<subtitle num="01" heading="General Provisions"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this title, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Agency” means the State Lottery and Gaming Control Agency and, unless the context dictates otherwise, includes the Director and Commission.</text> </paragraph> <paragraph num="(2)"> <text>Cash.</text> <paragraph num="(a)"> <text>“Cash” means coins, U.S. currency, money orders, debit cards, checks, gaming chips, gaming tickets, vouchers, or prepaid cards issued or approved by the Agency.</text> </paragraph> <paragraph num="(b)"> <text>“Cash” does not include credit.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Commission” means the State Lottery and Gaming Control Commission and, unless the context dictates otherwise, may include staff of the Agency.</text> </paragraph> <paragraph num="(4)"> <text>“County” means any county in the State of Maryland and the City of Baltimore.</text> </paragraph> <paragraph num="(5)"> <text>Direct Exclusion.</text> <paragraph num="(a)"> <text>“Direct exclusion” means the process by which a fantasy competition operator, mobile sports wagering licensee, or online sports wagering operator licensee allows an individual to self-exclude from a gaming platform.</text> </paragraph> <paragraph num="(b)"> <text>“Direct exclusion” does not include:</text> <paragraph num="(i)"> <text>Voluntary exclusion under COMAR 36.01.03; or</text> </paragraph> <paragraph num="(ii)"> <text>Mandatory exclusion under COMAR 36.03.07 or COMAR 36.10.10.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Director” means the Director of the Agency and includes the Director’s designee.</text> </paragraph> <paragraph num="(7)"> <text>“Fantasy competition” has the meaning stated in State Government Article, § 9-1D-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(8)"> <text>“Fantasy competition operator” has the meaning stated in State Government Article, § 9-1D-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Fantasy competition platform” has the meaning stated in COMAR 36.09.01.02.</text> </paragraph> <paragraph num="(10)"> <text>“Final action on a license denial” means:</text> <paragraph num="(a)"> <text>If, after the Director sends written notice of license denial or recommendation of license denial, an applicant fails to timely request a reconsideration meeting, the date of the written notice of the Directors written notice;</text> </paragraph> <paragraph num="(b)"> <text>If, after a reconsideration meeting, an applicant fails to timely request a Commission hearing, the date of the Directors written notice after the reconsideration meeting; or</text> </paragraph> <paragraph num="(c)"> <text>If the Commission holds or delegates a hearing on an appeal of the Directors license denial or reconsideration of license denial, the date of the Commissions or the Office of Administrative Hearings written decision.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>“Final action on a sanction” means:</text> <paragraph num="(a)"> <text>The Commission adopts the Director’s deficiency notice under COMAR 36.02.02, 36.03.04, 36.06.05, 36.07.02, 36.03.03 or 36.10.08, and a licensee fails to submit a timely, acceptable corrective action plan;</text> </paragraph> <paragraph num="(b)"> <text>The date of the Commission’s written decision after a hearing on the Director’s recommendation to impose a sanction; or</text> </paragraph> <paragraph num="(c)"> <text>If a licensee seeks judicial review of the Commission’s sanction, the most recent date of:</text> <paragraph num="(i)"> <text>A decision of the Office of Administrative Hearings;</text> </paragraph> <paragraph num="(ii)"> <text>A final judgment under Maryland Rule 2-601; or</text> </paragraph> <paragraph num="(iii)"> <text>The entry of a mandate under Maryland Rule 8-606.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(12)"> <text>“Gaming activity” means play of a game, device, or machine that is regulated by the Agency which is:</text> <paragraph num="(a)"> <text>Lottery, under COMAR 36.02;</text> </paragraph> <paragraph num="(b)"> <text>Video lottery terminals, under COMAR 36.03;</text> </paragraph> <paragraph num="(c)"> <text>Table games, under COMAR 36.05;</text> </paragraph> <paragraph num="(d)"> <text>Electronic gaming devices, under COMAR 36.06;</text> </paragraph> <paragraph num="(e)"> <text>Instant bingo machines in Anne Arundel or Calvert Counties, under COMAR 36.07;</text> </paragraph> <paragraph num="(f)"> <text>Fantasy competitions, under COMAR 36.09; and</text> </paragraph> <paragraph num="(g)"> <text>Sports wagering, under COMAR 36.10.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Gaming law” means State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(14)"> <text>Gaming Platform.</text> <paragraph num="(a)"> <text>“Gaming platform” means hardware and software used for a website, application, or other platform which is accessible via the internet or mobile, wireless, or similar communications technology that allows players to participate in a gaming activity.</text> </paragraph> <paragraph num="(b)"> <text>“Gaming platform” includes a sports wagering platform and a fantasy competition platform.</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>“Gaming ticket” has the meaning stated in COMAR 36.03.10.02.</text> </paragraph> <paragraph num="(16)"> <text>“Lottery”, “Maryland Lottery”, or” State Lottery” means the Agency.</text> </paragraph> <paragraph num="(17)"> <text>Lottery Game.</text> <paragraph num="(a)"> <text>“Lottery game” means a game, activity, or other activity that is approved or offered by the Agency for consideration to win a prize by chance in which the:</text> <paragraph num="(i)"> <text>Only direct or personal participation by a player is the player’s purchase or receipt of a ticket;</text> </paragraph> <paragraph num="(ii)"> <text>Chance to win is determined at random; and</text> </paragraph> <paragraph num="(iii)"> <text>Proceeds benefit the State.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Lottery game” does not include unless otherwise specified by the Director, a promotion.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>“Lottery law” means State Government Article, Title 9, Subtitle 1, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(19)"> <text>“Online platform” means an interface using the internet that provides an individual the opportunity to engage in an authorized gaming activity, promotion, or loyalty rewards program.</text> </paragraph> <paragraph num="(20)"> <text>“Player” means a person who participates in gaming activity.</text> </paragraph> <paragraph num="(21)"> <text>“Person” has the meaning stated in State Government Article §1-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(22)"> <text>Prize.</text> <paragraph num="(a)"> <text>“Prize” means:</text> <paragraph num="(i)"> <text>A monetary award;</text> </paragraph> <paragraph num="(ii)"> <text>Merchandise;</text> </paragraph> <paragraph num="(iii)"> <text>A ticket;</text> </paragraph> <paragraph num="(iv)"> <text>A experience that is a trip;</text> </paragraph> <paragraph num="(v)"> <text>An outing; or</text> </paragraph> <paragraph num="(vi)"> <text>A designated activity involving personal participation.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Prize” may include a combination of § B(22)(a)—(d) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(23)"> <text>“Retailer” or “Lottery retailer” means a person who has been licensed by the Agency to sell tickets.</text> </paragraph> <paragraph num="(24)"> <text>“Share” or “lottery share” means a ticket in which one or more individuals have an ownership interest.</text> </paragraph> <paragraph num="(25)"> <text>“Sports wagering” has the meaning stated in State Government Article 9-1E-01, Annotated Code of Maryland, and COMAR 36.10.01.02.</text> </paragraph> <paragraph num="(26)"> <text>“Sports wagering law” means State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(27)"> <text>“Sports wagering platform” has the meaning stated in COMAR 36.10.01.02.</text> </paragraph> <paragraph num="(28)"> <text>“State obligation” means money owed under:</text> <paragraph num="(a)"> <text>Criminal Procedure Article, §11-616(b) or 11-618, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Family Law Article, §10-113.1(a), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>State Finance and Procurement Article, §3-307, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(d)"> <text>Any other State law.</text> </paragraph> </paragraph> <paragraph num="(29)"> <text>“Submit” means to deliver a document:</text> <paragraph num="(a)"> <text>In a manner that ensures its receipt by the party to whom it is addressed; and</text> </paragraph> <paragraph num="(b)"> <text>Which is considered complete only upon actual receipt by that party.</text> </paragraph> </paragraph> <paragraph num="(30)"> <text>“Table games” means:</text> <paragraph num="(a)"> <text>A game or composite of a game that the Commission has approved for play in a video lottery facility; and</text> </paragraph> <paragraph num="(b)"> <text>A gaming tournament in which players compete against one another in a table game event.</text> </paragraph> </paragraph> <paragraph num="(31)"> <text>“Ticket” means a ticket authorized by the Agency that a lottery retailer or the Agency makes available for sale.</text> </paragraph> <paragraph num="(32)"> <text>“Video lottery” has the meaning stated in State Government Article, § 9-1A-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(33)"> <text>“Video lottery facility” has the meaning stated in State Government Article, § 9-1A-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(34)"> <text>Video Lottery Terminal.</text> <paragraph num="(a)"> <text>“Video lottery terminal” means any machine or other device that:</text> <paragraph num="(i)"> <text>On insertion of a bill, coin, token, voucher, ticket, coupon, or similar item, or on payment of any consideration is available to play or simulate the play of any game of chance in which the results, including the options available to the player, are randomly determined by the machine or other device; and</text> </paragraph> <paragraph num="(ii)"> <text>By the element of chance, may deliver or entitle the player who operates the machine or device to receive cash, premiums, merchandise, tokens, or anything of value, whether the payout is made automatically from the device or in any other manner.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Video lottery terminal” includes a machine or device that:</text> <paragraph num="(i)"> <text>Does not directly dispense money, tokens, or anything of value to winning players; and</text> </paragraph> <paragraph num="(ii)"> <text>Uses an electronic credit system making the deposit of bills, coins, or tokens unnecessary.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>“Video lottery terminal” means each single position or seat available for use by a player;</text> </paragraph> <paragraph num="(d)"> <text>“Video lottery terminal” does not include an authorized electronic gaming device operated by an eligible organization under Criminal Law Article, Title 12, Subtitle 3, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(35)"> <text>“Voluntary exclusion program” means the Commission’s Voluntary Exclusion Program established under COMAR 36.01.03.</text> </paragraph> <paragraph num="(36)"> <text>“Winnings” means the amount won from a wager or play that is not reduced by a loss.</text> </paragraph> <paragraph num="(37)"> <text>“Work day” means a day when State government offices are open for business.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Rules of Construction."> <paragraph num="A."> <text>Gender and Number. In interpreting and applying this title, the following rules of construction shall apply:</text> <paragraph num="(1)"> <text>Words denoting one gender pronoun include and apply to any other pronoun; and</text> </paragraph> <paragraph num="(2)"> <text>The singular includes the plural and vice versa.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Computation of Time. Time is computed as provided in General Provisions Article § 1-302, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Commission."> <paragraph num="A."> <text>Overview of Commission.</text> <paragraph num="(1)"> <text>The Commission is included in the Agency.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may advise the Director on the administration and operation of the Agency in accordance with the lottery law.</text> </paragraph> <paragraph num="(3)"> <text>The Agency shall assist the Commission to carry out its statutory and regulatory obligations.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Operational Procedures.</text> <paragraph num="(1)"> <text>Meetings.</text> <paragraph num="(a)"> <text>The Commission shall:</text> <paragraph num="(i)"> <text>Determine the times and places of its meetings;</text> </paragraph> <paragraph num="(ii)"> <text>Set its procedures for frequency, notice, and conduct of meetings;</text> </paragraph> <paragraph num="(iii)"> <text>Annually elect a chair from among its members; and</text> </paragraph> <paragraph num="(iv)"> <text>Act only if at least four members concur.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The Commission may annually elect a vice chair from among its members.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Minutes.</text> <paragraph num="(a)"> <text>The Director is the Secretary of the Commission.</text> </paragraph> <paragraph num="(b)"> <text>The Secretary of the Commission shall, as soon as practicable after the Commission meets, prepare minutes of the meeting and make them available to the public as required under §3-306 of the General Provisions Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Powers of Commission. The Commission may:</text> <paragraph num="(1)"> <text>Issue subpoenas to compel attendance of witnesses at any place within the State in the course of any investigation or hearing conducted under the gaming law and sports wagering law;</text> </paragraph> <paragraph num="(2)"> <text>Administer oaths and require testimony under oath before the Commission in the course of any investigation or hearing conducted under the gaming law, lottery law, and sports wagering law;</text> </paragraph> <paragraph num="(3)"> <text>Serve or cause to be served its process or notices in a manner provided for service of process in civil actions under the Maryland Rules; and</text> </paragraph> <paragraph num="(4)"> <text>Propound written interrogatories.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Agency Director."> <paragraph num="A."> <text>General Duties. The Director shall:</text> <paragraph num="(1)"> <text>Supervise and administer the operation of the Agency;</text> </paragraph> <paragraph num="(2)"> <text>Provide assistance to the Commission in the performance of its duties; and</text> </paragraph> <paragraph num="(3)"> <text>Advise the Commission about any changes needed to improve the operation or administration of the Agency.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Powers of Director.</text> <paragraph num="(1)"> <text>The Director has all those powers conferred under State Government Article, Title 9, Subtitle 1, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The Director may:</text> <paragraph num="(a)"> <text>Make determinations on all issues relating to the Agency and all of the Agency’s games, promotions, and special activities;</text> </paragraph> <paragraph num="(b)"> <text>Determine that a ticket is void and if the ticket shall be paid; and</text> </paragraph> <paragraph num="(c)"> <text>Establish and announce special purchase options which reduce the purchase price of a lottery game for a specified period.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Director may establish and change:</text> <paragraph num="(a)"> <text>The number of prize categories;</text> </paragraph> <paragraph num="(b)"> <text>The allocation of prize money among prizes;</text> </paragraph> <paragraph num="(c)"> <text>The price of lottery games;</text> </paragraph> <paragraph num="(d)"> <text>The probability or odds of winning a lottery game;</text> </paragraph> <paragraph num="(e)"> <text>The amount of winnings a player may accumulate from a subscription as provided in COMAR 36.02.06.12.D; and</text> </paragraph> <paragraph num="(f)"> <text>Any other aspect of lottery game play, payment, and implementation.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Director may:</text> <paragraph num="(a)"> <text>Authorize the Agency to substitute a prize of equivalent value or higher for a prize; and</text> </paragraph> <paragraph num="(b)"> <text>Approve a winner’s request to receive a cash equivalent value or other substitute prize for a merchandise or experience.</text> </paragraph> <paragraph num="(c)"> <text>Determine that a ticket shall be canceled;</text> </paragraph> <paragraph num="(d)"> <text>If a player violates a lottery law or regulation, invalidate a ticket, delay a prize award, or issue a refund; or</text> </paragraph> <paragraph num="(e)"> <text>Delegate to another individual the performance of any activity, function, or service in connection with the operation of the Lottery.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Limitations on Gaming Activity."> <text>Gaming activity may not be engaged in by, and a prize, jackpot, or winnings may not be paid to:</text> <paragraph num="A."> <text>A Commission member;</text> </paragraph> <paragraph num="B."> <text>An officer or an employee of the Agency; or</text> </paragraph> <paragraph num="C."> <text>An individual who lives in the same principal residence as a Commission member or an officer or employee of the Agency and is the officers, members or employees:</text> <paragraph num="(1)"> <text>Spouse or domestic partner;</text> </paragraph> <paragraph num="(2)"> <text>Child;</text> </paragraph> <paragraph num="(3)"> <text>Sibling; or</text> </paragraph> <paragraph num="(4)"> <text>Parent or parent-in-law; or</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Agency may conduct periodic reviews of prizes paid in excess of $600 by reviewing data available to the Agency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Code of Conduct."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Agency employee” means an employee of the Agency</text> </paragraph> <paragraph num="(b)"> <text>“Code of conduct” means the document that identifies activities prohibited for employees of the Agency and Commission members.</text> </paragraph> <paragraph num="(c)"> <text>“Complaint” means the submission of a communication to the Agency or the Commission alleging a violation of a law, regulation, or the code of conduct.</text> </paragraph> <paragraph num="(d)"> <text>“Conflict of interest” means a situation in which a personal interest of a Commission member or an Agency employee may compromise the individual’s judgment, decisions or actions.</text> </paragraph> <paragraph num="(e)"> <text>“Ex parte communication” means a written or oral communication that happens without the knowledge, consent, or presence of all parties involved involving a matter that is pending before the Commission.</text> </paragraph> <paragraph num="(f)"> <text>“Recusal” means that a Commission member or an Agency employee does not participate in a specific matter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Establishment and Compliance.</text> <paragraph num="(1)"> <text>The Director shall establish a code of conduct.</text> </paragraph> <paragraph num="(2)"> <text>Commission members and Agency employees shall comply with the code of conduct.</text> </paragraph> <paragraph num="(3)"> <text>A violation of the code of conduct constitutes a violation of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>The Agency or Commission may report a violation to the State Ethics Commission.</text> </paragraph> <paragraph num="(5)"> <text>An Agency employee who violates the code of conduct may be subject to disciplinary action.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Recusal of a Commission Member.</text> <paragraph num="(1)"> <text>A Commission member may not participate in a Commission matter in which the member:</text> <paragraph num="(a)"> <text>Has a conflict of interest; or</text> </paragraph> <paragraph num="(b)"> <text>For any reason, is unable to participate fairly and impartially.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A Commission members familiarity with a person does not, of itself, require recusal of the Commission member.</text> </paragraph> <paragraph num="(3)"> <text>A Commission member who is recused from a matter before the Commission may not:</text> <paragraph num="(a)"> <text>Participate in the Commission's discussion or vote on the matter; or</text> </paragraph> <paragraph num="(b)"> <text>Discuss the matter or the Commission's review of the matter with a Commission member or any other person.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A Commission member who is recused from a hearing, discussion, or voting on a matter shall:</text> <paragraph num="(a)"> <text>If in person, physically leave the meeting; or</text> </paragraph> <paragraph num="(b)"> <text>If remote, disconnect from the virtual meeting.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The Commission shall document the recusal of the Commission member in the minutes of the Commission meeting from which the member was recused.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Allegation of a Violation of the Code of Conduct.</text> <paragraph num="(1)"> <text>A Commission member against whom a complaint is made shall follow §C(3) and (4) of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>Upon receipt of a complaint, the Commission may:</text> <paragraph num="(a)"> <text>Direct the Agency to investigate; or</text> </paragraph> <paragraph num="(b)"> <text>Refer the complaint to appropriate unit of State government.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An Agency employee who has a conflict of interest pertaining to the Commission member who is the subject of the complaint may not participate in an investigation of the complaint.</text> </paragraph> <paragraph num="(4)"> <text>The Commission member who is the subject of the complaint may not participate in any Commission activity until the complaint is resolved.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Confidentiality.</text> <paragraph num="(1)"> <text>A Commission member or Agency employee may not discuss a confidential matter with a person other than:</text> <paragraph num="(a)"> <text>A Commission member;</text> </paragraph> <paragraph num="(b)"> <text>An Agency employee;</text> </paragraph> <paragraph num="(c)"> <text>The Attorney General's Office;</text> </paragraph> <paragraph num="(d)"> <text>A witness; or</text> </paragraph> <paragraph num="(e)"> <text>Another person authorized by law to be involved in the case.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In the case of an ex parte communication, the Commission member shall follow the provisions of State Government Article, §10-219, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-101—9-111, 9-116, 9-123, 9-1A-01, 9-1A-02, 9-1A-04, 9-1A-24, 9-1D-01, 9-1E-01, 9-1E-04, 10-205, and 10-219, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 29, 2013 (40:8 Md. R. 725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective January 14, 2019 (46:1 Md. R. 13); May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); amended permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective January 14, 2019 (46:1 Md. R. 13); May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective January 14, 2019 (46:1 Md. R. 13); May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective February 16, 2015 (42:3 Md. R. 319)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); amended permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05D, E amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective January 14, 2019 (46:1 Md. R. 13); May 26, 2025 (52:10 Md. R. 439)</annotation> </annotations> </chapter> <chapter num="02" heading="Administrative Procedures"> <regulation prefix="Regulation" num=".01" heading="Public Information Act Requests."> <paragraph num="A."> <text>Scope. This regulation sets out procedures for filing and processing requests with the Agency for the inspection and copying of public records under the Public Information Act.</text> </paragraph> <paragraph num="B."> <text>Policy. It is the policy of the Agency to facilitate access to the public records of the Agency, when access is allowed by law, by minimizing costs and time delays to applicants.</text> </paragraph> <paragraph num="C."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation and in Regulation .02 of this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Act” means the Public Information Act, General Provisions Article, §§4-101—4-601, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Applicant” has the meaning stated in §4-101 of the Act.</text> </paragraph> <paragraph num="(c)"> <text>“Application” means a request for access under the Act for a public record of the Agency.</text> </paragraph> <paragraph num="(d)"> <text>“Board” has the meaning stated in §4-101 of the Act.</text> </paragraph> <paragraph num="(e)"> <text>“Copy” means any form of reproduction using a photocopying machine or other reproduction technology, including a paper copy, an electronic copy, a printout, or an image.</text> </paragraph> <paragraph num="(f)"> <text>“Custodian” means:</text> <paragraph num="(i)"> <text>The official custodian, as defined in General Provisions Article, §4-101, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(ii)"> <text>The Director;</text> </paragraph> <paragraph num="(iii)"> <text>The PIA Coordinator; or</text> </paragraph> <paragraph num="(iv)"> <text>Any other authorized individual who has physical custody and control of a public record of the Agency.</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>“Indigent” has the meaning stated in §4-206 of the Act.</text> </paragraph> <paragraph num="(h)"> <text>“Metadata” has the meaning stated in §4-205 of the Act.</text> </paragraph> <paragraph num="(i)"> <text>“PIA Coordinator” means the Agency employee who is responsible for accepting requests for public records.</text> </paragraph> <paragraph num="(j)"> <text>“Public Access Ombudsman” means the official appointed, under Title 4, Subtitle 1B of the Act, to resolve disputes under the Act.</text> </paragraph> <paragraph num="(k)"> <text>“Public Record” has the meaning stated in §4-101 of the Act.</text> </paragraph> <paragraph num="(l)"> <text>“Reasonable fee” has the meaning stated in §4-206 of the Act.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Who May Request Public Record. Any person may request to inspect or copy public records of the Agency.</text> </paragraph> <paragraph num="E."> <text>Necessity for Written Application.</text> <paragraph num="(1)"> <text>Except as otherwise provided in this regulation, an applicant that wishes to inspect a public record of the Agency shall submit a written application to the PIA Coordinator.</text> </paragraph> <paragraph num="(2)"> <text>An applicant need not submit a written application if:</text> <paragraph num="(a)"> <text>The applicant seeks to inspect a public record designated by the official custodian as available to any applicant immediately on request; or</text> </paragraph> <paragraph num="(b)"> <text>The PIA Coordinator waives the requirement for a written application.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Application to Inspect a Public Record.</text> <paragraph num="(1)"> <text>An application shall be addressed to:</text> <paragraph num="(a)"> <text>The PIA Coordinator; or</text> </paragraph> <paragraph num="(b)"> <text>If the PIA Coordinator is not known, the Director.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An application shall:</text> <paragraph num="(a)"> <text>Reasonably identify, by brief description, the public record sought; and</text> </paragraph> <paragraph num="(b)"> <text>Provide an address or other means by which the custodian may respond to the applicant’s request.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Response to Application.</text> <paragraph num="(1)"> <text>If the individual to whom the application is submitted is not an Agency custodian, within 10 work days after receiving the application the individual shall give the applicant:</text> <paragraph num="(a)"> <text>Notice of that fact; and</text> </paragraph> <paragraph num="(b)"> <text>If known, the name of the custodian and possible location of the public record.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the custodian decides to grant an application for inspection, the custodian shall produce the record for inspection:</text> <paragraph num="(a)"> <text>Immediately; or</text> </paragraph> <paragraph num="(b)"> <text>Within a reasonable period, not to exceed 30 days from the date of the application if that period of time is needed to retrieve the public record and conduct any necessary review.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the custodian reasonably believes that it will take more than 10 work days to search for, retrieve, prepare, and produce the public record for inspection, the custodian shall indicate in writing or by electronic mail within 10 work days after receipt of the application:</text> <paragraph num="(a)"> <text>The amount of time that the custodian anticipates it will take to produce the public record;</text> </paragraph> <paragraph num="(b)"> <text>An estimate of the range of fees that may be charged to comply with the application for public records; and</text> </paragraph> <paragraph num="(c)"> <text>The reason why it will take more than 10 work days to produce the public record.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If an applicant requests to inspect a public record and a custodian determines the record does not exist, the custodian shall notify the applicant of this determination:</text> <paragraph num="(a)"> <text>Immediately, if the custodian determines this on initial review of the application; or</text> </paragraph> <paragraph num="(b)"> <text>If the custodian determines this after a search for responsive records, promptly after the search is completed but not more than 30 days after receiving the application.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>If the custodian denies an application for inspection:</text> <paragraph num="(a)"> <text>The custodian shall do so within 30 days after the request; and</text> </paragraph> <paragraph num="(b)"> <text>Immediately notify the applicant of the denial.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If an application is denied, the custodian shall provide the applicant, at the time of the denial or within 10 work days, a written statement that gives:</text> <paragraph num="(a)"> <text>The reason for the denial including, for records denied under §4-343 of the Act, a brief explanation of:</text> <paragraph num="(i)"> <text>Why denial is necessary; and</text> </paragraph> <paragraph num="(ii)"> <text>Why the harm from disclosure of the public record would be greater than the public interest in providing access to the information in the public record such that disclosure of the public record would be contrary to the public interest;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The legal authority for the denial;</text> </paragraph> <paragraph num="(c)"> <text>Without disclosing the protected information, a brief description of the undisclosed records that will enable the applicant to assess the applicability of the legal authority for the denial; and</text> </paragraph> <paragraph num="(d)"> <text>Notice of the remedies available for review of the denial</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>A time limit imposed by §G(2) and (3) of this regulation may be extended:</text> <paragraph num="(a)"> <text>With the consent of the applicant, for an additional period of up to 30 days; and</text> </paragraph> <paragraph num="(b)"> <text>For the period of time during which a dispute initiated by the applicant is pending before the Public Access Ombudsman.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>The Agency is not required to create a new record in response to an application.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Notice to and Consideration of Views of Person Potentially Affected by Disclosure.</text> <paragraph num="(1)"> <text>Unless prohibited by law, the custodian may provide notice of a request for inspection or copying of any public record of the Agency to any person who, in the judgment of the custodian, could be adversely affected by disclosure of that public record.</text> </paragraph> <paragraph num="(2)"> <text>The custodian may consider the views of the potentially affected person before deciding whether to disclose the public record to the applicant.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Electronic Records.</text> <paragraph num="(1)"> <text>Except as provided in §I(3) and (4) of this regulation, the custodian shall provide an applicant with a copy of the public record in a searchable and analyzable electronic format if:</text> <paragraph num="(a)"> <text>The public record is in a searchable and analyzable electronic format;</text> </paragraph> <paragraph num="(b)"> <text>The applicant requests a copy of the public record in a searchable and analyzable electronic format; and</text> </paragraph> <paragraph num="(c)"> <text>The custodian is able to provide a copy of the public record, in whole or in part, in a searchable and analyzable electronic format that does not disclose information that is exempt from disclosure under the Act.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The custodian shall provide a portion of the public record in a searchable and analyzable electronic format if:</text> <paragraph num="(a)"> <text>Requested by the applicant; and</text> </paragraph> <paragraph num="(b)"> <text>The custodian is able to do so by using the existing functions of the database or software program that contains the searchable an analyzable data.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The custodian is not required to:</text> <paragraph num="(a)"> <text>Create or reconstruct a public record in an electronic format if the public record is not available in an electronic format; or</text> </paragraph> <paragraph num="(b)"> <text>Release an electronic record in a format that would jeopardize or compromise the security or integrity of the original record or any proprietary software in which the record is maintained.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The custodian may remove metadata from an electronic document before providing the electronic record to an applicant by:</text> <paragraph num="(a)"> <text>Using a software program or function; or</text> </paragraph> <paragraph num="(b)"> <text>Converting the electronic record into a different searchable and analyzable format.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>Review of Denial.</text> <paragraph num="(1)"> <text>If the custodian denies an application to inspect or copy a public record of the Agency, the applicant may, file an action for judicial enforcement under §4-362 of the Act without pursuing the remedies set forth in §J(2) and (3) of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>If the custodian charges a fee of more than $350 under §L of this regulation, the applicant may, within 90 days after the date the fee is imposed, file a written complaint with the Board under General Provisions Article, §4-1A-05, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>The applicant and the custodian each may contact the Public Access Ombudsman to resolve, under General Provisions Article, Title 4, Subtitle 1B, Annotated Code of Maryland, a dispute relating to requests for public records.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Temporary Denial.</text> <paragraph num="(1)"> <text>If the act authorizes inspection of a public record but the custodian believes inspection would cause substantial injury to the public interest, the custodian may temporarily deny inspection.</text> </paragraph> <paragraph num="(2)"> <text>Within 10 work days after the denial, the custodian shall petition a circuit court to authorize continued denial of inspection.</text> </paragraph> <paragraph num="(3)"> <text>The petition shall be filed in:</text> <paragraph num="(a)"> <text>The circuit court for the county where the public record is located; or</text> </paragraph> <paragraph num="(b)"> <text>The Circuit Court for Baltimore City.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The custodian’s petition shall be served on the applicant as provided in the Maryland Rules.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Fees.</text> <paragraph num="(1)"> <text>The fee for a photocopy of a public record of the Agency is 25 cents per page.</text> </paragraph> <paragraph num="(2)"> <text>The fee for a certified true copy of a public record is an additional fee of $1 per page.</text> </paragraph> <paragraph num="(3)"> <text>There is no charge if the total fee for copies is $10 or less.</text> </paragraph> <paragraph num="(4)"> <text>Notwithstanding §L(1) of this regulation, if another law sets a fee for a copy, printout or photograph of a public record, that law applies.</text> </paragraph> <paragraph num="(5)"> <text>The custodian may charge for the cost of providing facilities for the reproduction of a public record if the custodian does not have the facilities.</text> </paragraph> <paragraph num="(6)"> <text>Before searching for, retrieving, reviewing, preparing, or copying a public record of the Agency, the custodian shall estimate the cost of reproduction and notify the applicant of the cost, and may:</text> <paragraph num="(a)"> <text>Obtain the agreement of the applicant to pay the cost; or</text> </paragraph> <paragraph num="(b)"> <text>Demand prepayment of the cost from the applicant.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Search and Preparation Fee.</text> <paragraph num="(a)"> <text>Except as provided in §L(8) of this regulation, the Agency may charge a reasonable fee to:</text> <paragraph num="(i)"> <text>Search for and retrieve requested public records;</text> </paragraph> <paragraph num="(ii)"> <text>Review requested public records for potential disclosure; and</text> </paragraph> <paragraph num="(iii)"> <text>Prepare public records for inspection and copying.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The custodian shall determine the fee by multiplying the staff’s or attorney’s salary, prorated to an hourly basis, by the actual time attributable to the search for, retrieval of, review of, and preparation of public records for inspection and copying.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>The custodian may not charge a fee for the first 2 hours spent searching for, retrieving, reviewing and preparing a public record for inspection.</text> </paragraph> <paragraph num="(9)"> <text>Waiver or Reduction of Fee.</text> <paragraph num="(a)"> <text>The custodian may waive or reduce any fee set under this regulation if the applicant requests a waiver, and:</text> <paragraph num="(i)"> <text>The custodian determines that the waiver or reduction is in the public interest; or</text> </paragraph> <paragraph num="(ii)"> <text>The applicant is indigent and submits an affidavit verifying the facts that support a claim of indigency.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>In determining whether a fee is in the public interest, the custodian shall consider, among other relevant factors, the ability of the applicant to pay the fee.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>If the applicant requests that copies of a public record be mailed or delivered to the applicant or a third party, the custodian may charge the applicant for the cost of postage or delivery.</text> </paragraph> <paragraph num="(11)"> <text>If the applicant fails to respond to the custodian within 30 days of the notification under §L(11) of this regulation, the custodian may deem the request withdrawn without further notification to the applicant.</text> </paragraph> <paragraph num="(12)"> <text>An applicant’s request to reopen a request deemed withdrawn under §L(11) of this regulation shall be processed as a new request.</text> </paragraph> </paragraph> <paragraph num="M."> <text>Time and Place of Inspection. An applicant may inspect a public record of the Agency that the applicant is entitled to inspect during a work day of the Agency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Correction of Public Records."> <paragraph num="A."> <text>Scope. This regulation sets out procedures under which a person in interest may request the correction or amendment of a public record of the Agency pursuant to General Provisions Article, §4-502, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Definitions. The definitions in Regulation .01 of this chapter also apply to this regulation.</text> </paragraph> <paragraph num="C."> <text>Who May Request. A person in interest may request that the Agency correct or amend any public record that the:</text> <paragraph num="(1)"> <text>Agency keeps; and</text> </paragraph> <paragraph num="(2)"> <text>Person in interest is authorized to inspect.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Form and Contents of Request.</text> <paragraph num="(1)"> <text>The request shall be:</text> <paragraph num="(a)"> <text>In writing; and</text> </paragraph> <paragraph num="(b)"> <text>Submitted to:</text> <paragraph num="(i)"> <text>The custodian of the record; or</text> </paragraph> <paragraph num="(ii)"> <text>If the custodian is unknown to the person in interest, to the Director.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The request shall:</text> <paragraph num="(a)"> <text>Contain the name, address, and telephone number of the requestor;</text> </paragraph> <paragraph num="(b)"> <text>Identify the public record sought to be corrected or amended;</text> </paragraph> <paragraph num="(c)"> <text>Specify the precise correction or amendment sought;</text> </paragraph> <paragraph num="(d)"> <text>State the reason for the correction or amendment; and</text> </paragraph> <paragraph num="(e)"> <text>Include a statement that, to the best of the requestor’s belief, the public record is inaccurate or incomplete.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Return of Nonconforming Request.</text> <paragraph num="(1)"> <text>The Agency shall accept a request to correct or amend a public record when it is received if it reasonably complies with §§B and C of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>If the request does not reasonably comply with §§B and C of this regulation, the Agency shall return the request to the requestor with:</text> <paragraph num="(a)"> <text>An explanation of the reason for the return; and</text> </paragraph> <paragraph num="(b)"> <text>A statement that, on receipt of a request that reasonably complies with §§B and C of this regulation, the request will be accepted.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Response to Request. Within 30 days after the Agency receives a request for correction or amendment that reasonably complies with §§C and D of this regulation, the custodian shall:</text> <paragraph num="(1)"> <text>Make the requested correction or amendment and inform the requestor in writing of the action; or</text> </paragraph> <paragraph num="(2)"> <text>Inform the requestor in writing that the Agency will not:</text> <paragraph num="(a)"> <text>Make the requested correction or amendment, and the reason for the refusal; or</text> </paragraph> <paragraph num="(b)"> <text>Act on the request because:</text> <paragraph num="(i)"> <text>The requestor is not a person in interest;</text> </paragraph> <paragraph num="(ii)"> <text>The requestor is not authorized to inspect the record;</text> </paragraph> <paragraph num="(iii)"> <text>The record is correct as it stands; or</text> </paragraph> <paragraph num="(iv)"> <text>Of any other reason authorized by law.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Statement of Disagreement. If the Agency refuses to make a requested correction or amendment, a person in interest submit to with the Agency a concise, written statement that, in five pages or less, states the reasons for:</text> <paragraph num="(1)"> <text>The requested correction or amendment; and</text> </paragraph> <paragraph num="(2)"> <text>The person's disagreement with the refusal of the Agency to make the correction or amendment.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Statement of Disagreement Provided Third Parties. If the Agency discloses to a third party information about which a statement of disagreement has been submitted under §H of this regulation, the Agency shall provide a copy of the statement submitted to the Agency by the person in interest.</text> </paragraph> <paragraph num="I."> <text>Administrative Review.</text> <paragraph num="(1)"> <text>A person may seek administrative review under this regulation if the Agency:</text> <paragraph num="(a)"> <text>Has refused the person's request to correct or amend a public record under §E of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Has rejected the person's statement of disagreement under §F of this regulation; or</text> </paragraph> <paragraph num="(c)"> <text>Has not provided a statement of disagreement to a third party under §G of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A request for administrative review shall be submitted to the Director within 30 days after the requestor is advised of the Agency’s action.</text> </paragraph> <paragraph num="(3)"> <text>The administrative review proceedings shall be conducted in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and the hearing regulations of the Agency.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Open Meetings."> <paragraph num="A."> <text>Public Attendance.</text> <paragraph num="(1)"> <text>The public may attend and observe an open session of a Commission meeting.</text> </paragraph> <paragraph num="(2)"> <text>Except in instances when the Commission expressly invites public testimony, questions, comments, or other forms of public participation, or when public participation is otherwise authorized by law, no member of the public attending an open meeting may participate in the session.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Disruptive Conduct or Activity.</text> <paragraph num="(1)"> <text>A person attending an open session of the Commission may not engage in any conduct that disrupts the session or interferes with the opportunity of members of the public to attend and observe the session.</text> </paragraph> <paragraph num="(2)"> <text>The presiding officer may:</text> <paragraph num="(a)"> <text>Order any person who engages in conduct that disrupts a session, to be removed from the session;</text> </paragraph> <paragraph num="(b)"> <text>Request police assistance to restore order; and</text> </paragraph> <paragraph num="(c)"> <text>Recess the session while order is restored.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Recording, Photographing, and Broadcasting of Open Meetings.</text> <paragraph num="(1)"> <text>A member of the public, including a representative of the news media, may record discussions of the Commission at an open session by means of a tape recorder or another recording device if the device:</text> <paragraph num="(a)"> <text>Is operated from the individual's seat;</text> </paragraph> <paragraph num="(b)"> <text>Does not create a noise that disturbs members of the Commission or other persons attending the session;</text> </paragraph> <paragraph num="(c)"> <text>Does not otherwise interfere with another person’s attendance or observation of the session; and</text> </paragraph> <paragraph num="(d)"> <text>Is operated openly so that it is obvious to those in attendance that the session is being recorded.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A member of the public, including a representative of the news media, may photograph, videotape, broadcast, or televise the proceedings of the Commission at an open session by means of any type of camera if the camera:</text> <paragraph num="(a)"> <text>Is operated from a fixed position that does not block the view of another individual;</text> </paragraph> <paragraph num="(b)"> <text>Is operated without a flash or other form of excessively bright artificial light that disturbs members of the Commission or other persons attending the session;</text> </paragraph> <paragraph num="(c)"> <text>Does not otherwise interfere with another person’s observation of or participation in the session;</text> </paragraph> <paragraph num="(d)"> <text>Is operated openly so that it is obvious to those in attendance that the session is being photographed or videotaped; and</text> </paragraph> <paragraph num="(e)"> <text>Does not create a noise that disturbs members of the Commission or other persons attending the session.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Except with the unanimous consent of all members present at an open session of the Commission, a microphone may not be placed on the tables used by members of the Commission during an open session.</text> </paragraph> <paragraph num="(4)"> <text>Except during a recess of an open session of the Commission a person may not:</text> <paragraph num="(a)"> <text>Move about the meeting room when using a recording device, camera, or broadcasting or televising equipment; or</text> </paragraph> <paragraph num="(b)"> <text>Move a recording device, camera, or broadcasting or televising equipment from its initial location.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The Commission may require any person who intends to record, photograph, videotape, broadcast, or televise an open session to register with the Commission at least 24 hours before the session begins.</text> </paragraph> <paragraph num="(6)"> <text>A representative from the news media who desires special arrangements for the use of a recording device, camera, or broadcasting or televising equipment in a manner not consistent with the provisions of this regulation may request these special arrangements in advance by contacting the Director.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Recordings Not Part of Record. A recording of an open session made by a member of the public, and any transcript derived from the recording, may not be considered a part of the record of any proceeding of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Petition for Declaratory Ruling."> <paragraph num="A."> <text>Submissions. A person may submit a petition with the Agency seeking the issuance of a declaratory ruling with respect to the applicability of a regulation, order, or statute enforceable by the Agency.</text> </paragraph> <paragraph num="B."> <text>Petition Requirements.</text> <paragraph num="(1)"> <text>Form. The petition shall:</text> <paragraph num="(a)"> <text>Be in writing and specifically state the declaratory ruling sought;</text> </paragraph> <paragraph num="(b)"> <text>Include a detailed statement of the relevant facts and the petitioner's argument in support of the position asserted in the petition; and</text> </paragraph> <paragraph num="(c)"> <text>Include a statement concerning the interest of the petitioner in the controversy and how a declaratory ruling would affect the petitioner's interest.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Submission and Consideration.</text> <paragraph num="(a)"> <text>The petition shall be submitted to the Director.</text> </paragraph> <paragraph num="(b)"> <text>The Director:</text> <paragraph num="(i)"> <text>Shall consider the petition; and</text> </paragraph> <paragraph num="(ii)"> <text>May delegate the preparation of written findings of fact and proposed conclusions of law.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Disposition.</text> <paragraph num="(1)"> <text>If the Director decides not to issue a declaratory ruling, the Director shall notify the petitioner in writing, stating briefly the reasons for the refusal.</text> </paragraph> <paragraph num="(2)"> <text>If the Director decides to issue a declaratory ruling, the Director shall after appropriate consideration, issue the ruling in writing, stating the findings of fact and conclusions of law.</text> </paragraph> <paragraph num="(3)"> <text>Unless reviewable by the Commission under §E of this regulation, the Director’s decision is final.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Effect of Declaratory Ruling. A final declaratory ruling is binding between the Agency and the petitioner on the statement of facts set forth in the final ruling.</text> </paragraph> <paragraph num="E."> <text>Review By Commission.</text> <paragraph num="(1)"> <text>The Director’s decision shall be forwarded to the Commission for its review and approval before it may be considered final for a petition for declaratory ruling under:</text> <paragraph num="(a)"> <text>State Government Article, Title 9, Subtitles 1, 1A, 1B, 1D, and 1E, Annotated Code of Maryland, or regulations promulgated thereunder; and</text> </paragraph> <paragraph num="(b)"> <text>Criminal Law Article, Title 12, Subtitle 3, Annotated Code of Maryland, or regulations promulgated thereunder.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Commission’s approval of the Director’s decision makes the Director’s decision final.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Judicial Review. A final declaratory ruling is subject to judicial review in the manner provided for by State Government Article, §10-222, Annotated Code of Maryland.</text> </paragraph> <paragraph num="G."> <text>Agency File.</text> <paragraph num="(1)"> <text>The Agency shall maintain a file of:</text> <paragraph num="(a)"> <text>All petitions submitted for declaratory ruling; and</text> </paragraph> <paragraph num="(b)"> <text>The Director's responses and rulings.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Agency’s file is a public record as defined in General Provisions Article, §4-101, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Petition for Promulgation, Amendment, or Repeal of a Regulation."> <paragraph num="A."> <text>Submissions. A person may submit a petition requesting the promulgation, amendment, or repeal of a regulation concerning which the Agency has rulemaking authority.</text> </paragraph> <paragraph num="B."> <text>Form and Submission.</text> <paragraph num="(1)"> <text>The petition shall:</text> <paragraph num="(a)"> <text>Be submitted to the Director in writing;</text> </paragraph> <paragraph num="(b)"> <text>Include the name, address, and telephone number of the petitioner;</text> </paragraph> <paragraph num="(c)"> <text>Generally describe the regulation sought or identify the regulation which the petitioner seeks to amend or repeal; and</text> </paragraph> <paragraph num="(d)"> <text>Include a brief statement of reasons in support of the petition.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The petition may be in the form of a letter or any other written form as requested by the Director.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Consideration.</text> <paragraph num="(1)"> <text>Upon receipt of the petition, the Director shall consider the petition.</text> </paragraph> <paragraph num="(2)"> <text>In considering the petition, the Director may use any of the following procedures to obtain additional information or views:</text> <paragraph num="(a)"> <text>Publication of the petition or a summary of it in the Maryland Register;</text> </paragraph> <paragraph num="(b)"> <text>Submission of the petition to other interested persons requesting their comments;</text> </paragraph> <paragraph num="(c)"> <text>Public meetings or hearings on the petition; or</text> </paragraph> <paragraph num="(d)"> <text>Any other procedure designed to obtain the views of the public on the subject matter of the petition.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Disposition.</text> <paragraph num="(1)"> <text>Within 60 days after submission of the petition, the Director shall either:</text> <paragraph num="(a)"> <text>Deny the petition, stating the reason for denial; or</text> </paragraph> <paragraph num="(b)"> <text>Initiate rulemaking proceedings.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Within 60 days after submission of the petition, the Director shall forward the petition to the Commission with a recommendation to deny the petition or initiate rulemaking proceedings for a petition pertaining to regulations promulgated under:</text> <paragraph num="(a)"> <text>State Government Article, Title 9, Subtitles 1, 1A, 1B, 1D, and 1E, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>Criminal Law Article, Title 12, Subtitle 3, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Director shall send written notice of the final action taken on the petition to the petitioner and any other person requesting notification.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Agency File.</text> <paragraph num="(1)"> <text>The Agency shall maintain a file of all:</text> <paragraph num="(a)"> <text>Petitions submitted; and</text> </paragraph> <paragraph num="(b)"> <text>Responses and rulings.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Agency’s file is a public record as defined in General Provisions Article, §4-101, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Commission Hearings."> <paragraph num="A."> <text>Scope.</text> <paragraph num="(1)"> <text>These regulations apply only to contested case hearings before the Commission.</text> </paragraph> <paragraph num="(2)"> <text>These regulations do not apply to conferences, meetings, or other informal proceedings where no formal ruling or decision is made.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Act” means the Administrative Procedure Act, State Government Article, §§10-201—10-226, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Administrative law judge” has the meaning stated in COMAR 28.02.01.</text> </paragraph> <paragraph num="(c)"> <text>“Contested case” has the meaning stated in State Government Article, §10-202, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(d)"> <text>“Party” means a person, including the Agency, named or admitted to participate in a hearing.</text> </paragraph> <paragraph num="(e)"> <text>“Presiding Officer” means:</text> <paragraph num="(i)"> <text>The Chairman of the Commission or a member designated by the Chairman; or</text> </paragraph> <paragraph num="(ii)"> <text>In the absence of the Chairman or the member designated by the Chairman, any other Commission member in attendance.</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>“Quorum” means a majority of the full authorized membership of the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Conduct of Hearing.</text> <paragraph num="(1)"> <text>Commission Action.</text> <paragraph num="(a)"> <text>A hearing conducted by the Commission shall be held before not less than a quorum of the Commission.</text> </paragraph> <paragraph num="(b)"> <text>Commission action shall be by the concurrence of at least four members.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Duties of Presiding Officer.</text> <paragraph num="(a)"> <text>The Presiding Officer shall have complete charge of the hearing.</text> </paragraph> <paragraph num="(b)"> <text>In addition to other powers and authority granted by law, the presiding officer may:</text> <paragraph num="(i)"> <text>Administer oaths and affirmations;</text> </paragraph> <paragraph num="(ii)"> <text>Rule upon offers of proof by the parties;</text> </paragraph> <paragraph num="(iii)"> <text>Rule upon the admission and inadmissibility of evidence;</text> </paragraph> <paragraph num="(iv)"> <text>Consider and rule upon all procedural and other motions appropriate to the procedures;</text> </paragraph> <paragraph num="(v)"> <text>Examine witnesses;</text> </paragraph> <paragraph num="(vi)"> <text>Maintain order; and</text> </paragraph> <paragraph num="(vii)"> <text>Limit unnecessarily repetitious or irrelevant evidence or argument.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Legal Advisor.</text> <paragraph num="(1)"> <text>The presiding officer may ask the Office of the Attorney General to act as legal advisor to the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The legal advisor may assist the Commission with:</text> <paragraph num="(a)"> <text>Questions of evidence and law;</text> </paragraph> <paragraph num="(b)"> <text>Preparation of the Commission’s written decision; and</text> </paragraph> <paragraph num="(c)"> <text>Any other appropriate advice function.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Presenter of Evidence.</text> <paragraph num="(1)"> <text>The presiding officer may ask the Office of the Attorney General to act as the presenter of evidence before the Commission.</text> </paragraph> <paragraph num="(2)"> <text>An Agency staff member may act as the presenter of evidence before the Commission.</text> </paragraph> <paragraph num="(3)"> <text>The presenter of evidence shall have all the rights as a representative for any other party with regard to:</text> <paragraph num="(a)"> <text>Submission of evidence;</text> </paragraph> <paragraph num="(b)"> <text>Examination and cross-examination of witnesses;</text> </paragraph> <paragraph num="(c)"> <text>Preparation of summation and argument; and</text> </paragraph> <paragraph num="(d)"> <text>Filing of objections, exceptions, and motions.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Evidence.</text> <paragraph num="(1)"> <text>Only evidence that possesses probative value commonly accepted by reasonable and prudent persons in the conduct of their affairs shall be admitted into the record and considered by the Commission in reaching its decision.</text> </paragraph> <paragraph num="(2)"> <text>The presiding officer may exclude incompetent, irrelevant, immaterial, and unduly repetitious evidence.</text> </paragraph> <paragraph num="(3)"> <text>The presiding officer shall give effect to the rules of privilege recognized by law.</text> </paragraph> <paragraph num="(4)"> <text>In making its determination, the Commission may consider only evidence which has been:</text> <paragraph num="(a)"> <text>Introduced in the course of the hearing; and</text> </paragraph> <paragraph num="(b)"> <text>Made part of the record in the case.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Documentary evidence may be received in the form of copies or excerpts, or incorporated by reference.</text> </paragraph> <paragraph num="(6)"> <text>The Commission may use its experience, technical competence, and specialized knowledge in its evaluation of the evidence.</text> </paragraph> <paragraph num="(7)"> <text>The Commission may take notice of:</text> <paragraph num="(a)"> <text>Judicially cognizable facts; and</text> </paragraph> <paragraph num="(b)"> <text>General, technical, or scientific facts within its specialized knowledge.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>The presiding officer shall inform the parties of notices taken by the Commission.</text> </paragraph> <paragraph num="(9)"> <text>A Party may contest facts so noticed.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Rights of Parties.</text> <paragraph num="(1)"> <text>At a hearing, the parties may:</text> <paragraph num="(a)"> <text>Be represented by counsel;</text> </paragraph> <paragraph num="(b)"> <text>Present witnesses;</text> </paragraph> <paragraph num="(c)"> <text>Cross-examine witnesses presented by the other party or presiding officer;</text> </paragraph> <paragraph num="(d)"> <text>Present documentary and other evidence which is relevant;</text> </paragraph> <paragraph num="(e)"> <text>Submit rebuttal evidence; and</text> </paragraph> <paragraph num="(f)"> <text>Present argument.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If a party is represented by counsel, submissions of evidence, examination and cross-examination of witnesses, and argument shall be performed solely by counsel.</text> </paragraph> <paragraph num="(3)"> <text>The presiding officer, on the presiding officer's own motion or upon request by a member of the Commission, may call additional witnesses.</text> </paragraph> <paragraph num="(4)"> <text>A member of the Commission may examine a witness.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Record and Transcript of Hearing.</text> <paragraph num="(1)"> <text>Record.</text> <paragraph num="(a)"> <text>The Commission shall prepare an official record of the hearing, which shall include all pleadings, testimony, exhibits, and other memoranda or other documents submitted in the proceedings.</text> </paragraph> <paragraph num="(b)"> <text>A record of the hearing shall be made at the expense of the Commission.</text> </paragraph> <paragraph num="(c)"> <text>This record need not be transcribed unless requested by a party or the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Transcript Expense.</text> <paragraph num="(a)"> <text>The cost to obtain a written transcript of any part of a proceeding shall be paid by the party requesting the transcript.</text> </paragraph> <paragraph num="(b)"> <text>The party requesting the transcript is responsible for all costs of transcription.</text> </paragraph> <paragraph num="(c)"> <text>If a party is excepting to, appealing from, or seeking judicial review of the Commission’s proposed or final decision, that party shall request a transcript of the recording, unless a transcript already has been prepared.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Decision and Order.</text> <paragraph num="(1)"> <text>Each decision and order rendered by the Commission shall be in writing and accompanied by findings of fact and conclusions of law.</text> </paragraph> <paragraph num="(2)"> <text>A copy of the decision and order and accompanying findings and conclusions shall be transmitted promptly to each party or each party's attorney of record.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Consolidation.</text> <paragraph num="(1)"> <text>When proceedings involving a common question of law or fact are pending before the Commission, the Commission may consolidate the proceedings pursuant to a motion or on the Commission’s own initiative.</text> </paragraph> <paragraph num="(2)"> <text>If the consolidated proceedings involve different parties or burdens of going forward or persuasion, the Commission may specify special procedures to assure an expeditious and just proceeding.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Default.</text> <paragraph num="(1)"> <text>If, after receiving notice, a party fails to attend or participate in a prehearing conference, hearing, or any other stage of a proceeding, the Commission may:</text> <paragraph num="(a)"> <text>Proceed in that party's absence;</text> </paragraph> <paragraph num="(b)"> <text>Continue the matter to a later time; or</text> </paragraph> <paragraph num="(c)"> <text>Issue a default order against that party.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Within 30 days after issuance of a default order, the party in default may submit a written motion requesting that the order be vacated or modified.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may vacate or modify a default order if the Commission finds that:</text> <paragraph num="(a)"> <text>There is a substantial and sufficient basis for an actual controversy on the merits; and</text> </paragraph> <paragraph num="(b)"> <text>It is equitable to excuse the default.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If a motion to vacate or modify the default order is not timely submitted, or if a motion is submitted and denied, the default order shall be final and effective when the Chairman signs the order.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Dismissal for Lack of Prosecution.</text> <paragraph num="(1)"> <text>If six months pass since a party that initiated an action before the Commission has made a submission or otherwise contacted the Commission to pursue the party’s action, the Commission may dismiss the action.</text> </paragraph> <paragraph num="(2)"> <text>The Commission shall:</text> <paragraph num="(a)"> <text>Document its dismissal of the action in writing; and</text> </paragraph> <paragraph num="(b)"> <text>Transmit the written dismissal to all parties by electronic or regular mail.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If a party disagrees with the dismissal, within 30 days of the date of the dismissal notice, the party shall submit, in writing, its factual and legal basis for disagreement.</text> </paragraph> <paragraph num="(4)"> <text>The Commission may reopen the matter if good cause exists to do so.</text> </paragraph> <paragraph num="(5)"> <text>The Commission’s dismissal of an action is final if:</text> <paragraph num="(a)"> <text>No party timely submits written disagreement with the dismissal; or</text> </paragraph> <paragraph num="(b)"> <text>The Commission declines to reopen the matter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="M."> <text>Time Modifications and Waivers.</text> <paragraph num="(1)"> <text>The Presiding Officer may modify or waive a time limit established by this title.</text> </paragraph> <paragraph num="(2)"> <text>An administrative law judge may not modify or waive a time limit established by this title, except with the consent of all parties or the consent of the Commission.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Service.</text> <paragraph num="(1)"> <text>A party shall promptly serve a copy of any notice, order, pleading, motion, response, correspondence, decision, paper, or other document submitted in a proceeding on all other parties to the proceeding or their authorized representatives.</text> </paragraph> <paragraph num="(2)"> <text>Unless otherwise required by law, a party shall make service by personal delivery or by regular mail.</text> </paragraph> <paragraph num="(3)"> <text>A party may make service on a party to whom a license, registration, or certification has been issued by the Agency or the Commission by delivering a copy to the last address provided the Agency by that party.</text> </paragraph> <paragraph num="(4)"> <text>Every paper or document submitted in a proceeding, other than one submitted by or on behalf of the Commission, shall contain or be accompanied by a certificate of service that:</text> <paragraph num="(a)"> <text>Is signed by or on behalf of the party submitting the paper or document; and</text> </paragraph> <paragraph num="(b)"> <text>Specifies the:</text> <paragraph num="(i)"> <text>Date of service;</text> </paragraph> <paragraph num="(ii)"> <text>Manner of service;</text> </paragraph> <paragraph num="(iii)"> <text>Name of each person served; and</text> </paragraph> <paragraph num="(iv)"> <text>Address at which each person was served.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="O."> <text>Delegation of Hearing Authority.</text> <paragraph num="(1)"> <text>The Commission may, on a case-by-case basis, delegate to the Office of Administrative Hearings the authority to:</text> <paragraph num="(a)"> <text>Conduct a contested case hearing; and</text> </paragraph> <paragraph num="(b)"> <text>Issue:</text> <paragraph num="(i)"> <text>Proposed or final findings of fact;</text> </paragraph> <paragraph num="(ii)"> <text>Proposed or final conclusions of law;</text> </paragraph> <paragraph num="(iii)"> <text>Proposed or final findings of fact and conclusions of law; or</text> </paragraph> <paragraph num="(iv)"> <text>A proposed or final order.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Hearings delegated to the Office of Administrative Hearings.</text> <paragraph num="(a)"> <text>This section applies to a contested case where the Commission has delegated authority to the Office of Administrative Hearings to conduct a contested case hearing under §O(1) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>The administrative law judge who hears a case shall submit to the Commission a decision that contains one of the following, as delegated by the Commission to the Office of Administrative Hearings:</text> <paragraph num="(i)"> <text>Proposed or final findings of fact;</text> </paragraph> <paragraph num="(ii)"> <text>Proposed or final conclusions of law;</text> </paragraph> <paragraph num="(iii)"> <text>Proposed or final findings of fact and conclusions of law; or</text> </paragraph> <paragraph num="(iv)"> <text>A proposed or final order.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>When making a decision, the administrative law judge is bound by any regulation, bulletin, final order, or settled and preexisting policy of the Commission to the same extent that the Commission is or would have been bound if the Commission were hearing the case.</text> </paragraph> <paragraph num="(d)"> <text>The Office of Administrative Hearings shall send the administrative law judge’s decision directly to the parties and the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Unless the Commission expressly delegates hearing authority to the Office of Administrative Hearings, the Commission shall hear all contested case matters that come before the Commission.</text> </paragraph> <paragraph num="(4)"> <text>In a hearing delegated to be conducted by an administrative law judge of the Office of Administrative Hearings, these regulations shall be construed, whenever possible, in harmony with COMAR 28.02.01.</text> </paragraph> <paragraph num="(5)"> <text>In the event of conflict between these regulations and COMAR 28.02.01, these regulations control.</text> </paragraph> <paragraph num="(6)"> <text>The Commission may revoke all or part of a delegation previously made to the Office of Administrative Hearings if the Commission believes that the case might:</text> <paragraph num="(a)"> <text>Involve novel or unanticipated factual or legal issues;</text> </paragraph> <paragraph num="(b)"> <text>Have significant social or fiscal consequences;</text> </paragraph> <paragraph num="(c)"> <text>Involve policy issues of general applicability; or</text> </paragraph> <paragraph num="(d)"> <text>Be likely to have precedential value.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>The Commission may revoke a delegation to the Office of Administrative Hearings at any time before the earlier of:</text> <paragraph num="(a)"> <text>The issuance of a ruling on a substantive issue; or</text> </paragraph> <paragraph num="(b)"> <text>The taking of oral testimony from the first witness.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>The Commission shall provide written notice of a revocation to all parties and the Office of Administrative Hearings by sending to the parties a notice that:</text> <paragraph num="(a)"> <text>Contains a brief statement of the reason for the revocation;</text> </paragraph> <paragraph num="(b)"> <text>Specifies whether all or part of the delegation to hear the case is revoked; and</text> </paragraph> <paragraph num="(c)"> <text>If less than all of the delegation is revoked, specifies the parts of the contested case for which the delegation has been revoked.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>The Commission's decision in the case shall reflect the fact that delegation to the Office of Administrative Hearings was revoked.</text> </paragraph> <paragraph num="(10)"> <text>The Commission’s revocation notice shall be included in the record.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§3-101—3-501 and 4-101—4-601;State Government Article, §§9-108—9-111, 9-1A-04, 9-1E-04, 10-201, 10-226, and 10-301—10-305; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 29, 2013 (40:8 Md. R. 725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective March 30, 2015 (42:6 Md. R. 515); March 14, 2016 (43:5 Md. R. 387)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01G, L amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04E amended as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); amended permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05D amended as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); amended permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06O amended as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); amended permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> </annotations> </chapter> <chapter num="03" heading="Voluntary Exclusion and Responsible Gaming"> <regulation prefix="Regulation" num=".01" heading="General."> <paragraph num="A."> <text>Scope. This chapter establishes a mechanism by which an individual may request to be placed on the Commission's Voluntary Exclusion List of individuals with gambling problems who have requested to self-exclude themselves from a gaming activity or a combination of multiple gaming activities.</text> </paragraph> <paragraph num="B."> <text>Definitions.</text> <paragraph num="(1)"> <text>Unless context or regulation dictates otherwise, in this chapter the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Affiliated entity” means an entity sharing ownership or management with a licensee of a gaming activity.</text> </paragraph> <paragraph num="(b)"> <text>“Commission's Voluntary Exclusion List” means the list established by the Commission that allows an individual to request to be excluded from participating in certain gaming activities for a specified period of time.</text> </paragraph> <paragraph num="(c)"> <text>“Sports wagering licensee” means:</text> <paragraph num="(i)"> <text>Sports wagering facility licensee;</text> </paragraph> <paragraph num="(ii)"> <text>Mobile sports wagering licensee;</text> </paragraph> <paragraph num="(iii)"> <text>Sports wagering facility operator licensee; and</text> </paragraph> <paragraph num="(iv)"> <text>Online sports wagering operator licensee.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission shall:</text> <paragraph num="(1)"> <text>Maintain the Commission's Voluntary Exclusion List for individuals who have requested to be excluded from a gaming activity; and</text> </paragraph> <paragraph num="(2)"> <text>Establish measures to reduce and mitigate the effects of problem gambling.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Application for Placement on the Commission's Voluntary Exclusion List."> <paragraph num="A."> <text>An individual may obtain an application for placement on the Commission's Voluntary Exclusion List by:</text> <paragraph num="(1)"> <text>Contacting a licensed video lottery facility and requesting an application from Commission staff;</text> </paragraph> <paragraph num="(2)"> <text>Contacting a licensed instant bingo facility with more than 10 instant bingo machines and requesting an application that is solely for exclusion from a licensed instant bingo facility;</text> </paragraph> <paragraph num="(3)"> <text>Contacting the Agency; or</text> </paragraph> <paragraph num="(4)"> <text>Obtaining an application online</text> </paragraph> </paragraph> <paragraph num="B."> <text>Information about an application for placement on the Commission’s Voluntary Exclusion List shall be available at:</text> <paragraph num="(1)"> <text>Each licensed video lottery facility;</text> </paragraph> <paragraph num="(2)"> <text>Each registered fantasy competition operator;</text> </paragraph> <paragraph num="(3)"> <text>Each sports wagering licensee;</text> </paragraph> <paragraph num="(4)"> <text>Each licensed instant bingo facility with more than 10 instant bingo machines; and</text> </paragraph> <paragraph num="(5)"> <text>The Agency.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An individual may request to be excluded from:</text> <paragraph num="(1)"> <text>A gaming activity by submitting a completed application for placement on the Commission’s Voluntary Exclusion List to Agency staff; and</text> </paragraph> <paragraph num="(2)"> <text>An instant bingo facility with more than 10 instant bingo machines by submitting a completed application to instant bingo facility staff.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A completed application for placement on the Commission’s Voluntary Exclusion List shall include:</text> <paragraph num="(1)"> <text>Sufficient information and documentation to identify, exclude, and contact the individual;</text> </paragraph> <paragraph num="(2)"> <text>A signature of the individual, which may include the use of a Commission-approved secure electronic means; and</text> </paragraph> <paragraph num="(3)"> <text>Any other information about the individual that the Commission requires.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Information on a completed application may include the individual’s:</text> <paragraph num="(1)"> <text>Name, including any nickname or alias;</text> </paragraph> <paragraph num="(2)"> <text>Residential address;</text> </paragraph> <paragraph num="(3)"> <text>Date of birth;</text> </paragraph> <paragraph num="(4)"> <text>Valid, unexpired, government-issued identification that includes a photograph of the applicant;</text> </paragraph> <paragraph num="(5)"> <text>Social Security number or other government-issued identification number;</text> </paragraph> <paragraph num="(6)"> <text>Gender identity;</text> </paragraph> <paragraph num="(7)"> <text>Physical description, including any birthmarks, scars, or tattoos;</text> </paragraph> <paragraph num="(8)"> <text>Race or ethnic origin; and</text> </paragraph> <paragraph num="(9)"> <text>A photograph of the individual.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A completed application shall identify the length of time requested for placement on the Commission’s Voluntary Exclusion List, which shall be for:</text> <paragraph num="(1)"> <text>At least 2 years; or</text> </paragraph> <paragraph num="(2)"> <text>Life;</text> </paragraph> </paragraph> <paragraph num="G."> <text>In the completed application, an applicant shall acknowledge:</text> <paragraph num="(1)"> <text>With the applicant’s written consent, certain problem gambling programs may contact the applicant;</text> </paragraph> <paragraph num="(2)"> <text>The applicant is knowingly and voluntarily applying for inclusion on the Commission’s Voluntary Exclusion List;</text> </paragraph> <paragraph num="(3)"> <text>Is sober and informed;</text> </paragraph> <paragraph num="(4)"> <text>That the applicant releases and holds harmless the State of Maryland, the Commission, the Agency, and their members, employees, and agents from any liability that may arise from the application or the individual’s placement on the Commission’s Voluntary Exclusion List;</text> </paragraph> <paragraph num="(5)"> <text>That the Commission is collecting information from the individual that the:</text> <paragraph num="(a)"> <text>Individual may request to inspect or correct under General Provisions Article, §4-502, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Commission will maintain as sociological information under General Provisions Article, §4-330, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(c)"> <text>Commission or its licensees may share with entities as provided in Regulation .05 of this chapter;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>That the release of information to the persons specified in Regulation .07 of this chapter is permitted;</text> </paragraph> <paragraph num="(7)"> <text>For the entire term of the requested period of exclusion the individual will be prohibited from participating in each gaming activity selected;</text> </paragraph> <paragraph num="(8)"> <text>That there is no automatic removal from the Commission’s Voluntary Exclusion List;</text> </paragraph> <paragraph num="(9)"> <text>That the individual may be subject to criminal charges if, during the period of exclusion, the individual enters a video lottery facility in the State;</text> </paragraph> <paragraph num="(10)"> <text>That the individual may be excluded from participating in the gaming activity of an affiliated entity;</text> </paragraph> <paragraph num="(11)"> <text>That the individual is responsible for knowing from which properties and gaming platforms the individual is excluded;</text> </paragraph> <paragraph num="(12)"> <text>That the individual understands the individual’s responsibilities and possible outcomes associated with being placed on the Commission’s Voluntary Exclusion List; and</text> </paragraph> <paragraph num="(13)"> <text>That the individual is voluntarily applying.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Upon receipt of a completed application for placement on the Commission’s Voluntary Exclusion List, assigned Agency staff may:</text> <paragraph num="(1)"> <text>Interview the individual in order to confirm that the individual:</text> <paragraph num="(a)"> <text>Is voluntarily applying for exclusion;</text> </paragraph> <paragraph num="(b)"> <text>Is sober and informed;</text> </paragraph> <paragraph num="(c)"> <text>Confirms the information provided in the application is accurate and complete; and</text> </paragraph> <paragraph num="(d)"> <text>Is fully informed of the outcomes associated with being placed on the Commission’s Voluntary Exclusion List; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Decide whether to grant or deny the individual’s application for placement on the Commission’s Voluntary Exclusion List.</text> </paragraph> </paragraph> <paragraph num="I."> <text>After determining whether to grant or deny an application, Agency staff shall either:</text> <paragraph num="(1)"> <text>Place the individual on the Commission’s Voluntary Exclusion List; or</text> </paragraph> <paragraph num="(2)"> <text>Not place the individual on the Commission's Voluntary Exclusion List.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Agency staff shall notify the individual:</text> <paragraph num="(1)"> <text>For placement on the Commission’s Voluntary Exclusion List, by U.S. Mail; or</text> </paragraph> <paragraph num="(2)"> <text>For denial of an application, by U.S. mail or other agreed upon written communication.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Notice to Individual Placed on the Commissions Voluntary Exclusion List. The Agency’s notice to an individual of placement on the Commissions Voluntary Exclusion List for video lottery facilities, shall include:</text> <paragraph num="(1)"> <text>A statement from each video lottery facility informing the individual not to enter the video lottery facility;</text> </paragraph> <paragraph num="(2)"> <text>Notice that, if the individual enters a video lottery facility, the individual may be subject to criminal charges;</text> </paragraph> <paragraph num="(3)"> <text>Notice that the individual may be excluded from gaming activity offered by an affiliated entity in Maryland or another jurisdiction; and</text> </paragraph> <paragraph num="(4)"> <text>Notice that, if the individual enters a video lottery facility that offers sports wagering, the individual may be subject to criminal charges.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Direct Exclusion by Operator."> <paragraph num="A."> <text>Registered Fantasy Competition Operator.</text> <paragraph num="(1)"> <text>A registered fantasy competition operator may, on request of an individual, directly exclude the individual from participating in a fantasy competition through its platform.</text> </paragraph> <paragraph num="(2)"> <text>A request for direct exclusion from a fantasy competition operator’s platform:</text> <paragraph num="(a)"> <text>Is not an application for placement on the Commissions Voluntary Exclusion List under this chapter;</text> </paragraph> <paragraph num="(b)"> <text>Will not result in placement on the Commissions Voluntary Exclusion List;</text> </paragraph> <paragraph num="(c)"> <text>Is not a record that is maintained by the Commission; and</text> </paragraph> <paragraph num="(d)"> <text>Does not prevent the person from using another fantasy competition platform in Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Mobile Sports Wagering Licensee.</text> <paragraph num="(1)"> <text>An individual may request direct exclusion from a mobile sports wagering platform.</text> </paragraph> <paragraph num="(2)"> <text>A request for direct exclusion from a mobile sports wagering platform:</text> <paragraph num="(a)"> <text>Is not an application for placement on the Commissions Voluntary Exclusion List;</text> </paragraph> <paragraph num="(b)"> <text>Will not result in inclusion on the Commissions Voluntary Exclusion List;</text> </paragraph> <paragraph num="(c)"> <text>Is not a record that is maintained by the Commission; and</text> </paragraph> <paragraph num="(d)"> <text>Does not prevent the individual from using another mobile sports wagering platform in Maryland.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Voluntary Surrender."> <paragraph num="A."> <text>In this regulation, the following term has the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Term Defined. Unredeemed item:</text> <paragraph num="(1)"> <text>Means a token, voucher, check, ticket, chip, coupon, points, or similar item that has monetary value, and that a player has won, obtained, or otherwise received by playing or participating in a gaming activity.</text> </paragraph> <paragraph num="(2)"> <text>Does not include cash.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An individual who applies to be placed on the Commissions Voluntary Exclusion List contractually agrees to:</text> <paragraph num="(1)"> <text>Redeem or liquidate an unredeemed item with monetary value that the individual has:</text> <paragraph num="(a)"> <text>In their possession since being placed on the Commissions Voluntary Exclusion List; or</text> </paragraph> <paragraph num="(b)"> <text>Received from a fantasy competition, if the individual entered the fantasy competition after placement on the Commissions Voluntary Exclusion List; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Designate that the proceeds of the item be redeemed and distributed to the Problem Gambling Fund established under State Government Article, §9-1A-33(b), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="The Commission's Voluntary Exclusion List."> <text>The Commission shall:</text> <paragraph num="A."> <text>Establish and maintain a list of individuals:</text> <paragraph num="(1)"> <text>From whom it has received a completed application requesting to be excluded as provided in Regulation .01B of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Whose request for placement on the Commissions Voluntary Exclusion List has been accepted under Regulation .02 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Provide the Commission’s Voluntary Exclusion List for video lottery facilities to all video lottery facilities with periodic updates;</text> </paragraph> <paragraph num="C."> <text>Enter the Commission’s Voluntary Exclusion List for lottery play into the Lottery Central System to ensure that an excluded individual’s prizes over $600 on a ticket will be surrendered under Regulation .04 of this chapter;</text> </paragraph> <paragraph num="D."> <text>Provide the Commission’s Voluntary Exclusion List for individuals who have self-excluded from instant bingo to an instant bingo facility with more than 10 instant bingo machines, with periodic updates;</text> </paragraph> <paragraph num="E."> <text>Provide the Commission’s Voluntary Exclusion List for individuals who have self-excluded from participating in fantasy competitions to all registered fantasy competition operators, with periodic updates; and</text> </paragraph> <paragraph num="F."> <text>Provide the Commission’s Voluntary Exclusion List for individuals who have self-excluded from participating in sports wagering to sports wagering facility licensees and mobile sports wagering licensees, with periodic updates, to assist them in identifying excluded individuals.</text> </paragraph> <paragraph num="G."> <text>Provide anonymized information from the Commission’s Voluntary Exclusion List to the Department of Health in accordance with Health General Article, §§5-1001—5-1009, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Removal from the Commissions Voluntary Exclusion List."> <paragraph num="A."> <text>After an individual has been on the Commissions Voluntary Exclusion List for at least 2 years, the individual may request that the Commission remove the individual from the list.</text> </paragraph> <paragraph num="B."> <text>An individual shall submit their request under §A of this regulation in writing to the Commission accompanied by documentation that the individual has:</text> <paragraph num="(1)"> <text>Completed:</text> <paragraph num="(a)"> <text>A problem gambling treatment or prevention program approved by the Commission; or</text> </paragraph> <paragraph num="(b)"> <text>A healthy decision-making program that is sponsored or approved by the Commission, with a licensed professional counselor or other person approved by the Commission;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Executed an authorization and release to be removed from the Commission’s Voluntary Exclusion List; and</text> </paragraph> <paragraph num="(3)"> <text>Complied with any requirements deemed necessary by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission is not required to hold a hearing in order to review the request for removal.</text> </paragraph> <paragraph num="D."> <text>If the Commission:</text> <paragraph num="(1)"> <text>Grants the request, it shall:</text> <paragraph num="(a)"> <text>Deliver to the individual by email or regular mail a notice of removal from the Commissions Voluntary Exclusion List; and</text> </paragraph> <paragraph num="(b)"> <text>Notify the State’s video lottery facilities, instant bingo facilities with more than 10 instant bingo machines, registered fantasy competition operators, sports wagering facility licensees, and mobile sports wagering licensees, or update the Lottery Central System with the individual’s removal from the Commission’s Voluntary Exclusion List; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Denies the request, it shall deliver to the individual by email or regular mail a notice that the:</text> <paragraph num="(a)"> <text>Request was denied; and</text> </paragraph> <paragraph num="(b)"> <text>Individual shall remain on the Commissions Voluntary Exclusion List.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Access to the Commission’s Voluntary Exclusion List."> <paragraph num="A."> <text>All records pertaining to an individual’s placement on the Commission’s Voluntary Exclusion List are sociological information under General Provisions Article, §4-330, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Access to records pertaining to an individual’s placement on the Commission’s Voluntary Exclusion List shall be limited to disclosures authorized under General Provisions Article, Title 4, Annotated Code of Maryland, COMAR 36.03.06, and Regulation .05 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Responsible Gaming Program."> <paragraph num="A."> <text>The Commission may establish a responsible gaming program.</text> </paragraph> <paragraph num="B."> <text>A responsible gaming program established by the Commission under §A of this regulation shall be designed to:</text> <paragraph num="(1)"> <text>Reduce or mitigate the effects of problem gambling in the State; and</text> </paragraph> <paragraph num="(2)"> <text>Maximize the access of problem gambling resources by an individual who has a gambling problem.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §§12-301.1 and 12-308; State Government Article, §§9-110, 9-1A-24(e), 9-1D-05, 9-1E-04, and 9-1E-11; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 29, 2013 (40:8 Md. R. 725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C amended effective February 3, 2014 (41:2 Md. R. 93); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective February 3, 2014 (41:2 Md. R. 93); February 1, 2016 (43:2 Md. R. 129)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B, D amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B amended effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07B amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); revised permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B, D amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> </annotations> </chapter> </subtitle> <subtitle num="02" heading="Lottery Provisions"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In addition to the terms defined in State Government Article, §9-101, Annotated Code of Maryland, and in COMAR 36.01.01.01, which have the same meanings in this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Activate” means:</text> <paragraph num="(a)"> <text>To make a book of instant tickets ready for sale in the Lottery Central System; or</text> </paragraph> <paragraph num="(b)"> <text>To make a ticket ready for sale.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Announced end of game” means the date set by the Agency after which retailers may not activate instant tickets for that game.</text> </paragraph> <paragraph num="(3)"> <text>Bonus Drawing.</text> <paragraph num="(a)"> <text>“Bonus drawing” means a game the Agency designates as a bonus drawing that may have a claiming period other than 182 days after the drawing in which the prize is won.</text> </paragraph> <paragraph num="(b)"> <text>“Bonus drawing” does not include a daily or weekly lottery drawing.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Bonus Game.</text> <paragraph num="(a)"> <text>“Bonus game” means a game the Agency designates as a bonus game that may have a claiming period other than 182 days after the drawing in which the prize is won.</text> </paragraph> <paragraph num="(b)"> <text>“Bonus game” does not include a:</text> <paragraph num="(i)"> <text>Daily or weekly lottery game; or</text> </paragraph> <paragraph num="(ii)"> <text>Specific play features on a ticket.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Claim form” means a paper or computer-generated document that identifies a prize claimant, prize amount, game and ticket characteristics.</text> </paragraph> <paragraph num="(6)"> <text>“Coupon” means a paper or computer-generated code that a player may apply to purchase a ticket.</text> </paragraph> <paragraph num="(7)"> <text>“Daily game” means a draw game for which the Agency offers a drawing at least once every day.</text> </paragraph> <paragraph num="(8)"> <text>“Designated cutoff time” means the time after which a ticket may no longer be purchased for the next drawing of a specified lottery game.</text> </paragraph> <paragraph num="(9)"> <text>Draw Game.</text> <paragraph num="(a)"> <text>“Draw game” means a lottery game for which a winning result is determined by a drawing for which a ticket:</text> <paragraph num="(i)"> <text>Is sold and redeemed through a subscription or through a terminal at retailer locations; and</text> </paragraph> <paragraph num="(ii)"> <text>May be generated by a terminal and is a record of a transaction for a draw game.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Draw game” includes:</text> <paragraph num="(i)"> <text>A jackpot game including a multi-jurisdictional jackpot game;</text> </paragraph> <paragraph num="(ii)"> <text>A nonjackpot game including a multi-jurisdictional jackpot game;</text> </paragraph> <paragraph num="(iii)"> <text>A monitor game; and</text> </paragraph> <paragraph num="(iv)"> <text>Any other Agency-authorized lottery game designated as a draw game.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Draw ticket” means a ticket purchased from a terminal or through a subscription for a draw game.</text> </paragraph> <paragraph num="(11)"> <text>“Drawing” means a random selection event used for determining winning numbers game data of certain lottery games.</text> </paragraph> <paragraph num="(12)"> <text>“Drawing date” means the day, days of the week, or times of day on which the winning game data a lottery game are selected.</text> </paragraph> <paragraph num="(13)"> <text>“Entry” means a qualifying purchase or action by which a player may participate in a promotion or special activity.</text> </paragraph> <paragraph num="(14)"> <text>“ePlayslip” means an on-screen display or two-dimensional code, that:</text> <paragraph num="(a)"> <text>Contains player-selected or randomly generated game data; and</text> </paragraph> <paragraph num="(b)"> <text>Is electronically generated by a website or mobile application authorized by the Agency.</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>Fast Play Game.</text> <paragraph num="(a)"> <text>“Fast Play game” means a game issued by the Lottery Central System where predetermined game results are obtained from a finite pool of randomly generated results for that game and are available through the terminal.</text> </paragraph> <paragraph num="(b)"> <text>“Fast Play game” does not include a draw game.</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>“Game data” means any item or symbol used to identify:</text> <paragraph num="(a)"> <text>A winner of a lottery game, including:</text> <paragraph num="(i)"> <text>Numerals;</text> </paragraph> <paragraph num="(ii)"> <text>Letters;</text> </paragraph> <paragraph num="(iii)"> <text>Symbols, and</text> </paragraph> <paragraph num="(iv)"> <text>Icons including branded logos;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The cost of a ticket; and</text> </paragraph> <paragraph num="(c)"> <text>Number of draws and which draws on a ticket.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“In-lane ticket” means a ticket that:</text> <paragraph num="(a)"> <text>Is purchased by a player;</text> </paragraph> <paragraph num="(b)"> <text>May only be purchased at a retailer that is a commercial establishment; and</text> </paragraph> <paragraph num="(c)"> <text>Is activated for play or produced when it is processed through a third-party point of sale terminal or cash register.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>Instant Game.</text> <paragraph num="(a)"> <text>“Instant game” means a lottery game for which a ticket has a covered area that the player exposes in accordance with the game instructions, and includes:</text> <paragraph num="(i)"> <text>Scratch-off tickets; and</text> </paragraph> <paragraph num="(ii)"> <text>Tickets using other methods of revealing a hidden area with pre-determined results.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Instant game” does not include an in-lane ticket for a draw game.</text> </paragraph> </paragraph> <paragraph num="(19)"> <text>“Instant ticket” means a ticket issued in an instant game.</text> </paragraph> <paragraph num="(20)"> <text>“Instant ticket pack” or “instant ticket book” means group of tickets in sequential order bundled together.</text> </paragraph> <paragraph num="(21)"> <text>“Jackpot game” means a lottery game for which the top prize amount varies:</text> <paragraph num="(a)"> <text>Based on sales; and</text> </paragraph> <paragraph num="(b)"> <text>If the top prize was won in the preceding drawing.</text> </paragraph> </paragraph> <paragraph num="(22)"> <text>“Lottery Central System” means an integrated computer service and equipment that the Agency authorizes and procures for the purposes of:</text> <paragraph num="(a)"> <text>Producing lottery tickets at retailer locations;</text> </paragraph> <paragraph num="(b)"> <text>Facilitating lottery ticket transactions;</text> </paragraph> <paragraph num="(c)"> <text>Providing tools and the means by which retailers:</text> <paragraph num="(i)"> <text>Determine sales;</text> </paragraph> <paragraph num="(ii)"> <text>Cash tickets;</text> </paragraph> <paragraph num="(iii)"> <text>Confirm receipt and activate an instant ticket book;</text> </paragraph> <paragraph num="(iv)"> <text>Display of animations of winning numbers;</text> </paragraph> <paragraph num="(v)"> <text>Process a ticket, ePlayslip, or playslip;</text> </paragraph> <paragraph num="(vi)"> <text>Print special reports and tickets;</text> </paragraph> <paragraph num="(vii)"> <text>Order instant tickets;</text> </paragraph> <paragraph num="(viii)"> <text>Order supplies; and</text> </paragraph> <paragraph num="(ix)"> <text>Coordinate the distribution of tickets;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Providing random number generating equipment to conduct and offer monitor games, Cash Pop and Fast Play games;</text> </paragraph> <paragraph num="(e)"> <text>Communicating with lottery retailers; and</text> </paragraph> <paragraph num="(f)"> <text>Performing any other function, the Agency identifies as necessary to the operation of the State lottery and accounting for its proceeds.</text> </paragraph> </paragraph> <paragraph num="(23)"> <text>“Lottery Central System contractor” means the person under contract with the Agency to provide all the goods and services required under the contract for the Lottery Central System.</text> </paragraph> <paragraph num="(24)"> <text>“Monitor” means a television screen or similar type of screen used to display monitor game results and other Agency communications.</text> </paragraph> <paragraph num="(25)"> <text>“Monitor game” means a draw game for which:</text> <paragraph num="(a)"> <text>Tickets are generated by a terminal;</text> </paragraph> <paragraph num="(b)"> <text>The Lottery Central System generates the winning result; and</text> </paragraph> <paragraph num="(c)"> <text>Drawing results may be graphically displayed on a monitor.</text> </paragraph> </paragraph> <paragraph num="(26)"> <text>“Multi-jurisdictional game” means a lottery game offered by the Agency and:</text> <paragraph num="(a)"> <text>Any other political entity outside Maryland or outside the United States;</text> </paragraph> <paragraph num="(b)"> <text>Any private licensee of a state or a foreign nation; or</text> </paragraph> <paragraph num="(c)"> <text>Both §B26(a) and (b) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(27)"> <text>“Nonjackpot game” means a lottery game where the top prize remains static.</text> </paragraph> <paragraph num="(28)"> <text>“Odds” means the likelihood of an outcome to occur or not occur.</text> </paragraph> <paragraph num="(29)"> <text>“Pari-mutuel” means dividing the prize money available for winners of a certain prize level in a lottery game equally among all plays winning the prize in a particular drawing.</text> </paragraph> <paragraph num="(30)"> <text>Player-Activated Terminal or PAT.</text> <paragraph num="(a)"> <text>“Player-activated terminal” or “PAT” means a machine through which a player may purchase a ticket or claim a prize under an applicable tax reporting or taxable prize threshold without intervention by a retailer.</text> </paragraph> <paragraph num="(b)"> <text>Player-activated terminal or PAT does not mean a machine that dispenses cash.</text> </paragraph> </paragraph> <paragraph num="(31)"> <text>“Playslip” means a document issued by the Agency and used by a player to select the player’s game data.</text> </paragraph> <paragraph num="(32)"> <text>“Probability” means the long-run ratio of the number of winning outcomes to the number of all outcomes.</text> </paragraph> <paragraph num="(33)"> <text>“Progressive jackpot” means a jackpot offered in a lottery game that may increase in value based on sales of that game.</text> </paragraph> <paragraph num="(34)"> <text>Promotion.</text> <paragraph num="(a)"> <text>“Promotion” means:</text> <paragraph num="(i)"> <text>An activity or game offered by the Agency to increase awareness of the Agency and its products and services;</text> </paragraph> <paragraph num="(ii)"> <text>A contest that uses a second-chance drawing to determine a winner; or</text> </paragraph> <paragraph num="(iii)"> <text>A cooperative marketing project under State Finance and Procurement Article, §11-203, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Promotion” may include a lottery game if additional consideration is required for a player to participate.</text> </paragraph> </paragraph> <paragraph num="(35)"> <text>“Retailer” means a person licensed by the Agency to sell lottery tickets.</text> </paragraph> <paragraph num="(36)"> <text>Special Bonus.</text> <paragraph num="(a)"> <text>“Special bonus” means an extra payment to a retailer or its employees that the Agency authorizes;</text> </paragraph> <paragraph num="(b)"> <text>“Special bonus” may not exceed one-half of 1% of the gross receipts from ticket sales for the year for which the bonuses are awarded;</text> </paragraph> <paragraph num="(c)"> <text>“Special bonus” does not include:</text> <paragraph num="(i)"> <text>A bonus drawing; or</text> </paragraph> <paragraph num="(ii)"> <text>Game play features on a ticket.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(37)"> <text>“Special license” means a retailer license issued by the Director for a conditional or limited purpose as determined by the Director.</text> </paragraph> <paragraph num="(38)"> <text>“Subscription” means a method of playing a lottery game by which a player completes an application to play a specific number of lottery games using the same game data for a period of consecutive drawings.</text> </paragraph> <paragraph num="(39)"> <text>Terminal.</text> <paragraph num="(a)"> <text>“Terminal” means a computerized unit or software program that operates through the Lottery Central System and is specifically designed for:</text> <paragraph num="(i)"> <text>Issuing, processing or printing a ticket;</text> </paragraph> <paragraph num="(ii)"> <text>Processing an ePlayslip;</text> </paragraph> <paragraph num="(iii)"> <text>Processing a playslip.</text> </paragraph> <paragraph num="(iv)"> <text>Printing a report;</text> </paragraph> <paragraph num="(v)"> <text>Confirming and activating a retailer’s receipt of an instant ticket book;</text> </paragraph> <paragraph num="(vi)"> <text>Accepting payment for a ticket;</text> </paragraph> <paragraph num="(vii)"> <text>Processing the validation and redemption of a ticket;</text> </paragraph> <paragraph num="(viii)"> <text>Carrying out functions available to the retailer; and</text> </paragraph> <paragraph num="(ix)"> <text>Any other process the Agency identifies as necessary for the State lottery and within the scope of the Lottery Central System contract.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Terminal” includes:</text> <paragraph num="(i)"> <text>A player-activated terminal or PAT; and</text> </paragraph> <paragraph num="(ii)"> <text>A retailer-activated terminal; and</text> </paragraph> <paragraph num="(iii)"> <text>Associated lottery equipment.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(40)"> <text>Unusual Claim.</text> <paragraph num="(a)"> <text>“Unusual claim” means a claim of a prize, or multiple claims for prizes, over $600 that is abnormal in amount, frequency, pattern, or type.</text> </paragraph> <paragraph num="(b)"> <text>“Unusual claim” includes a claim made by a claimant under circumstances indicating that a law or regulation may be violated and that the Director has a reasonable belief to be, based on the totality of the circumstances.</text> </paragraph> </paragraph> <paragraph num="(41)"> <text>“Validate” or “validation” means the process of verifying through the Lottery Central System, whether a ticket is a valid winning ticket.</text> </paragraph> <paragraph num="(42)"> <text>“Valid winning ticket” means a lottery ticket that has been validated.</text> </paragraph> <paragraph num="(43)"> <text>Winner.</text> <paragraph num="(a)"> <text>“Winner” means a person that holds a winning ticket.</text> </paragraph> <paragraph num="(b)"> <text>“Winner” includes the claimant of a prize.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Sponsorship Request."> <paragraph num="A."> <text>Scope. This regulation sets out procedures under which a person may submit a sponsorship request to the Agency pursuant to State Government Article, § 9-111(d)(1), Annotated Code of Maryland to promote the Maryland State Lottery.</text> </paragraph> <paragraph num="B."> <text>A person holding an event in Maryland may submit a request to the Agency to sponsor the event.</text> </paragraph> <paragraph num="C."> <text>Form and Content of Request.</text> <paragraph num="(1)"> <text>A requestor for Agency sponsorship shall submit a request in writing to the Assistant Director of Communications.</text> </paragraph> <paragraph num="(2)"> <text>The sponsorship request shall describe the event and include:</text> <paragraph num="(a)"> <text>The date, time, and location;</text> </paragraph> <paragraph num="(b)"> <text>A description;</text> </paragraph> <paragraph num="(c)"> <text>The expected number of people in attendance;</text> </paragraph> <paragraph num="(d)"> <text>The number of years it has taken place in Maryland;</text> </paragraph> <paragraph num="(e)"> <text>The types of sponsorship opportunities that are available;</text> </paragraph> <paragraph num="(f)"> <text>The cost associated with each type of sponsorship opportunity; and</text> </paragraph> <paragraph num="(g)"> <text>An explanation with examples as to why the event may be a good fit for the Agency.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>The decision to sponsor an event is within the sole discretion of the Agency and is not subject to review.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-103, 9-104, 9-109—9-111, and 9-122, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2013 (40:9 Md. R. 790)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective December 2, 2019 (46:24 Md. R. 1104); May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective January 7, 2016 (42:26 Md. R. 1597); January 14, 2019 (46:1 Md. R. 13); September 21, 2020 (47:19 Md. R. 850)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 adopted effective May 26, 2025 (52:10 Md. R. 439)</annotation> </annotations> </chapter> <chapter num="02" heading="Retailer Licensing"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Applicant” means a person applying for a retailer license and includes the individual completing the application.</text> </paragraph> <paragraph num="(2)"> <text>“Probationary license” means a retailer license issued by the Director to a new retailer that is valid for a 12-month period, beginning with the first week of sales.</text> </paragraph> <paragraph num="(3)"> <text>“Regular license” means a retailer license issued by the Director to a retailer who has satisfactorily completed the requirements of a probationary license.</text> </paragraph> <paragraph num="(4)"> <text>“Special license” means a license issued within the Director’s authority for special purposes.</text> </paragraph> <paragraph num="(5)"> <text>“Terminate” or “revoke” means, with regard to a retailer license or special license, or removal of the right to sell lottery tickets.</text> </paragraph> <paragraph num="(6)"> <text>“Total sales” means the value of lottery products sold or settled lottery by a retailer, less the value of canceled or returned lottery tickets.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="License Required."> <paragraph num="A."> <text>A person who sells a lottery ticket shall be licensed by the Agency as a retailer.</text> </paragraph> <paragraph num="B."> <text>A person to be licensed as a retailer shall be issued a probationary license before being eligible to receive a regular license.</text> </paragraph> <paragraph num="C."> <text>No individual younger than 21 years old may be licensed as a lottery retailer.</text> </paragraph> <paragraph num="D."> <text>A governmental entity that seeks a license as a lottery retailer shall demonstrate to the satisfaction of the Director the permission of any other person, board, commission, agent, or instrumentality of the State or its subdivisions that may have controlling authority over the applicant. A. A person who sells a ticket shall be licensed by the Agency as a retailer.</text> </paragraph> <paragraph num="B."> <text>A person licensed as a retailer shall be issued a probationary license before being eligible to receive a regular license.</text> </paragraph> <paragraph num="C."> <text>No individual younger than 21 years old may be licensed as a retailer.</text> </paragraph> <paragraph num="D."> <text>A governmental entity that seeks a license as a retailer shall demonstrate to the satisfaction of the Director the permission of any other person, board, commission, agent, or instrumentality of the State or its subdivisions that may have controlling authority over the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="License Restrictions."> <paragraph num="A."> <text>A retailer license is specific to an individual and may not be transferred or sold.</text> </paragraph> <paragraph num="B."> <text>A retailer license may not be issued to a person to engage in business primarily as a lottery retailer.</text> </paragraph> <paragraph num="C."> <text>A retailer license does not permit a retailer to:</text> <paragraph num="(1)"> <text>Have a system or program that allows a person to purchase a ticket through a device that connects to the Internet;</text> </paragraph> <paragraph num="(2)"> <text>Sell a ticket over the phone or other manner of electronic communication;</text> </paragraph> <paragraph num="(3)"> <text>Sell a ticket over the Internet; or</text> </paragraph> <paragraph num="(4)"> <text>Sell a ticket at a price higher than the price established by the Director; or</text> </paragraph> <paragraph num="(5)"> <text>Sell a ticket at a location other than the location identified in the license.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Application Process."> <paragraph num="A."> <text>To obtain a retailer license, a person shall electronically submit to the Agency:</text> <paragraph num="(1)"> <text>A completed application on a form required by the Director; and</text> </paragraph> <paragraph num="(2)"> <text>Any other information and documentation required by the Director.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Director shall consider:</text> <paragraph num="(1)"> <text>The financial responsibility and security of the applicant and the applicant's business or activity;</text> </paragraph> <paragraph num="(2)"> <text>The ownership interests of the applicant;</text> </paragraph> <paragraph num="(3)"> <text>The honesty and integrity of the applicant;</text> </paragraph> <paragraph num="(4)"> <text>The accessibility of the applicant's place of business or activity to the public;</text> </paragraph> <paragraph num="(5)"> <text>The suitability of the applicant's business for the sale of lottery tickets;</text> </paragraph> <paragraph num="(6)"> <text>The applicant’s compliance with State and local business and taxation requirements;</text> </paragraph> <paragraph num="(7)"> <text>The sufficiency of existing licenses to serve the public convenience;</text> </paragraph> <paragraph num="(8)"> <text>The volume of the applicants expected total sales;</text> </paragraph> <paragraph num="(9)"> <text>The accuracy of the information supplied in the application for a lottery retailer’s license;</text> </paragraph> <paragraph num="(10)"> <text>The status or enforcement actions taken on any licenses related to the applicant’s business; and</text> </paragraph> <paragraph num="(11)"> <text>Any other relevant information.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Security."> <paragraph num="A."> <text>The Director may require an applicant or retailer to obtain security of at least $5,000.</text> </paragraph> <paragraph num="B."> <text>The security may be:</text> <paragraph num="(1)"> <text>A surety bond;</text> </paragraph> <paragraph num="(2)"> <text>An irrevocable letter of credit;</text> </paragraph> <paragraph num="(3)"> <text>A cash security deposit;</text> </paragraph> <paragraph num="(4)"> <text>Lottery escrow deposit; or</text> </paragraph> <paragraph num="(5)"> <text>Any other form of security approved by the Director.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Agency may require security:</text> <paragraph num="(1)"> <text>To protect the financial contributions to the State;</text> </paragraph> <paragraph num="(2)"> <text>If a retailer fails to make a payment to the Agency or has insufficient funds for a lottery transfer;</text> </paragraph> <paragraph num="(3)"> <text>To ensure the integrity of an applicant or the owner of an applicant and is based on a financial evaluation; and</text> </paragraph> <paragraph num="(4)"> <text>To pay for damage, loss or misuse of supplies, equipment, or tickets.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Agency may use the security:</text> <paragraph num="(1)"> <text>To offset amounts due from the retailer for the proceeds from the sale of tickets; or</text> </paragraph> <paragraph num="(2)"> <text>To pay for the cost of damaged, stolen, lost or misused supplies, equipment, or tickets.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The security shall remain in place until such time that the Director determines it may be removed.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Probationary License."> <paragraph num="A."> <text>New Retailer.</text> <paragraph num="(1)"> <text>A license issued by the Director to a new retailer shall be a probationary license.</text> </paragraph> <paragraph num="(2)"> <text>The Director may terminate a probationary license without a hearing upon the determination of the Director that the retailer has violated a provision in this subtitle.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Termination.</text> <paragraph num="(1)"> <text>Before terminating a probationary license, the Director shall send written notice to the retailer of the Agency’s intent to terminate the probationary license.</text> </paragraph> <paragraph num="(2)"> <text>The notice shall include:</text> <paragraph num="(a)"> <text>The reason for the termination of the probationary license; and</text> </paragraph> <paragraph num="(b)"> <text>A statement that the retailer, upon written request, may appear before the Director or the Directors designee to present the retailers views.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A written request to appear before the Director or the Director’s designee shall be submitted within 10 days of the date of the notice of termination.</text> </paragraph> <paragraph num="(4)"> <text>Failure to timely submit a written request to appear before the Director or the Director’s designee shall result in termination of the probationary license</text> </paragraph> <paragraph num="(5)"> <text>The decision of the Director to terminate a probationary license is final and not appealable.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Special License."> <paragraph num="A."> <text>The Director may issue a special license, subject to those conditions or limitations as the Director considers appropriate.</text> </paragraph> <paragraph num="B."> <text>The conditions or limitations for the special license may include:</text> <paragraph num="(1)"> <text>The type of lottery operation;</text> </paragraph> <paragraph num="(2)"> <text>The length of the license period;</text> </paragraph> <paragraph num="(3)"> <text>The hours or days when tickets may be sold;</text> </paragraph> <paragraph num="(4)"> <text>The location where tickets may be sold;</text> </paragraph> <paragraph num="(5)"> <text>Those persons who are allowed to sell tickets;</text> </paragraph> <paragraph num="(6)"> <text>Those sporting, charitable, social, or other special events where tickets may be sold; or</text> </paragraph> <paragraph num="(7)"> <text>Any other condition or limitation the Director considers appropriate.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Director may deny or terminate a special license for any reason.</text> </paragraph> <paragraph num="D."> <text>The decision of the Director to deny or terminate a special license is final and not appealable.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Denial of a License."> <paragraph num="A."> <text>If the Director recommends the denial of a license, the Director shall promptly provide the applicant with written notice of the:</text> <paragraph num="(1)"> <text>Basis for the recommended denial; and</text> </paragraph> <paragraph num="(2)"> <text>Applicant’s right to request a reconsideration meeting with the Director or the Director’s designee.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An applicant may submit to the Director a written request for a reconsideration meeting within 15 days of the date of the notice described in §A of this regulation.</text> </paragraph> <paragraph num="C."> <text>If an applicant fails to timely submit a written request for a reconsideration meeting, the Commission may adopt as final the recommendation of the Director.</text> </paragraph> <paragraph num="D."> <text>During a reconsideration meeting, an applicant may:</text> <paragraph num="(1)"> <text>Be represented by counsel; and</text> </paragraph> <paragraph num="(2)"> <text>Present evidence as to why the license should be granted;</text> </paragraph> </paragraph> <paragraph num="E."> <text>If after the reconsideration meeting the applicant is dissatisfied with the recommendation of the Director or the Director’s designee, the applicant may submit to the Commission, in writing:</text> <paragraph num="(1)"> <text>A request for a hearing before the Commission to appeal the recommended denial of the license; and</text> </paragraph> <paragraph num="(2)"> <text>The applicant’s legal and factual basis for disagreeing with the recommended denial of the license.</text> </paragraph> </paragraph> <paragraph num="F."> <text>An applicant must submit a hearing request to the Commission within 15 days of the date of the recommendation of the Director or the Director’s designee after the reconsideration meeting.</text> </paragraph> <paragraph num="G."> <text>If an applicant fails to submit a hearing request that complies with §§E and F of this regulation, the Commission may adopt as final the recommendation of the Director or the Director’s designee to deny the license.</text> </paragraph> <paragraph num="H."> <text>A timely written hearing request shall be the subject of a Commission hearing conducted pursuant to COMAR 36.01.02.06.</text> </paragraph> <paragraph num="I."> <text>Judicial Review. The Commission’s final action on a license denial is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> <paragraph num="J."> <text>Limitation on Reapplication. An applicant may not submit an application or be included in the application of another person for 1 year after the later of:</text> <paragraph num="(1)"> <text>The final action on the denial of a license; or</text> </paragraph> <paragraph num="(2)"> <text>If judicial review of the final action on a license denial is taken, the date an adverse decision is entered against the retailer by the highest court to which an appeal is taken.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Corrective Action."> <paragraph num="A."> <text>Deficiency. If the Director determines that a retailer no longer meets a license requirement of this chapter, or that there is cause for imposing sanctions under Regulation .10 of this chapter, the Director shall:</text> <paragraph num="(1)"> <text>Assess the seriousness of the deficiency;</text> </paragraph> <paragraph num="(2)"> <text>Determine whether it is necessary to emergently suspend the retailer’s license;</text> </paragraph> <paragraph num="(3)"> <text>Determine whether to allow a retailer to submit a corrective action plan.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the Agency permits a retailer to submit a corrective action plan:</text> <paragraph num="(1)"> <text>Evaluate the corrective action plan;</text> </paragraph> <paragraph num="(2)"> <text>If acceptable to the Agency, approve the corrective action plan;</text> </paragraph> <paragraph num="(3)"> <text>Determine appropriate timelines for the completion of corrective action;</text> </paragraph> <paragraph num="(4)"> <text>Conduct periodic monitoring of a retailer to assess the retailer’s progress toward remedying the deficiencies; and</text> </paragraph> <paragraph num="(5)"> <text>Recommend that the Commission impose a sanction under Regulation .10 of this chapter if a deficiency is not remedied.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Agency may determine whether to permit a retailer to submit a corrective action plan.</text> </paragraph> <paragraph num="D."> <text>Corrective Action Plan.</text> <paragraph num="(1)"> <text>Within 10 days of receipt of a deficiency notice under §F of this regulation, the retailer shall submit a corrective action plan to the Director for the Director’s approval.</text> </paragraph> <paragraph num="(2)"> <text>The Director shall review the corrective action plan and inform the retailer whether the corrective action plan is acceptable.</text> </paragraph> <paragraph num="(3)"> <text>If the retailer fails to submit an acceptable corrective action plan within the time described under §D(1) of this regulation, the Director may:</text> <paragraph num="(a)"> <text>Provide the retailer with additional time within which to submit a revised corrective action plan; or</text> </paragraph> <paragraph num="(b)"> <text>Impose a sanction on the retailer under Regulation .10 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the Director provided a retailer notice under §F of this regulation and received no timely written response, the Commission may adopt as final the Director’s decision to impose a sanction under Regulation .10 of this chapter.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Corrective Action Outcomes.</text> <paragraph num="(1)"> <text>If at any time during the corrective action period the Director determines that the retailer has failed to fulfill a requirement of the corrective action plan or has made insufficient progress toward remedying a deficiency, the Director may:</text> <paragraph num="(a)"> <text>For good cause, extend the time for completion of a corrective action plan; or</text> </paragraph> <paragraph num="(b)"> <text>Emergently suspend the retailer’s license.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If at the end of the corrective action period the retailer has failed to adequately remedy a deficiency, the Director may impose a sanction under Regulation .10 of this chapter.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Deficiency Notice. Upon determining that corrective action is required to remedy a deficiency, the Director shall give written notice to a retailer that includes:</text> <paragraph num="(1)"> <text>A description of the violation;</text> </paragraph> <paragraph num="(2)"> <text>A description of the possible sanctions; and</text> </paragraph> <paragraph num="(3)"> <text>The requirement for the retailer to submit a corrective action plan to the Director within a time frame established by the Director.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Sanctions and Agency Actions on a License."> <paragraph num="A."> <text>The Director may impose sanctions on a retailer or take action on a license for:</text> <paragraph num="(1)"> <text>Violating or failing to fulfill the retailer’s responsibilities or a condition of a license under this subtitle;</text> </paragraph> <paragraph num="(2)"> <text>Violating:</text> <paragraph num="(a)"> <text>A provision of the lottery law or other applicable law;</text> </paragraph> <paragraph num="(b)"> <text>A regulation adopted under the lottery law; or</text> </paragraph> <paragraph num="(c)"> <text>An order or directive of the Agency;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Providing the Agency with false or misleading information;</text> </paragraph> <paragraph num="(4)"> <text>Failing to cooperate with the Agency;</text> </paragraph> <paragraph num="(5)"> <text>Failing to remit, or failing to make timely remittance of, funds owed to the Agency;</text> </paragraph> <paragraph num="(6)"> <text>Failing to meet the retailers sales requirements as set by the Agency;</text> </paragraph> <paragraph num="(7)"> <text>Failing to display lottery point of sale material and equipment as directed by the Agency;</text> </paragraph> <paragraph num="(8)"> <text>Failing to make tickets available for sale as directed by the Agency;</text> </paragraph> <paragraph num="(9)"> <text>Taking tickets, vouchers, or coupons intended for players;</text> </paragraph> <paragraph num="(10)"> <text>Failing to provide a player their voucher, coupon, cash or other item of value;</text> </paragraph> <paragraph num="(11)"> <text>Discounting lottery prizes;</text> </paragraph> <paragraph num="(12)"> <text>Selling lottery tickets by phone or other electronic means;</text> </paragraph> <paragraph num="(13)"> <text>Selling lottery tickets over the Internet;</text> </paragraph> <paragraph num="(14)"> <text>Selling lottery tickets at a price higher than the price established by the Director;</text> </paragraph> <paragraph num="(15)"> <text>Extending credit for the purchase of lottery tickets;</text> </paragraph> <paragraph num="(16)"> <text>Facilitating a person other than the owner of the lottery ticket under COMAR 36.02.06.02 to claim a prize;</text> </paragraph> <paragraph num="(17)"> <text>Conducting or permitting any illegal activity on the premises;</text> </paragraph> <paragraph num="(18)"> <text>Allowing an individual who is not a retailer employee to operate lottery equipment;</text> </paragraph> <paragraph num="(19)"> <text>Improperly managing customer data;</text> </paragraph> <paragraph num="(20)"> <text>Damaging or altering, or allowing another person to damage or alter, materials or equipment provided to the retailer by the Agency or a contractor of the Agency;</text> </paragraph> <paragraph num="(21)"> <text>Interfering with a lottery game;</text> </paragraph> <paragraph num="(22)"> <text>Failing to prepare, submit, or implement an adequate corrective plan under Regulation .09 of this chapter;</text> </paragraph> <paragraph num="(23)"> <text>Changing ownership of the retailer’s business without prior notice to the Agency;</text> </paragraph> <paragraph num="(24)"> <text>Closing the retailer’s operations without prior notice to the Agency;</text> </paragraph> <paragraph num="(25)"> <text>Engaging in conduct, or permitting an employee to engage in conduct, that impairs the reputation of the lottery, or would otherwise bring the State into disrepute;</text> </paragraph> <paragraph num="(26)"> <text>Being the subject of administrative or judicial charges related to the conduct of:</text> <paragraph num="(a)"> <text>Illegal gaming;</text> </paragraph> <paragraph num="(b)"> <text>Failing to pay taxes;</text> </paragraph> <paragraph num="(c)"> <text>Defrauding the government, a government program, or government services; or</text> </paragraph> <paragraph num="(d)"> <text>Any other fraudulent activity;</text> </paragraph> </paragraph> <paragraph num="(27)"> <text>Possessing an illegal gaming device;</text> </paragraph> <paragraph num="(28)"> <text>Possessing materials or equipment indicating involvement by the retailer or the retailer’s employees in the conduct of illegal gaming;</text> </paragraph> <paragraph num="(29)"> <text>Having a history of thefts or other forms of losses of Lottery tickets or revenue; or</text> </paragraph> <paragraph num="(30)"> <text>Other activities or actions deemed by the Director to require the imposition of a sanction.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Types of Sanctions and Agency Actions.</text> <paragraph num="(1)"> <text>Sanctions or Agency actions may include:</text> <paragraph num="(a)"> <text>The Agency temporarily disabling a retailer’s terminal;</text> </paragraph> <paragraph num="(b)"> <text>The Agency disabling specific game sales on a retailer’s terminal;</text> </paragraph> <paragraph num="(c)"> <text>Emergency suspension of a retailer’s license;</text> </paragraph> <paragraph num="(d)"> <text>Suspension of a retailer’s license;</text> </paragraph> <paragraph num="(e)"> <text>Termination of a retailer’s probationary or special license;</text> </paragraph> <paragraph num="(f)"> <text>Revocation of a retailer’s license; or</text> </paragraph> <paragraph num="(g)"> <text>Placing a limitation of the license of a retailer.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Limitations on a license may include:</text> <paragraph num="(a)"> <text>Ineligibility for or removal from the Expanded Cashing Authority Program under COMAR 36.02.03.08; and</text> </paragraph> <paragraph num="(b)"> <text>Placement of conditions on the retailer’s operations.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Disabling a Retailer’s Terminal.</text> <paragraph num="(1)"> <text>If a retailer fails to timely remit funds or if the required funds are not available for withdrawal, the Agency shall disable the retailer’s terminal.</text> </paragraph> <paragraph num="(2)"> <text>If the retailer pays the Agency for any outstanding amount owed, including bank charges, the Agency may re-enable the retailer’s terminal.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Suspension, Revocation, and Limitation.</text> <paragraph num="(1)"> <text>Except as set forth in §E of this regulation, the Director shall give the retailer notice of the intended suspension or revocation at least 15 days before the imposition of the intended sanction.</text> </paragraph> <paragraph num="(2)"> <text>A retailer may appeal the Directors imposition of a sanction before the date the sanction is imposed by submitting a request for a hearing before the Commission.</text> </paragraph> <paragraph num="(3)"> <text>The Commissions final action on a sanction is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Emergency Suspension.</text> <paragraph num="(1)"> <text>Notwithstanding any other requirement of this chapter, if the Director determines that immediate action is necessary to protect against an imminent, serious threat by a retailer to the security, financial stability, reputation, or integrity of the lottery, the Director may suspend the license of a retailer without prior notice.</text> </paragraph> <paragraph num="(2)"> <text>If the Director emergently suspends a retailer’s license, the Director shall provide the retailer with written notice that includes:</text> <paragraph num="(a)"> <text>A statement of the authority upon which the suspension is based;</text> </paragraph> <paragraph num="(b)"> <text>The nature of the violation;</text> </paragraph> <paragraph num="(c)"> <text>The duration of suspension;</text> </paragraph> <paragraph num="(d)"> <text>Information about the retailer’s obligation to submit to the Agency a corrective plan; and</text> </paragraph> <paragraph num="(e)"> <text>A statement of the retailers right to request a Commission hearing.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A hearing on an emergency suspension of a retailer license shall be conducted in accordance with the hearing requirements in COMAR 36.01.02.06.</text> </paragraph> <paragraph num="(4)"> <text>If after a license is emergently suspended, the retailer does not submit a timely written request for a Commission hearing, the Director may move to revoke the retailers license by giving the retailer notice under §C(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Agency Action. After the Director terminates a probationary or special license or imposes an emergency suspension or sanction on a retailer with a regular license, the Agency may:</text> <paragraph num="(1)"> <text>Disable the retailer’s terminal;</text> </paragraph> <paragraph num="(2)"> <text>Require the retailer to surrender, or direct the Lottery Central System contractor to remove, any materials or equipment that were provided to the retailer by the Agency or the Lottery Central System contractor;</text> </paragraph> <paragraph num="(3)"> <text>Direct the retailer to immediately:</text> <paragraph num="(a)"> <text>Cease selling or displaying lottery products;</text> </paragraph> <paragraph num="(b)"> <text>Render a final accounting to the Agency in a manner specified by the Director; and</text> </paragraph> <paragraph num="(c)"> <text>Pay all funds owed the Agency;</text> </paragraph> <paragraph num="(d)"> <text>Return all unsold lottery tickets;</text> </paragraph> <paragraph num="(e)"> <text>Remove or cover any signage advertising lottery products or services; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Take any other action necessary to protect the security, financial stability, reputation, or integrity of the Agency.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Reapplication. A person may not reapply to be a retailer or be included in the application of another person for 1 year after the later of:</text> <paragraph num="(1)"> <text>The final action on a sanction; or</text> </paragraph> <paragraph num="(2)"> <text>If judicial review of the final action on a sanction is taken, the date an adverse decision is entered against the retailer by the highest court to which an appeal is taken.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-101, 9-111—9-116, and 9-119, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2013 (40:9 Md. R. 790)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective January 14, 2019 (46:1 Md. R. 13); May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02E repealed effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A, B amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C adopted effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective January 14, 2019 (46:1 Md. R. 13); May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10A, E amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> </annotations> </chapter> <chapter num="03" heading="Retailer Requirements"> <regulation prefix="Regulation" num=".01" heading="General Responsibilities."> <text>Lottery Laws and Regulations. A retailer shall:</text> <paragraph num="A."> <text>Comply with all lottery laws and regulations of the Agency;</text> </paragraph> <paragraph num="B."> <text>Be aware of all lottery laws and regulations pertaining to the duties and responsibilities of a retailer; and</text> </paragraph> <paragraph num="C."> <text>Inform the Director of an act or omission that the retailer knows or should know constitutes a violation of lottery laws and regulations.</text> <paragraph num="(2)"> <text>Assume the cost of any repairs to the retailer’s location arising from the removal of the Agency’s equipment.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Retailer Obligations."> <paragraph num="A."> <text>Services. A retailer shall:</text> <paragraph num="(1)"> <text>Provide specified services for the Agency, including the sale, cashing, and issuance of lottery tickets and coupons or vouchers, as directed by the Agency;</text> </paragraph> <paragraph num="(2)"> <text>Sell a ticket for cash only;</text> </paragraph> <paragraph num="(3)"> <text>Sell a ticket only at the location specified on the retailer’s license.</text> </paragraph> <paragraph num="(4)"> <text>Sell a ticket only during the hours listed in the application, or as modified after notifying the Commission, unless otherwise approved in advance by the Agency;</text> </paragraph> <paragraph num="(5)"> <text>Exercise courteous and fair treatment to lottery players;</text> </paragraph> <paragraph num="(6)"> <text>Sell all lottery games as directed by the Agency;</text> </paragraph> <paragraph num="(7)"> <text>Except for those requiring submission of a claim form to the Agency, pay every winning ticket upon validation under COMAR 36.02.06;</text> </paragraph> <paragraph num="(8)"> <text>Report to the Agency, as required by the Internal Revenue Service or the Agency, income tax information relating to a holder of a winning ticket;</text> </paragraph> <paragraph num="(9)"> <text>Charge no fee for the issuance or cashing of checks for lottery winnings;</text> </paragraph> <paragraph num="(10)"> <text>Display the retailer’s license in a prominent location;</text> </paragraph> <paragraph num="(11)"> <text>Keep playslips in stock and available to players;</text> </paragraph> <paragraph num="(12)"> <text>Not sell any ticket or lottery-style ticket other than those made available for sale by the Agency;</text> </paragraph> <paragraph num="(13)"> <text>Except for advertising already located on the retailer’s premises, obtain prior Agency approval for permanent or semi-permanent lottery advertising such as signs and billboards;</text> </paragraph> <paragraph num="(14)"> <text>Prominently post point-of-sale and other promotional or player-related materials supplied by the Agency;</text> </paragraph> <paragraph num="(15)"> <text>Free of charge, provide the latest winning game data;</text> </paragraph> <paragraph num="(16)"> <text>Properly manage customer data; and</text> </paragraph> <paragraph num="(17)"> <text>Except as permitted in Regulation .12 of this chapter, not have on its premises an illegal gaming device or a slot machine as defined in Criminal Law Article, §12-301, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Care of Terminals. A retailer shall:</text> <paragraph num="(1)"> <text>Place terminals within the retailer’s premises only on a site approved by the Agency;</text> </paragraph> <paragraph num="(2)"> <text>Provide sufficient space for the proper operation of the terminal;</text> </paragraph> <paragraph num="(3)"> <text>Before installation of the terminal, provide electrical requirements as prescribed in the Lottery Central System contractor pre-site form;</text> </paragraph> <paragraph num="(4)"> <text>Participate in training approved by the Agency;</text> </paragraph> <paragraph num="(5)"> <text>Replace ticket stock when necessary;</text> </paragraph> <paragraph num="(6)"> <text>Provide reasonable care and security for ticket stock, tickets, and supplies;</text> </paragraph> <paragraph num="(7)"> <text>As specified in the operating manual and help screens for the terminal and lottery equipment, exercise due diligence in the operation, security, and care of the terminal and lottery equipment;</text> </paragraph> <paragraph num="(8)"> <text>Except as directed by the Agency or the Lottery Central System operator, not perform mechanical or electrical maintenance on the terminal or lottery equipment;</text> </paragraph> <paragraph num="(9)"> <text>As directed by the Agency, immediately notify the Lottery Central System contractor’s technical support operations center in the event of a terminal malfunction;</text> </paragraph> <paragraph num="(10)"> <text>As directed by the Agency, make the terminal available for the sale and cashing of tickets;</text> </paragraph> <paragraph num="(11)"> <text>Except for materials that are provided by the Agency and are specifically authorized to be placed on a terminal, keep the surfaces of the terminal free and clear;</text> </paragraph> <paragraph num="(12)"> <text>Pay the electrical utility charges in connection with the operation of the terminal; and</text> </paragraph> <paragraph num="(13)"> <text>Assume the cost of the repairs to the terminal, other lottery equipment, or the retailer’s property related to:</text> <paragraph num="(a)"> <text>Unauthorized attempts to modify or repair the terminal or other lottery equipment;</text> </paragraph> <paragraph num="(b)"> <text>Unauthorized attempts to move the terminal or other lottery equipment; and</text> </paragraph> <paragraph num="(c)"> <text>Other damage to the terminal, lottery equipment or the retailer’s property including:</text> <paragraph num="(i)"> <text>Intentional damage;</text> </paragraph> <paragraph num="(ii)"> <text>Defacement of the property; and</text> </paragraph> <paragraph num="(iii)"> <text>Negligence resulting in damage to the property.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Hold Harmless. A retailer shall hold the Agency and the State of Maryland and their officials and employees, harmless from any liability arising in connection with operating and conducting ticket sales.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Prohibited Acts."> <paragraph num="A."> <text>A retailer may not:</text> <paragraph num="(1)"> <text>Sell a ticket at any price higher than that established by the Director;</text> </paragraph> <paragraph num="(2)"> <text>Sell to or cash a ticket for an individual younger than 18 years old;</text> </paragraph> <paragraph num="(3)"> <text>Allow an employee younger than 18 years old to sell or cash a ticket or operate lottery equipment;</text> </paragraph> <paragraph num="(4)"> <text>Extend credit in any manner for the sale of a ticket;</text> </paragraph> <paragraph num="(5)"> <text>Offer customers alcoholic beverages or cannabis to induce them to purchase or redeem a ticket;</text> </paragraph> <paragraph num="(6)"> <text>Charge a player a fee for any lottery related service or convenience;</text> </paragraph> <paragraph num="(7)"> <text>Sell an instant ticket prior to activation;</text> </paragraph> <paragraph num="(8)"> <text>Fail to secure ticket stock, tickets, or lottery equipment;</text> </paragraph> <paragraph num="(9)"> <text>Resell a ticket;</text> </paragraph> <paragraph num="(10)"> <text>Exchange terminal game ticket stock with another retailer;</text> </paragraph> <paragraph num="(11)"> <text>Misuse terminal game ticket stock;</text> </paragraph> <paragraph num="(12)"> <text>Sell any ticket or lottery-style ticket other than those made available for sale by the Agency; or</text> </paragraph> <paragraph num="(13)"> <text>Offer a game of chance on the retailer’s premises, unless the retailer is:</text> <paragraph num="(a)"> <text>A video lottery facility;</text> </paragraph> <paragraph num="(b)"> <text>A special licensee for instant ticket lottery machines;</text> </paragraph> <paragraph num="(c)"> <text>A legal operator of an electronic gaming device that is licensed as an amusement game in Baltimore City or Baltimore County under Criminal Law Article, §12-301.1, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(d)"> <text>An operator of a device that is subject to regulation by the Comptroller under Criminal Law Article, §12-304, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(e)"> <text>A legal operator of instant bingo under Criminal Law Article, §12-308, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(f)"> <text>Authorized to offer paper tip jar gaming under Criminal Law Article, Title 13, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Canceled Ticket. Except as otherwise provided in these regulations or with the approval of the Director, a retailer may not cancel or accept a ticket return for a draw game.</text> </paragraph> <paragraph num="C."> <text>Void Ticket.</text> <paragraph num="(1)"> <text>A ticket may not be sold for a drawing after that drawing has occurred.</text> </paragraph> <paragraph num="(2)"> <text>A ticket sold for a drawing after that drawing has occurred is void.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Lottery Sale—General."> <paragraph num="A."> <text>Nothing prevents a person from giving a ticket as a gift.</text> </paragraph> <paragraph num="B."> <text>Only a licensed retailer or the retailer’s employee may sell a ticket.</text> </paragraph> <paragraph num="C."> <text>The Agency may sell a ticket or a lottery subscription.</text> </paragraph> <paragraph num="D."> <text>A retailer shall require that a person pay for a ticket at the time of purchase.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Cessation of Operations."> <paragraph num="A."> <text>A retailer shall notify the Agency at least 10 work days before the retailer temporarily or permanently ceases the operation of the retailer’s business.</text> </paragraph> <paragraph num="B."> <text>If a person ceases to be a retailer, the person shall:</text> <paragraph num="(1)"> <text>Surrender, or allow the Lottery Central System contractor to remove, materials, supplies, unsold tickets, and equipment that were provided by the Agency or the Lottery Central System contractor;</text> </paragraph> <paragraph num="(2)"> <text>Be financially liable for the repair or replacement of Agency equipment lost or damaged; and</text> </paragraph> <paragraph num="(3)"> <text>Assume the cost of repairs to the retailer’s location arising from the removal of the equipment in §B(1) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Sale of Tickets — Instant Ticket Procedure."> <paragraph num="A."> <text>Retailers shall activate an instant ticket pack before selling an instant ticket from that pack.</text> </paragraph> <paragraph num="B."> <text>Instant tickets that a retailer activates before a tickets announced end of game may be sold by the retailer after the tickets announced end of game and until the last date to claim a prize for that game.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Sale of Lottery Tickets — Draw Game Ticket Procedure."> <paragraph num="A."> <text>Playslip or ePlayslip Purchase Procedure. If a player wishes to purchase a ticket using a playslip or an ePlayslip:</text> <paragraph num="(1)"> <text>A player shall complete a playslip and give it to the retailer; and</text> </paragraph> <paragraph num="(2)"> <text>The retailer shall:</text> <paragraph num="(a)"> <text>Process the playslip or ePlayslip using the terminal; and</text> </paragraph> <paragraph num="(b)"> <text>Issue to the player the specified draw game ticket for the game being played.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Vocalized Purchase Procedure.</text> <paragraph num="(1)"> <text>Randomly Selected Game Data.</text> <paragraph num="(a)"> <text>If a player wishes to have playable game data randomly generated for a draw game ticket, a retailer shall enter the game type and the dollar amount the player wants to play.</text> </paragraph> <paragraph num="(b)"> <text>The retailer shall deliver to the player the ticket issued by the terminal with the randomly generated game data for the game printed on the ticket.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Player Selected Game Data.</text> <paragraph num="(a)"> <text>If the player wishes to provide playable game data, a retailer may allow a player to vocalize the game data.</text> </paragraph> <paragraph num="(b)"> <text>The retailer shall enter the information provided by the player, including:</text> <paragraph num="(i)"> <text>The game type;</text> </paragraph> <paragraph num="(ii)"> <text>The dollar amount the player wants to play;</text> </paragraph> <paragraph num="(iii)"> <text>The game data the player selects;</text> </paragraph> <paragraph num="(iv)"> <text>The number of games the player wishes to play; and</text> </paragraph> <paragraph num="(v)"> <text>Any other information required by the Agency.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Player Activated Terminal. If a player wishes to purchase a ticket using a PAT, the player may purchase the ticket using any method offered on the PAT.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Sale of Tickets — Fast Play Game Ticket Procedure."> <paragraph num="A."> <text>Retailer Assisted Purchase Procedure.</text> <paragraph num="(1)"> <text>If a player wants to purchase a Fast Play game ticket, the player shall indicate to the retailer the name of the Fast Play game the player wants.</text> </paragraph> <paragraph num="(2)"> <text>The retailer shall make the selection of the ticket through the terminal and after the player pays for the ticket, give it to the player.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Player-Activated Terminal.</text> <paragraph num="(1)"> <text>If a player wants to purchase a ticket using a PAT, the player may purchase the ticket by selecting the icon for the desired Fast Play game on the terminal screen.</text> </paragraph> <paragraph num="(2)"> <text>The PAT shall generate and dispense the ticket.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Lost, Stolen, or Missing Tickets."> <paragraph num="A."> <text>If a ticket is lost, stolen, or missing from a retailer, the Director may offset an amount due from the retailer for the ticket.</text> </paragraph> <paragraph num="B."> <text>The Director may require the party responsible for a lost, stolen, or missing ticket to reimburse the Agency.</text> </paragraph> <paragraph num="C."> <text>The Agency is not liable to a retailer or player for a lost or stolen ticket.</text> </paragraph> <paragraph num="D."> <text>A ticket is void if it:</text> <paragraph num="(1)"> <text>Is mutilated;</text> </paragraph> <paragraph num="(2)"> <text>Is altered;</text> </paragraph> <paragraph num="(3)"> <text>Is irregular;</text> </paragraph> <paragraph num="(4)"> <text>Is expired;</text> </paragraph> <paragraph num="(5)"> <text>Fails to meet validation standards; or</text> </paragraph> <paragraph num="(6)"> <text>Fails to meet security requirements.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If a retailer is reimbursed for a lost, stolen, or missing ticket, the retailer shall:</text> <paragraph num="(1)"> <text>Hold the Agency harmless; and</text> </paragraph> <paragraph num="(2)"> <text>Provide the Director with as much information considered necessary to process the claim.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A retailer may not seek indemnification from another source if reimbursed by the Director for a lost, stolen, or missing ticket.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Posting of Winning Game Data."> <paragraph num="A."> <text>As soon as practical after each drawing, a retailer may:</text> <paragraph num="(1)"> <text>Post in a prominent and conspicuous location within the retailer’s business location the winning game data; and</text> </paragraph> <paragraph num="(2)"> <text>Keep the winning game data posted until the next drawing.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A retailer shall display active winning game data as requested by the Agency.</text> </paragraph> <paragraph num="C."> <text>The Agency is not responsible for a retailer’s failure to post or properly post current official winning game data.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Payment of Prizes."> <paragraph num="A."> <text>A retailer shall pay the holder of a valid winning lottery ticket up to $600.</text> </paragraph> <paragraph num="B."> <text>A retailer shall pay the holder of a valid winning ticket regardless of whether the retailer sold the ticket.</text> </paragraph> <paragraph num="C."> <text>Unless the retailer is a participant in the Expanded Cashing Authority Program under Regulation .08 of this chapter, if the valid winning ticket entitles the holder to a prize that is more than $600, the retailer shall instruct the ticket holder to seek payment from the Agency or a retailer participating in the Expanded Cashing Authority Program.</text> </paragraph> <paragraph num="D."> <text>Validated and Paid Tickets. Unless a ticket is cashed at a PAT, after a ticket is validated and paid, the retailer:</text> <paragraph num="(1)"> <text>May not return the ticket to the winner; and</text> </paragraph> <paragraph num="(2)"> <text>Shall secure the ticket.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Cashing Period. A retailer or Agency claim center may not cash or otherwise process a winning ticket more than 182 days after the:</text> <paragraph num="(1)"> <text>Drawing date;</text> </paragraph> <paragraph num="(2)"> <text>Date of sale of a Fast Play game ticket; or</text> </paragraph> <paragraph num="(3)"> <text>Announced end of game for an instant game.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Unusual Claims.</text> <paragraph num="(1)"> <text>The Agency shall use an analytics tool to identify an unusual claim.</text> </paragraph> <paragraph num="(2)"> <text>If the Agency identifies an unusual claim, the Agency may:</text> <paragraph num="(a)"> <text>Require the claimant to claim a prize at the Agency’s headquarters;</text> </paragraph> <paragraph num="(b)"> <text>Delay payment of the prize;</text> </paragraph> <paragraph num="(c)"> <text>Investigate the circumstances surrounding the purchase of the ticket and claiming of</text> <paragraph num="(i)"> <text>Interviewing the claimant; and</text> </paragraph> <paragraph num="(ii)"> <text>Interviewing the retailer that sold the ticket; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Require future claims made by the same claimant to be reviewed as an unusual claim.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Expanded Cashing Authority Program."> <paragraph num="A."> <text>Establishment.</text> <paragraph num="(1)"> <text>The Director may establish an Expanded Cashing Authority Program.</text> </paragraph> <paragraph num="(2)"> <text>Retailers selected by the Director may pay cash prizes up to $5,000.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Participation. Before authorizing a retailer to participate in the Expanded Cashing Authority Program, the Director may consider:</text> <paragraph num="(1)"> <text>The length of time the retailer has been licensed;</text> </paragraph> <paragraph num="(2)"> <text>The financial record and responsibility of the retailer;</text> </paragraph> <paragraph num="(3)"> <text>The retailer’s compliance with the requirements of this subtitle;</text> </paragraph> <paragraph num="(4)"> <text>The need for expanded cashing authority within a specific geographical location;</text> </paragraph> <paragraph num="(5)"> <text>The number of existing retailers with expanded cashing authority;</text> </paragraph> <paragraph num="(6)"> <text>The overall performance of the retailer since the license was issued; and</text> </paragraph> <paragraph num="(7)"> <text>Any other factor deemed relevant by the Director.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Retailer Requirements. A retailer in the Expanded Cashing Authority Program shall:</text> <paragraph num="(1)"> <text>Maintain a separate bank account solely for lottery monies to the credit of the State Lottery Fund;</text> </paragraph> <paragraph num="(2)"> <text>Ensure the confidential handling of personal information from players and winners by not disclosing any personal information to anyone other than the Agency or as required by law;</text> </paragraph> <paragraph num="(3)"> <text>Collect income tax information relating to a holder of a winning ticket to the Agency as required by the Internal Revenue Service or the Agency;</text> </paragraph> <paragraph num="(4)"> <text>For prizes over $600, utilize the terminal to determine, whether a holder of a winning ticket:</text> <paragraph num="(a)"> <text>Owes a State obligation; or</text> </paragraph> <paragraph num="(b)"> <text>Is on the Commission’s Voluntary Exclusion List described in COMAR 36.01.03; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>If the Agency has notified the retailer that the holder may not be paid, the retailer shall deny payment of a prize to the holder of a winning lottery ticket if the Agency has notified the retailer that the holder may not be paid.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Recertification for the Program. The Director may establish a periodic recertification process for retailers in the Expanded Cashing Authority Program.</text> </paragraph> <paragraph num="E."> <text>Removal from the Program.</text> <paragraph num="(1)"> <text>A retailer participating in the Expanded Cashing Authority Program may be removed from the Program at any time by the Director.</text> </paragraph> <paragraph num="(2)"> <text>Removal from the program does not automatically otherwise terminate a retailer’s license.</text> </paragraph> <paragraph num="(3)"> <text>The Director's decision to remove a retailer from the program is final and not subject to appeal.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Payments to Agency."> <paragraph num="A."> <text>A retailer shall:</text> <paragraph num="(1)"> <text>Be financially responsible to the Agency for all:</text> <paragraph num="(a)"> <text>Revenues derived from the sale of tickets based on the ticket price established by the Director;</text> </paragraph> <paragraph num="(b)"> <text>Tickets in the possession of the retailer; and</text> </paragraph> <paragraph num="(c)"> <text>Except for tickets cashed through a PAT, tickets that the retailer cashed or canceled which are later submitted to the Agency for payment;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Make regular weekly settlement and payment in the manner, in the place, and on the day of the week specified by the Agency;</text> </paragraph> <paragraph num="(3)"> <text>Make more frequent settlement and payment remittances when required by the Director;</text> </paragraph> <paragraph num="(4)"> <text>Pay a service charge to the Agency for any dishonored check or electronic transfer;</text> </paragraph> <paragraph num="(5)"> <text>Promptly pay a bonding fee in such amount as the Director determines, when required; and</text> </paragraph> <paragraph num="(6)"> <text>Promptly pay any fees under this subtitle.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Any payment due to the Agency not made within 10 days after the due date shall be charged interest until paid.</text> </paragraph> <paragraph num="C."> <text>The Agency may refer delinquent accounts to the Central Collection Unit of the Department of Budget and Management.</text> </paragraph> <paragraph num="D."> <text>Delinquent accounts shall be increased by any additional fees authorized by State Finance and Procurement Article, §3-304(a)(2), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Americans with Disabilities Act."> <paragraph num="A."> <text>Definitions. In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>ADA means the certain law commonly known as the Americans with Disabilities Act of 1990, as amended.</text> </paragraph> <paragraph num="(2)"> <text>“ADA retailer compliance form” means a form prepared by the Agency and used to inspect a retailer’s location in connection with this regulation to ensure player accessibility to a retailer.</text> </paragraph> <paragraph num="(3)"> <text>“Applicant” means a person that applies for a new retailer license or a change of ownership of a retailer.</text> </paragraph> <paragraph num="(4)"> <text>“Corrective Action Plan” means a plan that an applicant is required to submit to the Agency describing how the applicant will modify its premises to comply with applicable State and federal law regarding accessible business establishments.</text> </paragraph> <paragraph num="(5)"> <text>“Disability” has the meaning stated in the ADA.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Compliance.</text> <paragraph num="(1)"> <text>The Agency shall:</text> <paragraph num="(a)"> <text>Inspect the site of an applicant for compliance with the ADA for player accessibility;</text> </paragraph> <paragraph num="(b)"> <text>If necessary, require an applicant whose business establishment is not accessible to submit a proposed Corrective Action Plan before the Director issues a retailer license; and</text> </paragraph> <paragraph num="(c)"> <text>Require a new retailer or change of ownership to certify in the retailer application that their business establishment at issue in the application is accessible to individuals with disabilities who use wheelchairs.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Agency may impose a sanction or take an action on a license for failing to comply with this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Waivers.</text> <paragraph num="(1)"> <text>A retailer that is unable to comply with §C of this regulation, shall obtain an official waiver from the State to maintain a non-accessible business establishment; or</text> </paragraph> <paragraph num="(2)"> <text>If the State no longer provides official waivers under §D(1) of this regulation, a retailer may obtain an official waiver from its local jurisdiction.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Changes in Ownership."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>A retailer license may not be transferred.</text> </paragraph> <paragraph num="(2)"> <text>A change in ownership of a retailer’s business:</text> <paragraph num="(a)"> <text>Automatically voids the existing retailer license; and</text> </paragraph> <paragraph num="(b)"> <text>Requires an application for a new license.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A change of ownership includes:</text> <paragraph num="(a)"> <text>A transfer of ownership of the retailer’s business;</text> </paragraph> <paragraph num="(b)"> <text>The addition of an owner that was not on the original license application; or</text> </paragraph> <paragraph num="(c)"> <text>Except as provided in §A(4) of this regulation, a change to the retailer’s business</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A change of ownership does not include a voluntary or involuntary transfer of an interest in the retailer’s business to a person identified as an owner on the license.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Retailer Responsibilities.</text> <paragraph num="(1)"> <text>A retailer that transfers ownership:</text> <paragraph num="(a)"> <text>Is responsible for all tickets, lottery equipment, and receipts from lottery sales; and</text> </paragraph> <paragraph num="(b)"> <text>Remains responsible for fulfilling all obligations to the Agency until the change of ownership is approved and the Agency issues a new license.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A new owner of the business may apply for a license under COMAR 36.02.02 or relinquish lottery equipment remaining on the premises.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §12-301.1; State Government Article, §§9-103, 9-104, 9-109—9-113, 9-115, 9-117, 9-118, 9-119, 9-122, 9-124, and 9-125, Annotated Code of Maryland; Ch. 603, §6, Acts of 2012</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2013 (40:9 Md. R. 790)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective December 2, 2019 (46:24 Md. R. 1104)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective September 21, 2020 (47:19 Md. R. 850)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective March 9, 2020 (47:5 Md. R. 313)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective May 26, 2025 (52:10 Md. R. 439)</annotation> </annotations> </chapter> <chapter num="04" heading="Common Provisions for All Lottery Games"> <regulation prefix="Regulation" num=".01" heading="Governing Law and Rules."> <paragraph num="A."> <text>By purchasing a ticket, a player agrees to comply with and abide by all:</text> <paragraph num="(1)"> <text>Applicable laws and regulations;</text> </paragraph> <paragraph num="(2)"> <text>Procedures implemented by the Director for conducting a lottery game;</text> </paragraph> <paragraph num="(3)"> <text>Rules for that lottery game; and</text> </paragraph> <paragraph num="(4)"> <text>Decisions of the Director.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A multi-jurisdictional game shall be governed by:</text> <paragraph num="(1)"> <text>Applicable law and regulations;</text> </paragraph> <paragraph num="(2)"> <text>The rules, procedures, and other documents concerning that game as agreed to by the jurisdictions offering that game; and</text> </paragraph> <paragraph num="(3)"> <text>Agency provisions regarding the purchase and claiming of a ticket.</text> </paragraph> </paragraph> <paragraph num="C."> <text>All decisions made by the Director shall be final and binding on players and on persons making claims.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Ticket Purchaser Responsibilities."> <paragraph num="A."> <text>At the time of purchase and if applicable, the purchaser of a ticket is responsible for verifying that the information printed on the ticket accurately reflects:</text> <paragraph num="(1)"> <text>The game data that the purchaser wants to play if the purchaser selects their own game data; and</text> </paragraph> <paragraph num="(2)"> <text>The drawing date and time, if applicable.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The sole remedy for an inaccurate ticket shall be cancellation of that ticket, if permitted, as set forth in Regulation .04 of this chapter.</text> </paragraph> <paragraph num="C."> <text>To receive a prize, a person holding a winning ticket shall submit to an authorized claiming location the ticket and all necessary documentation for claiming within 182 days after the drawing date, the date of sale of a Fast Play game ticket, or the announced end of game.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Methods of Purchase."> <paragraph num="A."> <text>This regulation does not apply to instant ticket lottery machines under COMAR 36.02.09.</text> </paragraph> <paragraph num="B."> <text>Playslips and ePlayslips.</text> <paragraph num="(1)"> <text>Playslips and ePlayslips are not valid as a receipt to claim a prize or proof of purchase of a ticket.</text> </paragraph> <paragraph num="(2)"> <text>If a playslip or an ePlayslip may be used to play a draw game, the playslip or ePlayslip shall be available at no cost to the purchaser and may be used by the purchaser for selection of game data.</text> </paragraph> <paragraph num="(3)"> <text>A playslip shall include instructions on how to complete the playslip.</text> </paragraph> <paragraph num="(4)"> <text>If game play by playslip or ePlayslip is authorized and a playslip or an ePlayslip is unavailable, the retailer may manually enter into the terminal the game data selected by the player.</text> </paragraph> <paragraph num="(5)"> <text>The Agency or a retailer may seize and destroy an invalid playslip.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Purchase by Playslip Through Retailer.</text> <paragraph num="(1)"> <text>If the player chooses to play by playslip, the player shall present a completed playslip to the retailer.</text> </paragraph> <paragraph num="(2)"> <text>A player may play as many panels or play areas as are available on the playslip.</text> </paragraph> <paragraph num="(3)"> <text>A player shall mark all necessary areas on the playslip.</text> </paragraph> <paragraph num="(4)"> <text>If a player does not mark all necessary areas, the retailer shall return the playslip to the player or the terminal may select game data necessary to complete the playslip.</text> </paragraph> <paragraph num="(5)"> <text>A playslip shall be manually marked and may not be marked by an electromechanical, electronic printing, or automated device.</text> </paragraph> <paragraph num="(6)"> <text>A playslip marked by a method other than a method authorized by this section shall be invalid.</text> </paragraph> <paragraph num="(7)"> <text>A ticket produced by an invalid playslip is invalid.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Purchase by ePlayslip Through Retailer.</text> <paragraph num="(1)"> <text>If the player chooses to play by ePlayslip, the player shall present a completed ePlayslip to the retailer.</text> </paragraph> <paragraph num="(2)"> <text>A player may play as many panels or play areas as are available on the ePlayslip.</text> </paragraph> <paragraph num="(3)"> <text>A player shall select all necessary areas on the ePlayslip.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Purchase Using a Player-activated Terminal. If a game may be played using a player-activated terminal, the player shall:</text> <paragraph num="(1)"> <text>Enter selections from the choices provided on the player-activated terminal screen; or</text> </paragraph> <paragraph num="(2)"> <text>Insert a playslip or scan an ePlayslip.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Purchase by Subscription.</text> <paragraph num="(1)"> <text>Subscription Plans.</text> <paragraph num="(a)"> <text>The Lottery may offer subscription plans.</text> </paragraph> <paragraph num="(b)"> <text>The Director shall determine the price of a subscription plan.</text> </paragraph> <paragraph num="(c)"> <text>The Director may reduce the price of a subscription plan for a specified number of drawings.</text> </paragraph> <paragraph num="(d)"> <text>The Director may cancel a subscription and issue a refund for the subscription based on:</text> <paragraph num="(i)"> <text>Game changes; or</text> </paragraph> <paragraph num="(ii)"> <text>Ineligibility of a purchaser.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Application for a Subscription.</text> <paragraph num="(a)"> <text>A player that wants to purchase a Lottery subscription shall be a resident of Maryland or have a Maryland address subscription.</text> </paragraph> <paragraph num="(b)"> <text>If a game may be purchased by subscription, a subscription application shall:</text> <paragraph num="(i)"> <text>Identify the game being played; and</text> </paragraph> <paragraph num="(ii)"> <text>Require the purchaser to supply identifying information as determined by the Agency.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A subscription application shall allow the purchaser to designate:</text> <paragraph num="(i)"> <text>The number of drawings or games to be played, or the length of the subscription; and</text> </paragraph> <paragraph num="(ii)"> <text>If a game allows a player to select game data, the player’s decision to supply particular game data or to allow the system to select random game data.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>A subscription application may require the player to provide any other information the Agency requires.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Group Subscription Applications.</text> <paragraph num="(a)"> <text>An application for a subscription in the name of more than one person:</text> <paragraph num="(i)"> <text>Is a group subscription;</text> </paragraph> <paragraph num="(ii)"> <text>Shall designate a single group member to be the group manager;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The group manager shall be:</text> <paragraph num="(i)"> <text>A Maryland resident or have a Maryland mailing address; and</text> </paragraph> <paragraph num="(ii)"> <text>Authorized to be the sole recipient of prizes up to an amount determined by the Director.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>An application for a group subscription shall include identifying information for each group member, as determined by the Agency.</text> </paragraph> <paragraph num="(d)"> <text>The application for a group will only be accepted if the application is fully completed and all required information is provided about each group member.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Confirmation of Subscription. The Agency shall provide a subscription purchaser or, if a group purchaser, the group’s representative, a subscription confirmation email.</text> </paragraph> <paragraph num="(5)"> <text>Subscription Play and Winning.</text> <paragraph num="(a)"> <text>A subscription player shall be automatically entered in each drawing or game during the period when the subscription is active.</text> </paragraph> <paragraph num="(b)"> <text>The Agency shall pay subscription prizes as provided for in COMAR 36.02.06.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The Agency may allow a subscription to be renewed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Cancellation of Tickets."> <paragraph num="A."> <text>Draw Games.</text> <paragraph num="(1)"> <text>Except as provided in §A(2) of this regulation, a draw game ticket may be canceled.</text> </paragraph> <paragraph num="(2)"> <text>A draw game ticket may not be canceled in:</text> <paragraph num="(a)"> <text>A multi-jurisdictional game;</text> </paragraph> <paragraph num="(b)"> <text>Cash Pop; and</text> </paragraph> <paragraph num="(c)"> <text>Multi-Match.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A ticket purchased at a player-activated terminal may not be canceled at the PAT, but an eligible ticket may be canceled at a non-PAT terminal at the retailer where the ticket was purchased.</text> </paragraph> <paragraph num="(4)"> <text>The Director may determine during certain promotions that tickets may not be canceled.</text> </paragraph> <paragraph num="(5)"> <text>A draw game ticket may be cancelled only:</text> <paragraph num="(a)"> <text>By the same retailer from which the ticket was purchased;</text> </paragraph> <paragraph num="(b)"> <text>On the day of purchase;</text> </paragraph> <paragraph num="(c)"> <text>Before the designated cutoff time for the first drawing on the ticket; and</text> </paragraph> <paragraph num="(d)"> <text>If allowed by the game rules.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Canceling a draw game ticket:</text> <paragraph num="(a)"> <text>Voids the ticket;</text> </paragraph> <paragraph num="(b)"> <text>Removes the ticket from the pool of tickets eligible for the drawing;</text> </paragraph> <paragraph num="(c)"> <text>Renders the ticket ineligible for entry into a loyalty platform or program; and</text> </paragraph> <paragraph num="(d)"> <text>Results in the ticket being invalid and not eligible to win a prize.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>A retailer presented with a draw game ticket for cancellation shall cancel the ticket as authorized by this regulation.</text> </paragraph> <paragraph num="(8)"> <text>When a retailer cancels a draw game ticket in accordance with this regulation, the retailer shall:</text> <paragraph num="(a)"> <text>Ensure that the terminal issues a refund receipt in the amount of the purchase price of the ticket;</text> </paragraph> <paragraph num="(b)"> <text>Keep the refund slip;</text> </paragraph> <paragraph num="(c)"> <text>Keep the ticket; and</text> </paragraph> <paragraph num="(d)"> <text>Pay the player a refund equal to the purchase price of the ticket.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>The Agency is not obligated to pay a prize to the holder of a canceled ticket, even if the ticket was canceled in error.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Instant Ticket Games. Unless the Director determines otherwise, an instant game ticket may not be canceled.</text> </paragraph> <paragraph num="C."> <text>Fast Play Games. A Fast Play game ticket may not be canceled.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Liability Limits."> <paragraph num="A."> <text>Scope.</text> <paragraph num="(1)"> <text>This regulation applies to a lottery game.</text> </paragraph> <paragraph num="(2)"> <text>This regulation does not apply to:</text> <paragraph num="(a)"> <text>An instant ticket lottery machine game; or</text> </paragraph> <paragraph num="(b)"> <text>A promotion.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Pick Game” means a Pick 3, Pick 4, and Pick 5 game.</text> </paragraph> <paragraph num="(b)"> <text>“Prize cap” means an upper limit of prize liability beyond which fixed prizes are recalculated on a pari-mutuel basis.</text> </paragraph> <paragraph num="(c)"> <text>“Promotional prize limit” means the maximum payout for a single play during a sales promotion</text> </paragraph> <paragraph num="(d)"> <text>“Sales limit” means the dollar amount established by the Director at which winning tickets, if paid, would not be in the Agency’s best interests.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Pick Games.</text> <paragraph num="(1)"> <text>There is a liability limit for a Pick Game.</text> </paragraph> <paragraph num="(2)"> <text>When the liability limit is reached for a number combination in a drawing, sales on the number combination are no longer permitted.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Draw Games Other Than a Pick Game.</text> <paragraph num="(1)"> <text>If the fixed prize amount multiplied by the number of winners exceeds the prize cap, prizes shall be calculated on a pari-mutuel basis.</text> </paragraph> <paragraph num="(2)"> <text>A jackpot prize is determined on a pari-mutual basis.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Except for a multi-jurisdictional game, the Director may establish or modify for each drawing of a game a:</text> <paragraph num="(1)"> <text>Promotional prize limit;</text> </paragraph> <paragraph num="(2)"> <text>Prize cap; or</text> </paragraph> <paragraph num="(3)"> <text>Sales limit.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Agency Not Liable."> <text>The Agency is not responsible or liable for:</text> <paragraph num="A."> <text>A ticket or entry that is lost, stolen, damaged, or destroyed;</text> </paragraph> <paragraph num="B."> <text>A ticket redeemed by a retailer in error;</text> </paragraph> <paragraph num="C."> <text>A winning number repeated, reported, or displayed in error, including by television, media, or by any other form of communication;</text> </paragraph> <paragraph num="D."> <text>An outdated or incorrect playslip, ePlayslip, or consumer game information;</text> </paragraph> <paragraph num="E."> <text>A claim, liability, injury, or property loss of any kind arising out of a player’s, winner’s, guest’s, traveler’s, or any other person’s participation in:</text> <paragraph num="(1)"> <text>A lottery game;</text> </paragraph> <paragraph num="(2)"> <text>A promotion;</text> </paragraph> <paragraph num="(3)"> <text>A drawing or a related event or occurrence; or</text> </paragraph> <paragraph num="(4)"> <text>The award, receipt, possession, use, misuse, or acceptance of a prize;</text> </paragraph> </paragraph> <paragraph num="F."> <text>Negligence or breach of obligation of a person other than the Agency, its employees, officials, or members; or</text> </paragraph> <paragraph num="G."> <text>Payment of a ticket not in accordance with this subtitle.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="No Endorsement."> <text>By providing a prize or a portion of a prize from a company or other person, the Agency has not endorsed the company or other person.</text> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-103, 9-104, 9-109—9-111, 9-122, and 9-124, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2013 (40:9 Md. R. 790)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A, B amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A, C amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C amended effective December 2, 2019 (46:24 Md. R. 1104)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective January 7, 2016 (42:26 Md. R. 1597); January 14, 2019 (46:1 Md. R. 13); May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C adopted effective December 2, 2019 (46:24 Md. R. 1104)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05C amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06D amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06E amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 repealed effective May 26, 2025 (52:10 Md. R. 439)</annotation> </annotations> </chapter> <chapter num="05" heading="Specific Game Provisions"> <regulation prefix="Regulation" num=".01" heading="Draw Games."> <paragraph num="A."> <text>Drawings.</text> <paragraph num="(1)"> <text>Except for a raffle, drawings shall occur at least once a week.</text> </paragraph> <paragraph num="(2)"> <text>Winning game data may be drawn by:</text> <paragraph num="(a)"> <text>Mechanical drawing equipment;</text> </paragraph> <paragraph num="(b)"> <text>A random number generator; or</text> </paragraph> <paragraph num="(c)"> <text>Another random method or device approved by the Director.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The game data selected during a drawing shall be the winning game data for that drawing.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Draw Game Tickets.</text> <paragraph num="(1)"> <text>A draw game ticket shall be generated through the use of a terminal or a subscription purchase.</text> </paragraph> <paragraph num="(2)"> <text>The draw game ticket shall include the:</text> <paragraph num="(a)"> <text>Game data played;</text> </paragraph> <paragraph num="(b)"> <text>Amount played;</text> </paragraph> <paragraph num="(c)"> <text>Ticket serial number;</text> </paragraph> <paragraph num="(d)"> <text>Additional ticket security codes;</text> </paragraph> <paragraph num="(e)"> <text>Barcode with an encoded serial number and data to permit scanning of the ticket; and</text> </paragraph> <paragraph num="(f)"> <text>Drawing date or, if the ticket is for multiple drawings, the range of drawing dates or numerical designation for a drawing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Monitor Games.</text> <paragraph num="(1)"> <text>The results of a monitor game drawing may be displayed on the games monitor.</text> </paragraph> <paragraph num="(2)"> <text>A retailer may require use of a playslip or an ePlayslip for monitor games.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Consumer Game Information.</text> <paragraph num="(1)"> <text>The Agency shall provide information about:</text> <paragraph num="(a)"> <text>Draw games; and</text> </paragraph> <paragraph num="(b)"> <text>Multi-jurisdictional games with draw game tickets.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>As determined by the Agency, consumer game information shall explain the:</text> <paragraph num="(a)"> <text>Game;</text> </paragraph> <paragraph num="(b)"> <text>Game play; and</text> </paragraph> <paragraph num="(c)"> <text>Play of optional features.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Agency may provide consumer game information on its website, mobile app, or in any other location, as determined by the Agency.</text> </paragraph> </paragraph> <paragraph num="E."> <text>To determine if a draw game ticket is a winning ticket, a player may present the ticket to a retailer, a PAT, the Agency, or an application or platform provided by the Agency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Fast Play Games."> <paragraph num="A."> <text>Fast Play Game Tickets.</text> <paragraph num="(1)"> <text>A Fast Play game ticket shall be generated through the use of a terminal.</text> </paragraph> <paragraph num="(2)"> <text>The Fast Play game ticket shall include the:</text> <paragraph num="(a)"> <text>Graphic rendering of game data that allows for visual inspection to determine if the ticket is a winning ticket;</text> </paragraph> <paragraph num="(b)"> <text>Amount played;</text> </paragraph> <paragraph num="(c)"> <text>Ticket serial number;</text> </paragraph> <paragraph num="(d)"> <text>Additional ticket security codes;</text> </paragraph> <paragraph num="(e)"> <text>Barcode with an encoded serial number and data to permit scanning of the ticket; and</text> </paragraph> <paragraph num="(f)"> <text>Date and time of sale.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Consumer Game Information.</text> <paragraph num="(1)"> <text>The Agency shall provide information about Fast Play games.</text> </paragraph> <paragraph num="(2)"> <text>As determined by the Agency, consumer game information shall explain the:</text> <paragraph num="(a)"> <text>Game;</text> </paragraph> <paragraph num="(b)"> <text>Game play; and</text> </paragraph> <paragraph num="(c)"> <text>Game’s optional features.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Agency may provide consumer game information on its website, mobile app, or in any other location.</text> </paragraph> </paragraph> <paragraph num="C."> <text>To determine if a Fast Play game ticket is a winning ticket, a player may present the ticket to a retailer, a PAT, the Agency, or an application or platform provided by the Agency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Instant Ticket Games."> <paragraph num="A."> <text>An instant game ticket shall have one or more areas that conceal:</text> <paragraph num="(1)"> <text>The playing area or a portion of the playing area;</text> </paragraph> <paragraph num="(2)"> <text>The prize or prizes;</text> </paragraph> <paragraph num="(3)"> <text>Other information as determined by the Director; or</text> </paragraph> <paragraph num="(4)"> <text>Any of the above.</text> </paragraph> </paragraph> <paragraph num="B."> <text>To determine if an instant ticket is a winning ticket, a player may:</text> <paragraph num="(1)"> <text>Expose the concealed area or areas in accordance with the game instructions on the instant ticket; or</text> </paragraph> <paragraph num="(2)"> <text>Present the ticket to a retailer, PAT, the Agency, or an application or platform provided by the Agency.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Bonus and Promotional Games."> <paragraph num="A."> <text>The Agency may offer bonus games, promotional games, or both.</text> </paragraph> <paragraph num="B."> <text>A bonus game may be:</text> <paragraph num="(1)"> <text>A lottery game;</text> </paragraph> <paragraph num="(2)"> <text>A promotional game; or</text> </paragraph> <paragraph num="(3)"> <text>Both.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A promotional game may be a bonus game.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-103, 9-104, 9-109—9-111, 9-122, and 9-124, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2013 (40:9 Md. R. 790)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01D amended as an emergency provision effective January 2, 2014 (41:2 Md. R. 89); emergency status expired May 12, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .01D amended effective May 26, 2014 (41:10 Md. R. 566)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective December 2, 2019 (46:24 Md. R. 1104)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04D repealed effective May 26, 2025 (52:10 Md. R. 439)</annotation> </annotations> </chapter> <chapter num="06" heading="Claims Procedures"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Agency claim center” means the Agency headquarters or a designated Agency customer resource center where the holder of a winning ticket may submit a claim for a prize.</text> </paragraph> <paragraph num="(2)"> <text>“Authorized claiming location” means:</text> <paragraph num="(a)"> <text>A retailer; and</text> </paragraph> <paragraph num="(b)"> <text>An Agency claim center.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Claim” means a request for payment of a prize.</text> </paragraph> <paragraph num="(4)"> <text>“Claimant” means a person who submits a winning ticket for payment of a prize.</text> </paragraph> <paragraph num="(5)"> <text>“Perfect” means to take all steps needed to complete a valid claim for an Agency prize.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Ownership of Lottery Tickets."> <paragraph num="A."> <text>The Agency owns a ticket that is unsold, cancelled, or validated.</text> </paragraph> <paragraph num="B."> <text>A validly purchased lottery ticket is:</text> <paragraph num="(1)"> <text>Owned by the person who signed the ticket in the area designated for winner’s signature; or</text> </paragraph> <paragraph num="(2)"> <text>If the ticket is unsigned:</text> <paragraph num="(a)"> <text>A bearer instrument; and</text> </paragraph> <paragraph num="(b)"> <text>Owned by the person having physical possession of the ticket.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>When one or more names are placed on the back of the ticket in the area designated for winner’s signature, each person whose name appears in that area shall:</text> <paragraph num="(1)"> <text>Own the ticket; and</text> </paragraph> <paragraph num="(2)"> <text>If each person satisfies the requirements of Regulation .05 of this chapter, be entitled to a portion of a prize attributable to the ticket.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Official Winning Numbers."> <paragraph num="A."> <text>The Agency is the only source for the official winning numbers for a lottery game.</text> </paragraph> <paragraph num="B."> <text>For a drawing, the only official winning numbers shall be the numbers randomly selected by the Agency or, for a multi-jurisdictional game, by the procedure set out in that game’s rules.</text> </paragraph> <paragraph num="C."> <text>The Agency shall issue a statement of the winning number or numbers as soon as practicable after each drawing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Prize Claiming Locations."> <paragraph num="A."> <text>A holder of a winning ticket may claim a prize for a winning ticket:</text> <paragraph num="(1)"> <text>For a prize up to and including $600 at:</text> <paragraph num="(a)"> <text>A retailer, including its PAT; or</text> </paragraph> <paragraph num="(b)"> <text>An Agency claim center;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a prize up to and including $5,000, at:</text> <paragraph num="(a)"> <text>A participating retailer under the Expanded Cashing Authority Program under COMAR 36.02.03.06; or</text> </paragraph> <paragraph num="(b)"> <text>An Agency claim center;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For a prize over $5,000 up to and including $25,000, at an Agency claim center; and</text> </paragraph> <paragraph num="(4)"> <text>For a prize over $25,000, at Agency headquarters.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Subscription Winner.</text> <paragraph num="(1)"> <text>The Agency may require a claim form to be submitted prior to issuing a check to a subscription winner.</text> </paragraph> <paragraph num="(2)"> <text>The claim form may be sent by mail or e-mail, as determined by the Agency.</text> </paragraph> <paragraph num="(3)"> <text>A payment for a subscription winner may be made by mail or at Agency headquarters.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Documents Required for Prize Payment."> <paragraph num="A."> <text>To perfect a claim and receive payment of an Agency prize, a winner shall meet all requirements in this subtitle for claiming.</text> </paragraph> <paragraph num="B."> <text>To claim a prize, a winner shall submit:</text> <paragraph num="(1)"> <text>For other than subscription winners, the actual original ticket, which shall:</text> <paragraph num="(a)"> <text>Meet the validation requirements of this subtitle; and</text> </paragraph> <paragraph num="(b)"> <text>If requested, be signed by all winners; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If requested, photo identification proof that the winner is at least 18 years old.</text> </paragraph> </paragraph> <paragraph num="C."> <text>For a prize claimed at an Agency claim center and for any prize over $600 claimed at a retailer, in addition to the documents required under §B of this regulation, a winner shall:</text> <paragraph num="(1)"> <text>Sign the original ticket;</text> </paragraph> <paragraph num="(2)"> <text>Provide necessary information to the retailer to produce a terminal-generated claim form;</text> </paragraph> <paragraph num="(3)"> <text>Submit a fully completed and signed claim form; and</text> </paragraph> <paragraph num="(4)"> <text>Provide sufficient information to identify the claimant, such as:</text> <paragraph num="(a)"> <text>The winner’s Social Security number;</text> </paragraph> <paragraph num="(b)"> <text>Proof of the winner’s Social Security number; and</text> </paragraph> <paragraph num="(c)"> <text>Photo identification proof that the winner is at least 18 years old.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>If a prize is to be split among multiple winners, each claimant shall provide the documents and information required in §§B and C of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Procedure for Authorized Claiming Locations."> <paragraph num="A."> <text>An authorized claiming location shall provide, free of charge:</text> <paragraph num="(1)"> <text>The most current winning numbers; and</text> </paragraph> <paragraph num="(2)"> <text>A claim form.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An Agency claim center shall also provide winning numbers for prior weeks.</text> </paragraph> <paragraph num="C."> <text>When a claim is submitted, an authorized claiming location shall review and verify:</text> <paragraph num="(1)"> <text>The ticket submitted for prize payment;</text> </paragraph> <paragraph num="(2)"> <text>The documents required for prize payment under Regulation .05 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>If a claim form is required, the claim form; and</text> </paragraph> <paragraph num="(4)"> <text>If the authorized claiming location is a participating retailer under the expanded cashing authority program or an Agency claim center, the lottery terminal screen will indicate whether the winner owes a State obligation or whether the winner is prohibited by COMAR 36.01.01.05D.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If the winner owes a State obligation:</text> <paragraph num="(1)"> <text>A retailer shall tell the winner to go to an Agency claim center to complete the validation process;</text> </paragraph> <paragraph num="(2)"> <text>For a cash prize, if all other requirements of this subtitle are satisfied, an Agency claim center shall:</text> <paragraph num="(a)"> <text>Withhold an amount equal to all State obligations from the cash prize and apply it to the State obligations; and</text> </paragraph> <paragraph num="(b)"> <text>Pay any remaining amount of the prize to the winner as provided in §F(3) of this regulation; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For a merchandise or experiential prize, if all other requirements of this subtitle are satisfied, an Agency claim center shall:</text> <paragraph num="(a)"> <text>Require the winner to pay all State obligations before the prize may be awarded;</text> </paragraph> <paragraph num="(b)"> <text>Apply to the State obligations any cash portion of a prize awarded to the winner; and</text> </paragraph> <paragraph num="(c)"> <text>If the winner does not pay all State obligations within 5 work days of claiming the prize, disqualify the winner and deem the claim invalidated.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>An authorized claiming location shall determine whether the winning ticket and, if required, the claim form, are:</text> <paragraph num="(1)"> <text>In proper form;</text> </paragraph> <paragraph num="(2)"> <text>Fully filled out;</text> </paragraph> <paragraph num="(3)"> <text>Submitted within the appropriate period; and</text> </paragraph> <paragraph num="(4)"> <text>Signed by the proper claimant.</text> </paragraph> </paragraph> <paragraph num="F."> <text>An authorized claiming location may pay a prize or a portion of a prize after it determines that:</text> <paragraph num="(1)"> <text>The winner, ticket, and any required claim form meet the requirements of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>All required documents have been properly completed and submitted; and</text> </paragraph> <paragraph num="(3)"> <text>No State obligation is due or unpaid.</text> </paragraph> </paragraph> <paragraph num="G."> <text>An authorized claiming location shall:</text> <paragraph num="(1)"> <text>Retain the original of any required claim form submitted;</text> </paragraph> <paragraph num="(2)"> <text>Give a copy of the claim form to the claimant as a receipt;</text> </paragraph> <paragraph num="(3)"> <text>Collect from the winner the ticket being claimed; and</text> </paragraph> <paragraph num="(4)"> <text>Submit the claim form to the Agency within 10 workdays of paying the prize.</text> </paragraph> </paragraph> <paragraph num="H."> <text>An authorized claiming location shall:</text> <paragraph num="(1)"> <text>Provide prize payment consistent with this section;</text> </paragraph> <paragraph num="(2)"> <text>If a retailer, pay the winner by coin, currency, or check the amount of a prize up to the amount authorized, as determined by the Agency; and</text> </paragraph> <paragraph num="(3)"> <text>If an Agency claim center:</text> <paragraph num="(a)"> <text>Pay the winner, by check, the amount of a prize up to the amount authorized, as determined by the Agency; or</text> </paragraph> <paragraph num="(b)"> <text>Provide for payment by the Comptroller of Maryland or other appropriate office.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>If an individual who submits a winning ticket is included on the voluntary exclusion list maintained under COMAR 36.01.03.04, the Agency shall:</text> <paragraph num="(1)"> <text>Use any prize winnings to pay any State obligation; and</text> </paragraph> <paragraph num="(2)"> <text>Pay the remainder of the prize to the unclaimed prize fund under COMAR 36.02 07.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Ticket Validation — All Tickets."> <paragraph num="A."> <text>For a winning ticket submitted to any authorized claiming location to be validated, all of the conditions of this regulation shall be met.</text> </paragraph> <paragraph num="B."> <text>The player shall abide by and follow all regulations in this subtitle pertaining to game tickets.</text> </paragraph> <paragraph num="C."> <text>The ticket:</text> <paragraph num="(1)"> <text>Shall be intact;</text> </paragraph> <paragraph num="(2)"> <text>Shall be properly registered and printed clearly so the Agency can effectively process the game ticket;</text> </paragraph> <paragraph num="(3)"> <text>Shall be signed by the owner of the ticket;</text> </paragraph> <paragraph num="(4)"> <text>May not have been previously paid or cancelled;</text> </paragraph> <paragraph num="(5)"> <text>May not have been previously submitted for cashing or claiming, unless the previous submission:</text> <paragraph num="(a)"> <text>Used the same Social Security number;</text> </paragraph> <paragraph num="(b)"> <text>Was at a retailer location; and</text> </paragraph> <paragraph num="(c)"> <text>Resulted in a terminal message directing that the ticket be submitted at an Agency claim center;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Shall contain no:</text> <paragraph num="(a)"> <text>Mutilation;</text> </paragraph> <paragraph num="(b)"> <text>Alteration;</text> </paragraph> <paragraph num="(c)"> <text>Reconstruction;</text> </paragraph> <paragraph num="(d)"> <text>Counterfeiting;</text> </paragraph> <paragraph num="(e)"> <text>Duplication; or</text> </paragraph> <paragraph num="(f)"> <text>Tampering in any manner; and</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Shall pass all other confidential security checks of the Agency.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Ticket Validation — Draw Tickets."> <paragraph num="A."> <text>In addition to the requirements of Regulation .07 of this chapter, for a winning draw ticket submitted to the Agency to be validated, the draw ticket shall satisfy all of the conditions of this regulation.</text> </paragraph> <paragraph num="B."> <text>A draw game ticket with that exact date and ticket data may not have been previously paid.</text> </paragraph> <paragraph num="C."> <text>The draw ticket shall have been:</text> <paragraph num="(1)"> <text>Sold for the specific drawing;</text> </paragraph> <paragraph num="(2)"> <text>Sold in the designated period prior to the specific drawing; and</text> </paragraph> <paragraph num="(3)"> <text>Generated:</text> <paragraph num="(a)"> <text>From an Agency ticket terminal or PAT; and</text> </paragraph> <paragraph num="(b)"> <text>By the Agency through a licensed retailer or as a subscription entry.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>The draw ticket validation number shall:</text> <paragraph num="(1)"> <text>Be submitted in its entirety; and</text> </paragraph> <paragraph num="(2)"> <text>Correspond, using the computer validation file, to the:</text> <paragraph num="(a)"> <text>Selected playable symbols or numbers; and</text> </paragraph> <paragraph num="(b)"> <text>Date or date range printed on the game ticket.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>The ticket data on the draw ticket shall:</text> <paragraph num="(1)"> <text>Be recorded in the Agency’s central computer system before the drawing; and</text> </paragraph> <paragraph num="(2)"> <text>Match the computer record in every respect.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The official file of winning draw tickets shall match the information that appears on the winning draw ticket, including the:</text> <paragraph num="(1)"> <text>Playable symbols or numbers;</text> </paragraph> <paragraph num="(2)"> <text>Validation number data; and</text> </paragraph> <paragraph num="(3)"> <text>Date of the drawing.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Ticket Validation — Fast Play Game Tickets."> <paragraph num="A."> <text>In addition to the requirements of Regulation .07 of this chapter, for a winning Fast Play game ticket submitted to the Agency to be validated, the Fast Play game ticket shall satisfy all of the conditions of this regulation.</text> </paragraph> <paragraph num="B."> <text>The Fast Play game ticket purchased with that exact date and time and ticket data may not have been previously paid.</text> </paragraph> <paragraph num="C."> <text>The Fast Play game ticket shall have been generated:</text> <paragraph num="(1)"> <text>From an Agency ticket terminal or PAT; and</text> </paragraph> <paragraph num="(2)"> <text>By the Agency through a licensed retailer.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Fast Play game ticket validation number shall:</text> <paragraph num="(1)"> <text>Be submitted in its entirety; and</text> </paragraph> <paragraph num="(2)"> <text>Correspond, using the computer validation file, to the:</text> <paragraph num="(a)"> <text>Printed symbols or numbers on the ticket; and</text> </paragraph> <paragraph num="(b)"> <text>Date and time printed on the game ticket.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>The ticket data on the Fast Play game ticket shall:</text> <paragraph num="(1)"> <text>Be recorded in the Agency’s central computer system; and</text> </paragraph> <paragraph num="(2)"> <text>Match the computer record in every respect.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The ticket validation number and date of sale shall match in their entirety and correspond to the information stored on the Agency’s central computer system.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Ticket Validation — Instant Tickets."> <text>In addition to the requirements of Regulation .07 of this chapter, for a winning instant ticket submitted to the Agency to be validated, the instant ticket's validation number shall match in its entirety and shall correspond to the information stored on magnetic tape or disk in the Agency's host computer system.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Invalid or Defective Game Tickets."> <paragraph num="A."> <text>A game ticket that does not pass the validation requirements of this chapter is void and the prize may not be paid.</text> </paragraph> <paragraph num="B."> <text>If a ticket cannot be validated:</text> <paragraph num="(1)"> <text>The claim shall be denied;</text> </paragraph> <paragraph num="(2)"> <text>The prize may not be paid; and</text> </paragraph> <paragraph num="(3)"> <text>The Agency shall promptly notify the claimant.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a player purchased a defective game ticket and the Director decides to make an adjustment, the sole remedy shall be replacement of the defective game ticket with a current game ticket of equivalent sales price from the same game type.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Payment of a Lottery Prize."> <paragraph num="A."> <text>All Tickets and Subscriptions.</text> <paragraph num="(1)"> <text>A player shall abide by and follow all regulations pertaining to a game and a ticket.</text> </paragraph> <paragraph num="(2)"> <text>If all requirements of this subtitle are met, upon successful completion of the ticket validation process and the claiming and perfecting process, the winner shall be paid the prize.</text> </paragraph> <paragraph num="(3)"> <text>Person to Be Paid.</text> <paragraph num="(a)"> <text>As long as the requirements of all other regulations in this subtitle are met, regardless of the name submitted on a claim form, the Agency shall pay the name appearing in the designated space on the back of the ticket or the name in which a subscription is held or, in the case of a group subscription, the Agency may pay the group manager.</text> </paragraph> <paragraph num="(b)"> <text>The Agency may require that a claim form be submitted by and in the name of the person appearing on the back of the ticket or in which the subscription is held.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If there is a conflict between the information on the claim form and information on any other document, the Agency may rely on the claim form after the ticket or subscription for which the claim form was submitted to the Agency has been validated as a winning ticket or subscription.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Draw Game Ticket. The owner of a winning draw game ticket:</text> <paragraph num="(1)"> <text>Shall win as specified in the consumer game information for that game; and</text> </paragraph> <paragraph num="(2)"> <text>Shall be paid the appropriate amount won.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Instant Game Ticket. The owner of a winning instant game ticket:</text> <paragraph num="(1)"> <text>Shall win as specified in the game rules printed on the instant ticket; and</text> </paragraph> <paragraph num="(2)"> <text>Shall be paid the appropriate amount won.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Subscription Prizes.</text> <paragraph num="(1)"> <text>As determined by the Agency for subscription prize winnings, the Agency may:</text> <paragraph num="(a)"> <text>Accumulate the prize winnings up to an amount determined by the Director and pay them within a reasonable time after such amount is accumulated or the end of the subscription period after all claims on the subscription are validated;</text> </paragraph> <paragraph num="(b)"> <text>Send certain prize amounts without requiring the winner to submit a claim form;</text> </paragraph> <paragraph num="(c)"> <text>Require certain documentation to pay a prize;</text> </paragraph> <paragraph num="(d)"> <text>Send certain prize amounts only after the winner submits a claim form and certain documentation; and</text> </paragraph> <paragraph num="(e)"> <text>Pay a prize under a minimal amount by check or in another manner.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a subscription prize payment that is sent to a winner, the Agency or the Comptroller of Maryland shall send payment within a reasonable time after:</text> <paragraph num="(a)"> <text>A claim on the subscription is validated; or</text> </paragraph> <paragraph num="(b)"> <text>All claims on the subscription are validated.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Jackpot Prize Winner on a Subscription.</text> <paragraph num="(a)"> <text>A player who wins a jackpot on a subscription shall complete a claim form at the Agency’s Headquarters and complete the claiming process as required by the Agency.</text> </paragraph> <paragraph num="(b)"> <text>The Agency shall forward a payment to the Comptroller of Maryland for payment.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Any member of the Group who is not eligible to purchase a lottery ticket from the Agency forfeits the right to any portion of the prize won by the group, and the ineligible group member’s portion of that prize shall be paid to the unclaimed prize fund.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Fast Play Game Ticket. The owner of a winning Fast Play game ticket shall:</text> <paragraph num="(1)"> <text>Win as specified in the consumer game information for that game; and</text> </paragraph> <paragraph num="(2)"> <text>Be paid the appropriate amount won.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Prizes."> <paragraph num="A."> <text>Pari-Mutuel Prizes.</text> <paragraph num="(1)"> <text>As determined by the Director, a prize may be paid on a pari-mutuel basis if certain levels of prize liability are reached.</text> </paragraph> <paragraph num="(2)"> <text>As determined by the Director, a prize may be paid on a pari-mutuel basis within one prize level, or across designated prize levels.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Jackpot Draw Game Prizes.</text> <paragraph num="(1)"> <text>In a jackpot draw game drawing, if no winning game ticket qualifies for the first prize category, the amount, portion, or percentage allocated for the first prize that is to be added to the next jackpot shall be determined by the Director.</text> </paragraph> <paragraph num="(2)"> <text>Prize money allocated to a jackpot game’s first prize category shall be divided equally by the number of purchased game plays winning a first prize.</text> </paragraph> <paragraph num="(3)"> <text>Prize money allocated to, or prize amounts determined for, all other prize categories shall be determined by the Director.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The probability or odds of winning governs the determination of when a prize is won and a prize is paid.</text> </paragraph> <paragraph num="D."> <text>Progressive Jackpot Games. The Agency may offer progressive jackpot Fast Play games.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Discharge of Agency upon Payment."> <paragraph num="A."> <text>Definition.</text> <paragraph num="(1)"> <text>In this regulation, the following term has the meaning indicated.</text> </paragraph> <paragraph num="(2)"> <text>Term Defined. “The State” means the State of Maryland, the Agency, and the Commission and their agents, officers, officials, employees, and representatives.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The State shall be discharged from all liability, including all liability for the payment of a prize, and any further liability for payment of the prize, upon payment of a prize or any installment of the prize, including payment to a winner who is a minor, a disabled person, or deceased.</text> </paragraph> <paragraph num="C."> <text>The discharge of liability under this regulation applies to the holder of a winning lottery ticket or subscription paid in accordance with:</text> <paragraph num="(1)"> <text>The information set forth on the ticket or subscription’s claim form;</text> </paragraph> <paragraph num="(2)"> <text>An order from a court of competent jurisdiction; or</text> </paragraph> <paragraph num="(3)"> <text>This chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Time of Payment."> <paragraph num="A."> <text>The Director may delay payment of a prize if a question arises regarding a purchaser, claimant, claim, ticket, prize, any other matter, or a change of circumstances regarding any of them.</text> </paragraph> <paragraph num="B."> <text>The Director may petition a court of competent jurisdiction for instructions and resolution of such a controversy.</text> </paragraph> <paragraph num="C."> <text>Unless the Director delays payment of a prize under §A of this regulation, the Agency shall pay a prize within a reasonable time after the claim is submitted, validated, and perfected.</text> </paragraph> <paragraph num="D."> <text>If a prize requires annual installment payments:</text> <paragraph num="(1)"> <text>The date of the first installment payment shall be within a reasonable time after:</text> <paragraph num="(a)"> <text>The prize is determined; and</text> </paragraph> <paragraph num="(b)"> <text>The claim is submitted to the Agency, validated, and perfected; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Subsequent annual installments shall be made approximately on the date the Agency assigns to the winner in accordance with the type of prize awarded.</text> </paragraph> </paragraph> <paragraph num="E."> <text>All delayed payments shall:</text> <paragraph num="(1)"> <text>Be brought up to date immediately upon the Director's confirmation of the validity of the claim; and</text> </paragraph> <paragraph num="(2)"> <text>If an annuity, continue to be paid on each original anniversary date and thereafter for the annuity period.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Claims on Behalf of a Minor."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Adult” has the meaning stated in Estates and Trusts Article, §13-301, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Conservator” has the meaning stated in Estates and Trusts Article, §13-301, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(c)"> <text>“Financial institution” has the meaning stated in Estates and Trusts Article, §13-301, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(d)"> <text>“Guardian” has the meaning stated in Estates and Trusts Article, §13-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(e)"> <text>“Member of the minor's family” has the meaning stated in Estates and Trusts Article, §13-301, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(f)"> <text>“Minor” has the meaning stated in Estates and Trusts Article, §13-101, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Claims Submitted.</text> <paragraph num="(1)"> <text>If a winning ticket owner is a minor, a guardian, conservator, parent, adult member of the minor’s family, or other proper representative shall complete the claim form for the minor.</text> </paragraph> <paragraph num="(2)"> <text>If the Director determines that the person who completed the claim form on behalf of the minor who is a winner is not the proper person to claim the prize on the minor’s behalf, the Director may:</text> <paragraph num="(a)"> <text>Require a person who the Director determines is a proper person to claim the minor’s prize on the minor’s behalf to complete a new claim form; and</text> </paragraph> <paragraph num="(b)"> <text>Determine the appropriate information to be included on the claim form to protect the Agency and the public interest.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the individual entitled to a prize is a minor and the prize is $5,000 or less, the Director may pay the prize by a check or draft made payable to the order of the minor and delivered to:</text> <paragraph num="(a)"> <text>An adult member of the minor's family; or</text> </paragraph> <paragraph num="(b)"> <text>A conservator or guardian of the minor's property.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the individual entitled to a prize is a minor and the prize is more than $5,000, the Director may pay the prize by depositing the amount of the prize in any financial institution to the credit of either of the following as custodian for the minor:</text> <paragraph num="(a)"> <text>An adult member of the minor's family; or</text> </paragraph> <paragraph num="(b)"> <text>A conservator or guardian of the minor's property.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The Director may petition a court of competent jurisdiction to request a determination for the payment of any prize that is, or may become, due to a minor.</text> </paragraph> <paragraph num="(6)"> <text>If a court of competent jurisdiction orders that payments due and to become due from the Agency to a minor be paid directly to a specified person, the Agency shall pay the prize according to the order of that court.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Claims on Behalf of an Entity."> <paragraph num="A."> <text>This regulation applies where a prize is won by an entity other than an individual or group of individuals.</text> </paragraph> <paragraph num="B."> <text>When the name of an entity is entered on a ticket back as the prize winner, for the entity to be paid the prize, the provisions of this regulation shall apply.</text> </paragraph> <paragraph num="C."> <text>If the entity is formed in Maryland and is a type of entity required to file documents with the Maryland State Department of Assessments and Taxation, the entity shall be in good standing with that Department.</text> </paragraph> <paragraph num="D."> <text>As part of the documents to be submitted to the Agency at claiming, the entity shall submit a valid copy of all formation documents, even if they are not required to be filed with the Maryland State Department of Assessments and Taxation.</text> </paragraph> <paragraph num="E."> <text>Required formation documents include articles of incorporation, trust terms, partnership agreement, completed IRS Form SS-4 and other documents providing the EIN number, certificates issued by the Secretary of State, and authority given to an individual acting on behalf of the entity.</text> </paragraph> <paragraph num="F."> <text>The name of the entity shall be identical to the name of the entity as noted in the legal documents, including terms such as “the”, “and”, and “&”.</text> </paragraph> <paragraph num="G."> <text>The name and signature of the authorized representative shall be identical to the name noted in the legal documents.</text> </paragraph> <paragraph num="H."> <text>The entity shall submit to the Agency a copy of all documents indicating that the individual completing the claim form has the authority to collect the prize on behalf of and as the representative of the entity, including:</text> <paragraph num="(1)"> <text>Minutes of a corporation authorizing a named individual to submit the ticket and collect the prize on behalf of the corporation; or</text> </paragraph> <paragraph num="(2)"> <text>Authority or affidavit of the trust.</text> </paragraph> </paragraph> <paragraph num="I."> <text>The name and signature of the authorized representative shall be identical to the name noted in the legal documents.</text> </paragraph> <paragraph num="J."> <text>The individual who submits the documentation shall submit proof that the individual is the individual authorized by the entity to collect the prize on behalf of the entity.</text> </paragraph> <paragraph num="K."> <text>The signature of an entity shall consist of the name of the entity followed by the name of the individual authorized representative, and the representative’s capacity, which shall be similar to the way it is set out in the authority provision in the legal documents.</text> </paragraph> <paragraph num="L."> <text>The individual who signs on behalf of an entity shall submit an affidavit that each owner and each beneficiary of the entity is not a person prohibited by COMAR 36.01.01.05 from being paid a prize.</text> </paragraph> <paragraph num="M."> <text>If the Director determines that the individual who completed the claim form on behalf of the entity that is a winner is not the proper individual to claim the prize on the entity’s behalf, the Director may:</text> <paragraph num="(1)"> <text>Require an individual who the Director determines is a proper individual to claim the entity’s prize on the entity’s behalf to complete a new claim form; and</text> </paragraph> <paragraph num="(2)"> <text>Determine the appropriate information to be included on the claim form to protect the Agency and the public interest.</text> </paragraph> </paragraph> <paragraph num="N."> <text>The Director may rely wholly on:</text> <paragraph num="(1)"> <text>A certified copy submitted to the Agency of a court of competent jurisdiction's appointment of an individual representative for the entity; or</text> </paragraph> <paragraph num="(2)"> <text>Any other evidence that an individual is entitled to the payment of prize on behalf of the entity.</text> </paragraph> </paragraph> <paragraph num="O."> <text>The Director may petition a court of competent jurisdiction to request a determination about the payment of any prize which is or may become due to an entity.</text> </paragraph> <paragraph num="P."> <text>If a court of competent jurisdiction orders that a prize due and to become due from the Agency to an entity be paid directly to a specified individual, the Agency shall pay the prize according to the order of the court.</text> </paragraph> <paragraph num="Q."> <text>The entity shall be taxed at the highest withholding tax rate allowable.</text> </paragraph> <paragraph num="R."> <text>The Agency shall put into its system the entity’s taxpayer identification number to determine if the entity owes any State obligation.</text> </paragraph> <paragraph num="S."> <text>If the entity owes a State obligation, the amount of the State obligation shall be withheld from the prize.</text> </paragraph> <paragraph num="T."> <text>For prizes over $25,000 the Agency shall submit all documentation to the Comptroller of Maryland for processing.</text> </paragraph> <paragraph num="U."> <text>Documents Submitted to the Agency.</text> <paragraph num="(1)"> <text>The Agency shall retain a copy of all documents submitted to the Agency by the entity and the entity’s representative.</text> </paragraph> <paragraph num="(2)"> <text>A document submitted by the entity or the entity’s representative is considered a public record.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Payments to Disabled Persons."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Conservator” has the meaning stated in Estates and Trusts Article, §13-301, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Disabled person” has the meaning stated in Estates and Trusts Article, §13-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(c)"> <text>“Guardian” has the meaning stated in Estates and Trusts Article, §13-101, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>If a prize winner is a disabled person, a guardian, conservator, parent, adult member of the person’s household, or other proper representative shall complete the claim form for the disabled person.</text> </paragraph> <paragraph num="C."> <text>If the Director determines that the individual who completed the claim form on behalf of the disabled person is not the proper person to claim the prize on the disabled person’s behalf, the Director may:</text> <paragraph num="(1)"> <text>Require a new claim form to be completed by a person the Director determines is a proper person to claim the disabled person’s prize on the disabled person’s behalf; and</text> </paragraph> <paragraph num="(2)"> <text>Determine the appropriate information to be included on the claim form to protect the Agency and the public interest.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Director may require the individual who signs the claim form on behalf of a disabled person to submit an affidavit that the disabled person is not a person prohibited by COMAR 36.01.01.05 from being paid a prize.</text> </paragraph> <paragraph num="E."> <text>The Director may rely wholly on:</text> <paragraph num="(1)"> <text>A certified copy submitted to the Agency of a court of competent jurisdiction's appointment of a guardian or conservator of the disabled person; or</text> </paragraph> <paragraph num="(2)"> <text>Any other evidence that a person is entitled to the payment of a prize on behalf of the disabled person.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Director may petition a court of competent jurisdiction to request a determination for the payment of any prize which is, or may become, due to a winner who is a disabled person.</text> </paragraph> <paragraph num="G."> <text>If a court of competent jurisdiction orders that payments due or to become due to a winner who is a disabled person be paid to a specified person, the Agency shall pay the prize according to the order of the court.</text> </paragraph> <paragraph num="H."> <text>Unless permitted by federal law and authorized by the Director, the Agency may not accelerate the payment of a prize beyond its normal dates of payment to a winner who is a disabled person.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Prizes Payable After Owner’s Death."> <paragraph num="A."> <text>This regulation applies when a prize or portion of a prize is payable after a prize winner has died.</text> </paragraph> <paragraph num="B."> <text>A prize or a portion of a prize which remains unpaid at the time of a prize winner's death shall be payable to:</text> <paragraph num="(1)"> <text>The beneficiary designated on the deceased winner's claim form; or</text> </paragraph> <paragraph num="(2)"> <text>If no beneficiary was designated on the deceased winner’s claim form, the winner’s estate or the duly qualified personal representative of the winner's estate.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Director may rely wholly on:</text> <paragraph num="(1)"> <text>A certified copy submitted to the Agency of a court of competent jurisdiction's appointment of a personal representative for the deceased winner’s estate; or</text> </paragraph> <paragraph num="(2)"> <text>Any other evidence that a person is entitled to the payment of a prize on behalf of the deceased person.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Director may require the individual who signs on behalf of a deceased winner to submit an affidavit that the deceased prize winner was not prohibited by COMAR 36.01.01.05 from being paid a prize.</text> </paragraph> <paragraph num="E."> <text>The Director may petition a court of competent jurisdiction to request a determination for the payment of any prize which is or may become due to a deceased winner.</text> </paragraph> <paragraph num="F."> <text>If a court of competent jurisdiction directs that a prize due and to become due from the Agency to a deceased winner be paid directly to a specified person, the Agency shall pay the prize according to the order of the court.</text> </paragraph> <paragraph num="G."> <text>Unless permitted by federal law and authorized by the Director, the Agency may not accelerate the payment of a prize beyond its normal dates of payment after a winner’s death.</text> </paragraph> <paragraph num="H."> <text>The person to receive payment on behalf of the deceased person shall submit to the Agency a complete and notarized change of beneficiary form and sufficient information to identify the claimant, such as:</text> <paragraph num="(1)"> <text>The person’s Social Security number; and</text> </paragraph> <paragraph num="(2)"> <text>Proof of the Social Security number.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Payments due under this regulation shall begin once the Director is satisfied that the payment is lawful and proper.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-101, 9-103, 9-104, 9-109—9-111, 9-113, and 9-122—9-124, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2013 (40:9 Md. R. 790)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B, C amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06C, D amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11B amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12B amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15B amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18H amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective December 2, 2019 (46:24 Md. R. 1104)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective September 21, 2020 (47:19 Md. R. 850)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective September 21, 2020 (47:19 Md. R. 850)</annotation> </annotations> </chapter> <chapter num="07" heading="Unclaimed Lottery Prizes"> <regulation prefix="Regulation" num=".01" heading="Prize Claiming Period."> <paragraph num="A."> <text>Unclaimed Monetary Award.</text> <paragraph num="(1)"> <text>The Director shall retain an unclaimed monetary award for 182 days after:</text> <paragraph num="(a)"> <text>The drawing;</text> </paragraph> <paragraph num="(b)"> <text>The date the Fast Play game ticket was sold; or</text> </paragraph> <paragraph num="(c)"> <text>The announced end of game date for an instant ticket.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If no claim for a monetary award is made within 182 days, the Director shall transfer the monetary award to the Unclaimed Prize Fund.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Unclaimed Merchandise or Experiential Award.</text> <paragraph num="(1)"> <text>The Director shall designate the time period for retaining unclaimed merchandise or an experiential award.</text> </paragraph> <paragraph num="(2)"> <text>If no claim is made for merchandise or an experiential award within the time period designated by the Director, the Director shall designate how the Agency will handle the merchandise or experiential award consistent with any Agency contract or license agreement for the merchandise or experiential award.</text> </paragraph> <paragraph num="(3)"> <text>If no time period has been designated by the Director for retaining unclaimed merchandise or an experiential award, the period for claiming the award may not exceed 182 days.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Unclaimed Prizes Held Other Than 182 Days. The Director may hold a prize in a game or drawing for a period of time other than 182 days if:</text> <paragraph num="(1)"> <text>The game is not a weekly, daily, or multi jurisdictional lottery drawing;</text> </paragraph> <paragraph num="(2)"> <text>The Director designated the game as a bonus game or drawing; and</text> </paragraph> <paragraph num="(3)"> <text>The Director designates the claiming period to be a time other than 182 days.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Unclaimed Prize Fund."> <paragraph num="A."> <text>Prize money from a winning ticket that has not been claimed within the claiming period for that game shall accrue to the Unclaimed Prize Fund.</text> </paragraph> <paragraph num="B."> <text>The Director may institute bonus prizes using funds from the Unclaimed Prize Fund.</text> </paragraph> <paragraph num="C."> <text>Bonus Prizes.</text> <paragraph num="(1)"> <text>The bonus prizes shall be determined by the Director.</text> </paragraph> <paragraph num="(2)"> <text>The Director may change the number of bonus prize categories and the allocation of prize money among the prize categories.</text> </paragraph> <paragraph num="(3)"> <text>The Agency shall announce any change to the number of bonus prize categories and to the allocation of prize money among the prize categories.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-103, 9-104, 9-109—9-111, and 9-122, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2013 (40:9 Md. R. 790)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective December 2, 2019 (46:24 Md. R. 1104)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A, C amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective May 26, 2025 (52:10 Md. R. 439)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D, E amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> </annotations> </chapter> <chapter num="08" heading="Voluntary Assignment of Monetary Prizes"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Assignee” means a person who:</text> <paragraph num="(a)"> <text>Enters into a contract for voluntary assignment of a lottery prize payment;</text> </paragraph> <paragraph num="(b)"> <text>Obtains a court order for voluntary assignment of the lottery prize winner’s lottery prize payment in whole or in part; and</text> </paragraph> <paragraph num="(c)"> <text>Becomes a lottery prize winner.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Assignee affidavit” means a sworn statement of an assignee.</text> </paragraph> <paragraph num="(3)"> <text>“Assignment” means court-ordered payment of a lottery prize to an assignee or subsequent assignee and may include a divorce decree.</text> </paragraph> <paragraph num="(4)"> <text>“Assignment Law” means State Government Article, §9-122(b), Annotated Code of Maryland, and this chapter.</text> </paragraph> <paragraph num="(5)"> <text>“Assignor” means:</text> <paragraph num="(a)"> <text>A lottery prize winner who makes the assignment of a lottery prize payment in whole or in part to an assignee or a subsequent assignee; or</text> </paragraph> <paragraph num="(b)"> <text>An assignee or subsequent assignee who seeks a court order to reassign the same or related lottery prize payment that was previously assigned by court order.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Assignor affidavit” means a sworn statement made under oath before a notary public by:</text> <paragraph num="(a)"> <text>A lottery prize winner who seeks to assign the lottery prize payment; or</text> </paragraph> <paragraph num="(b)"> <text>A person who was an assignee.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Contract of assignment” means the written instrument that is used to execute an assignment of a lottery prize payment.</text> </paragraph> <paragraph num="(8)"> <text>“Court” means the circuit court in the county where the Agency’s headquarters is located.