In this subtitle the following words have the meanings indicated. “Commission” has the meaning stated in § 9–1A–01 of this title. “Gaming establishment” means, for purposes of the federal Bank Secrecy Act of 1970 and its related regulations, a sports wagering licensee having at least $1,000,000 in annual gross revenue. “Horse racing licensee” means the holder of a license issued by the State Racing Commission under § 11–510 of the Business Regulation Article. “Mobile sports wagering licensee” means a sports wagering licensee who is authorized to conduct and operate online sports wagering. “Online sports wagering” means sports wagering through an online gaming system: 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. “Online sports wagering operator” means an entity registered with a state to do business within a jurisdiction of the United States that holds a license issued by the Commission under this subtitle to operate online sports wagering on behalf of a sports wagering licensee. “Proceeds” means the amount of money wagered on a sporting event, less: 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: a professional sports or athletic event; a collegiate sports or athletic event; an Olympic or international sports or athletic event; an electronic sports or video game competition in which each participant is at least 18 years old; a motor race event sanctioned by a motor racing governing entity; except as otherwise prohibited under Title 11 of the Business Regulation Article or the federal Interstate Horse Racing Act, a horse race, held in or out of the State, if consented to and approved by: the horse racing licensee of the applicable breed; the organization representing the majority of the owners and trainers of the applicable breed in the State; the organization representing the majority of the applicable breeders in the State; and the State Racing Commission; any portion of a sporting event, including the individual performance statistics of athletes or competitors in a sporting event; or an award event or competition of national or international prominence if expressly authorized by the Commission. “Sporting event” does not include: a high school sports or athletic event; or a fantasy competition regulated under Subtitle 1D of this title. “Sports wagering” means the business of accepting wagers on any sporting event by any system or method of wagering, including single–game bets, teaser bets, parlays, over–under, moneyline, pools, exchange wagering, in–game wagering, in–play bets, proposition bets, and straight bets. “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. “Sports wagering license” means a license issued by the Commission under this subtitle that authorizes the holder to accept wagers on sporting events. “Sports wagering licensee” means the holder of a sports wagering license. “Video lottery facility” has the meaning stated in § 9–1A–01 of this title. “Video lottery operation license” has the meaning stated in § 9–1A–01 of this title. “Video lottery operator” has the meaning stated in § 9–1A–01 of this title.

It is the intent of the General Assembly that this subtitle is to be implemented in a manner that, to the extent permitted by State and federal law, maximizes the ability of minorities, women, and minority and women–owned businesses to participate in the sports wagering industry, including through the ownership of entities licensed to conduct sports wagering under 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. This subtitle authorizes a sports wagering licensee to conduct and operate sports wagering in the State as provided in this subtitle. A sports wagering licensee: shall: comply with all State and federal data security laws; and maintain all sports wagering data securely for at least 5 years; and may not: share any personally identifiable information with any third parties without permission, except as needed to operate sports wagering and administer the licensee’s obligations under this subtitle; target advertising to individuals who are prohibited from participating in sports wagering and other at–risk individuals; or engage in any false or deceptive advertising. 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: operation of a video lottery facility; pari–mutuel betting on horse racing; or operation of electronic bingo or electronic tip jar machines.

Except as otherwise provided in this subtitle, the Commission shall regulate sports wagering and the conduct of sports wagering to the same extent that the Commission regulates the operation of video lottery terminals and table games under Subtitle 1A of this title. In accordance with this subtitle, the Commission shall adopt regulations that establish: 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: the approval process for self–service kiosks, devices, or machines, security measures for the kiosks, devices, or machines, the amount of wagers authorized on the kiosks, devices, or machines, and any other matter relating to a self–service kiosk, device, or machine necessary to carry out the provisions of this subtitle; the types of wagers on sporting events that may be accepted by a sports wagering licensee and prohibited wagers, such as wagers on injuries, penalties, the outcome of player disciplinary rulings, replay reviews, and other types or forms of wagering that are contrary to public policy or unfair to bettors; the types and values of promotional items that may be given away to encourage sports wagering; the manner in which wagers are received and payouts are remitted; the maximum wagers that may be accepted by a sports wagering licensee from a single bettor on a single sporting event; the amount of cash reserves or other financial security to be maintained by sports wagering licensees to cover winning wagers; acceptable forms of payment and advance deposit methods by bettors; minimum uniform standards of accountancy methods, procedures, and forms as are necessary to ensure consistency, comparability, and effective disclosure of all financial information, including percentages of profit; periodic financial reports and the form of the reports, including an annual audit prepared by a certified public accountant licensed to do business in the State in accordance with the Statement on Standards for Attestation Engagements and generally accepted accounting principles; requiring licensees under this subtitle to demonstrate and maintain financial viability; ensuring that sports wagering is conducted legally; requiring licensees to prominently publish complaint procedures; and establishing a list of individuals who are to be mandatorily excluded or ejected by a sports wagering licensee from any facility or website operated by a sports wagering licensee; and any other regulation necessary to carry out the provisions of this subtitle. The Commission may adopt regulations authorizing a sports wagering licensee, if a satellite simulcast facility is located in the licensee’s sports wagering facility, to allow its employees to: accept satellite simulcast bets on horse racing; and operate kiosks capable of accepting both sports wagers and satellite simulcast bets.

