under this subtitle.

The Commission shall consider the use of technology, remote surveillance, and other similar measures to carry out its duties under this subsection and § 9–1E–04 of this subtitle.

shall:

may not:

Except as provided in paragraph (2) of this subsection, a sports wagering facility is subject to local zoning laws.

The use of a facility for sports wagering is not required to be submitted to or approved by any county or municipal zoning board, authority, or unit if the facility is properly zoned and operating as of the effective date of this Act for the following activities:

subject to § 9–1E–15 of this subtitle, the form and content of an application for any license required under this subtitle;

the methods, procedures, and form for delivery of information from an applicant or a licensee concerning any person’s family, habits, character, associates, criminal record, business activities, and financial affairs;

the procedures for the fingerprinting of an applicant for any license required under this subtitle or other methods of identification that may be necessary in the judgment of the Commission to accomplish effective enforcement of the provisions of this subtitle;

the grounds and procedures for reprimands of licensees or the revocation or suspension of licenses issued under this subtitle;

the manner and method of collection of taxes, fees, and civil penalties;

standards, procedures, and rules that govern the conduct of sports wagering, including:

any other regulation necessary to carry out the provisions of this subtitle.

accept satellite simulcast bets on horse racing; and

operate kiosks capable of accepting both sports wagers and satellite simulcast bets.

a person that operates sports wagering;

a person that operates sports wagering on behalf of a sports wagering licensee, including an online sports wagering operator;

a person not licensed under item (1) or (2) of this subsection that manages, operates, supplies, provides security for, or provides service, maintenance, or repairs for sports wagering equipment and devices; and

an individual directly employed in the operation of sports wagering by a sports wagering licensee if the individual does not otherwise hold a valid license under Subtitle 1A of this title.

For all licenses required under this subtitle, if an applicant holds a valid license in this State or another state and the Commission determines that the licensing standards of the issuing agency are comprehensive and thorough and provide similar and adequate safeguards to those provided in this subtitle, the Commission may:

Except as provided under this subtitle or in regulation, the Commission may not waive a requirement under paragraph (1) of this subsection that relates to:

Except as provided in paragraph (3) of this subsection, on the request of an applicant, the Commission may grant an exemption or a waiver of a licensing requirement or grounds for denial of a license if the Commission determines that the requirement or grounds for denial of a license as applied to the applicant are not necessary to protect the public interest or accomplish the policies established by this subtitle.

On granting to an applicant an exemption or a waiver under this subsection, or at any time after an exemption or a waiver has been granted, the Commission may:

Except as provided under this subtitle or in regulation, the Commission may not grant an exemption or a waiver of a licensing requirement adopted by the Sports Wagering Application Review Commission in accordance with § 9–1E–15(h)(2) of this subtitle to implement remedial measures based on the findings of a study of the sports wagering industry and market.

On an award of a license by the Sports Wagering Application Review Commission established under § 9–1E–15 of this subtitle, the Commission shall:

A for–profit entity, nonprofit organization, or public–private partnership operating at the racing location described under Title 11, Subtitle 7 of the Business Regulation Article located on lands owned by the Department of Natural Resources may apply for a Class B–1 or B–2 sports wagering facility license.

If an applicant designates an entity to hold the license under paragraph (1)(i)2 of this subsection, the designee shall be considered the applicant and subject to the requirements of the application process.

In addition to any other person, an applicant for or holder of a Class A–1, A–2, B–1, or B–2 sports wagering facility license may apply for a mobile sports wagering license under this subsection.

Except as provided in paragraph (2) of this subsection, an applicant for a sports wagering license shall pay to the Commission an application fee of:

The requirement to pay an application fee to the Commission under paragraph (1) of this subsection does not apply to an applicant for a Class A–2 sports wagering facility license that is a horse racing licensee described under § 11–510(b)(3) of the Business Regulation Article.

The term of a sports wagering license under this section is 5 years.

On application by the sports wagering licensee and payment of the license renewal fee under paragraph (3) of this subsection, the Commission shall renew for 5 years a sports wagering license if the licensee complies with all statutory and regulatory requirements.

The license renewal fee is equal to 1% of the average annual amount the licensee retained under § 9–1E–12(b)(1)(ii), (iii), or (iv) of this subtitle for the preceding 3–year period.

A sports wagering licensee may not begin accepting wagers on sporting events until the application fee under subsection (b)(1) of this section is paid in full and the applicant reimburses the Commission for expenses related to performing background investigations.