</text> </paragraph> <paragraph num="(9)"> <text>“Lottery prize payment” means a monetary prize that the Agency pays in installments over time that is an annuity.</text> </paragraph> <paragraph num="(10)"> <text>“Lottery prize winner” means a person who wins a lottery prize payment.</text> </paragraph> <paragraph num="(11)"> <text>“Petition" means a document filed in court requesting the assignment of a lottery prize payment.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="General."> <paragraph num="A."> <text>An assignment of a lottery prize payment shall be conducted in accordance with the Assignment Law.</text> </paragraph> <paragraph num="B."> <text>The Agency shall treat an assignee as a lottery prize winner.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Petition for Assignment."> <text>A person seeking to assign a lottery prize payment may file a petition with the court for voluntary assignment of all or part of a lottery prize payment under the Assignment Law.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Required Submissions."> <paragraph num="A."> <text>An assignor and assignee shall each file an affidavit with the court as required under the Assignment Law.</text> </paragraph> <paragraph num="B."> <text>The assignor and assignee shall provide the Agency with the written notice required under the Assignment Law.</text> </paragraph> <paragraph num="C."> <text>Death of Joint Owner. If an owner of a lottery annuity dies after winning the lottery prize, a surviving joint owner shall submit to the Agency:</text> <paragraph num="(1)"> <text>A certified copy of the death certificate;</text> </paragraph> <paragraph num="(2)"> <text>Written notice required under §B of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Fees."> <paragraph num="A."> <text>An assignor, assignee or both shall pay an administrative fee of $2,000 to the Agency to process a request for a voluntary assignment.</text> </paragraph> <paragraph num="B."> <text>An assignor, assignee or both shall pay the administrative fee required in §A of this regulation each time any portion of a lottery prize payment is voluntarily assigned or reassigned.</text> </paragraph> <paragraph num="C."> <text>An assignor, assignee or both shall pay the fees due to the Agency by certified check or money order at the same time that the petition is submitted to the Agency.</text> </paragraph> <paragraph num="D."> <text>The fees established by this regulation may not be waived.</text> </paragraph> <paragraph num="E."> <text>The fees paid under this regulation are nonrefundable.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Special Requirements."> <text>An assignor and an assignee shall provide written documentation to the Agency and the court that the assignment does not include:</text> <paragraph num="A."> <text>Child support payment;</text> </paragraph> <paragraph num="B."> <text>Criminal restitution;</text> </paragraph> <paragraph num="C."> <text>Bankruptcy; or</text> </paragraph> <paragraph num="D."> <text>Any other debt, claim, or liability that may be owed to the State of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Requirements for Court Order."> <paragraph num="A."> <text>Preparation of the Proposed Court Order. An assignee seeking assignment shall:</text> <paragraph num="(1)"> <text>Prepare the proposed court order;</text> </paragraph> <paragraph num="(2)"> <text>Ensure that the court order contains the information required in the Assignment Law;</text> </paragraph> <paragraph num="(3)"> <text>Submit the proposed court order to the Agency; and</text> </paragraph> <paragraph num="(4)"> <text>Follow the procedures set out in the Assignment Law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Final Court Order.</text> <paragraph num="(1)"> <text>Based upon the Agency’s lottery prize payment installment due dates, the assignor and assignee shall submit the final court order to the Agency:</text> <paragraph num="(a)"> <text>For lottery prize payments due in August, the court order shall be received by the Agency by June 1 of that year;</text> </paragraph> <paragraph num="(b)"> <text>For lottery prize payments due in November, the court order shall be received by the Agency by September 1 of that year;</text> </paragraph> <paragraph num="(c)"> <text>For lottery prize payments due in February, the court order shall be received by the Agency by December 1 of the preceding year; and</text> </paragraph> <paragraph num="(d)"> <text>For lottery prize payments due in May, the court order shall be received by the Agency by March 1 of that year.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The court orders specified in §B(1) of this regulation shall be certified.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Procedure Article, §11-618; Family Law Article, §10-113.1; State Finance and Procurement Article, §3-307;State Government Article, §§9-109, 9-110, and 9-122, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2013 (40:9 Md. R. 790)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective June 23, 2025 (52:12 599)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective June 23, 2025 (52:12 599)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective June 23, 2025 (52:12 599)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective June 23, 2025 (52:12 599)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective June 23, 2025 (52:12 599)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective June 23, 2025 (52:12 599)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective June 23, 2025 (52:12 599)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective June 23, 2025 (52:12 599)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 repealed effective June 23, 2025 (52:12 599)</annotation> </annotations> </chapter> <chapter num="09" heading="Instant Ticket Lottery Machines"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This chapter applies to a retailer that is a veterans’ services organization and applies for and sells tickets from instant ticket lottery machines.</text> </paragraph> <paragraph num="B."> <text>In addition to the requirements of this chapter, and State Government Article, §9-112, Annotated Code of Maryland, a veterans’ services organization licensed to sell tickets from an instant ticket lottery machine shall meet the requirements of this subtitle for a retailer licensed by the Agency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Cashout voucher” means a printed slip of paper with a code indicating the amount of money payable to the individual who presents the ticket to an ITLM licensee.</text> </paragraph> <paragraph num="(2)"> <text>“Contractor” or “Agency’s contractor” means a company selected by the Agency for the design, development, installation, implementation, operation, and maintenance of the Agency’s Instant Ticket Lottery Machine system.</text> </paragraph> <paragraph num="(3)"> <text>“Instant ticket lottery machine” or “ITLM” means a machine or other device provided to a retailer through the Agency’s contractor as required under State Government Article § 9-112, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“ITLM Licensee” means the holder of a special license to operate instant ticket lottery machines.</text> </paragraph> <paragraph num="(5)"> <text>“ITLM ticket” means a preprinted ticket purchased from an instant ticket lottery machine.</text> </paragraph> <paragraph num="(6)"> <text>“Veterans’ facility” means the building where an ITLM licensee places instant ticket lottery machines.</text> </paragraph> <paragraph num="(7)"> <text>“Veteran’s services organization” means an organization that is:</text> <paragraph num="(a)"> <text>Tax exempt and organized as a veterans’ organization under 501(c)(19) or 501(c)(4) of the United States Internal Revenue Code; and</text> </paragraph> <paragraph num="(b)"> <text>Located in:</text> <paragraph num="(i)"> <text>Allegany County;</text> </paragraph> <paragraph num="(ii)"> <text>Anne Arundel County;</text> </paragraph> <paragraph num="(iii)"> <text>Baltimore City;</text> </paragraph> <paragraph num="(iv)"> <text>Baltimore County;</text> </paragraph> <paragraph num="(v)"> <text>Calvert County;</text> </paragraph> <paragraph num="(vi)"> <text>Carroll County;</text> </paragraph> <paragraph num="(vii)"> <text>Charles County;</text> </paragraph> <paragraph num="(viii)"> <text>Frederick County;</text> </paragraph> <paragraph num="(ix)"> <text>Garrett County;</text> </paragraph> <paragraph num="(x)"> <text>Harford County;</text> </paragraph> <paragraph num="(xi)"> <text>Howard County;</text> </paragraph> <paragraph num="(xii)"> <text>Montgomery County;</text> </paragraph> <paragraph num="(xiii)"> <text>Prince George’s County;</text> </paragraph> <paragraph num="(xiv)"> <text>Saint Mary’s County; or</text> </paragraph> <paragraph num="(xv)"> <text>Washington County.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="ITLM Licensee Requirements."> <paragraph num="A."> <text>A veterans’ services organization may not operate instant ticket lottery machines without a special license.</text> </paragraph> <paragraph num="B."> <text>A veterans’ services organization may apply for a special license to operate up to 5 instant ticket lottery machines.</text> </paragraph> <paragraph num="C."> <text>An ITLM licensee shall locate the instant ticket lottery machines in the veterans’ facility within its principal meeting hall in the county in which the veterans’ organization is located.</text> </paragraph> <paragraph num="E."> <text>The Agency may restrict the permissible location within a veterans’ facility.</text> </paragraph> <paragraph num="F."> <text>An ITLM licensee shall enter into an agreement with the Agency that provides for the:</text> <paragraph num="(1)"> <text>Reimbursement of rental or lease fees for the instant ticket lottery machines;</text> </paragraph> <paragraph num="(2)"> <text>Power, utility, security, and HVAC needs of the instant ticket lottery machines; and</text> </paragraph> <paragraph num="(3)"> <text>Operation, maintenance, ITLM ticket retention, record keeping, and reporting requirements of the instant ticket lottery machines.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Instant Ticket Lottery Machine Play."> <paragraph num="A."> <text>An ITLM licensee may allow an individual who is 18 years old or older to play an instant ticket lottery machine.</text> </paragraph> <paragraph num="B."> <text>An ITLM licensee shall be:</text> <paragraph num="(1)"> <text>Knowledgeable about the games available in the instant ticket lottery machine; and</text> </paragraph> <paragraph num="(2)"> <text>Able to show players how to access help screens in the instant ticket lottery machine.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Payment of Prizes."> <paragraph num="A."> <text>A cashout voucher may be presented for payment only to:</text> <paragraph num="(1)"> <text>The ITLM licensee where the voucher was printed; or</text> </paragraph> <paragraph num="(2)"> <text>An Agency claim center as defined in COMAR 36.02.06.01B(1).</text> </paragraph> </paragraph> <paragraph num="B."> <text>Only a player who is an individual may present a cashout voucher for payment.</text> </paragraph> <paragraph num="C."> <text>The provisions of COMAR 36.02.06.15, COMAR 36.02.06.16, and COMAR 36.02.06.17 do not apply to claims for payment of a prize from an instant ticket lottery machine.</text> </paragraph> <paragraph num="D."> <text>Except as provided in §§A—C of this regulation, an ITLM licensee shall pay the individual holder of a cashout voucher in accordance with the claims procedures described in COMAR 36.02.06.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-112, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective August 12, 2014 (41:18 Md. R. 1008); adopted permanently effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective May 26, 2025 (52:10 Md. R. 439)</annotation> </annotations> </chapter> </subtitle> <subtitle num="03" heading="Gaming Provisions"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This subtitle applies to the State’s Video Lottery Terminal and Table Games Program.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In addition to the terms defined in State Government Article, §9-1A-01, Annotated Code of Maryland, which have the same meanings in this subtitle, in this subtitle and in COMAR 36.04 and 36.05 the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Beneficial owner” means a person that holds at least a 5 percent interest in an applicant for, or holder of, a license awarded or issued under this subtitle that is evidenced by:</text> <paragraph num="(a)"> <text>Record ownership;</text> </paragraph> <paragraph num="(b)"> <text>Stock or other ownership in an entity in a chain of parent and subsidiary, or affiliate entities, any one of which participates in the capital or profits of a video lottery facility operator licensee; or</text> </paragraph> <paragraph num="(c)"> <text>An interest that entitles a person to benefit substantially and is equivalent to ownership by an agreement, relationship, or other arrangement; or</text> </paragraph> <paragraph num="(d)"> <text>Compensation of a person, in any financial, legal, or beneficial form, if the compensation is based on revenue generated by a video lottery facility operator licensee, including a percentage share on, or any compensation that is tied to, the performance of a video lottery facility operator licensee’s operations.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Change in employment status” means, for an individual holding an unexpired video lottery employee license:</text> <paragraph num="(a)"> <text>Employment at a facility that is different from the facility at which the individual is currently employed;</text> </paragraph> <paragraph num="(b)"> <text>Re-employment at a facility at which the individual was previously employed; and</text> </paragraph> <paragraph num="(c)"> <text>Except for an unexpected termination from employment, a separation from employment with a facility.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Contractor” or “gaming contractor” means a person who contracts with a video lottery operation licensee to provide services as a Tier 1 or Tier 2 contractor that may include:</text> <paragraph num="(a)"> <text>Management or operation;</text> </paragraph> <paragraph num="(b)"> <text>Security;</text> </paragraph> <paragraph num="(c)"> <text>Service, maintenance, update, or repair of video lottery or table game equipment or associated equipment or software;</text> </paragraph> <paragraph num="(d)"> <text>Own or control a person described in §B(2)(a)—(c) of this regulation; or</text> </paragraph> <paragraph num="(e)"> <text>Any other service for which the Commission requires a contractor license.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Contractor — Tier 1” or “Tier 1 contractor” means a person, other than an employee of a video lottery operation licensee, who contracts with a video lottery operation licensee or other person to:</text> <paragraph num="(a)"> <text>Manage or operate a video lottery facility;</text> </paragraph> <paragraph num="(b)"> <text>Provide security for a video lottery facility;</text> </paragraph> <paragraph num="(c)"> <text>Perform service, maintenance, or repairs of a video lottery terminal, table game device, central operating system, associated equipment, or software;</text> </paragraph> <paragraph num="(d)"> <text>Provide junket enterprise services; or</text> </paragraph> <paragraph num="(e)"> <text>Provide any other service that is essential to operation of a video lottery facility that may involve contact with or access to:</text> <paragraph num="(i)"> <text>A central operating system;</text> </paragraph> <paragraph num="(ii)"> <text>A facility’s video lottery system;</text> </paragraph> <paragraph num="(iii)"> <text>A video lottery terminal; or</text> </paragraph> <paragraph num="(iv)"> <text>An electronic component of a table game.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Contractor — Tier 2” or “Tier 2 contractor” means a person, other than an employee of a video lottery operation licensee, who contracts with a video lottery operation licensee or other person to provide a service that is essential to the operation of a video lottery facility, but has no contact or access to:</text> <paragraph num="(a)"> <text>A central operating system;</text> </paragraph> <paragraph num="(b)"> <text>A facility’s video lottery system;</text> </paragraph> <paragraph num="(c)"> <text>A video lottery terminal; or</text> </paragraph> <paragraph num="(d)"> <text>An electronic component of a table game.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Controlling entity” means an entity that possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract, by beneficial ownership, or otherwise.</text> </paragraph> <paragraph num="(7)"> <text>“Counter check” means a negotiable instrument made available by a facility operator to a player for whom credit has been authorized under COMAR 36.03.10.24 of this chapter to effect:</text> <paragraph num="(a)"> <text>A short-term extension of credit to enable the player to take part in gaming; and</text> </paragraph> <paragraph num="(b)"> <text>The payment of the credit extended by the transfer of funds from the player’s bank account to the facility operator in accordance with a deposit schedule complying with COMAR 36.03.10.29.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>“Dealer” means an employee of a facility operator whose primary function is to directly operate and conduct table games.</text> </paragraph> <paragraph num="(9)"> <text>“Facility” means a video lottery facility.</text> </paragraph> <paragraph num="(10)"> <text>“Facility operator” means a person who operates or manages the operation of a video lottery facility.</text> </paragraph> <paragraph num="(11)"> <text>“Fill” means the distribution of gaming chips, coins, and plaques to a gaming table to replenish the table inventory.</text> </paragraph> <paragraph num="(12)"> <text>“Floorperson” means an employee of a facility operator whose primary function is to supervise the conduct of table games at multiple tables on the gaming floor.</text> </paragraph> <paragraph num="(13)"> <text>“Gaming chip” means a roulette chip, poker rake chip, tournament chip, or value chip.</text> </paragraph> <paragraph num="(14)"> <text>“Gaming day” means a period of time determined by the Commission not to exceed 24 hours marking the beginning and ending times of gaming activities for the purposes of accounting reports and determination by the central monitor and control system of daily proceeds.</text> </paragraph> <paragraph num="(15)"> <text>“Gaming employee” means an individual who:</text> <paragraph num="(a)"> <text>Is or is seeking to be employed by an applicant for or holder of an operation license, whose duties relate or will relate to the operation of a facility, and who performs or supervises or will perform or supervise the performance of:</text> <paragraph num="(i)"> <text>Operating, servicing, or maintaining a video lottery terminal, table game, or associated equipment;</text> </paragraph> <paragraph num="(ii)"> <text>Accounting, maintaining, or auditing a facility’s financial records;</text> </paragraph> <paragraph num="(iii)"> <text>Counting or processing video lottery terminal or table game revenue;</text> </paragraph> <paragraph num="(iv)"> <text>Conducting security or surveillance in or around a facility; or</text> </paragraph> <paragraph num="(v)"> <text>Operating or maintaining a facility’s information systems;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Is employed by a contractor or manufacturer, whose duties directly relate to the repair, service or distribution of a video lottery terminal, table game, or associated equipment, or is otherwise required to be present on the gaming floor or in a restricted area of the facility;</text> </paragraph> <paragraph num="(c)"> <text>Is employed by a contractor as a junket representative; or</text> </paragraph> <paragraph num="(d)"> <text>Is otherwise required by the Commission to be licensed as a gaming employee.</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>“Gaming floor” means that part of a facility where video lottery terminals or table games have been installed for use or play.</text> </paragraph> <paragraph num="(17)"> <text>“Independent certified testing laboratory” means a person engaged in the testing and verification of video lottery terminals and the equipment, systems, and software utilized to collect, monitor, interpret, analyze, authorize, issue, redeem, report, and audit data with regard to activity at video lottery terminals that:</text> <paragraph num="(a)"> <text>Holds a certificate in good standing for compliance with:</text> <paragraph num="(i)"> <text>International Organization for Standardization # 17025 — General Requirements for the Competence of Testing and Calibration Laboratories; and</text> </paragraph> <paragraph num="(ii)"> <text>International Organization for Standardization # 17020 — General Criteria for the Operation of Various Types of Bodies Performing Inspections;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Has performed testing and certification of gaming equipment, systems, and software on behalf of a state within the United States for a period of 5 or more years;</text> </paragraph> <paragraph num="(c)"> <text>Has been approved by the Commission to test and certify equipment, systems, and software on its behalf; and</text> </paragraph> <paragraph num="(d)"> <text>Meets all conditions and requirements enumerated in any request for proposals issued by the Commission pertaining to testing, as amended or clarified.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>“Jackpot” means any cash, annuity, or merchandise to be paid to a player as a result of a specific combination of characters on a video lottery terminal.</text> </paragraph> <paragraph num="(19)"> <text>“Junket” means an arrangement:</text> <paragraph num="(a)"> <text>That is intended to induce an individual who is selected or approved for participation based on the individual’s ability to satisfy financial qualification obligations, willingness to gamble, or any other basis related to propensity to gamble; and</text> </paragraph> <paragraph num="(b)"> <text>Under which, or as consideration for which, any or all of the cost of transportation, food, lodging, and entertainment for an individual is directly or indirectly paid by a facility operator or an employee or agent of a facility operator.</text> </paragraph> </paragraph> <paragraph num="(20)"> <text>“Junket enterprise” means a person, other than a facility operator, who employs or otherwise engages the services of a junket representative in connection with a junket to a facility, regardless of whether the activity occurs in the State.</text> </paragraph> <paragraph num="(21)"> <text>“Junket representative” means an individual who negotiates the terms of, or engages in the referral or selection of an individual who may participate in, a junket to a facility, regardless of whether the activity occurs in the State.</text> </paragraph> <paragraph num="(22)"> <text>“License” means a license issued under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, to:</text> <paragraph num="(a)"> <text>An operator of a facility;</text> </paragraph> <paragraph num="(b)"> <text>A person that contracts with an operator of a facility to provide any of the services related to operating a facility;</text> </paragraph> <paragraph num="(c)"> <text>A manufacturer as defined in State Government Article, §9-1A-01, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(d)"> <text>A video lottery employee as defined in State Government Article, §9-1A-01, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(e)"> <text>Any other person whom the Commission requires to be licensed.</text> </paragraph> </paragraph> <paragraph num="(23)"> <text>“Location Commission” means the Video Lottery Facility Location Commission established by State Government Article, §9-1A-36, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(24)"> <text>“Manufacturer” has the meaning stated in State Government Article §9-1A-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(25)"> <text>“Manufacturer – Tier 1” or “Tier 1 Manufacturer” means a person that:</text> <paragraph num="(a)"> <text>Produces:</text> <paragraph num="(i)"> <text>A video lottery terminal;</text> </paragraph> <paragraph num="(ii)"> <text>Table game equipment;</text> </paragraph> <paragraph num="(iii)"> <text>A central monitor and control system; or</text> </paragraph> <paragraph num="(iv)"> <text>Equipment associated with §B(24)(a)(i)—(iii) of this regulation; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Distributes or resells:</text> <paragraph num="(i)"> <text>A video lottery terminal;</text> </paragraph> <paragraph num="(ii)"> <text>Table game equipment;</text> </paragraph> <paragraph num="(iii)"> <text>A central monitor and control system; or</text> </paragraph> <paragraph num="(iv)"> <text>Equipment associated with §B(24)(b)(i) – (iii) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(26)"> <text>“Manufacturer – Tier 2” or “Tier 2 – Manufacturer” means a person that produces a product:</text> <paragraph num="(a)"> <text>Intended for sale, lease or other assignment to a licensee and is related to:</text> <paragraph num="(i)"> <text>Video lottery terminals;</text> </paragraph> <paragraph num="(ii)"> <text>Table games; or</text> </paragraph> <paragraph num="(iii)"> <text>Equipment or software associated with §B(25)(a)(i) or (ii) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>That does not have the ability to impact the integrity of a game; and</text> </paragraph> <paragraph num="(c)"> <text>Is not essential to table game play.</text> </paragraph> </paragraph> <paragraph num="(27)"> <text>“Nongaming employee” means an individual who is:</text> <paragraph num="(a)"> <text>Employed or is seeking to be employed by an applicant for or holder of an operation license and whose duties are or will be other than the duties of a gaming employee; or</text> </paragraph> <paragraph num="(b)"> <text>Otherwise required by the Commission to be licensed as a gaming employee.</text> </paragraph> </paragraph> <paragraph num="(28)"> <text>“Operation license” means a license awarded by the Location Commission to operate a video lottery facility.</text> </paragraph> <paragraph num="(29)"> <text>“Plaque” means a rectangular, square, or oval marker that can be used instead of value chips.</text> </paragraph> <paragraph num="(30)"> <text>“Principal” means:</text> <paragraph num="(a)"> <text>An officer, director, or person who directly holds a beneficial interest in, or ownership of, the securities of an applicant or licensee;</text> </paragraph> <paragraph num="(b)"> <text>A person who has a controlling interest in an applicant or licensee or has the ability to elect a majority of the board of directors of a licensee or to otherwise control a licensee;</text> </paragraph> <paragraph num="(c)"> <text>A lender or other licensed financial institution of an applicant or licensee, other than a bank or lending institution which makes a loan or holds a mortgage or other lien acquired in the ordinary course of business;</text> </paragraph> <paragraph num="(d)"> <text>An underwriter of an applicant or licensee; or</text> </paragraph> <paragraph num="(e)"> <text>Another person or employee of an applicant or licensee deemed by the Commission to be a principal.</text> </paragraph> </paragraph> <paragraph num="(31)"> <text>Principal Employee.</text> <paragraph num="(a)"> <text>“Principal employee” means a video lottery employee who owns, controls, or manages a licensee, or otherwise exercises control over a video lottery or table game function of a licensee;</text> </paragraph> <paragraph num="(b)"> <text>“Principal employee” includes an employee of a contractor who performs any function described in §B(3) of this regulation; and</text> </paragraph> <paragraph num="(c)"> <text>“Principal employee” does not include a gaming, temporary gaming, or nongaming employee.</text> </paragraph> </paragraph> <paragraph num="(32)"> <text>“Principal entity” means a person, other than an individual, that is a principal.</text> </paragraph> <paragraph num="(33)"> <text>“Restricted area” means that part of a facility directly related to the operation of the gaming floor where access is specifically designated by the Commission as restricted, including:</text> <paragraph num="(a)"> <text>Cashier’s cage, including a satellite cashiers’ cage and ancillary offices;</text> </paragraph> <paragraph num="(b)"> <text>Computer space allocated to the central monitor and control system;</text> </paragraph> <paragraph num="(c)"> <text>Count room and trolley storage areas;</text> </paragraph> <paragraph num="(d)"> <text>Areas designated for the storage or repair of equipment of video lottery terminals or table game devices;</text> </paragraph> <paragraph num="(e)"> <text>Information technology department operations centers;</text> </paragraph> <paragraph num="(f)"> <text>Progressive controller locations;</text> </paragraph> <paragraph num="(g)"> <text>Surveillance monitoring rooms;</text> </paragraph> <paragraph num="(h)"> <text>Vault and armored car bay locations; and</text> </paragraph> <paragraph num="(i)"> <text>Any area that the facility operator has designated as restricted in its Commission-approved accounting an internal control systems.</text> </paragraph> </paragraph> <paragraph num="(34)"> <text>“Signature” means, at a minimum, an employee’s first initial, last name, and Commission license number, written by the employee.</text> </paragraph> <paragraph num="(35)"> <text>Table Game Equipment.</text> <paragraph num="(a)"> <text>“Table game equipment” means equipment that is related to the operation of table games and that is owned or leased by a video lottery facility and located on the video lottery facility’s premises, and includes table layouts, cards, dice, chips, shufflers, tiles, wheels, or any mechanical, electrical, or computerized device, apparatus, or supplies used to conduct a table game or designated by the Commission as table game equipment.</text> </paragraph> <paragraph num="(b)"> <text>“Table game equipment” does not mean:</text> <paragraph num="(i)"> <text>A table or base that does not have a device that is attributable to a specific table game or is not identified with the facility operator’s logo on the layout; or</text> </paragraph> <paragraph num="(ii)"> <text>An item described in §B(29)(a) of this regulation that is unfinished or inoperable.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(36)"> <text>“Terminal” means a computerized unit specifically designed for issuing and processing tickets and for printing of special reports.</text> </paragraph> <paragraph num="(37)"> <text>“Value chip” means a chip that contains a denomination on each face.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Unclaimed Video Lottery Terminal Jackpots."> <paragraph num="A."> <text>In this regulation, “unclaimed jackpot” means any cash, annuity, merchandise, cashable credit as defined in COMAR 36.03.10.01, or gaming ticket as defined in COMAR 36.03.10.01 to be paid or dispensed to a player.</text> </paragraph> <paragraph num="B."> <text>A video lottery terminal player shall have a maximum of 182 days from the date an unclaimed jackpot is won to claim it.</text> </paragraph> <paragraph num="C."> <text>After 182 days, an unclaimed jackpot shall be distributed as provided under State Government Article, §9-1A-26, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Waivers."> <paragraph num="A."> <text>General. A person seeking an exemption from a Commission regulation issued under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, shall request that the Commission waive the regulation.</text> </paragraph> <paragraph num="B."> <text>Process.</text> <paragraph num="(1)"> <text>A person requesting a waiver of a regulation shall submit a written waiver request in a format specified by the Commission.</text> </paragraph> <paragraph num="(2)"> <text>A written waiver request shall contain at least the following:</text> <paragraph num="(a)"> <text>The Maryland regulation for which the waiver is sought;</text> </paragraph> <paragraph num="(b)"> <text>Detailed facts in support of the waiver request;</text> </paragraph> <paragraph num="(c)"> <text>An explanation of the unique circumstances justifying the request; and</text> </paragraph> <paragraph num="(d)"> <text>Any other information requested by the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Upon receipt of a waiver request that fails to comply with §B(1) or (2) of this regulation, Commission staff shall notify the requestor:</text> <paragraph num="(a)"> <text>Of any deficiency in the waiver request; and</text> </paragraph> <paragraph num="(b)"> <text>That the waiver request will not be presented to the Commission unless the identified deficiency is corrected.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Upon receipt of a waiver request that complies with §B(1) and (2) of this regulation, Commission staff shall present the waiver request to the Commission as soon as practicable.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Decision.</text> <paragraph num="(1)"> <text>In deciding whether to grant a waiver request, the Commission may consider:</text> <paragraph num="(a)"> <text>The particular facts supporting the waiver request;</text> </paragraph> <paragraph num="(b)"> <text>Whether enforcement of the regulation as to the subject of the waiver request is necessary to protect the public interest or accomplish the policies established by State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>Limiting or restricting the relief sought as the Commission considers necessary in the public interest;</text> </paragraph> <paragraph num="(d)"> <text>Granting the waiver request subject to a condition;</text> </paragraph> <paragraph num="(e)"> <text>Requiring the requestor to submit any additional information; and</text> </paragraph> <paragraph num="(f)"> <text>Any other relevant information.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Commission shall provide the requestor with written notification of its decision.</text> </paragraph> </paragraph> <paragraph num="D."> <text>This regulation does not apply to a request for waiver of a licensing requirement under COMAR 36.03.02.11.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-01, 9-1A-02(b) and 9-1A-04(d), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective December 12, 2013 (40:24 Md. R. 2018); October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976); January 14, 2019 (46:1 Md. R. 13); October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective May 25, 2015 (42:10 Md. R. 686)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C amended effective October 23, 2017 (44:21 Md. R. 985)</annotation> </annotations> </chapter> <chapter num="02" heading="Investigation and Licensing"> <regulation prefix="Regulation" num=".01" heading="Process."> <paragraph num="A."> <text>General Provisions.</text> <paragraph num="(1)"> <text>Upon filing of an application for a license under this chapter other than an operation license, the applicant shall pay a nonrefundable application fee established by the Commission.</text> </paragraph> <paragraph num="(2)"> <text>If a license application must be submitted to the Commission by a particular date, the application documents shall be delivered to the Commission not later than 5 p.m. on the last day of this period, and an application submitted after the deadline may not be accepted or considered by the Commission.</text> </paragraph> <paragraph num="(3)"> <text>An applicant may not submit an application less than 1 year after the Commission has:</text> <paragraph num="(a)"> <text>Taken final action on a license denial of a previous license application involving the applicant;</text> </paragraph> <paragraph num="(b)"> <text>Taken final action on a sanction resulting in revocation of a previous license application involving the applicant; or</text> </paragraph> <paragraph num="(c)"> <text>Provided an individual with written notice of termination of a temporary license.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Applications.</text> <paragraph num="(1)"> <text>Documents submitted to the Commission or the Location Commission under this chapter shall consist of an original and the number of copies required by the relevant commission and shall be in the electronic format required by the relevant commission.</text> </paragraph> <paragraph num="(2)"> <text>Documents and information submitted to the Commission or the Location Commission in a license application shall be sworn before a notary public as to their truth and validity by the applicant or, if the applicant is not an individual, by the chief executive officer of the applicant.</text> </paragraph> <paragraph num="(3)"> <text>Upon receipt of an application by the Commission, the Commission staff shall review the application to determine whether it contains all the information required under this chapter.</text> </paragraph> <paragraph num="(4)"> <text>If the Commission determines that the required information has not been submitted, the Commission staff shall notify the applicant in writing and state the nature of the deficiency.</text> </paragraph> <paragraph num="(5)"> <text>An applicant notified in accordance with §B(4) of this regulation may submit the documents necessary to complete the application not later than 15 days after issuance of the notification.</text> </paragraph> <paragraph num="(6)"> <text>The Commission may not consider the application of an applicant who is notified in accordance with §B(4) of this regulation and who fails to submit the requested documents in a timely manner.</text> </paragraph> <paragraph num="(7)"> <text>The Commission shall consider a timely, complete application.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Changes in Application.</text> <paragraph num="(1)"> <text>If information submitted by an applicant as part of a license application changes or becomes inaccurate before the Commission acts on the application, the applicant shall immediately notify the Commission in writing of the change or inaccuracy.</text> </paragraph> <paragraph num="(2)"> <text>After an application has been filed by an applicant, the applicant may not amend the application except:</text> <paragraph num="(a)"> <text>To address a deficiency in accordance with a notice sent under §B(4) of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>As required by the Commission or the Commission staff for clarification of information contained in the application; or</text> </paragraph> <paragraph num="(c)"> <text>To address a change in the circumstances surrounding the application that was outside the control of the applicant and that affects the ability of the applicant to comply with the law or the regulations of the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>To amend an application under §C(2)(c) of this regulation, an applicant shall submit to the Commission a written request to amend the application, stating:</text> <paragraph num="(a)"> <text>The change in the circumstances surrounding the application that necessitates the amendment;</text> </paragraph> <paragraph num="(b)"> <text>The nature of the amendment; and</text> </paragraph> <paragraph num="(c)"> <text>The reason why the amendment is necessary to bring the application into compliance with the law or the regulations of the Commission.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Commission or Commission staff shall grant or deny each request submitted under §C(3) of this regulation.</text> </paragraph> <paragraph num="(5)"> <text>A request shall be granted if the applicant demonstrates to the satisfaction of the Commission that:</text> <paragraph num="(a)"> <text>The circumstances requiring the amendment were outside the control of the applicant;</text> </paragraph> <paragraph num="(b)"> <text>Before the change in the circumstances surrounding the application, the application complied with the pertinent provisions of the law or the regulations of the Commission; and</text> </paragraph> <paragraph num="(c)"> <text>The amendment is necessary to bring the application into compliance with the pertinent provisions of the law or the regulations of the Commission.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Except for an application for an operation license, an application for a license may be withdrawn if the:</text> <paragraph num="(a)"> <text>Applicant submits a written request to the Commission to withdraw the application; and</text> </paragraph> <paragraph num="(b)"> <text>Written request is submitted before the Commission has:</text> <paragraph num="(i)"> <text>Denied the application; or</text> </paragraph> <paragraph num="(ii)"> <text>Terminated a temporary license.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Notice of Intended Change in Licensed Video Lottery Employee’s Employment Status.</text> <paragraph num="(1)"> <text>Within 14 calendar days before a change in employment status, a licensee shall notify the Commission of the intended change in employment by submitting forms and documents required by the Commission in the manner set forth in §B of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>A licensee submitting notification of an intended change in employment status shall comply with the application requirements and processes set forth in §B of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>The Commission shall conduct a background investigation of the individual to verify that the individual’s license remains in good standing.</text> </paragraph> <paragraph num="(4)"> <text>No later than 15 days after the Commission issues the notification that the individual’s license is not in good standing, the licensee shall submit:</text> <paragraph num="(a)"> <text>Information, documentation, or assurances to establish, by clear and convincing evidence, that the licensee remains qualified to hold a license; and</text> </paragraph> <paragraph num="(b)"> <text>Any other information, documentation, or assurances required by the Commission.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>If the licensee has been separated from employment with a facility for more than 6 months and notified the Commission of an intended change in employment status, the licensee shall pay the fee for conducting a criminal history records check specified in Regulation .03B of this chapter.</text> </paragraph> <paragraph num="(6)"> <text>The Commission may not approve a change in employment status for a video lottery employee licensee who fails to establish, by clear and convincing evidence, all license qualification criteria.</text> </paragraph> <paragraph num="(7)"> <text>A video lottery employee may not effect a change in employment status without prior Commission approval.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Burden of Proof.</text> <paragraph num="(1)"> <text>An applicant and licensee shall always bear the burden of proof to show by clear and convincing evidence that the applicant or licensee complies with the laws and regulations of the Commission regarding eligibility and qualifications for the license, including:</text> <paragraph num="(a)"> <text>When an applicant submits a license application;</text> </paragraph> <paragraph num="(b)"> <text>At a hearing on a recommended denial of a license;</text> </paragraph> <paragraph num="(c)"> <text>When a video lottery employee licensee notifies the Commission of an intended change in employment status;</text> </paragraph> <paragraph num="(d)"> <text>At a hearing on a recommended revocation of a license; and</text> </paragraph> <paragraph num="(e)"> <text>In any other instance where qualifications for a license issued under a provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, are at issue.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Subject to State Government Article, §9-1A-14(c)(8), Annotated Code of Maryland, the Commission may deny a video lottery employee license to an applicant whose past or present conduct would bring the State into disrepute.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may deny a license to an applicant whose gaming license has been suspended or revoked in another jurisdiction.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Administrative Costs of Background Investigations.</text> <paragraph num="(1)"> <text>Promptly upon receipt of an invoice from the Commission, an applicant for a license or a licensee who has notified the Commission of an intended change in employment status shall reimburse the Commission for:</text> <paragraph num="(a)"> <text>The administrative costs associated with performing background investigations of the applicant, the licensee who has notified the Commission of an intended change in employment status, and any individual required to provide information under Regulation .04 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Any payments made by the Commission to a person approved by the Commission to conduct the background investigations.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Failure to reimburse the Commission shall be grounds for disqualification of an applicant or disapproval of a licensee’s change in employment status.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may require an advance deposit from an applicant or a licensee who has notified the Commission of an intended change in employment status for the Commission’s estimate of the administrative costs of conducting the applicant’s or licensee’s background investigation.</text> </paragraph> <paragraph num="(4)"> <text>The Commission shall refund any unused amount of the advance deposit.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Payment and Collection. Applicants shall pay the administrative costs and fees required under this regulation by:</text> <paragraph num="(1)"> <text>Wire transfer;</text> </paragraph> <paragraph num="(2)"> <text>Money order;</text> </paragraph> <paragraph num="(3)"> <text>Certified check; or</text> </paragraph> <paragraph num="(4)"> <text>Any other manner designated by the Commission.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Continuing Obligations.</text> <paragraph num="(1)"> <text>Applicants who are awarded a license shall, during the term of their licensures, conform to all of the information contained in their license applications.</text> </paragraph> <paragraph num="(2)"> <text>If information submitted by an applicant who is issued a license changes during the term of the license, the licensee shall immediately submit written notification of the change to the Commission.</text> </paragraph> <paragraph num="(3)"> <text>In addition to the requirements of this regulation, a holder of an operation license must also comply with the requirements of COMAR 36.03.03.</text> </paragraph> <paragraph num="(4)"> <text>Failure to comply with the obligations of §G(1), (2), or (3) of this regulation shall be grounds for the Commission taking enforcement action against the licensee under COMAR 36.03.04.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Personal and Background Information."> <paragraph num="A."> <text>Except as otherwise provided by this regulation, the application documents shall include the information under §B of this regulation, for an individual who is:</text> <paragraph num="(1)"> <text>The applicant;</text> </paragraph> <paragraph num="(2)"> <text>A director, officer, or key management individual employed by the applicant;</text> </paragraph> <paragraph num="(3)"> <text>A partner of the applicant;</text> </paragraph> <paragraph num="(4)"> <text>An owner of an interest of 5 percent or more in the applicant; or</text> </paragraph> <paragraph num="(5)"> <text>A principal.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An individual listed under §A of this regulation shall furnish the following:</text> <paragraph num="(1)"> <text>Full name and any previous names or aliases;</text> </paragraph> <paragraph num="(2)"> <text>Date of birth;</text> </paragraph> <paragraph num="(3)"> <text>Physical description;</text> </paragraph> <paragraph num="(4)"> <text>Home and business addresses and telephone numbers;</text> </paragraph> <paragraph num="(5)"> <text>Driver's license number and state of issuance;</text> </paragraph> <paragraph num="(6)"> <text>Social Security number;</text> </paragraph> <paragraph num="(7)"> <text>Passport or identification photo;</text> </paragraph> <paragraph num="(8)"> <text>Fingerprints for a criminal records check:</text> <paragraph num="(a)"> <text>For a State resident, from an electronic fingerprinting service approved by the Commission; or</text> </paragraph> <paragraph num="(b)"> <text>For an out-of-State resident, one FBI and one State fingerprint card, taken within the previous 45 days before submission to the Commission; and</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Any other document or information required by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the applicant is a corporation, the application documents shall state the:</text> <paragraph num="(1)"> <text>State in which the applicant is incorporated; and</text> </paragraph> <paragraph num="(2)"> <text>Name and address of the applicant's agent for service of process in Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If an applicant is a nonprofit corporation, only an individual who is a director or officer of the applicant shall provide the information required under §B of this regulation.</text> </paragraph> <paragraph num="E."> <text>A licensee who has notified the Commission of an intended change in employment status shall provide the information as set forth in §B of this regulation.</text> </paragraph> <paragraph num="F."> <text>The Commission may require an applicant to furnish the information listed in §B of this regulation with regard to the applicant's family and associates.</text> </paragraph> <paragraph num="G."> <text>Inadvertent, nonsubstantive errors that might be made in furnishing the information required by this regulation may not be used as a reason by the Commission for disqualifying the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Information for Background Investigation."> <paragraph num="A."> <text>If directed by the Commission, an individual shall also submit three complete legible sets of the individual's fingerprints and complete a background form supplied by the Commission which includes a statement disclosing whether the individual has ever been:</text> <paragraph num="(1)"> <text>Arrested;</text> </paragraph> <paragraph num="(2)"> <text>Convicted of, pled nolo contendere to, or received probation before judgment for, a felony or misdemeanor, other than a misdemeanor traffic offense;</text> </paragraph> <paragraph num="(3)"> <text>Sanctioned by a government agency related to gaming;</text> </paragraph> <paragraph num="(4)"> <text>Found liable in connection with a civil action related to gaming;</text> </paragraph> <paragraph num="(5)"> <text>A debtor in a bankruptcy proceeding; or</text> </paragraph> <paragraph num="(6)"> <text>Denied a bond.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The forms submitted in compliance with this regulation shall be accompanied by the:</text> <paragraph num="(1)"> <text>Fee authorized under Criminal Procedure Article, §10-221(b)(7), Annotated Code of Maryland, for access to Maryland criminal history records;</text> </paragraph> <paragraph num="(2)"> <text>Mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check; and</text> </paragraph> <paragraph num="(3)"> <text>Mandatory processing fee required by Interpol for an international criminal history records check.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If an applicant for any license under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, is a citizen of any country other than the United States, the background investigation required under State Government Article, §9-1A-07(d), Annotated Code of Maryland, shall include an international criminal history records check.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Consent for Investigation."> <paragraph num="A."> <text>An individual who is required to provide personal and background information under this chapter shall provide a statement that irrevocably gives consent to the Commission, the Location Commission, the Maryland State Police, and persons authorized by the Commission to:</text> <paragraph num="(1)"> <text>Verify all information provided in all documents or forms submitted to the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>Conduct a background investigation of the individual.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An applicant or licensee shall authorize the Commission and, if appropriate, the Location Commission to have access to any and all information the applicant or licensee has provided to any other jurisdiction while seeking a similar license in that other jurisdiction, as well as the information obtained by that other jurisdiction during the course of any investigation it may have conducted regarding the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Organizational Documents."> <paragraph num="A."> <text>If the applicant is a corporation, the application documents shall include a:</text> <paragraph num="(1)"> <text>Statement of when the corporation was organized;</text> </paragraph> <paragraph num="(2)"> <text>Copy of the articles of incorporation and bylaws of the corporation;</text> </paragraph> <paragraph num="(3)"> <text>Statement and documentation of whether the corporation has been reorganized or reincorporated during the 5-year period preceding the date on which the application documents are submitted to the Commission; and</text> </paragraph> <paragraph num="(4)"> <text>Statement and documentation of whether the corporation has filed restated articles of incorporation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the applicant is an unincorporated business association, the application documents shall include a:</text> <paragraph num="(1)"> <text>Copy of each organizational document of the applicant, including any partnership agreement; and</text> </paragraph> <paragraph num="(2)"> <text>Description of any oral agreements involving the organization of the applicant.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Owners."> <paragraph num="A."> <text>If the applicant is an unincorporated business association, the application documents shall identify:</text> <paragraph num="(1)"> <text>Each person who exercises voting rights in the applicant; and</text> </paragraph> <paragraph num="(2)"> <text>Each person who directly or indirectly owns 5 percent or more of the business association.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the applicant is authorized to issue capital stock, the applicant shall state, for each class of stock authorized, the:</text> <paragraph num="(1)"> <text>Total number of shares;</text> </paragraph> <paragraph num="(2)"> <text>Par value, if any;</text> </paragraph> <paragraph num="(3)"> <text>Voting rights;</text> </paragraph> <paragraph num="(4)"> <text>Current rate of dividend; and</text> </paragraph> <paragraph num="(5)"> <text>Number of shares outstanding and the market value of each share.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the applicant is a corporation, the application documents shall identify each person who:</text> <paragraph num="(1)"> <text>Exercises voting rights in the corporation; and</text> </paragraph> <paragraph num="(2)"> <text>Directly or indirectly owns 5 percent or more of the corporation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The application documents shall include a certified copy of each voting trust or voting agreement in which capital stock of the applicant is held and shall state the:</text> <paragraph num="(1)"> <text>Name and address of each stockholder participating in the trust or agreement;</text> </paragraph> <paragraph num="(2)"> <text>Class of stock involved; and</text> </paragraph> <paragraph num="(3)"> <text>Total number of shares held by the trust or agreement.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The application documents shall describe the terms of any proxy by which any capital stock may be voted and shall state the:</text> <paragraph num="(1)"> <text>Name and address of the person holding the proxy;</text> </paragraph> <paragraph num="(2)"> <text>Name and address of the stockholder who granted the proxy;</text> </paragraph> <paragraph num="(3)"> <text>Class of stock for which the proxy may vote; and</text> </paragraph> <paragraph num="(4)"> <text>Total number of shares voted by the proxy.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The application documents shall state any provisions, and the procedures by which these provisions may be modified, for the redemption, repurchase, retirement, conversion, or exchange of an ownership interest.</text> </paragraph> <paragraph num="G."> <text>The application documents shall state whether the applicant's stock may be traded through options and whether the corporation or a stockholder has executed an agreement or contract to convey any of the corporation's or the stockholder's stock at a future date.</text> </paragraph> <paragraph num="H."> <text>The application documents shall include a copy or a description of each agreement or contract disclosed under §G of this regulation.</text> </paragraph> <paragraph num="I."> <text>The application documents shall include a copy of each prospectus, pro forma, or other promotional material given to potential investors about the video lottery facility.</text> </paragraph> <paragraph num="J."> <text>The application documents shall provide full disclosure for any stock options that may exist or have been granted.</text> </paragraph> <paragraph num="K."> <text>The application documents shall disclose all principal entities of the applicant.</text> </paragraph> <paragraph num="L."> <text>Principal Entities as Approved Institutional Investors.</text> <paragraph num="(1)"> <text>A principal entity may request the Commission to waive the requirement of conducting a full background investigation of the principal entity.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may approve a principal entity's request for a waiver if the principal entity:</text> <paragraph num="(a)"> <text>Meets one of the definitions of institutional investor in State Government Article, §9-1A-01, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>Satisfactorily completes and submits an institutional investor waiver application as required by the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A principal entity for which the Commission has approved a waiver request under §L(2) of this regulation is an approved institutional investor.</text> </paragraph> <paragraph num="(4)"> <text>An institutional investor may maintain an approved waiver as an institutional investor by:</text> <paragraph num="(a)"> <text>Maintaining an ownership interest in an applicant or licensee; and</text> </paragraph> <paragraph num="(b)"> <text>Providing the Commission with the statement of ownership percentage it reported to the Securities and Exchange Commission:</text> <paragraph num="(i)"> <text>Annually, before the last day of April; or</text> </paragraph> <paragraph num="(ii)"> <text>As otherwise directed by the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>If an approved institutional investor complies with §L(4) of this regulation, the Commission's approval is valid for 5 years from the date of approval, and:</text> <paragraph num="(a)"> <text>The waiver may apply to one or more applicants or licensees in which the entity is an institutional investor; and</text> </paragraph> <paragraph num="(b)"> <text>The institutional investor shall submit an institutional waiver application every 5 years from the date of the Commission's last approval.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If an approved institutional investor does not meet the requirements of §L(4) of this regulation with respect to one or more applicants or licensees:</text> <paragraph num="(a)"> <text>The approved institutional investor shall notify the Commission in writing if the institutional investor's ownership interest falls below 5 percent; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission may require the institutional investor to submit a new waiver application if the institutional investor acquires an ownership interest of 5 percent or greater in any applicant or licensee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="M."> <text>Qualified Principal Entities.</text> <paragraph num="(1)"> <text>This section does not apply to a principal entity that is an approved institutional investor under §L of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>If the Commission investigates a principal entity’s application for qualification and determines that the principal entity is qualified:</text> <paragraph num="(a)"> <text>The Commission shall recognize the qualification determination for 5 years from the date the principal entity is found qualified; and</text> </paragraph> <paragraph num="(b)"> <text>If the same qualified principal entity is identified in a subsequent license application within the 5-year period described in §M(2)(a) of this regulation, the principal entity is not required to submit a new principal entity disclosure form.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A qualified principal entity shall comply with the continuing obligation requirements described in Regulation .01 of this chapter.</text> </paragraph> <paragraph num="(4)"> <text>If a qualified principal entity no longer meets a qualification requirement, the Commission may require the principal entity to:</text> <paragraph num="(a)"> <text>File a new principal entity disclosure form;</text> </paragraph> <paragraph num="(b)"> <text>Submit to a new background investigation; and</text> </paragraph> <paragraph num="(c)"> <text>Pay all fees and costs associated with the new principal entity disclosure form and investigation.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Directors, Officers, and Partners."> <paragraph num="A."> <text>If the applicant is not an individual, the application documents shall include a list of the individuals who are serving, or who are designated to serve, during the first year after the date the application documents are submitted to the Commission or the Location Commission, as a director, officer, partner, an individual having key management responsibility, or any other principal.</text> </paragraph> <paragraph num="B."> <text>For each individual listed under §A of this regulation, the applicant shall provide:</text> <paragraph num="(1)"> <text>The individual's name and address;</text> </paragraph> <paragraph num="(2)"> <text>Each position or office of the applicant held by the individual;</text> </paragraph> <paragraph num="(3)"> <text>The individual's principal occupation during the 5-year period preceding the date on which the application documents are submitted to the Commission; and</text> </paragraph> <paragraph num="(4)"> <text>The nature and extent of any ownership interest that the individual has in the applicant.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Controlling Entity."> <text>The application documents shall:</text> <paragraph num="A."> <text>State whether another entity has a beneficial ownership in the applicant, as defined in Business Regulation Article, §11-301, Annotated Code of Maryland;</text> </paragraph> <paragraph num="B."> <text>Describe the:</text> <paragraph num="(1)"> <text>Nature of the beneficial ownership; and</text> </paragraph> <paragraph num="(2)"> <text>Extent of control exercised by the beneficial owner; and</text> </paragraph> </paragraph> <paragraph num="C."> <text>Include information and documents required under Regulations .04—.09 of this chapter as to each beneficial owner and principal entity.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Outside Interests."> <paragraph num="A."> <text>The application documents shall state whether the applicant, a director, an officer, or a partner of the applicant, or an owner of 5 percent or more of an interest in the applicant:</text> <paragraph num="(1)"> <text>Has ever held an ownership interest in a licensee of the Commission; or</text> </paragraph> <paragraph num="(2)"> <text>Is currently engaged in the business of gaming in another state, and the nature and extent of that involvement.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The applicant shall describe the nature of participation stated under §A of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Alternative Licensing Standards."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>The Commission may establish an abbreviated process for licensing an applicant who holds a valid license in another state if the Commission determines that the licensing standards of the other state:</text> <paragraph num="(a)"> <text>Are comprehensive;</text> </paragraph> <paragraph num="(b)"> <text>Are thorough; and</text> </paragraph> <paragraph num="(c)"> <text>Provide similar adequate safeguards to those in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except for an operation or manufacturer license applicant, the Commission may:</text> <paragraph num="(a)"> <text>Waive some or all of the requirements in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>Issue a license to a person having a similar license in another state.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission may delegate its authority to decide whether to apply an alternative license standard to staff.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Process.</text> <paragraph num="(1)"> <text>An applicant or licensee requesting the application of alternative licensing requirements shall submit a written request in a format specified by the Commission.</text> </paragraph> <paragraph num="(2)"> <text>A written waiver request shall contain at least the following:</text> <paragraph num="(a)"> <text>The state in which the applicant holds a valid license;</text> </paragraph> <paragraph num="(b)"> <text>An explanation of the unique circumstances justifying the request; and</text> </paragraph> <paragraph num="(c)"> <text>Any other information requested by staff or the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Upon receipt of a request that fails to comply with §B(1) and (2) of this regulation, staff shall notify the requestor:</text> <paragraph num="(a)"> <text>Of any deficiency; and</text> </paragraph> <paragraph num="(b)"> <text>That the waiver request will not be presented to the Commission unless the identified deficiency is corrected.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Decision.</text> <paragraph num="(1)"> <text>Upon receipt of a waiver request that complies with §B of this regulation, staff shall:</text> <paragraph num="(a)"> <text>Present the waiver request to the Commission as soon as practicable; or</text> </paragraph> <paragraph num="(b)"> <text>If the Commission has delegated to staff the authority to decide the waiver request, decide the waiver request as soon as practicable.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>After the Commission or staff decides whether to grant the waiver request, staff shall notify the requestor.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Exemption or Waiver of License Requirement."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>The Commission may:</text> <paragraph num="(a)"> <text>Grant an exemption to a licensing requirement;</text> </paragraph> <paragraph num="(b)"> <text>Waive a licensing requirement; or</text> </paragraph> <paragraph num="(c)"> <text>Waive grounds for denial of a license.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except for an operation or manufacturer license applicant, the Commission may grant an exemption or waive a requirement under this regulation only after the Commission determines that the requirement or grounds for denial of a license as applied to the applicant are not necessary in order to protect the public interest or accomplish the policies established by State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may delegate its authority to decide a waiver of a licensing requirement to staff.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Process.</text> <paragraph num="(1)"> <text>A person requesting an exemption or waiver shall submit a written request in a format specified by the Commission.</text> </paragraph> <paragraph num="(2)"> <text>A written request shall contain at least the following:</text> <paragraph num="(a)"> <text>The COMAR section for the standard for which the exemption or waiver is sought;</text> </paragraph> <paragraph num="(b)"> <text>Detailed facts in support of the request;</text> </paragraph> <paragraph num="(c)"> <text>An explanation of the unique circumstances justifying the request; and</text> </paragraph> <paragraph num="(d)"> <text>Any other information requested by staff or the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Upon receipt of an exemption or waiver request that fails to comply with §B(1) or (2) of this regulation, staff shall notify the requestor:</text> <paragraph num="(a)"> <text>Of any deficiency; and</text> </paragraph> <paragraph num="(b)"> <text>That the request will not be presented to the Commission unless the identified deficiency is corrected.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Decision.</text> <paragraph num="(1)"> <text>Upon receipt of a request that complies with §§A and B of this regulation, staff shall:</text> <paragraph num="(a)"> <text>Present the request to the Commission as soon as practicable; or</text> </paragraph> <paragraph num="(b)"> <text>If the Commission has delegated to staff the authority to decide the waiver request, [decide the waiver request] make a decision as soon as practicable.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>At any time before or after a waiver or exemption has been granted, the Commission may:</text> <paragraph num="(a)"> <text>Limit or place restrictions on the exemption or waiver as the Commission considers necessary in the public interest; and</text> </paragraph> <paragraph num="(b)"> <text>Require the licensee who 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.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>After the Commission or staff decides whether to grant or deny the request, staff shall notify the requestor of the decision.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Video Lottery Employee Licenses."> <paragraph num="A."> <text>General. Unless an individual holds a valid video lottery employee license that is in good standing issued by the Commission, the individual may not be employed by a licensed facility operator, manufacturer, or contractor as a video lottery employee.</text> </paragraph> <paragraph num="B."> <text>License Categories. The Commission may issue a video lottery employee license that is a:</text> <paragraph num="(1)"> <text>Principal employee license;</text> </paragraph> <paragraph num="(2)"> <text>Gaming employee license;</text> </paragraph> <paragraph num="(3)"> <text>Nongaming employee license;</text> </paragraph> <paragraph num="(4)"> <text>Temporary principal employee license; or</text> </paragraph> <paragraph num="(5)"> <text>Temporary gaming employee license.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Requirements. The Commission may issue a video lottery employee license to an individual who has or has had on their behalf:</text> <paragraph num="(1)"> <text>Paid all required application and license fees;</text> </paragraph> <paragraph num="(2)"> <text>Submitted a completed license application to the Commission;</text> </paragraph> <paragraph num="(3)"> <text>Furnished the personal and background information required under Regulation .02 of this chapter;</text> </paragraph> <paragraph num="(4)"> <text>Provided the documentation required under Regulation .03 of this chapter;</text> </paragraph> <paragraph num="(5)"> <text>Executed the consent for investigation required under Regulation .04 of this chapter;</text> </paragraph> <paragraph num="(6)"> <text>Unless exempt, obtained a bond required under Regulation .15 of this chapter;</text> </paragraph> <paragraph num="(7)"> <text>Received at least a conditional offer of employment as a video lottery employee from a licensed facility operator, manufacturer, or contractor;</text> </paragraph> <paragraph num="(8)"> <text>Demonstrated that within the 365 days before the application is submitted, the applicant has not served as a Commission member or been employed by the Agency;</text> </paragraph> <paragraph num="(9)"> <text>For an applicant for a nongaming employee license, documented that the applicant has obtained an offer of at least conditional employment from a licensed facility operator, manufacturer or contractor, or a registered or certified vendor, and that the employer has:</text> <paragraph num="(a)"> <text>Obtained a bond if required under Regulation .15 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Performed, at a minimum, a Social Security database check, criminal check, employment verification, and national database search; and</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Provided the Commission with sufficient information, documentation, and assurances to establish, by clear and convincing evidence, that the individual:</text> <paragraph num="(a)"> <text>Except as provided in §L of this regulation, has not been mandatorily disqualified under State Government Article, §9-1A-14(c), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Has met the applicable requirements of State Government Article, §9-1A-07(c), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(c)"> <text>Is otherwise qualified for a video lottery employee license.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Application and License Fees.</text> <paragraph num="(1)"> <text>For a principal employee, $5,287.25, of which the:</text> <paragraph num="(a)"> <text>Application fee is $2,500;</text> </paragraph> <paragraph num="(b)"> <text>License fee is $750;</text> </paragraph> <paragraph num="(c)"> <text>Refundable advance deposit authorized under Regulation .01E(3) of this chapter for the administrative costs of conducting the applicant's background investigation is $2,000; and</text> </paragraph> <paragraph num="(d)"> <text>Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a gaming employee, $437.25, of which the:</text> <paragraph num="(a)"> <text>Application fee is $250;</text> </paragraph> <paragraph num="(b)"> <text>License fee is $150; and</text> </paragraph> <paragraph num="(c)"> <text>Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For a nongaming employee, $187.25, of which the:</text> <paragraph num="(a)"> <text>Application fee is $50;</text> </paragraph> <paragraph num="(b)"> <text>License fee is $100; and</text> </paragraph> <paragraph num="(c)"> <text>Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Employment of a Video Lottery Employee Licensee.</text> <paragraph num="(1)"> <text>A video lottery employee license authorizes the licensee to be employed as a principal, gaming or nongaming employee in the State.</text> </paragraph> <paragraph num="(2)"> <text>Nothing in this chapter precludes a licensee from being employed by more than one video lottery facility or sports wagering licensee, concurrently or consecutively, while the individual’s license is in good standing.</text> </paragraph> <paragraph num="(3)"> <text>A video lottery employee’s second or subsequent employment with a licensee or a sports wagering licensee does not change the term of the individual’s license.</text> </paragraph> <paragraph num="(4)"> <text>Without filing an application for a sports wagering employee license, a video lottery employee may be employed by a sports wagering licensee if:</text> <paragraph num="(a)"> <text>The individual will perform work for the sports wagering licensee that is comparable to work performed as a video lottery employee; and</text> </paragraph> <paragraph num="(b)"> <text>The individual’s license is in good standing.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Under State Government Article, §9-1A-24(c)(2), Annotated Code of Maryland, a video lottery employee who is 18 to 20 years old may enter, or remain on, the gaming floor if the employee is working.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A licensed video lottery employee, or temporary licensee, may not play a video lottery terminal or table game at, or receive a jackpot from, a facility:</text> <paragraph num="(1)"> <text>Where the individual is employed;</text> </paragraph> <paragraph num="(2)"> <text>That is operated by the individual's employer; or</text> </paragraph> <paragraph num="(3)"> <text>Where the individual is currently assigned to work.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A sports wagering employee who is employed as a video lottery facility employee is subject to the restrictions in:</text> <paragraph num="(1)"> <text>Section F of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>COMAR 36.10.06.07.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commission's regulations.</text> </paragraph> <paragraph num="I."> <text>Term; Renewal.</text> <paragraph num="(1)"> <text>The term of a video lottery employee license is 5 years from the date of initial licensure.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may stagger the terms of licenses.</text> </paragraph> <paragraph num="(3)"> <text>Except for a sponsored principal or sponsored gaming employee, or temporary licensee, the Commission may renew the license if, before the term of the license expires, the licensee:</text> <paragraph num="(a)"> <text>Applies for renewal;</text> </paragraph> <paragraph num="(b)"> <text>Continues to comply with all licensing requirements;</text> </paragraph> <paragraph num="(c)"> <text>Maintains employment as a video lottery employee;</text> </paragraph> <paragraph num="(d)"> <text>Submits to a background investigation under Regulation .03 of this chapter; and</text> </paragraph> <paragraph num="(e)"> <text>Pays the fees described in §I(4) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The fee required for processing a licensing renewal is:</text> <paragraph num="(a)"> <text>For a principal employee, $2,787.25, of which the:</text> <paragraph num="(i)"> <text>License fee is $750;</text> </paragraph> <paragraph num="(ii)"> <text>Refundable advance deposit for administrative costs of conducting the applicant’s background investigation is $2,000; and</text> </paragraph> <paragraph num="(iii)"> <text>Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>For a gaming employee, $187.25, of which the:</text> <paragraph num="(i)"> <text>License fee is $150; and</text> </paragraph> <paragraph num="(ii)"> <text>Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>For a nongaming employee, $97.25, of which the:</text> <paragraph num="(i)"> <text>License fee is $60; and</text> </paragraph> <paragraph num="(ii)"> <text>Required fee for conducting a criminal history records check specified in Regulation .03B of this chapter is $37.25.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>Except as provided in §H(5) of this regulation, a video lottery employee shall submit an application for renewal to the Commission at least 90 days before the video lottery employee's license expires.</text> </paragraph> <paragraph num="(6)"> <text>A principal employee shall submit an application for renewal to the Commission at least 6 months before the principal employee's license expires.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Temporary License.</text> <paragraph num="(1)"> <text>The Commission may issue to a video lottery employee license applicant a temporary license to permit the individual to work legally as a video lottery employee before the Commission completes the full licensing process.</text> </paragraph> <paragraph num="(2)"> <text>A licensed facility operator, manufacturer, or contractor may submit an application for a temporary license on behalf of an individual who is seeking a principal or gaming employee license.</text> </paragraph> <paragraph num="(3)"> <text>An application for a temporary license shall be in a format designated by the Commission and shall include:</text> <paragraph num="(a)"> <text>A completed application for a principal or gaming employee license;</text> </paragraph> <paragraph num="(b)"> <text>Payment of the fees required under §D of this regulation;</text> </paragraph> <paragraph num="(c)"> <text>Documentation to verify that the applicant has obtained an offer of at least conditional employment from a licensed facility operator, manufacturer or contractor, or a registered or certified vendor, and that the employer has:</text> <paragraph num="(i)"> <text>Obtained a bond if required under Regulation .15 of this chapter; and</text> </paragraph> <paragraph num="(ii)"> <text>Performed, at a minimum, a Social Security database check, criminal check, employment verification, and national database search; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Documentation that the applicant has acknowledged, in writing, that the State is not financially responsible for any consequences resulting from termination of a temporary license under State Government Article, §9-1A-14(d)(4), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Commission may grant a temporary license after:</text> <paragraph num="(a)"> <text>Receiving all items required under §I(3) of this regulation; and</text> </paragraph> <paragraph num="(b)"> <text>Performing on the individual a:</text> <paragraph num="(i)"> <text>Criminal background investigation under Regulation .03 of this chapter; and</text> </paragraph> <paragraph num="(ii)"> <text>Financial stability investigation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>A temporary license:</text> <paragraph num="(a)"> <text>Expires 180 days after the date of issue; and</text> </paragraph> <paragraph num="(b)"> <text>May be extended by the Commission for one period of 180 days.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>A temporary license may not be issued if:</text> <paragraph num="(a)"> <text>An applicant has an immediately known present or prior activity, criminal record, reputation, habit, or association that would disqualify the applicant from holding a video lottery employee license under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or regulations promulgated under that subtitle;</text> </paragraph> <paragraph num="(b)"> <text>An applicant poses a serious imminent risk of harm to the integrity, security, or profitability of the State's video lottery terminal or table game operations; or</text> </paragraph> <paragraph num="(c)"> <text>There are reasonable grounds to believe that the applicant will not be able to establish the applicant's qualifications by clear and convincing evidence under State Government, §9-1A-07, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>By written notice to a temporary licensee, Commission staff may terminate, without a hearing and without following the denial process under Regulation .16 of this chapter, the temporary license of an applicant for:</text> <paragraph num="(a)"> <text>Failure to pay a required fee;</text> </paragraph> <paragraph num="(b)"> <text>Failure to submit required documentation to Commission staff within 30 days of submitting the application;</text> </paragraph> <paragraph num="(c)"> <text>Failure to comply with a request of Commission staff;</text> </paragraph> <paragraph num="(d)"> <text>Engaging in conduct that obstructs Commission staff from completing the applicant's background investigation; or</text> </paragraph> <paragraph num="(e)"> <text>Violating any provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commission's regulations.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Commission staff's written notice of termination of a temporary license is the final action of the Commission.</text> </paragraph> <paragraph num="(9)"> <text>If, during the course of conducting an applicant's background investigation, Commission staff reasonably believes there is a basis for recommending that the application for a video lottery employee license be denied, Commission staff shall:</text> <paragraph num="(a)"> <text>Notify the temporary licensee; and</text> </paragraph> <paragraph num="(b)"> <text>Follow the process for denial of a license under Regulation .16 of this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="K."> <text>Relinquishment of a License.</text> <paragraph num="(1)"> <text>An individual who is licensed as a video lottery employee may relinquish the license.</text> </paragraph> <paragraph num="(2)"> <text>A licensee shall relinquish a license in writing by submitting to Agency staff a document that:</text> <paragraph num="(a)"> <text>Includes the licensee’s name and date of request;</text> </paragraph> <paragraph num="(b)"> <text>Clearly expresses the individual’s desire to knowingly and voluntarily relinquish, end, or otherwise give up the individual’s licensure; and</text> </paragraph> <paragraph num="(c)"> <text>Gives a reason for the request.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Agency staff may accept a relinquishment request that is consistent with §K(2) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>Agency staff shall update the Agency’s records to show the voluntary relinquishment.</text> </paragraph> <paragraph num="(5)"> <text>By submitting a written relinquishment request of a video lottery employee license under §K(2) of this regulation, the individual acknowledges that:</text> <paragraph num="(a)"> <text>The State is not financially responsible for any consequences resulting from the relinquishment of the individual’s license;</text> </paragraph> <paragraph num="(b)"> <text>Regardless of relinquishment, the Agency shall maintain an individual’s licensing records, to which public access is governed by General Provisions Article, §4-201, et seq., Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>Although relinquishment ends an individual’s obligation to comply with the Commission’s licensing requirements, relinquishment does not change or affect any other obligation.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Agency staff may deny a relinquishment request from an individual who is not in good standing.</text> </paragraph> <paragraph num="(7)"> <text>An individual who has relinquished a video lottery employee license may request that the Commission return the license to active status, and the Commission may require the individual to:</text> <paragraph num="(a)"> <text>Submit fingerprint cards; and</text> </paragraph> <paragraph num="(b)"> <text>Provide any other information that staff requires.</text> </paragraph> </paragraph> </paragraph> <paragraph num="L."> <text>Exemption from Mandatory Disqualification.</text> <paragraph num="(1)"> <text>Definition. In this section, “problem-solving court” means:</text> <paragraph num="(a)"> <text>A judiciary program under the Office of Problem-Solving Courts of the Maryland Administrative Office of the Courts; or</text> </paragraph> <paragraph num="(b)"> <text>A program from another state that:</text> <paragraph num="(i)"> <text>Provides a collaborative, therapeutic, nonadversarial approach to judicial supervision of eligible offenders; and</text> </paragraph> <paragraph num="(ii)"> <text>Is comparable to a judiciary program described in §L(1)(a) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except for a crime involving gambling, an applicant for a video lottery employee license is not disqualified from licensure under State Government Article, §9-1A-14(c)(1)(iii) or (iv), Annotated Code of Maryland, for a nonviolent misdemeanor offense for which the applicant has:</text> <paragraph num="(a)"> <text>Been convicted or is on active parole, probation, or prosecution; and</text> </paragraph> <paragraph num="(b)"> <text>Participated in and completed a problem-solving court program described in §L(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An applicant shall provide the Commission with documentation to verify the applicant’s exemption from disqualification under §L(2) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Manufacturer Licenses."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>Unless a manufacturer holds a valid manufacturer’s license issued by the Commission or Agency staff before conducting business with a licensee or the State, the manufacturer may not offer any video lottery terminal, table game device, central monitor and control system, associated equipment or software, or goods or services that directly relate to the operation of video lottery terminals or table games under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The following persons must meet the Commission's manufacturer license requirements:</text> <paragraph num="(a)"> <text>A manufacturer; and</text> </paragraph> <paragraph num="(b)"> <text>Each person that owns, controls, or is a representative of a manufacturer.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Qualification Requirements. Agency staff may issue a manufacturer license to a manufacturer that has:</text> <paragraph num="(1)"> <text>Paid the application and license fee under §C of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Unless exempt, obtained a bond required under Regulation .15 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Furnished the Commission or Agency staff with the information and documentation required under this chapter;</text> </paragraph> <paragraph num="(4)"> <text>Established by clear and convincing evidence that each person identified in §A(2) of this regulation has:</text> <paragraph num="(a)"> <text>Qualified under State Government Article, §9-1A-07(c), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>Not been disqualified under State Government Article, §9-1A-08, Annotated Code of Maryland;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Provided the Commission or Agency staff with sufficient information to establish that the manufacturer has otherwise qualified for a manufacturer license; and</text> </paragraph> <paragraph num="(6)"> <text>Established that its system, associated equipment or software, or goods or services meet the specifications and procedures in COMAR 36.03.12.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Application and License Fees.</text> <paragraph num="(1)"> <text>The application fee for a:</text> <paragraph num="(a)"> <text>Tier 1 manufacturer is $10,000; and</text> </paragraph> <paragraph num="(b)"> <text>Tier 2 manufacturer is $1,200.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The license fee or a:</text> <paragraph num="(a)"> <text>Tier 1 manufacturer of a central monitor and control system is $25,000;</text> </paragraph> <paragraph num="(b)"> <text>Tier 1 manufacturer of a video lottery terminal or table game equipment is $5,000;</text> </paragraph> <paragraph num="(c)"> <text>Tier 1 manufacturer of associated equipment and software in §C(2)(a) or (b) of this regulation is $5,000;</text> </paragraph> <paragraph num="(d)"> <text>Tier 1 manufacturer that distributes or resells a video lottery terminal, a table game device, a central monitor and control system, or associated equipment and software is $1,000; and</text> </paragraph> <paragraph num="(e)"> <text>Tier 2 manufacturer is $800.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>The manufacturer license authorizes the licensee to manufacture or distribute a video lottery terminal, table game equipment, central monitor and control system, and associated equipment and software to the Commission or a facility operator in the State.</text> </paragraph> <paragraph num="E."> <text>A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commission's regulations.</text> </paragraph> <paragraph num="F."> <text>Term; Renewal; License Renewal Fee.</text> <paragraph num="(1)"> <text>The term of a Tier 1 and Tier 2 manufacturer license is 5 years from the date of initial licensure.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may stagger the terms of licenses.</text> </paragraph> <paragraph num="(3)"> <text>Agency staff may renew the license if the manufacturer licensee:</text> <paragraph num="(a)"> <text>Submits an application for renewal to the Commission at least 6 months before the manufacturer’s license expires;</text> </paragraph> <paragraph num="(b)"> <text>Continues to comply with all licensing requirements;</text> </paragraph> <paragraph num="(c)"> <text>Submits to a background investigation under Regulation .05 of this chapter; and</text> </paragraph> <paragraph num="(d)"> <text>Pays a license renewal fee.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The license renewal fee for a:</text> <paragraph num="(a)"> <text>Tier 1 manufacturer of a central monitor and control system is $25,000;</text> </paragraph> <paragraph num="(b)"> <text>Except as provided in §F(4)(a) of this regulation, Tier 1 manufacturer is $5,000; and</text> </paragraph> <paragraph num="(c)"> <text>Tier 2 manufacturer is $800.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Background Investigation Deposit.</text> <paragraph num="(1)"> <text>A $2,000 background investigation deposit is required at the time an applicant files a manufacturer license application.</text> </paragraph> <paragraph num="(2)"> <text>If the deposit is exhausted prior to completion of the background investigation, the applicant will be billed for any additional investigative costs the Commission incurs.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Contractor Licenses."> <paragraph num="A."> <text>General. If a video lottery operation licensee engages a Tier 1 or Tier 2 contractor to provide services described in COMAR 36.03.01.02B(2), the contractor shall qualify under the standards and provisions set forth in State Government Article, §§9-1A-07 and 9-1A-08, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Qualification Requirements. Agency staff may issue Tier 1 or Tier 2 a contractor license to a person that has provided the Commission or Agency staff with sufficient information to establish by clear and convincing evidence that it:</text> <paragraph num="(1)"> <text>Is qualified under State Government Article, §9-1A-07(c), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>Has not been disqualified under State Government Article, §9-1A-08, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission may charge a Tier 1 or Tier 2 contractor for the administrative costs associated with performing a background investigation.</text> </paragraph> <paragraph num="D."> <text>Application and License Fees.</text> <paragraph num="(1)"> <text>For a Tier 1 contractor:</text> <paragraph num="(a)"> <text>The application fee is $1,500;</text> </paragraph> <paragraph num="(b)"> <text>The license fee is $2,500; and</text> </paragraph> <paragraph num="(c)"> <text>The Background investigation deposit is $2,000.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a Tier 2 contractor:</text> <paragraph num="(a)"> <text>The application fee is $750;</text> </paragraph> <paragraph num="(b)"> <text>The license fee is $800; and</text> </paragraph> <paragraph num="(c)"> <text>The background investigation deposit is $2,000.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Term; Renewal; Fees.</text> <paragraph num="(1)"> <text>The term of a Tier 1 and Tier 2 contractor license is 5 years from the date of the initial licensure.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may stagger the terms of licenses.</text> </paragraph> <paragraph num="(3)"> <text>Agency staff may renew the license if the contractor licensee:</text> <paragraph num="(a)"> <text>Submits an application for renewal to the Commission at least 6 months before the contractor's license expires;</text> </paragraph> <paragraph num="(b)"> <text>Continues to comply with all licensing requirements;</text> </paragraph> <paragraph num="(c)"> <text>Submits to a background investigation under Regulation .05 of this chapter; and</text> </paragraph> <paragraph num="(d)"> <text>Pays a license renewal fee.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The license renewal fee for a:</text> <paragraph num="(a)"> <text>Tier 1 contractor is $2,500; and</text> </paragraph> <paragraph num="(b)"> <text>Tier 2 contractor is $800.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The background investigation deposit for license renewal of a Tier 1 or Tier 2 contractor is $2,000.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A Tier 1 and Tier 2 contractor is exempt from:</text> <paragraph num="(1)"> <text>Bond requirements under Regulation .15 of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>Labor peace agreement requirements under State Government Article, §9-1A-07(c)(7)(v), Annotated Code of Maryland, unless the contractor is engaged:</text> <paragraph num="(a)"> <text>As a lessee;</text> </paragraph> <paragraph num="(b)"> <text>As a tenant; or</text> </paragraph> <paragraph num="(c)"> <text>Under a management agreement.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Bonds."> <paragraph num="A."> <text>The Commission may require an applicant or licensee to obtain a bond before the Commission issues or reissues a license.</text> </paragraph> <paragraph num="B."> <text>A video lottery employee may be exempted if the employee is not directly involved in video lottery operations and is employed:</text> <paragraph num="(1)"> <text>As a nongaming employee; or</text> </paragraph> <paragraph num="(2)"> <text>In any other category of video lottery employee for whom the Commission determines the bond is not necessary to protect the public interest.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A bond shall be for the benefit of the State for the faithful performance of the requirements imposed by State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and any regulations issued under that subtitle.</text> </paragraph> <paragraph num="D."> <text>For an operator of a facility, or an entity that contracts with the operator of a facility to provide any of the services related to operating the facility, the amount of the bond may not exceed three times the initial licensing fee under State Government Article, §9-1A-36(j), Annotated Code of Maryland.</text> </paragraph> <paragraph num="E."> <text>For a manufacturer, the amount of the bond shall be specified in the Commission’s contract with manufacturers of video lottery terminals.</text> </paragraph> <paragraph num="F."> <text>For a gaming employee, who is not covered by a bond under §D of this regulation, the amount of the bond:</text> <paragraph num="(1)"> <text>Shall be determined by the Commission based on the employee’s level of responsibility and the State’s risk of exposure to liability for the employee’s performance; and</text> </paragraph> <paragraph num="(2)"> <text>May not exceed three times the gaming employee’s initial licensing fee.</text> </paragraph> </paragraph> <paragraph num="G."> <text>For any other licensee, the amount of the bond shall be determined by the Commission.</text> </paragraph> <paragraph num="H."> <text>The Commission may not issue or reissue a license unless it has received satisfactory proof of a bond.</text> </paragraph> <paragraph num="I."> <text>The Commission may apply a bond to the payment of an unpaid liability of the applicant or licensee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Denial of a License."> <paragraph num="A."> <text>Denial of a Video Lottery Employee, Manufacturer, or Contractor License.</text> <paragraph num="(1)"> <text>In addition to the hearing requirements in §B of this regulation, the following process shall precede a hearing on the denial of a video lottery employee, manufacturer, or contractor license.</text> </paragraph> <paragraph num="(2)"> <text>After reviewing an application submitted for a video lottery employee, manufacturer, or contractor license, the Director may recommend that the Commission deny the application of an applicant who:</text> <paragraph num="(a)"> <text>Has not established by clear and convincing evidence that the applicant meets applicable qualifications; or</text> </paragraph> <paragraph num="(b)"> <text>Has violated:</text> <paragraph num="(i)"> <text>A provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(ii)"> <text>A regulation adopted pursuant to State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(iii)"> <text>A condition set by the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the Director recommends that the Commission deny a video lottery employee, manufacturer, or contractor license, the Director, or the Director's designee, shall promptly provide the applicant with written notice of the:</text> <paragraph num="(a)"> <text>Recommendation for denial;</text> </paragraph> <paragraph num="(b)"> <text>Basis for the recommendation; and</text> </paragraph> <paragraph num="(c)"> <text>Applicant's right to request a reconsideration meeting with the Director or the Director's designee.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>An applicant may submit to the Commission a written request for a reconsideration meeting within 15 days of the date of the notice described in §A(3) of this regulation.</text> </paragraph> <paragraph num="(5)"> <text>If an applicant fails to timely submit a request under §A(4) of this regulation, the Commission may adopt as final the recommendation of the Director or the Director's designee.</text> </paragraph> <paragraph num="(6)"> <text>During a reconsideration meeting, an applicant may:</text> <paragraph num="(a)"> <text>Be represented by counsel; and</text> </paragraph> <paragraph num="(b)"> <text>Present evidence as to why the license should be granted;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>If after the reconsideration meeting the applicant is dissatisfied with the recommendation of the Director or the Director's designee, the applicant may submit to the Commission, in writing:</text> <paragraph num="(a)"> <text>A request for hearing before the Commission on the recommendation of the Director or the Director's designee; and</text> </paragraph> <paragraph num="(b)"> <text>The applicant's legal and factual bases for disagreeing with the recommendation of the Director or the Director's designee.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>An applicant may submit a hearing request to the Commission within 15 days of the date of the recommendation of the Director or the Director's designee after the reconsideration meeting.</text> </paragraph> <paragraph num="(9)"> <text>If an applicant fails to timely submit a written hearing request under §A(8) of this regulation, the Commission may adopt as final the recommendation of the Director or the Director's designee.</text> </paragraph> <paragraph num="(10)"> <text>Upon receipt of a timely written hearing request, the Director shall provide the applicant a hearing notice for a hearing before the Commission.</text> </paragraph> <paragraph num="(11)"> <text>The Director's hearing notice, and the Commission hearing at which the recommended denial will be considered, shall comply with the requirements of COMAR 36.01.02.06.</text> </paragraph> <paragraph num="(12)"> <text>The Commission shall:</text> <paragraph num="(a)"> <text>Grant the license after determining that the applicant is qualified; or</text> </paragraph> <paragraph num="(b)"> <text>Deny the license after determining that the applicant:</text> <paragraph num="(i)"> <text>Is not qualified or is disqualified; or</text> </paragraph> <paragraph num="(ii)"> <text>Has violated a provision described in §A(2)(b) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(13)"> <text>Following a hearing at which a license is denied, the Commission shall:</text> <paragraph num="(a)"> <text>Prepare an order denying the license with a statement of the reasons and specific findings of fact; and</text> </paragraph> <paragraph num="(b)"> <text>Provide the applicant with written notification of its final action.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission's final action on a license denial is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Vendor Registration."> <paragraph num="A."> <text>Definitions. In this regulation, the following terms have the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Commission” means Agency staff in this regulation.</text> </paragraph> <paragraph num="(2)"> <text>Vendor.</text> <paragraph num="(a)"> <text>“Vendor” means a person that:</text> <paragraph num="(i)"> <text>Provides goods or services at a value of $50,000 or more to a video lottery operation applicant or licensee; and</text> </paragraph> <paragraph num="(ii)"> <text>Is not required to be licensed as a manufacturer or contractor under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or this chapter.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Vendor” does not include:</text> <paragraph num="(i)"> <text>Public utilities that provide water, sewerage, electricity; or natural gas;</text> </paragraph> <paragraph num="(ii)"> <text>Insurance companies that provide insurance to a video lottery applicant or licensee or its employees;</text> </paragraph> <paragraph num="(iii)"> <text>Employee benefit and retirement plans, including 401(k) plans and employee stock purchase programs;</text> </paragraph> <paragraph num="(iv)"> <text>Professional associations that receive funds from the video lottery applicant or licensee for the cost of enrollment, activities, and membership;</text> </paragraph> <paragraph num="(v)"> <text>Units of federal, State, county, or municipal government;</text> </paragraph> <paragraph num="(vi)"> <text>Manufacturers of alcoholic beverages;</text> </paragraph> <paragraph num="(vii)"> <text>State-chartered or federally chartered banks or savings and loan associations;</text> </paragraph> <paragraph num="(viii)"> <text>Providers of professional services, including accountants, attorneys, engineers or architects, and others identified by Agency staff to be providers of professional services;</text> </paragraph> <paragraph num="(ix)"> <text>Telecommunication, satellite, or internet services;</text> </paragraph> <paragraph num="(x)"> <text>Parcel shipping and delivery services;</text> </paragraph> <paragraph num="(xi)"> <text>Persons that engage in efforts to influence legislative or administrative action on behalf of a video lottery operation applicant or licensee for economic consideration;</text> </paragraph> <paragraph num="(xii)"> <text>Educational or training opportunities for facility employees;</text> </paragraph> <paragraph num="(xiii)"> <text>Professional or amateur entertainers, sports figures, social media personalities, or other celebrities engaged by a video lottery operation licensee to appear at a licensee-sponsored entertainment or promotional event;</text> </paragraph> <paragraph num="(xiv)"> <text>Representatives of a media outlet or provider of a simulcast service;</text> </paragraph> <paragraph num="(xv)"> <text>A vendor that provides, or anticipates providing, within a calendar year a combined total value of nongaming related goods and services to State video lottery operation applicants or licensees of less than $50,000; or</text> </paragraph> <paragraph num="(xvi)"> <text>A vendor for whom the Commission determines is not necessary in order to protect the public interest.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Except as provided in §§D and G of this regulation, a vendor that conducts business with a video lottery operation applicant or licensee shall be registered with the Commission.</text> </paragraph> <paragraph num="D."> <text>Certain Vendors Exempt from Registration Requirements.</text> <paragraph num="(1)"> <text>A vendor is exempt from registration requirements if it provides, or anticipates providing, goods or services that a video lottery operator purchases solely to be given to a player.</text> </paragraph> <paragraph num="(2)"> <text>A vendor exempted under this section may only provide the following goods and services to a video lottery facility operator:</text> <paragraph num="(a)"> <text>Leisure or recreational travel;</text> </paragraph> <paragraph num="(b)"> <text>Lodging;</text> </paragraph> <paragraph num="(c)"> <text>Vehicles;</text> </paragraph> <paragraph num="(d)"> <text>Entertainment;</text> </paragraph> <paragraph num="(e)"> <text>Dining;</text> </paragraph> <paragraph num="(f)"> <text>Clothing;</text> </paragraph> <paragraph num="(g)"> <text>Jewelry;</text> </paragraph> <paragraph num="(h)"> <text>Gift cards; or</text> </paragraph> <paragraph num="(i)"> <text>Other gift items.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A video lottery operator that purchases goods or services from a vendor exempted under this section:</text> <paragraph num="(a)"> <text>Is subject to the requirements of COMAR 36.03.10.09; and</text> </paragraph> <paragraph num="(b)"> <text>Shall identify in a report submitted under COMAR 36.03.10.09 each exempted vendor from which it purchased goods or services during the reporting period.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Vendor Registration.</text> <paragraph num="(1)"> <text>A vendor that provides, or anticipates providing, nongaming related goods and services to a single video lottery operation applicant or licensee shall be registered with the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The video lottery operation applicant or licensee to which a vendor provides, or anticipates providing, the nongaming related goods and services shall submit to the Commission a completed registration form in a format designated by the Commission that includes:</text> <paragraph num="(a)"> <text>Vendor name;</text> </paragraph> <paragraph num="(b)"> <text>Vendor business address;</text> </paragraph> <paragraph num="(c)"> <text>Type of goods or services provided;</text> </paragraph> <paragraph num="(d)"> <text>Total value of goods or services provided to video lottery applicants or licensees in the State within a calendar year;</text> </paragraph> <paragraph num="(e)"> <text>Documentation that:</text> <paragraph num="(i)"> <text>The vendor’s business is in good standing or active with the Maryland State Department of Assessment and Taxation; or</text> </paragraph> <paragraph num="(ii)"> <text>The vendor is not a legal entity that is required to register with the Maryland State Department of Assessments and Taxation;</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>Registration fee of $100; and</text> </paragraph> <paragraph num="(g)"> <text>Any other information the Commission requires.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Upon receipt of the registration fee and completed registration form, the Commission shall provide the applicant or licensee with written notification of whether it has registered the vendor.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Except as provided in §G of this regulation, a vendor may not provide goods or services related to a video lottery operation applicant or licensee until it is registered with the Commission.</text> </paragraph> <paragraph num="G."> <text>Emergency Notification. An applicant or licensee may accept goods or services from a vendor that is not registered by the Commission if:</text> <paragraph num="(1)"> <text>The applicant or licensee encounters an emergent threat to public health, safety, or welfare that is outside its control and requires immediate provision of goods or services by a vendor; and</text> </paragraph> <paragraph num="(2)"> <text>Except as provided in §C of this regulation:</text> <paragraph num="(a)"> <text>No later than the next State business day after the vendor’s emergency provision of goods or services, the applicant or licensee shall submit to the Commission a vendor emergency notification form that includes an explanation of the need for its emergency use of a vendor that is not registered with the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Within 20 business days of submitting the vendor emergency notification form, the applicant or licensee shall submit to the Commission a vendor registration form.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>A vendor’s registration:</text> <paragraph num="(1)"> <text>Remains in effect for 5 years from the date the Commission approves the registration;</text> </paragraph> <paragraph num="(2)"> <text>May be renewed by the Commission if the vendor submits the required form, and renewal fee required in §I of this regulation, as required under §D</text> </paragraph> <paragraph num="(3)"> <text>Shall automatically expire if a vendor does not comply with renewal requirements under this regulation; and</text> </paragraph> <paragraph num="(4)"> <text>Is subject to cancellation by the Commission if the Commission determines that the vendor's continued conduct of business with a video lottery operation applicant or licensee is contrary to the public interest of the State or the policies in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or this subtitle.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Renewal Fee. The renewal fee for a vendor is $100.</text> </paragraph> <paragraph num="J."> <text>The Commission’s decision to deny or cancel a vendor registration, or to deny the renewal of a vendor registration, does not give rise to an appeal right under the contested case provisions of the Maryland Administrative Procedure Act.</text> </paragraph> <paragraph num="K."> <text>The Commission may maintain and make publicly available a list of:</text> <paragraph num="(1)"> <text>Registered vendors; and</text> </paragraph> <paragraph num="(2)"> <text>Vendors that are prohibited from doing business with a video lottery operation applicant or licensee because the Commission has denied or cancelled their application or registration.</text> </paragraph> </paragraph> <paragraph num="L."> <text>A video lottery operation applicant or licensee shall:</text> <paragraph num="(1)"> <text>Submit to the Commission a monthly vendor payments report in a format prescribed by the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>Ensure that a vendor appearing on its monthly vendor payments report is:</text> <paragraph num="(a)"> <text>Registered;</text> </paragraph> <paragraph num="(b)"> <text>Exempt.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Identification Cards for Video Lottery Employees."> <paragraph num="A."> <text>The Commission shall issue an identification card to an individual who is licensed as a video lottery employee.</text> </paragraph> <paragraph num="B."> <text>Identification Card.</text> <paragraph num="(1)"> <text>An identification card shall display a photograph of the licensee and, at a minimum, indicate:</text> <paragraph num="(a)"> <text>The individual's name;</text> </paragraph> <paragraph num="(b)"> <text>By color, pattern, or symbol, the licensing category; and</text> </paragraph> <paragraph num="(c)"> <text>The license expiration date.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An identification card is evidence that the licensee is authorized to be employed in the designated licensing category by a licensed facility operator, manufacturer, or contractor.</text> </paragraph> <paragraph num="(3)"> <text>An identification card is the property of the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Licensee Obligations. A licensee:</text> <paragraph num="(1)"> <text>Shall wear or otherwise prominently display the licensee’s identification card at all times while working unless otherwise approved by the Commission for a specific date and time;</text> </paragraph> <paragraph num="(2)"> <text>Shall immediately report a loss or theft of the card to the licensee’s employer and the Commission;</text> </paragraph> <paragraph num="(3)"> <text>May not allow another individual to possess the card; and</text> </paragraph> <paragraph num="(4)"> <text>Shall comply with an order of the Commission to surrender the card.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Replacement Identification Card.</text> <paragraph num="(1)"> <text>If an identification card issued under this regulation is lost or stolen:</text> <paragraph num="(a)"> <text>The licensee shall immediately:</text> <paragraph num="(i)"> <text>Report the loss or theft to the licensee’s employer; and</text> </paragraph> <paragraph num="(ii)"> <text>In a form or format designated by the Commission, submit to the Commission a written description of the circumstances of the loss or theft; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>After verifying the licensee’s identity, the Commission may issue a new identification card to the licensee.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If an identification card issued under this regulation is temporarily unavailable to the licensee:</text> <paragraph num="(a)"> <text>The licensee shall immediately:</text> <paragraph num="(i)"> <text>Report the temporary unavailability of the card to the licensee’s employer; and</text> </paragraph> <paragraph num="(ii)"> <text>In a form or format designated by the Commission, submit to the Commission a written description as to why the card is temporarily unavailable;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>After verifying the licensee’s identity, the Commission may issue an emergency credential to the licensee that is valid for 1 work day; and</text> </paragraph> <paragraph num="(c)"> <text>The licensee shall surrender the emergency credential to the Commission at the end of the work day on which the licensee received the card.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the Commission issues a replacement or temporary identification card to a licensee, the licensee’s employer shall pay the Commission:</text> <paragraph num="(a)"> <text>$40 for the cost of a replacement identification card; or</text> </paragraph> <paragraph num="(b)"> <text>$20 for the cost of a temporary identification card.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Surrender and Reissuance of Identification Card.</text> <paragraph num="(1)"> <text>The employer of the video lottery employee who was issued an identification card under this regulation shall ensure that the licensee’s identification card is surrendered to the Commission if the:</text> <paragraph num="(a)"> <text>Commission suspends or revokes the license;</text> </paragraph> <paragraph num="(b)"> <text>License is not renewed;</text> </paragraph> <paragraph num="(c)"> <text>Licensee separates from employment with licensee’s employer; or</text> </paragraph> <paragraph num="(d)"> <text>Licensee is otherwise ordered to surrender the identification card.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If an identification card is not surrendered as required under §D(2)(c) or E(1) of this regulation, the licensee’s employer may be subject to enforcement action under COMAR 36.03.04.</text> </paragraph> <paragraph num="(3)"> <text>If an identification card was surrendered when the licensee separated employment from the licensee’s employer, the Commission may issue the licensee another identification card if the:</text> <paragraph num="(a)"> <text>Licensee obtains employment with a licensed facility operator, manufacturer, or contractor;</text> </paragraph> <paragraph num="(b)"> <text>Term of the license has not expired; and</text> </paragraph> <paragraph num="(c)"> <text>Commission verifies:</text> <paragraph num="(i)"> <text>The licensee’s identity;</text> </paragraph> <paragraph num="(ii)"> <text>That the license was in good standing when the card was surrendered; and</text> </paragraph> <paragraph num="(iii)"> <text>That the license has not expired and remains in good standing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Nothing in this regulation shall preclude the Commission from taking enforcement action against a licensee based on the circumstances related to the licensee’s separation from employment or information obtained while reviewing a licensee’s notification of an intended change in employment status.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">: State Government Article, §§9-1A-01, 9-1A-02, 9-1A-04, 9-1A-06, 9-1A-07, 9-1A-12—9-1A-16, 9-1A-19, 9-1A-20, and 9-1A-24, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.18 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.18 adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A, C amended as an emergency provision effective July 1, 2015 (42:15 Md. R. 1014); amended permanently effective September 14, 2015 (42:18 Md. R. 1180)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective July 1, 2015 (42:15 Md. R. 1014); amended permanently effective September 14, 2015 (42:18 Md. R. 1180)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06M adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective August 18, 2014 (41:16 Md. R. 947)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended as an emergency provision effective July 1, 2015 (42:15 Md. R. 1014); amended permanently effective September 14, 2015 (42:18 Md. R. 1180)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective March 14, 2016 (43:5 Md. R. 388)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12A, E amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12H, I amended effective December 12, 2013 (40:24 Md. R. 2018)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective December 12, 2013 (40:24 Md. R. 2018)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13C amended effective March 14, 2016 (43:5 Md. R. 388)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14B, E amended effective December 12, 2013 (40:24 Md. R. 2018)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14D, E amended effective March 14, 2016 (43:5 Md. R. 388)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16A amended effective March 14, 2016 (43:5 Md. R. 388)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17 amended effective July 4, 2016 (43:13 Md. R. 714)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17C amended effective September 6, 2021 (48:18 Md. R. 695)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17D amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18C—E amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18E amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> </annotations> </chapter> <chapter num="03" heading="Video Lottery Operation License"> <regulation prefix="Regulation" num=".01" heading="General."> <paragraph num="A."> <text>This chapter articulates the standards which the Commission shall use to:</text> <paragraph num="(1)"> <text>Qualify an applicant for a video lottery facility operation license; and</text> </paragraph> <paragraph num="(2)"> <text>Renew a video lottery facility operation license.</text> </paragraph> </paragraph> <paragraph num="B."> <text>After being awarded an operation license by the Location Commission, a facility operation license holder shall maintain compliance with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this subtitle.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definition."> <paragraph num="A."> <text>In addition to the terms defined in COMAR 36.03.01.02, in this chapter, the following term has the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Term Defined. “Application” means a written request for an operation license, and includes a proposal submitted to the Location Commission in response to a solicitation from that Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Application."> <paragraph num="A."> <text>An applicant for an operation license shall submit an application in the form and format established by the Location Commission.</text> </paragraph> <paragraph num="B."> <text>The Commission shall receive an application for an operation license from the Location Commission.</text> </paragraph> <paragraph num="C."> <text>The Commission shall review an application to determine whether the applicant is qualified to hold an operation license.</text> </paragraph> <paragraph num="D."> <text>Upon making a determination as to an applicant's qualifications to hold an operation license, the Commission shall notify the Location Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Qualification by the Commission."> <paragraph num="A."> <text>In determining the qualifications of an applicant for an operation license, the Commission shall consider the information submitted by the applicant in response to the Location Commission's solicitation.</text> </paragraph> <paragraph num="B."> <text>An applicant for an operation license shall present in its application sufficient information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence:</text> <paragraph num="(1)"> <text>The applicant's financial stability, integrity, and responsibility;</text> </paragraph> <paragraph num="(2)"> <text>The integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bears a relation to the application;</text> </paragraph> <paragraph num="(3)"> <text>The applicant's good character, honesty, and integrity;</text> </paragraph> <paragraph num="(4)"> <text>Sufficient business ability and experience of the applicant; and</text> </paragraph> <paragraph num="(5)"> <text>The viability and appropriateness of the applicant's labor practices.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission shall disqualify an applicant for an operation license on the basis of any of the following criteria:</text> <paragraph num="(1)"> <text>Failure of the applicant to prove by clear and convincing evidence that the applicant and each person who owns or controls the applicant are qualified;</text> </paragraph> <paragraph num="(2)"> <text>Failure of the applicant or any person required to be qualified as a condition of a license to provide information, documentation, and assurances required by or requested by the Commission or the Location Commission;</text> </paragraph> <paragraph num="(3)"> <text>Failure of the applicant or any person required to be qualified as a condition of a license to reveal any fact material to qualification;</text> </paragraph> <paragraph num="(4)"> <text>Supplying, by the applicant or any person required to be qualified as a condition of a license, information that is untrue or misleading as to a material fact concerning the qualification criteria;</text> </paragraph> <paragraph num="(5)"> <text>Conviction of the applicant, or of any person required to be qualified as a condition of a license, of an offense under the laws of any jurisdiction that is a criminal offense involving moral turpitude or a gambling offense;</text> </paragraph> <paragraph num="(6)"> <text>Current prosecution of the applicant, or a person who is required to be qualified as a condition of a license, for an offense described under §C(5) of this regulation, provided that, at the request of the applicant, the Commission may defer its decision on the application during the pendency of the charge;</text> </paragraph> <paragraph num="(7)"> <text>Pursuit by the applicant, or a person who is required to be qualified as a condition of a license, of economic gain in an occupational manner or context that is in violation of the laws of the State, if the pursuit creates a reasonable belief that participation of the applicant in video lottery operations would be inimical to the policies of State law and this chapter;</text> </paragraph> <paragraph num="(8)"> <text>Identification of the applicant, or a person who is required to be qualified as a condition of a license, as a career offender, a member of a career offender cartel, or an associate of a career offender or career offender cartel, in a manner that creates a reasonable belief that the association is of a nature as to be inimical to the policies of State law and this chapter;</text> </paragraph> <paragraph num="(9)"> <text>The commission of an act by the applicant, or a person who is required to be qualified as a condition of a license, within the prior 7 years, that would constitute an offense described under §C(5) of this regulation, even if the act was not prosecuted or may not be prosecuted under the criminal laws of any jurisdiction; or</text> </paragraph> <paragraph num="(10)"> <text>Willful defiance by the applicant, or a person who is required to be qualified as a condition of a license, of a legislative investigatory body or other official investigatory body of the United States, or a jurisdiction within the United States, when the body is engaged in the investigation of crimes relating to gambling, official corruption, or organized crime activity.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If the Commission identifies potential problems in the information submitted by the applicant with regard to a subject area that is not relevant to §B or C of this regulation, the Commission shall notify the Location Commission of these potential problems.</text> </paragraph> <paragraph num="E."> <text>The Commission shall notify the Location Commission upon making a determination that an applicant is or is not qualified to hold an operation license.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Issuance of License; Term."> <paragraph num="A."> <text>The Commission shall issue an operation license to the applicant selected for award by the Location Commission.</text> </paragraph> <paragraph num="B."> <text>For an original license for a location that was awarded by the Video Lottery Facility Location Commission and issued by the Commission, the term of a license is 15 years from the date issued.</text> </paragraph> <paragraph num="C."> <text>As described in Regulation .10 of this chapter, upon timely and proper application, the Commission shall renew the operation license of a qualified operator.</text> </paragraph> <paragraph num="D."> <text>A renewal term of a license is 15 years from expiration of the existing term.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Continuing Obligations."> <paragraph num="A."> <text>Upon issuance or renewal of an operation license, a license holder shall exercise all diligence in fulfilling the specific requirements set out in the Location Commission’s request for proposals and the specific details in its license application, including all of the details in the final proposal that the license holder submitted to, and was approved by, the Location Commission.</text> </paragraph> <paragraph num="B."> <text>As required under State Government Article, §9-1A-19(b), Annotated Code of Maryland, an operation licensee may not sell or otherwise transfer more than 5 percent of the legal or beneficial interests of the licensee unless the Commission approves the transfer in advance.</text> </paragraph> <paragraph num="C."> <text>Failure to comply with the specific details referred to in §A or B of this regulation shall be grounds for the Commission invoking against the licensee the sanctions described in COMAR 36.03.04.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Automated Teller Machines."> <paragraph num="A."> <text>Placement; Limitations.</text> <paragraph num="(1)"> <text>Subject to surveillance requirements in COMAR 36.03.10.11 and 36.03.11.04, a facility operator may place automated teller machines on the gaming floor within the facility.</text> </paragraph> <paragraph num="(2)"> <text>Gaming Floor. The proximity of an automated teller machine to a video lottery terminal or table game that is on a gaming floor is subject to the following limitations:</text> <paragraph num="(a)"> <text>An automated teller machine may be placed no closer than 7 feet to a video lottery terminal or table game; and</text> </paragraph> <paragraph num="(b)"> <text>There may be no more than one automated teller machine for every 75 video lottery terminals and table game seats.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Withdrawal Limits. Exclusive of transaction fees or surcharges, the maximum amount that a player may withdraw from an account by using an automated teller machine located on the gaming floor is no more than $2,500 per gaming day.</text> </paragraph> <paragraph num="C."> <text>Negotiable Instruments Prohibited.</text> <paragraph num="(1)"> <text>In this regulation, "negotiable instruments” means an electronic benefit card, debit card, or similar instrument issued by the Department of Human Services for the purpose of accessing temporary cash assistance.</text> </paragraph> <paragraph num="(2)"> <text>An automated teller machine may not accept a negotiable instrument.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Predatory Marketing."> <paragraph num="A."> <text>Definition. In this regulation, the following term has the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Term Defined.</text> <paragraph num="(1)"> <text>“Predatory marketing practice” means an advertisement or promotion of an activity, product, or service related to play of a video lottery terminal or table game that is:</text> <paragraph num="(a)"> <text>False or deceptive;</text> </paragraph> <paragraph num="(b)"> <text>Illegal; or</text> </paragraph> <paragraph num="(c)"> <text>Knowingly directed to an individual:</text> <paragraph num="(i)"> <text>Who is under the age of 21 years;</text> </paragraph> <paragraph num="(ii)"> <text>Whose name is included on the voluntary exclusion list maintained by the Commission under COMAR 36.01.03;</text> </paragraph> <paragraph num="(iii)"> <text>Whose name is included on the mandatory exclusion list maintained by the Commission under COMAR 36.03.07; or</text> </paragraph> <paragraph num="(iv)"> <text>Who is otherwise prohibited by law or court order from being on the premises of any video lottery operation licensed by the State.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Predatory marketing practice” includes an advertisement or promotion of an activity, product, or service related to play of a video lottery terminal or table game that:</text> <paragraph num="(a)"> <text>Uses or depicts an individual who is, or appears to be, under the age of 21 years;</text> </paragraph> <paragraph num="(b)"> <text>By font, color, placement, or any other means:</text> <paragraph num="(i)"> <text>Obscures or fails to disclose any material condition or limiting factor associated with the activity, product, or service that is being marketed; or</text> </paragraph> <paragraph num="(ii)"> <text>Obscures the gambling assistance message required under COMAR 36.03.06.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator may not:</text> <paragraph num="(1)"> <text>Engage in a predatory marketing practice; or</text> </paragraph> <paragraph num="(2)"> <text>Contract with another person to engage in a predatory marketing practice.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Noninterference."> <paragraph num="A."> <text>Interference. Unless allowed by the First Amendment of the Constitution of the United States, a licensee may not knowingly, directly or indirectly, interfere with, hinder, obstruct, impede, or take any action to delay the implementation or establishment of a video lottery facility.</text> </paragraph> <paragraph num="B."> <text>Prohibition. The restrictions specified in §A of this regulation shall:</text> <paragraph num="(1)"> <text>Prohibit, as unlawful indirect conduct, activity:</text> <paragraph num="(a)"> <text>By an entity in which the licensee owns a beneficial or proprietary interest; or</text> </paragraph> <paragraph num="(b)"> <text>By an entity in which an affiliate of the licensee owns a beneficial or propriety interest; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Be deemed to prohibit as unlawful, activity:</text> <paragraph num="(a)"> <text>By an entity in which the licensee owns a beneficial or proprietary interest; or</text> </paragraph> <paragraph num="(b)"> <text>By an entity in which an affiliate of the licensee owns a beneficial or propriety interest.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Civil Penalty or Sanction. A knowing violation of §A of this regulation may be used by the Commission to take enforcement action under COMAR 36.03.04.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Renewal of Operation License."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>Unless otherwise specified, nothing in this chapter changes a requirement set forth in applicable law or regulation.</text> </paragraph> <paragraph num="(2)"> <text>Unless the Commission finds that the licensee is not qualified to hold a license, the Commission shall renew an operation license.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notice of Intent to Apply for Renewal.</text> <paragraph num="(1)"> <text>If a licensee seeks renewal of its operation license, the licensee shall submit to the Commission a timely and proper notice of intent to apply for renewal:</text> <paragraph num="(a)"> <text>At least 2 years, but not more than 5 years, before the expiration of a license term; and</text> </paragraph> <paragraph num="(b)"> <text>In a form and format required by the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The notice of intent shall include:</text> <paragraph num="(a)"> <text>Name under which the licensee operates;</text> </paragraph> <paragraph num="(b)"> <text>Identification of all persons that are legal or beneficial owners as defined in State Government Article, §9-1A-05(d), Annotated Code of Maryland, and COMAR 36.03.01;</text> </paragraph> <paragraph num="(c)"> <text>An affidavit signed by an authorized representative affirming that the licensee:</text> <paragraph num="(i)"> <text>Intends to apply for license renewal;</text> </paragraph> <paragraph num="(ii)"> <text>Is currently in compliance with all applicable requirements in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this subtitle;</text> </paragraph> <paragraph num="(iii)"> <text>Acknowledges that the Agency may begin investigating the licensee’s qualifications upon receiving the notice of intent;</text> </paragraph> <paragraph num="(iv)"> <text>Acknowledges that the licensee is responsible for reimbursing the Agency for the cost of the investigation;</text> </paragraph> <paragraph num="(v)"> <text>Attests to the truth and accuracy of the notice of intent; and</text> </paragraph> <paragraph num="(vi)"> <text>Agrees to the release of information; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Any other information the Commission requires.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Application to Renew Video Lottery Operation License.</text> <paragraph num="(1)"> <text>If a licensee submitted a timely and proper notice of intent to apply for renewal of the operation license, the licensee may submit an application to renew the license.</text> </paragraph> <paragraph num="(2)"> <text>A licensee shall submit an application to renew:</text> <paragraph num="(a)"> <text>At least 1 year, but not more than 5 years, before the expiration of a license term; and</text> </paragraph> <paragraph num="(b)"> <text>In a form and format required by the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The application shall include:</text> <paragraph num="(a)"> <text>Proof of the $1,000,000 performance bond;</text> </paragraph> <paragraph num="(b)"> <text>Proof of the $2,000,000 payment bond;</text> </paragraph> <paragraph num="(c)"> <text>Proof of the $100,000 fidelity bond; and</text> </paragraph> <paragraph num="(d)"> <text>Any other information the Commission requires.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>After completing the investigation of qualifications under §D of this regulation, the Agency shall provide the Commission with the investigation results and a recommendation about the licensee’s qualifications.</text> </paragraph> <paragraph num="(5)"> <text>If the Agency recommends the Commission find the licensee qualified, the Commission shall issue a license renewal.</text> </paragraph> <paragraph num="(6)"> <text>If the Agency recommends that the Commission find the licensee not qualified, the Commission shall notify the licensee of the recommendation and provide the licensee with due process required for denial of a license application in COMAR 36.03.02.16.B.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Investigation of Qualifications.</text> <paragraph num="(1)"> <text>The Commission may choose to commence its investigation no sooner than 2 years before expiration of the licensee’s current license.</text> </paragraph> <paragraph num="(2)"> <text>If an application is submitted prior to 2 years before the expiration of the licensee’s existing license, the licensee shall:</text> <paragraph num="(a)"> <text>Update its license application within 2 years of the expiration of the existing license; and</text> </paragraph> <paragraph num="(b)"> <text>Provide any additional information required by the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Agency shall:</text> <paragraph num="(a)"> <text>Conduct the investigation of the licensee’s qualifications in the same manner as under COMAR 36.03.02; and</text> </paragraph> <paragraph num="(b)"> <text>Apply the qualification criteria in Regulation .04B and C of this chapter.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A licensee shall pay a deposit and submit reimbursement to the Commission for the costs of the investigation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>License Renewal Fee.</text> <paragraph num="(1)"> <text>If the Commission renews a video lottery facility operation license, the licensee shall pay the license renewal fee in equal annual installments, as provided in State Government Article, §9-1A-13(d)(6), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>For each 5-year period of the 15-year renewal term, the video lottery licensee shall pay an amount calculated as the most recent 3-year average of:</text> <paragraph num="(a)"> <text>0.75 percent of the amounts wagered less the amounts paid as prizes for VLTs and banked table games; and</text> </paragraph> <paragraph num="(b)"> <text>Plus 0.75 percent of the facility share of non-banked table game revenues.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>On or before the date the Commission renews the license, the licensee shall pay the first installment of the license renewal fee, representing 20 percent of the total fee due.</text> </paragraph> <paragraph num="(4)"> <text>Subsequent payments shall be paid on the anniversary of the license renewal.</text> </paragraph> <paragraph num="(5)"> <text>At the conclusion of each 5-year period, a new 3-year average will be calculated as the basis for the renewal fee payments over the next 5 years.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02, 9-1A-04, 9-1A-07, 9-1A-08, 9-1A-11, 9-1A-13, 9-1A-19, 9-1A-23, 9-1A-24, and 9-1A-36, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective March 14, 2016 (43:5 Md. R. 388)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04F amended as an emergency provision effective August 12, 2014 (41:18 Md. R. 1008); amended permanently effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04F repealed effective March 14, 2016 (43:5 Md. R. 388)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07A amended effective October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07B amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); adopted permanently effective May 27, 2024 (51:10 Md. R 529)</annotation> </annotations> </chapter> <chapter num="04" heading="Enforcement"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter establishes a framework within which the Commission may take enforcement action against a licensee that results in a reprimand, fine, or condition placed on a licensee, or a suspension or revocation of a license.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In addition to the terms defined in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, which have the same meanings in this chapter, in this chapter the following terms have the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Penalty” means a per day fine, not exceeding $5,000 for each separate violation, that the Commission may impose on a licensee under State Government Article, §9-1A-25(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Sanction” means non-monetary enforcement action that the Commission may take against a licensee for a violation specified in State Government Article, §9-1A-25(a), Annotated Code of Maryland, and includes suspension or revocation of a license, reprimand, or imposition of a condition on a licensee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Violations."> <text>A licensee may not:</text> <paragraph num="A."> <text>Violate:</text> <paragraph num="(1)"> <text>A provision of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>A regulation adopted under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(3)"> <text>A directive of the Commission or the Director;</text> </paragraph> </paragraph> <paragraph num="B."> <text>Take, or attempt to take, any action that is intended to:</text> <paragraph num="(1)"> <text>Change or influence the outcome of a video lottery terminal or table game;</text> </paragraph> <paragraph num="(2)"> <text>Influence any person or unit of government that is involved in implementing or enforcing State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(3)"> <text>Interfere with the regular operation of:</text> <paragraph num="(a)"> <text>The central monitor and control system;</text> </paragraph> <paragraph num="(b)"> <text>A video lottery terminal;</text> </paragraph> <paragraph num="(c)"> <text>Associated equipment or software; or</text> </paragraph> <paragraph num="(d)"> <text>A table game; or</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Fail to:</text> <paragraph num="(1)"> <text>Conform to the information contained in a license application;</text> </paragraph> <paragraph num="(2)"> <text>Meet a licensing requirement;</text> </paragraph> <paragraph num="(3)"> <text>Promptly submit to the Commission a change to the information contained in a license application;</text> </paragraph> <paragraph num="(4)"> <text>Adequately remedy a deficiency of which the licensee has received notice under Regulation .04E of this chapter; or</text> </paragraph> <paragraph num="(5)"> <text>Maintain a video lottery employee license in good standing.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Notice of Violation."> <paragraph num="A."> <text>After receiving a report of a licensee’s alleged violation of Regulation .03 of this chapter, the agency shall:</text> <paragraph num="(1)"> <text>Notify the licensee of the alleged violation; and</text> </paragraph> <paragraph num="(2)"> <text>Investigate the report.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Director may designate staff to serve on a review board that:</text> <paragraph num="(1)"> <text>Reviews the investigation of an alleged violation conducted under §A of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>Makes a recommendation to the Director for addressing the alleged violation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The review board’s recommendation to the Director may include:</text> <paragraph num="(1)"> <text>Requiring the licensee to implement a corrective action plan;</text> </paragraph> <paragraph num="(2)"> <text>Issuing the licensee a warning letter;</text> </paragraph> <paragraph num="(3)"> <text>Entering into a settlement agreement with the licensee;</text> </paragraph> <paragraph num="(4)"> <text>Recommending that the Director initiate Commission proceedings to impose a penalty or sanction on the licensee; or</text> </paragraph> <paragraph num="(5)"> <text>Any other appropriate action.</text> </paragraph> </paragraph> <paragraph num="D."> <text>After reviewing the board’s recommendation, the Director may:</text> <paragraph num="(1)"> <text>Initiate Commission proceedings to impose a penalty or sanction on the licensee; or</text> </paragraph> <paragraph num="(2)"> <text>Direct staff to:</text> <paragraph num="(a)"> <text>Implement the board’s recommendation; or</text> </paragraph> <paragraph num="(b)"> <text>Take other appropriate action.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A licensee shall be provided a notice of the violation that describes the statute, regulation, or directive allegedly violated, along with the Director’s recommendation for addressing the alleged violation.</text> </paragraph> <paragraph num="F."> <text>Nothing in this chapter shall be construed to require that:</text> <paragraph num="(1)"> <text>The licensee receive an opportunity to meet with staff to discuss an informal settlement of a violation; or</text> </paragraph> <paragraph num="(2)"> <text>The agency undertake a corrective action plan or attempt to reach a settlement with the licensee before the Director initiates Commission proceedings for imposition of a penalty or sanction against a licensee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Corrective Action Plan."> <paragraph num="A."> <text>If the Director directs staff to implement a corrective action plan with a licensee, agency staff shall give written notice to a licensee that includes:</text> <paragraph num="(1)"> <text>A description of the alleged violation;</text> </paragraph> <paragraph num="(2)"> <text>A description of the possible sanctions; and</text> </paragraph> <paragraph num="(3)"> <text>The requirement for the licensee to submit a corrective action plan to the Director.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Contents of Corrective Action Plan. A corrective action plan shall include:</text> <paragraph num="(1)"> <text>Periodic monitoring or progress reports;</text> </paragraph> <paragraph num="(2)"> <text>Timelines for completing corrective action;</text> </paragraph> <paragraph num="(3)"> <text>Implementation of measures to guard against recurrence of the alleged violation; and</text> </paragraph> <paragraph num="(4)"> <text>Any other measures necessary to resolve the alleged violation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Time for Implementing a Corrective Action Plan.</text> <paragraph num="(1)"> <text>Within 10 days of receipt of a notice under §A of this regulation, the licensee shall submit a corrective action plan to the Director, or the Director’s designee.</text> </paragraph> <paragraph num="(2)"> <text>The Director, or the Director’s designee, shall review the corrective action plan and inform the licensee whether the corrective action plan is acceptable.</text> <paragraph num="(a)"> <text>If the corrective action plan is acceptable, the licensee shall execute it immediately.</text> </paragraph> <paragraph num="(b)"> <text>If the corrective action plan is not acceptable, the licensee shall submit a revised plan immediately.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the licensee fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the Director may:</text> <paragraph num="(a)"> <text>Provide the licensee with additional time within which to submit a revised corrective action plan; or</text> </paragraph> <paragraph num="(b)"> <text>Initiate proceedings before the Commission for imposition of a penalty or sanction on the licensee.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the Director, or the Director’s designee, provided a licensee with a notice under §A of this regulation and did not receive a timely written response, the Commission may adopt a recommendation by the Director for imposition of a penalty or sanction.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Corrective Action Plan Outcome.</text> <paragraph num="(1)"> <text>After a licensee has completed, to the satisfaction of the Director or the Director’s designee, a corrective action plan, the alleged violation is resolved, except that the alleged violation may be:</text> <paragraph num="(a)"> <text>The basis of a subsequent corrective action plan, settlement, penalty, or sanction if a similar violation occurs; or</text> </paragraph> <paragraph num="(b)"> <text>Raised during a Commission hearing as part of the agency’s enforcement record for the licensee.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If at any time during the corrective action period the Director, or the Director’s designee, determines that the licensee has made insufficient progress toward fulfilling a requirement of the corrective action plan, the Director may:</text> <paragraph num="(a)"> <text>For good cause, extend the time for completion of a corrective action plan; or</text> </paragraph> <paragraph num="(b)"> <text>Initiate proceedings before the Commission for imposition of a penalty or sanction on the licensee.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If at the end of the corrective action period the licensee has failed to satisfactorily complete the corrective action plan, the Director may initiate proceedings before the Commission for imposition of a penalty or sanction on the licensee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Settlement."> <paragraph num="A."> <text>The Commission may provide a licensee with the opportunity to discuss with staff a means of entering into a settlement agreement between the licensee and the Commission by which the violation is settled without a penalty or sanction.</text> </paragraph> <paragraph num="B."> <text>A settlement agreement:</text> <paragraph num="(1)"> <text>Shall be signed by an authorized representative of the licensee and the Director or the Director’s designee; and</text> </paragraph> <paragraph num="(2)"> <text>May not be considered final and binding until approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a licensee violates a term of a settlement agreement, nothing in this regulation shall be construed to prevent the Commission from imposing a penalty or sanction against the licensee for that, or the underlying, violation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Commission Action."> <paragraph num="A."> <text>General. The Director may initiate Commission proceedings for imposition of a penalty or sanction against a licensee if a licensee:</text> <paragraph num="(1)"> <text>Violates a provision of Regulation .03 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Fails to timely or satisfactorily complete a corrective action plan required by the Commission;</text> </paragraph> <paragraph num="(3)"> <text>Violates a term of a settlement agreement; or</text> </paragraph> <paragraph num="(4)"> <text>Engages in any conduct that exposes the State’s gaming program to a serious and imminent risk of harm to its integrity, security, or profitability.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Initiation of Commission Proceedings. The Director shall initiate Commission proceedings for the imposition of a penalty or sanction on a licensee by scheduling a Commission hearing in accordance with COMAR 36.01.02.06 on the alleged violation and providing the licensee with written notice of the:</text> <paragraph num="(1)"> <text>Recommendation for imposition of the penalty or sanction;</text> </paragraph> <paragraph num="(2)"> <text>Basis for the recommendation for imposition of the penalty or sanction;</text> </paragraph> <paragraph num="(3)"> <text>Consequences of a decision by the Commission to impose a penalty or sanction;</text> </paragraph> <paragraph num="(4)"> <text>Date, time and location of the hearing; and</text> </paragraph> <paragraph num="(5)"> <text>Applicable hearing rights.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Emergency Suspension."> <paragraph num="A."> <text>The Director may emergently suspend a license if the Director determines that suspension is necessary in order to protect the State’s gaming program against a serious and imminent risk of harm to its integrity, security, or profitability.</text> </paragraph> <paragraph num="B."> <text>Emergency Suspension—Process. If the Director emergently suspends a license, the Director shall promptly schedule a Commission hearing on the emergency suspension and provide the licensee with the written notice required under Regulation .07B of this chapter, along with notice directing the licensee that:</text> <paragraph num="(1)"> <text>The licensee shall immediately cease performing under the license; and</text> </paragraph> <paragraph num="(2)"> <text>Failure to comply with the Director’s directive to cease performing under the license constitutes a separate violation of Regulation .03 of this chapter for which an additional penalty or sanction may be imposed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Imposition of Penalties and Sanctions."> <paragraph num="A."> <text>Consequences. For a violation of Regulation .03 of this chapter, the Commission may impose a:</text> <paragraph num="(1)"> <text>Penalty not exceeding $5,000 for each day and each violation;</text> </paragraph> <paragraph num="(2)"> <text>Sanction, including:</text> <paragraph num="(a)"> <text>Revocation of a license;</text> </paragraph> <paragraph num="(b)"> <text>Suspension of a license for a period of time;</text> </paragraph> <paragraph num="(c)"> <text>Reprimand; or</text> </paragraph> <paragraph num="(d)"> <text>Condition that must be met within a specified time as to:</text> <paragraph num="(i)"> <text>Training;</text> </paragraph> <paragraph num="(ii)"> <text>Staffing;</text> </paragraph> <paragraph num="(iii)"> <text>Supervision;</text> </paragraph> <paragraph num="(iv)"> <text>Compliance with internal controls;</text> </paragraph> <paragraph num="(v)"> <text>Probationary periods; or</text> </paragraph> <paragraph num="(vi)"> <text>Any other directive to address the violation.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Penalty—Required Considerations. To determine the amount of a penalty to impose on a licensee, the Commission shall consider:</text> <paragraph num="(1)"> <text>The seriousness of the violation;</text> </paragraph> <paragraph num="(2)"> <text>The harm caused by the violation; and</text> </paragraph> <paragraph num="(3)"> <text>Whether the person who committed the violation acted in good faith.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Sanction—Considerations. To determine the appropriate sanction to impose on a licensee, the Commission may consider the factors in §B of this regulation, and:</text> <paragraph num="(1)"> <text>Whether a violation was willful;</text> </paragraph> <paragraph num="(2)"> <text>Whether the licensee had, or should have had, control of the situation;</text> </paragraph> <paragraph num="(3)"> <text>Whether the violation may have occurred in connection with unclear or insufficient:</text> <paragraph num="(a)"> <text>Information;</text> </paragraph> <paragraph num="(b)"> <text>Training;</text> </paragraph> <paragraph num="(c)"> <text>Communication; or</text> </paragraph> <paragraph num="(d)"> <text>Requirements;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Any extraordinary circumstances;</text> </paragraph> <paragraph num="(5)"> <text>Prior disciplinary history with the Commission;</text> </paragraph> <paragraph num="(6)"> <text>Profit that resulted, or may have resulted, from the violation;</text> </paragraph> <paragraph num="(7)"> <text>Harm that resulted, or may have resulted, from the violation;</text> </paragraph> <paragraph num="(8)"> <text>How the violation was detected;</text> </paragraph> <paragraph num="(9)"> <text>Tailoring the discipline to address the violation;</text> </paragraph> <paragraph num="(10)"> <text>Action taken by the licensee to prevent recurrence of the violation;</text> </paragraph> <paragraph num="(11)"> <text>Action taken by the Commission to address similar violations; and</text> </paragraph> <paragraph num="(12)"> <text>Any other information that the Commission finds relevant.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Ignorance No Defense. Because a licensee is presumed to be familiar with applicable statutes and regulations governing the State’s video lottery terminal program, a claim of ignorance of the law may not be used as a defense to a finding of a violation or to the imposition of a penalty or sanction.</text> </paragraph> <paragraph num="E."> <text>Imposition of penalty and sanction. A penalty and a sanction may be imposed for each violation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Commission Action."> <paragraph num="A."> <text>Commission action against a licensee for a violation of Regulation .03 of this chapter shall be conducted as specified in COMAR 36.01.02.06, and the Commission shall:</text> <paragraph num="(1)"> <text>Make a finding whether the licensee violated a provision of Regulation .03 of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>If the licensee violated a provision of Regulation .03 of this chapter, decide whether, and to what extent, to impose a penalty or sanction.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A licensee may seek judicial review of the Commission’s decision.</text> </paragraph> <paragraph num="C."> <text>A licensee against whom the Commission ordered the imposition of suspension or revocation of a license shall immediately comply with the Commission’s order.</text> </paragraph> <paragraph num="D."> <text>A licensee against whom the Commission imposed a penalty shall remit to the Commission payment in full of the penalty within 30 calendar days.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-04, 9-1A-24, and 9-1A-25, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.10 adopted effective August 5, 2013 (40:15 Md. R. 1233)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> </annotations> </chapter> <chapter num="05" heading="Unannounced Inspections"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter establishes the manner and method by which the Commission may conduct an unannounced inspection of the premises, records, and equipment of a licensee and related entities in order to evaluate and verify a licensee’s compliance with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and the regulations promulgated by the Commission for the Video Lottery Terminal Program.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Inspections."> <paragraph num="A."> <text>A licensee is subject to unannounced inspections conducted by the Commission in order to evaluate and verify the licensee’s compliance with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland and the regulations promulgated by the Commission for the Video Lottery Terminal Program.</text> </paragraph> <paragraph num="B."> <text>The Commission or a designee may conduct an unannounced inspection without a warrant and take any of the following actions:</text> <paragraph num="(1)"> <text>Conduct an inspection of premises in which:</text> <paragraph num="(a)"> <text>Video lottery or table game operations are conducted;</text> </paragraph> <paragraph num="(b)"> <text>Authorized video lottery terminals, table game equipment, a central monitor and control system, or associated equipment and software are:</text> <paragraph num="(i)"> <text>Designed;</text> </paragraph> <paragraph num="(ii)"> <text>Built;</text> </paragraph> <paragraph num="(iii)"> <text>Constructed;</text> </paragraph> <paragraph num="(iv)"> <text>Assembled;</text> </paragraph> <paragraph num="(v)"> <text>Manufactured;</text> </paragraph> <paragraph num="(vi)"> <text>Sold;</text> </paragraph> <paragraph num="(vii)"> <text>Distributed; or</text> </paragraph> <paragraph num="(viii)"> <text>Serviced; or</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Records are prepared or maintained for activities referenced in §B(1)(a) or (b) of this regulation;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Conduct an inspection of a video lottery terminal, table game equipment, a central monitor control system, or associated equipment and software in, about, on, or around the premises specified in §B(1) of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>From the premises specified in §B(1) of this regulation, summarily seize, remove, impound, or assume physical control of, for the purposes of examination and inspection:</text> <paragraph num="(a)"> <text>A video lottery terminal;</text> </paragraph> <paragraph num="(b)"> <text>Table game equipment;</text> </paragraph> <paragraph num="(c)"> <text>A central monitor and control system; or</text> </paragraph> <paragraph num="(d)"> <text>Associated equipment and software;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Inspect, examine, and audit books, records, and documents concerning a licensee’s video lottery or table game operations, including the financial records of a:</text> <paragraph num="(a)"> <text>Parent corporation;</text> </paragraph> <paragraph num="(b)"> <text>Subsidiary corporation; or</text> </paragraph> <paragraph num="(c)"> <text>Similar business entity; or</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Seize, impound, or assume physical control of:</text> <paragraph num="(a)"> <text>Books;</text> </paragraph> <paragraph num="(b)"> <text>Records;</text> </paragraph> <paragraph num="(c)"> <text>Ledgers;</text> </paragraph> <paragraph num="(d)"> <text>Cash boxes and their contents;</text> </paragraph> <paragraph num="(e)"> <text>A counting room or its equipment;</text> </paragraph> <paragraph num="(f)"> <text>Other physical objects relating to video lottery operations; or</text> </paragraph> <paragraph num="(g)"> <text>Any record or object that a licensee is required by law or license terms to maintain.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>During an inspection, a licensee and its employees, agents, and representatives:</text> <paragraph num="(1)"> <text>Shall:</text> <paragraph num="(a)"> <text>Make available for inspection, copying, or physical control a record that a licensee is required to maintain;</text> </paragraph> <paragraph num="(b)"> <text>Authorize any person having financial records relating to the licensee to provide those records to the Commission; and</text> </paragraph> <paragraph num="(c)"> <text>Otherwise cooperate with the activities of the Commission described in this chapter; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>May not knowingly interfere with the authorized activity of the Commission during an unannounced inspection.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An unannounced inspection may be conducted:</text> <paragraph num="(1)"> <text>Any time during reasonable business hours; and</text> </paragraph> <paragraph num="(2)"> <text>Periodically, as determined by the Commission.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The refusal of a licensee or a licensee’s employees or agents to provide the Commission with the access necessary to perform an unannounced inspection may be the basis for enforcement action under COMAR 36.03.04.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Records and Reports."> <paragraph num="A."> <text>Within a reasonable time after the conclusion of the unannounced inspection, the Commission’s inspectors shall submit a written report of the inspection to:</text> <paragraph num="(1)"> <text>The Commission;</text> </paragraph> <paragraph num="(2)"> <text>The Director; and</text> </paragraph> <paragraph num="(3)"> <text>The licensee who was the subject of the Commission’s unannounced inspection.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A written report of an unannounced inspection shall be considered a public record to the extent allowable under State Government Article, Title 10, Subtitle 6, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-1A-04, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation> </annotations> </chapter> <chapter num="06" heading="Enforcement of Voluntary Exclusion Program"> <regulation prefix="Regulation" num=".01" heading="Enforcement."> <paragraph num="A."> <text>The Commission shall notify each State facility operator of the placement of an individual on the voluntary exclusion list established in COMAR 36.01.03.</text> </paragraph> <paragraph num="B."> <text>A facility operator may disclose information about an individual on the voluntary exclusion list to:</text> <paragraph num="(1)"> <text>The Commission;</text> </paragraph> <paragraph num="(2)"> <text>The facility’s:</text> <paragraph num="(a)"> <text>Manager;</text> </paragraph> <paragraph num="(b)"> <text>Security department;</text> </paragraph> <paragraph num="(c)"> <text>Surveillance department; or</text> </paragraph> <paragraph num="(d)"> <text>Employees who are directly responsible for excluding unauthorized individuals from the facility; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the facility operator pursues criminal charges against an individual on the voluntary exclusion list who is suspected of trespassing at a video lottery facility, to:</text> <paragraph num="(a)"> <text>A law enforcement officer; or</text> </paragraph> <paragraph num="(b)"> <text>A person who is legally authorized to be involved in the criminal prosecution of an individual on the voluntary exclusion list who is suspected of trespassing at a video lottery facility.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>If a facility operator uses technology for the purpose of complying with §E of this regulation, the facility operator shall ensure that the technology:</text> <paragraph num="(1)"> <text>Complies with all applicable State requirements; and</text> </paragraph> <paragraph num="(2)"> <text>Is designed to prevent unauthorized access to confidential records.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If an individual on the voluntary exclusion list is found on the premises of a video lottery facility, the operator:</text> <paragraph num="(1)"> <text>Shall immediately notify the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>May pursue criminal charges against the individual for trespassing or any other appropriate criminal charge.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator may not:</text> <paragraph num="(1)"> <text>Permit an individual on the voluntary exclusion list to:</text> <paragraph num="(a)"> <text>Enter into the video lottery facility; or</text> </paragraph> <paragraph num="(b)"> <text>Play a video lottery terminal or table game;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Knowingly fail to exclude from the premises an individual on the voluntary list; or</text> </paragraph> <paragraph num="(3)"> <text>Disclose information about individuals on the voluntary exclusion list beyond the disclosures that are authorized under §B of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Responsible Gaming Plan."> <paragraph num="A."> <text>A facility shall establish a responsible gaming plan that sets forth the facility’s plan for addressing problem gambling at the facility that shall include at least the following elements of the plan:</text> <paragraph num="(1)"> <text>Goals;</text> </paragraph> <paragraph num="(2)"> <text>Procedures and deadlines for implementation;</text> </paragraph> <paragraph num="(3)"> <text>Identification of facility personnel responsible for implementation;</text> </paragraph> <paragraph num="(4)"> <text>Responsibilities of facility personnel identified as responsible for implementation;</text> </paragraph> <paragraph num="(5)"> <text>Training for facility personnel on problem gambling and voluntary exclusion;</text> </paragraph> <paragraph num="(6)"> <text>Means of controlling access to records pertaining to voluntary exclusion;</text> </paragraph> <paragraph num="(7)"> <text>Means of educating players about:</text> <paragraph num="(a)"> <text>Problem gambling;</text> </paragraph> <paragraph num="(b)"> <text>Problem gambling treatment resources, including treatment and prevention programs established under State Government Article, §9-1A-33, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(c)"> <text>Voluntary exclusion;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Placement of responsible gambling awareness materials in the facility as required under Regulation .03 of this chapter;</text> </paragraph> <paragraph num="(9)"> <text>Ensuring that an individual in the Voluntary Exclusion Program is not permitted to:</text> <paragraph num="(a)"> <text>Enter the video lottery facility;</text> </paragraph> <paragraph num="(b)"> <text>Play a video lottery terminal or table game; or</text> </paragraph> <paragraph num="(c)"> <text>Claim a jackpot;</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>The facility’s response to the discovery of an individual who is enrolled in the voluntary exclusion program on facility property, which may include pursuing criminal charges against the individual; and</text> </paragraph> <paragraph num="(11)"> <text>Any other element required by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall submit to the Commission the responsible gaming plan required under §A of this regulation at least 60 days before video lottery terminal operations are to commence.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall submit any amendments to a facility’s responsible gaming plan to the Commission prior to implementation.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall submit to the Commission an annual report describing the facility’s responsible gaming plan, which shall include a statement regarding compliance with Regulation .01C of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Requirements."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation the following terms have the meaning indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Advertisement” means any material that is:</text> <paragraph num="(i)"> <text>Disseminated to the public through broadcasting, publication, mail, or any other means; and</text> </paragraph> <paragraph num="(ii)"> <text>Intended to encourage video lottery terminal or table game play.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Billboard advertisement” means a roadside sign, aviation banner, or event banner that is intended to encourage video lottery terminal or table game play.</text> </paragraph> <paragraph num="(c)"> <text>“Gambling assistance message” means a phrase approved by the Commission to encourage responsible play;</text> </paragraph> <paragraph num="(d)"> <text>“Online advertisement” means an advertisement on a website, an application, in social media, or otherwise on the internet, that is intended to encourage video lottery terminal or table game play.</text> </paragraph> <paragraph num="(e)"> <text>“Printed advertisement” means an advertisement that appears in or on a sign, direct mailing, poster, brochure or other written material and is intended to encourage video lottery terminal or table game play.</text> </paragraph> <paragraph num="(f)"> <text>“Responsible gambling awareness materials” means a sticker, a brochure, a wallet card, or other material that conveys only problem gambling resource information.</text> </paragraph> <paragraph num="(g)"> <text>“Underage warning message” means the language that prohibits individuals under the age of 21 on the gaming floor”.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall:</text> <paragraph num="(1)"> <text>Post signage approved by the Commission that prominently bears the gambling assistance message and the underage warning message at each customer entrance to the gaming floor;</text> </paragraph> <paragraph num="(2)"> <text>Include the gambling assistance message on an advertisement that is intended to encourage video lottery terminal or table game play at its facility;</text> </paragraph> <paragraph num="(3)"> <text>Ensure that a printed advertisement bears the gambling assistance message and meets requirements of COMAR 36.03.03.08;</text> </paragraph> <paragraph num="(4)"> <text>Ensure that a billboard bearing a printed advertisement bears the gambling assistance message and meets requirements of COMAR 36.03.03.08;</text> </paragraph> <paragraph num="(5)"> <text>Ensure that a radio, television, or video advertisement bears the gambling assistance message and meets requirements of COMAR 36.03.03.08;</text> </paragraph> <paragraph num="(6)"> <text>Ensure that the gambling assistance message is printed on a paper product that is associated with player consumption of food or beverage if the paper product is:</text> <paragraph num="(a)"> <text>Special ordered; and</text> </paragraph> <paragraph num="(b)"> <text>Branded with the facility's logo;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Ensure that the gambling assistance message is printed on ticket stock;</text> </paragraph> <paragraph num="(8)"> <text>Place in the facility responsible gambling awareness materials according to its responsible gaming plan required under Regulation .02 of this chapter; and</text> </paragraph> <paragraph num="(9)"> <text>Ensure that an advertisement does not include language that suggests an outcome is guaranteed or without risk; and</text> </paragraph> <paragraph num="(10)"> <text>Ensure that an advertisement includes a gambling assistance message that:</text> <paragraph num="(a)"> <text>For a printed advertisement, the font height is the greater of:</text> <paragraph num="(i)"> <text>The majority of the text in the advertisement; or</text> </paragraph> <paragraph num="(ii)"> <text>Three percent of the height or width of the advertisement.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>For a billboard advertisement, the font height of the gambling assistance message shall be at least 5 percent of the height or width, whichever is greater, of the face of the billboard;</text> </paragraph> <paragraph num="(c)"> <text>For a video and television advertisement, the gambling assistance message shall:</text> <paragraph num="(i)"> <text>Be visible for the entire duration of the advertisement, with a font size that is at least 3 percent of the image height or width, whichever is greater; or</text> </paragraph> <paragraph num="(ii)"> <text>From the first instance video lottery terminal, table game play or a facility operator is displayed, appear on the final screen for at least the final three seconds of the advertisement with a font height that is at least 8 percent of the image height or width, whichever is greater;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>For websites and social media, the gambling assistance message shall:</text> <paragraph num="(i)"> <text>Be posted on each webpage or profile page, and on any gaming-related advertisement posted on the webpage or profile page, with a font height that is at least the same size as the majority of the text used on the webpage or profile page; or</text> </paragraph> <paragraph num="(ii)"> <text>Meet the font height and shall comply with the requirements in §B(10)(a) of this regulation..</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-1A-24, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01— .03 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01— .03 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B, C amended effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A, D amended effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective May 25, 2026 (53:10 Md. R. 459)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="07" heading="Mandatory Exclusion"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter establishes a mechanism by which the Commission:</text> <paragraph num="A."> <text>Maintains a list of individuals who are to be mandatorily excluded or ejected from a video lottery facility; and</text> </paragraph> <paragraph num="B."> <text>Establishes standards that require a video lottery operation licensee to:</text> <paragraph num="(1)"> <text>Exclude or eject an individual from the premises of a video lottery facility; and</text> </paragraph> <paragraph num="(2)"> <text>Ensure that intoxicated individuals and individuals under the age of 21 are not allowed:</text> <paragraph num="(a)"> <text>To play video lottery terminals or table games; and</text> </paragraph> <paragraph num="(b)"> <text>In areas of the video lottery facility where video lottery terminals or table games are located.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Excluded individual” means an individual whose name and identifying information have been placed on the mandatory exclusion list.</text> </paragraph> <paragraph num="(2)"> <text>“Mandatory exclusion list” means a list that is maintained by the Commission and identifies those individuals whom the Commission has directed be mandatorily excluded or ejected by a video lottery operation licensee from any video lottery operation licensed in the State.</text> </paragraph> <paragraph num="(3)"> <text>Unredeemed Item.</text> <paragraph num="(a)"> <text>“Unredeemed item” means a token, voucher, check, ticket, chip, coupon, or similar item that has monetary value, and that a player has:</text> <paragraph num="(i)"> <text>Won by playing a video lottery terminal or table game;</text> </paragraph> <paragraph num="(ii)"> <text>Inserted into a video lottery terminal;</text> </paragraph> <paragraph num="(iii)"> <text>Played at a table game; or</text> </paragraph> <paragraph num="(iv)"> <text>Received by converting cash, check, or wire transfer at a video lottery facility.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Unredeemed item” does not include cash.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Mandatory Exclusion List."> <paragraph num="A."> <text>The Commission shall establish a mandatory exclusion list.</text> </paragraph> <paragraph num="B."> <text>The Director may place on the mandatory exclusion list an individual who:</text> <paragraph num="(1)"> <text>Is a career offender;</text> </paragraph> <paragraph num="(2)"> <text>Has been convicted of a criminal offense under the laws of the United States or any jurisdiction within the United States that is a criminal offense involving moral turpitude or a gambling offense;</text> </paragraph> <paragraph num="(3)"> <text>Would adversely affect the interests of the State, the licensee, or the individual if the individual were to be present at a video lottery facility;</text> </paragraph> <paragraph num="(4)"> <text>Is the subject of any administrative or judicial order directing the individual to stay away from a video lottery or other gaming facility;</text> </paragraph> <paragraph num="(5)"> <text>Presents a threat to the safety of any individual on the premises of a video lottery facility;</text> </paragraph> <paragraph num="(6)"> <text>Engages in, or has a documented history of engaging in, disruption of video lottery or table game play;</text> </paragraph> <paragraph num="(7)"> <text>The Director or a facility operator has a reasonable belief has cheated, or attempted to cheat, at a facility by engaging in conduct including:</text> <paragraph num="(a)"> <text>Altering or misrepresenting the outcome of a game or event on which bets have been placed;</text> </paragraph> <paragraph num="(b)"> <text>Placing, cancelling, increasing, or decreasing a bet based on knowledge that is not available to other players;</text> </paragraph> <paragraph num="(c)"> <text>Claiming or collecting a prize from a video lottery facility that the individual did not win or earn or that the individual was not otherwise authorized to claim or collect;</text> </paragraph> <paragraph num="(d)"> <text>Manipulating a video lottery terminal, a table game, a central monitor and control system, or associated equipment or software to affect the outcome of a game or bet; or</text> </paragraph> <paragraph num="(e)"> <text>Altering the elements of chance or methods of selection or criteria that determine the outcome of a game or bet; or</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Engages in any conduct that may adversely affect public confidence in, or perception of, video lottery or table game operations in the State.</text> </paragraph> </paragraph> <paragraph num="C."> <text>In evaluating whether to place an individual on the mandatory exclusion list, the Director may specify monetary amounts and circumstances, including:</text> <paragraph num="(1)"> <text>The nature of the incident;</text> </paragraph> <paragraph num="(2)"> <text>Whether the individual was a video lottery employee licensee at the time of the incident;</text> </paragraph> <paragraph num="(3)"> <text>If the individual was a licensee, whether the individual was working at a video lottery facility while the individual engaged in conduct described in §B of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>Whether the incident directly impacts:</text> <paragraph num="(a)"> <text>A video lottery facility;</text> </paragraph> <paragraph num="(b)"> <text>A player; or</text> </paragraph> <paragraph num="(c)"> <text>A licensee;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The amount or type of loss to:</text> <paragraph num="(a)"> <text>A video lottery facility;</text> </paragraph> <paragraph num="(b)"> <text>A player; or</text> </paragraph> <paragraph num="(c)"> <text>A licensee;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Whether the individual made restitution;</text> </paragraph> <paragraph num="(7)"> <text>Whether the individual was involved in a prior incident that meets the criteria of §B of this regulation;</text> </paragraph> <paragraph num="(8)"> <text>Whether a video lottery facility has other information the Director finds relevant; and</text> </paragraph> <paragraph num="(9)"> <text>Any other information the Director finds relevant.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The entry of an individual on the mandatory exclusion list shall include sufficient information to identify the excluded individual.</text> </paragraph> <paragraph num="E."> <text>The information used to identify an excluded individual may include:</text> <paragraph num="(1)"> <text>The individual’s:</text> <paragraph num="(a)"> <text>Name and any nickname or alias;</text> </paragraph> <paragraph num="(b)"> <text>Residential address;</text> </paragraph> <paragraph num="(c)"> <text>Telephone numbers;</text> </paragraph> <paragraph num="(d)"> <text>Gender;</text> </paragraph> <paragraph num="(e)"> <text>Physical description, including any birthmarks, scars, or tattoos;</text> </paragraph> <paragraph num="(f)"> <text>Race or ethnic origin;</text> </paragraph> <paragraph num="(g)"> <text>For non-United States citizens, country of origin; and</text> </paragraph> <paragraph num="(h)"> <text>Photograph;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Date of placement on the mandatory exclusion list;</text> </paragraph> <paragraph num="(3)"> <text>Brief statement of the basis for placing the individual on the mandatory exclusion list; and</text> </paragraph> <paragraph num="(4)"> <text>Any other information the Commission requires.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The mandatory exclusion list and related records are public records under General Provisions Article, §4-101, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Inclusion on Mandatory Exclusion List."> <paragraph num="A."> <text>Upon receipt of information that reasonably indicates an individual meets any criteria under Regulation .03B of this chapter, and after making any considerations described in Regulation .03 of this chapter, the Director shall:</text> <paragraph num="(1)"> <text>Evaluate the information;</text> </paragraph> <paragraph num="(2)"> <text>Ensure that the information required under Regulation .03E of this chapter sufficiently identifies the individual; and</text> </paragraph> <paragraph num="(3)"> <text>Decide whether to place the individual on the mandatory exclusion list.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Prior to placing an individual on the mandatory exclusion list, the Director or the Director’s designee may provide a video lottery facility with:</text> <paragraph num="(1)"> <text>Information used to identify an individual who may be excluded;</text> </paragraph> <paragraph num="(2)"> <text>The factual basis for placing an individual on the mandatory exclusion list; and</text> </paragraph> <paragraph num="(3)"> <text>An opportunity to provide the Director with information identified in Regulation .03 of this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the Director decides to place an individual on the mandatory exclusion list, staff shall deliver to the individual by U.S. mail a written notice explaining:</text> <paragraph num="(1)"> <text>The factual basis for placing the individual on the mandatory exclusion list;</text> </paragraph> <paragraph num="(2)"> <text>The availability of a reconsideration meeting with the Director or the Director’s designee;</text> </paragraph> <paragraph num="(3)"> <text>The requirements for submitting a request for a reconsideration meeting;</text> </paragraph> <paragraph num="(4)"> <text>If a timely request for a reconsideration meeting is not submitted, the individual’s name shall be placed on a mandatory exclusion list and the name will be distributed to all facility operators in the State and be publicly available; and</text> </paragraph> <paragraph num="(5)"> <text>That the excluded individual shall be:</text> <paragraph num="(a)"> <text>Prohibited from entering any video lottery facility, and from playing any video lottery terminal or table game, in the State;</text> </paragraph> <paragraph num="(b)"> <text>Subject to criminal charges for trespassing or any other appropriate criminal charge; and</text> </paragraph> <paragraph num="(c)"> <text>Required to:</text> <paragraph num="(i)"> <text>Redeem or liquidate an unredeemed item with monetary value that the individual has received since being placed on the mandatory exclusion list; and</text> </paragraph> <paragraph num="(ii)"> <text>Surrender to the Problem Gambling Fund established under State Government Article, §9-1A-33, Annotated Code of Maryland, any unredeemed items and prizes in the possession of the individual or received by the individual at a video lottery facility after placement on the mandatory exclusion list.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Reconsideration Meeting.</text> <paragraph num="(1)"> <text>An individual may submit to the Director a written request for a reconsideration meeting within 15 days of the date of the individual’s receipt of the notice described in §C of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>If an individual fails to timely submit a request under §D(1) of this regulation, the individual shall be placed on the mandatory exclusion list.</text> </paragraph> <paragraph num="(3)"> <text>A reconsideration meeting may be held by the Director or the Director’s designee;</text> </paragraph> <paragraph num="(4)"> <text>During a reconsideration meeting, an individual may:</text> <paragraph num="(a)"> <text>Be represented by counsel; and</text> </paragraph> <paragraph num="(b)"> <text>Present evidence as to why the individual does not meet the criteria under Regulation .03B of this chapter.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The Director or the Director’s designee shall deliver to the individual by U.S. mail a written notice of the decision following the reconsideration meeting.</text> </paragraph> <paragraph num="(6)"> <text>An individual dissatisfied with the result of a reconsideration meeting may submit a written request to the Commission for an appeal hearing.</text> </paragraph> <paragraph num="(7)"> <text>The request for an appeal hearing shall:</text> <paragraph num="(a)"> <text>Be submitted within 15 days of the date of the individual’s receipt of the written notice of the decision following the reconsideration meeting; and</text> </paragraph> <paragraph num="(b)"> <text>Describe the individual’s legal and factual bases for disagreeing with placement on the mandatory exclusion list.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>If an individual fails to timely submit a written request for an appeal hearing under §D(7) of this regulation, the individual shall be placed on the mandatory exclusion list.</text> </paragraph> <paragraph num="(9)"> <text>Upon receipt of a timely written request for an appeal hearing, the Director or the Director’s designee shall provide the individual with a notice for the appeal hearing.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Appeal Hearing.</text> <paragraph num="(1)"> <text>If after an appeal hearing the Commission decides that the excluded individual does not meet any criteria under Regulation .03B of this chapter, the individual’s name may not be placed on the mandatory exclusion list.</text> </paragraph> <paragraph num="(2)"> <text>If after an appeal hearing the Commission decides that the excluded individual meets any criteria under Regulation .03B of this chapter:</text> <paragraph num="(a)"> <text>The individual’s name shall remain on the mandatory exclusion list;</text> </paragraph> <paragraph num="(b)"> <text>The Commission shall notify all facility operators in the State of the individual’s addition to the mandatory exclusion list;</text> </paragraph> <paragraph num="(c)"> <text>The individual may seek judicial review of the Commission’s decision; and</text> </paragraph> <paragraph num="(d)"> <text>The individual may request to be removed from the mandatory exclusion list only as provided in Regulation .05 of this chapter.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Removal from Mandatory Exclusion List."> <paragraph num="A."> <text>After an excluded individual has been on the mandatory exclusion list for at least 5 years, the individual may request removal from the mandatory exclusion list.</text> </paragraph> <paragraph num="B."> <text>An excluded individual’s request under §A of this regulation shall be submitted to the Director in writing and shall include a detailed statement about why there is:</text> <paragraph num="(1)"> <text>Good cause for removal of the individual from the list; and</text> </paragraph> <paragraph num="(2)"> <text>A material change in the individual’s circumstances since the individual’s name was placed on the list.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Director or the Director’s designee shall investigate the request and make a recommendation to the Commission whether to grant or deny the request.</text> </paragraph> <paragraph num="D."> <text>If the Director or the Director’s designee recommends removing the individual from the list, the Commission may approve the recommendation without a hearing, and Agency staff shall:</text> <paragraph num="(1)"> <text>Remove the individual from the mandatory exclusion list;</text> </paragraph> <paragraph num="(2)"> <text>Deliver to the individual by U.S. mail a notice of removal from the mandatory exclusion list; and</text> </paragraph> <paragraph num="(3)"> <text>Notify the State’s facility operators of the individual’s removal from the mandatory exclusion list.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If the Director or the Director’s designee recommends continued inclusion on the mandatory exclusion list, the excluded individual may submit a written request for an appeal hearing to the Commission.</text> </paragraph> <paragraph num="F."> <text>Appeal Hearing.</text> <paragraph num="(1)"> <text>The request for an appeal hearing shall:</text> <paragraph num="(a)"> <text>Be submitted within 15 days of the date of the individual’s receipt of the written notice of the recommendation of the Director or the Director’s designee; and</text> </paragraph> <paragraph num="(b)"> <text>Describe the individual’s legal and factual bases for disagreeing with the recommendation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If an individual fails to timely submit a written request for an appeal hearing under §F(1)(a) of this regulation, the individual shall remain on the mandatory exclusion list.</text> </paragraph> <paragraph num="(3)"> <text>Upon receipt of a timely written request for an appeal hearing, the Director shall provide the individual with a hearing notice for a hearing.</text> </paragraph> </paragraph> <paragraph num="G."> <text>If after a hearing the Commission denies the individual’s request for removal, it shall deliver to the individual by U.S. mail a notice that the:</text> <paragraph num="(1)"> <text>Request was denied; and</text> </paragraph> <paragraph num="(2)"> <text>Individual shall remain on the mandatory exclusion list.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Separate from the individual’s ability to request removal under §A of this regulation, the Director shall periodically review the mandatory exclusion list and may consider the following in order to determine if an individual should be removed:</text> <paragraph num="(1)"> <text>Whether the individual is living;</text> </paragraph> <paragraph num="(2)"> <text>Whether there are changed circumstances; or</text> </paragraph> <paragraph num="(3)"> <text>Any other relevant information.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Judicial Review."> <text>The Commission’s decision under Regulations .04E(2) and .05G of this chapter may be subject to judicial review.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Enforcement."> <text>A facility operator may not:</text> <paragraph num="A."> <text>Knowingly fail to exclude or eject from the facility premises an excluded individual;</text> </paragraph> <paragraph num="B."> <text>Fail to notify the Commission if an excluded individual is excluded or ejected from the facility;</text> </paragraph> <paragraph num="C."> <text>Permit an intoxicated individual or individual under the age of 21 to:</text> <paragraph num="(1)"> <text>Play a video lottery terminal or table game; or</text> </paragraph> <paragraph num="(2)"> <text>Be in areas of the video lottery facility where video lottery terminals or table games are located;</text> </paragraph> </paragraph> <paragraph num="D."> <text>Knowingly allow the following individuals to collect a jackpot:</text> <paragraph num="(1)"> <text>An excluded individual; or</text> </paragraph> <paragraph num="(2)"> <text>An individual under the age of 21; or</text> </paragraph> </paragraph> <paragraph num="E."> <text>Fail to obtain any unredeemed items and prizes in the possession of an excluded individual and transfer them to the Problem Gambling Fund established under State Government Article, §9-1A-33, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Facility Exclusion Plan."> <paragraph num="A."> <text>A facility operator shall establish a plan for identifying and:</text> <paragraph num="(1)"> <text>Excluding or ejecting from a facility:</text> <paragraph num="(a)"> <text>Excluded individuals; and</text> </paragraph> <paragraph num="(b)"> <text>Individuals who may be eligible for placement on the mandatory exclusion list; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Ensuring that intoxicated individuals and individuals under the age of 21 are not allowed:</text> <paragraph num="(a)"> <text>To play video lottery terminals; and</text> </paragraph> <paragraph num="(b)"> <text>In areas of the video lottery facility where video lottery terminals or table games are located.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The plan required under §A of this regulation shall include at least the following elements:</text> <paragraph num="(1)"> <text>Goals;</text> </paragraph> <paragraph num="(2)"> <text>Procedures and deadlines for implementation;</text> </paragraph> <paragraph num="(3)"> <text>Identification of facility personnel responsible for implementation;</text> </paragraph> <paragraph num="(4)"> <text>Responsibilities of facility personnel identified as responsible for implementation;</text> </paragraph> <paragraph num="(5)"> <text>Training for facility personnel on the requirements of this chapter;</text> </paragraph> <paragraph num="(6)"> <text>Regular monitoring of the mandatory exclusion list;</text> </paragraph> <paragraph num="(7)"> <text>Prompt reports to the Commission about the presence on facility premises of an individual who:</text> <paragraph num="(a)"> <text>Is included on the mandatory exclusion list; and</text> </paragraph> <paragraph num="(b)"> <text>Is required to be prevented from playing video lottery terminals or table games;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Prompt reports to the Commission about an individual who is permanently excluded from the facility;</text> </paragraph> <paragraph num="(9)"> <text>The facility’s response to the discovery of an individual who is on the mandatory exclusion list on facility property, which may include pursuing criminal charges against the individual; and</text> </paragraph> <paragraph num="(10)"> <text>Any other element required by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall submit to the Commission for its approval:</text> <paragraph num="(1)"> <text>The exclusion plan required under §A of this regulation at least 60 days before video lottery terminal operations are to commence;</text> </paragraph> <paragraph num="(2)"> <text>Any amendments to a facility’s exclusion plan prior to implementation; and</text> </paragraph> <paragraph num="(3)"> <text>An annual report describing the operation of the facility’s exclusion plan.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-1A-24(d), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective February 26, 2018 (45:4 Md. R. 208)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B, C amended effective June 23, 2014 (41:12 Md. R. 670)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C—E amended effective February 26, 2018 (45:4 Md. R. 208)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective February 26, 2018 (45:4 Md. R. 208); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B, C amended effective June 23, 2014 (41:12 Md. R. 670)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective February 26, 2018 (45:4 Md. R. 208); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective June 23, 2014 (41:12 Md. R. 670); February 26, 2018 (45:4 Md. R. 208); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07D amended effective June 23, 2014 (41:12 Md. R. 670)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B amended effective June 23, 2014 (41:12 Md. R. 670); February 26, 2018 (45:4 Md. R. 208)</annotation> </annotations> </chapter> <chapter num="08" heading="Collection of Taxes, Fees, and Penalties"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter establishes the manner and method by which the Commission may collect from an applicant or licensee a tax, fee or civil penalty established under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and the manner by which a facility operator may reconcile proceeds under State Government Article, §9-1A-26, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Fee” means an amount established by the Commission that an applicant or licensee is required to pay and includes:</text> <paragraph num="(a)"> <text>A license fee under State Government Article, §9-1A-07(b), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>A fee associated with an applicant's criminal history records check under State Government Article, §9-1A-20(d), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>An application, license, or renewal fee under COMAR 36.03.02, 36.03.03, and 36.04.02;</text> </paragraph> <paragraph num="(d)"> <text>An annual fee of $425 for each authorized video lottery terminal on a video lottery terminal operator’s license, to be paid by a video lottery operation licensee as required by State Government Article, §9-1A-33, Annotated Code of Maryland, and COMAR 36.04.02.02;</text> </paragraph> <paragraph num="(e)"> <text>For the highest number of table games in use on a single gaming day in the applicable calendar year, an annual fee of $500 to be paid by a video lottery operation licensee for each table game as authorized by State Government Article, §9-1A-33, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(f)"> <text>Except for an initial license fee for a video lottery operation license, any other fee imposed by the Commission under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(g)"> <text>A renewal of a video lottery facility license under COMAR 36.03.03.10.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Penalty” has the meaning stated in COMAR 36.03.04.02.</text> </paragraph> <paragraph num="(3)"> <text>“Proceeds” has the meaning stated in State Government Article, §9-1A-01, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Obligation to Pay."> <paragraph num="A."> <text>A tax that is due and payable shall be paid by an applicant or licensee and collected in accordance with State and federal law.</text> </paragraph> <paragraph num="B."> <text>For a fee or penalty:</text> <paragraph num="(1)"> <text>The Commission shall issue an invoice or other order to pay; and</text> </paragraph> <paragraph num="(2)"> <text>An applicant or licensee shall remit payment to the Commission within 30 days after the date of the invoice or order to pay.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Reconciliation of Proceeds.</text> <paragraph num="(1)"> <text>In reconciling proceeds as described in this section, a facility operator shall account for video lottery terminal proceeds separately from table game proceeds.</text> </paragraph> <paragraph num="(2)"> <text>If a facility operator returns to successful players more than the amount of money bet through video lottery terminal or table game play on a gaming day, the facility operator may subtract the difference between the amount bet and the amount returned to players from its proceeds of up to 7 following gaming days.</text> </paragraph> <paragraph num="(3)"> <text>A facility operator may not subtract losses pursuant to §C(2) of this regulation for more than 7 consecutive gaming days.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Collection and Deposit of Payments."> <paragraph num="A."> <text>An applicant or licensee shall pay a fee or civil penalty by:</text> <paragraph num="(1)"> <text>Wire transfer;</text> </paragraph> <paragraph num="(2)"> <text>Money order;</text> </paragraph> <paragraph num="(3)"> <text>Certified check made payable to the “State of Maryland”; or</text> </paragraph> <paragraph num="(4)"> <text>Any other manner designated by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission shall deposit payment of:</text> <paragraph num="(1)"> <text>Except as provided in §B(3) of this regulation, an application, license, renewal, or other fee into a bank account that the State Treasurer designates to the credit of the State Lottery and Gaming Control Agency Fund to cover the Commission’s administrative costs related to licensing;</text> </paragraph> <paragraph num="(2)"> <text>A fee into the Problem Gambling Fund established in the Maryland Department of Health under State Government Article, §9-1A-33(b), Annotated Code of Maryland:</text> <paragraph num="(a)"> <text>An annual fee of $425 for a video lottery terminal; and</text> </paragraph> <paragraph num="(b)"> <text>An annual fee of $500 for a table game; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A fee for renewing a video lottery facility operator license as authorized in State Government Article, §9-1A-13, Annotated Code of Maryland, into the Education Trust Fund established in State Government Article, §9-1A-30, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission may recover from an applicant or licensee whose payment of a fee or penalty is overdue:</text> <paragraph num="(1)"> <text>The unpaid amount of the fee or penalty;</text> </paragraph> <paragraph num="(2)"> <text>Revenues lost to the State as the result of the nonpayment;</text> </paragraph> <paragraph num="(3)"> <text>Attorney's fees; and</text> </paragraph> <paragraph num="(4)"> <text>Any other penalty, interest, cost, and expense allowable by law.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The failure of a licensee to timely pay a fee or penalty is a violation of a directive of the Commission.</text> </paragraph> <paragraph num="E."> <text>The Commission's election to seek recovery under §C of this regulation for a licensee's failure to pay a fee or penalty does not preclude the Commission or the State from enforcing other rights, or seeking other remedies, for the same failure to pay.</text> </paragraph> <paragraph num="F."> <text>Nothing in this chapter shall be construed to preclude the Commission from withholding or reducing the distribution of proceeds to an operator under State Government Article, §9-1A-27, Annotated Code of Maryland, or instituting as set-off, counterclaim, fines, penalties, or any other legally permitted deduction, for a licensee's:</text> <paragraph num="(1)"> <text>Failure to pay a fee or penalty;</text> </paragraph> <paragraph num="(2)"> <text>Unsatisfactory performance;</text> </paragraph> <paragraph num="(3)"> <text>Failure to timely fulfill all of the Commission's requirements; or</text> </paragraph> <paragraph num="(4)"> <text>Material breach of a term or condition of a license.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The Commission shall account for collection of a fee or penalty in accordance with applicable law.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-01, 9-1A-04, 9-1A-13, 9-1A-26, and 9-1A-33, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended as an emergency provision effective July 10, 2017 (44:16 Md. R. 807); amended permanently effective September 11, 2017 (44:18 Md. R. 867)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective July 10, 2017 (44:16 Md. R. 807); amended permanently effective September 11, 2017 (44:18 Md. R. 867)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C adopted as an emergency provision effective July 10, 2017 (44:16 Md. R. 807); amended permanently effective September 11, 2017 (44:18 Md. R. 867)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C amended effective August 13, 2018 (45:16 Md. R. 776)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B, D amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="09" heading="Junkets"> <regulation prefix="Regulation" num=".01" heading="Junket Agreements and Final Reports."> <paragraph num="A."> <text>A facility operator shall ensure that:</text> <paragraph num="(1)"> <text>A junket agreement between a facility operator and a junket enterprise, or junket representative, is in writing; and</text> </paragraph> <paragraph num="(2)"> <text>An executed copy of the junket agreement is submitted to the Commission before a junket arrives at the video lottery facility.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A junket agreement shall include at least the following provisions:</text> <paragraph num="(1)"> <text>If the Commission disapproves a term of the junket agreement, or determines that a junket enterprise or junket representative has engaged in an activity prohibited under Regulation .02 of this chapter:</text> <paragraph num="(a)"> <text>The Commission shall notify the facility operator that is a party to the junket agreement of the disapproval or determination; and</text> </paragraph> <paragraph num="(b)"> <text>The operations under the agreement shall be suspended as of the date of the Commission’s disapproval until it is amended by the parties to the satisfaction of the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The junket enterprise or junket representative shall:</text> <paragraph num="(a)"> <text>Maintain good standing with the Maryland Department of Assessment and Taxation; and</text> </paragraph> <paragraph num="(b)"> <text>Obtain and maintain all required business licenses and permits;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The services of the junket enterprise and junket representative will comply with all applicable laws.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Junket final reports shall:</text> <paragraph num="(1)"> <text>Be prepared by a facility operator for a junket engaged in or on its property, and shall include:</text> <paragraph num="(a)"> <text>The origin of a junket and its date and time of arrival and departure;</text> </paragraph> <paragraph num="(b)"> <text>The name of all junket enterprises and junket representatives involved in the junket;</text> </paragraph> <paragraph num="(c)"> <text>A junket manifest that lists the names and addresses of the junket participants;</text> </paragraph> <paragraph num="(d)"> <text>The nature, amount, and value of complimentary services, accommodations, and other items provided by the facility to a junket participant; and</text> </paragraph> <paragraph num="(e)"> <text>The total amount of services or other items of value provided to or for the benefit of a patron participating in a junket that was paid for by the junket enterprise, a junket representative, or an agent or employee of a junket enterprise or junket representative;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Be prepared and signed by an employee of the facility operator;</text> </paragraph> <paragraph num="(3)"> <text>Be prepared within 7 days of completion of the junket; and</text> </paragraph> <paragraph num="(4)"> <text>Upon request of the Commission, be submitted to the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Prohibited Activities."> <text>A facility operator shall ensure that a junket enterprise or a junket representative, or an agent or employee of a junket enterprise or a junket representative, does not:</text> <paragraph num="A."> <text>Unless approved in writing by the Commission, accept compensation on any basis other than theoretical win;</text> </paragraph> <paragraph num="B."> <text>Engage in collection efforts;</text> </paragraph> <paragraph num="C."> <text>Solicit, receive, or accept any fee or gratuity from a patron for the privilege of participating in a junket or for performance of any function for which the junket enterprise or junket representative is licensed;</text> </paragraph> <paragraph num="D."> <text>Unless disclosed in writing to the facility operator for which the junket was arranged, pay for transportation or any other service or item of value that is provided to or for the benefit of a patron participating in a junket;</text> </paragraph> <paragraph num="E."> <text>Extend credit to, or grant credit on behalf of a facility operator to, a patron participating in a junket;</text> </paragraph> <paragraph num="F."> <text>Accept an advance of money or a loan from a patron participating in a junket;</text> </paragraph> <paragraph num="G."> <text>Engage in conduct that would bring the State into disrepute;</text> </paragraph> <paragraph num="H."> <text>Pursue economic gain in an occupational manner or context that is in violation of the laws of the State, if the pursuit creates a reasonable belief that participation of the junket enterprise or junket representative would be inimical to the policies of State law or the State’s video lottery terminal operations;</text> </paragraph> <paragraph num="I."> <text>Engage in activities that create a reasonable belief that the junket enterprise or junket representative is, or is an associate of, a career offender or a member of a career offender cartel.</text> </paragraph> <paragraph num="J."> <text>Engage in a predatory marketing practice prohibited under COMAR 36.03.03.08; or</text> </paragraph> <paragraph num="K."> <text>Perform junket services under an agreement that has not been reduced to writing.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02 and 9-1A-12, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01 and .02 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation> </annotations> </chapter> <chapter num="10" heading="Video Lottery Facility Minimum Internal Control Standards"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Bill validator” means an element of a video lottery terminal designed and configured to accept any combination of currency, gaming tickets, promotional play instruments, or other instruments authorized by the Commission for activating credits on a video lottery terminal.</text> </paragraph> <paragraph num="(2)"> <text>“Cash” means currency and coin.</text> </paragraph> <paragraph num="(3)"> <text>“Cash equivalent” means a:</text> <paragraph num="(a)"> <text>Certified check, cashier’s check, treasurer’s check, travelers check, or money order that is:</text> <paragraph num="(i)"> <text>Payable to the facility operator, “bearer”, or “cash”;</text> </paragraph> <paragraph num="(ii)"> <text>Drawn for a specific amount;</text> </paragraph> <paragraph num="(iii)"> <text>Currently dated not postdated;</text> </paragraph> <paragraph num="(iv)"> <text>Payable on demand; and</text> </paragraph> <paragraph num="(v)"> <text>Without an endorsement; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Certified check, cashier’s check, treasurer’s check, or money order that is:</text> <paragraph num="(i)"> <text>Made payable to the presenting player;</text> </paragraph> <paragraph num="(ii)"> <text>Drawn for a specific amount;</text> </paragraph> <paragraph num="(iii)"> <text>Currently dated not postdated;</text> </paragraph> <paragraph num="(iv)"> <text>Payable on demand;</text> </paragraph> <paragraph num="(v)"> <text>Endorsed by the presenting player; and</text> </paragraph> <paragraph num="(vi)"> <text>Without an endorsement other than that of the presenting player.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Cash storage box” means a secure tamper resistant container in a bill validator into which currency, gaming tickets, promotional play instruments, or other instruments authorized by the Commission for activating credits on a video lottery terminal are deposited.</text> </paragraph> <paragraph num="(5)"> <text>“Cashable credit” means a credit on a video lottery terminal which activates play and is convertible to cash at the conclusion of play.</text> </paragraph> <paragraph num="(6)"> <text>Complimentary Services.</text> <paragraph num="(a)"> <text>“Complimentary services” means any lodging, service, or item which:</text> <paragraph num="(i)"> <text>Is offered by a facility operator directly or indirectly to a player at no cost or at a reduced cost; and</text> </paragraph> <paragraph num="(ii)"> <text>Is not generally available to the public.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Complimentary services” does not include:</text> <paragraph num="(i)"> <text>Noncashable credits issued to a player as part of a player incentive or reward program; and</text> </paragraph> <paragraph num="(ii)"> <text>Lodging available to the public through convention or government rates.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Customer deposit account” means a player-specific account established in a facility operator’s cashiers’ cage accountability into which a player may deposit cash or funds accepted by means of personal check, wire transfer, cash equivalent, or other negotiable instrument.</text> </paragraph> <paragraph num="(8)"> <text>“Gaming ticket” means an instrument that upon insertion into a video lottery terminal bill validator entitles the player inserting the gaming ticket to credits on a video lottery terminal corresponding to the amount printed on the gaming ticket.</text> </paragraph> <paragraph num="(9)"> <text>“Gaming ticket system” means the collective hardware, software, communications technology, and other ancillary equipment owned or leased by a facility operator to facilitate the issuance or redemption of a gaming ticket.</text> </paragraph> <paragraph num="(10)"> <text>“Noncashable credit” means a credit on a video lottery terminal which activates play but is not convertible to cash at the conclusion of play.</text> </paragraph> <paragraph num="(11)"> <text>“Promotional play” means an award by a facility operator of noncashable credits on a video lottery terminal:</text> <paragraph num="(a)"> <text>Directly or indirectly to a player; and</text> </paragraph> <paragraph num="(b)"> <text>With or without regard to the:</text> <paragraph num="(i)"> <text>Identity of the player; or</text> </paragraph> <paragraph num="(ii)"> <text>Player’s level of gaming activity.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(12)"> <text>“Promotional play system” means the collective hardware, software, communications technology and other ancillary equipment owned or leased by a facility operator to facilitate the award of promotional play at a video lottery terminal or table game by means of a:</text> <paragraph num="(a)"> <text>Promotional play instrument; or</text> </paragraph> <paragraph num="(b)"> <text>Download from the system to the video lottery terminal.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Replacement check” means a personal check accepted by a facility operator in a counter check substitution, consolidation, or redemption transaction under Regulation .28 of this chapter.</text> </paragraph> <paragraph num="(14)"> <text>“Signature”, for a facility employee or contractor, means:</text> <paragraph num="(a)"> <text>At a minimum, the first initial, last name, and Commission license number, written by the facility employee or contractor; or</text> </paragraph> <paragraph num="(b)"> <text>The unique identification code issued to the facility employee or contractor by the facility operator if the document to be signed is authorized by the Commission to be generated by a video lottery system and the method of signature is approved or required by the Commission.</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>“Video lottery system” means the collective hardware, software, communications technology, and other ancillary equipment owned or leased by a facility operator to collect, monitor, interpret, analyze, authorize, issue, redeem, report, and audit data with regard to activity at video lottery terminals, including, but not limited to, a:</text> <paragraph num="(a)"> <text>Video lottery terminal data system;</text> </paragraph> <paragraph num="(b)"> <text>Casino management system;</text> </paragraph> <paragraph num="(c)"> <text>Gaming ticket system;</text> </paragraph> <paragraph num="(d)"> <text>Promotional play system; and</text> </paragraph> <paragraph num="(e)"> <text>Player tracking system.</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>“Wire transfer” means a transfer of funds by means of the Federal Reserve Bank wire system in accordance with the requirements of 12 C.F.R. 210.25 et seq.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Accounting Records."> <paragraph num="A."> <text>A facility operator shall maintain complete, accurate, and legible records of all transactions pertaining to the revenues and expenses of a facility.</text> </paragraph> <paragraph num="B."> <text>General ledger records shall be maintained on a double entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles in the United States.</text> </paragraph> <paragraph num="C."> <text>Subsidiary ledgers and records supporting general ledger records shall be prepared in accordance with generally accepted accounting principles in the United States.</text> </paragraph> <paragraph num="D."> <text>Subsidiary ledgers and records shall include, at a minimum, documents that:</text> <paragraph num="(1)"> <text>Support the financial statements and all transactions impacting the financial statements including contracts or agreements with manufacturers, contractors, and management companies;</text> </paragraph> <paragraph num="(2)"> <text>Pertain to proceeds including generation of, accounting for, and transmission into the State Lottery Fund;</text> </paragraph> <paragraph num="(3)"> <text>Identify for each video lottery terminal and table game on a week-to-date, month-to-date, and year-to-date basis:</text> <paragraph num="(a)"> <text>Handle;</text> </paragraph> <paragraph num="(b)"> <text>Payout;</text> </paragraph> <paragraph num="(c)"> <text>Win amount;</text> </paragraph> <paragraph num="(d)"> <text>Win percentage; and</text> </paragraph> <paragraph num="(e)"> <text>Average payout percentage;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Summarize the cost, by category of service, of complimentary services under Regulation .09 of this chapter;</text> </paragraph> <paragraph num="(5)"> <text>Identify all costs and expenses associated with the operation of a facility;</text> </paragraph> <paragraph num="(6)"> <text>Are prepared in compliance with the internal controls approved by the Commission under Regulation .05 of this chapter; and</text> </paragraph> <paragraph num="(7)"> <text>Relate to:</text> <paragraph num="(a)"> <text>Loans and other amounts payable by a facility operator;</text> </paragraph> <paragraph num="(b)"> <text>Player disputes including player complaint forms filed with the Commission under Regulation .47 of this chapter;</text> </paragraph> <paragraph num="(c)"> <text>Negotiable instruments accepted, deposited, returned as uncollected or ultimately written-off by a facility operator under this chapter; and</text> </paragraph> <paragraph num="(d)"> <text>Investments in property and equipment for the benefit of a facility.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Forms and Documents."> <paragraph num="A."> <text>A form or document required by this chapter, including stored data, shall have:</text> <paragraph num="(1)"> <text>All information placed on the form or document recorded in ink or another permanent form; and</text> </paragraph> <paragraph num="(2)"> <text>The title of the form or document and the name of the facility imprinted or preprinted on it.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If under this chapter multiple copies are required of a form or document, all copies shall have the name of the recipient receiving the copy preprinted on the bottom of the copy in order to differentiate between the copies.</text> </paragraph> <paragraph num="C."> <text>If under this chapter a form or document is required to be accounted for by series number or copies of a form or document are required to be compared for agreement, the accounting department shall report exceptions in writing to the responsible department and facility’s internal audit department not later than 2 days after identification of the exception.</text> </paragraph> <paragraph num="D."> <text>A facility operator may prepare more copies of a form or document than required by this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Content of Internal Controls."> <paragraph num="A."> <text>A facility operator shall develop a written description of its administrative and accounting procedures, including the system of internal controls over video lottery terminal and table game operations.</text> </paragraph> <paragraph num="B."> <text>A facility operator’s internal controls are subject to review and approval under Regulation .05 of this chapter.</text> </paragraph> <paragraph num="C."> <text>Internal controls shall, at a minimum, include:</text> <paragraph num="(1)"> <text>Administrative controls and record keeping that document the authorization of transactions;</text> </paragraph> <paragraph num="(2)"> <text>Accounting controls that provide reasonable assurance that:</text> <paragraph num="(a)"> <text>Transactions or financial events which occur in connection with the operation of a video lottery terminal or table game are:</text> <paragraph num="(i)"> <text>Executed in accordance with the facility operator’s authorization protocols;</text> </paragraph> <paragraph num="(ii)"> <text>Recorded to permit preparation of financial statements in conformance with generally accepted accounting principles in the United States and the requirements of this chapter; and</text> </paragraph> <paragraph num="(iii)"> <text>Recorded to permit proper and timely reporting and calculation of proceeds and to maintain accountability for assets;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Access to assets is permitted only in accordance with the facility operator’s authorization protocols; and</text> </paragraph> <paragraph num="(c)"> <text>The recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with regard to a discrepancy;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Procedures and controls for ensuring:</text> <paragraph num="(a)"> <text>That a video lottery terminal accurately and timely communicates all required activities and financial details to the:</text> <paragraph num="(i)"> <text>Central monitor and control system; and</text> </paragraph> <paragraph num="(ii)"> <text>Video lottery system;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>That all functions, duties, and responsibilities are segregated and performed in accordance with sound financial practices by qualified personnel; and</text> </paragraph> <paragraph num="(c)"> <text>Through the use of a surveillance and a security department, that the facility is secure at all times during normal operation and during any emergency due to malfunctioning equipment, loss of power, natural disaster, or any other cause;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Access controls which address, at a minimum:</text> <paragraph num="(a)"> <text>Content of, and administrative responsibility over, the manual or computerized access control matrix governing employee access to restricted areas;</text> </paragraph> <paragraph num="(b)"> <text>Issuance of a temporary access credential; and</text> </paragraph> <paragraph num="(c)"> <text>Comprehensive key controls;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A record retention policy in accordance with Regulation .08 of this chapter;</text> </paragraph> <paragraph num="(6)"> <text>Procedures and controls over the movement of cash and the count room;</text> </paragraph> <paragraph num="(7)"> <text>Procedures and standards for conducting internal audits; and</text> </paragraph> <paragraph num="(8)"> <text>Other procedures and controls the Commission may require to be included in a facility operator’s internal controls.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall make available a current version of its Commission-approved internal controls, in hard copy or through secure computer access, to:</text> <paragraph num="(1)"> <text>All mandatory departments required under Regulation .10E(6) of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>The Commission’s on-site office.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator shall maintain, in hard copy or electronic form, all superseded internal controls together with the written representations required under Regulation .05 of this chapter, for at least 5 years subsequent to the date the internal controls were superseded.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Review of Internal Controls."> <paragraph num="A."> <text>At least 60 days before video lottery terminal or table game operations are to commence, a facility operator shall submit its internal controls to the Commission for review and written approval.</text> </paragraph> <paragraph num="B."> <text>The internal controls shall be accompanied by:</text> <paragraph num="(1)"> <text>A certification by the facility operator’s chief executive officer or chief legal officer that the submitted internal controls conform to the requirements of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this chapter;</text> </paragraph> <paragraph num="(2)"> <text>A certification by the facility operator’s director of finance that the submitted internal controls:</text> <paragraph num="(a)"> <text>Establish a consistent overall system of internal controls;</text> </paragraph> <paragraph num="(b)"> <text>Provide reasonable assurance that financial reporting conforms to generally accepted accounting principles in the United States; and</text> </paragraph> <paragraph num="(c)"> <text>Conform to the requirements of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this chapter; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An opinion letter by an independent certified public accountant expressing an opinion as to:</text> <paragraph num="(a)"> <text>The effectiveness of the design of the submitted system of internal controls over financial reporting;</text> </paragraph> <paragraph num="(b)"> <text>Whether the submitted system of internal controls conforms to the requirements of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this chapter; and</text> </paragraph> <paragraph num="(c)"> <text>If applicable, whether a deviation from the requirements of State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or this chapter identified by the independent certified public accountant in the course of its review of the submitted system of internal controls is material.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator may not commence operations until its internal controls are approved in writing by the Commission.</text> </paragraph> <paragraph num="D."> <text>If the Commission determines that a submitted internal control is deficient the:</text> <paragraph num="(1)"> <text>Commission shall provide the facility operator with written notice of the deficiency; and</text> </paragraph> <paragraph num="(2)"> <text>Facility operator shall revise the internal control as appropriate and resubmit to the Commission for review.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator may not implement a change or amendment in its approved internal controls without the prior written approval of the Commission.</text> </paragraph> <paragraph num="F."> <text>A facility operator’s initial internal controls submission and a change or amendment to its approved internal controls shall be reviewed and approved in accordance with a process and time frame developed and implemented by the Commission.</text> </paragraph> <paragraph num="G."> <text>The process developed by the Commission under §F of this regulation shall, at a minimum, require the facility operator to:</text> <paragraph num="(1)"> <text>Submit a redlined copy of any section of the approved internal controls to be changed or amended with added text underlined and deleted text lined out;</text> </paragraph> <paragraph num="(2)"> <text>Document on the redlined copy the date the Commission approved the section to be changed or amended and the date the revision was submitted to the Commission for review;</text> </paragraph> <paragraph num="(3)"> <text>Submit a narrative explaining the reason for the change or amendment which includes the facility operator’s target date for implementation;</text> </paragraph> <paragraph num="(4)"> <text>Submit the written representations required in §B(1) and (2) of this regulation with regard to the proposed change or amendment;</text> </paragraph> <paragraph num="(5)"> <text>Maintain a log of all changes or amendments in approved internal controls which includes the initial approval date and the effective date of any change or amendment approved by the Commission; and</text> </paragraph> <paragraph num="(6)"> <text>Mark each page of approved internal controls with the date on which it was approved by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Standard Financial and Statistical Reports."> <paragraph num="A."> <text>The Commission may require a facility operator to submit daily, weekly, monthly, quarterly, and annual reports of financial and statistical data.</text> </paragraph> <paragraph num="B."> <text>Reports required under this regulation shall be in a form and submitted in accordance with a time frame specified by the Commission.</text> </paragraph> <paragraph num="C."> <text>Unless otherwise specified by the Commission, reports to the Commission shall be signed by the:</text> <paragraph num="(1)"> <text>Chief executive officer if the facility operator is a corporation;</text> </paragraph> <paragraph num="(2)"> <text>General partner if the facility operator is a partnership;</text> </paragraph> <paragraph num="(3)"> <text>Manager if the facility operator is a limited liability company;</text> </paragraph> <paragraph num="(4)"> <text>Chief executive officer or functional equivalent if the facility operator is any other form of business association; or</text> </paragraph> <paragraph num="(5)"> <text>Owner if the facility operator is a sole proprietorship.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall submit a report to the Commission on the due date specified by the Commission unless an extension has been approved in writing by the Commission.</text> </paragraph> <paragraph num="E."> <text>The Commission may, on written notice to a facility operator, require an interim report to be submitted in a form and in accordance with a time frame specified by the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Annual Audit and Other Regulatory Reports."> <paragraph num="A."> <text>A facility operator shall cause its annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant.</text> </paragraph> <paragraph num="B."> <text>The annual financial statements shall be:</text> <paragraph num="(1)"> <text>Prepared on a comparative basis for the current and prior fiscal year and present financial position and results of operations in conformity with generally accepted accounting principles in the United States; and</text> </paragraph> <paragraph num="(2)"> <text>If the revenue and assets of the Maryland facility operator operations are less than 75 percent of the combined total of the operator’s parent, Maryland specific audited annual financial statements of the facility operator revenue and assets.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The audited financial statements shall include a footnote reconciling and explaining any difference between the financial statements included in any report submitted to the Commission under Regulation .06 of this chapter and the audited financial statements.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall with regard to adjustments resulting from the annual audit:</text> <paragraph num="(1)"> <text>Disclose to the Commission all adjustments whether or not recorded in the accounting records; and</text> </paragraph> <paragraph num="(2)"> <text>Record the adjustment in the accounting records of the year to which the adjustment relates.</text> </paragraph> </paragraph> <paragraph num="E."> <text>No later than 90 days after the end of its fiscal year, a facility operator shall submit to the Commission:</text> <paragraph num="(1)"> <text>A copy of its audited financial statements; and</text> </paragraph> <paragraph num="(2)"> <text>Any management letter or report prepared with regard to the financial statements by its independent certified public accountant.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A facility operator shall require the independent certified public accountant auditing its financial statements or other qualified entity approved by the Commission to render the following additional reports:</text> <paragraph num="(1)"> <text>A report identifying:</text> <paragraph num="(a)"> <text>Material weaknesses or significant deficiencies in the facility operator’s Commission-approved internal controls noted in the course of the examination of the financial statements; and</text> </paragraph> <paragraph num="(b)"> <text>Recommendations as to how to eliminate each material weakness or significant deficiency identified; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A report assessing the adequacy and effectiveness of the facility operator’s information technology security controls and system configurations with recommendations as to how to eliminate each material weakness or significant deficiency identified.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A facility operator shall prepare a written response to the reports required by §F of this regulation which includes details as to any corrective action taken.</text> </paragraph> <paragraph num="H."> <text>No later than 120 days after the end of its fiscal year, a facility operator shall submit to the Commission a copy of:</text> <paragraph num="(1)"> <text>The reports required under §F of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>The response required under §G of this regulation; and</text> </paragraph> <paragraph num="(3)"> <text>Any other report on internal controls or other matters relative to its accounting or operating procedures rendered by its independent certified public accountant.</text> </paragraph> </paragraph> <paragraph num="I."