Except as provided in §§ 10–14A–03 and 10–14B–03 of this article, the following persons shall be licensed under this subtitle: 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. The Commission may by regulation require a person that contracts with a licensee and the person’s employees to obtain a license under this subtitle if the Commission determines that the licensing requirements are necessary in order to protect the public interest and accomplish the policies established by this subtitle. 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: waive some or all of the requirements of this subtitle; and issue a license to that applicant. 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: minority business enterprise participation goals and procedures established under § 9–1E–07(b) of this subtitle; or a requirement of the Sports Wagering Application Review Commission under § 9–1E–15 of this subtitle. 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: limit or place restrictions on the exemption or waiver as the Commission considers necessary in the public interest; and require the person that is granted the exemption or waiver to cooperate with the Commission and to provide the Commission with any additional information required by the Commission as a condition of the waiver or exemption. 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: issue a Class A–1 sports wagering facility license to an applicant that meets the requirements for licensure under this subtitle who is: a video lottery operator with more than 1,000 video lottery terminals; or the owner, or the designee of the owner, of a stadium in Prince George’s County that is primarily used for professional football (NFL); the owner, or the designee of the owner, of a professional football (NFL) franchise that is a lessee of a stadium in Baltimore City; the owner, or the designee of the owner, of a professional major league baseball franchise that is a lessee of a stadium in Baltimore City; the owner, or the designee of the owner, of a professional hockey league (NHL) franchise, that is a lessee of a stadium in the State; the owner, or the designee of the owner, of a professional basketball association (NBA) franchise, that is a lessee of a stadium in the State; or the owner, or the designee of the owner, of a professional soccer league (MLS) franchise, that is a lessee of a stadium in the State; issue a Class A–2 sports wagering facility license to an applicant that meets the requirements for licensure under this subtitle who is: a video lottery operator with 1,000 or fewer video lottery terminals; or a horse racing licensee; subject to paragraphs (2) and (3) of this subsection, issue a Class B–1 sports wagering facility license to any applicant who meets the requirements for licensure under this subtitle and who is not eligible for a Class B–2 sports wagering facility license; subject to paragraphs (2) and (3) of this subsection, issue a Class B–2 sports wagering facility license to any applicant who is a person with less than: 25 full–time equivalent employees; or $3,000,000 in annual gross receipts; and issue not more than 60 mobile sports wagering licenses to any applicant who meets the requirements for licensure under this subtitle. The Commission shall issue a Class B–1 or Class B–2 sports wagering facility license to an applicant that meets the requirements for licensure under this subtitle who is: the holder of a license issued by the State Racing Commission under § 11–524 of the Business Regulation Article, including a subsidiary of the license holder; a person who is the owner or lessee of a facility approved for satellite simulcast betting before January 1, 2021, unless the satellite simulcast facility is located at a video lottery facility or a racetrack; and a person who holds a commercial bingo license, if the facility at which the person operates commercial bingo was permitted to operate at least 200 electronic bingo machines or electronic tip jar machines on January 1, 2021. In addition to the Class B–1 and B–2 sports wagering facility licenses issued in accordance with subparagraph (i) of this paragraph, the Commission may issue not more than 30 Class B–1 and Class B–2 sports wagering facility licenses under paragraph (1) of this subsection. The Sports Wagering Application Review Commission established under § 9–1E–15 of this subtitle may not award a Class B–1 or B–2 sports wagering facility license to an applicant: who is eligible to apply for a Class A–1 or A–2 sports wagering facility license under paragraph (1) of this subsection; who holds a Class A–1 or A–2 sports wagering facility license; or whose sports wagering facility will be located: except as provided under subparagraph (ii) of this paragraph, within a 15–mile radius of a Class A–1 or A–2 sports wagering facility located in Allegany County, Cecil County, or Worcester County; with respect to an application for a sports wagering facility license submitted before June 1, 2025, within a 15–mile radius of a Class B–1 or B–2 sports wagering facility licensed to a person described under paragraph (2)(i) of this subsection and located in Charles County; with respect to an application for a sports wagering facility license submitted before June 1, 2025, within a 10–mile radius of a Class B–1 or B–2 sports wagering facility licensed to a person described under paragraph (2)(i) of this subsection and located in Carroll County; with respect to an application for a sports wagering facility license submitted before June 1, 2025, within a 5–mile radius of a Class B–1 or B–2 sports wagering facility licensed to a person described under paragraph (2)(i) of this subsection and located in Frederick County; or within a 1.5–mile radius of a Class A–1 or A–2 sports wagering facility located in a county not described under item A, B, C, or D of this item or any other Class B–1 or B–2 sports wagering facility. The prohibition under subparagraph (i)3A of this paragraph does not apply in Allegany County prior to the issuance of a Class A–1 or A–2 sports wagering facility license in Allegany County. A Class B–1 or B–2 sports wagering facility license issued within a 15–mile radius of a Class A–1 or A–2 sports wagering facility in Allegany County may be renewed if the license was initially issued prior to the issuance of the Class A–1 or A–2 license. 