The application fee under subsection (b)(1) of this section is nonrefundable.

an application in the form that the Commission requires; and

if the applicant is applying for a sports wagering license, an affidavit attesting to:

The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article are incorporated in this subsection.

To the extent practicable and authorized by the United States Constitution, a sports wagering licensee shall comply with the State’s Minority Business Enterprise Program.

On or after July 1, 2031, the provisions of this subsection and any regulations adopted under this subsection shall be of no effect and may not be enforced.

This subsection does not apply to the application or license renewal fees for a sports wagering license required under § 9–1E–06 of this subtitle.

An applicant shall submit the application fee with the application.

The term of the license is 5 years.

an amount to the State Lottery and Gaming Control Agency necessary to reimburse the Agency for expenses related to the issuance and renewal of sports wagering licenses;

5% of the fees collected for each Class A–1 and A–2 sports wagering facility license to the Small, Minority–Owned, and Women–Owned Business Sports Wagering Assistance Fund established under § 9–1E–16 of this subtitle; and

the remainder to the Blueprint for Maryland’s Future Fund established under § 5–206 of the Education Article.

Applicants and licensees shall have the affirmative responsibility to establish by clear and convincing evidence the applicant’s or licensee’s qualifications.

Applicants and licensees shall provide information required by this subtitle and satisfy requests for information relating to qualifications in the form specified by the Commission, if applicable.

Applicants and licensees shall produce information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence:

On the filing of an application for any license required under this subtitle and any supplemental information required by the Commission, the Commission shall conduct a background investigation on the qualifications of the applicant and any person who is required to be qualified under this subtitle as a condition of a license.

The Commission may refer an application for a license to an approved vendor under § 9–1A–20 of this title to conduct the background investigation for the Commission.

After receiving the results of the background investigation, the Commission may either grant a license to an applicant whom the Commission determines to be qualified or deny the license to an applicant whom the Commission determines to be not qualified or disqualified.

If an application for a license is denied, the Commission shall prepare and file an order denying the license with a statement of the reasons for the denial, including the specific findings of fact.

An individual may not knowingly give false information or make a material misstatement in an application required for any license under this subtitle or in any supplemental information required by the Commission.

An individual who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $5,000 or both.

The holder of a Class B–1 or B–2 sports wagering facility license or a mobile sports wagering license may only sell or transfer ownership of the license if the licensee was actively engaged in operating sports wagering in the State for at least 3 years immediately preceding the sale or transfer of the ownership of the license.

Nothing in paragraph (1) of this subsection may be construed to limit the ability of the Commission to enforce this subtitle.

A sports wagering facility licensee issued a license under § 9–1E–06(a)(2)(ii) of this subtitle may submit a written request to the Commission to relocate a Class B sports wagering facility.

The Commission may grant a request submitted under paragraph (1) of this subsection only if:

this subtitle;

a regulation adopted under this subtitle; or

a condition that the Commission sets.

the seriousness of the violation;

the harm caused by the violation; and

the good faith or lack of good faith of the person who committed the violation.

by an individual physically present:

on a self–service kiosk, device, or machine, approved by the Commission, located in a facility or at a location identified under item (1) of this subsection.

in person at a facility or location identified under subsection (a)(1) of this section; or

online using a website or mobile application approved by the Commission.

If a sports wagering licensee authorized to accept wagers at a stadium under subsection (a)(1)(iii) of this section contracts with a video lottery operator, or an affiliate or a subsidiary of that video lottery operator, to provide sports wagering services at the stadium, the licensee may contract only with a video lottery operator, or an affiliate or a subsidiary of that video lottery operator, that operates a video lottery facility located in the same county as the stadium.

A mobile sports wagering licensee:

A person other than the mobile sports wagering licensee may not conduct online sports wagering, except for testing purposes, until the person receives from the Commission an online sports wagering license.

The duties and responsibilities of an online sports wagering operator may not be assigned, delegated, subcontracted, or transferred to a third party without the prior approval of the Commission.