> <text>If a facility operator or any of its affiliates are publicly held, the facility operator shall submit to the Commission a copy of:</text> <paragraph num="(1)"> <text>Any report required to be filed with the Securities and Exchange Commission including:</text> <paragraph num="(a)"> <text>Form S-1;</text> </paragraph> <paragraph num="(b)"> <text>Form 8-K;</text> </paragraph> <paragraph num="(c)"> <text>Form 10-Q;</text> </paragraph> <paragraph num="(d)"> <text>Form 10-K;</text> </paragraph> <paragraph num="(e)"> <text>Proxy statement;</text> </paragraph> <paragraph num="(f)"> <text>Information statement; and</text> </paragraph> <paragraph num="(g)"> <text>Registration statement; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Any other report required to be filed with a domestic or foreign securities regulatory agency.</text> </paragraph> </paragraph> <paragraph num="J."> <text>A report required to be filed under §I of this regulation shall be submitted to the Commission no later than 10 days after the date of filing with the applicable agency.</text> </paragraph> <paragraph num="K."> <text>A facility operator shall submit a written report to the Commission if an independent certified public accountant who is engaged as the principal accountant to audit its financial statements:</text> <paragraph num="(1)"> <text>Resigns;</text> </paragraph> <paragraph num="(2)"> <text>Is dismissed as the facility operator’s principal accountant; or</text> </paragraph> <paragraph num="(3)"> <text>Is replaced by another independent certified public accountant as principal accountant.</text> </paragraph> </paragraph> <paragraph num="L."> <text>A report required to be filed under §K of this regulation shall include:</text> <paragraph num="(1)"> <text>The date of the resignation, dismissal, or new engagement;</text> </paragraph> <paragraph num="(2)"> <text>Whether in connection with the audits of the 2 most recent years preceding a resignation, dismissal, or new engagement there were any disagreements, resolved or unresolved, with the former accountant on:</text> <paragraph num="(a)"> <text>Accounting principles or practices;</text> </paragraph> <paragraph num="(b)"> <text>Financial statement disclosure; or</text> </paragraph> <paragraph num="(c)"> <text>Auditing scope or procedure;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The nature of any disagreement disclosed in §L(2) of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>Whether the principal accountant’s report on the financial statements for either of the past 2 years contained an adverse opinion or disclaimer of opinion or was qualified;</text> </paragraph> <paragraph num="(5)"> <text>The nature of any adverse opinion, disclaimer of opinion, or qualification; and</text> </paragraph> <paragraph num="(6)"> <text>A letter from the former principal accountant addressed to the Commission stating whether the principal accountant concurs with the statements made by the facility operator in the report to the Commission submitted under this section.</text> </paragraph> </paragraph> <paragraph num="M."> <text>A report required to be filed under §K of this regulation shall be submitted to the Commission no later than 10 days after the end of the month in which the resignation, dismissal, or new engagement occurred.</text> </paragraph> <paragraph num="N."> <text>No later than 7 days after the date of filing with the Financial Crimes Enforcement Network, a facility operator shall provide the Commission with access to each Suspicious Activity Report-Casino filed under 31 CFR §103.21.</text> </paragraph> <paragraph num="O."> <text>A facility operator or a director, officer, employee, or agent of a facility operator who reports suspicious activity under 31 CFR §103.21 may not notify an individual involved in the suspicious activity that the suspicious activity has been reported.</text> </paragraph> <paragraph num="P."> <text>No later than 7 days after the date of filing with the Financial Crimes Enforcement Network, a facility operator shall provide the Commission with access to each Currency Transaction Report by Casino filed under 31 CFR §103.22.</text> </paragraph> <paragraph num="Q."> <text>At least 30 days before video lottery terminal operations are to commence, a facility operator shall submit to the Commission a copy of its compliance program required under 31 CFR §103.64.</text> </paragraph> <paragraph num="R."> <text>On or before the effective date, a facility operator shall submit to the Commission any change or amendment to its compliance program required under 31 CFR §103.64.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Record Retention."> <paragraph num="A."> <text>Definition.</text> <paragraph num="(1)"> <text>In this regulation, the following term has the meaning indicated.</text> </paragraph> <paragraph num="(2)"> <text>Term Defined. “Books and records” means any document pertaining to, prepared in, or generated by a facility operator, without regard to the medium through which the record is generated or maintained, including all general ledger records, subsidiary records and ledgers, computer-generated data, forms, documents, internal audit reports and work papers, correspondence, and personnel records.</text> </paragraph> </paragraph> <paragraph num="B."> <text>All original books and records shall be:</text> <paragraph num="(1)"> <text>Prepared and maintained in a complete, accurate, and legible form;</text> </paragraph> <paragraph num="(2)"> <text>Stored in a format that ensures readability, regardless of whether the technology or software that created or maintains it has become obsolete;</text> </paragraph> <paragraph num="(3)"> <text>Retained in a secure location equipped with a fire notification system:</text> <paragraph num="(a)"> <text>At the facility; or</text> </paragraph> <paragraph num="(b)"> <text>An off-site location approved by the Commission under §G of this regulation for the express purpose of document storage;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Kept immediately available for inspection by the Commission during all hours of operation;</text> </paragraph> <paragraph num="(5)"> <text>Organized and indexed in a manner designed to provide immediate accessibility to the Commission; and</text> </paragraph> <paragraph num="(6)"> <text>Destroyed only after expiration of the minimum retention period required under this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission may, on submission of a written request or alternate record retention schedule by a facility operator, authorize destruction prior to the expiration of the minimum retention period required under this regulation.</text> </paragraph> <paragraph num="D."> <text>Unless a request for destruction or alternate record retention schedule is submitted in writing and approved in writing by the Commission, a facility operator shall retain indefinitely original books and records documenting:</text> <paragraph num="(1)"> <text>Ownership of the facility;</text> </paragraph> <paragraph num="(2)"> <text>Internally initiated investigations and due diligence;</text> </paragraph> <paragraph num="(3)"> <text>Personnel matters;</text> </paragraph> <paragraph num="(4)"> <text>Signature cards of current employees; and</text> </paragraph> <paragraph num="(5)"> <text>Destruction of documents including:</text> <paragraph num="(a)"> <text>The identity of the document;</text> </paragraph> <paragraph num="(b)"> <text>Period of retention; and</text> </paragraph> <paragraph num="(c)"> <text>Date of destruction.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Unless a request for destruction or alternate record retention schedule is submitted in writing and approved in writing by the Commission, a facility operator shall retain for a minimum of 5 years all original books and records not:</text> <paragraph num="(1)"> <text>Identified for indefinite retention under §D of this regulation; or</text> </paragraph> <paragraph num="(2)"> <text>Subject to an exemption under §F of this regulation.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Exceptions. The following exceptions apply to the retention period in §D of this regulation:</text> <paragraph num="(1)"> <text>A minimum retention period of 4 years shall apply to documentation pertaining to cashiers’ cage transactions;</text> </paragraph> <paragraph num="(2)"> <text>A minimum retention period of 3 years shall apply to:</text> <paragraph num="(a)"> <text>Signature cards of terminated employees;</text> </paragraph> <paragraph num="(b)"> <text>Insurance records relating to claims by players;</text> </paragraph> <paragraph num="(c)"> <text>Surveillance and security department:</text> <paragraph num="(i)"> <text>Employee duty logs;</text> </paragraph> <paragraph num="(ii)"> <text>Visitor logs;</text> </paragraph> <paragraph num="(iii)"> <text>Incident logs;</text> </paragraph> <paragraph num="(iv)"> <text>Recording logs; and</text> </paragraph> <paragraph num="(v)"> <text>Equipment malfunction reports; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Documentation pertaining to gaming tickets or promotional play instruments reported to the Commission as possibly counterfeit, altered, or tampered with;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A minimum retention period of 30 days shall apply to:</text> <paragraph num="(a)"> <text>Cancelled promotional play instruments for which all reconciliations required by the facility operator’s approved internal controls have been conducted and resolved;</text> </paragraph> <paragraph num="(b)"> <text>Voided gaming tickets; and</text> </paragraph> <paragraph num="(c)"> <text>Gaming tickets redeemed at a location other than a video lottery terminal or ticket redemption unit; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A minimum retention period of 7 days shall apply to gaming tickets redeemed at a video lottery terminal or ticket redemption unit.</text> </paragraph> </paragraph> <paragraph num="G."> <text>On submission of a written request by the facility operator, the Commission may approve a location outside the facility to store original books and records.</text> </paragraph> <paragraph num="H."> <text>A facility operator requesting to store original books and records outside the facility shall submit to the Commission:</text> <paragraph num="(1)"> <text>A description of the proposed location, including details with regard to security and fire notification systems;</text> </paragraph> <paragraph num="(2)"> <text>Details with regard to the ownership of the proposed storage facility; and</text> </paragraph> <paragraph num="(3)"> <text>Procedures for Commission access to original books and records retained at the proposed location.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A facility operator may not store books and records outside the facility without the prior written approval of the Commission.</text> </paragraph> <paragraph num="J."> <text>On submission of a written request by a facility operator, the Commission may approve a microfilm, microfiche, or other suitable media system for the copying and storage of original books and records.</text> </paragraph> <paragraph num="K."> <text>A facility operator submitting a system for the copying and storage of original books and records shall demonstrate to the satisfaction of the Commission that the:</text> <paragraph num="(1)"> <text>Processing, preservation, and maintenance methods to be utilized will make books and records readily available for review and reproduction;</text> </paragraph> <paragraph num="(2)"> <text>Inspection and quality control methods to be utilized will ensure that when books and records are viewed or reproduced they will exhibit a high degree of legibility and readability;</text> </paragraph> <paragraph num="(3)"> <text>Equipment necessary to readily locate, read, and reproduce books and records is available to the Commission at the facility or approved off-site storage location; and</text> </paragraph> <paragraph num="(4)"> <text>Detailed index of all microfilmed, microfiched, or other stored data maintained and arranged to facilitate the immediate location of particular books and records is available to the Commission at the facility or approved off-site storage location.</text> </paragraph> </paragraph> <paragraph num="L."> <text>A facility operator may not utilize a microfilm, microfiche, or other suitable media system for the copying and storage of original books and records without the prior written approval of the Commission.</text> </paragraph> <paragraph num="M."> <text>A facility operator may utilize the services of a contractor for the destruction of books and records permitted to be destroyed under this regulation.</text> </paragraph> <paragraph num="N."> <text>Nothing in this regulation shall be construed as relieving a facility operator of any obligation to prepare or maintain books and records required by any other federal, State, or local governmental entity.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Complimentary Services."> <paragraph num="A."> <text>Definition.</text> <paragraph num="(1)"> <text>A facility operator shall be under the authority of the County Alcoholic Beverages Licensing Authority for the county in which the facility is located with regard to the sale to individuals of food and alcoholic beverages;</text> </paragraph> <paragraph num="(2)"> <text>Except as provided in this section, a facility operator may not provide food or alcoholic beverages to individuals at no cost;</text> </paragraph> <paragraph num="(3)"> <text>Food or alcoholic beverages offered by a facility operator for sale to individuals may be offered only at prices that are determined by the County Alcoholic Beverages Licensing Authority to be commensurate with the price of similar types of food and alcoholic beverages at restaurants in the county in which the facility is located; and</text> </paragraph> <paragraph num="(4)"> <text>A facility operator may provide food at no cost to individuals to the same extent allowed under Article 2B, §12-106, Annotated Code of Maryland, for a person engaged in the sale or barter of spirituous, malt, or intoxicating liquors and licensed in Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall develop, maintain in writing, and implement adequate internal controls over the authorization and provision of complimentary services.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall at all times make available to the Commission the internal controls required under §C of this regulation but is not required to include them in the system of internal controls submitted to the Commission for approval under Regulation .05 of this chapter.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall collect and retain data pertaining to the cost of, and number of individuals provided with, each category of complimentary services.</text> </paragraph> <paragraph num="E."> <text>Report.</text> <paragraph num="(1)"> <text>A facility operator shall submit to the Commission a quarterly report summarizing complimentary services provided during the reporting period.</text> </paragraph> <paragraph num="(2)"> <text>The report shall include year-to-date totals of complimentary services provided.</text> </paragraph> <paragraph num="(3)"> <text>The report must be submitted:</text> <paragraph num="(a)"> <text>On or before the 15th day of the month following the end of each quarter; or</text> </paragraph> <paragraph num="(b)"> <text>At the request of the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>The report required under §F of this regulation shall:</text> <paragraph num="(1)"> <text>Separate complimentary services into the following categories:</text> <paragraph num="(a)"> <text>Rooms;</text> </paragraph> <paragraph num="(b)"> <text>Food and Beverage;</text> </paragraph> <paragraph num="(c)"> <text>Travel;</text> </paragraph> <paragraph num="(d)"> <text>Gifts:</text> <paragraph num="(i)"> <text>Cash; and</text> </paragraph> <paragraph num="(ii)"> <text>Noncash; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Other; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Determine the cost of complimentary services provided to a player as follows:</text> <paragraph num="(a)"> <text>Complimentary services offered by a facility operator in the normal course of business shall be reported at an amount based upon the full retail price normally charged for the service by the facility operator;</text> </paragraph> <paragraph num="(b)"> <text>Complimentary services not offered for sale by the facility operator in the normal course of business but provided directly by the facility operator to the player shall be reported at an amount based upon the actual cost to the facility operator of providing the service;</text> </paragraph> <paragraph num="(c)"> <text>Complimentary services provided directly or indirectly on behalf of a facility operator by a third party not related to the facility operator shall be reported at an amount based upon the actual cost to the facility operator of having the third party provide the service; and</text> </paragraph> <paragraph num="(d)"> <text>Complimentary services provided directly or indirectly on behalf of a facility operator by a third party related to the facility operator shall be reported at an amount based upon the actual cost to the third party of providing the service.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>A facility operator shall submit to the Commission a report identifying a player who, together with guests, received $5,000 or more in complimentary services within a period of 5 consecutive days.</text> </paragraph> <paragraph num="H."> <text>The report required by §G of this regulation shall:</text> <paragraph num="(1)"> <text>State the reason complimentary services were provided;</text> </paragraph> <paragraph num="(2)"> <text>Include the player’s rating in the facility operator’s player rating system at the time the complimentary services were provided;</text> </paragraph> <paragraph num="(3)"> <text>Disclose the total amount, including year-to-date totals, provided in complimentary services separated into the following categories:</text> <paragraph num="(a)"> <text>Rooms;</text> </paragraph> <paragraph num="(b)"> <text>Food and Beverage;</text> </paragraph> <paragraph num="(c)"> <text>Travel;</text> </paragraph> <paragraph num="(d)"> <text>Gifts:</text> <paragraph num="(i)"> <text>Cash; and</text> </paragraph> <paragraph num="(ii)"> <text>Noncash; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Other; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Be submitted:</text> <paragraph num="(a)"> <text>At least quarterly, by the 15th day of the month following the end of each quarter; or</text> </paragraph> <paragraph num="(b)"> <text>At the request of the Commission.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Table of Organization."> <paragraph num="A."> <text>For the purposes of this regulation, the title used to describe a department head is intended to indicate responsibility for the functions of the enumerated department and does not obligate the facility operator to the use of that particular title.</text> </paragraph> <paragraph num="B."> <text>Subject to the requirements of this regulation, a facility operator shall tailor its table of organization to meet its needs and policies.</text> </paragraph> <paragraph num="C."> <text>At least 30 days before video lottery terminal or table game operations are to commence, a facility operator shall submit to the Commission for review and written approval a table of organization depicting all direct and indirect reporting lines for:</text> <paragraph num="(1)"> <text>The chief executive officer required under §E(5) of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Mandatory departments required under §E(6) of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>The cashiers’ cage manager required under §M of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>Employees authorized to verify credit applications under Regulation .25 of this chapter; and</text> </paragraph> <paragraph num="(5)"> <text>Employees authorized to extend credit or to approve credit limit increases under Regulation .24 of this chapter.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator may not commence operations until the table of organization submitted under §C of this regulation is approved in writing by the Commission.</text> </paragraph> <paragraph num="E."> <text>A facility operator’s table of organization shall include:</text> <paragraph num="(1)"> <text>A system of personnel and chain of command which permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility;</text> </paragraph> <paragraph num="(2)"> <text>The segregation of incompatible functions, duties, and responsibilities so that no individual is in a position to both:</text> <paragraph num="(a)"> <text>Commit an error or to perpetrate a fraud; and</text> </paragraph> <paragraph num="(b)"> <text>Conceal the error or fraud in the normal course of the individual’s duties;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>All functions, duties, and responsibilities of qualified personnel;</text> </paragraph> <paragraph num="(4)"> <text>Areas of responsibility which are not so extensive as to be impractical for one individual to monitor;</text> </paragraph> <paragraph num="(5)"> <text>A chief executive officer:</text> <paragraph num="(a)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(b)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(c)"> <text>Ultimately responsible for the daily conduct of all operations at the facility; and</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The following mandatory departments and supervisors:</text> <paragraph num="(a)"> <text>A surveillance department supervised by a director of surveillance:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(ii)"> <text>Subject to the reporting requirements of §G of this regulation;</text> </paragraph> <paragraph num="(iii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iv)"> <text>Responsible for the surveillance of all aspects of video lottery terminal and table game operations;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>An internal audit department supervised by a director of internal audit:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(ii)"> <text>Subject to the reporting requirements of §G of this regulation;</text> </paragraph> <paragraph num="(iii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iv)"> <text>Responsible for assessing compliance with approved internal controls, applicable laws and regulations, the reliability of financial reporting, deterring and investigating fraud, and the safeguarding of assets;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>An information technology department supervised by a director of information technology:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(ii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iii)"> <text>Responsible for the quality, reliability, accuracy, and security of all video lottery systems and associated equipment and software utilized by the facility operator regardless of whether the data, software, or systems are located in or outside the facility;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>A security department supervised by a director of security:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(ii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iii)"> <text>Responsible for the overall security of the facility;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>An accounting department supervised by a director of finance:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(ii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iii)"> <text>Responsible for all accounting and finance functions including the control and supervision of the cashiers' cage, satellite cages, and count room; and</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>A gaming operations department supervised by a director of gaming operations:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(ii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iii)"> <text>Responsible for the operation and conduct of gaming at video lottery terminals and table games.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Nothing in this regulation shall preclude a facility operator from establishing a video lottery terminals and table games department supervised by a director of video lottery terminal operations and a director of table games operation.</text> </paragraph> <paragraph num="G."> <text>The director of surveillance and the director of internal audit required under §E(6) of this regulation shall be independent of the chief executive officer regarding matters of policy, purpose, responsibility, and authority and shall report directly to an:</text> <paragraph num="(1)"> <text>Individual based for employment purposes at the facility with no incompatible functions; or</text> </paragraph> <paragraph num="(2)"> <text>Audit committee of:</text> <paragraph num="(a)"> <text>The facility operator; or</text> </paragraph> <paragraph num="(b)"> <text>A Commission-authorized licensed affiliate of the facility operator.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>The individual or audit committee to whom the director of surveillance and the director of internal audit report under §G of this regulation shall also control the hiring, termination, and salary of the director.</text> </paragraph> <paragraph num="I."> <text>The director of surveillance and the director of internal audit may report to the chief executive officer with regard to daily operations.</text> </paragraph> <paragraph num="J."> <text>Mandatory departments and the supervisors over them shall cooperate with, yet perform independently of, all other mandatory departments and supervisory positions.</text> </paragraph> <paragraph num="K."> <text>A facility operator may designate more than one individual to serve jointly as the director of a mandatory department required by §E of this regulation.</text> </paragraph> <paragraph num="L."> <text>A joint director of a mandatory department under §K of this regulation shall be:</text> <paragraph num="(1)"> <text>Based for employment purposes at the facility; and</text> </paragraph> <paragraph num="(2)"> <text>Individually and jointly accountable and responsible for the operation of the department.</text> </paragraph> </paragraph> <paragraph num="M."> <text>A department that is not mandatory may operate under, or in conjunction with, a mandatory department where the table of organization is consistent with the requirements of §E of this regulation.</text> </paragraph> <paragraph num="N."> <text>A facility operator’s cashiers’ cage manager shall be licensed as a principal employee.</text> </paragraph> <paragraph num="O."> <text>Unless another principal employee required by this regulation is present at the facility, on any shift for which the cashiers’ cage manager is not present in the facility, the cashiers’ cage shift manager responsible for the cashiers’ cage shall be licensed as a principal employee.</text> </paragraph> <paragraph num="P."> <text>A facility operator may not implement a change in the table of organization approved by the Commission under §D of this regulation without the prior written approval of the Commission.</text> </paragraph> <paragraph num="Q."> <text>A facility operator shall ensure that an individual employed at the facility is trained in the policies, procedures, and internal controls relevant to the individual’s function.</text> </paragraph> <paragraph num="R."> <text>Vacancy. If there is a vacancy in the chief executive officer position or any mandatory department director position required by §E of this regulation, the following shall apply:</text> <paragraph num="(1)"> <text>No later than 5 days after the date of a vacancy, a facility operator shall notify the Commission in writing of:</text> <paragraph num="(a)"> <text>The vacant position;</text> </paragraph> <paragraph num="(b)"> <text>The date on which the position will become or became vacant; and</text> </paragraph> <paragraph num="(c)"> <text>The date on which the facility operator anticipates that the vacancy will be filled on a permanent basis;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>No later than 30 days after the date of a vacancy, a facility operator shall fill the vacant position on a temporary basis;</text> </paragraph> <paragraph num="(3)"> <text>No later than 120 days after the original date of the vacancy, a facility operator shall fill the vacant position on a permanent basis; and</text> </paragraph> <paragraph num="(4)"> <text>No later than 5 days after filling a vacancy, a facility operator shall notify the Commission in writing of:</text> <paragraph num="(a)"> <text>The vacant position filled;</text> </paragraph> <paragraph num="(b)"> <text>The name of the individual designated to fill the position;</text> </paragraph> <paragraph num="(c)"> <text>The date that the vacancy was filled; and</text> </paragraph> <paragraph num="(d)"> <text>Whether the vacancy has been filled on a temporary or permanent basis.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Surveillance System Design Standards."> <paragraph num="A."> <text>A facility operator shall install in its facility a surveillance system that complies with the requirements of this regulation.</text> </paragraph> <paragraph num="B."> <text>A facility operator’s surveillance system shall be reviewed and approved by the Commission under Regulation .12 of this chapter.</text> </paragraph> <paragraph num="C."> <text>A facility operator’s surveillance system shall include:</text> <paragraph num="(1)"> <text>Light sensitive cameras enabled by:</text> <paragraph num="(a)"> <text>Lenses of sufficient magnification to read a video lottery terminal reel strip and credit meter;</text> </paragraph> <paragraph num="(b)"> <text>Lighting which is continuous and of sufficient quality to produce clear video recordings and still pictures; and</text> </paragraph> <paragraph num="(c)"> <text>360-degree pan, tilt, and zoom capability, without camera stops, configured to clandestinely monitor and record:</text> <paragraph num="(i)"> <text>Play and transactions conducted at video lottery terminals;</text> </paragraph> <paragraph num="(ii)"> <text>Transactions conducted in the cashiers' cage and any satellite cage including the face of each individual transacting business with a cashier;</text> </paragraph> <paragraph num="(iii)"> <text>Transactions conducted at ticket redemption units, automated jackpot payout machines, and automated teller machines;</text> </paragraph> <paragraph num="(iv)"> <text>Activity in the count room;</text> </paragraph> <paragraph num="(v)"> <text>Movement of cash and cash storage boxes within the facility;</text> </paragraph> <paragraph num="(vi)"> <text>Entrances and exits to the facility and the gaming floor;</text> </paragraph> <paragraph num="(vii)"> <text>Activities in all other restricted areas; and</text> </paragraph> <paragraph num="(viii)"> <text>Other areas and events designated by the Commission;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A monitor room located in the facility:</text> <paragraph num="(a)"> <text>Staffed by employees of the facility operator’s surveillance department 24 hours per day; and</text> </paragraph> <paragraph num="(b)"> <text>Equipped with:</text> <paragraph num="(i)"> <text>A communication system capable of monitoring all security department communications;</text> </paragraph> <paragraph num="(ii)"> <text>Connections, direct or through a documented communication protocol with the security department, to all facility alarm systems;</text> </paragraph> <paragraph num="(iii)"> <text>A surveillance failure notification system that provides an audible, as well as a visual notification, of any failure in the surveillance system or the digital video recording media storage system;</text> </paragraph> <paragraph num="(iv)"> <text>An emergency power system, tested by the facility operator in the presence of the Commission at least once a year, which can be used to operate the surveillance system in the event of a power failure;</text> </paragraph> <paragraph num="(v)"> <text>Computer terminals permitting event notification to, and read only access by authorized surveillance department employees to, the facility operator’s video lottery system;</text> </paragraph> <paragraph num="(vi)"> <text>An updated photo library, consisting of photographs that are no more than 5 years old, of all current employees of the facility;</text> </paragraph> <paragraph num="(vii)"> <text>A copy of the facility operator’s gaming floor plan required under COMAR 36.03.11.05;</text> </paragraph> <paragraph num="(viii)"> <text>A copy of the procedures addressing the evacuation of the facility in the event of fire or other emergency required under Regulation .14 of this chapter; and</text> </paragraph> <paragraph num="(ix)"> <text>Copies of the surveillance system contingency plans required under Regulation .12 of this chapter;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Digital video recording capability equipped to:</text> <paragraph num="(a)"> <text>Superimpose the date and time on all monitoring and recording;</text> </paragraph> <paragraph num="(b)"> <text>Identify and locate, through the use of a meter, counter, or other device or method, a particular event which was recorded;</text> </paragraph> <paragraph num="(c)"> <text>Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images; and</text> </paragraph> <paragraph num="(d)"> <text>Be authenticated through use of an embedded video verification encryption code or watermark;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Audio recording capability in the count room that is:</text> <paragraph num="(a)"> <text>Installed and disclosed to employees of the facility; and</text> </paragraph> <paragraph num="(b)"> <text>Consistent with Courts and Judicial Proceedings Article, §§10-401—10-414, Annotated Code of Maryland; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>An access system which:</text> <paragraph num="(a)"> <text>Controls:</text> <paragraph num="(i)"> <text>Physical and logical access to the surveillance system; and</text> </paragraph> <paragraph num="(ii)"> <text>Physical access to the surveillance monitor room; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Restricts access to the security administration capabilities of the system.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall configure its surveillance system to record all areas and transactions enumerated in §C(1)(c) of this regulation with a resolution of 4 common image format at a minimum of:</text> <paragraph num="(1)"> <text>For a standard definition camera, 30 frames per second; or</text> </paragraph> <paragraph num="(2)"> <text>For a high definition camera, 15 frames per second.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator may configure its surveillance system to record activity in areas of the facility not covered by §D of this regulation at a reduced frame rate with a resolution of 4 common image format, as follows:</text> <paragraph num="(1)"> <text>Public areas shall be recorded at a minimum frame rate of 15 frames per second; and</text> </paragraph> <paragraph num="(2)"> <text>Areas not accessible to the public shall be recorded at a minimum frame rate of 7.5 frames per second.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Except as provided in §G of this regulation, a facility operator shall retain surveillance recordings:</text> <paragraph num="(1)"> <text>For a minimum of 7 days for transactions or events in the areas covered under §E of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>For a minimum of 14 days for transactions or event in the areas covered under §D of this regulation.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Upon the request of the Commission or a law enforcement agency that has proper jurisdiction over the facility, a recording shall be retained and stored in accordance with the directives of the Commission or law enforcement agency pertaining to that recording.</text> </paragraph> <paragraph num="H."> <text>Except as provided in this regulation, the surveillance system shall be under the exclusive control of the facility operator’s surveillance department.</text> </paragraph> <paragraph num="I."> <text>A facility operator shall provide the Commission with timely and unfettered access to its surveillance monitor room, surveillance system, and all transmissions.</text> </paragraph> <paragraph num="J."> <text>A facility operator shall timely comply with a request from the Commission to:</text> <paragraph num="(1)"> <text>Use, as necessary, any monitor room in the facility;</text> </paragraph> <paragraph num="(2)"> <text>Display on the monitors in its monitor room or in the Commission’s on-site monitor room any event capable of being captured by the surveillance system;</text> </paragraph> <paragraph num="(3)"> <text>Relinquish control of a camera or monitor;</text> </paragraph> <paragraph num="(4)"> <text>Discontinue monitoring a particular camera or recording activity captured by it;</text> </paragraph> <paragraph num="(5)"> <text>Make a video recording or photograph of any event capable of being captured by the surveillance system; and provide the recording:</text> <paragraph num="(a)"> <text>In a compact disc;</text> </paragraph> <paragraph num="(b)"> <text>Using a secure drive; or</text> </paragraph> <paragraph num="(c)"> <text>Another method approved by the Commission; and</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Restrict or deny access to a recording or photograph.</text> </paragraph> </paragraph> <paragraph num="K."> <text>A surveillance system may not be remotely accessed from a location outside the surveillance monitor room without the prior written approval of the Commission.</text> </paragraph> <paragraph num="L."> <text>An entrance to a surveillance monitor room may not be visible from the gaming floor.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Surveillance Department Operating Procedures."> <paragraph num="A."> <text>At least 60 days before video lottery terminal or table game operations are to commence, a facility operator shall submit to the Commission for review and written approval:</text> <paragraph num="(1)"> <text>A surveillance system meeting the requirements of Regulation .11 of this chapter including, at a minimum, details pertaining to:</text> <paragraph num="(a)"> <text>Camera configuration inside and outside the facility;</text> </paragraph> <paragraph num="(b)"> <text>Monitor room configuration;</text> </paragraph> <paragraph num="(c)"> <text>Video recording format and configuration specifications;</text> </paragraph> <paragraph num="(d)"> <text>Authentication of digital recordings, including Commission access to the system’s video verification encryption code or watermark;</text> </paragraph> <paragraph num="(e)"> <text>Audio recording format; and</text> </paragraph> <paragraph num="(f)"> <text>System access controls; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Surveillance department operating procedures conforming to this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator may not commence operations until its surveillance system and surveillance department operating procedures are approved in writing by the Commission.</text> </paragraph> <paragraph num="C."> <text>A facility operator’s surveillance department operating procedures shall, at a minimum, require:</text> <paragraph num="(1)"> <text>Coverage of all areas and transactions enumerated in Regulation .11 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Contingency plans addressing:</text> <paragraph num="(a)"> <text>Full and partial failure of the surveillance system including:</text> <paragraph num="(i)"> <text>A contact list with telephone numbers for individuals required to be notified in the event of a failure; and</text> </paragraph> <paragraph num="(ii)"> <text>Facility closure protocols; or</text> </paragraph> <paragraph num="(iii)"> <text>An electronic format equipped with software that documents changes made by each user; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Planned shutdown of the surveillance system;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A surveillance incident log:</text> <paragraph num="(a)"> <text>Maintained by monitor room employees in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed;</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; or</text> </paragraph> <paragraph num="(iii)"> <text>An electronic format equipped with software that documents changes made by each user; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Documenting the scheduled coverage in §C(1) of this regulation and all other nonroutine surveillance activity as follows:</text> <paragraph num="(i)"> <text>Date and time surveillance is commenced;</text> </paragraph> <paragraph num="(ii)"> <text>Name and Commission license number of the individual initiating, performing, or supervising the surveillance;</text> </paragraph> <paragraph num="(iii)"> <text>Reason for the surveillance;</text> </paragraph> <paragraph num="(iv)"> <text>Whether the suspicious activity involves an alleged regulatory violation or criminal activity;</text> </paragraph> <paragraph num="(v)"> <text>Name, if known, alias, or description of an individual being monitored;</text> </paragraph> <paragraph num="(vi)"> <text>Description of the activity in which the individual being monitored is engaged;</text> </paragraph> <paragraph num="(vii)"> <text>Reading on a meter, counter, or device that identifies the point on the video recording at which the event was recorded;</text> </paragraph> <paragraph num="(viii)"> <text>Time at which a video recording is commenced and terminated, if different than when surveillance is commenced or terminated;</text> </paragraph> <paragraph num="(ix)"> <text>Date and time surveillance is terminated;</text> </paragraph> <paragraph num="(x)"> <text>Summary of the results of the surveillance; and</text> </paragraph> <paragraph num="(xi)"> <text>Description of the time, date, and cause of any equipment or camera malfunction which occurred during the conduct of surveillance;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>A surveillance room entry log:</text> <paragraph num="(a)"> <text>To be signed by an individual entering the surveillance monitor room who is not a surveillance department employee assigned to the monitor room’s work shift at the time of entry;</text> </paragraph> <paragraph num="(b)"> <text>Maintained by monitor room employees in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed; or</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Documenting the following:</text> <paragraph num="(i)"> <text>Date and time of entering the monitor room;</text> </paragraph> <paragraph num="(ii)"> <text>The entering individual's name and department or affiliation;</text> </paragraph> <paragraph num="(iii)"> <text>The reason for entering the monitor room;</text> </paragraph> <paragraph num="(iv)"> <text>The name of the individual authorizing the individual's entry into the monitor room; and</text> </paragraph> <paragraph num="(v)"> <text>The date and time of exiting the monitor room;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>That surveillance monitor room employees notify:</text> <paragraph num="(a)"> <text>Security department supervisory personnel within 5 minutes of an incident of equipment failure affecting coverage of the facility; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission within 30 minutes of an incident of equipment failure affecting coverage of the facility citing:</text> <paragraph num="(i)"> <text>Date and time;</text> </paragraph> <paragraph num="(ii)"> <text>Cause of the malfunction; and</text> </paragraph> <paragraph num="(iii)"> <text>Time the facility operator’s security department was notified of the malfunction;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>That the facility operator confirm in writing a notice given verbally to the Commission under §C(5) of this regulation; and</text> </paragraph> <paragraph num="(7)"> <text>That, on a daily basis, the facility operator synchronize the date and time on the surveillance system to the date and time on the central monitor and control system and its video lottery system.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator may not implement a change or amendment in its surveillance system or surveillance department operating procedures approved by the Commission under §B of this regulation without the prior written approval of the Commission.</text> </paragraph> <paragraph num="E."> <text>Surveillance department employees shall be reasonably segregated and independent of all other departments at the facility.</text> </paragraph> <paragraph num="F."> <text>A surveillance department employee may not transfer to any other department in the facility without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Surveillance Department Minimum Staffing."> <paragraph num="A."> <text>At least 60 days before video lottery terminal or table game operations are to commence, a facility operator shall submit its surveillance department minimum staffing plan to the Commission for review and written approval.</text> </paragraph> <paragraph num="B."> <text>A facility operator may not commence operations until its surveillance department minimum staffing plan is approved in writing by the Commission.</text> </paragraph> <paragraph num="C."> <text>A surveillance department minimum staffing plan shall assess, on a per-shift basis, the minimum number of on duty surveillance department employees necessary to:</text> <paragraph num="(1)"> <text>Provide adequate and effective surveillance of all activities in and outside the facility;</text> </paragraph> <paragraph num="(2)"> <text>Ensure the physical safety of employees of and invitees to the facility;</text> </paragraph> <paragraph num="(3)"> <text>Comply with all applicable laws and regulations including Commission-approved internal controls and operating procedures;</text> </paragraph> <paragraph num="(4)"> <text>Monitor the facility to ensure that the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility:</text> <paragraph num="(a)"> <text>An intoxicated individual;</text> </paragraph> <paragraph num="(b)"> <text>An individual who is mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(c)"> <text>An individual who is voluntarily excluded in accordance State Government Article, §9-1A-24(e), Annotated Code of Maryland; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Monitor the gaming floor to ensure that an individual under the age of 21 years is identified, prohibited from accessing the gaming floor in accordance with State Government Article, §9-1A-24(c), Annotated Code of Maryland, and, if necessary, immediately removed from the gaming floor.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator’s proposed surveillance department minimum staffing plan shall consider:</text> <paragraph num="(1)"> <text>Square footage and layout of the facility;</text> </paragraph> <paragraph num="(2)"> <text>Number and configuration of video lottery terminals and table games;</text> </paragraph> <paragraph num="(3)"> <text>Use of fixed and roving security posts;</text> </paragraph> <paragraph num="(4)"> <text>Activity level on a per-shift basis and identify it as slow, normal, or peak;</text> </paragraph> <paragraph num="(5)"> <text>Department supervisory needs; and</text> </paragraph> <paragraph num="(6)"> <text>A limit of one employee per monitor station.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator may not implement a change or amendment in the surveillance department minimum staffing plan approved by the Commission under §B of this regulation without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Security Department Operating Procedures."> <paragraph num="A."> <text>At least 60 days before video lottery or table game operations are to commence, a facility operator shall submit to the Commission for review and written approval its security department operating procedures.</text> </paragraph> <paragraph num="B."> <text>A facility operator may not commence operations until its security department operating procedures are approved in writing by the Commission.</text> </paragraph> <paragraph num="C."> <text>A facility operator’s security department operating procedures shall, at a minimum, include:</text> <paragraph num="(1)"> <text>A security zone plan for the facility, employing fixed security posts and roving security officers designed to ensure:</text> <paragraph num="(a)"> <text>The physical safety of employees of and invitees to the facility;</text> </paragraph> <paragraph num="(b)"> <text>The safeguarding of assets;</text> </paragraph> <paragraph num="(c)"> <text>Compliance with all applicable laws and regulations including Commission approved internal controls and operating procedures;</text> </paragraph> <paragraph num="(d)"> <text>That the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility:</text> <paragraph num="(i)"> <text>An intoxicated individual;</text> </paragraph> <paragraph num="(ii)"> <text>An individual who is mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(iii)"> <text>An individual who is voluntarily excluded in accordance State Government Article, §9-1A-24(e), Annotated Code of Maryland; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>That an individual under the age of 21 years is identified, prohibited from accessing the gaming floor in accordance with State Government Article, §9-1A-24(c), Annotated Code of Maryland, and, if necessary, immediately removed from the gaming floor;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Procedures and controls addressing:</text> <paragraph num="(a)"> <text>Facility access controls including:</text> <paragraph num="(i)"> <text>An access badge system;</text> </paragraph> <paragraph num="(ii)"> <text>If utilized, specifications pertaining to a computerized access control system; and</text> </paragraph> <paragraph num="(iii)"> <text>Administrative responsibility over a manual or computerized access control system;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A temporary access credential;</text> </paragraph> <paragraph num="(c)"> <text>Key controls;</text> </paragraph> <paragraph num="(d)"> <text>Emergency alarm and fire command responsibilities including communication protocols with the surveillance department;</text> </paragraph> <paragraph num="(e)"> <text>Evacuation of the facility in the event of fire or other emergency;</text> </paragraph> <paragraph num="(f)"> <text>The identification and immediate removal of an intoxicated individual, an individual under the age of 21 years, an individual who is mandatorily excluded, and an individual who is voluntarily excluded;</text> </paragraph> <paragraph num="(g)"> <text>Player disputes under Regulation .47 of this chapter; and</text> </paragraph> <paragraph num="(h)"> <text>The notice requirements of §C(4) of this regulation;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A security department incident log:</text> <paragraph num="(a)"> <text>Maintained by security department employees in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed; or</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Documenting the following:</text> <paragraph num="(i)"> <text>Assignment number of the incident;</text> </paragraph> <paragraph num="(ii)"> <text>Date and time;</text> </paragraph> <paragraph num="(iii)"> <text>Name and Commission license of the department member covering the incident;</text> </paragraph> <paragraph num="(iv)"> <text>Nature of the incident; and</text> </paragraph> <paragraph num="(v)"> <text>Resolution of the incident; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>A requirement that a facility operator notice the Commission on detection of:</text> <paragraph num="(a)"> <text>An individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities;</text> </paragraph> <paragraph num="(b)"> <text>An individual possessing a firearm, electronic control device, dangerous weapon, or other device or object prohibited under Regulation .48 of this chapter; or</text> </paragraph> <paragraph num="(c)"> <text>An individual who is:</text> <paragraph num="(i)"> <text>Under the age of 21 years;</text> </paragraph> <paragraph num="(ii)"> <text>Intoxicated;</text> </paragraph> <paragraph num="(iii)"> <text>Mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(iv)"> <text>Voluntarily excluded in accordance with State Government Article, §9-1A-24(e), Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Security Department Minimum Staffing."> <paragraph num="A."> <text>At least 60 days before video lottery terminal or table game operations are to commence, a facility operator shall submit its security department minimum staffing plan to the Commission for review and written approval.</text> </paragraph> <paragraph num="B."> <text>A facility operator may not commence operations until its security department minimum staffing plan is approved in writing by the Commission.</text> </paragraph> <paragraph num="C."> <text>A security department minimum staffing plan shall assess, on a per-shift basis, the minimum number of on-duty security department employees necessary to:</text> <paragraph num="(1)"> <text>Ensure the physical safety of employees of and invitees to the facility;</text> </paragraph> <paragraph num="(2)"> <text>Effectively safe guard assets;</text> </paragraph> <paragraph num="(3)"> <text>Comply with all applicable laws and regulations including Commission-approved internal controls and operating procedures;</text> </paragraph> <paragraph num="(4)"> <text>Monitor the facility to ensure that the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility:</text> <paragraph num="(a)"> <text>An intoxicated individual;</text> </paragraph> <paragraph num="(b)"> <text>An individual who is mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(c)"> <text>An individual who is voluntarily excluded in accordance State Government Article, §9-1A-24(e), Annotated Code of Maryland; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Monitor the gaming floor to ensure that an individual under the age of 21 years is identified, prohibited from accessing the gaming floor in accordance with State Government Article, §9-1A-24(c), Annotated Code of Maryland and, if necessary, immediately removed from the gaming floor.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator’s proposed security department minimum staffing plan shall consider:</text> <paragraph num="(1)"> <text>Square footage and layout of the facility;</text> </paragraph> <paragraph num="(2)"> <text>Number and configuration of video lottery terminals and table games;</text> </paragraph> <paragraph num="(3)"> <text>Use of fixed and roving security posts;</text> </paragraph> <paragraph num="(4)"> <text>Activity level on a per-shift basis and identify it as slow, normal, or peak; and</text> </paragraph> <paragraph num="(5)"> <text>Department supervisory needs.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator may not implement a change or amendment in the security department minimum staffing plan approved by the Commission under §B of this regulation without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Internal Audit Department Standards."> <paragraph num="A."> <text>At least 60 days before video lottery terminal operations are set to commence, a facility operator shall submit to the Commission for review and approval internal audit department operating standards and procedures that:</text> <paragraph num="(1)"> <text>Meet the requirements of Regulation .10E(6)(b) of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Conform to this regulation; and</text> </paragraph> <paragraph num="(3)"> <text>Ensure that an internal audit is conducted in accordance with generally accepted auditing standards in the United States.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator's internal audit department operating procedures and standards shall, at a minimum, require the internal audit department to:</text> <paragraph num="(1)"> <text>Work independently of the departments of the facility that are subject to audit;</text> </paragraph> <paragraph num="(2)"> <text>Assess whether the facility's internal controls comply with applicable law and Commission directives;</text> </paragraph> <paragraph num="(3)"> <text>Test the facility's compliance with its internal controls;</text> </paragraph> <paragraph num="(4)"> <text>Immediately report a deficiency in, or noncompliance with, the facility's internal controls to:</text> <paragraph num="(a)"> <text>The audit committee;</text> </paragraph> <paragraph num="(b)"> <text>The chief executive officer;</text> </paragraph> <paragraph num="(c)"> <text>Management; and</text> </paragraph> <paragraph num="(d)"> <text>The Commission;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Recommend resolution for eliminating a deficiency in, or noncompliance with, the facilitys internal control system;</text> </paragraph> <paragraph num="(6)"> <text>Meet periodically with the audit committee or director of internal audit;</text> </paragraph> <paragraph num="(7)"> <text>Perform audits of:</text> <paragraph num="(a)"> <text>Unless an alternate risk assessment and audit plan is submitted in writing and approved in writing by the Commission, all departments of the facility that are designated under §§C and D of this regulation; and</text> </paragraph> <paragraph num="(b)"> <text>A department of the facility designated by the Commission;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Prepare an audit report for each audit conducted;</text> </paragraph> <paragraph num="(9)"> <text>Accurately document the audit process and results in an audit report that, at a minimum, shall include:</text> <paragraph num="(a)"> <text>Audit objectives;</text> </paragraph> <paragraph num="(b)"> <text>Audit procedures and scope;</text> </paragraph> <paragraph num="(c)"> <text>Findings and conclusions;</text> </paragraph> <paragraph num="(d)"> <text>A recommendation for addressing a deficiency in, or noncompliance with, the facility's internal controls;</text> </paragraph> <paragraph num="(e)"> <text>Resolution of all exceptions; and</text> </paragraph> <paragraph num="(f)"> <text>Management's response;</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Submit audit reports to the Commission on a schedule specified by the Commission; and</text> </paragraph> <paragraph num="(11)"> <text>Verify that:</text> <paragraph num="(a)"> <text>A deficiency or noncompliance revealed during an audit has been corrected; and</text> </paragraph> <paragraph num="(b)"> <text>An exception disclosed during an audit has been resolved.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The audit department shall audit at least semiannually the functions and operations of the facility's:</text> <paragraph num="(1)"> <text>Cashiers' cage;</text> </paragraph> <paragraph num="(2)"> <text>Main bank;</text> </paragraph> <paragraph num="(3)"> <text>Collection of cash storage boxes;</text> </paragraph> <paragraph num="(4)"> <text>Cash count;</text> </paragraph> <paragraph num="(5)"> <text>Revenue audit;</text> </paragraph> <paragraph num="(6)"> <text>Operations department;</text> </paragraph> <paragraph num="(7)"> <text>Key control; and</text> </paragraph> <paragraph num="(8)"> <text>Table game operations.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The audit department shall audit at least annually:</text> <paragraph num="(1)"> <text>Responsible gaming program;</text> </paragraph> <paragraph num="(2)"> <text>Security department;</text> </paragraph> <paragraph num="(3)"> <text>Currency transaction reporting;</text> </paragraph> <paragraph num="(4)"> <text>Suspicious activity reporting;</text> </paragraph> <paragraph num="(5)"> <text>Information technology controls;</text> </paragraph> <paragraph num="(6)"> <text>Surveillance department; and</text> </paragraph> <paragraph num="(7)"> <text>Player tracking system.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The internal audit department shall conduct an audit on an unannounced basis when possible.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Access to Central Monitor and Control System Equipment."> <paragraph num="A."> <text>Central monitor and control system equipment shall reside in an area physically segregated from other systems and equipment utilized by the facility operator which conforms to the requirements of COMAR 36.03.11.03.</text> </paragraph> <paragraph num="B."> <text>At least 10 days before video lottery terminal operations are to commence, the Commission shall issue to the facility operator a list of individuals that it has approved to have access to the central monitor and control system equipment under State Government Article, §9-1A-02(c)(5), Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>A facility operator may not implement a change or amendment in its approved access list without the prior written approval of the Commission.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing physical access to central monitor and control system equipment located in the facility.</text> </paragraph> <paragraph num="E."> <text>Central monitor and control system equipment may be accessed by:</text> <paragraph num="(1)"> <text>An individual on the list described under §B of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>A compliance agent of the Commission; and</text> </paragraph> <paragraph num="(3)"> <text>Commission staff authorized by the Director.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The facility operator’s internal controls shall require:</text> <paragraph num="(1)"> <text>All keys which access the segregated area where the central monitor and control system equipment resides to be maintained by representatives of the:</text> <paragraph num="(a)"> <text>Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Central monitor and control system operator; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An individual requiring access to the segregated area where the central monitor and control system equipment resides who is not included on the Commission-approved access list maintained under §B of this regulation to be:</text> <paragraph num="(a)"> <text>Authorized by the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>At all times, escorted by a Commission compliance agent, or Commission staff authorized by the Director; and</text> </paragraph> <paragraph num="(c)"> <text>Reported in the entry log maintained in accordance with §G of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>The Commission shall maintain an entry log for the segregated area where the central monitor and control system equipment resides which is:</text> <paragraph num="(1)"> <text>Kept inside the segregated area in a book with bound numbered pages that cannot be readily removed; and</text> </paragraph> <paragraph num="(2)"> <text>Utilized by an individual entering the segregated area to record:</text> <paragraph num="(a)"> <text>Date and time of entering;</text> </paragraph> <paragraph num="(b)"> <text>Entering individual’s name and department or affiliation;</text> </paragraph> <paragraph num="(c)"> <text>Reason for entering;</text> </paragraph> <paragraph num="(d)"> <text>Name of the individual authorizing the individual’s entry into the segregated area; and</text> </paragraph> <paragraph num="(e)"> <text>Date and time of exiting.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Cashiers’ Cage Design Standards."> <paragraph num="A."> <text>A facility operator shall have on, adjacent, or proximate to the gaming floor a physical structure known as a cashiers' cage to house the cashiers and to serve as the central location in the facility for:</text> <paragraph num="(1)"> <text>The custody of the cash, accounting records, and forms and documents required under this chapter to conduct video lottery and table game operations;</text> </paragraph> <paragraph num="(2)"> <text>The initial financial consolidation of all transactions pertaining to video lottery terminal and table game activity; and</text> </paragraph> <paragraph num="(3)"> <text>Other functions normally associated with the operation of a cashiers' cage.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A cashiers’ cage shall include the following design features:</text> <paragraph num="(1)"> <text>A manually triggered silent alarm system connected:</text> <paragraph num="(a)"> <text>Directly to the security department; or</text> </paragraph> <paragraph num="(b)"> <text>Directly, or through a documented communication protocol, to the monitor room of the surveillance department;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A double door entry and exit system that will not permit an individual to pass through the second door until the first door is securely locked, as follows:</text> <paragraph num="(a)"> <text>The first door leading from the gaming floor shall be controlled by the security department, the surveillance department, or a Commission-approved computerized access control system.</text> </paragraph> <paragraph num="(b)"> <text>The second door leading into the cashiers’ cage shall be controlled by the cashiers' cage or a Commission-approved computerized access control system.</text> </paragraph> <paragraph num="(c)"> <text>The double door entry and exit system shall be equipped with surveillance capability sufficient to allow monitoring of:</text> <paragraph num="(i)"> <text>All ingress and egress; and</text> </paragraph> <paragraph num="(ii)"> <text>The interior compartment; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Both doors of the double door entry and exit system shall be equipped with:</text> <paragraph num="(i)"> <text>Separate locks with a key or release mechanism which is different on each door; and</text> </paragraph> <paragraph num="(ii)"> <text>Locks which are operational in the event of a power failure; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any entrance to the cashiers’ cage that is not a double door entry and exit system shall be equipped as an alarmed emergency exit door.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility may have one or more satellite cages physically separate from the cashiers' cage which:</text> <paragraph num="(1)"> <text>May perform all of the functions of a cashiers' cage authorized by this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>Shall be equipped with an alarm system in compliance with §B(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall make readily available to the Commission:</text> <paragraph num="(1)"> <text>An access control matrix indicating which employee job descriptions are authorized to have access to the cashiers’ cage and any satellite cage; and</text> </paragraph> <paragraph num="(2)"> <text>A list of employees, with license number, who are authorized:</text> <paragraph num="(a)"> <text>To have access to the:</text> <paragraph num="(i)"> <text>Cashiers’ cage and any satellite cage;</text> </paragraph> <paragraph num="(ii)"> <text>Keys to the manual locks securing the double door entry and exit system; and</text> </paragraph> <paragraph num="(iii)"> <text>Release button on magnetic locks securing the double door entry and exit system;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>To activate or deactivate alarm systems for the cashiers' cage and any satellite cage; and</text> </paragraph> <paragraph num="(c)"> <text>To grant access to the cashiers’ cage and any satellite cage through the access control matrix or a computerized access control system.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Accounting Controls for a Cashiers’ Cage."> <paragraph num="A."> <text>A facility operator may only conduct transactions with individuals at its cashiers’ cage and any satellite cage during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall at all times maintain in its cashiers’ cage a reserve cash bankroll sufficient to pay all winning wagers.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall:</text> <paragraph num="(1)"> <text>Compute its reserve cash bankroll requirement based on a calendar year; and</text> </paragraph> <paragraph num="(2)"> <text>Submit its computation to the Commission:</text> <paragraph num="(a)"> <text>At least 30 days prior to the commencement of video lottery or table game operations; and</text> </paragraph> <paragraph num="(b)"> <text>On or before January 30 of each year subsequent to the year in which operations are commenced.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the segregation of the cashiers’ cage and the general conduct of cashiers’ cage transactions.</text> </paragraph> <paragraph num="E."> <text>A facility operator’s internal controls shall require:</text> <paragraph num="(1)"> <text>The cashiers' cage and any satellite cage to be physically segregated by personnel and function as follows:</text> <paragraph num="(a)"> <text>General cashiers shall be responsible for:</text> <paragraph num="(i)"> <text>An individual imprest inventory of cash;</text> </paragraph> <paragraph num="(ii)"> <text>Receipt and payout of cash, negotiable instruments, gaming tickets, and other documentation from and to players subject to the limitations imposed under this chapter;</text> </paragraph> <paragraph num="(iii)"> <text>Preparation of jackpot documents; and</text> </paragraph> <paragraph num="(iv)"> <text>Other functions designated by the facility operator which are not incompatible with the functions of a general cashier; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Main bank cashiers shall be responsible for:</text> <paragraph num="(i)"> <text>Receipt of cash, negotiable instruments, gaming tickets, jackpot, and other documentation from general cashiers in exchange for cash or documentation;</text> </paragraph> <paragraph num="(ii)"> <text>Replenishment of ticket redemption units and automated jackpot payout machines;</text> </paragraph> <paragraph num="(iii)"> <text>Receipt of unsecured cash and unsecured gaming tickets;</text> </paragraph> <paragraph num="(iv)"> <text>Receipt of cash and documentation from the count room;</text> </paragraph> <paragraph num="(v)"> <text>Preparation of the overall cashiers’ cage reconciliation;</text> </paragraph> <paragraph num="(vi)"> <text>Preparation of bank deposits;</text> </paragraph> <paragraph num="(vii)"> <text>Compliance with reserve cash bankroll requirements;</text> </paragraph> <paragraph num="(viii)"> <text>Receipt of original and redemption copies of counter checks;</text> </paragraph> <paragraph num="(ix)"> <text>Receipt from general cashiers of documentation supporting counter check substitution, consolidation, or redemption; and</text> </paragraph> <paragraph num="(x)"> <text>Other functions designated by the facility operator which are not incompatible with the functions of a main bank cashier;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Each general cashier and main bank cashier to prepare a cashiers’ count sheet on each shift:</text> <paragraph num="(a)"> <text>Recording the amount of the inventory in the window or bank;</text> </paragraph> <paragraph num="(b)"> <text>Reconciling the total closing inventory with the total opening inventory; and</text> </paragraph> <paragraph num="(c)"> <text>Including the signature of the:</text> <paragraph num="(i)"> <text>Outgoing general or main bank cashier; and</text> </paragraph> <paragraph num="(ii)"> <text>Incoming general or main bank cashier;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>At the end of the gaming day, the cashiers’ cage to forward a copy of each cashiers’ count sheet and related documentation to the accounting department for:</text> <paragraph num="(a)"> <text>Agreement of opening and closing inventories; and</text> </paragraph> <paragraph num="(b)"> <text>Comparison of forms or documents; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>No more than 48 hours after the discovery of an employee’s unresolved cage or count room overage or shortage of $500 or more, a facility operator shall submit a written report to the Commission describing:</text> <paragraph num="(a)"> <text>The reason for the overage or shortage and corrective action taken or adjustment made; or</text> </paragraph> <paragraph num="(b)"> <text>That a notice of investigation is ongoing and the written report will be submitted within the following 48 hours.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Checks Accepted from a Player."> <paragraph num="A."> <text>A facility operator may accept a negotiable instrument in the form of a check meeting the requirements of this regulation from a player to enable the player to take part in gaming.</text> </paragraph> <paragraph num="B."> <text>A facility operator may accept a check only during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02.</text> </paragraph> <paragraph num="C."> <text>A facility operator may accept a personal check that is:</text> <paragraph num="(1)"> <text>Made payable to the facility operator;</text> </paragraph> <paragraph num="(2)"> <text>Drawn on a bank, savings and loan association, or credit union subject to federal or State banking regulation;</text> </paragraph> <paragraph num="(3)"> <text>Drawn for a specific amount;</text> </paragraph> <paragraph num="(4)"> <text>Currently dated, not postdated; and</text> </paragraph> <paragraph num="(5)"> <text>Payable on demand.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Subject to the requirements of §§E and J of this regulation, a facility operator may accept a check issued by a:</text> <paragraph num="(1)"> <text>Facility operator; and</text> </paragraph> <paragraph num="(2)"> <text>Person that:</text> <paragraph num="(a)"> <text>Is an affiliate of the facility operator; and</text> </paragraph> <paragraph num="(b)"> <text>Holds a valid gaming license in another jurisdiction.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator shall only accept a check under §D of this regulation which has been issued to an individual as:</text> <paragraph num="(1)"> <text>Employment compensation; or</text> </paragraph> <paragraph num="(2)"> <text>A payout in connection with gaming activity.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A facility operator may not:</text> <paragraph num="(1)"> <text>Except as provided under §C of this regulation, accept a check that is payable to an individual, including:</text> <paragraph num="(a)"> <text>A Social Security check;</text> </paragraph> <paragraph num="(b)"> <text>An unemployment insurance check;</text> </paragraph> <paragraph num="(c)"> <text>A disability payment check; or</text> </paragraph> <paragraph num="(d)"> <text>A public assistance check; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except for a check issued under §§E, J, and K of this regulation, accept from a player under this regulation a check or multiple checks which in the aggregate exceed $50,000 during a gaming day.</text> </paragraph> </paragraph> <paragraph num="G."> <text>For a personal check equaling or exceeding $5,000, a facility operator shall confirm the availability of funds by:</text> <paragraph num="(1)"> <text>Directly contacting the bank, savings and loan association, or credit union upon which the check is drawn;</text> </paragraph> <paragraph num="(2)"> <text>Obtaining an authorization and guarantee of the check from a check verification and warranty service licensed as a contractor under COMAR 36.03.02.14; or</text> </paragraph> <paragraph num="(3)"> <text>Alternate procedures addressing acceptance and verification of personal checks submitted in writing and approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter, procedures addressing the acceptance and verification of checks meeting the requirements of this regulation.</text> </paragraph> <paragraph num="I."> <text>A facility operator's internal controls shall require a check accepted from a player by a general cashier to be:</text> <paragraph num="(1)"> <text>If a personal check other than an electronic check, restrictively endorsed for deposit only to the bank account designated for this purpose by the facility operator and:</text> <paragraph num="(a)"> <text>Initialed by the accepting general cashier;</text> </paragraph> <paragraph num="(b)"> <text>Date and time stamped;</text> </paragraph> <paragraph num="(c)"> <text>Documented on the face of the check the number on the player's government-issued photographic identification; and</text> </paragraph> <paragraph num="(d)"> <text>If a personal check equaling or exceeding $5,000, confirmed for availability of funds under §G of this regulation;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Verified for signature authenticity by a general cashier who shall:</text> <paragraph num="(a)"> <text>Obtain from the player one form of identification that is a valid, unexpired government-issued photographic identification; and</text> </paragraph> <paragraph num="(b)"> <text>Satisfactorily compare the:</text> <paragraph num="(i)"> <text>Signature of the player on the personal check or endorsing the payroll or payout check with the signature on an identification credential; and</text> </paragraph> <paragraph num="(ii)"> <text>Player's physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the player;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>If presented by a player as a payroll or payout check under §E of this regulation, confirmed to have been issued as employment compensation or as a payout in connection with gaming activity; and</text> </paragraph> <paragraph num="(4)"> <text>Immediately exchanged for:</text> <paragraph num="(a)"> <text>Cash;</text> </paragraph> <paragraph num="(b)"> <text>If the facility operator has the capability, a gaming ticket;</text> </paragraph> <paragraph num="(c)"> <text>A chip or plaque; or</text> </paragraph> <paragraph num="(d)"> <text>A customer deposit account in accordance with this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>A facility operator that is a designated Agency customer resource center may accept an Agency check for Lottery prize winnings for up to $25,000 under COMAR 36.02.06.01.</text> </paragraph> <paragraph num="K."> <text>On a single gaming day, a facility operator may accept a check or multiple checks which:</text> <paragraph num="(1)"> <text>In the aggregate do not exceed $250,000; and</text> </paragraph> <paragraph num="(2)"> <text>Were issued to an individual as a payout in connection with gaming activity by:</text> <paragraph num="(a)"> <text>A facility operator; or</text> </paragraph> <paragraph num="(b)"> <text>A person that:</text> <paragraph num="(i)"> <text>Is an affiliate of a facility operator; and</text> </paragraph> <paragraph num="(ii)"> <text>Holds a valid gaming license in another jurisdiction. A. A facility operator may accept a negotiable instrument in the form of a check meeting the requirements of this regulation from a player to enable the player to take part in gaming.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator may accept a check only during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02.</text> </paragraph> <paragraph num="C."> <text>A facility operator may accept a personal check that is:</text> <paragraph num="(1)"> <text>Made payable to the facility operator;</text> </paragraph> <paragraph num="(2)"> <text>Drawn on a bank, savings and loan association, or credit union subject to federal or State banking regulation;</text> </paragraph> <paragraph num="(3)"> <text>Drawn for a specific amount;</text> </paragraph> <paragraph num="(4)"> <text>Currently dated, not postdated; and</text> </paragraph> <paragraph num="(5)"> <text>Payable on demand.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Subject to the requirements of §§E and J of this regulation, a facility operator may accept a check issued by a:</text> <paragraph num="(1)"> <text>Facility operator; and</text> </paragraph> <paragraph num="(2)"> <text>Person that:</text> <paragraph num="(a)"> <text>Is an affiliate of the facility operator; and</text> </paragraph> <paragraph num="(b)"> <text>Holds a valid gaming license in another jurisdiction.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator shall only accept a check under §D of this regulation which has been issued to an individual as:</text> <paragraph num="(1)"> <text>Employment compensation; or</text> </paragraph> <paragraph num="(2)"> <text>A payout in connection with gaming activity.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A facility operator may not:</text> <paragraph num="(1)"> <text>Except as provided under §C of this regulation, accept a check that is payable to an individual, including:</text> <paragraph num="(a)"> <text>A Social Security check;</text> </paragraph> <paragraph num="(b)"> <text>An unemployment insurance check;</text> </paragraph> <paragraph num="(c)"> <text>A disability payment check; or</text> </paragraph> <paragraph num="(d)"> <text>A public assistance check; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except for a check issued under §§E, J, and K of this regulation, accept from a player under this regulation a check or multiple checks which in the aggregate exceed $50,000 during a gaming day.</text> </paragraph> </paragraph> <paragraph num="G."> <text>For a personal check equaling or exceeding $5,000, a facility operator shall confirm the availability of funds by:</text> <paragraph num="(1)"> <text>Directly contacting the bank, savings and loan association, or credit union upon which the check is drawn;</text> </paragraph> <paragraph num="(2)"> <text>Obtaining an authorization and guarantee of the check from a check verification and warranty service licensed as a contractor under COMAR 36.03.02.14; or</text> </paragraph> <paragraph num="(3)"> <text>Alternate procedures addressing acceptance and verification of personal checks submitted in writing and approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter, procedures addressing the acceptance and verification of checks meeting the requirements of this regulation.</text> </paragraph> <paragraph num="I."> <text>A facility operator's internal controls shall require a check accepted from a player by a general cashier to be:</text> <paragraph num="(1)"> <text>If a personal check other than an electronic check, restrictively endorsed for deposit only to the bank account designated for this purpose by the facility operator and:</text> <paragraph num="(a)"> <text>Initialed by the accepting general cashier;</text> </paragraph> <paragraph num="(b)"> <text>Date and time stamped;</text> </paragraph> <paragraph num="(c)"> <text>Documented on the face of the check the number on the player's government-issued photographic identification; and</text> </paragraph> <paragraph num="(d)"> <text>If a personal check equaling or exceeding $5,000, confirmed for availability of funds under §G of this regulation;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Verified for signature authenticity by a general cashier who shall:</text> <paragraph num="(a)"> <text>Obtain from the player one form of identification that is a valid, unexpired government-issued photographic identification; and</text> </paragraph> <paragraph num="(b)"> <text>Satisfactorily compare the:</text> <paragraph num="(i)"> <text>Signature of the player on the personal check or endorsing the payroll or payout check with the signature on an identification credential; and</text> </paragraph> <paragraph num="(ii)"> <text>Player's physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the player;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>If presented by a player as a payroll or payout check under §E of this regulation, confirmed to have been issued as employment compensation or as a payout in connection with gaming activity; and</text> </paragraph> <paragraph num="(4)"> <text>Immediately exchanged for:</text> <paragraph num="(a)"> <text>Cash;</text> </paragraph> <paragraph num="(b)"> <text>If the facility operator has the capability, a gaming ticket;</text> </paragraph> <paragraph num="(c)"> <text>A chip or plaque; or</text> </paragraph> <paragraph num="(d)"> <text>A customer deposit account in accordance with this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>A facility operator that is a designated Agency customer resource center may accept an Agency check for Lottery prize winnings for up to $25,000 under COMAR 36.02.06.01.</text> </paragraph> <paragraph num="K."> <text>On a single gaming day, a facility operator may accept a check or multiple checks which:</text> <paragraph num="(1)"> <text>In the aggregate do not exceed $500,000; and</text> </paragraph> <paragraph num="(2)"> <text>Were issued to an individual as a payout in connection with gaming activity by:</text> <paragraph num="(a)"> <text>A facility operator; or</text> </paragraph> <paragraph num="(b)"> <text>A person that:</text> <paragraph num="(i)"> <text>Is an affiliate of a facility operator; and</text> </paragraph> <paragraph num="(ii)"> <text>Holds a valid gaming license in another jurisdiction.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="Wire Transfers."> <paragraph num="A."> <text>A facility operator may accept a negotiable instrument in the form of a wire transfer or ACH transfer from a player to enable the player to take part in gaming or to pay an outstanding debt to a facility operator.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall record in its cashiers’ cage accountability any funds accepted by wire transfer or ACH transfer with no documented business purpose other than to enable a player to take part in gaming within 24 hours of receipt of the wire transfer.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the acceptance, verification, and sending of wire transfers or ACH transfers meeting the requirements of this regulation.</text> </paragraph> <paragraph num="D."> <text>A facility operator’s internal controls shall:</text> <paragraph num="(1)"> <text>Require preparation of a cashiers’ cage wire transfer or ACH transfer log to record the following information pertaining to a wire transfer or ACH transfer accepted by a facility operator on behalf of a player:</text> <paragraph num="(a)"> <text>A sequential number assigned by the facility operator to the wire transfer or ACH transfer accepted;</text> </paragraph> <paragraph num="(b)"> <text>Date and time notice of the wire transfer or ACH transfer was received;</text> </paragraph> <paragraph num="(c)"> <text>Name of the financial institution to which the funds were sent;</text> </paragraph> <paragraph num="(d)"> <text>Amount transferred;</text> </paragraph> <paragraph num="(e)"> <text>Name of the player for whose benefit the funds were accepted;</text> </paragraph> <paragraph num="(f)"> <text>The name of the financial institution from which the funds were transferred;</text> </paragraph> <paragraph num="(g)"> <text>The method by which the facility operator was notified of the receipt of the wire transfer or ACH transfer;</text> </paragraph> <paragraph num="(h)"> <text>If noticed by telephone, the name and title of the individual providing notice;</text> </paragraph> <paragraph num="(i)"> <text>The signature of the cashiers' cage employee receiving and recording the information required by this section; and</text> </paragraph> <paragraph num="(j)"> <text>If applicable, a notation that the wire transfer or ACH transfer has been returned under §E of this regulation;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Require that a cashiers’ cage supervisor other than the cashiers’ cage employee who initially documented acceptance of the wire transfer or ACH transfer:</text> <paragraph num="(a)"> <text>Independently confirm:</text> <paragraph num="(i)"> <text>Date, time, and method by which the facility operator was notified of the wire transfer or ACH transfer; and</text> </paragraph> <paragraph num="(ii)"> <text>If noticed by telephone, the name and title of the individual providing notice;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Record the date and time of confirmation in the wire transfer or ACH transfer log; and</text> </paragraph> <paragraph num="(c)"> <text>Sign the wire transfer or ACH transfer log as completing the confirmation process;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Document the procedures used to:</text> <paragraph num="(a)"> <text>Establish, verify, and document the identity of a player sending a wire transfer or ACH transfer;</text> </paragraph> <paragraph num="(b)"> <text>Make the wire transfer or ACH transfer proceeds available to a player at the cashiers’ cage; and</text> </paragraph> <paragraph num="(c)"> <text>Adjust the cashiers' cage accountability;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Require preparation of a cashiers’ cage wire transfer or ACH transfer log to record the following information pertaining to a wire transfer or ACH transfer sent by a facility operator on behalf of a player:</text> <paragraph num="(a)"> <text>A sequential number assigned by the facility operator to the wire transfer or ACH transfer sent;</text> </paragraph> <paragraph num="(b)"> <text>Name of the player;</text> </paragraph> <paragraph num="(c)"> <text>Date of the transaction;</text> </paragraph> <paragraph num="(d)"> <text>Amount wired;</text> </paragraph> <paragraph num="(e)"> <text>Source of funds;</text> </paragraph> <paragraph num="(f)"> <text>The name and address of the financial institution to which the funds were wired;</text> </paragraph> <paragraph num="(g)"> <text>Account number to which the funds are credited;</text> </paragraph> <paragraph num="(h)"> <text>If the request to send a wire transfer or ACH transfer is made in person at the cashiers’ cage, the signature of the player;</text> </paragraph> <paragraph num="(i)"> <text>If the request to send a wire transfer or ACH transfer is not made in person at the cashiers’ cage, documentation supporting the receipt of a request by the facility operator to send a wire transfer or ACH transfer on behalf of a player;</text> </paragraph> <paragraph num="(j)"> <text>The signature of the cashiers' cage employee receiving and recording the information required by this regulation; and</text> </paragraph> <paragraph num="(k)"> <text>The signature of the cashiers’ cage supervisor or accounting department supervisor authorizing the wire transfer or ACH transfer; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Document the procedures used to:</text> <paragraph num="(a)"> <text>Establish, verify, and document the identity of a player requesting that a wire transfer or ACH transfer be sent;</text> </paragraph> <paragraph num="(b)"> <text>Send the wire transfer or ACH transfer; and</text> </paragraph> <paragraph num="(c)"> <text>Adjust the cashiers' cage accountability.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator shall take immediate action to return to a player by wire transfer or ACH transfer funds initially accepted by wire transfer or ACH transfer under the following circumstances:</text> <paragraph num="(1)"> <text>The wired funds received by the facility operator have no documented business purpose other than to enable a player to take part in gaming;</text> </paragraph> <paragraph num="(2)"> <text>All or a substantial portion of the wired funds remain in the facility operator's cashiers' cage accountability more than 14 days following transfer to that accountability; and</text> </paragraph> <paragraph num="(3)"> <text>The player has engaged in minimal or no video lottery or table game play since receipt of the wire transfer or ACH transfer.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A wire transfer or ACH transfer returned in accordance with §E of this regulation shall be sent to the same individual, financial institution, and account number from which the funds were debited.</text> </paragraph> <paragraph num="G."> <text>Return of a wire transfer or ACH transfer shall be recorded in the wire transfer or ACH transfer log maintained under §D of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".22" heading="Cash Equivalents."> <paragraph num="A."> <text>A facility operator may accept a negotiable instrument in the form of a cash equivalent from a player to enable the player to take part in gaming.</text> </paragraph> <paragraph num="B."> <text>A facility operator may accept a cash equivalent only during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the acceptance and verification of cash equivalents meeting the requirements of this chapter.</text> </paragraph> <paragraph num="D."> <text>A facility operator’s internal controls shall:</text> <paragraph num="(1)"> <text>Enumerate the type of cash equivalents complying with this chapter to be accepted;</text> </paragraph> <paragraph num="(2)"> <text>Detail the specific verification procedures required by each issuer;</text> </paragraph> <paragraph num="(3)"> <text>Require that a general cashier:</text> <paragraph num="(a)"> <text>Perform the specific verification procedures required by each issuer;</text> </paragraph> <paragraph num="(b)"> <text>Prepare and maintain documentation evidencing the verification of a cash equivalent accepted; and</text> </paragraph> <paragraph num="(c)"> <text>Examine a cash equivalent for counterfeiting, forgery, or alteration;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Detail the criteria for cashiers' cage supervisor involvement in the verification process; and</text> </paragraph> <paragraph num="(5)"> <text>Include procedures for verifying the authenticity of a player’s signature on a cash equivalent in conformance with the signature authentication procedures in Regulation .20 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".23" heading="Customer Deposits."> <paragraph num="A."> <text>A facility operator may establish a customer deposit account for a player to enable the player to take part in gaming.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall perform all procedures required by this chapter before depositing funds accepted by means of check, wire transfer, cash equivalent, or other negotiable instrument into a customer deposit account.</text> </paragraph> <paragraph num="C."> <text>A facility operator may accept a customer deposit only during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the acceptance of customer deposits meeting the requirements of this regulation.</text> </paragraph> <paragraph num="E."> <text>A facility operator’s internal controls shall:</text> <paragraph num="(1)"> <text>Require acceptance of customer deposits at:</text> <paragraph num="(a)"> <text>The cashiers’ cage; or</text> </paragraph> <paragraph num="(b)"> <text>An off-site customer service location;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Require preparation of a receipt documenting:</text> <paragraph num="(a)"> <text>Amount deposited;</text> </paragraph> <paragraph num="(b)"> <text>Date of the deposit; and</text> </paragraph> <paragraph num="(c)"> <text>The signature of the general cashier accepting the customer deposit;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Provide for full or partial withdrawal of a customer deposit:</text> <paragraph num="(a)"> <text>By a player at the cashiers’ cage; or</text> </paragraph> <paragraph num="(b)"> <text>Upon receipt by the facility operator of a written request for withdrawal for which validity has been established; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Include procedures for documenting acceptance and withdrawal of customer deposits including a verification of the authenticity of a player’s signature on a customer deposit withdrawal document in conformance with the signature authentication procedures in Regulation .20 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".24" heading="Credit Authorization."> <paragraph num="A."> <text>For the purposes of this regulation, “derogatory information” means any information associated with a credit account indicating that the account is partially or completely uncollectible, has had checks returned unpaid, or has required settlement, lien, judgment, or other collection efforts by a gaming operator.</text> </paragraph> <paragraph num="B."> <text>A facility operator may not extend a line of credit to a player to enable the player to take part in gaming which exceeds the player’s authorized credit limit.</text> </paragraph> <paragraph num="C."> <text>A facility operator may extend credit to a player if a:</text> <paragraph num="(1)"> <text>Player submits a credit application in writing in accordance with this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Facility operator complies with the:</text> <paragraph num="(a)"> <text>Credit application verification requirements of Regulation .25 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Credit authorization and credit file documentation requirements of this regulation;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Credit is issued:</text> <paragraph num="(a)"> <text>By acceptance of a negotiable instrument in the form of a counter check under Regulation .26 or .27 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>During the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Player’s outstanding counter check balance does not at any time exceed the player’s authorized credit limit.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall accept a credit application submitted by a player:</text> <paragraph num="(1)"> <text>During the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02;</text> </paragraph> <paragraph num="(2)"> <text>By mail; and</text> </paragraph> <paragraph num="(3)"> <text>By electronic submission.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator shall create and maintain a credit file for a player applying for an extension of credit or authorized counter check privileges.</text> </paragraph> <paragraph num="F."> <text>A credit file shall:</text> <paragraph num="(1)"> <text>Be prepared, either manually or by computer, by a general cashier or credit department representative with no incompatible functions including the ability to authorize credit or approve a change in a credit limit;</text> </paragraph> <paragraph num="(2)"> <text>Contain the credit application submitted by the player documenting, at a minimum, the following:</text> <paragraph num="(a)"> <text>Name;</text> </paragraph> <paragraph num="(b)"> <text>Residential address;</text> </paragraph> <paragraph num="(c)"> <text>Personal telephone number;</text> </paragraph> <paragraph num="(d)"> <text>Personal checking account information including:</text> <paragraph num="(i)"> <text>Name and routing number of a bank, savings and loan or credit union subject to federal or State banking regulation on which a counter check is to be drawn;</text> </paragraph> <paragraph num="(ii)"> <text>Account number; and</text> </paragraph> <paragraph num="(iii)"> <text>A representation that the player is individually authorized to draw on the account;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Credit limit requested by the player;</text> </paragraph> <paragraph num="(f)"> <text>Good faith estimate of:</text> <paragraph num="(i)"> <text>Outstanding indebtedness including gaming related credit limits and outstanding balances; and</text> </paragraph> <paragraph num="(ii)"> <text>The amount and source of income and assets that support the requested credit limit; and</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>Signature of the player:</text> <paragraph num="(i)"> <text>Acknowledging the request for an extension of credit and counter check privileges;</text> </paragraph> <paragraph num="(ii)"> <text>Certifying that all information provided on the application is true and accurate;</text> </paragraph> <paragraph num="(iii)"> <text>Authorizing the facility operator to conduct the due diligence it deems appropriate prior to the credit decision; and</text> </paragraph> <paragraph num="(iv)"> <text>Acknowledging that the player may be subject to civil or criminal liability if any material information provided is willfully false; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Document, in accordance with §J of this regulation, the credit limit initially authorized by the facility operator for a player and any change in that credit limit.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A facility operator may:</text> <paragraph num="(1)"> <text>Consider a checking account of a sole proprietorship owned by a player to be a personal checking account; and</text> </paragraph> <paragraph num="(2)"> <text>Not consider a partnership or corporate checking account to be a personal checking account even if a player is individually authorized to draw on the account.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Prior to authorizing an extension of credit, the facility operator shall verify the information on the credit application submitted by the player in accordance with Regulation .25 of this chapter.</text> </paragraph> <paragraph num="I."> <text>A facility operator shall restrict authority to extend credit or to approve a change in a credit limit to the following employees:</text> <paragraph num="(1)"> <text>If the facility operator’s table of organization includes a separate credit department, cage credit director, credit manager, cage/credit shift manager, or credit executive who has no involvement with the verifications required under Regulation .25 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>A principal employee or a credit manager who has no involvement in the verifications required under Regulation .25 of this chapter; and</text> </paragraph> <paragraph num="(3)"> <text>A credit committee composed of principal employees:</text> <paragraph num="(a)"> <text>Which may authorize credit as a group; and</text> </paragraph> <paragraph num="(b)"> <text>Whose members may not act individually to authorize credit unless an individual meets the requirements of §I(1) or (2) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>A facility operator shall record in a player’s credit file the initial decision to authorize an extension of credit including:</text> <paragraph num="(1)"> <text>The credit limit assigned to the player;</text> </paragraph> <paragraph num="(2)"> <text>Date and time the credit limit was activated;</text> </paragraph> <paragraph num="(3)"> <text>Information used to support the extension of credit including the source of the information, if such information is not otherwise recorded in the credit file under Regulation .25 of this chapter;</text> </paragraph> <paragraph num="(4)"> <text>If applicable, a brief explanation as to why:</text> <paragraph num="(a)"> <text>The credit limit authorized deviates from the credit limit requested by the player in the credit application; and</text> </paragraph> <paragraph num="(b)"> <text>Credit was authorized when the verification process conducted under Regulation .25 of this chapter disclosed derogatory information; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The signature or authorization code of the employee authorizing the extension of credit.</text> </paragraph> </paragraph> <paragraph num="K."> <text>A facility operator shall require a request for a change in credit limit to be in writing and include:</text> <paragraph num="(1)"> <text>Date and time of the request;</text> </paragraph> <paragraph num="(2)"> <text>New limit requested by the player; and</text> </paragraph> <paragraph num="(3)"> <text>Signature of the player.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Prior to approving a change in a player’s authorized credit limit, a facility operator shall:</text> <paragraph num="(1)"> <text>Verify the player’s current gaming related credit limits and outstanding balances in accordance with Regulation .25 of this chapter unless the facility operator verified that same information earlier in the same gaming day;</text> </paragraph> <paragraph num="(2)"> <text>If a player’s increased credit limit will exceed $2,500, verify the player's outstanding indebtedness in accordance with Regulation .25 of this chapter unless the facility operator verified the player’s outstanding indebtedness in the previous 12 months;</text> </paragraph> <paragraph num="(3)"> <text>Verify the player’s personal checking account information in accordance with Regulation .25 of this chapter unless the facility operator verified the player’s checking account information in the previous 24 months;</text> </paragraph> <paragraph num="(4)"> <text>Review player rating system data regarding the amount and frequency of play subsequent to the initial extension of credit; and</text> </paragraph> <paragraph num="(5)"> <text>Document in the player’s credit file:</text> <paragraph num="(a)"> <text>If approved, the change in credit limit;</text> </paragraph> <paragraph num="(b)"> <text>If disapproved, the reason the credit limit was not changed;</text> </paragraph> <paragraph num="(c)"> <text>The verifications required by this regulation;</text> </paragraph> <paragraph num="(d)"> <text>The player’s rating in the player rating system on the date the change in credit limit was authorized; and</text> </paragraph> <paragraph num="(e)"> <text>The signature or authorization code of the employee responsible for the assessment of the request for a change in credit limit.</text> </paragraph> </paragraph> </paragraph> <paragraph num="M."> <text>A facility operator may approve a “this trip only” increase in a credit limit without performing the verifications required by §L of this regulation if:</text> <paragraph num="(1)"> <text>The increase:</text> <paragraph num="(a)"> <text>Is in effect for a single trip to the facility consisting of consecutive gaming days; and</text> </paragraph> <paragraph num="(b)"> <text>Does not exceed 25 percent of the currently authorized credit limit; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The increase is documented in the player’s credit file including the signature or authorization code of the employee approving the “this trip only” credit limit increase.</text> </paragraph> </paragraph> <paragraph num="N."> <text>A facility operator may approve a “this trip only” increase in a credit limit after performing the verifications required by §L of this regulation if:</text> <paragraph num="(1)"> <text>The increase:</text> <paragraph num="(a)"> <text>Is in effect for a single trip to the facility consisting of consecutive gaming days; and</text> </paragraph> <paragraph num="(b)"> <text>Exceeds 25 percent of the currently authorized credit limit; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The increase is documented in the player’s credit file including the signature or authorization code of the employee approving the “this trip only” credit limit increase.</text> </paragraph> </paragraph> <paragraph num="O."> <text>A facility operator may not accept a counter check from a player before the decision to authorize an extension of credit, approve a change in a credit limit, or approve a “this trip only” credit limit increase is recorded in the credit file, including the signature or authorization code of the employee authorizing the extension of credit or credit limit increase.</text> </paragraph> <paragraph num="P."> <text>A facility operator shall suspend the counter check privileges of a player:</text> <paragraph num="(1)"> <text>On receipt of:</text> <paragraph num="(a)"> <text>Derogatory information;</text> </paragraph> <paragraph num="(b)"> <text>Information that indicates that a player’s financial position has materially deteriorated; or</text> </paragraph> <paragraph num="(c)"> <text>A returned check; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Who has been inactive at the facility’s video lottery terminals and table games for more than 24 months.</text> </paragraph> </paragraph> <paragraph num="Q."> <text>A facility operator may reinstate the counter check privileges of a player suspended under §P of this regulation after:</text> <paragraph num="(1)"> <text>Completion of the verification requirements of Regulation .25 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Receipt as a result of those verifications of information supporting the authorized credit limit; and</text> </paragraph> <paragraph num="(3)"> <text>If applicable, payment in full of a returned check.</text> </paragraph> </paragraph> <paragraph num="R."> <text>If derogatory information develops pertaining to a player’s account at a facility, a facility operator shall report the derogatory information to the same casino credit bureau it utilizes to verify gaming related credit limits and outstanding balances under Regulation .25 of this chapter within 24 hours of development of the derogatory information.</text> </paragraph> <paragraph num="S."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the issuance of credit including:</text> <paragraph num="(1)"> <text>Identifying the employee positions authorized to extend credit or approve a change in a credit limit; and</text> </paragraph> <paragraph num="(2)"> <text>Creation and maintenance of the credit file.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".25" heading="Verification of Credit Application Information."> <paragraph num="A."> <text>Prior to authorizing an extension of credit and counter check privileges under Regulation .24 of this chapter, a facility operator shall verify the information on the credit application submitted by the player in accordance with this regulation.</text> </paragraph> <paragraph num="B."> <text>The verification of credit application information required under this regulation:</text> <paragraph num="(1)"> <text>Shall be conducted by a general cashier or credit department representative with no incompatible functions including the ability to authorize credit or approve a change in a credit limit;</text> </paragraph> <paragraph num="(2)"> <text>Shall be documented in the player’s credit file by recording the following:</text> <paragraph num="(a)"> <text>Source of the verification;</text> </paragraph> <paragraph num="(b)"> <text>Date and time;</text> </paragraph> <paragraph num="(c)"> <text>Method of verification; and</text> </paragraph> <paragraph num="(d)"> <text>Signature of the verifying general cashier or credit department representative; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>May be performed telephonically if the facility operator:</text> <paragraph num="(a)"> <text>Requests documentation confirming the information verified telephonically;</text> </paragraph> <paragraph num="(b)"> <text>Documents the request for confirming information in the player’s credit file; and</text> </paragraph> <paragraph num="(c)"> <text>Maintains all confirming documentation received in the player’s credit file.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>If a player’s credit limit will exceed $2,500, the facility operator shall verify the player’s residential address with:</text> <paragraph num="(1)"> <text>A consumer credit bureau;</text> </paragraph> <paragraph num="(2)"> <text>The player’s bank; or</text> </paragraph> <paragraph num="(3)"> <text>An alternative source which may not include examination of additional identification credentials or other documentation presented by the player at the facility.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The facility operator shall:</text> <paragraph num="(1)"> <text>Verify the player’s current gaming related credit limits and outstanding balances with:</text> <paragraph num="(a)"> <text>A casino credit bureau; or</text> </paragraph> <paragraph num="(b)"> <text>Each gaming operator with whom the player has an outstanding limit;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Document the player’s current gaming related credit limits and outstanding balances in the credit file by recording for each gaming related credit limit:</text> <paragraph num="(a)"> <text>The date the player’s credit account was established;</text> </paragraph> <paragraph num="(b)"> <text>Amount of the current authorized credit limit;</text> </paragraph> <paragraph num="(c)"> <text>Current balance; and</text> </paragraph> <paragraph num="(d)"> <text>Any derogatory information noted in the player’s account; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If applicable, document in the credit file that no gaming related credit limit or outstanding balance information is available on the player.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator shall:</text> <paragraph num="(1)"> <text>Verify the player’s outstanding indebtedness with a:</text> <paragraph num="(a)"> <text>Consumer credit bureau; or</text> </paragraph> <paragraph num="(b)"> <text>Casino credit bureau; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Document the player’s outstanding indebtedness in the credit file by recording:</text> <paragraph num="(a)"> <text>If available, the current balance of each debt obligation; and</text> </paragraph> <paragraph num="(b)"> <text>Any derogatory information noted.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>A facility operator shall:</text> <paragraph num="(1)"> <text>Verify the player’s personal checking account information with:</text> <paragraph num="(a)"> <text>The player’s bank; or</text> </paragraph> <paragraph num="(b)"> <text>A bank verification service; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Document the player’s personal checking account information by recording in the credit file:</text> <paragraph num="(a)"> <text>Confirmation that the account is a personal account on which the player may draw individually;</text> </paragraph> <paragraph num="(b)"> <text>Account number;</text> </paragraph> <paragraph num="(c)"> <text>Date the account was opened;</text> </paragraph> <paragraph num="(d)"> <text>If available, average balance of the account for the last 12 months;</text> </paragraph> <paragraph num="(e)"> <text>Balance in the account; and</text> </paragraph> <paragraph num="(f)"> <text>Name and title of the person supplying the information.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>A facility operator shall verify that the player is not an individual who is:</text> <paragraph num="(1)"> <text>Under 21 years of age;</text> </paragraph> <paragraph num="(2)"> <text>Voluntarily suspended from counter check privileges under Regulation .32 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(4)"> <text>Voluntarily excluded in accordance State Government Article, §9-1A-24(e), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures:</text> <paragraph num="(1)"> <text>Identifying those employees authorized to conduct the verifications required under this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>Addressing the verification process required under this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".26" heading="Counter Check Issuance at the Cashiers’ Cage."> <paragraph num="A."> <text>Subject to the requirements of this chapter, a facility operator may accept a negotiable instrument in the form of a counter check from a player at the cashiers’ cage to enable the player to take part in gaming.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the issuance of a counter check at the cashiers’ cage.</text> </paragraph> <paragraph num="C."> <text>A facility operator’s internal controls shall include:</text> <paragraph num="(1)"> <text>The use of a three-part computer-generated counter check that:</text> <paragraph num="(a)"> <text>Consists of an original, issuance, and accounting copy;</text> </paragraph> <paragraph num="(b)"> <text>Is initiated on receipt by a general cashier of a request for counter check document; and</text> </paragraph> <paragraph num="(c)"> <text>Is serially numbered and issued;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Procedures and controls addressing the identification of a player which include:</text> <paragraph num="(a)"> <text>A requirement that a one-part request for counter check document be prepared which includes:</text> <paragraph num="(i)"> <text>Amount requested;</text> </paragraph> <paragraph num="(ii)"> <text>If a facility operator has the capability of offering a gaming ticket as an alternative to cash, an indication as to the desired form of payment; and</text> </paragraph> <paragraph num="(iii)"> <text>Signature of the player;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A requirement that a general cashier obtain from the player a valid form of unexpired government-issued photographic identification;</text> </paragraph> <paragraph num="(c)"> <text>A requirement that a general cashier satisfactorily compare the:</text> <paragraph num="(i)"> <text>Signature of the player on the counter check request document with the signature on the identification credential; and</text> </paragraph> <paragraph num="(ii)"> <text>Player’s physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the player;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>A requirement that a general cashier record on the counter check request document the:</text> <paragraph num="(i)"> <text>Number on the player’s government-issued photographic identification; and</text> </paragraph> <paragraph num="(ii)"> <text>Signature of the general cashier;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>An option for a general cashier who has on that same shift previously verified the identity of a player by credential review in accordance with §C(2)(b) of this regulation to satisfy the requirements of this regulation by recording on the counter check request document:</text> <paragraph num="(i)"> <text>The series number of the counter check for which the identity of the player was established by credential review; and</text> </paragraph> <paragraph num="(ii)"> <text>Signature of the general cashier;</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>An option for a facility operator who has created a signature file on a player prior to the completion by the player of a request for counter check document to satisfy the requirements of this regulation by having the general cashier:</text> <paragraph num="(i)"> <text>Confirm that the player’s signature on the counter check request document matches the signature in the signature file; and</text> </paragraph> <paragraph num="(ii)"> <text>Sign the counter check request document; and</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>A requirement that a credential review in accordance with §C(2)(b) and (c) of this regulation is a prerequisite to creation of a player signature file;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A requirement that prior to issuing a counter check a general cashier confirm with a check bank cashier or through the video lottery system that the amount requested does not exceed the player’s credit limit;</text> </paragraph> <paragraph num="(4)"> <text>A requirement that all copies of a computer-generated counter check include the following information:</text> <paragraph num="(a)"> <text>Name of the player;</text> </paragraph> <paragraph num="(b)"> <text>Name of the bank, savings and loan, or credit union on which the counter check is to be drawn;</text> </paragraph> <paragraph num="(c)"> <text>Date and time;</text> </paragraph> <paragraph num="(d)"> <text>Amount of the counter check;</text> </paragraph> <paragraph num="(e)"> <text>Location of preparation of the counter check;</text> </paragraph> <paragraph num="(f)"> <text>Signature of a cashiers’ cage supervisor; and</text> </paragraph> <paragraph num="(g)"> <text>Signature or identification code of the preparer of the counter check;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A requirement that the back of the original copy of the counter check contain a restrictive endorsement “for deposit only” to the facility operator’s designated bank account;</text> </paragraph> <paragraph num="(6)"> <text>Procedures and controls over the counter check issuance process which require:</text> <paragraph num="(a)"> <text>A cashiers’ cage supervisor to sign all copies of the counter check after confirming that the counter check was prepared for the amount the player recorded on the counter check request document;</text> </paragraph> <paragraph num="(b)"> <text>A player to sign all copies of the counter check in the presence of the same general cashier who verified the player’s identification and prepared the counter check;</text> </paragraph> <paragraph num="(c)"> <text>A general cashier to immediately exchange the counter check for:</text> <paragraph num="(i)"> <text>Cash;</text> </paragraph> <paragraph num="(ii)"> <text>If a facility operator has the capability, a gaming ticket; or</text> </paragraph> <paragraph num="(iii)"> <text>A customer deposit account in accordance with this chapter; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>A general cashier to distribute the copies of the counter check as follows:</text> <paragraph num="(i)"> <text>The original copy of the counter check shall be expeditiously transferred to the check bank directly or to a security department employee for transportation to the cashiers’ cage if the counter check is issued in a satellite cage;</text> </paragraph> <paragraph num="(ii)"> <text>The issuance copy of the counter check shall be maintained by the general cashier to serve as documentation supporting the exchange of cash, a gaming ticket, or a customer deposit for the counter check; and</text> </paragraph> <paragraph num="(iii)"> <text>The accounting copy of the counter check shall be attached by the general cashier to the counter check request document and forwarded to the accounting department;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(7)"> <text>If utilized, procedures and controls addressing:</text> <paragraph num="(a)"> <text>Use of a signature exemplar;</text> </paragraph> <paragraph num="(b)"> <text>Creation of a player signature file; and</text> </paragraph> <paragraph num="(c)"> <text>Generation of a gaming ticket at the cashiers’ cage;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Procedures and controls addressing:</text> <paragraph num="(a)"> <text>Voided counter checks;</text> </paragraph> <paragraph num="(b)"> <text>The use and location of accounting drop boxes; and</text> </paragraph> <paragraph num="(c)"> <text>Audit procedures performed by the facility operator’s accounting department at the conclusion of each gaming day;</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Details which establish the ability of the facility operator’s video lottery system to ensure that a three-part computer-generated counter check is not susceptible to change or deletion from the system after preparation; and</text> </paragraph> <paragraph num="(10)"> <text>Procedures utilized to issue a manual counter check which:</text> <paragraph num="(a)"> <text>Are to be utilized only when the video lottery system is unable to generate a counter check;</text> </paragraph> <paragraph num="(b)"> <text>Conform to the requirements of this regulation;</text> </paragraph> <paragraph num="(c)"> <text>Require use of a serially pre-numbered three-part counter check consisting of an original, issuance, and accounting copy, residing in a book, wiz machine, or functional equivalent;</text> </paragraph> <paragraph num="(d)"> <text>Require manual counter checks to be maintained in a secured locked cabinet in the cashiers’ cage; and</text> </paragraph> <paragraph num="(e)"> <text>Require the key to the cabinet in §C(10)(d) of this regulation to be:</text> <paragraph num="(i)"> <text>Controlled by the security department or the cage department employees responsible for the control of and accounting for the unused supply of counter checks; and</text> </paragraph> <paragraph num="(ii)"> <text>Limited to sign out by a cashiers’ cage shift manager or cashiers’ cage manager.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Electronic Credit System.</text> <paragraph num="(1)"> <text>A facility operator may use an electronic credit system approved by the Commission to process electronic counter check transactions.</text> </paragraph> <paragraph num="(2)"> <text>The facility operator may access the player’s file in the electronic credit system using a portable device or other method approved by the Commission.</text> </paragraph> <paragraph num="(3)"> <text>The electronic credit system shall be capable of maintaining independently, or in conjunction with another computer system, as approved by the Commission:</text> <paragraph num="(a)"> <text>A digital photograph and signature of the player;</text> </paragraph> <paragraph num="(b)"> <text>Encrypted employee and player personal identification numbers;</text> </paragraph> <paragraph num="(c)"> <text>For each player account and transaction, the information required to be recorded by §C of this regulation;</text> </paragraph> <paragraph num="(d)"> <text>A record of each electronic transaction, printable in the check bank, which shall include at least:</text> <paragraph num="(i)"> <text>Date and time;</text> </paragraph> <paragraph num="(ii)"> <text>Transaction type;</text> </paragraph> <paragraph num="(iii)"> <text>Document number;</text> </paragraph> <paragraph num="(iv)"> <text>Location;</text> </paragraph> <paragraph num="(v)"> <text>Player name and account number; and</text> </paragraph> <paragraph num="(vi)"> <text>Amount;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>A record of each electronic transaction for which the player has successfully entered the player’s personal identification number and digital signature in the system;</text> </paragraph> <paragraph num="(f)"> <text>A record of voided transactions and the reason for the void; and</text> </paragraph> <paragraph num="(g)"> <text>Any other information the Commission requests.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".27" heading="Counter Check Issuance at a Video Lottery Terminal or Table Game."> <paragraph num="A."> <text>Subject to the limitations of this chapter, a facility operator may accept a negotiable instrument in the form of a counter check from a player at a video lottery terminal or table game to enable the player to take part in gaming.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter, procedures addressing the issuance of a counter check at a video lottery terminal or table game.</text> </paragraph> <paragraph num="C."> <text>A facility operator’s internal controls for a counter check exchanged for value chips or plaques at a gaming table shall include:</text> <paragraph num="(1)"> <text>Use of a player signature file which shall:</text> <paragraph num="(a)"> <text>Be established prior to the completion by a player of a request for counter check document at the table game; and</text> </paragraph> <paragraph num="(b)"> <text>Require an identification credential review in accordance with Regulation .26C(2) of this chapter;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Procedures and controls addressing the identification of the player which include:</text> <paragraph num="(a)"> <text>A requirement that a floorperson satisfactorily compare the:</text> <paragraph num="(i)"> <text>Signature of the player on a form with the signature on the identification credential; and</text> </paragraph> <paragraph num="(ii)"> <text>Player’s physical appearance with the photograph contained on the valid form of unexpired government-issued photographic identification presented by the player;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A requirement that a floorperson record on the form the:</text> <paragraph num="(i)"> <text>Number on the player’s government-issued photographic identification; and</text> </paragraph> <paragraph num="(ii)"> <text>Signature of the floorperson;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A requirement that a floorperson or above shall:</text> <paragraph num="(i)"> <text>Obtain the player’s signature, on a form, which shall be compared to the signature contained within a player signature file;</text> </paragraph> <paragraph num="(ii)"> <text>Sign the form indicating that the signature of the player on the form matches the signature in the player signature file; and</text> </paragraph> <paragraph num="(iii)"> <text>Attach the form to the accounting copy of the counter check exchanged by the player prior to forwarding it to the accounting department;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>A requirement that after the player’s identity has been verified by the floorperson or above, staff shall:</text> <paragraph num="(i)"> <text>Ensure that subsequent verification of the player’s identity during the same shift and in the same gaming pit is satisfied by the employee who performed the initial verification signing a form attesting to the player’s identity before each subsequent counter check is exchanged;</text> </paragraph> <paragraph num="(ii)"> <text>Ensure that the form includes the player’s name and the serial number of the initial counter check exchanged by the player; and</text> </paragraph> <paragraph num="(iii)"> <text>Ensure that the form attaches to the accounting copy of the subsequent counter check prior to forwarding the accounting copy to the accounting department; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>A requirement that a floorperson or above attest to the identity of the player which includes:</text> <paragraph num="(i)"> <text>The floorperson or above record the floorperson’s or above’s gaming license number and sign a form or the counter check attesting to the player’s identity; and</text> </paragraph> <paragraph num="(ii)"> <text>If used, the form is attached to the accounting copy of the counter check exchanged by the player prior to forwarding it to the accounting department;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>A requirement that prior to issuing a counter check, the floorperson or above determines the player’s remaining credit limit from the cage or casino management system;</text> </paragraph> <paragraph num="(4)"> <text>A requirement that all copies of a computer-generated counter check include the following information:</text> <paragraph num="(a)"> <text>Name of the player;</text> </paragraph> <paragraph num="(b)"> <text>Name of the bank, savings and loan, or credit union on which the counter check is to be drawn;</text> </paragraph> <paragraph num="(c)"> <text>Date and time;</text> </paragraph> <paragraph num="(d)"> <text>Amount of the counter check;</text> </paragraph> <paragraph num="(e)"> <text>Location of preparation of the counter check;</text> </paragraph> <paragraph num="(f)"> <text>Signature of a gaming operations department supervisor; and</text> </paragraph> <paragraph num="(g)"> <text>Signature or identification code of the preparer of the counter check;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A requirement that the floorperson or above present the original and all duplicate copies of the counter check to the player for signature;</text> </paragraph> <paragraph num="(6)"> <text>A requirement that the back of the original copy of the counter check contain a restrictive endorsement “for deposit only” to the facility operator’s designated bank account after being transferred to the check bank; and</text> </paragraph> <paragraph num="(7)"> <text>Procedures and controls over the counter check issuance process which require:</text> <paragraph num="(a)"> <text>A floorperson to receive the signed counter check directly from the player;</text> </paragraph> <paragraph num="(b)"> <text>The issuance copy of the counter check to be immediately given to the dealer or boxperson to be exchanged for value chips or gaming plaques;</text> </paragraph> <paragraph num="(c)"> <text>The issuance copy of the counter check to be deposited by the dealer or boxperson in the drop box;</text> </paragraph> <paragraph num="(d)"> <text>The original copy of the counter check to be expeditiously transported to the cage where the original copy shall be maintained and controlled by the cage cashier designated to act as the check bank; and</text> </paragraph> <paragraph num="(e)"> <text>The accounting copy of the counter check to be maintained and controlled by the pit clerk or above until forwarded to the accounting department.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator’s internal controls for a counter check exchanged for cash or gaming ticket directly at a video lottery terminal shall include:</text> <paragraph num="(1)"> <text>Use of a player signature file which shall:</text> <paragraph num="(a)"> <text>Be established prior to the completion by a player of a request for counter check document at the video lottery terminal; and</text> </paragraph> <paragraph num="(b)"> <text>Require an identification credential review in accordance with Regulation .26C(2) of this chapter;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Procedures and controls addressing the identification of the player which include:</text> <paragraph num="(a)"> <text>A gaming operations supervisor to obtain the amount of the requested counter check and the player’s signature on a one-part counter check request form and transport the counter check request form directly to the cage cashier; and</text> </paragraph> <paragraph num="(b)"> <text>A cage cashier to compare the signature on the one-part counter check request form to the signature contained within a player signature file;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Procedures and controls over the counter check issuance process which require:</text> <paragraph num="(a)"> <text>A general cashier to:</text> <paragraph num="(i)"> <text>Prepare the counter check in accordance with this regulation;</text> </paragraph> <paragraph num="(ii)"> <text>Summon to the cashiers’ cage a verifying employee from the security department or gaming operations department provided the verifying employee is not the gaming operations department supervisor who transported the counter check request document to the cashiers’ cage;</text> </paragraph> <paragraph num="(iii)"> <text>Present the counter check request document, all copies of the counter check and the cash, gaming ticket, chip, or plaque to the gaming operations department supervisor and the verifying employee;</text> </paragraph> <paragraph num="(iv)"> <text>Obtain the signature of the gaming operations department supervisor on all copies of the counter check confirming that the amount of the counter check agrees with the amount on the counter check request document;</text> </paragraph> <paragraph num="(v)"> <text>Obtain the signature of the verifying employee on the counter check request document confirming that the amount of cash, gaming ticket, chip, or plaque to be transported to the player agrees with the amount on the counter check and on the counter check request document; and</text> </paragraph> <paragraph num="(vi)"> <text>Release to the verifying employee the counter check request document, all copies of the counter check, and the cash, gaming ticket, chip, or plaque for transportation, in the presence of the gaming operations department supervisor who transported the counter check request to the cashiers’ cage, to the player;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A verifying employee to present all copies of the counter check to the player for signature in the presence of the gaming operations department supervisor;</text> </paragraph> <paragraph num="(c)"> <text>A gaming operations department supervisor to compare the player’s signature on the counter check to the signature on the counter check request document;</text> </paragraph> <paragraph num="(d)"> <text>A verifying employee to immediately exchange the counter check for:</text> <paragraph num="(i)"> <text>Cash; or</text> </paragraph> <paragraph num="(ii)"> <text>If a facility operator has the capability, a gaming ticket;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>A gaming operations department supervisor to:</text> <paragraph num="(i)"> <text>Sign the back of the accounting copy confirming the exchange with the player; and</text> </paragraph> <paragraph num="(ii)"> <text>Drop the accounting copy of the counter check into an accounting drop box for forwarding to accounting;</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>A verifying employee to immediately return the original and issuance copies of the counter check to a general cashier; and</text> </paragraph> <paragraph num="(g)"> <text>A general cashier to:</text> <paragraph num="(i)"> <text>Expeditiously transfer the original copy of the counter check to the check bank directly or to a security department employee for transportation to the cashiers’ cage if the counter check is issued in a satellite cage; and</text> </paragraph> <paragraph num="(ii)"> <text>Attach the counter check request document to the accounting copy of the counter check to serve as documentation supporting the exchange of cash, gaming ticket, for the counter check.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Electronic Credit System.</text> <paragraph num="(1)"> <text>A facility operator may use an electronic credit system approved by the Commission to process electronic counter check transactions.</text> </paragraph> <paragraph num="(2)"> <text>The facility operator may access the player’s file in the electronic credit system using a portable device or other approved method.</text> </paragraph> <paragraph num="(3)"> <text>The electronic credit system shall be capable of maintaining independently, or in conjunction with another computer system, as approved by the Commission:</text> <paragraph num="(a)"> <text>A digital photograph and signature of the player;</text> </paragraph> <paragraph num="(b)"> <text>Encrypted employee and player personal identification numbers;</text> </paragraph> <paragraph num="(c)"> <text>For each player account and transaction, the information required to be recorded by §§C and D of this regulation;</text> </paragraph> <paragraph num="(d)"> <text>A record of each electronic transaction, printable in the check bank, which shall include at least:</text> <paragraph num="(i)"> <text>Date and time;</text> </paragraph> <paragraph num="(ii)"> <text>Transaction type;</text> </paragraph> <paragraph num="(iii)"> <text>Document number;</text> </paragraph> <paragraph num="(iv)"> <text>Location;</text> </paragraph> <paragraph num="(v)"> <text>Player name and account number; and</text> </paragraph> <paragraph num="(vi)"> <text>Amount;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>A record of each electronic transaction for which the player has successfully entered the player’s personal identification number and digital signature in the system;</text> </paragraph> <paragraph num="(f)"> <text>A record of voided transactions and the reason for the void; and</text> </paragraph> <paragraph num="(g)"> <text>Any other information the Commission requests.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".28" heading="Counter Check Substitution, Consolidation, and Redemption."> <paragraph num="A."> <text>A player to whom a counter check has been issued by a facility operator may use a personal check meeting the requirements of §B of this regulation to:</text> <paragraph num="(1)"> <text>Substitute for a counter check which has not been deposited by the facility operator;</text> </paragraph> <paragraph num="(2)"> <text>Consolidate two or more counter checks which have not been deposited by the facility operator; and</text> </paragraph> <paragraph num="(3)"> <text>Redeem, partially or in full, a counter check which has not been deposited by a facility operator.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A personal check accepted by a facility operator in a substitution, consolidation, or redemption transaction shall:</text> <paragraph num="(1)"> <text>Be drawn on an account which has been verified in accordance with Regulation .25 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Except as provided in §C of this regulation, comply with the requirements of Regulation .20 of this chapter; and</text> </paragraph> <paragraph num="(3)"> <text>Be redeemed or deposited in accordance with Regulation .29 of this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a personal check is accepted in an amount less than or equal to the amount of a counter check being partially or fully redeemed, the $50,000 limitation on acceptance of personal checks in Regulation .20F(2) of this chapter does not apply.</text> </paragraph> <paragraph num="D."> <text>A player who has issued a replacement check to a facility operator may present another replacement check in a substitution, consolidation, or partial redemption transaction involving the original replacement check.</text> </paragraph> <paragraph num="E."> <text>A replacement check accepted by a facility operator in a substitution, consolidation, or partial redemption transaction shall be:</text> <paragraph num="(1)"> <text>Dated with the date of the initial counter check being substituted, consolidated, or partially redeemed; or</text> </paragraph> <paragraph num="(2)"> <text>If the check is subject to Commission-approved internal controls which ensure that the date of the initial counter check being substituted, consolidated, or partially redeemed is used to determine the date on which the replacement check is deposited under Regulation .29 of this chapter, currently dated.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A facility operator may not accept a replacement check in substitution, consolidation, or partial redemption for the purpose of avoiding or delaying the deposit requirements for a counter check or replacement check under Regulation .29 of this chapter.</text> </paragraph> <paragraph num="G."> <text>If a player has more than one counter check or replacement check which has not been deposited, the most recently dated check shall be redeemed first, except that:</text> <paragraph num="(1)"> <text>If more than one check bears the same date, the player may choose the order in which to redeem the checks;</text> </paragraph> <paragraph num="(2)"> <text>If, pursuant to Commission-approved internal controls, a facility operator does not require a replacement check used in a substitution, consolidation, or partial redemption transaction to be dated with the date of the initial counter check being substituted, consolidated, or partially redeemed, then the date of the initial counter check and not the date of the replacement check shall be used to determine the order in which outstanding checks are redeemed; and</text> </paragraph> <paragraph num="(3)"> <text>If a facility operator receives a check through the mail or by other means approved by the Commission and the player requests that it be applied to a transaction having an earlier redemption date, the facility operator may apply the check according to the player’s request.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A facility operator may conduct a substitution, consolidation, and full or partial redemption transaction:</text> <paragraph num="(1)"> <text>At the cashiers’ cage during the hours of operation approved by the Commission for the facility under COMAR 36.03.11.02;</text> </paragraph> <paragraph num="(2)"> <text>By mail;</text> </paragraph> <paragraph num="(3)"> <text>At an off-site customer service location; or</text> </paragraph> <paragraph num="(4)"> <text>In a table game pit.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A facility operator shall develop and include in the internal controls submitted to and approved under Regulation .05 of this chapter procedures and controls addressing the substitution, consolidation, and full or partial redemption of a counter check.</text> </paragraph> <paragraph num="J."> <text>A facility operator may allow a player to redeem a counter check at a gaming table in exchange for gaming chips.</text> </paragraph> <paragraph num="K."> <text>A facility operator’s internal controls for redeeming a counter check at a gaming table shall include:</text> <paragraph num="(1)"> <text>A requirement that a redemption occur:</text> <paragraph num="(a)"> <text>On the same gaming day the counter check is issued; and</text> </paragraph> <paragraph num="(b)"> <text>In the same gaming pit where the counter check was issued and held for pit redemption;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A requirement that a general cashier or casino clerk:</text> <paragraph num="(a)"> <text>Remove the original and all duplicate copies of the counter check from its secured location in the pit;</text> </paragraph> <paragraph num="(b)"> <text>Prepare a two-part serially prenumbered pit redemption form in accordance with this regulation; and</text> </paragraph> <paragraph num="(c)"> <text>Present the pit redemption form and the original and all duplicate copies of the counter check to the dealer or boxperson, in the presence of a floorperson or above;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Procedures and controls over the counter check redemption process which require:</text> <paragraph num="(a)"> <text>A dealer or boxperson to verify that the amount of chips received from the player agrees with the amount of the original counter check and the pit redemption form;</text> </paragraph> <paragraph num="(b)"> <text>The dealer or boxperson to place the gaming chips from the player into the table inventory;</text> </paragraph> <paragraph num="(c)"> <text>The dealer or boxperson, and the floorperson to sign the pit redemption form;</text> </paragraph> <paragraph num="(d)"> <text>The dealer or boxperson to deposit the original of the pit redemption form in the drop box;</text> </paragraph> <paragraph num="(e)"> <text>The floorperson to return the original counter check to the player;</text> </paragraph> <paragraph num="(f)"> <text>The floorperson to return the duplicate copies of the counter check and the duplicate copy of the pit redemption form to the general cashier or casino clerk;</text> </paragraph> <paragraph num="(g)"> <text>The general cashier or casino clerk to forward the duplicate copies of the counter check to the check bank for processing; and</text> </paragraph> <paragraph num="(h)"> <text>The cashiers’ cage to forward the duplicate copy of the pit redemption form to the casino accounting department at the end of the gaming day; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A requirement that the general cashier or casino clerk record the following information on a two-part serially prenumbered pit redemption form residing in a book, wiz machine, or functional equivalent:</text> <paragraph num="(a)"> <text>The date and time of redemption;</text> </paragraph> <paragraph num="(b)"> <text>The identification number of the table game;</text> </paragraph> <paragraph num="(c)"> <text>The player's name;</text> </paragraph> <paragraph num="(d)"> <text>The counter check number and amount;</text> </paragraph> <paragraph num="(e)"> <text>The signature of the general cashier or casino clerk;</text> </paragraph> <paragraph num="(f)"> <text>The signature of the table game dealer or boxperson; and</text> </paragraph> <paragraph num="(g)"> <text>The signature of the floorperson or above.</text> </paragraph> </paragraph> </paragraph> <paragraph num="L."> <text>Electronic Credit System.</text> <paragraph num="(1)"> <text>A facility operator may use an electronic credit system approved by the Commission to process electronic counter check transactions.</text> </paragraph> <paragraph num="(2)"> <text>The facility operator may access the player’s file in the electronic credit system using a portable device or other method approved by the Commission.</text> </paragraph> <paragraph num="(3)"> <text>The electronic credit system shall be capable of maintaining independently, or in conjunction with another computer system, as approved by the Commission:</text> <paragraph num="(a)"> <text>A digital photograph and signature of the player;</text> </paragraph> <paragraph num="(b)"> <text>Encrypted employee and player personal identification numbers;</text> </paragraph> <paragraph num="(c)"> <text>For each player account and transaction, the information required to be recorded by §§B and E of this regulation;</text> </paragraph> <paragraph num="(d)"> <text>A record of each electronic transaction, printable in the check bank, which shall include at least:</text> <paragraph num="(i)"> <text>Date and time;</text> </paragraph> <paragraph num="(ii)"> <text>Transaction type;</text> </paragraph> <paragraph num="(iii)"> <text>Document number;</text> </paragraph> <paragraph num="(iv)"> <text>Location;</text> </paragraph> <paragraph num="(v)"> <text>Player name and account number; and</text> </paragraph> <paragraph num="(vi)"> <text>Amount;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>A record of each electronic transaction for which the player has successfully entered the player’s personal identification number and digital signature in the system;</text> </paragraph> <paragraph num="(f)"> <text>A record of voided transactions and the reason for the void; and</text> </paragraph> <paragraph num="(g)"> <text>Any other information the Commission requests.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".29" heading="Deposit of Counter Checks."> <paragraph num="A."> <text>A facility operator shall deposit a counter check in its bank account or present the counter check directly to the player’s bank:</text> <paragraph num="(1)"> <text>No later than:</text> <paragraph num="(a)"> <text>14 days after the date of the check for a check of $1,000 or less;</text> </paragraph> <paragraph num="(b)"> <text>21 days after the date of the check for a check greater than $1,000 but not more than $2,500;</text> </paragraph> <paragraph num="(c)"> <text>45 days after the date of the check for a check greater than $2,500; or</text> </paragraph> <paragraph num="(d)"> <text>60 days after the date of the check for a check greater than $10,000; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In accordance with a deposit schedule agreed to between the facility operator and the player if the deposit schedule:</text> <paragraph num="(a)"> <text>Does not authorize deposit more than 60 days after the date of the check;</text> </paragraph> <paragraph num="(b)"> <text>May not be amended or modified to change the deposit date of a counter check after acceptance of the counter check from the player; and</text> </paragraph> <paragraph num="(c)"> <text>Was at the time of the initial authorization of credit or an approved change in a credit limit:</text> <paragraph num="(i)"> <text>Agreed to and approved by the employee who extended the credit; and</text> </paragraph> <paragraph num="(ii)"> <text>Documented in the credit file.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall deposit a replacement check accepted from a player in a substitution, consolidation, or partial redemption transaction in its bank account or present the replacement check directly to the player’s bank:</text> <paragraph num="(1)"> <text>On the deposit date of the initial counter check in accordance with Regulation .28D of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>In accordance with one of the deposit options of §A of this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall deposit in its bank account or present directly to the player’s bank a personal check accepted in full redemption of a counter check on the next day.</text> </paragraph> <paragraph num="D."> <text>A facility operator:</text> <paragraph num="(1)"> <text>If there are a series of consolidation or redemption transactions with a player, may substitute a current counter check for the earliest dated counter check returned to the player in the first of the series of consolidation or redemption transactions; and</text> </paragraph> <paragraph num="(2)"> <text>In computing the time periods in §§A, B, and C of this regulation, shall consider the last day of the period to be included unless it is a Saturday, Sunday, or a State or federal holiday, in which event the time period runs until the next banking day.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator shall develop and include in the internal controls submitted to and approved under Regulation .05 of this chapter procedures and controls addressing the deposit of counter checks and replacement checks.</text> </paragraph> <paragraph num="F."> <text>A facility operator’s internal controls shall include:</text> <paragraph num="(1)"> <text>Procedures and controls addressing:</text> <paragraph num="(a)"> <text>Release of a counter check or replacement check for presentment to a player’s bank to:</text> <paragraph num="(i)"> <text>A principal employee of the facility operator; or</text> </paragraph> <paragraph num="(ii)"> <text>An attorney; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Correction, prior to deposit or presentment or on redeposit of a returned check, of data entry errors in:</text> <paragraph num="(i)"> <text>Bank name;</text> </paragraph> <paragraph num="(ii)"> <text>Bank routing number;</text> </paragraph> <paragraph num="(iii)"> <text>Bank account number; or</text> </paragraph> <paragraph num="(iv)"> <text>Micro-encoding number; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A prohibition against correcting information that identifies the verified bank account on which the counter check was originally drawn.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".30" heading="Returned Checks."> <paragraph num="A."> <text>All checks returned after deposit shall be:</text> <paragraph num="(1)"> <text>Returned directly to an accounting department employee with no incompatible functions; and</text> </paragraph> <paragraph num="(2)"> <text>Maintained by a check bank cashier with no incompatible functions.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall:</text> <paragraph num="(1)"> <text>Limit collection efforts pertaining to a returned check to the following persons:</text> <paragraph num="(a)"> <text>A gaming or principal licensed employee of the accounting department with no incompatible functions; and</text> </paragraph> <paragraph num="(b)"> <text>An attorney representing the facility operator;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Notice the employee or attorney authorized to conduct collection efforts of any verbal or written communication with a player regarding collection efforts;</text> </paragraph> <paragraph num="(3)"> <text>Document all collection efforts in the player’s credit file; and</text> </paragraph> <paragraph num="(4)"> <text>Send a statement to a player at reasonable intervals.</text> </paragraph> </paragraph> <paragraph num="C."> <text>After reasonable collection efforts, returned checks may be considered uncollectible for accounting purposes if the write off is authorized by the:</text> <paragraph num="(1)"> <text>Chief executive officer; and</text> </paragraph> <paragraph num="(2)"> <text>Director of finance or another designated principal employee who does not possess authority to authorize credit or approve a change in a credit limit.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".31" heading="Accounting Controls in a Check Bank."> <paragraph num="A."> <text>In addition to the documentation requirements of Regulations .24 and .25 of this chapter, a facility operator shall record in a player’s credit file all transactions affecting a player's outstanding indebtedness to the facility operator, and the credit file shall include:</text> <paragraph num="(1)"> <text>Transactions recorded in chronological order;</text> </paragraph> <paragraph num="(2)"> <text>Credit transactions segregated from customer deposit transactions; and</text> </paragraph> <paragraph num="(3)"> <text>Documentation of:</text> <paragraph num="(a)"> <text>For counter checks, the date, amount, and series number;</text> </paragraph> <paragraph num="(b)"> <text>For each substitution check:</text> <paragraph num="(i)"> <text>The date, amount, and check number of the substitute check; and</text> </paragraph> <paragraph num="(ii)"> <text>The series number of the counter check or check number of the replacement check returned to the player;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>For each consolidation check:</text> <paragraph num="(i)"> <text>The date, amount, and check number of the consolidation check; and</text> </paragraph> <paragraph num="(ii)"> <text>The series numbers of the counter check or check number of the replacement check returned to the player;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>For each redemption check:</text> <paragraph num="(i)"> <text>The date, amount, and check number of the redemption check;</text> </paragraph> <paragraph num="(ii)"> <text>An indication as to whether the redemption was partial or full; and</text> </paragraph> <paragraph num="(iii)"> <text>The series number of the counter check or check number of the replacement check returned to the player;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Date, amount, and series or check number of each check:</text> <paragraph num="(i)"> <text>Deposited; and</text> </paragraph> <paragraph num="(ii)"> <text>Returned;</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>If a check has been returned, the reason for its return;</text> </paragraph> <paragraph num="(g)"> <text>Player’s outstanding balance after each transaction;</text> </paragraph> <paragraph num="(h)"> <text>Date, amount, and series or check number of a check which has been partially or completely written off by the facility operator; and</text> </paragraph> <paragraph num="(i)"> <text>If a write off, the reason for the write off.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall maintain original copies of counter checks and replacement checks accepted in substitution, consolidation, and redemption transactions in its check bank.</text> </paragraph> <paragraph num="C."> <text>A facility operator’s check bank shall prepare and maintain for each shift, manually or by computer, a log of all counter checks exchanged and of all replacement checks received in substitution, consolidation, and redemption transactions which includes the following:</text> <paragraph num="(1)"> <text>The balance of the checks on hand in the check bank at the beginning of each shift;</text> </paragraph> <paragraph num="(2)"> <text>For counter checks accepted and for replacement checks received in substitution, consolidation, or redemption on the shift:</text> <paragraph num="(a)"> <text>Date of the check;</text> </paragraph> <paragraph num="(b)"> <text>Name of the drawer of the check;</text> </paragraph> <paragraph num="(c)"> <text>Amount of the check;</text> </paragraph> <paragraph num="(d)"> <text>If a counter check, the series number;</text> </paragraph> <paragraph num="(e)"> <text>If a replacement check, the check number; and</text> </paragraph> <paragraph num="(f)"> <text>If applicable, an indication that the check was accepted in a substitution, consolidation, or redemption transaction;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For checks deposited, substituted, consolidated, or redeemed by a player on the shift:</text> <paragraph num="(a)"> <text>Date on which the check was deposited, substituted, consolidated, or redeemed;</text> </paragraph> <paragraph num="(b)"> <text>Name of the drawer of the check;</text> </paragraph> <paragraph num="(c)"> <text>Amount of the check;</text> </paragraph> <paragraph num="(d)"> <text>If a counter check, the series number;</text> </paragraph> <paragraph num="(e)"> <text>If a replacement check, the check number; and</text> </paragraph> <paragraph num="(f)"> <text>An indication as to whether the check was deposited, substituted, consolidated, or redeemed; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The balance of the checks on hand in the check bank at the end of each shift.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing accounting controls over the check bank, including end of shift and end of gaming day deposits and reconciliations.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".32" heading="Player Request for Suspension of Credit Privileges."> <paragraph num="A."> <text>A player may voluntarily suspend the player’s credit privileges at a Maryland facility by submitting a written request to the facility in a form specified by the facility.</text> </paragraph> <paragraph num="B."> <text>A request for suspension of credit privileges shall be made:</text> <paragraph num="(1)"> <text>In person at a facility; or</text> </paragraph> <paragraph num="(2)"> <text>By mail if:</text> <paragraph num="(a)"> <text>Submitted with a signature signed before a notary public or other individual empowered by law to take oaths; and</text> </paragraph> <paragraph num="(b)"> <text>Accompanied by a certificate of acknowledgement by the notary public or other individual empowered by law to take oaths attesting to the identity of the individual making the request.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The facility receiving a player’s request for suspension of credit privileges shall maintain a master list of all individuals who have requested suspension of credit privileges under this regulation.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall suspend the credit privileges of an individual requesting suspension within 24 hours of receipt of notice that the individual’s name has been added to the facility’s master list.</text> </paragraph> <paragraph num="E."> <text>A facility operator shall:</text> <paragraph num="(1)"> <text>Maintain the most current master list in its cashiers’ cage; and</text> </paragraph> <paragraph num="(2)"> <text>Within 24 hours of receipt of notice that an individual has requested a suspension of credit privileges, record the suspension in the player’s credit file.</text> </paragraph> </paragraph> <paragraph num="F."> <text>No less than 60 days after the request for suspension of credit privileges, a player whose credit privileges have been suspended under this regulation may request reinstatement of credit privileges by submitting a written request to the facility.</text> </paragraph> <paragraph num="G."> <text>The facility shall on receipt of a request for reinstatement update its master list of individuals to document the request for reinstatement.</text> </paragraph> <paragraph num="H."> <text>A facility operator may not reinstate the credit privileges of a player removed from facility’s master list without performing the verifications required by Regulation .25 of this chapter.</text> </paragraph> <paragraph num="I."> <text>Information furnished to or obtained by the facility under this regulation shall be deemed confidential and may not be disclosed except to facility personnel whose duties and functions require access to the information.</text> </paragraph> <paragraph num="J."> <text>A facility operator requested to provide information regarding the status of a player’s credit account may not disclose any information other than to identify the credit account as voluntarily suspended.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".33" heading="Prohibition on the Use of Credit Cards and Debit Cards."> <text>A video lottery terminal or table game may not be played or activated in any way by insertion, directly or indirectly, or use of a:</text> <paragraph num="A."> <text>Credit card;</text> </paragraph> <paragraph num="B."> <text>Debit card; or</text> </paragraph> <paragraph num="C."> <text>Electronic transfer of funds from a credit card or debit card.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".34" heading="Player Tracking System."> <paragraph num="A."> <text>For the purposes of this regulation, a player tracking system means the collective hardware, software, communications technology, and other ancillary equipment owned or leased by a facility operator to collect, monitor, interpret, analyze, authorize, report, and audit data pertaining to:</text> <paragraph num="(1)"> <text>Player activity generally at video lottery terminals and table games; and</text> </paragraph> <paragraph num="(2)"> <text>Individual player activity at video lottery terminals and table games where the player has registered with the facility operator for inclusion in the player tracking system.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall utilize a player tracking system meeting the requirements of this subtitle.</text> </paragraph> <paragraph num="C."> <text>A facility operator may not collect or monitor the activity of an individual who it knows, suspects, or has reason to know or suspect is:</text> <paragraph num="(1)"> <text>Under the age of 21 years;</text> </paragraph> <paragraph num="(2)"> <text>Mandatorily excluded in accordance with State Government Article, §9-1A-24(d), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(3)"> <text>Voluntarily excluded in accordance State Government Article, §9-1A-24(e), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall provide a player with a record of video lottery terminal and table game spending levels if:</text> <paragraph num="(1)"> <text>The player:</text> <paragraph num="(a)"> <text>Has registered with the facility for inclusion in the player tracking system; and</text> </paragraph> <paragraph num="(b)"> <text>Submits a signed request for the spending level documentation at:</text> <paragraph num="(i)"> <text>The cashiers' cage; or</text> </paragraph> <paragraph num="(ii)"> <text>Other location at the facility approved by the Commission; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The identification of the player and the authenticity of the player's signature on the request is established by an employee satisfactorily comparing the:</text> <paragraph num="(a)"> <text>Player's information recorded on the spending level request documentation with the information contained on the valid, unexpired government-issued photographic identification presented by the player; and</text> </paragraph> <paragraph num="(b)"> <text>Player's physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the player.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator shall provide a player with a record of video lottery terminal and table game spending levels if the player:</text> <paragraph num="(1)"> <text>Has registered online with the facility operator for the establishment of an account; and</text> </paragraph> <paragraph num="(2)"> <text>Enters a unique login credential at a:</text> <paragraph num="(a)"> <text>Self-service kiosk; or</text> </paragraph> <paragraph num="(b)"> <text>Facility operator’s player rewards website.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".35" heading="Gaming Ticket."> <paragraph num="A."> <text>A facility operator may issue a gaming ticket and utilize a gaming ticket system meeting the requirements of this subtitle.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall:</text> <paragraph num="(1)"> <text>Issue a gaming ticket which does not expire for 182 days after the date of issuance;</text> </paragraph> <paragraph num="(2)"> <text>Configure its gaming ticket system to:</text> <paragraph num="(a)"> <text>Prevent issuance of a gaming ticket exceeding $10,000; and</text> </paragraph> <paragraph num="(b)"> <text>Require gaming tickets of $5,000 or more to be redeemed only at the cashiers’ cage;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Configure a ticket redemption unit under Regulation .38 of this regulation to:</text> <paragraph num="(a)"> <text>Redeem only a gaming ticket of less than $5,000; and</text> </paragraph> <paragraph num="(b)"> <text>Direct a player attempting to redeem a gaming ticket of $5,000 or more to the cashiers’ cage; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Redeem at its cashiers’ cage a gaming ticket of $5,000 or more by:</text> <paragraph num="(a)"> <text>Cash or check; or</text> </paragraph> <paragraph num="(b)"> <text>Check on the request of a player.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall immediately report to the Commission evidence that a gaming ticket has been counterfeited, tampered with, or altered in any way which would affect the integrity, fairness, or reliability of the gaming ticket.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the issuance and redemption of a gaming ticket.</text> </paragraph> <paragraph num="E."> <text>A facility operator’s internal controls shall:</text> <paragraph num="(1)"> <text>Require a gaming ticket to include:</text> <paragraph num="(a)"> <text>Name or trade name of the facility operator;</text> </paragraph> <paragraph num="(b)"> <text>Date and time of issuance;</text> </paragraph> <paragraph num="(c)"> <text>Amount of the gaming ticket;</text> </paragraph> <paragraph num="(d)"> <text>Unique series number automatically generated by the gaming ticket system;</text> </paragraph> <paragraph num="(e)"> <text>Asset number of the video lottery terminal dispensing the gaming ticket;</text> </paragraph> <paragraph num="(f)"> <text>At least one anticounterfeiting measure, which appears on one or both sides of the gaming ticket;</text> </paragraph> <paragraph num="(g)"> <text>Locations where the gaming ticket may be redeemed and any restrictions applicable to redemption;</text> </paragraph> <paragraph num="(h)"> <text>A bar code or magnetic strip which enables the gaming ticket system to identify the numeric information required by this section; and</text> </paragraph> <paragraph num="(i)"> <text>Notice to the player of the terms of expiration; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Include procedures and controls which:</text> <paragraph num="(a)"> <text>Require a gaming ticket system to perform the following prior to payment:</text> <paragraph num="(i)"> <text>Verify the validity of the series number and amount of the gaming ticket; and</text> </paragraph> <paragraph num="(ii)"> <text>Electronically cancel the gaming ticket;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Require the gaming ticket system to be configured:</text> <paragraph num="(i)"> <text>To permit access to the complete series number of an unredeemed gaming ticket only to gaming ticket system administrative employees and accounting department employees not assigned to the cashiers’ cage; and</text> </paragraph> <paragraph num="(ii)"> <text>To maintain a record of all unredeemed gaming tickets for a minimum of 2 years from the date of issuance of the gaming ticket unless a request to remove or relocate system records is submitted in writing and approved in writing by the Commission;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Address the following events:</text> <paragraph num="(i)"> <text>Calculation and transmittal by the facility operator of its outstanding expired unredeemed gaming ticket balance to the State;</text> </paragraph> <paragraph num="(ii)"> <text>An election by a facility operator to pay a gaming ticket when the gaming ticket system is inoperable or otherwise unable to verify the validity of the gaming ticket at the time of payment; and</text> </paragraph> <paragraph num="(iii)"> <text>An election by a facility operator to pay a gaming ticket where the gaming ticket system fails to verify and electronically cancel the gaming ticket when it is presented by the player and scanned for verification; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Require generation, at the conclusion of each gaming day, of reports detailing:</text> <paragraph num="(i)"> <text>Gaming tickets issued;</text> </paragraph> <paragraph num="(ii)"> <text>Gaming tickets redeemed and cancelled by redemption location;</text> </paragraph> <paragraph num="(iii)"> <text>Unredeemed liability for gaming tickets;</text> </paragraph> <paragraph num="(iv)"> <text>Readings on gaming ticket related video lottery terminal meters;</text> </paragraph> <paragraph num="(v)"> <text>Meter readings compared to number and amount of issued and redeemed gaming tickets; and</text> </paragraph> <paragraph num="(vi)"> <text>Any exceptions.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".36" heading="Promotional Play."> <paragraph num="A."> <text>A facility operator may:</text> <paragraph num="(1)"> <text>Issue promotional play if it is not awarded as cashable credit; and</text> </paragraph> <paragraph num="(2)"> <text>Utilize a promotional play system meeting the requirements of this subtitle.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator may not issue to a player promotional play equaling or exceeding $5,000 per gaming day without approval from the chief executive or the chief executive’s designee.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall immediately report to the Commission evidence that a promotional play instrument has been counterfeited, tampered with, or altered in any way which would affect the integrity, fairness, or reliability of the promotional play instrument.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall submit to the Commission in a form and in accordance with a time frame specified by the Commission a quarterly report summarizing:</text> <paragraph num="(1)"> <text>Promotional play awarded for the period including:</text> <paragraph num="(a)"> <text>Total amount in promotional play awarded in noncashable credits; and</text> </paragraph> <paragraph num="(b)"> <text>Other forms of promotional play; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Promotional play redeemed by players for the period including:</text> <paragraph num="(a)"> <text>Total amount in promotional play redeemed in noncashable credits; and</text> </paragraph> <paragraph num="(b)"> <text>Other forms of promotional play redeemed.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing:</text> <paragraph num="(1)"> <text>Methods utilized to:</text> <paragraph num="(a)"> <text>Issue promotional play; and</text> </paragraph> <paragraph num="(b)"> <text>Redeem promotional play; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A promotion play instrument including a requirement that it document:</text> <paragraph num="(a)"> <text>Name or trade name of the facility operator;</text> </paragraph> <paragraph num="(b)"> <text>Amount in noncashable credits;</text> </paragraph> <paragraph num="(c)"> <text>Unique series number automatically generated by the promotional play system;</text> </paragraph> <paragraph num="(d)"> <text>Locations where a promotional instrument may be redeemed and any restrictions applicable to redemption;</text> </paragraph> <paragraph num="(e)"> <text>A bar code or magnetic strip which enables the promotional play system to identify the numeric information required by this section; and</text> </paragraph> <paragraph num="(f)"> <text>Notice to the player of the terms of expiration.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Limitation on Free Promotional Play.</text> <paragraph num="(1)"> <text>Through the first full fiscal year of a facility’s operations, the proceeds of a facility excludes money given away by a licensee as free promotional play and used by players to bet in a video lottery terminal or at a table game.</text> </paragraph> <paragraph num="(2)"> <text>After the first full fiscal year of a facility’s operations, the amount of money given away as free promotional play in a fiscal year may not exceed a percentage of the facility’s proceeds received in the prior fiscal year under State Government Article, §9-1A-27(a)(2), (c)(1)(ii), and (d)(1), Annotated Code of Maryland, that equates to 20 percent of total video lottery terminal and table game proceeds the facility generated in the prior fiscal year.</text> </paragraph> <paragraph num="(3)"> <text>An amount of money given away as free promotional play in a fiscal year exceeding the percentage defined in §F(2) of this regulation of the facility’s proceeds of the prior fiscal year shall be allocated as proceeds under State Government Article, §9-1A-27, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="G."> <text>No later than 90 days after the end of the fiscal year, a facility operator shall submit to the Commission a written:</text> <paragraph num="(1)"> <text>Report of its use of free promotional play during the prior fiscal year; and</text> </paragraph> <paragraph num="(2)"> <text>Recommendation for any adjustment to the limitation on free promotional play established under §F(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="H."> <text>For purposes of §§F and G of this regulation, “fiscal year” means the fiscal year of the facility operator.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".37" heading="Ticket Redemption Unit."> <paragraph num="A."> <text>A facility operator may utilize a ticket redemption unit meeting the requirements of this subtitle.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall locate a ticket redemption unit on the gaming floor or cashier’s cage, subject to the surveillance coverage requirements of Regulation .11 of this chapter.</text> </paragraph> <paragraph num="C."> <text>A ticket redemption unit:</text> <paragraph num="(1)"> <text>Shall in accordance with Regulation .36 of this chapter be configured to:</text> <paragraph num="(a)"> <text>Redeem a gaming ticket of less than $5,000; and</text> </paragraph> <paragraph num="(b)"> <text>Direct a player attempting to redeem a gaming ticket of $5,000 or more to the cashiers’ cage; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>May be configured to function as a bill breaker changing bills of one denomination into bills of a smaller denomination.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall develop and include in the internal controls submitted under Regulation .05 of this chapter, procedures addressing a ticket redemption unit.</text> </paragraph> <paragraph num="E."> <text>A facility operator’s internal controls shall address:</text> <paragraph num="(1)"> <text>Distribution of cash to a ticket redemption unit;</text> </paragraph> <paragraph num="(2)"> <text>Removal of gaming tickets and cash accepted by a ticket redemption unit;</text> </paragraph> <paragraph num="(3)"> <text>Reconciliations associated with the replenishment process;</text> </paragraph> <paragraph num="(4)"> <text>Generation of the following reports by a ticket redemption unit or ancillary system or application for the reconciliation period, which may be by gaming day, shift, or drop cycle:</text> <paragraph num="(a)"> <text>A gaming ticket transaction report which details:</text> <paragraph num="(i)"> <text>Disposition, as paid, partially paid, or unpaid, of gaming tickets accepted by a ticket redemption unit;</text> </paragraph> <paragraph num="(ii)"> <text>Gaming ticket validation number;</text> </paragraph> <paragraph num="(iii)"> <text>Date and time of redemption;</text> </paragraph> <paragraph num="(iv)"> <text>Amount requested; and</text> </paragraph> <paragraph num="(v)"> <text>Amount dispensed;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A reconciliation report which details:</text> <paragraph num="(i)"> <text>Date and time;</text> </paragraph> <paragraph num="(ii)"> <text>Unique asset identification number of the ticket redemption unit;</text> </paragraph> <paragraph num="(iii)"> <text>Total amount of cash in the currency and coin cassettes;</text> </paragraph> <paragraph num="(iv)"> <text>Total number of bills accepted by denomination; and</text> </paragraph> <paragraph num="(v)"> <text>Total amount of gaming tickets accepted; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A gaming ticket and currency storage box report which details the following data whenever a storage box is removed from the ticket redemption unit:</text> <paragraph num="(i)"> <text>Date and time;</text> </paragraph> <paragraph num="(ii)"> <text>Unique asset identification number of the ticket redemption unit;</text> </paragraph> <paragraph num="(iii)"> <text>Unique identification number for each storage box in the ticket redemption unit;</text> </paragraph> <paragraph num="(iv)"> <text>Total amount of currency dispensed;</text> </paragraph> <paragraph num="(v)"> <text>Total number of bills dispensed by denomination;</text> </paragraph> <paragraph num="(vi)"> <text>Total amount of gaming tickets accepted;</text> </paragraph> <paragraph num="(vii)"> <text>Total count of gaming tickets accepted; and</text> </paragraph> <paragraph num="(viii)"> <text>Details required to be included in the gaming ticket transaction report required under §E(4)(a) of this regulation; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>A transaction history report which details all critical player transaction history including the date, time, amount, and disposition of each complete and incomplete transaction.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".38" heading="Jackpot Payout."> <paragraph num="A."> <text>Definition.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall utilize a multipurpose jackpot or credit meter payout document meeting the requirements of this regulation to pay:</text> <paragraph num="(1)"> <text>A jackpot not totally and automatically paid by a video lottery terminal; or</text> </paragraph> <paragraph num="(2)"> <text>Credits accumulated by a player on a video lottery terminal if:</text> <paragraph num="(a)"> <text>The number of accumulated credits exceeds the amount which may be paid utilizing a gaming ticket under Regulation .36 of this chapter;</text> </paragraph> <paragraph num="(b)"> <text>Due to malfunction, the credits cannot be paid by the video lottery terminal; or</text> </paragraph> <paragraph num="(c)"> <text>A single jackpot event requires the filing of IRS Form W-2G, Certain Gambling Winnings.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall:</text> <paragraph num="(1)"> <text>Prepare and timely file IRS Form W-2G, Certain Gambling Winnings, in accordance with IRS rules and regulations;</text> </paragraph> <paragraph num="(2)"> <text>Withhold payment of a jackpot prize to satisfy a player’s financial obligation to the State, such as the payment of child support arrearage or other requirements of State law; and</text> </paragraph> <paragraph num="(3)"> <text>Immediately report to the Commission any incident in which a video lottery terminal fails to lock up and preclude play following a single jackpot event:</text> <paragraph num="(a)"> <text>Requiring the filing of an IRS Form W-2G, Certain Gambling Winnings, as required by the IRS; or</text> </paragraph> <paragraph num="(b)"> <text>At an amount lower than the IRS requires for reporting, as approved by the Agency.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall pay a jackpot or credit meter payout of:</text> <paragraph num="(1)"> <text>$50,000 or more by check; and</text> </paragraph> <paragraph num="(2)"> <text>Less than $50,000 by:</text> <paragraph num="(a)"> <text>Cash or check; or</text> </paragraph> <paragraph num="(b)"> <text>On the request of a player, any combination of cash, gaming ticket, check, or other method of payment approved by the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator may withhold a player’s outstanding indebtedness to the facility from a jackpot prize or credit meter payout after satisfying a player’s financial obligation to the State, as required in §C(2) of this regulation;</text> </paragraph> <paragraph num="F."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the payment of a jackpot or credit meter payout not totally and automatically paid by a video lottery terminal.</text> </paragraph> <paragraph num="G."> <text>A facility operator’s internal controls shall include:</text> <paragraph num="(1)"> <text>The use of a two-part computer-generated jackpot or credit meter payout document initiated on the request of a gaming operations department attendant or gaming operations department supervisor or above after verifying the:</text> <paragraph num="(a)"> <text>Winning combination of characters on the video lottery terminal or table game and the amount of the jackpot; or</text> </paragraph> <paragraph num="(b)"> <text>Number of accumulated credits;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Unless a request for an alternate verification procedure is submitted in writing and approved by the Commission, a requirement that, if a jackpot or credit meter payout is $1,200 or more but less than $15,000, a security department employee or a gaming operations department attendant or gaming operations department supervisor or above other than the preparer of the document sign the jackpot or credit meter payout document after verifying the payment of the jackpot or credit meter payout to the player and:</text> <paragraph num="(a)"> <text>Winning combination of characters on the video lottery terminal and the amount of the jackpot; or</text> </paragraph> <paragraph num="(b)"> <text>Number of accumulated credits;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A provision that only the preparer is required to sign the jackpot or credit meter payout document if:</text> <paragraph num="(a)"> <text>A jackpot or credit meter payout is less than $10,000;</text> </paragraph> <paragraph num="(b)"> <text>A facility operator’s slot or casino management system can independently verify a jackpot or credit meter payout;</text> </paragraph> <paragraph num="(c)"> <text>The facility operator’s slot or casino management system and the central monitor and control system are fully operational; and</text> </paragraph> <paragraph num="(d)"> <text>Overrides or adjustments are not required;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A requirement that, if a jackpot or credit meter payout is $15,000 or more but less than $35,000, a security department employee or a gaming operations department supervisor or above other than the preparer of the document sign the jackpot or credit meter payout document after verifying the payment of the jackpot or credit meter payout to the player and:</text> <paragraph num="(a)"> <text>Winning combination of characters on the video lottery terminal and the amount of the jackpot; or</text> </paragraph> <paragraph num="(b)"> <text>Number of accumulated credits;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A provision that, if a jackpot or credit meter payout document generated under §G(1) of this regulation is requested by a gaming operations department supervisor or above, the verification required by §G(4) of this regulation may be completed by a gaming operations department attendant, a gaming operations department supervisor or above, or a security department employee;</text> </paragraph> <paragraph num="(6)"> <text>A requirement that, if a jackpot or credit meter payout is $35,000 or more, an operations department shift manager or higher level operations department employee other than the preparer of the document sign the jackpot or credit meter payout document after verifying the payment of the jackpot or credit meter payout to the player and:</text> <paragraph num="(a)"> <text>Winning combination of characters on the video lottery terminal and amount of the jackpot; or</text> </paragraph> <paragraph num="(b)"> <text>Number of accumulated credits;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>A provision that, if a jackpot or credit meter payout document required under §G(1) of this regulation is requested by a gaming operations department shift manager or higher level gaming operations department employee, the verification required by §G(6) of this regulation may be completed by a gaming operations department attendant, a gaming operations department supervisor or above, or a security department employee;</text> </paragraph> <paragraph num="(8)"> <text>A requirement that the following information be on a two-part computer-generated jackpot or credit meter payout document:</text> <paragraph num="(a)"> <text>Date and time;</text> </paragraph> <paragraph num="(b)"> <text>Asset number of the video lottery terminal or table game on which the jackpot was registered or credits accumulated;</text> </paragraph> <paragraph num="(c)"> <text>Winning combination of characters constituting the jackpot or a code corresponding to the winning combination of characters constituting the jackpot or an indication that a credit meter payout is to be made;</text> </paragraph> <paragraph num="(d)"> <text>Amount to be paid;</text> </paragraph> <paragraph num="(e)"> <text>Unique transaction number generated by the video lottery system;</text> </paragraph> <paragraph num="(f)"> <text>Signature or identification code of the preparer of the document;</text> </paragraph> <paragraph num="(g)"> <text>If the payout is $1,200 or more, the signature or identification code of a verifying witness in accordance with this regulation; and</text> </paragraph> <paragraph num="(h)"> <text>Unless an automated jackpot payout machine or a cash wallet is utilized to effect the payment, the signature or identification code of the cashier issuing the funds;</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>If utilized, procedures and controls applicable to a jackpot or credit meter payout:</text> <paragraph num="(a)"> <text>Using an automated jackpot payout machine meeting the requirements of Regulation .42 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>By a gaming operations department attendant from a cash wallet impressed with $10,000 or less;</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>If utilized, procedures and controls to be implemented if the facility operator resets the video lottery terminal or credit meter before the player is paid;</text> </paragraph> <paragraph num="(11)"> <text>A requirement that the surveillance department:</text> <paragraph num="(a)"> <text>Be notified of a jackpot or credit meter payout of $25,000 or more;</text> </paragraph> <paragraph num="(b)"> <text>Log all notices regarding a jackpot or credit meter payout in the surveillance log required under Regulation .12 of this chapter; and</text> </paragraph> <paragraph num="(c)"> <text>Obtain and retain in accordance with Regulation .11 of this chapter a photograph of the face of the player receiving the payout;</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>Details pertaining to:</text> <paragraph num="(a)"> <text>Payment of a jackpot or credit meter payout at the:</text> <paragraph num="(i)"> <text>Cashiers’ cage;</text> </paragraph> <paragraph num="(ii)"> <text>Video lottery terminal; and</text> </paragraph> <paragraph num="(iii)"> <text>Table game;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The use of an accounting drop box; and</text> </paragraph> <paragraph num="(c)"> <text>Audit procedures to be performed by the facility operator’s accounting department at the conclusion of each gaming day;</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>Procedures addressing unclaimed jackpots or accumulated credits abandoned on a video lottery terminal or table game;</text> </paragraph> <paragraph num="(14)"> <text>Details which establish the ability of the facility operator’s video lottery system to:</text> <paragraph num="(a)"> <text>Ensure that a two-part computer-generated jackpot or credit meter payout document is not susceptible to change or deletion from the system after preparation;</text> </paragraph> <paragraph num="(b)"> <text>Process and document system overrides or adjustments to jackpot or credit meter payouts including:</text> <paragraph num="(i)"> <text>Overrides or adjustments where the payout requested does not match the payout amount sent from the video lottery terminal to the video lottery system; and</text> </paragraph> <paragraph num="(ii)"> <text>Identification of the level of employee having override authority; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Process voided jackpot or credit meter payout documents; and</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>Procedures utilized to issue a manual jackpot or credit meter payout document which:</text> <paragraph num="(a)"> <text>Are to be used only when the video lottery system is unable to generate an jackpot or credit meter payout document;</text> </paragraph> <paragraph num="(b)"> <text>Conform to the jackpot payout or credit meter payout verification and signature requirements of this regulation;</text> </paragraph> <paragraph num="(c)"> <text>Involve use of a three-part serially prenumbered manual jackpot or credit meter payout document residing in a book, wiz machine, or functional equivalent;</text> </paragraph> <paragraph num="(d)"> <text>Require manual jackpot or credit meter payout books or their functional equivalent to be maintained in a secured locked cabinet in the cashiers’ cage; and</text> </paragraph> <paragraph num="(e)"> <text>Require the key to the cabinet in §G(15)(d) of this regulation to be:</text> <paragraph num="(i)"> <text>Controlled by the security department or the accounting department; and</text> </paragraph> <paragraph num="(ii)"> <text>Limited to sign out by a gaming operations department supervisor or above.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Electronic Jackpot or Credit Meter Payout System.</text> <paragraph num="(1)"> <text>A facility operator may use an electronic jackpot or credit meter payout system approved by the Commission to process jackpot or credit meter payout transactions.</text> </paragraph> <paragraph num="(2)"> <text>A facility operator may process jackpot or credit meter payouts using a portable device or other method approved by the Commission.</text> </paragraph> <paragraph num="(3)"> <text>The electronic jackpot or credit meter payout system shall be capable of maintaining independently, or in conjunction with another computer system:</text> <paragraph num="(a)"> <text>A record of each IRS Form W-2G in accordance with §C of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>A record of each jackpot or credit meter payout document in accordance with §G of this regulation;</text> </paragraph> <paragraph num="(c)"> <text>All signatures required by this regulation;</text> </paragraph> <paragraph num="(d)"> <text>A record of a voided transaction and the reason for the void; and</text> </paragraph> <paragraph num="(e)"> <text>Any other information the Agency staff requires.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".39" heading="Annuity Jackpot."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Annuity jackpot” means a video lottery terminal or table game jackpot in which a player wins the right to receive fixed cash payments at specified intervals; and</text> </paragraph> <paragraph num="(b)"> <text>“Discount rate” means a discount rate equal to the United States Treasury constant maturity rate for 20-year United States government securities for the week ending prior to the date of the jackpot, as identified in the applicable H.15 Statistical Release issued by the Federal Reserve Board plus 0.5 percent.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator may not offer an annuity jackpot without the prior written approval of the Commission.</text> </paragraph> <paragraph num="C."> <text>A facility operator submitting a request for approval of an annuity jackpot to the Commission shall submit details pertaining to the annuity jackpot including:</text> <paragraph num="(1)"> <text>The specific terms of:</text> <paragraph num="(a)"> <text>The annuity; and</text> </paragraph> <paragraph num="(b)"> <text>Any cash payout option;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The written trust agreement supporting the trust fund used to make future cash payments on the annuity jackpot, including details pertaining to:</text> <paragraph num="(a)"> <text>Administration and funding of the trust agreement;</text> </paragraph> <paragraph num="(b)"> <text>Liability for payments owed to a player; and</text> </paragraph> <paragraph num="(c)"> <text>Designation of a trustee;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Internal controls addressing the offer and award of an annuity jackpot in accordance with §G of this regulation; and</text> </paragraph> <paragraph num="(4)"> <text>Documentation supporting that the average payout percentage on the video lottery terminal offering the annuity jackpot will comply with this subtitle.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator that offers an annuity jackpot payable over 10 years or more may offer a player the option to be paid in a single cash payout provided that payout is equal to the present value of the annuity jackpot as calculated in §E of this regulation.</text> </paragraph> <paragraph num="E."> <text>The present value of a cash payout option on an annuity jackpot shall be determined by:</text> <paragraph num="(1)"> <text>Applying the discount rate to each of the future annuity jackpot payments;</text> </paragraph> <paragraph num="(2)"> <text>Multiplying the number of years until each jackpot payment would otherwise have been received; and</text> </paragraph> <paragraph num="(3)"> <text>Adding to that amount the amount of the first cash payment that would otherwise have been received.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A facility operator shall pay a cash payout requested by a player in lieu of an annuity jackpot in accordance with Regulation .39 of this chapter.</text> </paragraph> <paragraph num="G."> <text>A facility operator shall develop and include in the internal controls submitted to and approved under Regulation .05 of this chapter procedures addressing the offer and award of an annuity jackpot.</text> </paragraph> <paragraph num="H."> <text>A facility operator’s internal controls shall include:</text> <paragraph num="(1)"> <text>Procedures to be followed by a player to exercise a cash payout option; and</text> </paragraph> <paragraph num="(2)"> <text>Procedures utilized to document payment of an annuity jackpot.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".40" heading="Merchandise Jackpot."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Merchandise” means goods, commodities, or other things of value; and</text> </paragraph> <paragraph num="(b)"> <text>“Merchandise jackpot” means a video lottery terminal or table game jackpot in which a player wins:</text> <paragraph num="(i)"> <text>Merchandise;</text> </paragraph> <paragraph num="(ii)"> <text>A combination of a cash payout and merchandise; or</text> </paragraph> <paragraph num="(iii)"> <text>An option to choose between a cash payout and merchandise.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator may not offer a merchandise jackpot without the prior written approval of the Commission.</text> </paragraph> <paragraph num="C."> <text>A facility operator submitting a request for approval of a merchandise jackpot to the Commission shall submit details pertaining to the merchandise jackpot including:</text> <paragraph num="(1)"> <text>The specific terms of:</text> <paragraph num="(a)"> <text>The merchandise offer; and</text> </paragraph> <paragraph num="(b)"> <text>Any cash payout option;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Documentation supporting the acquisition of the merchandise and its cash equivalent value under §D of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>Internal controls addressing the offer and award of a merchandise jackpot in accordance with §H of this regulation; and</text> </paragraph> <paragraph num="(4)"> <text>Documentation supporting that the average payout percentage on the video lottery terminal offering the merchandise jackpot will comply with this subtitle.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If a facility operator offers a merchandise jackpot consisting of merchandise or an optional cash payout, the optional cash payout shall equal the cash equivalent value of the merchandise determined in accordance with §E of this regulation.</text> </paragraph> <paragraph num="E."> <text>The cash equivalent value of merchandise shall be determined as follows:</text> <paragraph num="(1)"> <text>Merchandise that the facility operator sells directly to the public in the normal course of business shall be valued at an amount equal to the full retail price normally charged for the merchandise;</text> </paragraph> <paragraph num="(2)"> <text>Merchandise that the facility operator does not sell directly to the public in the normal course of business, but which is provided directly to a player by the facility operator, shall be valued at an amount equal to the actual cost to the facility operator of the merchandise;</text> </paragraph> <paragraph num="(3)"> <text>Merchandise that is provided directly or indirectly to a player on behalf of a facility operator by a third party not related to the facility operator shall be valued at an amount equal to the actual cost to the facility operator of having the third party provide the merchandise; and</text> </paragraph> <paragraph num="(4)"> <text>Merchandise that is provided directly or indirectly to a player on behalf of a facility operator by a third party who is related to the facility operator shall be valued as if the related party were the facility operator under §E(1) and (2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="F."> <text>For the purpose of determining proceeds, the cash equivalent value of any merchandise paid as, or as a portion of, a jackpot shall be included in total winnings paid.</text> </paragraph> <paragraph num="G."> <text>A facility operator shall pay a cash payout portion of a merchandise jackpot and a cash payout requested by a player in lieu of a merchandise jackpot in accordance with Regulation .39 of this chapter.</text> </paragraph> <paragraph num="H."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the offer and award of a merchandise jackpot.</text> </paragraph> <paragraph num="I."> <text>A facility operator’s internal controls shall include:</text> <paragraph num="(1)"> <text>Procedures to be followed by a player to exercise a cash payout option; and</text> </paragraph> <paragraph num="(2)"> <text>Procedures utilized to document payment of a merchandise jackpot.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".41" heading="Automated Jackpot Payout Machine."> <paragraph num="A."> <text>A facility operator may utilize an automated jackpot payout machine meeting the requirements of this subtitle.</text> </paragraph> <paragraph num="B."> <text>A facility operator may locate an automated jackpot payout machine on the gaming floor subject to the surveillance coverage requirements of Regulation .11 of this chapter.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall, in accordance with Regulation .38D of this chapter, configure an automated jackpot payout machine to only process a jackpot or credit meter payout of less than $50,000.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the payment of a jackpot or credit meter payout utilizing an automated jackpot payout machine.</text> </paragraph> <paragraph num="E."> <text>A facility operator’s internal controls shall include procedures and controls documenting:</text> <paragraph num="(1)"> <text>A jackpot or credit meter payout transaction at an automated jackpot payout machine; and</text> </paragraph> <paragraph num="(2)"> <text>Reconciliation and replenishment of an automated jackpot payout machine.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".42" heading="Access to Bill Validators, Cash Storage, and Table Game Drop Boxes."> <paragraph num="A."> <text>Access.</text> <paragraph num="(1)"> <text>A facility operator shall control access to a bill validator, a cash storage box housed in a video lottery terminal, and a table game drop box in accordance with this regulation.</text> </paragraph> <paragraph num="(2)"> <text>Access to a bill validator shall be controlled by:</text> <paragraph num="(a)"> <text>At least one lock; and</text> </paragraph> <paragraph num="(b)"> <text>Requiring the key to the lock to be maintained by the security department.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The cash storage box shall be secured to a bill validator by two separate locks, the keys to which are different from each other, and, for the lock on the belly door or main door of the video lottery terminal:</text> <paragraph num="(a)"> <text>The key shall be controlled by the slots department in:</text> <paragraph num="(i)"> <text>A manual key box; or</text> </paragraph> <paragraph num="(ii)"> <text>An automated key tracking system;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Immediately prior to the commencement of the drop, the slots department may issue its belly door or main door key to the accounting department;</text> </paragraph> <paragraph num="(c)"> <text>A key transferred from the slots department to the accounting department shall be returned immediately following the conclusion of the drop;</text> </paragraph> <paragraph num="(d)"> <text>The facility operator shall establish sign in and sign out procedures in its internal controls documenting the transfers; and</text> </paragraph> <paragraph num="(e)"> <text>If an automated key tracking system is used, a facility operator shall require dual access from the security department and accounting department to obtain keys.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The lock on the release mechanism securing the cash storage box to the bill validator shall be controlled by the security department.</text> </paragraph> <paragraph num="(5)"> <text>Access to the contents of a cash storage box shall be controlled by:</text> <paragraph num="(a)"> <text>At least one lock; and</text> </paragraph> <paragraph num="(b)"> <text>Requiring the key to the lock to be maintained by the accounting department.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Control. A facility operator shall either:</text> <paragraph num="(1)"> <text>Assign to a cash storage box an asset number that:</text> <paragraph num="(a)"> <text>Is permanently imprinted or affixed to the outside of the cash storage box; and</text> </paragraph> <paragraph num="(b)"> <text>Corresponds to the asset number of the video lottery terminal in which the cash storage box is installed; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>With the written approval of the Commission, utilize a computerized system for:</text> <paragraph num="(a)"> <text>Assigning a unique identification number to a cash storage box; and</text> </paragraph> <paragraph num="(b)"> <text>Attributing it to the video lottery terminal in which the cash storage box is installed.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Unique identification number. A facility operator shall ensure that an asset number or unique identification number on a cash storage box is clearly visible to:</text> <paragraph num="(1)"> <text>An employee involved in removing or replacing a cash storage box; and</text> </paragraph> <paragraph num="(2)"> <text>The surveillance department.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Emergency cash storage box. A facility operator may maintain an emergency cash storage box without an asset number or a unique identification number if:</text> <paragraph num="(1)"> <text>The word “emergency” is permanently imprinted or affixed on the box; and</text> </paragraph> <paragraph num="(2)"> <text>When put into use, the cash storage box is temporarily marked with the asset number of the video lottery terminal in which it is installed.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Table Game Drop Box.</text> <paragraph num="(1)"> <text>A table game shall have a secure tamper-resistant table game drop box attached to it in which the following shall be deposited:</text> <paragraph num="(a)"> <text>Cash exchanged for gaming chips and plaques at the gaming table;</text> </paragraph> <paragraph num="(b)"> <text>Issuance copies of counter checks exchanged at the gaming table for gaming chips and plaques;</text> </paragraph> <paragraph num="(c)"> <text>Copies of fill request slips, fill slips, credit request slips, credit slips, and table inventory slips; and</text> </paragraph> <paragraph num="(d)"> <text>Other table game wagering instruments approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A table game drop box shall have:</text> <paragraph num="(a)"> <text>One lock securing the contents deposited into it;</text> </paragraph> <paragraph num="(b)"> <text>A separate lock securing the table game drop box to the gaming table, the key to which must be different from the keys to the locks securing the contents of the table game drop box;</text> </paragraph> <paragraph num="(c)"> <text>A slot opening through which currency, value chips, or poker rake chips for nonbanking games, other table game wagering instruments approved by the Commission, and required instruments can be inserted into it;</text> </paragraph> <paragraph num="(d)"> <text>A mechanical device that automatically closes and locks the slot opening upon removal of the table game drop box from the gaming table; and</text> </paragraph> <paragraph num="(e)"> <text>Permanently imprinted or impressed thereon, and clearly visible to surveillance, either:</text> <paragraph num="(i)"> <text>A number corresponding to a unique permanent number on the gaming table to which the table game drop box is attached and at least one letter indicating the type of game; and</text> </paragraph> <paragraph num="(ii)"> <text>The word “emergency”.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>In addition to the requirements of §E(2)(e) of this regulation, a table game drop box may also be identified by a bar code label that is securely affixed to the table game drop box and shall be:</text> <paragraph num="(a)"> <text>At a minimum, encoded with the information required under §E(2)(e) of this regulation; and</text> </paragraph> <paragraph num="(b)"> <text>Prepared in accordance with the facility operator’s approved internal controls.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The security department shall control the key used to release a table game drop box from a table game in a manual key box or an automated key tracking system.</text> <paragraph num="(a)"> <text>Immediately prior to the commencement of the table game count process, the security department may issue its release key to the count room supervisor for the purpose of resetting the release mechanism on empty table game drop boxes;</text> </paragraph> <paragraph num="(b)"> <text>A key transferred by the security department shall be immediately returned after the conclusion of the table game drop box count;</text> </paragraph> <paragraph num="(c)"> <text>In its internal controls, a facility operator shall establish sign-in and sign-out procedures governing key transfers and control of a key during breaks taken by count room personnel; and</text> </paragraph> <paragraph num="(d)"> <text>If an automated key tracking system is used, a facility operator shall require dual access from the security department and accounting department to obtain keys.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The keys to the table game drop box locks required under §E(2)(a) of this regulation shall be controlled by the accounting department.</text> </paragraph> <paragraph num="(6)"> <text>Before using a table game drop box labeled “Emergency” for a table game, a facility manager shall:</text> <paragraph num="(a)"> <text>Obtain verbal approval of Commission compliance personnel; and</text> </paragraph> <paragraph num="(b)"> <text>Temporarily mark the emergency table game drop box with the number of the gaming table and at least one letter indicating the game type.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".43" heading="Collection of Cash Storage and Table Game Drop Boxes."> <paragraph num="A."> <text>At least 30 days before video lottery terminal or table game operations are to commence, a facility operator shall submit to the Commission in writing a drop schedule setting forth:</text> <paragraph num="(1)"> <text>Specific pick-up days and times for collection of cash storage and table game drop boxes and requirements that:</text> <paragraph num="(a)"> <text>Cash storage boxes may not be commingled with table game drop boxes;</text> </paragraph> <paragraph num="(b)"> <text>Unless a drop box is from a table game pit that was never opened for gaming on that gaming day, table game drop boxes shall be collected once each gaming day; and</text> </paragraph> <paragraph num="(c)"> <text>The facility operator notify the Commission by telephone and in writing 1 hour in advance of changes to the table game drop box collection schedule required under §A(1)(b) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Specifications as to what areas of the gaming floor will be covered on each pick-up day; and</text> </paragraph> <paragraph num="(3)"> <text>Specific transportation routes to be utilized from the gaming floor to the count room on each pick-up day.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall notify the Commission:</text> <paragraph num="(1)"> <text>In writing, of a permanent change in the drop schedule including a pick-up day or time, area of the floor to be dropped, or transportation route; and</text> </paragraph> <paragraph num="(2)"> <text>Prior to any temporary deviation from the drop schedule.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall make readily available to the Commission:</text> <paragraph num="(1)"> <text>An access control matrix indicating which employee job descriptions are authorized to participate in the cash storage and table game drop box collection process; and</text> </paragraph> <paragraph num="(2)"> <text>A list of employees, with license numbers, who are authorized to participate in the cash storage and table game drop box collection process.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the collection of cash storage and table game drop boxes.</text> </paragraph> <paragraph num="E."> <text>A facility operator’s internal controls shall:</text> <paragraph num="(1)"> <text>Detail the actual procedures to be performed and documentation to be generated by drop team employees collecting cash storage and table game drop boxes:</text> <paragraph num="(a)"> <text>In accordance with the drop schedule; and</text> </paragraph> <paragraph num="(b)"> <text>On an emergency basis; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Require:</text> <paragraph num="(a)"> <text>Cash storage and table game drop boxes to be transported directly to, and secured in:</text> <paragraph num="(i)"> <text>The count room; or</text> </paragraph> <paragraph num="(ii)"> <text>A trolley storage area approved by the Commission under COMAR 36.03.11;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The cash storage and table game drop box collection process to involve the participation of at least three employees, at least one of whom is an employee of the:</text> <paragraph num="(i)"> <text>Security department; and</text> </paragraph> <paragraph num="(ii)"> <text>Accounting department;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Prior to the movement of a trolley containing cash storage boxes from the gaming floor into the count room, an accounting department supervisor to verify that the number of cash storage boxes being transported from the gaming floor equals the number of cash storage boxes scheduled for collection that day;</text> </paragraph> <paragraph num="(d)"> <text>Prior to the movement of a trolley containing table game drop boxes from the gaming floor into the count room, an accounting department supervisor or floorperson or above to verify that the number of table game drop boxes being transported from the gaming floor equals the number of table game drop boxes scheduled for collection; and</text> </paragraph> <paragraph num="(e)"> <text>Prior to changing the type of table game offered, or removing a video lottery terminal or table game from the gaming floor, that an emergency drop shall be conducted.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>A facility operator shall transport cash storage and table game drop boxes in an enclosed trolley secured by one lock that has a key which is controlled by the security department.</text> </paragraph> <paragraph num="G."> <text>A facility operator shall store cash storage and table game drop boxes not attached to a bill validator, including emergency cash storage and table game drop boxes that are not actively in use:</text> <paragraph num="(1)"> <text>In the count room in an area approved by the Commission;</text> </paragraph> <paragraph num="(2)"> <text>In a trolley storage area approved by the Commission under COMAR 36.03.11; or</text> </paragraph> <paragraph num="(3)"> <text>In another location at the facility approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="H."> <text>The cabinet or trolley used for storage under §G of this regulation shall be secured by one lock that has a key which is controlled by the security department in:</text> <paragraph num="(1)"> <text>A manual key box; or</text> </paragraph> <paragraph num="(2)"> <text>An automated key tracking system.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Immediately prior to the commencement of the count process, the security department may issue its key to the storage cabinet or trolley required under §G of this regulation to a count room supervisor for the purpose of allowing count room personnel to gain access to the cash storage or table game drop boxes to be counted.</text> </paragraph> <paragraph num="J."> <text>A trolley storage area utilized to store cash storage or table game drop boxes prior to the count process shall meet the design standards for a count room under Regulation .44 of this chapter.</text> </paragraph> <paragraph num="K."> <text>Except for security officers, the drop and count team members assigned to the collection of cash storage or table game drop boxes shall wear a one-piece, pocketless jumpsuit.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".44" heading="Count Room Design Standards."> <paragraph num="A."> <text>A facility operator shall have a count room designated, designed, and used for counting the contents of cash storage and table game drop boxes at a location approved by the Commission.</text> </paragraph> <paragraph num="B."> <text>A count room shall conform to the following standards:</text> <paragraph num="(1)"> <text>Be constructed of materials and have an interior design which provides maximum security over the assets stored, and the activities conducted in, the room;</text> </paragraph> <paragraph num="(2)"> <text>Meet the surveillance requirements of Regulation .11 of this chapter including audio coverage of the count process; and</text> </paragraph> <paragraph num="(3)"> <text>Be constructed with doors equipped with:</text> <paragraph num="(a)"> <text>An alarm system which tracks all ingress to and egress from the room and:</text> <paragraph num="(i)"> <text>Directly alerts the security department; or</text> </paragraph> <paragraph num="(ii)"> <text>Directly, or through a documented communications protocol, alerts the surveillance department; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A locking mechanism with key backup, or a key that is:</text> <paragraph num="(i)"> <text>Different from the key to any other door to the count room;</text> </paragraph> <paragraph num="(ii)"> <text>Different from the keys to the locks securing each cash storage and table game drop box; and</text> </paragraph> <paragraph num="(iii)"> <text>Controlled by the security department or the accounting department.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall install in its count room a table constructed of clear glass or similar transparent material to be used for the emptying, counting, and recording of the contents of cash storage and table game drop boxes.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".45" heading="Accounting Controls for a Count Room."> <paragraph num="A."> <text>Count Schedule. At least 30 days before video lottery terminal or table game operations are to commence, a facility operator shall submit to the Commission a count schedule setting forth the specific times during which cash storage and table game drop boxes are to be counted and recorded.</text> </paragraph> <paragraph num="B."> <text>Notifications. A facility operator shall:</text> <paragraph num="(1)"> <text>Notify the Commission in writing of any permanent change in the count schedule; and</text> </paragraph> <paragraph num="(2)"> <text>Notify the Commission of any temporary deviation from the count schedule.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Count Frequency.</text> <paragraph num="(1)"> <text>A facility operator shall count the contents of each cash storage box at least once every 7 days unless an alternative count schedule is submitted in writing to and approved in writing by the Commission.</text> </paragraph> <paragraph num="(2)"> <text>A facility operator shall count the contents of each table game drop box at least once each gaming day unless an alternative count schedule is submitted to, and approved in writing by, the Commission.</text> </paragraph> <paragraph num="(3)"> <text>Unless no gaming is conducted or otherwise offered at the video lottery facility, a facility operator shall count the contents of each table game drop box at least once each gaming day.</text> </paragraph> <paragraph num="(4)"> <text>The following shall be counted and recorded separately:</text> <paragraph num="(a)"> <text>Table game drop boxes from banking games; and</text> </paragraph> <paragraph num="(b)"> <text>Table game drop boxes from nonbanking games.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Procedures. A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing the counting and recording of cash storage and table game drop boxes.</text> </paragraph> <paragraph num="E."> <text>Internal Controls. A facility operator’s internal controls shall:</text> <paragraph num="(1)"> <text>Detail all hardware, software, and related equipment utilized by the facility operator to conduct the count;</text> </paragraph> <paragraph num="(2)"> <text>Detail the actual procedures to be performed and documentation to be generated by:</text> <paragraph num="(a)"> <text>Count team employees conducting the counting process; and</text> </paragraph> <paragraph num="(b)"> <text>The main bank cashier in verifying and accepting the count;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Require computerized equipment utilized to count and strap currency, gaming tickets, and promotional play instruments to:</text> <paragraph num="(a)"> <text>Conduct two separate counts;</text> </paragraph> <paragraph num="(b)"> <text>If the separate counts are not in agreement, document the discrepancy;</text> </paragraph> <paragraph num="(c)"> <text>Be capable of determining the amount of a gaming ticket or promotional play instrument by independently examining information printed on the gaming ticket or promotional play instrument and:</text> <paragraph num="(i)"> <text>Calculating the amount internally; or</text> </paragraph> <paragraph num="(ii)"> <text>Obtaining the amount directly from a gaming ticket system or promotional play system in a secure manner; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>If a gaming ticket system or promotional play system is utilized to obtain the amount of a gaming ticket or promotional play instrument, require the system to perform a calculation or integrity check to ensure that the amount of the gaming ticket or promotional play instrument has not been altered in the system in any manner since the time of issuance;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Require a count room employee to:</text> <paragraph num="(a)"> <text>Wear a one-piece, pocketless garment;</text> </paragraph> <paragraph num="(b)"> <text>Carry only a handbag or other container constructed of transparent material; and</text> </paragraph> <paragraph num="(c)"> <text>Remove the count room employee’s hands from, or return them to, a position on or above the count table or counting equipment only after holding the backs and palms of the hands straight out and exposing them to the view of other employees of the count team and a surveillance camera; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Prior to the commencement of the count, require a count room employee to notify the surveillance department and receive confirmation that recording of the count process has commenced.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Table Game Drop Box Count Requirements.</text> <paragraph num="(1)"> <text>The Commission may require that the table game drop box be conducted in the presence of a Commission compliance representative.</text> </paragraph> <paragraph num="(2)"> <text>After the contents of each table game drop box from a banking table game are counted, a member of the count team shall record, on a three-part Daily Banking Table Game Count Report or electronic equivalent prepared on a computer system, the following:</text> <paragraph num="(a)"> <text>Value of each denomination of currency counted;</text> </paragraph> <paragraph num="(b)"> <text>Total value of all denominations of currency counted;</text> </paragraph> <paragraph num="(c)"> <text>Gaming date of the items being recorded;</text> </paragraph> <paragraph num="(d)"> <text>Total number of banking table game drop boxes opened and counted; and</text> </paragraph> <paragraph num="(e)"> <text>Current date.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>After the contents of each table game drop box from a nonbanking table game are counted, a member of the count team shall record the following on a three-part Daily Nonbanking Table Game Count Report or electronic equivalent prepared on a computer system:</text> <paragraph num="(a)"> <text>Value of poker rake chips counted;</text> </paragraph> <paragraph num="(b)"> <text>Value of value chips counted;</text> </paragraph> <paragraph num="(c)"> <text>Total value of poker rake chips and value chips counted;</text> </paragraph> <paragraph num="(d)"> <text>Gaming date of the items being recorded;</text> </paragraph> <paragraph num="(e)"> <text>Total number of nonbanking table game drop boxes opened and counted; and</text> </paragraph> <paragraph num="(f)"> <text>Current date.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>After the preparation of the Daily Banking Table Game Count Report and the Daily Nonbanking Table Game Count Report, the count team members and the count room supervisor shall sign the reports attesting to the accuracy of the information recorded thereon.</text> </paragraph> <paragraph num="(5)"> <text>After the contents of all table game drop boxes have been counted, all cash, value chips, and poker rake chips shall be presented in the count room by a count team member to a main bank cashier or cage supervisor who, prior to having access to the information recorded on the Daily Banking Table Game Count Report and Daily Nonbanking Table Game Count Report, and in the presence of the count team members and, if required, a Commission compliance representative, shall recount the currency, value chips, and poker rake chips as follows:</text> <paragraph num="(a)"> <text>The main bank cashier or cage supervisor may bulk count all strapped currency;</text> </paragraph> <paragraph num="(b)"> <text>The Commission compliance representative may direct that currency straps be recounted by the main bank cashier or cage supervisor if a discrepancy is discovered during the initial bulk recount; and</text> </paragraph> <paragraph num="(c)"> <text>All partial straps, loose currency, mutilated or torn currency, value chips, and poker rake chips shall be recounted by the main bank cashier or cage supervisor.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Upon completion of the recount, the main bank cashier or cage supervisor shall attest to the accuracy of the count by signature on the Daily Banking Table Game Count Report and Daily Nonbanking Table Game Count Report.</text> </paragraph> <paragraph num="(7)"> <text>The Daily Banking Table Game Count Report and the Daily Nonbanking Table Game Count Report shall be distributed as follows:</text> <paragraph num="(a)"> <text>Immediately after leaving the count room, the count room supervisor shall deliver the original to revenue audit or place it in a secure locked box controlled by revenue audit;</text> </paragraph> <paragraph num="(b)"> <text>The Commission compliance representative who observed the count shall retain the second copy; and</text> </paragraph> <paragraph num="(c)"> <text>The cage supervisor or main bank cashier shall retain the third copy.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Immediately after leaving the count room, the count room supervisor shall deliver any additional documents contained in the table game drop boxes to revenue audit or place the documents in a secured locked box controlled by revenue audit, including:</text> <paragraph num="(a)"> <text>Requests for fills;</text> </paragraph> <paragraph num="(b)"> <text>Fill slips;</text> </paragraph> <paragraph num="(c)"> <text>Requests for credit;</text> </paragraph> <paragraph num="(d)"> <text>Credit slips;</text> </paragraph> <paragraph num="(e)"> <text>Issuance copies of counter checks; and</text> </paragraph> <paragraph num="(f)"> <text>Table inventory slips.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>A count room employee shall conduct a thorough inspection of the count room, and all counting equipment in the count room, to verify that no currency, chips, checks, vouchers, coupons, or other documentation remains in the room.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A gaming ticket or promotional play instrument accepted by a cash storage or table game drop box shall be counted and included in the calculation of proceeds without regard to the validity of the gaming ticket or promotional play instrument.</text> </paragraph> <paragraph num="H."> <text>A promotional play instrument which is not cancelled upon acceptance or during the count process shall be cancelled prior to the conclusion of the count.</text> </paragraph> <paragraph num="I."> <text>A facility operator shall report in writing to the Commission within 72 hours of the count:</text> <paragraph num="(1)"> <text>Any variance between the actual count of cash, gaming tickets, and promotional play instruments in a cash storage box as determined in the count room and the amount for that particular cash storage box recorded on the:</text> <paragraph num="(a)"> <text>Facility operator’s video lottery terminal; and</text> </paragraph> <paragraph num="(b)"> <text>If the data has been made available to the facility operator, the central monitor and control system;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The reason for the variance; and</text> </paragraph> <paragraph num="(3)"> <text>Corrective action taken or adjustments made.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".46" heading="Signs."> <paragraph num="A."> <text>A facility operator shall construct all signs required under this regulation using a color scheme and font size reasonably expected to produce a sign which is readily visible to and readable by an individual entering the facility.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall post signs containing the following messages in a conspicuous location not more than 20 feet from each customer entrance to the facility: “An individual, including an off-duty officer or agent of a local, state or federal law enforcement agency, may not possess a weapon or other device designed to be used to inflict pain or cause injury in (name of facility) without the prior written approval of the Maryland State Lottery and Gaming Control Commission.”</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".47" heading="Player Complaints."> <paragraph num="A."> <text>A facility operator shall attempt to timely resolve a dispute with a player concerning operation of a video lottery terminal, table game, or payment of alleged winnings.</text> </paragraph> <paragraph num="B."> <text>A facility operator who is unable to satisfactorily resolve a dispute with a player within 3 days of notice of the dispute shall notify the Commission of the dispute.</text> </paragraph> <paragraph num="C."> <text>On receipt of notice by the facility operator of the dispute, the Commission shall provide the player with a Commission player complaint form together with instructions for completing and submitting the form.</text> </paragraph> <paragraph num="D."> <text>The Commission shall investigate a complaint submitted to the Commission and notify the player and facility operator of its determination.</text> </paragraph> <paragraph num="E."> <text>The Commission may provide a player with a complaint form at any time upon request.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".48" heading="Possession of a Weapon in a Facility."> <paragraph num="A."> <text>Except as otherwise provided in this regulation, an individual may not possess in a facility:</text> <paragraph num="(1)"> <text>A firearm as defined in Public Safety Article, §5-101, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>An electronic control device as defined in Criminal Law Article, §4-109, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(3)"> <text>A dangerous weapon as defined in Criminal Law Article, §4-101, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(4)"> <text>Any other device or object designed to be used to inflict pain or cause injury.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The prohibition in §A of this regulation:</text> <paragraph num="(1)"> <text>Applies to all employees and contractors of the facility operator including security department employees; and</text> </paragraph> <paragraph num="(2)"> <text>Does not apply to:</text> <paragraph num="(a)"> <text>An on-duty officer or agent of a local, State or federal law enforcement agency having proper jurisdiction over the facility when the officer or agent is acting in an official capacity;</text> </paragraph> <paragraph num="(b)"> <text>An individual who is employed by an armored car company or other entity that is under contract with the facility to transport cash or a cash equivalent; or</text> </paragraph> <paragraph num="(c)"> <text>An individual authorized by the Commission to possess a weapon or device identified in §A of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>An individual requesting Commission authorization to possess a weapon identified in §A of this regulation in a facility shall submit to the Commission in writing a request documenting:</text> <paragraph num="(1)"> <text>A compelling need to possess a weapon in the facility;</text> </paragraph> <paragraph num="(2)"> <text>That the individual is lawfully in possession of the weapon under applicable federal and State law; and</text> </paragraph> <paragraph num="(3)"> <text>That the individual has received training in the possession and use of the weapon.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".49" heading="Acceptance of Tips or Gratuities."> <paragraph num="A."> <text>Except as otherwise provided in this regulation:</text> <paragraph num="(1)"> <text>A supervisory video lottery employee of a facility is prohibited from soliciting or accepting a tip or gratuity directly from a player;</text> </paragraph> <paragraph num="(2)"> <text>A video lottery employee is prohibited from soliciting a tip or gratuity from a player; and</text> </paragraph> <paragraph num="(3)"> <text>A facility operator may permit an employee who is authorized to accept a gratuity from a player to accept a gaming ticket if the gaming ticket is redeemed:</text> <paragraph num="(a)"> <text>At the cashiers’ cage; and</text> </paragraph> <paragraph num="(b)"> <text>With approval of the employee’s department supervisor, if the amount of the gaming ticket exceeds $100.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>At least 30 days before table game operations are to commence, a facility operator shall submit to the Commission for approval internal controls relating to the acceptance of tips or gratuities by dealers at banking and nonbanking table games.</text> </paragraph> <paragraph num="C."> <text>Except as provided in §G of this regulation, a dealer shall immediately deposit all tips and gratuities into a transparent locked box reserved for tips and gratuities, and:</text> <paragraph num="(1)"> <text>If roulette chips are received as a tips or gratuity, the marker button indicating the specific value of the roulette chips may not be removed until after the dealer, in the presence of a floorperson or above, has converted the roulette chips into value chips which shall then be immediately deposited in the transparent locked box reserved for tips and gratuities;</text> </paragraph> <paragraph num="(2)"> <text>Tip and gratuities shall be:</text> <paragraph num="(a)"> <text>Collected and accounted for at least once each gaming day; and</text> </paragraph> <paragraph num="(b)"> <text>Placed in a common pool for distribution pro rata among all dealers in accordance with §E of this regulation; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A facility operator may include dealer supervisors in the common pool described in §C(3) of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Upon receipt of a tip or gratuity from a player, the dealer shall extend the dealer’s arm in an overt motion and deposit the tip or gratuity in the locked box reserved for tips and gratuities.</text> </paragraph> <paragraph num="E."> <text>Tips and gratuities placed in a common pool shall be distributed pro rata among the dealers in the pool based on the number of hours worked and based on any standards for distribution established by a facility operator, which may include:</text> <paragraph num="(1)"> <text>Hours of vacation time, personal leave time, or any other authorized leave of absence in the number of hours worked by each employee; and</text> </paragraph> <paragraph num="(2)"> <text>Different full-time or part-time employees.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A distribution of tips and gratuities from a common tip pool shall occur no more than once every 7 calendar days.</text> </paragraph> <paragraph num="G."> <text>Notwithstanding the requirements in §C of this regulation, a facility operator that offers the game of poker:</text> <paragraph num="(1)"> <text>May establish a separate common pool for tips and gratuities received by its poker dealers; or</text> </paragraph> <paragraph num="(2)"> <text>If it allows a poker dealer to retain the poker dealer’s own tips and gratuities:</text> <paragraph num="(a)"> <text>Shall require tips and gratuities received by a poker dealer to be deposited in a transparent locked box assigned to the particular dealer; and</text> </paragraph> <paragraph num="(b)"> <text>Shall require that the transparent locked box be moved from table to table with the dealer.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>If a facility operator elects to follow the requirements of §G(2) of this regulation, at the end of the poker dealer's shift:</text> <paragraph num="(1)"> <text>The dealer shall take the transparent locked box assigned to the dealer to a cage cashier; and</text> </paragraph> <paragraph num="(2)"> <text>The cage cashier shall open the container and count the tips and gratuities in the presence of the poker dealer, and record the total amount of the tips and gratuities received by the dealer, and:</text> <paragraph num="(a)"> <text>Return the tips and gratuities to the dealer; or</text> </paragraph> <paragraph num="(b)"> <text>Retain all or a portion of the tips and gratuities for inclusion in the dealer's paycheck.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>If a facility operator elects to follow the requirements of §G(2) of this regulation and has established a gaming industry tip and compliance agreement, §H of this regulation does not apply.</text> </paragraph> <paragraph num="J."> <text>A facility operator shall specify in its internal controls how dealer tips and gratuities will be reported to the Internal Revenue Service.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".50" heading="Off-Site Customer Service Location."> <paragraph num="A."