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: $2,000,000 for a Class A–1 sports wagering facility license; $1,000,000 for a Class A–2 sports wagering facility license; $250,000 for a Class B–1 sports wagering facility license; $50,000 for a Class B–2 sports wagering facility license; and $500,000 for a mobile sports wagering license. 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 applicant for a license under this subtitle shall submit to the Commission: 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 number of minority and women owners of the applicant; the ownership interest of any minority and women owners of the applicant; the number of minority and women employees of the applicant; the number of current contracts the applicant has with minority– and women–owned subcontractors; and any other information considered necessary by the Commission or the Sports Wagering Application Review Commission established under § 9–1E–15 of this subtitle. 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 before 6 months after the issuance of a sports wagering license under this subtitle, the Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General and the sports wagering licensee, shall establish a clear plan for setting reasonable and appropriate minority business enterprise participation goals and procedures for the procurement of goods and services related to sports wagering, including procurement of construction, equipment, and ongoing services. To the extent practicable, the goals and procedures specified in subparagraph (i) of this paragraph shall be based on the requirements of Title 14, Subtitle 3 of the State Finance and Procurement Article and the regulations implementing that subtitle. 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. Subject to subparagraph (ii) of this paragraph, the Commission shall adopt regulations that establish an application fee and license renewal fee for a license under this subtitle. The application fee for an online sports wagering operator license may not be less than $5,000. An applicant shall submit the application fee with the application. The term of the license is 5 years. On a properly approved transmittal prepared by the Commission, the Comptroller shall pay the following amounts from the application fees and license renewal fees collected by the Commission under this section and § 9–1E–06 of this subtitle: 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: provide assistance or information required by the Commission; and cooperate in an inquiry, an investigation, or a hearing conducted by the Commission. On issuance of a formal request to answer or produce information, evidence, or testimony, if an applicant or a licensee refuses to comply, the application or license may be denied, suspended, or revoked by the Commission. If the applicant is an individual, the applicant shall be photographed and fingerprinted for identification and investigation purposes. If the applicant is not an individual, the Commission by regulation may establish the categories of individuals who shall be photographed and fingerprinted for identification and investigation purposes. Applicants and licensees shall inform the Commission of an act or omission that the person knows or should know constitutes a violation of this subtitle or the regulations adopted under this subtitle. Applicants and licensees may not discriminate against a person who in good faith informs the Commission of an act or omission that the person believes constitutes a violation of this subtitle or the regulations adopted under this subtitle. Applicants and licensees shall produce information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence: the financial stability, integrity, and responsibility of the applicant or licensee; the integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bear a relation to the application; the applicant’s or licensee’s good character, honesty, and integrity; sufficient business ability and experience of the applicant or licensee; and that: unless the applicant or licensee already has a collective bargaining agreement, the applicant or licensee has entered into a labor peace agreement with each labor organization that is actively engaged in representing or attempting to represent sports wagering industry workers in the State; the labor peace agreement is valid and enforceable under 29 U.S.C. § 158; the labor peace agreement protects the State’s revenues by prohibiting the labor organization and its members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the operation of sports wagering within the first 5 years of the effective date of a sports wagering license; and the labor peace agreement applies to all operations conducted by the applicant or licensee at a facility or location where sports wagering is conducted. 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: the sports wagering facility licensee was originally issued a Class B sports wagering facility license on or before September 30, 2023; and the new location for the sports wagering facility: is within the same county; complies with the location requirements under § 9–1E–06 of this subtitle; and subject to § 9–1E–15(q) of this subtitle, is approved by the Sports Wagering Application Review Commission.