A third party must be licensed as an online sports wagering operator before offering online sports wagering.

is under the age of 21 years;

is not physically present in the State;

is an athlete, a coach, a referee, or a director or an employee of a sports governing entity or any of its member teams;

is the direct or indirect legal or beneficial owner of 10% or more of a sports governing entity or any of its member teams if any member team of that sports governing entity participates in the sporting event;

has access to certain types of exclusive information on any sporting event overseen by that individual’s sports governing entity;

holds a position of authority or influence sufficient to exert influence over the participants in a sporting event, including coaches, managers, handlers, or athletic trainers;

is identified on a mandatory or voluntary sports wagering exclusion list maintained by the Commission;

is the operator, director, officer, owner, or employee of the sports wagering licensee or online sports wagering operator or any relative of the licensee or operator living in the same household as the licensee or operator;

has access to nonpublic confidential information held by the sports wagering licensee or online sports wagering operator; or

is a category of individuals prohibited by the Commission under subsection (e) of this section from wagering on a sporting event.

have in place technical and operational measures to prevent access by individuals who are underage or physically located outside the State, including:

include on its online sports wagering website a description of the possible repercussions for an underage or out–of–state bettor, which may include immediate stoppage of play, account closure, and forfeiture and confiscation of winnings; and

establish procedures to prevent prohibited individuals from wagering on sporting events.

promptly report to the Commission:

maintain records of sports wagering operations in accordance with regulations adopted by the Commission.

In this subsection, “interested party” means:

If an interested party believes that a type or form of wagering or a category of individuals wagering on sporting events is contrary to public policy, is unfair to consumers, or affects the integrity of a particular sport or the sports wagering industry, the interested party may submit to the Commission, in writing, a request to prohibit the type or form of sports wagering or the category of individuals from wagering on sporting events.

After conducting a public hearing on a request submitted under paragraph (2) of this subsection, the Commission may grant the request on a showing of good cause by the interested party.

The Commission shall respond to a request under this subsection concerning a particular sporting event before the start of the sporting event to the greatest extent feasible, or as soon as practicable.

The Commission shall account to the Comptroller for all of the revenue under this subtitle.

The proceeds from sports wagering, less the amount retained by the licensee under subsection (b)(1) of this section, shall be under the control of the Comptroller and distributed as provided under subsection (b) of this section.

become the property of the State; and

be distributed to the Problem Gambling Fund established under § 9–1A–33 of this title.

the number of minority and women owners of the licensee;

the ownership interest of any minority and women owners of the licensee;

the number of minority and women employees of the licensee;

the number of current contracts the licensee has with minority– and women–owned subcontractors; and

any other information considered necessary by the Commission.

the operation of sports wagering in the State; and

sports wagering revenues from the immediately preceding fiscal year, including the handle, hold, hold percentage, and proceeds, broken down by categories defined by the Commission.

Subject to paragraph (2) of this subsection, on or before December 1, 2025, the Commission shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the racial, ethnic, gender, and geographic diversity of holders of Class B–1 and B–2 sports wagering facility licenses and mobile sports wagering licenses under this subtitle, the level of market saturation of sports wagering in the State, and whether the number of Class B–1 and B–2 sports wagering facility licenses and mobile sports wagering licenses that may be issued under this subtitle should be increased in order to address the demand for sports wagering in the State.

Before the Commission submits the report described under paragraph (1) of this subsection, the Commission shall provide the Legislative Policy Committee with at least 30 days to submit comments to the Commission.

The Sports Wagering Application Review Commission consists of the following seven members:

The membership of the Sports Wagering Application Review Commission appointed under this subsection should reflect the race, gender, and geographic diversity of the population of the State.

The Governor shall designate a chair of the Sports Wagering Application Review Commission from among the members described under paragraph (1)(i) and (ii) of this subsection.

The Governor, in consultation with the President of the Senate and the Speaker of the House, may remove a member of the Sports Wagering Application Review Commission for inefficiency, misconduct in office, or neglect of duty.

shall be at least 21 years old;

shall be a citizen of the United States;

shall be a resident of the State;

shall be knowledgeable and experienced in fiscal matters and shall have at least 10 years of substantial experience:

may not have been convicted of or granted probation before judgment for a serious crime or a crime that involves gambling or moral turpitude;

may not have an official relationship to a person that is applying for or holds a license under this subtitle or Subtitle 1D of this title;

may not have any direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests in any gaming activities, including horse racing, video lottery terminals, fantasy competitions, or lottery;

may not receive or share in, directly or indirectly, the receipts or proceeds of any gaming activities, including horse racing or lottery;

may not have a beneficial interest in any contract for the manufacture or sale of gaming devices, the conduct of any gaming activity, or the provision of any independent consulting services in connection with any gaming establishment or gaming activity;

may not be an elected official of State or local government; and

shall file a financial disclosure statement with the State Ethics Commission in accordance with Title 15, Subtitle 6 of this article.

may not receive compensation for serving on the Sports Wagering License Review Commission; but

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

The Commission and the Department of Legislative Services shall provide staff to the Sports Wagering Application Review Commission.