> <text>A facility operator may establish an off-site customer service location for a player to:</text> <paragraph num="(1)"> <text>Establish a customer deposit account and make a deposit under Regulation .23 of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>Pay a counter check under Regulation .28 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator that uses an off-site customer service location shall have internal controls that require:</text> <paragraph num="(1)"> <text>Establishment of a compliance program required under COMAR 36.03.10.07.Q, that is updated to include the off-site customer service location operation;</text> </paragraph> <paragraph num="(2)"> <text>Identification of the:</text> <paragraph num="(a)"> <text>Address of the off-site customer service location;</text> </paragraph> <paragraph num="(b)"> <text>Date the off-site customer service location is expected to open;</text> </paragraph> <paragraph num="(c)"> <text>Name and contact information of the off-site customer service location manager;</text> </paragraph> <paragraph num="(d)"> <text>Off-site customer service location telephone number(s);</text> </paragraph> <paragraph num="(e)"> <text>Off-site customer service location normal hours of operation; and</text> </paragraph> <paragraph num="(f)"> <text>An organization chart listing all positions that will have responsibility over Maryland operations related to the off-site customer service location;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Commencement of an off-site customer service location operation only after receiving Commission approval;</text> </paragraph> <paragraph num="(4)"> <text>An employee independent of the off-site customer service location operation and the cage department to submit a monthly listing and reconciliation of all outstanding credit instruments that have been transferred to branch offices to the credit issuances and payments recorded by the cage;</text> </paragraph> <paragraph num="(5)"> <text>An Off-Site Customer Service Location Report to be maintained by the licensee and updated quarterly to include the following for each off-site customer service location:</text> <paragraph num="(a)"> <text>Address and telephone numbers;</text> </paragraph> <paragraph num="(b)"> <text>If applicable, opening and closing date;</text> </paragraph> <paragraph num="(c)"> <text>Name of the off-site customer service location manager;</text> </paragraph> <paragraph num="(d)"> <text>Off-site customer service location normal hours of operation; and</text> </paragraph> <paragraph num="(e)"> <text>Year-to-date and previous calendar year dollar amounts of the following Maryland specific transactions received or disbursed, and controlled by, the off-site customer service location:</text> <paragraph num="(i)"> <text>Cash deposits, noncash deposits, and total deposits;</text> </paragraph> <paragraph num="(ii)"> <text>Cash withdrawals, noncash withdrawals, and total withdrawals; and</text> </paragraph> <paragraph num="(iii)"> <text>Cash payments on credit instruments, noncash payments on credit instruments, and total payments on credit instruments;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>The Off-Site Customer Service Location Report to be submitted to the Commission no later than 30 days after the end of the calendar year;</text> </paragraph> <paragraph num="(7)"> <text>An off-site customer service location to maintain the following records for Maryland video lottery operations:</text> <paragraph num="(a)"> <text>A separate monthly log, by day, of payments received on credit instruments that includes:</text> <paragraph num="(i)"> <text>Player’s name on an account to which a payment is being applied;</text> </paragraph> <paragraph num="(ii)"> <text>Name of individual making a payment;</text> </paragraph> <paragraph num="(iii)"> <text>Date of payment;</text> </paragraph> <paragraph num="(iv)"> <text>Amount of payment; and</text> </paragraph> <paragraph num="(v)"> <text>Whether a payment was by cash, check or other financial instrument;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A separate monthly log, by day, of all funds deposited and withdrawn that includes:</text> <paragraph num="(i)"> <text>Player’s name on an account to which the funds are being applied;</text> </paragraph> <paragraph num="(ii)"> <text>Name of the individual making the payment;</text> </paragraph> <paragraph num="(iii)"> <text>Date of deposit or withdrawal;</text> </paragraph> <paragraph num="(iv)"> <text>Amount of deposit or withdrawal;</text> </paragraph> <paragraph num="(v)"> <text>Whether the transfer of funds was made by cash, check, or other financial instrument; and</text> </paragraph> <paragraph num="(vi)"> <text>New ending account balance; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Monthly record of currency exchange rate gains and losses and money changer fees in conjunction with a player’s payment on a credit instrument that includes:</text> <paragraph num="(i)"> <text>Player’s name;</text> </paragraph> <paragraph num="(ii)"> <text>Date of receipt; and</text> </paragraph> <paragraph num="(iii)"> <text>Amount of payment; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(8)"> <text>Any costs associated with the Commission’s audit or review of an off-site customer service location operation to be reimbursed by the licensee to the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An off-site customer service location may not open until the Commission approves:</text> <paragraph num="(1)"> <text>The internal controls described in §B of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>An activation request submitted by the facility to the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".51" heading="Donation of Coins from Gaming Payouts."> <paragraph num="A."> <text>A facility operator shall offer players the opportunity to donate to the Maryland Veterans Trust Fund by providing at least one donation box or container that is:</text> <paragraph num="(1)"> <text>Clearly marked as accepting donations for the Maryland Veterans Trust Fund;</text> </paragraph> <paragraph num="(2)"> <text>Equipped with an opening that is large enough for players to donate coins, cash, gaming chips, gaming tickets, or other items that are redeemable for cash at the facility;</text> </paragraph> <paragraph num="(3)"> <text>Capable of being locked;</text> </paragraph> <paragraph num="(4)"> <text>Securely attached to a stationary object or otherwise secured to prevent unauthorized removal of the box or container; and</text> </paragraph> <paragraph num="(5)"> <text>Located near an exit, cage, customer service window or kiosk, or in any other part of the facility that experiences high player traffic.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall develop and include in the internal controls submitted to and approved under Regulation .05 of this chapter procedures and controls addressing the donation and security of items described in §A(2) of this regulation as donations to the Maryland Veterans Trust Fund.</text> </paragraph> <paragraph num="C."> <text>An item that was deposited into a Maryland Veterans Trust Fund box or container described in §A of this regulation may not be distributed as an unclaimed video lottery terminal jackpot under COMAR 36.03.01.03.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".52" heading="Promotional Offers and Tournaments."> <paragraph num="A."> <text>A facility operator shall submit terms and conditions of each promotion or tournament to the Commission no later than 14 days before the planned start of the promotion or tournament.</text> </paragraph> <paragraph num="B."> <text>Submission shall include:</text> <paragraph num="(1)"> <text>A description of the promotion or tournament;</text> </paragraph> <paragraph num="(2)"> <text>The dates and times of the promotion or tournament;</text> </paragraph> <paragraph num="(3)"> <text>The participation requirements for the promotion or tournament;</text> </paragraph> <paragraph num="(4)"> <text>If applicable, the procedure for a claim or to redeem the promotional offer;</text> </paragraph> <paragraph num="(5)"> <text>Registration procedures;</text> </paragraph> <paragraph num="(6)"> <text>Limitations on participation;</text> </paragraph> <paragraph num="(7)"> <text>The gambling assistance message required by COMAR 36.03.06.03; and</text> </paragraph> <paragraph num="(8)"> <text>Any other information the Commission requires.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Family Law Article, §10-113.1; State Government Article, §§ 9-1A- 01, 9-1A- 02, 9-1A- 04, and 9-1A-24, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01— .49 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01— .49 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D amended effective October 23, 2017 (44:21 Md. R. 985)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07B amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07F amended effective August 17, 2015 (42:16 Md. R. 1056)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07F, L amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07N, P amended effective November 14, 2022 (49:23 Md. R. 997)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08F amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11C amended effective October 23, 2017 (44:21 Md. R. 985)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11D amended effective January 2, 2017 (43:26 Md. R 1450)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11J amended effective April 27, 2026 (53:8 Md. R. 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12C amended effective July 7, 2025 (52:13 Md. R. 657); April 27, 2026 (53:8 Md. R. 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14C amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16 amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16B amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16C amended effective May 26, 2014 (41:10 Md. R. 566)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16C, D amended effective October 22, 2018 (45:21 Md. R. 976); November 14, 2022 (49:23 Md. R. 997)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16D amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18B amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19E amended effective October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20 amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20F, I amended effective March 30, 2015 (42:6 Md. R. 515); October 23, 2017 (44:21 Md. R. 985)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20F, G, I amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20F amended effective October 7, 2019 (46:20 Md. R. 848); September 6, 2021 (48:18 Md. R. 695)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20F amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20K adopted effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20K amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); July 7, 2025 (52:13 Md, R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .21 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .21D amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23E amended effective March 13, 2017 (44:5 Md. R. 294)</annotation> <annotation type="History" subtype="Administrative History">Regulation .24 amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .24D, I amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .24P, Q amended effective October 23, 2017 (44:21 Md. R. 985)</annotation> <annotation type="History" subtype="Administrative History">Regulation .26C amended effective March 30, 2015 (42:6 Md. R. 515); September 26, 2016 (43:19 Md. R. 1073); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .26D adopted effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .27 amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .27C amended effective September 26, 2016 (43:19 Md. R. 1073); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .27D amended effective October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .27E adopted effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .28 amended effective March 30, 2015 (42:6 Md. R. 515); October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .28C amended effective January 7, 2016 (42:26 Md. R. 1597); October 23, 2017 (44:21 Md. R. 985); October 7, 2019 (46:20 Md. R. 848); September 6, 2021 (48:18 Md. R. 695); July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .28C, G amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .28H amended effective March 13, 2017 (44:5 Md. R. 294)</annotation> <annotation type="History" subtype="Administrative History">Regulation .28J adopted effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .29A amended as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); amended permanently effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .29A, D amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .30 amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .31B amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .32 amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .34D amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .34E adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .35B amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .36D amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .36F amended effective December 12, 2013 (40:24 Md. R. 2018)</annotation> <annotation type="History" subtype="Administrative History">Regulation .37B amended effective November 14, 2022 (49:23 Md. R. 997)</annotation> <annotation type="History" subtype="Administrative History">Regulation .38 amended effective October 23, 2017 (44:21 Md. R. 985)</annotation> <annotation type="History" subtype="Administrative History">Regulation .38C amended effective August 17, 2015 (42:16 Md. R. 1056); May 25, 2026 (53:10 Md. R. 459)</annotation> <annotation type="History" subtype="Administrative History">Regulation .38D amended effective March 30, 2015 (42:6 Md. R. 515); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .38F amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .38G amended effective October 22, 2018 (45:21 Md. R. 976); October 7, 2019 (46:20 Md. R. 848); September 6, 2021 (48:18 Md. R. 695)</annotation> <annotation type="History" subtype="Administrative History">Regulation .38H adopted effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .41C amended effective March 30, 2015 (42:6 Md. R. 515); October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .42A, E amended effective March 30, 2015 (42:6 Md. R. 515); January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .42E amended effective October 23, 2017 (44:21 Md. R. 985)</annotation> <annotation type="History" subtype="Administrative History">Regulation .43 amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .43A amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .43B, G amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .43K adopted effective April 27, 2026 (53:8 Md. R. 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .44A amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .45 amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .45C amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .49A amended effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .49 amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .49D amended effective December 12, 2013 (40:24 Md. R. 2018)</annotation> <annotation type="History" subtype="Administrative History">Regulation .50 adopted effective March 13, 2017 (44:5 Md. R. 294)</annotation> <annotation type="History" subtype="Administrative History">Regulation .51 adopted effective October 23, 2017 (44:21 Md. R. 985)</annotation> <annotation type="History" subtype="Administrative History">Regulation .52 adopted effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> <chapter num="11" heading="Facility Standards"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <text>The terms defined in State Government Article, §9-1A-01, Annotated Code of Maryland, have the same meanings in this chapter.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Hours of Operation."> <paragraph num="A."> <text>A facility operator may not offer fewer hours of operation than provided for in State law without the prior written approval of the Commission.</text> </paragraph> <paragraph num="B."> <text>A facility operator that has received Commission approval to offer fewer hours of operation under §A of this regulation may, upon written notice to the Commission, extend its hours of operation up to and including those allowable under State law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Facility Design Standards."> <paragraph num="A."> <text>A facility operator shall, at its own expense, construct its facility in accordance with specifications established by the Commission, including:</text> <paragraph num="(1)"> <text>Computer space for the central monitor and control system contractor that is:</text> <paragraph num="(a)"> <text>Equipped with heating, ventilation, and air conditioning;</text> </paragraph> <paragraph num="(b)"> <text>Supplied with power including an uninterruptible backup power supply;</text> </paragraph> <paragraph num="(c)"> <text>Secured with a key or alternative locking mechanism maintained and controlled by representatives of the Commission and central monitor and control system operator in accordance with this subtitle;</text> </paragraph> <paragraph num="(d)"> <text>Equipped with a door that, when opened, audibly signals the facility operator’s surveillance monitoring room; and</text> </paragraph> <paragraph num="(e)"> <text>Covered by a surveillance system enabled to record all entry and exit to the computer space and activity in the area;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Equipment storage space for the central monitor and control system contractor;</text> </paragraph> <paragraph num="(3)"> <text>Equipment storage and repair space for video lottery terminal contractors;</text> </paragraph> <paragraph num="(4)"> <text>Cable infrastructure access to the gaming floor;</text> </paragraph> <paragraph num="(5)"> <text>All necessary wiring for the gaming floor, except that wiring which the Commission requires to be installed by a Commission contractor;</text> </paragraph> <paragraph num="(6)"> <text>A base and high backed seat for each video lottery terminal;</text> </paragraph> <paragraph num="(7)"> <text>At least 400 square feet of office space for use by Commission staff that is located immediately adjacent to the gaming floor and is equipped with:</text> <paragraph num="(a)"> <text>Partitioned work space, computers, telephones, copy capability, and supplies sufficient to meet the Commission’s data processing and related needs;</text> </paragraph> <paragraph num="(b)"> <text>Computer terminals permitting read only access by authorized Commission staff to any computerized slot monitoring system, casino management system, or player tracking system used by the facility operator; and</text> </paragraph> <paragraph num="(c)"> <text>Keys or alternative locking mechanisms which are under the exclusive control of the Commission;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>A surveillance system approved in writing by the Commission that is:</text> <paragraph num="(a)"> <text>Configured to provide surveillance of all video lottery terminal and table game related activities within the facility in accordance with standards established by the Commission;</text> </paragraph> <paragraph num="(b)"> <text>Enabled with a digital video recording format in accordance with standards established by the Commission; and</text> </paragraph> <paragraph num="(c)"> <text>Equipped with a monitoring station for the exclusive use of the Commission which is configured with full camera control capability over the surveillance system and is capable of overriding the camera control capability of the facility operator;</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>An alarm system connected to all emergency exits from the gaming floor which:</text> <paragraph num="(a)"> <text>Produces a distinguishable warning sound that is discernible in the vicinity of an exit when the emergency door is opened; and</text> </paragraph> <paragraph num="(b)"> <text>Requires deactivation and reset by means of a key or alternative locking mechanism maintained and controlled by the security department;</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>An area for the detention of individuals taken into custody by any law enforcement agency that has jurisdiction over the facility;</text> </paragraph> <paragraph num="(11)"> <text>Adequate space for use by the Commission in connection with conducting background investigations of applicants or licensees;</text> </paragraph> <paragraph num="(12)"> <text>Any signage required by the Commission;</text> </paragraph> <paragraph num="(13)"> <text>Communication systems capable of effecting timely communication between the facility and the Commission, law enforcement exercising proper jurisdiction over the facility, and emergency first responders; and</text> </paragraph> <paragraph num="(14)"> <text>Any other equipment or design feature required by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>State Lottery Games.</text> <paragraph num="(1)"> <text>A facility operator shall provide at least two locations at the facility for the sale of State Lottery games that are offered by or through the Commission.</text> </paragraph> <paragraph num="(2)"> <text>State Lottery game sales locations shall be situated as near as practicable to a cashiers’ cage.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Table Games Surveillance Requirements."> <paragraph num="A."> <text>Surveillance System. In addition to the surveillance system requirements in Regulation .03 of this chapter and COMAR 36.03.10, a facility operator that offers table games shall have a surveillance system that includes:</text> <paragraph num="(1)"> <text>Light sensitive cameras with lenses of sufficient magnification to allow the certificate holder to clandestinely monitor in detail:</text> <paragraph num="(a)"> <text>The gaming conducted at each gaming table in the licensed facility with sufficient clarity and coverage to simultaneously:</text> <paragraph num="(i)"> <text>Identify patrons and dealers; and</text> </paragraph> <paragraph num="(ii)"> <text>View the table and determine the configuration of wagers, card, dice and tile values and game outcomes;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The movement of cash, gaming chips, and plaques, tip boxes, and drop boxes within the facility; and</text> </paragraph> <paragraph num="(c)"> <text>Any other activity or areas designated by the Commission; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Stationary cameras dedicated to each table game offered by the facility, which shall be:</text> <paragraph num="(a)"> <text>Except for Craps, Baccarat, Roulette and Big Six Wheel, for each table game, at least one stationary camera;</text> </paragraph> <paragraph num="(b)"> <text>For a Craps table, at least two stationary cameras, with one camera covering each end of the table;</text> </paragraph> <paragraph num="(c)"> <text>For a Baccarat table:</text> <paragraph num="(i)"> <text>That is 72 inches or longer, at least two stationary cameras, with one camera covering each end of the table; or</text> </paragraph> <paragraph num="(ii)"> <text>That is less than 72 inches, at least one stationary camera covering the table;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>For a Roulette table, at least two stationary cameras, with one camera covering the Roulette wheel and one camera covering the Roulette table layout;</text> </paragraph> <paragraph num="(e)"> <text>For a Big Six Wheel, at least two stationary cameras, with one camera covering the Big Six Wheel and one camera covering the Big Six Wheel table layout;</text> </paragraph> <paragraph num="(f)"> <text>Additional cameras as required by the Commission, which may include cameras with 360-degree pan, tilt, and zoom capabilities; and</text> </paragraph> <paragraph num="(g)"> <text>Single stationary cameras that:</text> <paragraph num="(i)"> <text>Are capable of clearly identifying the entire table layout, conduct, and outcome of the game; and</text> </paragraph> <paragraph num="(ii)"> <text>May be used by a facility operator in lieu of cameras identified in §A(2)(b)—(e) of this regulation.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Required Recordings. A facility’s surveillance system must continuously record transmissions from cameras used to observe the:</text> <paragraph num="(1)"> <text>Gaming conducted at table games;</text> </paragraph> <paragraph num="(2)"> <text>Collection of drop boxes and tip boxes;</text> </paragraph> <paragraph num="(3)"> <text>Distribution of cards, dice, and tiles to gaming pits;</text> </paragraph> <paragraph num="(4)"> <text>Inspection of cards, dice, and tiles in the gaming pits and at the gaming tables;</text> </paragraph> <paragraph num="(5)"> <text>Retrieval of cards, dice, and tiles from the gaming pits at the end of the gaming day; and</text> </paragraph> <paragraph num="(6)"> <text>Delivery of cards, dice, and tiles to the location designated and approved by the Commission for inspection, cancellation, destruction, or, if applicable, packaging for reuse.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Retention.</text> <paragraph num="(1)"> <text>The surveillance recordings required under §B of this regulation shall be retained for a minimum of 14 days.</text> </paragraph> <paragraph num="(2)"> <text>A surveillance recording of suspicious activity, suspected or alleged regulatory violations, or suspected or alleged criminal activity shall be retained for a minimum of 30 days.</text> </paragraph> <paragraph num="(3)"> <text>A surveillance recording shall be made available for review upon request by law enforcement.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Commission approval of monitoring rooms.</text> <paragraph num="(1)"> <text>Prior to the commencement of table game operations, a facility shall submit to the Commission a revised minimum staffing submission for the facility operator’s surveillance monitor rooms.</text> </paragraph> <paragraph num="(2)"> <text>The minimum staffing submission must consider the size and layout of the licensed facility as well as the number of table games and must at all times provide for surveillance of activities inside and outside the licensed facility.</text> </paragraph> <paragraph num="(3)"> <text>A facility operator may not implement a surveillance plan, or an amendment to a surveillance plan or minimum staffing submission, without prior Commission approval.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Gaming Floor Plan."> <paragraph num="A."> <text>At least 60 days before video lottery terminal or table game operations are to commence, a facility operator shall submit a floor plan depicting its gaming floor and all restricted areas to the Commission for review and written approval.</text> </paragraph> <paragraph num="B."> <text>A facility operator may not commence operations until its gaming floor plan is approved in writing by the Commission.</text> </paragraph> <paragraph num="C."> <text>A gaming floor plan that a facility operator submits to the Commission shall:</text> <paragraph num="(1)"> <text>Be drawn to 1/8 inch scale, unless another scale is approved by the Commission;</text> </paragraph> <paragraph num="(2)"> <text>Be certified by an architect licensed to practice in Maryland;</text> </paragraph> <paragraph num="(3)"> <text>Depict the gaming floor with a notation as to:</text> <paragraph num="(a)"> <text>Total square feet;</text> </paragraph> <paragraph num="(b)"> <text>Total square feet utilized for the placement of video lottery terminals and table games;</text> </paragraph> <paragraph num="(c)"> <text>Total square feet reserved for future placement of video lottery terminals and table games;</text> </paragraph> <paragraph num="(d)"> <text>Each video lottery terminal or table game location, identified by number and notation as to whether it is proposed for present use or reserved for future use;</text> </paragraph> <paragraph num="(e)"> <text>Number of video lottery terminal and table game locations proposed for use on the gaming floor;</text> </paragraph> <paragraph num="(f)"> <text>Number of video lottery terminal and table game locations reserved for future use;</text> </paragraph> <paragraph num="(g)"> <text>Each seat on the gaming floor;</text> </paragraph> <paragraph num="(h)"> <text>Perimeter of the gaming floor;</text> </paragraph> <paragraph num="(i)"> <text>A clearly delineated route for an individual who is not allowed to play video lottery terminals or table games to bypass the gaming floor;</text> </paragraph> <paragraph num="(j)"> <text>Each automated bill breaker, gaming ticket redemption, coupon redemption, and jackpot payout machine; and</text> </paragraph> <paragraph num="(k)"> <text>Each security department zone, including a notation as to whether it is a fixed or roving post;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Depict all restricted areas within the facility with a notation as to:</text> <paragraph num="(a)"> <text>Cashiers' cage, any satellite cashiers' cage, and ancillary offices, inclusive of each cashiers' cage window location and location number;</text> </paragraph> <paragraph num="(b)"> <text>Computer space allocated to the central monitor and control system;</text> </paragraph> <paragraph num="(c)"> <text>Count rooms and any trolley storage areas;</text> </paragraph> <paragraph num="(d)"> <text>An area designated for the storage or repair of equipment or video lottery terminals or table game equipment;</text> </paragraph> <paragraph num="(e)"> <text>Information technology department operations centers;</text> </paragraph> <paragraph num="(f)"> <text>Progressive controller locations;</text> </paragraph> <paragraph num="(g)"> <text>Surveillance monitoring room;</text> </paragraph> <paragraph num="(h)"> <text>Vault and armored car bay locations; and</text> </paragraph> <paragraph num="(i)"> <text>Any area designated as restricted by the facility operator in its Commission-approved internal controls;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Depict each surveillance camera with a notation as to camera type and location number; and</text> </paragraph> <paragraph num="(6)"> <text>Depict each automated teller machine installed in accordance with COMAR 36.03.03.07.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If a gaming floor includes an outdoor area, in addition to the requirements of §C of this regulation an operator shall submit to the Commission a gaming floor plan that includes:</text> <paragraph num="(1)"> <text>The amenities that the operator intends to offer in the outdoor area;</text> </paragraph> <paragraph num="(2)"> <text>An affidavit from the chief executive officer attesting that the outdoor area and its intended use meet all applicable local and State requirements; and</text> </paragraph> <paragraph num="(3)"> <text>A plan for player and equipment safety during inclement weather.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator may not implement any change to its approved gaming floor plan without the prior written approval of Agency staff.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Issuance of an Operation License."> <paragraph num="A."> <text>A facility operator may not commence video lottery operations until the Commission has issued an operation license.</text> </paragraph> <paragraph num="B."> <text>The operation license issued by the Commission shall specify:</text> <paragraph num="(1)"> <text>Date and time at which operations may commence;</text> </paragraph> <paragraph num="(2)"> <text>Maximum square footage of gaming floor; and</text> </paragraph> <paragraph num="(3)"> <text>Maximum number of video lottery terminals which may be operated by the facility operator under the operation license.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The initial 15-year term of an operation license shall commence with the date the Commission issues an operation license.</text> </paragraph> <paragraph num="D."> <text>The Commission may issue an operation license subject to conditions.</text> </paragraph> <paragraph num="E."> <text>The Commission may issue an operation license after determining that:</text> <paragraph num="(1)"> <text>The facility operator’s proposed hours of operation comply with State Government Article, §9-1A-23, Annotated Code of Maryland, and Regulation .02 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>The facility complies with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and Regulation .03 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>All video lottery terminals and associated equipment have been tested and comply with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and any standards established by the Commission;</text> </paragraph> <paragraph num="(4)"> <text>The gaming floor plan complies with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and Regulation .05 of this chapter;</text> </paragraph> <paragraph num="(5)"> <text>The facility operator’s internal controls comply with State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and COMAR 36.03.10;</text> </paragraph> <paragraph num="(6)"> <text>The facility operator is prepared to implement the internal controls, surveillance, and security procedures that are necessary to ensure that the operation of the video lottery terminals and video lottery facility is conducted safely and legally;</text> </paragraph> <paragraph num="(7)"> <text>The facility operator’s employees are:</text> <paragraph num="(a)"> <text>Licensed and registered with the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Trained in the performance of their responsibilities;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>The facility is prepared in all respects to receive the public;</text> </paragraph> <paragraph num="(9)"> <text>The facility operator has complied with any additional pre-opening conditions imposed by the Commission; and</text> </paragraph> <paragraph num="(10)"> <text>The facility operator has successfully completed a test period.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Permanent Facility."> <paragraph num="A."> <text>A facility operator shall commence operation of video lottery terminals in a permanent facility within 18 months after the date the Commission issues an operation license.</text> </paragraph> <paragraph num="B."> <text>The permanent facility must be located at the location for which the Video Lottery Facility Location Commission awarded a video lottery operation license.</text> </paragraph> <paragraph num="C."> <text>The Commission may approve an extension of time for the commencement of operations if:</text> <paragraph num="(1)"> <text>A facility operator submits a written request for an extension; and</text> </paragraph> <paragraph num="(2)"> <text>The Commission determines that extenuating circumstances exist that are beyond the control of the facility operator which have prevented the facility operator from complying with §A of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Commission may:</text> <paragraph num="(1)"> <text>Approve an extension of 6 months to comply with §A of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>Not grant more than two extensions to a facility operator.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If a facility operator fails to comply with the requirements of this regulation, its operation license shall be revoked and shall automatically revert to the State.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Temporary Facility."> <paragraph num="A."> <text>The Commission may issue an operation license for a temporary facility.</text> </paragraph> <paragraph num="B."> <text>A temporary facility must comply with the requirements this chapter.</text> </paragraph> <paragraph num="C."> <text>Upon the written submission of a facility operator, the Commission may authorize a deviation from the requirements of Regulation .05 of this chapter when it issues an operation license for a temporary facility.</text> </paragraph> <paragraph num="D."> <text>A facility shall be operational in a permanent facility no later than 30 months after the Commission issues an operation license.</text> </paragraph> <paragraph num="E."> <text>If the Commission issues an operation license for a temporary facility, the facility operator shall be responsible for all costs associated with the transition from a temporary facility to a permanent facility, including the cost of relocating the:</text> <paragraph num="(1)"> <text>Central control monitor and control computer system;</text> </paragraph> <paragraph num="(2)"> <text>Video lottery terminals; and</text> </paragraph> <paragraph num="(3)"> <text>Associated equipment.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">§§9-1A-02, 9-1A-04, 9-1A-11, and 9-1A-23, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective September 26, 2016 (43:19 Md. R. 1073); April 27, 2026 (53:8 Md. R. 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective August 17, 2015 (42:16 Md. R. 1056)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05C, E amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="12" heading="Transportation and Testing of Video Lottery Terminals and Table Game Equipment"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>Transport; Transportation.</text> <paragraph num="(a)"> <text>“Transport” or “transportation” means any shipping, transfer, delivery, or other movement of a video lottery terminal or table game equipment into or out of the State, or between facilities within the State.</text> </paragraph> <paragraph num="(b)"> <text>“Transport” or “transportation” does not include the movement of a video lottery facility or table game equipment within a facility.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Written notice” means information provided to the Commission in an electronic or written form or format designated by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Compliance with Federal Law."> <text>A person who transports a video lottery terminal or table game equipment shall comply with applicable provisions of 15 U.S.C. §§1171—1178, commonly known as the Johnson Act.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Transportation."> <paragraph num="A."> <text>Unless otherwise directed by the Commission, a person shall submit a written notice to the Commission prior to transporting a video lottery terminal or table game equipment.</text> </paragraph> <paragraph num="B."> <text>A person proposing to transport a video lottery terminal or table game equipment shall submit to the Commission a written notice containing:</text> <paragraph num="(1)"> <text>Name and address of person initiating transportation;</text> </paragraph> <paragraph num="(2)"> <text>Reason for transportation;</text> </paragraph> <paragraph num="(3)"> <text>Method of transportation;</text> </paragraph> <paragraph num="(4)"> <text>Name of and address of carrier;</text> </paragraph> <paragraph num="(5)"> <text>Anticipated beginning and end dates of transportation;</text> </paragraph> <paragraph num="(6)"> <text>Name and address of destination;</text> </paragraph> <paragraph num="(7)"> <text>Name and address of manufacturer;</text> </paragraph> <paragraph num="(8)"> <text>Manufacturer's serial number;</text> </paragraph> <paragraph num="(9)"> <text>Model number;</text> </paragraph> <paragraph num="(10)"> <text>Description; and</text> </paragraph> <paragraph num="(11)"> <text>Any other information requested by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The person proposing to transport or transporting a video lottery terminal or table game equipment shall promptly provide the Commission with written notice of any changes to the information already submitted as required under §B of this regulation.</text> </paragraph> <paragraph num="D."> <text>A person transporting a video lottery terminal or table game equipment shall plainly and clearly label the package so that the name and address of the shipper and recipient, and the contents of the package, may be readily ascertained during an inspection of the outside of the package.</text> </paragraph> <paragraph num="E."> <text>After delivery of a video lottery terminal or table game equipment, the facility to which the terminal is delivered shall promptly provide the Commission with written notice that includes:</text> <paragraph num="(1)"> <text>Date video lottery terminal or table game equipment was received;</text> </paragraph> <paragraph num="(2)"> <text>Date video lottery terminal or table game equipment will be placed into operation; and</text> </paragraph> <paragraph num="(3)"> <text>Any other information requested by the Commission.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Storage.</text> <paragraph num="(1)"> <text>If a video lottery terminal or table game equipment will not be placed into operation upon delivery to a facility, the facility shall provide the Commission with written notice that includes:</text> <paragraph num="(a)"> <text>Identification of the video lottery terminal or table game equipment;</text> </paragraph> <paragraph num="(b)"> <text>Reason for storage;</text> </paragraph> <paragraph num="(c)"> <text>Storage facility location; and</text> </paragraph> <paragraph num="(d)"> <text>Any other information requested by the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A facility shall store a video lottery terminal or table game equipment only in a manner that the Commission has approved.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Registration."> <paragraph num="A."> <text>The Commission shall maintain a register of each video lottery terminal and specified table game equipment placed in operation in the State.</text> </paragraph> <paragraph num="B."> <text>The table game equipment for which the Commission shall maintain a register under §A of this regulation is:</text> <paragraph num="(1)"> <text>Table games that contain an approved table layout;</text> </paragraph> <paragraph num="(2)"> <text>Automated table game shuffling devices;</text> </paragraph> <paragraph num="(3)"> <text>Table game progressive controllers; and</text> </paragraph> <paragraph num="(4)"> <text>Any other table game equipment specified by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>For each video lottery terminal placed into operation, the Commission shall incorporate the video lottery terminal into the Commission's central monitoring system.</text> </paragraph> <paragraph num="D."> <text>For each piece of video lottery and table gaming equipment specified in §B of this regulation that is placed into operation, the Commission shall:</text> <paragraph num="(1)"> <text>Assign a registration control number; and</text> </paragraph> <paragraph num="(2)"> <text>Affix a Commission registration tag.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A video lottery terminal or gaming table may not be transported out of the State unless the Commission:</text> <paragraph num="(1)"> <text>Approves the action; and</text> </paragraph> <paragraph num="(2)"> <text>If the video lottery terminal is being permanently removed from the State, removes the registration tag.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Testing."> <paragraph num="A."> <text>The Commission may test video lottery terminals and associated equipment for:</text> <paragraph num="(1)"> <text>Accuracy;</text> </paragraph> <paragraph num="(2)"> <text>Compatibility with the central monitor and control system; and</text> </paragraph> <paragraph num="(3)"> <text>Any other function that the Commission determines may be necessary to validate the proper functionality and performance of the terminals and equipment.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission may test table game rules and table game equipment for:</text> <paragraph num="(1)"> <text>Accuracy; and</text> </paragraph> <paragraph num="(2)"> <text>Any other function the Commission determines is necessary to validate the proper functionality and performance of table game equipment.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Request for Authorization."> <paragraph num="A."> <text>A facility shall obtain prior written Commission authorization before taking any of the following actions with respect to a video lottery terminal or table game equipment in its facility:</text> <paragraph num="(1)"> <text>Placing a video lottery terminal or table game into operation;</text> </paragraph> <paragraph num="(2)"> <text>Relocating a video lottery terminal or table game within the facility;</text> </paragraph> <paragraph num="(3)"> <text>Converting a game theme or table layout;</text> </paragraph> <paragraph num="(4)"> <text>Converting a play denomination on a video lottery terminal;</text> </paragraph> <paragraph num="(5)"> <text>Changing percentage payout;</text> </paragraph> <paragraph num="(6)"> <text>Changing an erasable programmable read only memory chip;</text> </paragraph> <paragraph num="(7)"> <text>Changing a jackpot lockup amount;</text> </paragraph> <paragraph num="(8)"> <text>Changing a configuration;</text> </paragraph> <paragraph num="(9)"> <text>Performing a substantial replacement of parts;</text> </paragraph> <paragraph num="(10)"> <text>Implementing any variation, composite, or new feature of a table game; or</text> </paragraph> <paragraph num="(11)"> <text>Performing any other action that materially alters or interrupts the operation of a video lottery terminal or table game.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Before the Commission may authorize an action described in §A of this regulation, a facility shall submit to the Commission written notice of the request that includes:</text> <paragraph num="(1)"> <text>Description of proposed action;</text> </paragraph> <paragraph num="(2)"> <text>Location of action;</text> </paragraph> <paragraph num="(3)"> <text>Start and end dates and times;</text> </paragraph> <paragraph num="(4)"> <text>Estimated “go live” date for the video lottery terminal or table game;</text> </paragraph> <paragraph num="(5)"> <text>Approval of the manufacturer of the affected video lottery terminal or table game equipment;</text> </paragraph> <paragraph num="(6)"> <text>Approval of the operator of the central monitor and control system for video lottery terminals; and</text> </paragraph> <paragraph num="(7)"> <text>Any other information requested by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notice of Changes. A facility shall promptly provide the Commission with written notice of any changes to the information already submitted under §A or B of this regulation.</text> </paragraph> <paragraph num="D."> <text>Commission Response to Request for Authorization.</text> <paragraph num="(1)"> <text>The Commission may impose additional requirements on the facility or the manufacturer before authorizing the action.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may deny approval of the action.</text> </paragraph> <paragraph num="(3)"> <text>A facility shall notify the Commission if the action is not completed as approved by the Commission.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-04, 9-1A-15, and 9-1A-21, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)</annotation> </annotations> </chapter> </subtitle> <subtitle num="04" heading="Video Lottery Terminals"> <chapter num="01" heading="Video Lottery Technical Standards"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In addition to the terms defined in State Government Article, §9-1A-01, Annotated Code of Maryland and in COMAR 36.03.01.02, which have the same meaning in this subtitle, in this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Double-up” means an optional wager on a video lottery terminal, the availability of which is triggered by a preceding winning event, in which the player has a mathematically equal probability of doubling the amount wagered or losing the entire amount placed at risk.</text> </paragraph> <paragraph num="(2)"> <text>“Linked” means to connect with.</text> </paragraph> <paragraph num="(3)"> <text>“Modification” means a change or alteration that:</text> <paragraph num="(a)"> <text>Affects the conduct of play or operation of equipment, a system, or software including a change or alteration to a:</text> <paragraph num="(i)"> <text>Control program;</text> </paragraph> <paragraph num="(ii)"> <text>Graphics program; or</text> </paragraph> <paragraph num="(iii)"> <text>Payout percentage; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Does not include the replacement of one approved component with an identical component.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Progressive controller” means a device independent of the operating system of a video lottery terminal that calculates and transmits to a video lottery terminal the amount of an available progressive jackpot based on:</text> <paragraph num="(a)"> <text>A pre-established rate of progression; and</text> </paragraph> <paragraph num="(b)"> <text>Denomination of the video lottery terminal.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Progressive jackpot” means a jackpot offered by a video lottery terminal that may increase uniformly in value based on wagers as the video lottery terminal is played.</text> </paragraph> <paragraph num="(6)"> <text>“Random number generator” means a computational or physical functionality within the operating system of an electronic device which ensures the observed unpredictability and absence of pattern in a set of elements or events that have definite probabilities of occurrence.</text> </paragraph> <paragraph num="(7)"> <text>“RAM” means random access memory.</text> </paragraph> <paragraph num="(8)"> <text>“RAM clear” means a process that results in the zeroing out of any:</text> <paragraph num="(a)"> <text>Meter information;</text> </paragraph> <paragraph num="(b)"> <text>Configuration information; or</text> </paragraph> <paragraph num="(c)"> <text>Data stored in the random access memory of a video lottery terminal.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Skill” means the application of intelligence and specific knowledge to achieve the best result when a video lottery terminal offers a choice of options during game play.</text> </paragraph> <paragraph num="(10)"> <text>“Theme” means a concept, subject matter, and methodology of design of a video lottery terminal.</text> </paragraph> <paragraph num="(11)"> <text>“Version” means a sequence number or designation assigned to equipment, a system, or software to identify the initial release of the equipment, system, or software and to track changes or revisions to the initial release.</text> </paragraph> <paragraph num="(12)"> <text>“Wide area progressive system” means a system independent of the operating system of a video lottery terminal that calculates and transmits to video lottery terminals linked in two or more facilities in or outside the State the amount of an available progressive jackpot based on:</text> <paragraph num="(a)"> <text>A pre-established rate of progression; and</text> </paragraph> <paragraph num="(b)"> <text>Denomination of the video lottery terminal.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Testing, Certification, and Approval of Equipment, a System, or Software."> <paragraph num="A."> <text>A manufacturer may not offer the equipment, systems, or software enumerated in §E of this regulation, or a modification to a Commission-approved version of that equipment, system or software, for sale, lease, distribution, or use in a facility without it having been:</text> <paragraph num="(1)"> <text>Tested and certified by an independent certified testing laboratory; and</text> </paragraph> <paragraph num="(2)"> <text>Approved in writing by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator may not purchase, lease, or otherwise acquire the right to install, utilize, or make available for use the equipment, systems, or software enumerated in §E(3) of this regulation, or a modification to a Commission-approved version of that equipment, system, or software, without it having been:</text> <paragraph num="(1)"> <text>Tested and certified by an independent certified testing laboratory; and</text> </paragraph> <paragraph num="(2)"> <text>Approved in writing by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator may not modify, alter, or tamper with the central monitor and control system or a video lottery terminal.</text> </paragraph> <paragraph num="D."> <text>Modification, alteration, or tampering with the central monitor and control system or a video lottery terminal may result in the immediate suspension of an operation license by the Commission.</text> </paragraph> <paragraph num="E."> <text>The testing, certification, and approval requirements of this regulation shall, at a minimum, apply to:</text> <paragraph num="(1)"> <text>The central monitor and control system;</text> </paragraph> <paragraph num="(2)"> <text>A video lottery terminal;</text> </paragraph> <paragraph num="(3)"> <text>The interoperability between a video lottery terminal and:</text> <paragraph num="(a)"> <text>A video lottery terminal data system;</text> </paragraph> <paragraph num="(b)"> <text>A casino management system;</text> </paragraph> <paragraph num="(c)"> <text>A gaming ticket system;</text> </paragraph> <paragraph num="(d)"> <text>A promotional play system;</text> </paragraph> <paragraph num="(e)"> <text>A player tracking system;</text> </paragraph> <paragraph num="(f)"> <text>A ticket redemption unit;</text> </paragraph> <paragraph num="(g)"> <text>An automated jackpot payout machine;</text> </paragraph> <paragraph num="(h)"> <text>An external bonusing system;</text> </paragraph> <paragraph num="(i)"> <text>A cashless funds transfer system; and</text> </paragraph> <paragraph num="(j)"> <text>A progressive controller; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Other equipment, systems, or software designated for testing and certification by the Commission.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A prototype of equipment, a system, or software required to be tested, certified, and approved under §E of this regulation, or a modification to a Commission-approved version of that equipment, system, or software shall, at a minimum, be tested for:</text> <paragraph num="(1)"> <text>Overall operational integrity;</text> </paragraph> <paragraph num="(2)"> <text>Conformance with State Government Article, §9-1A, Annotated Code of Maryland, and this subtitle;</text> </paragraph> <paragraph num="(3)"> <text>The technical standards enumerated in any Request for Proposals, issued by the Commission pertaining to the equipment, system, or software, as amended or clarified; and</text> </paragraph> <paragraph num="(4)"> <text>If applicable, compatibility and compliance with the central monitor and control system communication protocol designated by the Commission, including the ability to communicate with the central monitor and control system on a real-time basis for:</text> <paragraph num="(a)"> <text>Meter retrieval; and</text> </paragraph> <paragraph num="(b)"> <text>Video lottery terminal:</text> <paragraph num="(i)"> <text>Status; and</text> </paragraph> <paragraph num="(ii)"> <text>Activation and deactivation.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Until such time as the Commission determines it has assembled a list of approved equipment, systems, and software sufficient to meet the needs of facility operators under State Government Article, §9-1A-21(d), Annotated Code of Maryland, notwithstanding the requirements of Regulations .03 and .04 of this chapter, the Commission may permit an abbreviated testing and approval process in accordance with the requirements of Regulation .05 of this chapter.</text> </paragraph> <paragraph num="H."> <text>If a facility operator develops any equipment, system, or software that is functionally equivalent to that enumerated in §E(3) of this regulation, or modifies a Commission-approved version of that equipment, system, or software, the facility operator shall be subject to the testing, certification, and approval requirements of this chapter to the same extent as if the equipment, system, or software were developed or modified by a manufacturer.</text> </paragraph> <paragraph num="I."> <text>A manufacturer shall pay all costs of testing, certification, and approval under this chapter including, but not limited to, all costs associated with:</text> <paragraph num="(1)"> <text>Transportation;</text> </paragraph> <paragraph num="(2)"> <text>Equipment and technical services required by an independent certified testing laboratory to conduct the testing and certification process; and</text> </paragraph> <paragraph num="(3)"> <text>Implementation testing.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Submission of Equipment, a System, or Software for Testing and Certification."> <paragraph num="A."> <text>A manufacturer seeking Commission approval for equipment, a system, or software other than a video lottery terminal shall submit the equipment, system, or software to an independent certified testing laboratory.</text> </paragraph> <paragraph num="B."> <text>The submission required by §A of this regulation shall include the following:</text> <paragraph num="(1)"> <text>A request for testing and certification under Regulation .02F of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>A prototype of the equipment, system, or software identical in all mechanical, electrical, electronic, and other respects to that for which Commission approval is sought;</text> </paragraph> <paragraph num="(3)"> <text>Technical and operator manuals;</text> </paragraph> <paragraph num="(4)"> <text>A description of all security methodologies incorporated into the design of the equipment, system, or software including, if applicable:</text> <paragraph num="(a)"> <text>Password protection;</text> </paragraph> <paragraph num="(b)"> <text>Encryption methodology for all alterable media;</text> </paragraph> <paragraph num="(c)"> <text>Auto-authentication of software;</text> </paragraph> <paragraph num="(d)"> <text>Network redundancy; and</text> </paragraph> <paragraph num="(e)"> <text>Back-up and recovery procedures;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A schematic or network diagram of the major components of the equipment, system, or software with a:</text> <paragraph num="(a)"> <text>Description of each component's functionality; and</text> </paragraph> <paragraph num="(b)"> <text>Software object report;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>A description of the data flow, in narrative and in schematic form, including:</text> <paragraph num="(a)"> <text>Data cabling; and</text> </paragraph> <paragraph num="(b)"> <text>If applicable, communications methodology for multi-site applications;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>A list of:</text> <paragraph num="(a)"> <text>Computer operating systems;</text> </paragraph> <paragraph num="(b)"> <text>Third-party software; and</text> </paragraph> <paragraph num="(c)"> <text>Available system reports;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>System software and hardware installation procedures;</text> </paragraph> <paragraph num="(9)"> <text>A description of the method used to authenticate software;</text> </paragraph> <paragraph num="(10)"> <text>All source code;</text> </paragraph> <paragraph num="(11)"> <text>If applicable, a description of the features offered by the equipment, system, or software with regard to:</text> <paragraph num="(a)"> <text>Player and employee card functions; and</text> </paragraph> <paragraph num="(b)"> <text>Reconciliation procedures;</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>If applicable, a description of any interoperability testing conducted by the manufacturer, including test results identified by manufacturer, model, and software identification and version number, for the submitted equipment, system, or software's connection to any of the following:</text> <paragraph num="(a)"> <text>Video lottery terminal;</text> </paragraph> <paragraph num="(b)"> <text>Video lottery terminal data system;</text> </paragraph> <paragraph num="(c)"> <text>Casino management system;</text> </paragraph> <paragraph num="(d)"> <text>Gaming ticket system;</text> </paragraph> <paragraph num="(e)"> <text>Promotional play system;</text> </paragraph> <paragraph num="(f)"> <text>Player tracking system;</text> </paragraph> <paragraph num="(g)"> <text>Ticket redemption unit;</text> </paragraph> <paragraph num="(h)"> <text>Automated jackpot payout machine;</text> </paragraph> <paragraph num="(i)"> <text>External bonusing system;</text> </paragraph> <paragraph num="(j)"> <text>Cashless funds transfer system; and</text> </paragraph> <paragraph num="(k)"> <text>Progressive controller;</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>If applicable, a description, accompanied by diagrams, schematics, and specifications, of the creation of a:</text> <paragraph num="(a)"> <text>Gaming ticket and the redemption options available; and</text> </paragraph> <paragraph num="(b)"> <text>Promotional play instrument and the redemption options available; and</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>If requested by the Commission or an independent certified testing laboratory:</text> <paragraph num="(a)"> <text>Any specialized hardware, software, or other equipment, inclusive of technical support and maintenance, required to conduct the testing and certification process; and</text> </paragraph> <paragraph num="(b)"> <text>Additional documentation pertaining to the equipment, system, or software being tested.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A manufacturer seeking Commission approval for a modification to a Commission-approved version of equipment, a system, or software other than a video lottery terminal shall submit the proposed modification to an independent certified testing laboratory.</text> </paragraph> <paragraph num="D."> <text>An independent certified testing laboratory selected by a manufacturer or the Commission to test a modification may be, but need not be, the testing laboratory that performed the initial prototype testing.</text> </paragraph> <paragraph num="E."> <text>The submission required by §C of this regulation shall include the following:</text> <paragraph num="(1)"> <text>A request for testing and certification under Regulation .02F of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>The equipment, system, or software proposed for modification;</text> </paragraph> <paragraph num="(3)"> <text>A description of the proposed modification, accompanied by applicable diagrams, schematics, and specifications;</text> </paragraph> <paragraph num="(4)"> <text>A narrative disclosing the purpose for the modification;</text> </paragraph> <paragraph num="(5)"> <text>If requested by the Commission or an independent certified testing laboratory:</text> <paragraph num="(a)"> <text>Any specialized hardware, software, or other equipment, inclusive of technical support and maintenance, required to conduct the testing and certification process; and</text> </paragraph> <paragraph num="(b)"> <text>Additional documentation pertaining to the testing of the proposed modification.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>At the conclusion of testing of a prototype or modification of equipment, a system, or software other than a video lottery terminal, an independent certified testing laboratory shall issue to the Commission a certification report in an:</text> <paragraph num="(1)"> <text>Electronic form; and</text> </paragraph> <paragraph num="(2)"> <text>Format acceptable to the Commission.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Upon receipt of a certification report from an independent certified testing laboratory, but prior to a decision to approve a prototype or modification of equipment, a system, or software other than a video lottery terminal, the Commission may require a trial period, as follows:</text> <paragraph num="(1)"> <text>A trial period shall be of a scope and duration the Commission deems appropriate to assess the operation of the prototype or modification in a live gaming environment;</text> </paragraph> <paragraph num="(2)"> <text>A trial period shall be subject to compliance by the manufacturer and the facility operator with specific terms and conditions required by the Commission, which may include:</text> <paragraph num="(a)"> <text>Development and implementation of product specific accounting and internal controls; and</text> </paragraph> <paragraph num="(b)"> <text>Periodic data reporting to the Commission;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission may authorize the receipt of compensation by a manufacturer during a trial period; and</text> </paragraph> <paragraph num="(4)"> <text>The Commission may order termination of a trial period at any time upon a determination by the Commission that:</text> <paragraph num="(a)"> <text>A manufacturer or facility operator has not complied with the terms and conditions required by the Commission; or</text> </paragraph> <paragraph num="(b)"> <text>Equipment, a system, or software is not performing as expected.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Upon receipt of a certification report from an independent certified testing laboratory, the Commission may:</text> <paragraph num="(1)"> <text>Approve the prototype or modification, with or without specific conditions;</text> </paragraph> <paragraph num="(2)"> <text>Reject the prototype or modification;</text> </paragraph> <paragraph num="(3)"> <text>Require additional testing; or</text> </paragraph> <paragraph num="(4)"> <text>Require a trial period under §G of this regulation.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Commission approval of a prototype or modification does not constitute a guarantee of its safety or reliability.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Submission of a Video Lottery Terminal for Testing and Certification."> <paragraph num="A."> <text>A manufacturer seeking Commission approval for a video lottery terminal shall submit the video lottery terminal to an independent certified testing laboratory.</text> </paragraph> <paragraph num="B."> <text>The submission required by §A of this regulation shall include the following:</text> <paragraph num="(1)"> <text>A request for testing and certification under Regulation .02F of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>A prototype of the video lottery terminal identical in all mechanical, electrical, electronic, and other respects to that for which Commission approval is sought;</text> </paragraph> <paragraph num="(3)"> <text>Technical and operator manuals;</text> </paragraph> <paragraph num="(4)"> <text>A description of the video lottery terminal including:</text> <paragraph num="(a)"> <text>Diagrams, schematics, and specifications; and</text> </paragraph> <paragraph num="(b)"> <text>Documentation with regard to the manner in which the video lottery terminal was tested and emulated by the manufacturer prior to submission;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A copy, on electronically readable media, of all:</text> <paragraph num="(a)"> <text>Executable software, including data and graphics information;</text> </paragraph> <paragraph num="(b)"> <text>Source code for programs that have no commercial use other than as a component of a video lottery terminal; and</text> </paragraph> <paragraph num="(c)"> <text>Graphical images displayed on a video lottery terminal including, if applicable:</text> <paragraph num="(i)"> <text>Reel strips or card images;</text> </paragraph> <paragraph num="(ii)"> <text>Rules and instructions; and</text> </paragraph> <paragraph num="(iii)"> <text>Pay tables;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>A mathematical explanation of the average and theoretical return to the player, listing all:</text> <paragraph num="(a)"> <text>Assumptions; and</text> </paragraph> <paragraph num="(b)"> <text>Steps in the formula including the treatment of bonus pays;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>A description of:</text> <paragraph num="(a)"> <text>Security methodologies incorporated into the design of a video lottery terminal including, if applicable:</text> <paragraph num="(i)"> <text>Encryption methodology for all alterable media;</text> </paragraph> <paragraph num="(ii)"> <text>Auto-authentication of software; and</text> </paragraph> <paragraph num="(iii)"> <text>Recovery capability of a video lottery terminal on power interruption;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Tower light functions indicating the corresponding condition;</text> </paragraph> <paragraph num="(c)"> <text>Error conditions and the corresponding action required; and</text> </paragraph> <paragraph num="(d)"> <text>Use and function of available:</text> <paragraph num="(i)"> <text>Dip switch settings; and</text> </paragraph> <paragraph num="(ii)"> <text>Configurable options;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(8)"> <text>A description, accompanied by supporting test results, of the random number generator or generators used to determine the results of a wager, including a detailed explanation of:</text> <paragraph num="(a)"> <text>Operational methodology; and</text> </paragraph> <paragraph num="(b)"> <text>The manner by which the random number generator including the random number selection process is impervious to:</text> <paragraph num="(i)"> <text>Outside influences;</text> </paragraph> <paragraph num="(ii)"> <text>Interference from electro-magnetic, electrostatic, and radio frequencies; and</text> </paragraph> <paragraph num="(iii)"> <text>Influence from ancillary equipment by means of data communications;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(9)"> <text>If a video lottery terminal requires or permits player skill in the theoretical derivations of the payout return, the source of strategy;</text> </paragraph> <paragraph num="(10)"> <text>If required, a cross-reference between the meters denoted on the video lottery terminal and the meters required by:</text> <paragraph num="(a)"> <text>Regulation .16 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>The technical standards enumerated in any Request for Proposals issued by the Commission pertaining to a video lottery terminal, as amended or clarified;</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>Program storage media including:</text> <paragraph num="(a)"> <text>EPROMs;</text> </paragraph> <paragraph num="(b)"> <text>EEPROMs; and</text> </paragraph> <paragraph num="(c)"> <text>Any type of alterable media for video lottery terminal software;</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>Proof that a video lottery terminal has been inspected and approved for customer safety by a reputable testing laboratory;</text> </paragraph> <paragraph num="(13)"> <text>If applicable, a description of any interoperability testing conducted by the manufacturer, including test results identified by manufacturer, model and software identification and version number, for the submitted video lottery terminal’s connection to any of the following:</text> <paragraph num="(a)"> <text>Video lottery terminal data system;</text> </paragraph> <paragraph num="(b)"> <text>Casino management system;</text> </paragraph> <paragraph num="(c)"> <text>Gaming ticket system;</text> </paragraph> <paragraph num="(d)"> <text>Promotional play system;</text> </paragraph> <paragraph num="(e)"> <text>Player tracking system;</text> </paragraph> <paragraph num="(f)"> <text>Ticket redemption unit;</text> </paragraph> <paragraph num="(g)"> <text>Automated jackpot payout machine;</text> </paragraph> <paragraph num="(h)"> <text>External bonusing system;</text> </paragraph> <paragraph num="(i)"> <text>Cashless funds transfer system; and</text> </paragraph> <paragraph num="(j)"> <text>Progressive controller;</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>A description of the manner in which the video lottery terminal was or will be tested for compatibility and compliance with the central monitor and control system communication protocol designated by the Commission including the ability to communicate with the central monitor and control system on a real time basis for:</text> <paragraph num="(a)"> <text>Meter retrieval; and</text> </paragraph> <paragraph num="(b)"> <text>Video lottery terminal:</text> <paragraph num="(i)"> <text>Status; and</text> </paragraph> <paragraph num="(ii)"> <text>Activation and deactivation;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(15)"> <text>Specialized hardware, software, or testing equipment, inclusive of technical support and maintenance, requested by an independent certified testing laboratory including, but not limited to:</text> <paragraph num="(a)"> <text>An emulator for a specified microprocessor;</text> </paragraph> <paragraph num="(b)"> <text>Personal computers;</text> </paragraph> <paragraph num="(c)"> <text>Extender cables for CPU boards;</text> </paragraph> <paragraph num="(d)"> <text>Target reel strips; and</text> </paragraph> <paragraph num="(e)"> <text>Door defeats; and</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>If requested by the Commission or an independent certified testing laboratory, additional documentation pertaining to the video lottery terminal being tested including, but not limited to:</text> <paragraph num="(a)"> <text>Hardware block diagrams of the major subsystems;</text> </paragraph> <paragraph num="(b)"> <text>A complete set of schematics for all subsystems;</text> </paragraph> <paragraph num="(c)"> <text>A wiring harness connection diagram; and</text> </paragraph> <paragraph num="(d)"> <text>Technical specifications for any microprocessor or microcontroller.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A manufacturer seeking Commission approval for a modification to a Commission-approved version of a video lottery terminal, including a change in theme, shall submit the modification to an independent certified testing laboratory.</text> </paragraph> <paragraph num="D."> <text>An independent certified testing laboratory selected by a manufacturer or the Commission to test a modification may, but need not be, the testing laboratory that performed the initial prototype testing.</text> </paragraph> <paragraph num="E."> <text>The submission required by §C of this regulation shall include the following:</text> <paragraph num="(1)"> <text>A request for testing and certification under Regulation .02F of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>The video lottery terminal proposed for modification;</text> </paragraph> <paragraph num="(3)"> <text>A description of the proposed modification to the video lottery terminal, accompanied by applicable diagrams, schematics, and specifications;</text> </paragraph> <paragraph num="(4)"> <text>If a change in theme is involved, a copy of the graphical images displayed on the video lottery terminal including, if applicable:</text> <paragraph num="(a)"> <text>Reel strips and card images;</text> </paragraph> <paragraph num="(b)"> <text>Rules and instructions; and</text> </paragraph> <paragraph num="(c)"> <text>Pay tables;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>If a change in the manner in which the average payout percentage is achieved, or a change in the theoretical return to the player is otherwise involved, a mathematical explanation of the return to the player, listing all:</text> <paragraph num="(a)"> <text>Assumptions; and</text> </paragraph> <paragraph num="(b)"> <text>Steps in the formula including the treatment of bonus pays;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If the proposed modification requires or permits player skill in the theoretical derivations of the payout return, the source of strategy;</text> </paragraph> <paragraph num="(7)"> <text>A description of the manner in which the video lottery terminal was or will be tested for compatibility and compliance with the central monitor and control system communication protocol designated by the Commission including the ability to communicate with the central monitor and control system on a real time basis for:</text> <paragraph num="(a)"> <text>Meter retrieval; and</text> </paragraph> <paragraph num="(b)"> <text>Video lottery terminal:</text> <paragraph num="(i)"> <text>Status; and</text> </paragraph> <paragraph num="(ii)"> <text>Activation and deactivation; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(8)"> <text>If requested by the Commission or an independent certified testing laboratory:</text> <paragraph num="(a)"> <text>Any specialized hardware, software, or other equipment, inclusive of technical support and maintenance, required to conduct the testing and certification process; and</text> </paragraph> <paragraph num="(b)"> <text>Additional documentation pertaining to the testing of the proposed modification.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>At the conclusion of testing of a prototype or modification to a video lottery terminal, an independent certified testing laboratory shall issue to the Commission a certification report in an:</text> <paragraph num="(1)"> <text>Electronic form; and</text> </paragraph> <paragraph num="(2)"> <text>Format acceptable to the Commission.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Upon receipt of a certification report from an independent certified testing laboratory, but prior to a decision to approve a prototype or modification to a video lottery terminal, the Commission may require a trial period, as follows:</text> <paragraph num="(1)"> <text>A trial period shall be of a scope and duration the Commission deems appropriate to assess the operation of the video lottery terminal in a live gaming environment;</text> </paragraph> <paragraph num="(2)"> <text>A trial period shall be subject to compliance by the manufacturer and the facility operator with specific terms and conditions required by the Commission, which may include:</text> <paragraph num="(a)"> <text>Development and implementation of product specific accounting and internal controls; and</text> </paragraph> <paragraph num="(b)"> <text>Periodic data reporting to the Commission;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission may authorize the receipt of compensation by a manufacturer during a trial period; and</text> </paragraph> <paragraph num="(4)"> <text>The Commission may order termination of the trial period at any time upon a determination by the Commission that:</text> <paragraph num="(a)"> <text>A manufacturer or facility operator has not complied with the terms and conditions required by the Commission; or</text> </paragraph> <paragraph num="(b)"> <text>The video lottery terminal is not performing as expected.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Upon receipt of a certification report from an independent certified testing laboratory, the Commission may:</text> <paragraph num="(1)"> <text>Approve the prototype or modification, with or without specific conditions;</text> </paragraph> <paragraph num="(2)"> <text>Reject the prototype or modification;</text> </paragraph> <paragraph num="(3)"> <text>Require additional testing; or</text> </paragraph> <paragraph num="(4)"> <text>Require a trial period under §G of this regulation.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Commission approval of a prototype or modification of a video lottery terminal does not constitute a guarantee of its safety or reliability.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Abbreviated Testing and Certification."> <paragraph num="A."> <text>Except with regard to the Commission’s central monitor and control system, a manufacturer may, during the period specified in Regulation .02G of this chapter, seek Commission approval of a prototype or proposed modification under an abbreviated testing and certification process for any equipment, system, or software required to be tested and certified under Regulation .02E of this chapter.</text> </paragraph> <paragraph num="B."> <text>A manufacturer shall submit the equipment, system or software to an independent certified testing laboratory.</text> </paragraph> <paragraph num="C."> <text>The submission required by §B of this regulation shall include the following:</text> <paragraph num="(1)"> <text>A request for abbreviated testing and certification under this regulation naming the state within the United States on whose regulations and technical standards the manufacturer proposes the Commission rely;</text> </paragraph> <paragraph num="(2)"> <text>A prototype of the equipment, system, or software identical in all mechanical, electrical, electronic, and other respects to that for which Commission approval is sought;</text> </paragraph> <paragraph num="(3)"> <text>A certification signed by the chief engineer of the manufacturer, or the engineer in charge of the division of the manufacturer responsible for producing the equipment or system submitted, representing that:</text> <paragraph num="(a)"> <text>The prototype or proposed modification is identical in all mechanical, electrical, electronic and other respects to one which has been tested and certified by:</text> <paragraph num="(i)"> <text>A testing laboratory operated by the named state; or</text> </paragraph> <paragraph num="(ii)"> <text>An independent certified testing laboratory on behalf of the named state;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The manufacturer is licensed in good standing in the named state;</text> </paragraph> <paragraph num="(c)"> <text>The submitted equipment, system, or software has all regulatory approvals prerequisite to sale, lease, or distribution in the named state;</text> </paragraph> <paragraph num="(d)"> <text>The testing standards of the named state are comprehensive, thorough and involve substantially similar technical requirements and safeguards as those required by:</text> <paragraph num="(i)"> <text>State Government Article, §9-1A, Annotated Code of Maryland, and this subtitle; and</text> </paragraph> <paragraph num="(ii)"> <text>The technical standards enumerated in any Request for Proposals issued by the Commission pertaining to the equipment, system, or software, as amended or clarified; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>The manufacturer has fully disclosed any conditions or limitations placed by the named state on the operation or placement of the equipment, system, or software:</text> <paragraph num="(i)"> <text>At the time of approval; or</text> </paragraph> <paragraph num="(ii)"> <text>Subsequent to approval;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Copies of the submission package, and any amendments thereto, filed in the named state including any:</text> <paragraph num="(a)"> <text>Checklists;</text> </paragraph> <paragraph num="(b)"> <text>Correspondence, review letters or certification letters issued by:</text> <paragraph num="(i)"> <text>The testing laboratory operated by the named state; or</text> </paragraph> <paragraph num="(ii)"> <text>An independent certified testing laboratory on behalf of the named state; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Final approval letter issued by the named state;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>If applicable, a description of any interoperability testing conducted by the manufacturer, including test results identified by manufacturer, model and software identification and version number, for the submitted equipment or system’s connection to a:</text> <paragraph num="(a)"> <text>Video lottery terminal;</text> </paragraph> <paragraph num="(b)"> <text>Video lottery terminal data system;</text> </paragraph> <paragraph num="(c)"> <text>Casino management system;</text> </paragraph> <paragraph num="(d)"> <text>Gaming ticket system;</text> </paragraph> <paragraph num="(e)"> <text>Promotional play system;</text> </paragraph> <paragraph num="(f)"> <text>Player tracking system;</text> </paragraph> <paragraph num="(g)"> <text>Ticket redemption unit;</text> </paragraph> <paragraph num="(h)"> <text>Automated jackpot payout machine;</text> </paragraph> <paragraph num="(i)"> <text>External bonusing system;</text> </paragraph> <paragraph num="(j)"> <text>Cashless funds transfer system; and</text> </paragraph> <paragraph num="(k)"> <text>Progressive controller;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If the submission involves a video lottery terminal, a description of the manner in which the video lottery terminal was or will be tested for compatibility and compliance with the central monitor and control system communication protocol designated by the Commission including the ability to communicate with the central monitor and control system on a real time basis for:</text> <paragraph num="(a)"> <text>Meter retrieval; and</text> </paragraph> <paragraph num="(b)"> <text>Video lottery terminal:</text> <paragraph num="(i)"> <text>Status; and</text> </paragraph> <paragraph num="(ii)"> <text>Activation and deactivation; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(7)"> <text>If requested by the Commission or an independent certified testing laboratory:</text> <paragraph num="(a)"> <text>Any specialized hardware, software, or other equipment, inclusive of technical support and maintenance, required to conduct the testing and certification process; and</text> </paragraph> <paragraph num="(b)"> <text>Additional documentation pertaining to the equipment, system, or software being tested.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>At the conclusion of testing of a prototype or modification, an independent certified testing laboratory conducting abbreviated testing and certification shall issue to the Commission a certification report in an:</text> <paragraph num="(1)"> <text>Electronic form; and</text> </paragraph> <paragraph num="(2)"> <text>Format acceptable to the Commission.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The certification report issued under §D of this regulation shall state:</text> <paragraph num="(1)"> <text>Whether the independent certified testing laboratory concurs with the manufacturer that the testing standards of the named state are comprehensive, thorough and involve substantially similar technical requirements and safeguards as those required by:</text> <paragraph num="(a)"> <text>State Government Article, §9-1A, Annotated Code of Maryland, and this subtitle; and</text> </paragraph> <paragraph num="(b)"> <text>The technical standards enumerated in any Request for Proposals issued by the Commission pertaining to the equipment, system, or software, as amended or clarified;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Whether the documentation required by §C(3) of this regulation is complete;</text> </paragraph> <paragraph num="(3)"> <text>With respect to any deficiency noted relating to §E(1) or (2) of this regulation, the nature of the non-compliance; and</text> </paragraph> <paragraph num="(4)"> <text>The results of any supplemental testing performed, including interoperability testing with the central monitor and control system.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Upon receipt of a certification report from an independent certified testing laboratory, the Commission may act with regard to:</text> <paragraph num="(1)"> <text>Acceptance of the testing standards of the named state; and</text> </paragraph> <paragraph num="(2)"> <text>The specific equipment, system, or software by:</text> <paragraph num="(a)"> <text>Approving the prototype or modification, with or without specific conditions;</text> </paragraph> <paragraph num="(b)"> <text>Rejecting the prototype or modification;</text> </paragraph> <paragraph num="(c)"> <text>Requiring additional testing; or</text> </paragraph> <paragraph num="(d)"> <text>Requiring a trial period under this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Commission approval of a prototype or proposed modification does not constitute a guarantee of its safety or reliability.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Concatenated Binary Files and Related Documentation."> <text>A manufacturer shall deliver each video lottery terminal to the Commission with:</text> <paragraph num="A."> <text>The concatenated binary file signature corresponding to the Commission-approved version of the video lottery terminal in a form satisfactory to the:</text> <paragraph num="(1)"> <text>Commission; and</text> </paragraph> <paragraph num="(2)"> <text>Central monitor and control system operator; and</text> </paragraph> </paragraph> <paragraph num="B."> <text>A file, in a form satisfactory to the Commission, describing the video lottery terminal including:</text> <paragraph num="(1)"> <text>Manufacturer’s:</text> <paragraph num="(a)"> <text>Serial number;</text> </paragraph> <paragraph num="(b)"> <text>Model number;</text> </paragraph> <paragraph num="(c)"> <text>Software identification number; and</text> </paragraph> <paragraph num="(d)"> <text>Version number;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Denomination or a designation as multi-denomination;</text> </paragraph> <paragraph num="(3)"> <text>Cabinet style;</text> </paragraph> <paragraph num="(4)"> <text>An indication as to whether the video lottery terminal is a:</text> <paragraph num="(a)"> <text>Progressive; or</text> </paragraph> <paragraph num="(b)"> <text>Wide area progressive;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Configured for use with a:</text> <paragraph num="(a)"> <text>Gaming ticket system;</text> </paragraph> <paragraph num="(b)"> <text>External bonusing system; and</text> </paragraph> <paragraph num="(c)"> <text>Cashless funds transfer system; and</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Other information required by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Emergency Modification of Equipment, a System, or Software."> <paragraph num="A."> <text>Notwithstanding the requirements of Regulations .03C and .04C of this chapter, the Commission may, on submission of a written request by a manufacturer, authorize installation of a modification to equipment, a system, or software required to be tested, certified, and approved by the Commission under Regulation .02E of this chapter, on an emergency basis.</text> </paragraph> <paragraph num="B."> <text>A written request submitted by a manufacturer to the Commission shall document the:</text> <paragraph num="(1)"> <text>Equipment, system, or software proposed for emergency modification including:</text> <paragraph num="(a)"> <text>Software identification number; and</text> </paragraph> <paragraph num="(b)"> <text>Version number;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Facility;</text> </paragraph> <paragraph num="(3)"> <text>Reason for the emergency modification; and</text> </paragraph> <paragraph num="(4)"> <text>Proposed date and time of installation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A manufacturer may not install an emergency modification without the written approval of the Commission.</text> </paragraph> <paragraph num="D."> <text>No more than 15 days following receipt of Commission authorization on an emergency modification, a manufacturer shall submit a modification identical to that receiving emergency authorization for testing, certification and approval under this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Notice of Known or Suspected Defect."> <paragraph num="A."> <text>A manufacturer shall immediately notify the Commission of any known or suspected defect or malfunction in equipment, system, or software required to be tested, certified, and approved by the Commission under Regulation .02E of this chapter.</text> </paragraph> <paragraph num="B."> <text>A manufacturer shall:</text> <paragraph num="(1)"> <text>Confirm in writing any notice given to the Commission verbally pursuant to §A of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>If required by the Commission, notify a facility operator of any known or suspected defect or malfunction in equipment, a system, or software installed in its facility.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall immediately notify the Commission of any known or suspected defect or malfunction in equipment, system, or software required to be tested, certified, and approved by the Commission under Regulation .02E of this regulation.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall confirm in writing any notice given to the Commission verbally pursuant to §C of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Revocation."> <paragraph num="A."> <text>The Commission may, at any time, revoke an approval granted to equipment, a system, or software under Regulation .03, .04 or .05 of this chapter on a determination by the Commission that the equipment, system, or software does not comply with:</text> <paragraph num="(1)"> <text>State Government Article, §9-1A, Annotated Code of Maryland, and this subtitle;</text> </paragraph> <paragraph num="(2)"> <text>The technical standards enumerated in any Request for Proposals issued by the Commission pertaining to the equipment, system, or software, as amended or clarified; and</text> </paragraph> <paragraph num="(3)"> <text>The central monitor and control system communication protocol designated by the Commission including the ability to communicate with the central monitor and control system on a real time basis for:</text> <paragraph num="(a)"> <text>Meter retrieval; and</text> </paragraph> <paragraph num="(b)"> <text>Video lottery terminal:</text> <paragraph num="(i)"> <text>Status; and</text> </paragraph> <paragraph num="(ii)"> <text>Activation and deactivation.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission may, at any time, impose additional conditions on the operation or placement of Commission-approved equipment, systems, or software.</text> </paragraph> <paragraph num="C."> <text>A revocation by the Commission of an approval under §A of this regulation does not give rise to an appeal right.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Communication Requirements."> <paragraph num="A."> <text>A manufacturer shall enable a video lottery terminal to communicate with the Commission’s central monitor and control system through any gaming industry communication protocols designated by the Commission.</text> </paragraph> <paragraph num="B."> <text>Unless the Commission notifies a manufacturer in writing to the contrary, SAS v.6.02 shall be the designated communication protocol.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Average Payout Percentage."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Game cycle” means the finite set of all possible combinations of symbols on a video lottery terminal, including spinning reels or card images or other forms of video display or both.</text> </paragraph> <paragraph num="(b)"> <text>“Theoretical payout percentage” means the total value of jackpots expected to be paid by a video lottery terminal divided by the total value of video lottery terminal wagers expected to be made on that video lottery terminal during the game cycle.</text> </paragraph> <paragraph num="(c)"> <text>“Wager level” means all credit combinations available on a video lottery terminal from the minimum bet to the maximum bet.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A video lottery terminal shall have an average payout percentage which:</text> <paragraph num="(1)"> <text>Is 85 percent or more; and</text> </paragraph> <paragraph num="(2)"> <text>Does not exceed 100 percent.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notwithstanding the requirements of §B of this regulation, in no event may a video lottery terminal have a theoretical payout percentage of less than 85 percent.</text> </paragraph> <paragraph num="D."> <text>Unless the paytables have been previously approved by the Commission, a facility may not make available for play a video lottery terminal with an average payout percentage which exceeds 95 percent without the written approval of the Commission.</text> </paragraph> <paragraph num="E."> <text>A facility’s gaming floor shall be configured to collectively achieve, at all times, an average payout percentage which:</text> <paragraph num="(1)"> <text>Exceeds 85 percent; and</text> </paragraph> <paragraph num="(2)"> <text>Does not exceed 95 percent.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Commission and the facility operator shall, in selecting video lottery terminals and configuring a facility’s gaming floor, rely on the video lottery terminal’s theoretical payout percentage.</text> </paragraph> <paragraph num="G."> <text>Once a facility is operational, the Commission shall:</text> <paragraph num="(1)"> <text>Conduct periodic reviews to ensure that average payout percentages, on an average annual basis, comply with the requirements of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>If necessary, require the modification or replacement of a video lottery terminal to ensure compliance with the average payout percentage requirements of this regulation.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A payout percentage that may be affected by reason of skill shall meet the payout percentage requirements of this regulation factoring in a method of play that provides the greatest return to a player.</text> </paragraph> <paragraph num="I."> <text>A video lottery terminal:</text> <paragraph num="(1)"> <text>May not:</text> <paragraph num="(a)"> <text>Offer a winning combination where the odds exceed 50,000,000 to one; and</text> </paragraph> <paragraph num="(b)"> <text>Alter any function based on an internal computation of payout percentage; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Shall be designed to ensure that all possible combinations in the game cycle are independent of each other.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Maximum Bet."> <paragraph num="A."> <text>A video lottery terminal may not accept a maximum bet on a single game event in excess of $500 without the written approval of the Commission.</text> </paragraph> <paragraph num="B."> <text>The $500 maximum bet in §A of this regulation does not apply to a double-up option on a winning wager.</text> </paragraph> <paragraph num="C."> <text>For an electronic table game, each wager on a separate outcome is a single game event.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Video Lottery Terminal Lock-up."> <paragraph num="A."> <text>A video lottery terminal shall be configured to lock-up and preclude further play following a single jackpot that requires the filing of IRS Form W-2G, Certain Gambling Winnings.</text> </paragraph> <paragraph num="B."> <text>A single jackpot event shall include the exhaustion of all available double-up and bonus wager options on a winning wager.</text> </paragraph> <paragraph num="C."> <text>A video lottery terminal may be configured to permit the transfer, upon lock-up, of a jackpot amount to the credit meter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Random Number Generator."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Chi-squared analysis” means a statistical test for goodness of fit which measures the difference between a theoretical result and an observed result.</text> </paragraph> <paragraph num="(b)"> <text>“Correlation test” means a statistical test that determines whether each card, number, symbol or stop position is independently chosen without regard to another card, number, symbol, or stop within that game play.</text> </paragraph> <paragraph num="(c)"> <text>“Runs test” means a statistical test that determines the existence of recurring patterns within a set of data.</text> </paragraph> <paragraph num="(d)"> <text>“Series correlation test” means a statistical test that determines whether each card, number, symbol or stop position is independently chosen without regard to another card, number, symbol, or stop in the previous game.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A video lottery terminal shall determine the occurrence of a specific card, number, symbol, or stop by utilizing:</text> <paragraph num="(1)"> <text>One random number generator; or</text> </paragraph> <paragraph num="(2)"> <text>Two or more random number generators working collectively.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A video lottery terminal’s selection process shall be considered random if it meets the following statistical requirements:</text> <paragraph num="(1)"> <text>A chi-squared analysis meeting a 99 percent confidence level;</text> </paragraph> <paragraph num="(2)"> <text>A runs test meeting a 99 percent confidence level;</text> </paragraph> <paragraph num="(3)"> <text>A correlation test meeting a 99 percent confidence level;</text> </paragraph> <paragraph num="(4)"> <text>A series correlation test meeting a 99 percent confidence level; and</text> </paragraph> <paragraph num="(5)"> <text>Any other test of randomness determined appropriate by the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A random number generator including its random number selection process shall be designed in a manner that ensures it is impervious to:</text> <paragraph num="(1)"> <text>Outside influences;</text> </paragraph> <paragraph num="(2)"> <text>Interference from electro-magnetic, electrostatic, and radio frequencies; and</text> </paragraph> <paragraph num="(3)"> <text>Influence from ancillary equipment by means of data communication.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Once a random selection process has occurred, a video lottery terminal:</text> <paragraph num="(1)"> <text>Shall display an accurate representation of the randomly selected outcome; and</text> </paragraph> <paragraph num="(2)"> <text>May not make a secondary decision which affects the result shown to the player at the video lottery terminal.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Rules of Play."> <paragraph num="A."> <text>Definition.</text> <paragraph num="(1)"> <text>In this regulation the following term has the meaning indicated.</text> </paragraph> <paragraph num="(2)"> <text>Term Defined. “Strategy choice” means a particular play option on a video lottery terminal that requires the use of skill to consistently achieve the best result.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A video lottery terminal shall be equipped to display to a player while idle the:</text> <paragraph num="(1)"> <text>Schedule of credits awarded with each winning combination;</text> </paragraph> <paragraph num="(2)"> <text>Applicable rules of play; and</text> </paragraph> <paragraph num="(3)"> <text>Any maximum bet limit imposed under Regulation .12 of this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission may prohibit the display of any rules of play it determines to be:</text> <paragraph num="(1)"> <text>Incomplete;</text> </paragraph> <paragraph num="(2)"> <text>Confusing;</text> </paragraph> <paragraph num="(3)"> <text>Misleading; or</text> </paragraph> <paragraph num="(4)"> <text>Inconsistent with the rules of play required by the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>For rules of play, the schedule of credits awarded with each winning combination may not include possible aggregate awards achievable from free plays.</text> </paragraph> <paragraph num="E."> <text>A video lottery terminal that includes a strategy choice shall include in its rules of play mathematically sufficient information for a player to use optimal skill unless the player:</text> <paragraph num="(1)"> <text>Is not required to make an additional wager; and</text> </paragraph> <paragraph num="(2)"> <text>Cannot lose any credits earned prior to the strategy choice.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A manufacturer or facility operator may not attach a sticker or other removable device that concerns rules of play to the face, glass, or screen of a video lottery terminal without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Video Lottery Terminal Meters."> <paragraph num="A."> <text>A video lottery terminal shall be equipped with:</text> <paragraph num="(1)"> <text>The meter functions enumerated in §§C, D, and F of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Meters which:</text> <paragraph num="(a)"> <text>Continuously and automatically increment in credits equal to:</text> <paragraph num="(i)"> <text>The denomination of the video lottery terminal; or</text> </paragraph> <paragraph num="(ii)"> <text>Cents; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Are accessible and legible without access to the interior of the video lottery terminal; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A device, mechanism, or method for retaining electronically accounting data for all meters required under this regulation for a period of not less than 10 days subsequent to a power loss.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A video lottery terminal may not be equipped with any device, mechanism, or method which allows or causes the electronic accounting meters required under this regulation to automatically clear or zero out.</text> </paragraph> <paragraph num="C."> <text>A video lottery terminal shall be equipped with the following cumulative meters, all of which shall be at least ten digits in length:</text> <paragraph num="(1)"> <text>A coin-in meter that:</text> <paragraph num="(a)"> <text>Accumulates the total number of credits wagered whether the wager involves:</text> <paragraph num="(i)"> <text>Currency;</text> </paragraph> <paragraph num="(ii)"> <text>A gaming ticket;</text> </paragraph> <paragraph num="(iii)"> <text>A promotional play instrument;</text> </paragraph> <paragraph num="(iv)"> <text>Downloaded credits; or</text> </paragraph> <paragraph num="(v)"> <text>Credits won; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Does not accumulate subsequent double-up wagers or other wagers of intermediate winnings accumulated during a game event;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A series of meters which collectively account for the number of credits won:</text> <paragraph num="(a)"> <text>A coin-out meter that accumulates the total number of credits paid out automatically by the video lottery terminal as a result of winning wagers including a payout:</text> <paragraph num="(i)"> <text>By gaming ticket; and</text> </paragraph> <paragraph num="(ii)"> <text>Directly to a credit meter;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A progressive payout meter that accumulates the total number of credits paid out automatically by the video lottery terminal as a result of a progressive jackpot;</text> </paragraph> <paragraph num="(c)"> <text>An external bonus payout meter that accumulates the total number of credits paid out automatically by the video lottery terminal as a result of an external bonusing system award;</text> </paragraph> <paragraph num="(d)"> <text>An attendant paid jackpot meter that accumulates the total number of credits hand paid by a facility operator as the result of a single winning combination that exceeds the physical or configured capability of the video lottery terminal;</text> </paragraph> <paragraph num="(e)"> <text>An attendant paid cancelled credit meter that accumulates the total number of credits hand paid by a facility operator as the result of a player initiated cash-out that exceeds the physical or configured capability of the video lottery terminal;</text> </paragraph> <paragraph num="(f)"> <text>An attendant paid progressive jackpot meter that accumulates the total number of credits hand paid by a facility operator as a result of a progressive jackpot that exceeds the physical or configured capability of the video lottery terminal; and</text> </paragraph> <paragraph num="(g)"> <text>An attendant paid external bonus payout meter that accumulates the total number of credits hand paid by a facility operator as a result of an external bonusing system award that exceeds the physical or configured capability of the video lottery terminal;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A cashable gaming ticket in count meter that accumulates the number of cashable gaming tickets accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(4)"> <text>A cashable gaming ticket in value meter that accumulates the total number of cashable credits on gaming tickets accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(5)"> <text>A cashable gaming ticket out count meter that accumulates the number of cashable gaming tickets issued by a video lottery terminal;</text> </paragraph> <paragraph num="(6)"> <text>A cashable gaming ticket out value meter that accumulates the total number of cashable credits on gaming tickets issued by a video lottery terminal;</text> </paragraph> <paragraph num="(7)"> <text>A noncashable gaming ticket in count meter that accumulates the number of noncashable gaming tickets accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(8)"> <text>A noncashable gaming ticket in value meter that accumulates the total number of noncashable credits on gaming tickets accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(9)"> <text>A noncashable gaming ticket out count meter that accumulates the number of noncashable gaming tickets issued by a video lottery terminal;</text> </paragraph> <paragraph num="(10)"> <text>A noncashable gaming ticket out value meter that accumulates the total number of noncashable credits on gaming tickets issued by a video lottery terminal;</text> </paragraph> <paragraph num="(11)"> <text>A cashable promotional play instrument in count meter that accumulates the number of cashable promotional play instruments accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(12)"> <text>A cashable promotional play instrument in value meter that accumulates the total number of cashable credits on promotional play instruments accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(13)"> <text>A noncashable promotional play instrument in count meter that accumulates the number of noncashable promotional play instruments accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(14)"> <text>A noncashable promotional play instrument in value meter that accumulates the total number of noncashable credits on promotional play instruments accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(15)"> <text>A cashable downloadable in count meter that accumulates the total number of electronic transfers involving cashable credits accepted by a video lottery terminal through a cashless funds transfer system;</text> </paragraph> <paragraph num="(16)"> <text>A cashable downloadable in value meter that accumulates the total number of cashable credits accepted by a video lottery terminal through a cashless funds transfer system;</text> </paragraph> <paragraph num="(17)"> <text>A cashable downloadable out count meter that accumulates the total number of electronic transfers involving cashable credits issued by a video lottery terminal to player accounts through a cashless funds transfer system;</text> </paragraph> <paragraph num="(18)"> <text>A cashable downloadable out value meter that accumulates the total number of cashable credits issued by a video lottery terminal to player accounts through a cashless funds transfer system;</text> </paragraph> <paragraph num="(19)"> <text>A noncashable downloadable in count meter that accumulates the total number of electronic transfers involving noncashable credits accepted by a video lottery terminal through a cashless funds transfer system;</text> </paragraph> <paragraph num="(20)"> <text>A noncashable downloadable in value meter that accumulates the total number of noncashable credits accepted by a video lottery terminal through a cashless funds transfer system;</text> </paragraph> <paragraph num="(21)"> <text>A noncashable downloadable out count meter that accumulates the total number of electronic transfers involving noncashable credits issued by a video lottery terminal to player accounts through a cashless funds transfer system;</text> </paragraph> <paragraph num="(22)"> <text>A noncashable downloadable out value meter that accumulates the total number of noncashable credits issued by a video lottery terminal to player accounts through a cashless funds transfer system;</text> </paragraph> <paragraph num="(23)"> <text>A bill in count meter than accumulates the total number of bills accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(24)"> <text>A bill in value meter than accumulates the total dollar amount of currency accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(25)"> <text>Denomination in count meters that accumulate, by denomination, the total number of bills accepted by a video lottery terminal;</text> </paragraph> <paragraph num="(26)"> <text>Denomination in value meters that accumulate, by denomination, the total dollar amount of currency accepted by a video lottery terminal; and</text> </paragraph> <paragraph num="(27)"> <text>Other meters required by the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A video lottery terminal shall be equipped with the following noncumulative meters:</text> <paragraph num="(1)"> <text>A credit meter which advises a player of the total number of credits, cashable and noncashable, available for wagering on the video lottery terminal;</text> </paragraph> <paragraph num="(2)"> <text>A credits wagered meter that advises a player of the total number of credits wagered in a particular game or round of video lottery terminal play;</text> </paragraph> <paragraph num="(3)"> <text>A win meter that advises a player of the total number of credits won in the immediately concluded game or round of video lottery terminal play; and</text> </paragraph> <paragraph num="(4)"> <text>A credits paid meter which advises a player of the total value of the last:</text> <paragraph num="(a)"> <text>Cash out initiated by a player;</text> </paragraph> <paragraph num="(b)"> <text>Hand paid jackpot; and</text> </paragraph> <paragraph num="(c)"> <text>Hand paid cancelled credit.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>The noncumulative meters required by §D of this regulation shall be:</text> <paragraph num="(1)"> <text>Visible from the exterior of the video lottery terminal; and</text> </paragraph> <paragraph num="(2)"> <text>At least eight digits in length.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A video lottery terminal shall be equipped with a meter at least eight digits in length which stores, in a manner and for a duration acceptable to the Commission, the number of games played after the following events:</text> <paragraph num="(1)"> <text>Power reset;</text> </paragraph> <paragraph num="(2)"> <text>Door close; and</text> </paragraph> <paragraph num="(3)"> <text>RAM clear.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The Commission may approve a video lottery terminal which combines one of more of the meters enumerated in §C of this regulation if the Commission determines that the combined meters do not preclude the capture of all critical transactions occurring on a video lottery terminal.</text> </paragraph> <paragraph num="H."> <text>If a video lottery terminal has been enabled for tournament play, the results of tournament play may not increment the cumulative meters required under §C of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="RAM Clear."> <text>A manufacturer may not perform a RAM clear on a video lottery terminal without:</text> <paragraph num="A."> <text>Prior notice to the central monitor and control system operator; and</text> </paragraph> <paragraph num="B."> <text>Recordation and transmission to the central monitor and control system operator of accounting meter data immediately prior to the RAM clear.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Video Lottery Terminal Tower Lights and Error Conditions."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Administrative mode” means a video lottery terminal has been deliberately placed by a manufacturer in an unplayable state to access the set up or recall functions of the video lottery terminal;</text> </paragraph> <paragraph num="(b)"> <text>“Disabled mode” means a video lottery terminal has been deliberately placed, by a manufacturer or the central monitor and control system, in an unplayable state for any reason other than access to the set up or recall functions of the video lottery terminal; and</text> </paragraph> <paragraph num="(c)"> <text>“Tilt mode” means a video lottery terminal has placed itself in an unplayable state due to malfunction or error condition and may not be returned to a playable state without the intervention of a manufacturer.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A video lottery terminal shall be equipped with a tower light located at the top of its cabinet used to identify the operational status of the video lottery terminal including, but not limited to:</text> <paragraph num="(1)"> <text>A jackpot payout;</text> </paragraph> <paragraph num="(2)"> <text>A credit meter payout that exceeds the physical or configured capability of the video lottery terminal to pay;</text> </paragraph> <paragraph num="(3)"> <text>Main door open;</text> </paragraph> <paragraph num="(4)"> <text>Player requesting attendant services;</text> </paragraph> <paragraph num="(5)"> <text>Administrative mode;</text> </paragraph> <paragraph num="(6)"> <text>Disabled mode; and</text> </paragraph> <paragraph num="(7)"> <text>Tilt mode.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A tower light shall be visible to:</text> <paragraph num="(1)"> <text>A player; and</text> </paragraph> <paragraph num="(2)"> <text>The facility operator’s surveillance department.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The tower light of a bar-top style video lottery terminal may be:</text> <paragraph num="(1)"> <text>Shared among a group of video lottery terminals; or</text> </paragraph> <paragraph num="(2)"> <text>Substituted by:</text> <paragraph num="(a)"> <text>A flush-mounted light located on the top panel of the video lottery terminal;</text> </paragraph> <paragraph num="(b)"> <text>An audible alarm; or</text> </paragraph> <paragraph num="(c)"> <text>Other Commission-approved means of visibly or audibly identifying the operational status of the video lottery terminal.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>The Commission may, on submission of a written request by a manufacturer, approve an alternative means for identifying the operation status enumerated in §A of this regulation.</text> </paragraph> <paragraph num="F."> <text>A manufacturer shall deliver a video lottery terminal with documentation that identifies each light or light combination on its tower light and the operational status corresponding to that light or light combination.</text> </paragraph> <paragraph num="G."> <text>Nothing in this regulation shall preclude a manufacturer from equipping a video lottery terminal with a light or light combinations not required by this regulation for use by a facility operator for gaming floor communication provided the manufacturer notifies the Commission in writing of any internal communication protocols involving tower lights developed by a manufacturer for a facility prior to implementation.</text> </paragraph> <paragraph num="H."> <text>A video lottery terminal shall be equipped, while idle and in play mode, to do the following with regard to an error condition identified in §J, K, L, or M of this regulation:</text> <paragraph num="(1)"> <text>Detect the error condition;</text> </paragraph> <paragraph num="(2)"> <text>Identify the specific error condition by:</text> <paragraph num="(a)"> <text>Tower light; or</text> </paragraph> <paragraph num="(b)"> <text>Other Commission-approved means; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Communicate the specific error condition to the:</text> <paragraph num="(a)"> <text>Central monitor and control system; and</text> </paragraph> <paragraph num="(b)"> <text>Facility operator’s video lottery terminal data system.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>The following error conditions may be cleared automatically by the video lottery terminal upon completion of a new play sequence:</text> <paragraph num="(1)"> <text>Power reset;</text> </paragraph> <paragraph num="(2)"> <text>Door open; and</text> </paragraph> <paragraph num="(3)"> <text>Door just closed.</text> </paragraph> </paragraph> <paragraph num="J."> <text>The following error conditions shall result in placement of the video lottery terminal in disabled mode, shall prevent play and shall only be cleared by a manufacturer:</text> <paragraph num="(1)"> <text>Low RAM battery;</text> </paragraph> <paragraph num="(2)"> <text>Printer failure;</text> </paragraph> <paragraph num="(3)"> <text>Presentation error;</text> </paragraph> <paragraph num="(4)"> <text>Program error or defective program storage media;</text> </paragraph> <paragraph num="(5)"> <text>Reel spin error;</text> </paragraph> <paragraph num="(6)"> <text>Removal of the control storage media; and</text> </paragraph> <paragraph num="(7)"> <text>RAM defective or corrupted.</text> </paragraph> </paragraph> <paragraph num="K."> <text>The following error conditions shall result in placement of the video lottery terminal in disabled mode, shall prevent play and shall be cleared by a manufacturer or facility operator:</text> <paragraph num="(1)"> <text>Printer mechanism paper jam; and</text> </paragraph> <paragraph num="(2)"> <text>Bill validator jam.</text> </paragraph> </paragraph> <paragraph num="L."> <text>The following error conditions need not result in placement of the video lottery terminal in disabled mode, may not preclude play if the error condition is determined not to prohibit completion of the transaction and shall be cleared by a manufacturer or facility operator:</text> <paragraph num="(1)"> <text>Printer mechanism paper level is low; and</text> </paragraph> <paragraph num="(2)"> <text>Printer mechanism is out of paper.</text> </paragraph> </paragraph> <paragraph num="M."> <text>A manufacturer of a video lottery terminal shall affix a description of the error code corresponding to each error condition inside a video lottery terminal.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Last Game Recall."> <paragraph num="A."> <text>A video lottery terminal shall be capable of recalling and displaying a complete play history for the most recent game event and at least three games immediately preceding the most recent game event.</text> </paragraph> <paragraph num="B."> <text>The play history required by §A of this regulation shall:</text> <paragraph num="(1)"> <text>Be presented in the same sequence as the original game play;</text> </paragraph> <paragraph num="(2)"> <text>Be available when the video lottery terminal is in:</text> <paragraph num="(a)"> <text>Idle mode;</text> </paragraph> <paragraph num="(b)"> <text>Administrative mode;</text> </paragraph> <paragraph num="(c)"> <text>Disabled mode; and</text> </paragraph> <paragraph num="(d)"> <text>Tilt mode; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Include:</text> <paragraph num="(a)"> <text>Game outcome in graphics or text;</text> </paragraph> <paragraph num="(b)"> <text>The base game and all intermediate play decisions;</text> </paragraph> <paragraph num="(c)"> <text>Details sufficient to determine the credits available at the start and end of each game event;</text> </paragraph> <paragraph num="(d)"> <text>Wagers placed per line;</text> </paragraph> <paragraph num="(e)"> <text>Number of lines on which wagers were placed;</text> </paragraph> <paragraph num="(f)"> <text>Credits won;</text> </paragraph> <paragraph num="(g)"> <text>Credits cashed out;</text> </paragraph> <paragraph num="(h)"> <text>Any progressive jackpot awarded; and</text> </paragraph> <paragraph num="(i)"> <text>All double-up, bonus, and extended play activity.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Notwithstanding the requirements of §B(3) of this regulation, a video lottery terminal offering a variable number of intermediate play steps in a game event shall satisfy the requirements of this regulation if it is capable of recalling and displaying the last 50 intermediate steps in each of the four base game events retained.</text> </paragraph> <paragraph num="D."> <text>A video lottery terminal shall be capable of recalling and displaying a complete transaction history for the last 35 transactions with an electronic funds transfer system.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Video Lottery Terminal Entry Logs."> <paragraph num="A."> <text>Unless a request for an alternate procedure is submitted in writing and approved by the Commission, a manufacturer shall equip a video lottery terminal with a maintenance log for use in documenting each time a:</text> <paragraph num="(1)"> <text>Video lottery terminal is entered; or</text> </paragraph> <paragraph num="(2)"> <text>Device connected to a video lottery terminal which may affect the operation of the video lottery terminal is accessed.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A maintenance log shall be:</text> <paragraph num="(1)"> <text>Signed by each individual accessing an area enumerated in §A of this regulation including representatives of a manufacturer, a contractor, a facility operator, or the Commission;</text> </paragraph> <paragraph num="(2)"> <text>Maintained in a book with bound numbered pages that cannot be readily removed, or in a functional equivalent that has been reviewed and approved by the Commission:</text> <paragraph num="(a)"> <text>In the main cabinet of the video lottery terminal; and</text> </paragraph> <paragraph num="(b)"> <text>On the cover of which are fields to record:</text> <paragraph num="(i)"> <text>The video lottery terminal’s manufacturer’s serial number;</text> </paragraph> <paragraph num="(ii)"> <text>Commission asset number; and</text> </paragraph> <paragraph num="(iii)"> <text>A log book sequence number;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Utilized to document the following:</text> <paragraph num="(a)"> <text>Date and time of entry;</text> </paragraph> <paragraph num="(b)"> <text>Entering individual's signature;</text> </paragraph> <paragraph num="(c)"> <text>Reason for entering the video lottery terminal including the identification of areas inspected or repaired; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Retained by a facility operator for a minimum of 3 years from the date of the last entry unless a request for destruction is submitted in writing and approved in writing by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A manufacturer shall equip a progressive controller not housed within the cabinet of a video lottery terminal with a maintenance log which documents each time the Commission-approved compartment in which the progressive controller resides is accessed which is:</text> <paragraph num="(1)"> <text>Signed by each individual accessing the compartment housing the progressive controller including representatives of a manufacturer, a contractor, a facility operator, or the Commission;</text> </paragraph> <paragraph num="(2)"> <text>Maintained in a book with bound numbered pages that cannot be readily removed:</text> <paragraph num="(a)"> <text>In the Commission-approved compartment in which the progressive controller resides; and</text> </paragraph> <paragraph num="(b)"> <text>On the cover of which are fields to record:</text> <paragraph num="(i)"> <text>The progressive controller’s manufacturer’s serial number;</text> </paragraph> <paragraph num="(ii)"> <text>Commission asset number; and</text> </paragraph> <paragraph num="(iii)"> <text>A log book sequence number;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Utilized to document the following:</text> <paragraph num="(a)"> <text>Date and time of entry to the compartment housing the progressive controller;</text> </paragraph> <paragraph num="(b)"> <text>Entering individual's signature;</text> </paragraph> <paragraph num="(c)"> <text>Reason for entering the compartment housing the progressive controller including the identification of areas inspected or repaired; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Retained by a facility operator for a minimum of 3 years from the date of the last entry unless a request for destruction is submitted in writing and approved in writing by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="Video Lottery Terminal Security."> <paragraph num="A."> <text>If a manufacturer ships a video lottery terminal with software already installed, prior to transporting it the manufacturer shall seal the video lottery terminal with a prenumbered seal.</text> </paragraph> <paragraph num="B."> <text>Access to the main door securing the interior of a video lottery terminal shall be controlled by at least one lock:</text> <paragraph num="(1)"> <text>The key to which is:</text> <paragraph num="(a)"> <text>Different from any other key securing access to a video lottery terminal component including a:</text> <paragraph num="(i)"> <text>Belly door;</text> </paragraph> <paragraph num="(ii)"> <text>Bill validator; or</text> </paragraph> <paragraph num="(iii)"> <text>Cash storage box; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Limited to access by a:</text> <paragraph num="(i)"> <text>Manufacturer; and</text> </paragraph> <paragraph num="(ii)"> <text>Facility operator; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Provided and installed by a facility operator except a facility operator may supply a manufacturer with a lock for installation during the manufacturing process.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Access to the logic door securing the video lottery terminal’s main processing unit shall be controlled by at least one lock:</text> <paragraph num="(1)"> <text>The key to which is:</text> <paragraph num="(a)"> <text>Different from any other key securing access to a video lottery terminal component including a:</text> <paragraph num="(i)"> <text>Belly door;</text> </paragraph> <paragraph num="(ii)"> <text>Bill validator; or</text> </paragraph> <paragraph num="(iii)"> <text>Cash storage box; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Limited to access by a:</text> <paragraph num="(i)"> <text>Manufacturer; and</text> </paragraph> <paragraph num="(ii)"> <text>Facility operator; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Provided and installed by a facility operator, except a facility operator may supply a manufacturer with a lock for installation during the manufacturing process.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Locks to a bill validator and a cash storage box shall be:</text> <paragraph num="(1)"> <text>Accessed and controlled in accordance with COMAR 36.03.10.42; and</text> </paragraph> <paragraph num="(2)"> <text>Provided and installed by a facility operator except a facility operator may supply a manufacturer with a lock for installation during the manufacturing process.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A video lottery terminal shall be designed with access to hardware switches controlling functions critical to the operation of a video lottery terminal limited to access by a manufacturer and the Commission including, but not limited to, switches, jumpers, and other mechanisms utilized to alter:</text> <paragraph num="(1)"> <text>Pay tables;</text> </paragraph> <paragraph num="(2)"> <text>Payout percentages; and</text> </paragraph> <paragraph num="(3)"> <text>Meters.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A video lottery terminal shall have:</text> <paragraph num="(1)"> <text>Printed or affixed to the top and front of the video lottery terminal, in a size suitable for effective surveillance coverage:</text> <paragraph num="(a)"> <text>The facility operator’s gaming floor location number; and</text> </paragraph> <paragraph num="(b)"> <text>Commission asset number; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An identification plate on its exterior displaying the:</text> <paragraph num="(a)"> <text>Manufacturer; and</text> </paragraph> <paragraph num="(b)"> <text>Manufacturer’s:</text> <paragraph num="(i)"> <text>Serial number; and</text> </paragraph> <paragraph num="(ii)"> <text>Model number.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".22" heading="Minimum Design Standards Applicable to Equipment, a System, or Software."> <paragraph num="A."> <text>Equipment, a system, or software required to be tested, certified, and approved under this chapter shall:</text> <paragraph num="(1)"> <text>Conform to the minimum design standards of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>If applicable, conform to any specific additional design standards enumerated in this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Equipment, a system, or software required to be tested, certified, and approved under this chapter shall, at a minimum, control logical access through:</text> <paragraph num="(1)"> <text>Generation of daily monitoring logs documenting:</text> <paragraph num="(a)"> <text>User access; and</text> </paragraph> <paragraph num="(b)"> <text>Security incidents;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Assignment of rights and privileges to an individual user including specific protocols addressing:</text> <paragraph num="(a)"> <text>Creation, modification, and termination of a unique system account for each user;</text> </paragraph> <paragraph num="(b)"> <text>Password parameters which:</text> <paragraph num="(i)"> <text>Require a minimum length;</text> </paragraph> <paragraph num="(ii)"> <text>Incorporate an expiration interval; and</text> </paragraph> <paragraph num="(iii)"> <text>Result in lockout; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Administrator and override capabilities;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Use of access permissions to restrict an unauthorized user from performing any the following with regard to critical files and directories:</text> <paragraph num="(a)"> <text>Reading;</text> </paragraph> <paragraph num="(b)"> <text>Altering; or</text> </paragraph> <paragraph num="(c)"> <text>Deleting; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Restricted access to critical files and directories through:</text> <paragraph num="(a)"> <text>Encryption; or</text> </paragraph> <paragraph num="(b)"> <text>If approved by the Commission, internal controls provided the internal controls include:</text> <paragraph num="(i)"> <text>The effective segregation of duties and responsibilities with regard to the system; and</text> </paragraph> <paragraph num="(ii)"> <text>The automatic monitoring and recording by the system of access by an individual to its files and directories.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Equipment, a system or software required to be tested, certified, and approved under this chapter shall, at a minimum, control system operations through:</text> <paragraph num="(1)"> <text>Generation of daily monitoring logs and alert messages documenting:</text> <paragraph num="(a)"> <text>System performance;</text> </paragraph> <paragraph num="(b)"> <text>Hardware problems; and</text> </paragraph> <paragraph num="(c)"> <text>Software errors;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Authentication of the source of a data transmission;</text> </paragraph> <paragraph num="(3)"> <text>Transmission completeness and accuracy checks;</text> </paragraph> <paragraph num="(4)"> <text>Detection of corrupt or lost data packets;</text> </paragraph> <paragraph num="(5)"> <text>Rejection of a transmission;</text> </paragraph> <paragraph num="(6)"> <text>Use of cryptographic controls for critical transmissions of data; and</text> </paragraph> <paragraph num="(7)"> <text>Daily synchronization of its real time clock with that of equipment, systems, or software to which it is linked.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Equipment, a system, or software required to be tested, certified, and approved under this chapter shall, at a minimum, control the integrity of data through:</text> <paragraph num="(1)"> <text>Validation of inputs to critical fields including data:</text> <paragraph num="(a)"> <text>Type; and</text> </paragraph> <paragraph num="(b)"> <text>Format;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Rejection of corrupt data;</text> </paragraph> <paragraph num="(3)"> <text>Automatic and independent recordation of critical data;</text> </paragraph> <paragraph num="(4)"> <text>Independent verification of the accuracy of data; and</text> </paragraph> <paragraph num="(5)"> <text>Segregation of all security critical system programs, files, and directories from other programs, files, and directories.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Equipment, a system, or software required to be tested, certified, and approved under this chapter shall, at a minimum, ensure continuity through:</text> <paragraph num="(1)"> <text>Data redundancy to permit a complete and prompt recovery of all information in the event of malfunction or power interruption; and</text> </paragraph> <paragraph num="(2)"> <text>Environmental protections, including an uninterruptible power supply to protect critical hardware.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".23" heading="Video Lottery Terminal — Additional Requirements."> <paragraph num="A."> <text>A manufacturer shall configure a video lottery terminal to wager credits available for play in the following order:</text> <paragraph num="(1)"> <text>Noncashable credits; and</text> </paragraph> <paragraph num="(2)"> <text>Cashable credits.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A manufacturer may enable a video lottery terminal that has been tested, certified, and approved under this chapter for tournament play with the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".24" heading="Gaming Ticket System — Additional Requirements."> <paragraph num="A."> <text>A facility operator shall utilize a gaming ticket system that has been tested, certified, and approved under this chapter.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall, in a form and in a time frame specified by the Commission, submit a report to the Commission detailing any adjustment made to the amount of a gaming ticket.</text> </paragraph> <paragraph num="C."> <text>In addition to complying with the minimum design standards of Regulation .22 of this chapter, a gaming ticket system shall:</text> <paragraph num="(1)"> <text>Authenticate the source of a data transmission by identifying whether a transmission originated with a:</text> <paragraph num="(a)"> <text>Video lottery terminal;</text> </paragraph> <paragraph num="(b)"> <text>Ticket redemption unit; or</text> </paragraph> <paragraph num="(c)"> <text>Cashiers’ cage redemption location;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Use cryptographic controls for transmissions that include:</text> <paragraph num="(a)"> <text>A gaming ticket series number;</text> </paragraph> <paragraph num="(b)"> <text>Meter information; and</text> </paragraph> <paragraph num="(c)"> <text>Other information used in the calculation or verification of proceeds;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Control the integrity of data through generation of a unique series number on a gaming ticket:</text> <paragraph num="(a)"> <text>Comprised of at least 18 numbers, symbols, or characters;</text> </paragraph> <paragraph num="(b)"> <text>Containing at least three numbers, symbols, or characters:</text> <paragraph num="(i)"> <text>Randomly generated in a manner approved by the Commission; and</text> </paragraph> <paragraph num="(ii)"> <text>Designed to prevent an individual from being able to predict the series number of any other gaming ticket;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Containing at least one number, symbol, or character unique to a gaming ticket which visually differentiates between a gaming ticket and a promotional play instrument; and</text> </paragraph> <paragraph num="(d)"> <text>Printed in at least two locations on a gaming ticket;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Automatically and independently record the critical data required to be printed on a gaming ticket under COMAR 36.03.10.36 at the time of gaming ticket:</text> <paragraph num="(a)"> <text>Generation; and</text> </paragraph> <paragraph num="(b)"> <text>Redemption; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Independently verify, in a manner satisfactory to the Commission, the accuracy of a gaming ticket series number and amount prior to redemption.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".25" heading="Ticket Redemption Unit — Additional Requirements."> <paragraph num="A."> <text>A facility operator may utilize a ticket redemption unit that has been tested, certified, and approved under this chapter.</text> </paragraph> <paragraph num="B."> <text>In addition to complying with the minimum design standards of Regulation .22 of this chapter, a ticket redemption unit shall, in a manner satisfactory to the Commission:</text> <paragraph num="(1)"> <text>Establish the validity of a gaming ticket or promotional play instrument by comparing the unique series number on the ticket or instrument with electronic records in a gaming ticket system or promotional play system;</text> </paragraph> <paragraph num="(2)"> <text>Cancel upon acceptance a gaming ticket or promotional play instrument to prevent:</text> <paragraph num="(a)"> <text>Subsequent redemption at a:</text> <paragraph num="(i)"> <text>Cashiers' cage; or</text> </paragraph> <paragraph num="(ii)"> <text>Another ticket redemption unit; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Acceptance by a video lottery terminal; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Evaluate whether sufficient funds are available before accepting the gaming ticket or promotional play instrument and completing the transaction.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The following error conditions may be cleared automatically by a ticket redemption unit upon completion of a new transaction.</text> <paragraph num="(1)"> <text>Power reset;</text> </paragraph> <paragraph num="(2)"> <text>Door open;</text> </paragraph> <paragraph num="(3)"> <text>Door closed; and</text> </paragraph> <paragraph num="(4)"> <text>System communication loss.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The following error conditions shall result in placement of the ticket redemption unit in disabled mode, shall prevent new transactions and shall only be cleared by a facility operator:</text> <paragraph num="(1)"> <text>Failure to make payment, meaning that a gaming ticket or promotional play instrument was returned and no receipt for an unpaid amount was issued;</text> </paragraph> <paragraph num="(2)"> <text>Failure to make complete payment, meaning no receipt for an unpaid amount was issued;</text> </paragraph> <paragraph num="(3)"> <text>Bill validator failure; and</text> </paragraph> <paragraph num="(4)"> <text>Printer failure due to printer jam or lack of paper.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A ticket redemption unit shall be equipped with:</text> <paragraph num="(1)"> <text>The meters enumerated in §F of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Meters which continuously and automatically increment in credits equal to cents; and</text> </paragraph> <paragraph num="(3)"> <text>An automated transaction log retaining all critical transaction history required under this regulation for a period of not less than 10 days subsequent to a power loss.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A ticket redemption unit shall be equipped with electronic meters that function as follows:</text> <paragraph num="(1)"> <text>A cashable gaming ticket in count meter that accumulates the number of cashable gaming tickets accepted by a ticket redemption unit;</text> </paragraph> <paragraph num="(2)"> <text>A cashable gaming ticket in value meter that accumulates the total number of credits on cashable gaming tickets accepted by a ticket redemption unit;</text> </paragraph> <paragraph num="(3)"> <text>A cashable promotional play instrument in count meter that accumulates the number of cashable promotional play instruments accepted by a ticket redemption unit;</text> </paragraph> <paragraph num="(4)"> <text>A cashable promotional play instrument in value meter that accumulates the total number of credits on cashable promotional play instruments accepted by a ticket redemption unit;</text> </paragraph> <paragraph num="(5)"> <text>Bill denomination in count meters that accumulate, by denomination, the total number of bills accepted by a ticket redemption unit;</text> </paragraph> <paragraph num="(6)"> <text>Bill denomination in value meters that accumulate, by denomination, the total dollar amount of currency accepted by a ticket redemption unit;</text> </paragraph> <paragraph num="(7)"> <text>Bill denomination out count meters that accumulate, by denomination, the total number of bills dispensed by a ticket redemption unit;</text> </paragraph> <paragraph num="(8)"> <text>Bill denomination – out value meters that accumulate, by denomination, the total dollar amount of currency dispensed by a ticket redemption unit; and</text> </paragraph> <paragraph num="(9)"> <text>Other meters required by the Commission.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The automated transaction log required under §E(3) of this regulation shall include for each transaction, whether complete or incomplete, the following:</text> <paragraph num="(1)"> <text>Date and time;</text> </paragraph> <paragraph num="(2)"> <text>Amount;</text> </paragraph> <paragraph num="(3)"> <text>Disposition as complete or incomplete;</text> </paragraph> <paragraph num="(4)"> <text>Error conditions including failed access attempts;</text> </paragraph> <paragraph num="(5)"> <text>User access data; and</text> </paragraph> <paragraph num="(6)"> <text>If equipped to redeem multiple cashable gaming tickets and cashable promotional play instruments in a single transaction, a breakdown of the transaction by individual cashable gaming ticket and cashable promotional play instrument.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".26" heading="External Bonusing System — Additional Requirements."> <paragraph num="A."> <text>A facility operator may utilize an external bonusing system that has been tested, certified, and approved under this chapter.</text> </paragraph> <paragraph num="B."> <text>In addition to complying with the minimum design standards of Regulation .22 of this chapter, a video lottery terminal connected to an external bonusing system may not equal or exceed an average payout percentage of 100 percent when the contribution of any bonus awards available on a video lottery terminal is added to the video lottery terminal’s average payout percentage.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".27" heading="Cashless Funds Transfer System — Additional Requirements."> <paragraph num="A."> <text>A facility operator may utilize a cashless funds transfer system that has been tested, certified, and approved under this chapter.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall, in a form and in a time frame specified by the Commission, submit a report to the Commission detailing any adjustment made to the amount of a credit transferred to or from a video lottery terminal, table game, or wagering account by means of a cashless funds transfer system.</text> </paragraph> <paragraph num="C."> <text>A facility operator utilizing a cashless funds transfer system shall develop and include in the internal controls submitted to and approved by the Commission under COMAR 36.03.10.05 procedures addressing the integrity, security, and control of a cashless funds transfer system.</text> </paragraph> <paragraph num="D."> <text>A facility operator’s internal controls shall address:</text> <paragraph num="(1)"> <text>Set-up and administration of a player account including:</text> <paragraph num="(a)"> <text>The procedures utilized to create a unique access code to, and a unique player identification number for, a player account; and</text> </paragraph> <paragraph num="(b)"> <text>The controls employed to secure a player’s access code;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The intended scope of use of a cashless funds transfer system including whether it will be used to:</text> <paragraph num="(a)"> <text>Transfer credits to a video lottery terminal, table game, or wagering account; and</text> </paragraph> <paragraph num="(b)"> <text>Transfer credits from a video lottery terminal, table game, or wagering account to a player account; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Documentation of individual player transactions including a requirement that:</text> <paragraph num="(a)"> <text>Each transaction is identified, at a minimum, by:</text> <paragraph num="(i)"> <text>Date and time;</text> </paragraph> <paragraph num="(ii)"> <text>Video lottery terminal manufacturer serial number or Commission asset number, table game number, or wagering account number; and</text> </paragraph> <paragraph num="(iii)"> <text>The player’s account identification number;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A statement of player account activity is available to a player on:</text> <paragraph num="(i)"> <text>Submission of a signed request for the statement at the cashiers’ cage; and</text> </paragraph> <paragraph num="(ii)"> <text>Establishing the identification of the player including the authenticity of the player’s signature on the request for the statement in accordance with the signature authentication procedures in COMAR 36.03.10.20;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The statement of player account activity required under this regulation summarize, at a minimum, a player’s activity during the month prior to the date of the request for a statement and include:</text> <paragraph num="(i)"> <text>Player’s beginning credit balance;</text> </paragraph> <paragraph num="(ii)"> <text>Credits earned during the month;</text> </paragraph> <paragraph num="(iii)"> <text>Credits transferred to a video lottery terminal, table game, or wagering account;</text> </paragraph> <paragraph num="(iv)"> <text>Credits transferred from a video lottery terminal, table game, or wagering account to a player account; and</text> </paragraph> <paragraph num="(v)"> <text>Player’s ending credit balance; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>The statement of player account activity required under this regulation need not include promotional play credits transferred to a player without regard to the identity of the player.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".28" heading="Progressive Video Lottery Terminals."> <paragraph num="A."> <text>A video lottery terminal offering a progressive jackpot may:</text> <paragraph num="(1)"> <text>Stand alone; or</text> </paragraph> <paragraph num="(2)"> <text>Be linked to:</text> <paragraph num="(a)"> <text>Other video lottery terminals in a facility; or</text> </paragraph> <paragraph num="(b)"> <text>Video lottery terminals in two or more facilities in or outside the State through a wide area progressive system under Regulation .29 of this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A manufacturer may not install in a facility, and a facility operator may not make available for play, a video lottery terminal offering a progressive jackpot without Commission approval in writing of:</text> <paragraph num="(1)"> <text>A progressive proposal under Regulation .30 of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>Internal controls submitted under COMAR 36.03.10.05 addressing the payment of a progressive jackpot.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A manufacturer may not modify the terms of a progressive jackpot, and a facility operator may not make available for play, a video lottery terminal which offers a progressive jackpot that differs from its approved progressive proposal without the approval in writing of the Commission under Regulation .30B of this chapter.</text> </paragraph> <paragraph num="D."> <text>A video lottery terminal may offer multiple progressive jackpots.</text> </paragraph> <paragraph num="E."> <text>A progressive jackpot amount may be calculated and transmitted to a video lottery terminal by:</text> <paragraph num="(1)"> <text>The operating system of a video lottery terminal; or</text> </paragraph> <paragraph num="(2)"> <text>A separate progressive controller interfaced to a video lottery terminal.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A progressive controller shall be:</text> <paragraph num="(1)"> <text>Located in a:</text> <paragraph num="(a)"> <text>Restricted area; or</text> </paragraph> <paragraph num="(b)"> <text>Video lottery terminal;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Secured:</text> <paragraph num="(a)"> <text>In a dual key controlled compartment with:</text> <paragraph num="(i)"> <text>One key controlled by the operations department; and</text> </paragraph> <paragraph num="(ii)"> <text>One key controlled by the security department; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>By alternative means approved by the Commission; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Capable of:</text> <paragraph num="(a)"> <text>Displaying an available progressive jackpot amount on a video lottery terminal’s:</text> <paragraph num="(i)"> <text>Progressive meter; or</text> </paragraph> <paragraph num="(ii)"> <text>Common progressive meter;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Transmitting to a video lottery terminal for metering purposes the amount of a progressive jackpot;</text> </paragraph> <paragraph num="(c)"> <text>If linked to a common progressive meter in accordance with §H of this regulation, displaying the Commission asset number of the video lottery terminal on which a progressive jackpot is won;</text> </paragraph> <paragraph num="(d)"> <text>If a progressive controller is servicing multiple video lottery terminals, automatically resetting all video lottery terminals connected to it to a pre-established reset amount; and</text> </paragraph> <paragraph num="(e)"> <text>If the progressive offers multiple jackpot levels, maintaining and displaying for each progressive level the:</text> <paragraph num="(i)"> <text>Number of progressive jackpots won;</text> </paragraph> <paragraph num="(ii)"> <text>Cumulative amount paid;</text> </paragraph> <paragraph num="(iii)"> <text>Maximum progressive payout;</text> </paragraph> <paragraph num="(iv)"> <text>Minimum amount or reset amount; and</text> </paragraph> <paragraph num="(v)"> <text>Rate of progression.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>A video lottery terminal offering a progressive jackpot shall be equipped, for each progressive jackpot offered, with the following mechanical, electrical, or electronic meters:</text> <paragraph num="(1)"> <text>A progressive meter which:</text> <paragraph num="(a)"> <text>May increase in value based upon wagers;</text> </paragraph> <paragraph num="(b)"> <text>Advises the player of the amount which may be won if the video lottery terminal characters that result in the award of a progressive jackpot appear as a result of activation of play; and</text> </paragraph> <paragraph num="(c)"> <text>Is visible from the front of the video lottery terminal through:</text> <paragraph num="(i)"> <text>A meter display housed in the video lottery terminal; or</text> </paragraph> <paragraph num="(ii)"> <text>A common progressive meter display unit;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A progressive payout meter under Regulation .16C(2)(b) of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>An attendant paid progressive jackpot meter under Regulation .16C(2)(f) of this chapter; and</text> </paragraph> <paragraph num="(4)"> <text>A cumulative progressive payout meter that continuously and automatically records the total value of progressive jackpots paid whether paid:</text> <paragraph num="(a)"> <text>Directly by the video lottery terminal; or</text> </paragraph> <paragraph num="(b)"> <text>Hand paid by a facility operator as a result of a progressive jackpot that exceeds the physical or configured capability of a video lottery terminal.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>A video lottery terminal linked to a common progressive meter for the purpose of offering the same progressive jackpot on two or more video lottery terminals shall:</text> <paragraph num="(1)"> <text>Have the same probability of hitting the combination of characters that will award the progressive jackpot as every other video lottery terminal linked to that common progressive meter; and</text> </paragraph> <paragraph num="(2)"> <text>Require each:</text> <paragraph num="(a)"> <text>Player to wager the same amount to receive a chance at winning the progressive jackpot; and</text> </paragraph> <paragraph num="(b)"> <text>Wager to increment the progressive meter by the same rate of progression on every video lottery terminal connected to the common progressive meter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Notwithstanding the requirements of §H of this regulation, video lottery terminals linked to a common progressive meter for the purpose of offering the same progressive jackpot on two or more video lottery terminals may be of different denominations or require different wagers, or both, if:</text> <paragraph num="(1)"> <text>The probability of winning the progressive jackpot is directly proportional to the wager required to win a jackpot; and</text> </paragraph> <paragraph num="(2)"> <text>A notice indicating the proportional probability of hitting the progressive jackpot on the common progressive meter is conspicuously displayed in a manner specified by the Commission on each linked video lottery terminal.</text> </paragraph> </paragraph> <paragraph num="J."> <text>A manufacturer may not:</text> <paragraph num="(1)"> <text>Set a limit for a progressive jackpot which exceeds the display capability of the progressive meter; or</text> </paragraph> <paragraph num="(2)"> <text>Adjust a progressive meter without the prior approval of the Commission unless the adjustment is:</text> <paragraph num="(a)"> <text>Required as a direct result of video lottery terminal or meter malfunction; and</text> </paragraph> <paragraph num="(b)"> <text>Reported by the manufacturer in a form and in a time frame specified by the Commission to the:</text> <paragraph num="(i)"> <text>Commission; and</text> </paragraph> <paragraph num="(ii)"> <text>Facility operator.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".29" heading="Wide Area Progressive System."> <paragraph num="A."> <text>A manufacturer may not install, and a facility operator may not make available for play, a wide area progressive system without Commission approval in writing of:</text> <paragraph num="(1)"> <text>A wide area progressive agreement under §C of the regulation;</text> </paragraph> <paragraph num="(2)"> <text>A progressive proposal under Regulation .30 of this chapter; and</text> </paragraph> <paragraph num="(3)"> <text>Internal controls submitted under COMAR 36.03.10.05 addressing the payment of a progressive jackpot on a video lottery terminal participating in a wide area progressive system.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A manufacturer may not modify the terms of a progressive jackpot offered through a wide area progressive system, and a facility operator may not make available for play, a video lottery terminal which offers a progressive jackpot that differs from its approved progressive proposal without the approval in writing of the Commission under Regulation .30(B) of this chapter.</text> </paragraph> <paragraph num="C."> <text>A wide area progressive system shall operate under the terms and conditions of a wide area progressive agreement between:</text> <paragraph num="(1)"> <text>The Commission;</text> </paragraph> <paragraph num="(2)"> <text>A manufacturer; and</text> </paragraph> <paragraph num="(3)"> <text>Participating facility operators in or outside the State.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A wide area progressive agreement shall assign responsibility for the operation and administration of a wide area progressive system to a designated system operator who may be a:</text> <paragraph num="(1)"> <text>Participating facility operators in or outside the State; or</text> </paragraph> <paragraph num="(2)"> <text>Manufacturer.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A wide area progressive agreement shall address:</text> <paragraph num="(1)"> <text>The duties and responsibilities of the:</text> <paragraph num="(a)"> <text>Participating:</text> <paragraph num="(i)"> <text>Manufacturer; and</text> </paragraph> <paragraph num="(ii)"> <text>Facility operators in or outside the State; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>System operator;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The terms of compensation for a system operator including to what extent the system operator is to receive compensation based, directly or indirectly, on an interest, percentage or share of the proceeds of a wide area progressive system;</text> </paragraph> <paragraph num="(3)"> <text>Responsibility for progressive jackpots, proceeds, and expenses associated with the operation of a wide area progressive system;</text> </paragraph> <paragraph num="(4)"> <text>Control and operation of a system monitor room under §F of this regulation;</text> </paragraph> <paragraph num="(5)"> <text>Service and maintenance of a wide area progressive system;</text> </paragraph> <paragraph num="(6)"> <text>Responsibility for generating, filing and maintaining the records and reports required under this subtitle;</text> </paragraph> <paragraph num="(7)"> <text>If applicable, terms with regard to establishing and servicing any trust agreement associated with an annuity jackpot offered by a wide area progressive system under COMAR 36.03.10.39; and</text> </paragraph> <paragraph num="(8)"> <text>If requested by the Commission, additional documentation with regard to a wide area progressive agreement.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A wide area progressive system shall be controlled and operated from a system monitor room:</text> <paragraph num="(1)"> <text>Under the sole possession of, and maintained and operated by, the system operator designated in a wide area progressive agreement;</text> </paragraph> <paragraph num="(2)"> <text>In a location approved by the Commission;</text> </paragraph> <paragraph num="(3)"> <text>If required by the Commission, staffed by individuals licensed as gaming employees; and</text> </paragraph> <paragraph num="(4)"> <text>Subject to:</text> <paragraph num="(a)"> <text>Surveillance coverage satisfactory to the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Access controls satisfactory to the Commission including a monitor room access log in accordance with §G of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>A system operator shall maintain a monitor room access log:</text> <paragraph num="(1)"> <text>Signed by each individual entering the system monitor room except an employee of a system operator assigned to the system monitor room on his assigned shift;</text> </paragraph> <paragraph num="(2)"> <text>Maintained in a book with bound numbered pages that cannot be readily removed;</text> </paragraph> <paragraph num="(3)"> <text>Utilized to document the following:</text> <paragraph num="(a)"> <text>Date and time of entry;</text> </paragraph> <paragraph num="(b)"> <text>Entering individual's signature; and</text> </paragraph> <paragraph num="(c)"> <text>Reason for entering the system monitor room including the identification of areas inspected or repaired; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Retained by a system operator for a minimum of 3 years from the date of the last entry unless a request for destruction is submitted in writing and approved in writing by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".30" heading="Progressive Proposal."> <paragraph num="A."> <text>A progressive proposal:</text> <paragraph num="(1)"> <text>Shall be jointly prepared, executed, and submitted to the Commission by a facility operator and a manufacturer;</text> </paragraph> <paragraph num="(2)"> <text>Shall include the following:</text> <paragraph num="(a)"> <text>Manufacturer’s:</text> <paragraph num="(i)"> <text>Serial number;</text> </paragraph> <paragraph num="(ii)"> <text>Model number;</text> </paragraph> <paragraph num="(iii)"> <text>Software identification number; and</text> </paragraph> <paragraph num="(iv)"> <text>Version number;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Denomination or a designation as multi-denomination;</text> </paragraph> <paragraph num="(c)"> <text>Cabinet style;</text> </paragraph> <paragraph num="(d)"> <text>An indication as to whether the video lottery terminal is to be:</text> <paragraph num="(i)"> <text>Stand alone;</text> </paragraph> <paragraph num="(ii)"> <text>Linked to other video lottery terminals in a facility; or</text> </paragraph> <paragraph num="(iii)"> <text>Linked to a wide area progressive system;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>The initial and reset amounts at which the progressive meter or meters will be set;</text> </paragraph> <paragraph num="(f)"> <text>For each progressive jackpot the:</text> <paragraph num="(i)"> <text>Rate of progression;</text> </paragraph> <paragraph num="(ii)"> <text>Limit; and</text> </paragraph> <paragraph num="(iii)"> <text>Probability of winning; and</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>If requested by the Commission, additional documentation; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>May be approved in writing by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A manufacturer may not modify the terms of a progressive jackpot, and a facility operator may not make available for play, a video lottery terminal which offers a progressive jackpot that differs from its approved progressive proposal without:</text> <paragraph num="(1)"> <text>Submission to the Commission, in a time frame specified by the Commission, of a request for modification of an approved progressive proposal identifying any proposed change to the terms and conditions of the progressive proposal to be modified; and</text> </paragraph> <paragraph num="(2)"> <text>The approval in writing of the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission may consider the following modifications to an approved progressive proposal:</text> <paragraph num="(1)"> <text>A revision to the payout limit on an available progressive jackpot, provided the revised payout limit is greater than the then current payout amount on the progressive jackpot meter;</text> </paragraph> <paragraph num="(2)"> <text>Transfer of an available progressive jackpot amount in accordance with §D of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>Removal from the gaming floor of a video lottery terminal offering a progressive jackpot in accordance with §E of this regulation; and</text> </paragraph> <paragraph num="(4)"> <text>Other modifications deemed consistent with this regulation by the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A transfer of an available progressive jackpot amount under §C(2) of this regulation shall involve:</text> <paragraph num="(1)"> <text>The entire amount;</text> </paragraph> <paragraph num="(2)"> <text>Transfer to the:</text> <paragraph num="(a)"> <text>Progressive meter of a video lottery terminal with the same:</text> <paragraph num="(i)"> <text>Or greater probability of winning the progressive jackpot;</text> </paragraph> <paragraph num="(ii)"> <text>Or lower wager requirement to be eligible to win the progressive jackpot; and</text> </paragraph> <paragraph num="(iii)"> <text>Type of progressive jackpot award; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Progressive meters of two separate video lottery terminals provided each terminal to which a jackpot amount is transferred individually satisfies the requirements of §D(2)(a) of this regulation; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Disclosure of the intent to transfer an available progressive jackpot amount on the front of a video lottery terminal in a manner specified by the Commission for at least 14 days prior to the intended date of transfer.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Removal from the gaming floor of a video lottery terminal offering a progressive jackpot under §C(3) of this regulation shall require:</text> <paragraph num="(1)"> <text>If the removal involves one or more linked video lottery terminals offered in:</text> <paragraph num="(a)"> <text>A single facility, that at least two linked video lottery terminals offering the same progressive jackpot remain on the gaming floor; and</text> </paragraph> <paragraph num="(b)"> <text>More than one facility, that the facility operator retain at least one linked video lottery terminal offering the same progressive jackpot on its gaming floor; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In every case, disclosure of the intent to transfer an available progressive jackpot on the front of a video lottery terminal in a manner specified by the Commission for at least 14 days prior to the intended date of transfer.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Nothing in this regulation shall preclude the Commission from imposing additional terms and conditions on a modification of a progressive proposal.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".31" heading="Remote Access."> <paragraph num="A."> <text>A manufacturer may not perform from a remote location analysis of, or technical support with regard to, a video lottery terminal without:</text> <paragraph num="(1)"> <text>Submission of a written request to the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>The written approval of the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A manufacturer may perform from a remote location analysis of, or technical support with regard to, a facility operator’s video lottery systems including, but not limited to, a:</text> <paragraph num="(1)"> <text>Gaming ticket system;</text> </paragraph> <paragraph num="(2)"> <text>Promotional play system;</text> </paragraph> <paragraph num="(3)"> <text>Player tracking system;</text> </paragraph> <paragraph num="(4)"> <text>External bonusing system;</text> </paragraph> <paragraph num="(5)"> <text>Cashless funds transfer system; and</text> </paragraph> <paragraph num="(6)"> <text>Wide area progressive system.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator intending to authorize remote access to a video lottery system under this regulation shall include in its internal controls submitted for Commission approval under COMAR 36.03.10.05 a written system of access protocols which require:</text> <paragraph num="(1)"> <text>A unique system account for each employee of a manufacturer identified by the manufacturer as potentially required to perform technical support from a remote location;</text> </paragraph> <paragraph num="(2)"> <text>Use of a dedicated and secure communication facility;</text> </paragraph> <paragraph num="(3)"> <text>The facility operator to provide the Commission with notice of access within 4 hours after a person remotely accesses a system;</text> </paragraph> <paragraph num="(4)"> <text>The facility operator to take affirmative steps, on a per access basis, to activate a manufacturer’s access privileges;</text> </paragraph> <paragraph num="(5)"> <text>Imposition of limits on the ability of any individual authorized under this regulation to deliberately or inadvertently interfere with:</text> <paragraph num="(a)"> <text>The normal operation of the system; and</text> </paragraph> <paragraph num="(b)"> <text>Its data; and</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>An access log:</text> <paragraph num="(a)"> <text>Maintained by both the:</text> <paragraph num="(i)"> <text>Manufacturer; and</text> </paragraph> <paragraph num="(ii)"> <text>Facility operator’s information technology department;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Maintained in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed; or</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Documenting the:</text> <paragraph num="(i)"> <text>Manufacturer version number of the system accessed;</text> </paragraph> <paragraph num="(ii)"> <text>Type of connection as leased line, dial in modem, or private WAN;</text> </paragraph> <paragraph num="(iii)"> <text>Name of the manufacturer employee remotely accessing the system;</text> </paragraph> <paragraph num="(iv)"> <text>Name of the information technology department employee activating the manufacturer's access to the system;</text> </paragraph> <paragraph num="(v)"> <text>Date and time of the connection;</text> </paragraph> <paragraph num="(vi)"> <text>Duration of the connection;</text> </paragraph> <paragraph num="(vii)"> <text>Reason for the remote access including a description of the symptoms or malfunction prompting the need for remote access to the system; and</text> </paragraph> <paragraph num="(viii)"> <text>Any action taken or further action required.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator may not authorize a manufacturer to remotely access a video lottery system until its system access protocols are approved in writing by the Commission.</text> </paragraph> <paragraph num="E."> <text>Any modification to a system required to be tested, certified, and approved by the Commission under Regulation .02E of this chapter shall be processed as:</text> <paragraph num="(1)"> <text>An emergency modification under Regulation .07 of this chapter; or</text> </paragraph> <paragraph num="(2)"> <text>A standard modification under Regulations .03C and .04C of this chapter.</text> </paragraph> </paragraph> <paragraph num="F."> <text>If an employee of a manufacturer is no longer employed or authorized by a manufacturer to remotely access a system pursuant to this regulation, the manufacturer shall:</text> <paragraph num="(1)"> <text>Immediately notify in writing:</text> <paragraph num="(a)"> <text>Any facility operator that has established a unique system account for that employee of the change in authorization; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Verify with each facility operator notified of the change in authorization that the access privileges of the individual have been revoked.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".32" heading="Manufacturer Storage of Equipment, Systems, and Software Outside a Facility."> <paragraph num="A."> <text>A manufacturer may not utilize a location outside of a facility to store or repair equipment, systems, software, or related parts and inventory for use in a facility without the storage facility being:</text> <paragraph num="(1)"> <text>Inspected by the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>Approved in writing by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A manufacturer shall locate a storage facility in Maryland in a location or locations that reasonably permit the delivery of the support and technical services to which the manufacturer is obligated.</text> </paragraph> <paragraph num="C."> <text>A manufacturer shall submit to the Commission a written request to utilize a storage facility under §A of this regulation which includes, at a minimum:</text> <paragraph num="(1)"> <text>The address;</text> </paragraph> <paragraph num="(2)"> <text>A physical description of the storage facility;</text> </paragraph> <paragraph num="(3)"> <text>Specifications for the surveillance system that has been or will be installed at the proposed storage facility including:</text> <paragraph num="(a)"> <text>If digital:</text> <paragraph num="(i)"> <text>Recording frames per second; and</text> </paragraph> <paragraph num="(ii)"> <text>Common image rate; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Proposed recording retention schedule; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Security procedures for the storage facility.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02, 9-1A-04, 9-1A-15, 9-1A-22, and 9-1A-24, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.32 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); adopted permanently effective April 29, 2013 (40:8 Md. R. 725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective November 14, 2022 (49:23 Md. R. 997)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11D amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11E, I amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12C adopted effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18 amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18D, E amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20A amended effective October 23, 2017 (44:21 Md. R. 985)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20B amended effective February 16, 2015 (42:3 Md. R. 319)</annotation> <annotation type="History" subtype="Administrative History">Regulation .21 amended effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .21E amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .27B, D amended effective September 6, 2021 (48:18 Md. R. 695)</annotation> <annotation type="History" subtype="Administrative History">Regulation .28F amended effective September 26, 2016 (43:19 Md. R. 1073); October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .30D amended effective October 22, 2018 (45:21 Md. R. 976); September 6, 2021 (48:18 Md. R. 695)</annotation> <annotation type="History" subtype="Administrative History">Regulation .30D, E amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .31C amended effective October 23, 2017 (44:21 Md. R. 985); October 22, 2018 (45:21 Md. R. 976); October 7, 2019 (46:20 Md. R. 848)</annotation> </annotations> </chapter> <chapter num="02" heading="Video Lottery Terminal Machines"> <regulation prefix="Regulation" num=".01" heading="Purchase or Lease of Video Lottery Terminals."> <paragraph num="A."> <text>A facility operator shall:</text> <paragraph num="(1)"> <text>Purchase or lease video lottery terminals for use in its facility; and</text> </paragraph> <paragraph num="(2)"> <text>Maintain control over the video lottery terminals that it has purchased or leased.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Before placing a video lottery machine into operation in a facility, a facility operator shall obtain written authorization from Agency staff for:</text> <paragraph num="(1)"> <text>Operating the video lottery terminal on the gaming floor; and</text> </paragraph> <paragraph num="(2)"> <text>As required under COMAR 36.03.11.05, any corresponding change to the facility gaming floor.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Authorized Video Lottery Terminals."> <paragraph num="A."> <text>General. A facility operator:</text> <paragraph num="(1)"> <text>Is authorized to operate the maximum number of video lottery terminals that is specified on its video lottery facility operation license;</text> </paragraph> <paragraph num="(2)"> <text>Subject to §A(3) of this regulation, may operate less than the number of authorized video lottery terminals on its license; and</text> </paragraph> <paragraph num="(3)"> <text>Shall submit written notification to Agency staff at least 21 days before temporarily decreasing the number of video lottery terminals on its gaming floor.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Request for Reduction.</text> <paragraph num="(1)"> <text>A facility operator may submit one request each calendar year to reduce the number of authorized video lottery terminals on its video lottery facility operation license.</text> </paragraph> <paragraph num="(2)"> <text>An operator seeking to reduce the number of authorized video lottery terminals on its license shall submit to Agency staff a written request for reduction no later than December 1 of a calendar year and specify the:</text> <paragraph num="(a)"> <text>Reason for the request;</text> </paragraph> <paragraph num="(b)"> <text>Number of video lottery terminals requested to be taken off the license; and</text> </paragraph> <paragraph num="(c)"> <text>For each video lottery terminal subject to the request:</text> <paragraph num="(i)"> <text>Device asset number;</text> </paragraph> <paragraph num="(ii)"> <text>Proposed reconfiguration of the facility’s floor plan after the reduction;</text> </paragraph> <paragraph num="(iii)"> <text>Proposed date by which the reduction would be implemented; and</text> </paragraph> <paragraph num="(iv)"> <text>Projected analysis of the impact of the reduction on the facility’s gaming revenue.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Agency Staff may approve or deny a request.</text> </paragraph> <paragraph num="(4)"> <text>Agency staff shall notify the operator in writing of the effective date of an approved request.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Implementation of Approved Request for Reduction.</text> <paragraph num="(1)"> <text>No later than December 31 following the effective date of an approved reduction request, the operator shall remove the subject video lottery terminals from its gaming floor.</text> </paragraph> <paragraph num="(2)"> <text>Agency staff shall implement an approved reduction by issuing the operator an amended license certificate.</text> </paragraph> <paragraph num="(3)"> <text>The operator for which a request for reduction was approved may operate:</text> <paragraph num="(a)"> <text>A maximum of the number of authorized video lottery terminals on its license; or</text> </paragraph> <paragraph num="(b)"> <text>Less than the number of authorized video lottery terminals on its license.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The facility operator shall pay all costs incurred by the Commission associated with reducing the number of authorized video lottery terminals from the operator’s license.</text> </paragraph> <paragraph num="(5)"> <text>A facility operator for which a reduction was approved may not be credited or refunded any portion of the initial license fee paid under State Government Article, §9-1A-36, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>A facility operator shall pay the annual fee of $425 required by State Government Article, §9-1A-33, Annotated Code of Maryland, for each terminal at the beginning of each calendar year.</text> </paragraph> <paragraph num="(7)"> <text>The annual fee is based on the highest number of video lottery terminal positions in use on any day during the prior calendar year.</text> </paragraph> <paragraph num="(8)"> <text>Unless otherwise specified, a reduction in the number of authorized video lottery terminals does not change any other applicable requirement.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Request to Increase Number of Authorized Video Lottery Terminals on a License.</text> <paragraph num="(1)"> <text>A facility operator may submit a written request to the Commission to increase the number of authorized video lottery terminals on its license up to and including the allocation limit for its location specified in State Government Article, §9-1A-36(i)(1), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>A written request under §D(1) of this regulation shall include the:</text> <paragraph num="(a)"> <text>Reason for the request;</text> </paragraph> <paragraph num="(b)"> <text>Number of video lottery terminals to be added to the license;</text> </paragraph> <paragraph num="(c)"> <text>Proposed reconfiguration of the facility’s floor plan;</text> </paragraph> <paragraph num="(d)"> <text>Proposed date by which the increase would be implemented; and</text> </paragraph> <paragraph num="(e)"> <text>Projected analysis of the impact of the increase on the facility’s gaming revenues.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission may approve or deny a request.</text> </paragraph> <paragraph num="(4)"> <text>To implement an approved request for an increased number of authorized video lottery terminals on its license, the operator shall:</text> <paragraph num="(a)"> <text>Pay a nonrefundable license fee of $6,000 for each additional video lottery terminal on the license, to accrue to the Education Trust Fund;</text> </paragraph> <paragraph num="(b)"> <text>At its own expense, purchase or lease, and maintain, the additional video lottery terminals;</text> </paragraph> <paragraph num="(c)"> <text>Pay all costs incurred by the Commission associated with increasing the number of authorized video lottery terminals on the operator’s license; and</text> </paragraph> <paragraph num="(d)"> <text>Meet all applicable Commission requirements for placing the additional authorized video lottery terminals on the gaming floor.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A facility operator shall pay the annual fee of $425 required by State Government Article, §9-1A-33, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>The annual fee is based on the highest number of video lottery terminals in use on any day of the calendar year.</text> </paragraph> <paragraph num="(7)"> <text>Agency staff shall implement an approved increase by issuing the operator an amended license certificate.</text> </paragraph> <paragraph num="(8)"> <text>The operator for which a request for increase was approved may operate:</text> <paragraph num="(a)"> <text>A maximum of the number of authorized video lottery terminals on its license; or</text> </paragraph> <paragraph num="(b)"> <text>Less than the number of authorized video lottery terminals on its license.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>This regulation does not apply to a request for an increased allocation of video lottery terminals under State Government Article, §9-1A-36(i), Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-04 and 9-1A-21, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); adopted permanently effective April 29, 2013 (40:8 Md. R. 725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective May 26, 2014 (41:10 Md. R. 566)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 repealed and new Regulation .02 adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); adopted permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C, D amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> </subtitle> <subtitle num="05" heading="Table Games"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This subtitle applies to the State’s Table Games Program.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In addition to the terms defined in State Government Article, §9-1A-01, Annotated Code of Maryland and in COMAR 36.03.01.02, which have the same meanings in this subtitle, in this subtitle the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Ante” means the wager that a player may be required to make prior to any cards being dealt to participate in the round of play.</text> </paragraph> <paragraph num="(2)"> <text>“Assistant table games shift manager” means an employee of a facility operator whose primary function is to supervise all of the table games in a licensed facility and who may be authorized to act as the table games shift manager in his absence.</text> </paragraph> <paragraph num="(3)"> <text>“Automated card shuffling device” means a software compatible mechanical or electronic contrivance that automatically randomizes playing cards, either continuously or on command, to be utilized for table gaming activity.</text> </paragraph> <paragraph num="(4)"> <text>“Bad Beat” means one or more predesignated high value Poker hands which, when held by a player as a losing hand in a round of play, results in a Bad Beat payout.</text> </paragraph> <paragraph num="(5)"> <text>“Bad Beat payout” means one or more payouts made to a player upon the occurrence of a Bad Beat.</text> </paragraph> <paragraph num="(6)"> <text>“Banking table game” means a table game in which a player competes against a facility operator rather than against another player.</text> </paragraph> <paragraph num="(7)"> <text>“Boxperson” means an employee of a facility operator whose primary function is to participate in and supervise the conduct of gaming at a single craps table.</text> </paragraph> <paragraph num="(8)"> <text>“Cover card” means an opaque card that is a solid color readily distinguishable from the color of the backs and edges of the playing cards.</text> </paragraph> <paragraph num="(9)"> <text>Dealer Controlled Electronic Table Game.</text> <paragraph num="(a)"> <text>“Dealer controlled electronic table game” means a table game or table game equipment that:</text> <paragraph num="(i)"> <text>Requires a live dealer to operate it;</text> </paragraph> <paragraph num="(ii)"> <text>Utilizes electronics as part of the games operation to collect and store game outcome, accounting and other significant event data; and</text> </paragraph> <paragraph num="(iii)"> <text>Permits wagering to be conducted electronically at a table game that is operated by a dealer.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A “dealer controlled electronic table game” may not randomly determine the game of chance.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Dealing shoe” means a device that holds multiple decks of playing cards that the dealer deals during the operation of a table game.</text> </paragraph> <paragraph num="(11)"> <text>“Direct Bet Coupon” means an approved wagering instrument with a stated denomination that, when presented at a banking game, the patron may use for wagering.</text> </paragraph> <paragraph num="(12)"> <text>“Fill” means the distribution of gaming chips, coins, and plaques to a gaming table to replenish the table inventory.</text> </paragraph> <paragraph num="(13)"> <text>“Match Play Coupon” means an approved wagering instrument with a stated denomination that when presented with gaming chips at a banking game is included in the amount of the patron’s wager.</text> </paragraph> <paragraph num="(14)"> <text>“Nonbanking table game” means a table game in which a player competes against another player and in which the facility operator collects a rake.</text> </paragraph> <paragraph num="(15)"> <text>“Pit clerk” means an employee of a facility operator whose primary function is to prepare documentation required for the operation of table games, including requests for fills, requests for credits, counter checks or other documents that evidence the exchange of gaming chips.</text> </paragraph> <paragraph num="(16)"> <text>“Pit manager” means an employee of a facility operator whose primary function is to supervise all of the table games in one or more gaming pits.</text> </paragraph> <paragraph num="(17)"> <text>“Poker rake chip” means a chip used by dealers to facilitate the collection of the rake in the poker room.</text> </paragraph> <paragraph num="(18)"> <text>“Poker shift manager” means an employee of a facility operator whose primary function is to supervise all of the poker tables in a poker room.</text> </paragraph> <paragraph num="(19)"> <text>“Rake” means a set fee or percentage assessed by a facility operator for providing the services of a dealer, gaming table or location, to allow the play or operation of any nonbanking game.</text> </paragraph> <paragraph num="(20)"> <text>“Roulette chip” means a nonvalue chip which does not contain a denomination on either face which is used for wagering at the game of Roulette.</text> </paragraph> <paragraph num="(21)"> <text>“Round of play” means one complete cycle of play during which all wagers have been placed, all cards have been dealt and all wagers have been settled in accordance with the rules of the game.</text> </paragraph> <paragraph num="(22)"> <text>“Standard rules” means the basic requirements that govern the play of a table game approved by the Commission.</text> </paragraph> <paragraph num="(23)"> <text>“Stickperson” means an employee of a facility operator whose primary function is to control the selection and use of the dice at a craps table.</text> </paragraph> <paragraph num="(24)"> <text>“Stub” means the remaining portion of a deck or decks after all cards in a round of play have been dealt.</text> </paragraph> <paragraph num="(25)"> <text>“Suit” means one of the four categories of cards:</text> <paragraph num="(a)"> <text>Clubs;</text> </paragraph> <paragraph num="(b)"> <text>Diamonds;</text> </paragraph> <paragraph num="(c)"> <text>Hearts; or</text> </paragraph> <paragraph num="(d)"> <text>Spades.</text> </paragraph> </paragraph> <paragraph num="(26)"> <text>“Table games shift manager” means an employee of a facility operator whose primary function is to supervise all of the table game operations in a licensed facility during a shift.</text> </paragraph> <paragraph num="(27)"> <text>“Table inventory” means the chips, coins, or plaques used for the operation of a table game.</text> </paragraph> <paragraph num="(28)"> <text>“Table inventory container” means the area of a gaming table where a boxman or dealer keeps gaming chips, coins or plaques used for the operation of a table game.</text> </paragraph> <paragraph num="(29)"> <text>“Tournament chip” means a chip used for wagering in a table game tournament or poker tournament.</text> </paragraph> <paragraph num="(30)"> <text>“Washing” means mixing of a deck or decks of cards or tiles by placing the cards or tiles face down on a table and mixing them around with both hands so that they are in no particular order.</text> </paragraph> <paragraph num="(31)"> <text>“Vigorish” means a percentage commission that is taken by a facility operator from a wager placed by a player or the winnings of a player.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02 and 9-1A-04, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01 and .02 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 471); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective January 2, 2014 (41:2 Md. R. 89); emergency status expired May 12, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective May 26, 2014 (41:10 Md. R. 566); October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="02" heading="Table Game Equipment"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Chip runner” means an employee of a facility operator whose job duties include transporting cash to the poker room cage or the poker cashier window at the main cage for dealers or players of the poker room to be exchanged for value chips.</text> </paragraph> <paragraph num="(2)"> <text>“Edge” means the surface of a gaming chip across which its thickness can be measured in a perpendicular line from one face to the other.</text> </paragraph> <paragraph num="(3)"> <text>“Edge spot” means an identifying characteristic used on the edge of each value chip issued by a facility operator.</text> </paragraph> <paragraph num="(4)"> <text>“Face” means each of the two surfaces of a gaming chip across which the diameter of the gaming chip can be measured.</text> </paragraph> <paragraph num="(5)"> <text>“Game account” means the funds that are available to a player for use at a dealer controlled electronic table game.</text> </paragraph> <paragraph num="(6)"> <text>“Impress” means the roulette chips, which are used for gaming, that remain at each roulette table.</text> </paragraph> <paragraph num="(7)"> <text>“Impressment” means an inventory conducted on each impress.</text> </paragraph> <paragraph num="(8)"> <text>“Primary color” means the predominant color used on a gaming chip.</text> </paragraph> <paragraph num="(9)"> <text>“RFID card” means a card which contains a radio-frequency identification tag which can be used to determine the value on the face of the card.</text> </paragraph> <paragraph num="(10)"> <text>“RFID chip” means a value or roulette chip which contains a radio-frequency identification tag which can be used to determine the authenticity of the chip.</text> </paragraph> <paragraph num="(11)"> <text>“Secondary color” means any color on the face or edge of the gaming chip that is used as a contrast to the gaming chip’s primary color.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Gaming Chips and Promotional Chips."> <paragraph num="A."> <text>A gaming chip issued by a facility operator shall be in the form of a disk.</text> </paragraph> <paragraph num="B."> <text>A gaming chip may not be issued by a facility operator or utilized in a facility until:</text> <paragraph num="(1)"> <text>The facility operator submits to the Commission for approval the design specifications of the proposed gaming chip, including a detailed schematic depicting the actual size and location of:</text> <paragraph num="(a)"> <text>Each face, including any indentations or impressions;</text> </paragraph> <paragraph num="(b)"> <text>The edge; and</text> </paragraph> <paragraph num="(c)"> <text>Any colors, words, designs, graphics, or security measures contained on the gaming chip;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The facility operator submits to the Commission, a sample of each gaming chip, manufactured in accordance with its approved design specifications; and</text> </paragraph> <paragraph num="(3)"> <text>The Commission approves the gaming chip design under COMAR 36.05.03.16.</text> </paragraph> </paragraph> <paragraph num="C."> <text>To prevent the counterfeiting of the gaming chip, a gaming chip issued by a facility operator shall be designed and manufactured with graphics and security measures required to appear on the face or edge of a value chip under this regulation and Regulation.03 of this chapter.</text> </paragraph> <paragraph num="D."> <text>Prohibitions.</text> <paragraph num="(1)"> <text>A facility operator may not issue, use or allow a player to use in its facility, a gaming chip that it knows, or reasonably should know, is materially different from the sample of a gaming chip approved in accordance with §B of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>A facility operator or other person licensed by the Commission may not manufacture, sell or distribute to, or use in, a licensed facility outside of Maryland a gaming chip that has the same edge spot or design specifications as a chip approved for use in a facility in Maryland.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Promotional Nongaming Chips.</text> <paragraph num="(1)"> <text>A facility operator may issue a promotional nongaming chip that:</text> <paragraph num="(a)"> <text>Is unique from an approved gaming chip and promotional chip in size or color;</text> </paragraph> <paragraph num="(b)"> <text>Has no edge designs; and</text> </paragraph> <paragraph num="(c)"> <text>On both faces, bears:</text> <paragraph num="(i)"> <text>The name of the facility issuing the promotional nongaming chip; and</text> </paragraph> <paragraph num="(ii)"> <text>Language that the promotional nongaming chip has no redeemable value.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A promotional nongaming chip may not be used for table game play in a facility.</text> </paragraph> <paragraph num="(3)"> <text>To prevent confusion with approved gaming chips in use in Maryland facilities, the physical characteristics of promotional nongaming chips must be sufficiently distinguishable from approved gaming chips.</text> </paragraph> <paragraph num="(4)"> <text>A facility operator shall submit to the Commission for approval a detailed schematic depicting the actual size, face, and any colors, words, designs, or graphics on the promotional nongaming chip under COMAR 36.05.03.16.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A facility operator may issue a promotional chip with value that is permitted to be used for gaming purposes in a licensed facility.</text> <paragraph num="(1)"> <text>The physical characteristics of promotional chips with value must be sufficiently distinguishable from approved gaming chips issued by any facility operator in Maryland so as to reasonably ensure that the promotional chips with value will not to be confused with approved gaming chips and promotional nongaming chips.</text> </paragraph> <paragraph num="(2)"> <text>A facility operator shall submit to the Commission for approval, under COMAR 36.05.03.16, a detailed schematic depicting the actual size, face and any colors, words, designs or graphics on the promotional gaming chip.</text> </paragraph> <paragraph num="(3)"> <text>At a minimum, a promotional gaming chip shall:</text> <paragraph num="(a)"> <text>Be unique in terms of size or color;</text> </paragraph> <paragraph num="(b)"> <text>Have no edge designs;</text> </paragraph> <paragraph num="(c)"> <text>Bear the name of the facility operator issuing the promotional gaming chip; and</text> </paragraph> <paragraph num="(d)"> <text>Contain language on both faces stating value of the promotional chip.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A promotional chip with value may be redeemed only at a gaming table in which a player wagers against the house.</text> </paragraph> <paragraph num="(5)"> <text>The dealer shall deposit the promotional chip with value into the drop box attached to the gaming table at the time the winning wager is paid or the losing wager is collected.</text> </paragraph> <paragraph num="(6)"> <text>If the wager wins, it shall be paid in accordance with the terms and conditions of the promotional chip.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Value Chips."> <paragraph num="A."> <text>A facility operator may issue and use value chips in denominations of $1, $2, $2.50, $5, $20, $25, $100, $500, $1,000, $5,000, $10,000, $25,000, and other denominations approved in advance by the Commission under COMAR 36.05.03.16.</text> </paragraph> <paragraph num="B."> <text>A primary color may not be used as a secondary color on a value chip of another denomination if its use on the edge is reasonably likely to cause confusion as to the chip’s denomination when the edge alone is visible.</text> </paragraph> <paragraph num="C."> <text>A manufacturer shall submit sample color disks to the Commission that identify all primary and secondary colors to be used for the manufacture of value chips for facility operators in Maryland.</text> </paragraph> <paragraph num="D."> <text>The Commission may not approve a primary color for use in a value chip unless it visually appears, when viewed in daylight or incandescent light, as the following colors for these denominations:</text> <paragraph num="(1)"> <text>$1, white;</text> </paragraph> <paragraph num="(2)"> <text>$2, blue;</text> </paragraph> <paragraph num="(3)"> <text>$2.50, pink;</text> </paragraph> <paragraph num="(4)"> <text>$5, red;</text> </paragraph> <paragraph num="(5)"> <text>$20, yellow;</text> </paragraph> <paragraph num="(6)"> <text>$25, green;</text> </paragraph> <paragraph num="(7)"> <text>$100, black;</text> </paragraph> <paragraph num="(8)"> <text>$500, purple;</text> </paragraph> <paragraph num="(9)"> <text>$1,000, fire orange;</text> </paragraph> <paragraph num="(10)"> <text>$5,000, brown;</text> </paragraph> <paragraph num="(11)"> <text>$10,000, silver; and</text> </paragraph> <paragraph num="(12)"> <text>$25,000, gold.</text> </paragraph> </paragraph> <paragraph num="E."> <text>After the Commission has approved a manufacturer’s primary or secondary color for a gaming chip, the color shall be consistently manufactured in accordance with the approved sample color disk.</text> </paragraph> <paragraph num="F."> <text>At least once on any location of each face of a value chip, a value chip issued by a facility operator must contain identifying characteristics that are applied in a manner ensuring that each identifying characteristic is clearly visible and remains a permanent part of the value chip.</text> </paragraph> <paragraph num="G."> <text>The identifying characteristics required under §F of this regulation shall be visible to surveillance employees using the licensed facility’s surveillance system, and include:</text> <paragraph num="(1)"> <text>The denomination of the value chip, expressed in numbers;</text> </paragraph> <paragraph num="(2)"> <text>The name, logo or other Commission-approved identification of the facility operator issuing the value chip; and</text> </paragraph> <paragraph num="(3)"> <text>The letters “MD” and the name of the city or county in which the licensed facility is located.</text> </paragraph> </paragraph> <paragraph num="H."> <text>In addition to the characteristics specified in §G of this regulation, a value chip in a denomination of $100 or more must contain a design or other identifying characteristic that is unique to the gaming chip manufacturer.</text> </paragraph> <paragraph num="I."> <text>After the Commission approves a manufacturer’s value chip design or characteristic under COMAR 36.05.03.16:</text> <paragraph num="(1)"> <text>The manufacturer has the exclusive right to use that design or characteristic on any denomination of value chip;</text> </paragraph> <paragraph num="(2)"> <text>The approved unique design or characteristic:</text> <paragraph num="(a)"> <text>May be used on all value chips manufactured for use in Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>May be changed only after receiving the Commission’s written approval of a new unique design or other identifying characteristic under COMAR 36.05.03.16.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>Each value chip issued by a facility operator must contain an edge spot that:</text> <paragraph num="(1)"> <text>Is applied in a manner that ensures the edge spot:</text> <paragraph num="(a)"> <text>Is clearly visible on the edge and on each face of the value chip; and</text> </paragraph> <paragraph num="(b)"> <text>Remains a permanent part of the value chip; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Is created using both:</text> <paragraph num="(a)"> <text>The primary color of the chip; and</text> </paragraph> <paragraph num="(b)"> <text>One or more secondary colors; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Includes a design, pattern, or other feature that an individual may use to identify, through the facility’s surveillance system, the denomination of a particular value chip that is in:</text> <paragraph num="(a)"> <text>A stack of gaming chips;</text> </paragraph> <paragraph num="(b)"> <text>The table inventory; or</text> </paragraph> <paragraph num="(c)"> <text>Any other location when only the edge of the value chip is visible.</text> </paragraph> </paragraph> </paragraph> <paragraph num="K."> <text>A facility operator shall use as a secondary color to make an edge spot on a particular denomination of value chip only a secondary color that is reasonably likely to differentiate the facility operator’s value chip from the same denomination of value chip issued by any other facility operator in the State.</text> </paragraph> <paragraph num="L."> <text>If an approved value chip uses a single secondary color, no other facility operator may use a similar secondary color as the sole secondary color on the same denomination of value chip unless it is used in a different pattern or design approved by the Commission.</text> </paragraph> <paragraph num="M."> <text>A facility operator may not use the identical combination of secondary colors on the same denomination of value chip unless it is used in a different pattern or design approved by the Commission.</text> </paragraph> <paragraph num="N."> <text>A value chip issued by a facility operator is limited to a specific size for each denomination:</text> <paragraph num="(1)"> <text>Less than $500 must have a uniform diameter of 1-9/16 inch;</text> </paragraph> <paragraph num="(2)"> <text>$500 and $1,000 must have a uniform diameter of 1-9/16 inch or 1-11/16 inch; and</text> </paragraph> <paragraph num="(3)"> <text>$5,000 or more must have a uniform diameter of 1-11/16 inch.</text> </paragraph> </paragraph> <paragraph num="O."> <text>In addition to the features that are required under this regulation to appear on the face and edge of a value chip:</text> <paragraph num="(1)"> <text>Each value chip with a denomination below $100 must contain at least one anti-counterfeiting measure; and</text> </paragraph> <paragraph num="(2)"> <text>Each value chip with a denomination of $100 or more must contain at least two anti-counterfeiting measures.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Roulette Chips."> <paragraph num="A."> <text>A facility operator shall issue a roulette chip solely for the purpose of gaming at roulette.</text> </paragraph> <paragraph num="B."> <text>At least once on any location of each face of a roulette chip, a roulette chip issued by a facility operator must contain identifying characteristics that are applied in a manner ensuring that each identify characteristic is clearly visible and remains a permanent part of the roulette chip.</text> </paragraph> <paragraph num="C."> <text>The identifying characteristics required under §B of this regulation shall be visible to surveillance employees using the facility’s surveillance system, and include:</text> <paragraph num="(1)"> <text>The name, logo or other Commission-approved identification of the facility operator issuing the roulette chip;</text> </paragraph> <paragraph num="(2)"> <text>A unique design, insert or symbol that will permit a set of roulette chips being used at a particular roulette table to be distinguished from the roulette chips being used at another roulette table in the facility;</text> </paragraph> <paragraph num="(3)"> <text>The word “Roulette”;</text> </paragraph> <paragraph num="(4)"> <text>Color and design combinations distinguish the roulette chips of a player at a particular roulette table from:</text> <paragraph num="(a)"> <text>The roulette chips of another player at the same roulette table; and</text> </paragraph> <paragraph num="(b)"> <text>The value chips issued by a facility operator; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>An edge spot that:</text> <paragraph num="(a)"> <text>Is applied in a manner which ensures that the edge spot;</text> </paragraph> <paragraph num="(b)"> <text>Is clearly visible on the edge and on each face of the roulette chip; and</text> </paragraph> <paragraph num="(c)"> <text>Remains a permanent part of the roulette chip; and</text> </paragraph> <paragraph num="(d)"> <text>Is created by using the colors approved for the face of the particular roulette chip in combination with one or more other colors that provides a contrast with the color on the face of the roulette chip and that enables the roulette chip to be distinguished from the roulette chips issued by any other facility operator; and</text> </paragraph> <paragraph num="(e)"> <text>Includes a design, pattern or other feature that an individual may use to identify, through the facility’s surveillance system, the player to whom the roulette chip has been assigned when the roulette chip is placed in a stack of gaming chips or in any other location where only the edge of the roulette chip is visible.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Roulette Chips—Permitted Uses, Inventory, and Impressment."> <paragraph num="A."> <text>A roulette chip shall be issued to a particular roulette table and be used for gaming at that table only, and:</text> <paragraph num="(1)"> <text>A roulette chip used at a particular roulette table must have the same design, insert or symbol as required under Regulation .04 of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>A facility operator or an employee may not knowingly allow a player to remove a roulette chip from the roulette table to which it was issued.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A player at a roulette table may not purchase or be permitted to game with roulette chips that are identical in color and design to any roulette chip purchased by another player at the same table. When a player purchases a roulette chip, the dealer shall place a:</text> <paragraph num="(1)"> <text>Roulette chip of the same color and design in a slot or receptacle attached to the outer rim of the roulette wheel, or in another device or location approved by the Commission under COMAR 36.05.03.16; and</text> </paragraph> <paragraph num="(2)"> <text>Marker button denoting the value of a stack of 20 roulette chips of the same color and design in the slot, receptacle or other device.</text> </paragraph> </paragraph> <paragraph num="C."> <text>At least once every 3 months, a floorperson, or higher-ranking individual specified in the facility operator’s internal controls, shall complete an impressment of the Roulette chips assigned to a roulette table; and:</text> <paragraph num="(1)"> <text>The facility operator shall record the results of the impressment in the chip inventory ledger required under Regulation .11 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>If additional roulette chips are required to restore the impress, the floorperson, or higher-ranking individual specified in the facility operator’s internal controls, shall complete a Roulette Chip Impressment Form.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The completed Roulette Chip Impressment Form required under §C(2) of this regulation shall be maintained by the accounting department and contain at least the following:</text> <paragraph num="(1)"> <text>The date and time of preparation;</text> </paragraph> <paragraph num="(2)"> <text>The design schematic of the chip, including its primary color and the applicable table number;</text> </paragraph> <paragraph num="(3)"> <text>The number of roulette chips needed to restore the impress;</text> </paragraph> <paragraph num="(4)"> <text>The signature of the individual who completes the Roulette Chip Impressment Form and the impressment for the table; and</text> </paragraph> <paragraph num="(5)"> <text>The signature of the main bank cashier or chip bank cashier who issued the roulette chips to restore the impress.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The accounting department shall immediately report a discrepancy in the impressment to a Commission compliance representative on a written report that includes at least the following for each roulette chip color and design:</text> <paragraph num="(1)"> <text>The balance on hand at the beginning of the 3-month period;</text> </paragraph> <paragraph num="(2)"> <text>The number of roulette chips distributed to the roulette table during the 3-month period;</text> </paragraph> <paragraph num="(3)"> <text>The number of roulette chips returned to inventory during the 3-month period; and</text> </paragraph> <paragraph num="(4)"> <text>The balance on hand at the end of the 3-month period.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Tournament Chips."> <paragraph num="A."> <text>If a facility operator conducts a table game tournament, the tournament shall be conducted using tournament chips.</text> </paragraph> <paragraph num="B."> <text>The identifying characteristics of a tournament chip must include at least:</text> <paragraph num="(1)"> <text>The name, logo, or other approved identification of the facility operator issuing the tournament chip;</text> </paragraph> <paragraph num="(2)"> <text>The word “Tournament”;</text> </paragraph> <paragraph num="(3)"> <text>The denomination of the chip;</text> </paragraph> <paragraph num="(4)"> <text>The phrase “No Cash Value”;</text> </paragraph> <paragraph num="(5)"> <text>Color or design combinations that distinguish the tournament chips from:</text> <paragraph num="(a)"> <text>Roulette chips used for the play of roulette at the facility;</text> </paragraph> <paragraph num="(b)"> <text>Value chips issued by a facility operator in the State; and</text> </paragraph> <paragraph num="(c)"> <text>Poker rake chips.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall store tournament chips in a secure area approved in advance by the Commission under COMAR 36.05.03.16.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall conduct an inventory of all tournament chips prior to the start and after the completion of each tournament.</text> </paragraph> <paragraph num="E."> <text>A facility operator shall send a weekly report to Commission compliance representatives of a discrepancy in the inventory on a report that shall include the balance for each denomination of tournament chip on hand at the beginning of the tournament and the balance on hand at the end of each tournament.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Poker Rake Chips."> <paragraph num="A."> <text>To facilitate the collection of the rake, a facility operator may use poker rake chips in the poker room.</text> </paragraph> <paragraph num="B."> <text>Poker rake chips:</text> <paragraph num="(1)"> <text>Shall only be used by dealers; and</text> </paragraph> <paragraph num="(2)"> <text>May only be substituted for value chips that have been collected as part of the rake prior to the rake being placed in a drop box.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A dealer shall keep unused poker rake chips in the table inventory container.</text> </paragraph> <paragraph num="D."> <text>The denominations that may be used for poker rake chips are $2, $3, or $4.</text> </paragraph> <paragraph num="E."> <text>The identifying characteristics of a poker rake chip must include:</text> <paragraph num="(1)"> <text>The name, logo or other approved identification of the facility operator;</text> </paragraph> <paragraph num="(2)"> <text>The words “Poker Rake Chip”;</text> </paragraph> <paragraph num="(3)"> <text>One of the following denominations:</text> <paragraph num="(a)"> <text>“$2”;</text> </paragraph> <paragraph num="(b)"> <text>“$3”;or</text> </paragraph> <paragraph num="(c)"> <text>“$4”; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Color or design combinations to distinguish the poker rake chips from:</text> <paragraph num="(a)"> <text>Roulette chips used for the play of roulette at the facility;</text> </paragraph> <paragraph num="(b)"> <text>Tournament chips used for tournament play at the facility; and</text> </paragraph> <paragraph num="(c)"> <text>Value chips issued by any facility operator in the State.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Additional Gaming Chips; Removing Chips from Use."> <paragraph num="A."> <text>Value Chips.</text> <paragraph num="(1)"> <text>Within 120 days of the commencement of table games at a facility, the facility operator shall have at least one Commission-approved set of value chips that may be used as a back-up for $100 and $500 value chips in active use.</text> </paragraph> <paragraph num="(2)"> <text>A back-up set of value chips maintained for use by a facility operator shall have secondary colors that are different from the secondary colors of the value chips in active use and may use a different shade of the primary color.</text> </paragraph> <paragraph num="(3)"> <text>A back-up set of value chips shall conform to the color and design requirements in this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Roulette Chips.</text> <paragraph num="(1)"> <text>A facility operator shall have at least one reserve set of roulette chips for each color roulette chip used in the facility with a design insert or symbol different from the roulette chips comprising the primary sets.</text> </paragraph> <paragraph num="(2)"> <text>A back-up set of roulette chips must conform to the color and design requirements in this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>RFID chips. If a facility operator uses RFID chips for its value or roulette chips, the facility operator may submit a request to the Commission for waiver of the requirements in §A or B of this regulation B that shall include at least:</text> <paragraph num="(1)"> <text>A detailed description of the RFID technology and devices that will be used at the facility;</text> </paragraph> <paragraph num="(2)"> <text>A detailed description of how the RFID chips and related equipment will be used in the facility;</text> </paragraph> <paragraph num="(3)"> <text>A detailed explanation of how the use of the RFID chips and related equipment will reduce or eliminate the potential use of counterfeit value or roulette chips; and</text> </paragraph> <paragraph num="(4)"> <text>The approximate length of time it will take the facility operator to install the necessary devices and related equipment for the RFID technology to be operational in the facility.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The facility operator shall remove a set of gaming chips in use from active play when:</text> <paragraph num="(1)"> <text>A facility operator reasonably believes that the facility is taking on multiple counterfeit chips valued at $100 or more so as to call into question the security and integrity of the gaming chip set;</text> </paragraph> <paragraph num="(2)"> <text>A facility operator determines there is an impropriety or defect in the use of a set of chips makes removal of the chips in active use necessary; and</text> </paragraph> <paragraph num="(3)"> <text>The Commission directs a facility operator to remove a set of chips from active use.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator shall place into active play a Commission- approved back-up set of value chips or a reserve set of roulette chips required under §§A and B of this regulation when an active set is removed.</text> </paragraph> <paragraph num="F."> <text>Before a set of chips in active use is removed from play, the facility operator shall notify the Commission compliance representatives of the impending removal and the reasons for the removal.</text> </paragraph> <paragraph num="G."> <text>A facility operator shall immediately notify a Commission compliance representative of the discovery of counterfeit value chips.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Plaques."> <paragraph num="A."> <text>A plaque issued by a facility operator shall be a solid, one-piece object constructed entirely of plastic or other substance, and a plaque shall:</text> <paragraph num="(1)"> <text>Be square, rectangular, or elliptical in shape;</text> </paragraph> <paragraph num="(2)"> <text>Have at least two, but not more than six, smooth, plane surfaces;</text> </paragraph> <paragraph num="(3)"> <text>Have at least two faces opposite and parallel to each other and identical in shape;</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall not issue a plaque or allow its use in a facility unless:</text> <paragraph num="(1)"> <text>The facility operator submitted design specifications of the proposed plaque to the Commission that included a detailed schematic depicting the actual size and location of:</text> <paragraph num="(a)"> <text>Each face;</text> </paragraph> <paragraph num="(b)"> <text>The edge; and</text> </paragraph> <paragraph num="(c)"> <text>Any colors, words, designs, graphics, or security measures on the plaque including the minimum identifying characteristics listed in §F of this regulation;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In accordance with COMAR 36.05.03.16, the facility operator made available for the Commission’s inspection a sample plaque of each denomination to be manufactured and used in accordance with its approved design specifications;</text> </paragraph> <paragraph num="(3)"> <text>The Commission approved the facility operator’s submissions; and</text> </paragraph> <paragraph num="(4)"> <text>The facility operator submitted to the Commission a system of internal procedures and administrative and accounting controls governing the distribution, redemption, receipt and inventory of plaques, by serial number that the Commission approved as part of the facility operator’s internal controls.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Dimensions of a Plaque.</text> <paragraph num="(1)"> <text>The face of a square plaque shall have a surface area of not less than 9 square inches.</text> </paragraph> <paragraph num="(2)"> <text>The face of a rectangular or elliptical plaque may not be less than 3 inches in length by 2 inches in width.</text> </paragraph> <paragraph num="(3)"> <text>The length and width of an elliptical plaque shall be measured by its axes.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A plaque issued by a facility operator shall be designed and manufactured with sufficient graphics or other security measures to prevent, to the extent possible, the counterfeiting of the plaque.</text> </paragraph> <paragraph num="E."> <text>Denominations.</text> <paragraph num="(1)"> <text>A facility operator may issue and use plaques in denominations of $5,000 or $10,000, and in other denominations approved by the Commission in advance under COMAR 36.05.03.16.</text> </paragraph> <paragraph num="(2)"> <text>A plaque of a specific denomination used by a facility operator shall be in a shape and of a size that is identical to the shape and size of all other plaques of that denomination issued by the facility operator.</text> </paragraph> <paragraph num="(3)"> <text>The size and shape of each denomination of plaque issued by a facility operator must be readily distinguishable from the size and shape of every other denomination of plaque issued by the facility operator.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A plaque issued by a facility operator must contain identifying characteristics that appear at least once on each face of the plaque and are applied in a manner that ensures each identifying characteristic is clearly visible and remains a permanent part of the plaque.</text> </paragraph> <paragraph num="G."> <text>The characteristics required under §F of this regulation must be visible to surveillance employees using the licensed facility’s surveillance system, and shall include at least:</text> <paragraph num="(1)"> <text>The denomination of the plaque, expressed in numbers of at least 3/8 inch in height;</text> </paragraph> <paragraph num="(2)"> <text>The name, logo, or other approved identification of the facility operator issuing the plaque; and</text> </paragraph> <paragraph num="(3)"> <text>A unique serial number.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A facility operator may not issue, use, or allow a player to use in its facility, any plaque that it knows, or reasonably should know, is materially different from the sample of that plaque approved in accordance with §B of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Permissible Wagers; Exchange and Redemption of Chips and Plaques."> <paragraph num="A."> <text>Wagering at table games in a facility shall be conducted with gaming chips, plaques, electronic wagering credits, and other wagering instruments approved in advance by the Commission.</text> </paragraph> <paragraph num="B."> <text>A value chip previously issued by a facility operator that is not in active use by that facility operator may not be used for any gaming purpose in a facility, and may be redeemed only at the cage as provided in §E of this regulation.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall issue a gaming chip or plaque to a player only at the request of the player, and may not be given as change in any transaction other than a gaming transaction.</text> </paragraph> <paragraph num="D."> <text>A gaming chip or plaque shall be issued to player by:</text> <paragraph num="(1)"> <text>A dealer at a banking or nonbanking table game;</text> </paragraph> <paragraph num="(2)"> <text>The poker room cage, poker room impressed bank or the poker window cashier at the main cage; or</text> </paragraph> <paragraph num="(3)"> <text>A chip runner to a player seated at a poker table at which a game is in progress.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A player may redeem a plaque or value chip only at the cage.</text> </paragraph> <paragraph num="F."> <text>Except as provided in §§L and M of this regulation, or as otherwise approved in advance by the Commission, a facility operator shall redeem a gaming chip or plaque that it issued only from players.</text> </paragraph> <paragraph num="G."> <text>Roulette Chips.</text> <paragraph num="(1)"> <text>A player may present a roulette chip for redemption only at the roulette table from which it was issued.</text> </paragraph> <paragraph num="(2)"> <text>When a player presents a roulette chip for redemption, a dealer shall accept it in exchange for an equivalent amount of value chips.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Value Chips at Roulette.</text> <paragraph num="(1)"> <text>A facility operator may permit, limit or prohibit the use of a value chip in gaming at roulette in accordance with its rules submission submitted under COMAR 36.05.03.19.</text> </paragraph> <paragraph num="(2)"> <text>If a value chip is use at roulette, the facility operator and its employees shall keep accurate account of the wagers being made with value chips so that wager made by one player are not confused with the wagers made by another player at the table.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A gaming chip or plaque is solely evidence of a debt that the issuing facility operator owes to an individual legally in possession of the gaming chip or plaque, and it remains the property of the issuing facility operator.</text> </paragraph> <paragraph num="J."> <text>Redemption at the Facility.</text> <paragraph num="(1)"> <text>A facility operator shall have the right at any time to demand that an individual possessing a gaming chip or plaque surrender the gaming chip or plaque for redemption in accordance with this regulation.</text> </paragraph> <paragraph num="(2)"> <text>Unless a gaming chip or plaque was obtained or is being used unlawfully, a facility operator shall promptly redeem its gaming chip or plaque presented by a player.</text> </paragraph> <paragraph num="(3)"> <text>A facility operator shall redeem its value chip or plaque by:</text> <paragraph num="(a)"> <text>Exchanging the value chip or plaque for an equivalent amount of cash; or</text> </paragraph> <paragraph num="(b)"> <text>Exchanging the value chip or plaque for a check issued by the facility operator in the amount of the value chip or plaque surrendered and dated the day of the redemption.</text> </paragraph> </paragraph> </paragraph> <paragraph num="K."> <text>Redemption by Mail.</text> <paragraph num="(1)"> <text>Notwithstanding the requirements of §J of this regulation, if a player requests by mail to redeem value chips, in any amount, by mail, a facility operator may effectuate the redemption in accordance with its approved internal controls.</text> </paragraph> <paragraph num="(2)"> <text>A facility operator’s internal controls for redemption of a value chip by mail shall, at a minimum, include procedures for the:</text> <paragraph num="(a)"> <text>Facility operator’s issuance of a check to the player; and</text> </paragraph> <paragraph num="(b)"> <text>Transfer of a surrendered value chip to the chip bank in a documented transaction.</text> </paragraph> </paragraph> </paragraph> <paragraph num="L."> <text>A facility operator shall accept, exchange, use or redeem only a gaming chip or plaque that the facility operator has issued and may not knowingly accept, exchange, use or redeem a gaming chip or plaque, or an object that appears to be a gaming chip or plaque, that has been issued by any other facility operator.</text> </paragraph> <paragraph num="M."> <text>Notwithstanding §L of this regulation, a facility operator may accept and redeem a value chip issued by another facility operator in the State from a player.</text> </paragraph> <paragraph num="N."> <text>Employee Receiving a Value Chip as Gratuity.</text> <paragraph num="(1)"> <text>A video lottery employee of a facility operator may receive a value chip as a gratuity.</text> </paragraph> <paragraph num="(2)"> <text>A video lottery employee may receive a value chip in exchange for food or beverage that a player purchases from the video lottery employee.</text> </paragraph> <paragraph num="(3)"> <text>A video lottery employee of a facility operator who receives a value chip as a gratuity, or in exchange for food or beverage, shall redeem the value chip prior to leaving the facility at the end of the work shift during which the employee received the value chip.</text> </paragraph> <paragraph num="(4)"> <text>A value chip received by a video lottery employee shall be redeemed at the cage or at another secure location approved in advance by the Commission.</text> </paragraph> <paragraph num="(5)"> <text>A value chip received by a video lottery employee that is redeemed at a noncage employee redemption site shall be exchanged on a daily basis with the cage.</text> </paragraph> <paragraph num="(6)"> <text>A facility operator shall include in its internal controls a means of ensuring the proper exchange and accounting of a value chip received as a gratuity or for the purchase of food and beverage.</text> </paragraph> </paragraph> <paragraph num="O."> <text>Redemption of Facility Chips From Another Operator.</text> <paragraph num="(1)"> <text>A facility operator shall promptly redeem its own value chip that is presented to it by another facility operator in the State.</text> </paragraph> <paragraph num="(2)"> <text>A facility operator shall include in its internal controls a system for the exchange, with other legally operated facility operators, of a value chip that:</text> <paragraph num="(a)"> <text>Is in the facility operator’s possession that has been issued by another facility operator in the State; and</text> </paragraph> <paragraph num="(b)"> <text>The facility operator has issued that is presented to it for redemption by another facility operator in the State.</text> </paragraph> </paragraph> </paragraph> <paragraph num="P."> <text>A facility operator shall post, in a prominent place on the front of the main cage, any satellite cage and the poker room cage, a sign that reads as follows: “Gaming chips or plaques issued by another facility may not be used, exchanged or redeemed in this facility.”</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Chips and Plaques—Receipt, Inventory, Security, Storage, and Destruction."> <paragraph num="A."> <text>Receipt.</text> <paragraph num="(1)"> <text>A shipment of gaming chips or plaques that is received from a manufacturer or supplier shall be unloaded and transported to a secure area, which is covered by the facility operator’s surveillance system, by at least two employees of the facility operator.</text> </paragraph> <paragraph num="(2)"> <text>The chips or plaques shall then be opened and checked by at least two employees, who shall promptly report to a Commission compliance representative any deviation between the invoice accompanying the shipment of gaming chips or plaques and the actual chips or plaques received, or any defects found in the chips or plaques.</text> </paragraph> <paragraph num="(3)"> <text>The functions required under §A(1) and (2) of this regulation shall be performed by at least the following employees of the facility operator:</text> <paragraph num="(a)"> <text>A supervisor from the accounting department; and</text> </paragraph> <paragraph num="(b)"> <text>An employee from the security department.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Inventory.</text> <paragraph num="(1)"> <text>After a shipment of gaming chips or plaques is checked as required under §A of this regulation, the employees identified in §A(3) of this regulation shall record, in a chip inventory ledger, the:</text> <paragraph num="(a)"> <text>Denomination of the value chips and plaques received;</text> </paragraph> <paragraph num="(b)"> <text>Number of each denomination;</text> </paragraph> <paragraph num="(c)"> <text>Serial numbers of the value chips and plaques received;</text> </paragraph> <paragraph num="(d)"> <text>For any roulette chips received, the number and description of the roulette chips received;</text> </paragraph> <paragraph num="(e)"> <text>Date of the receipt;</text> </paragraph> <paragraph num="(f)"> <text>Signatures and license numbers of the employees who checked the chips and plaques.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the value chips or roulette chips are not to be immediately put into active use, the chip inventory ledger must also identify the storage location of the chips.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Storage.</text> <paragraph num="(1)"> <text>A gaming chip or plaque not in active use shall be stored in:</text> <paragraph num="(a)"> <text>A vault located in the main bank;</text> </paragraph> <paragraph num="(b)"> <text>Locked cabinets in the main cage; or</text> </paragraph> <paragraph num="(c)"> <text>Another restricted storage area approved in advance by the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A gaming chip or plaque may not be stored in the same storage area as dice, cards, pai gow tiles or any other table game equipment.</text> </paragraph> <paragraph num="(3)"> <text>When a gaming chip or plaque is removed from or returned to an approved storage area, at least the two employees identified in §A(3) of this regulation shall be present and ensure that the chip inventory ledger contains the following information:</text> <paragraph num="(a)"> <text>Date;</text> </paragraph> <paragraph num="(b)"> <text>Signatures and license numbers of the employees supervising the transaction;</text> </paragraph> <paragraph num="(c)"> <text>Quantity;</text> </paragraph> <paragraph num="(d)"> <text>If applicable, the serial numbers and dollar amounts for each denomination of value chip or plaque;</text> </paragraph> <paragraph num="(e)"> <text>Number and description of the roulette chip;</text> </paragraph> <paragraph num="(f)"> <text>Specific storage area being entered; and</text> </paragraph> <paragraph num="(g)"> <text>Reason for the entry into the storage area.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>At the end of each gaming day, a facility operator shall compute and record the unredeemed liability for each denomination of value chip and plaque according to procedures specified in the facility operator’s internal controls.</text> </paragraph> <paragraph num="E."> <text>Inventory.</text> <paragraph num="(1)"> <text>A facility operator shall inventory all sets of value chips, roulette chips and plaques in its possession and record the result of the inventory in the chip inventory ledger.</text> </paragraph> <paragraph num="(2)"> <text>The inventory required under §E(1) of this regulation shall be conducted at least once every month for value chips and plaques and at least once every 3 months for roulette chips.</text> </paragraph> <paragraph num="(3)"> <text>If a facility operator’s inventory procedures incorporate the sealing of the locked compartment containing the facility’s value chips, roulette chips, and plaques not in active use, a physical inventory of value chips, roulette chips, and plaques not in active use is required to be conducted annually.</text> </paragraph> <paragraph num="(4)"> <text>A facility operator shall include in its internal controls the procedures to be utilized to inventory value chips, roulette chips, and plaques.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Destruction.</text> <paragraph num="(1)"> <text>At least 5 days prior to the destruction of a gaming chip or plaque, a facility operator shall notify a Commission compliance representative of the:</text> <paragraph num="(a)"> <text>Date and the location at which the destruction will be performed;</text> </paragraph> <paragraph num="(b)"> <text>Denomination, number, and when applicable, the serial number and amount of value chips or plaques to be destroyed;</text> </paragraph> <paragraph num="(c)"> <text>Description and number of roulette chips to be destroyed; and</text> </paragraph> <paragraph num="(d)"> <text>Detailed explanation of the method of destruction.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The destruction of a gaming chip or plaque shall be carried out in the presence of at least the two employees identified in §A(3) of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>The facility operator shall record in the chip inventory ledger the names and license numbers of all employees and nonemployees involved in each destruction, and:</text> <paragraph num="(a)"> <text>The denomination, quantity, total value, and serial number, if applicable, of all value chips or plaques destroyed;</text> </paragraph> <paragraph num="(b)"> <text>The description and number of roulette chips destroyed;</text> </paragraph> <paragraph num="(c)"> <text>The signatures and license numbers of the individuals who carried out the destruction; and</text> </paragraph> <paragraph num="(d)"> <text>The date and location where the destruction took place.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>A facility operator shall ensure that at all times there is adequate security for all gaming chips and plaques in the facility operator’s possession.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Dice."> <paragraph num="A."