The Commission may deny a license to an applicant for a license under § 9–1E–05 of this subtitle, reprimand or fine a licensee, or suspend or revoke a license for a violation of: this subtitle; a regulation adopted under this subtitle; or a condition that the Commission sets. For each violation specified in subsection (a) of this section, the Commission may impose a penalty not exceeding $5,000. Each day that a person is in violation under this section shall be considered a separate violation. To determine the amount of the penalty imposed under subsection (b) of this section, the Commission shall consider: 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. Except as otherwise provided in this subtitle, nothing contained in this subtitle abrogates or limits the criminal laws of the State or limits the authority of the General Assembly to enact statutes establishing criminal offenses and penalties relating to sports wagering operations.

A sports wagering facility licensee may accept wagers on sporting events that are made: by an individual physically present: at a video lottery facility, if the sports wagering licensee is a video lottery operator; at Pimlico Race Course or a race track located at Laurel Park, if the sports wagering licensee is a horse racing licensee; subject to subsection (d) of this section, at a stadium primarily used for professional football (NFL), professional major league baseball, professional hockey (NHL), professional basketball (NBA), or professional soccer (MLS), if the sports wagering licensee is the owner or a lessee or the designee of the owner or lessee of the stadium; at the Maryland State Fairgrounds in Timonium, if the sports wagering licensee is the holder of a license issued by the State Racing Commission under § 11–524 of the Business Regulation Article, or a subsidiary of the license holder; at a satellite simulcast facility, if the sports wagering licensee is the owner or lessee of a satellite simulcast facility described under § 9–1E–06(a)(2) of this subtitle; at a commercial bingo facility with at least 200 electronic bingo machines or electronic tip jar machines, if the sports wagering licensee is a commercial bingo operator described under § 9–1E–06(a)(2) of this subtitle; or subject to subsection (e) of this section, at the facility identified in the application approved by the Sports Wagering Application Review Commission, if the sports wagering licensee is a holder of a Class B–1 or B–2 sports wagering facility license; or 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. A mobile sports wagering licensee may accept wagers on sporting events that are made through online sports wagering by an individual physically located in the State. To participate in online sports wagering under this section, an individual shall register: 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. Subject to paragraph (2) of this subsection, a sports wagering facility licensee may contract with any other sports wagering facility licensee to provide sports wagering services on behalf of the licensee at a location where the licensee is authorized to accept wagers on sporting events. A Class A sports wagering facility licensee that provides sports wagering services on behalf of a Class B sports wagering facility licensee: may utilize the Class A sports wagering facility’s branding and loyalty rewards programs at the Class B sports wagering facility on behalf of which it is providing sports wagering services; but may not allow an individual to utilize the account wallet that the individual maintains with the Class A sports wagering facility when placing wagers with the Class B sports wagering licensee. Subject to the approval of a Class A sports wagering facility licensee, a Class B sports wagering facility licensee that receives sports wagering services from a Class A sports wagering facility licensee may utilize and market the Class A sports wagering facility licensee’s branding and loyalty rewards programs in the same manner as the Class A sports wagering facility licensee. 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 sports wagering facility licensee authorized to accept in–person wagers 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 only accept wagers in the special event zone.

A mobile sports wagering licensee: may conduct and operate online sports wagering; or subject to paragraph (3) of this subsection and subsection (b) of this section, may enter into a contract with an online sports wagering operator to conduct online sports wagering on its behalf. 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. A mobile sports wagering licensee may not contract with more than one online sports wagering operator to conduct online sports wagering on the licensee’s behalf. All mobile sports wagering licensees that are related entities are treated as a single mobile sports wagering licensee for purposes of the limitation under subparagraph (i) of this paragraph. 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. An online sports wagering operator may conduct online sports wagering on behalf of more than one mobile sports wagering licensee.