The Department of Legislative Services shall contract with an independent consultant that has at least 10 years of substantial experience in consulting on matters relating to the gaming industry to assist the Sports Wagering Application Review Commission in the review and analysis of applications submitted under this section.

shall review applications for sports wagering licenses submitted in accordance with § 9–1E–06 of this subtitle;

shall award:

may not award a Class B–1 or B–2 sports wagering facility license, other than to an applicant described under § 9–1E–06(a)(2)(i) of this subtitle, or a mobile sports wagering license until after the Sports Wagering Application Review Commission adopts the regulations required under subsection (h) of this section.

This subsection applies only to Class B–1 or B–2 sports wagering facility licenses, other than licenses issued to an applicant described under § 9–1E–06(a)(2)(i) of this subtitle, and mobile sports wagering licenses.

Subject to paragraph (3) of this subsection, the Sports Wagering Application Review Commission shall adopt regulations governing the evaluation of applications for Class B–1 or B–2 sports wagering facility licenses, other than licenses issued to an applicant described under § 9–1E–06(a)(2)(i) of this subtitle, and mobile sports wagering licenses submitted in accordance with § 9–1E–06 of this subtitle.

The Sports Wagering Application Review Commission, in consultation with the certification agency as defined in § 14–301 of the State Finance and Procurement Article, the Governor’s Office of Small, Minority, and Women Business Affairs, and the Office of the Attorney General, shall:

The Sports Wagering Application Review Commission shall:

If an applicant is seeking investors in the entity applying for a sports wagering license, the applicant shall take the following steps before being awarded a license by the Sports Wagering Application Review Commission:

If an applicant is awarded a license by the Sports Wagering Application Review Commission, the applicant shall sign a memorandum of understanding with the Sports Wagering Application Review Commission that requires the awardee to again make serious, good–faith efforts to interview minority and women investors in any future attempts to raise venture capital or attract new investors to the entity awarded the license.

The Governor’s Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General, shall provide assistance to all potential applicants and potential minority and women investors to satisfy the requirements under paragraphs (1)(i) and (2) of this subsection.

The Sports Wagering Application Review Commission shall refer to the State Lottery and Gaming Control Commission the name and all relevant information concerning a person that makes an application under this section.

On receipt of the information in paragraph (1) of this subsection, the State Lottery and Gaming Control Commission shall evaluate whether an applicant is qualified to hold a sports wagering license under this subtitle.

On completion of its determination, the State Lottery and Gaming Control Commission shall notify the Sports Wagering Application Review Commission of its evaluation as to whether an applicant is qualified to hold a sports wagering license under this subtitle.

issue the sports wagering license in accordance with the provisions of this subtitle; and

be responsible for all matters relating to regulation of the licensee.

An unsuccessful applicant for a sports wagering license under this section may seek, under Title 15 of the State Finance and Procurement Article, review by the State Board of Contract Appeals of the awarding of the sports wagering license by the Sports Wagering Application Review Commission.

A proceeding under this subsection shall:

Except as provided in paragraph (2) of this subsection, the Sports Wagering Application Review Commission shall terminate on January 1, 2028.

The Governor may reconstitute the Sports Wagering Application Review Commission, which shall include the appointment of new members based on the criteria established under subsections (b) and (c) of this section:

The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.

The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

revenue distributed to the Fund under § 9–1E–07(d) of this subtitle;

money appropriated in the State budget to the Fund; and

any other money from any other source accepted for the benefit of the Fund.

sports wagering license application assistance;

assistance with sports wagering operations; or

targeted training to support participation in the sports wagering industry.

The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

Any interest earnings of the Fund shall be credited to the General Fund of the State.

In this section the following words have the meanings indicated.

“Content partner” means an individual who or a platform that creates sports wagering content for a sports wagering licensee through contracted work, affiliation, or other partnership.

“Sports wagering content” means predictions of sporting event outcomes, including moneylines, against the spread, totals, futures, parlays, and other outcomes, whether provided at no cost or through a subscription or other partnership.

“Sports wagering expert” or “sports wagering influencer” means a person who creates sports wagering content for a sports wagering licensee, a content partner, or the person’s own benefit.

The Commission shall license independent evaluators to evaluate and rate sports wagering content provided by sports wagering experts, sports wagering influencers, and content partners.

In order to be licensed under paragraph (1) of this subsection, an independent evaluator:

An employee or a principal of an independent evaluator, or the independent evaluator as an entity, may not wager on a sporting event.

The Commission may establish additional qualifications for the licensing of independent evaluators in accordance with this subsection.