> <text>Except as otherwise provided in §§B and C of this regulation, each die used in the play of table games shall:</text> <paragraph num="(1)"> <text>Be formed in the shape of a perfect cube and of a size not smaller than 0.750 inch on each side nor any larger than 0.775 inch on each side, with a tolerance of +/- 0.005;</text> </paragraph> <paragraph num="(2)"> <text>Be transparent and made exclusively of cellulose except for the spots, name or logo of the facility operator, and serial number or letters on the die;</text> </paragraph> <paragraph num="(3)"> <text>Be perfectly flat on the surface of each of its sides, with the spots contained in each side flush with the area surrounding them;</text> </paragraph> <paragraph num="(4)"> <text>Have all edges and corners perfectly square and forming 90 degree angles.</text> </paragraph> <paragraph num="(5)"> <text>Have the texture and finish of each side identical to the texture and finish of all other sides;</text> </paragraph> <paragraph num="(6)"> <text>Have its weight equally distributed throughout the cube with no side of the cube heavier or lighter than any other side of the cube;</text> </paragraph> <paragraph num="(7)"> <text>Have the six sides bearing white circular spots from one to six respectively with the diameter of each spot equal to the diameter of every other spot on the die;</text> </paragraph> <paragraph num="(8)"> <text>Have spots arranged so that:</text> <paragraph num="(a)"> <text>The side containing one spot is directly opposite the side containing six spots;</text> </paragraph> <paragraph num="(b)"> <text>The side containing two spots is directly opposite the side containing five spots; and</text> </paragraph> <paragraph num="(c)"> <text>The side containing three spots is directly opposite the side containing four spots;</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Have each spot shall be placed on the die by drilling into the surface of the cube and filling the drilled out portion with a compound which is equal in weight to the weight of the cellulose drilled out and which forms a permanent bond with the cellulose cube and extends into the cube exactly the same distance as every other spot extends into the cube to an accuracy tolerance of 0.0004 inch;</text> </paragraph> <paragraph num="(10)"> <text>Have imprinted or impressed on the die a serial number or letters and the name or logo of the facility operator using the die.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Pai Gow and Pai Gow Poker. Dice used in the table games of pai gow and pai gow poker must comply with the requirements of §A of this regulation, except as follows:</text> <paragraph num="(1)"> <text>Each die must be formed in the shape of a perfect cube and of a size not smaller than 0.637 inch on each side nor any larger than 0.643 inch on each side;</text> </paragraph> <paragraph num="(2)"> <text>With the Commission’s approval, a facility operator may have an identifying mark imprinted or impressed on each die instead of the name or logo of the facility operator; and</text> </paragraph> <paragraph num="(3)"> <text>The spots on each die do not have to be equal in diameter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Sic Bo. Dice used in the table game of sic bo must comply with §A of this regulation, except each die may be formed in the shape of a cube 0.625 inch on each side with ball edge corners.</text> </paragraph> <paragraph num="D."> <text>Dice may not be used in a facility unless a detailed schematic depicting the actual size and color of the dice, and the location of serial numbers, letters or logos on the dice, has been submitted to, and approved by, the Commission under COMAR 36.05.03.16.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Dice — Receipt, Storage, Inspection, and Removal."> <paragraph num="A."> <text>Receipt.</text> <paragraph num="(1)"> <text>A shipment of dice that is received from a manufacturer or supplier shall be immediately unloaded and transported to a secure area which is covered by the facility operator’s surveillance system under the supervision of at least two employees of the facility operator.</text> </paragraph> <paragraph num="(2)"> <text>The boxes of dice shall then be inspected by at least two employees of the facility operator to ensure that the seals on each box are intact, unbroken and free from tampering.</text> <paragraph num="(a)"> <text>Boxes that do not appear to be intact, unbroken and free from tampering shall be immediately inspected to ensure that the dice in those boxes conform to the requirements of this chapter and there is no evidence of tampering with them.</text> </paragraph> <paragraph num="(b)"> <text>If dice inspected as required under §A(2)(a) of this regulation show no evidence of tampering, they shall be placed, along with boxes of dice that are intact, unbroken and free from tampering, for storage.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Dice shall be stored in a storage area that the Commission has approved in advance under COMAR 36.05.03.16.</text> </paragraph> <paragraph num="(4)"> <text>The functions required under §A(1), (2), and (3) of this regulation shall be performed by at least the following employees of the facility operator:</text> <paragraph num="(a)"> <text>A floor supervisor or above; and</text> </paragraph> <paragraph num="(b)"> <text>An employee from the security department.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Storage. The Commission-approved storage area must have two separate locks, to which access shall be controlled as follows:</text> <paragraph num="(1)"> <text>The security department shall maintain one key and the gaming operations department shall maintain the other key; and</text> </paragraph> <paragraph num="(2)"> <text>An employee of the gaming operations department, below a floorperson in the organizational hierarchy, may not have access to the gaming operations department key.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Dice which are to be distributed to gaming pits or tables for use in gaming shall be distributed from the approved storage area.</text> </paragraph> <paragraph num="D."> <text>Once each gaming day and at other times as may be necessary, a floorperson or above, in the presence of a security department employee, shall remove the appropriate number of dice for that gaming day from the approved storage area.</text> </paragraph> <paragraph num="E."> <text>Envelopes and containers used to hold or transport dice must be:</text> <paragraph num="(1)"> <text>Transparent;</text> </paragraph> <paragraph num="(2)"> <text>Designed or constructed with seals so that any tampering is evident; and</text> </paragraph> <paragraph num="(3)"> <text>Submitted to the Commission and approved under COMAR 36.05.03.16.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Inspection and Distribution. Dice shall be inspected and distributed to the gaming tables in accordance with one of the following alternatives:</text> <paragraph num="(1)"> <text>Alternative No. 1.</text> <paragraph num="(a)"> <text>The floorperson or above, and the security department employee who removed the dice from the approved storage area, shall distribute sufficient dice directly to the pit manager or above in each pit, or place them in a locked compartment in the pit stand, the keys to which shall be in the possession of the pit manager or above.</text> </paragraph> <paragraph num="(b)"> <text>Immediately upon opening a table for gaming, the floorperson or above shall distribute a set of dice to the table.</text> <paragraph num="(i)"> <text>To ensure that the dice are in a condition to ensure fair play and otherwise conform to the requirements of this chapter, at the time of receipt of a set of dice, a floorperson at each craps, pai gow, pai gow poker, sic bo or mini-craps table, shall, in the presence of the dealer, inspect the dice with a micrometer or any other instrument approved by the Commission to perform the function of a micrometer, a balancing caliper, a steel set square and a magnet.</text> </paragraph> <paragraph num="(ii)"> <text>The instruments described in §F(1)(b)(i) of this regulation shall be kept in a compartment at each craps table or pit stand and shall be at all times readily available for use by the Commission compliance representatives or other Commission employees.</text> </paragraph> <paragraph num="(iii)"> <text>The inspection required under §F(1)(b)(i) of this regulation shall be performed on a flat surface which allows the dice inspection to be observed through the facility operator’s surveillance system and by any persons in the immediate vicinity of the table.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Following the inspection required under §F(1)(b)(i) of this regulation:</text> <paragraph num="(i)"> <text>For craps, the floorperson shall, in the presence of a dealer, place the dice in a cup on the table for use in gaming;</text> </paragraph> <paragraph num="(ii)"> <text>For mini-craps, the floorperson shall, in the presence of a dealer, place the dice in a cup on the table for use in gaming;</text> </paragraph> <paragraph num="(iii)"> <text>For sic bo, the floorperson shall, in the presence of the dealer, place the required number of dice into the shaker and seal or lock the shaker, and the floorperson shall secure the sic bo shaker to the table in the presence of the dealer who observed the inspection; or</text> </paragraph> <paragraph num="(iv)"> <text>For pai gow and pai gow poker, the floorperson shall, in the presence of the dealer, place the dice in the pai gow shaker.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>The floorperson or above shall place extra dice for the dice reserve in the pit stand.</text> <paragraph num="(i)"> <text>Dice in the pit stand shall be placed in a locked compartment, the keys to which shall be in the possession of the floorperson or above.</text> </paragraph> <paragraph num="(ii)"> <text>No dice taken from the pit stand reserve may be used for actual gaming until the dice have been inspected in accordance with §F(1)(b)(i) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Alternative No. 2.</text> <paragraph num="(a)"> <text>The pit manager or above and the security department employee who removed the dice from the approved storage area shall distribute the dice directly to the following facility operator’s employees who shall perform an inspection in each pit:</text> <paragraph num="(i)"> <text>For craps and mini-craps, a floorperson in the presence of another floorperson, both of whom are assigned the responsibility of supervising the operation and conduct of a craps or mini-craps game;</text> </paragraph> <paragraph num="(ii)"> <text>For sic bo, pai gow and pai gow poker, a floorperson, in the presence of another floorperson, both of whom are assigned the responsibility of supervising the operation and conduct of sic bo, pai gow or pai gow poker games;</text> </paragraph> <paragraph num="(iii)"> <text>For storage of the dice for the dice reserve in the pit stand, to the pit manager or above.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>To ensure that the dice are in a condition to ensure fair play and otherwise conform to the requirements of this chapter, at the time of receipt of a set of dice, the dice shall be inspected by one of the individuals listed in §F(2)(a) of this regulation with a micrometer or other instrument approved by the Commission which performs the same function as a micrometer, a balancing caliper, a steel set square, and a magnet.</text> </paragraph> <paragraph num="(c)"> <text>The instruments described in §F(2)(b) of this regulation shall be kept at the pit stand and shall be at all times readily available for use by the Commission compliance representatives or other Commission employees.</text> </paragraph> <paragraph num="(d)"> <text>The inspection required under §F(2)(a) of this regulation shall be performed on a flat surface which allows the dice inspection to be observed through the facility operator’s surveillance system and by any persons in the immediate vicinity of the pit stand.</text> </paragraph> <paragraph num="(e)"> <text>After completion of the inspection, the dice shall be distributed as follows:</text> <paragraph num="(i)"> <text>For craps and mini-craps, the floorperson who inspected the dice shall, in the presence of the other floorperson who observed the inspection, distribute the dice to the floorperson assigned at each craps table or to the floorperson assigned at each mini-craps table, and the craps floorperson or the mini-craps floorperson shall, in the presence of the dealer, place the dice in a cup on the table for use in gaming.</text> </paragraph> <paragraph num="(ii)"> <text>For sic bo, the floorperson who inspected the dice shall, in the presence of the other floorperson who observed the inspection, place the required number of dice into the shaker and seal or lock the shaker, and the floorperson shall then secure the sic bo shaker to the table in the presence of the other floorperson who observed the inspection.</text> </paragraph> <paragraph num="(iii)"> <text>For pai gow and pai gow poker, the floorperson who inspected the dice shall, in the presence of the other floorperson who observed the inspection, distribute the dice directly to the dealer at each pai gow table, and the dealer shall immediately place the dice in the pai gow shaker.</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>The pit manager or above shall place extra sets of dice for the dice reserve in the pit stand, as follows:</text> <paragraph num="(i)"> <text>Dice in the pit stand shall be placed in a locked compartment, the keys to which shall be in the possession of the pit manager or above.</text> </paragraph> <paragraph num="(ii)"> <text>Except as otherwise provided in §F(2)(e) of this regulation, dice taken from the reserve in the pit stand shall be reinspected by a floorperson or above in the presence of another floorperson or above in accordance with the inspection procedures set forth in §F(2)(b) of this regulation prior to their use for actual gaming.</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>Previously inspected reserve dice may be used for gaming without being reinspected if the dice are maintained in a locked compartment in the pit stand in accordance with the following procedures:</text> <paragraph num="(i)"> <text>For craps and mini-craps, a set of five dice, after being inspected, shall be placed in a sealed envelope or container, to which shall be attached a label that identifies the date of inspection and contains the signatures of those responsible for the inspection shall be attached to the envelope or container.</text> </paragraph> <paragraph num="(ii)"> <text>For sic bo, three dice, after being inspected, shall be placed in a sealed envelope or container or sealed or locked in a sic bo shaker, to which shall be attached a label or seal that identifies the date of inspection and contains the signatures of those responsible for the inspection shall, respectively, be attached to each envelope or container or placed over the area that allows access to open the sic bo shaker.</text> </paragraph> <paragraph num="(iii)"> <text>For pai gow and pai gow poker, a set of three dice, after being inspected, shall be placed in a sealed envelope or container, to which shall be attached a label that identifies the date of inspection and contains the signatures of those responsible for the inspection shall be attached to each envelope or container.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Removal. A facility operator shall remove dice at any time of the gaming day and submit a Dice Discrepancy Report as required under §H of this regulation:</text> <paragraph num="(1)"> <text>If there is any indication of tampering, flaws or other defects that might affect the integrity or fairness of the game; or</text> </paragraph> <paragraph num="(2)"> <text>At the request of a Commission compliance representative or other Commission employee.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Inspection.</text> <paragraph num="(1)"> <text>At the end of each gaming day or at other times as may be necessary, a floorperson or above, other than the individual who originally inspected the dice, shall visually inspect each die that was used for play for evidence of tampering. Evidence of tampering shall be immediately reported to a Commission compliance representative by:</text> <paragraph num="(a)"> <text>Completing a two-part Dice Discrepancy Report; and</text> </paragraph> <paragraph num="(b)"> <text>Submitting the completed Dice Discrepancy Report and the dice to a Commission compliance representative.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Dice showing evidence of tampering shall be placed in a sealed envelope or container.</text> <paragraph num="(a)"> <text>A label shall be attached to each envelope or container that:</text> <paragraph num="(i)"> <text>Identifies the table number, date, and time the dice were removed; and</text> </paragraph> <paragraph num="(ii)"> <text>Contains the signatures of the person assigned to directly operate and conduct the game at that table and the floorperson assigned the responsibility for supervising the operation and conduct of the game.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A floorperson or above, or a security department employee responsible for delivering the dice to the casino compliance representatives, shall also sign the label.</text> </paragraph> <paragraph num="(c)"> <text>The Commission compliance representative receiving the dice shall sign the original and duplicate copy of the Dice Discrepancy Report and retain the original copy.</text> </paragraph> <paragraph num="(d)"> <text>The Commission compliance representative shall return the duplicate copy to the pit and maintain it in a secure place within the pit until it is collected by a security department employee.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Other dice that were used for play shall be put into envelopes or containers when removed from active use at the table.</text> <paragraph num="(a)"> <text>A label shall be attached to each envelope or container which:</text> <paragraph num="(i)"> <text>Identifies the table number, date and time the dice were removed; and</text> </paragraph> <paragraph num="(ii)"> <text>Contains the signatures of the person assigned to directly operate and conduct the game at that table and the floorperson assigned the responsibility for supervising the operation and conduct of the game.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The envelope or container shall be sealed and maintained within the pit until it is collected by a security department employee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Reserve dice in the locked compartment in a pit stand at the end of the gaming day may be:</text> <paragraph num="(1)"> <text>Collected and transported to the security department for cancellation or destruction;</text> </paragraph> <paragraph num="(2)"> <text>Returned to the approved storage area; or</text> </paragraph> <paragraph num="(3)"> <text>Retained in the locked compartment in the pit stand for future use.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Reserve dice in the locked compartment in a pit stand at the end of the gaming day that are to be destroyed or cancelled shall be placed in a sealed envelope or container, with a label attached to each envelope or container which:</text> <paragraph num="(1)"> <text>Identifies the pit stand where the reserve dice were being stored;</text> </paragraph> <paragraph num="(2)"> <text>Identifies the date and time the dice where placed in the envelope or container; and</text> </paragraph> <paragraph num="(3)"> <text>Contains the signature of the pit manager or above.</text> </paragraph> </paragraph> <paragraph num="K."> <text>At the end of each gaming day or at least once each gaming day, as designated by the facility operator and approved in advance by the Commission under COMAR 36.05.03.16, and at other times as may be necessary:</text> <paragraph num="(1)"> <text>Except as provided in §K(2) of this regulation, a security department employee shall collect and sign all envelopes or containers of used dice and reserve dice that are to be destroyed or cancelled and transport the dice to the security department for cancellation or destruction;</text> </paragraph> <paragraph num="(2)"> <text>If an alternative procedure for collecting, destroying or cancelling dice described in §(K)(1) of this regulation has been submitted to, and approved by, the Commission, a security department employee:</text> <paragraph num="(a)"> <text>Shall collect all envelopes or containers and return them to the security department; and</text> </paragraph> <paragraph num="(b)"> <text>May sign the envelopes or containers; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The security department employee shall also collect any duplicate copies of Dice Discrepancy Reports.</text> </paragraph> </paragraph> <paragraph num="L."> <text>An assistant table games shift manager or above may collect all reserve dice in a locked compartment in a pit stand.</text> <paragraph num="(1)"> <text>If collected:</text> <paragraph num="(a)"> <text>Reserve dice shall be returned to the approved storage area; and</text> </paragraph> <paragraph num="(b)"> <text>Reserve dice shall be collected at the end of each gaming day or at least once each gaming day, as designated by the facility operator and approved in advance by the Commission under COMAR 36.05.03.16.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except for dice maintained in a locked compartment in accordance with §F(2) of this regulation, if the reserve dice are not collected, all dice in the dice reserve shall be reinspected in accordance with one of the alternatives listed in §F of this regulation prior to their use for gaming.</text> </paragraph> </paragraph> <paragraph num="M."> <text>Facility operators shall submit to the Commission for approval internal control procedures for:</text> <paragraph num="(1)"> <text>A dice inventory system which includes, at a minimum, records of the:</text> <paragraph num="(a)"> <text>Number of three and five dice sticks, and the corresponding number of single die, received from a manufacturer or supplier;</text> </paragraph> <paragraph num="(b)"> <text>Balance of three and five dice sticks, and the corresponding number of single die, on hand;</text> </paragraph> <paragraph num="(c)"> <text>Number of three and five dice sticks removed from storage;</text> </paragraph> <paragraph num="(d)"> <text>Number of three and five dice sticks returned to storage;</text> </paragraph> <paragraph num="(e)"> <text>Number of single die destroyed or canceled;</text> </paragraph> <paragraph num="(f)"> <text>Date of each transaction; and</text> </paragraph> <paragraph num="(g)"> <text>Signatures of the individuals involved.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A daily reconciliation of the:</text> <paragraph num="(a)"> <text>Number of three or five dice sticks distributed;</text> </paragraph> <paragraph num="(b)"> <text>Number of single die destroyed or cancelled;</text> </paragraph> <paragraph num="(c)"> <text>Number of three or five dice sticks returned to the approved storage area; and,</text> </paragraph> <paragraph num="(d)"> <text>Reserve three or five dice sticks in a locked compartment in a pit stand, if any; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A physical inventory of all dice at least once every 3 months:</text> <paragraph num="(a)"> <text>That shall be performed by an individual with no incompatible functions and shall be verified to the balance of dice on hand required under §M(1)(a) of this regulation; and</text> </paragraph> <paragraph num="(b)"> <text>For which discrepancies shall immediately be reported to a Commission compliance representative.</text> </paragraph> </paragraph> </paragraph> <paragraph num="N."> <text>Destruction or Cancellation of Dice.</text> <paragraph num="(1)"> <text>Other than those retained for Commission or facility operator inspection, destruction or cancellation of dice shall be completed within 7 days of collection.</text> </paragraph> <paragraph num="(2)"> <text>Cancellation shall be accomplished by drilling a circular hole of at least 1/4 inch in diameter through the center of the die.</text> </paragraph> <paragraph num="(3)"> <text>Destruction shall be accomplished by shredding or crushing the die.</text> </paragraph> <paragraph num="(4)"> <text>The destruction or cancellation of dice must take place in a secure location in the facility that is covered by the facility operator’s surveillance system.</text> </paragraph> </paragraph> <paragraph num="O."> <text>Rotation and Replacement of Dice.</text> <paragraph num="(1)"> <text>A set of five dice used at a craps or mini-craps table shall be changed at least once every 24 hours.</text> </paragraph> <paragraph num="(2)"> <text>A new set of dice shall be used:</text> <paragraph num="(a)"> <text>When a craps or mini-craps table is reopened for gaming;</text> </paragraph> <paragraph num="(b)"> <text>If a die goes off the table during play and is lost;</text> </paragraph> <paragraph num="(c)"> <text>If a die show signs of tampering or alteration; or</text> </paragraph> <paragraph num="(d)"> <text>A die is otherwise marked, chipped, scratched, or no longer suitable for play.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Dice that have been placed in a shaker for use in gaming may not remain on a table for more than 24 hours in the games of:</text> <paragraph num="(a)"> <text>Pai Gow Tiles; and</text> </paragraph> <paragraph num="(b)"> <text>Pai Gow Poker.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Sic Bo Shaker Security Procedures."> <paragraph num="A."> <text>Storage.</text> <paragraph num="(1)"> <text>Manual and automated sic bo shakers that have not been filled with dice may be stored in a locked compartment in a pit stand.</text> </paragraph> <paragraph num="(2)"> <text>An automated sic bo dice shaker which has been filled with dice shall be secured to the sic bo table at all times.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Inspection.</text> <paragraph num="(1)"> <text>At the end of each gaming day, a pit manager or above shall inspect all sic bo shakers that have been placed in use for gaming for evidence of tampering.</text> </paragraph> <paragraph num="(2)"> <text>Evidence of tampering shall be immediately reported to a Commission compliance representative on a written report that includes at least:</text> <paragraph num="(a)"> <text>The date and time when the tampering was discovered;</text> </paragraph> <paragraph num="(b)"> <text>The name and signature of the individual discovering the tampering;</text> </paragraph> <paragraph num="(c)"> <text>The table number where the sic bo shaker was used; and</text> </paragraph> <paragraph num="(d)"> <text>The name and signature of the employee who is:</text> <paragraph num="(i)"> <text>Assigned to directly operate and conduct the game at the sic bo table; and</text> </paragraph> <paragraph num="(ii)"> <text>The supervisor assigned the responsibility for supervising the operation and conduct of the game at the sic bo table.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Cards."> <paragraph num="A."> <text>Except as otherwise approved by the Commission, cards used to play table games shall be in decks of 52 cards with each card identical in size and shape to every other card in the deck.</text> <paragraph num="(1)"> <text>Nothing in this regulation shall be construed to prohibit a manufacturer from manufacturing decks of cards with one or more jokers in each deck.</text> </paragraph> <paragraph num="(2)"> <text>Jokers may not be used by the facility operator in the play of any game unless authorized by the rules of the game.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Except as otherwise approved by the Commission, each deck shall be composed of cards in four suits: diamonds, spades, clubs and hearts.</text> <paragraph num="(1)"> <text>Each suit shall be composed of 13 cards:</text> <paragraph num="(a)"> <text>Ace;</text> </paragraph> <paragraph num="(b)"> <text>King;</text> </paragraph> <paragraph num="(c)"> <text>Queen;</text> </paragraph> <paragraph num="(d)"> <text>Jack;</text> </paragraph> <paragraph num="(e)"> <text>10;</text> </paragraph> <paragraph num="(f)"> <text>9;</text> </paragraph> <paragraph num="(g)"> <text>8;</text> </paragraph> <paragraph num="(h)"> <text>7;</text> </paragraph> <paragraph num="(i)"> <text>6;</text> </paragraph> <paragraph num="(j)"> <text>5;</text> </paragraph> <paragraph num="(k)"> <text>4;</text> </paragraph> <paragraph num="(l)"> <text>3; and</text> </paragraph> <paragraph num="(m)"> <text>2.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If approved in advance by the Commission under 36.05.03.16, the face of the ace, king, queen, jack and 10 may contain an additional marking that will permit a dealer, prior to exposing the dealer’s hole card at the game of blackjack, to determine if the value of the hole card gives the dealer a blackjack.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The backs of each card in a deck shall:</text> <paragraph num="(1)"> <text>Be identical and may not contain any marking, symbol or design that may enable an individual to know the identity of any element printed on the face of the card or that will in any way differentiate the back of the card from any other card in the deck;</text> </paragraph> <paragraph num="(2)"> <text>Be designed to diminish the ability of any individual to place concealed markings thereon; and</text> </paragraph> <paragraph num="(3)"> <text>Contain the name or logo of the facility operator using the cards, unless otherwise approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Each deck of cards shall be packaged separately or in a batch containing the number of decks selected by a facility operator for use in a particular table game.</text> <paragraph num="(1)"> <text>Each package of cards shall be sealed in a manner approved by the Commission under COMAR 36.05.03.16 to reveal evidence of any tampering with the package.</text> </paragraph> <paragraph num="(2)"> <text>If multiple decks of cards are packaged and sealed in a batch, the package must have a label that indicates or contain a window that reveals an adequate description of the contents of the package, including the:</text> <paragraph num="(a)"> <text>Name of the facility operator for which the cards were manufactured;</text> </paragraph> <paragraph num="(b)"> <text>Colors of the backs of the cards;</text> </paragraph> <paragraph num="(c)"> <text>Date that the cards were manufactured;</text> </paragraph> <paragraph num="(d)"> <text>Total number of cards in the batch; and</text> </paragraph> <paragraph num="(e)"> <text>Total number of decks in the batch.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Individual decks of cards that are packaged and sealed in a multideck batch may not be separated from the batch for independent use at a table game.</text> </paragraph> <paragraph num="F."> <text>The cards used by a facility operator for poker shall be:</text> <paragraph num="(1)"> <text>Visually distinguishable from the cards used by that facility operator for other banked table game play; and</text> </paragraph> <paragraph num="(2)"> <text>Made of plastic.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Each facility operator that offers the game of poker shall have and use on a daily basis at least four decks of cards with visually distinguishable card backings.</text> <paragraph num="(1)"> <text>Card backings may be distinguished by different logos, different colors or different design patterns.</text> </paragraph> <paragraph num="(2)"> <text>The facility operator shall submit, as part of its internal controls, the procedure for distributing and rotating the four visually distinguishable decks of cards required for use in the game of poker.</text> </paragraph> </paragraph> <paragraph num="H."> <text>At a minimum, all poker cards that have been in play at least 4 months shall be replaced.</text> </paragraph> <paragraph num="I."> <text>Cards may not be utilized in a facility unless a schematic depicting the face and backs of the cards, the colors, words, designs and graphics has been submitted to, and approved by, the Commission under COMAR 36.05.03.16.</text> </paragraph> <paragraph num="J."> <text>RFID Cards. A facility operator may use RFID cards in table games if the Commission has reviewed and approved the facility operator’s plan for use of RFID cards.</text> </paragraph> <paragraph num="K."> <text>A facility operator’s request for Commission approval of the use of RFID cards shall include:</text> <paragraph num="(1)"> <text>A detailed description of the RFID technology and devices that will be used at the facility;</text> </paragraph> <paragraph num="(2)"> <text>A detailed description of the RFID technology security features that will ensure the integrity of the table games where RFID cards are in use;</text> </paragraph> <paragraph num="(3)"> <text>A detailed description of how the RFID cards and related equipment will be used in the facility; and</text> </paragraph> <paragraph num="(4)"> <text>Any other information required by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Cards — Receipt, Storage, Inspection, and Removal."> <paragraph num="A."> <text>Receipt.</text> <paragraph num="(1)"> <text>A shipment of decks of cards that is received from a manufacturer or supplier shall be unloaded immediately and transported to a secure area which is covered by the facility operator’s surveillance system under the supervision of at least two employees of the facility operator.</text> </paragraph> <paragraph num="(2)"> <text>The boxes of decks of cards shall be opened and inspected to ensure that the seals on each box are intact, unbroken, and free from tampering.</text> <paragraph num="(a)"> <text>Boxes that do not appear to be intact, unbroken, and free from tampering shall be immediately inspected to ensure that the decks of cards in those boxes conform to the requirements of this chapter and there is no evidence of tampering with them.</text> </paragraph> <paragraph num="(b)"> <text>If the decks of cards inspected as required under §A(2)(a) of this regulation show no evidence of tampering, they shall be placed, along with boxes of cards that are intact, unbroken and free from tampering, for storage.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Decks of cards shall be stored in a storage area that the Commission has approved in advance under COMAR 36.05.03.16.</text> </paragraph> <paragraph num="(4)"> <text>The functions required under §A(1) and (2) of this regulation shall be performed by the employees identified in Regulation .13A(4) of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Storage. The Commission-approved storage area shall have two separate locks, to which access shall be controlled as follows:</text> <paragraph num="(1)"> <text>The security department shall maintain one key and the gaming operations department shall maintain the other key.</text> </paragraph> <paragraph num="(2)"> <text>An employee of the gaming operations department, below a floorperson in the organizational hierarchy, may not have access to the gaming operations department key.</text> </paragraph> <paragraph num="(3)"> <text>If the facility operator has a separate poker storage area, an employee below a poker supervisor in the organizational hierarchy may not have access to the gaming operations department key to the poker storage area.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Distribution.</text> <paragraph num="(1)"> <text>Except as provided under §E of this regulation, as may be necessary, a floorperson or above, in the presence of a security department employee, shall remove the appropriate number of decks of cards from the approved storage area.</text> </paragraph> <paragraph num="(2)"> <text>The floorperson or above and the security department employee who removed the decks shall distribute sufficient decks to the pit managers or above and, if applicable, to the poker supervisor.</text> </paragraph> <paragraph num="(3)"> <text>The number of decks distributed shall include extra decks that shall be placed in the pit stand for the card reserve.</text> </paragraph> <paragraph num="(4)"> <text>Decks of cards in the pit stand shall be placed in a locked compartment, the keys to which shall be in the possession of the pit managers or above or the poker supervisor or above.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Inspection.</text> <paragraph num="(1)"> <text>If the decks are to be inspected at open gaming tables under §F of this regulation, the pit manager or above shall distribute the decks to the dealer at each table or the poker supervisor shall transport the decks to the poker pit stand for subsequent distribution to the dealer at each poker table either directly by the poker supervisor or through the floorperson assigned to supervise the dealer.</text> </paragraph> <paragraph num="(2)"> <text>If the decks are to be preinspected and preshuffled at a closed gaming table as permitted under §R of this regulation, the pit manager or above or poker supervisor shall deliver the decks to the dealer and the floorperson or above at the closed gaming table where the preinspection and preshuffling shall be performed.</text> </paragraph> <paragraph num="(3)"> <text>If the decks have already been preinspected, preshuffled, sealed in containers and placed in the card storage area as permitted under §R(8)(b) or (e) of this regulation, the pit manager or above and a security department employee shall transport the number of sealed containers of cards needed for that gaming day to the gaming pits where the cards will be utilized and shall ensure that the containers are locked in the pit stand.</text> </paragraph> <paragraph num="(4)"> <text>Consistent with the facility operator’s internal controls, the security department shall maintain a record of the removal of the sealed containers of cards from the approved storage area and the distribution of sealed containers to the gaming pits.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Removal.</text> <paragraph num="(1)"> <text>If the decks of cards to be used for poker are removed from the poker storage area, the poker supervisor or above and a security department employee shall, at times as may be necessary, remove the appropriate number of decks from the poker storage area and distribute the decks under §D(1), (2) or (3) of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>The number of decks distributed shall include extra decks that shall be placed in the pit stand for the card reserve.</text> </paragraph> <paragraph num="(3)"> <text>Decks of cards in the pit stand shall be placed in a locked compartment, the keys to which shall be in the possession of the poker supervisor or above.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Verification.</text> <paragraph num="(1)"> <text>Except for decks of cards that are preinspected and preshuffled under §R of this regulation, the dealer shall sort the cards in each deck according to suit and in sequence to verify that all cards are present and visually inspect the backs of the cards for any defects that might compromise the integrity or fairness of the game.</text> </paragraph> <paragraph num="(2)"> <text>The floorperson or above shall verify the inspection.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Unsuitable or Missing Card. If, while inspecting the cards in accordance with §F of this regulation, the dealer finds that a card is unsuitable for use, a card is missing from the deck or an extra card is found, the following procedures shall be observed:</text> <paragraph num="(1)"> <text>A supervisor or above or a poker supervisor shall bring a replacement deck of cards or card from the card reserve in the pit stand.</text> </paragraph> <paragraph num="(2)"> <text>The unsuitable deck or card shall be placed in a sealed envelope or container, identified by table number, date and time and signed by the dealer and floorperson assigned to that table or above.</text> </paragraph> <paragraph num="(3)"> <text>The pit manager or above or a poker supervisor shall maintain the envelope or container in a secure place within the pit until collection by a security department employee.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Envelopes and containers used to hold or transport cards shall be:</text> <paragraph num="(1)"> <text>Transparent;</text> </paragraph> <paragraph num="(2)"> <text>Designed or constructed with seals so that any tampering is evident; and</text> </paragraph> <paragraph num="(3)"> <text>Submitted to the Commission and approved under COMAR 36.05.03.16.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Damaged Cards.</text> <paragraph num="(1)"> <text>If any card in a deck appear to be damaged during the course of play, the dealer shall immediately notify a floorperson or above.</text> </paragraph> <paragraph num="(2)"> <text>If after inspection, the floorperson or above determines that the card is damaged and needs to be replaced, the floorperson shall notify the pit manager or above or the poker supervisor.</text> </paragraph> <paragraph num="(3)"> <text>The pit manager or above or the poker supervisor shall:</text> <paragraph num="(a)"> <text>Notify surveillance of a card change;</text> </paragraph> <paragraph num="(b)"> <text>Bring a replacement deck of cards or card from the pit stand to replace the damaged card or cards;</text> </paragraph> <paragraph num="(c)"> <text>Place the damaged card face up on the table and remove the matching card from the replacement deck and place it face up on the table;</text> </paragraph> <paragraph num="(d)"> <text>Turn over both the damaged card and the replacement card to verify that the backs of the cards match;</text> </paragraph> <paragraph num="(e)"> <text>Place the replacement card in the discard rack;</text> </paragraph> <paragraph num="(f)"> <text>Tear the damaged card down the center, or cancel the card, and place it face up in the replacement deck; and</text> </paragraph> <paragraph num="(g)"> <text>Return the replacement deck to the pit stand.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>At least once each gaming day, the personnel operating table games shall:</text> <paragraph num="(a)"> <text>Collect the replacement cards and place the replacement cards in an envelope or container;</text> </paragraph> <paragraph num="(b)"> <text>Seal the envelope or container;</text> </paragraph> <paragraph num="(c)"> <text>Attach a label to each envelope or container that identifies the deck as a replacement deck; and</text> </paragraph> <paragraph num="(d)"> <text>Obtain the signature of the pit manager or above on the label.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>On an as-needed basis, the personnel operating poker table games shall:</text> <paragraph num="(a)"> <text>Collect the replacement decks of poker cards and place the replacement poker cards in an envelope or container;</text> </paragraph> <paragraph num="(b)"> <text>Seal the envelope or container;</text> </paragraph> <paragraph num="(c)"> <text>Attach a label to each envelope or container that identifies the deck as a replacement deck; and</text> </paragraph> <paragraph num="(d)"> <text>Obtain the signature of the poker manager or above, or the poker supervisor, on the label.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The pit manager or above or the poker supervisor shall maintain the sealed envelopes or containers in a secure place within the pit until collection by a security department employee in accordance with §M of this regulation.</text> </paragraph> <paragraph num="(7)"> <text>This subsection does not apply to cards showing indications of tampering, flaws or other defects that might affect the integrity or fairness of the game.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Removing Cards from Active Use.</text> <paragraph num="(1)"> <text>Personnel operating table games shall put decks of cards that were used for play into envelopes or containers when the decks of cards are removed from active use at the table.</text> </paragraph> <paragraph num="(2)"> <text>Personnel operating table games shall attach a label to each envelope or container which identifies the table number, date and time the decks of cards where collected and shall be signed by the dealer and floorperson assigned to the table.</text> </paragraph> <paragraph num="(3)"> <text>The poker supervisor or pit manager or above shall maintain the sealed envelopes or containers in a secure place within the pit until collection by a security department employee.</text> </paragraph> </paragraph> <paragraph num="K."> <text>A facility operator shall remove a deck of cards at any time if there is an indication of tampering, flaws or other defects that might affect the integrity or fairness of the game, or at the request of a Commission compliance representative or other Commission employee.</text> </paragraph> <paragraph num="L."> <text>Personnel operating table games shall place extra decks or packaged sets of multiple decks in the card reserve with broken seals in a sealed envelope or container, with a label attached to each envelope or container that:</text> <paragraph num="(1)"> <text>Contains the number of decks or packaged sets of multiple decks that are included;</text> </paragraph> <paragraph num="(2)"> <text>The date and time the decks were placed in the envelope or container; and</text> </paragraph> <paragraph num="(3)"> <text>The signature of the floorperson or above for decks used for poker and the pit manager or above for decks used for all other games.</text> </paragraph> </paragraph> <paragraph num="M."> <text>At the end of each gaming day or at least once each gaming day, as designated by the facility operator and approved in advance by the Commission under COMAR 36.05.03.16, and at other times as may be necessary:</text> <paragraph num="(1)"> <text>Except as provided in §M(2) of this regulation, a security department employee shall collect and sign all envelopes or containers with damaged decks of cards, decks of cards required to be removed that gaming day, and all extra decks in the card reserve with broken seals and return the envelopes or containers to the security department;</text> </paragraph> <paragraph num="(2)"> <text>If an alternative procedure for collecting, destroying or cancelling a deck of cards described in §M(1) of this regulation has been submitted to, and approved by, the Commission, a security department employee:</text> <paragraph num="(a)"> <text>Shall collect all envelopes or containers and return them to the security department; and</text> </paragraph> <paragraph num="(b)"> <text>May sign the envelopes or containers; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A table game department supervisor or above may collect all extra decks with intact seals in the card reserve.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Inspection of Cards. When the envelopes or containers of used cards and reserve cards with broken seals are returned to the security department, the cards shall be inspected for tampering, marks, alterations, missing or additional cards, or anything that might indicate unfair play:</text> <paragraph num="(1)"> <text>For cards used in blackjack, Spanish 21, baccarat, midibaccarat or minibaccarat, the facility operator shall inspect:</text> <paragraph num="(a)"> <text>All decks used during the day; or</text> </paragraph> <paragraph num="(b)"> <text>If Commission has approved, as part of the facility’s internal controls, the procedures for selecting the sample size and for ensuring a proper selection of the sample, a sample of decks selected at random or in accordance with an approved stratification plan.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The facility operator shall also inspect:</text> <paragraph num="(a)"> <text>A deck of cards that the Commission requested the facility operator to remove for the purpose of inspection;</text> </paragraph> <paragraph num="(b)"> <text>A deck of cards the facility operator removed for indication of tampering;</text> </paragraph> <paragraph num="(c)"> <text>All cards used for all banked table games other than the games listed in §N(1) of this regulation; and</text> </paragraph> <paragraph num="(d)"> <text>All cards used for poker.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The procedures for inspecting all decks required to be inspected under this subsection shall include the:</text> <paragraph num="(a)"> <text>Sorting of cards sequentially by suit or utilizing a machine approved by the Commission capable of reading the cards to determine whether any deck contains missing or additional cards;</text> </paragraph> <paragraph num="(b)"> <text>Inspection of the backs with an ultraviolet light;</text> </paragraph> <paragraph num="(c)"> <text>Inspection of the sides of the cards for crimps, bends, cuts or shaving; and</text> </paragraph> <paragraph num="(d)"> <text>Inspection of the front and back of all plastic cards for consistent shading and coloring.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If during the inspection procedures required for cards used in poker, one or more of the cards in a deck are determined to be unsuitable for continued use, those cards shall be placed in a sealed envelope or container and a two-part Card Discrepancy Report shall be completed in accordance with §N(8) of this regulation.</text> </paragraph> <paragraph num="(5)"> <text>Upon completion of the inspection procedures required under §N(2) of this regulation, each deck of cards used in poker that is determined suitable for continued use shall be placed in sequential order, repackaged and returned to the approved or poker storage area for subsequent use.</text> </paragraph> <paragraph num="(6)"> <text>The facility operator shall develop internal control procedures for returning the repackaged cards to the poker card inventory in accordance with §R of this regulation.</text> </paragraph> <paragraph num="(7)"> <text>An individual performing an inspection shall complete a work order form which details the procedures performed and lists the tables from which the cards were removed and the results of the inspection, and shall sign the form upon completion of the inspection procedures.</text> </paragraph> <paragraph num="(8)"> <text>The facility operator shall submit to the Commission the training procedures for the employees performing the inspections required under this subsection in its internal controls.</text> </paragraph> <paragraph num="(9)"> <text>Evidence of tampering, marks, alterations, missing, or additional cards or anything that might indicate unfair play discovered during an inspection, or at any other time, shall be immediately reported to a Commission compliance representative by the completion and delivery of a two-part Card Discrepancy Report.</text> <paragraph num="(a)"> <text>The two-part report shall include the cards or decks of cards which are the subject of the report.</text> </paragraph> <paragraph num="(b)"> <text>The cards or decks of cards shall be retained by a Commission compliance representative for further inspection.</text> </paragraph> </paragraph> </paragraph> <paragraph num="O."> <text>A facility operator shall submit to the Commission for approval internal control procedures for:</text> <paragraph num="(1)"> <text>A card inventory system, which includes, at a minimum, records of the:</text> <paragraph num="(a)"> <text>Balance of decks of cards on hand;</text> </paragraph> <paragraph num="(b)"> <text>Decks of cards removed from storage;</text> </paragraph> <paragraph num="(c)"> <text>Decks of cards returned to storage or received from a manufacturer or supplier;</text> </paragraph> <paragraph num="(d)"> <text>Date of each transaction; and</text> </paragraph> <paragraph num="(e)"> <text>Signatures of the employees involved;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A daily reconciliation of the decks of cards distributed, destroyed or cancelled, returned to the storage area and any the decks of cards in the card reserve; and</text> </paragraph> <paragraph num="(3)"> <text>A physical inventory of all decks of cards at least once every 3 months;</text> <paragraph num="(a)"> <text>A physical inventory shall be performed by an individual with no incompatible functions and shall be verified to the balance of decks of cards on hand required in §O(1)(a) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>Discrepancies shall immediately be reported to a Commission compliance representative.</text> </paragraph> </paragraph> </paragraph> <paragraph num="P."> <text>Destruction or Cancellation. Except for plastic cards used at poker which are of sufficient quality for reuse, decks of cards in an envelope or container that are inspected as required under §N of this regulation and found to be without any indication of tampering, marks, alterations, missing or additional cards or any indication of unfair play shall be destroyed or cancelled within 7 days of collection.</text> <paragraph num="(1)"> <text>Cards submitted to the Commission shall be destroyed or cancelled within 5 days of release from the Commission.</text> </paragraph> <paragraph num="(2)"> <text>Destruction of cards must be by shredding.</text> </paragraph> <paragraph num="(3)"> <text>Cancellation of cards must be by drilling a circular hole of at least 1/4 inch in diameter through the center of each card in the deck.</text> </paragraph> <paragraph num="(4)"> <text>The destruction or cancellation of cards shall take place:</text> <paragraph num="(a)"> <text>[in] In a secure location in the licensed facility covered by the facility operator’s surveillance system, the physical characteristics of which shall be approved by the Commission under COMAR 36.05.03.16; or</text> </paragraph> <paragraph num="(b)"> <text>If conducted by a vendor that is registered or certified under COMAR 36.03.02.17 and done in accordance with an internal control of the licensed facility that has been approved by the Commission under COMAR 36.03.10.05, at a location other than the facility.</text> </paragraph> </paragraph> </paragraph> <paragraph num="Q."> <text>Reused Deck.</text> <paragraph num="(1)"> <text>If a deck of plastic cards has been determined to not be suitable for reuse by the individual performing the inspection procedures required under subsection §N(3) of this regulation:</text> <paragraph num="(a)"> <text>The personnel operating table games shall place the deck in a sealed envelope or container with a label attached which identifies the date and time the deck was placed in the envelope or container; and</text> </paragraph> <paragraph num="(b)"> <text>The poker supervisor or floorperson shall sign the label.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>At the end of the gaming day or at other times as may be necessary, the envelope or container shall be collected by a security department employee and returned to the security department for destruction or cancellation in accordance with §P of this regulation.</text> </paragraph> </paragraph> <paragraph num="R."> <text>Preinspection and Preshuffling. If a facility operator elects to preinspect and preshuffle cards at a closed gaming table prior to the delivery of the cards to an open gaming table, a dealer and supervised by a floorperson or above with no concurrent supervisory responsibility for open gaming tables shall perform the procedures required under this section.</text> <paragraph num="(1)"> <text>The facility operator shall provide a Commission compliance representative with a schedule of the proposed time and location for the preinspection and preshuffling at least 24 hours prior to commencement of the process.</text> </paragraph> <paragraph num="(2)"> <text>The procedures required under §R(1)—(7) of this regulation shall be recorded by the surveillance department and the facility operator shall retain a recording for at least 7 days.</text> </paragraph> <paragraph num="(3)"> <text>Upon receipt of the decks of cards in accordance with §E of this regulation, the dealer shall perform the procedures in §R(2)—(7) of this regulation independently for each batch of cards that will be sealed in a container in accordance with §R(7) of this regulation with the number of decks of cards in each batch being equal to the number of decks of cards required for the table game in which the decks are intended to be used.</text> </paragraph> <paragraph num="(4)"> <text>The dealer shall visually inspect the back of each card to assure that it is not flawed, scratched, or marked in a way that might compromise the integrity or fairness of the game.</text> </paragraph> <paragraph num="(5)"> <text>By hand or by using a machine approved by the Commission, the dealer shall inspect the front of each card to ensure that all cards are present and that there are no extra cards in the deck.</text> </paragraph> <paragraph num="(6)"> <text>If after inspection a card is determined to be unsuitable for use, or the deck is missing a card or an extra card is found, the following procedures shall occur:</text> <paragraph num="(a)"> <text>The personnel operating table games shall place the deck containing the unsuitable, missing, or extra card in an envelope or container which shall be identified by table number, date, and time the deck of cards was placed in the envelope or container and signed by the dealer and floorperson or above performing the preinspection and preshuffle; and</text> </paragraph> <paragraph num="(b)"> <text>The floorperson or above shall maintain the sealed envelope or container containing the deck containing the unsuitable, missing, or extra card until collection by a security department employee at the conclusion of the preinspection and preshuffling procedure.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>The dealer shall then shuffle the cards by hand or by using an automated card shuffling device.</text> </paragraph> <paragraph num="(8)"> <text>Upon completion of the preinspection and preshuffling process of the cards in the batch, the dealer and floorperson or above shall complete a two-part Preshuffled/Preinspected Form or other documentation that includes the:</text> <paragraph num="(a)"> <text>Time and date the Preshuffled/Preinspected Form was prepared;</text> </paragraph> <paragraph num="(b)"> <text>Number of decks in the batch;</text> </paragraph> <paragraph num="(c)"> <text>Table games at which the batch will be utilized if the batch contains more or less than 52 cards per deck;</text> </paragraph> <paragraph num="(d)"> <text>Signature of the dealer who preinspected and preshuffled the cards, certifying that the cards were preinspected and preshuffled in accordance with this subsection;</text> </paragraph> <paragraph num="(e)"> <text>Signature of the floorperson or above who witnessed and verified the preinspection and preshuffling;</text> </paragraph> <paragraph num="(f)"> <text>Time, date and gaming table to which the sealed container of cards is subsequently delivered; and</text> </paragraph> <paragraph num="(g)"> <text>Signature of the floorperson or above who delivered the sealed container of cards to the gaming table in accordance with §R(9) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>The dealer shall place the preinspected and preshuffled batch of cards, together with the Preshuffled/Preinspected Form or other documentation, in a clear container that conforms to the requirements under §H of this regulation and seal the container with a prenumbered label unique to the container.</text> </paragraph> <paragraph num="(10)"> <text>A facility operator shall include in its internal controls procedures for the maintenance and security of unused seals, and the distribution, return and reconciliation of seals used on containers holding preinspected and preshuffled cards.</text> </paragraph> <paragraph num="(11)"> <text>The sealed containers of cards shall be transported by:</text> <paragraph num="(a)"> <text>A pit manager or above or poker supervisor to the gaming pit of the gaming tables where the cards will be utilized and locked in the pit stand; or</text> </paragraph> <paragraph num="(b)"> <text>An assistant table games shift manager or above and a security department employee to the approved storage area or poker storage area where the cards shall be placed back into the card inventory and segregated from cards that have not been preinspected and preshuffled.</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>A record of the transport of the sealed containers of cards to the approved storage area shall be maintained by the security department in a manner consistent with the facility operator’s approved internal controls.</text> </paragraph> <paragraph num="(13)"> <text>When the preinspected and preshuffled cards are needed for play, each container of cards shall be delivered by a floorperson or above to an open gaming table.</text> </paragraph> <paragraph num="(14)"> <text>Upon delivery, the floorperson or above shall unseal the container, place the decks of cards on the gaming table in front of the dealer, complete and sign the Preshuffled/Preinspected Form, drop the original Preshuffled/Preinspected Form in a locked box in the gaming pit, and forward the copy of the Preshuffled/Preinspected Form to the security department.</text> </paragraph> <paragraph num="(15)"> <text>The dealer at the gaming table shall then cut the cards in the manner prescribed by the rules governing the particular table game.</text> </paragraph> </paragraph> <paragraph num="S."> <text>If the Commission has approved a licensed manufacturer or contractor to provide preinspected and preshuffled decks or batches of decks, a facility operator may use preinspected and preshuffled decks or batches of decks obtained from that licensed manufacturer or contractor in the same manner as decks or batches of decks that are preinspected and preshuffled §R of this regulation.</text> </paragraph> <paragraph num="T."> <text>Card Rotation. The facility operator shall change:</text> <paragraph num="(1)"> <text>The decks of cards used for all banked table games except the games set forth in §T(2)—(5) of this regulation at least every:</text> <paragraph num="(a)"> <text>4 hours, if the cards are dealt by hand; and</text> </paragraph> <paragraph num="(b)"> <text>8 hours, if the cards are dealt from a manual or automated dealing shoe;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The decks of cards used in blackjack at least every:</text> <paragraph num="(a)"> <text>4 hours, if the cards are dealt by hand; and</text> </paragraph> <paragraph num="(b)"> <text>24 hours, if the cards are dealt from a manual or automated dealing shoe;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The decks of cards used in mini baccarat at least every 24 hours, if the cards are dealt from a manual or automated dealing shoe;</text> </paragraph> <paragraph num="(4)"> <text>The decks of cards used in midi baccarat after the play of each dealing shoe; and</text> </paragraph> <paragraph num="(5)"> <text>The two decks of cards used in poker at least every 24 hours.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Dealing Shoes and Automated Card Shuffling Devices."> <paragraph num="A."> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Base plate” means an interior shelf of a dealing shoe on which a card rests.</text> </paragraph> <paragraph num="(2)"> <text>“Face plate” means the front wall of the dealing shoe against which the next card to be dealt rests and which typically contains a cutout.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A manual dealing shoe must be designed and constructed to maintain the integrity of the game at which the shoe is used, and shall include these features:</text> <paragraph num="(1)"> <text>At least the first 4 inches of the base plate shall be white;</text> </paragraph> <paragraph num="(2)"> <text>The sides of the shoe below the base plate shall:</text> <paragraph num="(a)"> <text>Be transparent, have a transparent sealed cutout, or be otherwise constructed to prevent any object from being placed into or removed from the portion of the dealing shoe below the base plate; and</text> </paragraph> <paragraph num="(b)"> <text>Permit the inspection of this portion of the shoe; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A stop underneath the top of the face plate that precludes the next card to be dealt from being moved upwards more than 1/8 inch.</text> </paragraph> </paragraph> <paragraph num="D."> <text>In addition to the requirements of §C of this regulation, a manual dealing shoe used in minibaccarat, midibaccarat or baccarat must also meet these specifications:</text> <paragraph num="(1)"> <text>Have a removable lid that is opaque from the point where it meets the face plate to a point at least 4 inches from the face plate;</text> </paragraph> <paragraph num="(2)"> <text>The sides and back above the base plate must be opaque; and</text> </paragraph> <paragraph num="(3)"> <text>Have a device within the shoe which, when engaged, prevents the cards from moving backward in the shoe.</text> </paragraph> </paragraph> <paragraph num="E."> <text>An automated card shuffling device that has been submitted, and approved by the Commission may be used in addition to a manual or automated dealing shoe.</text> </paragraph> <paragraph num="F."> <text>An automated shuffling device must meet a 95 percent confidence level using a standard chi-squared test for goodness of fit.</text> </paragraph> <paragraph num="G."> <text>An automated card shuffling device may not provide any information that can be used to aid a player in:</text> <paragraph num="(1)"> <text>Projecting the outcome of a game;</text> </paragraph> <paragraph num="(2)"> <text>Tracking the cards played and cards remaining to be played;</text> </paragraph> <paragraph num="(3)"> <text>Analyzing the probability of the occurrence of an event relating to a game; or</text> </paragraph> <paragraph num="(4)"> <text>Analyzing the strategy for playing or betting to be used in a game.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Tampering.</text> <paragraph num="(1)"> <text>At the beginning of each gaming day and before a card is placed in them, the floorperson assigned to the table shall inspect the dealing shoes and automated card shuffling devices to be used for gaming to ensure that they have not been tampered with.</text> </paragraph> <paragraph num="(2)"> <text>Evidence of tampering shall be immediately reported to a Commission compliance representative in a written report that shall include:</text> <paragraph num="(a)"> <text>The date and time when the tampering was discovered;</text> </paragraph> <paragraph num="(b)"> <text>The name and signature of the individual who discovered the tampering;</text> </paragraph> <paragraph num="(c)"> <text>A description of the evidence of tampering;</text> </paragraph> <paragraph num="(d)"> <text>The table number where the dealing shoe or shuffler was used; and</text> </paragraph> <paragraph num="(e)"> <text>The name and signature of the person assigned to directly operate and conduct the game and the supervisor assigned the responsibility for supervising the operation and conduct of the game.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Pai Gow Tiles."> <paragraph num="A."> <text>Pai gow shall be played with a set of 32 rectangular tiles</text> </paragraph> <paragraph num="B."> <text>Each tile in a set must be identical in size and shading to every other tile in the set, and shall:</text> <paragraph num="(1)"> <text>Be made of a nontransparent black material, formed in the shape of a rectangle, and be not smaller than 2-1/2 inches in length, 1 inch in width and 3/8 inch in thickness;</text> </paragraph> <paragraph num="(2)"> <text>Have the surface of each of its sides perfectly flat, except that the front side of each tile must contain spots which extend into the tile exactly the same distance as every other spot;</text> </paragraph> <paragraph num="(3)"> <text>Have on the back or front of each tile an identifying feature unique to each facility operator;</text> </paragraph> <paragraph num="(4)"> <text>Except for the front side containing spots, have an identical texture and finish on each side;</text> </paragraph> <paragraph num="(5)"> <text>Have no tile within a set contain any markings, symbols or designs that would enable a player to know the identity of any element on the front side of the tile or that would distinguish any tile from any other tile within a set; and</text> </paragraph> <paragraph num="(6)"> <text>Have identifying spots on the front side of the tiles which are red, white or both.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Unless a facility has submitted to the Commission under COMAR 36.05.03.16 a detailed schematic depicting the actual size and identifying features on pai gow tiles, and the Commission has approved the submission, pai gow tiles shall not be used in a facility</text> </paragraph> <paragraph num="D."> <text>Each set of tiles shall be packaged separately and sealed under COMAR 36.05.03.19.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Pai Gow Tiles — Receipt, Storage, Inspection, and Removal."> <paragraph num="A."> <text>Receipt.</text> <paragraph num="(1)"> <text>A shipment of tiles that a facility operator receives from a manufacturer or contractor shall be unloaded immediately and transported to a secure area which is covered by the facility operator’s surveillance system under the supervision of at least two employees of the facility operator.</text> </paragraph> <paragraph num="(2)"> <text>The boxes of tiles shall then be inspected by at least two employees of the facility operator to ensure that the seals on each box are intact, unbroken, and free from tampering.</text> <paragraph num="(a)"> <text>Boxes that do not appear to be intact, unbroken and free from tampering shall be inspected immediately to ensure that the tiles in those boxes conform to the requirements of this chapter and there is no evidence of tampering with them.</text> </paragraph> <paragraph num="(b)"> <text>If tiles inspected as required under §A(2)(a) of this regulation show no evidence of tampering, they shall be placed, along with boxes of tiles that are intact, unbroken and free from tampering, for storage in a storage area, the location and physical characteristics of which shall be approved by the Commission under COMAR 36.05.03.16.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The functions required under §A(1) and (2) of this regulation shall be performed by at least the following employees of a facility operator:</text> <paragraph num="(a)"> <text>A floorperson or above; and</text> </paragraph> <paragraph num="(b)"> <text>An employee from the security department.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Sets of tiles which are to be distributed to gaming pits or tables for use in gaming shall be distributed from the approved storage area.</text> </paragraph> <paragraph num="C."> <text>Approved Storage Area. The approved storage area shall have two separate locks, to which access shall be controlled as follows:</text> <paragraph num="(1)"> <text>The security department shall maintain one key and the gaming operations department shall maintain the other key; and</text> </paragraph> <paragraph num="(2)"> <text>An employee of the gaming operations department below a floorperson in the facility’s organizational hierarchy may not have access to the gaming operations department key.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Once each gaming day and at other times as may be necessary, a floorperson or above, in the presence of a security department employee, shall remove the appropriate number of sets of tiles from the approved storage area.</text> </paragraph> <paragraph num="E."> <text>Envelopes and containers used to hold or transport tiles shall be:</text> <paragraph num="(1)"> <text>Transparent;</text> </paragraph> <paragraph num="(2)"> <text>Designed or constructed with seals so that any tampering is evident; and</text> </paragraph> <paragraph num="(3)"> <text>Submitted to, and approved by, the Commission in advance under COMAR 36.05.03.16.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Distribution of Tiles.</text> <paragraph num="(1)"> <text>The floorperson or above shall distribute sufficient sets of tiles to the pit manager or above in each pai gow pit.</text> </paragraph> <paragraph num="(2)"> <text>The pit manager or above shall then distribute the sets of tiles to the dealer at each pai gow table and place extra sets of tiles in the reserve in the pit stand.</text> </paragraph> <paragraph num="(3)"> <text>Sets of tiles in the reserve shall be placed in a locked compartment in the pit stand, keys to which shall be in the possession of the pit manager or above.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Damaged Tiles.</text> <paragraph num="(1)"> <text>If during the course of play a damaged tile is detected, the dealer or a floorperson shall immediately notify the pit manager or above, who shall bring a substitute set of tiles to the table from the reserve in the pit stand to replace the entire set of tiles.</text> </paragraph> <paragraph num="(2)"> <text>A set containing a damaged tile shall be placed in an envelope or container, identified by table number, date and time the tiles were placed in the envelope or container and sealed and signed by the dealer and the floorperson responsible for supervising the table or the pit manager or above.</text> </paragraph> <paragraph num="(3)"> <text>The pit manager or above shall maintain the sealed envelope or container in a secure place within the pit until collection by a security department employee.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Collection.</text> <paragraph num="(1)"> <text>The floorperson responsible for supervising the table or the pit manager or above shall collect used tiles which shall be placed in an envelope or container when removed from active use.</text> </paragraph> <paragraph num="(2)"> <text>A label shall be attached to each envelope or container which identifies the table number, date and time the tiles were placed in the envelope or container and sealed and signed by the dealer and the floorperson responsible for supervising the table or the pit manager or above.</text> </paragraph> <paragraph num="(3)"> <text>The pit manager or above shall maintain the sealed envelopes or containers in a secure place within the pit until collection by a security department employee.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Removal.</text> <paragraph num="(1)"> <text>A facility operator shall remove a tile from play if there is any indication of tampering, flaws, or other defects that might affect the integrity or fairness of the game, or at the request of a Commission compliance representative or other Commission employee.</text> </paragraph> <paragraph num="(2)"> <text>A label shall be attached to each envelope or container which identifies the table number, date, and time the tiles were placed in the envelope or container and sealed and signed by the dealer and the floorperson responsible for supervising the table or the pit manager or above.</text> </paragraph> <paragraph num="(3)"> <text>The pit manager or above shall maintain the sealed envelopes or containers in a secure place within the pit until collection by a security department employee.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Extra sets of tiles in the reserve which have been opened shall be placed in an envelope or container with a label attached to each envelope or container which identifies the date and time the tiles were placed in the envelope or container and sealed and is signed by the pit manager or above.</text> </paragraph> <paragraph num="K."> <text>At the end of each gaming day or in the alternative, at least once each gaming day, as designated by the facility operator and approved by the Commission under COMAR 36.05.03.16, and at other times as may be necessary:</text> <paragraph num="(1)"> <text>A security department employee shall collect and sign all envelopes or containers with damaged tiles, tiles used during the gaming day, and all extra tiles in the reserve which have been opened, and return the envelopes or containers to the security department; and</text> </paragraph> <paragraph num="(2)"> <text>A floorperson or above may collect all extra sets of tiles in the reserve which have not been opened, and, if collected, all unopened sets of tiles shall be cancelled, destroyed, or returned to the approved storage area.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Inspection.</text> <paragraph num="(1)"> <text>When envelopes or containers of used tiles and reserve sets of tiles which have been opened are returned to the security department, the security department shall inspect the tiles for tampering, marks, alterations, missing, or additional tiles or anything that might indicate unfair play.</text> </paragraph> <paragraph num="(2)"> <text>The procedures for inspecting sets of tiles shall include:</text> <paragraph num="(a)"> <text>Sorting of tiles by pairs;</text> </paragraph> <paragraph num="(b)"> <text>Visually inspecting the sides and back of each tile for tampering, markings, or alterations; and</text> </paragraph> <paragraph num="(c)"> <text>Inspecting the sides and back of each tile with an ultraviolet light.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The individual performing the inspection shall complete a work order form which details the procedures performed, lists the tables from which the tiles were removed and the results of the inspection, and shall sign the form upon completion of the inspection procedures.</text> </paragraph> <paragraph num="(4)"> <text>The facility operator shall submit to the Commission the training procedures for the employees performing the inspections required under this subsection in its internal controls.</text> </paragraph> <paragraph num="(5)"> <text>Evidence of tampering, marks, alterations, missing, or additional tiles or anything that might indicate unfair play discovered during the inspection, or at any other time, shall be immediately reported to a Commission compliance representative by the completion and delivery of a two-part Tile Discrepancy Report.</text> <paragraph num="(a)"> <text>The two-part report shall include the tiles which are the subject of the report.</text> </paragraph> <paragraph num="(b)"> <text>A Commission compliance representative shall retain the tile for further inspection.</text> </paragraph> <paragraph num="(c)"> <text>The Commission compliance representative receiving the tile shall sign the original and duplicate copy of the tile discrepancy report and retain the original.</text> </paragraph> <paragraph num="(d)"> <text>The facility operator shall retain the duplicate copy.</text> </paragraph> </paragraph> </paragraph> <paragraph num="M."> <text>If after completing the inspection procedures required under §N of this regulation, it is determined that a complete set of 32 tiles removed from a gaming table is free from tampering, markings, or alterations, the set shall be packaged separately and sealed before being returned to the pai gow storage area for subsequent use.</text> </paragraph> <paragraph num="N."> <text>A facility operator shall develop internal control procedures for returning the repackaged tiles to the tile inventory in accordance with §P of this regulation.</text> </paragraph> <paragraph num="O."> <text>Individual tiles from different sets may not be used to make a complete set for subsequent gaming.</text> </paragraph> <paragraph num="P."> <text>A facility operator may create replacement and reconstructed sets in accordance with the following requirements:</text> <paragraph num="(1)"> <text>If after completing the inspection procedures required under §M of this regulation, it is determined that a tile has scratches or other markings on the back, sides or edges which make the tiles unsuitable for continued use, the tile shall be removed from the set and destroyed in accordance with §R of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>The remaining usable tiles from the set shall be designated as a replacement set.</text> </paragraph> <paragraph num="(3)"> <text>The employee who removes the tiles from a set shall complete a two-part form that shall:</text> <paragraph num="(a)"> <text>Include the date and time the tiles were removed from the set;</text> </paragraph> <paragraph num="(b)"> <text>Identify the specific tile or tiles removed from the set and sent for destruction; and</text> </paragraph> <paragraph num="(c)"> <text>Contain the name and signature of the individuals involved.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The duplicate copy of the form shall be retained with the replacement set and the security department shall retain the original.</text> </paragraph> <paragraph num="(5)"> <text>The assistant table games shift manager or above shall return the replacement set, accompanied by the duplicate copy of the form, to the tile inventory under §P of this regulation where replacement sets shall be inventoried and stored separately from any stored and new, used or complete reconstructed sets.</text> </paragraph> <paragraph num="(6)"> <text>Tiles in one or more replacement sets may be used to create a complete reconstructed set of tiles in accordance with the following procedures:</text> <paragraph num="(a)"> <text>The assistant table games shift manager or above shall conduct an inspection of each reconstructed set in the storage area, in the presence of a security department employee, and ensure that any replacement tile possesses the same color, texture, and finish as all other tiles in the reconstructed set.</text> </paragraph> <paragraph num="(b)"> <text>The assistant table games shift manager or above shall sort the tiles by pairs and verify the needed replacement tile or tiles and visually inspect the sides, backs and edges of each tile in the reconstructed set for tampering, markings, and alterations and for comparison as to shading, texture and finish.</text> </paragraph> <paragraph num="(c)"> <text>After a complete set of tiles has been assembled from replacement sets, the assistant table games shift manager or above shall attach a label to the envelope or container for the reconstructed set, which shall:</text> <paragraph num="(i)"> <text>Include the date and time of reconstruction;</text> </paragraph> <paragraph num="(ii)"> <text>Contain the signature of the assistant table games shift manager or above and the security department employee who witnessed the inspection; and</text> </paragraph> <paragraph num="(iii)"> <text>Identify the inspection steps that were followed to determine that the reconstructed set of tiles is suitable for use in gaming.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>A facility operator shall submit to the Commission for approval internal control procedures for returning the reconstructed sets into inventory, identifying all reconstructed sets and maintaining an accurate inventory balance of remaining replacement sets.</text> </paragraph> </paragraph> </paragraph> <paragraph num="Q."> <text>A facility operator shall submit internal control procedures for:</text> <paragraph num="(1)"> <text>An inventory system which includes records of at least the following:</text> <paragraph num="(a)"> <text>The balance of sets of tiles on hand;</text> </paragraph> <paragraph num="(b)"> <text>The sets of tiles removed from storage;</text> </paragraph> <paragraph num="(c)"> <text>The sets of tiles returned to storage or received from a manufacturer or contractor;</text> </paragraph> <paragraph num="(d)"> <text>The date of each transaction; and</text> </paragraph> <paragraph num="(e)"> <text>The signatures of the individuals involved;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A daily reconciliation of the:</text> <paragraph num="(a)"> <text>Sets of tiles distributed;</text> </paragraph> <paragraph num="(b)"> <text>Sets of tiles destroyed or cancelled;</text> </paragraph> <paragraph num="(c)"> <text>Sets of tiles returned to the approved storage area; and</text> </paragraph> <paragraph num="(d)"> <text>Sets of tiles in the tile reserve in a pit stand; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A physical inventory of the sets of tiles at least once every 3 months.</text> <paragraph num="(a)"> <text>An inventory shall be performed by an individual with no incompatible functions and shall be verified to the balance of the sets of tiles on hand required in §Q(1)(a) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>Discrepancies shall immediately be reported to a Commission compliance representative.</text> </paragraph> </paragraph> </paragraph> <paragraph num="R."> <text>Destruction or Cancellation.</text> <paragraph num="(1)"> <text>Destruction or cancellation of tiles other than those retained for Commission inspection shall be completed within 7 days of collection.</text> </paragraph> <paragraph num="(2)"> <text>The method of destruction or cancellation shall be included in the facility operator’s internal controls.</text> </paragraph> <paragraph num="(3)"> <text>The destruction or cancellation of tiles shall take place in a secure location in the licensed facility covered by the facility operator’s surveillance system.</text> </paragraph> </paragraph> <paragraph num="S."> <text>Tile Rotation. A facility operator shall change the tiles at least every 12 hours.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Dealer Controlled Electronic Table Games — Requirements."> <paragraph num="A."> <text>Wagering. A facility operator may conduct electronic wagering at a table game in accordance with this chapter.</text> <paragraph num="(1)"> <text>Electronic wagering at a table game shall be conducted through the use of a dealer controlled electronic table game system.</text> </paragraph> <paragraph num="(2)"> <text>If a dealer controlled electronic table game system is in use at a table game, a player may make only those wagers that are approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The computer controlling the dealer controlled electronic table game system shall be under dual key control, with one key controlled by the accounting department and the other key controlled by the table games department or the slot operations department.</text> </paragraph> <paragraph num="C."> <text>All aspects of a dealer controlled electronic table game system, including the computer and any related hardware, software or related devices, shall be tested by an independent certified testing laboratory and approved by the Commission prior to use by a facility operator.</text> </paragraph> <paragraph num="D."> <text>In addition to the requirements for table games under COMAR 36.05, a facility operator using a dealer controlled electronic table game system shall include in its internal controls, at a minimum:</text> <paragraph num="(1)"> <text>Procedures to ensure the physical security of the computer and related hardware, software and other devices.</text> </paragraph> <paragraph num="(2)"> <text>Procedures to ensure the integrity and security of all sensitive data and software.</text> </paragraph> <paragraph num="(3)"> <text>Procedures to ensure that access to sensitive data and software is limited to only appropriate personnel.</text> </paragraph> <paragraph num="(4)"> <text>Procedures to ensure the logging of the events and the availability of records to enable an effective audit of the conduct of the system and the reporting of revenue.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A dealer controlled electronic table game shall have the ability to authenticate the transmission of data between the various components of the dealer controlled electronic table game system.</text> </paragraph> <paragraph num="F."> <text>A dealer controlled electronic table game system shall:</text> <paragraph num="(1)"> <text>Credit funds to the game account of a player when a player buys in to a game at a particular table game and debit any remaining funds from the game account when a player cashes out of the game;</text> </paragraph> <paragraph num="(2)"> <text>Permit a player to:</text> <paragraph num="(a)"> <text>Wager from a game account;</text> </paragraph> <paragraph num="(b)"> <text>Collect a losing wager from a game account; and</text> </paragraph> <paragraph num="(c)"> <text>Pay a winning wager by crediting the amount of the winnings and corresponding wager to the game account;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>In the game of Poker:</text> <paragraph num="(a)"> <text>Debit a game account and increment pot for a wager;</text> </paragraph> <paragraph num="(b)"> <text>Distribute a winning pot by crediting the game account of a winning player in the appropriate amounts;</text> </paragraph> <paragraph num="(c)"> <text>Extract the rake from a player or pot according to the rake procedures established under the standard rules for Poker, and debit the game account of a player in the correct amounts; and</text> </paragraph> <paragraph num="(d)"> <text>Make a player’s balance or table stakes visible to all players in the game;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Depict the transactions described in §F(1), (2) and (3) of this regulation through one or more electronic fund displays that are visible to each player and to the dealer or boxperson;</text> </paragraph> <paragraph num="(5)"> <text>Disclose to a player at all times the current balance in the player’s game account;</text> </paragraph> <paragraph num="(6)"> <text>Accurately report and audit the table game’s win or loss, or Poker revenue, in accordance with the standard rules for Poker;</text> </paragraph> <paragraph num="(7)"> <text>Be capable of generating reports setting forth, by gaming day, for each table game using the dealer controlled electronic table game system:</text> <paragraph num="(a)"> <text>The total amount deposited into the game account of a player;</text> </paragraph> <paragraph num="(b)"> <text>The total amount deposited into game accounts by all players;</text> </paragraph> <paragraph num="(c)"> <text>The total amount credited to the game account of a player in payment of winnings;</text> </paragraph> <paragraph num="(d)"> <text>The total amount credited to the game accounts of all players in payment of winnings;</text> </paragraph> <paragraph num="(e)"> <text>The total amount collected from a player as losing wagers;</text> </paragraph> <paragraph num="(f)"> <text>The total amount collected from all players as losing wagers;</text> </paragraph> <paragraph num="(g)"> <text>The total amount withdrawn from game accounts by each player;</text> </paragraph> <paragraph num="(h)"> <text>The total amount withdrawn from game accounts by all players; and</text> </paragraph> <paragraph num="(i)"> <text>The table game win or loss; and</text> </paragraph> <paragraph num="(j)"> <text>If applicable, for Poker:</text> <paragraph num="(i)"> <text>The total amount deducted from the game account of a player for collection of Poker rake time charges under the standard rules for Poker;</text> </paragraph> <paragraph num="(ii)"> <text>The total amount collected from the accounts of each player for collection of Poker rake time charges under the standard rules for Poker;</text> </paragraph> <paragraph num="(iii)"> <text>The total amount collected from Poker pots for collection of Poker rake under the standard rules for Poker; and</text> </paragraph> <paragraph num="(iv)"> <text>The table game Poker revenue.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>The display of a virtual chip on a dealer controlled electronic table game that depicts the transactions described in §F(1), (2) and (3) of this regulation is not required to meet the physical requirements for chips under COMAR 36.05.02.</text> </paragraph> <paragraph num="H."> <text>A dealer controlled electronic table game system shall have no more than 14 table game positions in operation for every dealer.</text> </paragraph> <paragraph num="I."> <text>After installation, Agency staff shall inspect a dealer controlled electronic table game system prior to use by a facility operator.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="Dealer Controlled Electronic Table Game System — Procedures."> <paragraph num="A."> <text>If a table game using a dealer controlled electronic table game system is equipped with a bill validator, a player may participate in wagering at the table game by:</text> <paragraph num="(1)"> <text>Inserting currency or a gaming voucher into the bill validator; or</text> </paragraph> <paragraph num="(2)"> <text>Presenting currency or value chips to the dealer or boxperson.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A dealer controlled electronic table game system that is equipped with a bill validator shall communicate with the Commission’s central monitor and control computer system to:</text> <paragraph num="(1)"> <text>Transmit accounting and auditing information;</text> </paragraph> <paragraph num="(2)"> <text>Retrieve information in real time; and</text> </paragraph> <paragraph num="(3)"> <text>Activate or disable a dealer controlled electronic game.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a table game using a dealer controlled electronic table game system is not equipped with a bill validator, a player shall participate in wagering by presenting currency or value chips to the dealer or boxperson.</text> </paragraph> <paragraph num="D."> <text>When a player presents currency, a gaming voucher, or value chips as described in §A or C of this regulation:</text> <paragraph num="(1)"> <text>The dealer controlled electronic table game system shall:</text> <paragraph num="(a)"> <text>Credit to the player’s game account an amount of funds equivalent to the currency, gaming voucher or value chips presented by the player; and</text> </paragraph> <paragraph num="(b)"> <text>Display on the electronic fund display the amount of funds deposited into the player’s game account; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The player shall acknowledge the amount of funds deposited into the player’s game account.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A player shall cash out of a table game using a dealer controlled electronic table game system by receiving:</text> <paragraph num="(1)"> <text>A gaming voucher equal in value to the balance in the player’s game account; or</text> </paragraph> <paragraph num="(2)"> <text>Value chips from the dealer or boxperson from the table inventory container that are equal in value to the balance in the player’s game account.</text> </paragraph> </paragraph> <paragraph num="F."> <text>After a player has cashed out of a table game using a dealer controlled electronic table game system, the dealer or boxperson shall zero out the electronic fund display of the player’s game account.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".22" heading="Tables."> <paragraph num="A."> <text>A facility operator shall submit to the Commission for approval the layout for a table game that contains at least:</text> <paragraph num="(1)"> <text>The name or logo of the facility operator;</text> </paragraph> <paragraph num="(2)"> <text>Betting areas designated for the placement of wagers authorized under the standard rules; and</text> </paragraph> <paragraph num="(3)"> <text>Inscriptions that advise a player of the payout odds or amounts for all permissible wagers offered by the facility operator, except that if payout odds or amounts are not inscribed on the layout, a sign identifying the payout odds or amounts for all permissible wagers shall be posted at each table.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If a facility operator offers a Progressive Payout Wager, a table shall have a progressive table game system for the placement of Progressive Payout Wagers that includes a:</text> <paragraph num="(1)"> <text>Wagering device at each betting position that acknowledges or accepts the placement of the Progressive Payout Wager; and</text> </paragraph> <paragraph num="(2)"> <text>Device that controls or monitors the placement of Progressive Payout Wagers at the gaming table and includes a lock-out button or other mechanism that prevents the recognition of any Progressive Payout Wager that a player attempts to place after the dealer has announced “no more bets”.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A table shall have a drop box and a tip box attached on the same side of the gaming table as, but on opposite sides of, the dealer, as approved by the Commission.</text> </paragraph> <paragraph num="D."> <text>The Commission may approve an alternative location for the tip box when a card shuffling device or other table game equipment prevents the placement of the drop box and tip box on the same side of the gaming table as, but on opposite sides of, the dealer.</text> </paragraph> <paragraph num="E."> <text>Each table shall have a discard rack securely attached to the top of the dealer’s side of the table except for:</text> <paragraph num="(1)"> <text>Craps; and</text> </paragraph> <paragraph num="(2)"> <text>Roulette.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".23" heading="Roulette — Ball, Table, and Wheel Inspection; Security Procedures."> <paragraph num="A."> <text>A ball used in Roulette shall be:</text> <paragraph num="(1)"> <text>Made completely of a nonmetallic substance; and</text> </paragraph> <paragraph num="(2)"> <text>Not less than 12/16 inch nor more than 14/16 inch in diameter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Roulette shall be played on a table having a Roulette:</text> <paragraph num="(1)"> <text>Wheel of at least 30 inches in diameter at one end of the table; and</text> </paragraph> <paragraph num="(2)"> <text>Layout imprinted on the opposite end of the table.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Prior to opening a Roulette table for gaming activity, a floorperson or member of a facility operator’s security department shall:</text> <paragraph num="(1)"> <text>Inspect the Roulette ball by passing it over a magnet or compass to assure its nonmagnetic quality;</text> </paragraph> <paragraph num="(2)"> <text>Inspect the Roulette table and Roulette wheel for any magnet or contrivance that would affect the fair operation of the Roulette wheel;</text> </paragraph> <paragraph num="(3)"> <text>Inspect the Roulette wheel to assure that the wheel is level and rotating freely and evenly; and</text> </paragraph> <paragraph num="(4)"> <text>Inspect the Roulette wheel to assure that all parts are secure and free from movement.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If a facility operator uses a Roulette wheel that has external movable parts, any adjustments to the movable parts shall be made by a floorperson or a member of the facility operator’s gaming operations department in the presence of a security department member.</text> </paragraph> <paragraph num="E."> <text>All adjustments shall be completed prior to the required inspections under §C of this regulation.</text> </paragraph> <paragraph num="F."> <text>A facility operator may replace any of the movable parts at any time, except that an inspection as required under §C of this regulation shall be completed prior to reopening the Roulette wheel and table for play.</text> </paragraph> <paragraph num="G."> <text>A facility operator shall maintain an inspection log, which shall include:</text> <paragraph num="(1)"> <text>The date and time of inspection;</text> </paragraph> <paragraph num="(2)"> <text>The Roulette table number;</text> </paragraph> <paragraph num="(3)"> <text>Whether an adjustment or replacement was completed;</text> </paragraph> <paragraph num="(4)"> <text>A description of the adjustment or replacement;</text> </paragraph> <paragraph num="(5)"> <text>If required, a certification that an inspection was completed; and</text> </paragraph> <paragraph num="(6)"> <text>The signature and license number of the individual making the adjustment or replacement.</text> </paragraph> </paragraph> <paragraph num="H."> <text>When a Roulette table is not open for play, the Roulette wheel shall be secured by a cover that is placed over the entire wheel and securely locked.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02 and 9-1A-04, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.19 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 471); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended as an emergency provision effective January 2, 2014 (41:2 Md. R. 89); emergency status expired May 12, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective May 26, 2014 (41:10 Md. R. 566); January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02E, F amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06E amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13K amended effective August 18, 2014 (41:16 Md. R. 948)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13O adopted effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15 amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15A, B amended effective January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15H amended effective September 6, 2021 (48:18 Md. R. 695)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16 amended effective February 16, 2015 (42:3 Md. R. 319); January 7, 2016 (42:26 Md. R. 1597); October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16B, P amended effective October 23, 2017 (44:21 Md. R. 985)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16D, P amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16M amended effective August 18, 2014 (41:16 Md. R. 948)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16N amended effective September 6, 2021 (48:18 Md. R. 695)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19 amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20 adopted as an emergency provision effective January 2, 2014 (41:2 Md. R. 89); emergency status expired May 12, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .20 adopted effective May 26, 2014 (41:10 Md. R. 566)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20A, F amended effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .21 adopted as an emergency provision effective January 2, 2014 (41:2 Md. R. 89); emergency status expired May 12, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .21 adopted effective May 26, 2014 (41:10 Md. R. 566)</annotation> <annotation type="History" subtype="Administrative History">Regulation .22 adopted effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23 adopted effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="03" heading="Table Games Procedures"> <regulation prefix="Regulation" num=".01" heading="Personnel Operating and Conducting Table Games."> <paragraph num="A."> <text>A facility operator may use the following personnel to operate table games:</text> <paragraph num="(1)"> <text>Dealer;</text> </paragraph> <paragraph num="(2)"> <text>Stickperson;</text> </paragraph> <paragraph num="(3)"> <text>Boxperson;</text> </paragraph> <paragraph num="(4)"> <text>Floorperson;</text> </paragraph> <paragraph num="(5)"> <text>Pit manager;</text> </paragraph> <paragraph num="(6)"> <text>Poker manager;</text> </paragraph> <paragraph num="(7)"> <text>Assistant table games shift manager; and</text> </paragraph> <paragraph num="(8)"> <text>Table games shift manager.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall maintain the following minimum levels of staffing when table games are being operated:</text> <paragraph num="(1)"> <text>Excluding craps or baccarat, one dealer for a table game;</text> </paragraph> <paragraph num="(2)"> <text>Two dealers for a big baccarat table;</text> </paragraph> <paragraph num="(3)"> <text>Two dealers for a craps table, one of whom shall act as the stickperson; and</text> </paragraph> <paragraph num="(4)"> <text>One boxperson or floorperson for a craps table.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall provide a sufficient number of floorpersons to supervise the operation of table games in accordance with the standards in this chapter, so that a floorperson may not supervise more than the number of tables specified in one of the following:</text> <paragraph num="(1)"> <text>Excluding baccarat, midibaccarat, craps, mini-craps, and pai gow, six tables comprised of a combination of banking table games;</text> </paragraph> <paragraph num="(2)"> <text>One baccarat table;</text> </paragraph> <paragraph num="(3)"> <text>Three midibaccarat tables;</text> </paragraph> <paragraph num="(4)"> <text>Excluding baccarat, caps and mini-craps, one midibaccarat table and one table of any other table game;</text> </paragraph> <paragraph num="(5)"> <text>Three craps tables;</text> </paragraph> <paragraph num="(6)"> <text>Excluding baccarat, midibaccarat, mini-craps and pai gow, two craps tables and two tables of a banking table game;</text> </paragraph> <paragraph num="(7)"> <text>Excluding baccarat, midibaccarat, mini-craps and pai gow, one craps table and three tables of a banking table game;</text> </paragraph> <paragraph num="(8)"> <text>If only one dealer is assigned to a table, two mini-craps table;</text> </paragraph> <paragraph num="(9)"> <text>If the there is a dealer and a stickperson assigned to the tables, four mini-craps tables;</text> </paragraph> <paragraph num="(10)"> <text>If the tables are in a side-by-side configuration, two pai gow tables;</text> </paragraph> <paragraph num="(11)"> <text>Excluding baccarat, craps and mini-craps, one pai gow table and one table of another banking table game;</text> </paragraph> <paragraph num="(12)"> <text>Ten poker tables; and</text> </paragraph> <paragraph num="(13)"> <text>If the floorperson assigned to poker does not have responsibilities for seating players, 12 poker tables.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If the gaming tables being supervised by a floorperson are dealer controlled electronic table games, the maximum number of gaming tables that the floorperson may supervise may be increased by 100 percent of the limits provided in §C of this regulation.</text> </paragraph> <paragraph num="E."> <text>Subject to the limitation that a pit manager or assistant table games shift manager may not directly supervise more than 12 floorpersons, a facility operator shall provide a sufficient number of pit managers or assistant table games shift managers to supervise the operation of table games.</text> </paragraph> <paragraph num="F."> <text>A facility operator shall provide a poker manager to supervise all open poker tables.</text> </paragraph> <paragraph num="G."> <text>If no more than three poker tables are open, a poker manager is not required.</text> </paragraph> <paragraph num="H."> <text>A facility operator shall provide a table games shift manager to supervise the operation of table games during every shift.</text> <paragraph num="(1)"> <text>An assistant table games shift manager may be designated to act as the table games shift manager in the table games shift manager's absence.</text> </paragraph> <paragraph num="(2)"> <text>An assistant table games shift manager designated under §H(1) of this regulation may not be counted toward the number of pit managers or assistant table games shift managers required under §E of this regulation.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A facility operator may request the Commission to approve its use of a staffing plan that differs from the minimum standards in this section by submitting a written alternate minimum staffing plan which must include at least:</text> <paragraph num="(1)"> <text>The pit number and configuration of any pit affected;</text> </paragraph> <paragraph num="(2)"> <text>The type, location and table number of any table affected;</text> </paragraph> <paragraph num="(3)"> <text>The standard staffing level required under this regulation for a gaming table and the proposed alternative staffing;</text> </paragraph> <paragraph num="(4)"> <text>The days, shifts or times during which the alternative staffing would be in effect; and</text> </paragraph> <paragraph num="(5)"> <text>A narrative explaining the rationale for the proposed alternative staffing and how the alternative staffing would protect the integrity of gaming at the affected gaming tables.</text> </paragraph> </paragraph> <paragraph num="J."> <text>A facility operator may not implement an alternate minimum staffing plan unless the Commission has approved the plan in writing.</text> </paragraph> <paragraph num="K."> <text>Nothing in this regulation shall be construed to limit:</text> <paragraph num="(1)"> <text>A facility operator from using more personnel than required by this regulation; or</text> </paragraph> <paragraph num="(2)"> <text>The Commission’s discretion to direct a facility to use more personnel than required by this regulation in the operation of table games.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Table Inventory."> <paragraph num="A."> <text>When a table game is opened for gaming, table game operations shall commence with the table inventory.</text> </paragraph> <paragraph num="B."> <text>A facility operator may not cause or permit gaming chips, coins, or plaques to be added to, or removed from, a table inventory during the gaming day except:</text> <paragraph num="(1)"> <text>In exchange for cash;</text> </paragraph> <paragraph num="(2)"> <text>In exchange for an issuance copy of a counter check presented by a player;</text> </paragraph> <paragraph num="(3)"> <text>For the payment of winning wagers and collection of losing wagers made at the gaming table;</text> </paragraph> <paragraph num="(4)"> <text>In exchange for a gaming chip or plaque received from a player having an equal aggregate face value;</text> </paragraph> <paragraph num="(5)"> <text>In conformity with fill and credit procedures; and</text> </paragraph> <paragraph num="(6)"> <text>For the collection of vigorish.</text> </paragraph> </paragraph> <paragraph num="C."> <text>When a table game is not open for gaming activity, the table inventory and a Table Inventory Slip shall:</text> <paragraph num="(1)"> <text>Be stored in a locked container that is clearly marked on the outside with the game and the gaming table number to which it corresponds;</text> </paragraph> <paragraph num="(2)"> <text>Have the information on the Table Inventory Slip be visible from the outside of the container; and</text> </paragraph> <paragraph num="(3)"> <text>Be stored either in the cage or secured to the gaming table, in a manner consistent with the facility’s approved internal controls.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Notwithstanding the requirements in §C of this regulation, for table games that are not open for gaming activity during the gaming day, a facility operator may use this alternative procedure:</text> <paragraph num="(1)"> <text>A floorperson or above shall complete a Closed Table form for every table that was not open for gaming during the gaming day;</text> </paragraph> <paragraph num="(2)"> <text>The table inventory shall remain locked during completion of the Closed Table form;</text> </paragraph> <paragraph num="(3)"> <text>The Closed Table form shall contain:</text> <paragraph num="(a)"> <text>The date and identification of the shift ended;</text> </paragraph> <paragraph num="(b)"> <text>The game and table number;</text> </paragraph> <paragraph num="(c)"> <text>The date the table was last opened for gaming; and</text> </paragraph> <paragraph num="(d)"> <text>The signature and license number of the floorperson or above who completed the Closed Table form; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>After completion of the procedure, the floorperson or above who completed the Closed Table form shall deposit the form into the drop box.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The keys to the locked containers containing the table inventories shall be maintained and controlled by the gaming operations department and may not be made accessible to cage personnel or to any employee responsible for transporting the table inventories to or from the gaming tables.</text> </paragraph> <paragraph num="F."> <text>Table Inventory Slips shall be two-part forms upon which the following is recorded:</text> <paragraph num="(1)"> <text>The date and identification of the shift ended;</text> </paragraph> <paragraph num="(2)"> <text>The game and table number;</text> </paragraph> <paragraph num="(3)"> <text>The total value of each denomination of value chips, coins and plaques remaining at the gaming table;</text> </paragraph> <paragraph num="(4)"> <text>The total value of all denominations of value chips, coins and plaques remaining at the gaming table; and</text> </paragraph> <paragraph num="(5)"> <text>The signatures of the dealer, or boxperson and floorperson, assigned to the gaming table who conducted the count of the table inventory when the gaming table was closed and when the gaming table was opened.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Procedures for Opening a Table Game."> <paragraph num="A."> <text>When a table game is to be opened for gaming activity, a security department employee shall transport directly from the cage to the gaming table the locked container with the table inventory and the duplicate copy of the Table Inventory Slip if the Slip is not already attached to the gaming table.</text> </paragraph> <paragraph num="B."> <text>Immediately prior to opening the table game for gaming, the floorperson assigned to the gaming table shall unlock the container with the table inventory after assuring that it is the proper container for that gaming table.</text> </paragraph> <paragraph num="C."> <text>The dealer or boxperson assigned to the gaming table shall count the contents of the table inventory in the presence of the floorperson assigned to the gaming table and reconcile the count to the totals on the duplicate copy of the Table Inventory Slip removed from the container.</text> </paragraph> <paragraph num="D."> <text>The dealer or boxperson assigned to the table, and the floorperson who observed the dealer or boxperson count the contents of the container, shall attest to the accuracy of the information recorded on the duplicate copy of the Table Inventory Slip by signing the duplicate copy of the Table Inventory Slip.</text> </paragraph> <paragraph num="E."> <text>After the duplicate copy of the Table Inventory Slip has been signed as required under §D of this regulation, the dealer, boxperson or floorperson shall immediately deposit the slip into the table game drop box attached to the gaming table.</text> </paragraph> <paragraph num="F."> <text>If there is a discrepancy between the amount of gaming chips and plaques counted and the amount of the gaming chips and plaques recorded on the duplicate copy of the Table Inventory Slip:</text> <paragraph num="(1)"> <text>The discrepancy shall be immediately verbally reported to the floorperson or above, the security department and a Commission compliance representative;</text> </paragraph> <paragraph num="(2)"> <text>In the presence of the floorperson or above, the dealer or boxperson assigned to the table shall recount the table inventory and complete a new Table Inventory Slip reflecting the results of the dealer’s or boxperson’s recount of the table inventory;</text> </paragraph> <paragraph num="(3)"> <text>The floorperson or above shall:</text> <paragraph num="(a)"> <text>Prepare an Error Notification Slip, which shall be a three-part form containing:</text> <paragraph num="(i)"> <text>The date and time;</text> </paragraph> <paragraph num="(ii)"> <text>The type of game;</text> </paragraph> <paragraph num="(iii)"> <text>The table number and pit; and</text> </paragraph> <paragraph num="(iv)"> <text>An explanation of the discrepancy;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Write “Incorrect Copy” on the copy of the Table Inventory Slip that was in the table inventory;</text> </paragraph> <paragraph num="(c)"> <text>Sign the “Incorrect Copy”; and</text> </paragraph> <paragraph num="(d)"> <text>Write “Correct Copy” on both copies of the Table Inventory Slip required to be prepared by the dealer or boxperson under §F(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The “Correct Copy” shall be signed by the dealer or boxperson who recounted the table inventory, and the floorperson or above.</text> </paragraph> <paragraph num="(5)"> <text>After the signatures required under §F(4) of this regulation have been obtained, the dealer or boxperson shall deposit in the drop box the “Incorrect Copy” Table Inventory Slip, both copies of the “Correct Copy” Table Inventory Slip and the first copy of the Error Notification Slip.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A dealer or boxperson shall give the second copy of the Error Notification Slip to the pit clerk or floorperson or above, and shall deliver the third copy of the Error Notification Slip to a Commission compliance representative.</text> </paragraph> <paragraph num="H."> <text>For any unresolved discrepancy greater than $100, the security or surveillance department shall investigate the discrepancy and, within 24 hours, complete a written incident report and immediately forward a copy to a Commission compliance representative.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Procedure for Distributing Chips, Coins, and Plaques to a Gaming Table."> <paragraph num="A."> <text>A pit clerk or floorperson or above shall prepare a request for a fill to add value chips, coins, and plaques to a table game using a Fill Request Slip.</text> </paragraph> <paragraph num="B."> <text>Access to the blank Fill Request Slips shall be restricted to pit clerks and floorpersons or above.</text> </paragraph> <paragraph num="C."> <text>A Fill Request Slip shall be a two-part form on which the following information shall be recorded:</text> <paragraph num="(1)"> <text>The date and time of preparation;</text> </paragraph> <paragraph num="(2)"> <text>The denomination of value chips, coins and plaques to be distributed to the gaming table;</text> </paragraph> <paragraph num="(3)"> <text>The total amount of each denomination of value chips, coins and plaques to be distributed to the gaming table;</text> </paragraph> <paragraph num="(4)"> <text>The game and table number to which the value chips, coins and plaques are to be distributed; and</text> </paragraph> <paragraph num="(5)"> <text>The signature of the floorperson or above requesting the fill.</text> </paragraph> </paragraph> <paragraph num="D."> <text>After the Fill Request Slip has been prepared, the security department employee shall transport the chip bank copy of the Fill Request Slip directly to the chip bank.</text> </paragraph> <paragraph num="E."> <text>The dealer or boxperson shall place the drop box copy of the Fill Request Slip in view of the facility operator’s surveillance system on the gaming table to which the value chips, coins, and plaques are to be received.</text> </paragraph> <paragraph num="F."> <text>Notwithstanding the requirements of §§A—E of this regulation, a fill request may be prepared electronically if:</text> <paragraph num="(1)"> <text>The input data for preparation of the fill is entered by, and ability to input data is restricted to, the pit clerk or a floorperson or above; and</text> </paragraph> <paragraph num="(2)"> <text>A Fill Slip is generated in the chip bank as a direct result of the input.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A Fill Slip shall be prepared by a chip bank cashier or, if the required information was inputted in conformity with §F of this regulation, the Fill Slip may be electronically generated in the chip bank.</text> </paragraph> <paragraph num="H."> <text>A Fill Slip shall be:</text> <paragraph num="(1)"> <text>A serially prenumbered form;</text> </paragraph> <paragraph num="(2)"> <text>Used in sequential order;</text> </paragraph> <paragraph num="(3)"> <text>Accounted for by employees with no incompatible functions; and</text> </paragraph> <paragraph num="(4)"> <text>If applicable, marked “Void” and signed by the preparer.</text> </paragraph> </paragraph> <paragraph num="I."> <text>If a Fill Slip is manually prepared, the following procedures and requirements shall be observed:</text> <paragraph num="(1)"> <text>Each series of Fill Slips shall be a four-part form and shall be inserted in a locked dispenser or bound in a Fill Slip form book that permits an individual Fill Slip in the series and its copies to be written upon while still locked in the dispenser or bound in the Fill Slip form book;</text> </paragraph> <paragraph num="(2)"> <text>The Fill Slip dispenser shall discharge the drop box, acknowledgement and chip bank copies of the Fill Slip while the accounting copy remains in a continuous, unbroken form in the dispenser; or</text> </paragraph> <paragraph num="(3)"> <text>If a Fill Slip form book is utilized, the accounting copy must remain in the bound Fill Slip form book until removed in accordance with §I(4) of this regulation; and</text> </paragraph> <paragraph num="(4)"> <text>Access to copies of the Fill Slips shall be maintained and controlled by accounting department employees with no incompatible functions who are responsible for controlling and accounting for the unused supply of Fill Slips, placing Fill Slips in the dispensers and removing the accounting copies of the Fill Slips from the dispensers or Fill Slip form book each gaming day.</text> </paragraph> </paragraph> <paragraph num="J."> <text>If a Fill Slip is electronically prepared, each series of Fill Slips must be a three-part form and:</text> <paragraph num="(1)"> <text>Be inserted in a printer that will simultaneously print a drop box, acknowledgment and chip bank copy of the Fill Slip in the chip bank; and</text> </paragraph> <paragraph num="(2)"> <text>Store, in machine readable form, the information printed on the drop box, acknowledgement, and chip bank copies of the Fill Slips so that the stored data may not be susceptible to change or removal by any personnel involved in the preparation of a Fill Slip after the Fill Slip has been prepared.</text> </paragraph> </paragraph> <paragraph num="K."> <text>A copy of a Fill Slip and, if applicable, the stored data, must contain at least the:</text> <paragraph num="(1)"> <text>Denominations of the value chips, coins, and plaques being distributed;</text> </paragraph> <paragraph num="(2)"> <text>Total amount of each denomination of value chips, coins, and plaques being distributed;</text> </paragraph> <paragraph num="(3)"> <text>Total amount of all denominations of value chips, coins, and plaques being distributed;</text> </paragraph> <paragraph num="(4)"> <text>Game and table number to which the value chips, coins, and plaques are being distributed;</text> </paragraph> <paragraph num="(5)"> <text>Date and shift during which the distribution of value chips, coins, and plaques occurs; and</text> </paragraph> <paragraph num="(6)"> <text>Signature of the preparer or, if electronically prepared, the license number of the preparer.</text> </paragraph> </paragraph> <paragraph num="L."> <text>The time of preparation of the Fill Slip shall be recorded on the drop box, acknowledgement, and chip bank copies of the Fill Slip upon preparation.</text> </paragraph> <paragraph num="M."> <text>A security department employee shall directly transport a value chip, coin or plaque distributed to a gaming table from the chip bank to a gaming table.</text> </paragraph> <paragraph num="N."> <text>Upon receipt of a value chip, coin or plaque at a gaming table, the floorperson shall:</text> <paragraph num="(1)"> <text>Compare the Fill Request Slip to the Fill Slip; and</text> </paragraph> <paragraph num="(2)"> <text>Attest to the accuracy of the fill by signing the drop box copy and acknowledgement copy of the Fill Slip.</text> </paragraph> </paragraph> <paragraph num="O."> <text>If a fill request is generated electronically in the chip bank in accordance with §F of this regulation, the floorperson shall:</text> <paragraph num="(1)"> <text>Compare the Fill Slip with the electronically generated fill request; and</text> </paragraph> <paragraph num="(2)"> <text>Attest to the accuracy of the fill by signing the drop box and acknowledgement copies of the Fill Slip.</text> </paragraph> </paragraph> <paragraph num="P."> <text>Signatures on the drop box and acknowledgement copies of the Fill Slip attesting to the accuracy of the information contained on a Fill Slip shall be required of the specified employees at the specified times:</text> <paragraph num="(1)"> <text>The chip bank cashier, upon preparation;</text> </paragraph> <paragraph num="(2)"> <text>The security department employee transporting the value chips, coins and plaques to the gaming table, upon receipt from the cashier of the value chips, coins and plaques to be transported;</text> </paragraph> <paragraph num="(3)"> <text>The dealer or boxperson assigned to the gaming table, upon receipt and verification of the amounts of the value chips, coins and plaques at the gaming table from the security department employee; and</text> </paragraph> <paragraph num="(4)"> <text>The floorperson assigned to the gaming table, upon receipt and verification of the amounts of the value chips, coins and plaques at the gaming table.</text> </paragraph> </paragraph> <paragraph num="Q."> <text>After the signature requirements in §P of this regulation have been satisfied, the security department employee who transported to a gaming table a value chip, coin or plaque, the drop box, and acknowledgement copies of the Fill Slip, shall:</text> <paragraph num="(1)"> <text>Observe the dealer’s or boxperson’s immediate placement of the drop box copy of the Fill Slip and the drop box copy of the Fill Request Slip, if applicable, in the drop box attached to the gaming table to which a value chip, coin, or plaque was transported; and</text> </paragraph> <paragraph num="(2)"> <text>Return the acknowledgement copy of the Fill Slip to the chip bank cashier.</text> </paragraph> </paragraph> <paragraph num="R."> <text>The chip bank cashier shall maintain together the chip bank copies of the Fill Request Slip, if applicable, and the chip bank and acknowledgement copies of the Fill Slip, until those items are forwarded to the accounting department.</text> </paragraph> <paragraph num="S."> <text>All parts of voided Fill Slips, as well as the chip bank copies of Fill Request Slips, if applicable, and the acknowledgement and chip bank copies of the Fill Slips that are maintained and controlled in conformity with §Q of this regulation, shall be forwarded to the accounting department for agreement, on a daily basis, with:</text> <paragraph num="(1)"> <text>The drop box copies of the Fill Request Slips, if applicable, and Fill Slips removed from the drop box on the gaming table; and</text> </paragraph> <paragraph num="(2)"> <text>If applicable, the electronically stored data and accounting copies of the Fill Slips.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Removing a Value Chip, Coin, or Plaque from a Gaming Table."> <paragraph num="A."> <text>A pit clerk or floorperson or above shall prepare a request for a credit to remove a value chip, coin or plaque from a table game by using a Credit Request Slip.</text> </paragraph> <paragraph num="B."> <text>Access to the blank Credit Request Slips shall be restricted to pit clerks and floorpersons or above.</text> </paragraph> <paragraph num="C."> <text>A Credit Request Slip shall be a two-part form on which the following information shall be recorded:</text> <paragraph num="(1)"> <text>The date and time of preparation;</text> </paragraph> <paragraph num="(2)"> <text>The denomination of chips, coins, and plaques to be removed from the gaming table;</text> </paragraph> <paragraph num="(3)"> <text>The total amount of each denomination of value chips, coins and plaques to be removed from the gaming table;</text> </paragraph> <paragraph num="(4)"> <text>The game and table number from which the value chips, coins, and plaques are to be removed; and</text> </paragraph> <paragraph num="(5)"> <text>The signature of the floorperson or above assigned to the gaming table from which the value chips, coins and plaques are to be removed.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A security department employee shall transport the chip bank copy of a prepared Credit Request Slip directly to the chip bank.</text> </paragraph> <paragraph num="E."> <text>A dealer or boxperson shall place the drop box copy of the Credit Request Slip in view of the facility operator’s surveillance system on the gaming table from which the value chips, coins and plaques are to be removed.</text> </paragraph> <paragraph num="F."> <text>The drop box copy of the Credit Request Slip may not be removed until the drop box and acknowledgement copies of the Credit Slip are received from the chip bank.</text> </paragraph> <paragraph num="G."> <text>Notwithstanding the requirements of §§A—F of this regulation, a request for a credit may be prepared electronically if:</text> <paragraph num="(1)"> <text>The input data for preparation of the credit is entered by, and ability to input data is restricted to, the pit clerk or a floorperson or above; and</text> </paragraph> <paragraph num="(2)"> <text>A Credit Slip is generated in the chip bank as a direct result of the input.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A Credit Slip shall be prepared by a chip bank cashier or, if the required information was inputted in conformity with §G of this regulation, the Credit Slip may be electronically generated in the chip bank.</text> </paragraph> <paragraph num="I."> <text>Credit Slips shall be:</text> <paragraph num="(1)"> <text>Serially prenumbered forms;</text> </paragraph> <paragraph num="(2)"> <text>Used in sequential order;</text> </paragraph> <paragraph num="(3)"> <text>Accounted for by employees with no incompatible functions; and</text> </paragraph> <paragraph num="(4)"> <text>If applicable, marked “Void” and signed by the preparer.</text> </paragraph> </paragraph> <paragraph num="J."> <text>When Credit Slips are manually prepared, the following procedures and requirements shall be observed:</text> <paragraph num="(1)"> <text>Each series of Credit Slips shall be a four-part form and shall be inserted in a locked dispenser or bound in a Credit Slip form book that permits an individual Credit Slip in the series and its copies to be written upon while still locked in the dispenser or bound in the Credit Slip form book;</text> </paragraph> <paragraph num="(2)"> <text>The Credit Slip dispenser must discharge the drop box, acknowledgement and chip bank copies of the Credit Slip while the accounting copy remains in a continuous, unbroken form in the dispenser; or</text> </paragraph> <paragraph num="(3)"> <text>If a Credit Slip form book is utilized, the accounting copy must remain in the bound Credit Slip form book until removed in accordance with §J(4) of this regulation; and</text> </paragraph> <paragraph num="(4)"> <text>Access to the copies of the Credit Slips shall be maintained and controlled by accounting department employees with no incompatible functions who shall be responsible for controlling and accounting for the unused supply of the Credit Slips, placing Credit Slips in the dispensers, and removing the accounting copies of the Credit Slips from the dispensers or Credit Slip form book each gaming day.</text> </paragraph> </paragraph> <paragraph num="K."> <text>When Credit Slips are electronically prepared, each series of Credit Slips must be a three-part form and:</text> <paragraph num="(1)"> <text>Be inserted in a printer that simultaneously prints drop box, acknowledgement and chip bank copies of the Credit Slip in the chip bank;</text> </paragraph> <paragraph num="(2)"> <text>Store, in machine-readable form, the information printed on the drop box, acknowledgement and chip bank copies of the Credit Slip; and</text> </paragraph> <paragraph num="(3)"> <text>The stored data may not be susceptible to change or removal by any personnel after the preparation of a Credit Slip after the Credit Slip has been prepared.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Copies of the Credit Slip, and when applicable, the stored data, must contain at least the following information:</text> <paragraph num="(1)"> <text>The denominations of the value chips, coins, and plaques being returned to the chip bank;</text> </paragraph> <paragraph num="(2)"> <text>The total amount of each denomination of value chips, coins and plaques being returned;</text> </paragraph> <paragraph num="(3)"> <text>The total amount of all denominations of value chips, coins, and plaques being returned;</text> </paragraph> <paragraph num="(4)"> <text>The game and table number from which the value chips, coins, and plaques are being returned;</text> </paragraph> <paragraph num="(5)"> <text>The date and shift during which the removal of value chips, coins, and plaques occurs; and</text> </paragraph> <paragraph num="(6)"> <text>The signature of the preparer or, if electronically prepared, the identification code of the preparer.</text> </paragraph> </paragraph> <paragraph num="M."> <text>When the Credit Slip is prepare, the time of its preparation shall be recorded on the drop box, acknowledgement and chip bank copies of the Credit Slip.</text> </paragraph> <paragraph num="N."> <text>After the Credit Slip has been prepared by the chip bank cashier or has been printed in the chip bank as a result of the information being inputted electronically by a pit clerk or floorperson or above, the security department employee shall transport the drop box, acknowledgement and chip bank copies of the Credit Slip directly to the gaming table.</text> </paragraph> <paragraph num="O."> <text>The dealer or boxperson shall compare the value chips, coins and plaques to be removed from the table inventory container with the drop box copy of the Credit Slip and the Credit Request Slip, if applicable, and shall sign the Credit Slip.</text> </paragraph> <paragraph num="P."> <text>Signatures on the drop box, acknowledgement and chip bank copies of a Credit Slip attesting to the accuracy of the information contained on the Credit Slip shall be required of the specified employees at the specified times:</text> <paragraph num="(1)"> <text>The chip bank cashier, upon receipt of the value chips from the table;</text> </paragraph> <paragraph num="(2)"> <text>The dealer or boxperson assigned to the gaming table, upon removal of the value chips, coins and plaques from the table inventory container and verification of the Credit Slip and Credit Request Slip, if applicable;</text> </paragraph> <paragraph num="(3)"> <text>The floorperson assigned to the gaming table, upon observing the removal of the value chips, coins and plaques from the table inventory container and the verification of the Credit Slip and Credit Request Slip, if applicable; and</text> </paragraph> <paragraph num="(4)"> <text>The security department employee, upon receipt of the value chips, coins and plaques from the gaming table.</text> </paragraph> </paragraph> <paragraph num="Q."> <text>After meeting the signature requirements required under §P of this regulation:</text> <paragraph num="(1)"> <text>The security department employee shall transport the value chips, coins and plaques directly to the chip bank along with the acknowledgement and chip bank copies of the Credit Slip;</text> </paragraph> <paragraph num="(2)"> <text>The dealer or boxperson shall place the drop box copy of the Credit Slip on the gaming table in view of the facility’s surveillance system;</text> </paragraph> <paragraph num="(3)"> <text>Upon receipt of the value chips, coins and plaques from the security department employee, the chip bank cashier shall:</text> <paragraph num="(a)"> <text>Compare the chip bank copy of the Credit Request Slip with the Credit Slip; or</text> </paragraph> <paragraph num="(b)"> <text>If the credit request is electronically generated in accordance with §G of this regulation, the chip bank cashier shall compare the Credit Slip with the electronically generated credit request; and</text> </paragraph> <paragraph num="(c)"> <text>The chip bank cashier shall attest to the accuracy of the credit by signing the acknowledgement and chip bank copies of the Credit Slip.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>After transporting the acknowledgement copy of the Credit Slip back to the gaming table from which the value chips, coins and plaques were removed, the security department employee shall observe the immediate placement by the dealer or boxperson of the drop box copy of the Credit Request Slip, if applicable, and the drop box and acknowledgement copies of the Credit Slip into the drop box.</text> </paragraph> <paragraph num="(5)"> <text>The chip bank copies of the Credit Request Slip, if applicable, and Credit Slip shall be maintained together by the chip bank cashier until forwarded to the accounting department.</text> </paragraph> </paragraph> <paragraph num="R."> <text>All parts of voided Credit Slips, chip bank copies of Credit Request Slips, if applicable, and the chip bank copies of the Credit Slips that are maintained and controlled in conformity with §Q of this regulation, shall be forwarded by a chip bank cashier to the accounting department for agreement, on a daily basis, with:</text> <paragraph num="(1)"> <text>The drop box copies of the Credit Request Slips, if applicable, and the drop box and acknowledgement copies of the Credit Slips removed from the drop box on the gaming table; and</text> </paragraph> <paragraph num="(2)"> <text>The electronically stored data and accounting copies of Credit Slips, if applicable.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Accepting Cash for Gaming Chips, Plaques, or Electronic Wagering Credits."> <text>When a player presents cash at a table game for exchange for gaming chips, plaques or electronic wagering credits:</text> <paragraph num="A."> <text>The dealer or boxperson shall spread the cash on the top of the gaming table in full view of the player who presented it, the floorperson assigned to the gaming table and the facility operator's surveillance system.</text> </paragraph> <paragraph num="B."> <text>The amount of cash shall be verbalized by the dealer or boxperson accepting it in a tone of voice to be heard by the player who presented it and the floorperson assigned to the gaming table.</text> </paragraph> <paragraph num="C."> <text>Immediately after an equivalent amount of gaming chips, plaques or electronic wagering credits has been given to the player by the dealer or boxperson, the dealer or boxperson shall take the cash from the top of the gaming table and place it into the drop box attached to the gaming table.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Drop at an Open Table Game."> <paragraph num="A."> <text>When a table game being dropped is to remain open for gaming activity, the dealer or boxperson assigned to the gaming table shall count the value chips, coins, and plaques remaining in the table inventory at the time of the drop and record the amount on a Table Inventory Slip.</text> </paragraph> <paragraph num="B."> <text>The floorperson who is responsible for supervising the table game at the time of the drop shall observe the count required under §A of this regulation.</text> </paragraph> <paragraph num="C."> <text>The dealer or boxperson assigned to the table, and the floorperson who observed the dealer or boxperson count the contents of the table inventory, shall attest to the accuracy of the information recorded on the Table Inventory Slip by signing the Table Inventory Slip.</text> </paragraph> <paragraph num="D."> <text>After the Table Inventory Slip is signed as required under §C of this regulation:</text> <paragraph num="(1)"> <text>The dealer or boxperson shall deposit the original copy of the Table Inventory Slip in the drop box that is attached to the gaming table immediately before the drop box is removed from the gaming table as part of the drop; and</text> </paragraph> <paragraph num="(2)"> <text>The dealer or boxperson shall deposit the duplicate copy of the Table Inventory Slip in the drop box that is attached to the gaming table immediately after the removal of the drop box that is removed from the gaming table as part of the drop.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Procedure for Closing a Table Game."> <paragraph num="A."> <text>When gaming activity at a table game is concluded, the dealer or boxperson assigned to the gaming table, in the presence of the floorperson assigned to the gaming table, shall count the value chips, coins, and plaques remaining at the gaming table.</text> </paragraph> <paragraph num="B."> <text>The floorperson assigned to the gaming table shall record the amounts of the value chips, coins and plaques counted on the Table Inventory Slip, and the original copy of the Table Inventory Slip shall be signed by the dealer or boxperson who counted the table inventory and by the floorperson who observed the dealer or boxperson count the contents of the table inventory.</text> </paragraph> <paragraph num="C."> <text>After the original copy of the Table Inventory Slip has been signed as required under §B of this regulation, the dealer or boxperson shall immediately deposit the original copy of the Table Inventory Slip in the table game drop box attached to the gaming table.</text> </paragraph> <paragraph num="D."> <text>After the original copy of the Table Inventory Slip has been deposited in the table game drop box attached to the gaming table, the dealer or boxperson shall place the duplicate copy of the Table Inventory Slip and the value chips, coins and plaques remaining at the gaming table in the container required under Regulation .02 of this chapter, after which the floorperson shall lock the table inventory container and cause it to be transported directly to the cage by a security department member or secured to the gaming table.</text> </paragraph> <paragraph num="E."> <text>If the locked table inventory containers are transported to the cage, a cage supervisor shall determine that all locked containers have been returned.</text> </paragraph> <paragraph num="F."> <text>If the locked table inventory containers are secured to the gaming table, a pit manager or above shall verify that all the containers are locked.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Table Inventory for a Poker Table."> <paragraph num="A."> <text>Notwithstanding the requirements in Regulations .02, .03, .06, and .07 of this chapter, a facility operator may establish procedures for the issuance of table inventories that are maintained by poker dealers on an impress basis.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall submit to the Commission the procedures developed under §A of this regulation as part of the facility operator's internal controls.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Table Inventory Counts."> <paragraph num="A."> <text>In addition to the requirements in Regulations .03, .07, and .08 of this chapter for opening a table game, conducting a drop during an open game, and closing a table game, a facility operator may establish procedures for the use of a three-compartment drop box.</text> </paragraph> <paragraph num="B."> <text>The use of a three-compartment drop box requires the preparation of a Table Inventory Slip for each shift that the table was open at least once each gaming day.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall submit to the Commission the procedures developed under §A of this regulation as part of the facility operator's internal controls.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Match Play Coupons and Direct Bet Coupons."> <paragraph num="A."> <text>A facility operator may use Match Play Coupons and Direct Bet Coupons.</text> </paragraph> <paragraph num="B."> <text>A coupon may not be issued by a facility operator or used in a facility until:</text> <paragraph num="(1)"> <text>The design specifications of the proposed coupon are submitted to and approved by the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>A system of internal procedures and administrative and accounting controls governing the inventory, distribution and redemption of the coupon is submitted to and approved by the Commission as part of the facility operator’s internal controls.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A coupon issued by a facility operator shall contain at least:</text> <paragraph num="(1)"> <text>The name or logo of the facility operator;</text> </paragraph> <paragraph num="(2)"> <text>The value of the coupon, which can be identified when viewing the coupon through the facility operator’s surveillance system;</text> </paragraph> <paragraph num="(3)"> <text>A sequential serial number;</text> </paragraph> <paragraph num="(4)"> <text>Any restrictions regarding redemption, including the type of game or wager on which the coupon may be used; and</text> </paragraph> <paragraph num="(5)"> <text>The expiration date of the coupon.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Match Play Coupons shall contain an area designated for the placement thereon of the required gaming chips that does not obscure the visibility of the denomination of the coupon.</text> </paragraph> <paragraph num="E."> <text>Administration of Coupon Program.</text> <paragraph num="(1)"> <text>The accounting department and the marketing department, or other department as specified in the facility operator’s internal controls, shall be responsible for administering the coupon program.</text> </paragraph> <paragraph num="(2)"> <text>The marketing department shall be responsible for distributing the coupon to a player.</text> </paragraph> <paragraph num="(3)"> <text>The accounting department shall be responsible for maintaining the coupon ledger and administering the coupon accounting procedures set forth in §N of this regulation.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A shipment of coupons received from a manufacturer or contractor, or those coupons produced by the facility operator, in accordance with §Q of this regulation shall be opened and examined by at least one member of the accounting department and one member of the marketing department, who shall report any deviation between the invoice accompanying the coupon and the actual coupon received to a supervisor from the accounting department.</text> </paragraph> <paragraph num="G."> <text>After checking a coupon received from a manufacturer or contractor, or produced by the facility operator, an accounting department supervisor shall record the following information in the coupon ledger:</text> <paragraph num="(1)"> <text>The date a coupon was received;</text> </paragraph> <paragraph num="(2)"> <text>The quantity and denomination of coupons received;</text> </paragraph> <paragraph num="(3)"> <text>The beginning and ending serial number of the coupons received; and</text> </paragraph> <paragraph num="(4)"> <text>The name, signature and license number of the individuals who checked the coupons.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A marketing department supervisor shall estimate the number of coupons needed for each gaming day or promotion and complete a requisition document which contains the following information:</text> <paragraph num="(1)"> <text>The date the requisition was prepared;</text> </paragraph> <paragraph num="(2)"> <text>The date for which the coupons are needed;</text> </paragraph> <paragraph num="(3)"> <text>The denomination and quantity of coupons requested;</text> </paragraph> <paragraph num="(4)"> <text>The name, signature, and license number of the marketing department supervisor completing the requisition; and</text> </paragraph> <paragraph num="(5)"> <text>The name, signature and license number of the accounting department supervisor authorizing the requisition.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Upon receipt of the requisition document, the accounting department supervisor shall record in the coupon ledger the following information before issuing the coupons to the marketing department supervisor:</text> <paragraph num="(1)"> <text>The beginning and ending serial number of the coupons to be issued;</text> </paragraph> <paragraph num="(2)"> <text>The denomination and quantity of coupons to be issued;</text> </paragraph> <paragraph num="(3)"> <text>The name, signature and license number of the accounting department supervisor who will be issuing the coupons; and</text> </paragraph> <paragraph num="(4)"> <text>A record and explanation of coupons that were voided.</text> </paragraph> </paragraph> <paragraph num="J."> <text>A coupon that is not issued to the marketing department shall be controlled by an accounting department supervisor or above and stored in a secured and locked area approved by the Commission, as designated in the facility operator’s internal controls the location of the approved storage area.</text> </paragraph> <paragraph num="K."> <text>The marketing department shall maintain a daily Coupon Reconciliation Form which shall contain:</text> <paragraph num="(1)"> <text>The date;</text> </paragraph> <paragraph num="(2)"> <text>The beginning and ending serial numbers of the coupons received from the accounting department;</text> </paragraph> <paragraph num="(3)"> <text>The denomination and quantity of coupons the marketing department has to distribute to players;</text> </paragraph> <paragraph num="(4)"> <text>The denomination and quantity of coupons the marketing department distributed to players;</text> </paragraph> <paragraph num="(5)"> <text>The denomination, quantity, and serial numbers of coupons remaining;</text> </paragraph> <paragraph num="(6)"> <text>The serial numbers of coupons that were voided and the reason the coupons were voided;</text> </paragraph> <paragraph num="(7)"> <text>Any discrepancy discovered in the accounting for coupons and an explanation of the discrepancy; and</text> </paragraph> <paragraph num="(8)"> <text>The name, signature and license number of the marketing department supervisor completing the form.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Undistributed Coupons.</text> <paragraph num="(1)"> <text>At the end of the gaming day or promotional period, a copy of the Coupon Reconciliation Form and all coupons that were not distributed to players shall be returned to the accounting department.</text> </paragraph> <paragraph num="(2)"> <text>The marketing department may keep for use during the next gaming day all coupons that were not distributed to players if the coupons are:</text> <paragraph num="(a)"> <text>Stored in a secured and locked area approved in advance by the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Recorded on the daily Coupon Reconciliation Form for the next gaming day.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>All expired coupons shall be returned to the accounting department on a daily basis.</text> </paragraph> <paragraph num="(4)"> <text>When unused and expired coupons are returned to the accounting department, an accounting department supervisor shall record the following information in the coupon ledger:</text> <paragraph num="(a)"> <text>The date the coupons were returned;</text> </paragraph> <paragraph num="(b)"> <text>The beginning and ending serial numbers of the coupons returned;</text> </paragraph> <paragraph num="(c)"> <text>The denomination and quantity of coupons returned;</text> </paragraph> <paragraph num="(d)"> <text>The serial numbers of any coupons that were voided and the reason the coupons were voided;</text> </paragraph> <paragraph num="(e)"> <text>The name, signature, and license number of the marketing department supervisor returning the unused coupons; and</text> </paragraph> <paragraph num="(f)"> <text>The name, signature, and license number of the accounting department supervisor who received the unused coupons.</text> </paragraph> </paragraph> </paragraph> <paragraph num="M."> <text>All documentation, voided coupons, redeemed coupons, and coupons that were not distributed to players shall be forwarded daily to the accounting department where the coupons shall be:</text> <paragraph num="(1)"> <text>Counted and examined for proper calculation and recording;</text> </paragraph> <paragraph num="(2)"> <text>Reviewed for the propriety of signatures on the documentation and cancelled;</text> </paragraph> <paragraph num="(3)"> <text>Reconciled by total number of coupons given to the marketing department for distribution to players, returned for reissuance, voided, distributed to players and redeemed; and</text> </paragraph> <paragraph num="(4)"> <text>Recorded, maintained, and controlled by the accounting department.</text> </paragraph> </paragraph> <paragraph num="N."> <text>At least once every month, a facility operator shall inventory all coupons that are not distributed to players and record the result of the inventory in the coupon ledger in accordance with the inventory procedures that the Commission approved as part of the facility operator’s internal controls.</text> </paragraph> <paragraph num="O."> <text>A facility operator shall prepare and submit to the Commission a quarterly report that lists the total value of the coupons redeemed by players.</text> </paragraph> <paragraph num="P."> <text>If a facility operator’s Commission-approved internal controls include its production and subsequent reconciliation of coupons, a facility operator may internally manufacture or print coupons.</text> </paragraph> <paragraph num="Q."> <text>Production of Coupons. If a facility operator’s Commission-approved internal controls include the production of coupons by a manufacturer or contractor, a facility operator may authorize a manufacturer or contractor to print and mail coupons directly to players in accordance with the following requirements:</text> <paragraph num="(1)"> <text>The coupons shall comply with the requirements in §§B and C of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>The facility operator shall supply the manufacturer or contractor, through electronic means, a list of the following information for each player to whom the coupon shall be mailed:</text> <paragraph num="(a)"> <text>The player’s name and address;</text> </paragraph> <paragraph num="(b)"> <text>The denomination of the coupon;</text> </paragraph> <paragraph num="(c)"> <text>The expiration date of the coupon; and</text> </paragraph> <paragraph num="(d)"> <text>A serial number on each coupon;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The coupon issued shall include a magnetic strip or bar code that will enable the facility operator’s computer system to identify the information required under §R(2) of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>The information in §R(2) of this regulation shall be provided to the accounting department, which shall maintain the information for purposes of reconciliation as required under §N of this regulation;</text> </paragraph> <paragraph num="(5)"> <text>Prior to redemption of the coupon, a dealer shall verify the expiration date and confirm that the coupon has not expired;</text> </paragraph> <paragraph num="(6)"> <text>All coupons issued shall be electronically canceled in the facility operator’s computer system immediately upon redemption or during the counting of the table game drop boxes; and</text> </paragraph> <paragraph num="(7)"> <text>The facility operator shall ensure that the manufacturer or contractor does not engage in a predatory marketing practice in violation of COMAR 36.03.03.08.</text> </paragraph> </paragraph> <paragraph num="R."> <text>A facility operator may use a computerized system that complies with the requirements in this regulation if:</text> <paragraph num="(1)"> <text>The computerized system creates coupons that comply with the requirements in §§B and C of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>The computerized system provides an audit trail and allows for the segregation of duties to satisfy the requirements in this section; and</text> </paragraph> <paragraph num="(3)"> <text>The facility operator includes in its internal controls procedures governing the production, recording, redemption, and reconciliation of computer-generated coupons.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Use of Match Play Coupons and Direct Bet Coupons."> <paragraph num="A."> <text>A coupon may be redeemed only at a gaming table in which a player wagers against the house.</text> </paragraph> <paragraph num="B."> <text>Redemption. The dealer shall:</text> <paragraph num="(1)"> <text>Verify the coupon is valid prior to accepting it as a wager;</text> </paragraph> <paragraph num="(2)"> <text>Ensure that a coupon is placed on an authorized wager so that the value of the coupon is visible at all times; and</text> </paragraph> <paragraph num="(3)"> <text>Settle winning wagers in accordance with the terms and conditions of the coupon.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Whether the wager wins or loses, the dealer shall deposit the coupon into the drop box attached to the gaming table at the time the winning wager is paid or the losing wager is collected.</text> </paragraph> <paragraph num="D."> <text>The coupon shall remain in the event of a push.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Electronic, Electrical, and Mechanical Devices Prohibited."> <paragraph num="A."> <text>A player, or an individual acting in concert with a player, may not use, or possess with the intent to use, at a table game a calculator, computer or other electronic, electrical, or mechanical device to assist in:</text> <paragraph num="(1)"> <text>Projecting an outcome at any table game;</text> </paragraph> <paragraph num="(2)"> <text>Tracking or analyzing cards that have been dealt;</text> </paragraph> <paragraph num="(3)"> <text>Tracking the changing probabilities of a table game; or</text> </paragraph> <paragraph num="(4)"> <text>Developing or tracking a playing strategy to be used by a player.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A violation of §A of this regulation may be the basis for immediate ejection from the facility, placement on the Commission’s mandatory exclusion list under COMAR 36.03.07, or other civil or criminal penalty.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Minimum and Maximum Wagers; Payout Odds."> <paragraph num="A."> <text>A facility operator shall establish minimum and maximum wagers for any authorized table game in a facility.</text> </paragraph> <paragraph num="B."> <text>In accordance with Regulation .23 of this chapter, a facility operator shall provide notice of the minimum and maximum wagers in effect at each gaming table.</text> </paragraph> <paragraph num="C."> <text>A wager accepted by a dealer that exceeds the current table maximum, or is lower than the current table minimum, shall be paid or lost in its entirety in accordance with the rules of the game.</text> </paragraph> <paragraph num="D."> <text>If a facility operator includes a wagering requirement in its rules of the game under Regulation .21 of this chapter nothing in this regulation shall preclude a facility operator from establishing additional wagering requirements that are consistent with the rules of the game, including a requirement that wagers be made in specified increments.</text> </paragraph> <paragraph num="E."> <text>Unless otherwise specified in a Commission-approved paytable, the payout odds for wagers printed on a layout, signage, brochure or other publication distributed by the facility operator shall be stated through the use of the word “to” and may not be stated through use of the word “for”.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Table Game Taxes and Gross Table Game Revenue."> <paragraph num="A."> <text>The tax on table game revenue shall be payable to the Commission within 2 business days, with the exception of Maryland State holidays, and must be based upon the gross table game revenue derived during a gaming day reported in the manner prescribed by the Commission.</text> </paragraph> <paragraph num="B."> <text>Gross table game revenue includes the following:</text> <paragraph num="(1)"> <text>The net revenue from all banking table games;</text> </paragraph> <paragraph num="(2)"> <text>The net revenue from nonbanking table games; and</text> </paragraph> <paragraph num="(3)"> <text>The net revenue from contests or tournaments.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Net revenue from banking table games must be the sum of the net revenue determined for each banking table game individually.</text> </paragraph> <paragraph num="D."> <text>The net revenue for an individual banking table game must be equal to the total of §D(1)—(3) of this regulation, minus the total of §D(4)—(6) of this regulation:</text> <paragraph num="(1)"> <text>The ending inventory of value chips, coins and plaques at the gaming table as reported on the Table Inventory Slip for a table game that remained open for gaming activity when the table was being dropped at the end of the gaming day or the Table Inventory Slip for a table game that was closed prior to the end of the gaming day;</text> </paragraph> <paragraph num="(2)"> <text>The sum of all Credit Slips for the gaming table for that gaming day;</text> </paragraph> <paragraph num="(3)"> <text>The total of the currency, promotional instruments, and counter checks collected from the drop box for that gaming table;</text> </paragraph> <paragraph num="(4)"> <text>The inventory of value chips, coins, and plaques at the gaming table as reported on the Table Inventory Slip for a table game that remained open for gaming activity when the table was being dropped at the end of the previous gaming day or the Table Inventory Slip for a table game that was opened during the gaming day;</text> </paragraph> <paragraph num="(5)"> <text>The sum of all Fill Slips and payments for counter checks and markers made at the table for the gaming table for that gaming day; and</text> </paragraph> <paragraph num="(6)"> <text>The sum of all promotional instruments that are allowed to be excluded from taxable proceeds under COMAR 36.03.10.36.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Net revenue from a nonbanking table game shall be the sum of the net revenue determined for each nonbanking table game individually, and the net revenue for an individual nonbanking table game shall be equal to the poker rake.</text> </paragraph> <paragraph num="F."> <text>Net revenue from an electronic wagering system shall be determined through the Commission’s central monitor and control system.</text> </paragraph> <paragraph num="G."> <text>Net revenue from any contest or tournament shall be the sum of the net revenue determined for each contest or tournament individually.</text> </paragraph> <paragraph num="H."> <text>The net revenue for an individual contest or tournament must be equal to the sum of all entry fees, buy-ins, re-buy-ins and administrative fees imposed by the facility operator on the contest or tournament participants, minus:</text> <paragraph num="(1)"> <text>The cash paid by the facility operator to the contest or tournament winners as prizes; and</text> </paragraph> <paragraph num="(2)"> <text>The actual cost paid by the facility operator for noncash prizes awarded to the contest or tournament winners.</text> </paragraph> </paragraph> <paragraph num="I."> <text>If the net revenue from a contest or tournament results in a loss, that loss may not offset the net revenue from another contest or tournament and may not be deducted from the calculation of gross table game revenue.</text> </paragraph> <paragraph num="J."> <text>Gross table game revenue may not include:</text> <paragraph num="(1)"> <text>Counterfeit cash or counterfeit value chips;</text> </paragraph> <paragraph num="(2)"> <text>Coins or currency of other countries that is not readily convertible to cash; or</text> </paragraph> <paragraph num="(3)"> <text>Cash taken in a fraudulent act for which the facility operator is not reimbursed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Approval of Table Game Layout, Signage, and Equipment."> <paragraph num="A."> <text>A facility operator shall submit to the Commission for approval table game staffing plans, tournament schedules, dealer training programs, and schematics of gaming guides, table game layouts, signage and equipment.</text> </paragraph> <paragraph num="B."> <text>For purposes of this chapter, schematics of table game equipment that shall be submitted to the Commission for review and approval include:</text> <paragraph num="(1)"> <text>Cards;</text> </paragraph> <paragraph num="(2)"> <text>Dice;</text> </paragraph> <paragraph num="(3)"> <text>Pai gow tiles;</text> </paragraph> <paragraph num="(4)"> <text>Gaming chips;</text> </paragraph> <paragraph num="(5)"> <text>Plaques;</text> </paragraph> <paragraph num="(6)"> <text>Commemorative chips;</text> </paragraph> <paragraph num="(7)"> <text>Pai gow and sic bo shakers;</text> </paragraph> <paragraph num="(8)"> <text>Big Six and roulette wheels;</text> </paragraph> <paragraph num="(9)"> <text>Envelopes and containers used to hold or transport table game equipment;</text> </paragraph> <paragraph num="(10)"> <text>Match Play Coupons;</text> </paragraph> <paragraph num="(11)"> <text>Direct Bet Coupons; and</text> </paragraph> <paragraph num="(12)"> <text>Table game equipment that are not otherwise required to be submitted to an independent certified testing laboratory for approval under COMAR 36.03.12.05.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Upon receipt of written approval from the Commission of its submission under §A of this regulation, a facility operator may implement a table game staffing plan, tournament schedule or dealer training program and may utilize a gaming guide, table game layout, signage or equipment in the licensed facility.</text> </paragraph> <paragraph num="D."> <text>A facility operator’s equipment storage and destruction areas may not be used until their location and physical characteristics have been approved by the Commission.</text> </paragraph> <paragraph num="E."> <text>A facility operator shall obtain approval from the Commission for the following:</text> <paragraph num="(1)"> <text>Alternative locations for:</text> <paragraph num="(a)"> <text>Equipment that is required to be on the gaming table, including drop boxes, shakers, shufflers, discard racks and tip boxes; and</text> </paragraph> <paragraph num="(b)"> <text>The complete text of the rules of all authorized games as required under Regulation .24 of this chapter;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Amendments to the facility operator’s plan for the distribution and collection of slot cash storage boxes, table game drop boxes or bad beat boxes under COMAR 36.03.10.45 and Regulations .07 and .08 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Sample sets of gaming chips and plaques manufactured in accordance with approved design specifications as required under COMAR 36.05.02.02 and COMAR 36.05.02.09; and</text> </paragraph> <paragraph num="(4)"> <text>The collection times for dice, cards, tiles and other table game equipment from the gaming floor.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Employee Training by Facility Operators."> <paragraph num="A."> <text>A facility operator shall develop a training program for its dealers which, at a minimum, includes training in each of the following:</text> <paragraph num="(1)"> <text>Procedures for opening and closing tables for gaming, including the proper security procedures regarding table chip inventories;</text> </paragraph> <paragraph num="(2)"> <text>Procedures for distributing and removing gaming chips and plaques from gaming tables;</text> </paragraph> <paragraph num="(3)"> <text>Procedures for accepting cash at gaming tables;</text> </paragraph> <paragraph num="(4)"> <text>Procedures for the acceptance of tips and gratuities from players;</text> </paragraph> <paragraph num="(5)"> <text>Procedures for shift changes at gaming tables;</text> </paragraph> <paragraph num="(6)"> <text>Procedures for the proper placement of wagers by players and the proper collection of losing wagers and payment of winning wagers; and</text> </paragraph> <paragraph num="(7)"> <text>Training in recognizing problem and compulsive gamblers at table games and procedures for informing supervisory personnel.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Table Test; Employee Personnel File."> <paragraph num="A."> <text>Before conducting a table game on the facility operator’s gaming floor, a prospective dealer shall pass a table test on the table games that the dealer will be conducting.</text> </paragraph> <paragraph num="B."> <text>A table test required under §A of this regulation shall consist of the dealer demonstrating proficiency at the table game to the satisfaction of an employee of the facility operator who is a pit manager or higher.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall document the following in a dealer’s personnel file:</text> <paragraph num="(1)"> <text>Completion of the training program required under Regulation .17 of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>Successful completion of the table test required under §A of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Table Games Rules Submissions."> <paragraph num="A."> <text>Before offering a table game authorized under the standard rules, a facility operator shall submit to the Commission a rules submission that specifies which options the facility operator will use in the conduct of the table game.</text> </paragraph> <paragraph num="B."> <text>A facility operator may implement the provisions in a rules submission only after receipt of written notice of approval from the Commission.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall maintain the current version of each Commission-approved rules submission so that it is available in electronic form, through secure computer access, to the facility operator’s internal audit and surveillance department and the Commission’s compliance representatives.</text> </paragraph> <paragraph num="D."> <text>Each page of a table game’s rules submission shall indicate the date on which it was approved by the Commission.</text> </paragraph> <paragraph num="E."> <text>A facility operator shall maintain a paper or electronic copy of any superseded rules submission for a minimum of 5 years from the date of Commission approval.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Request to Offer a New Table Game or Feature."> <paragraph num="A."> <text>A facility operator that desires to offer a table game or feature that is not already in the standard rules, or to offer a new wager, paytable or other feature as part of table game that has been approved by the Commission, shall submit a written request to the Commission that contains at least:</text> <paragraph num="(1)"> <text>A detailed description of the table game or new feature, including the rules of play and wagering for the new table game or feature;</text> </paragraph> <paragraph num="(2)"> <text>Description of whether the game is a variation of an authorized game, a composite of authorized games, or a new game;</text> </paragraph> <paragraph num="(3)"> <text>Provide the true odds, the payout odds, and the house advantage for each wager;</text> </paragraph> <paragraph num="(4)"> <text>Provide a sketch or picture of the game layout, if any;</text> </paragraph> <paragraph num="(5)"> <text>Provide sketches, pictures, or samples of the equipment used to play the game;</text> </paragraph> <paragraph num="(6)"> <text>The reason for proposing the new table game or feature;</text> </paragraph> <paragraph num="(7)"> <text>A list of other gaming jurisdictions where the new table game or feature is currently being offered;</text> </paragraph> <paragraph num="(8)"> <text>Whether the game, its name, or any of the equipment used to play the game is covered by any issued or pending copyrights, trademarks or patents; and</text> </paragraph> <paragraph num="(9)"> <text>Any other information the Commission requests.</text> </paragraph> </paragraph> <paragraph num="B."> <text>In addition to submitting a change request with the Commission, a facility operator shall, at its expense, submit the new table game or new feature for review to an independent certified testing laboratory certified by the Commission.</text> </paragraph> <paragraph num="C."> <text>Following testing by the independent certified testing laboratory, the Commission will notify the facility operator whether the new table game or new feature has been approved, approved with conditions, or rejected.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="Game Rules; Notice."> <paragraph num="A."> <text>The Commission shall maintain:</text> <paragraph num="(1)"> <text>A list of all table games that have been approved by the Commission and the standard rules for each approved table game; and</text> </paragraph> <paragraph num="(2)"> <text>Records of a facility operator’s table game or feature rules that have been approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Except as provided in §C of this regulation, a facility operator may not change the rules under which a particular table game is being operated unless the facility operator submits to, and receives written approval from, the Commission for an amendment to its rules submission under Regulation .19 of this chapter.</text> </paragraph> <paragraph num="C."> <text>A facility operator may increase or decrease the permissible maximum wager or decrease the permissible minimum wager at a table game:</text> <paragraph num="(1)"> <text>If no players are playing at the table, at any time; or</text> </paragraph> <paragraph num="(2)"> <text>While players are playing the game if the facility operator:</text> <paragraph num="(a)"> <text>Provides at least 30 minutes advance notice of the change;</text> </paragraph> <paragraph num="(b)"> <text>Posts a sign at the gaming table advising players of the change and the time that it will go into effect; and</text> </paragraph> <paragraph num="(c)"> <text>Announces the change to players who are at the table.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".22" heading="Player Access to Game Rules; Gaming Guide."> <paragraph num="A."> <text>A facility operator shall maintain, at its security podium or other location approved in advance by the Commission, a printed copy of the complete text of the standard rules of all authorized games that shall be available to the public for inspection upon request.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall make available to players upon request a gaming guide that contains, in a printed format, an abridged version of the complete text of the standard rules of all authorized games.</text> </paragraph> <paragraph num="C."> <text>The gaming guide required under §B of this regulation may not be issued, displayed or distributed by a facility operator until a sample of the gaming guide has been submitted to and approved by the Commission in accordance with Regulation .16 of this chapter.</text> </paragraph> <paragraph num="D."> <text>A facility operator may display an approved gaming guide at any location in its licensed facility.</text> </paragraph> <paragraph num="E."> <text>Each facility operator shall make the approved gaming guide available on its web site.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".23" heading="Table Game Payouts."> <paragraph num="A."> <text>A facility operator shall use a table game payout document meeting the requirements of this regulation to pay a single payout event that requires the filing of a IRS Form W-2G, Certain Gambling Winnings.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall prepare and timely file IRS Form W-2G, Certain Gambling Winnings, in accordance with IRS rules and regulations.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall pay a table game payout of:</text> <paragraph num="(1)"> <text>$50,000 or more by check; and</text> </paragraph> <paragraph num="(2)"> <text>Less than $50,000 by:</text> <paragraph num="(a)"> <text>Cash or check; or</text> </paragraph> <paragraph num="(b)"> <text>On the request of a player, any combination of cash, gaming ticket, check, or other methods of payment approved by the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under COMAR 36.03.10.05 procedures addressing the payment of a table game payout event that requires the filing of an IRS Form W-2G, Certain Gambling Winnings.</text> </paragraph> <paragraph num="E."> <text>A facility operator's internal controls shall include:</text> <paragraph num="(1)"> <text>The use of a two-part computer generated table game payout document initiated on the request of a dealer or above after verifying the winning combination of characters at the table game and the amount of the payout.</text> </paragraph> <paragraph num="(2)"> <text>A requirement that, if a single payout event that requires the filing of an IRS Form W-2G, Certain Gambling Winnings, is less than $50,000, a security department employee or floorperson or above sign the payout document after verifying the winning combination of characters at the table game and the amount of the payout.</text> </paragraph> <paragraph num="(3)"> <text>A requirement that, if a single payout event that requires the filing of an IRS Form W-2G, Certain Gambling Winnings, is $50,000 or more, a pit manager or higher level gaming operations department employee other than the preparer of the document sign the table game payout document after verifying the winning combination of characters at the table game and amount of the payout.</text> </paragraph> <paragraph num="(4)"> <text>A requirement that the following information be on a two-part computer generated table game payout document:</text> <paragraph num="(a)"> <text>Date and time;</text> </paragraph> <paragraph num="(b)"> <text>Identification number of the table game on which the payout was registered;</text> </paragraph> <paragraph num="(c)"> <text>Winning combination of characters constituting the payout or a code corresponding to the winning combination of characters constituting the payout;</text> </paragraph> <paragraph num="(d)"> <text>Amount to be paid;</text> </paragraph> <paragraph num="(e)"> <text>Signature or identification code of the preparer of the document;</text> </paragraph> <paragraph num="(f)"> <text>The signature or identification code of a verifying witness in accordance with this regulation; and</text> </paragraph> <paragraph num="(g)"> <text>The signature or identification code of the employee issuing the funds;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A requirement that the surveillance department:</text> <paragraph num="(a)"> <text>Be notified of a table game payout of $25,000 or more;</text> </paragraph> <paragraph num="(b)"> <text>Log all notices regarding a table game payout in the surveillance log required under COMAR 36.03.10.12; and</text> </paragraph> <paragraph num="(c)"> <text>Obtain and retain in accordance with COMAR 36.03.10.11 a photograph of the face of the player receiving the payout;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Details pertaining to:</text> <paragraph num="(a)"> <text>Payment of a payout at the table game;</text> </paragraph> <paragraph num="(b)"> <text>The use of an accounting drop box; and</text> </paragraph> <paragraph num="(c)"> <text>Audit procedures to be performed by the facility operator's accounting department at the conclusion of each gaming day;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Procedures addressing unclaimed table game payouts;</text> </paragraph> <paragraph num="(8)"> <text>Details which establish the ability of the facility operator's video lottery system to:</text> <paragraph num="(a)"> <text>Ensure that a two-part computer generated table game payout document is not susceptible to change or deletion from the system after preparation;</text> </paragraph> <paragraph num="(b)"> <text>Process and document system overrides or adjustments to table game payouts including:</text> <paragraph num="(i)"> <text>Overrides or adjustments where the payout requested does not match the payout amount; and</text> </paragraph> <paragraph num="(ii)"> <text>Identification of the level of employee having override authority; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Process voided table game payout documents; and</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Procedures utilized to issue a manual table game payout document which:</text> <paragraph num="(a)"> <text>Conform to the table game payout verification and signature requirements of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Involve use of a three-part serially pre-numbered manual table game payout document residing in a book, wiz machine, or functional equivalent;</text> </paragraph> <paragraph num="(c)"> <text>Require manual table game payout books or their functional equivalent to be maintained in a secured locked cabinet; and</text> </paragraph> <paragraph num="(d)"> <text>Require the key to the cabinet in §E(9)(c) of this regulation to be:</text> <paragraph num="(i)"> <text>Controlled by the security department or the table games department in a manual key box or an automated key tracking system; and</text> </paragraph> <paragraph num="(ii)"> <text>Limited to sign out by a floorperson or above.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".24" heading="Progressive Table Games."> <paragraph num="A."> <text>A table game offering a progressive jackpot may:</text> <paragraph num="(1)"> <text>Stand alone;</text> </paragraph> <paragraph num="(2)"> <text>Be linked to:</text> <paragraph num="(a)"> <text>Other table games in a facility; or</text> </paragraph> <paragraph num="(b)"> <text>Table games in two or more facilities in or outside the State through a wide area progressive system.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A manufacturer may not install in a facility, and a facility operator may not make available for play, table game equipment offering a progressive jackpot without written Commission approval of:</text> <paragraph num="(1)"> <text>A progressive proposal; and</text> </paragraph> <paragraph num="(2)"> <text>Internal controls submitted addressing the payment of a progressive jackpot.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A manufacturer may not modify the terms of a progressive jackpot, and a facility operator may not make available for play, a table game or table game equipment that offers a progressive jackpot that differs from its approved progressive proposal without the approval in writing of the Commission.</text> </paragraph> <paragraph num="D."> <text>A table game may offer multiple progressive jackpots.</text> </paragraph> <paragraph num="E."> <text>A progressive jackpot amount may be calculated and transmitted to a table game or table game device by:</text> <paragraph num="(1)"> <text>The operating system of a table game; or</text> </paragraph> <paragraph num="(2)"> <text>A separate progressive controller interfaced to a table game or table game equipment.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A progressive controller shall be:</text> <paragraph num="(1)"> <text>Located in a restricted area;</text> </paragraph> <paragraph num="(2)"> <text>Secured:</text> <paragraph num="(a)"> <text>In a dual key controlled compartment with:</text> <paragraph num="(i)"> <text>One key controlled by a manufacturer; and</text> </paragraph> <paragraph num="(ii)"> <text>One key controlled by the Commission; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>By alternative means approved by the Commission; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Capable of:</text> <paragraph num="(a)"> <text>Displaying an available progressive jackpot amount on a table game’s, or table game equipment’s:</text> <paragraph num="(i)"> <text>Progressive meter; or</text> </paragraph> <paragraph num="(ii)"> <text>Common progressive meter;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Transmitting to a table game for metering purposes the amount of a progressive jackpot;</text> </paragraph> <paragraph num="(c)"> <text>If linked to a common progressive meter in accordance with §H of this regulation, displaying the Commission asset number of the table game on which a progressive jackpot is won;</text> </paragraph> <paragraph num="(d)"> <text>If a progressive controller is servicing multiple table games, automatically resetting all table games connected to it to a pre-established reset amount; and</text> </paragraph> <paragraph num="(e)"> <text>If the progressive offers multiple jackpot levels, maintaining and displaying for each progressive level the:</text> <paragraph num="(i)"> <text>Number of progressive jackpots won;</text> </paragraph> <paragraph num="(ii)"> <text>Cumulative amount paid;</text> </paragraph> <paragraph num="(iii)"> <text>Maximum progressive payout;</text> </paragraph> <paragraph num="(iv)"> <text>Minimum amount or reset amount; and</text> </paragraph> <paragraph num="(v)"> <text>Rate of progression.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>A table game offering a progressive jackpot shall be equipped, for each progressive jackpot offered, with the following mechanical, electrical, or electronic meters:</text> <paragraph num="(1)"> <text>A progressive meter which:</text> <paragraph num="(a)"> <text>May increase in value based upon wagers;</text> </paragraph> <paragraph num="(b)"> <text>Advises the player of the amount which may be won if the table game characters that result in the award of a progressive jackpot appear as a result of activation of play; and</text> </paragraph> <paragraph num="(c)"> <text>Is visible from the table game through:</text> <paragraph num="(i)"> <text>A meter display housed in the video lottery terminal; or</text> </paragraph> <paragraph num="(ii)"> <text>A common progressive meter display unit;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A progressive payout meter;</text> </paragraph> <paragraph num="(3)"> <text>An attendant paid progressive jackpot meter; and</text> </paragraph> <paragraph num="(4)"> <text>A cumulative progressive payout meter that continuously and automatically records the total value of progressive jackpots paid whether paid:</text> <paragraph num="(a)"> <text>Directly at the table game; or</text> </paragraph> <paragraph num="(b)"> <text>Hand paid by a facility operator as a result of a progressive jackpot that exceeds the physical or configured capability of a table game or table game equipment.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>A table game linked to a common progressive meter for the purpose of offering the same progressive jackpot on two or more table games shall:</text> <paragraph num="(1)"> <text>Have the same probability of hitting the combination of characters that will award the progressive jackpot as every other table game linked to that common progressive meter; and</text> </paragraph> <paragraph num="(2)"> <text>Require each:</text> <paragraph num="(a)"> <text>Player to wager the same amount to receive a chance at winning the progressive jackpot; and</text> </paragraph> <paragraph num="(b)"> <text>Wager to increment the progressive meter by the same rate of progression on every table game connected to the common progressive meter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Notwithstanding the requirements of §H of this regulation, table games linked to a common progressive meter for the purpose of offering the same progressive jackpot on two or more table games may be of different denominations or require different wagers, or both, if:</text> <paragraph num="(1)"> <text>The probability of winning the progressive jackpot is directly proportional to the wager required to win a jackpot; and</text> </paragraph> <paragraph num="(2)"> <text>A notice indicating the proportional probability of hitting the progressive jackpot on the common progressive meter is conspicuously displayed in a manner specified by the Commission on each linked table game.</text> </paragraph> </paragraph> <paragraph num="J."> <text>A manufacturer may not:</text> <paragraph num="(1)"> <text>Set a limit for a progressive jackpot which exceeds the display capability of the progressive meter; and</text> </paragraph> <paragraph num="(2)"> <text>Adjust a progressive meter without the prior approval of the Commission unless the adjustment is:</text> <paragraph num="(a)"> <text>Required as a direct result of table game equipment or meter malfunction; and</text> </paragraph> <paragraph num="(b)"> <text>Reported by the manufacturer in a form and in a time frame specified by the Commission to the:</text> <paragraph num="(i)"> <text>Commission; and</text> </paragraph> <paragraph num="(ii)"> <text>Facility operator.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".25" heading="Table Game Statistical Data."> <paragraph num="A."> <text>A facility operator shall maintain complete and accurate records that identify for each table game and type of game by daily, cumulative month-to-date, and cumulative year-to-date basis:</text> <paragraph num="(1)"> <text>Statistical drop;</text> </paragraph> <paragraph num="(2)"> <text>Statistical win; and</text> </paragraph> <paragraph num="(3)"> <text>Statistical win-to-drop percentages.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall:</text> <paragraph num="(1)"> <text>Prepare and distribute statistical reports to gaming facility management on at least a monthly basis;</text> </paragraph> <paragraph num="(2)"> <text>Using a 95 percent confidence interval, investigate fluctuations outside of the standard deviation from:</text> <paragraph num="(a)"> <text>The facility operator’s table game win-to-drop percentage for the previous business year; or</text> </paragraph> <paragraph num="(b)"> <text>In the initial year of operations, the previous month; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Document the results of the investigation required under §B(2) of this regulation in writing and submit a copy of the written investigation results to the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".26" heading="Inspecting Cards."> <paragraph num="A."> <text>After receiving one or more decks of cards at the table, the dealer shall inspect the cards for any defects and a floorperson assigned to the table shall verify the inspection.</text> </paragraph> <paragraph num="B."> <text>After the cards are inspected, the dealer shall spread the cards out face up on the table, in horizontal fan shaped columns by deck according to suit and in sequence, for visual inspection by the first player to arrive at the table.</text> </paragraph> <paragraph num="C."> <text>After the first player arriving at the table has been afforded an opportunity to visually inspect the cards, the dealer shall:</text> <paragraph num="(1)"> <text>Turn the cards face down on the table;</text> </paragraph> <paragraph num="(2)"> <text>Mix the cards thoroughly by washing them; and</text> </paragraph> <paragraph num="(3)"> <text>Stack the cards.</text> </paragraph> </paragraph> <paragraph num="D."> <text>After the cards have been stacked, the dealer shall shuffle them in accordance with Regulation .27 of this chapter.</text> </paragraph> <paragraph num="E."> <text>If an automated card shuffling device is utilized and two decks of cards are received at the table, each deck of cards shall be spread for inspection, mixed, stacked, and shuffled in accordance with §§A—D of this regulation.</text> </paragraph> <paragraph num="F."> <text>If the decks of cards received at the table are preinspected and preshuffled, §§A—E of this regulation do not apply.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".27" heading="Shuffling and Cutting the Cards."> <paragraph num="A."> <text>Unless the cards were preshuffled, the dealer shall shuffle the cards so they are randomly intermixed, manually or with an automated card shuffling device:</text> <paragraph num="(1)"> <text>Immediately prior to commencement of play;</text> </paragraph> <paragraph num="(2)"> <text>After each round of play has been completed; or</text> </paragraph> <paragraph num="(3)"> <text>When directed by a floorperson or above.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator may use an automated card shuffling device which inserts the stack of cards directly into a dealing shoe after shuffling is complete.</text> </paragraph> <paragraph num="C."> <text>A deck shall be removed from the table if an automated card shuffling device:</text> <paragraph num="(1)"> <text>Is being used which counts the number of cards in the deck after the completion of each shuffle and indicates the number of cards present; and</text> </paragraph> <paragraph num="(2)"> <text>Reveals that an incorrect number of cards are present.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Upon completion of the shuffle, the dealer or automated shuffling device shall place the decks of cards in a single stack, and:</text> <paragraph num="(1)"> <text>If the cards were shuffled using an automated card shuffling device, deal the cards in accordance with Regulation .28, 29 or .30 of this chapter; or</text> </paragraph> <paragraph num="(2)"> <text>If the cards were shuffled manually or were preshuffled, cut the cards in accordance with the procedures in §E of this regulation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If a cut of the cards is required, the dealer shall perform the cut in accordance with the standard rules.</text> </paragraph> <paragraph num="F."> <text>After the cards have been cut and before any cards have been dealt, a floorperson or above may require the cards to be recut if the floorperson determines that the cut was performed improperly or in any way that might affect the integrity or fairness of the game.</text> </paragraph> <paragraph num="G."> <text>If there is no gaming activity at a table which is open for gaming, the dealer shall:</text> <paragraph num="(1)"> <text>Remove the cards from the dealing shoe and discard rack;</text> </paragraph> <paragraph num="(2)"> <text>Unless a player requests that the cards be spread face up on the table, spread out the cards on the table face down;</text> </paragraph> <paragraph num="(3)"> <text>After the first player arriving at the table is afforded an opportunity to visually inspect the cards, complete the procedures in this section and Regulation .26 of this chapter if there is no automated shuffling device in use; and</text> </paragraph> <paragraph num="(4)"> <text>If an automated shuffling device is in use, stack the cards and place them into the automated shuffling device to be shuffled, and:</text> <paragraph num="(a)"> <text>Remove the batch of cards already in the shuffler; and</text> </paragraph> <paragraph num="(b)"> <text>If the automated card shuffling device stores a single batch of shuffled cards inside the shuffler in a secure manner, at a player’s request remove the batch of cards from the shuffler and spread the cards for inspection and reshuffle them prior to dealing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>A facility operator may use a dealing shoe or other device that automatically reshuffles and counts the cards provided that the device is submitted to the Commission and approved prior to its use in the facility.</text> </paragraph> <paragraph num="I."> <text>If a facility operator is using a device described in §H of this regulation, §§E—G of this regulation do not apply.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".28" heading="Procedure for Dealing Cards from a Manual Dealing Shoe."> <paragraph num="A."> <text>Requirements. If a manual dealing shoe is used, it shall be located on the table in a location approved by the Commission, and the following requirements shall be met:</text> <paragraph num="(1)"> <text>After the procedures required under Regulation .27 of this chapter have been completed, the stacked deck of cards shall be placed in the dealing shoe by the dealer or by an automated card shuffling device.</text> </paragraph> <paragraph num="(2)"> <text>Prior to dealing any cards, the dealer shall announce “no more bets”.</text> </paragraph> <paragraph num="(3)"> <text>If the Progressive Payout Wager is being offered, the dealer shall use the progressive table game system to prevent the placement of any additional Progressive Payout Wagers.</text> </paragraph> <paragraph num="(4)"> <text>If a player has made a Progressive Payout Wager, the dealer shall:</text> <paragraph num="(a)"> <text>Collect the Progressive Payout wager in accordance with the standard rules;</text> </paragraph> <paragraph num="(b)"> <text>On the layout in front of the table inventory container, verify that the number of value chips wagered equals the number of Progressive Payout Wagers accepted by the progressive table game system; and</text> </paragraph> <paragraph num="(c)"> <text>Place the value chips into the table inventory container.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The dealer shall remove each card from the dealing shoe with the hand of the dealer that is closest to the dealing shoe and place the card on the appropriate area of the layout with the opposite hand.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The dealer shall deal the cards in accordance with the standard rules.</text> </paragraph> <paragraph num="C."> <text>After dealing cards in accordance with the standard rules, the dealer shall:</text> <paragraph num="(1)"> <text>Remove the stub from the manual dealing shoe; and</text> </paragraph> <paragraph num="(2)"> <text>Except as provided in §G of this regulation, place the stub in the discard rack without exposing the cards.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If an automated card shuffling device described in Regulation .27 of this chapter is not being used, the dealer shall count the stub at least once every 5 rounds of play to determine if the correct number of cards required by the standard rules are still present in the deck.</text> </paragraph> <paragraph num="E."> <text>Number of Cards. The dealer shall determine the number of cards in the stub as required under §D of this regulation by counting the cards face down on the layout.</text> <paragraph num="(1)"> <text>If the count of the stub indicates that the correct number of cards is in the deck, the dealer shall place the stub in the discard rack without exposing the cards.</text> </paragraph> <paragraph num="(2)"> <text>If the count of the stub indicates that the number of cards in the deck is not correct, the dealer shall determine if the cards were misdealt.</text> </paragraph> <paragraph num="(3)"> <text>If correct number of cards remain in the deck, but the cards were misdealt so that a player has more or less than the required number of cards or the dealer has more or less than the required number of cards, all hands are void and the dealer shall return all wagers to the players.</text> </paragraph> <paragraph num="(4)"> <text>If the cards were not misdealt as described in §E(3) of this regulation, all hands are void and the dealer shall return all wagers to the players and remove the entire deck of cards from the table.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".29" heading="Procedure for Dealing Cards from the Hand."> <paragraph num="A."> <text>Requirements. If the cards are dealt from a dealer’s hand, the following requirements shall be met:</text> <paragraph num="(1)"> <text>An automated shuffling device shall be used to shuffle the cards.</text> </paragraph> <paragraph num="(2)"> <text>After the procedures required under Regulation .27 of this chapter have been completed, the dealer shall place the stacked deck of cards in either of the dealer’s hand.</text> </paragraph> <paragraph num="(3)"> <text>After the dealer has chosen the hand in which to hold the cards, the dealer shall continue to use that hand while holding the cards during that round of play.</text> </paragraph> <paragraph num="(4)"> <text>The cards held by the dealer shall be kept over the table inventory container and in front of the dealer at all times.</text> </paragraph> <paragraph num="(5)"> <text>Before dealing any cards, the dealer shall:</text> <paragraph num="(a)"> <text>Announce “no more bets”; and</text> </paragraph> <paragraph num="(b)"> <text>If the Progressive Payout Wager is being offered, use the progressive table game system to prevent the placement of any additional Progressive Payout Wagers.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If any Progressive Payout Wagers have been made, the dealer shall:</text> <paragraph num="(a)"> <text>On the layout in front of the table inventory container, collect the wagers in accordance with the standard rules;</text> </paragraph> <paragraph num="(b)"> <text>Verify that the number of value chips wagered equals the number of Progressive Payout Wagers accepted by the progressive table game system; and</text> </paragraph> <paragraph num="(c)"> <text>Place the value chips into the table inventory container.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The dealer shall:</text> <paragraph num="(1)"> <text>Deal each card by holding the deck of cards in the chosen hand;</text> </paragraph> <paragraph num="(2)"> <text>Use the other hand to remove the top card of the deck to place it face down on the appropriate area of the layout;</text> </paragraph> <paragraph num="(3)"> <text>Deal the cards in accordance with the standard rules.</text> </paragraph> <paragraph num="(4)"> <text>Except as provided in §C of this regulation, after dealing cards in accordance with the standard rules, place the stub in the discard rack without exposing the cards.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If an automated card shuffling device described in Regulation .27 of this chapter is not being used, the dealer shall:</text> <paragraph num="(1)"> <text>Count the stub at least once every five rounds of play to determine if the correct number of cards is still present in the deck in accordance with the standard rules; and</text> </paragraph> <paragraph num="(2)"> <text>Determine the number of cards in the stub by counting the cards face down on the layout.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If the count of the stub indicates that the correct number of cards is in the deck, the dealer shall place the stub in the discard rack without exposing the cards.</text> </paragraph> <paragraph num="E."> <text>If the count of the stub indicates that the number of cards in the deck is not correct, the dealer shall determine if the cards were misdealt.</text> </paragraph> <paragraph num="F."> <text>If the correct number of cards remains in the deck, but the cards were misdealt so that a player has more or less than the required number of cards or the dealer has more or less than the required number of cards, all hands are void and the dealer shall return all wagers to the players.</text> </paragraph> <paragraph num="G."> <text>If the cards were not misdealt as described in §E of this regulation, all hands are void and the dealer shall return all wagers to the players and remove the entire deck of cards from the table.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".30" heading="Procedure for Dealing Cards from an Automated Dealing Shoe or Shuffler."> <paragraph num="A."> <text>Requirements. If cards are dealt from an automated dealing shoe, the following requirements shall be met:</text> <paragraph num="(1)"> <text>After the procedures required under Regulation .27 of this chapter have been completed, the dealer shall place the cards in an automated dealing shoe or shuffler.</text> </paragraph> <paragraph num="(2)"> <text>Prior to the shoe or shuffler dispensing any stacks of cards, the dealer shall:</text> <paragraph num="(a)"> <text>Announce “no more bets”; and</text> </paragraph> <paragraph num="(b)"> <text>If the Progressive Payout Wager is being offered, use the progressive table game system to prevent the placement of any additional Progressive Payout Wagers.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If any Progressive Payout Wagers have been made, the dealer shall:</text> <paragraph num="(a)"> <text>On the layout in front of the table inventory container, collect the wagers in accordance with the standard rules;</text> </paragraph> <paragraph num="(b)"> <text>Verify that the number of value chips wagered equals the number of Progressive Payout Wagers accepted by the progressive table game system; and</text> </paragraph> <paragraph num="(c)"> <text>Place the value chips into the table inventory container.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The dealer shall deal the cards in accordance with the standard rules.</text> </paragraph> <paragraph num="C."> <text>After the cards has been dispensed and delivered in accordance with the standard rules, the dealer shall:</text> <paragraph num="(1)"> <text>Remove the stub from the automated dealing shoe; and</text> </paragraph> <paragraph num="(2)"> <text>Except as provided in §D of this regulation, place the cards in the discard rack without exposing the cards.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If the count of the stub indicates that the correct number of cards required by the standard rules is in the deck, the dealer shall place the stub in the discard rack without exposing the cards.</text> </paragraph> <paragraph num="E."> <text>If the count of the stub indicates that the number of cards in the deck is not correct, the dealer shall determine if the cards were misdealt.</text> </paragraph> <paragraph num="F."> <text>If the correct number of cards remains in the deck, but the cards were misdealt so that a player has more or less than the required number of cards or the dealer has more or less than the required number of cards, all hands are void and the dealer shall return all wagers to the players.</text> </paragraph> <paragraph num="G."> <text>If the cards were not misdealt as described in §F of this regulation, all hands are void and the dealer shall return all wagers to the players and remove the entire deck of cards from the table.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".31" heading="Mixing Tiles."> <paragraph num="A."> <text>After receiving a set of tiles at the table, the dealer shall sort and inspect the tiles and the floorperson assigned to the table shall verify the inspection.</text> </paragraph> <paragraph num="B."> <text>Nothing in this section precludes a facility operator from cleaning the tiles prior to the inspection required in §C of this regulation.</text> </paragraph> <paragraph num="C."> <text>A dealer shall inspect the tiles at the gaming table by:</text> <paragraph num="(1)"> <text>Sorting a set of tiles into pairs;</text> </paragraph> <paragraph num="(2)"> <text>Placing each tile side by side to determine that all tiles are the same size and shading; and</text> </paragraph> <paragraph num="(3)"> <text>Examining the back and sides of each tile to ensure that it is not flawed, scratched, or marked, and if the dealer finds that a tile is unsuitable for use:</text> <paragraph num="(a)"> <text>A floorperson or above shall bring another set of tiles to the table from the reserve in the pit stand; and</text> </paragraph> <paragraph num="(b)"> <text>The unsuitable set of tiles shall be placed in a sealed envelope or container, identified by table number, date and time and signed by the dealer and floorperson or above.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Following the inspection and verification of the tiles described in §C of this regulation, the dealer shall:</text> <paragraph num="(1)"> <text>Turn the tiles face up;</text> </paragraph> <paragraph num="(2)"> <text>Place the tiles into 16 pairs;</text> </paragraph> <paragraph num="(3)"> <text>Arrange the tiles according to rank; and</text> </paragraph> <paragraph num="(4)"> <text>Leave the tiles in pairs for visual inspection by the first player to arrive at the table.</text> </paragraph> </paragraph> <paragraph num="E."> <text>After the first player arriving at the table is afforded an opportunity to visually inspect the tiles, the dealer shall:</text> <paragraph num="(1)"> <text>Turn the tiles face down on the table;</text> </paragraph> <paragraph num="(2)"> <text>Mix the tiles:</text> <paragraph num="(a)"> <text>With the heels of the hands;</text> </paragraph> <paragraph num="(b)"> <text>In a circular motion with one hand moving clockwise and the other hand moving counterclockwise; and</text> </paragraph> <paragraph num="(c)"> <text>With each hand completing at least eight circular motions to provide a random mixing; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Randomly pick up four tiles with each hand and place them side by side in stacks in front of the table inventory container, forming eight stacks of four tiles.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The entire set of tiles shall be remixed if, during the stacking process described in §E(2) of this regulation, a tile is turned over and exposed to the players.</text> </paragraph> <paragraph num="G."> <text>After each round of play has been completed, the dealer shall turn all of the tiles face down and mix the tiles in accordance with §D of this regulation.</text> </paragraph> <paragraph num="H."> <text>If there is no gaming activity at the table, the dealer shall turn the tiles face up and place them into 16 pairs according to rank.</text> </paragraph> <paragraph num="I."> <text>After a player arrives at the table, the dealer shall follow the procedures in §E of this regulation.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02 and 9-1A-04, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.24 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 471); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended effective September 6, 2021 (48:18 Md. R. 695)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03F amended effective February 16, 2015 (42:3 Md. R. 319)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03H amended effective October 23, 2017 (44:21 Md. R. 985)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective April 27, 2026 (53:8 Md. R. 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05C amended effective April 27, 2026 (53:8 Md. R. 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05P amended effective February 16, 2015 (42:3 Md. R. 319)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective January 7, 2016 (42:26 Md. R. 1597); September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11L amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12B amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15A, D amended as an emergency provision effective August 26, 2013 (40:19 Md. R. 1542); amended permanently effective November 11, 2013 (40:22 Md. R. 1879)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16B amended effective September 26, 2016 (43:19 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19 amended effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20 amended effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .21 amended effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .22A, B amended effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23C, E amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23E amended effective February 16, 2015 (42:3 Md. R. 319); October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .25 adopted effective August 17, 2015 (42:16 Md. R. 1056)</annotation> <annotation type="History" subtype="Administrative History">Regulation .26 adopted effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .27 adopted effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .28 adopted effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .29 adopted effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .30 adopted effective October 10, 2016 (43:20 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .31 adopted effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="04" heading="Blackjack Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.14 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 471); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 26, 2015 (42:21 Md. R. 1303)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); amended permanently effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective March 6, 2015 (42:7 Md. R. 566); amended permanently effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03E amended as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); amended permanently effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06G amended as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); amended permanently effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06G amended as an emergency provision effective March 6, 2015 (42:7 Md. R. 566); amended permanently effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06G amended effective October 26, 2015 (42:21 Md. R. 1303)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); amended permanently effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective October 26, 2015 (42:21 Md. R. 1303)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13D amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended as an emergency provision effective March 6, 2015 (42:7 Md. R. 566); amended permanently effective March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="05" heading="Craps Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 471); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D amended as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); amended permanently effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); amended permanently effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04D amended as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); amended permanently effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); amended permanently effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06D, E amended effective January 5, 2015 (41:26 Md. R. 1571)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 adopted as an emergency provision effective November 7, 2013 (40:24 Md. R. 2015); adopted permanently effective February 3, 2014 (41:2 Md. R. 93)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="06" heading="Poker Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.18 adopted as an emergency provision effective March 1, 2013 (40:7 Md. R. 608); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective January 7, 2016 (42:26 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B, G amended as an emergency provision effective June 15, 2015 (42:14 Md. R. 879); adopted permanently effective September 14, 2015 (42:18 Md. R. 1180)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19 adopted effective May 25, 2015 (42:10 Md. R. 686)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20 adopted effective May 25, 2015 (42:10 Md. R. 686)</annotation> <annotation type="History" subtype="Administrative History">Regulation .21 adopted as an emergency provision effective May 12, 2015 (42:12 Md. R. 759); adopted permanently effective August 17, 2015 (42:16 Md. R. 1056)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="07" heading="Roulette Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.16 adopted as an emergency provision effective March 1, 2013 (40:7 Md. R. 608); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="08" heading="Big Six Wheel Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective March 1, 2013 (40:7 Md. R. 608); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="09" heading="Four Card Poker Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.13 adopted as an emergency provision effective March 1, 2013 (40:7 Md. R. 608); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06E amended effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06F adopted effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07E amended effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11C, D amended effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended as an emergency provision effective August 26, 2013 (40:19 Md. R. 1542); amended permanently effective November 11, 2013 (40:22 Md. R. 1879)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12H adopted effective October 27, 2014 (41:21 Md. R. 1262)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="10" heading="Midi Baccarat Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.13 adopted as an emergency provision effective March 1, 2013 (40:7 Md. R. 608); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="11" heading="Mississippi Stud Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.13 adopted as an emergency provision effective March 1, 2013 (40:7 Md. R. 608); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06F adopted effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07D, F amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12D amended as an emergency provision effective August 26, 2013 (40:19 Md. R. 1542); amended permanently effective November 11, 2013 (40:22 Md. R. 1879)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12E adopted effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="12" heading="Pai Gow Poker Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.14 adopted as an emergency provision effective March 1, 2013 (40:7 Md. R. 608); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="13" heading="Texas Hold 'Em Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.13 adopted as an emergency provision effective March 1, 2013 (40:7 Md. R. 608); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="14" heading="Three Card Poker Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.13 adopted as an emergency provision effective March 1, 2013 (40:7 Md. R. 608); adopted permanently effective June 24, 2013 (40:12 Md. R. 1044)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12C, F amended as an emergency provision effective May 12, 2015 (42:12 Md. R. 760); amended permanently effective August 17, 2015 (42:16 Md. R. 1056)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12F amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="15" heading="Pai Gow Tiles Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.10 adopted as an emergency provision effective May 8, 2013 (40:11 Md. R. 974); adopted permanently effective August 5, 2013 (40:15 Md. R. 1233)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="16" heading="Ultimate Texas Hold 'Em Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.13 adopted as an emergency provision effective May 8, 2013 (40:11 Md. R. 974); adopted permanently effective August 5, 2013 (40:15 Md. R. 1233)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06F adopted effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07F amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12E, F amended effective October 13, 2014 (41:20 Md. R. 1115)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="17" heading="Mini Baccarat Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.13 adopted as an emergency provision effective May 8, 2013 (40:11 Md. R. 974); adopted permanently effective August 5, 2013 (40:15 Md. R. 1233)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="18" heading="Let It Ride Poker Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: March 30, 2015 (42:6 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> <chapter num="19" heading="Double Draw Poker Game" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: October 26, 2015 (42:21 Md. R. 1303)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective October 10, 2016 (43:20 Md. R. 1111)</annotation> </annotations> </chapter> </subtitle> <subtitle num="06" heading="Electronic Gaming Devices"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This subtitle applies to electronic gaming devices regulated by the Commission under Criminal Law Article, §§12-301—12-308, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>This subtitle applies to all electronic gaming devices, regardless of whether the device delivers a game through the Internet or offers Internet or other services.</text> </paragraph> <paragraph num="C."> <text>This subtitle does not apply to:</text> <paragraph num="(1)"> <text>Slot machines that are subject to regulation by the Comptroller under Criminal Law Article, §12-304, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Lottery devices used by the Agency or, under the authority of the Agency, by a licensed retailer under State Government Article, Title 9, Subtitle 1, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(3)"> <text>Video lottery terminals or tables games permitted and licensed under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(4)"> <text>Paper tip jar gaming where authorized; or</text> </paragraph> <paragraph num="(5)"> <text>Skills-based amusement devices that award prizes and are operated in compliance with COMAR 36.08.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms defined.</text> <paragraph num="(1)"> <text>“Antique electronic gaming device” means an electronic gaming device that is at least 25 years old.</text> </paragraph> <paragraph num="(2)"> <text>“Electronic gaming device” means an electronic machine, apparatus, or device that can be configured to:</text> <paragraph num="(a)"> <text>Operate by inserting, depositing, or placing with another person money, a token, or another object; and</text> </paragraph> <paragraph num="(b)"> <text>Through a preponderance of 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, award the user anything of value other than an award of free play or the right to receive anything of value other than an award of free play.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Counties."> <paragraph num="A."> <text>The Commission may:</text> <paragraph num="(1)"> <text>Review a county’s licensing and regulatory process for electronic gaming devices; and</text> </paragraph> <paragraph num="(2)"> <text>Determine upon review that:</text> <paragraph num="(a)"> <text>The county’s licensing and regulatory process for electronic gaming devices is equivalent to a license from the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>A county license for owning, operating, or manufacturing an electronic gaming device in the county is equivalent to a State license.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A decision of the Commission on the equivalency of a county’s licensing and regulatory process for electronic gaming devices under this regulation is final and not appealable.</text> </paragraph> <paragraph num="C."> <text>Baltimore City and Baltimore County. Operators of amusement games in Baltimore City or Baltimore County shall be required to be licensed by the jurisdiction in which they are located.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §§12-301 and 12-301.1, Annotated Code of Maryland;Section 6, Chapter 603, Acts of 2012</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 1, 2017 (43:23 Md. R. 1281)</annotation> </annotations> </chapter> <chapter num="02" heading="Lawful and Unlawful Electronic Gaming Devices"> <regulation prefix="Regulation" num=".01" heading="Lawful Electronic Gaming Devices."> <text>An electronic gaming device is lawful if it is:</text> <paragraph num="A."> <text>An antique electronic gaming device that is not operated for gambling purposes.</text> </paragraph> <paragraph num="B."> <text>An electronic gaming device that is in the possession of or being transported by a person to demonstrate or sell the electronic gaming device to a prospective customer who is allowed to purchase an electronic gaming device if the person:</text> <paragraph num="(1)"> <text>Operates with or under a distributorship contract with a manufacturer of an electronic gaming device;</text> </paragraph> <paragraph num="(2)"> <text>Is registered with the United States Department of Justice as a distributor of electronic gaming devices; and</text> </paragraph> <paragraph num="(3)"> <text>Has provided the Secretary of State Police with a copy of the person’s current federal registration.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An instant bingo machine operated in compliance with COMAR 36.07.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Unlawful Electronic Gaming Devices."> <text>An electronic gaming device is unlawful if it is not authorized by Regulation .01 of this chapter.</text> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §§12-301—12-308, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 1, 2017 (43:23 Md. R. 1281)</annotation> </annotations> </chapter> <chapter num="03" heading="Electronic Gaming Device Enforcement"> <regulation prefix="Regulation" num=".01" heading="Enforcement."> <paragraph num="A."> <text>A decision by the Commission shall be the final determination as to whether a gaming device being operated in the State is:</text> <paragraph num="(1)"> <text>A legal gaming device or device consistent with the provisions of the Criminal Law Article, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>Being operated in a lawful manner.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If a local law enforcement unit fails to promptly enforce a final determination made under §A of this regulation, the Commission shall refer the matter to the Department of State Police for enforcement of the law.</text> </paragraph> <paragraph num="C."> <text>If a local law enforcement agency in Baltimore City or Baltimore County 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.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §§12-113 and 12-301.1, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 1, 2017 (43:23 Md. R. 1281)</annotation> </annotations> </chapter> </subtitle> <subtitle num="07" heading="Instant Bingo Machines in Anne Arundel and Calvert Counties"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This subtitle applies to instant bingo machines in Anne Arundel and Calvert Counties.</text> </paragraph> <paragraph num="B."> <text>Instant bingo machines and facilities regulated under this subtitle are permitted to operate only if:</text> <paragraph num="(1)"> <text>The instant bingo machines were in operation:</text> <paragraph num="(a)"> <text>For a 1-year period ending December 31, 2007 by a qualified organization as defined in Criminal Law Article, §13-201, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>Under a commercial bingo license on December 31, 2007;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The facility does not operate more than the number of instant bingo machines it operated on February 28, 2008; and</text> </paragraph> <paragraph num="(3)"> <text>The instant bingo machines:</text> <paragraph num="(a)"> <text>Are operated in the same manner as those that were in operation at that individual instant bingo facility on July 1, 2007; or</text> </paragraph> <paragraph num="(b)"> <text>Have been approved by the Commission for use by any other entity authorized to operate an instant bingo machine.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>An instant bingo machine that does not meet the requirements of §B of this regulation is an illegal electronic gaming device or slot machine.</text> </paragraph> <paragraph num="D."> <text>Before allowing an instant bingo machine to be operated under this subtitle, the owner of the instant bingo machine shall be licensed by the Commission as a:</text> <paragraph num="(1)"> <text>Facility operator;</text> </paragraph> <paragraph num="(2)"> <text>Principal employee; or</text> </paragraph> <paragraph num="(3)"> <text>Manufacturer.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Bill validator” means that part of an instant bingo machine that is designed and configured to:</text> <paragraph num="(a)"> <text>Accept currency or other instruments authorized by the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Activate credits on an instant bingo machine.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Books and records” means any document pertaining to, prepared in or generated by a facility operator, without regard to the medium through which the record is generated or maintained, including all general ledger records, subsidiary records and ledgers, computer generated data, forms, documents, internal audit reports and work papers, correspondence and personnel records.</text> </paragraph> <paragraph num="(3)"> <text>“Cash” means currency and coin.</text> </paragraph> <paragraph num="(4)"> <text>“Cash storage box” means a secure tamper resistant container in a bill validator into which cash, gaming tickets, promotional play instruments or other instruments authorized by the Commission for activating credits on an instant bingo machine are deposited.</text> </paragraph> <paragraph num="(5)"> <text>Deal.</text> <paragraph num="(a)"> <text>“Deal” means a pre-determined quantity of instant bingo tickets, among which are a predetermined and fixed quantity of winning chances, each of which rewards a predetermined prize value.</text> </paragraph> <paragraph num="(b)"> <text>A “deal” may include a set or series of preprinted instant bingo tickets.</text> </paragraph> <paragraph num="(c)"> <text>A “deal” may include predetermined but unprinted tickets that are printed:</text> <paragraph num="(i)"> <text>Within the instant bingo machine as a user plays the game; and</text> </paragraph> <paragraph num="(ii)"> <text>In accordance with a finite, fixed, and predetermined sequence.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Facility” means a place where instant bingo machines are operated.</text> </paragraph> <paragraph num="(7)"> <text>“Facility license” means a license awarded by the Commission to operate an instant bingo facility.</text> </paragraph> <paragraph num="(8)"> <text>“Facility operator” means a person who operates or manages the operation of an instant bingo facility.</text> </paragraph> <paragraph num="(9)"> <text>“Gaming day” means a period of time determined by a facility operator not to exceed 24 hours marking the beginning and ending times of gaming activities for the purposes of accounting reports.</text> </paragraph> <paragraph num="(10)"> <text>“Gaming floor” means that part of a facility where instant bingo machines have been installed for use or play.</text> </paragraph> <paragraph num="(11)"> <text>“Instant bingo” means a game of chance played on an instant bingo machine.</text> </paragraph> <paragraph num="(12)"> <text>“Instant bingo machine” means an electronic machine, apparatus, or device that offers a game of instant bingo.</text> </paragraph> <paragraph num="(13)"> <text>“Instant bingo manager” means an individual who is employed by a facility operator and exercises control over the facility when a principal employee is not present.</text> </paragraph> <paragraph num="(14)"> <text>“Instant bingo ticket” means a paper or electronic ticket purchased from a deal.</text> </paragraph> <paragraph num="(15)"> <text>“Integrated system” means a computer system that communicates the results of a predetermined or randomly generated outcome for a game of bingo that is not the result of a contemporaneous live call of bingo on the premises where the integrated system is located.</text> </paragraph> <paragraph num="(16)"> <text>“Jackpot” means any prize to be paid to a player as a result of a specific combination of characters on an instant bingo machine that requires the filing of an IRS Form W-2G, Certain Gambling Winnings.</text> </paragraph> <paragraph num="(17)"> <text>“License” means a license issued to:</text> <paragraph num="(a)"> <text>An operator of a facility;</text> </paragraph> <paragraph num="(b)"> <text>A manufacturer;</text> </paragraph> <paragraph num="(c)"> <text>A principal employee;</text> </paragraph> <paragraph num="(d)"> <text>An instant bingo manager; or</text> </paragraph> <paragraph num="(e)"> <text>Any other person whom the Commission requires to be licensed.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>“Licensee” means the holder of a license under this subtitle.</text> </paragraph> <paragraph num="(19)"> <text>“Manufacturer” means a person that is engaged in the business of designing, building, constructing, assembling, manufacturing, or distributing instant bingo machines, associated equipment or software, instant bingo tickets, or the cabinet in which an instant bingo machine is housed.</text> </paragraph> <paragraph num="(20)"> <text>Modification.</text> <paragraph num="(a)"> <text>“Modification” means a change or alteration that affects the conduct of play or operation of equipment, system, or software of an instant bingo machine, including a change or alteration to a:</text> <paragraph num="(i)"> <text>Control program;</text> </paragraph> <paragraph num="(ii)"> <text>Graphics program; or</text> </paragraph> <paragraph num="(iii)"> <text>Payout percentage; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Modification” does not include the replacement of one approved component with an identical component.</text> </paragraph> </paragraph> <paragraph num="(21)"> <text>“Principal employee” means an individual who manages a licensee, or otherwise exercises management control over an instant bingo function of a licensee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Repair and Replacement."> <paragraph num="A."> <text>A facility license holder may repair and replace its instant bingo machines provided that documentation has been submitted to the Commission that evidences, to the satisfaction of the Commission, that:</text> <paragraph num="(1)"> <text>The machines:</text> <paragraph num="(a)"> <text>Operate in the same manner as any that were in operation by that licensee on July 1, 2017; or</text> </paragraph> <paragraph num="(b)"> <text>Have been approved by the Commission for use by any other entity authorized to operate an instant bingo machine; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensee does not operate more than the number of instant bingo machines the licensee had in operation on February 28, 2008.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Documentation submitted under §A of this regulation may consist of:</text> <paragraph num="(1)"> <text>Manufacturer invoices;</text> </paragraph> <paragraph num="(2)"> <text>Independent testing laboratory reports;</text> </paragraph> <paragraph num="(3)"> <text>Records from county licensing authorities; or</text> </paragraph> <paragraph num="(4)"> <text>Other records deemed acceptable by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A determination by the Commission on the sufficiency of documentation provided under §B of this regulation is final and not appealable.</text> </paragraph> <paragraph num="D."> <text>Instant bingo machines that are repaired or serve as a replacement shall comply with the technical standards as provided under COMAR 36.07.06.</text> </paragraph> <paragraph num="E."> <text>An instant bingo machine serving as a replacement under §A of this regulation may operate in the same manner as any instant bingo machine that was in operation by the licensee on February 28, 2008.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §§12-301.1 and 12-308; State Government Article, §9-110; Annotated Code of Maryland; Ch. 603, §6, Acts of 2012; Ch. 10, §23, Acts of 2018</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective August 13, 2018 (45:16 Md. R. 776)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective January 2, 2017 (43:26 Md. R. 1450)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective August 13, 2018 (45:16 Md. R. 776)</annotation> </annotations> </chapter> <chapter num="02" heading="Application and Licensing"> <regulation prefix="Regulation" num=".01" heading="Process."> <paragraph num="A."> <text>Upon filing an application for a license under this subtitle, the applicant shall pay a nonrefundable application fee established by the Commission.</text> </paragraph> <paragraph num="B."> <text>If a license application must be submitted to the Commission by a particular date, the application shall be submitted not later than 5 p.m. on the last day of this period, and an application submitted after the deadline need not be accepted nor considered by the Commission.</text> </paragraph> <paragraph num="C."> <text>Applications.</text> <paragraph num="(1)"> <text>Documents submitted to the Commission under this chapter shall consist of an original and the number of copies required by the Commission and shall be in the electronic format required by Commission.</text> </paragraph> <paragraph num="(2)"> <text>Documents and information submitted to the Commission in a license application shall be sworn before a notary public as to their truth and validity by the applicant or, if the applicant is not an individual, by the chief executive officer of the applicant.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Director Review.</text> <paragraph num="(1)"> <text>Upon receipt of an application by the Commission, the Director shall review the application to determine whether it contains all the information required under this chapter.</text> </paragraph> <paragraph num="(2)"> <text>If the Director determines that the required information has not been submitted, the Director shall notify the applicant in writing and state the nature of the deficiency.</text> </paragraph> <paragraph num="(3)"> <text>An applicant notified in accordance with §D(2) of this regulation may submit the documents necessary to complete the application not later than 15 days after issuance of the notification.</text> </paragraph> <paragraph num="(4)"> <text>When the Director determines that an application contains all of the required information, the Director shall certify in writing that the application has been received by the Commission.</text> </paragraph> <paragraph num="(5)"> <text>An applicant who is notified in accordance with §D(2) of this regulation and who fails to submit the requested documents in a timely manner need not be certified by the Director, and the Commission need not consider the application.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Changes in Application.</text> <paragraph num="(1)"> <text>If information submitted by an applicant as part of a license application changes or becomes inaccurate before the Commission acts on the application, the applicant shall immediately notify the Director in writing of the change or inaccuracy.</text> </paragraph> <paragraph num="(2)"> <text>After an application has been filed by an applicant, the applicant may not amend the application except:</text> <paragraph num="(a)"> <text>To address a deficiency in accordance with a notice sent under §D(2) of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>As required by the Commission or the Commission staff for clarification of information contained in the application; or</text> </paragraph> <paragraph num="(c)"> <text>To address a change in the circumstances surrounding the application that was outside the control of the applicant and that affects the ability of the applicant to comply with the law or the regulations of the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>To amend an application under §E(2)(c) of this regulation, an applicant shall file with the Director a written request to amend the application, stating:</text> <paragraph num="(a)"> <text>The change in the circumstances surrounding the application that necessitates the amendment;</text> </paragraph> <paragraph num="(b)"> <text>The nature of the amendment; and</text> </paragraph> <paragraph num="(c)"> <text>The reason why the amendment is necessary to bring the application into compliance with the law or the regulations of the Commission.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Commission shall grant or deny each request filed under §E(3) of this regulation.</text> </paragraph> <paragraph num="(5)"> <text>A request shall be granted if the applicant demonstrates to the satisfaction of the Commission that:</text> <paragraph num="(a)"> <text>The circumstances requiring the amendment were outside the control of the applicant;</text> </paragraph> <paragraph num="(b)"> <text>Before the change in the circumstances surrounding the application, the application complied with the pertinent provisions of the law or the regulations of the Commission; and</text> </paragraph> <paragraph num="(c)"> <text>The amendment is necessary to bring the application into compliance with the pertinent provisions of the law or the regulations of the Commission.