An individual may not wager on a sporting event and a sports wagering licensee may not accept a wager from an individual on a sporting event if the individual: 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. For online sports wagering, a mobile sports wagering licensee shall: have in place technical and operational measures to prevent access by individuals who are underage or physically located outside the State, including: age verification procedures, which may require the use of a reputable independent third party that is in the business of verifying an individual’s personally identifiable information; and the use of geolocation technology to verify a bettor’s geographic location; 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. A sports wagering licensee shall: promptly report to the Commission: any criminal or disciplinary proceedings against the licensee or its employees in connection with the licensee’s sports wagering operation; any abnormal betting activity or patterns that may indicate a concern about the integrity of a sporting event; any other conduct with the potential to corrupt the outcome of a sporting event for purposes of financial gain, including match fixing; and any suspicious or illegal wagering activities, including the use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, use of agents to place wagers, or use of false identification; and maintain records of sports wagering operations in accordance with regulations adopted by the Commission. The Commission is authorized to share any information under this section with any law enforcement agency, sports team, sports governing entity, or regulatory agency the Commission deems appropriate. In this subsection, “interested party” means: a sports wagering licensee; a professional sports team, league, association, or governing entity; or an institution of higher education. 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. Except as provided in subparagraphs (ii), (iii), and (iv) of this paragraph, all proceeds from sports wagering shall be electronically transferred monthly into the State Lottery Fund established under Subtitle 1 of this title. A Class A–1 and A–2 sports wagering facility licensee shall retain 85% of the proceeds from sports wagering conducted at the locations described in § 9–1E–09(a) of this subtitle. A Class B–1 and B–2 sports wagering facility licensee shall retain 85% of the proceeds from sports wagering conducted at the location described in the licensee’s application. A mobile sports wagering licensee shall retain 80% of the proceeds from online sports wagering received by the licensee. Except as provided in subparagraph (ii) of this paragraph, all proceeds from sports wagering in the State Lottery Fund established under Subtitle 1 of this title shall be distributed on a monthly basis, on a properly approved transmittal prepared by the Commission to the Blueprint for Maryland’s Future Fund established under § 5–206 of the Education Article. For fiscal year 2026 and each fiscal year thereafter, 5% of the proceeds attributable to online sports wagering shall be deposited in the General Fund. A winning wager on a sporting event that is not claimed by the winner within 182 days after the wager is won shall: become the property of the State; and be distributed to the Problem Gambling Fund established under § 9–1A–33 of this title. If a sports wagering licensee returns to successful players more than the amount of money wagered in any month, the licensee may subtract that amount from the proceeds of up to the three following months. The admissions and amusement tax may not be imposed on any proceeds from sports wagering.

All wagers on sporting events authorized under this subtitle shall be initiated, received, and otherwise made within the State unless otherwise determined by the Commission in accordance with applicable federal and State laws. Consistent with the intent of the United States Congress as articulated in the Unlawful Internet Gambling Enforcement Act of 2006, the intermediate routing of electronic data relating to a lawful intrastate wager authorized under this subtitle may not determine the location in which the wager is initiated, received, or otherwise made. Notwithstanding the provisions of this subtitle, a wager on a sporting event may be accepted or pooled with a wager from an individual who is not physically present in the State if the Commission determines that accepting or pooling the wager is not inconsistent with federal law or the law of the jurisdiction, including any foreign nation, in which the individual is located, or that such wagering is conducted in accordance with a reciprocal agreement to which the State is a party that is not inconsistent with federal law.

On or before July 1 each year, each sports wagering licensee shall report to the Commission on: 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. On or before December 1 each year, the Commission shall report to the Governor and, in accordance with § 2–1257 of this article, to the General Assembly on: 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.

There is a Sports Wagering Application Review Commission. The Sports Wagering Application Review Commission consists of the following seven members: the chair of the Commission, or the chair’s designee; two members appointed by the Governor; two members appointed by the President of the Senate, who may not be members of the Senate; and two members appointed by the Speaker of the House, who may not be members of the House of Delegates. 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. A member of the Sports Wagering Application Review Commission: 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: as an executive with fiduciary responsibilities in charge of a large organization or foundation; in an academic field relating to finance or economics; or as an economist, a financial analyst, or an accountant, or as a professional in a similar profession relating to fiscal matters or economics; 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. A member of the Sports Wagering Application Review Commission: 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. The Sports Wagering Application Review Commission: shall review applications for sports wagering licenses submitted in accordance with § 9–1E–06 of this subtitle; shall award: a Class A–1 or A–2 facility license to any applicant that meets the requirements for licensure under this subtitle; and a Class B–1 or B–2 facility license to any applicant that is described under § 9–1E–06(a)(2)(i) of this subtitle and meets the requirements for licensure under this subtitle; and 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. Nothing in this subtitle may be construed to preempt the exclusive authority of the Sports Wagering Application Review Commission to award sports wagering licenses in accordance with this subtitle. 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: evaluate a study of the sports wagering industry and market to determine whether there is a compelling interest to implement remedial measures, in addition to the application of the State Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article or a similar program, to assist minorities and women in the sports wagering industry; evaluate race–neutral programs or other methods that may be used to address the needs of minorities, women, and minority and women–owned businesses seeking to participate in the sports wagering industry, including through the ownership of entities licensed to conduct sports wagering under this subtitle; consider whether an applicant for a Class B–1 or B–2 sports wagering facility license intends to conduct sports wagering at a facility located in an opportunity zone or an enterprise zone; consider allowing early access to the mobile sports wagering market to entities with a meaningful partnership with minorities, women, and minority– and women–owned businesses; and adopt emergency regulations to implement remedial measures, if necessary and to the extent permitted by State and federal law, based on the findings of the study evaluated under item (i) of this paragraph. The Sports Wagering Application Review Commission shall: to the extent permitted by federal and State law, actively seek to achieve racial, ethnic, and gender diversity when awarding licenses; and encourage applicants who qualify as a minority business enterprise, as defined in § 14–301 of the State Finance and Procurement Article, or who are small, minority, or women–owned business entities to apply for sports wagering licenses under this subtitle. 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: make serious, good–faith efforts to solicit and interview a reasonable number of minority and women investors; and as part of the application, submit a statement that lists the names and addresses of all minority and women investors interviewed and whether or not any of those investors have purchased an equity share in the entity submitting an application. 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 may not award a sports wagering license to a person that is not qualified under this section or this subtitle. 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. After an award of a sports wagering license under this section, the Sports Wagering Application Review Commission shall notify the State Lottery and Gaming Control Commission of the successful applicants. After an award of a sports wagering license under this section, the State Lottery and Gaming Control Commission shall: 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: take precedence on the Board’s docket; be heard at the earliest practicable date; and be expedited in every way. Notwithstanding any of the provisions of this subtitle, the Sports Wagering Application Review Commission may not award a sports wagering license under this subtitle unless the Sports Wagering Application Review Commission determines and declares that an applicant selected for award of the license is in the public interest and is consistent with the purposes of this subtitle. The Sports Wagering Application Review Commission may award a sports wagering license that is revoked or surrendered utilizing the criteria established in this subtitle. 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: 1 year prior to the expiration of a sports wagering license; or following the revocation or surrender of a sports wagering license.

In this section, “Fund” means the Small, Minority–Owned, and Women–Owned Business Sports Wagering Assistance Fund. There is a Small, Minority–Owned, and Women–Owned Business Sports Wagering Assistance Fund. The purpose of the Fund is to assist small, minority–owned, and women–owned businesses entering the sports wagering market. The Department of Commerce shall administer the Fund. 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. The Fund consists of: 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. The Fund may be used only for grants or loans to small, minority–owned, or women–owned businesses for: 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. Expenditures from the Fund may be made only in accordance with the State budget.

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: shall have demonstrated experience and expertise in evaluating and rating sports wagering content; shall have an audit process constructed and maintained by in–house, licensed certified public accountants; shall have evaluation and rating procedures that are unable to be adjusted, duplicated, or altered by the persons subject to evaluation; may not have any direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests in any sports wagering activities; may not receive or share in, directly or indirectly, the receipts or proceeds of any sports wagering activities; and may not have any revenue–sharing relationship with or other financial interest in a sports wagering licensee or sports wagering operator. An employee or a principal of an independent evaluator, or the independent evaluator as an entity, may not wager on a sporting event. Except as provided in subparagraph (ii) of this paragraph, an independent evaluator may not be compensated by a sports wagering licensee or sports wagering operator that utilizes the independent evaluator’s evaluation services solely for marketing materials. An independent evaluator may be compensated by a sports wagering licensee or sports wagering operator for its evaluation and rating of sports wagering content. The Commission may establish additional qualifications for the licensing of independent evaluators in accordance with this subsection. The Commission shall adopt regulations to implement this section. A sports wagering licensee or sports wagering operator that advertises in the State may contract with an independent evaluator licensed under subsection (b) of this section to evaluate and rate the sports wagering licensee’s sports wagering content, sports wagering experts, sports wagering influencers, and content partners.