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>An application for an instant bingo principal employee license may be withdrawn if the:</text> <paragraph num="(a)"> <text>Applicant submits a written request to the Commission to withdraw the application; and</text> </paragraph> <paragraph num="(b)"> <text>Written request is submitted before the Commission has denied the application.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Burden of Proof.</text> <paragraph num="(1)"> <text>The burden of proof shall be on the applicant to show that the applicant complies with the regulations of the Commission regarding eligibility and qualifications for the license.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may deny an instant bingo principal employee license to an applicant whose past or present conduct would bring the State into disrepute.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may deny a license to an applicant whose gaming license has been suspended or revoked in another jurisdiction.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Administrative Costs of Background Investigations.</text> <paragraph num="(1)"> <text>Promptly upon receipt of an invoice from the Commission, an applicant for a license shall reimburse the Commission for:</text> <paragraph num="(a)"> <text>The administrative costs associated with performing background investigations of the applicant and any individual required to provide information under Regulation .02 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Any payments made by the Commission to a person approved by the Commission to conduct the background investigations.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Failure to reimburse the Commission shall be grounds for disqualification of the applicant and denial of the license application.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may require an advance deposit from an applicant for the Commission’s estimate of the administrative costs of conducting the applicant’s background investigation.</text> </paragraph> <paragraph num="(4)"> <text>The Commission shall refund to an applicant any unused amount of the advance deposit.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Payment and Collection. Applicants shall pay the administrative costs and fees required under this regulation by:</text> <paragraph num="(1)"> <text>Wire transfer;</text> </paragraph> <paragraph num="(2)"> <text>Money order;</text> </paragraph> <paragraph num="(3)"> <text>Certified check made payable to the “State of Maryland”; or</text> </paragraph> <paragraph num="(4)"> <text>Any other manner designated by the Commission.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Continuing Obligations.</text> <paragraph num="(1)"> <text>Applicants who are awarded a license shall, during the term of their licensures, conform to all of the information contained in their license applications.</text> </paragraph> <paragraph num="(2)"> <text>Failure to conform to the information contained in a license application shall be grounds for the Commission invoking against the licensee the sanctions described in Regulation .17 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Personal and Background Information."> <paragraph num="A."> <text>Except as otherwise provided by this regulation, the application documents shall include the information under §B of this regulation, for an individual who is:</text> <paragraph num="(1)"> <text>The applicant;</text> </paragraph> <paragraph num="(2)"> <text>A director, officer, or key management individual employed by the applicant;</text> </paragraph> <paragraph num="(3)"> <text>A partner of the applicant; or</text> </paragraph> <paragraph num="(4)"> <text>An owner of an interest of 5 percent or more in the applicant.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An individual listed under §A of this regulation shall furnish the following:</text> <paragraph num="(1)"> <text>Full name and any previous names or aliases;</text> </paragraph> <paragraph num="(2)"> <text>Date of birth;</text> </paragraph> <paragraph num="(3)"> <text>Physical description;</text> </paragraph> <paragraph num="(4)"> <text>Home and business addresses and telephone numbers;</text> </paragraph> <paragraph num="(5)"> <text>Driver's license number and state of issuance;</text> </paragraph> <paragraph num="(6)"> <text>Social Security number; and</text> </paragraph> <paragraph num="(7)"> <text>Passport or identification photo.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the applicant is a corporation, the application documents shall state the:</text> <paragraph num="(1)"> <text>State in which the applicant is incorporated; and</text> </paragraph> <paragraph num="(2)"> <text>Name and address of the applicant's agent for service of process in Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If an applicant is a nonprofit corporation, only an individual who is a director or officer of the applicant shall provide the information required under §B of this regulation.</text> </paragraph> <paragraph num="E."> <text>The Commission may require an applicant to furnish the information listed in §B of this regulation with regard to the applicant's family and associates.</text> </paragraph> <paragraph num="F."> <text>Inadvertent, nonsubstantive errors that might be made in furnishing the information required by this regulation may not be used as a reason by the Commission for disqualifying the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Information for Background Investigation."> <text>An individual required to provide information under Regulation .02 of this chapter shall also submit a completed background form supplied by the Commission which includes a statement disclosing whether the individual has ever been:</text> <paragraph num="A."> <text>Arrested;</text> </paragraph> <paragraph num="B."> <text>Convicted of, pled nolo contendere to, or received probation before judgment for, a felony or misdemeanor, other than a misdemeanor traffic offense;</text> </paragraph> <paragraph num="C."> <text>Sanctioned by a government agency related to gaming;</text> </paragraph> <paragraph num="D."> <text>Found liable in connection with a civil action related to gaming;</text> </paragraph> <paragraph num="E."> <text>A debtor in a bankruptcy proceeding; or</text> </paragraph> <paragraph num="F."> <text>Denied a bond.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Consent for Investigation."> <paragraph num="A."> <text>An individual who is required to provide personal and background information under Regulation .02 of this chapter shall provide a statement that irrevocably gives consent to the Commission, the Maryland State Police, and persons authorized by the Commission to:</text> <paragraph num="(1)"> <text>Verify all information provided in the application documents; and</text> </paragraph> <paragraph num="(2)"> <text>Conduct a background investigation of the individual.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An applicant shall authorize the Commission to have access to any and all information the applicant has provided to any other jurisdiction while seeking a similar license in that other jurisdiction, as well as the information obtained by that other jurisdiction during the course of any investigation it may have conducted regarding the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Organizational Documents."> <paragraph num="A."> <text>If the applicant is a corporation, the application documents shall include a:</text> <paragraph num="(1)"> <text>Statement of when the corporation was organized;</text> </paragraph> <paragraph num="(2)"> <text>Copy of the articles of incorporation and bylaws of the corporation;</text> </paragraph> <paragraph num="(3)"> <text>Statement and documentation of whether the corporation has been reorganized or reincorporated during the 5-year period preceding the date on which the application documents are submitted to the Commission; and</text> </paragraph> <paragraph num="(4)"> <text>Statement and documentation of whether the corporation has filed restated articles of incorporation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the applicant is an unincorporated business association, the application documents shall include a:</text> <paragraph num="(1)"> <text>Copy of each organizational document of the applicant, including any partnership agreement; and</text> </paragraph> <paragraph num="(2)"> <text>Description of any oral agreements involving the organization of the applicant.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Owners."> <paragraph num="A."> <text>If the applicant is an unincorporated business association, the application documents shall identify:</text> <paragraph num="(1)"> <text>Each person who exercises voting rights in the applicant; and</text> </paragraph> <paragraph num="(2)"> <text>Each person who directly or indirectly owns 5 percent or more of the business association.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the applicant is authorized to issue capital stock, the applicant shall state, for each class of stock authorized, the:</text> <paragraph num="(1)"> <text>Total number of shares;</text> </paragraph> <paragraph num="(2)"> <text>Par value, if any;</text> </paragraph> <paragraph num="(3)"> <text>Voting rights;</text> </paragraph> <paragraph num="(4)"> <text>Current rate of dividend; and</text> </paragraph> <paragraph num="(5)"> <text>Number of shares outstanding and the market value of each share.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the applicant is a corporation, the application documents shall identify each person who:</text> <paragraph num="(1)"> <text>Exercises voting rights in the corporation; and</text> </paragraph> <paragraph num="(2)"> <text>Directly or indirectly owns 5 percent or more of the corporation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The application documents shall include a certified copy of each voting trust or voting agreement in which capital stock of the applicant is held and shall state the:</text> <paragraph num="(1)"> <text>Name and address of each stockholder participating in the trust or agreement;</text> </paragraph> <paragraph num="(2)"> <text>Class of stock involved; and</text> </paragraph> <paragraph num="(3)"> <text>Total number of shares held by the trust or agreement.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The application documents shall describe the terms of any proxy by which any capital stock may be voted and shall state the:</text> <paragraph num="(1)"> <text>Name and address of the person holding the proxy;</text> </paragraph> <paragraph num="(2)"> <text>Name and address of the stockholder who granted the proxy;</text> </paragraph> <paragraph num="(3)"> <text>Class of stock for which the proxy may vote; and</text> </paragraph> <paragraph num="(4)"> <text>Total number of shares voted by the proxy.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The application documents shall state any provisions, and the procedures by which these provisions may be modified, for the redemption, repurchase, retirement, conversion, or exchange of an ownership interest.</text> </paragraph> <paragraph num="G."> <text>The application documents shall state whether the applicant's stock may be traded through options and whether the corporation or a stockholder has executed an agreement or contract to convey any of the corporation's or the stockholder's stock at a future date.</text> </paragraph> <paragraph num="H."> <text>The application documents shall include a copy or a description of each agreement or contract disclosed under §G of this regulation.</text> </paragraph> <paragraph num="I."> <text>The application documents shall include a copy of each prospectus, pro forma, or other promotional material given to potential investors about the facility.</text> </paragraph> <paragraph num="J."> <text>The application documents shall provide full disclosure for any stock options that may exist or have been granted.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Directors, Officers, and Partners."> <paragraph num="A."> <text>If the applicant is not an individual, the application documents shall include a list of the individuals who are serving, or who are designated to serve, during the first year after the date the application documents are submitted to the Commission, either as a director, officer, partner, or an individual having key management responsibility.</text> </paragraph> <paragraph num="B."> <text>For each individual listed under §A of this regulation, the applicant shall provide:</text> <paragraph num="(1)"> <text>The individual's name and address;</text> </paragraph> <paragraph num="(2)"> <text>Each position or office of the applicant held by the individual;</text> </paragraph> <paragraph num="(3)"> <text>The individual's principal occupation during the 5-year period preceding the date on which the application documents are submitted to the Commission; and</text> </paragraph> <paragraph num="(4)"> <text>The nature and extent of any ownership interest that the individual has in the applicant.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Controlling Entity."> <text>The application documents shall:</text> <paragraph num="A."> <text>State whether another entity has a beneficial ownership in the applicant, as defined in Business Regulation Article, §11-301, Annotated Code of Maryland;</text> </paragraph> <paragraph num="B."> <text>Describe the:</text> <paragraph num="(1)"> <text>Nature of the beneficial ownership; and</text> </paragraph> <paragraph num="(2)"> <text>Extent of control exercised by the beneficial owner; and</text> </paragraph> </paragraph> <paragraph num="C."> <text>Include information and documents required under Regulations .04—.09 of this chapter as to each beneficial owner.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Outside Interests."> <paragraph num="A."> <text>The application documents shall state whether the applicant, a director, officer, or partner of the applicant, or an owner of 5 percent or more of an interest in the applicant:</text> <paragraph num="(1)"> <text>Has ever held an ownership interest in a licensee of the Commission; or</text> </paragraph> <paragraph num="(2)"> <text>Is currently engaged in the business of gaming in another state, and the nature and extent of that involvement.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The applicant shall describe the nature of participation stated under §A of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Bonds."> <paragraph num="A."> <text>The Commission may require an applicant or licensee to obtain a bond before the Commission issues or reissues a license.</text> </paragraph> <paragraph num="B."> <text>A bond shall be for the benefit of the State for the faithful performance of the requirements imposed by Maryland Criminal Law Article, §12-301.1, Annotated Code of Maryland, and any regulations issued under that section.</text> </paragraph> <paragraph num="C."> <text>The Commission may not issue or reissue a license unless it has received satisfactory proof of a bond.</text> </paragraph> <paragraph num="D."> <text>The Commission may apply a bond to the payment of an unpaid liability of the applicant or licensee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Instant Bingo Facility License."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>Unless a facility operator holds a valid facility license issued by the Commission, the facility operator may not operate an instant bingo machine.</text> </paragraph> <paragraph num="(2)"> <text>The following persons must meet the Commission's facility license requirements:</text> <paragraph num="(a)"> <text>A facility; and</text> </paragraph> <paragraph num="(b)"> <text>Each person that owns or controls a facility.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Qualification Requirements. The Commission may issue a facility license to a facility that has:</text> <paragraph num="(1)"> <text>Paid the application and license fee under §C of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>If required, obtained a bond required under Regulation .10A of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Furnished the Commission with the information and documentation required under this chapter; and</text> </paragraph> <paragraph num="(4)"> <text>Provided the Commission with sufficient information to establish that the facility has otherwise qualified for a facility license.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Application and License Fees.</text> <paragraph num="(1)"> <text>The application fee for a person is:</text> <paragraph num="(a)"> <text>$5,000 for a facility that will operate more than ten instant bingo machines; or</text> </paragraph> <paragraph num="(b)"> <text>$150 for a facility that will operate ten or fewer instant bingo machines.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The license fee for a person is:</text> <paragraph num="(a)"> <text>$2,500 for a facility that will operate more than ten instant bingo machines; or</text> </paragraph> <paragraph num="(b)"> <text>$150 for a facility that will operate ten or fewer instant bingo machines.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The annual license fee for each instant bingo machine in operation at a facility is $150.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The facility license authorizes the licensee to operate an instant bingo machine.</text> </paragraph> <paragraph num="E."> <text>The facility license issued by the Commission shall specify the:</text> <paragraph num="(1)"> <text>Date and time at which operations may commence; and</text> </paragraph> <paragraph num="(2)"> <text>Maximum number of instant bingo machines that may be operated by the facility operator under the facility license.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Commission may issue a facility license subject to conditions.</text> </paragraph> <paragraph num="G."> <text>The Commission may issue a facility license after determining that:</text> <paragraph num="(1)"> <text>The facility complies with the regulations of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>All instant bingo machines and associated equipment to be used in the facility have been tested and comply with any standards established by the Commission;</text> </paragraph> <paragraph num="(3)"> <text>The facility operator is prepared to implement the internal controls, surveillance and security procedures that are necessary to ensure that the operation of the instant bingo machines and facility is conducted safely and legally.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation of the Commission's regulations.</text> </paragraph> <paragraph num="I."> <text>Term; Renewal; License Renewal Fee.</text> <paragraph num="(1)"> <text>The term of a facility license is 15 years.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may renew the license if, before the term of the license expires, the licensee applies for renewal; and</text> <paragraph num="(a)"> <text>Continues to comply with all licensing requirements;</text> </paragraph> <paragraph num="(b)"> <text>Submits to a background investigation under Regulation .03 of this chapter; and</text> </paragraph> <paragraph num="(c)"> <text>Pays a license renewal fee in the amount of the license fee that is required under §C(2) of this regulation.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Manufacturer Licenses."> <paragraph num="A."> <text>Unless a manufacturer holds a valid manufacturer’s license issued by the Commission or Agency staff, the manufacturer may not offer any instant bingo machine, associated equipment or software, or goods or services that directly relate to the operation of instant bingo machines.</text> </paragraph> <paragraph num="B."> <text>The following persons must meet the Commission's manufacturer license requirements:</text> <paragraph num="(1)"> <text>A manufacturer; and</text> </paragraph> <paragraph num="(2)"> <text>Each person that owns, controls, or is a representative of a manufacturer.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A manufacturer of instant bingo machines shall meet the requirements of and be licensed as a manufacturer under this regulation or COMAR 36.03.02.13.</text> </paragraph> <paragraph num="D."> <text>Qualification Requirements. Agency staff may issue a manufacturer license to a person that has:</text> <paragraph num="(1)"> <text>Paid the application and license fee under §E of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>If required, obtained a bond required under Regulation .10A of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Furnished the Commission with the information and documentation required under this chapter; and</text> </paragraph> <paragraph num="(4)"> <text>Provided the Commission with sufficient information to establish that the facility has otherwise qualified for a facility license.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Application and License Fees.</text> <paragraph num="(1)"> <text>The application fee for a person is $10,000 for a manufacturer of an instant bingo machine.</text> </paragraph> <paragraph num="(2)"> <text>The license fee for a person is $5,000 for a manufacturer of an instant bingo machine.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The manufacturer license authorizes the licensee to manufacture or distribute an instant bingo device to a licensed facility.</text> </paragraph> <paragraph num="G."> <text>Agency staff may issue a manufacturer license subject to conditions.</text> </paragraph> <paragraph num="H."> <text>Term; Renewal; License Renewal Fee.</text> <paragraph num="(1)"> <text>The term of a manufacturer license is 5 years.</text> </paragraph> <paragraph num="(2)"> <text>Agency staff may renew the license if, before the term of the license expires, the licensee applies for renewal and</text> <paragraph num="(a)"> <text>Continues to comply with all licensing requirements;</text> </paragraph> <paragraph num="(b)"> <text>Submits to a background investigation under Regulation .03 of this chapter; and</text> </paragraph> <paragraph num="(c)"> <text>Pays a license renewal fee in the amount of the license fee that is required under §E(2) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>A manufacturer shall pay the Commission an annual license fee of $150 for each of its instant bingo machines in operation at a facility.</text> </paragraph> <paragraph num="J."> <text>A manufacturer who operates, maintains, supports, manufactures, or distributes an unlawful gaming device of any sort is subject to revocation of the instant bingo manufacturer license and any other sanction available under Regulation .17 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Principal Employee Licenses."> <paragraph num="A."> <text>Unless an individual holds a valid principal employee license issued by the Commission, the individual may not be employed by a licensee as a principal employee.</text> </paragraph> <paragraph num="B."> <text>Qualification Requirements. The Commission may issue a principal employee license to an individual who is employed by a licensee, and who has:</text> <paragraph num="(1)"> <text>Paid the application and license fee under §C of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>If required, obtained a bond required under Regulation .10 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Furnished the Commission with the personal and background information required under Regulation .02 this chapter; and</text> </paragraph> <paragraph num="(4)"> <text>Provided the Commission with sufficient information to establish that the individual is qualified for a principal employee license.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Application and License Fees.</text> <paragraph num="(1)"> <text>The application fee for a principal employee is:</text> <paragraph num="(a)"> <text>$1,250 for a facility that will operate more than ten instant bingo machines; or</text> </paragraph> <paragraph num="(b)"> <text>$150 for a facility that will operate ten or fewer instant bingo machines.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The license fee for a principal employee is:</text> <paragraph num="(a)"> <text>$375 for a facility that will operate more than ten instant bingo machines; or</text> </paragraph> <paragraph num="(b)"> <text>$150 for a facility that will operate ten or fewer instant bingo machines.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>The principal employee license authorizes the licensee to function as a principal employee for any licensee in the State.</text> </paragraph> <paragraph num="E."> <text>A principal employee may not play an instant bingo machine or other electronic gaming device at a facility:</text> <paragraph num="(1)"> <text>Where the individual is employed; or</text> </paragraph> <paragraph num="(2)"> <text>That is operated by the individual’s employer.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation under Maryland Criminal Law Article, §12-301.1, Annotated Code of Maryland or the Commission's regulations.</text> </paragraph> <paragraph num="G."> <text>Term; Renewal; License Renewal Fee.</text> <paragraph num="(1)"> <text>The term of a principal employee license is 5 years.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may renew the license if, before the term of the license expires, the licensee:</text> <paragraph num="(a)"> <text>Applies for renewal;</text> </paragraph> <paragraph num="(b)"> <text>Continues to comply with all licensing requirements;</text> </paragraph> <paragraph num="(c)"> <text>Maintains employment as a principal employee;</text> </paragraph> <paragraph num="(d)"> <text>Submits to a background investigation under Regulation .04 of this chapter; and</text> </paragraph> <paragraph num="(e)"> <text>Pays a license renewal fee of:</text> <paragraph num="(i)"> <text>$375 for a facility that will operate more than ten instant bingo machines; or</text> </paragraph> <paragraph num="(ii)"> <text>$150 for a facility that will operate ten or fewer instant bingo machines.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Sponsored License.</text> <paragraph num="(1)"> <text>The Commission may issue to a principal employee license applicant a sponsored license to permit the individual to legally work as a principal employee before the Commission’s licensing process is complete.</text> </paragraph> <paragraph num="(2)"> <text>A licensed facility operator or manufacturer may submit an application for a sponsored license on behalf of an individual who is seeking a principal employee license.</text> </paragraph> <paragraph num="(3)"> <text>An application for a sponsored license shall be in a format designated by the Commission and shall include:</text> <paragraph num="(a)"> <text>A completed application for a principal employee license;</text> </paragraph> <paragraph num="(b)"> <text>Payment of the fees required under §C of this regulation; and</text> </paragraph> <paragraph num="(c)"> <text>Documentation to verify that the sponsor has:</text> <paragraph num="(i)"> <text>Offered the individual at least conditional employment;</text> </paragraph> <paragraph num="(ii)"> <text>Obtained bond as required under Regulation .10 of this chapter; and</text> </paragraph> <paragraph num="(iii)"> <text>Performed, at a minimum, a Social Security database check, criminal check, employment verification, and a national database search.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Commission may grant a sponsored license after:</text> <paragraph num="(a)"> <text>Receiving all items required under §H(3) of this regulation; and</text> </paragraph> <paragraph num="(b)"> <text>Performing on the individual a:</text> <paragraph num="(i)"> <text>Criminal background investigation under Regulation .04; and</text> </paragraph> <paragraph num="(ii)"> <text>Credit check.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>A sponsored license:</text> <paragraph num="(a)"> <text>Is valid for one nonrenewable 1-year term;</text> </paragraph> <paragraph num="(b)"> <text>Is not transferable to employment with a different facility operator or manufacturer; and</text> </paragraph> <paragraph num="(c)"> <text>Automatically converts to a principal employee license when the Commission notifies the sponsor that the individual meets the license qualification requirements under §B of this regulation.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Instant Bingo Manager Licenses."> <paragraph num="A."> <text>Unless an individual holds a valid instant bingo manager license issued by the Commission, the individual may not be employed by a licensed facility operator, manufacturer, or contractor as an instant bingo manager.</text> </paragraph> <paragraph num="B."> <text>The Commission may issue an instant bingo manager license to an individual who has:</text> <paragraph num="(1)"> <text>Paid an application fee in the amount of $150;</text> </paragraph> <paragraph num="(2)"> <text>Paid a license fee of $150;</text> </paragraph> <paragraph num="(3)"> <text>Unless exempt, obtained a bond required under Regulation .10 of this chapter;</text> </paragraph> <paragraph num="(4)"> <text>Furnished the personal and background information required under Regulation .02 of this chapter;</text> </paragraph> <paragraph num="(5)"> <text>Provided the documentation and fees required under Regulation .03 of this chapter;</text> </paragraph> <paragraph num="(6)"> <text>Executed the consent for investigation required under Regulation .04 of this chapter;</text> </paragraph> <paragraph num="(7)"> <text>Received at least a conditional offer of employment from a licensed facility operator, manufacturer, or contractor; and</text> </paragraph> <paragraph num="(8)"> <text>Provided the Commission with sufficient information to establish that the individual has otherwise qualified for instant bingo manager license.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The instant bingo manager license authorizes the licensee to be employed as an instant bingo manager in the State.</text> </paragraph> <paragraph num="D."> <text>A instant bingo manager may not play an instant bingo machine or other electronic gaming device at a facility:</text> <paragraph num="(1)"> <text>Where the individual is employed; or</text> </paragraph> <paragraph num="(2)"> <text>That is operated by the individual's employer.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A licensee has a continuing duty to inform the Commission of an act or omission that the licensee knows or should know constitutes a violation of the Commission's regulations.</text> </paragraph> <paragraph num="F."> <text>Term; Renewal.</text> <paragraph num="(1)"> <text>The term of an instant bingo manager license is 5 years.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may renew the license if, before the term of the license expires, the licensee:</text> <paragraph num="(a)"> <text>Applies for renewal;</text> </paragraph> <paragraph num="(b)"> <text>Continues to comply with all licensing requirements;</text> </paragraph> <paragraph num="(c)"> <text>Maintains employment as an instant bingo manager;</text> </paragraph> <paragraph num="(d)"> <text>Submits to a background investigation under Regulation .02 of this chapter; and</text> </paragraph> <paragraph num="(e)"> <text>Pays a nonrefundable application fee of $150.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Sponsored License.</text> <paragraph num="(1)"> <text>The Commission may issue to an instant bingo manager license applicant a sponsored license to permit the individual to work legally as an instant bingo manager before the Commission’s licensing process is complete.</text> </paragraph> <paragraph num="(2)"> <text>A licensed facility operator, manufacturer, or contractor may submit an application for a sponsored license on behalf of an individual who is seeking an instant bingo manager license.</text> </paragraph> <paragraph num="(3)"> <text>An application for a sponsored license shall be in a format designated by the Commission and shall include:</text> <paragraph num="(a)"> <text>A completed application for an instant bingo manager license;</text> </paragraph> <paragraph num="(b)"> <text>Payment of the application fee required under §B(1) of this regulation;</text> </paragraph> <paragraph num="(c)"> <text>Documentation to verify that the sponsor has:</text> <paragraph num="(i)"> <text>Offered the individual at least conditional employment;</text> </paragraph> <paragraph num="(ii)"> <text>Obtained bond as required under Regulation .10 of this chapter; and</text> </paragraph> <paragraph num="(iii)"> <text>Performed, at a minimum, a Social Security database check, criminal check, employment verification, and national database search.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Commission may grant a sponsored license after:</text> <paragraph num="(a)"> <text>Receiving all items required under §G(3) of this regulation; and</text> </paragraph> <paragraph num="(b)"> <text>Performing on the individual a:</text> <paragraph num="(i)"> <text>Criminal background investigation under Regulation .02 of this chapter; and</text> </paragraph> <paragraph num="(ii)"> <text>Credit check.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>A sponsored license:</text> <paragraph num="(a)"> <text>Is valid for one nonrenewable 1-year term;</text> </paragraph> <paragraph num="(b)"> <text>Is not transferable to employment with a different facility operator, manufacturer, or contractor; and</text> </paragraph> <paragraph num="(c)"> <text>Automatically converts to an instant bingo manager license when the Commission notifies the sponsor that the individual meets the license qualification requirements under this regulation.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Identification Cards for Licensees."> <paragraph num="A."> <text>The Commission shall issue an identification card to an individual who is employed by a licensed facility operator or manufacturer and licensed as a principal employee or instant bingo manager.</text> </paragraph> <paragraph num="B."> <text>Identification Card.</text> <paragraph num="(1)"> <text>An identification card shall display a photograph of the licensee, and at a minimum, indicate:</text> <paragraph num="(a)"> <text>The individual's name;</text> </paragraph> <paragraph num="(b)"> <text>By color, pattern, or symbol, the licensing category; and</text> </paragraph> <paragraph num="(c)"> <text>The license expiration date.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An identification card is evidence that the licensee is authorized to be employed in the designated licensing category by a licensed facility operator or manufacturer.</text> </paragraph> <paragraph num="(3)"> <text>An identification card is the property of the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Licensee Obligations. A licensee:</text> <paragraph num="(1)"> <text>Shall wear or otherwise prominently display his or her identification card at all times while working;</text> </paragraph> <paragraph num="(2)"> <text>Shall immediately report a loss or theft of the card to the licensee’s employer and the Commission;</text> </paragraph> <paragraph num="(3)"> <text>May not allow another individual to possess the card; and</text> </paragraph> <paragraph num="(4)"> <text>Shall comply with an order of the Commission to surrender the card.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Replacement Identification Card.</text> <paragraph num="(1)"> <text>If the identification card of a licensee who is employed by a licensed facility operator, manufacturer, or contractor is lost or stolen:</text> <paragraph num="(a)"> <text>The licensee shall immediately:</text> <paragraph num="(i)"> <text>Report the loss or theft to his or her employer; and</text> </paragraph> <paragraph num="(ii)"> <text>In a form or format designated by the Commission, submit to the Commission a written description of the circumstances of the loss or theft; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>After verifying the licensee’s identity, the Commission may issue a new identification card to the licensee;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the identification card of a licensee who is employed by a licensed facility operator or manufacturer is temporarily unavailable to the licensee:</text> <paragraph num="(a)"> <text>The licensee shall immediately:</text> <paragraph num="(i)"> <text>Report the temporary unavailability of the card to his or her employer; and</text> </paragraph> <paragraph num="(ii)"> <text>In a form or format designated by the Commission, submit to the Commission a written description as to why the card is temporarily unavailable;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>After verifying the licensee’s identity, the Commission may issue a temporary identification card to the licensee that is valid for 30 days; and</text> </paragraph> <paragraph num="(c)"> <text>The licensee shall surrender the temporary identification card to the Commission by the end of the 30th day on which he or she received the card.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the Commission issues a replacement or temporary identification card to a licensee, the licensee’s employer shall pay the Commission:</text> <paragraph num="(a)"> <text>$40 for the cost of a replacement identification card; and</text> </paragraph> <paragraph num="(b)"> <text>$20 for the cost of a temporary identification card.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Surrender and Reissuance of Identification Card.</text> <paragraph num="(1)"> <text>The licensed facility operator or manufacturer that employs, or employed, a licensee shall ensure that the licensee surrenders his or her identification card to the Commission if the:</text> <paragraph num="(a)"> <text>Commission suspends or revokes the license;</text> </paragraph> <paragraph num="(b)"> <text>License is not renewed;</text> </paragraph> <paragraph num="(c)"> <text>Licensee separates from employment with a licensed facility operator or manufacturer; or</text> </paragraph> <paragraph num="(d)"> <text>Licensee is otherwise ordered to surrender the identification card.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If an identification card is not surrendered as required under §D(2)(c) or §E(1) of this regulation, the licensed facility operator or manufacturer that employs, or employed, the licensee may be subject to a sanction under COMAR 36.07.17.</text> </paragraph> <paragraph num="(3)"> <text>If an identification card was surrendered when the licensee separated employment from a licensed facility operator or manufacturer, the Commission may issue the licensee another identification card if the:</text> <paragraph num="(a)"> <text>Licensee obtains employment with a licensed facility operator or manufacturer;</text> </paragraph> <paragraph num="(b)"> <text>Term of the license has not expired; and</text> </paragraph> <paragraph num="(c)"> <text>Commission verifies:</text> <paragraph num="(i)"> <text>The licensee’s identity;</text> </paragraph> <paragraph num="(ii)"> <text>That the license was in good standing when the card was surrendered; and</text> </paragraph> <paragraph num="(iii)"> <text>That the license has not expired and remains in good standing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>There is no fee for an identification card issued under §E(3) of this regulation.</text> </paragraph> <paragraph num="(5)"> <text>Nothing in this regulation shall preclude the Commission from imposing on the licensee a sanction that is based on the circumstances related to a licensee’s separation from employment with a licensed facility operator or manufacturer.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Corrective Action."> <paragraph num="A."> <text>Deficiency.</text> <paragraph num="(1)"> <text>Assess the seriousness of the deficiency;</text> </paragraph> <paragraph num="(2)"> <text>Require the licensee to develop a corrective action plan;</text> </paragraph> <paragraph num="(3)"> <text>Determine whether it is necessary during the pendency of the corrective action process to emergently suspend the license;</text> </paragraph> <paragraph num="(4)"> <text>Evaluate and, if acceptable to the Agency, approve the corrective action plan;</text> </paragraph> <paragraph num="(5)"> <text>Determine appropriate timelines for the completion of corrective action;</text> </paragraph> <paragraph num="(6)"> <text>Conduct periodic monitoring of a licensee for which the Agency required a corrective action plan to assess the licensee’s progress toward remedying the deficiencies; and</text> </paragraph> <paragraph num="(7)"> <text>Recommend that the Commission impose a sanction under Regulation .17 of this chapter if a deficiency is not remedied through implementation of corrective action.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Deficiency Notice.</text> <paragraph num="(1)"> <text>A description of the violation;</text> </paragraph> <paragraph num="(2)"> <text>A description of the possible sanctions; and</text> </paragraph> <paragraph num="(3)"> <text>The requirement for the licensee to submit a corrective action plan to the Director within a time frame established by the Director.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Corrective Action Plan.</text> <paragraph num="(1)"> <text>Within 10 days of receipt of a deficiency notice under §B of this regulation, the licensee shall submit a corrective action plan to the Director for the Director’s approval.</text> </paragraph> <paragraph num="(2)"> <text>The Director shall review the corrective action plan and inform the licensee whether the corrective action plan is acceptable.</text> </paragraph> <paragraph num="(3)"> <text>If the licensee fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the Director may:</text> <paragraph num="(a)"> <text>Provide the licensee with additional time within which to submit a revised corrective action plan; or</text> </paragraph> <paragraph num="(b)"> <text>Impose a sanction on the licensee under Regulation .17 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the Director provided a licensee notice under §B(3) of this regulation and received no timely written response, the Commission may adopt as final the Director’s decision to impose a sanction under Regulation .17 of this chapter.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Corrective Action Outcomes.</text> <paragraph num="(1)"> <text>If at any time during the corrective action period the Director determines that the licensee has failed to fulfill a requirement of the corrective action plan or has made insufficient progress toward remedying a deficiency, the Director may:</text> <paragraph num="(a)"> <text>For good cause, extend the time for completion of a corrective action plan; or</text> </paragraph> <paragraph num="(b)"> <text>Emergently suspend the licensee’s license.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If at the end of the corrective action period the licensee has failed to adequately remedy a deficiency, the Director may impose a sanction under Regulation .17 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Sanctions."> <paragraph num="A."> <text>The Director may impose sanctions on a licensee for:</text> <paragraph num="(1)"> <text>Violating or failing to fulfill the licensee’s responsibilities under this subtitle or a condition of a license;</text> </paragraph> <paragraph num="(2)"> <text>Violating:</text> <paragraph num="(a)"> <text>A provision of the law;</text> </paragraph> <paragraph num="(b)"> <text>A regulation adopted under the law; or</text> </paragraph> <paragraph num="(c)"> <text>An order or directive of the Commission;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Providing the Commission with false or misleading information;</text> </paragraph> <paragraph num="(4)"> <text>Failing to cooperate with the Commission;</text> </paragraph> <paragraph num="(5)"> <text>Failing to remit, or failing to make timely remittance of, funds owed to the Commission;</text> </paragraph> <paragraph num="(6)"> <text>Failing to prepare, submit, or implement an adequate corrective plan under Regulation .16 C of this chapter;</text> </paragraph> <paragraph num="(7)"> <text>Incurring criminal charges related to the conduct of illegal gaming;</text> </paragraph> <paragraph num="(8)"> <text>Possessing materials or equipment indicating involvement by the licensee or the licensee’s employees in the conduct of illegal gaming; or</text> </paragraph> <paragraph num="(9)"> <text>Other activities or action deemed by Director to require the imposition of a sanction.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Types of Sanctions. Sanctions may include emergency suspension, suspension, revocation, and placement of conditions on the license.</text> </paragraph> <paragraph num="C."> <text>Suspension, Revocation, and Conditions.</text> <paragraph num="(1)"> <text>Except as set forth in §D of this regulation, the Director shall give the licensee notice of the intended suspension, revocation, or imposition of a condition at least 15 days before the imposition of the intended sanction.</text> </paragraph> <paragraph num="(2)"> <text>A licensee may appeal the Director’s imposition of a sanction before the date the sanction is imposed by submitting a request for a hearing before the Commission.</text> </paragraph> <paragraph num="(3)"> <text>The final action on a sanction is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Emergency Suspension.</text> <paragraph num="(1)"> <text>Notwithstanding any other requirement of this chapter, if the Director determines that immediate action is necessary to protect against an imminent, serious threat by a licensee to the security, financial stability, reputation, or integrity of the instant bingo program, the Director may suspend a license without prior notice.</text> </paragraph> <paragraph num="(2)"> <text>If the Director emergently suspends a license, the Director shall provide the licensee with written notice that includes:</text> <paragraph num="(a)"> <text>A statement of the authority upon which the suspension is based;</text> </paragraph> <paragraph num="(b)"> <text>The nature of the violation;</text> </paragraph> <paragraph num="(c)"> <text>The duration of suspension;</text> </paragraph> <paragraph num="(d)"> <text>Information about the licensee’s obligation to submit to the Agency a corrective plan; and</text> </paragraph> <paragraph num="(e)"> <text>A statement of the licensee’s right to request a Commission hearing.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If after a license is emergently suspended, the licensee does not submit a timely written request for a Commission hearing, the Director may move to revoke the license by giving the licensee notice under §C(1) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Recommended Actions and Hearings."> <paragraph num="A."> <text>Recommended Sanctions.</text> <paragraph num="(1)"> <text>The Director or the Director’s designee may recommend a sanction concerning a license.</text> </paragraph> <paragraph num="(2)"> <text>If the Director or the Director’s designee recommends a sanction, including revocation, the Director or Director’s designee shall promptly provide the licensee with written notice of the:</text> <paragraph num="(a)"> <text>Recommendation;</text> </paragraph> <paragraph num="(b)"> <text>Basis for the recommendation; and</text> </paragraph> <paragraph num="(c)"> <text>Applicant’s right to request a hearing with the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A licensee may submit to the Commission a request for a hearing:</text> <paragraph num="(a)"> <text>Within 15 days of the date of the recommendation of the Director or the Director’s designee; and</text> </paragraph> <paragraph num="(b)"> <text>Identifying the legal and factual bases for disagreeing with the recommendation of the Director or the Director’s designee.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If a licensee fails to timely submit a hearing request under §A(3) of this regulation the Commission may adopt as final the recommendation of the Director or the Director’s designee.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Denial of a License.</text> <paragraph num="(1)"> <text>After reviewing an application submitted under Regulation .02 of this chapter, the Director or the Director’s designee may recommend that the Commission deny a license.</text> </paragraph> <paragraph num="(2)"> <text>If the Director or Director’s designee recommends that the Commission deny a license, the Director, or the Director’s designee, shall promptly provide the applicant with written notice of the:</text> <paragraph num="(a)"> <text>Recommendation for denial;</text> </paragraph> <paragraph num="(b)"> <text>Basis for the recommendation; and</text> </paragraph> <paragraph num="(c)"> <text>Applicant's right to request a reconsideration meeting with the Director or the Director's designee.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An applicant may submit to the Commission a written request for a reconsideration meeting within 15 days of the date of the notice described in §B(1) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>If an applicant fails to timely submit a request under §B(2) of this regulation, the Commission may adopt as final the recommendation of the Director or the Director's designee.</text> </paragraph> <paragraph num="(5)"> <text>During a reconsideration meeting, an applicant may:</text> <paragraph num="(a)"> <text>Be represented by counsel; and</text> </paragraph> <paragraph num="(b)"> <text>Present evidence as to why the license should be granted;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If after the reconsideration meeting the applicant is dissatisfied with the recommendation of the Director or the Director's designee, the applicant may submit to the Commission, in writing:</text> <paragraph num="(a)"> <text>A request for hearing before the Commission on the recommendation of the Director or the Director's designee; and</text> </paragraph> <paragraph num="(b)"> <text>The applicant's legal and factual bases for disagreeing with the recommendation of the Director or the Director's designee.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>An applicant may submit a hearing request to the Commission within 15 days of the date of the recommendation of the Director or the Director's designee after the reconsideration meeting.</text> </paragraph> <paragraph num="(8)"> <text>If an applicant fails to timely submit a hearing request under §B(5), the Commission may adopt as final the recommendation of the Director or the Director's designee.</text> </paragraph> <paragraph num="(9)"> <text>A hearing request that complies with §B(5) and (6) of this regulation shall be the subject of a hearing before the Commission, after which the Commission shall:</text> <paragraph num="(a)"> <text>Determine that the applicant is qualified and grant the license; or</text> </paragraph> <paragraph num="(b)"> <text>Determine that the applicant is not qualified or disqualified; and</text> <paragraph num="(i)"> <text>Deny the license; and</text> </paragraph> <paragraph num="(ii)"> <text>Prepare an order denying the license with a statement of the reasons and specific findings of fact.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(10)"> <text>The Commission's decision is final.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A Commission hearing shall be conducted in the manner specified in:</text> <paragraph num="(1)"> <text>State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>COMAR 36.01.02.06.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-110; Criminal Law Article, §§12-301.1 and 12-308; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.18 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="03" heading="Instant Bingo Facility Standards"> <regulation prefix="Regulation" num=".01" heading="Hours of Operation."> <text>A facility operator shall submit its proposed hours of operation to the Commission for written approval.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Facility Design Standards."> <text>A facility operator shall, at its own expense, construct its facility in accordance with specifications established by the Commission, including:</text> <paragraph num="A."> <text>Computer space for the instant bingo validation and accounting server that is:</text> <paragraph num="(1)"> <text>Equipped with heating, ventilation, and air conditioning;</text> </paragraph> <paragraph num="(2)"> <text>Supplied with power including an uninterruptible back-up power supply;</text> </paragraph> <paragraph num="(3)"> <text>Secured with a key or alternative locking mechanism; and</text> </paragraph> <paragraph num="(4)"> <text>Covered by a surveillance system enabled to record all entry and exit to the computer space and activity in the area;</text> </paragraph> </paragraph> <paragraph num="B."> <text>A surveillance system approved in writing by the Commission that is:</text> <paragraph num="(1)"> <text>Configured to provide surveillance of all instant bingo machines and related activities within the facility in accordance with standards established by the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>Enabled with a digital video recording format in accordance with standards established by the Commission;</text> </paragraph> </paragraph> <paragraph num="C."> <text>An alarm system connected to all emergency exits from the gaming floor that produces a distinguishable warning sound discernible in the vicinity of an exit when the emergency door is opened;</text> </paragraph> <paragraph num="D."> <text>Any signage required by the Commission;</text> </paragraph> <paragraph num="E."> <text>Communication systems capable of effecting timely communication between the facility, law enforcement exercising proper jurisdiction over the facility, emergency first responders; and</text> </paragraph> <paragraph num="F."> <text>Any other equipment or design feature required by the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Gaming Floor Plan."> <paragraph num="A."> <text>A facility operator shall submit a floor plan depicting its gaming floor and all restricted areas to the Commission for review and written approval.</text> </paragraph> <paragraph num="B."> <text>A facility operator may not commence operations until its gaming floor plan is approved in writing by the Commission.</text> </paragraph> <paragraph num="C."> <text>A gaming floor plan that a facility operator submits to the Commission shall depict:</text> <paragraph num="(1)"> <text>The gaming floor with a notation as to:</text> <paragraph num="(a)"> <text>Total square feet;</text> </paragraph> <paragraph num="(b)"> <text>Total square feet utilized for the placement of instant bingo machines;</text> </paragraph> <paragraph num="(c)"> <text>The location of each instant bingo machine;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>All restricted areas within the facility with a notation as to:</text> <paragraph num="(a)"> <text>Locations for redemption of instant bingo tickets;</text> </paragraph> <paragraph num="(b)"> <text>Location for the counting of currency from instant bingo machines;</text> </paragraph> <paragraph num="(c)"> <text>Locations for the storage of currency;</text> </paragraph> <paragraph num="(d)"> <text>Computer space allocated to the instant bingo validation and accounting system;</text> </paragraph> <paragraph num="(e)"> <text>An area designated for the storage or repair of instant bingo machines;</text> </paragraph> <paragraph num="(f)"> <text>Surveillance monitoring room; and</text> </paragraph> <paragraph num="(g)"> <text>Locations for the storage of instant bingo tickets.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Each surveillance camera; and</text> </paragraph> <paragraph num="(4)"> <text>Each automated teller machine.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator may not implement any change to its approved gaming floor plan without the prior written approval of the Commission.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-110; Criminal Law Article, §§12-301.1 and 12-308; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019)</annotation> </annotations> </chapter> <chapter num="04" heading="Instant Bingo Minimum Internal Control Standards"> <regulation prefix="Regulation" num=".01" heading="Accounting Records."> <paragraph num="A."> <text>A facility operator shall maintain complete, accurate, and legible books and records of all transactions pertaining to the revenues and expenses of a facility.</text> </paragraph> <paragraph num="B."> <text>General ledger books and records shall be maintained on a double entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles in the United States.</text> </paragraph> <paragraph num="C."> <text>Subsidiary ledgers books and records supporting general ledger records shall be prepared in accordance with generally accepted accounting principles in the United States.</text> </paragraph> <paragraph num="D."> <text>Subsidiary ledgers and books and records shall include, at a minimum, documents that:</text> <paragraph num="(1)"> <text>Support the financial statements and all transactions impacting the financial statements including contracts or agreements with manufacturers, contractors, and management companies;</text> </paragraph> <paragraph num="(2)"> <text>Identify for instant bingo machine on a week-to-date, month-to-date and year-to-date basis:</text> <paragraph num="(a)"> <text>Coin in;</text> </paragraph> <paragraph num="(b)"> <text>Coin out;</text> </paragraph> <paragraph num="(c)"> <text>Win amount;</text> </paragraph> <paragraph num="(d)"> <text>Win percentage; and</text> </paragraph> <paragraph num="(e)"> <text>Payout percentage;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Identify all costs and expenses associated with the operation of a facility;</text> </paragraph> <paragraph num="(4)"> <text>Are prepared in compliance with the internal controls approved by the Commission under this chapter; and</text> </paragraph> <paragraph num="(5)"> <text>Relate to:</text> <paragraph num="(a)"> <text>Loans and other amounts payable by a facility operator; and</text> </paragraph> <paragraph num="(b)"> <text>Investments in property and equipment for the benefit of a facility.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Forms and Documents."> <paragraph num="A."> <text>A facility operator shall provide a list and written description of forms or documents used in its instant bingo operations.</text> </paragraph> <paragraph num="B."> <text>A form or document, including stored data, shall have:</text> <paragraph num="(1)"> <text>All information placed on the form or document recorded in ink or other permanent form; and</text> </paragraph> <paragraph num="(2)"> <text>The title of the form or document and the name of the facility imprinted or preprinted on it.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Content of Internal Controls."> <paragraph num="A."> <text>A facility operator shall develop a written description of its administrative and accounting procedures including the system of internal controls over instant bingo operations.</text> </paragraph> <paragraph num="B."> <text>A facility operator’s internal controls are subject to review and approval under this regulation.</text> </paragraph> <paragraph num="C."> <text>Internal controls shall, at a minimum, include:</text> <paragraph num="(1)"> <text>Administrative controls and record keeping that document the authorization of transactions;</text> </paragraph> <paragraph num="(2)"> <text>Accounting controls that provide reasonable assurance that:</text> <paragraph num="(a)"> <text>Transactions or financial events which occur in connection with instant bingo operations are:</text> <paragraph num="(i)"> <text>Executed in accordance with the facility operator’s authorization protocols;</text> </paragraph> <paragraph num="(ii)"> <text>Recorded to permit preparation of financial statements in conformance with generally accepted accounting principles in the United States and the requirements of this chapter; and</text> </paragraph> <paragraph num="(iii)"> <text>Recorded to permit proper and timely reporting and calculation of proceeds and to maintain accountability for assets;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Access to assets is permitted only in accordance with the facility operator’s authorization protocols; and</text> </paragraph> <paragraph num="(c)"> <text>The recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with regard to a discrepancy;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Procedures and controls for ensuring:</text> <paragraph num="(a)"> <text>That an instant bingo machine accurately and timely communicates all required activities and financial details to the instant bingo validation and accounting system;</text> </paragraph> <paragraph num="(b)"> <text>That all functions, duties and responsibilities are segregated and performed in accordance with sound financial practices by qualified personnel; and</text> </paragraph> <paragraph num="(c)"> <text>Through the use of a surveillance and a security department, that the facility is secure at all times during normal operation and during any emergency due to malfunctioning equipment, loss of power, natural disaster or any other cause;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Access controls which address, at a minimum:</text> <paragraph num="(a)"> <text>Content of, and administrative responsibility over, the manual or computerized access control matrix governing employee access to restricted areas;</text> </paragraph> <paragraph num="(b)"> <text>Issuance of a temporary access credential; and</text> </paragraph> <paragraph num="(c)"> <text>Comprehensive key controls;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A record retention policy;</text> </paragraph> <paragraph num="(6)"> <text>Procedures and controls over the movement of cash and the count room;</text> </paragraph> <paragraph num="(7)"> <text>Procedures and standards for conducting internal audits; and</text> </paragraph> <paragraph num="(8)"> <text>Other procedures and controls the Commission may require to be included in a facility operator’s internal controls.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A facility operator shall maintain, in hard copy or electronic form, all superseded internal controls for at least five years subsequent to the date the internal controls were superseded.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Review of Internal Controls."> <paragraph num="A."> <text>A facility operator shall submit its internal controls to the Commission for review and written approval.</text> </paragraph> <paragraph num="B."> <text>If the Commission determines that a submitted internal control is deficient, the:</text> <paragraph num="(1)"> <text>Commission shall provide the facility operator with written notice of the deficiency; and</text> </paragraph> <paragraph num="(2)"> <text>Facility operator shall revise the internal control as appropriate and resubmit it to the Commission for review.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator’s initial internal controls submission and a change or amendment to its approved internal controls shall be reviewed and approved in accordance with a process and time frame developed and implemented by the Commission.</text> </paragraph> <paragraph num="D."> <text>The process developed by the Commission under §C of this regulation shall, at a minimum, require the facility operator to:</text> <paragraph num="(1)"> <text>Submit a redlined copy of any section of the approved internal controls to be changed or amended with added text underlined and deleted text lined out;</text> </paragraph> <paragraph num="(2)"> <text>Document on the redlined copy the date the Commission approved the section to be changed or amended and the date the revision was submitted to the Commission for review;</text> </paragraph> <paragraph num="(3)"> <text>Submit a narrative explaining the reason for the change or amendment which includes the facility operator’s target date for implementation;</text> </paragraph> <paragraph num="(4)"> <text>Maintain a log of all changes or amendments in approved internal controls which includes the initial approval date and the effective date of any change or amendment approved by the Commission; and</text> </paragraph> <paragraph num="(5)"> <text>Mark each page of approved internal controls with the date on which it was approved by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Standard Financial and Statistical Reports."> <paragraph num="A."> <text>The Commission may require a facility operator to submit monthly, quarterly, and annual reports of financial and statistical data.</text> </paragraph> <paragraph num="B."> <text>Reports required under this regulation shall be in a form and submitted in accordance with a time frame specified by the Commission.</text> </paragraph> <paragraph num="C."> <text>The Commission may, on written notice to a facility operator, require an interim report to be submitted in a form and in accordance with a time frame specified by the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Annual Audit."> <paragraph num="A."> <text>A facility operator who operates more than ten instant bingo machines shall cause its annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant.</text> </paragraph> <paragraph num="B."> <text>The annual financial statement shall include the method of calculation and a statement of the gross receipts subject to the admissions and amusement tax.</text> </paragraph> <paragraph num="C."> <text>The annual financial statements shall be prepared on a comparative basis for the current and prior fiscal year and present financial position and results of operations in conformity with generally accepted accounting principles in the United States.</text> </paragraph> <paragraph num="D."> <text>The audited financial statements shall include a footnote reconciling and explaining any difference between the financial statements included in any report submitted to the Commission under Regulation .05 of this chapter and the audited financial statements.</text> </paragraph> <paragraph num="E."> <text>With regard to adjustments resulting from the annual audit. a facility operator shall:</text> <paragraph num="(1)"> <text>Disclose to the Commission all adjustments, whether or not recorded in the accounting records; and</text> </paragraph> <paragraph num="(2)"> <text>Record the adjustment in the accounting records of the year to which the adjustment relates.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Not later than 120 days after the end of its fiscal year, a facility operator shall submit to the Commission:</text> <paragraph num="(1)"> <text>A copy of its audited financial statements; and</text> </paragraph> <paragraph num="(2)"> <text>Any management letter or report prepared with regard to the financial statements by its independent certified public accountant.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A facility operator shall prepare a written response to the reports required by §E of this regulation which includes details as to any corrective action taken.</text> </paragraph> <paragraph num="H."> <text>A facility operator shall submit a written report to the Commission if an independent certified public accountant who is engaged as the principal accountant to audit its financial statements:</text> <paragraph num="(1)"> <text>Resigns;</text> </paragraph> <paragraph num="(2)"> <text>Is dismissed as the facility operator’s principal accountant; or</text> </paragraph> <paragraph num="(3)"> <text>Is replaced by another independent certified public accountant as principal accountant.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A report that is required to be filed under §G of this regulation shall include:</text> <paragraph num="(1)"> <text>The date of the resignation, dismissal, or new engagement;</text> </paragraph> <paragraph num="(2)"> <text>Whether in connection with the audits of the 2 most recent years preceding a resignation, dismissal or new engagement there were any disagreements, resolved or unresolved, with the former accountant on:</text> <paragraph num="(a)"> <text>Accounting principles or practices;</text> </paragraph> <paragraph num="(b)"> <text>Financial statement disclosure; or</text> </paragraph> <paragraph num="(c)"> <text>Auditing scope or procedure;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The nature of any disagreement disclosed in §H(2) of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>Whether the principal accountant's report on the financial statements for either of the past two years contained an adverse opinion, disclaimer of opinion or was qualified;</text> </paragraph> <paragraph num="(5)"> <text>The nature of any adverse opinion, disclaimer of opinion or qualification; and</text> </paragraph> <paragraph num="(6)"> <text>A letter from the former principal accountant addressed to the Commission stating whether the principal accountant concurs with the statements made by the facility operator in the report to the Commission submitted under this section.</text> </paragraph> </paragraph> <paragraph num="J."> <text>A report required to be filed under §G of this regulation shall be submitted to the Commission not later than 10 days after the end of the month in which the resignation, dismissal or new engagement occurred.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Record Retention."> <paragraph num="A."> <text>A facility operator shall develop written record retention procedures for its instant bingo machine operations.</text> </paragraph> <paragraph num="B."> <text>All original books and records shall be:</text> <paragraph num="(1)"> <text>Prepared and maintained in a complete, accurate, and legible form;</text> </paragraph> <paragraph num="(2)"> <text>Stored in a format that ensures readability, regardless of whether the technology or software that created or maintains it has become obsolete;</text> </paragraph> <paragraph num="(3)"> <text>Retained in a secure location equipped with a fire notification system at:</text> <paragraph num="(a)"> <text>The facility; or</text> </paragraph> <paragraph num="(b)"> <text>An off-site location approved by the Commission for the express purpose of document storage;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Kept immediately available for inspection by the Commission during all hours of operation;</text> </paragraph> <paragraph num="(5)"> <text>Organized and indexed in a manner designed to provide immediate accessibility to the Commission; and</text> </paragraph> <paragraph num="(6)"> <text>Destroyed only after expiration of the minimum retention period required under this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>On submission of a written request by a facility operator, the Commission may, authorize destruction prior to the expiration of the minimum retention period required under this regulation.</text> </paragraph> <paragraph num="D."> <text>Unless a request for destruction is submitted in writing and approved in writing by the Commission, a facility operator shall retain indefinitely original books and records documenting:</text> <paragraph num="(1)"> <text>Ownership of the facility;</text> </paragraph> <paragraph num="(2)"> <text>Internally initiated investigations and due diligence;</text> </paragraph> <paragraph num="(3)"> <text>Personnel matters;</text> </paragraph> <paragraph num="(4)"> <text>Destruction of documents including:</text> <paragraph num="(a)"> <text>The identity of the document;</text> </paragraph> <paragraph num="(b)"> <text>Period of retention; and</text> </paragraph> <paragraph num="(c)"> <text>Date of destruction.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Unless a request for destruction is submitted in writing and approved in writing by the Commission, a facility operator shall retain for a minimum of five years all original books and records.</text> </paragraph> <paragraph num="F."> <text>Nothing in this regulation shall be construed as relieving a facility operator of any obligation to prepare or maintain books and records required by any other federal, State, or local governmental entity.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Table of Organization."> <paragraph num="A."> <text>For the purposes of this regulation, the title used to describe a department head is intended to indicate responsibility for the functions of the enumerated department and does not obligate the facility operator to use that particular title.</text> </paragraph> <paragraph num="B."> <text>Subject to the requirements of this regulation, a facility operator shall tailor its table of organization to meet its needs and policies.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall submit to the Commission for review and written approval a table of organization depicting all direct and indirect reporting lines for instant bingo operations:</text> </paragraph> <paragraph num="D."> <text>A facility operator’s table of organization shall include:</text> <paragraph num="(1)"> <text>A system of personnel and chain of command which permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility;</text> </paragraph> <paragraph num="(2)"> <text>The segregation of incompatible functions, duties, and responsibilities so that no individual is in a position both to:</text> <paragraph num="(a)"> <text>Commit an error or to perpetrate a fraud; and</text> </paragraph> <paragraph num="(b)"> <text>Conceal the error or fraud in the normal course of the individual’s duties;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The performance of all functions, duties and responsibilities by qualified personnel;</text> </paragraph> <paragraph num="(4)"> <text>Areas of responsibility which are not so extensive as to be impractical for one individual to monitor; and</text> </paragraph> <paragraph num="(5)"> <text>A General Manager:</text> <paragraph num="(a)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(b)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(c)"> <text>Ultimately responsible for the daily conduct of all operations at the facility.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A facility operator may not implement a change in the table of organization approved by the Commission under §D of this regulation without the prior written approval of the Commission.</text> </paragraph> <paragraph num="F."> <text>A facility operator shall ensure that an individual employed at the facility is trained in the policies, procedures, and internal controls relevant to the individual’s function.</text> </paragraph> <paragraph num="G."> <text>If there is a vacancy in the General Manager position:</text> <paragraph num="(1)"> <text>Not later than 5 days after the date of a vacancy, the facility operator shall notify the Commission in writing of:</text> <paragraph num="(a)"> <text>The vacant position;</text> </paragraph> <paragraph num="(b)"> <text>The date on which the position will become or became vacant; and</text> </paragraph> <paragraph num="(c)"> <text>The date on which the facility operator anticipates that the vacancy will be filled on a permanent basis;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Not later than 30 days after the date of a vacancy, a facility operator shall fill the vacant position on a temporary basis;</text> </paragraph> <paragraph num="(3)"> <text>Not later than 120 days after the original date of the vacancy, a facility operator shall fill the vacant position on a permanent basis; and</text> </paragraph> <paragraph num="(4)"> <text>Not later than 5 days after filling a vacancy, a facility operator shall notify the Commission in writing of:</text> <paragraph num="(a)"> <text>The vacant position filled;</text> </paragraph> <paragraph num="(b)"> <text>The name of the individual designated to fill the position;</text> </paragraph> <paragraph num="(c)"> <text>The date that the vacancy was filled; and</text> </paragraph> <paragraph num="(d)"> <text>Whether the vacancy has been filled on a temporary or permanent basis.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Surveillance System Design Standards."> <paragraph num="A."> <text>A facility operator shall install in its facility a surveillance system that complies with the requirements of this regulation.</text> </paragraph> <paragraph num="B."> <text>A facility operator’s surveillance system shall be reviewed and approved by the Commission under Regulation .10 of this chapter.</text> </paragraph> <paragraph num="C."> <text>A facility operator’s surveillance system shall include:</text> <paragraph num="(1)"> <text>Light sensitive cameras that are:</text> <paragraph num="(a)"> <text>Enabled by lenses of sufficient magnification to observe instant bingo operations;</text> </paragraph> <paragraph num="(b)"> <text>Enabled by lighting which is continuous and of sufficient quality to produce clear video recordings and still pictures; and</text> </paragraph> <paragraph num="(c)"> <text>Configured to clandestinely monitor and record:</text> <paragraph num="(i)"> <text>Play and transactions conducted at instant bingo machines;</text> </paragraph> <paragraph num="(ii)"> <text>Transactions conducted at cashier locations including the face of each individual transacting business with a cashier;</text> </paragraph> <paragraph num="(iii)"> <text>Transactions conducted at automated teller machines;</text> </paragraph> <paragraph num="(iv)"> <text>Activity in the count room;</text> </paragraph> <paragraph num="(v)"> <text>Movement of cash and cash storage boxes within the facility;</text> </paragraph> <paragraph num="(vi)"> <text>Entrances and exits to the facility;</text> </paragraph> <paragraph num="(vii)"> <text>Activities in all other restricted areas; and</text> </paragraph> <paragraph num="(viii)"> <text>Other areas and events designated by the Commission;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Digital video recording capability equipped to:</text> <paragraph num="(a)"> <text>Superimpose the date and time on all monitoring and recording;</text> </paragraph> <paragraph num="(b)"> <text>Identify and locate, through the use of a meter, counter, or other device or method, a particular event which was recorded; and</text> </paragraph> <paragraph num="(c)"> <text>Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Except as provided in §E of this regulation, a facility operator shall retain surveillance recordings for a minimum of 7 days.</text> </paragraph> <paragraph num="E."> <text>Upon the request of the Commission or a law enforcement agency that has proper jurisdiction over the facility, a recording shall be retained and stored in accordance with the directives of the Commission or law enforcement agency pertaining to that recording.</text> </paragraph> <paragraph num="F."> <text>A facility operator shall provide the Commission with timely and unfettered access to its surveillance monitor room, surveillance system, and all transmissions.</text> </paragraph> <paragraph num="G."> <text>A facility operator shall comply in a timely fashion with a request from the Commission to:</text> <paragraph num="(1)"> <text>Use, as necessary, any monitor room in the facility;</text> </paragraph> <paragraph num="(2)"> <text>Display on the monitors in its monitor room any event capable of being captured by the surveillance system;</text> </paragraph> <paragraph num="(3)"> <text>Relinquish control of a camera or monitor;</text> </paragraph> <paragraph num="(4)"> <text>Discontinue monitoring a particular camera or recording activity captured by it;</text> </paragraph> <paragraph num="(5)"> <text>Make a video recording or photograph of any event capable of being captured by the surveillance system; and</text> </paragraph> <paragraph num="(6)"> <text>Restrict or deny access to a recording or photograph.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A surveillance system may not be remotely accessed from a location outside the surveillance monitor room without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Surveillance Operating Procedures."> <paragraph num="A."> <text>A facility operator shall submit to the Commission for review and written approval its surveillance operating procedures.</text> </paragraph> <paragraph num="B."> <text>A facility operator’s surveillance operating procedures shall, at a minimum, require:</text> <paragraph num="(1)"> <text>Coverage of all areas and transactions enumerated in Regulation .09;</text> </paragraph> <paragraph num="(2)"> <text>Contingency plans addressing:</text> <paragraph num="(a)"> <text>Full and partial failure of the surveillance system including:</text> <paragraph num="(i)"> <text>A contact list with telephone numbers for individuals required to be notified in the event of a failure; and</text> </paragraph> <paragraph num="(ii)"> <text>Facility closure protocols; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Planned shutdown of the surveillance system;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A surveillance incident log:</text> <paragraph num="(a)"> <text>Maintained in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed; or</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Documenting the scheduled coverage in §B(1) of this regulation and all other non-routine surveillance activity, such as:</text> <paragraph num="(i)"> <text>The date and time surveillance is commenced;</text> </paragraph> <paragraph num="(ii)"> <text>The name of the individual initiating, performing, or supervising the surveillance;</text> </paragraph> <paragraph num="(iii)"> <text>The reason for the surveillance;</text> </paragraph> <paragraph num="(iv)"> <text>Whether the suspicious activity involves an alleged regulatory violation or criminal activity;</text> </paragraph> <paragraph num="(v)"> <text>The name, if known, alias or description of an individual being monitored;</text> </paragraph> <paragraph num="(vi)"> <text>A description of the activity in which the individual being monitored is engaged;</text> </paragraph> <paragraph num="(vii)"> <text>A reading on a meter, counter or device that identifies the point on the video recording at which the event was recorded;</text> </paragraph> <paragraph num="(viii)"> <text>The time at which a video recording is commenced and terminated, if different than when surveillance is commenced or terminated;</text> </paragraph> <paragraph num="(ix)"> <text>The date and time surveillance is terminated;</text> </paragraph> <paragraph num="(x)"> <text>A summary of the results of the surveillance; and</text> </paragraph> <paragraph num="(xi)"> <text>A description of the time, date and cause of any equipment or camera malfunction which occurred during the conduct of surveillance;</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator may not implement a change or amendment in its surveillance system or surveillance operating procedures approved by the Commission without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Security Operating Procedures."> <paragraph num="A."> <text>A facility operator shall submit to the Commission for review and written approval its security operating procedures.</text> </paragraph> <paragraph num="B."> <text>A facility operator’s security operating procedures shall, at a minimum, include:</text> <paragraph num="(1)"> <text>A security zone plan for the facility designed to ensure:</text> <paragraph num="(a)"> <text>The physical safety of employees and invitees to the facility;</text> </paragraph> <paragraph num="(b)"> <text>The safeguarding of assets;</text> </paragraph> <paragraph num="(c)"> <text>Compliance with all applicable laws and regulations including Commission approved internal controls and operating procedures;</text> </paragraph> <paragraph num="(d)"> <text>That intoxicated individuals are identified, prohibited from entering the facility and, if necessary, immediately removed from the facility; and</text> </paragraph> <paragraph num="(e)"> <text>That an individual under the age of 18 years is identified, prohibited from playing instant bingo and, if necessary immediately removed from the facility; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Procedures and controls addressing:</text> <paragraph num="(a)"> <text>Facility access controls including:</text> <paragraph num="(i)"> <text>An access badge or key system;</text> </paragraph> <paragraph num="(ii)"> <text>If utilized, specifications pertaining to a computerized access control system; and</text> </paragraph> <paragraph num="(iii)"> <text>Administrative responsibility over a manual or computerized access control system;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A temporary access credential;</text> </paragraph> <paragraph num="(c)"> <text>Key controls;</text> </paragraph> <paragraph num="(d)"> <text>Emergency alarm and fire command responsibilities;</text> </paragraph> <paragraph num="(e)"> <text>Evacuation of the facility in the event of fire or other emergency;</text> </paragraph> <paragraph num="(f)"> <text>The identification and immediate removal of an intoxicated individual, and, if applicable, an individual under the age of 18 years; and</text> </paragraph> <paragraph num="(g)"> <text>The notice requirements of §(B)(4) of this regulation;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A security incident log:</text> <paragraph num="(a)"> <text>Maintained in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed; or</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Documenting:</text> <paragraph num="(i)"> <text>The assignment number of the incident;</text> </paragraph> <paragraph num="(ii)"> <text>The date and time of the incident;</text> </paragraph> <paragraph num="(iii)"> <text>The name of the person covering the incident;</text> </paragraph> <paragraph num="(iv)"> <text>The nature of the incident; and</text> </paragraph> <paragraph num="(v)"> <text>The resolution of the incident; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>A requirement that a facility operator notify the Commission upon detection of:</text> <paragraph num="(a)"> <text>An individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities; and</text> </paragraph> <paragraph num="(b)"> <text>An individual who is:</text> <paragraph num="(i)"> <text>Under the age of 18 years and has played instant bingo; or</text> </paragraph> <paragraph num="(ii)"> <text>Intoxicated.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Access to Instant Bingo Validation and Accounting System Equipment."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .05 of this chapter procedures addressing physical access to the instant bingo validation and accounting system equipment located in the facility.</text> </regulation> <regulation prefix="Regulation" num=".13" heading="Accounting Controls for Cashiers."> <paragraph num="A."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the general conduct of cashiers’ transactions.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall at all times maintain a reserve cash bankroll sufficient to pay all winning wagers.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Jackpot Payout."> <paragraph num="A."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the payment of a jackpot or credit meter payout not totally and automatically paid by an instant bingo machine.</text> </paragraph> <paragraph num="B."> <text>A facility operator shall prepare and timely file IRS Form W-2G, Certain Gambling Winnings as required by the IRS.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall pay a jackpot or credit meter payout of:</text> <paragraph num="(1)"> <text>$10,000 or more by check; and</text> </paragraph> <paragraph num="(2)"> <text>Less than $10,000 by:</text> <paragraph num="(a)"> <text>Cash or check; or</text> </paragraph> <paragraph num="(b)"> <text>Check on the request of a player.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Cash Storage Boxes."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing cash storage boxes to include:</text> <paragraph num="A."> <text>Access controls for cash storage boxes including:</text> <paragraph num="(1)"> <text>Key controls for access to cash storage box within instant bingo machines;</text> </paragraph> <paragraph num="(2)"> <text>Key controls for access to the currency contained within cash storage boxes; and</text> </paragraph> </paragraph> <paragraph num="B."> <text>A method for association of the contents of a cash storage box with an instant bingo machine.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Collection of Cash Storage Boxes."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the collection of cash storage boxes including:</text> <paragraph num="A."> <text>An access control matrix indicating which employee positions are authorized to participate in the cash storage box collection process; and</text> </paragraph> <paragraph num="B."> <text>Details of the actual procedures to be performed and documentation to be generated by drop team employees collecting cash storage boxes.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Accounting Controls for a Count Room."> <paragraph num="A."> <text>A facility operator shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the counting and recording of cash storage boxes.</text> </paragraph> <paragraph num="B."> <text>A facility operator’s internal controls shall:</text> <paragraph num="(1)"> <text>Detail the actual procedures to be performed and documentation to be generated by:</text> <paragraph num="(a)"> <text>Count team employees conducting the counting process; and</text> </paragraph> <paragraph num="(b)"> <text>The employee verifying and accepting the count; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Require two separate counts and, if the separate counts are not in agreement, document the discrepancy.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall report in writing to the Commission within 72 hours of the count:</text> <paragraph num="(1)"> <text>Any variance greater than $20 between the actual count of cash, in a cash storage box as determined in the count room and the amount for that particular cash storage box recorded on the:</text> <paragraph num="(a)"> <text>Facility operator’s instant bingo machine; and</text> </paragraph> <paragraph num="(b)"> <text>The instant bingo validation and accounting system;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The reason for the variance; and</text> </paragraph> <paragraph num="(3)"> <text>The corrective action taken or adjustments made.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Player Complaints."> <paragraph num="A."> <text>A facility operator shall attempt to timely resolve a dispute with a player concerning operation of an instant bingo machine or payment of alleged winnings.</text> </paragraph> <paragraph num="B."> <text>A facility operator who is unable to satisfactorily resolve a dispute with a player shall provide the player with a Commission player complaint form together with instructions for completing and submitting the form.</text> </paragraph> <paragraph num="C."> <text>The Commission shall investigate a complaint submitted to the Commission and notify the player and facility operator of its determination.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Internal Audit Standards."> <text>A facility operator shall submit to the Commission for review and approval internal audit standards and procedures designed to test the facility’s compliance with its internal controls.</text> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §§ 12-301. 1 and 12-308; State Government Article, §9-110; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01— .19 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended effective October 22, 2018 (45:21 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14B amended effective May 25, 2026 (53:10 Md. R. 459)</annotation> </annotations> </chapter> <chapter num="05" heading="General Requirements"> <regulation prefix="Regulation" num=".01" heading="Compliance with Federal Law."> <text>A person who transports an instant bingo machine shall comply with applicable provisions of 15 U.S.C. §§1171—1178, commonly known as the Johnson Act.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Transportation."> <paragraph num="A."> <text>Unless otherwise directed by the Commission, a person shall submit a written notice to the Commission prior to transporting an instant bingo machine.</text> </paragraph> <paragraph num="B."> <text>For each instant bingo machine to be transported, a person proposing to transport the machine shall submit to the Commission a written notice containing:</text> <paragraph num="(1)"> <text>The name and address of person initiating transportation;</text> </paragraph> <paragraph num="(2)"> <text>The reason for transportation;</text> </paragraph> <paragraph num="(3)"> <text>The method of transportation;</text> </paragraph> <paragraph num="(4)"> <text>The name of and address of the carrier;</text> </paragraph> <paragraph num="(5)"> <text>The anticipated beginning and end dates of transportation;</text> </paragraph> <paragraph num="(6)"> <text>The name and address of the destination;</text> </paragraph> <paragraph num="(7)"> <text>The name and address of the manufacturer;</text> </paragraph> <paragraph num="(8)"> <text>The manufacturer's serial number;</text> </paragraph> <paragraph num="(9)"> <text>The model number;</text> </paragraph> <paragraph num="(10)"> <text>A description of the instant bingo machine to be transported; and</text> </paragraph> <paragraph num="(11)"> <text>Any other information requested by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A person proposing to transport or transporting an instant bingo machine shall promptly submit to the Commission written notice of any changes to the information already submitted as required under §B of this regulation.</text> </paragraph> <paragraph num="D."> <text>A person transporting an instant bingo machine shall plainly and clearly label the package so that the name and address of the shipper and recipient, and the contents of the package, may be readily ascertained during an inspection of the outside of the package.</text> </paragraph> <paragraph num="E."> <text>After delivery of an instant bingo machine, the facility to which the machine is delivered shall promptly submit to the Commission written notice that includes:</text> <paragraph num="(1)"> <text>The date instant bingo machine was received;</text> </paragraph> <paragraph num="(2)"> <text>The date instant bingo machine will be placed into operation; and</text> </paragraph> <paragraph num="(3)"> <text>Any other information requested by the Commission.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Storage.</text> <paragraph num="(1)"> <text>If an instant bingo machine will not be placed into operation upon delivery to a facility, the facility shall provide the Commission with written notice that includes:</text> <paragraph num="(a)"> <text>A precise identification of the instant bingo machine;</text> </paragraph> <paragraph num="(b)"> <text>The reason for storage;</text> </paragraph> <paragraph num="(c)"> <text>The storage facility’s location; and</text> </paragraph> <paragraph num="(d)"> <text>Any other information requested by the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A facility may store an instant bingo machine only in a manner that the Commission has approved.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Registration."> <paragraph num="A."> <text>The Commission shall maintain a register of each instant bingo machine placed in operation in the State.</text> </paragraph> <paragraph num="B."> <text>For each instant bingo machine placed into operation, the Commission shall:</text> <paragraph num="(1)"> <text>Assign an instant bingo machine certification control number; and</text> </paragraph> <paragraph num="(2)"> <text>Affix a Commission certification tag.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An instant bingo machine may not be transported out of the State unless the Commission:</text> <paragraph num="(1)"> <text>Approves the action; and</text> </paragraph> <paragraph num="(2)"> <text>Removes the certification tag.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Testing."> <text>The Commission may test instant bingo machines and associated equipment for:</text> <paragraph num="A."> <text>Accuracy; and</text> </paragraph> <paragraph num="B."> <text>Any other function that the Commission determines may be necessary to validate the proper functionality and performance of the machines and equipment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Request for Authorization."> <paragraph num="A."> <text>A facility shall obtain prior written Commission authorization before taking any of the following actions with respect to an instant bingo machine or associated equipment in its facility:</text> <paragraph num="(1)"> <text>Placing a machine into operation;</text> </paragraph> <paragraph num="(2)"> <text>Changing percentage payout;</text> </paragraph> <paragraph num="(3)"> <text>Changing software or hardware that has been tested by the Commission’s independent test laboratory; or</text> </paragraph> <paragraph num="(4)"> <text>Performing any other action that materially alters or interrupts the operation of a machine.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Before the Commission may authorize an action described in §A of this regulation, a facility shall provide the Commission with written notice of the request that includes:</text> <paragraph num="(1)"> <text>A description of proposed action;</text> </paragraph> <paragraph num="(2)"> <text>The location of action;</text> </paragraph> <paragraph num="(3)"> <text>The start and end dates and times;</text> </paragraph> <paragraph num="(4)"> <text>The estimated “go live” date for the machine;</text> </paragraph> <paragraph num="(5)"> <text>Documentation demonstrating the approval of the manufacturer of the affected instant bingo machine; and</text> </paragraph> <paragraph num="(6)"> <text>Any other information requested by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notice of Changes. A facility shall submit to the Commission written notice of any changes to the information already submitted under §A or B of this regulation.</text> </paragraph> <paragraph num="D."> <text>Commission Response to Request for Authorization.</text> <paragraph num="(1)"> <text>The Commission may impose additional requirements on the facility or the manufacturer before authorizing the action.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may deny approval of the action.</text> </paragraph> <paragraph num="(3)"> <text>A facility shall notify the Commission if the action is not completed as approved by the Commission.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-110; Criminal Law Article, §§12-301.1 and 12-308; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019)</annotation> </annotations> </chapter> <chapter num="06" heading="Technical Standards"> <regulation prefix="Regulation" num=".01" heading="Testing, Certification, and Approval of Equipment, a System, or Software."> <paragraph num="A."> <text>A manufacturer may not offer the equipment, systems or software enumerated in §E of this regulation, or a modification to a Commission approved version of that equipment, system or software, for sale, lease, distribution or use in a facility without it having been:</text> <paragraph num="(1)"> <text>Tested and certified by an independent certified testing laboratory; and</text> </paragraph> <paragraph num="(2)"> <text>Approved in writing by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator may not purchase, lease, or otherwise acquire the right to install, utilize, or make available for use the equipment, systems, or software enumerated in §E of this regulation, or a modification to a Commission approved version of that equipment, system, or software, without it having been:</text> <paragraph num="(1)"> <text>Tested and certified by an independent certified testing laboratory; and</text> </paragraph> <paragraph num="(2)"> <text>Approved in writing by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator may not modify, alter or tamper with an instant bingo machine or associated validation and accounting system.</text> </paragraph> <paragraph num="D."> <text>Modification, alteration, or tampering with an instant bingo machine or associated validation and accounting system may result in the immediate suspension of a facility license by the Commission.</text> </paragraph> <paragraph num="E."> <text>The testing, certification, and approval requirements of this regulation shall, at a minimum, apply to:</text> <paragraph num="(1)"> <text>The instant bingo machine validation and accounting system;</text> </paragraph> <paragraph num="(2)"> <text>An instant bingo machine;</text> </paragraph> <paragraph num="(3)"> <text>The interoperability between an instant bingo machine and:</text> <paragraph num="(a)"> <text>An instant bingo machine validation and accounting system; and</text> </paragraph> <paragraph num="(b)"> <text>Any other component integral to the operation of the device; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Other equipment, systems, or software designated for testing and certification by the Commission.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A prototype of equipment, a system, or software required to be tested, certified, and approved under §E of this regulation, or a modification to a Commission approved version of that equipment, system, or software shall, at a minimum, be tested for:</text> <paragraph num="(1)"> <text>Overall operational integrity;</text> </paragraph> <paragraph num="(2)"> <text>Compliance with applicable state laws and commission regulations; and</text> </paragraph> <paragraph num="(3)"> <text>Any other standards required by the Commission pertaining to the equipment, system, or software.</text> </paragraph> </paragraph> <paragraph num="G."> <text>If a facility operator develops any equipment, system, or software that is functionally equivalent to that enumerated in this regulation, or modifies a Commission approved version of that equipment, system or software, the facility operator shall be subject to the testing, certification, and approval requirements of this chapter to the same extent as if the equipment, system, or software were developed or modified by a manufacturer.</text> </paragraph> <paragraph num="H."> <text>A manufacturer shall pay all costs of testing, certification, and approval under this chapter including, but not limited to, all costs associated with:</text> <paragraph num="(1)"> <text>Transportation;</text> </paragraph> <paragraph num="(2)"> <text>Equipment and technical services required by an independent certified testing laboratory to conduct the testing and certification process; and</text> </paragraph> <paragraph num="(3)"> <text>Implementation testing.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Submission of Equipment, a System, or Software for Testing and Certification."> <paragraph num="A."> <text>A manufacturer seeking Commission approval for equipment, a system, or software other than an instant bingo machine shall submit the equipment, system, or software to an independent certified testing laboratory.</text> </paragraph> <paragraph num="B."> <text>A manufacturer seeking Commission approval for a modification to a Commission approved version of equipment, a system, or software other than an instant bingo machine shall submit the proposed modification to an independent certified testing laboratory.</text> </paragraph> <paragraph num="C."> <text>At the conclusion of testing of a prototype or modification of equipment, a system or software other than an instant bingo machine, an independent certified testing laboratory shall issue to the Commission a certification report in:</text> <paragraph num="(1)"> <text>An electronic form; and</text> </paragraph> <paragraph num="(2)"> <text>A format acceptable to the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Submission of an Instant Bingo Machine for Testing and Certification."> <paragraph num="A."> <text>A manufacturer seeking Commission approval for an instant bingo machine shall submit the instant bingo machine to an independent certified testing laboratory.</text> </paragraph> <paragraph num="B."> <text>A manufacturer seeking Commission approval for a modification to a Commission approved version of an instant bingo machine, including a change in theme, shall submit the modification to an independent certified testing laboratory.</text> </paragraph> <paragraph num="C."> <text>At the conclusion of testing of a prototype or modification to an instant bingo machine, an independent certified testing laboratory shall issue to the Commission a certification report in:</text> <paragraph num="(1)"> <text>An electronic form; and</text> </paragraph> <paragraph num="(2)"> <text>A format acceptable to the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Upon receipt of a certification report from an independent certified testing laboratory, but prior to a decision to approve a prototype or modification to an instant bingo machine, the Commission may require a trial period.</text> <paragraph num="(1)"> <text>A trial period shall be of a scope and duration the Commission deems appropriate to assess the operation of the instant bingo machine in a live gaming environment.</text> </paragraph> <paragraph num="(2)"> <text>A trial period shall be subject to compliance by the manufacturer and the facility operator with specific terms and conditions required by the Commission, which may include:</text> <paragraph num="(a)"> <text>Development and implementation of product specific accounting and internal controls; and</text> </paragraph> <paragraph num="(b)"> <text>Periodic data reporting to the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission may order termination of the trial period at any time upon a determination by the Commission that:</text> <paragraph num="(a)"> <text>A manufacturer or facility operator has not complied with the terms and conditions required by the Commission; or</text> </paragraph> <paragraph num="(b)"> <text>The instant bingo machine is not performing as expected.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Upon receipt of a certification report from an independent certified testing laboratory, the Commission may:</text> <paragraph num="(1)"> <text>Approve the prototype or modification, with or without specific conditions;</text> </paragraph> <paragraph num="(2)"> <text>Reject the prototype or modification;</text> </paragraph> <paragraph num="(3)"> <text>Require additional testing; or</text> </paragraph> <paragraph num="(4)"> <text>Require a trial period under §G of this regulation.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Commission approval of a prototype or modification of an instant bingo machine does not constitute a guarantee of its safety or reliability.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Related Documentation."> <text>Upon request, a manufacturer shall deliver to the Commission:</text> <paragraph num="A."> <text>Technical and operator manuals, pay table information;</text> </paragraph> <paragraph num="B."> <text>A file, in a form satisfactory to the Commission, describing the instant bingo machine including:</text> <paragraph num="(1)"> <text>Manufacturer’s:</text> <paragraph num="(a)"> <text>Serial number;</text> </paragraph> <paragraph num="(b)"> <text>Model number;</text> </paragraph> <paragraph num="(c)"> <text>Software identification number; and</text> </paragraph> <paragraph num="(d)"> <text>Version number;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Denomination or a designation as multi-denomination;</text> </paragraph> <paragraph num="(3)"> <text>Cabinet style; and</text> </paragraph> <paragraph num="(4)"> <text>Other information required by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Emergency Modification of Equipment, a System, or Software."> <paragraph num="A."> <text>Notwithstanding the requirements of Regulations .02C and .03C of this chapter, the Commission may, on submission of a written request by a manufacturer, authorize installation of a modification to equipment, a system or software required to be tested, certified, and approved by the Commission under Regulation .01E of this chapter, on an emergency basis.</text> </paragraph> <paragraph num="B."> <text>A written request submitted by a manufacturer to the Commission shall document the:</text> <paragraph num="(1)"> <text>Equipment, system, or software proposed for emergency modification including:</text> <paragraph num="(a)"> <text>Software identification number; and</text> </paragraph> <paragraph num="(b)"> <text>Version number;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Facility;</text> </paragraph> <paragraph num="(3)"> <text>Reason for the emergency modification; and</text> </paragraph> <paragraph num="(4)"> <text>Proposed date and time of installation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A manufacturer may not install an emergency modification without the written approval of the Commission.</text> </paragraph> <paragraph num="D."> <text>Not more than 15 days following receipt of Commission authorization on an emergency modification, a manufacturer shall submit a modification identical to that receiving emergency authorization for testing, certification, and approval under this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Notice of Known or Suspected Defect."> <paragraph num="A."> <text>A manufacturer or facility operator shall immediately notify the Commission of any known or suspected defect or malfunction in equipment, system, or software required to be tested, certified, and approved by the Commission.</text> </paragraph> <paragraph num="B."> <text>A manufacturer shall:</text> <paragraph num="(1)"> <text>Confirm in writing any notice given to the Commission verbally pursuant to §A of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>If required by the Commission, notify a facility operator of any known or suspected defect or malfunction in equipment, a system, or software installed in its facility.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator shall immediately notify the Commission of any known or suspected defect or malfunction in equipment, system, or software required to be tested, certified, and approved by the Commission.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall confirm in writing any notice given to the Commission verbally pursuant to §C of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Revocation."> <paragraph num="A."> <text>The Commission may, at any time, revoke an approval granted under Regulations .02, .03, or .04 of this chapter to equipment, a system, or software on a determination by the Commission that the equipment, system, or software does not comply with the technical standards specified by the Commission pertaining to the equipment, system, or software, as amended or clarified.</text> </paragraph> <paragraph num="B."> <text>The Commission may, at any time, impose additional conditions on the operation or placement of Commission approved equipment, systems, or software.</text> </paragraph> <paragraph num="C."> <text>A revocation by the Commission of an approval under §A of this regulation does not give rise to an appeal right.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Instant Bingo Machine Additional Requirements"> <paragraph num="A."> <text>An instant bingo machine shall be configured to lock-up and preclude further play following a single jackpot event:</text> <paragraph num="(1)"> <text>Requiring the filing of an IRS Form W-2G, Certain Gambling Winnings, as required by the IRS; or</text> </paragraph> <paragraph num="(2)"> <text>At an amount lower than the IRS requires for reporting, as approved by the Agency.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The following error conditions shall result in placement of instant bingo machine in a disabled mode, shall prevent play, and shall only be cleared by a manufacturer and/or operator:</text> <paragraph num="(1)"> <text>Low RAM battery;</text> </paragraph> <paragraph num="(2)"> <text>Printer:</text> <paragraph num="(a)"> <text>Failure;</text> </paragraph> <paragraph num="(b)"> <text>Jam; or</text> </paragraph> <paragraph num="(c)"> <text>Out of paper;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Ticket dispenser:</text> <paragraph num="(a)"> <text>Failure;</text> </paragraph> <paragraph num="(b)"> <text>Jam; or</text> </paragraph> <paragraph num="(c)"> <text>Out of tickets;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Presentation error;</text> </paragraph> <paragraph num="(5)"> <text>Program error or defective program storage media;</text> </paragraph> <paragraph num="(6)"> <text>Reel spin error;</text> </paragraph> <paragraph num="(7)"> <text>Removal of the control storage media;</text> </paragraph> <paragraph num="(8)"> <text>RAM defective or corrupted; and</text> </paragraph> <paragraph num="(9)"> <text>Bill validator jam.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An instant bingo machine shall be capable of recalling and displaying a complete play history for the most recent game event and at least three games immediately preceding the most recent game event and shall:</text> <paragraph num="(1)"> <text>Be presented in the same sequence as the original game play;</text> </paragraph> <paragraph num="(2)"> <text>Be available when the instant bingo machine is in:</text> <paragraph num="(a)"> <text>Idle mode;</text> </paragraph> <paragraph num="(b)"> <text>Administrative mode;</text> </paragraph> <paragraph num="(c)"> <text>Disabled mode; and</text> </paragraph> <paragraph num="(d)"> <text>Tilt mode; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Include:</text> <paragraph num="(a)"> <text>Game outcome in graphics or text;</text> </paragraph> <paragraph num="(b)"> <text>The base game and all intermediate play decisions;</text> </paragraph> <paragraph num="(c)"> <text>Details sufficient to determine the credits available at the start and end of each game event;</text> </paragraph> <paragraph num="(d)"> <text>Wagers placed per line;</text> </paragraph> <paragraph num="(e)"> <text>Number of lines on which wagers were placed; and</text> </paragraph> <paragraph num="(f)"> <text>Credits won.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A manufacturer and/or operator shall equip an instant bingo machine with a maintenance log for use in documenting each time a:</text> <paragraph num="(1)"> <text>Instant bingo machine is entered; or</text> </paragraph> <paragraph num="(2)"> <text>A device connected to an instant bingo machine which may affect the operation of the instant bingo machine is accessed.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A maintenance log shall be:</text> <paragraph num="(1)"> <text>Signed by each individual accessing an area enumerated in §D of this regulation including representatives of a manufacturer, contractor, facility operator or the Commission;</text> </paragraph> <paragraph num="(2)"> <text>Maintained in a book with bound numbered pages that cannot be readily removed:</text> <paragraph num="(a)"> <text>In the main cabinet of the instant bingo machine; and</text> </paragraph> <paragraph num="(b)"> <text>On the cover of which are fields to record:</text> <paragraph num="(i)"> <text>The instant bingo machine’s manufacturer’s serial number;</text> </paragraph> <paragraph num="(ii)"> <text>Commission certification number; and</text> </paragraph> <paragraph num="(iii)"> <text>A log book sequence number;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Utilized to document the following:</text> <paragraph num="(a)"> <text>Date and time of entry;</text> </paragraph> <paragraph num="(b)"> <text>Entering individual's signature;</text> </paragraph> <paragraph num="(c)"> <text>Reason for entering the instant bingo machine including the identification of areas inspected or repaired; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Retained by a facility operator for a minimum of two years from the date of the last entry unless a request for destruction is submitted in writing and approved in writing by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Remote Access."> <paragraph num="A."> <text>A manufacturer may not perform from a remote location analysis of, or technical support with regard to, an instant bingo machine or instant bingo validation and accounting system without:</text> <paragraph num="(1)"> <text>Submission of a written request to the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>The written approval of the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator intending to authorize remote access to an instant bingo validation and accounting system under this regulation shall include in its internal controls submitted for Commission approval under a written system of access protocols which require:</text> <paragraph num="(1)"> <text>A unique system account for each employee of a manufacturer identified by the manufacturer as potentially required to perform technical support from a remote location;</text> </paragraph> <paragraph num="(2)"> <text>Use of a dedicated and secure communication facility;</text> </paragraph> <paragraph num="(3)"> <text>Prior notice by the manufacturer of intent to remotely access a system to the:</text> <paragraph num="(a)"> <text>Facility operator; and</text> </paragraph> <paragraph num="(b)"> <text>Commission;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The facility operator to take affirmative steps, on a per access basis, to activate a manufacturer’s access privileges;</text> </paragraph> <paragraph num="(5)"> <text>Imposition of limits on the ability of any individual authorized under this regulation to deliberately or inadvertently interfere with:</text> <paragraph num="(a)"> <text>The normal operation of the system; and</text> </paragraph> <paragraph num="(b)"> <text>Its data;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>An access log:</text> <paragraph num="(a)"> <text>Maintained by both the:</text> <paragraph num="(i)"> <text>Manufacturer; and</text> </paragraph> <paragraph num="(ii)"> <text>Facility operator’s information technology department;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Maintained in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed; or</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Documenting the:</text> <paragraph num="(i)"> <text>Manufacturer version number of the system accessed;</text> </paragraph> <paragraph num="(ii)"> <text>Type of connection as leased line, dial in modem, or private WAN;</text> </paragraph> <paragraph num="(iii)"> <text>Name of the manufacturer employee remotely accessing the system;</text> </paragraph> <paragraph num="(iv)"> <text>Name of the information technology department employee activating the manufacturer's access to the system;</text> </paragraph> <paragraph num="(v)"> <text>Date and time of the connection;</text> </paragraph> <paragraph num="(vi)"> <text>Duration of the connection;</text> </paragraph> <paragraph num="(vii)"> <text>Reason for the remote access including a description of the symptoms or malfunction prompting the need for remote access to the system; and</text> </paragraph> <paragraph num="(viii)"> <text>Any action taken or further action required.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A facility operator may not authorize a manufacturer to remotely access an instant bingo validation and accounting system until its system access protocols are approved in writing by the Commission.</text> </paragraph> <paragraph num="D."> <text>Any modification to a system required to be tested, certified and approved by the Commission shall be processed as:</text> <paragraph num="(1)"> <text>An emergency modification under Regulation .05 of this chapter; or</text> </paragraph> <paragraph num="(2)"> <text>A standard modification under Regulations .02(B) and .03(B) of this chapter.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If an employee of a manufacturer is no longer employed or authorized by a manufacturer to remotely access a system pursuant to this regulation, the manufacturer shall:</text> <paragraph num="(1)"> <text>Immediately notify in writing:</text> <paragraph num="(a)"> <text>Any facility operator that has established a unique system account for that employee of the change in authorization; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Verify with each facility operator notified of the change in authorization that the access privileges of the individual have been revoked.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Storage of Equipment, Systems, and Software Outside a Facility."> <paragraph num="A."> <text>A manufacturer or facility operator may not utilize a location outside of a facility to store or repair equipment, systems, software, or related parts and inventory for use in a facility without the storage facility being:</text> <paragraph num="(1)"> <text>Inspected by the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>Approved in writing by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A manufacturer or facility operator shall locate a storage facility in Maryland in a location or locations that reasonably permit the delivery of the support and technical services.</text> </paragraph> <paragraph num="C."> <text>A manufacturer or facility operator shall submit to the Commission a written request to utilize a storage facility under §A of this regulation which includes, at a minimum:</text> <paragraph num="(1)"> <text>Address;</text> </paragraph> <paragraph num="(2)"> <text>Physical description of the storage facility;</text> </paragraph> <paragraph num="(3)"> <text>Specifications for the surveillance system that has been or will be installed at the proposed storage facility; and</text> </paragraph> <paragraph num="(4)"> <text>Security procedures for the storage facility.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-110; Criminal Law Article, §§ 12-301. 1 and 12-308; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01— .10 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08A amended effective May 25, 2026 (53:10 Md. R. 459)</annotation> </annotations> </chapter> <chapter num="07" heading="Responsible Gaming"> <regulation prefix="Regulation" num=".01" heading="Responsible Gaming Plan."> <paragraph num="A."> <text>A facility shall establish a responsible gaming plan that includes at least the following elements:</text> <paragraph num="(1)"> <text>Goals;</text> </paragraph> <paragraph num="(2)"> <text>Procedures and deadlines for implementation;</text> </paragraph> <paragraph num="(3)"> <text>Identification of facility personnel responsible for implementation;</text> </paragraph> <paragraph num="(4)"> <text>Responsibilities of facility personnel identified as responsible for implementation;</text> </paragraph> <paragraph num="(5)"> <text>Training for facility personnel on problem gambling;</text> </paragraph> <paragraph num="(6)"> <text>Means of educating players about:</text> <paragraph num="(a)"> <text>Problem gambling; and</text> </paragraph> <paragraph num="(b)"> <text>Problem gambling treatment resources, including treatment and prevention programs;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Placement of responsible gambling awareness materials in the facility; and</text> </paragraph> <paragraph num="(8)"> <text>Any other element required by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A facility operator shall submit to the Commission the responsible gaming plan required under §A of this regulation for review and approval.</text> </paragraph> <paragraph num="C."> <text>A facility operator shall submit any amendments to a facility’s responsible gaming plan to the Commission prior to implementation.</text> </paragraph> <paragraph num="D."> <text>A facility operator shall submit to the Commission an annual report describing the operation of the facility’s responsible gaming plan.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-110; Criminal Law Article, §§12-301.1 and 12-308; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted as an emergency provision effective August 26, 2013 (40:20 Md. R. 1650); adopted permanently effective December 12, 2013 (40:24 Md. R. 2019)</annotation> </annotations> </chapter> </subtitle> <subtitle num="08" heading="Skills-Based Amusement Devices"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This subtitle applies to skills-based amusement devices regulated by the Commission under Criminal Law Article, §§12-301 and 12-301.1, and State Government Article, Title 9, Subtitle 1B, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Merchandiser device” means a skills-based amusement device by which a player controls a mechanical or electromechanical claw or other device to retrieve merchandise or prizes.</text> </paragraph> <paragraph num="(2)"> <text>“Minimal value” means having a wholesale value of not more than $40.</text> </paragraph> <paragraph num="(3)"> <text>“Reasonable player” means a first-time player of average levels of intelligence, physical and mental skills, reaction time, and dexterity.</text> </paragraph> <paragraph num="(4)"> <text>“Redemption device” means a skills-based amusement device that issues only tickets, tokens or other objects that represent or that can be converted into merchandise or prizes.</text> </paragraph> <paragraph num="(5)"> <text>“Skill” means:</text> <paragraph num="(a)"> <text>A learned ability of doing a thing competently;</text> </paragraph> <paragraph num="(b)"> <text>A particular ability, strategy, or tactic;</text> </paragraph> <paragraph num="(c)"> <text>A coordinated set of actions, including, but not limited to, eye-hand coordination;</text> </paragraph> <paragraph num="(d)"> <text>Dexterity, fluency, or coordination in the executing of learned physical or mental tasks or combination thereof;</text> </paragraph> <paragraph num="(e)"> <text>Technical proficiency or expertise;</text> </paragraph> <paragraph num="(f)"> <text>Development or implementation of a strategy or tactics in order to achieve a goal; or</text> </paragraph> <paragraph num="(g)"> <text>Knowledge of the means or methods of accomplishing a task.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Skills-based amusement device” means a machine, apparatus, or device that:</text> <paragraph num="(a)"> <text>Operates or can be made to operate by inserting, depositing, or placing with another person money, a token, or another object; and</text> </paragraph> <paragraph num="(b)"> <text>Through the use of skill awards the user:</text> <paragraph num="(i)"> <text>Merchandise or prizes;</text> </paragraph> <paragraph num="(ii)"> <text>A ticket, token, or other object that represents or that can be converted into merchandise or prizes; or</text> </paragraph> <paragraph num="(iii)"> <text>The right to receive an item specified in §B(6)(b)(i) or (ii) of this regulation.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §§12-301 and 12-301.1; State Government Article, §§9-101 and 9-1B-02; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 1, 2017 (43:23 Md. R. 1281)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective July 7, 2025 (52:13 Md, R. 657)</annotation> </annotations> </chapter> <chapter num="02" heading="Registration"> <regulation prefix="Regulation" num=".01" heading="Registration."> <paragraph num="A."> <text>The owner of a skills-based amusement device shall register with the Commission every other year if the device awards prizes other than the award of free play.</text> </paragraph> <paragraph num="B."> <text>A person required to register shall provide in a manner specified by the Commission:</text> <paragraph num="(1)"> <text>The name and address of owner of the device;</text> </paragraph> <paragraph num="(2)"> <text>The address of the location where the device is operated;</text> </paragraph> <paragraph num="(3)"> <text>A total count of the devices in operation with an indication whether the device is:</text> <paragraph num="(a)"> <text>A redemption device;</text> </paragraph> <paragraph num="(b)"> <text>A merchandiser device; or</text> </paragraph> <paragraph num="(c)"> <text>Another type of skills-based amusement device;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Evidence of payment of admissions and amusement taxes as authorized under Tax General Article, Title 4, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(5)"> <text>Any additional information required by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>For each device registered under this chapter, the Commission shall:</text> <paragraph num="(1)"> <text>Issue a registration certificate; and</text> </paragraph> <paragraph num="(2)"> <text>Issue a sticker for each device.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The owner of a skills-based amusement device required to register under this chapter shall affix the registration sticker to the device in a location visible to inspection.</text> </paragraph> <paragraph num="E."> <text>An owner registered under this regulation may operate skills-based amusement devices in accordance with this subtitle.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §§12-301 and 12-301.1, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 1, 2017 (43:23 Md. R. 1281)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C, D amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> <chapter num="03" heading="Amusement Gaming License"> <regulation prefix="Regulation" num=".01" heading="Definition."> <paragraph num="A."> <text>In this subtitle, the following term has the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Term Defined. “Family entertainment center” has the meaning stated in State Government Article, §9-1B-01, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Amusement Gaming License."> <paragraph num="A."> <text>A family entertainment center in Worcester County may apply for an amusement gaming license with the Commission if the family entertainment center:</text> <paragraph num="(1)"> <text>Pays:</text> <paragraph num="(a)"> <text>State and local property tax;</text> </paragraph> <paragraph num="(b)"> <text>Sales and use tax; and</text> </paragraph> <paragraph num="(c)"> <text>Admissions and amusement tax;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Has a location with a street address;</text> </paragraph> <paragraph num="(3)"> <text>Is located in a building that is owned, leased, or occupied by the family entertainment center for the primary purpose of providing amusement devices to the public;</text> </paragraph> <paragraph num="(4)"> <text>Receives a majority of the gross receipts from amusement, merchandise, redemption or skills-based devices;</text> </paragraph> <paragraph num="(5)"> <text>Markets its business to families with children;</text> </paragraph> <paragraph num="(6)"> <text>Offers attractions such as amusement devices, arcade games, crane games, video games, interactive and sporting games, amusement rides, miniature golf, and bowling; and</text> </paragraph> <paragraph num="(7)"> <text>Has been in continuous operation in the same geographic location since 1975.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A family entertainment center applying for an amusement gaming license shall provide in a manner specified by the Commission:</text> <paragraph num="(1)"> <text>The owner’s name and address;</text> </paragraph> <paragraph num="(2)"> <text>The family entertainment center address;</text> </paragraph> <paragraph num="(3)"> <text>Documentation verifying, to the satisfaction of the Commission, conformity with the requirements listed under §A of this regulation; and</text> </paragraph> <paragraph num="(4)"> <text>A listing of the skills-based amusement devices that award merchandise or prizes with a wholesale value of more than a minimal value but does not exceed $599 including:</text> <paragraph num="(a)"> <text>Whether the device is a:</text> <paragraph num="(i)"> <text>Redemption device;</text> </paragraph> <paragraph num="(ii)"> <text>Merchandiser device; or</text> </paragraph> <paragraph num="(iii)"> <text>Another type of skills-based amusement device;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Maximum wholesale prize value offered;</text> </paragraph> <paragraph num="(c)"> <text>Manufacturer;</text> </paragraph> <paragraph num="(d)"> <text>Model name or number;</text> </paragraph> <paragraph num="(e)"> <text>Serial Number;</text> </paragraph> <paragraph num="(f)"> <text>Theme; and</text> </paragraph> <paragraph num="(g)"> <text>Any additional information required by the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>An amusement gaming license is valid for 5 years.</text> </paragraph> <paragraph num="D."> <text>An amusement gaming licensee shall register every other year under COMAR 36.08.02 if the licensee owns any skills-based amusement devices that award prizes other than the award of free play.</text> </paragraph> <paragraph num="E."> <text>A family entertainment center that holds an amusement gaming license may operate up to 10 skills-based amusement devices that award noncash merchandise or prizes with a wholesale value that is more than a minimal value but does not exceed $599.</text> </paragraph> <paragraph num="F."> <text>Upon review of the information provided under §B of this regulation, the Commission may:</text> <paragraph num="(1)"> <text>Require the manufacturer to submit a prototype of the device for testing under COMAR 36.08.04; and</text> </paragraph> <paragraph num="(2)"> <text>Determine that the applicant is qualified and grant the license.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Upon review of the information provided under §B of this regulation, the Commission may conduct a hearing in accordance with COMAR 36.01.02.06 to deny the license.</text> </paragraph> <paragraph num="H."> <text>A family entertainment center that holds an amusement gaming license issued under this regulation may not transfer the license to another geographic location.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Corrective Action."> <paragraph num="A."> <text>Deficiency. If Agency staff determines that an amusement gaming licensee under this chapter no longer meets an amusement gaming license requirement of this subtitle, or that there is cause for imposing sanctions under Regulation .04 of this chapter, the Agency may:</text> <paragraph num="(1)"> <text>Assess the seriousness of the deficiency;</text> </paragraph> <paragraph num="(2)"> <text>Require the amusement gaming licensee to develop a corrective action plan and if required:</text> <paragraph num="(a)"> <text>Conduct periodic monitoring of an amusement gaming licensee to assess the licensee’s progress toward remedying the deficiencies;</text> </paragraph> <paragraph num="(b)"> <text>Evaluate and, if acceptable to the Agency, approve the corrective action plan;</text> </paragraph> <paragraph num="(c)"> <text>Determine appropriate timelines for the completion of corrective action; and</text> </paragraph> <paragraph num="(d)"> <text>Determine whether it is necessary during the pendency of the corrective action process to emergently suspend the amusement gaming license; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Recommend that the Commission impose a sanction under Regulation .04 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Deficiency Notice. If Agency staff determines that a corrective action plan is required to remedy a deficiency, the Agency shall give written notice to an amusement gaming licensee that includes:</text> <paragraph num="(1)"> <text>A description of the violation;</text> </paragraph> <paragraph num="(2)"> <text>A description of the possible sanctions; and</text> </paragraph> <paragraph num="(3)"> <text>The requirement for the licensee to submit a corrective action plan to the Agency within a time frame established by the Agency.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Corrective Action Plan.</text> <paragraph num="(1)"> <text>Within 10 days of receipt of a deficiency notice under §B of this regulation, the amusement gaming licensee shall submit a corrective action plan to the Agency for the Agency’s approval.</text> </paragraph> <paragraph num="(2)"> <text>The Agency shall review the corrective action plan and inform the licensee whether the corrective action plan is acceptable.</text> </paragraph> <paragraph num="(3)"> <text>If the licensee fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the Agency may:</text> <paragraph num="(a)"> <text>Provide the licensee with additional time to submit a revised corrective action plan; or</text> </paragraph> <paragraph num="(b)"> <text>Impose a sanction on the licensee under Regulation .04 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the Agency provided a licensee notice under §B of this regulation and received no timely written response, the Commission may adopt as final the Agency’s decision to impose a sanction under Regulation .04 of this chapter.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Corrective Action Outcomes.</text> <paragraph num="(1)"> <text>If at any time during the corrective action plan period the Agency determines that the amusement gaming licensee has failed to fulfill a requirement of the corrective action plan or has made insufficient progress toward remedying a deficiency, the Agency may:</text> <paragraph num="(a)"> <text>For good cause, extend the time for completion of a corrective action plan; or</text> </paragraph> <paragraph num="(b)"> <text>Emergently suspend the licensee’s license.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If at the end of the corrective action plan period the licensee has failed to adequately remedy a deficiency, the Agency may recommend the imposition of a sanction under Regulation .04 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Sanctions."> <paragraph num="A."> <text>The Commission may impose sanctions on an amusement gaming licensee for:</text> <paragraph num="(1)"> <text>Violating or failing to fulfill the licensee’s responsibilities or a condition of a license under this subtitle;</text> </paragraph> <paragraph num="(2)"> <text>Violating:</text> <paragraph num="(a)"> <text>A provision of law;</text> </paragraph> <paragraph num="(b)"> <text>A regulation adopted under law; or</text> </paragraph> <paragraph num="(c)"> <text>An order or directive of the Commission;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Providing the Commission with false or misleading information;</text> </paragraph> <paragraph num="(4)"> <text>Failing to cooperate with the Commission;</text> </paragraph> <paragraph num="(5)"> <text>If a corrective action plan is required by the Agency failing to prepare, submit, or implement an adequate corrective action plan under Regulation .03C of this chapter; or</text> </paragraph> <paragraph num="(6)"> <text>Other activities or action deemed by the Commission to require the imposition of a sanction.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Types of Sanctions. Sanctions may include emergency suspension, suspension, revocation, and placement of a condition on the amusement gaming license.</text> </paragraph> <paragraph num="C."> <text>Suspension, Revocation and Conditions.</text> <paragraph num="(1)"> <text>Except as set forth in §D of this regulation, the Agency shall give the amusement gaming licensee notice of the intended sanction at least 15 days before the imposition of the intended sanction.</text> </paragraph> <paragraph num="(2)"> <text>A licensee may appeal the Agency’s recommendation to impose a sanction before the date the sanction is imposed by submitting a timely written request for a hearing before the Commission.</text> </paragraph> <paragraph num="(3)"> <text>A hearing on the Agency’s recommendation to impose a sanction shall be in accordance with COMAR 36.01.02.06.</text> </paragraph> <paragraph num="(4)"> <text>The final action on a sanction is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Emergency Suspension.</text> <paragraph num="(1)"> <text>Notwithstanding any other requirement of this chapter, if the Director determines that immediate action is necessary to protect against an imminent, serious threat by an amusement gaming licensee to the security, financial stability, reputation or integrity of the State, the Director may suspend a license without prior notice.</text> </paragraph> <paragraph num="(2)"> <text>If the Director emergently suspends a license, the Director shall provide the licensee with written notice that includes:</text> <paragraph num="(a)"> <text>A statement of the authority upon which the suspension is based;</text> </paragraph> <paragraph num="(b)"> <text>The nature of the violation;</text> </paragraph> <paragraph num="(c)"> <text>The duration of suspension;</text> </paragraph> <paragraph num="(d)"> <text>(d) If the Agency permits a corrective action plan, information about the licensee’s obligation to submit to the Agency a corrective action plan; and</text> </paragraph> <paragraph num="(e)"> <text>A statement of the licensee’s right to request a Commission hearing under COMAR 36.01.02.06.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If after a license is emergently suspended, the licensee does not submit a timely written request for a Commission hearing, the Director may move to revoke the license by giving the licensee notice under §C of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Settlement."> <paragraph num="A."> <text>The Commission may provide an amusement gaming licensee with the opportunity to discuss with staff a means of entering into a settlement agreement between the licensee and the Commission by which the violation is settled without a penalty or sanction.</text> </paragraph> <paragraph num="B."> <text>A settlement agreement:</text> <paragraph num="(1)"> <text>Shall be signed by an authorized representative of the amusement gaming licensee and the Director or the Director’s designee; and</text> </paragraph> <paragraph num="(2)"> <text>May not be considered final and binding until approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If an amusement gaming licensee violates a term of a settlement agreement, nothing in this regulation shall be construed to prevent the Commission from imposing a penalty or sanction against the licensee for that, or the underlying, violation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Hearings."> <paragraph num="A."> <text>The Commission shall conduct a hearing in order to:</text> <paragraph num="(1)"> <text>Deny an amusement gaming license;</text> </paragraph> <paragraph num="(2)"> <text>Suspend an amusement gaming license; or</text> </paragraph> <paragraph num="(3)"> <text>Revoke an amusement gaming license.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Denial of an Amusement Gaming License.</text> <paragraph num="(1)"> <text>After reviewing an application submitted under this chapter, the Agency may recommend that the Commission deny an amusement gaming license.</text> </paragraph> <paragraph num="(2)"> <text>If the Agency recommends that the Commission deny a license, the Agency shall promptly provide the applicant with written notice of the:</text> <paragraph num="(a)"> <text>Recommendation for denial;</text> </paragraph> <paragraph num="(b)"> <text>Basis for the recommendation; and</text> </paragraph> <paragraph num="(c)"> <text>Applicant’s right to request a reconsideration meeting with the Agency.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An applicant may submit to the Agency a written request for a reconsideration meeting within 15 days of the date of the notice described in §B(2) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>If an applicant fails to timely submit a request under §B(3) of this regulation, the Commission may adopt as final the recommendation of the Agency.</text> </paragraph> <paragraph num="(5)"> <text>During a reconsideration meeting, an applicant may:</text> <paragraph num="(a)"> <text>Be represented by counsel; and</text> </paragraph> <paragraph num="(b)"> <text>Present evidence as to why the amusement gaming license should be granted;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If after the reconsideration meeting the applicant is dissatisfied with the recommendation of the Agency, the applicant may submit to the Commission, in writing:</text> <paragraph num="(a)"> <text>A request for hearing before the Commission on the recommendation of the Agency; and</text> </paragraph> <paragraph num="(b)"> <text>The applicant’s legal and factual bases for disagreeing with the recommendation of the Agency.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>An applicant may submit a hearing request to the Commission within 15 days of the date of the recommendation of the Agency after the reconsideration meeting.</text> </paragraph> <paragraph num="(8)"> <text>If an applicant fails to timely submit a hearing request under §B(6) of this Regulation, the Commission may adopt as final the recommendation of the Agency.</text> </paragraph> <paragraph num="(9)"> <text>A hearing request that complies with §B(6) of this regulation shall be the subject of a hearing before the Commission under COMAR 36.01.02.06, after which the Commission shall:</text> <paragraph num="(a)"> <text>Determine that the applicant is qualified and grant an amusement gaming license; or</text> </paragraph> <paragraph num="(b)"> <text>Determine that the applicant is not qualified or disqualified; and</text> <paragraph num="(i)"> <text>Deny the amusement gaming license; and</text> </paragraph> <paragraph num="(ii)"> <text>Prepare an order denying the amusement gaming license with a statement of the reasons and specific findings of fact.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(10)"> <text>The applicant shall have the burden to show by clear and convincing evidence it is qualified to hold an amusement gaming license.</text> </paragraph> <paragraph num="(11)"> <text>The Commission’s decision is final.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A Commission hearing shall be conducted in the manner specified in:</text> <paragraph num="(1)"> <text>State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>COMAR 36.01.02.06.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §§12-301 and 12-301.1; State Government Article, §§ 9-1B-01— 9-1B-02; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 1, 2017 (43:23 Md. R. 1281)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B, E, G amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D amended effective October 19, 2020 (47:21 Md. R. 905)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> <chapter num="04" heading="General Standards"> <regulation prefix="Regulation" num=".01" heading="General Standards."> <paragraph num="A."> <text>A skills-based amusement device is not legally operated if:</text> <paragraph num="(1)"> <text>Unless authorized under COMAR 36.08.03, the merchandise, prizes, tickets, tokens, or other objects awarded exceeds the minimal value;</text> </paragraph> <paragraph num="(2)"> <text>The device awards a cash prize or a prize that is readily convertible to cash;</text> </paragraph> <paragraph num="(3)"> <text>The outcome of the game is based on a preponderance of chance;</text> </paragraph> <paragraph num="(4)"> <text>The ability of any player to succeed at the game is impacted by the number or ratio of prior wins to prior losses of that device;</text> </paragraph> <paragraph num="(5)"> <text>The outcome of the game can be controlled by a source other than the player of the game;</text> </paragraph> <paragraph num="(6)"> <text>The success of any player is or may be determined by a chance event which cannot be altered by player actions;</text> </paragraph> <paragraph num="(7)"> <text>The ability of a player to succeed at the game is impacted by game features not visible or known to a reasonable player; or</text> </paragraph> <paragraph num="(8)"> <text>The ability of a player to succeed at the game is impacted by the exercise of skill that no reasonable player could exercise.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The individual merchandise, prizes, tickets, tokens, or other objects that are awarded by a skill-based amusement device may:</text> <paragraph num="(1)"> <text>Have a wholesale value that does not exceed the minimal value; and</text> </paragraph> <paragraph num="(2)"> <text>Be accumulated and exchanged for non-cash merchandise or prizes that do not exceed $599.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a registered skills-based device owner offers a device described in §A of this regulation, the Commission may take enforcement action as provided in Regulation .03 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Testing."> <paragraph num="A."> <text>The Commission may require testing of a prototype of a skills-based amusement device for:</text> <paragraph num="(1)"> <text>Overall operational integrity;</text> </paragraph> <paragraph num="(2)"> <text>Compliance with this subtitle; and</text> </paragraph> <paragraph num="(3)"> <text>Any other function that the Commission determines may be necessary to validate the proper functionality and performance of the device.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission may accept testing by:</text> <paragraph num="(1)"> <text>Commission staff; or</text> </paragraph> <paragraph num="(2)"> <text>A testing facility recognized by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The costs of testing required under this chapter shall be the responsibility of the licensee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Enforcement Action."> <paragraph num="A."> <text>The Commission may take an enforcement action if a registered skills-based amusement device owner fails to comply with this subtitle.</text> </paragraph> <paragraph num="B."> <text>The Commission may:</text> <paragraph num="(1)"> <text>Suspend a registered skills-based amusement device owner’s registration;</text> </paragraph> <paragraph num="(2)"> <text>Determine that the registered skills-based amusement device owner is no longer qualified to offer skills-based amusement devices in Maryland; or</text> </paragraph> <paragraph num="(3)"> <text>Disqualify the registered skills-based device owner from qualification for any other license, registration, or certification from the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A skills-based amusement device owner whose registration is suspended or found no longer qualified to offer skills-based amusement devices in Maryland shall:</text> <paragraph num="(1)"> <text>Remove its skills-based amusement devices from locations in Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Cease offering skills-based amusement devices in Maryland; or</text> </paragraph> <paragraph num="(3)"> <text>Take such action required by the Commission to come in compliance with this subtitle.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Law Article, §§12-301 and 12-301.1, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 1, 2017 (43:23 Md. R. 1281)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective April 27, 2026 (53:8 Md. R. 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation.03 adopted effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> </subtitle> <subtitle num="09" heading="Online Fantasy Competition"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This subtitle applies to fantasy competitions regulated by the Commission under State Government Article, §§9-1D-01—9-1D-05, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>This subtitle applies to fantasy competitions that are offered to individuals by means of a fantasy competition platform.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In addition to the terms defined in COMAR 36.01.01, in this chapter the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Beginner player” means a fantasy competition player who:</text> <paragraph num="(a)"> <text>Has entered fewer than 51 fantasy competitions offered by a single fantasy competition operator; and</text> </paragraph> <paragraph num="(b)"> <text>Is not a highly experienced player.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Entry fee” has the meaning stated in State Government Article, §9-1D-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>Fantasy Competition.</text> <paragraph num="(a)"> <text>“Fantasy competition” means any online fantasy or simulated game or contest such as fantasy sports, in which:</text> <paragraph num="(i)"> <text>Participants own, manage, or coach imaginary teams;</text> </paragraph> <paragraph num="(ii)"> <text>All prizes and awards offered to winning participants are established and made known to participants in advance of the game or contest;</text> </paragraph> <paragraph num="(iii)"> <text>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);</text> </paragraph> <paragraph num="(iv)"> <text>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;</text> </paragraph> <paragraph num="(v)"> <text>Players may pay an entry fee;</text> </paragraph> <paragraph num="(vi)"> <text>The operator offering the competition receives compensation for organizing the fantasy competition; and</text> </paragraph> <paragraph num="(vii)"> <text>Fantasy competition players compete against other fantasy competition players and not the operator.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Fantasy competition” does not include:</text> <paragraph num="(i)"> <text>Sports wagering under State Government Article, §§ 9-1E-01 et seq., Annotated Code of Maryland;</text> </paragraph> <paragraph num="(ii)"> <text>A fantasy competition where a player competes directly or only against another player’s fantasy lineup;</text> </paragraph> <paragraph num="(iii)"> <text>A wager in which a player chooses between two or more lineups, athletes, outcomes, or similar statistical groupings, and commonly referred to as pick’em;</text> </paragraph> <paragraph num="(iv)"> <text>A wager in which a fantasy competition operator sets a number for a statistic in a fantasy competition, and a player wagers that the actual result in the competition will be higher or lower than the number set by the operator and commonly referred to as an over-under wager or bet;</text> </paragraph> <paragraph num="(v)"> <text>A wager the involves two or more wagers combined into one wager an commonly referred to as a parlay; or</text> </paragraph> <paragraph num="(vi)"> <text>A wager on an individual action, statistic, occurrence, or non-occurrence which is determined during a fantasy competition and commonly referred to as a proposition wager or bet.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Fantasy competition operator”, or operator has the meaning stated in State Government Article, §9-1D-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Fantasy competition platform” means:</text> <paragraph num="(a)"> <text>Hardware and software used for a website, application, or other platform which is accessible via the internet or mobile, wireless, or similar communications technology that allows players to participate in fantasy competitions; or</text> </paragraph> <paragraph num="(b)"> <text>Hardware, software, firmware, communications technology, or other equipment that a registered fantasy competition operator uses to:</text> <paragraph num="(i)"> <text>Allow a player to participate in fantasy competitions;</text> </paragraph> <paragraph num="(ii)"> <text>Display the fantasy competition outcomes and other similar information necessary to facilitate fantasy competitions;</text> </paragraph> <paragraph num="(iii)"> <text>Review player accounts and generate financial reports;</text> </paragraph> <paragraph num="(iv)"> <text>Suspend a fantasy competition;</text> </paragraph> <paragraph num="(v)"> <text>Input outcomes for fantasy competitions; and</text> </paragraph> <paragraph num="(vi)"> <text>Set any configurable parameters.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Fantasy competition player”, or “player” means an individual who participates in a fantasy competition offered by an operator..</text> </paragraph> <paragraph num="(7)"> <text>“Fantasy contractor” means any person or entity who:</text> <paragraph num="(a)"> <text>Is registered to do business in the State;</text> </paragraph> <paragraph num="(b)"> <text>Operates in the State;</text> </paragraph> <paragraph num="(c)"> <text>Manages a fantasy competition platform;</text> </paragraph> <paragraph num="(d)"> <text>Works under a contract with a fantasy competition operator; and</text> </paragraph> <paragraph num="(e)"> <text>Has regular access to:</text> <paragraph num="(i)"> <text>Nonpublic portions of a fantasy competition operator’s system;</text> </paragraph> <paragraph num="(ii)"> <text>Information on an operator’s computer network that is not publicly available; or</text> </paragraph> <paragraph num="(iii)"> <text>An operator’s proprietary information that may affect the outcome of a competition.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(8)"> <text>“Highly experienced player” means a fantasy competition player who has:</text> <paragraph num="(a)"> <text>Entered more than 1,000 fantasy competitions offered by a single operator; or</text> </paragraph> <paragraph num="(b)"> <text>Won more than three fantasy competition prizes valued at $1,000 or more.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Location percentage” has the meaning stated in State Government Article §9-1D-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>“Minor” means any individual younger than 18 years old.</text> </paragraph> <paragraph num="(11)"> <text>“Player funds” means funds deposited by a fantasy competition player into an account to facilitate entry into a fantasy competition.</text> </paragraph> <paragraph num="(12)"> <text>“Private fantasy competition” means a fantasy sports competition that is only open to:</text> <paragraph num="(a)"> <text>Employees of an operator;</text> </paragraph> <paragraph num="(b)"> <text>Immediate family members of an employee of an operator; and</text> </paragraph> <paragraph num="(c)"> <text>Friends of an employee of an operator.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Prize” means anything of monetary value, including:</text> <paragraph num="(a)"> <text>Cash;</text> </paragraph> <paragraph num="(b)"> <text>Competition credits;</text> </paragraph> <paragraph num="(c)"> <text>Merchandise;</text> </paragraph> <paragraph num="(d)"> <text>Monetary equivalents, subject to the approval of the Commission; or</text> </paragraph> <paragraph num="(e)"> <text>Admission to another competition in which a prize may be awarded.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Proceeds” has the meaning stated in State Government Article, §9-1D-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(15)"> <text>“Prominently display” or “prominently displayed” means information or material that is placed directly, or via link, on one or more of the pages or dashboards or on similar conspicuously visual tools that are properly labeled and clearly accessible as approved by the Commission.</text> </paragraph> <paragraph num="(16)"> <text>“Scripts” means commands that a computer program can execute to automate processes on a fantasy competition platform created by:</text> <paragraph num="(a)"> <text>A fantasy competition player; or</text> </paragraph> <paragraph num="(b)"> <text>A third party for use by a fantasy competition player.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“Segregated account” means a financial account that separates funds owned by a fantasy player from the operational funds of an operator.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1D-01, 9-1D-02, 9-1D-03, and 9-1D-05, Annotated Code of Maryland; Ch. 853, Acts of 2018</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 14, 2019 (46:1 Md. R. 13)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11A amended effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective October 7, 2019 (46:20 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted as an emergency provision under a new chapter, General, effective December 16, 2021 (49:3 Md. R. 137); adopted permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended and recodified from COMAR 36.09.01.01 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> <chapter num="02" heading="Registration and Enforcement"> <regulation prefix="Regulation" num=".01" heading="Application for Registration."> <paragraph num="A."> <text>Unless an operator is registered with the Commission, the operator may not offer a fantasy competition in the State.</text> </paragraph> <paragraph num="B."> <text>An operator seeking to offer a fantasy competition in the State shall request registration with the Commission by submitting a registration request in the manner specified by the Commission.</text> </paragraph> <paragraph num="C."> <text>A request for registration shall include:</text> <paragraph num="(1)"> <text>The name and principal address of the operator;</text> </paragraph> <paragraph num="(2)"> <text>The name and address of each fantasy competition contractor, if applicable;</text> </paragraph> <paragraph num="(3)"> <text>The name and address of the operator’s resident agent in the State;</text> </paragraph> <paragraph num="(4)"> <text>The name and address of the fantasy competition contractor’s resident agent in the State, if applicable;</text> </paragraph> <paragraph num="(5)"> <text>A point of contact for the operator and each named fantasy competition contractor;</text> </paragraph> </paragraph> <paragraph num="D."> <text>If information in the registration application changes the operator shall notify the Commission within 10 work days after the change occurs.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Approval of a Fantasy Competition."> <paragraph num="A."> <text>For each fantasy competition to be offered by an operator, the competition’s rules as required under Regulation .03 of this chapter shall be approved by the Commission.</text> </paragraph> <paragraph num="B."> <text>An operator shall ensure that Agency staff may access the fantasy competition platform to:</text> <paragraph num="(1)"> <text>Test the fantasy competition offering;</text> </paragraph> <paragraph num="(2)"> <text>Verify that the fantasy competition’s terms, instructions, and rules are:</text> <paragraph num="(a)"> <text>Consistent with applicable laws and Agency regulations;</text> </paragraph> <paragraph num="(b)"> <text>Consistent with State Government Article, Title 9-1D, Annotated Code of Maryland and this subtitle; and</text> </paragraph> <paragraph num="(c)"> <text>Prominently displayed;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Verify that the fantasy competition operates in compliance with State Government Article, Title 9, Subtitle 1D, Annotated Code of Maryland and this subtitle; and</text> </paragraph> <paragraph num="(4)"> <text>Monitor the fantasy competition to verify ongoing compliance with State Government Article, § 9-1D-01(d), Annotated Code of Maryland and this subtitle.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An operator shall provide evidence satisfactory to the Commission that it has established and will implement procedures to:</text> <paragraph num="(1)"> <text>Restrict fantasy competition play as required under COMAR 36.09.03.03;</text> </paragraph> <paragraph num="(2)"> <text>Comply with financial standards as required under COMAR 36.09.04;</text> </paragraph> <paragraph num="(3)"> <text>Comply with its Agency-approved responsible gaming plan as required under COMAR 36.09.05; and</text> </paragraph> <paragraph num="(4)"> <text>Any additional information required by the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If the Commission determines that an operator’s offering is not a fantasy competition then that offering may not be provided in the State by the operator.</text> </paragraph> <paragraph num="E."> <text>A determination under this regulation is final and not appealable.</text> </paragraph> <paragraph num="F."> <text>The Commission may maintain a publicly available list of approved registered fantasy competition operators.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="New or Modified Fantasy Competition Rules."> <paragraph num="A."> <text>New Fantasy Competition.</text> <paragraph num="(1)"> <text>If a registered fantasy competition operator seeks to offer a fantasy competition that the Commission has not yet approved, the operator shall submit to the Commission the information about the offering required under COMAR 36.09.02.</text> </paragraph> <paragraph num="(2)"> <text>An operator may not offer a fantasy competition until the Commission has approved the offering.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Modifications.</text> <paragraph num="(1)"> <text>As provided in §B(2) of this regulation, a fantasy competition operator may offer a modified fantasy competition without submitting a new set of rules to the Commission.</text> </paragraph> <paragraph num="(2)"> <text>Minor modifications to an approved fantasy competition are permitted and may include:</text> <paragraph num="(a)"> <text>A previously offered competition that is in the same format;</text> </paragraph> <paragraph num="(b)"> <text>The prize value or entry fee of for the fantasy competition;</text> </paragraph> <paragraph num="(c)"> <text>The number of entries permitted;</text> </paragraph> <paragraph num="(d)"> <text>Adjustments to a scoring system related to number of points a player may obtain for a particular event; and</text> </paragraph> <paragraph num="(e)"> <text>Adjustments to a salary cap or budget related to the fantasy team a player creates.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Registration Fee."> <text>An operator shall pay the Commission a nonrefundable registration fee of $1,000 with the operator’s registration application.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Renewal Requirements."> <paragraph num="A."> <text>Unless a registration is renewed, an operator’s registration expires 1 year from the last date of registration.</text> </paragraph> <paragraph num="B."> <text>Upon receipt of an invoice from the Commission for renewal, an operator shall pay the non-refundable renewal fee of $1,000 to continue conducting fantasy competitions in the State.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Enforcement Action."> <paragraph num="A."> <text>The Commission may take enforcement action against an operator for noncompliance with State Government Article, § 9-1D-01(d), Annotated Code of Maryland or this subtitle.</text> </paragraph> <paragraph num="B."> <text>Enforcement action may include:</text> <paragraph num="(1)"> <text>Suspension of an operator’s registration; or</text> </paragraph> <paragraph num="(2)"> <text>Termination of an operator’s registration.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An operator whose registration is suspended or terminated shall:</text> <paragraph num="(1)"> <text>Cease offering fantasy competitions in the State; and</text> </paragraph> <paragraph num="(2)"> <text>Take action directed by the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Commission may consider an enforcement action taken under this regulation when evaluating the operator’s qualification for a license, registration or certification issued by the Commission.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1D-01, 9-1D-03, 9-1D-04, and 9-1D-05, Annotated Code of Maryland; Ch. 853, Acts of 2018</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended and recodified from COMAR 36.09.01.12 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulations .02—.04 adopted as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); adopted permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> <chapter num="03" heading="General Standards and Prohibitions"> <regulation prefix="Regulation" num=".01" heading="Individuals Affiliated with the Agency Prohibited from Fantasy Competition Play."> <text>Participation in a fantasy competition is prohibited for:</text> <paragraph num="A."> <text>An individual under the age of 18;</text> </paragraph> <paragraph num="B."> <text>A Commission member;</text> </paragraph> <paragraph num="C."> <text>An employee of the Agency;</text> </paragraph> <paragraph num="D."> <text>An individual who lives in the same principal residence as a Commission member or an employee of the Agency and is the member’s, or employee’s:</text> <paragraph num="(1)"> <text>Spouse;</text> </paragraph> <paragraph num="(2)"> <text>Child;</text> </paragraph> <paragraph num="(3)"> <text>Sibling; or</text> </paragraph> <paragraph num="(4)"> <text>Parent or parent-in-law; or</text> </paragraph> </paragraph> <paragraph num="E."> <text>An individual who has under COMAR 36.09.05.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Individuals Affiliated with Operators Prohibited from Fantasy Competition Play."> <paragraph num="A."> <text>Except as provided in §B of this regulation an employee, principal, officer, director of an operator, a fantasy competition contractor, or a member of that individual’s immediate family, is prohibited from participating in a fantasy competition offered by that operator.</text> </paragraph> <paragraph num="B."> <text>An affiliated individual may participate in a fantasy competition if:</text> <paragraph num="(1)"> <text>Participation is for testing purposes; or</text> </paragraph> <paragraph num="(2)"> <text>The competition is a private fantasy competition.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Athletes and Affiliates Prohibited from Fantasy Competition Play."> <paragraph num="A."> <text>An athlete, sports agent, team employee, handler, referee, or league official, or a member of the individual’s immediate family, is prohibited from participating in a fantasy competition that is based on an underlying sporting event in which the individual is affiliated.</text> </paragraph> <paragraph num="B."> <text>An athlete, sports agent, team employee, handler, referee, or league official, or a member of that individual’s immediate family, may not enter fantasy competitions based on underlying sporting events in which the individual is a participant through another person as a proxy.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Player Protections."> <paragraph num="A."> <text>Scripts.</text> <paragraph num="(1)"> <text>A fantasy competition operator may not permit the use of a script on a platform if the script would allow a player to gain a competitive advantage by:</text> <paragraph num="(a)"> <text>Facilitating changes in many lineups at one time;</text> </paragraph> <paragraph num="(b)"> <text>Facilitating use of a commercial product designed to identify advantageous game strategies;</text> </paragraph> <paragraph num="(c)"> <text>Submitting entry fees or adjusting the athletes selected by a fantasy competition player; or</text> </paragraph> <paragraph num="(d)"> <text>Gathering information about the performance of others for the purpose of identifying or entering competitions against other less successful fantasy competition players.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Scripts shall be available to all fantasy competition players by incorporation as a game feature or prominently displayed.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Beginner Games and Identification of Highly Experienced Players.</text> <paragraph num="(1)"> <text>An operator may offer fantasy competitions that are limited to beginner players and exclude highly experienced players.</text> </paragraph> <paragraph num="(2)"> <text>An operator shall prominently indicate that a highly experienced player is participating in a fantasy competition by attaching a symbol to the username of a highly experienced player.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Fantasy Competition Entries. An operator shall identify the number of entries a fantasy competition player may submit for each fantasy competition.</text> </paragraph> <paragraph num="D."> <text>Limit on Number of Accounts. An operator may not permit a player to establish more than one account.</text> </paragraph> <paragraph num="E."> <text>Disputes. An operator shall provide a mechanism for a player to raise a dispute with an operator.</text> </paragraph> <paragraph num="F."> <text>Data. An operator shall prominently display the source of the data utilized in determining results.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Prohibition on Fantasy Competitions Based on Amateur Sports."> <text>An operator may not offer a fantasy competition based on a sporting event featuring amateur athletes who are primarily under 18 years old.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Prohibition on Advertising."> <text>Except for professional athletes and professional sports, an operator’s advertisement may not depict:</text> <paragraph num="A."> <text>Minors;</text> </paragraph> <paragraph num="B."> <text>Students; or</text> </paragraph> <paragraph num="C."> <text>Schools or colleges.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1D-01, 9-1D-03, 9-1D-04, and 9-1D-05, Annotated Code of Maryland; Ch. 853, Acts of 2018</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended and recodified from COMAR 36.09.01.02 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended and recodified from COMAR 36.09.01.03 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended and recodified from COMAR 36.09.01.04 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 recodified from COMAR 36.09.01.05 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended and recodified from COMAR 36.09.01.10 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 recodified from COMAR 36.09.01.13 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 recodified from COMAR 36.09.01.13 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Chapter revise effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> <chapter num="04" heading="Financial Standards"> <regulation prefix="Regulation" num=".01" heading="Financial Account Protections."> <paragraph num="A."> <text>An operator shall hold a fantasy competition player’s funds:</text> <paragraph num="(1)"> <text>In a segregated account that separates player funds from the operator’s operational funds; or</text> </paragraph> <paragraph num="(2)"> <text>In a special-purpose, segregated account that is maintained and controlled by a properly constituted corporate entity that:</text> <paragraph num="(a)"> <text>Is not the fantasy competition operator;</text> </paragraph> <paragraph num="(b)"> <text>Has a governing board that includes one or more corporate directors who are independent of the operator and of any corporation related to or controlled by the operator;</text> </paragraph> <paragraph num="(c)"> <text>Requires a unanimous vote of all corporate directors to file for bankruptcy;</text> </paragraph> <paragraph num="(d)"> <text>Has articles of incorporation that prohibit commingling of fantasy competition player funds with those of the operator, except as necessary to reconcile the accounts of fantasy competition players with sums owed to the operator by those fantasy competition players;</text> </paragraph> <paragraph num="(e)"> <text>Is restricted from incurring debt other than to fantasy competition players pursuant to the operator’s rules governing the accounts of its fantasy competition players;</text> </paragraph> <paragraph num="(f)"> <text>Is restricted from taking on obligations of the operator other than obligations to its fantasy competition players pursuant to the operator’s rules governing the accounts of its fantasy competition players; and</text> </paragraph> <paragraph num="(g)"> <text>Other than a special purpose corporate entity established by another operator that meets the requirements of this subtitle, may not dissolve, merge, or consolidate with another company while there are unsatisfied obligations to fantasy competition players.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>An operator shall comply with all applicable State and federal requirements for data security.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Limits on Deposits."> <paragraph num="A."> <text>This regulation does not apply to season-long fantasy competition.</text> </paragraph> <paragraph num="B."> <text>Except as provided in §C of this regulation, a fantasy competition player may not deposit more than $5,000 in a single calendar month with an operator.</text> </paragraph> <paragraph num="C."> <text>A player may request an operator to temporarily or permanently increase the player’s deposit limit above $5,000 per calendar month if:</text> <paragraph num="(1)"> <text>Procedures for considering a request from a fantasy competition player to increase a deposit level include evaluation of information, including evidence of income or assets, sufficient to confirm the financial ability of a player to afford losses which may result from fantasy competition play at the deposit level requested by the player; and</text> </paragraph> <paragraph num="(2)"> <text>After the operator approves a player’s temporary or permanent deposit level increase, the player undergoes an annual evaluation by the operator of information sufficient to confirm the continued financial ability of the player to afford losses that may result from fantasy competition play at the increased deposit level.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Prohibition on Extension of Credit."> <text>A fantasy competition operator may not extend credit to a fantasy competition player.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Financial Auditing."> <paragraph num="A."> <text>An operator that generates gross annual revenues of $250,000 or more shall ensure that a financial audit of its fantasy competition operations is performed annually by a certified public accountant.</text> </paragraph> <paragraph num="B."> <text>The certified public accountant that conducts the financial audit shall:</text> <paragraph num="(1)"> <text>Comply with generally accepted accounting principles; and</text> </paragraph> <paragraph num="(2)"> <text>Submit the financial audit report to the Commission within 180 days after the operator’s fiscal year end.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Auditor Exception.</text> <paragraph num="(1)"> <text>The same certified public accountant may not perform more than five consecutive financial audits for a fantasy competition operator unless:</text> <paragraph num="(a)"> <text>The fantasy competition operator requests and obtains preapproval of the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>A different audit partner manages the audit after 5 years.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If a different audit partner cannot be assigned, a fantasy competition operator shall advise the Agency prior to the beginning of the audit.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Nothing in this regulation precludes the Commission’s authority to require a fantasy competition operator to obtain more than one financial audit annually and provide the Commission with the audit report.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Proceeds; Tax."> <paragraph num="A."> <text>An operator shall retain 85 percent of its fantasy competition proceeds and pay the remaining 15 percent to the Commission.</text> </paragraph> <paragraph num="B."> <text>A fantasy competition operator shall submit its 15 percent share of proceeds and tax return to the Commission quarterly:</text> <paragraph num="(1)"> <text>No later than the 15th day of the month that follow the end of each quarter;</text> </paragraph> <paragraph num="(2)"> <text>For the tax return, by email as designated by the Commission; and</text> </paragraph> <paragraph num="(3)"> <text>For the tax, by wire transfer.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If an operator fails to submit its quarterly tax and a properly completed tax return to the Commission by the end of the month following the end of a quarter, the Commission may suspend the operator’s registration.</text> </paragraph> <paragraph num="D."> <text>If the Commission suspends an operator’s registration under §C of this regulation, the Commission may lift the suspension after the operator submits the tax return and the tax payment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Reports."> <text>For a fantasy competition prize paid that is $600 or greater, the operator shall:</text> <paragraph num="A."> <text>Report the prize to the Comptroller of Maryland and the Internal Revenue Service in accordance with applicable tax laws; and.</text> </paragraph> <paragraph num="B."> <text>Provide the player a 1099 MISC. tax form.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Tax Laws and Disclosures."> <paragraph num="A."> <text>A fantasy competition operator shall comply with all applicable tax laws and regulations.</text> </paragraph> <paragraph num="B."> <text>A fantasy competition operator shall provide a player with notice of State and federal tax reporting and withholding requirements:</text> <paragraph num="(1)"> <text>Before a fantasy competition begins; and</text> </paragraph> <paragraph num="(2)"> <text>When a player receives winnings in excess of $600.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1D-01, 9-1D-02, 9-1D-03, and 9-1D-05, Annotated Code of Maryland; Ch. 853, Acts of 2018</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended and recodified from COMAR 36.09.01.11 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended and recodified from COMAR 36.09.01.07 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended and recodified from COMAR 36.09.01.08 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended and recodified from COMAR 36.09.01.13 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 adopted as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); adopted permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05A, B amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05C, D adopted effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation.06 adopted as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); adopted permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 recodified from COMAR 36.09.01.14 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07B amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> <chapter num="05" heading="Responsible Gambling"> <regulation prefix="Regulation" num=".01" heading="Direct Exclusion Through Fantasy Competition Operator."> <paragraph num="A."> <text>An individual may request exclusion from fantasy competition play by submitting to the operator a self-exclusion request using a self-exclusion tool provided by the operator on its website.</text> </paragraph> <paragraph num="B."> <text>An operator shall implement and prominently display procedures for players to self-exclude themselves.</text> </paragraph> <paragraph num="C."> <text>Self-excluded persons may not collect a prize or recover a loss.</text> </paragraph> <paragraph num="D."> <text>A request for self-exclusion from a fantasy competition may result in exclusion from other gaming platforms that the operator offers.</text> </paragraph> <paragraph num="E."> <text>A request for exclusion submitted to an operator:</text> <paragraph num="(1)"> <text>Is not a request to be placed on the Commission’s Voluntary Exclusion List for participating in fantasy competitions under COMAR 36.01.03;</text> </paragraph> <paragraph num="(2)"> <text>Will not result in inclusion on the Commission's Voluntary Exclusion List for participating in fantasy competitions; and</text> </paragraph> <paragraph num="(3)"> <text>Is not administered or maintained by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Responsible Gaming Plan."> <paragraph num="A."> <text>An operator shall establish a responsible gaming plan that includes at least the following elements:</text> <paragraph num="(1)"> <text>Goals;</text> </paragraph> <paragraph num="(2)"> <text>Procedures and deadlines for implementation;</text> </paragraph> <paragraph num="(3)"> <text>Identification of personnel responsible for implementation;</text> </paragraph> <paragraph num="(4)"> <text>Responsibilities of personnel identified as responsible for implementation;</text> </paragraph> <paragraph num="(5)"> <text>Training for personnel on problem gambling and identifying compulsive play;</text> </paragraph> <paragraph num="(6)"> <text>Means of educating fantasy competition players about:</text> <paragraph num="(a)"> <text>Problem gambling, including compulsive play; and</text> </paragraph> <paragraph num="(b)"> <text>Problem gambling treatment resources, including treatment and prevention programs;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Placement of responsible gambling awareness materials on the fantasy competition platform; and</text> </paragraph> <paragraph num="(8)"> <text>Any other element required by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An operator shall submit to the Commission the responsible gaming plan required under §A of this regulation for review and approval.</text> </paragraph> <paragraph num="C."> <text>An operator shall submit any amendments to a responsible gaming plan to the Commission prior to implementation.</text> </paragraph> <paragraph num="D."> <text>An operator shall submit to the Commission an annual report describing the operation of the responsible gaming plan.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Fantasy Competition Operator Responsibilities."> <paragraph num="A."> <text>An operator shall:</text> <paragraph num="(1)"> <text>Prevent the participation in fantasy competitions by individuals who have self-excluded themselves from participating in a fantasy competition; and</text> </paragraph> <paragraph num="(2)"> <text>Train employees on compulsive play.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If an individual is directly self-excluded or on the Commission’s Voluntary Exclusion List for fantasy competition play, an operator may not:</text> <paragraph num="(1)"> <text>Market a fantasy competition by phone, text, email; or</text> </paragraph> <paragraph num="(2)"> <text>Knowingly direct any form of individually targeted advertisement or marketing material to the individual.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1D-01, 9-1D-02, 9-1D-03, and 9-1D-05, Annotated Code of Maryland; Ch. 853, Acts of 2018</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended and recodified from COMAR 36.09.01.06 as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); amended permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 adopted as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); adopted permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 adopted as an emergency provision effective December 16, 2021 (49:3 Md. R. 137); adopted permanently effective May 30, 2022 (49:11 Md. R. 610)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> </subtitle> <subtitle num="10" heading="Sports Wagering Provisions"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This subtitle applies to the State’s Sports Wagering Program.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In addition to the terms defined in State Government Article, §§9-1A-01 and 9-1E-01, Annotated Code of Maryland, and COMAR 36.01, 36.03, and 36.04, which have the same meanings in this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“ACH” means the Automated Clearing House, which is a network that connects all banking and financial institutions within the United States.</text> </paragraph> <paragraph num="(2)"> <text>“Affiliate: means a person that directly, or indirectly through one or more intermediaries, owns, controls, is controlled by, or is under common ownership or control with another person.</text> </paragraph> <paragraph num="(3)"> <text>“Age and identity verification” means a method, system, or device used by a sports wagering licensee to verify the bettors age and the bettors identity.</text> </paragraph> <paragraph num="(4)"> <text>“AML” means Anti-Money Laundering.</text> </paragraph> <paragraph num="(5)"> <text>“Applicant” means a person who, as required under State Government Article, Title 9, Subtitle 1E, submits to the Commission an application for a license or for qualification or renewal of a license.</text> </paragraph> <paragraph num="(6)"> <text>“Application” means the forms, information, documentation, and assurances submitted by an applicant or licensee to obtain a license or for qualification or renewal of a license.</text> </paragraph> <paragraph num="(7)"> <text>“Associated equipment” means any equipment or mechanical, electromechanical or electronic contrivance, component or machine used in connection with sports wagering, including computerized systems for controlling and monitoring mobile sports wagering.</text> </paragraph> <paragraph num="(8)"> <text>“Award” means the act of the SWARC approving the application of an applicant that meets the requirements for licensure under State Government Article Title 9, Subtitle 1E, Annotated Code of Maryland, for a sports wagering license, which authorizes the Commission to issue the sports wagering license that is necessary for the applicant to commence sports wagering operations.</text> </paragraph> <paragraph num="(9)"> <text>“Awardee” means a qualified applicant to which SWARC has awarded a license.</text> </paragraph> <paragraph num="(10)"> <text>“Beneficial owner” means a person that holds at least a 5 percent interest in an applicant for, or holder of, a license awarded or issued under this subtitle, that is evidenced by:</text> <paragraph num="(a)"> <text>Record ownership;</text> </paragraph> <paragraph num="(b)"> <text>Stock or other ownership in an entity in a chain of parent and subsidiary, or affiliate entities, any one of which participates in the capital or profits of a sports wagering applicant or licensee;</text> </paragraph> <paragraph num="(c)"> <text>An interest that entitles a person to benefit substantially and is equivalent to ownership by an agreement, relationship, or other arrangement; or</text> </paragraph> <paragraph num="(d)"> <text>Compensation of a person, in any financial, legal, or beneficial form, if the compensation is based on revenue generated by a sports wagering licensee, including a percentage share on, or any compensation that is tied to, the performance of a sports wagering licensee’s sports wagering operations.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>“Bettor” means a person who places a sports wager.</text> </paragraph> <paragraph num="(12)"> <text>“Books and records” means documents pertaining to, prepared by, or generated by a sports wagering licensee, regardless of the medium through which the record is generated or maintained, including all general ledger records, subsidiary records and ledgers, computer-generated data, forms, documents, internal audit reports and work papers, correspondence, and personnel records.</text> </paragraph> <paragraph num="(13)"> <text>“Cancelled wager” means a wager that has been cancelled by a sports wagering licensee due to an event or circumstance that prevents completion of the wager or causes the wager to be nonredeemable.</text> </paragraph> <paragraph num="(14)"> <text>“Cheat or cheating” means to act alone, facilitate, deceive, or conspire or collude with another person, to improve the chance of winning a wager or to alter the outcome of a wager, by:</text> <paragraph num="(a)"> <text>Using non-public information in placing, increasing, decreasing, or cancelling a wager;</text> </paragraph> <paragraph num="(b)"> <text>Altering or misrepresenting the outcome of a sporting event on which a wager has been placed;</text> </paragraph> <paragraph num="(c)"> <text>Claiming or collecting winnings on a wager that the person did not win or that the person was not otherwise authorized to claim or collect;</text> </paragraph> <paragraph num="(d)"> <text>Manipulating, altering, or interfering with sports wagering equipment, associated equipment, communication technology, or client software with the intent to affect or alter the outcome of a sporting event;</text> </paragraph> <paragraph num="(e)"> <text>Interfering with or influencing a participant in a sporting event with the intent to alter an outcome of, or an individual’s performance in, a sporting event;</text> </paragraph> <paragraph num="(f)"> <text>Any conduct the Commission identifies as a means of conducting organized crime through sports wagering; or</text> </paragraph> <paragraph num="(g)"> <text>Any other conduct the Commission identifies as an abuse of the operation and administration of sports wagering as cheating in regulations promulgated under State Government Article, Title 9, Subtitles 1A or 1E, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>“Client software” means any software or application installed or operating on a bettor’s device for the purpose of interacting with a sports wagering platform and conducting online sports wagering.</text> </paragraph> <paragraph num="(16)"> <text>“Communication technology” means the methods and components used by a sports wagering licensee to facilitate the transmission of information related to sports wagering, including a:</text> <paragraph num="(a)"> <text>Transmitting system;</text> </paragraph> <paragraph num="(b)"> <text>Receiving system; and</text> </paragraph> <paragraph num="(c)"> <text>Wire, cable, radio, microwave, optic, or computer data network.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“Controlling entity” means an entity that possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract, by beneficial ownership, or otherwise.</text> </paragraph> <paragraph num="(18)"> <text>“Data information center” means the physical location owned or leased by a sports wagering facility licensee, mobile sports wagering licensee, or online sports wagering licensee designated as the location where the licensees electronic data is stored, processed, or otherwise maintained.</text> </paragraph> <paragraph num="(19)"> <text>“Day” means a calendar day.</text> </paragraph> <paragraph num="(20)"> <text>“Dormant account” means a sports wagering bettor account that has not had any login or wagering activity for a period of 3 years.</text> </paragraph> <paragraph num="(21)"> <text>“Electronic bingo or electronic tip jar machine” has the same meaning as instant bingo machine stated in COMAR 36.07.01.02.</text> </paragraph> <paragraph num="(22)"> <text>“Entrant” means a participant in a sporting event upon which a wager may be placed as to the participants finishing position or performance in the sporting event.</text> </paragraph> <paragraph num="(23)"> <text>“Event number” means a set of alpha or numeric characters that correspond to a sporting event or an event ancillary to a sporting event.</text> </paragraph> <paragraph num="(24)"> <text>“Exchange wager” means a wager in which a bettor wagers with or against another bettor through a sports wagering licensee.</text> </paragraph> <paragraph num="(25)"> <text>“Excluded individual” means an individual who has been:</text> <paragraph num="(a)"> <text>Placed on the Commissions voluntary exclusion list under COMAR 36.01.03 and 36.10.10; or</text> </paragraph> <paragraph num="(b)"> <text>Placed on the Commissions mandatory exclusion list under 36.10.11.</text> </paragraph> </paragraph> <paragraph num="(26)"> <text>“Global risk management” means management, consultation, instruction, or transmission of information relating to sports wagering by a sports wagering licensee who holds a license to conduct sports wagering in another jurisdiction, to a sports wagering licensee in the State, including:</text> <paragraph num="(a)"> <text>Managing risks associated with sports wagering involving a sporting event for which a wager may be accepted;</text> </paragraph> <paragraph num="(b)"> <text>Setting or changing of available bets or wagers;</text> </paragraph> <paragraph num="(c)"> <text>Establishing cutoff times for bets or wagers;</text> </paragraph> <paragraph num="(d)"> <text>Accepting or rejecting of bets or wagers;</text> </paragraph> <paragraph num="(e)"> <text>Pooling or laying off of bets or wagers; or</text> </paragraph> <paragraph num="(f)"> <text>Setting lines, point spreads, odds, or other activity relating to betting or wagering.</text> </paragraph> </paragraph> <paragraph num="(27)"> <text>“Gross pool” means the total amount of money wagered on the outcome of a particular event.</text> </paragraph> <paragraph num="(28)"> <text>“Holding company” means a principal or principal entity that directly or indirectly owns:</text> <paragraph num="(a)"> <text>At least 5 percent of the stock, equity interest, or other voting security of a sports wagering applicant or licensee; or</text> </paragraph> <paragraph num="(b)"> <text>Through an interest in one or more subsidiaries, a power, right, or security of a sports wagering applicant or licensee.</text> </paragraph> </paragraph> <paragraph num="(29)"> <text>“House rules” means a sports wagering licensees Commission-approved requirements for its sports wagering operation that are in addition to the Commissions regulations, and that shall include:</text> <paragraph num="(a)"> <text>A method for calculating and paying winning wagers;</text> </paragraph> <paragraph num="(b)"> <text>A process for handling incorrectly posted events, odds, wagers, or results;</text> </paragraph> <paragraph num="(c)"> <text>An effect of sporting event schedule changes;</text> </paragraph> <paragraph num="(d)"> <text>A method of notifying patrons of odds or proposition changes;</text> </paragraph> <paragraph num="(e)"> <text>A procedure for accepting wagers other than those processes posted by the sports wagering licensee;</text> </paragraph> <paragraph num="(f)"> <text>A method of notifying bettors that a winning ticket expires 182 days after the wager is settled;</text> </paragraph> <paragraph num="(g)"> <text>If the sports wagering platform allows the bettor to place a wager that pays more than the stated maximum amount, the licensees policy and methods for:</text> <paragraph num="(i)"> <text>Limiting the maximum amount a bettor may win on a wager; and</text> </paragraph> <paragraph num="(ii)"> <text>Precluding a bettor from, or allowing a bettor to, collect, a payout in excess of the purported winnings;</text> </paragraph> </paragraph> <paragraph num="(h)"> <text>A method of contacting the sports wagering licensee with questions and complaints;</text> </paragraph> <paragraph num="(i)"> <text>A method of preventing an excluded individual from participating in a sports wagering activity;</text> </paragraph> <paragraph num="(j)"> <text>A method of funding a sports wager; and</text> </paragraph> <paragraph num="(k)"> <text>Any other item required by the Commission to be addressed in the licensee’s house rules.</text> </paragraph> </paragraph> <paragraph num="(30)"> <text>“Independent certified testing laboratory” means a person engaged in the testing and verification of sports wagering equipment and the equipment, systems, and software utilized to collect, monitor, interpret, analyze, authorize, issue, redeem, report, and audit data with regard to a sports wagering activity that:</text> <paragraph num="(a)"> <text>Holds a certificate in good standing for compliance with:</text> <paragraph num="(i)"> <text>International Organization for Standardization #17025 — General Requirements for the Competence of Testing and Calibration Laboratories; and</text> </paragraph> <paragraph num="(ii)"> <text>International Organization for Standardization #17020 — General Criteria for the Operation of Various Types of Bodies Performing Inspections;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Has performed testing and certification of sport wagering equipment, systems, and software on behalf of a state within the United States for a period of 5 or more years; and</text> </paragraph> <paragraph num="(c)"> <text>Has been approved by the Commission to test and certify equipment, systems, and software on its behalf.</text> </paragraph> </paragraph> <paragraph num="(31)"> <text>“Independent evaluator” means a person that:</text> <paragraph num="(a)"> <text>Independently evaluates and rates sports wagering content provided by a sports wagering expert, sports wagering influencer, or content partner; or</text> </paragraph> <paragraph num="(b)"> <text>Independently evaluates, audits, or rates the accuracy of predictions for sporting event outcomes.</text> </paragraph> </paragraph> <paragraph num="(32)"> <text>“Indirect interest” means an interest, claim, right, legal share, or other financial stake in a person that is determined by the Commission to exist by virtue of a financial or other interest in another person.</text> </paragraph> <paragraph num="(33)"> <text>“In-game wager and In-play bet” mean a wager placed on the outcome of a sporting event after the event has started.</text> </paragraph> <paragraph num="(34)"> <text>“Institutional investor” means:</text> <paragraph num="(a)"> <text>A retirement fund administered by a public agency for the exclusive benefit of federal, State or local public employees;</text> </paragraph> <paragraph num="(b)"> <text>An investment company registered under §8 of the Investment Company Act of 1940 (15 U.S.C. §80a-8);</text> </paragraph> <paragraph num="(c)"> <text>A collective investment trust organized by a bank under Part 9 of the rules of the Comptroller of the Currency (12 CFR §9.18);</text> </paragraph> <paragraph num="(d)"> <text>A closed end investment trust registered with the U.S. Securities and Exchange Commission;</text> </paragraph> <paragraph num="(e)"> <text>A chartered or licensed life insurance company;</text> </paragraph> <paragraph num="(f)"> <text>A property and casualty insurance company;</text> </paragraph> <paragraph num="(g)"> <text>A banking or other chartered or licensed lending institution;</text> </paragraph> <paragraph num="(h)"> <text>An investment advisor registered under the Investment Advisors Act of 1940 (15 U.S.C. §§80b-1—80b-21); or</text> </paragraph> <paragraph num="(i)"> <text>Any other person registered in any foreign jurisdiction and regulated in accordance with a statue of any foreign jurisdiction that the Commission determines to be substantially similar to that regulated by the Investment Company Act of 1940 or the Investment Advisors Act of 1940.</text> </paragraph> </paragraph> <paragraph num="(35)"> <text>“Integrity monitoring” means the observation of sports wagering to identify unusual wagering activity or other suspicious sports wagering activity that may be reported to law enforcement or an organization charged with oversight or monitoring of a sporting event.</text> </paragraph> <paragraph num="(36)"> <text>“Issue or issuance” means the Commissions final act of authorizing an applicant to legally exercise the authority of, or commence activity under, the scope of the license for which it applied.</text> </paragraph> <paragraph num="(37)"> <text>“Kiosk” means a Commission-approved device that may be used by a bettor to place a wager and may be used to redeem a winning wager.</text> </paragraph> <paragraph num="(38)"> <text>“Layoff wager” means a wager placed by a sports wagering operator with another sports wagering operator for the purpose of offsetting bettor wagers.</text> </paragraph> <paragraph num="(39)"> <text>“Licensee” means an applicant who has been issued a license required under this subtitle.</text> </paragraph> <paragraph num="(40)"> <text>“Mandatory exclusion list” means a list maintained by the Commission under State Government Article, §§9-1A-24 and 9-1E-11, Annotated Code of Maryland, that identifies an individual who is to be excluded or ejected from:</text> <paragraph num="(a)"> <text>A sports wagering facility; or</text> </paragraph> <paragraph num="(b)"> <text>Participating in online sports wagering.</text> </paragraph> </paragraph> <paragraph num="(41)"> <text>“Maryland State Fair Society” means the holder of a license issued to the holder by the State Racing Commission allowing the holder to have a race that meets specified conditions under Business Regulation Article, §11524, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(42)"> <text>” Mobile sports wagering licensee” means a sports wagering licensee who is authorized to conduct and operate online sports wagering.</text> </paragraph> <paragraph num="(43)"> <text>“Maximum wager limit” means the largest wager that can be wagered on a single sports wager.</text> </paragraph> <paragraph num="(44)"> <text>“Money line wager” means a wager on a participant winning a sporting event without the use of the point spread.</text> </paragraph> <paragraph num="(45)"> <text>“Multi-factor authentication” means a procedure that requires more than one method to verify a bettors identity through a combination of two or more independent credentials, including:</text> <paragraph num="(a)"> <text>Information known only to the bettor, such as a password, pattern or answers to challenge questions; and</text> </paragraph> <paragraph num="(b)"> <text>A bettor’s biometric data, such as fingerprints, facial or voice recognition, to the extent this data does not violate privacy laws.</text> </paragraph> </paragraph> <paragraph num="(46)"> <text>“Non-wagering employee” means an individual who is:</text> <paragraph num="(a)"> <text>Employed or is seeking to be employed by an applicant for or holder of a sports wagering license, and whose duties are or will be other than the duties of a wagering employee; or</text> </paragraph> <paragraph num="(b)"> <text>Not otherwise required by the Commission to be licensed as a wagering employee.</text> </paragraph> </paragraph> <paragraph num="(47)"> <text>“Online sports wagering” means sports wagering that is conducted through a sports wagering platform that:</text> <paragraph num="(a)"> <text>Is accessed on a computer, phone, or other interactive device; and</text> </paragraph> <paragraph num="(b)"> <text>Is accepted by a mobile sports wagering licensee or an online sports wagering operator.</text> </paragraph> </paragraph> <paragraph num="(48)"> <text>“Online sports wagering operator or online sports wagering operator licensee” means an entity registered with a state to do business within a jurisdiction of the United States that the Commission has issued a license to operate online sports wagering on behalf of a mobile sports wagering licensee.</text> </paragraph> <paragraph num="(49)"> <text>“Over-under wager” means a wager in which a sports wagering licensee sets a number for a statistic in a sporting event, and a bettor wagers that the actual result in the sporting event will be higher or lower than the number set by the sports wagering licensee.</text> </paragraph> <paragraph num="(50)"> <text>“Parimutuel betting” has the meaning stated in Business Regulation Article, §11-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(51)"> <text>“Parlay wager” means a wager that involves two or more sports wagers combined into one wager.</text> </paragraph> <paragraph num="(52)"> <text>“Payout” means the total payment due on a winning wager.</text> </paragraph> <paragraph num="(53)"> <text>“Penalty” means an amount not to exceed $5,000 that the Commission may impose for each separate violation of the Sports Wagering Law, the Commissions regulations, or a directive of the Commission.</text> </paragraph> <paragraph num="(54)"> <text>“Personally identifiable information” means a person’s name in addition to other data or information that may be used, alone or combined with other data or information, to identify, contact, or locate a registered bettor, including:</text> <paragraph num="(a)"> <text>Initials, or personal mark;</text> </paragraph> <paragraph num="(b)"> <text>Unique biometric or genetic print of an individual’s image;</text> </paragraph> <paragraph num="(c)"> <text>Social Security number;</text> </paragraph> <paragraph num="(d)"> <text>Date of birth;</text> </paragraph> <paragraph num="(e)"> <text>Identification number issued by the government of a state, or the United States;</text> </paragraph> <paragraph num="(f)"> <text>Passport or identification number issued by a government for the purpose of establishing identity or documenting citizenship-related status;</text> </paragraph> <paragraph num="(g)"> <text>Financial information, including an account number, taxpayer identification number, security code, access code, or password;</text> </paragraph> <paragraph num="(h)"> <text>Residential address; or</text> </paragraph> <paragraph num="(i)"> <text>Data or information determined by the Commission to identify an individual.</text> </paragraph> </paragraph> <paragraph num="(55)"> <text>“Point of sale system” means the hardware, software and communications that comprise a system capable of accepting sports wagers using terminals operated by a cashier or a kiosk operated by a bettor on the premises of a sports wagering facility that has been approved by the Commission.</text> </paragraph> <paragraph num="(56)"> <text>“Pool wager” means a wager with a fixed entry cost where the bettors winnings may depend on the number of other bettors wagering on the sporting event.</text> </paragraph> <paragraph num="(57)"> <text>Predatory Marketing Practice.</text> <paragraph num="(a)"> <text>“Predatory marketing practice” means an advertisement or promotion of an activity, product, or service related to sports wagering that is:</text> <paragraph num="(i)"> <text>False or deceptive;</text> </paragraph> <paragraph num="(ii)"> <text>Illegal;</text> </paragraph> <paragraph num="(iii)"> <text>Knowingly directed to an individual who is younger than 21 years old and is not a participant in the sporting event;</text> </paragraph> <paragraph num="(iv)"> <text>Knowingly directed to an excluded individual; or</text> </paragraph> <paragraph num="(v)"> <text>Prohibited by law, regulation or court order.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Predatory marketing practice” includes an advertisement or promotion of an activity, product, or service related to sports wagering that:</text> <paragraph num="(i)"> <text>Uses or depicts an individual who is, or appears to be, younger than 21 years old;</text> </paragraph> <paragraph num="(ii)"> <text>By font, color, placement, or any other means, obscures or fails to disclose a material condition or limiting factor associated with the activity, product, or service being marketed; or</text> </paragraph> <paragraph num="(iii)"> <text>Fails to include or obscures the gambling assistance message required under COMAR 36.10.10.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(58)"> <text>“Principal” means:</text> <paragraph num="(a)"> <text>An officer, director, or person who directly or indirectly owns or holds a legal or beneficial interest of at least 5 percent in the securities of an applicant for or holder of a license awarded or issued under this subtitle;</text> </paragraph> <paragraph num="(b)"> <text>A person who has a controlling interest in, or the ability to elect a majority of the board of directors of an applicant for or holder of a license awarded or issued under this subtitle;</text> </paragraph> <paragraph num="(c)"> <text>A lender or other licensed financial institution of a sports wagering license applicant for or holder of a license awarded or issued under this subtitle or licensee, or a sports wagering contractor license applicant or licensee other than a bank or lending institution which makes a loan or holds a mortgage or other lien acquired in the ordinary course of business;</text> </paragraph> <paragraph num="(d)"> <text>An underwriter of an applicant for or holder of a license award or issued under this subtitle; or</text> </paragraph> <paragraph num="(e)"> <text>A person or deemed by the Commission to be a principal.</text> </paragraph> </paragraph> <paragraph num="(59)"> <text>Principal Employee.</text> <paragraph num="(a)"> <text>“Principal employee” means an individual who owns, controls, or manages a licensee that is a sports wagering facility, sports wagering mobile operator, online sports wagering operator, sports wagering facility operator, or sports wagering contractor.</text> </paragraph> <paragraph num="(b)"> <text>“Principal employee” includes an employee of a Tier 1 sports wagering contractor who performs any function of a Tier 1 sports wagering contractor.</text> </paragraph> <paragraph num="(c)"> <text>“Principal employee” does not include a wagering employee, temporary wagering employee, or non-wagering employee.</text> </paragraph> </paragraph> <paragraph num="(60)"> <text>“Prohibited sports wager” means any sports wager not approved by the Commission.</text> </paragraph> <paragraph num="(61)"> <text>“Proposition wager or proposition bet” means a wager on an individual action, statistic, occurrence, or non-occurrence which is determined during a sporting event.</text> </paragraph> <paragraph num="(62)"> <text>“Registered bettor” means a person who has registered with a sports wagering licensee to make wagers or for inclusion in the licensees bettor tracking system.</text> </paragraph> <paragraph num="(63)"> <text>“Restricted area” means that part of a sports wagering facility directly related to the operation of sports wagering where access is specifically designated by the Commission as restricted, including:</text> <paragraph num="(a)"> <text>Cashiers cage, including a satellite cashiers cage and ancillary offices;</text> </paragraph> <paragraph num="(b)"> <text>Computer space allocated to sports wagering platforms;</text> </paragraph> <paragraph num="(c)"> <text>Count room and trolley storage area;</text> </paragraph> <paragraph num="(d)"> <text>Areas designated for the storage or repair of sports wagering equipment;</text> </paragraph> <paragraph num="(e)"> <text>Information technology operations centers;</text> </paragraph> <paragraph num="(f)"> <text>Surveillance monitoring rooms;</text> </paragraph> <paragraph num="(g)"> <text>Vault and armored car bay locations;</text> </paragraph> <paragraph num="(h)"> <text>Data information center;</text> </paragraph> <paragraph num="(i)"> <text>Any area that the sports wagering licensee has designated as restricted in its Commission-approved accounting and internal control systems; and</text> </paragraph> <paragraph num="(j)"> <text>Any other area the Commission designates a restricted area.</text> </paragraph> </paragraph> <paragraph num="(64)"> <text>“Risk management” means processes and tools that sports wagering licensees use to manage the risk and liabilities associated with sports wagering.</text> </paragraph> <paragraph num="(65)"> <text>“Sanction” means an enforcement action that the Commission may take against an applicant or licensee, and may include suspension or revocation of a license, reprimand, or imposition of a condition on a licensee.</text> </paragraph> <paragraph num="(66)"> <text>“Satellite simulcast betting” has the meaning stated in Business Regulation Article, §11-815, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(67)"> <text>“Satellite simulcast facility” means the location specified in a permit issued by the State Racing Commission necessary for offering satellite simulcast betting under Business Regulation Article, §§11-815—11-832, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(68)"> <text>“Settled wager” means a wager that has been resolved with a result of either a win, loss, or push to the bettor.</text> </paragraph> <paragraph num="(69)"> <text>“Sports bettor tracking system” means the hardware, software, communications technology, and other ancillary equipment owned or leased by a sports wagering licensee to collect, monitor, interpret, analyze, authorize, report, and audit data pertaining to:</text> <paragraph num="(a)"> <text>A sports wagering activity; and</text> </paragraph> <paragraph num="(b)"> <text>If a bettor has registered with the sports wagering licensee for inclusion in a bettor tracking system, a bettors sports wagering activity.</text> </paragraph> </paragraph> <paragraph num="(70)"> <text>“Sports wagering” means:</text> <paragraph num="(a)"> <text>The business of accepting a wager on a sporting event; and</text> </paragraph> <paragraph num="(b)"> <text>Placing a wager with a sports wagering licensee on a sporting event.</text> </paragraph> </paragraph> <paragraph num="(71)"> <text>“Sports wagering account or bettor account” means an electronic account that may be established by a bettor for the purpose of sports wagering, including making deposits and withdrawals, placing wagers, and receiving payouts on winning wagers.</text> </paragraph> <paragraph num="(72)"> <text>“Sports Wagering Application Review Commission or SWARC” means the Commission established under State Government Article, §9-1E-15, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(73)"> <text>“Sports wagering content” means:</text> <paragraph num="(a)"> <text>The setting of odds; or</text> </paragraph> <paragraph num="(b)"> <text>The prediction of sporting event outcomes of any type provided at no cost, for a fee, or through a subscription or other partnership, including:</text> <paragraph num="(i)"> <text>Moneylines;</text> </paragraph> <paragraph num="(ii)"> <text>Against the spread;</text> </paragraph> <paragraph num="(iii)"> <text>Totals;</text> </paragraph> <paragraph num="(iv)"> <text>Futures;</text> </paragraph> <paragraph num="(v)"> <text>Parlays; and</text> </paragraph> <paragraph num="(vi)"> <text>Other outcomes.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(74)"> <text>“Sports wagering content partner” or “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.</text> </paragraph> <paragraph num="(75)"> <text>“Sports wagering contractor” or “contractor”:</text> <paragraph num="(a)"> <text>Means, other than an individual, a person who contracts with a sports wagering licensee to provide services as a Tier 1 or Tier 2 sports wagering contractor, that may include:</text> <paragraph num="(i)"> <text>Management or operation;</text> </paragraph> <paragraph num="(ii)"> <text>Security;</text> </paragraph> <paragraph num="(iii)"> <text>Service, maintenance, update, or repair of sports wagering equipment or associated equipment or software; or</text> </paragraph> <paragraph num="(iv)"> <text>Any other service for which the Commission requires a sports wagering contractor license; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Includes a person who owns or controls a service described in §B(75)(a) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(76)"> <text>“Sports wagering contractor Tier 1” or “Tier 1 contractor” means a sports wagering contractor that provides sports wagering equipment or services and:</text> <paragraph num="(a)"> <text>Does not accept wagers;</text> </paragraph> <paragraph num="(b)"> <text>Whose services may affect sports wagering payouts or other wagering outcomes;</text> </paragraph> <paragraph num="(c)"> <text>Manufactures self-service kiosks, devices, or machines that have been approved by the Commission for use in a sports wagering facility;</text> </paragraph> <paragraph num="(d)"> <text>May have contact with, or access to, sports wagering equipment or sports wagering platforms;</text> </paragraph> <paragraph num="(e)"> <text>Supplies parts or software related to sports wagering operations;</text> </paragraph> <paragraph num="(f)"> <text>Provides security for sports wagering operations;</text> </paragraph> <paragraph num="(g)"> <text>May employ a sports wagering employee that is a principal employee;</text> </paragraph> <paragraph num="(h)"> <text>Is an independent evaluator; or</text> </paragraph> <paragraph num="(i)"> <text>Is a sports wagering content partner.</text> </paragraph> </paragraph> <paragraph num="(77)"> <text>“Sports wagering contractor Tier 2 or Tier 2 contractor” means a sports wagering contractor that supplies equipment or services related to a sports wagering licensees sports wagering operations, and:</text> <paragraph num="(a)"> <text>Whose services may not affect wagering outcomes;</text> </paragraph> <paragraph num="(b)"> <text>Has no contact with, or access to, sports wagering equipment or sports wagering platforms; and</text> </paragraph> <paragraph num="(c)"> <text>May not employ a sports wagering employee that is a principal employee.</text> </paragraph> </paragraph> <paragraph num="(78)"> <text>“Sports wagering employee or wagering employee” means an individual who:</text> <paragraph num="(a)"> <text>Is or is seeking to be employed by an applicant for or holder of a sports wagering license, whose duties relate, or may relate to the operation of a sports wagering facility or sports wagering, and who performs or supervises or may perform or supervise the performance of:</text> <paragraph num="(i)"> <text>Operating, servicing, or maintaining sports wagering equipment or associated equipment or software;</text> </paragraph> <paragraph num="(ii)"> <text>Accounting, maintaining, or auditing a licensees sports wagering-related financial records;</text> </paragraph> <paragraph num="(iii)"> <text>Counting or processing sports wagering revenue, wagers, payouts, or proceeds;</text> </paragraph> <paragraph num="(iv)"> <text>Conducting security or surveillance in or around a sports wagering facility or the operation center of a mobile sports wagering licensee or online sports wagering operator licensee; or</text> </paragraph> <paragraph num="(v)"> <text>Operating or maintaining a sports wagering licensees information systems;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Is employed by a sports wagering contractor, whose duties directly relate to the repair, service, or distribution of sports wagering equipment or associated equipment or software, or is otherwise required to be present at a wagering facility or in a restricted area of a wagering facility; or</text> </paragraph> <paragraph num="(c)"> <text>Is otherwise required by the Commission to be licensed as a sports wagering employee.</text> </paragraph> </paragraph> <paragraph num="(79)"> <text>“Sports wagering equipment” means any mechanical, electronic or other device, mechanism, software or equipment, and related supplies used or consumed in the operation of sports wagering, including a self-service kiosk on the premises of a sports wagering facility.</text> </paragraph> <paragraph num="(80)"> <text>“Sports wagering facility, wagering facility, or facility” means a place where a bettor may place a wager in person, that:</text> <paragraph num="(a)"> <text>Is physically located on premises that are owned, leased, or occupied by a sports wagering facility licensee; and</text> </paragraph> <paragraph num="(b)"> <text>Has been issued a sports wagering facility license by the Commission.</text> </paragraph> </paragraph> <paragraph num="(81)"> <text>“Sports wagering facility operator or sports wagering facility operator licensee” means a person that operates sports wagering on behalf of a sports wagering facility licensee:</text> <paragraph num="(a)"> <text>On premises that are physically owned, leased, or occupied by the sports wagering facility licensee; and</text> </paragraph> <paragraph num="(b)"> <text>Has been issued a sports wagering facility operator license by the Commission.</text> </paragraph> </paragraph> <paragraph num="(82)"> <text>“Sports wagering facility operator license” means an operator license issued by the Commission to a person that operates a sports wagering facility on behalf of a sports wagering facility licensee.</text> </paragraph> <paragraph num="(83)"> <text>“Sports wagering influencer” or “sports wagering expert” means:</text> <paragraph num="(a)"> <text>A person who creates sports wagering content for the benefit of a sports wagering licensee, a content partner, or the person’s benefit; and</text> </paragraph> <paragraph num="(b)"> <text>The sports wagering content:</text> <paragraph num="(i)"> <text>Uses a person’s prestige, popularity, notoriety, or specific knowledge or expertise that is real, implied, or suggested; and</text> </paragraph> <paragraph num="(ii)"> <text>Attempts to, or does, encourage, induce, or persuade a bettor’s wagering decision.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(84)"> <text>“Sports wagering website” means the website or interactive wagering application through which a sports wagering licensee makes authorized mobile sports wagering available.</text> </paragraph> <paragraph num="(85)"> <text>“Sports wagering license” means a license issued by the Commission that authorizes the holder to accept sports wagers.</text> </paragraph> <paragraph num="(86)"> <text>“Sports wagering licensee” means the holder of a sports wagering license.</text> </paragraph> <paragraph num="(87)"> <text>“Sports wagering operation” or “sports wagering operations” means the entirety of a sports wagering licensee’s business of conducting sports wagering and related activities, including:</text> <paragraph num="(a)"> <text>Accepting and redeeming wagers;</text> </paragraph> <paragraph num="(b)"> <text>Maintaining financial accounting;</text> </paragraph> <paragraph num="(c)"> <text>Securing a sports wagering platform;</text> </paragraph> <paragraph num="(d)"> <text>Securing a sports wagering platform;</text> </paragraph> <paragraph num="(e)"> <text>Conducting surveillance of a sports wagering facility;</text> </paragraph> <paragraph num="(f)"> <text>Owning, leasing, or occupying a sports wagering facility; and</text> </paragraph> <paragraph num="(g)"> <text>Performing any other related activity.</text> </paragraph> </paragraph> <paragraph num="(88)"> <text>“Sports wagering platform” means:</text> <paragraph num="(a)"> <text>Hardware and software used for a website, application, or other platform which is accessible via the internet or mobile, wireless, or similar communications technology that allows bettors to participate in sports wagering; or</text> </paragraph> <paragraph num="(b)"> <text>Hardware, software, firmware, communications technology, or other equipment that a sports wagering licensee uses to:</text> <paragraph num="(i)"> <text>Allow a bettor to participate in sports wagering;</text> </paragraph> <paragraph num="(ii)"> <text>Display the wager outcomes and other similar information necessary to facilitate sports wagering;</text> </paragraph> <paragraph num="(iii)"> <text>Review bettor accounts and generate financial reports;</text> </paragraph> <paragraph num="(iv)"> <text>Suspend wagering on sporting events;</text> </paragraph> <paragraph num="(v)"> <text>Input outcomes for sporting events; and</text> </paragraph> <paragraph num="(vi)"> <text>Set any configurable parameters.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(89)"> <text>“Sports wagering ticket” means a printed record issued or an electronic record maintained by a sports wagering platform that evidences a sports wager.</text> </paragraph> <paragraph num="(90)"> <text>“Sports wagering voucher” means a printed record or digital representation issued by a sports wagering platform that may be used to fund a wager or may be redeemable for cash.</text> </paragraph> <paragraph num="(91)"> <text>“Straight wager and single-game bet” mean a wager on a single sporting event that will be determined by a point spread, money line or total score.</text> </paragraph> <paragraph num="(92)"> <text>“Teaser bet” means a wager in which the sports wagering licensee adjusts the odds of winning in a bettors favor.</text> </paragraph> <paragraph num="(93)"> <text>“Temporary sports wagering facility” means an area approved by the Commission for use in sports wagering operations during the construction of a facility.</text> </paragraph> <paragraph num="(94)"> <text>Unredeemed Item.</text> <paragraph num="(a)"> <text>“Unredeemed item” means a sports wagering voucher, sports wagering ticket, or similar item that has monetary value and:</text> <paragraph num="(i)"> <text>Has been won by a bettor participating in sports wagering; or</text> </paragraph> <paragraph num="(ii)"> <text>Has been inserted into sports wagering equipment.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Unredeemed item” does not include cash.</text> </paragraph> </paragraph> <paragraph num="(95)"> <text>“Unusual wagering activity” means a wager or pattern of wagering by a bettor that:</text> <paragraph num="(a)"> <text>Is abnormal in amount, frequency, pattern, or type; or</text> </paragraph> <paragraph num="(b)"> <text>May indicate past, current, attempted, or planned cheating.</text> </paragraph> </paragraph> <paragraph num="(96)"> <text>“Video lottery employee” means an individual who holds a license issued under State Government Article, §9-1A-14, Annotated Code of Maryland, and meets the requirements of COMAR 36.03.02.12.</text> </paragraph> <paragraph num="(97)"> <text>“Voided wager” means a wager invalidated by a licensee for a specified sporting event.</text> </paragraph> <paragraph num="(98)"> <text>“Wager or wagering” means betting a sum of money or promotional credit on the outcome of a sporting event.</text> </paragraph> <paragraph num="(99)"> <text>“Wagering day” means a period of time determined by the Commission, not to exceed 24 hours, that marks the beginning and ending times of wagering activities for the purposes of establishing accounting reports and determining daily proceeds.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">: Business Regulation Article, §§11-101, 11-524, and 11-815—11-832; Criminal Law Article, §§12-301.1 and 12-308; State Government Article, §§9-110, 9-1A-01, 9-1A-04, 9-1A-05, 9-1A-11, 9-1A-14, 9-1A-24, 9-1E-01, and 9-1E-17; Annotated Code of Maryland; Ch. 603, §6, Acts of 2012, and Ch. 10, §23, Acts of 2018</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27. 2024 (50:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="02" heading="All Applicants and Licensees — Applications and Investigations"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>All applicants for licenses related to the State’s Sports Wagering Program shall comply with the requirements set forth in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commission’s regulations, to establish their qualifications, comply with requirements for the issuance of a license, and, if the Commission issues a license, comply with the contents of the license application, and all applicable laws and regulations.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="General."> <paragraph num="A."> <text>This chapter includes application and license requirements for all licenses the Commission is authorized to issue under State Government Article, §9-1E-05, Annotated Code of Maryland, to implement the State’s Sports Wagering Program.</text> </paragraph> <paragraph num="B."> <text>Applicants and licensees are subject to any additional requirements in this Subtitle based on the category of license the applicant applies for or the licensee holds.</text> </paragraph> <paragraph num="C."> <text>Unless a person holds a valid license issued by the Commission, the person may not offer or conduct sports wagering, or engage in an activity for which a license is required.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Process."> <paragraph num="A."> <text>Submission Requirements.</text> <paragraph num="(1)"> <text>If the Commission requires an application to be submitted by a particular date:</text> <paragraph num="(a)"> <text>The application and nonrefundable application fee shall be delivered to the Commission not later than 5 p.m. on the date specified by the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>An application submitted after the deadline may not be accepted or considered by the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An applicant may not submit an application less than 1 year after the Commission has:</text> <paragraph num="(a)"> <text>Taken final action on a license denial of a previous license application involving the applicant;</text> </paragraph> <paragraph num="(b)"> <text>Taken final action on a sanction resulting in revocation of a previous license involving the applicant; or</text> </paragraph> <paragraph num="(c)"> <text>Provided an individual with written notice of termination of a temporary license.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Applications.</text> <paragraph num="(1)"> <text>An application submitted to the Commission shall:</text> <paragraph num="(a)"> <text>Consist of an original and the number of copies required by the Commission and shall be in an electronic format or other format required by the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Be sworn before a notary public as to its truth and validity by the applicant or, if the applicant is not an individual, by the chief executive officer of the applicant.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An applicant shall include the applicable nonrefundable application fee with the license application.</text> </paragraph> <paragraph num="(3)"> <text>Upon receipt of a timely application and application fee, the Commission staff shall review the application to determine whether it contains all the information required under this chapter.</text> </paragraph> <paragraph num="(4)"> <text>If the Commission determines that required information has not been submitted, Commission staff shall notify the applicant in writing of the nature of the deficiency.</text> </paragraph> <paragraph num="(5)"> <text>An applicant notified in accordance with §B(4) of this regulation may submit the documents necessary to complete the application not later than 15 days after the Commission issues the notification.</text> </paragraph> <paragraph num="(6)"> <text>The Commission may not consider the application of an applicant who is notified in accordance with §B(4) of this regulation and who fails to submit the requested documents in a timely manner.</text> </paragraph> <paragraph num="(7)"> <text>The Commission shall review and consider a timely, complete application submitted as required in this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Changes in Application.</text> <paragraph num="(1)"> <text>If information submitted by an applicant as part of a license application changes or becomes inaccurate before the Commission acts on the application, the applicant shall immediately notify the Commission in writing of the change or inaccuracy.</text> </paragraph> <paragraph num="(2)"> <text>After an application has been filed by an applicant, the applicant may not amend the application except to:</text> <paragraph num="(a)"> <text>Address a deficiency in accordance with a notice sent under §B(4) of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Clarify information contained in the application as required by the Commission or the Commission staff; or</text> </paragraph> <paragraph num="(c)"> <text>Address a change in the circumstances surrounding the application that was outside the control of the applicant and that affects the ability of the applicant to comply with the law or the regulations of the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>To amend an application under §C(2)(c) of this regulation, an applicant shall submit to the Commission a written request to amend the application, stating:</text> <paragraph num="(a)"> <text>The change in the circumstances surrounding the application that necessitates the amendment;</text> </paragraph> <paragraph num="(b)"> <text>The nature of the amendment; and</text> </paragraph> <paragraph num="(c)"> <text>The reason why the amendment is necessary to bring the application into compliance with the law or the regulations of the Commission.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Commission or Commission staff shall grant or deny each request submitted under §C(3) of this regulation and notify the applicant.</text> </paragraph> <paragraph num="(5)"> <text>A request shall be granted if the applicant establishes by clear and convincing evidence that:</text> <paragraph num="(a)"> <text>The circumstances requiring the amendment were outside the control of the applicant;</text> </paragraph> <paragraph num="(b)"> <text>Before the change in the circumstances surrounding the application, the application complied with the applicable provisions of law or regulations of the Commission; and</text> </paragraph> <paragraph num="(c)"> <text>The amendment is necessary to bring the application into compliance with the applicable provisions of the law or regulations of the Commission.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>An applicant may withdraw a license application if:</text> <paragraph num="(a)"> <text>The applicant submits a written request to the Commission to withdraw the application; and</text> </paragraph> <paragraph num="(b)"> <text>The written request is submitted before the Commission has:</text> <paragraph num="(i)"> <text>Denied the application; or</text> </paragraph> <paragraph num="(ii)"> <text>Terminated a temporary license.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(7)"> <text>If an applicant withdraws an application, the application fee will not be refunded.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Notice of Intended Change in Licensed Sports Wagering Employee’s Employment Status.</text> <paragraph num="(1)"> <text>Within 14 calendar days of a change in employment status, a licensee shall notify the Commission of the intended change in employment by submitting forms and documents required by the Commission in the manner set forth in §B of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>The Commission shall conduct a background investigation of the individual to verify that the individual’s license remains in good standing.</text> </paragraph> <paragraph num="(3)"> <text>If the Commission determines that the individual’s license is not in good standing, the Commission shall notify the individual and, within 15 days after the Commission issues the notification, the licensee shall submit:</text> <paragraph num="(a)"> <text>Information, documentation, or assurances to establish, by clear and convincing evidence, that the licensee remains qualified to hold a license; and</text> </paragraph> <paragraph num="(b)"> <text>Any other information, documentation, or assurances required by the Commission.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the licensee has been separated from employment with a sports wagering facility licensee, sports wagering operator licensee, mobile sports wagering facility licensee, or online sports wagering licensee for more than 6 months and notified the Commission of an intended change in employment status, the licensee shall pay the fee for conducting a criminal history records check specified in Regulation .05B of this chapter.</text> </paragraph> <paragraph num="(5)"> <text>The Commission may not approve a change in employment status for a sports wagering employee licensee who fails to establish, by clear and convincing evidence, all license qualification criteria.</text> </paragraph> <paragraph num="(6)"> <text>A sports wagering employee may not effect a change in employment status without prior Commission approval.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Burden of Proof. Under all circumstances, the burden of proof shall be on the person that is required to be licensed, maintain the license, or qualified to establish, by clear and convincing evidence, the person is eligible and qualified as required under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commission’s regulations.</text> </paragraph> <paragraph num="F."> <text>Administrative Costs of Background Investigations.</text> <paragraph num="(1)"> <text>Promptly upon receipt of an invoice from the Commission, an applicant for a license or a licensee who has notified the Commission of an intended change in employment status shall reimburse the Commission for:</text> <paragraph num="(a)"> <text>The administrative costs associated with performing background investigations of the applicant, the licensee who has notified the Commission of an intended change in employment status, and any individual required to provide information under Regulation .06 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Any payments made by the Commission to a person approved by the Commission to conduct background investigations.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Failure to reimburse the Commission shall be grounds for disqualification of an applicant or disapproval of a licensee’s change in employment status.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may require an advance deposit from an applicant or licensee who has notified the Commission of an intended change in employment status for the Commission’s estimate of the administrative costs of conducting the applicant’s or licensee’s background investigation.</text> </paragraph> <paragraph num="(4)"> <text>If administrative costs of conducting an applicant’s or licensee’s background investigation exceed the estimate provided in §F(3), the applicant or licensee shall pay the additional costs prior to the Commission finalizing the background investigation.</text> </paragraph> <paragraph num="(5)"> <text>The Commission shall refund to an applicant any unused amount of the advance deposit.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Payment and Collection.</text> <paragraph num="(1)"> <text>An applicant shall pay the administrative costs and fees required under this regulation by:</text> <paragraph num="(a)"> <text>Wire transfer;</text> </paragraph> <paragraph num="(b)"> <text>Money order;</text> </paragraph> <paragraph num="(c)"> <text>Certified check made payable to the “Maryland Lottery and Gaming Control Commission”; or</text> </paragraph> <paragraph num="(d)"> <text>Any other manner designated by the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Commission may address an applicant’s or licensee’s failure to pay a required fee, penalty, or proceeds:</text> <paragraph num="(a)"> <text>As provided in COMAR 36.10.12; or</text> </paragraph> <paragraph num="(b)"> <text>By filing a claim against the performance bond that covers the applicant.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Continuing Obligations.</text> <paragraph num="(1)"> <text>At all times, a person who is awarded or issued a license, and a person who is otherwise required to meet Commission qualifications, shall conform to all of the information contained in the license application and documents submitted to SWARC and the Commission.</text> </paragraph> <paragraph num="(2)"> <text>An applicant or licensee 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 State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, or regulations promulgated by the SWARC or the Commission.</text> </paragraph> <paragraph num="(3)"> <text>If information submitted to the SWARC or the Commission by a person described in §H(1) of this regulation changes during the term of the license or qualification, the person shall immediately submit written notification of the change to the Commission.</text> </paragraph> <paragraph num="(4)"> <text>An applicant or licensee has an affirmative and continuing obligation to:</text> <paragraph num="(a)"> <text>Inform the Commission of an act or omission that the applicant or licensee knows or should have known constitutes a violation of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, or the Commission’s regulations;</text> </paragraph> <paragraph num="(b)"> <text>Provide the Commission with all information relating to qualifications in the form specified by the Commission;</text> </paragraph> <paragraph num="(c)"> <text>Provide assistance and information required by the Commission;</text> </paragraph> <paragraph num="(d)"> <text>Cooperate in a Commission inquiry, investigation, or hearing;</text> </paragraph> <paragraph num="(e)"> <text>On issuance of a request to answer or produce information, evidence, or testimony requested by the Commission, provide it; and</text> </paragraph> <paragraph num="(f)"> <text>As required under State Government Article, §9-1E-07(b)(3), Annotated Code of Maryland, comply with any Commission request or requirement for information and records necessary for setting reasonable and appropriate minority business enterprise participation goals and procedures for the procurement of goods and service related to sports wagering, including procurement of construction, equipment, and ongoing services.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Failure to comply with the obligations of §H of this regulation shall be grounds for the Commission taking enforcement action under COMAR 36.10.08.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Personal and Background Information."> <paragraph num="A."> <text>Except as otherwise provided in the Commission’s regulations, the application documents shall include the information required under §B of this regulation, for a person who is:</text> <paragraph num="(1)"> <text>The applicant;</text> </paragraph> <paragraph num="(2)"> <text>A director, officer, or key management individual employed by the applicant;</text> </paragraph> <paragraph num="(3)"> <text>A partner of the applicant;</text> </paragraph> <paragraph num="(4)"> <text>Any other person who owns, controls, or directs a legal or beneficial interest of 5 percent or more in the applicant;</text> </paragraph> <paragraph num="(5)"> <text>A principal;</text> </paragraph> <paragraph num="(6)"> <text>A principal employee;</text> </paragraph> <paragraph num="(7)"> <text>A principal entity;</text> </paragraph> <paragraph num="(8)"> <text>A holding company of the applicant; or</text> </paragraph> <paragraph num="(9)"> <text>An affiliate of the applicant.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An individual listed under §A of this regulation shall furnish the individual’s:</text> <paragraph num="(1)"> <text>Full name and any previous names or aliases;</text> </paragraph> <paragraph num="(2)"> <text>Date of birth;</text> </paragraph> <paragraph num="(3)"> <text>Physical description;</text> </paragraph> <paragraph num="(4)"> <text>Home and business addresses and telephone numbers;</text> </paragraph> <paragraph num="(5)"> <text>Driver’s license number and state of issuance;</text> </paragraph> <paragraph num="(6)"> <text>Social Security number;</text> </paragraph> <paragraph num="(7)"> <text>Photograph in a type and size required by the Commission;</text> </paragraph> <paragraph num="(8)"> <text>Fingerprints for a criminal records check:</text> <paragraph num="(a)"> <text>For a State resident, from an electronic fingerprinting service approved by the Commission; or</text> </paragraph> <paragraph num="(b)"> <text>For an out-of-State resident, one FBI and one State fingerprint card, taken within the previous 45 days before submission to the Commission; and</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Any other document or information required by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A person listed under §A of this regulation that is not an individual shall furnish, with its application documents:</text> <paragraph num="(1)"> <text>Pursuant to any applicable requirements of the Maryland State Department of Assessment and Taxation, evidence that the person is in good standing to conduct business in the State;</text> </paragraph> <paragraph num="(2)"> <text>For a corporation, documentation showing the:</text> <paragraph num="(a)"> <text>State in which the applicant is incorporated; and</text> </paragraph> <paragraph num="(b)"> <text>Name and address of the applicant’s resident agent for service of process in Maryland; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For a nonprofit corporation, only the information required under §B of this regulation for an individual who is a director or officer of the applicant.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A licensee who has notified the Commission of an intended change in employment status shall provide the information as set forth in §B of this regulation.</text> </paragraph> <paragraph num="E."> <text>The Commission may require an applicant to furnish the information listed in §B of this regulation for the applicant’s family and associates.</text> </paragraph> <paragraph num="F."> <text>Inadvertent, nonsubstantive errors that might be made in furnishing the information required by this regulation may not be used as a reason by the Commission for disqualifying the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Information for Background Investigation."> <paragraph num="A."> <text>An individual or authorized representative of a person that is required to submit an application, or be investigated, shall:</text> <paragraph num="(1)"> <text>Submit to the Commission a complete legible set of the individual’s fingerprints for:</text> <paragraph num="(a)"> <text>The Federal Bureau of Investigation; and</text> </paragraph> <paragraph num="(b)"> <text>The Maryland Criminal Justice Information System;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Complete a background form supplied by the Commission which includes a statement disclosing whether the individual has ever been:</text> <paragraph num="(a)"> <text>Arrested;</text> </paragraph> <paragraph num="(b)"> <text>Convicted of, pled nolo contendere to, or received probation before judgment for, a felony or misdemeanor, other than a misdemeanor traffic offense;</text> </paragraph> <paragraph num="(c)"> <text>Sanctioned by a government agency related to gaming or sports wagering;</text> </paragraph> <paragraph num="(d)"> <text>Found liable in connection with a civil action related to gaming or sports wagering;</text> </paragraph> <paragraph num="(e)"> <text>A debtor in a bankruptcy proceeding; or</text> </paragraph> <paragraph num="(f)"> <text>Denied a bond; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Complete any acknowledgement forms required by law including an FBI Privacy Act notice.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The forms submitted in compliance with this regulation shall be accompanied by the:</text> <paragraph num="(1)"> <text>Fee authorized under Criminal Procedure Article, §10-221(b)(7), Annotated Code of Maryland, for access to Maryland criminal history records; and</text> </paragraph> <paragraph num="(2)"> <text>Mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If an applicant under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, is a citizen of any country other than the United States, the background investigation required under State Government Article, §9-1E-07(f), Annotated Code of Maryland, shall include an international criminal history records check.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Consent for Investigation."> <paragraph num="A."> <text>An individual who is required to provide personal and background information under this chapter shall provide a statement that irrevocably gives consent to the Commission, the SWARC, and persons authorized by the Commission to:</text> <paragraph num="(1)"> <text>Verify all information provided in all documents or forms submitted to the Commission or the SWARC; and</text> </paragraph> <paragraph num="(2)"> <text>Conduct a background investigation of the individual.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A person who is required to provide information under this chapter shall:</text> <paragraph num="(1)"> <text>As applicable, execute these forms:</text> <paragraph num="(a)"> <text>An irrevocable Acknowledgment and Disclosure;</text> </paragraph> <paragraph num="(b)"> <text>Affidavit of Representative of Applicant;</text> </paragraph> <paragraph num="(c)"> <text>An Irrevocable Authorization for Release of Information;</text> </paragraph> <paragraph num="(d)"> <text>Certificate of Business Relationship; and</text> </paragraph> <paragraph num="(e)"> <text>Any other release or authorization required by the Commission to investigate the qualifications of the applicant; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Authorize the Commission and, if appropriate, the SWARC, to have access to any and all information in the custody of any other jurisdiction about the person, including:</text> <paragraph num="(a)"> <text>Information the person provided to the jurisdiction while being investigated for a gaming or sports wagering-related license or qualification;</text> </paragraph> <paragraph num="(b)"> <text>Information that the jurisdiction obtained while investigating the person for a gaming or sports wagering-related license or qualification; and</text> </paragraph> <paragraph num="(c)"> <text>Any other information about the person pertaining to the person’s license or qualifications related to gaming or sports wagering in another jurisdiction.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Organizational Documents."> <paragraph num="A."> <text>If the applicant is a corporation, the application documents shall include a:</text> <paragraph num="(1)"> <text>Statement of when the corporation was organized;</text> </paragraph> <paragraph num="(2)"> <text>Copy of the articles of incorporation and bylaws of the corporation;</text> </paragraph> <paragraph num="(3)"> <text>Statement and documentation of whether the corporation has been reorganized or reincorporated during the 5-year period preceding the date on which the application documents are submitted to the Commission; and</text> </paragraph> <paragraph num="(4)"> <text>Statement and documentation of whether the corporation has filed restated articles of incorporation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the applicant is an unincorporated business association, the application documents shall include a:</text> <paragraph num="(1)"> <text>Copy of each organizational document of the applicant, including any partnership agreement; and</text> </paragraph> <paragraph num="(2)"> <text>Description of any oral agreements involving the organization of the applicant.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Ownership of Applicant."> <paragraph num="A."> <text>An applicant shall disclose all:</text> <paragraph num="(1)"> <text>Principals;</text> </paragraph> <paragraph num="(2)"> <text>Principal entities, as defined in COMAR 36.03.01.02; and</text> </paragraph> <paragraph num="(3)"> <text>Persons who have, or exercise, voting rights in or as to the applicant.</text> </paragraph> </paragraph> <paragraph num="B."> <text>In addition to the requirements in §A of this regulation, the applicant shall disclose the following:</text> <paragraph num="(1)"> <text>If authorized to issue capital stock, for each class of stock authorized:</text> <paragraph num="(a)"> <text>Total number of shares;</text> </paragraph> <paragraph num="(b)"> <text>Par value, if any;</text> </paragraph> <paragraph num="(c)"> <text>Voting rights;</text> </paragraph> <paragraph num="(d)"> <text>Current rate of dividend; and</text> </paragraph> <paragraph num="(e)"> <text>Number of shares outstanding and the market value of each share; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If a corporation:</text> <paragraph num="(a)"> <text>Include a certified copy of each voting trust or voting agreement in which capital stock of the applicant is held, and describe the:</text> <paragraph num="(i)"> <text>Name and address of each stockholder participating in the trust or agreement;</text> </paragraph> <paragraph num="(ii)"> <text>Class of stock involved; and</text> </paragraph> <paragraph num="(iii)"> <text>Total number of shares held by the trust or agreement;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Provide the terms of any proxy by which any capital stock may be voted, and provide the:</text> <paragraph num="(i)"> <text>Name and address of the person holding the proxy;</text> </paragraph> <paragraph num="(ii)"> <text>Name and address of the stockholder who granted the proxy;</text> </paragraph> <paragraph num="(iii)"> <text>Class of stock for which the proxy may vote; and</text> </paragraph> <paragraph num="(iv)"> <text>Total number of shares voted by the proxy;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Include any provisions described in §B(2)(a) and (b) of this regulation, and the procedures by which these provisions may be modified for the redemption, repurchase, retirement, conversion, or exchange of an ownership interest;</text> </paragraph> <paragraph num="(d)"> <text>State whether the:</text> <paragraph num="(i)"> <text>Applicant’s stock may be traded through options; and</text> </paragraph> <paragraph num="(ii)"> <text>Corporation, or a stockholder, has executed an agreement or contract to convey any of the corporation’s or the stockholder’s stock at a future date;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Include a copy or a description of each agreement or contract disclosed under §B(2)(d) of this regulation;</text> </paragraph> <paragraph num="(f)"> <text>Include a copy of each prospectus, pro forma, and other promotional material about the applicant that the applicant may give to potential investors if it receives a sports wagering license; and</text> </paragraph> <paragraph num="(g)"> <text>Fully disclose any stock options that may exist or have been granted.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Directors, Officers, and Partners."> <paragraph num="A."> <text>If the applicant is not an individual, the application documents shall include a list of the individuals who are serving, or who are designated to serve, during the first year after the date the application documents are submitted to the Commission as a director, officer, partner, or any other principal.</text> </paragraph> <paragraph num="B."> <text>For each individual listed under §A of this regulation, the applicant shall provide:</text> <paragraph num="(1)"> <text>The individual’s name and address;</text> </paragraph> <paragraph num="(2)"> <text>Each position or office of the applicant held by the individual;</text> </paragraph> <paragraph num="(3)"> <text>The individual’s principal occupation during the 5-year period preceding the date on which the application documents are submitted to the Commission; and</text> </paragraph> <paragraph num="(4)"> <text>The nature and extent of any ownership interest that the individual has in the applicant.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Principal Entity."> <paragraph num="A."> <text>The application documents shall identify any principal entity of an applicant, and for each:</text> <paragraph num="(1)"> <text>Describe the principal entity’s ownership of the applicant;</text> </paragraph> <paragraph num="(2)"> <text>Describe the extent of the principal entity’s control over the applicant; and</text> </paragraph> <paragraph num="(3)"> <text>Include information and documents required under Regulations .03 through .07 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Principal Entities as Approved Institutional Investors.</text> <paragraph num="(1)"> <text>A principal entity may request the Commission to waive the requirement of conducting a full background investigation of the principal entity.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may approve a principal entity’s request for a waiver if the principal entity:</text> <paragraph num="(a)"> <text>Meets one of the definitions of institutional investor in Chapter .01 of this subtitle; and</text> </paragraph> <paragraph num="(b)"> <text>Satisfactorily completes and submits an institutional investor waiver application as required by the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A principal entity for which the Commission has approved a waiver request under §B(2) of this regulation is an approved institutional investor.</text> </paragraph> <paragraph num="(4)"> <text>An institutional investor may maintain an approved waiver as an institutional investor by:</text> <paragraph num="(a)"> <text>Maintaining an ownership interest in an applicant or licensee; and</text> </paragraph> <paragraph num="(b)"> <text>Providing the Commission with the statement of ownership percentage it reported to the Securities and Exchange Commission:</text> <paragraph num="(i)"> <text>Annually, before the last day of April; or</text> </paragraph> <paragraph num="(ii)"> <text>As otherwise directed by the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>If an approved institutional investor complies with §B(4) of this regulation, the Commissions approval is valid for 5 years from the date of approval, and:</text> <paragraph num="(a)"> <text>The waiver may apply to one or more applicants or licensees in which the entity is an institutional investor; and</text> </paragraph> <paragraph num="(b)"> <text>The institutional investor shall submit an institutional waiver application every 5 years from the date of the Commissions last approval.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If an approved institutional investor does not meet the requirements of §B(4) of this regulation with respect to one or more applicants or licensees:</text> <paragraph num="(a)"> <text>The approved institutional investor shall notify the Commission in writing if the institutional investors ownership interest falls below 5 percent; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission may require the institutional investor to submit a new waiver application if the institutional investor acquires an ownership interest of 5 percent or greater in any applicant or licensee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Qualified Principal Entities.</text> <paragraph num="(1)"> <text>This section does not apply to a principal entity that is an approved institutional investor under §B of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>If the Commission investigates a principal entity’s application for qualification and determines that the principal entity is qualified:</text> <paragraph num="(a)"> <text>The Commission will recognize the qualification determination for 5 years from the date that the principal entity is found qualified; and</text> </paragraph> <paragraph num="(b)"> <text>If the same qualified principal entity is identified in a subsequent license application within the same 5-year period, the qualified principal entity is not required to submit a new principal entity disclosure form.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A qualified principal entity shall comply with the continuing obligation requirements described in Regulation .03 of this chapter.</text> </paragraph> <paragraph num="(4)"> <text>If a qualified principal entity no longer meets a qualification requirement, the Commission may require the principal entity to:</text> <paragraph num="(a)"> <text>File a new principal entity disclosure form;</text> </paragraph> <paragraph num="(b)"> <text>Submit to a new background investigation; and</text> </paragraph> <paragraph num="(c)"> <text>Pay all fees and costs associated with the new principal entity disclosure form and investigation.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Outside Interests."> <text>An applicant shall disclose in its application documents whether the applicant, or a principal or partner of the applicant:</text> <paragraph num="A."> <text>Has ever held an ownership interest in a licensee of the Commission; or</text> </paragraph> <paragraph num="B."> <text>Is currently engaged in the business of sports wagering in another jurisdiction, and the nature and extent of that involvement.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Alternative Licensing Standards."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>The Commission may establish an abbreviated process for licensing an applicant who holds a valid license in another state if the Commission determines that the licensing standards of the issuing agency in the other state:</text> <paragraph num="(a)"> <text>Are comprehensive;</text> </paragraph> <paragraph num="(b)"> <text>Are thorough; and</text> </paragraph> <paragraph num="(c)"> <text>Provide similar safeguards to those in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Commission may not waive a requirement that:</text> <paragraph num="(a)"> <text>Relates to minority business enterprise participation goals and procedures established under State Government Article, §9-1E-07, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>Is a requirement of SWARC under State Government Article, §9-1E-15, Annotated Code of Maryland, or regulations promulgated by the SWARC.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the Commission has established an abbreviated process for licensing, the Commission may:</text> <paragraph num="(a)"> <text>Waive some or all of the requirements in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>Issue a license to a person having a similar license from a jurisdiction described in §A(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Commission may delegate its authority to decide whether to apply an alternative licensing standard to staff.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Process.</text> <paragraph num="(1)"> <text>An applicant or licensee requesting the use of an alternative licensing requirement shall submit a written request in a format specified by the Commission and that complies with the process established by the Commission under §A of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>A written request shall contain at least the following:</text> <paragraph num="(a)"> <text>The state in which the applicant holds a valid sports wagering or related license;</text> </paragraph> <paragraph num="(b)"> <text>An explanation of the unique circumstances justifying the request; and</text> </paragraph> <paragraph num="(c)"> <text>Any other information requested by staff or the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Upon receipt of a request that fails to comply with §B(1) and (2) of this regulation, staff shall notify the requestor:</text> <paragraph num="(a)"> <text>Of any deficiency; and</text> </paragraph> <paragraph num="(b)"> <text>That the waiver request will not be considered unless the identified deficiency is corrected.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Decision.</text> <paragraph num="(1)"> <text>Upon receipt of a request that complies with §B of this regulation, staff shall:</text> <paragraph num="(a)"> <text>Present the request to the Commission as soon as practicable; or</text> </paragraph> <paragraph num="(b)"> <text>If the Commission has delegated to staff the authority to decide the request, decide the request as soon as practicable.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>After the Commission or staff decides whether to grant the request, staff shall notify the requestor.</text> </paragraph> <paragraph num="(3)"> <text>The decision of the Commission or staff regarding an alternative licensing requirement is final and not appealable.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Exemption or Waiver of License Requirement."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>The Commission may grant an exemption from, or waiver of, a licensing requirement or grounds for denial of a license at the request of an applicant, if the Commission determines that the requirement or grounds for denial of a license as applied to the applicant are not necessary in order to protect the public interest or accomplish the policies established by State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may grant an exemption from, or waiver of, a regulatory licensing requirement, so that an applicant or licensee is not:</text> <paragraph num="(a)"> <text>Required to comply with a regulatory licensing requirement; or</text> </paragraph> <paragraph num="(b)"> <text>Subject to specific regulatory basis for denial of a license.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission may delegate to staff its authority to grant an exemption from, or waiver of, a regulatory licensing requirement.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Process.</text> <paragraph num="(1)"> <text>A person requesting an exemption or waiver under this regulation shall submit a written request in a format specified by the Commission.</text> </paragraph> <paragraph num="(2)"> <text>A written request shall contain at least the following:</text> <paragraph num="(a)"> <text>The COMAR section for the standard for which the applicant seeks the exemption or waiver;</text> </paragraph> <paragraph num="(b)"> <text>Detailed facts in support of the request;</text> </paragraph> <paragraph num="(c)"> <text>An explanation of the unique circumstances justifying the request; and</text> </paragraph> <paragraph num="(d)"> <text>Any other information requested by staff or the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Upon receipt of an exemption or waiver request that fails to comply with §B(1) or (2) of this regulation, staff shall notify the requestor:</text> <paragraph num="(a)"> <text>Of any deficiency; and</text> </paragraph> <paragraph num="(b)"> <text>That the request will not be considered unless the identified deficiency is corrected.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Decision.</text> <paragraph num="(1)"> <text>Upon receipt of a request that complies with §§A and B of this regulation, staff shall:</text> <paragraph num="(a)"> <text>Submit the request to the Commission as soon as practicable; or</text> </paragraph> <paragraph num="(b)"> <text>If the Commission has delegated to staff the authority to decide the request, make a decision on the request as soon as practicable.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>At any time before or after a waiver or exemption request has been granted, the Commission may:</text> <paragraph num="(a)"> <text>Limit or place restrictions on the exemption or waiver as the Commission considers necessary in the public interest; and</text> </paragraph> <paragraph num="(b)"> <text>Require the applicant or licensee who is granted the exemption or waiver to:</text> <paragraph num="(i)"> <text>Cooperate with the Commission; and</text> </paragraph> <paragraph num="(ii)"> <text>Provide the Commission with any additional information required as a condition of the exemption or waiver.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>After the Commission or staff decides whether to grant or deny the request, staff shall notify the requestor of the decision.</text> </paragraph> <paragraph num="(4)"> <text>The decision of the Commission or staff regarding an exemption or waiver of a licensing requirement is final and not appealable.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Bonds."> <paragraph num="A."> <text>The Commission may require an applicant or licensee to obtain a performance bond before the Commission issues or renews a license.</text> </paragraph> <paragraph num="B."> <text>The performance bond shall:</text> <paragraph num="(1)"> <text>Be for the benefit of the State for the faithful performance of the requirements imposed by State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and Commission regulations; and</text> </paragraph> <paragraph num="(2)"> <text>Identify the Agency as the obligee.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a performance bond is required for a license, the Commission may not issue or renew a license unless it has:</text> <paragraph num="(1)"> <text>Exempted the applicant or licensee from the performance bond requirement; or</text> </paragraph> <paragraph num="(2)"> <text>Received satisfactory documentation of the performance bond.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Commission may apply a performance bond to the payment of an unpaid liability of the applicant or licensee to the Agency and the State.</text> </paragraph> <paragraph num="E."> <text>Performance bond amounts and exemptions are specified in regulations that pertain to a specific license.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02, 9-1A-04, 9-1A-07, 9-1A-08, 9-1A-20, 9-1A-25, and 9-1E-01—9-1E-15; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.14 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10C adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="03" heading="All Applicants and Licensees — Qualification Requirements"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>An applicant for, and a holder of, a license necessary for the State’s Sports Wagering Program, shall meet the same qualification requirements for licensees that the Commission issues under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>This chapter includes the qualification requirements, and process for the issuance of a license, for all applicants for licenses related to sports wagering that the Commission is authorized to issue under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>Additional qualifications and license requirements may apply based on license category and are specified in succeeding chapters.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Qualification Requirements."> <paragraph num="A."> <text>The Commission or Agency staff may consider an applicant’s qualifications if the applicant has:</text> <paragraph num="(1)"> <text>Paid the applicable nonrefundable application fee;</text> </paragraph> <paragraph num="(2)"> <text>Unless exempt, provided documentation that:</text> <paragraph num="(a)"> <text>The applicant has obtained the required performance bond; or</text> </paragraph> <paragraph num="(b)"> <text>A person authorized to provide a performance bond in the State has approved the applicant for a performance bond; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Provided the Commission with all required information and documentation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission shall determine whether an applicant has presented sufficient information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence:</text> <paragraph num="(1)"> <text>The applicants financial stability, integrity, and responsibility;</text> </paragraph> <paragraph num="(2)"> <text>The integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bear a relation to the application;</text> </paragraph> <paragraph num="(3)"> <text>The applicants good character, honesty, and integrity; and</text> </paragraph> <paragraph num="(4)"> <text>Sufficient business ability and experience.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Mandatory Disqualification. The Commission shall disqualify an applicant from licensure, or find the applicant unqualified, on the basis of:</text> <paragraph num="(1)"> <text>Failure of the applicant to establish by clear and convincing evidence that the applicant and each person who owns or controls the applicant are qualified;</text> </paragraph> <paragraph num="(2)"> <text>Failure of the applicant or any person required to be qualified to provide information, documentation, or assurances required by or requested by the Commission or SWARC;</text> </paragraph> <paragraph num="(3)"> <text>Failure of the applicant or any person required to be qualified to reveal any fact material to qualification;</text> </paragraph> <paragraph num="(4)"> <text>Supplying, by the applicant or any person required to be qualified, information that is untrue or misleading as to a material fact concerning the qualification criteria;</text> </paragraph> <paragraph num="(5)"> <text>Conviction of the applicant or of any person required to be qualified of an offense under the laws of any jurisdiction that is a criminal offense involving moral turpitude or a gambling or sports wagering offense;</text> </paragraph> <paragraph num="(6)"> <text>Current prosecution of the applicant or a person who is required to be qualified for an offense described under §C(5) of this regulation, provided that:</text> <paragraph num="(a)"> <text>An applicant may request that the Commission defer its qualification decision during the pendency of the charge; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission may exercise its discretion whether to defer its qualification decision during the pendency of the charge;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Pursuit by the applicant or a person who is required to be qualified of economic gain in an occupational manner or context that violates a State law, if the pursuit creates a reasonable belief by the Commission that participation of the applicant in sports wagering operations would be inimical to the States interests;</text> </paragraph> <paragraph num="(8)"> <text>Identification of the applicant or a person who is required to be qualified as a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in a manner that creates a reasonable belief by the Commission that the association is of a nature that would be inimical to the States interests;</text> </paragraph> <paragraph num="(9)"> <text>Commission of an act within the prior 7 years by the applicant or a person who is required to be qualified that would constitute an offense described in §C(5) of this regulation, even if the act was not, or may not be prosecuted under the criminal laws of any jurisdiction;</text> </paragraph> <paragraph num="(10)"> <text>Willful defiance by the applicant or a person who is required to be qualified of a legislative investigatory body or other official investigatory body of the United States or a jurisdiction within the United States when the body is engaged in the investigation of crimes relating to sports wagering, gambling, official corruption, or organized crime activity; or</text> </paragraph> <paragraph num="(11)"> <text>Engaging in conduct that would bring the State into disrepute.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Permissive Denial. The Commission may deny a license to an applicant or find an applicant unqualified if the applicants application for a license related to sports wagering in another jurisdiction was denied, suspended, or revoked.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Process for Issuing a License — All Applicants."> <paragraph num="A."> <text>The Director shall designate staff to oversee the license application review process in a manner consistent with this subtitle.</text> </paragraph> <paragraph num="B."> <text>Designated staff may determine qualifications of an applicant and issue a license without a Commission hearing.</text> </paragraph> <paragraph num="C."> <text>Designated staff shall review a timely and complete application to determine whether it:</text> <paragraph num="(1)"> <text>Contains all required information;</text> </paragraph> <paragraph num="(2)"> <text>Meets all application and qualification requirements;</text> </paragraph> <paragraph num="(3)"> <text>Is accompanied by all required fees; and</text> </paragraph> <paragraph num="(4)"> <text>Unless exempt, provides evidence of a performance bond.</text> </paragraph> </paragraph> <paragraph num="D."> <text>All applicants shall meet the general requirements of COMAR 36.10.02 and 36.10.03.</text> </paragraph> <paragraph num="E."> <text>Applicants shall also meet the specific requirements of the license category for which the applicant submits an application.</text> </paragraph> <paragraph num="F."> <text>After reviewing an application, and subject to the specific requirements of the applicant’s license category, if designated staff determines that the applicant meets all applicable requirements, the designee shall issue the license, or find the applicant qualified.</text> </paragraph> <paragraph num="G."> <text>After designated staff issues a license, the applicant may commence operations under the authority, terms, and conditions of the license.</text> </paragraph> <paragraph num="H."> <text>If designated staff determines that the applicant does not meet all applicable requirements:</text> <paragraph num="(1)"> <text>The designee shall recommend denial of the application; and</text> </paragraph> <paragraph num="(2)"> <text>The recommended denial of a license application shall follow the process described under COMAR 36.10.07.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Ongoing Requirements and Continuing Obligations for All Licensees."> <paragraph num="A."> <text>The requirements in this regulation pertain to all licensees, the failure to comply with any of these requirements may subject the licensee to enforcement action under COMAR 36.10.08.</text> </paragraph> <paragraph num="B."> <text>Throughout the license term and any renewal, a licensee:</text> <paragraph num="(1)"> <text>Remains under a continuing obligation to conform to all of the information contained in their license application; and</text> </paragraph> <paragraph num="(2)"> <text>Shall comply with all applicable requirements in State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland, and the Commissions regulations.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A licensee shall:</text> <paragraph num="(1)"> <text>Comply with all State and federal data security laws; and</text> </paragraph> <paragraph num="(2)"> <text>Maintain all sports wagering data securely for at least 5 years from the date of the wager.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A licensee may not:</text> <paragraph num="(1)"> <text>Share any personally identifiable information with any third parties without permission, except as needed to operate sports wagering and administer the licensees obligations under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Knowingly target advertising to individuals who are prohibited from participating in sports wagering and other atrisk individuals; or</text> </paragraph> <paragraph num="(3)"> <text>Engage in false or deceptive advertising.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee may not assign, delegate, subcontract, or transfer to another person its duties or responsibilities as a licensee without the prior approval of the Commission, except:</text> <paragraph num="(1)"> <text>To a related entity; or</text> </paragraph> <paragraph num="(2)"> <text>Pursuant to a transfer of its interest approved in advance by the Commission under §F of this regulation.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Other than an individual, a sports wagering licensee may sell or transfer an interest in the ownership of the license, if:</text> <paragraph num="(1)"> <text>Before the proposed sale or transfer, the licensee submits to the Commission notification of the proposed sale or transfer; and</text> </paragraph> <paragraph num="(2)"> <text>The Commission determines that the proposed sale or transfer of an interest is consistent, and complies, with State Government Article, §§9-1A-18 and 9-1A-19, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="G."> <text>License Forfeiture.</text> <paragraph num="(1)"> <text>A license is forfeited when:</text> <paragraph num="(a)"> <text>The licensee ceases operations prior to the renewal of their license; and</text> </paragraph> <paragraph num="(b)"> <text>The licensee is unable to transfer the license in accordance with §F of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A sports wagering license that has been forfeited may be reissued by the Commission using the criteria established in this subtitle.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="License Terms."> <paragraph num="A."> <text>The term of an initial license is 5 years from the date of initial licensure.</text> </paragraph> <paragraph num="B."> <text>The term of a renewal license is 5 years.</text> </paragraph> <paragraph num="C."> <text>Staff may stagger the issuance and renewal terms of licenses.</text> </paragraph> <paragraph num="D."> <text>At an applicant’s request, staff may exempt an applicant from an application or qualification requirement, if:</text> <paragraph num="(1)"> <text>The applicant is applying for a license that is identical to a license the applicant already holds; and</text> </paragraph> <paragraph num="(2)"> <text>The applicant’s license term of the license has not expired.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Staff may merge the term of a new license into the term of an existing identical license.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="License Renewal; Fee."> <paragraph num="A."> <text>Unless the Commission by regulation specifies otherwise, the licensee shall submit an application for renewal to the Commission at least 6 months before the license expires.</text> </paragraph> <paragraph num="B."> <text>The Commission shall renew the license if the licensee:</text> <paragraph num="(1)"> <text>Establishes, by clear and convincing evidence, that the licensee meets applicable license qualification requirements;</text> </paragraph> <paragraph num="(2)"> <text>Submits to a background investigation as required by the Commission;</text> </paragraph> <paragraph num="(3)"> <text>Reimburses the Commission for all costs associated with the background investigation; and</text> </paragraph> <paragraph num="(4)"> <text>Pays the required license renewal fee.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The renewal fee is based on license category and is specified in succeeding chapters.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02—9-1A-04, 9-1A-07, 9-1A-08 9-1A-14, 9-1A-18—9-1A-20, 9-1A-24, 9-1A-25, and 9-1E-01—9-1E-15; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04F amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="04" heading="Specific Requirements for Sports Wagering Facilities Licensees"> <regulation prefix="Regulation" num=".01" heading="General."> <paragraph num="A."> <text>The Commission may issue a sports wagering license that is a:</text> <paragraph num="(1)"> <text>Class A-1;</text> </paragraph> <paragraph num="(2)"> <text>Class A-2;</text> </paragraph> <paragraph num="(3)"> <text>Class B-1; or</text> </paragraph> <paragraph num="(4)"> <text>Class B-2.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Unless a person holds a valid sports wagering facility license awarded by the SWARC and issued by the Commission, the person may not conduct, offer, or operate in-person sports wagering at a location in the State.</text> </paragraph> <paragraph num="C."> <text>This chapter contains the Commission’s sports wagering facility licensing requirements for a person that offers and conducts sports wagering at premises it owns, leases, or occupies.</text> </paragraph> <paragraph num="D."> <text>Except as designated in State Government Article, §9-1E-09(a)(1)(ii) Annotated Code of Maryland, a sports wagering facility license authorizes the licensee to conduct, offer, or operate sports wagering at a single facility in the State.</text> </paragraph> <paragraph num="E."> <text>The Commission shall issue a license to a person covered in this chapter, on an award of a license by the Sports Wagering Application Review Commission to an applicant that meets the requirements for licensure under State Government Article Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> <paragraph num="F."> <text>A sports wagering license issued by the Commission authorizes the licensee to, within the scope of its license, conduct or operate sports wagering under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commission’s regulations.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Process for Obtaining a Sports Wagering Facility License."> <paragraph num="A."> <text>An applicant for a sports wagering license shall submit an application to:</text> <paragraph num="(1)"> <text>The SWARC in a format and time specified by the SWARC; and</text> </paragraph> <paragraph num="(2)"> <text>As specified in COMAR 36.10.02, the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If an application submitted to the Commission is timely and complies with the requirements in COMAR 36.10.02, the Commission staff shall:</text> <paragraph num="(1)"> <text>Determine whether the applicant meets qualification requirements as described in COMAR 36.10.03 including any license category specific requirements and qualifications; and</text> </paragraph> <paragraph num="(2)"> <text>Notify the SWARC of the Commissions qualification determination.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The SWARC may not award a license to an applicant that the Commission has found not qualified.</text> </paragraph> <paragraph num="D."> <text>After the Commission notifies SWARC that it has determined an applicant is qualified, the SWARC shall:</text> <paragraph num="(1)"> <text>Evaluate an applicant for license award; and</text> </paragraph> <paragraph num="(2)"> <text>Notify the Commission of its license award decision.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The Commission may not issue a sports wagering license to an applicant until SWARC has notified the Commission that it has awarded a license to the applicant.</text> </paragraph> <paragraph num="F."> <text>After SWARC awards a license, the applicant is an awardee.</text> </paragraph> <paragraph num="G."> <text>Agency staff shall determine whether the awardee has met applicable technical and operational requirements in this chapter for a Class A-1, A-2, B-1, or B-2 sports wagering facility license, and determine whether it meets the Commission’s requirements for:</text> <paragraph num="(1)"> <text>Payment of the application fee in the amount specified for the license category;</text> </paragraph> <paragraph num="(2)"> <text>Evidence of a performance bond in the amount specified for the license category;</text> </paragraph> <paragraph num="(3)"> <text>Fees and qualification requirements under COMAR 36.10.02 and 36.10.03;</text> </paragraph> <paragraph num="(4)"> <text>Hours of operation;</text> </paragraph> <paragraph num="(5)"> <text>Facility specifications;</text> </paragraph> <paragraph num="(6)"> <text>Applicable zoning laws under State Government Article, §9-1E-03, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(7)"> <text>Internal controls under COMAR 36.10.13;</text> </paragraph> <paragraph num="(8)"> <text>Sports wagering platform;</text> </paragraph> <paragraph num="(9)"> <text>Sports wagering equipment;</text> </paragraph> <paragraph num="(10)"> <text>Sports wagering operations;</text> </paragraph> <paragraph num="(11)"> <text>Types of sporting event wagers to be offered;</text> </paragraph> <paragraph num="(12)"> <text>Testing and controlled demonstrations;</text> </paragraph> <paragraph num="(13)"> <text>Unless the awardee already has a collective bargaining agreement, the awardees labor peace agreement as required under State Government Article, §9-1E-07(e)(6)(v), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(14)"> <text>Awardees employees are:</text> <paragraph num="(a)"> <text>Licensed as sports wagering employees; and</text> </paragraph> <paragraph num="(b)"> <text>Trained in the performance of their responsibilities;</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>Awardees and facilities preparations to receive the public and conduct safe and secure sports wagering; and</text> </paragraph> <paragraph num="(16)"> <text>Awardee has complied with any additional pre-opening conditions imposed by the Commission.</text> </paragraph> </paragraph> <paragraph num="H."> <text>If Commission staff determines that the awardee meets the requirements of §G of this regulation, staff shall issue the license.</text> </paragraph> <paragraph num="I."> <text>Renewal.</text> <paragraph num="(1)"> <text>A sports wagering facility licensee may apply for renewal by submitting a renewal application as specified in this chapter.</text> </paragraph> <paragraph num="(2)"> <text>The renewal fee for a sports wagering facility license is the amount equal to 1 percent of the licensees average annual proceeds from sports wagering for the preceding 3-year period, less any proceeds the licensee remitted in accordance with State Government Article, §91E12, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Class A-1 Sports Wagering Facility License."> <paragraph num="A."> <text>The Commission shall issue a Class A-1 Sports Wagering Facility License to an applicant that meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations.</text> </paragraph> <paragraph num="B."> <text>A Class A-1 Sports Wagering Facility License may only be issued to:</text> <paragraph num="(1)"> <text>A video lottery operator with more than 1,000 video lottery terminals;</text> </paragraph> <paragraph num="(2)"> <text>For a stadium in Prince Georges County that is primarily used for professional football (NFL), a license applicant that is:</text> <paragraph num="(a)"> <text>The owner; or</text> </paragraph> <paragraph num="(b)"> <text>The designee if an applicant designated an entity to hold the license;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The owner, or the designee of the owner, of a professional football franchise that is a lessee of a stadium in Baltimore City;</text> </paragraph> <paragraph num="(4)"> <text>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;</text> </paragraph> <paragraph num="(5)"> <text>The owner, or the designee of the owner, of a professional hockey league franchise, that is a lessee of a stadium in the State;</text> </paragraph> <paragraph num="(6)"> <text>The owner, or the designee of the owner, of a professional basketball association franchise, that is a lessee of a stadium in the State; or</text> </paragraph> <paragraph num="(7)"> <text>The owner, or the designee of the owner, of a professional soccer league franchise, that is a lessee of a stadium in the State.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The non-refundable application fee for a Class A-1 sports wagering facility is $2,000,000.</text> </paragraph> <paragraph num="D."> <text>The performance bond for a Class A-1 sports wagering facility license is:</text> <paragraph num="(1)"> <text>$2,000,000 for annual sports wagering revenue of $0 to $2,000,000;</text> </paragraph> <paragraph num="(2)"> <text>$4,000,000 for annual sports wagering revenue of $2,000,001 to $4,000,000; and</text> </paragraph> <paragraph num="(3)"> <text>$6,000,000 $4,000,000 for annual sports wagering revenue above $4,000,000.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Designee Designation. If an applicant that is an owner identified under §B(2)(7) of this regulation identifies a designee, the owner shall:</text> <paragraph num="(1)"> <text>Complete and execute an Affidavit of Owner of a Professional Sports Franchise or Stadium Supporting the Owners Designee to be the Applicant for, and Holder of, a Sports Wagering Facility License that:</text> <paragraph num="(a)"> <text>Identifies the designee;</text> </paragraph> <paragraph num="(b)"> <text>Acknowledges that the sports wagering law authorizes the Commission to issue a Class A-1 sports wagering facility license to an owner of a specified professional sports franchise or stadium, or to the owners designee, if the applicant meets all applicable requirements;</text> </paragraph> <paragraph num="(c)"> <text>Understands, acknowledges, and certifies that the designee is required to meet all applicable requirements for:</text> <paragraph num="(i)"> <text>Qualification by the Commission;</text> </paragraph> <paragraph num="(ii)"> <text>License award by SWARC;</text> </paragraph> <paragraph num="(iii)"> <text>License issuance by the Commission; and</text> </paragraph> <paragraph num="(iv)"> <text>Continuing obligations for the term of the license;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Understands, acknowledges, and certifies that the owner is prohibited from controlling or influencing the designee in the designees capacity as an applicant for or holder of a sports wagering facility license; and</text> </paragraph> <paragraph num="(e)"> <text>Understands, acknowledges, and certifies that the owner is prohibited from receiving from the designee any interest, percentage, or share of handle, proceeds, or profit, that is based on sports wagering; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Submit to the Commission documentation establishing that it has no control or influence over an owners designee.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Designee Responsibilities.</text> <paragraph num="(1)"> <text>The designee shall complete and execute an Affidavit of Designee of an Owner of a Professional Sports Franchise or Stadium Supporting the Owners Designee to be the Applicant for, and Holder of, a Sports Wagering Facility License that meets the same requirements in §E(1) of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>The designee shall submit to the Commission documentation that the owner has no control or influence over it.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Designee Substitution.</text> <paragraph num="(1)"> <text>If an owner seeks to replace the named designee, the owner and the designee shall submit to the Commission a request to replace the designee as the holder of the license.</text> </paragraph> <paragraph num="(2)"> <text>The new designee shall submit to the Commission an application for a sports wagering facility license.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may transfer the sports wagering facility license to the new designee after the Commission determines the new designee meets all applicable requirements for a sports wagering facility license, and issues the license.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Class A-2 Sports Wagering Facility License."> <paragraph num="A."> <text>The Commission shall issue a Class A-2 Sports Wagering Facility License to an applicant that meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations.</text> </paragraph> <paragraph num="B."> <text>A Class A-2 Sports Wagering Facility License may only be issued to:</text> <paragraph num="(1)"> <text>A Video lottery operator with 1,000 or fewer video lottery terminals; or</text> </paragraph> <paragraph num="(2)"> <text>A horse racing licensee under Business Regulation Article, §11-510(b) that is licensed by the Racing Commission to hold racing at:</text> <paragraph num="(a)"> <text>A race track located at Laurel Park; and</text> </paragraph> <paragraph num="(b)"> <text>Pimlico Race Course.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The nonrefundable application fee for a Class A-2 sports wagering facility license is $1,000,000.</text> </paragraph> <paragraph num="D."> <text>The performance bond for a Class A-2 sports wagering facility license is $3,000,000.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Class B-1 Sports Wagering Facility License."> <paragraph num="A."> <text>The Commission shall issue a Class B-1 sports wagering facility license to an applicant that:</text> <paragraph num="(1)"> <text>Meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations; and</text> </paragraph> <paragraph num="(2)"> <text>Is not eligible for a Class B-2 sports wagering facility license under State Government Article, §9-1E-06(a)(iv), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Class B-1 sports wagering facility license is one license category of the 30 licenses the Commission may issue to Class B-1 or Class B-2 sports wagering facility applicants under State Government Article, §9-1E-06(a)(2)(ii), Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The nonrefundable application fee for a Class B-1 sports wagering facility license is $250,000.</text> </paragraph> <paragraph num="D."> <text>The performance bond for a Class B-1 sports wagering facility license is $750,000.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Class B-2 Sports Wagering Facility License."> <paragraph num="A."> <text>The Commission shall issue a Class B-2 sports wagering facility license to an applicant that meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations, and has less than either:</text> <paragraph num="(1)"> <text>25 full-time equivalent employees; or</text> </paragraph> <paragraph num="(2)"> <text>$3,000,000 in annual aggregate gross receipts of the applicants businesses.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The nonrefundable application fee for a Class B-2 sports wagering facility license is $50,000.</text> </paragraph> <paragraph num="C."> <text>The performance bond for a Class B-2 sports wagering facility license is $150,000.</text> </paragraph> <paragraph num="D."> <text>Request to Change Proposed Facility Location.</text> <paragraph num="(1)"> <text>An applicant for a Class B-2 sports wagering facility license may submit to the Commission and SWARC a request to amend the application for the sole purpose of altering the proposed location of the sports wagering facility, if:</text> <paragraph num="(a)"> <text>The Commission qualified the applicant on or before February 15, 2023;</text> </paragraph> <paragraph num="(b)"> <text>SWARC awarded the applicant’s sports wagering facility license on or before February 15, 2023; and</text> </paragraph> <paragraph num="(c)"> <text>The Commission has not yet issued the license.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The applicant shall submit its written request to the Commission and SWARC so that the request is received by both commissions on or before December 31, 2023.</text> </paragraph> <paragraph num="(3)"> <text>If SWARC approves the request, the Commission may:</text> <paragraph num="(a)"> <text>Consider a timely written request;</text> </paragraph> <paragraph num="(b)"> <text>In the Commission’s discretion, grant or deny the request; and</text> </paragraph> <paragraph num="(c)"> <text>Notify the applicant of the outcome.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Nothing in this section may be construed to change or supersede any provision of State Government Article, §9-1E-01, et seq., Annotated Code of Maryland, or any other provision in this subtitle or COMAR 36.11.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Class B-1 and B-2 Sports Wagering Facility Licenses."> <paragraph num="A."> <text>The Commission shall issue a Class B-1 or B-2 sports wagering facility license to an applicant that meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commission’s regulations, and is:</text> <paragraph num="(1)"> <text>The holder of a license issued by the State Racing Commission to the Maryland State Fair Society to hold a race meeting specified under Business Regulation Article, §11–524, Annotated Code of Maryland:</text> <paragraph num="(a)"> <text>Known as the Maryland State Fair and Agricultural Society, Inc.; or</text> </paragraph> <paragraph num="(b)"> <text>A subsidiary of the license holder;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Unless a satellite simulcast facility is located at a video lottery facility or a racetrack, a person who is the owner or lessee of a satellite simulcast facility that was granted a permit for satellite simulcast betting before January 1, 2021; or</text> </paragraph> <paragraph num="(3)"> <text>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, who is:</text> <paragraph num="(a)"> <text>Arundel Amusement, Inc. T/A Bingo World; or</text> </paragraph> <paragraph num="(b)"> <text>Chesapeake Amusements, Inc. d/b/a Rod-N-Reel Bingo.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A person that is operating at the racing location at Fair Hill, under Business Regulation Article, Title 11, Subtitle 7, Annotated Code of Maryland, on lands owned by the Department of Natural Resources may apply for a Class B license.</text> <paragraph num="(1)"> <text>The person that applies for the Class B license shall be a:</text> <paragraph num="(a)"> <text>For-profit entity;</text> </paragraph> <paragraph num="(b)"> <text>Nonprofit organization; or</text> </paragraph> <paragraph num="(c)"> <text>Public-private partnership.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the Commission issues the person a sports wagering facility license, the licensee may only accept wagers in the facility’s special event zone.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Not including the Class B-1 and Class B-2 licenses that shall be issued under §A of this regulation, the Commission may issue no more than a cumulative total of 30 Class B-1 and B-2 sports wagering facility licenses described under State Government Article, §9-1E-06(a)(2)(ii), Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>The Commission shall deny an application for any of the 30 Class B-1 and Class B-2 described in §C of this regulation to an applicant:</text> <paragraph num="(1)"> <text>Who is eligible to apply for a Class A-1 or A-2 sports wagering facility license;</text> </paragraph> <paragraph num="(2)"> <text>Who holds a Class A-1 or A-2 sports wagering facility license; or</text> </paragraph> <paragraph num="(3)"> <text>Whose sports wagering facility would be located:</text> <paragraph num="(a)"> <text>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;</text> </paragraph> <paragraph num="(b)"> <text>In a county other than Allegany County, Cecil County, or Worcester County, within a 1.5-mile radius of a Class A-1 or A-2 sports wagering facility; or</text> </paragraph> <paragraph num="(c)"> <text>Within a 1.5-mile radius of any other Class B-1 or B-2 sports wagering facility.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="In-person Wagering at Sports Wagering Facilities."> <paragraph num="A."> <text>A sports wagering facility licensee may accept a wager made by an individual who is physically present at the sports wagering facility at a betting window.</text> </paragraph> <paragraph num="B."> <text>A sports wagering facility licensee may accept a wager made by an individual who is physically present at a sports wagering facility on sports wagering equipment that is a self-service device approved by the Commission including a:</text> <paragraph num="(1)"> <text>Kiosk;</text> </paragraph> <paragraph num="(2)"> <text>Machine; or</text> </paragraph> <paragraph num="(3)"> <text>Other device.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Unless a sports wagering facility licensee has obtained a mobile sports wagering license, a sports wagering licensee may:</text> <paragraph num="(1)"> <text>Offer or conduct only in-person wagering on its premises; and</text> </paragraph> <paragraph num="(2)"> <text>Offer or conduct sports wagering at its facility, or otherwise on its premises, by using an in-house WiFi network only on devices provided by the sports wagering licensee for use on the gaming or wagering floor.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering facility licensee may apply for a mobile sports wagering license.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Ongoing Requirements for All Sports Wagering Facility Licensees."> <paragraph num="A."> <text>Local Zoning Laws.</text> <paragraph num="(1)"> <text>Except as provided in §A(2) of this regulation, a sports wagering facility is subject to local zoning laws.</text> </paragraph> <paragraph num="(2)"> <text>The use of a facility for sports wagering is not required to be submitted to, or approved by, a county or municipal zoning board, authority, or unit if, on May 18, 2021, it was properly zoned and operating:</text> <paragraph num="(a)"> <text>A video lottery facility;</text> </paragraph> <paragraph num="(b)"> <text>Pari–mutuel betting on horse racing; or</text> </paragraph> <paragraph num="(c)"> <text>Electronic bingo or electronic tip jar machines.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering facility licensee shall:</text> <paragraph num="(1)"> <text>Comply with all State and federal data security laws; and</text> </paragraph> <paragraph num="(2)"> <text>Maintain all sports wagering data securely for at least 5 years from date of licensure or most recent renewal.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering facility shall conduct wagering only during the hours approved by the Commission.</text> </paragraph> <paragraph num="D."> <text>Except as provided in Regulation .10 of this chapter, after prior written notification to, and approval by, the Commission, a sports wagering facility licensee may contract with a sports wagering facility operator licensee to operate its sports wagering facility.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Video Lottery Operator as Sports Wagering Facility Operator."> <paragraph num="A."> <text>A sports wagering facility licensee that is a stadium described under State Government Article, §9-1E-09(a)(1)(iii), Annotated Code of Maryland, may contract with a video lottery operator, or its affiliate or subsidiary, to provide sports wagering operation services at the stadium.</text> </paragraph> <paragraph num="B."> <text>Subject to notification and approval requirements of Regulation .09D of this chapter, a video lottery operator, or its affiliate or subsidiary, described in §A of this regulation may only be a sports wagering facility operator, if it operates a video lottery facility in the same county as the stadium.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Minority Business Enterprise Participation Goals and Reporting Requirements."> <paragraph num="A."> <text>These requirements pertain to all sports wagering facility licensees.</text> </paragraph> <paragraph num="B."> <text>In this regulation, “license” and “licensee” refers to the sports wagering facility licensee.</text> </paragraph> <paragraph num="C."> <text>If a licensee contracts with a sports wagering facility operator licensee to conduct its sports wagering operations, the licensee remains responsible for compliance with the requirements in this regulation.</text> </paragraph> <paragraph num="D."> <text>On or before 6 months after the Commission issues a license, the Governor’s Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General and the 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.</text> </paragraph> <paragraph num="E."> <text>The licensee shall provide all information required by the Governor’s Office of Small, Minority, and Women Business Affairs, the Office of the Attorney General, and the Commission.</text> </paragraph> <paragraph num="F."> <text>To the extent practicable and authorized by the United States Constitution, a licensee shall comply with the State’s Minority Business Program.</text> </paragraph> <paragraph num="G."> <text>Annual Required Reporting.</text> <paragraph num="(1)"> <text>On or before July 1 of each year, a licensee shall report to the Commission:</text> <paragraph num="(a)"> <text>The number of minority and women owners of the licensee;</text> </paragraph> <paragraph num="(b)"> <text>The ownership interest of any minority and women owners of the licensee;</text> </paragraph> <paragraph num="(c)"> <text>The number of minority and women employees of the licensee;</text> </paragraph> <paragraph num="(d)"> <text>The number of current contracts the licensee has with minority-owned and women-owned subcontractors; and</text> </paragraph> <paragraph num="(e)"> <text>Any other information the Commission requires.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Or before September 1 of each year, all licensees shall report to the Commission the following data, broken down by categories defined by the Commission:</text> <paragraph num="(a)"> <text>The operation of sports wagering in the State; and</text> </paragraph> <paragraph num="(b)"> <text>Sports wagering revenues from the immediately preceding fiscal year, including:</text> <paragraph num="(i)"> <text>Handle;</text> </paragraph> <paragraph num="(ii)"> <text>Hold;</text> </paragraph> <paragraph num="(iii)"> <text>Hold percentage; and</text> </paragraph> <paragraph num="(iv)"> <text>Proceeds.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>December 1, 2025 Report to the General Assembly.</text> <paragraph num="(1)"> <text>The Commission is required to submit a report concerning licenses and mobile sports wagering licenses, the subject of which includes:</text> <paragraph num="(a)"> <text>The racial, ethnic, gender, and geographic diversity of Class B-1 and B-2 licensees and mobile sports wagering licensees;</text> </paragraph> <paragraph num="(b)"> <text>The level of market saturation of sports wagering in the State; and</text> </paragraph> <paragraph num="(c)"> <text>Whether the number of Class B-1 and B-2 sports wagering facility licenses and mobile sports wagering licenses that may be issued should be increased.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In order to carry out the requirements of §H(1), licensees shall provide information requested by the Commission on or before June 1, 2025.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland; Ch. 638, Acts of 2023</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02G amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03D amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529); April 27, 2026 (53:8 Md. R 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03E—G adopted as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); adopted permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04D amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05D amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06C amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06D adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); adopted permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08A amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> </annotations> </chapter> <chapter num="05" heading="Specific Requirements for Mobile Sports Wagering Licenses"> <regulation prefix="Regulation" num=".01" heading="General."> <paragraph num="A."> <text>The Commission shall issue a mobile sports wagering license to an applicant that meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations.</text> </paragraph> <paragraph num="B."> <text>Unless a person holds a valid mobile sports wagering license awarded by the Sports Wagering Application Review Commission and issued by the Commission, the person may not conduct, offer, or operate online sports wagering in the State.</text> </paragraph> <paragraph num="C."> <text>A mobile sports wagering license issued by the Commission authorizes the licensee to, within the scope of its license, conduct or operate online sports wagering under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations.</text> </paragraph> <paragraph num="D."> <text>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.</text> </paragraph> <paragraph num="E."> <text>The non-refundable application fee for a mobile sports wagering license is $500,000.</text> </paragraph> <paragraph num="F."> <text>The performance bond for a mobile sports wagering license is $1,500,000.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Process for Obtaining a Mobile Sports Wagering License."> <paragraph num="A."> <text>An applicant for a mobile sports wagering license shall submit an application to:</text> <paragraph num="(1)"> <text>The SWARC in the format and time specified by the SWARC; and</text> </paragraph> <paragraph num="(2)"> <text>As specified in COMAR 36.10.02, the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If an application submitted to the Commission is timely and complies with the requirements in COMAR 36.10.02, the Commission staff shall:</text> <paragraph num="(1)"> <text>Determine whether the applicant meets qualification requirements as described in COMAR 36.10.03, and this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>Notify the SWARC of the Commissions qualification determination.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The SWARC may not award a license to an applicant that the Commission has found not qualified.</text> </paragraph> <paragraph num="D."> <text>After the Commission notifies SWARC that it has determined an applicant is qualified, the SWARC shall:</text> <paragraph num="(1)"> <text>Evaluate an applicant for license award; and</text> </paragraph> <paragraph num="(2)"> <text>Notify the Commission of its license award decision.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The Commission may not issue a mobile sports wagering license to an applicant until SWARC has notified the Commission that it has awarded a license to the applicant.</text> </paragraph> <paragraph num="F."> <text>After SWARC awards a license, the applicant is an awardee.</text> </paragraph> <paragraph num="G."> <text>Agency staff shall determine whether the awardee has met applicable technical and operational requirements in this chapter for a mobile sports wagering license, and determine whether it meets the Commission’s requirements for:</text> <paragraph num="(1)"> <text>Payment of the application fee of $500,000;</text> </paragraph> <paragraph num="(2)"> <text>Evidence of a performance bond in the amount of $1,500,000;</text> </paragraph> <paragraph num="(3)"> <text>Fees and qualification requirements under COMAR 36.10.02 and 36.10.03;</text> </paragraph> <paragraph num="(4)"> <text>Hours of operation;</text> </paragraph> <paragraph num="(5)"> <text>Technical specifications;</text> </paragraph> <paragraph num="(6)"> <text>Internal controls under COMAR 36.10.13;</text> </paragraph> <paragraph num="(7)"> <text>Sports wagering platform;</text> </paragraph> <paragraph num="(8)"> <text>Sports wagering equipment;</text> </paragraph> <paragraph num="(9)"> <text>Sports wagering data information center;</text> </paragraph> <paragraph num="(10)"> <text>Sports wagering operations;</text> </paragraph> <paragraph num="(11)"> <text>Types of sporting event wagers to be offered;</text> </paragraph> <paragraph num="(12)"> <text>Testing and controlled demonstrations;</text> </paragraph> <paragraph num="(13)"> <text>Awardees employees are:</text> <paragraph num="(a)"> <text>Licensed as sports wagering employees; and</text> </paragraph> <paragraph num="(b)"> <text>Trained in the performance of their responsibilities;</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>Awardees preparations to conduct safe and secure sports wagering; and</text> </paragraph> <paragraph num="(15)"> <text>Awardee has complied with any additional pre-commencement conditions imposed by the Commission.</text> </paragraph> </paragraph> <paragraph num="H."> <text>If Commission staff determines that the awardee meets the requirements of §G of this regulation, staff shall issue the license.</text> </paragraph> <paragraph num="I."> <text>Renewal.</text> <paragraph num="(1)"> <text>A mobile sports wagering licensee may apply for renewal, and the Commission may renew the license if the licensee:</text> <paragraph num="(a)"> <text>Submits an application for renewal to the Commission at least 6 months before the mobile sports wagering licensees license expires;</text> </paragraph> <paragraph num="(b)"> <text>Continues to comply with all licensing requirements;</text> </paragraph> <paragraph num="(c)"> <text>Submits to a background investigation under COMAR 36.10.02, and pays all associated fees; and</text> </paragraph> <paragraph num="(d)"> <text>Pays a license renewal fee.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The renewal fee for a mobile sports wagering license is the amount equal to 1 percent of the licensees average annual gross sports wagering revenues proceeds from sports wagering for the preceding 3year period, less any proceeds the licensee remitted in accordance with State Government Article, §9-1E-12, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="In-State Wagering Through a Mobile Sports Wagering Licensee."> <paragraph num="A."> <text>A mobile sports wagering licensee may accept wagers from bettors on sporting events that are made exclusively through online sports wagering by an individual physically located in the State.</text> </paragraph> <paragraph num="B."> <text>To participate in online sports wagering, an individual shall register:</text> <paragraph num="(1)"> <text>If the mobile sports wagering licensee is also a sports wagering facility licensee, in person at a facility or location identified in State Government Article, §9-1E-09(a)(1), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(2)"> <text>Online, using a website or mobile application approved in advance by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Ongoing Requirements for a Mobile Sports Wagering Licensee."> <paragraph num="A."> <text>A mobile sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Use technical and operational measures to prevent online wagering by individuals who are underage or physically located outside the State, including:</text> <paragraph num="(a)"> <text>Age verification procedures, which may require the use of a third party acceptable to Commission staff that is in the business of verifying an individual’s personally identifiable information; and</text> </paragraph> <paragraph num="(b)"> <text>Geolocation technology to accurately verify a bettor’s geographic location within the State as determined by U.S. Census Map;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Include on its sports wagering website a description of the possible consequences for unauthorized wagering by an:</text> <paragraph num="(a)"> <text>Underage bettor; or</text> </paragraph> <paragraph num="(b)"> <text>Out–of–state bettor;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Provide a description of consequences required under §A(2) of this regulation, which may include:</text> <paragraph num="(a)"> <text>Immediate stoppage of play;</text> </paragraph> <paragraph num="(b)"> <text>Account closure; and</text> </paragraph> <paragraph num="(c)"> <text>Forfeiture and confiscation of winnings or unredeemed items;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Establish procedures to prevent excluded individuals from engaging in wagering activity or being paid winnings as provided in COMAR 36.10.10 and 36.10.11;</text> </paragraph> <paragraph num="(5)"> <text>Comply with all State and federal data security laws; and</text> </paragraph> <paragraph num="(6)"> <text>Maintain all sports wagering data securely for at least 5 years from date of the wager.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A mobile sports wagering licensee may enter into a contract with only one online sports wagering operator at a time.</text> <paragraph num="(1)"> <text>For purposes of enforcing the limitation, the Commission shall treat all mobile sports wagering licensees that are related entities as the single mobile sports wagering licensee.</text> </paragraph> <paragraph num="(2)"> <text>Except for a person conducting testing of a licensee’s sports wagering platform, as required by the Commission, only a person to which the Commission has issued a mobile sports wagering license, or an online sports wagering operator license with which the mobile sports wagering licensee has a current contract, may access the online sports wagering operating system or associated equipment.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Only a mobile sports wagering licensee, or its licensed online sports wagering operator, may operate or offer online sports wagering on behalf of the mobile sports wagering licensee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Minority Business Enterprise Participation Goals and Reporting Requirements."> <paragraph num="A."> <text>These requirements pertain to all mobile sports wagering licensees.</text> </paragraph> <paragraph num="B."> <text>In this regulation, “license” and “licensee” refers to the mobile sports wagering licensee.</text> </paragraph> <paragraph num="C."> <text>If a licensee contracts with an online sports wagering operator licensee to conduct its mobile sports wagering operations, the licensee remains responsible for compliance with the requirements in this regulation.</text> </paragraph> <paragraph num="D."> <text>On or before 6 months after the Commission issues a license, the Governor’s Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General and the 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.</text> </paragraph> <paragraph num="E."> <text>The licensee shall provide all information required or requested by the Governor’s Office of Small, Minority, and Women Business Affairs, the Office of the Attorney General, and the Commission.</text> </paragraph> <paragraph num="F."> <text>To the extent practicable and authorized by the United States Constitution, a licensee shall comply with the State’s Minority Business Program.</text> </paragraph> <paragraph num="G."> <text>Annual Required Reporting.</text> <paragraph num="(1)"> <text>On or before July 1 of each year, a licensee shall report to the Commission:</text> <paragraph num="(a)"> <text>The number of minority and women owners of the licensee;</text> </paragraph> <paragraph num="(b)"> <text>The ownership interest of any minority and women owners of the licensee;</text> </paragraph> <paragraph num="(c)"> <text>The number of minority and women employees of the licensee;</text> </paragraph> <paragraph num="(d)"> <text>The number of current contracts the licensee has with minority- and women-owned subcontractors; and</text> </paragraph> <paragraph num="(e)"> <text>Any other information the Commission requires.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>On or before September 1 of each year, all licensees shall report to the Commission the following data, broken down by categories defined by the Commission:</text> <paragraph num="(a)"> <text>The operation of sports wagering in the State; and</text> </paragraph> <paragraph num="(b)"> <text>Sports wagering revenues from the immediately preceding fiscal year, including:</text> <paragraph num="(i)"> <text>Handle;</text> </paragraph> <paragraph num="(ii)"> <text>Hold;</text> </paragraph> <paragraph num="(iii)"> <text>Hold percentage; and</text> </paragraph> <paragraph num="(iv)"> <text>Proceeds.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>December 1, 2025 Report to the General Assembly.</text> <paragraph num="(1)"> <text>The Commission is required to submit a report concerning licenses and sports wagering facility licenses, the subject of which includes:</text> <paragraph num="(a)"> <text>The racial, ethnic, gender, and geographic diversity of licensees and Class B-1 and B-2 sports facility licensees;</text> </paragraph> <paragraph num="(b)"> <text>The level of market saturation of sports wagering in the State; and</text> </paragraph> <paragraph num="(c)"> <text>Whether the number of licenses and Class B-1 and B-2 sports wagering facility licenses that may be issued should be increased.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In order to carry out the requirements of §H(1), licensees shall provide information requested by the Commission on or before June 1, 2025.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01F amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02G amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective November 14, 2022 (49:23 Md. R. 997)</annotation> </annotations> </chapter> <chapter num="06" heading="Specific Requirements for Other Licenses Required for Sports Wagering"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This chapter contains the licensing requirements for a person in a licensing category in State Government Article, §9-1E-05(a)(2), (3), or (4) and (b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The Commission may issue a license to a person covered in this chapter without requiring an applicant to submit an application to, or be awarded a license by, the SWARC.</text> </paragraph> <paragraph num="C."> <text>Unless context dictates otherwise, applicants and licensees under COMAR 36.10.06 are subject to, and shall comply with, the processes and requirements in:</text> <paragraph num="(1)"> <text>COMAR 36.10.02; and</text> </paragraph> <paragraph num="(2)"> <text>COMAR 36.10.03.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Commission may issue a license that is:</text> <paragraph num="(1)"> <text>An online sports wagering operator;</text> </paragraph> <paragraph num="(2)"> <text>A sports wagering facility operator;</text> </paragraph> <paragraph num="(3)"> <text>A sports wagering contractor; or</text> </paragraph> <paragraph num="(4)"> <text>A sports wagering employee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Online Sports Wagering Operator License."> <paragraph num="A."> <text>Unless a person holds a valid online sports wagering operator license issued by the Commission, the person may not conduct, offer, or operate online sports wagering on behalf of a mobile sports wagering licensee.</text> </paragraph> <paragraph num="B."> <text>The Commission may issue an online sports wagering operator license to an applicant that meets all applicable licensing requirements for a mobile sports wagering licensee under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations.</text> </paragraph> <paragraph num="C."> <text>An online sports wagering operator license authorizes a licensee to contract with a mobile sports wagering licensee to conduct online sports wagering on behalf of the mobile sports wagering licensee.</text> </paragraph> <paragraph num="D."> <text>An applicant for an online sports wagering operator license shall:</text> <paragraph num="(1)"> <text>Pay a nonrefundable application fee of $25,000;</text> </paragraph> <paragraph num="(2)"> <text>Provide evidence of a performance bond in the amount of $1,500,000;</text> </paragraph> <paragraph num="(3)"> <text>If not covered under the online sports wagering licensee’s performance bond for which the sports wagering facility operator licensee is conducting sports wagering, obtain the same performance bond amount that is required for that sports wagering facility license class as provided in COMAR 36.10.05;</text> </paragraph> <paragraph num="(4)"> <text>Meet all license application requirements under COMAR 36.10.02; and</text> </paragraph> <paragraph num="(5)"> <text>Meet all qualification requirements under COMAR 36.10.03.</text> </paragraph> </paragraph> <paragraph num="E."> <text>In this regulation, license, licensee and applicant refers to the online sports wagering operator licensee or applicant.</text> </paragraph> <paragraph num="F."> <text>Agency staff shall determine whether the applicant has met applicable technical and operational requirements for a license, and determine whether it meets the Commission’s requirements for:</text> <paragraph num="(1)"> <text>Payment of the application fee as set forth in §D of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Evidence of a performance bond in the amount as set forth in §D of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>Fees and qualification requirements under COMAR 36.10.02 and 36.10.03;</text> </paragraph> <paragraph num="(4)"> <text>Hours of operation;</text> </paragraph> <paragraph num="(5)"> <text>Technical specifications;</text> </paragraph> <paragraph num="(6)"> <text>Internal controls under COMAR 36.10.13;</text> </paragraph> <paragraph num="(7)"> <text>Sports wagering platform;</text> </paragraph> <paragraph num="(8)"> <text>Sports wagering equipment;</text> </paragraph> <paragraph num="(9)"> <text>Sports wagering data information center;</text> </paragraph> <paragraph num="(10)"> <text>Types of sporting event wagers to be offered;</text> </paragraph> <paragraph num="(11)"> <text>Testing and controlled demonstrations;</text> </paragraph> <paragraph num="(12)"> <text>Applicants employees are:</text> <paragraph num="(a)"> <text>Licensed as sports wagering employees; and</text> </paragraph> <paragraph num="(b)"> <text>Trained in the performance of their responsibilities;</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>Applicants preparations to conduct secure sports wagering; and</text> </paragraph> <paragraph num="(14)"> <text>Applicant has complied with any additional pre-commencement conditions imposed by the Commission.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Commission staff may issue a license to an applicant it has determined is qualified under §F of this regulation.</text> </paragraph> <paragraph num="H."> <text>Application for an Additional Online Sports Wagering Operator License.</text> <paragraph num="(1)"> <text>An online sports wagering operator may conduct online sports wagering on behalf of more than one mobile sports wagering licensees.</text> </paragraph> <paragraph num="(2)"> <text>For an online sports wagering operator licensee that applies for a second, or successive, license with a different mobile sports wagering licensee within the term of an existing license that is in good standing, the applicant shall:</text> <paragraph num="(a)"> <text>Submit an application to the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Meet the requirements of §D of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission’s approval of online sports wagering operator’s qualifications is valid for 5 years from the date that the Agency issues the online sports wagering operator license.</text> </paragraph> <paragraph num="(4)"> <text>Staff may issue additional online sports wagering operator licenses to a qualified licensee.</text> </paragraph> <paragraph num="(5)"> <text>If the existing term of an online sports wagering operator license is not expired, Agency staff may:</text> <paragraph num="(a)"> <text>Allow the online sports wagering operator to submit an abbreviated license application for an additional location in a form specified by the Commission;</text> </paragraph> <paragraph num="(b)"> <text>Qualify the online sports wagering operator for an additional operator license; and</text> </paragraph> <paragraph num="(c)"> <text>If no problems are identified, issue an additional license without necessity of a qualification hearing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Renewal. An online sports wagering operator license may be renewed by the Commission if the licensee:</text> <paragraph num="(1)"> <text>Submits an application for renewal to the Commission at least 1 year before the license expires;</text> </paragraph> <paragraph num="(2)"> <text>Continues to comply with all licensing requirements, including obtaining a performance bond for the renewal term;</text> </paragraph> <paragraph num="(3)"> <text>Submits to a background investigation under COMAR 36.10.02, and pays all associated fees; and</text> </paragraph> <paragraph num="(4)"> <text>Pays a license renewal fee of $25,000 for each online sports wagering operator license for which it seeks renewal.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Sports Wagering Facility Operator License."> <paragraph num="A."> <text>Unless a person holds a valid sports wagering facility operator license issued by the Commission, the person may not conduct, offer, or operate sports wagering at a sports wagering facility on behalf of a sports wagering facility licensee under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The Commission may issue a sports wagering facility operator license to an applicant that meets all applicable licensing requirements for a sports wagering facility under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations.</text> </paragraph> <paragraph num="C."> <text>A sports wagering facility operator license authorizes a licensee to contract with a sports wagering facility licensee to conduct, offer, or operate sports wagering at a sports wagering facility on behalf of a sports wagering facility licensee.</text> </paragraph> <paragraph num="D."> <text>An applicant for a sports wagering facility operator license shall:</text> <paragraph num="(1)"> <text>Pay a nonrefundable application fee of $25,000;</text> </paragraph> <paragraph num="(2)"> <text>If not covered under the sports wagering facility licensee’s performance bond for which the sports wagering facility operator licensee is conducting sports wagering, obtain the same performance bond amount that is required for that sports wagering facility license class set forth in COMAR 36.10.04;</text> </paragraph> <paragraph num="(3)"> <text>Meet all license application requirements under COMAR 36.10.02; and</text> </paragraph> <paragraph num="(4)"> <text>Meet all qualification requirements under COMAR 36.10.03.</text> </paragraph> </paragraph> <paragraph num="E."> <text>In this regulation, license, licensee, and applicant refer to the sports wagering facility operator licensee or applicant.</text> </paragraph> <paragraph num="F."> <text>Agency staff shall determine whether the applicant has met applicable technical and operational requirements, and determine whether it meets the Commission’s requirements for:</text> <paragraph num="(1)"> <text>Payment of the application fee as set forth in §D of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Evidence of securing a performance bond for the benefit of the Agency and the State in the amount as set forth in §D of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>Fees and qualification requirements under COMAR 36.10.02 and 36.10.03;</text> </paragraph> <paragraph num="(4)"> <text>Hours of operation;</text> </paragraph> <paragraph num="(5)"> <text>Technical specifications;</text> </paragraph> <paragraph num="(6)"> <text>Internal controls under COMAR 36.10.13;</text> </paragraph> <paragraph num="(7)"> <text>Sports wagering platform;</text> </paragraph> <paragraph num="(8)"> <text>Sports wagering equipment;</text> </paragraph> <paragraph num="(9)"> <text>Sports wagering operations;</text> </paragraph> <paragraph num="(10)"> <text>Types of sporting event wagers to be offered;</text> </paragraph> <paragraph num="(11)"> <text>Testing and controlled demonstrations;</text> </paragraph> <paragraph num="(12)"> <text>Applicants employees are:</text> <paragraph num="(a)"> <text>Licensed as sports wagering employees; and</text> </paragraph> <paragraph num="(b)"> <text>Trained in the performance of their responsibilities;</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>Applicants preparations to conduct secure sports wagering; and</text> </paragraph> <paragraph num="(14)"> <text>Applicant has complied with any additional pre-commencement conditions imposed by the Commission.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Commission staff may issue a license to an applicant it has determined is qualified under §F of this regulation.</text> </paragraph> <paragraph num="H."> <text>A sports wagering facility operator licensee:</text> <paragraph num="(1)"> <text>Is subject to all the requirements for the sports wagering facility licensee for which it operates sports wagering; and</text> </paragraph> <paragraph num="(2)"> <text>May perform for a sports wagering facility licensee:</text> <paragraph num="(a)"> <text>The same operations and functions that the sports wagering facility licensee is authorized to perform; and</text> </paragraph> <paragraph num="(b)"> <text>Only at the facility where the sports wagering facility licensee is authorized to offer sports wagering.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Application for an Additional Sports Wagering Facility Operator License.</text> <paragraph num="(1)"> <text>A sports wagering facility operator may apply for a sports wagering facility operator license for more than one sports wagering facility licensee.</text> </paragraph> <paragraph num="(2)"> <text>A licensee that applies to be an operator for more than one sports wagering facility licensee shall:</text> <paragraph num="(a)"> <text>Submit an application to the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Meet the requirements of Regulation .02D of this chapter.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the existing sports wagering facility operator license term is not expired, staff may:</text> <paragraph num="(a)"> <text>Allow the sports wagering facility operator to submit an abbreviated license application in a form specified by the Commission;</text> </paragraph> <paragraph num="(b)"> <text>Use the background investigation of the licensees existing license to qualify the sports wagering facility operator for a subsequent operator license; and</text> </paragraph> <paragraph num="(c)"> <text>If no problems are identified, issue an additional license without necessity of a qualification hearing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>Renewal. Agency staff may renew a sports wagering facility operator license if the licensee:</text> <paragraph num="(1)"> <text>Submits an application for renewal to the Commission at least 1 year before the license expires;</text> </paragraph> <paragraph num="(2)"> <text>Continues to comply with all licensing requirements, including obtaining a performance bond for the renewal term;</text> </paragraph> <paragraph num="(3)"> <text>Submits to a background investigation under COMAR 36.10.02; and</text> </paragraph> <paragraph num="(4)"> <text>Submits a license renewal fee of $25,000 for each sports wagering facility operator license for which it seeks renewal.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Sports Wagering Contractor Licenses."> <paragraph num="A."> <text>In this regulation, license, licensee, and applicant refer to the sports wagering contractor licensee or applicant.</text> </paragraph> <paragraph num="B."> <text>Unless a person holds a valid sports wagering contractor license issued by the Commission, the person may not conduct, offer, or operate sports wagering contractor services for a sports wagering licensee under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The Commission may issue a sports wagering contractor license to an applicant that meets all applicable licensing requirements for a sports wagering contractor under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations.</text> </paragraph> <paragraph num="D."> <text>If a sports wagering licensee under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, engages a person to provide services as a sports wagering contractor, the person shall meet the requirements of this regulation.</text> </paragraph> <paragraph num="E."> <text>A sports wagering contractor license authorizes a licensee to contract with a sports wagering licensee to conduct, offer, or operate sports contractor services for a sports wagering licensee.</text> </paragraph> <paragraph num="F."> <text>All sports wagering contractor applicants and licensees shall meet the license requirements specified for a sports wagering contractor in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and COMAR 36.03.02.14, and unless context dictates otherwise:</text> <paragraph num="(1)"> <text>COMAR 36.10.02;</text> </paragraph> <paragraph num="(2)"> <text>COMAR 36.10.03; and</text> </paragraph> <paragraph num="(3)"> <text>This regulation.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Application and License Fees.</text> <paragraph num="(1)"> <text>For a Tier 1 sports wagering contractor, the:</text> <paragraph num="(a)"> <text>Application fee is $1,500;</text> </paragraph> <paragraph num="(b)"> <text>License fee is $2,500; and</text> </paragraph> <paragraph num="(c)"> <text>Background investigation deposit is $2,000.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a Tier 2 sports wagering contractor, the:</text> <paragraph num="(a)"> <text>Application fee is $750;</text> </paragraph> <paragraph num="(b)"> <text>License fee is $800; and</text> </paragraph> <paragraph num="(c)"> <text>Background investigation deposit is $2,000.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Renewal. The Commission may renew the license if the licensee:</text> <paragraph num="(1)"> <text>Submits an application for renewal to the Commission at least 1 year before the license expires;</text> </paragraph> <paragraph num="(2)"> <text>Continues to comply with all licensing requirements;</text> </paragraph> <paragraph num="(3)"> <text>Submits to a background investigation under COMAR 36.10.02; and</text> </paragraph> <paragraph num="(4)"> <text>Pays a license renewal fee.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Exemptions from Certain Requirements. A sports wagering contractor is exempt from:</text> <paragraph num="(1)"> <text>Except as provided in §K of this regulation, if a sports wagering contractor is covered by the performance bond of the sports wagering licensee with which it contracts, bond requirements; and</text> </paragraph> <paragraph num="(2)"> <text>Unless the sports wagering contractor is engaged under a management agreement or as a lessee or tenant, labor peace agreement requirements under State Government Article, §9-1E-07(6)(e)(v), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="J."> <text>If a sports wagering contractor is not covered by the performance bond of the sports wagering licensee with which it contracts, the Commission may require a performance bond in an amount that relates to the work performed by the sports wagering contractor.</text> </paragraph> <paragraph num="K."> <text>Independent Evaluator.</text> <paragraph num="(1)"> <text>In addition to complying with requirements for all applicants for a Tier 1 sports wagering contractor license, an applicant for a Tier 1 contractor license that is an independent evaluator:</text> <paragraph num="(a)"> <text>Shall have demonstrated experience and expertise in evaluating and rating sports wagering content;</text> </paragraph> <paragraph num="(b)"> <text>Shall have an audit process constructed and maintained by in-house, licensed certified public accountants;</text> </paragraph> <paragraph num="(c)"> <text>Shall have evaluation and rating procedures that are unable to be adjusted, duplicated, or altered by the persons subject to evaluation;</text> </paragraph> <paragraph num="(d)"> <text>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;</text> </paragraph> <paragraph num="(e)"> <text>May not receive or share in, directly or indirectly, the receipts or proceeds of any sports wagering activities; and</text> </paragraph> <paragraph num="(f)"> <text>May not have any revenue-sharing relationship with, or other financial interest in, a sports wagering licensee or sports wagering operator.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Notwithstanding any other requirement in COMAR 36.10, the Commission may require a performance bond in an amount that relates to the work performed by the independent evaluator.</text> </paragraph> <paragraph num="(3)"> <text>Prohibition on Wagering.</text> <paragraph num="(a)"> <text>A wager on a sporting event may not be placed by an independent evaluator or a person that is:</text> <paragraph num="(i)"> <text>Regardless of percentage of ownership, a legal or beneficial owner of an independent evaluator;</text> </paragraph> <paragraph num="(ii)"> <text>Regardless of compensation amount or type, an employee of an independent evaluator;</text> </paragraph> <paragraph num="(iii)"> <text>An affiliate of an independent evaluator;</text> </paragraph> <paragraph num="(iv)"> <text>A person that provides a paid or free service to an independent evaluator that is related to sports wagering; or</text> </paragraph> <paragraph num="(v)"> <text>An agent or representative of an independent evaluator.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A wager on a sporting event may not be placed by:</text> <paragraph num="(i)"> <text>An immediate family member or affiliate of a person described in §K(3)(a) of this regulation; or</text> </paragraph> <paragraph num="(ii)"> <text>A person that Agency staff determines would, if the person wagered, compromise the independence of an independent evaluator.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Compensation of independent evaluator.</text> <paragraph num="(a)"> <text>Except as provided in §K(4)(b) of this regulation, an independent evaluator may not be compensated by a sports wagering licensee that utilizes the independent evaluator’s evaluation services solely for marketing materials.</text> </paragraph> <paragraph num="(b)"> <text>A sports wagering licensee that advertises in the State may contract with a licensed independent evaluator to evaluate and rate the licensee’s:</text> <paragraph num="(i)"> <text>Sports wagering content;</text> </paragraph> <paragraph num="(ii)"> <text>Sports wagering influencers; and</text> </paragraph> <paragraph num="(iii)"> <text>Content partners.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>Required Submission. For every person described in §K(3) of this regulation, an applicant for licensure as an independent evaluator shall submit to Agency staff documentation that:</text> <paragraph num="(a)"> <text>Identifies the person;</text> </paragraph> <paragraph num="(b)"> <text>Explains the means by which the applicant will notify the person of the prohibition; and</text> </paragraph> <paragraph num="(c)"> <text>Attests that the submission is accurate and complete to the best of the knowledge of the authorized individual who signed the attestation.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Issuance of License. Agency staff may issue a license for a Tier 1 contractor that is an independent evaluator.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Sports Wagering Employee Licenses."> <paragraph num="A."> <text>Unless a person holds a valid sports wagering employee license issued by the Commission, the person may not be employed by a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor to perform functions or provide services related to sports wagering under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The Commission may issue a sports wagering employee license to an applicant that meets all applicable licensing requirements for a sports wagering employee under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations.</text> </paragraph> <paragraph num="C."> <text>All sports wagering employee applicants and licensees shall meet the license requirements specified for a sports wagering employee in this regulation.</text> </paragraph> <paragraph num="D."> <text>Categories.</text> <paragraph num="(1)"> <text>The Commission may issue a sports wagering employee license that is a:</text> <paragraph num="(a)"> <text>Principal employee license;</text> </paragraph> <paragraph num="(b)"> <text>Wagering employee license;</text> </paragraph> <paragraph num="(c)"> <text>Non-wagering employee license;</text> </paragraph> <paragraph num="(d)"> <text>Temporary principal employee license; or</text> </paragraph> <paragraph num="(e)"> <text>Temporary wagering employee license.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Agency staff may issue a sports wagering employee license to an individual who has, or has had on their behalf:</text> <paragraph num="(a)"> <text>Paid all required application and license fees;</text> </paragraph> <paragraph num="(b)"> <text>Submitted a completed license application to the Commission;</text> </paragraph> <paragraph num="(c)"> <text>Provided all personal and background information required under COMAR 36.10.02 and 36.10.03;</text> </paragraph> <paragraph num="(d)"> <text>Provided all documentation required by the Commission;</text> </paragraph> <paragraph num="(e)"> <text>Executed the consent for investigation required under COMAR 36.10.02;</text> </paragraph> <paragraph num="(f)"> <text>Received at least a conditional offer of employment as a sports wagering employee from a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor;</text> </paragraph> <paragraph num="(g)"> <text>For an applicant for a non-wagering employee license, documented that the applicant has obtained an offer of at least conditional employment from a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor, and that the employer, or potential employer, has:</text> <paragraph num="(i)"> <text>Obtained a performance bond if required under COMAR 36.10.04, COMAR 36.10.05, or COMAR 36.10.06; and</text> </paragraph> <paragraph num="(ii)"> <text>Performed, at a minimum, a Social Security database check, criminal history check, employment verification, and national database search;</text> </paragraph> </paragraph> <paragraph num="(h)"> <text>Demonstrated that within the 365 days before the application is submitted, the applicant has not served as a Commission member or been employed by the Agency; and</text> </paragraph> <paragraph num="(i)"> <text>Provided the Commission with sufficient information, documentation, and assurances to establish, by clear and convincing evidence, that the individual:</text> <paragraph num="(i)"> <text>Meets the qualification requirements in COMAR 36.10.03; and</text> </paragraph> <paragraph num="(ii)"> <text>Is otherwise qualified for a sports wagering employee license.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>The Commission may exempt a sports wagering employee from the performance bond requirement if the employee is:</text> <paragraph num="(1)"> <text>Covered under another bond that the Commission deems adequate to protect public interests; or</text> </paragraph> <paragraph num="(2)"> <text>Employed in a capacity for which the Commission determines the performance bond is not necessary to protect the public interest.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Application and License Fees.</text> <paragraph num="(1)"> <text>For a principal employee, $5,287.25, of which the:</text> <paragraph num="(a)"> <text>Application fee is $2,500;</text> </paragraph> <paragraph num="(b)"> <text>License fee is $750;</text> </paragraph> <paragraph num="(c)"> <text>Refundable advance deposit for the administrative costs of conducting the background investigation $2,000; and</text> </paragraph> <paragraph num="(d)"> <text>Required fee for conducting a criminal history records check specified in COMAR 36.10.02 is $37.25.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a wagering employee, $437.25, of which the:</text> <paragraph num="(a)"> <text>Application fee is $250;</text> </paragraph> <paragraph num="(b)"> <text>License fee is $150; and</text> </paragraph> <paragraph num="(c)"> <text>Required fee for conducting a criminal history records check specified in COMAR 36.10.02 is $37.25.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For a non-wagering employee, $187.25, of which the:</text> <paragraph num="(a)"> <text>Application fee is $50;</text> </paragraph> <paragraph num="(b)"> <text>License fee is $100; and</text> </paragraph> <paragraph num="(c)"> <text>Required fee for conducting a criminal history records check specified in COMAR 36.10.02, which is $37.25.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Employment of a Sports Wagering Employee."> <paragraph num="A."> <text>A sports wagering employee license authorizes the licensee to be employed in the State as:</text> <paragraph num="(1)"> <text>A principal employee;</text> </paragraph> <paragraph num="(2)"> <text>A wagering employee; or</text> </paragraph> <paragraph num="(3)"> <text>A non-wagering employee.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering employee may be employed concurrently or consecutively by more than one sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor while the individuals license is in good standing.</text> </paragraph> <paragraph num="C."> <text>If a sports wagering employee becomes employed by a video lottery operator as a video lottery employee, and will perform work that is comparable to work the individual is authorized to perform as a sports wagering employee, then the individual is not required to file an application for a video lottery employee license provided the individuals license is in good standing.</text> </paragraph> <paragraph num="D."> <text>A wagering or nonwagering employee who is 18 to 20 years old may enter or remain in a restricted area if the employee is working.</text> </paragraph> <paragraph num="E."> <text>A sports wagering employees employment with more than one employer does not change the individuals five-year license term.</text> </paragraph> <paragraph num="F."> <text>A sports wagering employee shall submit a report to the Commission of any change in the individuals employment status:</text> <paragraph num="(1)"> <text>As soon as practicable before the change;</text> </paragraph> <paragraph num="(2)"> <text>In a form or format specified by the Commission; and</text> </paragraph> <paragraph num="(3)"> <text>As provided in COMAR 36.10.02.03D.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Restrictions on Wagering."> <paragraph num="A."> <text>A sports wagering employee may not engage in sports wagering, or receive winnings from:</text> <paragraph num="(1)"> <text>A sports wagering facility:</text> <paragraph num="(a)"> <text>Where the individual is employed or assigned to work; or</text> </paragraph> <paragraph num="(b)"> <text>That is operated, owned, or controlled by the individuals employer;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Using a mobile application that is owned, operated, maintained, repaired, or otherwise serviced, by the individuals employer; or</text> </paragraph> <paragraph num="(3)"> <text>A video lottery facility where the individual is employed or assigned to work that:</text> <paragraph num="(a)"> <text>The Commission has licensed as a sports wagering facility; or</text> </paragraph> <paragraph num="(b)"> <text>That is operated as a sports wagering facility by a sports wagering facility operator licensee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A video lottery facility employee who is employed as sports wagering employee is subject to the restrictions in:</text> <paragraph num="(1)"> <text>§A of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>COMAR 36.03.02.12F and G.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Renewal."> <paragraph num="A."> <text>Except for a temporary licensee, the Commission may renew the sports wagering employee license if, before expiration of the term of the license, the licensee:</text> <paragraph num="(1)"> <text>Applies for renewal and pays the renewal fee in §B of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Continues to comply with all licensing requirements;</text> </paragraph> <paragraph num="(3)"> <text>Maintains employment as a sports wagering employee;</text> </paragraph> <paragraph num="(4)"> <text>Submits to a background investigation under COMAR 36.10.02; and</text> </paragraph> <paragraph num="(5)"> <text>Pays the background investigation fee required in COMAR 36.10.02.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The fee required for the Commission to process a licensing renewal is:</text> <paragraph num="(1)"> <text>For a principal employee, $2,787.25, of which the:</text> <paragraph num="(a)"> <text>License fee is $750;</text> </paragraph> <paragraph num="(b)"> <text>Refundable advance deposit for administrative costs of conducting the applicant’s background investigation is $2,000; and</text> </paragraph> <paragraph num="(c)"> <text>Required fee for conducting a criminal history records check is $37.25;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a wagering employee, $187.25, of which the:</text> <paragraph num="(a)"> <text>License fee is $150; and</text> </paragraph> <paragraph num="(b)"> <text>Required fee for conducting a criminal history records check, which is $37.25; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For a non-wagering employee, $97.25, of which the:</text> <paragraph num="(a)"> <text>License fee is $60; and</text> </paragraph> <paragraph num="(b)"> <text>Required fee for conducting a criminal history records check, which is $37.25.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Except for a principal employee, a sports wagering employee shall submit an application for renewal to the Commission at least 90 days before the license expires.</text> </paragraph> <paragraph num="D."> <text>A principal employee shall submit an application for renewal to the Commission at least 6 months before the principal employee’s license expires.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Temporary Sports Wagering Employee License."> <paragraph num="A."> <text>The Commission may issue to a sports wagering employee license applicant a temporary license to authorize the individual to work legally as a sports wagering employee before the Commission completes the full licensing process.</text> </paragraph> <paragraph num="B."> <text>A licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor may submit an application for a temporary license on behalf of an individual who is seeking a principal or wagering employee license.</text> </paragraph> <paragraph num="C."> <text>An application for a temporary license shall be in a format designated by the Commission and shall include:</text> <paragraph num="(1)"> <text>A completed application for a principal or wagering employee license;</text> </paragraph> <paragraph num="(2)"> <text>Payment of the fees required under Regulation .05F of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Documentation to verify that the applicant has obtained an offer of at least conditional employment from a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor and that the employer has:</text> <paragraph num="(a)"> <text>If required under COMAR 36.10.04.03—36.10.04.06, COMAR 36.10.05.02, or COMAR 36.10.06.02—36.10.06.04, obtained a performance bond; and</text> </paragraph> <paragraph num="(b)"> <text>Performed, at a minimum, a Social Security database check, criminal check, employment verification, and national database search; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Documentation that the applicant has acknowledged, in writing, that the State is not financially responsible for any consequences resulting from termination of a temporary license under State Government Article, §9-1A-14(d)(4), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Commission may grant a temporary license after:</text> <paragraph num="(1)"> <text>Receiving all items required under §C(3) of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>Performing on the individual a:</text> <paragraph num="(a)"> <text>Criminal background investigation under COMAR 36.10.02; and</text> </paragraph> <paragraph num="(b)"> <text>Financial stability investigation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A temporary license:</text> <paragraph num="(1)"> <text>Expires 180 days after the date of issue; and</text> </paragraph> <paragraph num="(2)"> <text>May be extended by the Commission for one period of 180 days.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A temporary license may not be issued if:</text> <paragraph num="(1)"> <text>An applicant has an immediately known present or prior activity, criminal record, reputation, habit, or association that would disqualify the applicant from holding a sports wagering employee license under State Government Article, Title 9, Subtitle 1A or Subtitle 1E, Annotated Code of Maryland, or the Commissions regulations;</text> </paragraph> <paragraph num="(2)"> <text>An applicant poses a serious imminent risk of harm to the integrity, security, or profitability of the States sports wagering operations; or</text> </paragraph> <paragraph num="(3)"> <text>There are reasonable grounds to believe that the applicant will not be able to establish the applicants qualifications by clear and convincing evidence.</text> </paragraph> </paragraph> <paragraph num="G."> <text>By written notice to a temporary licensee, Commission staff may terminate, without a hearing and without following the denial process under COMAR 36.10.07, the temporary license of an applicant for:</text> <paragraph num="(1)"> <text>Failure to pay a required fee;</text> </paragraph> <paragraph num="(2)"> <text>Failure to submit required documentation to Commission staff within 30 days of submitting the application;</text> </paragraph> <paragraph num="(3)"> <text>Failure to comply with a request of Commission staff;</text> </paragraph> <paragraph num="(4)"> <text>Engaging in conduct that obstructs Commission staff from completing the applicants background investigation; or</text> </paragraph> <paragraph num="(5)"> <text>Violating any provision of State Government Article, Title 9, Subtitle 1A or Subtitle 9-1E, Annotated Code of Maryland, or the Commissions regulations.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Commission staffs written notice of termination of a temporary license is the final action of the Commission.</text> </paragraph> <paragraph num="I."> <text>If, during the course of conducting an applicants background investigation, Commission staff reasonably believes there is a basis for recommending that the application for a sports wagering license be denied, Commission staff shall:</text> <paragraph num="(1)"> <text>Notify the temporary licensee; and</text> </paragraph> <paragraph num="(2)"> <text>Follow the process for denial of a license under COMAR 36.10.07.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Identification Cards for Sports Wagering Employees."> <paragraph num="A."> <text>The Commission shall issue an identification card to an individual who is licensed as a sports wagering employee.</text> </paragraph> <paragraph num="B."> <text>Identification Card.</text> <paragraph num="(1)"> <text>An identification card shall display a photograph of the licensee and, at a minimum, indicate:</text> <paragraph num="(a)"> <text>The individual’s name;</text> </paragraph> <paragraph num="(b)"> <text>By color, pattern, or symbol, the licensing category; and</text> </paragraph> <paragraph num="(c)"> <text>The license expiration date.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An identification card is evidence that the licensee is authorized to be employed in the designated licensing category by a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor.</text> </paragraph> <paragraph num="(3)"> <text>An identification card is the property of the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Licensee Obligations. A licensee:</text> <paragraph num="(1)"> <text>Unless otherwise approved by the Commission for a specific date and time, shall wear or otherwise prominently display the licensee’s identification card at all times while working in a sports wagering facility or a data center located in Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Shall immediately report a loss or theft of the card to the licensee’s employer and the Commission;</text> </paragraph> <paragraph num="(3)"> <text>May not allow another individual to possess the card; and</text> </paragraph> <paragraph num="(4)"> <text>Shall comply with an order of the Commission to surrender the card.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Replacement Identification Card.</text> <paragraph num="(1)"> <text>If an identification card issued under this regulation is lost or stolen:</text> <paragraph num="(a)"> <text>The licensee shall immediately:</text> <paragraph num="(i)"> <text>Report the loss or theft to the licensee’s employer; and</text> </paragraph> <paragraph num="(ii)"> <text>In a form or format designated by the Commission, submit to the Commission a written description of the circumstances of the loss or theft; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>After verifying the licensee’s identity, the Commission may issue a new identification card to the licensee.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If an identification card issued under this regulation is temporarily unavailable to the licensee:</text> <paragraph num="(a)"> <text>The licensee shall immediately:</text> <paragraph num="(i)"> <text>Report the temporary unavailability of the card to the licensee’s employer; and</text> </paragraph> <paragraph num="(ii)"> <text>In a form or format designated by the Commission, submit to the Commission a written description as to why the card is temporarily unavailable;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>After verifying the licensee’s identity, the Commission may issue an emergency credential to the licensee that is valid for 1 work day; and</text> </paragraph> <paragraph num="(c)"> <text>The licensee shall surrender the emergency credential to the Commission at the end of the work day on which the licensee received the card.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the Commission issues a replacement or temporary identification card to a licensee, the licensee’s employer shall pay the Commission:</text> <paragraph num="(a)"> <text>$40 for the cost of a replacement identification card; or</text> </paragraph> <paragraph num="(b)"> <text>$20 for the cost of a temporary identification card.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Surrender and Reissuance of Identification Card. The employer of the sports wagering employee who was issued an identification card under this regulation shall ensure that the licensee’s identification card is surrendered to the Commission if the:</text> <paragraph num="(1)"> <text>Commission suspends or revokes the license;</text> </paragraph> <paragraph num="(2)"> <text>License is not renewed;</text> </paragraph> <paragraph num="(3)"> <text>Licensee separates from employment with licensee’s employer; or</text> </paragraph> <paragraph num="(4)"> <text>Licensee is otherwise ordered to surrender the identification card.</text> </paragraph> </paragraph> <paragraph num="F."> <text>If an identification card is not surrendered as required under §D(2)(c) or E of this regulation, the licensee’s employer may be subject to enforcement action under COMAR 36.03.04 or 36.10.08.</text> </paragraph> <paragraph num="G."> <text>If an identification card was surrendered when the licensee separated employment from the licensee’s employer, the Commission may issue the licensee another identification card if the:</text> <paragraph num="(1)"> <text>Licensee obtains employment with a sports wagering licensee or video lottery operation licensee;</text> </paragraph> <paragraph num="(2)"> <text>Term of the employee’s license has not expired; and</text> </paragraph> <paragraph num="(3)"> <text>Commission verifies:</text> <paragraph num="(a)"> <text>The licensee’s identity;</text> </paragraph> <paragraph num="(b)"> <text>That the license was in good standing when the card was surrendered; and</text> </paragraph> <paragraph num="(c)"> <text>That the license has not expired and remains in good standing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>There is no fee for an identification card issued under §G of this regulation.</text> </paragraph> <paragraph num="I."> <text>Nothing in this regulation shall preclude the Commission from taking enforcement action against a licensee based on the circumstances related to the licensee’s separation from employment or information obtained while reviewing a licensee’s notification of an intended change in employment status.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Sports Wagering Vendor Registration and Certification."> <paragraph num="A."> <text>Definitions. In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Commission” means Agency staff in this regulation.</text> </paragraph> <paragraph num="(2)"> <text>Sports Wagering Vendor.</text> <paragraph num="(a)"> <text>“Sports wagering vendor” means a person that provides goods or services or anticipates providing, within a calendar year:</text> <paragraph num="(i)"> <text>A combined total value of nongaming related goods and services to a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor of $50,000 or more; and</text> </paragraph> <paragraph num="(ii)"> <text>That is not required to be issued a sports wagering license or sports wagering contractor license under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Sports wagering vendor” does not include:</text> <paragraph num="(i)"> <text>Public utilities that provide water, sewerage, electricity; or natural gas;</text> </paragraph> <paragraph num="(ii)"> <text>Insurance companies that provide insurance to a sports wagering license applicant or licensee or its employees;</text> </paragraph> <paragraph num="(iii)"> <text>Employee benefit and retirement plans, including 401(k) plans and employee stock purchase programs;</text> </paragraph> <paragraph num="(iv)"> <text>Professional associations that receive funds from the sports wagering license applicant or licensee for the cost of enrollment, activities, and membership;</text> </paragraph> <paragraph num="(v)"> <text>Units of federal, State, county, or municipal government;</text> </paragraph> <paragraph num="(vi)"> <text>Manufacturers of alcoholic beverages;</text> </paragraph> <paragraph num="(vii)"> <text>State-chartered or federally chartered banks or savings and loan associations;</text> </paragraph> <paragraph num="(viii)"> <text>Providers of professional services, including accountants, attorneys, engineers or architects, and others identified by Agency staff to be providers of professional services;</text> </paragraph> <paragraph num="(ix)"> <text>Telecommunication, satellite, or internet services;</text> </paragraph> <paragraph num="(x)"> <text>Parcel shipping and delivery services;</text> </paragraph> <paragraph num="(xi)"> <text>Persons that engage in efforts to influence legislative or administrative action on behalf of a sports wagering license applicant or licensee for economic consideration;</text> </paragraph> <paragraph num="(xii)"> <text>Educational or training opportunities for facility employees;</text> </paragraph> <paragraph num="(xiii)"> <text>Unless the individual is an independent evaluator, professional or amateur entertainers, sports figures, social media personalities, or other celebrities engaged by a sports wagering licensee to appear at a licensee-sponsored entertainment or promotional event;</text> </paragraph> <paragraph num="(xiv)"> <text>Representatives of a media outlet or provider of a simulcast service;</text> </paragraph> <paragraph num="(xv)"> <text>A vendor that provides, or anticipates providing, within a calendar year a combined total value of nongaming related goods and services to a State-licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor of less than $50,000; or</text> </paragraph> <paragraph num="(xvi)"> <text>A vendor for which the Commission determines registration is not necessary.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Except as provided in §§D and G of this regulation, a sports wagering vendor that conducts business with a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor, or an applicant for such a license, shall be registered with the Commission.</text> </paragraph> <paragraph num="D."> <text>Certain Sports Wagering Vendors Exempt from Registration Requirements.</text> <paragraph num="(1)"> <text>A sports wagering vendor is exempt from registration requirements if it provides, or anticipates providing, goods or services that a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor purchases solely to be given to a bettor.</text> </paragraph> <paragraph num="(2)"> <text>A sports wagering vendor exempt under this section may only provide the following goods and services to a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor:</text> <paragraph num="(a)"> <text>Leisure or recreational travel;</text> </paragraph> <paragraph num="(b)"> <text>Lodging;</text> </paragraph> <paragraph num="(c)"> <text>Vehicles;</text> </paragraph> <paragraph num="(d)"> <text>Entertainment;</text> </paragraph> <paragraph num="(e)"> <text>Dining;</text> </paragraph> <paragraph num="(f)"> <text>Clothing;</text> </paragraph> <paragraph num="(g)"> <text>Jewelry;</text> </paragraph> <paragraph num="(h)"> <text>Gift cards; or</text> </paragraph> <paragraph num="(i)"> <text>Other gift items.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor that purchases goods or services from a sports wagering vendor exempted under this section:</text> <paragraph num="(a)"> <text>Is subject to the requirements of COMAR 36.10.13.08; and</text> </paragraph> <paragraph num="(b)"> <text>Shall identify in a report submitted under COMAR 36.10.13.08 each exempted sports wagering vendor from which it purchased goods or services during the reporting period.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Sports Wagering Vendor Registration.</text> <paragraph num="(1)"> <text>A sports wagering vendor that provides, or anticipates providing, goods or services that are not related to a sports wagering operation to a single licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor shall be registered with the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee to which a sports wagering vendor provides, or anticipates providing, goods and services that are not related to sports wagering shall submit to the Commission a completed registration form in a format designated by the Commission that includes:</text> <paragraph num="(a)"> <text>Sports wagering vendor name;</text> </paragraph> <paragraph num="(b)"> <text>Sports wagering vendor business address;</text> </paragraph> <paragraph num="(c)"> <text>Type of goods or services provided;</text> </paragraph> <paragraph num="(d)"> <text>Total value of goods or services provided to the sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee in the State within a calendar year;</text> </paragraph> <paragraph num="(e)"> <text>Documentation that:</text> <paragraph num="(i)"> <text>The sports wagering vendor’s business is in good standing or active with the Maryland State Department of Assessments and Taxation; or</text> </paragraph> <paragraph num="(ii)"> <text>The sports wagering vendor is not a legal entity that is required to register with the Maryland State Department of Assessments and Taxation;</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>Registration fee of $100; and</text> </paragraph> <paragraph num="(g)"> <text>Any other information the Commission requires.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Upon receipt of the registration fee and completed registration form, the Commission shall provide the applicant or licensee with written notification of whether it has registered the sports wagering vendor.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Except as provided in §G of this regulation, a sports wagering vendor may not provide goods or services related to a sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee until it is registered with the Commission.</text> </paragraph> <paragraph num="G."> <text>Emergency Notification. A sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee may accept goods or services from a sports wagering vendor that is not registered with the Commission if:</text> <paragraph num="(1)"> <text>The sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee encounters an emergent threat to public health, safety, or welfare that is outside its control and requires immediate provision of goods or services by a sports wagering vendor; and</text> </paragraph> <paragraph num="(2)"> <text>Except as provided in §D of this regulation:</text> <paragraph num="(a)"> <text>No later than the next State work day after the sports wagering vendor’s emergency provision of goods or services, the sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee shall submit to the Commission a sports wagering vendor emergency notification form that includes an explanation of the need for its emergency use of a sports wagering vendor that is not registered with the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Within 20 work days of submitting the sports wagering vendor emergency notification form, the sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee shall submit to the Commission a sports wagering vendor registration form.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Term, Renewal, and Cancellation. A sports wagering vendor’s registration or certification:</text> <paragraph num="(1)"> <text>Remains in effect for 5 years from the date the Commission approves the registration;</text> </paragraph> <paragraph num="(2)"> <text>May be renewed by the Commission if the vendor submits the required form, and renewal fee, at least 90 days before the expiration of the registration;</text> </paragraph> <paragraph num="(3)"> <text>Shall automatically expire if a sports wagering vendor does not comply with renewal requirements under this regulation; and</text> </paragraph> <paragraph num="(4)"> <text>Is subject to cancellation by the Commission, at any time and without advance notice, if the Commission determines that the sports wagering vendors continued conduct of business with a sports wagering applicant or licensee is contrary to the public interest of the State or the policies in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commissions regulations.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Renewal Fee. The renewal fee for a sports wagering vendor is $100.</text> </paragraph> <paragraph num="J."> <text>The Commission’s decision to deny or cancel a sports wagering vendor registration or to deny the renewal of a sports wagering vendor registration, does not give rise to an appeal right under the contested case provisions of the Maryland Administrative Procedure Act.</text> </paragraph> <paragraph num="K."> <text>The Commission may maintain and make publicly available a list of:</text> <paragraph num="(1)"> <text>Registered sports wagering vendors; and</text> </paragraph> <paragraph num="(2)"> <text>Sports wagering vendors that are prohibited from doing business with a sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee because the Commission has denied or cancelled their application or registration.</text> </paragraph> </paragraph> <paragraph num="L."> <text>A sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee shall:</text> <paragraph num="(1)"> <text>Submit to the Commission a quarterly sports wagering vendor payments report in a format prescribed by the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>Ensure that a sports wagering vendor appearing on its quarterly sports wagering vendor payments report is:</text> <paragraph num="(a)"> <text>Registered; or</text> </paragraph> <paragraph num="(b)"> <text>Exempt.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04I amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04K adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); adopted permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07B amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09C amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="07" heading="License Denial Procedures"> <regulation prefix="Regulation" num=".01" heading="Applicability."> <paragraph num="A."> <text>This chapter applies to all licenses the Commission is authorized to issue under State Government Article, §9-1E-05, Annotated Code of Maryland, to implement the State’s Sports Wagering Program.</text> </paragraph> <paragraph num="B."> <text>The chapter explains the process by which a license application may be denied, and the process available to an applicant after the Commission determines that the applicant:</text> <paragraph num="(1)"> <text>For a sports wagering contractor or sports wagering employee license, does not meet the general requirements in COMAR 36.10.02 and 36.10.03;</text> </paragraph> <paragraph num="(2)"> <text>For a sports wagering facility, sports wagering facility operator license, mobile sports wagering license, or online sports wagering operator license, does not meet:</text> <paragraph num="(a)"> <text>The general qualification requirements in COMAR 36.10.02 and 36.10.03;</text> </paragraph> <paragraph num="(b)"> <text>Specific license requirements; or</text> </paragraph> <paragraph num="(c)"> <text>Technical and operational standards; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Should be denied the license.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Sports Wagering Contractors and Sports Wagering Employees."> <paragraph num="A."> <text>In this regulation, “application,” “applicant,” “license,” and “licensee” refer to an applicant for a sports wagering contractor or sports wagering employee license.</text> </paragraph> <paragraph num="B."> <text>Commission staff shall conduct the license application review and denial process in a manner consistent with this regulation.</text> </paragraph> <paragraph num="C."> <text>Commission staff shall review a license application to determine whether it meets all the requirements of COMAR 36.10.02 and 36.10.03 and:</text> <paragraph num="(1)"> <text>For an applicant for a sports wagering contractor license, the requirements in COMAR 36.10.06.04; or</text> </paragraph> <paragraph num="(2)"> <text>For an applicant for a sports wagering employee license, the requirements in COMAR 36.10.06.05.</text> </paragraph> </paragraph> <paragraph num="D."> <text>After reviewing an application submitted for a license, staff may:</text> <paragraph num="(1)"> <text>Issue the license; or</text> </paragraph> <paragraph num="(2)"> <text>Recommend that the license not be issued to the applicant, and that the license application be denied.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If staff recommends denial of the license application, staff shall promptly provide the applicant with written notice of the:</text> <paragraph num="(1)"> <text>Recommendation for denial;</text> </paragraph> <paragraph num="(2)"> <text>Basis for the recommendation; and</text> </paragraph> <paragraph num="(3)"> <text>Applicant’s right to request a reconsideration meeting.</text> </paragraph> </paragraph> <paragraph num="F."> <text>An applicant may submit to the Commission a written request for a reconsideration meeting within 15 days of the date of the notice described under §E of this regulation.</text> </paragraph> <paragraph num="G."> <text>If an applicant fails to timely submit a request under §F of this regulation, the staff’s recommendation is the Commission’s final action on the license application.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Sports Wagering Facility License, Sports Wagering Facility Operator License, Mobile Sports Wagering License, or Online Sports Wagering Operator License."> <paragraph num="A."> <text>In this regulation, “application”, “applicant”, “license”, and “licensee” refer to an applicant for a sports wagering facility, sports wagering facility operator, mobile sports wagering, or online sports wagering operator license.</text> </paragraph> <paragraph num="B."> <text>Unless the SWARC has first awarded the license, the Commission may not issue a license to an applicant for a:</text> <paragraph num="(1)"> <text>Sports wagering facility license; or</text> </paragraph> <paragraph num="(2)"> <text>Mobile sports wagering license.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Commission staff shall conduct the license application review and recommended denial process in a manner consistent with this regulation.</text> </paragraph> <paragraph num="D."> <text>After the SWARC has awarded a license to an applicant, Commission staff shall review the application and the applicant’s submissions to the Commission, and determine whether it meets all the requirements of COMAR 36.10.02 and 36.10.03, and:</text> <paragraph num="(1)"> <text>For an applicant for a sports wagering facility license, the requirements in COMAR 36.10.04 that pertain to the license class;</text> </paragraph> <paragraph num="(2)"> <text>For an applicant for a sports wagering facility operator license, the requirements in COMAR 36.10.06.03;</text> </paragraph> <paragraph num="(3)"> <text>For an applicant for a mobile sports wagering license, the requirements in COMAR 36.10.05; or</text> </paragraph> <paragraph num="(4)"> <text>For an applicant for an online sports wagering operator license, the requirements in COMAR 36.10.06.02.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Staff’s review of applications for all licenses in this regulation shall include the requirements specified in the regulations for each license category, and also include:</text> <paragraph num="(1)"> <text>Evaluating the applicant’s equipment, facility and data information center;</text> </paragraph> <paragraph num="(2)"> <text>Conducting tests and controlled demonstrations,</text> </paragraph> <paragraph num="(3)"> <text>Reviewing the awardee’s operational and technical submissions; and</text> </paragraph> <paragraph num="(4)"> <text>Determining whether the awardee is prepared to receive the public and to conduct safe and secure sports wagering.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Staff may not issue the license if it determines that the awardee:</text> <paragraph num="(1)"> <text>Does not meet the requirements in §D of this regulation; or</text> </paragraph> <paragraph num="(2)"> <text>Under §E of this regulation, the awardee is otherwise not prepared to conduct safe and secure sports wagering.</text> </paragraph> </paragraph> <paragraph num="G."> <text>After conducting the review described in §§D and E of this regulation, staff may:</text> <paragraph num="(1)"> <text>Issue the license; or</text> </paragraph> <paragraph num="(2)"> <text>Recommend that the Commission not issue the license, and deny the license application.</text> </paragraph> </paragraph> <paragraph num="H."> <text>If staff recommends the denial of an application under this regulation, staff shall promptly provide the applicant with written notice of the:</text> <paragraph num="(1)"> <text>Recommendation for denial;</text> </paragraph> <paragraph num="(2)"> <text>Basis for the recommendation; and</text> </paragraph> <paragraph num="(3)"> <text>Applicant’s right to request a reconsideration meeting.</text> </paragraph> </paragraph> <paragraph num="I."> <text>An applicant may submit to the Commission a written request for a reconsideration meeting within 15 days of the date of the notice described §H of this regulation.</text> </paragraph> <paragraph num="J."> <text>If an applicant fails to timely submit a request under §I of this regulation, the staff’s recommendation is the Commission’s final action on the license application.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Reconsideration Process."> <paragraph num="A."> <text>Commission staff shall conduct the reconsideration process in a manner consistent with this regulation.</text> </paragraph> <paragraph num="B."> <text>If an applicant timely submits a request under Regulation .02F or .03I of this chapter, staff shall notify the applicant of a date and time for the reconsideration meeting.</text> </paragraph> <paragraph num="C."> <text>A reconsideration meeting is not a hearing under COMAR 36.01.02.06.</text> </paragraph> <paragraph num="D."> <text>During a reconsideration meeting, the applicant or awardee:</text> <paragraph num="(1)"> <text>Meets with Commission staff;</text> </paragraph> <paragraph num="(2)"> <text>May be represented by counsel; and</text> </paragraph> <paragraph num="(3)"> <text>May present its views to staff as to why the license should be issued.</text> </paragraph> </paragraph> <paragraph num="E."> <text>After the reconsideration meeting, the staff person who attended the reconsideration meeting shall issue a written notice to the applicant or awardee describing the result of the reconsideration meeting.</text> </paragraph> <paragraph num="F."> <text>If the applicant or awardee is dissatisfied with the result of the reconsideration meeting, the applicant or awardee may submit a written request for a hearing to the Commission:</text> <paragraph num="(1)"> <text>Within 15 days of the date of staff’s notice under §E of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>That states the applicant’s or awardee’s legal and factual bases for disagreeing with the result of the reconsideration meeting.</text> </paragraph> </paragraph> <paragraph num="G."> <text>If the applicant or awardee fails to timely submit a written hearing request under §F of this regulation, the staff’s determination is the Commission’s final action on the license application.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Hearings."> <paragraph num="A."> <text>Upon receipt of a timely, written hearing request submitted under Regulation .04F of this chapter, the Commission shall provide the applicant a notice for a hearing held under COMAR 36.01.02.06.</text> </paragraph> <paragraph num="B."> <text>Hearings Before the Commission. For any hearing under this regulation and held before the Commission:</text> <paragraph num="(1)"> <text>The Commission shall:</text> <paragraph num="(a)"> <text>Grant the license after determining that the applicant is qualified; or</text> </paragraph> <paragraph num="(b)"> <text>Deny the license;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the Commission denies the license, the Commission shall prepare an order stating its findings of fact, conclusions of law, and reasons why the denial is appropriate; and</text> </paragraph> <paragraph num="(3)"> <text>The Commission shall provide the applicant with written notification of the Commission’s final action on the license application.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Hearings Delegated to the Office of Administrative Hearings.</text> <paragraph num="(1)"> <text>For a hearing held under this regulation and delegated to the Office of Administrative Hearings for a final action on the license pursuant to COMAR 36.01.02.06O:</text> <paragraph num="(a)"> <text>The decision issued by Office of Administrative Hearings is the Commission’s final action on the license application; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission reserves the right to seek judicial review of the decision issued by Office of Administrative Hearings under Regulation .06 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For any hearing delegated to the Office of Administrative Hearings for a recommended decision under COMAR 36.01.02.06O:</text> <paragraph num="(a)"> <text>The Director may designate a staff member to review the recommended decision who has not been previously designated to review the license application under Regulations .02—.04 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>The Director or the Director’s designee shall review the Administrative Law Judge’s Recommended Decision consistent with the terms of the delegation made and:</text> <paragraph num="(i)"> <text>Provide the applicant and staff an opportunity to present exceptions under State Government Article, §10-216, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(ii)"> <text>After reviewing any exceptions filed by the applicant and staff, issue an order under State Government Article, §10-220, Annotated Code of Maryland, that constitutes the Commission’s final action on the license application.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Petition for Judicial Review."> <text>The Commission’s final action on a license application is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02, 9-1A-04 and 9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> </annotations> </chapter> <chapter num="08" heading="Enforcement"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter establishes a framework within which the Commission may take enforcement action against a licensee that results in a reprimand, penalty, or condition placed on a licensee, or a suspension or revocation of a license.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Violations."> <text>A licensee may not:</text> <paragraph num="A."> <text>Violate:</text> <paragraph num="(1)"> <text>A provision of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>A regulation adopted under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(3)"> <text>A directive of the Commission or the Director;</text> </paragraph> </paragraph> <paragraph num="B."> <text>Take, or attempt to take, any action that is:</text> <paragraph num="(1)"> <text>Cheating;</text> </paragraph> <paragraph num="(2)"> <text>Influence the governing entity of a sporting event;</text> </paragraph> <paragraph num="(3)"> <text>Influence any person or unit of government that is involved in implementing or enforcing State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(4)"> <text>Interfere with the regular operation of:</text> <paragraph num="(a)"> <text>A sports wagering platform or its software;</text> </paragraph> <paragraph num="(b)"> <text>Sports wagering equipment; or</text> </paragraph> <paragraph num="(c)"> <text>A sports wagering website; or</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Fail to:</text> <paragraph num="(1)"> <text>Conform to the information contained in its license application;</text> </paragraph> <paragraph num="(2)"> <text>Meet a licensing requirement;</text> </paragraph> <paragraph num="(3)"> <text>Promptly submit to the Commission a change to the information contained in its license application;</text> </paragraph> <paragraph num="(4)"> <text>Adequately remedy a deficiency of which the licensee has received notice under Regulation .03(B) of this chapter; or</text> </paragraph> <paragraph num="(5)"> <text>Maintain a sports wagering employee license in good standing.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Notice of Violation."> <paragraph num="A."> <text>After receiving a report of a licensee’s alleged violation of Regulation .02 of this chapter, the Agency shall:</text> <paragraph num="(1)"> <text>Investigate the report; and</text> </paragraph> <paragraph num="(2)"> <text>Provide the licensee with written notice of the alleged violation, including:</text> <paragraph num="(a)"> <text>Description of the law, regulation, condition, or directive allegedly violated: and</text> </paragraph> <paragraph num="(b)"> <text>Staff recommendation for addressing the alleged violation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Nothing in this chapter shall be construed to require that the licensee receives an opportunity to meet with staff to discuss an informal settlement of a violation.</text> </paragraph> <paragraph num="C."> <text>The Agency may undertake a corrective action plan or attempt to reach a settlement with the licensee before the Director, or the Director’s designee, initiates proceedings for imposition of a sanction against a licensee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Corrective Action Plan."> <paragraph num="A."> <text>If the Director, or the Director’s designee, directs staff to implement a corrective action plan with a licensee, Agency staff shall give written notice to a licensee that includes:</text> <paragraph num="(1)"> <text>A description of the alleged violation;</text> </paragraph> <paragraph num="(2)"> <text>A description of the possible sanctions; and</text> </paragraph> <paragraph num="(3)"> <text>The requirement for the licensee to submit a corrective action plan to the Director.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Contents of Corrective Action Plan. A corrective action plan shall include:</text> <paragraph num="(1)"> <text>Periodic monitoring or progress reports;</text> </paragraph> <paragraph num="(2)"> <text>Timelines for completing corrective action;</text> </paragraph> <paragraph num="(3)"> <text>Implementation of measures to guard against recurrence of the alleged violation; and</text> </paragraph> <paragraph num="(4)"> <text>Any other measures necessary to resolve the alleged violation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Time for Implementing a Corrective Action Plan.</text> <paragraph num="(1)"> <text>Within 10 days of receipt of a notice under §A of this regulation, the licensee shall submit a corrective action plan to the Director, or the Director’s designee.</text> </paragraph> <paragraph num="(2)"> <text>The Director, or the Director’s designee, shall review the corrective action plan and inform the licensee whether the corrective action plan is acceptable and:</text> <paragraph num="(a)"> <text>If the corrective action plan is acceptable, the licensee shall execute it immediately; or</text> </paragraph> <paragraph num="(b)"> <text>If the corrective action plan is not acceptable, the licensee shall submit a revised plan within 7 days of being notified by the Director or the Director’s designee.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the licensee fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the Director, or the Director’s designee, may:</text> <paragraph num="(a)"> <text>Provide the licensee with additional time within which to submit a revised corrective action plan; or</text> </paragraph> <paragraph num="(b)"> <text>Recommend the imposition of a sanction available in Regulation .10 of this chapter on the licensee in accordance with Regulation .06 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the Director, or the Director’s designee, provided a licensee with a notice under §A of this regulation and did not receive a timely written response, the Commission may adopt a recommendation made pursuant to §C(3)(b) as the final action by the Commission on the license.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Corrective Action Plan Outcome.</text> <paragraph num="(1)"> <text>After a licensee has completed a corrective action plan, to the satisfaction of the Director or the Director’s designee, the alleged violation will be deemed resolved, except that the alleged violation may be:</text> <paragraph num="(a)"> <text>The basis of a subsequent corrective action plan, settlement, penalty, or sanction if a similar violation occurs; or</text> </paragraph> <paragraph num="(b)"> <text>Raised during a Commission hearing as part of the Agency’s enforcement record for the licensee.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If at any time during the corrective action period the Director, or the Director’s designee, determines that the licensee has not made sufficient progress toward fulfilling a requirement of the corrective action plan, the Director may:</text> <paragraph num="(a)"> <text>For good cause, extend the time for completion of a corrective action plan; or</text> </paragraph> <paragraph num="(b)"> <text>Recommend the imposition of a sanction on the licensee pursuant to Regulation .06A of this chapter.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If at the end of the corrective action period the licensee has failed to satisfactorily complete the corrective action plan, the Director, or the Director’s designee, may recommend the imposition of a sanction on the licensee under Regulation .06A of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Settlement."> <paragraph num="A."> <text>The Commission may provide a licensee with the opportunity to discuss with staff a means of entering into a settlement agreement between the licensee and the Commission by which the violation is settled without a sanction.</text> </paragraph> <paragraph num="B."> <text>A settlement agreement:</text> <paragraph num="(1)"> <text>Shall be signed by an authorized representative of the licensee and the Director or the Director’s designee; and</text> </paragraph> <paragraph num="(2)"> <text>May not be considered final and binding until approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a licensee violates a term of a settlement agreement, nothing in this regulation shall be construed to prevent the Commission from imposing a sanction against the licensee for violating a term of the agreement or the underlying violation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Recommended Sanction."> <paragraph num="A."> <text>General. The Director or the Director’s designee may recommend the imposition of any sanction deemed appropriate against a licensee if the licensee:</text> <paragraph num="(1)"> <text>Violates a provision of Regulation .02 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Fails to timely or satisfactorily complete a corrective action plan required by the Commission;</text> </paragraph> <paragraph num="(3)"> <text>Violates a term of a settlement agreement; or</text> </paragraph> <paragraph num="(4)"> <text>Engages in any conduct that exposes the State’s Sports Wagering Program to a serious and imminent risk of harm to its integrity, security, or profitability.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notice of Recommended Sanction. The Director, or the Director’s designee shall provide the licensee written notice of a recommended sanction, including the:</text> <paragraph num="(1)"> <text>Recommended sanction;</text> </paragraph> <paragraph num="(2)"> <text>Basis for the recommended sanction;</text> </paragraph> <paragraph num="(3)"> <text>Consequences of the recommended sanction if it becomes the Commission’s final action on the license; and</text> </paragraph> <paragraph num="(4)"> <text>Licensee’s applicable hearing rights.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a licensee is dissatisfied with the recommended sanction, the applicant may submit a written request to the Commission to contest the recommended sanction:</text> <paragraph num="(1)"> <text>Within 15 days of the date of the recommended sanction; and</text> </paragraph> <paragraph num="(2)"> <text>That states the licensee’s legal and factual bases for contesting the sanction.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If a licensee fails to timely submit a written hearing request under §C of this regulation, the recommended sanction:</text> <paragraph num="(1)"> <text>Becomes final; and</text> </paragraph> <paragraph num="(2)"> <text>Constitutes the Commission’s final action on the license.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Emergency Suspension."> <paragraph num="A."> <text>The Director may emergently suspend a license if the Director determines that suspension is necessary in order to protect the State’s Sports Wagering Program against a serious and imminent risk of harm to its integrity, security, or profitability.</text> </paragraph> <paragraph num="B."> <text>Emergency Suspension — Process. If the Director emergently suspends a license, the Director shall promptly schedule a hearing before the Commission in accordance with COMAR 36.01.02.06 on the emergency suspension and provide the licensee with the written notice required under Regulation .06A of this chapter, along with notice directing the licensee that:</text> <paragraph num="(1)"> <text>The licensee shall immediately cease performing operations under the license; and</text> </paragraph> <paragraph num="(2)"> <text>Failure to comply with the Director’s directive to cease performing operations under the license constitutes a separate violation of Regulation .02 of this chapter for which an additional sanction may be imposed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Hearings."> <paragraph num="A."> <text>The Commission shall provide the applicant a hearing notice for a hearing held under COMAR 36.01.02.06:</text> <paragraph num="(1)"> <text>Upon receipt of a timely written hearing request submitted under Regulation .06C of this chapter; or</text> </paragraph> <paragraph num="(2)"> <text>For hearings held under Regulation .07B of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Hearings Before the Commission. For any hearing under this regulation held before the Commission, the Commission shall:</text> <paragraph num="(1)"> <text>Determine if the licensee is subject to sanction pursuant to the:</text> <paragraph num="(a)"> <text>Notice of recommended sanction issued under Regulation .06B of this chapter; or</text> </paragraph> <paragraph num="(b)"> <text>Notice of emergency suspension issued under Regulation .07B of this chapter;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Impose the sanction the Commission deems appropriate, if the Commission determines that a licensee is subject to sanction;</text> </paragraph> <paragraph num="(3)"> <text>If a sanction is imposed, prepare an order stating the Commission’s findings of fact, conclusions of law, and basis for the sanction; and</text> </paragraph> <paragraph num="(4)"> <text>Provide the licensee with written notification of the sanction as the Commission’s final action on the license.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Hearings Delegated to the Office of Administrative Hearings.</text> <paragraph num="(1)"> <text>For any hearing held under this regulation and delegated to the Office of Administrative Hearings for a final action on the license under COMAR 36.01.02.06O:</text> <paragraph num="(a)"> <text>The decision issued by Office of Administrative Hearings is the Commission’s final action on the license; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission reserves the right to seek judicial review of the decision issued by Office of Administrative Hearings under Regulation .09 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For any hearing delegated to the Office of Administrative Hearings for a recommended decision under COMAR 36.01.02.06O:</text> <paragraph num="(a)"> <text>The Director may designate a staff member to review the recommended decision who has not reviewed the license under Regulations .02—.06 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>The Director or the Director’s designee shall review the Administrative Law Judge’s recommended decision consistent with the terms of the delegation made and:</text> <paragraph num="(i)"> <text>Provide the applicant and staff an opportunity to present exceptions pursuant to State Government Article §10-216, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(ii)"> <text>After reviewing any exceptions filed by the applicant and staff, issue an order pursuant to State Government Article §10-220, Annotated Code of Maryland, that constitutes the Commission’s final action on the license.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Petition for Judicial Review."> <text>The Commission’s final action on a license is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Imposition of Sanctions."> <paragraph num="A."> <text>Permissible Sanctions. The Commission may:</text> <paragraph num="(1)"> <text>Impose a penalty on the licensee not exceeding $5,000 for each day and each violation; and</text> </paragraph> <paragraph num="(2)"> <text>In addition to any penalty assessed:</text> <paragraph num="(a)"> <text>Revoke the licensee’s license;</text> </paragraph> <paragraph num="(b)"> <text>Suspend the licensee’s license for a period of time;</text> </paragraph> <paragraph num="(c)"> <text>Reprimand the licensee; or</text> </paragraph> <paragraph num="(d)"> <text>Impose conditions upon the licensee that must be met within a specified time as to:</text> <paragraph num="(i)"> <text>Training;</text> </paragraph> <paragraph num="(ii)"> <text>Staffing;</text> </paragraph> <paragraph num="(iii)"> <text>Supervision;</text> </paragraph> <paragraph num="(iv)"> <text>Compliance with internal controls;</text> </paragraph> <paragraph num="(v)"> <text>Probationary periods; or</text> </paragraph> <paragraph num="(vi)"> <text>Any other directive to address the violation.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Penalty — Required Considerations. To determine the amount of a penalty to impose on a licensee, the Commission shall consider:</text> <paragraph num="(1)"> <text>The seriousness of the violation;</text> </paragraph> <paragraph num="(2)"> <text>The harm caused by the violation; and</text> </paragraph> <paragraph num="(3)"> <text>Whether the person who committed the violation acted in good faith.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Sanction — Considerations. To determine the appropriate sanction to impose on a licensee, the Commission may consider the factors in §B of this regulation, and:</text> <paragraph num="(1)"> <text>Whether a violation was willful;</text> </paragraph> <paragraph num="(2)"> <text>Whether the licensee had, or should have had, control of the situation;</text> </paragraph> <paragraph num="(3)"> <text>Whether the violation may have occurred in connection with unclear or insufficient:</text> <paragraph num="(a)"> <text>Information;</text> </paragraph> <paragraph num="(b)"> <text>Training;</text> </paragraph> <paragraph num="(c)"> <text>Communication; or</text> </paragraph> <paragraph num="(d)"> <text>Requirements;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Any extraordinary circumstances;</text> </paragraph> <paragraph num="(5)"> <text>Prior disciplinary history with the Commission;</text> </paragraph> <paragraph num="(6)"> <text>Profit that resulted, or may have resulted, from the violation;</text> </paragraph> <paragraph num="(7)"> <text>Harm that resulted, or may have resulted, from the violation;</text> </paragraph> <paragraph num="(8)"> <text>How the violation was detected;</text> </paragraph> <paragraph num="(9)"> <text>Action taken by the licensee to prevent recurrence of the violation;</text> </paragraph> <paragraph num="(10)"> <text>Action taken by the Commission to address similar violations; and</text> </paragraph> <paragraph num="(11)"> <text>Any other information that the Commission finds relevant.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Ignorance No Defense. A licensee is presumed to be familiar with applicable statutes and regulations governing the State’s Sports Wagering Program, and a claim of ignorance of the statutes and regulations may not be used as a defense to a finding of a violation or to the imposition of a sanction.</text> </paragraph> <paragraph num="E."> <text>Imposition of Sanction. A separate sanction may be imposed for each violation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Commission Action."> <paragraph num="A."> <text>A licensee whose license has been suspended or revoked by the Commission’s final action on the license shall immediately cease sports wagering activity.</text> </paragraph> <paragraph num="B."> <text>A licensee against whom the Commission imposed a penalty shall remit to the Commission payment in full of the penalty within 30 calendar days.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02, 9-1A-04, 9-1A-20, 9-1A-25 and 9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> </annotations> </chapter> <chapter num="09" heading="Unannounced Inspections"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter establishes the manner and method by which the Commission may conduct an unannounced inspection of the premises, records, and equipment of a sports wagering licensee and related entities in order to evaluate and verify a licensee’s compliance with State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the regulations promulgated by the Commission for the Sports Wagering Program.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Inspections."> <paragraph num="A."> <text>A licensee is subject to unannounced inspections conducted by the Commission in order to evaluate and verify the licensee’s compliance with State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the regulations promulgated by the Commission for the Sports Wagering Program.</text> </paragraph> <paragraph num="B."> <text>The Commission or a designee may conduct an unannounced inspection without a warrant and take any of the following actions:</text> <paragraph num="(1)"> <text>Conduct an inspection of licensed sports wagering facilities, sports wagering facility operators, mobile sports wagering licensees, online sports wagering operators, and sports wagering contractors in which:</text> <paragraph num="(a)"> <text>Sports wagering is conducted, offered or operated;</text> </paragraph> <paragraph num="(b)"> <text>Authorized sports wagering equipment or associated equipment or software are:</text> <paragraph num="(i)"> <text>Designed;</text> </paragraph> <paragraph num="(ii)"> <text>Assembled;</text> </paragraph> <paragraph num="(iii)"> <text>Manufactured;</text> </paragraph> <paragraph num="(iv)"> <text>Sold;</text> </paragraph> <paragraph num="(v)"> <text>Distributed;</text> </paragraph> <paragraph num="(vi)"> <text>Serviced; or</text> </paragraph> <paragraph num="(vii)"> <text>Physically located; or</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Records are prepared or maintained for activities referenced in §B(1)(a) or (b) of this regulation;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Conduct an inspection of sports wagering equipment or associated equipment in, about, on, or around the premises specified in §B(1) of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>From the premises specified in §B(1) of this regulation, summarily seize, remove, impound, or assume physical control of, for the purposes of examination and inspection:</text> <paragraph num="(a)"> <text>Sports wagering equipment; and</text> </paragraph> <paragraph num="(b)"> <text>Associated equipment and software;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Inspect, examine, and audit books, records, and documents concerning a sports wagering licensee’s sports wagering operation, including the financial records of:</text> <paragraph num="(a)"> <text>A principal or principal corporation;</text> </paragraph> <paragraph num="(b)"> <text>A subsidiary corporation; or</text> </paragraph> <paragraph num="(c)"> <text>An affiliated entity; or</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Seize, impound, copy, or assume physical control of:</text> <paragraph num="(a)"> <text>Books;</text> </paragraph> <paragraph num="(b)"> <text>Records;</text> </paragraph> <paragraph num="(c)"> <text>Ledgers;</text> </paragraph> <paragraph num="(d)"> <text>Cash boxes and their contents;</text> </paragraph> <paragraph num="(e)"> <text>A counting room or its equipment;</text> </paragraph> <paragraph num="(f)"> <text>Other physical objects relating to sports wagering operations; or</text> </paragraph> <paragraph num="(g)"> <text>Any record or object that a licensee is required by law, regulation, or license terms to maintain.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>During an inspection, a licensee and its employees, agents, and representatives:</text> <paragraph num="(1)"> <text>Shall:</text> <paragraph num="(a)"> <text>Make available for inspection, copying, or physical control a record that a licensee is required to maintain;</text> </paragraph> <paragraph num="(b)"> <text>Authorize any person having financial records relating to the licensee to provide those records to the Commission; and</text> </paragraph> <paragraph num="(c)"> <text>Otherwise cooperate with the activities of the Commission described in this chapter; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>May not knowingly interfere with the authorized activity of the Commission during an unannounced inspection.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An unannounced inspection may be conducted at any time as determined by the Commission.</text> </paragraph> <paragraph num="E."> <text>The refusal of a licensee or a licensee’s employees or agents to provide the Commission with the access necessary to perform an unannounced inspection may be the basis for enforcement action under COMAR 36.10.08.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Records and Reports."> <paragraph num="A."> <text>Within a reasonable time after the conclusion of the unannounced inspection, the Commission’s inspectors shall submit a written report of the inspection to:</text> <paragraph num="(1)"> <text>The Commission;</text> </paragraph> <paragraph num="(2)"> <text>The Director; and</text> </paragraph> <paragraph num="(3)"> <text>The licensee who was the subject of the Commission’s unannounced inspection.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A written report of an unannounced inspection shall be considered a public record to the extent allowable under the General Provisions Article, Title 4, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02, 9-1A-04, 9-1A-20, 9-1A-25 and 9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> </annotations> </chapter> <chapter num="10" heading="Enforcement of Voluntary Exclusion Program"> <regulation prefix="Regulation" num=".01" heading="Enforcement."> <paragraph num="A."> <text>Definition. Unless context dictates otherwise, for purposes of this chapter, “sports wagering licensee” includes:</text> <paragraph num="(1)"> <text>Sports wagering facility licensee;</text> </paragraph> <paragraph num="(2)"> <text>Mobile sports wagering licensee;</text> </paragraph> <paragraph num="(3)"> <text>Sports wagering facility operator licensee; and</text> </paragraph> <paragraph num="(4)"> <text>Online sports wagering operator license.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission shall notify sports wagering licensees that an individual has been placed on the voluntary exclusion list established in COMAR 36.01.03.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee may disclose information about an individual on the voluntary exclusion list to:</text> <paragraph num="(1)"> <text>The Commission;</text> </paragraph> <paragraph num="(2)"> <text>The licensee’s:</text> <paragraph num="(a)"> <text>Managers;</text> </paragraph> <paragraph num="(b)"> <text>Security department;</text> </paragraph> <paragraph num="(c)"> <text>Surveillance department; or</text> </paragraph> <paragraph num="(d)"> <text>Employees who are directly responsible for excluding unauthorized individuals from sports wagering; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the sports wagering licensee pursues criminal charges against an individual on the voluntary exclusion list who is suspected of trespassing on the premises of a sports wagering facility licensee, to:</text> <paragraph num="(a)"> <text>A law enforcement officer; or</text> </paragraph> <paragraph num="(b)"> <text>A person who is legally authorized to be involved in the criminal prosecution of an individual on the voluntary exclusion list who is suspected of trespassing on a sports wagering licensee’s property.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>If a sports wagering licensee uses technology for the purpose of complying with this regulation, the sports wagering licensee shall ensure that the technology:</text> <paragraph num="(1)"> <text>Complies with all applicable State and local requirements; and</text> </paragraph> <paragraph num="(2)"> <text>Is designed to prevent unauthorized access to confidential records.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If an individual on the voluntary exclusion list is found on the part of the premises of a sports wagering licensee where sports wagering is conducted, the sports wagering licensee:</text> <paragraph num="(1)"> <text>Shall immediately notify the Commission in person or via email; and</text> </paragraph> <paragraph num="(2)"> <text>May pursue criminal charges against the individual such as trespassing.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A sports wagering licensee may not:</text> <paragraph num="(1)"> <text>Permit an individual on the voluntary exclusion list to:</text> <paragraph num="(a)"> <text>Enter the part of the premises of a sports wagering licensee where sports wagering is conducted; or</text> </paragraph> <paragraph num="(b)"> <text>Participate in sports wagering;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Knowingly fail to exclude from the part of the premises of a sports wagering licensee where sports wagering is conducted an individual on the voluntary exclusion list; or</text> </paragraph> <paragraph num="(3)"> <text>Disclose information about an individual on the voluntary exclusion list beyond the disclosures that are authorized under §C of this regulation.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Unless excluded by operation of another directive or order outside the Commission, an individual who has been placed on a voluntary exclusion list of the Commission that is not under this subtitle may engage in sports wagering.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Responsible Gaming Plan."> <paragraph num="A."> <text>A sports wagering licensee shall establish a responsible gaming plan that sets forth its plan for addressing problem gambling that shall include at least the following elements of the plan:</text> <paragraph num="(1)"> <text>Goals;</text> </paragraph> <paragraph num="(2)"> <text>Procedures and deadlines for implementation;</text> </paragraph> <paragraph num="(3)"> <text>Procedures for retrieving and securely maintaining the voluntary exclusion list;</text> </paragraph> <paragraph num="(4)"> <text>Procedures for notifying the Commission of an unauthorized access to the list within twelve hours of the unauthorized access;</text> </paragraph> <paragraph num="(5)"> <text>Identification of a sports wagering licensee’s personnel responsible for implementation;</text> </paragraph> <paragraph num="(6)"> <text>Responsibilities of a sports wagering licensee’s personnel identified as responsible for implementation;</text> </paragraph> <paragraph num="(7)"> <text>Training for a sports wagering licensee’s personnel on problem gambling and voluntary exclusion;</text> </paragraph> <paragraph num="(8)"> <text>Means of controlling access to records pertaining to voluntary exclusion;</text> </paragraph> <paragraph num="(9)"> <text>Means of educating bettors about:</text> <paragraph num="(a)"> <text>Problem gambling;</text> </paragraph> <paragraph num="(b)"> <text>Problem gambling treatment resources, including treatment and prevention programs established under State Government Article, §9-1A-33, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(c)"> <text>Voluntary exclusion;</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Placement of responsible gambling awareness information:</text> <paragraph num="(a)"> <text>In the premises of a sports wagering facility licensee; and</text> </paragraph> <paragraph num="(b)"> <text>On a sports wagering licensee’s sports wagering platform;</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>Ensuring that an individual on the voluntary exclusion list is not permitted to:</text> <paragraph num="(a)"> <text>Enter the part of the premises of a sports wagering licensee where sports wagering is conducted;</text> </paragraph> <paragraph num="(b)"> <text>Participate in sports wagering; or</text> </paragraph> <paragraph num="(c)"> <text>Claim winnings;</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>The sports wagering licensee’s response to the discovery of an individual who is enrolled in the voluntary exclusion list in the part of the premises of a sports wagering licensee where sports wagering is conducted, which may include pursuing criminal charges against the individual;</text> </paragraph> <paragraph num="(13)"> <text>The sports wagering licensee’s response to the discovery of a bettor who is enrolled in the voluntary exclusion list using a sports wagering platform, which may include an action up to and including permanent suspension of the bettor’s account;</text> </paragraph> <paragraph num="(14)"> <text>The sports wagering licensee’s procedures for returning to a bettor the funds in the bettor’s account that were placed by the bettor prior to the bettor’s application for voluntary exclusion, including the requirement that:</text> <paragraph num="(a)"> <text>Funds be returned as soon as practicable after the time the bettor is placed on the voluntary exclusion list; and</text> </paragraph> <paragraph num="(b)"> <text>The sports wagering licensee return the funds to the bettor within 7 days of the bettor’s placement on the voluntary exclusion list, by:</text> <paragraph num="(i)"> <text>Crediting the bettor’s personal bank account; or</text> </paragraph> <paragraph num="(ii)"> <text>Paying the bettor by check; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(15)"> <text>Any other element required by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall submit to the Commission the responsible gaming plan required under §A of this regulation at least 60 days before sports wagering operations are to commence or within a time-period approved by the Commission.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall submit any amendments to its responsible gaming plan to the Commission prior to implementation.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall annually submit to the Commission its responsible gaming plan.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Requirements."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meaning indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Advertisement” means any material that is:</text> <paragraph num="(i)"> <text>Disseminated to the public through broadcasting, publication, mail, or any other means; and</text> </paragraph> <paragraph num="(ii)"> <text>Intended to encourage sports wagering.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Billboard advertisement” means a roadside sign, aviation banner, or event banner that is intended to encourage sports wagering.</text> </paragraph> <paragraph num="(c)"> <text>“Gambling assistance message” means a phrase approved by the Commission to encourage responsible play.</text> </paragraph> <paragraph num="(d)"> <text>“Printed advertisement” means an advertisement that appears in or on a sign, direct mailing, poster, brochure or other written material and is intended to encourage sports wagering.</text> </paragraph> <paragraph num="(e)"> <text>“Online advertisement” means an advertisement that appears on a website, an application in social media, or otherwise on the internet that is intended to encourage sports wagering.</text> </paragraph> <paragraph num="(f)"> <text>“Responsible gambling awareness materials” means a sticker, a brochure, a wallet card, or other material that conveys only problem gambling resource information.</text> </paragraph> <paragraph num="(g)"> <text>“Underage warning message” means the phrase: No bettor under the age of 21 is permitted to participate in sports wagering.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Post signage approved by the Commission that prominently bears the gambling assistance message and the underage warning message at each customer entrance;</text> </paragraph> <paragraph num="(2)"> <text>Include banners or other notifications on the sports wagering websites that bear the gambling assistance message and the underage warning message;</text> </paragraph> <paragraph num="(3)"> <text>Include the gambling assistance message on an advertisement that is intended to encourage sports wagering;</text> </paragraph> <paragraph num="(4)"> <text>Ensure that a printed advertisement bears the gambling assistance message and meets requirements of COMAR 36.10.13.43 and 36.03.03.08;</text> </paragraph> <paragraph num="(5)"> <text>Ensure that a billboard bearing a printed advertisement bears the gambling assistance message and meets requirements of COMAR 36.10.13.43 and 36.03.03.08;</text> </paragraph> <paragraph num="(6)"> <text>Ensure that a radio, television, video, online, or social media advertisement bears the gambling assistance message and meets requirements of COMAR 36.10.13.43 and 36.03.03.08;</text> </paragraph> <paragraph num="(7)"> <text>Ensure that the gambling assistance message is printed on a paper product that is associated with bettor consumption of food or beverage if the paper product is:</text> <paragraph num="(a)"> <text>Special ordered; and</text> </paragraph> <paragraph num="(b)"> <text>Branded with the sports wagering licensees logo;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Ensure that the gambling assistance message is printed on a sports wagering ticket or sports wagering voucher;</text> </paragraph> <paragraph num="(9)"> <text>Place in the sports wagering facility and sports wagering platform responsible gambling awareness information according to its responsible gaming plan required under COMAR 36.10.10.02;</text> </paragraph> <paragraph num="(10)"> <text>Ensure that an advertisement for sports wagering, video lottery terminal, or table game play does not include language that suggests an outcome is guaranteed or without risk; and</text> </paragraph> <paragraph num="(11)"> <text>Ensure that advertisements for sports wagering includes a gambling assistance message that complies:</text> <paragraph num="(a)"> <text>For signs, direct mail materials, posters, and other printed advertisements the font height of the gambling assistance message shall be the greater of:</text> <paragraph num="(i)"> <text>The same size as the majority of the text in the advertisement; or</text> </paragraph> <paragraph num="(ii)"> <text>Three percent of the height or width, whichever is greater, of the advertisement;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>For billboards, the font height of the gambling assistance message shall be at least 5 percent of the height or width, whichever is greater, of the face of the billboard;</text> </paragraph> <paragraph num="(c)"> <text>For video and television advertisements:</text> <paragraph num="(i)"> <text>The gambling assistance message shall be visible for the entire duration of the advertisement, with a font size at least 3 percent of the image height or width;</text> </paragraph> <paragraph num="(ii)"> <text>The gambling assistance message shall appear from the first instance sports wagering or a licensed operator is displayed or mentioned for not less than 3 seconds, and again on a final screen for the final 3 seconds of the advertisement;</text> </paragraph> <paragraph num="(iii)"> <text>The font height shall be at least 3 percent of the height or width, whichever is greater, of the image during the advertisement; or</text> </paragraph> <paragraph num="(iv)"> <text>The font height shall be at least 8 percent of the height or width, whichever is greater, of the image on the final screen; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>For websites and social media:</text> <paragraph num="(i)"> <text>The gambling assistance message shall be posted on each webpage or profile page, and on any gaming-related advertisement posted on those pages;</text> </paragraph> <paragraph num="(ii)"> <text>The font height of the gambling assistance message shall be at least the same size as the majority of the text used on the webpage or profile page; and</text> </paragraph> <paragraph num="(iii)"> <text>For advertisements posted on the webpage or profile page, the font height shall comply with the requirements in §B(11)(a) of this regulation.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-24 and 9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective April 27, 2026 (53:8 Md. R. 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="11" heading="Mandatory Exclusion"> <regulation prefix="Regulation" num=".01" heading="Definition."> <text>Unless context dictates otherwise, for purposes of this chapter, “sports wagering licensee” includes:</text> <paragraph num="(1)"> <text>Sports wagering facility licensee;</text> </paragraph> <paragraph num="(2)"> <text>Mobile sports wagering licensee;</text> </paragraph> <paragraph num="(3)"> <text>Sports wagering facility operator licensee; and</text> </paragraph> <paragraph num="(4)"> <text>Online sports wagering operator licensee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="General."> <text>This chapter establishes a mechanism by which the Commission:</text> <paragraph num="A."> <text>Maintains a list of individuals who shall be mandatorily:</text> <paragraph num="(1)"> <text>Excluded from participating in sports wagering; and</text> </paragraph> <paragraph num="(2)"> <text>Excluded or ejected from the part of the premises of a sports wagering licensee where sports wagering is conducted; and</text> </paragraph> </paragraph> <paragraph num="B."> <text>Establishes standards that require a sports wagering licensee to:</text> <paragraph num="(1)"> <text>Exclude an individual from participating in sports wagering;</text> </paragraph> <paragraph num="(2)"> <text>Exclude or eject an individual from the part of the premises of a sports wagering licensee where sports wagering is conducted; and</text> </paragraph> <paragraph num="(3)"> <text>Ensure that an individual under the age of 21 does not participate in sports wagering and are not allowed in the part of the premises of a sports wagering licensee where sports wagering is conducted including the platform of a sports wagering licensee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Prohibitions."> <paragraph num="A."> <text>An individual who has been placed on the Commission’s mandatory exclusion list from sports wagering under this chapter may not:</text> <paragraph num="(1)"> <text>Engage in sports wagering; or</text> </paragraph> <paragraph num="(2)"> <text>Be on the part of the premises of a sports wagering licensee where sports wagering is conducted.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Unless excluded by operation of another directive or order outside the Commission, an individual who has been placed on a voluntary or mandatory exclusion list of the Commission that is not under this subtitle may engage in sports wagering.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Mandatory Exclusion List."> <paragraph num="A."> <text>The Commission shall establish a mandatory exclusion list for the Sports Wagering Program.</text> </paragraph> <paragraph num="B."> <text>The Director may place on the mandatory exclusion list an individual who:</text> <paragraph num="(1)"> <text>Is a career offender as defined in State Government Article, §9-1A-01, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Has been convicted of a criminal offense under the laws of the United States or any jurisdiction within the United States that is a criminal offense involving moral turpitude or a gambling or sports wagering offense;</text> </paragraph> <paragraph num="(3)"> <text>Would adversely affect the interests of the State, the licensee, or the individual if that individual were to participate in sports wagering;</text> </paragraph> <paragraph num="(4)"> <text>Is the subject of any administrative or judicial order directing the individual to cease participating in sports wagering;</text> </paragraph> <paragraph num="(5)"> <text>Presents a threat to the safety of any individual on the premises of a wagering facility;</text> </paragraph> <paragraph num="(6)"> <text>Engages in, or has a documented history of engaging in, disruption of sports wagering;</text> </paragraph> <paragraph num="(7)"> <text>The sports wagering licensee has a reasonable belief has cheated, or attempted to cheat; or</text> </paragraph> <paragraph num="(8)"> <text>Engages in any conduct that may adversely affect public confidence in, or perception of, the State’s Sports Wagering Program.</text> </paragraph> </paragraph> <paragraph num="C."> <text>In evaluating whether to place an individual on the mandatory exclusion list, the Director may consider monetary amounts and circumstances, including:</text> <paragraph num="(1)"> <text>The nature of the incident;</text> </paragraph> <paragraph num="(2)"> <text>Whether the individual was a sports wagering employee at the time of the incident;</text> </paragraph> <paragraph num="(3)"> <text>If the individual was a sports wagering employee while the individual engaged in conduct described in §B of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>Whether the incident directly impacts:</text> <paragraph num="(a)"> <text>Sports wagering operations;</text> </paragraph> <paragraph num="(b)"> <text>A bettor; or</text> </paragraph> <paragraph num="(c)"> <text>A licensee;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The amount or type of loss to:</text> <paragraph num="(a)"> <text>The sports wagering licensee;</text> </paragraph> <paragraph num="(b)"> <text>Sports wagering operations;</text> </paragraph> <paragraph num="(c)"> <text>A bettor; or</text> </paragraph> <paragraph num="(d)"> <text>A licensee;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Whether the individual made restitution;</text> </paragraph> <paragraph num="(7)"> <text>Whether the individual was involved in a prior incident that meets the criteria of §B of this regulation;</text> </paragraph> <paragraph num="(8)"> <text>Whether a sports wagering licensee has other information the Director finds relevant; and</text> </paragraph> <paragraph num="(9)"> <text>Any other information the Director finds relevant.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Commission’s entry of an individual on the mandatory exclusion list shall include sufficient information to identify the excluded individual.</text> </paragraph> <paragraph num="E."> <text>The information used to identify an excluded individual may include:</text> <paragraph num="(1)"> <text>The individual’s:</text> <paragraph num="(a)"> <text>Name and any nickname or alias;</text> </paragraph> <paragraph num="(b)"> <text>Residential address;</text> </paragraph> <paragraph num="(c)"> <text>Telephone numbers;</text> </paragraph> <paragraph num="(d)"> <text>Gender;</text> </paragraph> <paragraph num="(e)"> <text>Physical description, including any birthmarks, scars, or tattoos;</text> </paragraph> <paragraph num="(f)"> <text>Race or ethnic origin;</text> </paragraph> <paragraph num="(g)"> <text>For non-United States citizens, country of origin;</text> </paragraph> <paragraph num="(h)"> <text>Photograph; and</text> </paragraph> <paragraph num="(i)"> <text>Social security number or other government issued identification number;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Date of placement on the mandatory exclusion list;</text> </paragraph> <paragraph num="(3)"> <text>Brief statement of the basis for placing the individual on the mandatory exclusion list; and</text> </paragraph> <paragraph num="(4)"> <text>Any other information the Commission requires.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The mandatory exclusion list and related records are public records under General Provisions Article, §4-101, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Inclusion on Mandatory Exclusion List."> <paragraph num="A."> <text>Upon receipt of information that reasonably indicates an individual meets any criteria under Regulation .04B of this chapter, and after making any determination under Regulation .04 of this chapter, the Director shall:</text> <paragraph num="(1)"> <text>Evaluate the information;</text> </paragraph> <paragraph num="(2)"> <text>Ensure that the information required under Regulation .04E of this chapter sufficiently identifies the individual; and</text> </paragraph> <paragraph num="(3)"> <text>Decide whether to place the individual on the mandatory exclusion list.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Prior to placing an individual on the mandatory exclusion list, the Director or the Director’s designee may provide a sports wagering licensee with:</text> <paragraph num="(1)"> <text>Information used to identify an individual who may be excluded;</text> </paragraph> <paragraph num="(2)"> <text>The factual basis for placing an individual on the mandatory exclusion list; and</text> </paragraph> <paragraph num="(3)"> <text>An opportunity to provide the Director with additional information identified in Regulation .04 of this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the Director decides to place an individual on the mandatory exclusion list, staff shall deliver to the individual by U.S. mail a written notice explaining:</text> <paragraph num="(1)"> <text>The factual basis for placing the individual on the mandatory exclusion list;</text> </paragraph> <paragraph num="(2)"> <text>The availability of a reconsideration meeting with the Director or the Director’s designee;</text> </paragraph> <paragraph num="(3)"> <text>The requirements for submitting a request for a reconsideration meeting;</text> </paragraph> <paragraph num="(4)"> <text>That, if a timely request for a reconsideration meeting is not submitted, the placement of the individual’s name on a mandatory exclusion list and the distribution of the individual’s name to all sports wagering licensees in the State is available to the public; and</text> </paragraph> <paragraph num="(5)"> <text>That the excluded individual shall be:</text> <paragraph num="(a)"> <text>Prohibited from the part of the premises of a sports wagering licensee where sports wagering is conducted and from participating in sports wagering;</text> </paragraph> <paragraph num="(b)"> <text>Subject to criminal charges for trespassing or any other appropriate criminal charge; and</text> </paragraph> <paragraph num="(c)"> <text>Required to:</text> <paragraph num="(i)"> <text>Redeem or liquidate unredeemed items that the individual has received since being placed on the mandatory exclusion list; and</text> </paragraph> <paragraph num="(ii)"> <text>Surrender to the Problem Gambling Fund established under State Government Article, §9-1A-33, Annotated Code of Maryland, any unredeemed items in the possession of the individual or received by the individual while participating in sports wagering after placement on the mandatory exclusion list.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Reconsideration Meeting.</text> <paragraph num="(1)"> <text>An individual may submit to the Director a written request for a reconsideration meeting within 15 days of the date of the individual’s receipt of the notice described in §C of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>If an individual fails to timely submit a request under §D(1) of this regulation, the individual shall be placed on the mandatory exclusion list.</text> </paragraph> <paragraph num="(3)"> <text>A reconsideration meeting may be held by the Director or the Director’s designee.</text> </paragraph> <paragraph num="(4)"> <text>During a reconsideration meeting, an individual may:</text> <paragraph num="(a)"> <text>Be represented by counsel; and</text> </paragraph> <paragraph num="(b)"> <text>Present evidence as to why the individual does not meet the criteria under Regulation .04B of this chapter.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The Director or the Director’s designee shall deliver to the individual by U.S. mail a written notice of the decision following the reconsideration meeting.</text> </paragraph> <paragraph num="(6)"> <text>An individual dissatisfied with the result of a reconsideration meeting may submit a written request to the Commission for an appeal hearing.</text> </paragraph> <paragraph num="(7)"> <text>The request for an appeal hearing shall:</text> <paragraph num="(a)"> <text>Be submitted within 15 days of the date of the individual’s receipt of the written notice of the decision following the reconsideration meeting; and</text> </paragraph> <paragraph num="(b)"> <text>Describe the individual’s legal and factual bases for disagreeing with placement on the mandatory exclusion list.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>If an individual fails to timely submit a written request for an appeal hearing under §D(7) of this regulation, the individual shall be placed on the mandatory exclusion list.</text> </paragraph> <paragraph num="(9)"> <text>Upon receipt of a timely written request for an appeal hearing, the Director or the Director’s designee shall provide the individual with a notice for the appeal hearing.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Appeal Hearing.</text> <paragraph num="(1)"> <text>If after an appeal hearing the Commission decides that the excluded individual does not meet any criteria under Regulation .04B of this chapter, the individual’s name may not be placed on the mandatory exclusion list.</text> </paragraph> <paragraph num="(2)"> <text>If after an appeal hearing the Commission decides that the excluded individual meets any criteria under Regulation .04B of this chapter:</text> <paragraph num="(a)"> <text>The individual’s name shall remain on the mandatory exclusion list;</text> </paragraph> <paragraph num="(b)"> <text>The Commission shall notify all sports wagering licensees in the State of the individual’s addition to the mandatory exclusion list;</text> </paragraph> <paragraph num="(c)"> <text>The individual may seek judicial review of the Commission’s decision; and</text> </paragraph> <paragraph num="(d)"> <text>The individual may request to be removed from the mandatory exclusion list only as provided in Regulation .06 of this chapter.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Removal from Mandatory Exclusion List."> <paragraph num="A."> <text>After an excluded individual has been on the mandatory exclusion list for at least 5 years, the individual may request removal from the mandatory exclusion list.</text> </paragraph> <paragraph num="B."> <text>An excluded individual’s request under §A of this regulation shall be submitted to the Director in writing and shall include a detailed statement about why there is:</text> <paragraph num="(1)"> <text>Good cause for removal of the individual from the list; and</text> </paragraph> <paragraph num="(2)"> <text>A material change in the individual’s circumstances since the individual’s name was placed on the list.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Director or the Director’s designee shall investigate the request and make a recommendation to the Commission whether to grant or deny the request.</text> </paragraph> <paragraph num="D."> <text>If the Director or the Director’s designee recommends removing the individual from the list, the Commission may approve the recommendation without a hearing, and staff shall:</text> <paragraph num="(1)"> <text>Remove the individual from the mandatory exclusion list;</text> </paragraph> <paragraph num="(2)"> <text>Deliver to the individual by U.S. mail a notice of removal from the mandatory exclusion list; and</text> </paragraph> <paragraph num="(3)"> <text>Notify the State’s sports wagering licensees of the individual’s removal from the mandatory exclusion list.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If the Director or the Director’s designee recommends continued inclusion on the mandatory exclusion list, the excluded individual may submit a written request for an appeal hearing to the Commission.</text> </paragraph> <paragraph num="F."> <text>Appeal Hearing.</text> <paragraph num="(1)"> <text>The request for an appeal hearing shall:</text> <paragraph num="(a)"> <text>Be submitted within 15 days of the date of the individual’s receipt of the written notice of the recommendation of the Director or the Director’s designee; and</text> </paragraph> <paragraph num="(b)"> <text>Describe the individual’s legal and factual bases for disagreeing with the recommendation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If an individual fails to timely submit a written request for an appeal hearing under §F(1)(a) of this regulation, the individual shall remain on the mandatory exclusion list.</text> </paragraph> <paragraph num="(3)"> <text>Upon receipt of a timely written request for an appeal hearing, the Director shall provide the individual with a hearing notice for a hearing.</text> </paragraph> </paragraph> <paragraph num="G."> <text>If after a hearing the Commission denies the individual’s request for removal, it shall deliver to the individual by U.S. mail a notice that the:</text> <paragraph num="(1)"> <text>Request was denied; and</text> </paragraph> <paragraph num="(2)"> <text>Individual shall remain on the mandatory exclusion list.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Separate from the individual’s ability to request removal under §A of this regulation, the Director shall periodically review the mandatory exclusion list and may consider the following in order to determine if an individual should be removed:</text> <paragraph num="(1)"> <text>Whether the individual is living;</text> </paragraph> <paragraph num="(2)"> <text>Whether there are changed circumstances; or</text> </paragraph> <paragraph num="(3)"> <text>Whether removal is warranted due to any other relevant information.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Judicial Review."> <text>The Commission’s decision under Regulations .05E(2) and .06G of this chapter may be subject to judicial review.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Enforcement."> <text>A sports wagering licensee may not:</text> <paragraph num="A."> <text>Knowingly fail to exclude or eject an excluded individual from the property of a sports wagering licensee for which it is licensed or authorized to operate;</text> </paragraph> <paragraph num="B."> <text>Fail to notify the Commission if an excluded individual is prohibited from entering any sports wagering facility;</text> </paragraph> <paragraph num="C."> <text>Fail to notify the Commission if an excluded individual is prohibited from participating in sports wagering through a sports wagering licensee including through a sports wagering platform;</text> </paragraph> <paragraph num="D."> <text>Permit an individual younger than 21 years old to:</text> <paragraph num="(1)"> <text>Participate in sports wagering; or</text> </paragraph> <paragraph num="(2)"> <text>Enter the part of the premises of a sports wagering facility it is licensed or authorized to operate where sports wagering is conducted;</text> </paragraph> </paragraph> <paragraph num="E."> <text>Knowingly allow to collect winnings an:</text> <paragraph num="(1)"> <text>Excluded individual; or</text> </paragraph> <paragraph num="(2)"> <text>Individual younger than 21 years old; or</text> </paragraph> </paragraph> <paragraph num="F."> <text>Fail to obtain any unredeemed items in the possession of an excluded individual and transfer them to the Problem Gambling Fund established under State Government Article, §9-1A-33, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Sports Wagering Licensee’s Mandatory Exclusion Plan."> <paragraph num="A."> <text>A sports wagering licensee shall establish a plan for identifying and:</text> <paragraph num="(1)"> <text>Excluding or ejecting excluded individuals from a sports wagering facility or from participating in sports wagering; and</text> </paragraph> <paragraph num="(2)"> <text>Ensuring that excluded individuals and individuals younger than 21 years old are not allowed to:</text> <paragraph num="(a)"> <text>Participate in sports wagering; and</text> </paragraph> <paragraph num="(b)"> <text>Enter the part of the premises of a sports wagering licensee where sports wagering is conducted.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The plan required under §A of this regulation shall include:</text> <paragraph num="(1)"> <text>Goals;</text> </paragraph> <paragraph num="(2)"> <text>Procedures and deadlines for implementation;</text> </paragraph> <paragraph num="(3)"> <text>Identification of facility personnel responsible for implementation;</text> </paragraph> <paragraph num="(4)"> <text>Responsibilities of sports wagering licensee’s personnel identified as responsible for implementation;</text> </paragraph> <paragraph num="(5)"> <text>Training for sports wagering licensee’s personnel on the requirements of this chapter;</text> </paragraph> <paragraph num="(6)"> <text>Regular monitoring of the mandatory exclusion list;</text> </paragraph> <paragraph num="(7)"> <text>Prompt reports to the Commission about the presence at a wagering facility of an individual who:</text> <paragraph num="(a)"> <text>Is included on the mandatory exclusion list; and</text> </paragraph> <paragraph num="(b)"> <text>Is required to be prevented from participating in sports wagering;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Prompt reports to the Commission about an individual who is permanently excluded from participating in sports wagering;</text> </paragraph> <paragraph num="(9)"> <text>The sports wagering licensee’s response to the discovery of an individual who is on the mandatory exclusion list at the property of a sports wagering licensee or participating in sports wagering, which may include pursuing criminal charges against the individual; and</text> </paragraph> <paragraph num="(10)"> <text>Any other element required by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall submit to the Commission for its approval:</text> <paragraph num="(1)"> <text>At least 60 days before sports wagering operations are to commence, the mandatory exclusion plan required under §A of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Any amendments to a sports wagering licensee’s mandatory exclusion plan prior to implementation; and</text> </paragraph> <paragraph num="(3)"> <text>An annual report describing the operation of the sports wagering licensee’s mandatory exclusion plan.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-24, 9-1E-04, and 9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> </annotations> </chapter> <chapter num="12" heading="Collection of Taxes, Fees, and Penalties"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter establishes the manner and method by which the Commission may collect from an applicant or licensee a tax, fee or civil penalty established under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the manner by which a sports wagering licensee may reconcile proceeds under State Government Article, §9-1E-07, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Fee” means an amount established by the Commission that an applicant or licensee is required to pay and includes:</text> <paragraph num="(a)"> <text>An application or renewal fee; and</text> </paragraph> <paragraph num="(b)"> <text>A fee associated with an applicant’s criminal history records check.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Proceeds” has the meaning stated in State Government Article, §§9-1E-01 and 9-1E-12, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Obligation to Pay."> <paragraph num="A."> <text>A tax that is due and payable shall be paid by an applicant or licensee and collected in accordance with State and federal law.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall submit monthly sports wagering tax returns to the Commission by the 5th day of the following month.</text> </paragraph> <paragraph num="C."> <text>If monthly sports wagering taxes are due, the licensee shall pay them to the Commission by wire transfer by the 7th day of the following month.</text> </paragraph> <paragraph num="D."> <text>If, by the 10th calendar day of the month, a sports wagering licensee fails to submit a properly completed sports wagering tax return and all taxes due to the Commission, the sports wagering license shall be automatically suspended.</text> </paragraph> <paragraph num="E."> <text>If a sports wagering license is suspended under of this regulation, the Commission may lift the license suspension after the licensee submits the tax return and the tax payment.</text> </paragraph> <paragraph num="F."> <text>For a fee or penalty:</text> <paragraph num="(1)"> <text>The Commission shall issue an invoice or other order to pay; and</text> </paragraph> <paragraph num="(2)"> <text>An applicant or licensee shall remit payment to the Commission within 30 days after the date of the invoice or order to pay.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Reconciliation of Gross Sports Wagering Receipts.</text> <paragraph num="(1)"> <text>If a sports wagering licensee returns to successful bettors more than the amount of money wagered on a sporting event, the sports wagering licensee may subtract the difference between the amount wagered and the amount returned to bettors from its proceeds of up to 3 months.</text> </paragraph> <paragraph num="(2)"> <text>A sports wagering licensee may not subtract losses under §G(1) of this regulation for more than 3 consecutive months.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Collection and Deposit of Payments."> <paragraph num="A."> <text>An applicant or licensee shall pay a fee or civil penalty by:</text> <paragraph num="(1)"> <text>Wire transfer;</text> </paragraph> <paragraph num="(2)"> <text>Money order;</text> </paragraph> <paragraph num="(3)"> <text>Certified check made payable to the “State of Maryland”; or</text> </paragraph> <paragraph num="(4)"> <text>Any other manner designated by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission shall deposit payment of:</text> <paragraph num="(1)"> <text>An application, license, renewal, or other fee into a bank account that the State Treasurer designates to the credit of the State Lottery and Gaming Control Agency Fund and distribute the funds as described under:</text> <paragraph num="(a)"> <text>State Government Article, §9-1E-07, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>State Government Article, §9-1E-12, Annotated Code of Maryland;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Expired winnings into the Problem Gambling Fund established in the Maryland Department of Health under State Government Article, §9-1A-33, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(3)"> <text>Funds surrendered under COMAR 03.10.10 or COMAR 03.10.11.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission may recover from an applicant or licensee whose payment of a fee or penalty is overdue:</text> <paragraph num="(1)"> <text>The unpaid amount of the fee or penalty;</text> </paragraph> <paragraph num="(2)"> <text>Revenues lost to the State as the result of the nonpayment;</text> </paragraph> <paragraph num="(3)"> <text>Attorney’s fees; and</text> </paragraph> <paragraph num="(4)"> <text>Any other penalty, interest, cost, and expense allowable by law.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The failure of a licensee to timely pay a fee or penalty is a violation of an order of the Commission.</text> </paragraph> <paragraph num="E."> <text>The Commission’s election to seek recovery under §C of this regulation for a licensee’s failure to pay a fee or penalty does not preclude the Commission or the State from enforcing other rights, or seeking other remedies, for the same failure to pay.</text> </paragraph> <paragraph num="F."> <text>The Commission shall account for collection of a fee or penalty in accordance with applicable law.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1A-02, 9-1A-04, 9-1A-33 and 9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C, D amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> <chapter num="13" heading="Sports Wagering Licensee Minimum Internal Control Standards"> <regulation prefix="Regulation" num=".01" heading="Accounting Records."> <paragraph num="A."> <text>Definition. Unless context or the individual regulation dictates otherwise, for purposes of this chapter, “sports wagering licensee” includes:</text> <paragraph num="(1)"> <text>Sports wagering facility licensee;</text> </paragraph> <paragraph num="(2)"> <text>Mobile sports wagering licensee;</text> </paragraph> <paragraph num="(3)"> <text>Sports wagering facility operator licensee; and</text> </paragraph> <paragraph num="(4)"> <text>Online sports wagering operator licensee.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall maintain complete, accurate, and legible records of all transactions pertaining to the revenues and expenses of sports wagering operations.</text> </paragraph> <paragraph num="C."> <text>General ledger records shall be maintained on a double entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles in the United States.</text> </paragraph> <paragraph num="D."> <text>Subsidiary ledgers and records supporting general ledger records shall be prepared in accordance with generally accepted accounting principles in the United States.</text> </paragraph> <paragraph num="E."> <text>Subsidiary ledgers and records shall include, at a minimum, documents that:</text> <paragraph num="(1)"> <text>Support the financial statements and all transactions impacting the financial statements including contracts or agreements with sports wagering contractors;</text> </paragraph> <paragraph num="(2)"> <text>Identify all sports wagering activity on a week-to-date, month-to-date, and year-to-date basis for the following:</text> <paragraph num="(a)"> <text>Handle;</text> </paragraph> <paragraph num="(b)"> <text>Payout;</text> </paragraph> <paragraph num="(c)"> <text>Win amount;</text> </paragraph> <paragraph num="(d)"> <text>Win percentage; and</text> </paragraph> <paragraph num="(e)"> <text>Average payout percentage;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Summarize the cost, by category of service, of complimentary services under Regulation .08 of this chapter;</text> </paragraph> <paragraph num="(4)"> <text>Identify all costs and expenses associated with the sports wagering operation;</text> </paragraph> <paragraph num="(5)"> <text>Are prepared in compliance with the internal controls approved by the Commission under Regulation .04 of this chapter; and</text> </paragraph> <paragraph num="(6)"> <text>Relate to:</text> <paragraph num="(a)"> <text>Loans and other amounts payable by a sports wagering licensee;</text> </paragraph> <paragraph num="(b)"> <text>Bettor disputes including bettor complaint forms filed with the Commission under Regulation .37 of this chapter;</text> </paragraph> <paragraph num="(c)"> <text>Negotiable instruments accepted, deposited, returned as uncollected or ultimately written-off by a sports wagering licensee under this chapter; and</text> </paragraph> <paragraph num="(d)"> <text>Investments in property and equipment for the benefit of a sports wagering licensee.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Forms and Documents."> <paragraph num="A."> <text>A form or document required by this chapter, including stored data, shall have:</text> <paragraph num="(1)"> <text>All information placed on the form or document recorded in ink or another permanent form; and</text> </paragraph> <paragraph num="(2)"> <text>The title of the form or document and the name of the sports wagering licensee imprinted or preprinted on it.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If under this chapter multiple copies are required of a form or document, all copies shall have the name of the intended recipient of the copy preprinted on the bottom of the copy in order to differentiate between the copies.</text> </paragraph> <paragraph num="C."> <text>If under this chapter a form or document is required to be accounted for by series number or copies of a form or document are required to be compared for agreement, the accounting department shall report exceptions in writing to the responsible department and sports wagering licensees’ internal audit department not later than 2 days after identification of the exception.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee may prepare more copies of a form or document than required by this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Content of Internal Controls."> <paragraph num="A."> <text>At least 60 days prior to commencing sports wagering and any time a change is made thereafter, a sports wagering licensee shall submit to the Commission for approval internal controls for:</text> <paragraph num="(1)"> <text>Sports wagering at the sports wagering licensee’s facility; or</text> </paragraph> <paragraph num="(2)"> <text>Online sports wagering.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Each procedure or control submission shall, at a minimum, include both narrative and diagrammatic representations of the system to be utilized including the following:</text> <paragraph num="(1)"> <text>Administrative controls and record keeping that document the authorization of transactions;</text> </paragraph> <paragraph num="(2)"> <text>Accounting controls that provide reasonable assurance that:</text> <paragraph num="(a)"> <text>Transactions or financial events which occur in connection with the sports wagering operation are:</text> <paragraph num="(i)"> <text>Executed in accordance with the sports wagering licensee’s authorization protocols;</text> </paragraph> <paragraph num="(ii)"> <text>Recorded to permit preparation of financial statements in conformance with generally accepted accounting principles in the United States and the requirements of this chapter; and</text> </paragraph> <paragraph num="(iii)"> <text>Recorded to permit proper and timely reporting and calculation of proceeds and to maintain accountability for assets;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Access to assets is permitted only in accordance with the sports wagering licensee’s authorization protocols; and</text> </paragraph> <paragraph num="(c)"> <text>The recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with regard to a discrepancy;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>User access controls for all personnel;</text> </paragraph> <paragraph num="(4)"> <text>Procedures and controls for ensuring:</text> <paragraph num="(a)"> <text>That systems accurately and timely communicate all required activities and financial details to the sports wagering platform;</text> </paragraph> <paragraph num="(b)"> <text>That all functions, duties, and responsibilities are segregated and performed in accordance with sound financial practices by qualified personnel; and</text> </paragraph> <paragraph num="(c)"> <text>Through the use of a surveillance and a security department, that the sports wagering licensee is secure at all times during normal operation and during any emergency due to malfunctioning equipment, loss of power, natural disaster, or any other cause;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>An organizational chart depicting appropriate functions and responsibilities of employees involved in sports wagering;</text> </paragraph> <paragraph num="(6)"> <text>A description of the duties and responsibilities of each position shown on the organizational chart;</text> </paragraph> <paragraph num="(7)"> <text>Access controls which address, at a minimum:</text> <paragraph num="(a)"> <text>Content of, and administrative responsibility over, the manual or computerized access control matrix governing employee access to restricted areas;</text> </paragraph> <paragraph num="(b)"> <text>Issuance of a temporary access credential; and</text> </paragraph> <paragraph num="(c)"> <text>Comprehensive key controls;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Procedures and controls over the movement of cash and the count room;</text> </paragraph> <paragraph num="(9)"> <text>Procedures and standards for conducting internal audits;</text> </paragraph> <paragraph num="(10)"> <text>The record retention policy;</text> </paragraph> <paragraph num="(11)"> <text>Procedures to be utilized by the sports wagering licensee to prevent an individual younger than 21 years old, an excluded individual, and bettors outside the State from engaging in sports wagering;</text> </paragraph> <paragraph num="(12)"> <text>Procedures for the registration of a bettor and establishment of a sports wagering account, including a procedure for:</text> <paragraph num="(a)"> <text>Authenticating the age, identity and physical address of an applicant for a sports wagering account; and</text> </paragraph> <paragraph num="(b)"> <text>Determining whether the applicant is a person prohibited from establishing or maintaining an account under applicable laws or regulations;</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>Procedures for terminating a registered bettor’s sports wagering account and the return of any funds remaining in the sports wagering account to the registered bettor;</text> </paragraph> <paragraph num="(14)"> <text>Procedures for suspending or terminating a dormant account and the return of any funds remaining in the dormant account to the registered bettor;</text> </paragraph> <paragraph num="(15)"> <text>Procedures for:</text> <paragraph num="(a)"> <text>The logging in and authentication of a registered bettor to enable the bettor to commence sports wagering; and</text> </paragraph> <paragraph num="(b)"> <text>The logging off of the registered bettor when the registered bettor has completed play;</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>Procedures to automatically log a registered bettor out of the registered bettor’s sports wagering account after a specified period of inactivity;</text> </paragraph> <paragraph num="(17)"> <text>Procedures for the crediting and debiting of a registered bettor’s sports wagering account;</text> </paragraph> <paragraph num="(18)"> <text>Procedures for cashing checks, receiving electronic negotiable instruments and for redeeming cash equivalents;</text> </paragraph> <paragraph num="(19)"> <text>Procedures for withdrawing funds from a sports wagering account by the registered bettor;</text> </paragraph> <paragraph num="(20)"> <text>Procedures for the protection of a registered bettor’s funds, including the segregation of a registered bettor’s funds from operating funds of the sports wagering licensee;</text> </paragraph> <paragraph num="(21)"> <text>Procedures to account for and safeguard money generated from the conduct of sports wagering;</text> </paragraph> <paragraph num="(22)"> <text>Procedures for the security and sharing of personally identifiable information of a registered bettor, value of funds in a sports wagering account, and other information as required by the Commission;</text> </paragraph> <paragraph num="(23)"> <text>Procedures by which a sports wagering licensee will provide notice to a registered bettor related to the sharing of personally identifiable information;</text> </paragraph> <paragraph num="(24)"> <text>Procedures and security for the calculation and recordation of revenue;</text> </paragraph> <paragraph num="(25)"> <text>Procedures for the security of sports wagering equipment;</text> </paragraph> <paragraph num="(26)"> <text>Procedures and security standards as to receipt, handling and storage of sports wagering equipment;</text> </paragraph> <paragraph num="(27)"> <text>Procedures and appropriate measures implemented to deter, detect and prevent cheating;</text> </paragraph> <paragraph num="(28)"> <text>Procedures for identifying and reporting fraudulent, suspicious, or unusual wagering activity;</text> </paragraph> <paragraph num="(29)"> <text>Procedures to govern emergencies, including suspected or actual cyber-attacks, hacking or tampering with the sports wagering licensee’s sports wagering platform, sports wagering website and sports wagering equipment;</text> </paragraph> <paragraph num="(30)"> <text>Procedures for the reconciliation or repayment of a registered bettor’s sports wagering account;</text> </paragraph> <paragraph num="(31)"> <text>Procedures for automated and manual risk management;</text> </paragraph> <paragraph num="(32)"> <text>Procedures for compliance with AML standards;</text> </paragraph> <paragraph num="(33)"> <text>Description of all integrated third-party hardware, software, or systems;</text> </paragraph> <paragraph num="(34)"> <text>Procedures to identify a wager or attempts to wager above any maximum wager threshold set by the sports wagering licensee;</text> </paragraph> <paragraph num="(35)"> <text>Procedures to be utilized by an employee of a sports wagering licensee in the event of a malfunction of sports wagering licensee’s:</text> <paragraph num="(a)"> <text>Sports wagering website;</text> </paragraph> <paragraph num="(b)"> <text>Sports wagering platform; or</text> </paragraph> <paragraph num="(c)"> <text>Sports wagering equipment; and</text> </paragraph> </paragraph> <paragraph num="(36)"> <text>Any other items the Commission may request in writing to be included in the internal controls.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Prior to authorizing a sports wagering licensee to commence the conduct of sports wagering, the Commission shall review and approve the system of internal controls, security protocols, and audit protocols submitted under this chapter to determine whether these controls and protocols conform to the requirements of this chapter and whether they provide adequate and effective controls for the conduct of sports wagering.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall submit to the Commission a catalog of the type of events that it intends to accept wagers on as well as the type of wagers it intends to accept.</text> </paragraph> <paragraph num="E."> <text>A sports wagering licensee shall notify the Commission of any changes to the catalogue at least 72 hours in advance of implementation of these changes.</text> </paragraph> <paragraph num="F."> <text>A sports wagering licensee shall continually maintain a catalog of all prior and current events and the types of wagers it offered on the events.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Review of Internal Controls."> <paragraph num="A."> <text>At least 60 days before sports wagering operations are to commence or another timeframe as approved by the Commission, a sports wagering licensee shall submit its internal controls to the Commission for review and written approval.</text> </paragraph> <paragraph num="B."> <text>The internal controls shall be accompanied by:</text> <paragraph num="(1)"> <text>A certification by the sports wagering licensee’s chief executive officer or chief legal officer that the submitted internal controls conform to the requirements of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this chapter;</text> </paragraph> <paragraph num="(2)"> <text>A certification by the sports wagering licensee’s director of finance that the submitted internal controls:</text> <paragraph num="(a)"> <text>Establish a consistent overall system of internal controls;</text> </paragraph> <paragraph num="(b)"> <text>Provide reasonable assurance that financial reporting conforms to generally accepted accounting principles in the United States; and</text> </paragraph> <paragraph num="(c)"> <text>Conform to the requirements of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this chapter; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An opinion letter by an independent certified public accountant expressing an opinion as to:</text> <paragraph num="(a)"> <text>The effectiveness of the design of the submitted system of internal controls over financial reporting;</text> </paragraph> <paragraph num="(b)"> <text>Whether the submitted system of internal controls conforms to the requirements of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this chapter; and</text> </paragraph> <paragraph num="(c)"> <text>If applicable, whether a deviation from the requirements of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, or this chapter identified by the independent certified public accountant in the course of its review of the submitted system of internal controls is material.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering licensee may not commence operations until its internal controls are approved in writing by the Commission.</text> </paragraph> <paragraph num="D."> <text>If the Commission determines that a submitted internal control is deficient, the Commission shall:</text> <paragraph num="(1)"> <text>Provide the sports wagering licensee with written notice of the deficiency;</text> </paragraph> <paragraph num="(2)"> <text>Require the sports wagering licensee to revise the internal control as appropriate; and</text> </paragraph> <paragraph num="(3)"> <text>Request the sports wagering licensee to resubmit the internal controls to the Commission for review and approval.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee may not implement a change or amendment in its approved internal controls without the prior written approval of the Commission.</text> </paragraph> <paragraph num="F."> <text>A sports wagering licensee’s initial internal controls submission and a change or amendment to its approved internal controls shall be reviewed and approved in accordance with a process and time frame developed and implemented by the Commission.</text> </paragraph> <paragraph num="G."> <text>The process developed by the Commission under §F of this regulation shall, at a minimum, require the sports wagering licensee to:</text> <paragraph num="(1)"> <text>Submit a redlined copy of any section of the approved internal controls to be changed or amended with added text underlined and deleted text lined out;</text> </paragraph> <paragraph num="(2)"> <text>Document on the redlined copy the date the Commission approved the section to be changed or amended and the date the revision was submitted to the Commission for review;</text> </paragraph> <paragraph num="(3)"> <text>Submit a narrative explaining the reason for the change or amendment which includes the sports wagering licensee’s target date for implementation;</text> </paragraph> <paragraph num="(4)"> <text>Submit the written representations required in §B(1) and (2) of this regulation with regard to the proposed change or amendment; and</text> </paragraph> <paragraph num="(5)"> <text>Mark each page of approved internal controls with the date on which it was approved by the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Standard Financial and Statistical Reports."> <paragraph num="A."> <text>The Commission may require a sports wagering licensee to submit daily, weekly, monthly, quarterly, and annual reports of financial and statistical data.</text> </paragraph> <paragraph num="B."> <text>Reports required under this regulation shall be in a form and submitted in accordance with a time frame specified by the Commission.</text> </paragraph> <paragraph num="C."> <text>Unless otherwise specified by the Commission, reports to the Commission shall be signed by the:</text> <paragraph num="(1)"> <text>Chief executive officer if the sports wagering licensee is a corporation;</text> </paragraph> <paragraph num="(2)"> <text>General partner if the sports wagering licensee is a partnership;</text> </paragraph> <paragraph num="(3)"> <text>Manager if the sports wagering licensee is a limited liability company;</text> </paragraph> <paragraph num="(4)"> <text>Chief executive officer or functional equivalent if the sports wagering licensee is any other form of business association; or</text> </paragraph> <paragraph num="(5)"> <text>Owner if the sports wagering licensee is a sole proprietorship.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall submit a report to the Commission on the due date specified by the Commission unless an extension has been approved in writing by the Commission.</text> </paragraph> <paragraph num="E."> <text>The Commission may, on written notice to a sports wagering licensee, require an interim report to be submitted in a form and in accordance with a time frame specified by the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Annual Audit and Other Regulatory Reports."> <paragraph num="A."> <text>A sports wagering licensee shall cause its annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant.</text> </paragraph> <paragraph num="B."> <text>The annual financial statements shall be:</text> <paragraph num="(1)"> <text>Prepared on a comparative basis for the current and prior fiscal year and present financial position and results of operations in conformity with generally accepted accounting principles in the United States; and</text> </paragraph> <paragraph num="(2)"> <text>If the revenue and assets of the Maryland sports wagering licensee operations are less than 75 percent of the combined total of the sports wagering licensee’s parent, Maryland specific audited annual financial statements of the sports wagering licensee revenue and assets.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The audited financial statements shall include a footnote reconciling and explaining any difference between the financial statements included in any report submitted to the Commission under Regulation .06 of this chapter and the audited financial statements.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall with regard to adjustments resulting from the annual audit:</text> <paragraph num="(1)"> <text>Disclose to the Commission all adjustments whether or not recorded in the accounting records; and</text> </paragraph> <paragraph num="(2)"> <text>Record the adjustment in the accounting records of the year to which the adjustment relates.</text> </paragraph> </paragraph> <paragraph num="E."> <text>No later than 90 days after the end of its fiscal year, a sports wagering licensee shall submit to the Commission:</text> <paragraph num="(1)"> <text>A copy of its audited financial statements; and</text> </paragraph> <paragraph num="(2)"> <text>Any management letter or report prepared with regard to the financial statements by its independent certified public accountant.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A sports wagering licensee shall require the independent certified public accountant auditing its financial statements or other qualified entity approved by the Commission to render the following additional reports:</text> <paragraph num="(1)"> <text>A report identifying:</text> <paragraph num="(a)"> <text>Material weaknesses or significant deficiencies in the sports wagering licensee’s Commission-approved internal controls noted in the course of the examination of the financial statements; and</text> </paragraph> <paragraph num="(b)"> <text>Recommendations as to how to eliminate each material weakness or significant deficiency identified; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A report assessing the adequacy and effectiveness of the sports wagering licensee’s information technology security controls and system configurations with recommendations as to how to eliminate each material weakness or significant deficiency identified.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A sports wagering licensee shall prepare a written response to the reports required by §F of this regulation which includes details as to any corrective action taken.</text> </paragraph> <paragraph num="H."> <text>No later than 120 days after the end of its fiscal year, a sports wagering licensee shall submit to the Commission a copy of:</text> <paragraph num="(1)"> <text>The reports required under §F of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>The response required under §G of this regulation; and</text> </paragraph> <paragraph num="(3)"> <text>Any other report on internal controls or other matters relative to its accounting or operating procedures rendered by its independent certified public accountant.</text> </paragraph> </paragraph> <paragraph num="I."> <text>If a sports wagering licensee or any of its affiliates are publicly held, the sports wagering licensee shall submit to the Commission a copy of:</text> <paragraph num="(1)"> <text>Any report required to be filed with the Securities and Exchange Commission including:</text> <paragraph num="(a)"> <text>Form S-1;</text> </paragraph> <paragraph num="(b)"> <text>Form 8-K;</text> </paragraph> <paragraph num="(c)"> <text>Form 10-Q;</text> </paragraph> <paragraph num="(d)"> <text>Form 10-K;</text> </paragraph> <paragraph num="(e)"> <text>Proxy statement;</text> </paragraph> <paragraph num="(f)"> <text>Information statement; and</text> </paragraph> <paragraph num="(g)"> <text>Registration statement; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Any other report required to be filed with a domestic or foreign securities regulatory agency.</text> </paragraph> </paragraph> <paragraph num="J."> <text>A report required to be filed under §I of this regulation shall be submitted to the Commission no later than 10 days after the date of filing with the applicable agency.</text> </paragraph> <paragraph num="K."> <text>A sports wagering licensee shall submit a written report to the Commission if an independent certified public accountant who is engaged as the principal accountant to audit its financial statements:</text> <paragraph num="(1)"> <text>Resigns;</text> </paragraph> <paragraph num="(2)"> <text>Is dismissed as the sports wagering licensee’s principal accountant; or</text> </paragraph> <paragraph num="(3)"> <text>Is replaced by another independent certified public accountant as principal accountant.</text> </paragraph> </paragraph> <paragraph num="L."> <text>A report required to be filed under §K of this regulation shall include:</text> <paragraph num="(1)"> <text>The date of the resignation, dismissal, or new engagement;</text> </paragraph> <paragraph num="(2)"> <text>Whether in connection with the audits of the two most recent years preceding a resignation, dismissal, or new engagement there were any disagreements, resolved or unresolved, with the former accountant on:</text> <paragraph num="(a)"> <text>Accounting principles or practices;</text> </paragraph> <paragraph num="(b)"> <text>Financial statement disclosure; or</text> </paragraph> <paragraph num="(c)"> <text>Auditing scope or procedure;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The nature of any disagreement disclosed in §L(2) of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>Whether the principal accountant’s report on the financial statements for either of the past 2 years contained an adverse opinion or disclaimer of opinion or was qualified;</text> </paragraph> <paragraph num="(5)"> <text>The nature of any adverse opinion, disclaimer of opinion, or qualification; and</text> </paragraph> <paragraph num="(6)"> <text>A letter from the former principal accountant addressed to the Commission stating whether the principal accountant concurs with the statements made by the sports wagering licensee in the report to the Commission submitted under this section.</text> </paragraph> </paragraph> <paragraph num="M."> <text>A report required to be filed under §K of this regulation shall be submitted to the Commission no later than 10 days after the end of the month in which the resignation, dismissal, or new engagement occurred.</text> </paragraph> <paragraph num="N."> <text>No later than 7 days after the date of filing with the Financial Crimes Enforcement Network, a sports wagering licensee shall provide the Commission with access to each Suspicious Activity Report filed under 31 CFR §103.21.</text> </paragraph> <paragraph num="O."> <text>A sports wagering licensee or a director, officer, employee, or agent of a sports wagering licensee who reports suspicious activity under 31 CFR §103.21 may not notify an individual involved in the suspicious activity that the suspicious activity has been reported.</text> </paragraph> <paragraph num="P."> <text>No later than 7 days after the date of filing with the Financial Crimes Enforcement Network, a sports wagering licensee provide with the Commission with access to each Currency Transaction Report filed under 31 CFR §103.22.</text> </paragraph> <paragraph num="Q."> <text>At least 30 days before sports wagering operations are to commence, a sports wagering licensee shall submit to the Commission a copy of its compliance program required under 31 CFR §103.64.</text> </paragraph> <paragraph num="R."> <text>On or before the effective date, a sports wagering licensee shall submit to the Commission any change or amendment to its compliance program required under 31 CFR §103.64.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Record Retention."> <paragraph num="A."> <text>All original books and records shall be:</text> <paragraph num="(1)"> <text>Prepared and maintained in a complete, accurate, and legible form;</text> </paragraph> <paragraph num="(2)"> <text>Stored in a format that ensures readability, regardless of whether the technology or software that created or maintains it has become obsolete;</text> </paragraph> <paragraph num="(3)"> <text>Retained in a secure location equipped with a fire notification system:</text> <paragraph num="(a)"> <text>At the sports wagering licensee’s facility; or</text> </paragraph> <paragraph num="(b)"> <text>An off-site location approved by the Commission under §F of this regulation for the express purpose of document storage;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Kept immediately available for inspection by the Commission during all hours of operation;</text> </paragraph> <paragraph num="(5)"> <text>Organized and indexed in a manner designed to provide immediate accessibility to the Commission; and</text> </paragraph> <paragraph num="(6)"> <text>Destroyed only after expiration of the minimum retention period required under this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission may, on submission of a written request or alternate record retention schedule by a sports wagering licensee, authorize destruction prior to the expiration of the minimum retention period required under this regulation.</text> </paragraph> <paragraph num="C."> <text>Unless a request for destruction or alternate record retention schedule is submitted in writing and approved in writing by the Commission, a sports wagering licensee shall retain indefinitely original books and records documenting:</text> <paragraph num="(1)"> <text>Ownership of the sports wagering licensee’s facility if applicable;</text> </paragraph> <paragraph num="(2)"> <text>Internally initiated investigations and due diligence;</text> </paragraph> <paragraph num="(3)"> <text>Personnel matters;</text> </paragraph> <paragraph num="(4)"> <text>Signature cards of current employees; and</text> </paragraph> <paragraph num="(5)"> <text>Destruction of documents, including:</text> <paragraph num="(a)"> <text>The identity of the document;</text> </paragraph> <paragraph num="(b)"> <text>Period of retention; and</text> </paragraph> <paragraph num="(c)"> <text>Date of destruction.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Unless a request for destruction or alternate record retention schedule is submitted in writing and approved in writing by the Commission, a sports wagering licensee shall retain for a minimum of 5 years all original books and records not:</text> <paragraph num="(1)"> <text>Identified for indefinite retention under §C of this regulation; or</text> </paragraph> <paragraph num="(2)"> <text>Subject to an exception under §E of this regulation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Exceptions. The following exceptions apply to the retention period in §D of this regulation:</text> <paragraph num="(1)"> <text>A minimum retention period of 5 years shall apply to documentation pertaining to cashiers’ cage transactions;</text> </paragraph> <paragraph num="(2)"> <text>A minimum retention period of 5 years shall apply to:</text> <paragraph num="(a)"> <text>Signature cards of terminated employees;</text> </paragraph> <paragraph num="(b)"> <text>Insurance records relating to claims by bettors;</text> </paragraph> <paragraph num="(c)"> <text>Surveillance and security department:</text> <paragraph num="(i)"> <text>Employee duty logs;</text> </paragraph> <paragraph num="(ii)"> <text>Visitor logs;</text> </paragraph> <paragraph num="(iii)"> <text>Incident logs;</text> </paragraph> <paragraph num="(iv)"> <text>Recording logs; and</text> </paragraph> <paragraph num="(v)"> <text>Equipment malfunction reports; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Documentation pertaining to sports wagering tickets or promotional play instruments reported to the Commission as possibly counterfeit, altered, or tampered with;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A minimum retention period of 30 days shall apply to:</text> <paragraph num="(a)"> <text>Cancelled promotional play instruments for which all reconciliations required by the sports wagering licensee’s approved internal controls have been conducted and resolved;</text> </paragraph> <paragraph num="(b)"> <text>Voided sports wagering tickets; and</text> </paragraph> <paragraph num="(c)"> <text>Sports wagering tickets and vouchers redeemed at a facility other than through a ticket redemption unit or kiosk.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>On submission of a written request by the sports wagering licensee, the Commission may approve a location outside the facility to store original books and records.</text> </paragraph> <paragraph num="G."> <text>A sports wagering licensee requesting to store original books and records outside the facility shall submit to the Commission:</text> <paragraph num="(1)"> <text>A description of the proposed location, including details with regard to security and fire notification systems;</text> </paragraph> <paragraph num="(2)"> <text>Details with regard to the ownership of the proposed location; and</text> </paragraph> <paragraph num="(3)"> <text>Procedures for Commission access to original books and records retained at the proposed location.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A sports wagering licensee may not store books and records outside the facility without the prior written approval of the Commission.</text> </paragraph> <paragraph num="I."> <text>On submission of a written request by a sports wagering licensee, the Commission may approve a suitable media system for the copying and storage of original books and records.</text> </paragraph> <paragraph num="J."> <text>A sports wagering licensee submitting a system for the copying and storage of original books and records shall demonstrate to the satisfaction of the Commission that the:</text> <paragraph num="(1)"> <text>Processing, preservation, and maintenance methods to be utilized will make books and records readily available for review and reproduction;</text> </paragraph> <paragraph num="(2)"> <text>Inspection and quality control methods to be utilized will ensure that when books and records are viewed or reproduced they will exhibit a high degree of legibility and readability;</text> </paragraph> <paragraph num="(3)"> <text>Equipment necessary to readily locate, read, and reproduce books and records is available to the Commission at the location or approved off-site location; and</text> </paragraph> <paragraph num="(4)"> <text>Detailed index of all stored data maintained and arranged to facilitate the immediate location of particular books and records is available to the Commission at the location or approved off-site location.</text> </paragraph> </paragraph> <paragraph num="K."> <text>A sports wagering licensee may not utilize a media system for the copying and storage of original books and records without the prior written approval of the Commission.</text> </paragraph> <paragraph num="L."> <text>A sports wagering licensee may utilize the services of a contractor for the destruction of books and records permitted to be destroyed under this regulation.</text> </paragraph> <paragraph num="M."> <text>Nothing in this regulation shall be construed as relieving a sports wagering licensee of any obligation to prepare or maintain books and records required by any other federal, State, or local governmental entity.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Complimentary Services."> <paragraph num="A."> <text>Requirements.</text> <paragraph num="(1)"> <text>A sports wagering licensee shall be under the authority of the County Alcoholic Beverages Licensing Authority for the county in which the facility is located with regard to the sale to individuals of food and alcoholic beverages.</text> </paragraph> <paragraph num="(2)"> <text>Except as provided in this section, a sports wagering licensee may not provide food or alcoholic beverages to individuals at no cost.</text> </paragraph> <paragraph num="(3)"> <text>Food or alcoholic beverages offered by a sports wagering licensee for sale to individuals may be offered only at prices that are determined by the County Alcoholic Beverages Licensing Authority to be commensurate with the price of similar types of food and alcoholic beverages at restaurants in the county in which the facility is located.</text> </paragraph> <paragraph num="(4)"> <text>A sports wagering licensee may provide food at no cost to individuals to the same extent allowed under Alcoholic Beverages Article §5-303, Annotated Code of Maryland, for a person engaged in the sale or barter of spirituous, malt, or intoxicating liquors and licensed in Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall develop, maintain, and implement adequate written internal controls over the authorization and provision of complimentary services.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall at all times make available to the Commission the internal controls required under §B of this regulation but is not required to include them in the system of internal controls submitted to the Commission for approval under Regulation .05 of this chapter.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall collect and retain data pertaining to the cost of, and number of individuals provided with, each category of complimentary services.</text> </paragraph> <paragraph num="E."> <text>Report.</text> <paragraph num="(1)"> <text>A sports wagering licensee shall submit to the Commission a quarterly report summarizing complimentary services provided during the reporting period.</text> </paragraph> <paragraph num="(2)"> <text>The report shall include calendar year-to-date totals of complimentary services provided.</text> </paragraph> <paragraph num="(3)"> <text>The report shall be submitted:</text> <paragraph num="(a)"> <text>On or before the 15th day of the month following the end of each quarter; or</text> </paragraph> <paragraph num="(b)"> <text>At the request of the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>The report required under §E of this regulation shall:</text> <paragraph num="(1)"> <text>Separate complimentary services into the following categories:</text> <paragraph num="(a)"> <text>Rooms;</text> </paragraph> <paragraph num="(b)"> <text>Food and Beverage;</text> </paragraph> <paragraph num="(c)"> <text>Travel;</text> </paragraph> <paragraph num="(d)"> <text>Gifts:</text> <paragraph num="(i)"> <text>Cash; and</text> </paragraph> <paragraph num="(ii)"> <text>Noncash; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Other; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Determine the cost of complimentary services provided to a bettor as follows:</text> <paragraph num="(a)"> <text>Complimentary services offered by a sports wagering licensee in the normal course of business shall be reported at an amount based upon the full retail price normally charged for the service by the sports wagering licensee;</text> </paragraph> <paragraph num="(b)"> <text>Complimentary services not offered for sale by the sports wagering licensee in the normal course of business but provided directly by the sports wagering licensee to the bettor shall be reported at an amount based upon the actual cost to the sports wagering licensee of providing the service;</text> </paragraph> <paragraph num="(c)"> <text>Complimentary services provided directly or indirectly on behalf of a sports wagering licensee by a third party not related to the sports wagering licensee shall be reported at an amount based upon the actual cost to the sports wagering licensee of having the third party provide the service; and</text> </paragraph> <paragraph num="(d)"> <text>Complimentary services provided directly or indirectly on behalf of a sports wagering licensee by a third party related to the sports wagering licensee shall be reported at an amount based upon the actual cost to the third party of providing the service.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>A sports wagering licensee shall submit to the Commission a report identifying a bettor who, together with guests, received $5,000 or more in complimentary services within a period of 5 consecutive days.</text> </paragraph> <paragraph num="H."> <text>The report required by §G of this regulation shall:</text> <paragraph num="(1)"> <text>State the reason complimentary services were provided;</text> </paragraph> <paragraph num="(2)"> <text>Include the bettor’s rating in the sports wagering licensee’s bettor rating system at the time the complimentary services were provided;</text> </paragraph> <paragraph num="(3)"> <text>Disclose the total amount, including year-to-date totals, provided in complimentary services separated into the following categories:</text> <paragraph num="(a)"> <text>Rooms;</text> </paragraph> <paragraph num="(b)"> <text>Food and beverage;</text> </paragraph> <paragraph num="(c)"> <text>Travel;</text> </paragraph> <paragraph num="(d)"> <text>Gifts:</text> <paragraph num="(i)"> <text>Cash; and</text> </paragraph> <paragraph num="(ii)"> <text>Noncash; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Other; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Be submitted:</text> <paragraph num="(a)"> <text>At least quarterly, by the 15th day of the month following the end of each quarter; or</text> </paragraph> <paragraph num="(b)"> <text>At the request of the Commission.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Table of Organization."> <paragraph num="A."> <text>For the purposes of this regulation, the title used to describe a department head is intended to indicate responsibility for the functions of the enumerated department and does not obligate the sports wagering licensee to the use of that particular title.</text> </paragraph> <paragraph num="B."> <text>Subject to the requirements of this regulation, a sports wagering licensee shall tailor its table of organization to meet its needs and policies.</text> </paragraph> <paragraph num="C."> <text>At least 30 days before sports wagering operations are to commence, a sports wagering licensee shall submit to the Commission for review and written approval a table of organization depicting all direct and indirect reporting lines for:</text> <paragraph num="(1)"> <text>The chief executive officer required under §E(5) of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Mandatory departments required under §E(6) of this regulation; and</text> </paragraph> <paragraph num="(3)"> <text>If applicable, the cashiers’ cage manager required under §M of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee may not commence operations until the table of organization submitted under §C of this regulation is approved in writing by the Commission.</text> </paragraph> <paragraph num="E."> <text>The holder of a Class A sports wagering facility license’s table of organization shall include:</text> <paragraph num="(1)"> <text>A system of personnel and chain of command which permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility;</text> </paragraph> <paragraph num="(2)"> <text>The segregation of incompatible functions, duties, and responsibilities so that no individual is in a position to both:</text> <paragraph num="(a)"> <text>Commit an error or to perpetrate a fraud; and</text> </paragraph> <paragraph num="(b)"> <text>Conceal the error or fraud in the normal course of the individual’s duties;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>All functions, duties, and responsibilities of qualified personnel;</text> </paragraph> <paragraph num="(4)"> <text>Areas of responsibility which are not so extensive as to be impractical for one individual to monitor;</text> </paragraph> <paragraph num="(5)"> <text>A chief executive officer:</text> <paragraph num="(a)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(b)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(c)"> <text>Ultimately responsible for the daily conduct of all sports wagering business; and</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The following mandatory departments and supervisors:</text> <paragraph num="(a)"> <text>A surveillance department supervised by a director of surveillance:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(ii)"> <text>Subject to the reporting requirements of §I of this regulation;</text> </paragraph> <paragraph num="(iii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iv)"> <text>Responsible for the surveillance of all aspects of sports wagering operations;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>An internal audit department supervised by a director of internal audit:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility if applicable;</text> </paragraph> <paragraph num="(ii)"> <text>Subject to the reporting requirements of §G of this regulation;</text> </paragraph> <paragraph num="(iii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iv)"> <text>Responsible for assessing compliance with approved internal controls, applicable laws and regulations, the reliability of financial reporting, deterring and investigating fraud, and the safeguarding of assets;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>An information technology department supervised by a director of information technology:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility if applicable;</text> </paragraph> <paragraph num="(ii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iii)"> <text>Responsible for the quality, reliability, accuracy, and security of all sports wagering platforms and associated equipment and software utilized by the sports wagering licensee;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>A security department supervised by a director of security:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(ii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iii)"> <text>Responsible for the overall security of the facility;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>An accounting department supervised by a director of finance:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility;</text> </paragraph> <paragraph num="(ii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iii)"> <text>Responsible for all accounting and finance functions including the control and supervision of the cashiers’ cage, satellite cages, and count room; and</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>A sports wagering department supervised by a director of sports wagering operations:</text> <paragraph num="(i)"> <text>Based for employment purposes at the facility if applicable;</text> </paragraph> <paragraph num="(ii)"> <text>Licensed as a principal employee; and</text> </paragraph> <paragraph num="(iii)"> <text>Responsible for the operation and conduct of sports wagering.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>The Commission may require the holder of a Class B-1 sports wagering facility license to comply with any or all of the requirements set forth in §E of this regulation.</text> </paragraph> <paragraph num="G."> <text>The director of surveillance and the director of internal audit required under §E(6) of this regulation shall be independent of the chief executive officer regarding matters of policy, purpose, responsibility, and authority and shall report directly to:</text> <paragraph num="(1)"> <text>An individual based for employment purposes at the facility, if applicable, with no incompatible functions; or</text> </paragraph> <paragraph num="(2)"> <text>An audit committee of:</text> <paragraph num="(a)"> <text>The sports wagering licensee; or</text> </paragraph> <paragraph num="(b)"> <text>A Commission-authorized licensed affiliate of the sports wagering licensee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>The individual or audit committee to whom the director of surveillance and the director of internal audit report under §G of this regulation shall also control the hiring, termination, and salary of the director.</text> </paragraph> <paragraph num="I."> <text>The director of surveillance and the director of internal audit may report to the chief executive officer with regard to daily operations.</text> </paragraph> <paragraph num="J."> <text>Mandatory departments and the supervisors over them shall cooperate with, yet perform independently of, all other mandatory departments and supervisory positions.</text> </paragraph> <paragraph num="K."> <text>A sports wagering licensee may designate more than one individual to serve jointly as the director of a mandatory department required by §E of this regulation.</text> </paragraph> <paragraph num="L."> <text>A joint director of a mandatory department under §K of this regulation shall be:</text> <paragraph num="(1)"> <text>Based for employment purposes at the facility if applicable; and</text> </paragraph> <paragraph num="(2)"> <text>Individually and jointly accountable and responsible for the operation of the department.</text> </paragraph> </paragraph> <paragraph num="M."> <text>A department that is not mandatory may operate under, or in conjunction with, a mandatory department where the table of organization is consistent with the requirements of §E of this regulation.</text> </paragraph> <paragraph num="N."> <text>A sports wagering licensee’s cashiers’ cage manager shall be licensed as a principal employee for:</text> <paragraph num="(1)"> <text>The holder of a Class A sports wagering facility license; and</text> </paragraph> <paragraph num="(2)"> <text>The holder of a Class B-1 sports wagering facility license if required by the Commission.</text> </paragraph> </paragraph> <paragraph num="O."> <text>On any shift for which the cashiers’ cage manager is not present in the facility, the cashiers’ cage shift manager responsible for the cashiers’ cage shall be licensed as a principal employee unless another principal employee required by this regulation is present at the facility for:</text> <paragraph num="(1)"> <text>The holder of a Class A sports wagering facility license; and</text> </paragraph> <paragraph num="(2)"> <text>The holder of a Class B-1 sports wagering facility license if required by the Commission.</text> </paragraph> </paragraph> <paragraph num="P."> <text>A sports wagering licensee may not implement a change in the table of organization approved by the Commission under §E or F of this regulation without the prior written approval of the Commission.</text> </paragraph> <paragraph num="Q."> <text>A sports wagering licensee shall ensure that an employee is trained in the policies, procedures, and internal controls relevant to the individual’s function.</text> </paragraph> <paragraph num="R."> <text>Vacancy. If there is a vacancy in the chief executive officer position or any mandatory department director position required by §E or F of this regulation, the following shall apply:</text> <paragraph num="(1)"> <text>No later than 5 days after the date of a vacancy, a sports wagering licensee shall notify the Commission in writing of:</text> <paragraph num="(a)"> <text>The vacant position;</text> </paragraph> <paragraph num="(b)"> <text>The date on which the position will become or became vacant; and</text> </paragraph> <paragraph num="(c)"> <text>The date on which the sports wagering licensee anticipates that the vacancy will be filled on a permanent basis;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>No later than 30 days after the date of a vacancy, a sports wagering licensee shall fill the vacant position on a temporary basis;</text> </paragraph> <paragraph num="(3)"> <text>No later than 120 days after the original date of the vacancy, a sports wagering licensee shall fill the vacant position on a permanent basis; and</text> </paragraph> <paragraph num="(4)"> <text>No later than 5 days after filling a vacancy, a sports wagering licensee shall notify the Commission in writing of:</text> <paragraph num="(a)"> <text>The vacant position filled;</text> </paragraph> <paragraph num="(b)"> <text>The name of the individual designated to fill the position;</text> </paragraph> <paragraph num="(c)"> <text>The date that the vacancy was filled; and</text> </paragraph> <paragraph num="(d)"> <text>Whether the vacancy has been filled on a temporary or permanent basis.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Surveillance System Design Standards for Class A and Class B-1 Sports Wagering Facility Licensees."> <paragraph num="A."> <text>Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>The Commission may require the holder of a Class B-1 sports wagering facility license to comply with any or all of the requirements of this regulation.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall install in its facility a surveillance system that complies with the requirements of this regulation.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee’s surveillance system shall be reviewed and approved by the Commission under Regulation .11 of this chapter.</text> </paragraph> <paragraph num="E."> <text>A sports wagering licensee’s surveillance system shall include:</text> <paragraph num="(1)"> <text>Light sensitive cameras enabled by:</text> <paragraph num="(a)"> <text>Lenses of sufficient magnification to monitor activity at each betting window, kiosk and other sports wagering related areas and activities in a facility;</text> </paragraph> <paragraph num="(b)"> <text>Lighting which is continuous and of sufficient quality to produce clear video recordings and still pictures; and</text> </paragraph> <paragraph num="(c)"> <text>360-degree pan, tilt, and zoom capability, without camera stops, configured to clandestinely monitor and record:</text> <paragraph num="(i)"> <text>Transactions conducted at each betting window, kiosk and other sports wagering related areas and activities in a facility;</text> </paragraph> <paragraph num="(ii)"> <text>Transactions conducted in the cashiers’ cage and any satellite cage including the face of each individual transacting business with a cashier;</text> </paragraph> <paragraph num="(iii)"> <text>Transactions conducted at ticket redemption units and automated teller machines;</text> </paragraph> <paragraph num="(iv)"> <text>Activity in the count room;</text> </paragraph> <paragraph num="(v)"> <text>Movement of cash and cash storage boxes within the facility;</text> </paragraph> <paragraph num="(vi)"> <text>Entrances and exits to the facility;</text> </paragraph> <paragraph num="(vii)"> <text>Activities in all other restricted areas; and</text> </paragraph> <paragraph num="(viii)"> <text>Other areas and events designated by the Commission;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A monitor room located in the facility:</text> <paragraph num="(a)"> <text>Staffed by employees of the sports wagering licensee’s surveillance department 24 hours per day; and</text> </paragraph> <paragraph num="(b)"> <text>Equipped with:</text> <paragraph num="(i)"> <text>A communication system capable of monitoring all security department communications;</text> </paragraph> <paragraph num="(ii)"> <text>Connections, direct or through a documented communication protocol with the security department, to all facility alarm systems;</text> </paragraph> <paragraph num="(iii)"> <text>A surveillance failure notification system that provides an audible, as well as a visual notification, of any failure in the surveillance system or the digital video recording media storage system;</text> </paragraph> <paragraph num="(iv)"> <text>An emergency power system, tested by the sports wagering licensee in the presence of the Commission at least once a year, which can be used to operate the surveillance system in the event of a power failure;</text> </paragraph> <paragraph num="(v)"> <text>Computer terminals permitting event notification to, and read only access by authorized surveillance department employees to, the Class A licensee’s sports wagering platform;</text> </paragraph> <paragraph num="(vi)"> <text>An updated photo library, consisting of photographs that are no more than 5 years old, of all current employees of the facility;</text> </paragraph> <paragraph num="(vii)"> <text>A copy of the Class A sport wagering facility licensee’s floor plan required under COMAR 36.03.10.17.04B;</text> </paragraph> <paragraph num="(viii)"> <text>A copy of the procedures addressing the evacuation of the facility in the event of fire or other emergency required under Regulation .13 of this chapter; and</text> </paragraph> <paragraph num="(ix)"> <text>Copies of the surveillance system contingency plans required under Regulation .11 of this chapter;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Digital video recording capability equipped to:</text> <paragraph num="(a)"> <text>Superimpose the date and time on all monitoring and recording;</text> </paragraph> <paragraph num="(b)"> <text>Identify and locate, through the use of a meter, counter, or other device or method, a particular event which was recorded;</text> </paragraph> <paragraph num="(c)"> <text>Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images; and</text> </paragraph> <paragraph num="(d)"> <text>Be authenticated through use of an embedded video verification encryption code or watermark;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Audio recording capability in the count room that is:</text> <paragraph num="(a)"> <text>Installed and disclosed to employees of the facility; and</text> </paragraph> <paragraph num="(b)"> <text>Consistent with the Courts and Judicial Proceedings Article, §§10-401—10-414, Annotated Code of Maryland; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>An access system which:</text> <paragraph num="(a)"> <text>Controls:</text> <paragraph num="(i)"> <text>Physical and logical access to the surveillance system; and</text> </paragraph> <paragraph num="(ii)"> <text>Physical access to the surveillance monitor room; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Restricts access to the security administration capabilities of the system.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>A sports wagering licensee shall configure its surveillance system to record all areas and transactions enumerated in §E(1) of this regulation with a resolution of 4 common image format at a minimum of:</text> <paragraph num="(1)"> <text>For a standard definition camera, 30 frames per second; or</text> </paragraph> <paragraph num="(2)"> <text>For a high-definition camera, 15 frames per second.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A sports wagering licensee may configure its surveillance system to record activity in areas of the facility not covered by §E of this regulation at a reduced frame rate with a resolution of 4 common image format, as follows:</text> <paragraph num="(1)"> <text>Public areas shall be recorded at a minimum frame rate of 15 frames per second; and</text> </paragraph> <paragraph num="(2)"> <text>Areas not accessible to the public shall be recorded at a minimum frame rate of 7.5 frames per second.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Except as provided in §I of this regulation, a sports wagering licensee shall retain surveillance recordings:</text> <paragraph num="(1)"> <text>For a minimum of 7 days for transactions or events in the areas covered under §E of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>For a minimum of 14 days for transactions or events in the areas covered under §F of this regulation.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Upon the request of the Commission or a law enforcement agency that has proper jurisdiction over the facility, a recording shall be retained and stored in accordance with the directives of the Commission or law enforcement agency pertaining to that recording.</text> </paragraph> <paragraph num="J."> <text>Except as provided in this regulation, a surveillance system shall be under the exclusive control of a sports wagering licensee’s surveillance department.</text> </paragraph> <paragraph num="K."> <text>A sports wagering licensee shall provide the Commission with timely and unfettered access to its surveillance monitor room, surveillance system, and all transmissions.</text> </paragraph> <paragraph num="L."> <text>A sports wagering licensee shall timely comply with a request from the Commission to:</text> <paragraph num="(1)"> <text>Use, as necessary, any monitor room in the facility;</text> </paragraph> <paragraph num="(2)"> <text>Display on the monitors in its monitor room or in the Commission’s on-site monitor room any event capable of being captured by the surveillance system;</text> </paragraph> <paragraph num="(3)"> <text>Relinquish control of a camera or monitor;</text> </paragraph> <paragraph num="(4)"> <text>Discontinue monitoring a particular camera or recording activity captured by it;</text> </paragraph> <paragraph num="(5)"> <text>Make a video recording or photograph of any event capable of being captured by the surveillance system; and</text> </paragraph> <paragraph num="(6)"> <text>Restrict or deny access to a recording or photograph.</text> </paragraph> </paragraph> <paragraph num="M."> <text>A surveillance system may not be remotely accessed from a facility outside the surveillance monitor room without the prior written approval of the Commission.</text> </paragraph> <paragraph num="N."> <text>An entrance to a surveillance monitor room may not be visible from the facility floor.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Surveillance Department Operating Procedures for Class A and Class B-1 Sports Wagering Facility Licensees."> <paragraph num="A."> <text>Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>The Commission may require the holder of a Class B-1 sports wagering license to comply with any or all of the requirements of this regulation.</text> </paragraph> <paragraph num="C."> <text>At least 60 days before sports wagering operations are to commence, a sports wagering licensee shall submit to the Commission for review and written approval:</text> <paragraph num="(1)"> <text>A surveillance system meeting the requirements of Regulation .10 of this chapter including, at a minimum, details pertaining to:</text> <paragraph num="(a)"> <text>Camera configuration inside and outside the facility;</text> </paragraph> <paragraph num="(b)"> <text>Monitor room configuration;</text> </paragraph> <paragraph num="(c)"> <text>Video recording format and configuration specifications;</text> </paragraph> <paragraph num="(d)"> <text>Authentication of digital recordings, including Commission access to the system’s video verification encryption code or watermark;</text> </paragraph> <paragraph num="(e)"> <text>Audio recording format; and</text> </paragraph> <paragraph num="(f)"> <text>System access controls; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Surveillance department operating procedures conforming to this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee may not commence operations until its surveillance system and surveillance department operating procedures are approved in writing by the Commission.</text> </paragraph> <paragraph num="E."> <text>A sports wagering licensee’s surveillance department operating procedures shall, at a minimum, require:</text> <paragraph num="(1)"> <text>Coverage of all areas and transactions enumerated in Regulation .10 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Contingency plans addressing:</text> <paragraph num="(a)"> <text>Full and partial failure of the surveillance system including:</text> <paragraph num="(i)"> <text>A contact list with telephone numbers for individuals required to be notified in the event of a failure; and</text> </paragraph> <paragraph num="(ii)"> <text>Facility closure protocols; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Planned shutdown of the surveillance system;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A surveillance incident log to:</text> <paragraph num="(a)"> <text>Be maintained by monitor room employees in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed; or</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Document the scheduled coverage in §D(1) of this regulation and all other non-routine surveillance activity as follows:</text> <paragraph num="(i)"> <text>Date and time surveillance is commenced;</text> </paragraph> <paragraph num="(ii)"> <text>Name and Commission license number of the individual initiating, performing, or supervising the surveillance;</text> </paragraph> <paragraph num="(iii)"> <text>Reason for the surveillance;</text> </paragraph> <paragraph num="(iv)"> <text>Whether the suspicious activity involves an alleged regulatory violation or criminal activity;</text> </paragraph> <paragraph num="(v)"> <text>Name, if known, alias, or description of an individual being monitored;</text> </paragraph> <paragraph num="(vi)"> <text>Description of the activity in which the individual being monitored is engaged;</text> </paragraph> <paragraph num="(vii)"> <text>Reading on a meter, counter, or device that identifies the point on the video recording at which the event occurred;</text> </paragraph> <paragraph num="(viii)"> <text>Time at which a video recording is commenced and terminated, if different than when surveillance is commenced or terminated;</text> </paragraph> <paragraph num="(ix)"> <text>Date and time surveillance is terminated;</text> </paragraph> <paragraph num="(x)"> <text>Summary of the results of the surveillance; and</text> </paragraph> <paragraph num="(xi)"> <text>Description of the time, date, and cause of any equipment or camera malfunction which occurred during the conduct of surveillance;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>A surveillance room entry log to:</text> <paragraph num="(a)"> <text>Be Signed by an individual entering the surveillance monitor room who is not a surveillance department employee assigned to the monitor room’s work shift at the time of entry;</text> </paragraph> <paragraph num="(b)"> <text>Be maintained by monitor room employees in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed; or</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Document the following:</text> <paragraph num="(i)"> <text>Date and time of entering the monitor room;</text> </paragraph> <paragraph num="(ii)"> <text>The entering individual’s name and department or affiliation;</text> </paragraph> <paragraph num="(iii)"> <text>The reason for entering the monitor room;</text> </paragraph> <paragraph num="(iv)"> <text>The name of the individual authorizing the individual’s entry into the monitor room; and</text> </paragraph> <paragraph num="(v)"> <text>The date and time of exiting the monitor room;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>That surveillance monitor room employees notify:</text> <paragraph num="(a)"> <text>Security department supervisory personnel within 5 minutes of an incident of equipment failure affecting coverage of the facility; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission within 30 minutes of an incident of equipment failure affecting coverage of the facility citing:</text> <paragraph num="(i)"> <text>Date and time;</text> </paragraph> <paragraph num="(ii)"> <text>Cause of the malfunction; and</text> </paragraph> <paragraph num="(iii)"> <text>Time a sports wagering licensee’s security department was notified of the malfunction;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>That a sports wagering licensee confirm in writing a notice given verbally to the Commission under §D(5) of this regulation; and</text> </paragraph> <paragraph num="(7)"> <text>That, on a daily basis, a sports wagering licensee synchronize the date and time on the surveillance system to the date and time on a public time server.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A sports wagering licensee may not implement a change or amendment in its surveillance system or surveillance department operating procedures approved by the Commission under §C of this regulation without the prior written approval of the Commission.</text> </paragraph> <paragraph num="G."> <text>Surveillance department employees shall be reasonably segregated and independent of all other departments at the facility.</text> </paragraph> <paragraph num="H."> <text>A surveillance department employee may not transfer to any other department in the facility without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Surveillance Department Minimum Staffing for Class A and Class B-1 Sports Wagering Facility Licensees."> <paragraph num="A."> <text>Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>The Commission may require the holder of a Class B-1 sports wagering facility license to comply with any or all of the requirements of this regulation.</text> </paragraph> <paragraph num="C."> <text>At least 60 days before sports wagering operations are to commence, a sports wagering licensee shall submit its surveillance department minimum staffing plan to the Commission for review and written approval.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee may not commence operations until its surveillance department minimum staffing plan is approved in writing by the Commission.</text> </paragraph> <paragraph num="E."> <text>A surveillance department minimum staffing plan shall assess, on a per-shift basis, the minimum number of on duty surveillance department employees necessary to:</text> <paragraph num="(1)"> <text>Provide adequate and effective surveillance of all activities in and outside the facility;</text> </paragraph> <paragraph num="(2)"> <text>Ensure the physical safety of employees of and invitees to the facility;</text> </paragraph> <paragraph num="(3)"> <text>Comply with all applicable laws and regulations including Commission-approved internal controls and operating procedures;</text> </paragraph> <paragraph num="(4)"> <text>Monitor the facility to ensure that the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility:</text> <paragraph num="(a)"> <text>An intoxicated individual; or</text> </paragraph> <paragraph num="(b)"> <text>An excluded individual; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Monitor the facility floor to ensure that an individual younger than 21 years old is identified, prohibited from accessing the facility floor in accordance with State Government Article, §9-1E-11(a)(1), Annotated Code of Maryland, and, if necessary, immediately removed from the facility floor.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A sports wagering licensee’s proposed surveillance department minimum staffing plan shall consider:</text> <paragraph num="(1)"> <text>Square footage and layout of the facility;</text> </paragraph> <paragraph num="(2)"> <text>Use of fixed and roving security posts;</text> </paragraph> <paragraph num="(3)"> <text>Activity level on a per-shift basis and identify it as slow, normal, or peak;</text> </paragraph> <paragraph num="(4)"> <text>Department supervisory needs; and</text> </paragraph> <paragraph num="(5)"> <text>A limit of one employee per monitor station.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A sports wagering licensee may not implement a change or amendment in the surveillance department minimum staffing plan approved by the Commission under §C of this regulation without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Surveillance System Design Standards for Class B Sports Wagering Facility Licensees."> <paragraph num="A."> <text>This regulation is only applicable to the holder of a Class B sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall install in its facility a surveillance system that complies with the requirements of this regulation.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee’s surveillance system shall be reviewed and approved by the Commission under Regulation .14 of this chapter.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee’s surveillance system shall include:</text> <paragraph num="(1)"> <text>Light sensitive cameras that are:</text> <paragraph num="(a)"> <text>Enabled by lenses of sufficient magnification to monitor activity at each betting window, kiosk and other sports wagering related areas and activities in the facility;</text> </paragraph> <paragraph num="(b)"> <text>Enabled by lighting which is continuous and of sufficient quality to produce clear video recordings and still pictures; and</text> </paragraph> <paragraph num="(c)"> <text>Configured to clandestinely monitor and record:</text> <paragraph num="(i)"> <text>Transactions conducted at each betting window, kiosk and other sports wagering related areas and activities in the facility;</text> </paragraph> <paragraph num="(ii)"> <text>Transactions conducted at cashier locations including the face of each individual transacting business with a cashier;</text> </paragraph> <paragraph num="(iii)"> <text>Transactions conducted at automated teller machines;</text> </paragraph> <paragraph num="(iv)"> <text>Activity in the count room;</text> </paragraph> <paragraph num="(v)"> <text>Movement of cash and cash storage boxes within the facility;</text> </paragraph> <paragraph num="(vi)"> <text>Entrances and exits to the facility;</text> </paragraph> <paragraph num="(vii)"> <text>Activities in all other restricted areas; and</text> </paragraph> <paragraph num="(viii)"> <text>Other areas and events designated by the Commission; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Digital video recording capability equipped to:</text> <paragraph num="(a)"> <text>Superimpose the date and time on all monitoring and recording;</text> </paragraph> <paragraph num="(b)"> <text>Identify and locate, through the use of a meter, counter or other device or method, a particular event which was recorded; and</text> </paragraph> <paragraph num="(c)"> <text>Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Except as provided in §F of this regulation, a sports wagering licensee shall retain surveillance recordings for a minimum of 7 days.</text> </paragraph> <paragraph num="F."> <text>Upon the request of the Commission or a law enforcement agency that has proper jurisdiction over the facility, a recording shall be retained and stored in accordance with the directives of the Commission or law enforcement agency pertaining to that recording.</text> </paragraph> <paragraph num="G."> <text>A sports wagering licensee shall provide the Commission with timely and unfettered access to its surveillance monitor room, surveillance system and all transmissions.</text> </paragraph> <paragraph num="H."> <text>A sports wagering licensee shall comply in a timely fashion with a request from the Commission to:</text> <paragraph num="(1)"> <text>Use, as necessary, any monitor room in the facility;</text> </paragraph> <paragraph num="(2)"> <text>Display on the monitors in its monitor room any event capable of being captured by the surveillance system;</text> </paragraph> <paragraph num="(3)"> <text>Relinquish control of a camera or monitor;</text> </paragraph> <paragraph num="(4)"> <text>Discontinue monitoring a particular camera or recording activity captured by it;</text> </paragraph> <paragraph num="(5)"> <text>Make a video recording or photograph of any event capable of being captured by the surveillance system; and</text> </paragraph> <paragraph num="(6)"> <text>Restrict or deny access to a recording or photograph.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A surveillance system may not be remotely accessed from a location outside the surveillance monitor room without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Surveillance Department Operating Procedures for Class B Sports Wagering Facility Licensees."> <paragraph num="A."> <text>This regulation is only applicable to the holder of a Class B sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>At least 60 days before sports wagering operations are to commence, a sports wagering licensee shall submit to the Commission for review and written approval:</text> <paragraph num="(1)"> <text>A surveillance system meeting the requirements of Regulation .13 of this chapter including, at a minimum, details pertaining to:</text> <paragraph num="(a)"> <text>Camera configuration inside and outside the facility;</text> </paragraph> <paragraph num="(b)"> <text>Monitor room configuration;</text> </paragraph> <paragraph num="(c)"> <text>Video recording format and configuration specifications;</text> </paragraph> <paragraph num="(d)"> <text>Authentication of digital recordings, including Commission access to the system’s video verification encryption code or watermark;</text> </paragraph> <paragraph num="(e)"> <text>Audio recording format; and</text> </paragraph> <paragraph num="(f)"> <text>System access controls; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Surveillance department operating procedures conforming to this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering licensee may not commence operations until its surveillance system and surveillance department operating procedures are approved in writing by the Commission.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee’s surveillance department operating procedures shall, at a minimum, require:</text> <paragraph num="(1)"> <text>Coverage of all areas and transactions as enumerated in Regulation .13 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Contingency plans addressing a full or partial failure of the surveillance system;</text> </paragraph> <paragraph num="(3)"> <text>A surveillance system access log that documents:</text> <paragraph num="(a)"> <text>The date and time the surveillance system is accessed by an individual;</text> </paragraph> <paragraph num="(b)"> <text>The accessing individual’s name and department or affiliation;</text> </paragraph> <paragraph num="(c)"> <text>The reason for accessing the surveillance system; and</text> </paragraph> <paragraph num="(d)"> <text>The date and time the individual ended their access of the surveillance system;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The sports wagering licensee to notify the Commission within 12 hours of an equipment failure affecting coverage of the facility citing:</text> <paragraph num="(a)"> <text>The date and time of the failure;</text> </paragraph> <paragraph num="(b)"> <text>The cause of the failure;</text> </paragraph> <paragraph num="(c)"> <text>The length of time the surveillance system was inoperable or malfunctioning; and</text> </paragraph> <paragraph num="(d)"> <text>The length of time the before the surveillance system is expected to be operable or have the malfunction to be corrected;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The sports wagering licensee to confirm in writing a notice given verbally to the Commission under §D(4) of this regulation; and</text> </paragraph> <paragraph num="(6)"> <text>On a daily basis, the sports wagering licensee to synchronize the date and time on the surveillance system to a public time server.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee may not implement a change or amendment in its surveillance system or surveillance department operating procedures approved by the Commission under §B of this regulation without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Surveillance System Design Standards for Mobile Sports Wagering Licensees."> <paragraph num="A."> <text>This regulation is only applicable to the holder of a mobile sports wagering license.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall install in each of the licensee’s data information centers and operations centers a surveillance system that complies with the requirements of this regulation.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee’s surveillance system shall be reviewed and approved by the Commission under Regulation .16 of this chapter.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee’s surveillance system shall include:</text> <paragraph num="(1)"> <text>Light sensitive cameras that are:</text> <paragraph num="(a)"> <text>Enabled by lenses of sufficient magnification to observe front and back of each server cabinet that house all servers that collectively are the online wagering and associated systems;</text> </paragraph> <paragraph num="(b)"> <text>Enabled by lighting which is continuous and of sufficient quality to produce clear video recordings and still pictures; and</text> </paragraph> <paragraph num="(c)"> <text>Configured to monitor and record physical access to the online wagering and associated systems; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Digital video recording capability equipped to:</text> <paragraph num="(a)"> <text>Superimpose the date and time on all monitoring and recording;</text> </paragraph> <paragraph num="(b)"> <text>Through the use of a meter, counter or other device or method, identify and locate a particular event which was recorded; and</text> </paragraph> <paragraph num="(c)"> <text>Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Except as provided in §F of this regulation, a sports wagering licensee shall retain surveillance recordings for a minimum of 90 days.</text> </paragraph> <paragraph num="F."> <text>Upon the request of the Commission or a law enforcement agency that has proper jurisdiction over the sports wagering licensee, a recording shall be retained and stored in accordance with the directives of the Commission or law enforcement agency pertaining to that recording.</text> </paragraph> <paragraph num="G."> <text>A sports wagering licensee shall provide the Commission with timely and unfettered remote access to its surveillance system and all transmissions.</text> </paragraph> <paragraph num="H."> <text>A sports wagering licensee shall comply in a timely fashion with a request from the Commission to:</text> <paragraph num="(1)"> <text>Display on monitors any event capable of being captured by the surveillance system;</text> </paragraph> <paragraph num="(2)"> <text>Make a video recording or photograph of any event capable of being captured by the surveillance system; and</text> </paragraph> <paragraph num="(3)"> <text>Restrict or deny access to a recording or photograph.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A surveillance system may not be directly accessible from a location outside a mobile sports wagering licensee’s local network.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Surveillance Department Operating Procedures for Mobile Sports Wagering Licensees."> <paragraph num="A."> <text>This regulation is only applicable to the holder of a mobile sports wagering license.</text> </paragraph> <paragraph num="B."> <text>At least 60 days before sports wagering operations are to commence, a sports wagering licensee shall submit to the Commission for review and written approval:</text> <paragraph num="(1)"> <text>A surveillance system meeting the requirements of Regulation .15 of this chapter including, at a minimum, details pertaining to:</text> <paragraph num="(a)"> <text>Camera configuration inside and outside the data information centers and operations centers;</text> </paragraph> <paragraph num="(b)"> <text>Monitor room configuration;</text> </paragraph> <paragraph num="(c)"> <text>Video recording format and configuration specifications;</text> </paragraph> <paragraph num="(d)"> <text>Authentication of digital recordings, including Commission access to the system’s video verification encryption code or watermark;</text> </paragraph> <paragraph num="(e)"> <text>Audio recording format; and</text> </paragraph> <paragraph num="(f)"> <text>System access controls; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Surveillance department operating procedures conforming to this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering licensee may not commence operations until its surveillance system and surveillance department operating procedures are approved in writing by the Commission.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee’s surveillance department operating procedures shall, at a minimum, require:</text> <paragraph num="(1)"> <text>Coverage of all areas and transactions as enumerated in Regulation .15 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Contingency plans addressing a full or partial failure of the surveillance system;</text> </paragraph> <paragraph num="(3)"> <text>A surveillance system access log that documents:</text> <paragraph num="(a)"> <text>The date and time the surveillance system is accessed by an individual;</text> </paragraph> <paragraph num="(b)"> <text>The accessing individual’s name and department or affiliation;</text> </paragraph> <paragraph num="(c)"> <text>The reason for accessing the surveillance system; and</text> </paragraph> <paragraph num="(d)"> <text>The date and time the individual ended their access of the surveillance system;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The sports wagering licensee to notify the Commission within 12 hours of an equipment failure affecting coverage of the facility citing:</text> <paragraph num="(a)"> <text>The date and time of the failure;</text> </paragraph> <paragraph num="(b)"> <text>The cause of the failure;</text> </paragraph> <paragraph num="(c)"> <text>The length of time the surveillance system was inoperable or malfunctioning; and</text> </paragraph> <paragraph num="(d)"> <text>The length of time the before the surveillance system is expected to be or operable or the malfunction to be corrected;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The sports wagering licensee to confirm in writing a notice given verbally to the Commission under §D(4) of this regulation; and</text> </paragraph> <paragraph num="(6)"> <text>On a daily basis, the sports wagering licensee to synchronize the date and time on the surveillance system to Eastern Standard Time.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee may not implement a change or amendment in its surveillance system or surveillance department operating procedures approved by the Commission under §B of this regulation without the prior written approval of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Security Department Operating Procedures for Class A and Class B-1 Sports Wagering Facility Licensees."> <paragraph num="A."> <text>Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>The Commission may require the holder of a Class B-1 sports wagering facility license to comply with any or all of the requirements of this regulation.</text> </paragraph> <paragraph num="C."> <text>At least 60 days before sports wagering operations are to commence or another time approved by the Commission, a sports wagering licensee shall submit to the Commission for review and written approval its security department operating procedures.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee may not commence operations until its security department operating procedures are approved in writing by the Commission.</text> </paragraph> <paragraph num="E."> <text>A sports wagering licensee’s security department operating procedures shall, at a minimum, include:</text> <paragraph num="(1)"> <text>A security zone plan for the facility, employing fixed security posts and roving security officers designed to ensure:</text> <paragraph num="(a)"> <text>The physical safety of employees of and invitees to the facility;</text> </paragraph> <paragraph num="(b)"> <text>The safeguarding of assets;</text> </paragraph> <paragraph num="(c)"> <text>Compliance with all applicable laws and regulations including Commission approved internal controls and operating procedures;</text> </paragraph> <paragraph num="(d)"> <text>That the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility:</text> <paragraph num="(i)"> <text>An intoxicated individual; or</text> </paragraph> <paragraph num="(ii)"> <text>An excluded individual; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>That an individual younger than 21 years old is identified, prohibited from accessing the facility floor in accordance with State Government Article, §9-1E-11(a)(1), Annotated Code of Maryland, and, if necessary, immediately removed from the facility floor;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Procedures and controls addressing:</text> <paragraph num="(a)"> <text>Facility access controls including:</text> <paragraph num="(i)"> <text>An access badge system;</text> </paragraph> <paragraph num="(ii)"> <text>If utilized, specifications pertaining to a computerized access control system; and</text> </paragraph> <paragraph num="(iii)"> <text>Administrative responsibility over a manual or computerized access control system;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A temporary access credential;</text> </paragraph> <paragraph num="(c)"> <text>Key controls;</text> </paragraph> <paragraph num="(d)"> <text>Emergency alarm and fire command responsibilities including communication protocols with the surveillance department;</text> </paragraph> <paragraph num="(e)"> <text>Evacuation of the facility in the event of fire or other emergency;</text> </paragraph> <paragraph num="(f)"> <text>The identification and immediate removal of an intoxicated individual, an individual younger than 21 years old, an excluded individual;</text> </paragraph> <paragraph num="(g)"> <text>Bettor disputes under Regulation .37 of this chapter; and</text> </paragraph> <paragraph num="(h)"> <text>The notice requirements of §E(4) of this regulation;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A security department incident log:</text> <paragraph num="(a)"> <text>Maintained by security department employees in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed; or</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Documenting the following:</text> <paragraph num="(i)"> <text>Assignment number of the incident;</text> </paragraph> <paragraph num="(ii)"> <text>Date and time;</text> </paragraph> <paragraph num="(iii)"> <text>Name and Commission license of the department member covering the incident;</text> </paragraph> <paragraph num="(iv)"> <text>Nature of the incident; and</text> </paragraph> <paragraph num="(v)"> <text>Resolution of the incident; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>A requirement that a sports wagering licensee notice the Commission on detection of:</text> <paragraph num="(a)"> <text>An individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities; or</text> </paragraph> <paragraph num="(b)"> <text>An individual who is:</text> <paragraph num="(i)"> <text>Younger than 21 years old;</text> </paragraph> <paragraph num="(ii)"> <text>Intoxicated; or</text> </paragraph> <paragraph num="(iii)"> <text>An excluded individual.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Security Department Minimum Staffing for Class A and Class B-1 Sports Wagering Facility Licensees."> <paragraph num="A."> <text>Except as set forth in §B, this regulation is applicable only to the holder of a Class A sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>The Commission may require the holder of a Class B-1 sports wagering facility license to comply with any or all of the requirements of this regulation.</text> </paragraph> <paragraph num="C."> <text>At least 60 days before sports wagering operations are to commence or another time approved Commission, a sports wagering licensee shall submit its security department minimum staffing plan to the Commission for review and written approval.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee may not commence operations until its security department minimum staffing plan is approved in writing by the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Security Department Operating Procedures for Class B Sports Wagering Facility Licensees."> <paragraph num="A."> <text>This regulation is only applicable to the holder of a Class B sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall submit to the Commission for review and written approval its security operating procedures.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee’s security operating procedures shall, at a minimum, include:</text> <paragraph num="(1)"> <text>A security zone plan for the facility designed to ensure:</text> <paragraph num="(a)"> <text>The physical safety of employees and invitees to the facility;</text> </paragraph> <paragraph num="(b)"> <text>The safeguarding of assets;</text> </paragraph> <paragraph num="(c)"> <text>Compliance with all applicable laws and regulations including Commission approved internal controls and operating procedures;</text> </paragraph> <paragraph num="(d)"> <text>That intoxicated individuals are identified, prohibited from entering the facility and, if necessary, immediately removed from the facility; and</text> </paragraph> <paragraph num="(e)"> <text>That an individual younger than 21 years old is identified, prohibited from sports wagering and, if necessary immediately removed from the facility;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Procedures and controls addressing:</text> <paragraph num="(a)"> <text>Facility access controls including:</text> <paragraph num="(i)"> <text>An access badge or key system;</text> </paragraph> <paragraph num="(ii)"> <text>If utilized, specifications pertaining to a computerized access control system; and</text> </paragraph> <paragraph num="(iii)"> <text>Administrative responsibility over a manual or computerized access control system;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A temporary access credential;</text> </paragraph> <paragraph num="(c)"> <text>Key controls;</text> </paragraph> <paragraph num="(d)"> <text>Emergency alarm and fire command responsibilities;</text> </paragraph> <paragraph num="(e)"> <text>Evacuation of the facility in the event of fire or other emergency;</text> </paragraph> <paragraph num="(f)"> <text>The identification and immediate removal of an intoxicated individual, and, if applicable, an individual younger than 21 years old; and</text> </paragraph> <paragraph num="(g)"> <text>The notice requirements of §C(4) of this regulation;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A security incident log:</text> <paragraph num="(a)"> <text>Maintained in:</text> <paragraph num="(i)"> <text>A book with bound numbered pages that cannot be readily removed; or</text> </paragraph> <paragraph num="(ii)"> <text>An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Documenting:</text> <paragraph num="(i)"> <text>The assignment number of the incident;</text> </paragraph> <paragraph num="(ii)"> <text>The date and time of the incident;</text> </paragraph> <paragraph num="(iii)"> <text>The name of the person covering the incident;</text> </paragraph> <paragraph num="(iv)"> <text>The nature of the incident; and</text> </paragraph> <paragraph num="(v)"> <text>The resolution of the incident; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>A requirement that a Class B licensee notify the Commission upon detection of:</text> <paragraph num="(a)"> <text>An individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities; and</text> </paragraph> <paragraph num="(b)"> <text>An individual who is:</text> <paragraph num="(i)"> <text>Younger than 21 years old and has engaged in sports wagering; or</text> </paragraph> <paragraph num="(ii)"> <text>Intoxicated.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Internal Audit Department Standards."> <paragraph num="A."> <text>Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>The Commission may require the holder of a Class B sports wagering facility license to comply with any or all of the requirements of this regulation.</text> </paragraph> <paragraph num="C."> <text>At least 60 days before sports wagering operations are set to commence or another time approved Commission, a sports wagering licensee shall submit to the Commission for review and approval internal audit department operating standards and procedures that:</text> <paragraph num="(1)"> <text>Meet the requirements of Regulation .09E(6)(b) of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Conform to this regulation; and</text> </paragraph> <paragraph num="(3)"> <text>Ensure that an internal audit is conducted in accordance with generally accepted auditing standards in the United States.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensees internal audit department operating procedures and standards shall, at a minimum, require the internal audit department to:</text> <paragraph num="(1)"> <text>Work independently of the departments of the sports wagering licensee that are subject to audit;</text> </paragraph> <paragraph num="(2)"> <text>Assess whether the sports wagering licensees internal controls comply with applicable law and Commission directives;</text> </paragraph> <paragraph num="(3)"> <text>Test the sports wagering licensees compliance with its internal controls;</text> </paragraph> <paragraph num="(4)"> <text>Immediately report a deficiency in, or noncompliance with, the sports wagering licensees internal controls to:</text> <paragraph num="(a)"> <text>The audit committee;</text> </paragraph> <paragraph num="(b)"> <text>The chief executive officer;</text> </paragraph> <paragraph num="(c)"> <text>Management; and</text> </paragraph> <paragraph num="(d)"> <text>The Commission;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Recommend resolution for eliminating a deficiency in, or noncompliance with, the sports wagering licensees internal control system;</text> </paragraph> <paragraph num="(6)"> <text>Meet periodically with the audit committee or director of internal audit;</text> </paragraph> <paragraph num="(7)"> <text>Perform audits of:</text> <paragraph num="(a)"> <text>Unless an alternate risk assessment and audit plan is submitted in writing and approved in writing by the Commission, all departments of the sports wagering licensee that are designated under §§C and D of this regulation; and</text> </paragraph> <paragraph num="(b)"> <text>A department of the sports wagering licensee designated by the Commission;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Prepare an audit report for each audit conducted;</text> </paragraph> <paragraph num="(9)"> <text>Accurately document the audit process and results in an audit report that, at a minimum, shall include:</text> <paragraph num="(a)"> <text>Audit objectives;</text> </paragraph> <paragraph num="(b)"> <text>Audit procedures and scope;</text> </paragraph> <paragraph num="(c)"> <text>Findings and conclusions;</text> </paragraph> <paragraph num="(d)"> <text>A recommendation for addressing a deficiency in, or noncompliance with, the sports wagering licensees internal controls;</text> </paragraph> <paragraph num="(e)"> <text>Resolution of all exceptions; and</text> </paragraph> <paragraph num="(f)"> <text>Managements response;</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Submit audit reports to the Commission on a schedule specified by the Commission; and</text> </paragraph> <paragraph num="(11)"> <text>Verify that:</text> <paragraph num="(a)"> <text>A deficiency or noncompliance revealed during an audit has been corrected; and</text> </paragraph> <paragraph num="(b)"> <text>An exception disclosed during an audit has been resolved.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>If applicable, the audit department shall audit at least semiannually the functions and operations of the sports wagering licensees:</text> <paragraph num="(1)"> <text>Cashiers cage;</text> </paragraph> <paragraph num="(2)"> <text>Collection of cash storage boxes;</text> </paragraph> <paragraph num="(3)"> <text>Cash count;</text> </paragraph> <paragraph num="(4)"> <text>Revenue audit;</text> </paragraph> <paragraph num="(5)"> <text>Sports wagering operations department; and</text> </paragraph> <paragraph num="(6)"> <text>Key control;</text> </paragraph> </paragraph> <paragraph num="F."> <text>If applicable, the audit department shall audit at least annually:</text> <paragraph num="(1)"> <text>Responsible gaming program;</text> </paragraph> <paragraph num="(2)"> <text>Security department;</text> </paragraph> <paragraph num="(3)"> <text>Currency transaction reporting;</text> </paragraph> <paragraph num="(4)"> <text>Suspicious activity reporting;</text> </paragraph> <paragraph num="(5)"> <text>Information technology controls;</text> </paragraph> <paragraph num="(6)"> <text>Surveillance department;</text> </paragraph> <paragraph num="(7)"> <text>Bettor tracking system; and</text> </paragraph> <paragraph num="(8)"> <text>Sports wagering platform.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The internal audit department shall conduct an audit on an unannounced basis when possible.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="Access to Sports Wagering Platforms."> <paragraph num="A."> <text>The sports wagering licensee shall limit and control administrative access to the sports wagering platform and associated equipment by ensuring the following:</text> <paragraph num="(1)"> <text>Maintain access configurations and procedures that meet industry best practices and adhere to nationally recognized information technology compliance standards;</text> </paragraph> <paragraph num="(2)"> <text>Maintain logs of user access and review the logs daily to identify security incidents and unusual transactions;</text> </paragraph> <paragraph num="(3)"> <text>Coordinate and develop an education and training program on information security and privacy matters for employees and other authorized users;</text> </paragraph> <paragraph num="(4)"> <text>Ensure compliance with all State and federal information security policies and rules;</text> </paragraph> <paragraph num="(5)"> <text>Prepare and maintain security-related reports and data;</text> </paragraph> <paragraph num="(6)"> <text>Develop and implement an incident response plan to address security breaches, policy violations and complaints from external parties;</text> </paragraph> <paragraph num="(7)"> <text>Develop and implement an ongoing risk assessment program that targets information security and privacy matters by identifying methods for vulnerability detection and remediation and overseeing the testing of those methods; and</text> </paragraph> <paragraph num="(8)"> <text>Ensure remote access to a sports wagering licensee’s sports wagering platform and associated equipment is only permitted from within the local network and not directly accessible from the internet unless secured and monitored and approved by the MLGCC on a case-by-case basis.</text> </paragraph> </paragraph> <paragraph num="B."> <text>All sports wagering licensee’s sports wagering platforms and associated equipment shall be available for independent testing by the Commission or the Commission’s designee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".22" heading="Cashiers’ Cage Design Standards."> <paragraph num="A."> <text>Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>The Commission may require the holder of a Class B sports wagering facility license to comply with any or all of the requirements of this regulation.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall have on, adjacent, or proximate to the facility floor a physical structure known as a cashiers’ cage to house the cashiers in the facility for:</text> <paragraph num="(1)"> <text>The custody of the cash, accounting records, and forms and documents required under this chapter to conduct sports wagering operations;</text> </paragraph> <paragraph num="(2)"> <text>The initial financial consolidation of all transactions pertaining to sports wagering activity; and</text> </paragraph> <paragraph num="(3)"> <text>Other functions normally associated with the operation of a cashiers’ cage.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A cashiers’ cage shall include a manually triggered silent alarm system connected:</text> <paragraph num="(1)"> <text>Directly to the security department; or</text> </paragraph> <paragraph num="(2)"> <text>Directly, or through a documented communication protocol, to the monitor room of the surveillance department.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee shall make readily available to the Commission:</text> <paragraph num="(1)"> <text>An access control matrix indicating which employee job descriptions are authorized to have access to the cashiers’ cage; and</text> </paragraph> <paragraph num="(2)"> <text>A list of employees, with license number, who are authorized to:</text> <paragraph num="(a)"> <text>Have access to the Cashiers’ cage;</text> </paragraph> <paragraph num="(b)"> <text>Activate or deactivate alarm systems for the cashiers’ cage; and</text> </paragraph> <paragraph num="(c)"> <text>Grant access to the cashiers’ cage through the access control matrix or a computerized access control system.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".23" heading="Accounting Controls for a Cashiers’ Cage."> <paragraph num="A."> <text>This regulation is only applicable to the holder of a Class A or Class B sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee may only conduct transactions with individuals at its cashiers’ cage and any satellite cage during the hours of operation approved by the Commission for the facility under COMAR 36.10.17.02.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the segregation of the cashiers’ cage and the general conduct of cashiers’ cage transactions.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee’s internal controls shall require:</text> <paragraph num="(1)"> <text>The cashiers’ cage and any satellite cage to be physically segregated by personnel and function as follows:</text> <paragraph num="(a)"> <text>General cashiers shall be responsible for:</text> <paragraph num="(i)"> <text>An individual imprest inventory of cash;</text> </paragraph> <paragraph num="(ii)"> <text>Receipt and payout of cash, negotiable instruments, sports wagering tickets, and other documentation from and to bettors subject to the limitations imposed under this chapter; and</text> </paragraph> <paragraph num="(iii)"> <text>Other functions designated by the sports wagering licensee which are not incompatible with the functions of a general cashier; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Main bank cashiers shall be responsible for:</text> <paragraph num="(i)"> <text>Receipt of cash, negotiable instruments, sports wagering tickets, and other documentation from general cashiers in exchange for cash or documentation;</text> </paragraph> <paragraph num="(ii)"> <text>Replenishment of kiosks;</text> </paragraph> <paragraph num="(iii)"> <text>Receipt of unsecured cash and unsecured sports wagering tickets;</text> </paragraph> <paragraph num="(iv)"> <text>Receipt of cash and documentation from the count room;</text> </paragraph> <paragraph num="(v)"> <text>Preparation of the overall cashiers’ cage reconciliation;</text> </paragraph> <paragraph num="(vi)"> <text>Preparation of bank deposits; and</text> </paragraph> <paragraph num="(vii)"> <text>Other functions designated by the sports wagering licensee which are not incompatible with the functions of a main bank cashier;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Each general cashier and main bank cashier to prepare a cashiers’ count sheet on each shift:</text> <paragraph num="(a)"> <text>Recording the amount of the inventory in the window or bank;</text> </paragraph> <paragraph num="(b)"> <text>Reconciling the total closing inventory with the total opening inventory; and</text> </paragraph> <paragraph num="(c)"> <text>Including the signature of the:</text> <paragraph num="(i)"> <text>Outgoing general or main bank cashier; and</text> </paragraph> <paragraph num="(ii)"> <text>Incoming general or main bank cashier;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>At the end of the wagering day, the cashiers’ cage to forward a copy of each cashiers’ count sheet and related documentation to the accounting department for:</text> <paragraph num="(a)"> <text>Agreement of opening and closing inventories; and</text> </paragraph> <paragraph num="(b)"> <text>Comparison of forms or documents; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>No more than 48 hours after the discovery of an employee’s unresolved cage or count room overage or shortage of $500 or more, a sports wagering licensee shall submit a written report to the Commission describing:</text> <paragraph num="(a)"> <text>The reason for the overage or shortage and corrective action taken or adjustment made; or</text> </paragraph> <paragraph num="(b)"> <text>That a notice of investigation is ongoing and the written report will be submitted within the following 48 hours.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".24" heading="Checks Accepted from a Bettor."> <paragraph num="A."> <text>A sports wagering licensee may accept a negotiable instrument in the form of a check meeting the requirements of this regulation from a bettor to enable the bettor to take part in sports wagering.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee may accept a check only during the hours of operation approved by the Commission for the facility under COMAR 36.10.17.02.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee may accept a personal check that is:</text> <paragraph num="(1)"> <text>Made payable to the sports wagering licensee;</text> </paragraph> <paragraph num="(2)"> <text>Drawn on a bank, savings and loan association, or credit union subject to federal or State banking regulation;</text> </paragraph> <paragraph num="(3)"> <text>Drawn for a specific amount;</text> </paragraph> <paragraph num="(4)"> <text>Currently dated, not postdated; and</text> </paragraph> <paragraph num="(5)"> <text>Payable on demand.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Subject to the requirements of §E of this regulation, a sports wagering licensee may accept a check issued by:</text> <paragraph num="(1)"> <text>A Sports wagering licensee;</text> </paragraph> <paragraph num="(2)"> <text>The Agency; and</text> </paragraph> <paragraph num="(3)"> <text>A person that:</text> <paragraph num="(a)"> <text>Is an affiliate of the sports wagering licensee; and</text> </paragraph> <paragraph num="(b)"> <text>Holds a valid sports wagering license in another jurisdiction.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee shall only accept a check under §D of this regulation which has been issued to an individual as:</text> <paragraph num="(1)"> <text>Employment compensation; or</text> </paragraph> <paragraph num="(2)"> <text>A payout in connection with:</text> <paragraph num="(a)"> <text>Sports wagering activity;</text> </paragraph> <paragraph num="(b)"> <text>Casino activity; or</text> </paragraph> <paragraph num="(c)"> <text>Maryland lottery prizes.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>A sports wagering licensee may not:</text> <paragraph num="(1)"> <text>Except as provided under §C of this regulation, accept a check that is payable to an individual, including:</text> <paragraph num="(a)"> <text>A Social Security check;</text> </paragraph> <paragraph num="(b)"> <text>An unemployment insurance check;</text> </paragraph> <paragraph num="(c)"> <text>A disability payment check; or</text> </paragraph> <paragraph num="(d)"> <text>A public assistance check; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except for a check issued under §E of this regulation, accept from a bettor under this regulation a check or multiple checks which in the aggregate exceed $30,000 during a wagering day.</text> </paragraph> </paragraph> <paragraph num="G."> <text>For a personal check equaling or exceeding $5,000, a sports wagering licensee shall confirm the availability of funds by:</text> <paragraph num="(1)"> <text>Directly contacting the bank, savings and loan association, or credit union upon which the check is drawn;</text> </paragraph> <paragraph num="(2)"> <text>Obtaining an authorization and guarantee of the check from a check verification and warranty service licensed as a contractor under COMAR 36.10.06.04; or</text> </paragraph> <paragraph num="(3)"> <text>Alternate procedures addressing acceptance and verification of personal checks submitted in writing and approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the acceptance and verification of checks meeting the requirements of this regulation.</text> </paragraph> <paragraph num="I."> <text>A sports wagering licensee’s internal controls shall require a check accepted from a bettor by a general cashier to be:</text> <paragraph num="(1)"> <text>If a personal check other than an electronic check, restrictively endorsed “for deposit only” to the bank account designated for this purpose by the sports wagering licensee and:</text> <paragraph num="(a)"> <text>Initialed by the accepting general cashier;</text> </paragraph> <paragraph num="(b)"> <text>Date and time stamped;</text> </paragraph> <paragraph num="(c)"> <text>Documented on the face of the check the number on the bettor’s government-issued photographic identification; and</text> </paragraph> <paragraph num="(d)"> <text>If a personal check equaling or exceeding $5,000, confirmed for availability of funds under §G of this regulation;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Verified for signature authenticity by a general cashier who shall:</text> <paragraph num="(a)"> <text>Obtain from the bettor one form of identification that is a valid, unexpired government-issued photographic identification; and</text> </paragraph> <paragraph num="(b)"> <text>Satisfactorily compare the:</text> <paragraph num="(i)"> <text>Signature of the bettor on the personal check or endorsing the payroll or payout check with the signature on an identification credential; and</text> </paragraph> <paragraph num="(ii)"> <text>Bettor’s physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the bettor;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>If presented by a bettor as a payroll or payout check under §E of this regulation, confirmed to have been issued as employment compensation or as a payout in connection with sports wagering activity; and</text> </paragraph> <paragraph num="(4)"> <text>Immediately exchanged for:</text> <paragraph num="(a)"> <text>Cash;</text> </paragraph> <paragraph num="(b)"> <text>If the sports wagering licensee has the capability, a sports wagering ticket; or</text> </paragraph> <paragraph num="(c)"> <text>Funding for a sports wagering account in accordance with this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>Subject to the limit in §F(2) of this regulation, a sports wagering licensee may accept a check issued to an individual as a payout in connection with sports wagering activity from a sports wagering licensee that holds a valid sports wagering license in another jurisdiction.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".25" heading="Wire Transfers."> <paragraph num="A."> <text>A sports wagering licensee may accept a negotiable instrument in the form of a wire transfer from a bettor to enable the bettor to take part in sports wagering.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall record in its cashiers’ cage accountability or other accounting records any funds accepted by wire transfer with no documented business purpose other than to enable a bettor to take part in sports wagering within 24 hours of receipt of the wire transfer.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the acceptance, verification, and sending of wire transfers meeting the requirements of this regulation.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee’s internal controls shall:</text> <paragraph num="(1)"> <text>Require preparation of a wire transfer log to record the following information pertaining to a wire transfer accepted by a sports wagering licensee on behalf of a bettor:</text> <paragraph num="(a)"> <text>A sequential number assigned by the sports wagering licensee to the wire transfer accepted;</text> </paragraph> <paragraph num="(b)"> <text>Date and time notice of the wire transfer was received;</text> </paragraph> <paragraph num="(c)"> <text>Name of the financial institution to which the funds were sent;</text> </paragraph> <paragraph num="(d)"> <text>Amount transferred;</text> </paragraph> <paragraph num="(e)"> <text>Name of the bettor for whose benefit the funds were accepted;</text> </paragraph> <paragraph num="(f)"> <text>The name of the financial institution from which the funds were transferred;</text> </paragraph> <paragraph num="(g)"> <text>The method by which the sports wagering licensee was notified of the receipt of the wire transfer;</text> </paragraph> <paragraph num="(h)"> <text>If noticed by telephone, the name and title of the individual providing notice; and</text> </paragraph> <paragraph num="(i)"> <text>The signature of the employee receiving and recording the information required by this section;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Require that a supervisor other than the employee who initially documented acceptance of the wire transfer:</text> <paragraph num="(a)"> <text>Independently confirm date, time, and method by which the sports wagering licensee was notified of the wire transfer;</text> </paragraph> <paragraph num="(b)"> <text>Record the date and time of confirmation in the wire transfer log; and</text> </paragraph> <paragraph num="(c)"> <text>Sign the wire transfer log as completing the confirmation process;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Document the procedures used to:</text> <paragraph num="(a)"> <text>Establish, verify, and document the identity of a bettor sending a wire transfer;</text> </paragraph> <paragraph num="(b)"> <text>Make the wire transfer proceeds available to a bettor at the cashiers’ cage or any other means as approved by the Commission; and</text> </paragraph> <paragraph num="(c)"> <text>Adjust the cashiers’ cage accountability or other accounting records;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Require preparation of a wire transfer log to record the following information pertaining to a wire transfer sent by a sports wagering licensee on behalf of a bettor:</text> <paragraph num="(a)"> <text>A sequential number assigned by the sports wagering licensee to the wire transfer sent;</text> </paragraph> <paragraph num="(b)"> <text>Name of the bettor;</text> </paragraph> <paragraph num="(c)"> <text>Date of the transaction;</text> </paragraph> <paragraph num="(d)"> <text>Amount wired;</text> </paragraph> <paragraph num="(e)"> <text>Source of funds;</text> </paragraph> <paragraph num="(f)"> <text>The name and address of the financial institution to which the funds were wired;</text> </paragraph> <paragraph num="(g)"> <text>Account number to which the funds are credited;</text> </paragraph> <paragraph num="(h)"> <text>If the request to send a wire transfer is made in person at the cashiers’ cage, the signature of the bettor;</text> </paragraph> <paragraph num="(i)"> <text>If the request to send a wire transfer is not made in person at the cashiers’ cage, documentation supporting the receipt of a request by the sports wagering licensee to send a wire transfer on behalf of a bettor;</text> </paragraph> <paragraph num="(j)"> <text>The signature of the cashiers’ cage employee or accounting department employee receiving and recording the information required by this regulation; and</text> </paragraph> <paragraph num="(k)"> <text>The signature of the cashiers’ cage supervisor or accounting department supervisor authorizing the wire transfer; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Document the procedures used to:</text> <paragraph num="(a)"> <text>Establish, verify, and document the identity of a bettor requesting that a wire transfer be sent;</text> </paragraph> <paragraph num="(b)"> <text>Send the wire transfer; and</text> </paragraph> <paragraph num="(c)"> <text>Adjust the cashiers’ cage accountability or other accounting records.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".26" heading="Cash Equivalents."> <paragraph num="A."> <text>A sports wagering licensee may accept a negotiable instrument in the form of a cash equivalent from a bettor to enable the bettor to take part in sports wagering.</text> </paragraph> <paragraph num="B."> <text>If applicable, a sports wagering licensee may accept a cash equivalent only during the hours of operation approved by the Commission for a sports wagering facility under COMAR 36.10.15.02.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the acceptance and verification of cash equivalents meeting the requirements of this chapter.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee’s internal controls shall:</text> <paragraph num="(1)"> <text>Enumerate the type of cash equivalents complying with this chapter to be accepted;</text> </paragraph> <paragraph num="(2)"> <text>Detail the specific verification procedures required by each issuer;</text> </paragraph> <paragraph num="(3)"> <text>Require that a general cashier:</text> <paragraph num="(a)"> <text>Perform the specific verification procedures required by each issuer;</text> </paragraph> <paragraph num="(b)"> <text>Prepare and maintain documentation evidencing the verification of a cash equivalent accepted; and</text> </paragraph> <paragraph num="(c)"> <text>Examine a cash equivalent for counterfeiting, forgery, or alteration;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If applicable, detail the criteria for cashiers’ cage supervisor or accounting department supervisor involvement in the verification process; and</text> </paragraph> <paragraph num="(5)"> <text>Include procedures for verifying the authenticity of a bettor’s signature on a cash equivalent in conformance with the signature authentication procedures in Regulation .19 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".27" heading="Bettor Deposits."> <paragraph num="A."> <text>A sports wagering licensee may establish a customer deposit account for a bettor to enable the bettor to take part in sports wagering.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall perform all procedures required by this chapter before depositing funds accepted by means of check, wire transfer, cash equivalent, or other negotiable instrument into a customer deposit account.</text> </paragraph> <paragraph num="C."> <text>If applicable, a sports wagering licensee may accept a customer deposit only during the hours of operation approved by the Commission for the facility under COMAR 36.10.15.02.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the acceptance of customer deposits meeting the requirements of this regulation.</text> </paragraph> <paragraph num="E."> <text>A sports wagering licensee’s internal controls shall:</text> <paragraph num="(1)"> <text>Require acceptance of customer deposits at the cashiers’ cage or by any other means as approved by the Commission;</text> </paragraph> <paragraph num="(2)"> <text>Require preparation of a receipt documenting:</text> <paragraph num="(a)"> <text>Amount deposited;</text> </paragraph> <paragraph num="(b)"> <text>Date of the deposit; and</text> </paragraph> <paragraph num="(c)"> <text>If applicable, the signature of the general cashier accepting the customer deposit;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Provide for full or partial withdrawal of a customer deposit:</text> <paragraph num="(a)"> <text>By a bettor at the cashiers’ cage or by any other means as approved by the Commission; or</text> </paragraph> <paragraph num="(b)"> <text>Upon receipt by the sports wagering licensee of a written request for withdrawal for which validity has been established; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Include procedures for documenting acceptance and withdrawal of customer deposits including a verification of the authenticity of a bettor’s signature on a customer deposit withdrawal document in conformance with the signature authentication procedures in Regulation .24 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".28" heading="Use of Credit."> <paragraph num="A."> <text>Except for an online sports wagering licensee, a sports wager may not be accepted in any way by use of a:</text> <paragraph num="(1)"> <text>Credit card; or</text> </paragraph> <paragraph num="(2)"> <text>Electronic transfer of funds from a credit card.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If an online sports wagering licensee accepts credit cards to fund a sports wagering account, the licensee shall require a bettor to acknowledge that the transaction may be treated as a cash advance and be subject to additional fees.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".29" heading="Bettor Tracking System."> <paragraph num="A."> <text>A sports wagering licensee shall utilize a bettor tracking system meeting the requirements of this subtitle.</text> </paragraph> <paragraph num="B."> <text>Participation in a bettor tracking system:</text> <paragraph num="(1)"> <text>Subject to §B(2) of this regulation, is voluntary;</text> </paragraph> <paragraph num="(2)"> <text>A bettor using a mobile betting application shall be included in the tracking system.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall provide a bettor with a record of sports wagering spending levels if:</text> <paragraph num="(1)"> <text>The bettor:</text> <paragraph num="(a)"> <text>Has registered with the licensee for inclusion in the bettor tracking system; and</text> </paragraph> <paragraph num="(b)"> <text>Submits a request for the spending level documentation at:</text> <paragraph num="(i)"> <text>The cashiers’ cage; or</text> </paragraph> <paragraph num="(ii)"> <text>By any other means approved by the Commission; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>For requests made at a sports wagering facility, the identification of the bettor and the authenticity of the bettor’s signature on the request is established by an employee satisfactorily comparing the:</text> <paragraph num="(a)"> <text>Bettor’s information recorded on the spending level request documentation with the information contained on the valid, unexpired government-issued photographic identification presented by the bettor; and</text> </paragraph> <paragraph num="(b)"> <text>Bettor’s physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the bettor.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee may use a player rewards program that allows a bettor to exchange reward credits for complimentary service in accordance with Regulation .08 of this chapter.</text> </paragraph> <paragraph num="E."> <text>Limitation on Reward Programs at Sports Wagering Facilities.</text> <paragraph num="(1)"> <text>Subject to the limitations in this section, a Class A Sports Wagering Facility Licensee that provides sports wagering services on behalf of a Class B Sports Wagering Facility may allow a bettor to:</text> <paragraph num="(a)"> <text>Use reward credits from the rewards program of the Class A Sports Wagering Facility at the Class B Sports Wagering Facility for non-wagering activity;</text> </paragraph> <paragraph num="(b)"> <text>Earn reward credits for the reward program of the Class A Sports Wagering Facility at the Class B Sports Wagering Facility; and</text> </paragraph> <paragraph num="(c)"> <text>Use reward credits from the reward program earned at the Class B Sports Wagering Facility at the Class A Sports Wagering Facility.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A Class A sports wagering licensee may not allow a bettor to use:</text> <paragraph num="(a)"> <text>The account wallet of a Class A Sports Wagering Facility Licensee for wagering at a Class B Sports Wagering Facility;</text> </paragraph> <paragraph num="(b)"> <text>Reward credits earned in §E(1)(b) of this regulation to be applied in the bettor’s wallet; and</text> </paragraph> <paragraph num="(c)"> <text>Reward credits of the Class A Sports Wagering Facility for wagering at the Class B Sports Wagering Facility.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>A sports wagering licensee shall submit a description of the player reward program to the Commission for review and written approval.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".30" heading="Sports Wagering Ticket or Voucher."> <paragraph num="A."> <text>A sports wagering licensee may issue a sports wagering ticket or voucher and utilize a sports wagering ticket system meeting the requirements of this subtitle.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall issue a sports wagering ticket or voucher which expires 182 days after the date of the sporting event or voucher issuance.</text> </paragraph> <paragraph num="C."> <text>Except for mobile sports wagering, a sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Configure its sports wagering ticket system to:</text> <paragraph num="(a)"> <text>Prevent issuance of a sports wagering ticket from a kiosk exceeding $10,000; and</text> </paragraph> <paragraph num="(b)"> <text>Require sports wagering tickets or vouchers of $3,000 or more to be redeemed only at the cashiers’ cage;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Configure a ticket redemption unit under Regulation .31 of this chapter to:</text> <paragraph num="(a)"> <text>Redeem only a sports wagering ticket or voucher of less than $3,000; and</text> </paragraph> <paragraph num="(b)"> <text>Direct a bettor attempting to redeem a sports wagering ticket or voucher of $3,000 or more to the cashiers’ cage; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Redeem at its cashiers’ cage a sports wagering ticket or voucher of $3,000 or more by:</text> <paragraph num="(a)"> <text>Cash or check; or</text> </paragraph> <paragraph num="(b)"> <text>Check on the request of a bettor.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall immediately report to the Commission evidence that a sports wagering ticket or voucher has been counterfeited, tampered with, or altered in any way which would affect the integrity, fairness, or reliability of the sports wagering ticket.</text> </paragraph> <paragraph num="E."> <text>A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the issuance and redemption of a sports wagering ticket or voucher.</text> </paragraph> <paragraph num="F."> <text>A sports wagering licensee’s internal controls shall:</text> <paragraph num="(1)"> <text>Require a sports wagering ticket or voucher to include:</text> <paragraph num="(a)"> <text>Name or trade name of the sports wagering licensee;</text> </paragraph> <paragraph num="(b)"> <text>Date and time of issuance;</text> </paragraph> <paragraph num="(c)"> <text>A description of the wager;</text> </paragraph> <paragraph num="(d)"> <text>Amount of the sports wagering ticket;</text> </paragraph> <paragraph num="(e)"> <text>Unique series number automatically generated by the sports wagering ticket system;</text> </paragraph> <paragraph num="(f)"> <text>Asset number of the ticket redemption unit or point of sale device dispensing the sports wagering ticket;</text> </paragraph> <paragraph num="(g)"> <text>Sports wagering facilities where the sports wagering ticket may be redeemed and any restrictions applicable to redemption;</text> </paragraph> <paragraph num="(h)"> <text>A bar code which enables the sports wagering ticket system to identify the numeric information required by this section; and</text> </paragraph> <paragraph num="(i)"> <text>Notice to the bettor of the terms of expiration; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Include procedures and controls which:</text> <paragraph num="(a)"> <text>Require a sports wagering ticket system to perform the following prior to payment:</text> <paragraph num="(i)"> <text>Verify the validity of the ticket number and amount of the sports wagering ticket or voucher; and</text> </paragraph> <paragraph num="(ii)"> <text>Electronically cancel the sports wagering ticket or voucher;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Require the sports wagering ticket system to be configured to:</text> <paragraph num="(i)"> <text>Permit access to the complete ticket number of an unredeemed sports wagering ticket or voucher only to sports wagering ticket system administrative employees and accounting department employees not assigned to the cashiers’ cage; and</text> </paragraph> <paragraph num="(ii)"> <text>Maintain a record of all unredeemed sports wagering tickets or vouchers for a minimum of 2 years from the date of the sporting event or issuance of the sports wagering voucher unless a request to remove or relocate system records is submitted in writing and approved in writing by the Commission;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Address the following events:</text> <paragraph num="(i)"> <text>Calculation and transmittal by the sports wagering licensee of its outstanding expired unredeemed sports wagering ticket or voucher balance to the State; and</text> </paragraph> <paragraph num="(ii)"> <text>An election by a sports wagering licensee to pay a sports wagering ticket or voucher when the sports wagering ticket system is inoperable or otherwise unable to verify the validity of the sports wagering ticket at the time of payment; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Require generation, at the conclusion of each wagering day, of reports detailing:</text> <paragraph num="(i)"> <text>Sports wagering tickets or vouchers issued;</text> </paragraph> <paragraph num="(ii)"> <text>Sports wagering tickets or vouchers redeemed and cancelled by redemption facility;</text> </paragraph> <paragraph num="(iii)"> <text>Unredeemed liability for sports wagering tickets or vouchers; and</text> </paragraph> <paragraph num="(iv)"> <text>Any exceptions.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".31" heading="Ticket Redemption Unit or Kiosk."> <paragraph num="A."> <text>A sports wagering licensee may utilize a ticket redemption unit or kiosk meeting the requirements of this subtitle.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall locate a ticket redemption unit or kiosk in the sports wagering facility subject to the surveillance coverage requirements of Regulation .11 of this chapter.</text> </paragraph> <paragraph num="C."> <text>A ticket redemption unit or kiosk:</text> <paragraph num="(1)"> <text>Shall, in accordance with this regulation, be configured to:</text> <paragraph num="(a)"> <text>Redeem a sports wagering ticket or voucher of less than $3,000; and</text> </paragraph> <paragraph num="(b)"> <text>Direct a bettor attempting to redeem a sports wagering ticket or voucher of $3,000 or more to the cashiers’ cage; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>May be configured to function as a bill breaker changing bills of one denomination into bills of a smaller denomination.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall develop and include in the internal controls submitted under Regulation .04 of this chapter, procedures addressing a ticket redemption unit or kiosk.</text> </paragraph> <paragraph num="E."> <text>A sports wagering licensee’s internal controls shall address:</text> <paragraph num="(1)"> <text>Distribution of cash to a ticket redemption unit;</text> </paragraph> <paragraph num="(2)"> <text>Removal of sports wagering tickets and cash accepted by a ticket redemption unit;</text> </paragraph> <paragraph num="(3)"> <text>Reconciliations associated with the replenishment process;</text> </paragraph> <paragraph num="(4)"> <text>Generation of the following reports by a ticket redemption unit or ancillary system or application for the reconciliation period, which may be by wagering day, shift, or drop cycle:</text> <paragraph num="(a)"> <text>A sports wagering ticket transaction report which details:</text> <paragraph num="(i)"> <text>Disposition, as paid, partially paid, or unpaid, of sports wagering tickets or vouchers accepted by a ticket redemption unit;</text> </paragraph> <paragraph num="(ii)"> <text>Sports wagering ticket validation number or voucher identification number;</text> </paragraph> <paragraph num="(iii)"> <text>Date and time of redemption;</text> </paragraph> <paragraph num="(iv)"> <text>Amount requested; and</text> </paragraph> <paragraph num="(v)"> <text>Amount dispensed;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A reconciliation report which details:</text> <paragraph num="(i)"> <text>Date and time;</text> </paragraph> <paragraph num="(ii)"> <text>Unique asset identification number of the ticket redemption unit;</text> </paragraph> <paragraph num="(iii)"> <text>Total amount of cash in the currency and coin cassettes;</text> </paragraph> <paragraph num="(iv)"> <text>Total number of bills accepted by denomination;</text> </paragraph> <paragraph num="(v)"> <text>Total amount of sports wagering tickets accepted; and</text> </paragraph> <paragraph num="(vi)"> <text>Total amount of sports wagering vouchers accepted; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A sports wagering ticket and currency storage box report which details the following data whenever a storage box is removed from the ticket redemption unit:</text> <paragraph num="(i)"> <text>Date and time;</text> </paragraph> <paragraph num="(ii)"> <text>Unique asset identification number of the ticket redemption unit;</text> </paragraph> <paragraph num="(iii)"> <text>Unique identification number for each storage box in the ticket redemption unit;</text> </paragraph> <paragraph num="(iv)"> <text>Total amount of currency dispensed;</text> </paragraph> <paragraph num="(v)"> <text>Total number of bills dispensed by denomination;</text> </paragraph> <paragraph num="(vi)"> <text>Total amount of sports wagering tickets accepted;</text> </paragraph> <paragraph num="(vii)"> <text>Total count of sports wagering tickets accepted;</text> </paragraph> <paragraph num="(viii)"> <text>Total amount of sports wagering vouchers accepted;</text> </paragraph> <paragraph num="(ix)"> <text>Total count of sports wagering vouchers accepted; and</text> </paragraph> <paragraph num="(x)"> <text>Details required to be included in the sports wagering ticket transaction report required under §E(4)(a) of this regulation; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>A transaction history report which details all critical bettor transaction history including the date, time, amount, and disposition of each complete and incomplete transaction.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".32" heading="Wager Payouts."> <paragraph num="A."> <text>A sports wagering licensee shall prepare and timely file IRS Form W-2G, Certain Gambling Winnings, in accordance with IRS rules and regulations.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall pay a sports wager payout of $50,000 or more:</text> <paragraph num="(1)"> <text>By cash or check; or</text> </paragraph> <paragraph num="(2)"> <text>On the request of a bettor, any combination of cash, sports wagering ticket or voucher, check, or other method of payment approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall develop procedures to obtain personal identifying information from any individual who places any single wager in an amount of $10,000 or greater on a sporting event while physically present in a facility.</text> </paragraph> <paragraph num="D."> <text>To ensure compliance with §C of this regulation, a sports wagering licensee shall, prior to accepting any sports wager in excess of $3,000 or making a payout in excess of $3,000 on a winning sports wager:</text> <paragraph num="(1)"> <text>Create a bettor identification file and identify the bettor;</text> </paragraph> <paragraph num="(2)"> <text>Obtain and record the bettor’s Social Security number in the bettor identification file; and</text> </paragraph> <paragraph num="(3)"> <text>Record, on a log, the following information:</text> <paragraph num="(a)"> <text>Date of the wager or payout;</text> </paragraph> <paragraph num="(b)"> <text>Name of the bettor;</text> </paragraph> <paragraph num="(c)"> <text>Name and signature of the sports wagering employee authorizing the acceptance of the wager; and</text> </paragraph> <paragraph num="(d)"> <text>Name and signature of the sports wagering employee identifying the bettor and generating the sports wagering ticket or making the payout.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee shall monitor for and report all suspicious activity related to sports wagering transactions.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".33" heading="Access to Bill Validators, Cash Storage, and Drop Boxes."> <paragraph num="A."> <text>Access.</text> <paragraph num="(1)"> <text>A sports wagering licensee shall control access to a bill validator and a cash storage box housed in a sports wagering kiosk in accordance with this regulation.</text> </paragraph> <paragraph num="(2)"> <text>Access to a bill validator shall be controlled by:</text> <paragraph num="(a)"> <text>At least one lock; and</text> </paragraph> <paragraph num="(b)"> <text>Requiring the key to the lock to be maintained by the security department.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The cash storage box shall be secured to a bill validator by two separate locks, the keys to which are different from each other, and, for the lock on the belly door or main door of the sports wagering kiosk:</text> <paragraph num="(a)"> <text>The key shall be controlled by the sports wagering department in:</text> <paragraph num="(i)"> <text>A manual key box; or</text> </paragraph> <paragraph num="(ii)"> <text>An automated key tracking system;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Immediately prior to the commencement of the drop, the sports wagering department may issue its belly door or main door key to the accounting department;</text> </paragraph> <paragraph num="(c)"> <text>A key transferred from the sports wagering department to the accounting department shall be returned immediately following the conclusion of the drop;</text> </paragraph> <paragraph num="(d)"> <text>The sports wagering licensee shall establish sign in and sign out procedures in its internal controls documenting the transfers; and</text> </paragraph> <paragraph num="(e)"> <text>If an automated key tracking system is used, a sports wagering licensee shall require dual access from the security department and accounting department to obtain keys.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The lock on the release mechanism securing the cash storage box to the bill validator shall be controlled by the security department.</text> </paragraph> <paragraph num="(5)"> <text>Access to the contents of a cash storage box shall be controlled by:</text> <paragraph num="(a)"> <text>At least one lock; and</text> </paragraph> <paragraph num="(b)"> <text>Requiring the key to the lock to be maintained by the accounting department.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Control. A sports wagering licensee shall either:</text> <paragraph num="(1)"> <text>Assign to a cash storage box an asset number that:</text> <paragraph num="(a)"> <text>Is permanently imprinted or affixed to the outside of the cash storage box; and</text> </paragraph> <paragraph num="(b)"> <text>Corresponds to the asset number of the kiosk in which the cash storage box is installed; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>With the written approval of the Commission, utilize a computerized system for:</text> <paragraph num="(a)"> <text>Assigning a unique identification number to a cash storage box; and</text> </paragraph> <paragraph num="(b)"> <text>Attributing it to the sports wagering kiosk in which the cash storage box is currently installed.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Unique Identification Number. A sports wagering licensee shall ensure that an asset number or unique identification number on a cash storage box is clearly visible to:</text> <paragraph num="(1)"> <text>An employee involved in removing or replacing a cash storage box; and</text> </paragraph> <paragraph num="(2)"> <text>If applicable, the surveillance department.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Emergency Cash Storage Box. A sports wagering licensee may maintain an emergency cash storage box without an asset number or a unique identification number if:</text> <paragraph num="(1)"> <text>The word “emergency” is permanently imprinted or affixed on the box; and</text> </paragraph> <paragraph num="(2)"> <text>When put into use, the cash storage box is temporarily marked with the asset number of the kiosk in which it is installed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".34" heading="Collection of Cash Storage and Drop Boxes."> <paragraph num="A."> <text>At least 30 days before sports wagering operations are to commence or other time period approved by the Commission, a sports wagering licensee shall submit to the Commission in writing a drop schedule setting forth specific pick-up days and times for collection of cash storage drop boxes, including:</text> <paragraph num="(1)"> <text>Specifications as to what areas of the sports wagering facility will be covered on each pick-up day; and</text> </paragraph> <paragraph num="(2)"> <text>Specific transportation routes to be utilized from the sports wagering facility floor to the count room on each pick-up day.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall notify the Commission:</text> <paragraph num="(1)"> <text>In writing, of a permanent change in the drop schedule including a pick-up day or time, area of the floor to be dropped, or transportation route; and</text> </paragraph> <paragraph num="(2)"> <text>Prior to any temporary deviation from the drop schedule.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall make readily available to the Commission:</text> <paragraph num="(1)"> <text>An access control matrix indicating which employee job descriptions are authorized to participate in the cash storage drop box collection process; and</text> </paragraph> <paragraph num="(2)"> <text>A list of employees, with license numbers, who are authorized to participate in the cash storage drop box collection process.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the collection of cash storage drop boxes.</text> </paragraph> <paragraph num="E."> <text>A sports wagering licensees internal controls shall:</text> <paragraph num="(1)"> <text>Detail the actual procedures to be performed and documentation to be generated by drop team employees collecting cash storage drop boxes:</text> <paragraph num="(a)"> <text>In accordance with the drop schedule; and</text> </paragraph> <paragraph num="(b)"> <text>On an emergency basis; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Require:</text> <paragraph num="(a)"> <text>Cash storage drop boxes to be transported directly to, and secured in:</text> <paragraph num="(i)"> <text>The count room; or</text> </paragraph> <paragraph num="(ii)"> <text>A trolley storage area approved by the Commission under COMAR 36.10.15.04B;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Except as provided in §F of this regulation, the cash storage drop box collection process to involve the participation of at least three employees, at least one of whom is an employee of the:</text> <paragraph num="(i)"> <text>Security department or other department approved by the Commission; and</text> </paragraph> <paragraph num="(ii)"> <text>Accounting department;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Prior to the movement of a trolley containing cash storage boxes from the sports wagering facility floor into the count room, an accounting department supervisor to verify that the number of cash storage boxes being transported from the facility floor equals the number of cash storage boxes scheduled for collection that day; and</text> </paragraph> <paragraph num="(d)"> <text>Prior to changing the type of a kiosk, or removing a kiosk from the sports wagering facility floor, that an emergency drop shall be conducted.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>The Commission may allow the holder of a Class B-2 sports wagering license to perform the cash storage drop box collection process with at least two employees, one of whom is an employee of the:</text> <paragraph num="(1)"> <text>Security department or other department approved by the Commission; and</text> </paragraph> <paragraph num="(2)"> <text>Accounting department.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A sports wagering licensee shall transport cash storage drop boxes in an enclosed trolley secured by one lock that has a key which is controlled by the security department.</text> </paragraph> <paragraph num="H."> <text>A sports wagering licensee shall store cash storage drop boxes not attached to a bill validator, including emergency cash storage drop boxes that are not actively in use:</text> <paragraph num="(1)"> <text>In the count room in an area approved by the Commission;</text> </paragraph> <paragraph num="(2)"> <text>In a trolley storage area approved by the Commission under COMAR 36.10.15.04B; or</text> </paragraph> <paragraph num="(3)"> <text>In another location at the sports facility approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="I."> <text>The cabinet or trolley used for storage under §G of this regulation shall be secured by one lock that has a key which is controlled by the security department in:</text> <paragraph num="(1)"> <text>A manual key box; or</text> </paragraph> <paragraph num="(2)"> <text>An automated key tracking system.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Immediately prior to the commencement of the count process, the security department may issue its key to the storage cabinet or trolley required under §G of this regulation to a count room supervisor for the purpose of allowing count room personnel to gain access to the cash storage drop boxes to be counted.</text> </paragraph> <paragraph num="K."> <text>A trolley storage area utilized to store cash storage drop boxes prior to the count process shall meet the design standards for a count room under Regulation .35 of this chapter.</text> </paragraph> <paragraph num="L."> <text>Except for security officers, the drop and count team members assigned to the collection of cash storage drop boxes shall wear a one-piece, pocketless jumpsuit.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".35" heading="Count Room Design Standards."> <paragraph num="A."> <text>This regulation is only applicable to the holder of a sports wagering facility licensee.</text> </paragraph> <paragraph num="B."> <text>A licensee shall have a count room designated, designed, and used for counting the contents of cash storage drop boxes at a sports wagering facility approved by the Commission.</text> </paragraph> <paragraph num="C."> <text>A count room or space used for counting the contents of cash storage drop boxes area used for counting shall conform to the following standards:</text> <paragraph num="(1)"> <text>Meet the surveillance requirements of Regulations .10 and .13 of this chapter including audio coverage of the count process;</text> </paragraph> <paragraph num="(2)"> <text>If used during normal operating business hours, be separate and not visible from the public areas of the facility; and</text> </paragraph> <paragraph num="(3)"> <text>Any other requirements imposed by the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall install in its count room a table constructed of clear glass or similar transparent material to be used for the emptying, counting, and recording of the contents of cash storage drop boxes.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".36" heading="Accounting Controls for a Count Room."> <paragraph num="A."> <text>This regulation is only applicable to the holder of a sports wagering facility licensee.</text> </paragraph> <paragraph num="B."> <text>Count Schedule. At least 30 days before sports wagering operations are to commence or other time period as approved by the Commission, a licensee shall submit to the Commission a count schedule setting forth the specific times during which cash storage drop boxes are to be counted and recorded.</text> </paragraph> <paragraph num="C."> <text>Notifications. Within 24 hours of the change or deviation, a licensee shall:</text> <paragraph num="(1)"> <text>Notify the Commission in writing of any permanent change in the count schedule; and</text> </paragraph> <paragraph num="(2)"> <text>Notify the Commission of any temporary deviation from the count schedule.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Count Frequency. A licensee shall count the contents of each cash storage box at least once daily unless an alternative count schedule is submitted in writing to and approved in writing by the Commission.</text> </paragraph> <paragraph num="E."> <text>Procedures. A licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the counting and recording of cash storage drop boxes.</text> </paragraph> <paragraph num="F."> <text>Internal Controls. A sports wagering licensee’s internal controls shall:</text> <paragraph num="(1)"> <text>Detail all hardware, software, and related equipment utilized by the sports wagering licensee to conduct the count;</text> </paragraph> <paragraph num="(2)"> <text>Detail the actual procedures to be performed and documentation to be generated;</text> </paragraph> <paragraph num="(3)"> <text>Require equipment utilized to count and strap currency, winning sports wagering tickets, sports wagering vouchers, and promotional play instruments to:</text> <paragraph num="(a)"> <text>Conduct two separate counts;</text> </paragraph> <paragraph num="(b)"> <text>If the separate counts are not in agreement, document the discrepancy; and</text> </paragraph> <paragraph num="(c)"> <text>If a sports wagering platform, point of sale system, or promotional play system is utilized to obtain the amount of a winning sports wagering ticket, sports wagering voucher or promotional play instrument, require the system to perform a calculation or integrity check to ensure that the amount of a sports wagering ticket or promotional play instrument has not been altered in the system in any manner since the time of issuance; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Require a count room employee to wear a one-piece, pocketless garment.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A winning sports wagering ticket, sports wagering voucher or promotional play instrument accepted by a cash storage drop box shall be counted and included in the calculation of proceeds without regard to the validity of the sports wagering ticket or promotional play instrument.</text> </paragraph> <paragraph num="H."> <text>A promotional play instrument which is not cancelled upon acceptance or during the count process shall be cancelled prior to the conclusion of the count.</text> </paragraph> <paragraph num="I."> <text>Within 72 hours of the count, a licensee shall report in writing to the Commission:</text> <paragraph num="(1)"> <text>Any variance between:</text> <paragraph num="(a)"> <text>The actual count of cash, winning sports wagering tickets, sports wagering vouchers and promotional play instruments in a cash storage box as determined in the count room; and</text> </paragraph> <paragraph num="(b)"> <text>The amount for the cash storage box recorded on the sports wagering licensee’s sports wagering platform or point of sale system;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The reason for the variance; and</text> </paragraph> <paragraph num="(3)"> <text>Corrective action taken or adjustments made.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".37" heading="Bettor Complaints."> <paragraph num="A."> <text>A sports wagering licensee shall attempt to timely resolve a dispute with a bettor concerning the licensee’s sports wagering operation or payment of alleged winnings within 7 days after receiving the complaint.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall maintain, in a retrievable format approved by the Commission, a copy of all bettor complaints and all documentation of the licensee’s response.</text> </paragraph> <paragraph num="C."> <text>On receipt of a complaint, the Commission shall investigate and notify the bettor and sports wagering licensee of its determination.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".38" heading="Acceptance of Tips or Gratuities."> <paragraph num="A."> <text>Except as otherwise provided in this regulation:</text> <paragraph num="(1)"> <text>A supervisory sports wagering employee of a sports wagering licensee is prohibited from soliciting or accepting a tip or gratuity directly from a bettor; and</text> </paragraph> <paragraph num="(2)"> <text>A sports wagering employee is prohibited from soliciting a tip or gratuity from a bettor.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering licensee may permit an employee who is authorized to accept a gratuity from a bettor to accept a sports wagering ticket if the sports wagering ticket is redeemed:</text> <paragraph num="(1)"> <text>At the cashiers’ cage; and</text> </paragraph> <paragraph num="(2)"> <text>With approval of the sports wagering employee’s department supervisor, if the amount of the sports wagering ticket exceeds $100.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".39" heading="Promotional Play."> <paragraph num="A."> <text>A sports wagering licensee may:</text> <paragraph num="(1)"> <text>Issue promotional play if it is not awarded as cashable credit; and</text> </paragraph> <paragraph num="(2)"> <text>Utilize a promotional play system meeting the requirements of this subtitle.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering licensee may not issue to a bettor promotional play equaling or exceeding $5,000 per wagering day without approval from the chief executive or the chief executive’s designee.</text> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall immediately report to the Commission evidence that a promotional play instrument has been counterfeited, tampered with, or altered in any way which would affect the integrity, fairness, or reliability of the promotional play instrument.</text> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall submit to the Commission in a form and in accordance with a time frame specified by the Commission a quarterly report summarizing:</text> <paragraph num="(1)"> <text>Promotional play awarded for the period including:</text> <paragraph num="(a)"> <text>Total amount in promotional play awarded in noncashable credits; and</text> </paragraph> <paragraph num="(b)"> <text>Other forms of promotional play; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Promotional play redeemed by players for the period including:</text> <paragraph num="(a)"> <text>Total amount in promotional play redeemed in noncashable credits; and</text> </paragraph> <paragraph num="(b)"> <text>Other forms of promotional play redeemed.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing:</text> <paragraph num="(1)"> <text>Methods utilized to:</text> <paragraph num="(a)"> <text>Issue promotional play; and</text> </paragraph> <paragraph num="(b)"> <text>Redeem promotional play; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A promotion play instrument including a requirement that it document:</text> <paragraph num="(a)"> <text>Name or trade name of the sports wagering licensee;</text> </paragraph> <paragraph num="(b)"> <text>Amount in noncashable credits;</text> </paragraph> <paragraph num="(c)"> <text>Unique series number automatically generated by the promotional play system;</text> </paragraph> <paragraph num="(d)"> <text>Locations where a promotional instrument may be redeemed and any restrictions applicable to redemption;</text> </paragraph> <paragraph num="(e)"> <text>If applicable, a bar code or magnetic strip which enables the promotional play system to identify the numeric information required by this section; and</text> </paragraph> <paragraph num="(f)"> <text>Notice to the player of the terms of expiration.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Limitation on Free Promotional Play.</text> <paragraph num="(1)"> <text>Through the first full fiscal year of a sports wagering licensee’s operations, a licensee’s proceeds exclude money given away by the licensee as free promotional play and used by bettors to make a sports wager.</text> </paragraph> <paragraph num="(2)"> <text>After the first full fiscal year of a sports wagering licensee’s operations, the amount of money given away as free promotional play in a fiscal year may not exceed a percentage of the licensee’s proceeds received in the prior fiscal year that equates to 20 percent of total sports wagering proceeds that the sports wagering licensee generated in the prior fiscal year.</text> </paragraph> <paragraph num="(3)"> <text>After the first fiscal year of sports wagering activity, the 20 percent cap specified under §F(2) of his regulation includes all revenues generated by casino sports wagering and gaming activities.</text> </paragraph> <paragraph num="(4)"> <text>An amount of money given away as free promotional play in a fiscal year exceeding the percentage defined in §F(2) of this regulation of the sports wagering licensee’s proceeds of the prior fiscal year shall be allocated as proceeds.</text> </paragraph> </paragraph> <paragraph num="G."> <text>No later than 90 days after the end of the fiscal year, a sports wagering licensee shall submit to the Commission a written:</text> <paragraph num="(1)"> <text>Report of its use of free promotional play during the prior fiscal year; and</text> </paragraph> <paragraph num="(2)"> <text>Recommendation for any adjustment to the limitation on free promotional play established under §F(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="H."> <text>For purposes of §§F and G of this regulation, “fiscal year” means the fiscal year of the sports wagering licensee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".40" heading="Security of Funds and Data."> <paragraph num="A."> <text>A sports wagering licensee shall comply with all applicable state and federal requirements for data security.</text> </paragraph> <paragraph num="B."> <text>Unless a bettor provides documentable consent to the sports wagering licensee, the licensee may not share information that could be used to personally identify a bettor or their gaming habits with any third party other than the Commission, law enforcement with a warrant or subpoena, or a credit-reporting agency when determining whether an individual is credit-worthy.</text> </paragraph> <paragraph num="C."> <text>Funds in a bettors user account shall be held either:</text> <paragraph num="(1)"> <text>In trust for the bettor in a segregated account; or</text> </paragraph> <paragraph num="(2)"> <text>In a special-purpose segregated account that is maintained and controlled by a properly constituted corporate entity that is not the sports wagering licensee and whose governing Commission includes one or more corporate directors who are independent of the sports wagering licensee and of any corporation related to or controlled by the sports wagering licensee.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall maintain a reserve in the form of cash, cash equivalents, an irrevocable letter of credit, surety bond set forth in COMAR 36.10.14, or a combination of these in an amount approved by the Commission and sufficient to pay all winnings and awards offered to a winning bettor as described in COMAR 36.10.14.06.</text> </paragraph> <paragraph num="E."> <text>A sports wagering licensee shall implement and prominently publish the following on its platform:</text> <paragraph num="(1)"> <text>Policies that prevent unauthorized withdrawals from a bettors account by a sports wagering licensee or others;</text> </paragraph> <paragraph num="(2)"> <text>Notices that make clear that the funds in the segregated account do not belong to the sports wagering licensee and are not available to creditors other than the bettor whose funds are being held;</text> </paragraph> <paragraph num="(3)"> <text>Policies that prevent commingling of funds in the segregated account with other funds, including funds of the sports wagering licensee;</text> </paragraph> <paragraph num="(4)"> <text>Procedures for responding to and reporting on complaints by bettors that their accounts have been misallocated, compromised, or otherwise mishandled;</text> </paragraph> <paragraph num="(5)"> <text>Procedures that allow a bettor to request withdrawal of funds from their user account, whether such account is open or closed, including:</text> <paragraph num="(a)"> <text>The sports wagering licensee shall honor any bettors request to withdraw funds by the later of 5 days after receipt of the request or 5 days after submission of any tax reporting paperwork required by law;</text> </paragraph> <paragraph num="(b)"> <text>The sports wagering licensee may decline to honor the request for withdrawal of funds for a reasonable investigatory period if it provides notice of the nature of the investigation to the bettor it believes has engaged in either:</text> <paragraph num="(i)"> <text>Fraudulent conduct; or</text> </paragraph> <paragraph num="(ii)"> <text>Other conduct that would put the sports wagering licensee in violation of COMAR 36.10.18; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A request for withdrawal shall be considered honored if it is processed by the sports wagering licensee but delayed by a payment processor or the custodian of a segregated account; and</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Procedures that allow a bettor to permanently close a user account at any time, for any reason, and by any reasonable means, including on any platform the bettor uses to make deposits into a segregated account.</text> </paragraph> </paragraph> <paragraph num="F."> <text>If winnings are awarded to a bettor with a closed account, the winnings shall be distributed by the sports wagering licensee within 7 days.</text> </paragraph> <paragraph num="G."> <text>If an account is closed on the basis of the sports wagering licensee’s good faith belief, after investigation, that the bettor has engaged in fraud or has attempted to engage in behavior that would put the sports wagering licensee in violation of this chapter, these winnings may be withheld and redistributed in a manner that reflects the outcome that would have resulted had that bettor not participated.</text> </paragraph> <paragraph num="H."> <text>If a bettors segregated account remains unclaimed for 3 years after the balances are payable or deliverable to the bettor, the sports wagering licensee shall presume the account to be abandoned and shall report and remit all segregated accounts presumed abandoned to the State Comptroller.</text> </paragraph> <paragraph num="I."> <text>A sports wagering licensee shall prominently publish all contractual terms and conditions and rules of general applicability that affect a bettors segregated account.</text> </paragraph> <paragraph num="J."> <text>Presentation of such terms, conditions, and rules at the time a bettor initially acquires a segregated account may not be deemed sufficient to satisfy the provisions of this subsection.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".41" heading="Consumer Protection."> <paragraph num="A."> <text>Automated Teller Machines.</text> <paragraph num="(1)"> <text>Withdrawal Limits. Exclusive of transaction fees or surcharges, the maximum amount that a bettor may withdraw from a bank account by using an automated teller machine at the location is no more than $2,500 per sports wagering day.</text> </paragraph> <paragraph num="(2)"> <text>Temporary Cash Assistance Prohibited. An automated teller machine or online sports wagering platform may not accept an electronic benefit card, debit card, or similar instrument issued by the Department of Human Services for the purpose of accessing temporary cash assistance.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Promotional Offers. A sports wagering licensee shall, at least 2 days prior to implementing a promotion, submit terms and conditions of each promotion to the Commission and shall include, at a minimum, all of the following:</text> <paragraph num="(1)"> <text>A description of what is being offered as part of the promotion;</text> </paragraph> <paragraph num="(2)"> <text>The dates and times that the promotion is being conducted;</text> </paragraph> <paragraph num="(3)"> <text>The persons who are eligible to participate in the promotion;</text> </paragraph> <paragraph num="(4)"> <text>The required action to receive whatever is being offered as part of the promotion;</text> </paragraph> <paragraph num="(5)"> <text>The procedure to claim or redeem the promotional offer, if applicable;</text> </paragraph> <paragraph num="(6)"> <text>Registration procedures;</text> </paragraph> <paragraph num="(7)"> <text>Limitations on participation;</text> </paragraph> <paragraph num="(8)"> <text>Wagering requirements and limitations by type of game;</text> </paragraph> <paragraph num="(9)"> <text>The order in which funds are used for wagering;</text> </paragraph> <paragraph num="(10)"> <text>Eligible wagers;</text> </paragraph> <paragraph num="(11)"> <text>Any restrictions on the withdrawal of funds;</text> </paragraph> <paragraph num="(12)"> <text>Rules regarding cancellation;</text> </paragraph> <paragraph num="(13)"> <text>The statement If you or someone you know has a gambling problem, help is available. Call 1-800-GAMBLER.; and</text> </paragraph> <paragraph num="(14)"> <text>Any other information the Commission may require.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Promotional Offers — Responsibility of Licensee.</text> <paragraph num="(1)"> <text>A sports wagering licensee is responsible for the terms, conditions, and conduct of promotions it offers, and those that are offered on behalf of the licensee, directly or indirectly, by a sports wagering contractor or marketing affiliate vendor, including:</text> <paragraph num="(a)"> <text>Ensuring that the terms and conditions of all promotions are communicated to bettors by a link posted on the licensee’s home website, and on the home website or any website operated on behalf the licensee by a contractor or vendor;</text> </paragraph> <paragraph num="(b)"> <text>Stating the terms and conditions clearly and in plain language, and displaying them conspicuously so they are readily accessible and available for bettors’ review for the duration of the promotion;</text> </paragraph> <paragraph num="(c)"> <text>Providing a clear and conspicuous method for a bettor to cancel the bettor’s participation in a promotion that utilizes restricted sports wagering credits;</text> </paragraph> <paragraph num="(d)"> <text>When a bettor requests cancellation, informing the bettor of the amount of unrestricted funds that will be returned upon cancellation, and the value of restricted funds that will be removed from the bettor’s sports wagering account; and</text> </paragraph> <paragraph num="(e)"> <text>If a bettor elects to proceed with cancellation, returning unrestricted funds remaining in the bettor’s sports wagering account in accordance with the terms and conditions.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A sports wagering licensee, directly or through a contractor or vendor on behalf of the licensee, may not:</text> <paragraph num="(a)"> <text>Offer or conduct a promotion which violates any federal, State or local law or regulation;</text> </paragraph> <paragraph num="(b)"> <text>When a bettor has met the terms of a promotion, cap or limit a bettor’s winnings earned while participating in the promotion;</text> </paragraph> <paragraph num="(c)"> <text>Include in an advertisement language that suggests the outcome is guaranteed or without risk; or</text> </paragraph> <paragraph num="(d)"> <text>Advertise, market, promote, offer, or conduct sports wagering in a manner that may adversely impact the public or the integrity of sports wagering.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If Agency staff determine that a sports wagering licensee’s promotion may or does adversely impact the public or the integrity of sports wagering, staff may direct the licensee to immediately cease some or all activities related to the promotion, and may take other enforcement action against a licensee, contractor, or vendor.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Sports Wagering Contracts.</text> <paragraph num="(1)"> <text>Defined Terms. In addition to the terms defined in State Government Article, §9-1E-01, Annotated Code of Maryland, and terms defined in this subtitle, in this section the following terms have the meanings indicated:</text> <paragraph num="(a)"> <text>“Agent of a regulated gaming entity” includes a marketing firm or other similar entity contracted to perform gaming-related services for a regulated gaming entity.</text> </paragraph> <paragraph num="(b)"> <text>“Institution of higher education” has the meaning stated in Education Article, §10–101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(c)"> <text>“Regulated gaming entity” means:</text> <paragraph num="(i)"> <text>A mobile sports wagering licensee;</text> </paragraph> <paragraph num="(ii)"> <text>An online sports wagering operator; or</text> </paragraph> <paragraph num="(iii)"> <text>A sports wagering licensee.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>“Sports marketing entity” means a person that contracts with a sports wagering licensee or regulated entity to provide advertising or marketing services for the sports wagering operations of a regulated entity.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Prohibitions.</text> <paragraph num="(a)"> <text>An institution of higher education may not enter into a contract with a regulated gaming entity or an agent of a regulated gaming entity if, under the terms of the contract, the institution of higher education receives a commission, a bonus, or any other incentive payment based on the success of securing student participation in sports wagering or online sports wagering.</text> </paragraph> <paragraph num="(b)"> <text>An institution of higher education may not enter into a contract with a sports marketing entity that enters into a contract with a regulated gaming entity or an agent of a regulated gaming entity if, under the terms of the contract, either the sports marketing entity or the institution of higher education receives a commission, a bonus, or any other incentive payment based on the success of securing student participation in sports wagering or online sports wagering.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A regulated gaming entity may not enter into a contract described in §D (2) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>The prohibition described in §D (2) of this regulation do not preclude contract formation between an institution of higher education and:</text> <paragraph num="(a)"> <text>A regulated gaming entity;</text> </paragraph> <paragraph num="(b)"> <text>An agent of a regulated gaming entity; or</text> </paragraph> <paragraph num="(c)"> <text>A sports marketing entity.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Notwithstanding any other provision of law, a contract formed in accordance with §D(4) of this regulation is subject to public inspection in accordance with the Maryland Public Information Act, General Provisions Article, §4-101, et seq., Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>Mobile sports wagering licensees and online sports wagering operator licensees shall submit written notification to the Commission of any contract it has, or plans to enter into, with a public institution of higher education.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Signage.</text> <paragraph num="(1)"> <text>A sports wagering licensee shall clearly and conspicuously display the licensee’s branding.</text> </paragraph> <paragraph num="(2)"> <text>A Sports Wagering Facility Operator may not display its branding in a manner that provides greater prominence than the Sports Wagering Facility Licensee’s branding.</text> </paragraph> <paragraph num="(3)"> <text>A Sports Wagering Facility Licensee may not advertise in a manner that misleads the public.</text> </paragraph> <paragraph num="(4)"> <text>All signage shall be approved by the Agency.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".42" heading="House Rules."> <text>A sports wagering licensee shall ensure that its house rules are:</text> <paragraph num="A."> <text>Conspicuously displayed in or immediately adjacent to its wagering location;</text> </paragraph> <paragraph num="B."> <text>Posted on its website;</text> </paragraph> <paragraph num="C."> <text>Included in the terms and conditions of use on its sports wagering platform; and</text> </paragraph> <paragraph num="D."> <text>In hard copy, readily available to bettors.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".43" heading="Predatory Marketing Prohibited."> <text>Predatory marketing as defined in COMAR 36.10.01.02B(57) is prohibited.</text> </regulation> <regulation prefix="Regulation" num=".44" heading="Underage Wagering Prohibited."> <text>Sports wagering by an individual younger than 21 years old is prohibited.</text> </regulation> <regulation prefix="Regulation" num=".45" heading="Wind Down and Cessation of Operation."> <paragraph num="A."> <text>Definitions. In this regulation, the following terms have the meaning indicated:</text> <paragraph num="(1)"> <text>“Cease operations” or “cessation of operations” means the date and time after which a sports wagering licensee temporarily or permanently stops accepting wagers in Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Wind down” means the process before and after a cessation of operations by which a sports wagering licensee ends its sports wagering operations in Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering licensee that intends to cease operations shall submit to the Commission notice of its intent to cease operations at least 7 days before its proposed cessation of operations.</text> </paragraph> <paragraph num="C."> <text>No more than 5 business days after submitting notice of its intent to cease operations, a sports wagering licensee shall submit to the Commission a wind down plan that specifies how the licensee will:</text> <paragraph num="(1)"> <text>Announce to its bettors, vendors, and the public when it will cease operations and wind down, including timelines;</text> </paragraph> <paragraph num="(2)"> <text>In clear and conspicuous terms, explain to bettors their rights and remedies associated with the licensee’s cessation of operations and wind down;</text> </paragraph> <paragraph num="(3)"> <text>Distribute winnings to a bettor holding an unredeemed winning sports wagering ticket;</text> </paragraph> <paragraph num="(4)"> <text>Distribute winnings to a bettor holding a sports wagering ticket for sporting events with outcomes that have not yet been determined;</text> </paragraph> <paragraph num="(5)"> <text>Pay all amounts in a bettor’s sports wagering account to the bettor;</text> </paragraph> <paragraph num="(6)"> <text>Close a bettor’s account;</text> </paragraph> <paragraph num="(7)"> <text>Close its platform to further public access;</text> </paragraph> <paragraph num="(8)"> <text>Distribute funds representing unredeemed winning tickets to the Problem Gambling Fund 182 days after the wager outcome has been determined;</text> </paragraph> <paragraph num="(9)"> <text>Transfer funds from bettor accounts to the State Comptroller if funds cannot be paid to the account owner;</text> </paragraph> <paragraph num="(10)"> <text>Satisfy current and future financial and reporting obligations related to its sports wagering operations; and</text> </paragraph> <paragraph num="(11)"> <text>Ensure the Commission has all information necessary to access and use a letter of credit, bond, or similar assurance mechanism to satisfy financial obligations, if needed.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee’s submissions required under §B of this regulation shall include verbatim, the communications it proposes to use to notify bettors of rights and remedies associated with its cessation of operations and wind down.</text> </paragraph> <paragraph num="E."> <text>The Commission may:</text> <paragraph num="(1)"> <text>Approve a sports wagering licensee’s wind down plan;</text> </paragraph> <paragraph num="(2)"> <text>Approve submissions required in the wind down plan;</text> </paragraph> <paragraph num="(3)"> <text>Require changes to a wind down plan; or</text> </paragraph> <paragraph num="(4)"> <text>Reject the wind down plan.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A sports wagering licensee may only notify a bettor after the Commission approves the wind down plan.</text> </paragraph> <paragraph num="G."> <text>At the conclusion of the wind down, a sports wagering licensee shall submit a report to the Commission as notification that it has completed all actions necessary and is terminating all operations in the State.</text> </paragraph> <paragraph num="H."> <text>Nothing in this regulation is intended to change a requirement or obligation imposed under another statute or regulation.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article §§ 10-101 and 26-801; State Government Article, §§ 9-1A- 02, 9-1A- 04, 9-1A- 33, 9-1E-01—9-1E-15; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01— .44 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06P amended effective November 14, 2022 (49:23 Md. R. 997)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20F amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .29B amended effective May 25, 2026 (53:10 Md. R. 459)</annotation> <annotation type="History" subtype="Administrative History">Regulation .29D, E, F adopted effective May 25, 2026 (53:10 Md. R. 459)</annotation> <annotation type="History" subtype="Administrative History">Regulation .34 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .34L adopted effective April 27, 2026 (53:8 Md. R, 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .37 amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .40 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .40E amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> <annotation type="History" subtype="Administrative History">Regulation .40B amended effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .41 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .41E adopted effective May 25, 2026 (53:10 Md. R. 459)</annotation> <annotation type="History" subtype="Administrative History">Regulation .45 adopted effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> <chapter num="14" heading="Sports Wagering Requirements and Limitations"> <regulation prefix="Regulation" num=".01" heading="Authorized Wagers."> <paragraph num="A."> <text>Definition. Unless context or the individual regulation dictates otherwise, for purposes of this regulation, “sports wagering licensee” includes:</text> <paragraph num="(1)"> <text>Sports wagering facility licensee;</text> </paragraph> <paragraph num="(2)"> <text>Mobile sports wagering licensee;</text> </paragraph> <paragraph num="(3)"> <text>Sports wagering facility operator licensee; and</text> </paragraph> <paragraph num="(4)"> <text>Online sports wagering operator licensee.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Type of Event.</text> <paragraph num="(1)"> <text>A sports wagering licensee shall submit to the Commission for approval the events and types of wagers it proposes offering to bettors prior to accepting a sports wagering bet.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may authorize a sports wagering licensee to offer wagering on a sporting event as defined by State Government Article, §9-1E-01, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Verifiable Outcome.</text> <paragraph num="(1)"> <text>In this section, “official league data” means statistics, results, outcomes, and other data relating to a sporting event obtained by a sports wagering licensee under an agreement with a governing entity or an entity expressly authorized by a governing entity for determining the outcome of a wager placed.</text> </paragraph> <paragraph num="(2)"> <text>A sports wagering licensee may use any Commission approved data source for determining the results of sports wagers.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Wager Limits. The maximum wager that may be accepted by any sports wagering licensee from a patron on any one sporting event shall be limited to $5,000,000.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Commission Approval of Specific Bet Types."> <paragraph num="A."> <text>A sports wagering licensee shall submit to the Commission for approval the events and types of wagers it proposes offering to bettors prior to accepting any sports wagering bets.</text> </paragraph> <paragraph num="B."> <text>The Commission may permit a sports wagering licensee to offer wagering on any approved sporting event.</text> </paragraph> <paragraph num="C."> <text>The Commission may permit a sports wagering licensee to offer any of the following types of wagers on the events contained in §B of this regulation:</text> <paragraph num="(1)"> <text>Exchange wagers;</text> </paragraph> <paragraph num="(2)"> <text>In-game wagers;</text> </paragraph> <paragraph num="(3)"> <text>Parlay wagers;</text> </paragraph> <paragraph num="(4)"> <text>Proposition wagers;</text> </paragraph> <paragraph num="(5)"> <text>Straight wagers;</text> </paragraph> <paragraph num="(6)"> <text>Pools; and</text> </paragraph> <paragraph num="(7)"> <text>Other types of wagers as approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall make available to bettors a clear explanation of all types of wagers permitted by the Commission and events on which those wagers are permitted.</text> </paragraph> <paragraph num="E."> <text>A sports wagering licensee may place a layoff wager with another sports wagering licensee or located in the State for the purpose of offsetting bettor wagers provided that:</text> <paragraph num="(1)"> <text>The sports wagering licensee placing the layoff wager discloses its identity to the sports wagering licensee receiving the layoff wager; and</text> </paragraph> <paragraph num="(2)"> <text>The receiving sports wagering licensee agrees to accept the layoff wager after receiving notification of the identity of the sports wagering licensee placing the layoff wager.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Prohibited Wagers."> <paragraph num="A."> <text>Sports wagering activity may not involve:</text> <paragraph num="(1)"> <text>Wagering on a high school athletic event governed by the Maryland Interscholastic Athletic Association, Maryland Public Secondary Schools Athletic Association, or a similar sports governing entity;</text> </paragraph> <paragraph num="(2)"> <text>Except for an amateur athletic event specifically approved by the Commission, wagering on an amateur athletic event; or</text> </paragraph> <paragraph num="(3)"> <text>Any other wagering activity that is prohibited by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering licensee may not accept a wager that the licensee knew or should have known:</text> <paragraph num="(1)"> <text>Involves cheating;</text> </paragraph> <paragraph num="(2)"> <text>Was made by an athlete on an athletic event governed by the same governing entity under which the athlete competes;</text> </paragraph> <paragraph num="(3)"> <text>Was made by a person who holds a position of authority or influence over the participants in a sporting event or is professionally connected to an athletic event or governing entity, including a:</text> <paragraph num="(a)"> <text>Referee;</text> </paragraph> <paragraph num="(b)"> <text>Official;</text> </paragraph> <paragraph num="(c)"> <text>Coach;</text> </paragraph> <paragraph num="(d)"> <text>Manager;</text> </paragraph> <paragraph num="(e)"> <text>Handler;</text> </paragraph> <paragraph num="(f)"> <text>Trainer;</text> </paragraph> <paragraph num="(g)"> <text>Medical professional; or</text> </paragraph> <paragraph num="(h)"> <text>Person with access to non-public information about a sporting event that is overseen by the governing entity;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Was made by an independent evaluator;</text> </paragraph> <paragraph num="(5)"> <text>Was made by a person who is placing a wager on behalf, or for the benefit, of a person that is prohibited from participating in sports wagering under applicable law or regulation; or</text> </paragraph> <paragraph num="(6)"> <text>Encourages or instructs a bettor to structure a wager to circumvent applicable law or regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering licensee may not:</text> <paragraph num="(1)"> <text>Unless it immediately issues a sports wagering ticket detailing the wager after accepting money to fund the wager, accept or hold cash or a cash equivalent to fund a wager that will be placed if a specified future contingency occurs;</text> </paragraph> <paragraph num="(2)"> <text>Accept a wager that is not authorized by the Commission; or</text> </paragraph> <paragraph num="(3)"> <text>Accept a wager on:</text> <paragraph num="(a)"> <text>Injuries;</text> </paragraph> <paragraph num="(b)"> <text>Penalties;</text> </paragraph> <paragraph num="(c)"> <text>Player disciplinary rulings;</text> </paragraph> <paragraph num="(d)"> <text>Replay reviews; and</text> </paragraph> <paragraph num="(e)"> <text>Any other types or forms of wagering that are contrary to public policy or unfair to bettors.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee may not accept or facilitate a wager:</text> <paragraph num="(1)"> <text>On a sporting event not approved by the Commission under this regulation;</text> </paragraph> <paragraph num="(2)"> <text>From an excluded individual;</text> </paragraph> <paragraph num="(3)"> <text>From a person who is placing the wager in violation of applicable law or regulation; or</text> </paragraph> <paragraph num="(4)"> <text>From any employee of a sports wagering licensee or sports wagering operator, on the premises or platform of the employee's employer, that may not participate in sports wagering because the person:</text> <paragraph num="(a)"> <text>Is licensed by the Commission under State Government Article, Title 9, Subtitles 9-1A or 9-1E, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>Is an affiliate or agent of a sports wagering licensee or online sports wagering operator.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>The prohibition under §D(4) of this regulation is not applicable to persons who are registered or certified as a vendor under COMAR 36.10.06.11.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Limits on Accepting Wagers."> <paragraph num="A."> <text>A sports wagering platform shall be capable of allowing a registered bettor to establish the following responsible wagering limits:</text> <paragraph num="(1)"> <text>A deposit limit on a daily, weekly and monthly basis that specifies the maximum amount of money a registered bettor may deposit into their sports wagering account during a particular period of time;</text> </paragraph> <paragraph num="(2)"> <text>A limit on the amount wagered or money lost within a daily, weekly or monthly basis that:</text> <paragraph num="(a)"> <text>Renders the registered bettor unable to place an additional wager for the remainder of the time selected once the registered bettor reaches the loss limit; and</text> </paragraph> <paragraph num="(b)"> <text>Does not allow a wager placed prior to reaching the loss limit to be cancelled or refunded;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A limit on the amount of money wagered within a daily, weekly or monthly basis that renders the registered bettor unable to place an additional wager for the remainder of the time selected once the registered bettor reaches the wager limit;</text> </paragraph> <paragraph num="(4)"> <text>A limit on the maximum amount of a single wager;</text> </paragraph> <paragraph num="(5)"> <text>A time-based limit that specifies the maximum amount of time, measured hourly from the registered bettor’s login to log off, in which a registered bettor may engage in sports wagering on a daily basis;</text> </paragraph> <paragraph num="(6)"> <text>A temporary suspension of sports wagering through the sports wagering account for the number of days selected by the registered bettor; and</text> </paragraph> <paragraph num="(7)"> <text>A mechanism by which a registered bettor may change the limits of §A(1)—(6) of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notwithstanding any other provision in this section, the registered bettor may not change wagering limits while a sports wagering account is suspended.</text> </paragraph> <paragraph num="C."> <text>An increase to financial limits in §A of this regulation may not become effective until after the time period of the previous limit has expired.</text> </paragraph> <paragraph num="D."> <text>A decrease to the chronological limits in §A of this regulation may not be effective later than the registered bettor’s next login.</text> </paragraph> <paragraph num="E."> <text>A self-imposed limitation established by a bettor may not replace or override a more restrictive limitation imposed by a licensee or these regulations.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Funding Wagers."> <paragraph num="A."> <text>A bettor’s sports wagering account may be funded by:</text> <paragraph num="(1)"> <text>A cash deposit made directly with a sports wagering licensee;</text> </paragraph> <paragraph num="(2)"> <text>A cash equivalent, personal check, or wire transfer made directly or mailed to the sports wagering licensee;</text> </paragraph> <paragraph num="(3)"> <text>A bettor’s debit card or prepaid card;</text> </paragraph> <paragraph num="(4)"> <text>A bettor’s deposit of a winning sports wagering ticket at a sports wagering facility approved by the Commission;</text> </paragraph> <paragraph num="(5)"> <text>A cash complimentary, promotional credit, or bonus credit;</text> </paragraph> <paragraph num="(6)"> <text>If there is documented notification to the bettor, an adjustment made by a sports wagering licensee following the resolution of a dispute; or</text> </paragraph> <paragraph num="(7)"> <text>Any other means as approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>ACH Transfer.</text> <paragraph num="(1)"> <text>If a sports wagering licensee has security measures and controls approved by the Commission to prevent and detect fraud, it may accept an ACH transfer to fund a wager.</text> </paragraph> <paragraph num="(2)"> <text>If a bettor has successfully deposited funds through an ACH transfer on a previous occasion with no outstanding chargebacks, a sports wagering licensee is not required to consider one failed ACH deposit attempt as fraudulent.</text> </paragraph> <paragraph num="(3)"> <text>If a sports wagering licensee suspects fraud after a bettor’s multiple failed ACH deposit attempts, the sports wagering licensee:</text> <paragraph num="(a)"> <text>May temporarily freeze or suspend the bettor’s account to investigate; and</text> </paragraph> <paragraph num="(b)"> <text>If the sports wagering licensee determines that fraud has been attempted or occurred, suspend the bettor’s account.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering licensee may not:</text> <paragraph num="(1)"> <text>Extend credit to a bettor; or</text> </paragraph> <paragraph num="(2)"> <text>Allow the deposit of funds into a sports wagering account that are derived from the extension of credit by an affiliate or agent of the sports wagering licensee.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A bettor’s sports wagering account:</text> <paragraph num="(1)"> <text>May not have a negative account balance; and</text> </paragraph> <paragraph num="(2)"> <text>May not accept a wager if the account does not have funds sufficient to pay for the wager.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The sports wagering licensee shall update bettor account balances after each bet settles to reflect the funds available for any future wagers the bettor may choose to place.</text> </paragraph> <paragraph num="F."> <text>Adjustment to a sports wagering account for an amount of $500 or under shall be periodically reviewed by supervisory personnel as set forth in the sports wagering licensee’s internal controls.</text> </paragraph> <paragraph num="G."> <text>Supervisory personnel shall authorize an adjustment for an amount above $500 before the adjustment may be entered into the bettors’ account.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Reserve."> <paragraph num="A."> <text>A sports wagering licensee shall maintain a reserve in cash, cash equivalents, irrevocable letter of credit, surety bond set forth in §F of this regulation, or a combination thereof in an amount approved by the Commission to cover the outstanding liability of the sports wagering licensee to bettors.</text> </paragraph> <paragraph num="B."> <text>Except for funds held in the reserve account that exceed the licensee’s reserve requirement specified in §C of this regulation, a sports wagering licensee may not remove, release, or withdraw funds from its reserve without the written approval of the Commission..</text> </paragraph> <paragraph num="C."> <text>The amount in the reserve shall be at least $500,000 and equal or exceed the aggregate sum of:</text> <paragraph num="(1)"> <text>The total amount of funds to cover the potential liability for all wagers accepted by the sports wagering licensee on sporting events with outcomes that have not been determined; and</text> </paragraph> <paragraph num="(2)"> <text>Money owed but unpaid by the sports wagering licensee to bettors on winning wagers.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall ensure that the reserve is held:</text> <paragraph num="(1)"> <text>By a financial institution insured by the Federal Deposit Insurance Corporation and licensed to transact business in the State; or</text> </paragraph> <paragraph num="(2)"> <text>For sports wagering facility licensee, in cash held on facility premises.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Calculate its reserve requirements each day; and</text> </paragraph> <paragraph num="(2)"> <text>If the sports wagering licensee determines its reserve is insufficient to cover the requirement of this regulation, notify the Commission in writing:</text> <paragraph num="(a)"> <text>Within 24 hours of the deficiency; and</text> </paragraph> <paragraph num="(b)"> <text>The steps to be taken to remedy the deficiency.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>A sports wagering licensee may satisfy the reserve requirements in this regulation if the licensee adds sufficient funds to cover the calculated requirement prior to the end of the following business day.</text> </paragraph> <paragraph num="G."> <text>Surety Bonds.</text> <paragraph num="(1)"> <text>The sports wagering licensee may obtain a single surety bond or multiple bonds to be used as a cash reserve to pay the current outstanding liability of all winnings and awards offered to a winning bettor as set forth in this regulation and COMAR 36.10.13.40.</text> </paragraph> <paragraph num="(2)"> <text>A surety bond shall:</text> <paragraph num="(a)"> <text>Be in a form approved by the Agency and:</text> <paragraph num="(i)"> <text>Identify the sports wagering licensee or applicant as the principal of the surety bond;</text> </paragraph> <paragraph num="(ii)"> <text>Indicate what license type and class the sports wagering licensee or applicant offers or intends to offer in the State of Maryland;</text> </paragraph> <paragraph num="(iii)"> <text>Provide that the surety bond is protected against claims by creditors of the principal, including the patrons for whose benefit and protection the reserve account is established;</text> </paragraph> <paragraph num="(iv)"> <text>Allow the Director of the Agency or the Director’s designee to make demand upon the surety for the payment of valid winning amounts not paid by the principal;</text> </paragraph> <paragraph num="(v)"> <text>Require the sports wagering licensee to provide an updated listing of winning wagers that form the basis of the reserve to the Agency within 72 hours;</text> </paragraph> <paragraph num="(vi)"> <text>Include a statement that within 24 hours of receiving the updated listing of winning wagers that form the basis of the reserve that the Agency will commence review of the list of outstanding patron accounts;</text> </paragraph> <paragraph num="(vii)"> <text>Include a statement that within 10 business days of the demand made by the Director or the Director’s designee the processing of the payment will commence;</text> </paragraph> <paragraph num="(viii)"> <text>Include a statement that within 60 days of the demand made by the Director or the Director’s designee issuance of the payment shall occur; and</text> </paragraph> <paragraph num="(ix)"> <text>Include a statement that if the surety provides written notice of withdrawal, the withdrawal is not effective until 60 days have elapsed after receipt of the notice.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Be by and between the sports wagering licensee or applicant and the surety company;</text> </paragraph> <paragraph num="(c)"> <text>Identify the Agency as the obligee;</text> </paragraph> <paragraph num="(d)"> <text>Specify that it guarantees the portion of the sports wagering licensee’s reserve that is not covered by a cash reserve; and</text> </paragraph> <paragraph num="(e)"> <text>Specify that the surety bond is valid for at least the 5-year license term.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The sports wagering licensee or applicant shall provide the original surety bond to the Agency.</text> </paragraph> <paragraph num="(4)"> <text>Agency staff may not issue a sports wagering license unless the applicant or awardee has provided Agency staff with a copy of any surety bond that comprises any portion of the reserve the sports wagering licensee is required to hold.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Complaint by an Interested Party."> <paragraph num="A."> <text>Definitions. In this regulation, the following terms have the meanings indicated:</text> <paragraph num="(1)"> <text>“Interested party” means:</text> <paragraph num="(a)"> <text>A sports wagering licensee;</text> </paragraph> <paragraph num="(b)"> <text>A professional sports team, or its:</text> <paragraph num="(i)"> <text>League;</text> </paragraph> <paragraph num="(ii)"> <text>Association; or</text> </paragraph> <paragraph num="(iii)"> <text>Governing entity; or</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>An institution of higher education.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Public hearing” means the portion of a Commission meeting during which the Commission will consider an interested party’s complaint about a matter described in State Government, §9-1E-11(e)(2), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Complaint.</text> <paragraph num="(1)"> <text>An interested party may submit a complaint to the Commission requesting the Commission to prohibit a:</text> <paragraph num="(a)"> <text>Type or form of sports wagering; or</text> </paragraph> <paragraph num="(b)"> <text>Category of individuals wagering on a sporting event.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Time for Submission.</text> <paragraph num="(a)"> <text>The complaint shall be submitted at least 15 days before commencement of the wagering activity that is the subject of the complaint.</text> </paragraph> <paragraph num="(b)"> <text>Except for recurring events, the Commission shall immediately dismiss, and may not consider, a complaint that is submitted less than 15 days before commencement of the wagering activity that is the subject of the complaint.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The complaint shall be in writing, and specifically describe the type, form, or category of wager, including:</text> <paragraph num="(a)"> <text>A description of the sporting event for which the wager is offered, including:</text> <paragraph num="(i)"> <text>Date;</text> </paragraph> <paragraph num="(ii)"> <text>Time;</text> </paragraph> <paragraph num="(iii)"> <text>Place; and</text> </paragraph> <paragraph num="(iv)"> <text>Participants in the sporting event;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The name and contact information for the licensee or person offering the wager;</text> </paragraph> <paragraph num="(c)"> <text>The specific reasons why the complainant believes that the type, form, or category of wager:</text> <paragraph num="(i)"> <text>Is contrary to public policy;</text> </paragraph> <paragraph num="(ii)"> <text>Is unfair to consumers;</text> </paragraph> <paragraph num="(iii)"> <text>Affects the integrity of a particular sport; or</text> </paragraph> <paragraph num="(iv)"> <text>Affects the integrity of the sports wagering industry; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Any other information the Commission requires.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Review of Complaint.</text> <paragraph num="(1)"> <text>Commission staff shall review the complaint for compliance with §B of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>Missing Information.</text> <paragraph num="(a)"> <text>Commission staff shall notify the complainant if the complaint is missing information required in §B of this regulation, or if additional information is required to review the complaint.</text> </paragraph> <paragraph num="(b)"> <text>The complainant shall provide Commission staff with any missing or required information within 5 days of the notice in §C(2)(a) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Commission staff shall dismiss the complaint if:</text> <paragraph num="(1)"> <text>The complainant fails to timely provide information as required in §C of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>The person that is allegedly conducting the wagering activity that is the subject of the complaint is not a licensee;</text> </paragraph> <paragraph num="(3)"> <text>The wagering activity is a prohibited wager under COMAR 36.10.14; or</text> </paragraph> <paragraph num="(4)"> <text>The wagering activity occurs before the next scheduled Commission meeting.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Public Hearing.</text> <paragraph num="(1)"> <text>The portion of the Commission meeting pertaining to the agenda item of the complaint shall be conducted as part of a Commission open meeting under COMAR 36.01.02.03.</text> </paragraph> <paragraph num="(2)"> <text>A public hearing on the complaint of an interested party is not a hearing under COMAR 36.01.02.06.</text> </paragraph> <paragraph num="(3)"> <text>If the complaint has not been dismissed under §C of this regulation, Commission staff:</text> <paragraph num="(a)"> <text>Shall place the complaint on the agenda item of the next Commission meeting and post notice of the meeting in the ordinary course of business;</text> </paragraph> <paragraph num="(b)"> <text>Shall attempt to contact the complainant and the licensee or person offering the wager of the meeting; and</text> </paragraph> <paragraph num="(c)"> <text>May notify any interested party of the complaint and meeting.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>An individual who wishes to speak during the portion of the Commission meeting pertaining to the agenda item of the complaint:</text> <paragraph num="(a)"> <text>Is encouraged to contact the Commission staff who notified the individual of the meeting to advise, in advance of the meeting, whether they plan to attend; and</text> </paragraph> <paragraph num="(b)"> <text>Is limited to the time limit established by the Chair.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>If the Commission meeting will be held virtually:</text> <paragraph num="(a)"> <text>The individual shall contact the Commission staff who notified the individual of the meeting to advise, in advance of the meeting, the telephone number, or other means acceptable to the Commission, by which they will join the virtual meeting; and</text> </paragraph> <paragraph num="(b)"> <text>An individual who has not contacted Commission staff as required in §E(5)(a) of this regulation may not participate in the meeting.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>During discussion of the agenda item pertaining to the complaint, the Commission shall:</text> <paragraph num="(a)"> <text>Receive a report from Commission staff;</text> </paragraph> <paragraph num="(b)"> <text>Hear the views if interested parties, or individuals who have arranged to join the meeting under §E(5)(a) of this regulation; and</text> </paragraph> <paragraph num="(c)"> <text>Decide whether good cause is shown to prohibit the wagering activity that is the subject of the complaint.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>If good cause is shown, the Commission shall notify the complainant and licensee of the decision and take appropriate action.</text> </paragraph> <paragraph num="(8)"> <text>If good cause is not shown, the Commission shall notify the complainant and licensee of the decision.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Commission’s decision on a complaint under this regulation does not give rise to an appeal right under State Government Article, Title 10, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1E-01—9-1E-15, and 9-1E-17, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B amended effective April 27, 2026 (53:8 Md. R. 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06F adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); adopted permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06F adopted effective July 7, 2025 (52:13 Md. R. 657)</annotation> </annotations> </chapter> <chapter num="15" heading="Sports Wagering Licensee Facility Standards"> <regulation prefix="Regulation" num=".01" heading="Applicability."> <text>This chapter applies only to sports wagering facilities.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Hours of Operation."> <text>A facility may operate during the hours approved by the Commission.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Facility Design Standards."> <text>The awardee of a Class A or Class B license shall, at its own expense, construct its facility in accordance with requirements established by the Commission, including:</text> <paragraph num="A."> <text>For any sports wagering licensee that does not currently hold a video lottery facility operator’s license, at least 100 square feet of office space or an amount approved by Agency staff that is available for use by the Agency staff and equipped with:</text> <paragraph num="(1)"> <text>Partitioned workspace, telephones, all-in-one printer, and office supplies sufficient to meet the Commission staffs operational needs;</text> </paragraph> <paragraph num="(2)"> <text>A secure high-speed wireless internet connection; and</text> </paragraph> <paragraph num="(3)"> <text>Computer terminals permitting read only access by authorized Commission staff to any sports wagering platform, promotional play system, point of sale system, or surveillance system used by the sports wagering licensee;</text> </paragraph> </paragraph> <paragraph num="B."> <text>A surveillance system approved in writing by [the Commission] Agency staff that:</text> <paragraph num="(1)"> <text>Is configured to provide surveillance of all sports wagering related activities within the facility in accordance with standards established by the Commission or Agency staff;</text> </paragraph> <paragraph num="(2)"> <text>Is enabled with digital video recording capabilities in accordance with standards established by the Commission; and</text> </paragraph> <paragraph num="(3)"> <text>Provides Agency staff with timely and unfettered access to its surveillance system;</text> </paragraph> </paragraph> <paragraph num="C."> <text>An alarm system connected to all emergency exits from the facility which:</text> <paragraph num="(1)"> <text>Produces a distinguishable warning sound that is discernible in the vicinity of an exit when the emergency door is opened; and</text> </paragraph> <paragraph num="(2)"> <text>Requires deactivation and reset by means of a key or alternative locking mechanism maintained and controlled by the security department;</text> </paragraph> </paragraph> <paragraph num="D."> <text>Any signage required by Agency staff;</text> </paragraph> <paragraph num="E."> <text>Communication systems capable of effecting timely communication between the facility and the Commission, law enforcement exercising proper jurisdiction over the facility, and emergency first responders; and</text> </paragraph> <paragraph num="F."> <text>Any other equipment or design feature required by the Commission or Agency staff.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Sports Wagering Facility Plan."> <paragraph num="A."> <text>This regulation is only applicable to the awardee of a sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>At least 60 days before sports wagering operations are to commence, a licensee shall submit a floor plan depicting its facility and all restricted areas to Agency staff for review and written approval.</text> </paragraph> <paragraph num="C."> <text>An awardee may not commence operations until its facility plan is approved in writing by Agency staff.</text> </paragraph> <paragraph num="D."> <text>A facility plan that an awardee or licensee submits to Agency staff shall:</text> <paragraph num="(1)"> <text>Be drawn to 1/8-inch scale, unless another scale is approved by Agency staff;</text> </paragraph> <paragraph num="(2)"> <text>Depict the facility with a notation as to:</text> <paragraph num="(a)"> <text>Total square feet;</text> </paragraph> <paragraph num="(b)"> <text>Perimeter of the facility;</text> </paragraph> <paragraph num="(c)"> <text>Each ATM and bill breaker, ticket redemption unit and kiosk; and</text> </paragraph> <paragraph num="(d)"> <text>Each security department zone, including a notation as to whether it is a fixed or roving post;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Depict any restricted areas within the facility with a notation identifying:</text> <paragraph num="(a)"> <text>Cashiers cage, any satellite cashiers cage, and ancillary offices, inclusive of each cashiers cage window location and location number;</text> </paragraph> <paragraph num="(b)"> <text>Count rooms and any trolley storage areas;</text> </paragraph> <paragraph num="(c)"> <text>Information technology department computer rooms;</text> </paragraph> <paragraph num="(d)"> <text>Surveillance equipment room;</text> </paragraph> <paragraph num="(e)"> <text>Vault and armored car bay facilities, if applicable; and</text> </paragraph> <paragraph num="(f)"> <text>Any area designated as restricted by the awardee or licensee in its approved internal controls;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Depict each surveillance camera with a notation as to camera type and location number;</text> </paragraph> <paragraph num="(5)"> <text>Depict each automated teller machine installed; and</text> </paragraph> <paragraph num="(6)"> <text>Any other equipment or design feature required by Agency staff.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If a facility includes an outdoor area, in addition to the requirements of §D of this regulation, a licensee shall submit to Agency staff a facility plan that includes:</text> <paragraph num="(1)"> <text>The amenities that the licensee intends to offer in the outdoor area;</text> </paragraph> <paragraph num="(2)"> <text>An affidavit from the licensees chief executive officer attesting that the outdoor area and its intended use meet all applicable local and State requirements; and</text> </paragraph> <paragraph num="(3)"> <text>A plan for bettor and equipment safety during inclement weather.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A licensee may not implement any change to its approved wagering facility plan without the prior written approval of Agency staff.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="16" heading="Wagering Using Online, Web-based, or Mobile Applications"> <regulation prefix="Regulation" num=".01" heading="General."> <text>Unless context or the individual regulation dictates otherwise, for purposes of this regulation, “sports wagering licensee” includes:</text> <paragraph num="A."> <text>Mobile sports wagering licensee; and</text> </paragraph> <paragraph num="B."> <text>Online sports wagering operator licensee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="One Website."> <text>A mobile sports wagering licensee may utilize only one individually branded website and an accompanying application to accept and pay sports wagers.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Geolocation Requirements."> <text>A sports wagering licensee and its agents, contractors, and vendors shall ensure that all of its sports wagers are initiated, received, and completed within the State and that only intermediate routing of a sports wager occurs outside the State.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Periodic Review of Systems."> <text>A sports wagering licensee and its agents, contractors, and vendors shall periodically review their geolocation technology systems to ensure compliance with this chapter.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Age Verification."> <paragraph num="A."> <text>A sports wagering licensee shall provide for age verification measures to block access to and prevent sports wagers by an individual younger than 21 years old.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall provide for identity verification through secure online databases.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Security Mechanisms."> <text>A sports wagering licensee shall have security mechanisms that ensure the confidentiality of personally identifiable information except as otherwise required by law or authorized by this subtitle.</text> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> </annotations> </chapter> <chapter num="17" heading="Sports Wagering Equipment"> <regulation prefix="Regulation" num=".01" heading="Registration."> <paragraph num="A."> <text>The Commission shall maintain a register of the serial number of all kiosks used for sports wagering in the State.</text> </paragraph> <paragraph num="B."> <text>If a sports wagering facility has multiple sports wagering kiosks, the facility shall ensure that each kiosk is individually identifiable by surveillance.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Testing."> <text>The Commission shall require that sports wagering equipment be tested by an independent certified testing laboratory:</text> <paragraph num="A."> <text>For accuracy;</text> </paragraph> <paragraph num="B."> <text>To ensure that the sports wagering equipment is in compliance with all statutes, regulations and Commission directives applicable to such equipment; and</text> </paragraph> <paragraph num="C."> <text>For any other function that the Commission determines may be necessary to validate the functionality and performance of the sports wagering equipment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Request for Authorization."> <paragraph num="A."> <text>A sports wagering licensee shall obtain prior written Commission authorization before:</text> <paragraph num="(1)"> <text>Placing sports wagering equipment into operation;</text> </paragraph> <paragraph num="(2)"> <text>Relocating sports wagering equipment within the facility;</text> </paragraph> <paragraph num="(3)"> <text>Changing a configuration;</text> </paragraph> <paragraph num="(4)"> <text>Performing a substantial replacement of parts;</text> </paragraph> <paragraph num="(5)"> <text>Implementing any variation, composite, or new feature of sports wagering equipment; or</text> </paragraph> <paragraph num="(6)"> <text>Performing any other action that materially alters or interrupts the operation of the sports wagering equipment.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Before the Commission may authorize an action described in §A of this regulation, a sports wagering licensee shall submit to the Commission written notice of the request that includes:</text> <paragraph num="(1)"> <text>Description of proposed action;</text> </paragraph> <paragraph num="(2)"> <text>Location of proposed action;</text> </paragraph> <paragraph num="(3)"> <text>Start and end dates and times of the proposed action; and</text> </paragraph> <paragraph num="(4)"> <text>Any other information requested by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notice of Changes. A sports wagering licensee shall promptly provide the Commission with written notice of any changes to the information already submitted under §A or B of this regulation.</text> </paragraph> <paragraph num="D."> <text>In response to a request for authorization, the Commission may:</text> <paragraph num="(1)"> <text>Impose additional requirements on the sports wagering licensee before authorizing the request;</text> </paragraph> <paragraph num="(2)"> <text>Deny the request; or</text> </paragraph> <paragraph num="(3)"> <text>Approve the request.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Notice of Inaction. A sports wagering licensee shall provide written notice to the Commission if the action is not completed as approved by the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Change Management."> <text>Sports wagering licensees shall adhere to a Change Management Plan issued by the Commission.</text> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 adopted as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> </annotations> </chapter> <chapter num="18" heading="Sports Wagering Technical Standards"> <regulation prefix="Regulation" num=".01" heading="General."> <text>Unless context or the individual regulation dictates otherwise, for purposes of COMAR 36.10.18, “sports wagering licensee” includes:</text> <paragraph num="A."> <text>Mobile sports wagering licensee;</text> </paragraph> <paragraph num="B."> <text>Online sports wagering operator licensee;</text> </paragraph> <paragraph num="C."> <text>Sports wagering facility licensee; and</text> </paragraph> <paragraph num="D."> <text>Sports wagering facility operator licensee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definition."> <text>In this chapter, “past posting” means a wager that was made after the result of an event is accepted or after the selected participant has gained a material advantage.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Sports Wagering Platform Requirements."> <paragraph num="A."> <text>All sports wagers shall be initiated, received, and otherwise made within the State unless otherwise licensed by federal law.</text> </paragraph> <paragraph num="B."> <text>A sports wagering licensee or applicant shall submit its sports wagering platform and sports wagering equipment to an independent certified testing laboratory prior to their use for sports wagering.</text> </paragraph> <paragraph num="C."> <text>Sports wagering platform documentation shall include:</text> <paragraph num="(1)"> <text>A complete, comprehensive, technically accurate description and explanation of the sports wagering platform;</text> </paragraph> <paragraph num="(2)"> <text>A detailed operating procedures of the sports wagering platform; and</text> </paragraph> <paragraph num="(3)"> <text>A description of the risk management framework, including:</text> <paragraph num="(a)"> <text>User access controls for all sports wagering licensee personnel;</text> </paragraph> <paragraph num="(b)"> <text>Information regarding segregation of duties;</text> </paragraph> <paragraph num="(c)"> <text>Information regarding automated risk-management procedures;</text> </paragraph> <paragraph num="(d)"> <text>Information regarding identifying and reporting fraud and suspicious activity;</text> </paragraph> <paragraph num="(e)"> <text>Information regarding technical safeguards that protect the sports wagering platform from unauthorized access and loss of data;</text> </paragraph> <paragraph num="(f)"> <text>Controls to ensure compliance with all statutory and other legal requirements;</text> </paragraph> <paragraph num="(g)"> <text>A description of AML compliance standards;</text> </paragraph> <paragraph num="(h)"> <text>A description of all software applications that comprise the sports wagering platform;</text> </paragraph> <paragraph num="(i)"> <text>A description of wagers available to be offered by the sports wagering platform;</text> </paragraph> <paragraph num="(j)"> <text>A description of all third-party systems proposed for utilization;</text> </paragraph> <paragraph num="(k)"> <text>A description of the method proposed by the sports wagering licensee to prevent cheating; and</text> </paragraph> <paragraph num="(l)"> <text>Any other information imposed by the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Upon request, a sports wagering licensee shall promptly provide the Commission with relevant reports and documentation that shall include, at a minimum:</text> <paragraph num="(1)"> <text>Complete, comprehensive, technically accurate description and explanation of the sports wagering platform;</text> </paragraph> <paragraph num="(2)"> <text>The ability to query or sort wagering data; and</text> </paragraph> <paragraph num="(3)"> <text>The ability to export wagering data.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee or a supplier providing a licensee’s sports wagering platform shall maintain all transactional wagering data for a period of 5 years.</text> </paragraph> <paragraph num="F."> <text>The house rules that apply to wagers placed on a sports wagering platform shall be readily available to a bettor.</text> </paragraph> <paragraph num="G."> <text>For each wager, a sports wagering platform shall be capable of recording the:</text> <paragraph num="(1)"> <text>Description and alphanumeric identifier of the sporting event;</text> </paragraph> <paragraph num="(2)"> <text>Wager selection;</text> </paragraph> <paragraph num="(3)"> <text>Type of wager;</text> </paragraph> <paragraph num="(4)"> <text>Amount of wager;</text> </paragraph> <paragraph num="(5)"> <text>Date and time of the wager;</text> </paragraph> <paragraph num="(6)"> <text>Unique wager identifiers;</text> </paragraph> <paragraph num="(7)"> <text>Bettor identification number;</text> </paragraph> <paragraph num="(8)"> <text>Current wager status;</text> </paragraph> <paragraph num="(9)"> <text>Relevant location information;</text> </paragraph> <paragraph num="(10)"> <text>Results of the wager;</text> </paragraph> <paragraph num="(11)"> <text>Amount won; and</text> </paragraph> <paragraph num="(12)"> <text>Date and time the winning wager was paid to the bettor.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A sports wagering platform that offers wagering shall be capable of:</text> <paragraph num="(1)"> <text>Accurately and timely updating of odds for wagers;</text> </paragraph> <paragraph num="(2)"> <text>Notifying a bettor of any change in odds that is not beneficial to the bettor while the wager is selected but before it is placed;</text> </paragraph> <paragraph num="(3)"> <text>Allowing bettors to confirm the wager after notification of the odds change; and</text> </paragraph> <paragraph num="(4)"> <text>Freezing or suspending the offering of wagers when necessary.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A sports wagering platform shall be capable of:</text> <paragraph num="(1)"> <text>Creating a wager;</text> </paragraph> <paragraph num="(2)"> <text>Settling a wager;</text> </paragraph> <paragraph num="(3)"> <text>Voiding a wager;</text> </paragraph> <paragraph num="(4)"> <text>Cancelling a wager; and</text> </paragraph> <paragraph num="(5)"> <text>Preventing the acceptance of a wager on a prohibited sporting event.</text> </paragraph> </paragraph> <paragraph num="J."> <text>If a wager is voided or cancelled, a sports wagering platform shall indicate that:</text> <paragraph num="(1)"> <text>The transaction was voided or cancelled;</text> </paragraph> <paragraph num="(2)"> <text>The transaction was rendered nonredeemable;</text> </paragraph> <paragraph num="(3)"> <text>An entry in the system was made indicating the wager was voided or cancelled; and</text> </paragraph> <paragraph num="(4)"> <text>Subject to COMAR 36.10.13.07, the transaction is clearly noted in a permanent record.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Unless approved in advance by the Commission, a sports wagering licensee or an online sports wagering operator may not alter the odds or any other material aspect of the transaction after accepting a wager.</text> </paragraph> <paragraph num="L."> <text>A sports wagering platform shall prevent:</text> <paragraph num="(1)"> <text>The electronic modification of data to facilitate cheating;</text> </paragraph> <paragraph num="(2)"> <text>The past posting of wagers; and</text> </paragraph> <paragraph num="(3)"> <text>The voiding and cancellation of wagers after the outcome of an event is known.</text> </paragraph> </paragraph> <paragraph num="M."> <text>If a bettor has a pending wager and the bettor subsequently self-excludes:</text> <paragraph num="(1)"> <text>The wager may settle; and</text> </paragraph> <paragraph num="(2)"> <text>The funds and account balance shall be returned to the bettor in accordance with the sports wagering licensee’s internal control standards.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Software Validation.</text> <paragraph num="(1)"> <text>At least once every 24 hours and on demand, a sports wagering platform shall perform a software validation on all critical control program components contained on the system to ensure that:</text> <paragraph num="(a)"> <text>There have been no unauthorized modifications; and</text> </paragraph> <paragraph num="(b)"> <text>The software is authentic.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The software validation process shall employ a hash algorithm which produces a message digest of at least 128 bits and includes all critical control program components which may affect wagering operations, including but not limited to:</text> <paragraph num="(a)"> <text>Executables;</text> </paragraph> <paragraph num="(b)"> <text>Libraries;</text> </paragraph> <paragraph num="(c)"> <text>Wagering or system configurations;</text> </paragraph> <paragraph num="(d)"> <text>Operating system files;</text> </paragraph> <paragraph num="(e)"> <text>Components that control required system reporting; and</text> </paragraph> <paragraph num="(f)"> <text>Database elements that affect system operations.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>In the event of a software validation failure, the sports wagering platform shall have the capability to detect if any system component is determined to be invalid.</text> </paragraph> </paragraph> <paragraph num="O."> <text>The sports wagering licensee shall notify the Commission within 12 hours of a validation failure.</text> </paragraph> <paragraph num="P."> <text>A sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Record all validation attempts by the sports wagering platform; and</text> </paragraph> <paragraph num="(2)"> <text>Maintain the recorded attempts for a period of 180 days.</text> </paragraph> </paragraph> <paragraph num="Q."> <text>Data Feeds.</text> <paragraph num="(1)"> <text>A sports wagering platform shall have controls in place to review the accuracy and timeliness of any data feeds used to offer or settle wagers.</text> </paragraph> <paragraph num="(2)"> <text>If an incident or error occurs that results in a loss of communication with the data feeds used to offer or redeem wagers, the sports wagering licensee shall record the error in a log capturing:</text> <paragraph num="(a)"> <text>The date and time of the error;</text> </paragraph> <paragraph num="(b)"> <text>The nature of the error; and</text> </paragraph> <paragraph num="(c)"> <text>A description of its impact on the system’s performance.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The sports wagering licensee shall maintain the information required by §Q(2) for a minimum period of 2 years.</text> </paragraph> </paragraph> <paragraph num="R."> <text>A sports wagering licensee that provides a sports wagering platform shall grant the Commission read only access to the platform in the manner required by the Commission.</text> </paragraph> <paragraph num="S."> <text>In a format required by the Commission, a sports wagering platform shall provide a process for the Commission to query and export all sports wagering platform data.</text> </paragraph> <paragraph num="T."> <text>The Commission may require additional system specifications.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Geolocation Systems."> <paragraph num="A."> <text>A sports wagering licensee shall keep its geolocation system up to date by integrating current solutions in real time that can detect the use of:</text> <paragraph num="(1)"> <text>Remote desktop software;</text> </paragraph> <paragraph num="(2)"> <text>Rootkits;</text> </paragraph> <paragraph num="(3)"> <text>Virtualization; and</text> </paragraph> <paragraph num="(4)"> <text>Any other programs identified by the Commission as having the ability to circumvent geolocation measures.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The sports wagering licensee shall continually review the integrity of the geolocation system to ensure that the system detects and mitigates existing and emerging location fraud risks.</text> </paragraph> <paragraph num="C."> <text>A sports wagering platform shall utilize a geolocation system to:</text> <paragraph num="(1)"> <text>Reasonably detect the physical location of an individual attempting to access the sports wagering platform and place a sports wager; and</text> </paragraph> <paragraph num="(2)"> <text>Monitor and block attempts to place an online sports wager when an individual is not within the State.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The geolocation system required by §C of this regulation shall:</text> <paragraph num="(1)"> <text>Ensure that a bettor:</text> <paragraph num="(a)"> <text>Is located within the State when placing a sports wager; and</text> </paragraph> <paragraph num="(b)"> <text>Can dynamically monitor the bettors location; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Block unauthorized attempts to place a sports wager when an individual is not within the State.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Prior to commencing operations, and annually thereafter, ensure:</text> <paragraph num="(a)"> <text>Its geolocation system is tested by a Commission approved testing laboratory; and</text> </paragraph> <paragraph num="(b)"> <text>A report on the annual testing is submitted to the Commission no later than 120 days after the end of the licensee’s fiscal year;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Ensure that testing of the geolocation system includes:</text> <paragraph num="(a)"> <text>Attempts to place wagers at locations from outside of the State from multiple locations within varying distances from the State border;</text> </paragraph> <paragraph num="(b)"> <text>Attempts to place wagers at locations within the State from multiple locations within varying distances from the State border; and</text> </paragraph> <paragraph num="(c)"> <text>Attempts to place wagers in which the tester crosses the State border;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For all geolocation testing, ensure that the frequency of geolocation check is documented and tested;</text> </paragraph> <paragraph num="(4)"> <text>Ensure that testing confirms that a geolocation check occurs immediately upon a change of IP address;</text> </paragraph> <paragraph num="(5)"> <text>Ensure that testing includes static and mobile connections; and</text> </paragraph> <paragraph num="(6)"> <text>Ensure that testing is completed on all device types using the most prevalent versions available.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A sports wagering licensee shall grant the Commission read only access to its geolocation system as required by the Commission.</text> </paragraph> <paragraph num="G."> <text>In addition to the requirements in this regulation, the Commission may require a sports wagering licensee to implement other geolocation features.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Bettor Accounts."> <paragraph num="A."> <text>Only a registered bettor may place an online wager.</text> </paragraph> <paragraph num="B."> <text>The sports wagering licensee shall record and maintain the information necessary to initiate a bettor account for a period of 5 years.</text> </paragraph> <paragraph num="C."> <text>The information recorded and maintained under §B of this regulation shall include:</text> <paragraph num="(1)"> <text>Bettors legal name;</text> </paragraph> <paragraph num="(2)"> <text>Bettors date of birth;</text> </paragraph> <paragraph num="(3)"> <text>Bettors residential address and mailing address if different;</text> </paragraph> <paragraph num="(4)"> <text>Bettors phone number;</text> </paragraph> <paragraph num="(5)"> <text>Bettors active email address;</text> </paragraph> <paragraph num="(6)"> <text>Bettors social security number or equivalent as approved by the Commission;</text> </paragraph> <paragraph num="(7)"> <text>Verification that the bettor is permitted to place a wager;</text> </paragraph> <paragraph num="(8)"> <text>Sources of identification authentication, which may include:</text> <paragraph num="(a)"> <text>Type and identification number of any government-issued credentials provided; or</text> </paragraph> <paragraph num="(b)"> <text>Other methodology for remote, multi-source authentication including third-party and governmental databases, as approved by the Commission; and</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Any other information required by the Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A sports wagering licensee shall record:</text> <paragraph num="(1)"> <text>A bettors acceptance of the sports wagering licensees:</text> <paragraph num="(a)"> <text>Sports wagering terms and conditions; and</text> </paragraph> <paragraph num="(b)"> <text>Privacy policy; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The bettors acknowledgment that:</text> <paragraph num="(a)"> <text>The bettor has provided the sports wagering licensee accurate information; and</text> </paragraph> <paragraph num="(b)"> <text>The bettor is prohibited from allowing any other person to access or use the bettors bettor account.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Verification of Transactions on a Bettor Account.</text> <paragraph num="(1)"> <text>For each deposit or withdrawal on a bettor account, a sports wagering licensee shall determine if the information provided by the bettor:</text> <paragraph num="(a)"> <text>Is inconsistent with the funding information previously provided by the bettor;</text> </paragraph> <paragraph num="(b)"> <text>Fails to verify the identity of the bettor; or</text> </paragraph> <paragraph num="(c)"> <text>Violates the sports wagering licensees terms and conditions.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Within 24 hours after a condition set forth in §E(1) occurs, the sports wagering licensee shall require the submission of additional information from the bettor that:</text> <paragraph num="(a)"> <text>Verifies the bettors:</text> <paragraph num="(i)"> <text>Identity; or</text> </paragraph> <paragraph num="(ii)"> <text>Fund deposit or withdrawal information; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Remedies the violation of the sports wagering licensees terms and conditions.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the information provided by the bettor pursuant to §E(2) of this regulation does not provide the proper verification or remedy the violation, the sports wagering licensee shall:</text> <paragraph num="(a)"> <text>Immediately suspend the bettor account;</text> </paragraph> <paragraph num="(b)"> <text>Prohibit the bettor from placing any wagers;</text> </paragraph> <paragraph num="(c)"> <text>Submit any winnings attributable to the bettor to the Commission for distribution to the States Problem Gambling Treatment and Support Fund;</text> </paragraph> <paragraph num="(d)"> <text>Refund the balance of deposits made to the account to the source of such deposit or by issuance of a check; and</text> </paragraph> <paragraph num="(e)"> <text>Deactivate the account.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Creation of a Bettor Account.</text> <paragraph num="(1)"> <text>A sports wagering licensee shall notify the bettor of the creation of the bettor account by email, text message, or first-class mail.</text> </paragraph> <paragraph num="(2)"> <text>When a bettor account is created, the bettor or sports wagering licensee shall establish a unique username and password for the bettor authorized to use the bettor account that prevents unauthorized access to the bettor account by an individual other than the bettor.</text> </paragraph> <paragraph num="(3)"> <text>A sports wagering licensee shall implement a required multi-factor authentication process for all bettor accounts.</text> </paragraph> <paragraph num="(4)"> <text>A sports wagering licensee may use a multi-factor authentication process that uses a:</text> <paragraph num="(a)"> <text>One-time password or code sent to a device or account that is confirmed to be owned by the owner of the bettor account;</text> </paragraph> <paragraph num="(b)"> <text>Software token generated from an authentication application;</text> </paragraph> <paragraph num="(c)"> <text>Face ID or fingerprint verification application; or</text> </paragraph> <paragraph num="(d)"> <text>Different method approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The bettor must successfully complete a multi-factor authentication at account creation before the bettor may access their account and for each new device used to login to the account.</text> </paragraph> <paragraph num="(6)"> <text>The bettor must repeat multi-factor authentication at least every 14 days for each device.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A bettor may have only one bettor account for each sports wagering licensee.</text> </paragraph> <paragraph num="H."> <text>A bettor account may be funded using:</text> <paragraph num="(1)"> <text>A debit card;</text> </paragraph> <paragraph num="(2)"> <text>A credit card subject to COMAR 36.10.13.28;</text> </paragraph> <paragraph num="(3)"> <text>An electronic bank transfer, including a transfer through third parties;</text> </paragraph> <paragraph num="(4)"> <text>An online or mobile payment system that supports online money transfers;</text> </paragraph> <paragraph num="(5)"> <text>Winnings or payouts;</text> </paragraph> <paragraph num="(6)"> <text>Bonuses and promotions;</text> </paragraph> <paragraph num="(7)"> <text>Reloadable prepaid card, which has been verified as being issued to the bettor and is non-transferable; and</text> </paragraph> <paragraph num="(8)"> <text>Any other means approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Funds may be withdrawn from a bettor account through:</text> <paragraph num="(1)"> <text>Cash;</text> </paragraph> <paragraph num="(2)"> <text>Wagers;</text> </paragraph> <paragraph num="(3)"> <text>A cashiers check, wire transfer, or money order by the sports wagering licensee made payable to the bettor that is:</text> <paragraph num="(a)"> <text>Issued directly to the bettor; or</text> </paragraph> <paragraph num="(b)"> <text>Delivered to the bettors address on file with the sports wagering licensee;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Credits to the bettors debit card;</text> </paragraph> <paragraph num="(5)"> <text>Electronic bank transfers, including transfers through third parties;</text> </paragraph> <paragraph num="(6)"> <text>Online or mobile payment systems that support online money transfers;</text> </paragraph> <paragraph num="(7)"> <text>Reloadable prepaid card that:</text> <paragraph num="(a)"> <text>Has been verified as being issued to the bettor; and</text> </paragraph> <paragraph num="(b)"> <text>Is non-transferable; or</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Any other means approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Within 7 days of a bettor request for withdrawal of funds, the sports wagering licensee shall complete the withdrawal unless there is a pending:</text> <paragraph num="(1)"> <text>Unresolved bettor dispute; or</text> </paragraph> <paragraph num="(2)"> <text>Investigation prompted by a bettor dispute or the Commission.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Funds for withdrawal may be withheld from withdrawal until:</text> <paragraph num="(1)"> <text>The funding transaction clears; or</text> </paragraph> <paragraph num="(2)"> <text>The chargeback period ends.</text> </paragraph> </paragraph> <paragraph num="L."> <text>All adjustments to a bettor account for:</text> <paragraph num="(1)"> <text>Individual amounts of $500 or less shall be periodically reviewed by the sports wagering licensee consistent with the sports wagering licensees internal control standards; and</text> </paragraph> <paragraph num="(2)"> <text>Individual amounts of more than $500 shall be authorized by the sports wagering licensees management before being entered.</text> </paragraph> </paragraph> <paragraph num="M."> <text>A sports wagering licensee may not allow the transfer of funds or credits from or to another bettor account.</text> </paragraph> <paragraph num="N."> <text>Except for the placement or settlement of a wager, unless the bettor has opted to not receive such notifications, the sports wagering licensee shall confirm each transaction on a bettor account by:</text> <paragraph num="(1)"> <text>Email;</text> </paragraph> <paragraph num="(2)"> <text>Text message; or</text> </paragraph> <paragraph num="(3)"> <text>Other means:</text> <paragraph num="(a)"> <text>Agreed upon by the bettor and sports wagering licensee; and</text> </paragraph> <paragraph num="(b)"> <text>Approved by the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="O."> <text>Account Statements.</text> <paragraph num="(1)"> <text>A sports wagering licensee shall provide an account statement upon demand by the bettor.</text> </paragraph> <paragraph num="(2)"> <text>An account statement shall include detailed account activity for at least 6 months preceding the 24-hour period before the request.</text> </paragraph> <paragraph num="(3)"> <text>A sports wagering licensee shall be capable of providing a summary statement of all bettor activity during the previous 24 months if requested.</text> </paragraph> </paragraph> <paragraph num="P."> <text>If a sports wagering licensee knows or has reason to know that a bettors identification or bettor account has been compromised, a sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Suspend wagers from being made; and</text> </paragraph> <paragraph num="(2)"> <text>Immediately re-verify a bettors identification.</text> </paragraph> </paragraph> <paragraph num="Q."> <text>A sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Offer an easily accessible method for a bettor to close the bettors account; and</text> </paragraph> <paragraph num="(2)"> <text>Refund the balance remaining in a bettors account:</text> <paragraph num="(a)"> <text>Pursuant to the sports wagering licensees internal control standards; and</text> </paragraph> <paragraph num="(b)"> <text>No later than 7 days after receiving notice from the bettor of the intent to close the bettors account.</text> </paragraph> </paragraph> </paragraph> <paragraph num="R."> <text>A sports wagering platform shall employ a mechanism that can detect and prevent any bettor-initiated activity that would result in a negative balance of a bettor account.</text> </paragraph> <paragraph num="S."> <text>A sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Lock a bettors account after 3 failed log-in attempts; and</text> </paragraph> <paragraph num="(2)"> <text>Require multi-factor authentication to recover or reset a password or username after being locked.</text> </paragraph> </paragraph> <paragraph num="T."> <text>A sports wagering licensee shall suspend a bettor account if:</text> <paragraph num="(1)"> <text>The bettor requests a suspension for a period not less than 24 hours as a self-limiting measure;</text> </paragraph> <paragraph num="(2)"> <text>Required by the Commission;</text> </paragraph> <paragraph num="(3)"> <text>The sports wagering licensee knows or has reason to know that the bettor may be a prohibited individual; or</text> </paragraph> <paragraph num="(4)"> <text>The sports wagering licensee knows or has reason to know of:</text> <paragraph num="(a)"> <text>Illegal activity related to the account;</text> </paragraph> <paragraph num="(b)"> <text>A negative account balance; or</text> </paragraph> <paragraph num="(c)"> <text>A violation of the sports wagering licensees terms and conditions has taken place on the bettors account.</text> </paragraph> </paragraph> </paragraph> <paragraph num="U."> <text>When a sports wagering account is suspended, the bettor shall be prevented from:</text> <paragraph num="(1)"> <text>Wagering;</text> </paragraph> <paragraph num="(2)"> <text>Depositing funds, unless the reason for the deposit is to clear a negative balance that resulted in the suspension;</text> </paragraph> <paragraph num="(3)"> <text>Withdrawing funds if there is a pending unresolved bettor dispute or investigation prompted by a bettor dispute or the Commission;</text> </paragraph> <paragraph num="(4)"> <text>Making changes to the bettor account; or</text> </paragraph> <paragraph num="(5)"> <text>Removing the bettor account from the sports wagering platform.</text> </paragraph> </paragraph> <paragraph num="V."> <text>A bettor account suspended for a reason stated in §T of this regulation may be restored:</text> <paragraph num="(1)"> <text>Upon expiration of the time period established by the bettor;</text> </paragraph> <paragraph num="(2)"> <text>When the sports wagering licensee has determined that the Commission has granted permission for the restoration;</text> </paragraph> <paragraph num="(3)"> <text>When the licensee has determined that the bettor is not a prohibited or excluded individual; or</text> </paragraph> <paragraph num="(4)"> <text>When the sports wagering licensee has determined that:</text> <paragraph num="(a)"> <text>No illegal activity related to the account occurred;</text> </paragraph> <paragraph num="(b)"> <text>There is no longer a negative account balance; or</text> </paragraph> <paragraph num="(c)"> <text>No violation of the terms and conditions that has taken place on the bettors account.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Information Security."> <paragraph num="A."> <text>A sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Implement, maintain, regularly review and revise, and comply with a comprehensive information security system that reasonably protects the confidentiality, integrity, and availability of a bettor’s personally identifiable information; and</text> </paragraph> <paragraph num="(2)"> <text>Ensure that the security system set forth in §A(1) of this regulation includes administrative, technical, and physical safeguards which:</text> <paragraph num="(a)"> <text>Are appropriate to the size, complexity, nature, and scope of the operations; and</text> </paragraph> <paragraph num="(b)"> <text>Protect the personal information owned, licensed, maintained, handled, or otherwise in the possession of the sports wagering licensee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A sports wagering licensee shall:</text> <paragraph num="(1)"> <text>Within 90 days of commencing operations, and annually thereafter, conduct a vulnerability assessment, penetration testing, and operational security control review against ISO 27001 standard, or other similar standards such as CIS or NIST CSF;</text> </paragraph> <paragraph num="(2)"> <text>Perform vulnerability assessments and penetration testing of the sports wagering platform at multiple layers, including:</text> <paragraph num="(a)"> <text>Internal and external network;</text> </paragraph> <paragraph num="(b)"> <text>Mobile and web application;</text> </paragraph> <paragraph num="(c)"> <text>Database;</text> </paragraph> <paragraph num="(d)"> <text>Firewall;</text> </paragraph> <paragraph num="(e)"> <text>If applicable, wireless; and</text> </paragraph> <paragraph num="(f)"> <text>Any additional security testing that the Commission requires;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Ensure that a Commission approved third party described in Regulation .02B of this chapter conducts the testing required in §B(1) and (2) of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>Ensure that the annual reporting requirement required in §B(1)—(3) of this regulation is submitted to the Commission no later than 120 days after the end of the licensee’s fiscal year;</text> </paragraph> <paragraph num="(5)"> <text>Perform internal quarterly vulnerability scans; and</text> </paragraph> <paragraph num="(6)"> <text>Submit to the Commission documentation of the scan results and the actions taken to resolve identified vulnerabilities.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A sports wagering licensee shall submit to the Commission the assessment report issued by the third party and the licensee’s report.</text> </paragraph> <paragraph num="D."> <text>The combined reports in §C of this regulation shall:</text> <paragraph num="(1)"> <text>Provide details for all vulnerabilities identified;</text> </paragraph> <paragraph num="(2)"> <text>Assess the adequacy and effectiveness of the sports wagering licensee’s information technology security controls and system configurations; and</text> </paragraph> <paragraph num="(3)"> <text>Provide recommendations for eliminating each material weakness or significant deficiency identified.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A sports wagering licensee shall evaluate all identified vulnerabilities for potential adverse effect on security and integrity and:</text> <paragraph num="(1)"> <text>Remediate the vulnerability no later than 90 days following the earlier of vulnerability’s identification or public disclosure; or</text> </paragraph> <paragraph num="(2)"> <text>Document why remediation action is unnecessary or unsuitable.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04E amended effective April 27, 2026 (53:8 Md. R. 356)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04E, F, G adopted effective July 7, 2025 (52:13 Md. R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05N amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05F amended effective July 7, 2025 (52:13 Md, R. 657)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B amended effective April 27, 2026 (53:8 Md. R. 356)</annotation> </annotations> </chapter> </subtitle> <subtitle num="11" heading="Sports Wagering Application Review Commission"> <chapter num="01" heading="General Provisions"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This subtitle applies to the Sports Wagering Application Review Commission (SWARC), and governs its evaluation of applications submitted to it for the award of competitive:</text> <paragraph num="(1)"> <text>Class B-1 and B-2 sports wagering facility licenses; and</text> </paragraph> <paragraph num="(2)"> <text>Mobile sports wagering licenses.</text> </paragraph> </paragraph> <paragraph num="B."> <text>SWARC may not award a license unless the Commission has found the applicant qualified for a sports wagering license.</text> </paragraph> <paragraph num="C."> <text>After SWARC awards a license, the Commission is responsible for all matters relating to the issuance of the license and regulation of sports wagering operations.</text> </paragraph> <paragraph num="D."> <text>The requirements for a license award by SWARC in this subtitle are in addition to, and do not supplant, the requirements in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, or COMAR 36.10.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In addition to the terms defined in State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland, and COMAR 36.01, 36.03, 36.04, and 36.10, which have the same meanings in this subtitle, the terms in §C of this regulation have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>If a term identified in §A of this regulation is defined differently in this subtitle, the definitions in this subtitle apply.</text> </paragraph> <paragraph num="C."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Applicant” means a person who, as required under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, submits to SWARC a SWARC application for a competitive license.</text> </paragraph> <paragraph num="(2)"> <text>“Award” or “license award” means the act of SWARC approving the SWARC application of an applicant that meets the requirements for licensure under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, for a competitive license, after which the Commission may issue the license that is necessary for the applicant to commence sports wagering operations.</text> </paragraph> <paragraph num="(3)"> <text>“Awardee” means a qualified applicant to which SWARC has awarded a license.</text> </paragraph> <paragraph num="(4)"> <text>“Commission” means the State Lottery and Gaming Control Commission and, unless context dictates otherwise, includes Commission staff.</text> </paragraph> <paragraph num="(5)"> <text>“Commission application” means the application an applicant submits to the Commission to be considered for:</text> <paragraph num="(a)"> <text>Qualification for a license to be awarded by SWARC; and</text> </paragraph> <paragraph num="(b)"> <text>After SWARC awards a license, issuance of a license.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Competitive license” means a sports wagering license that is not a sports wagering license described in State Government Article, §9-1E-15(f)(2), Annotated Code of Maryland, and is a:</text> <paragraph num="(a)"> <text>Class B-1 or B-2 sports wagering facility license; or</text> </paragraph> <paragraph num="(b)"> <text>Mobile sports wagering license.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“eLicensing Portal” or “Portal” means the Commission’s electronic system by which gaming and sports wagering license applications are submitted to the Commission, and which:</text> <paragraph num="(a)"> <text>May be used by a prospective applicant, before submitting its SWARC application and nonrefundable SWARC application fee, to begin completing information and uploading documentation an applicant is required to submit to the Commission in addition to its SWARC application;</text> </paragraph> <paragraph num="(b)"> <text>Shall be used by an applicant to submit its Commission application; and</text> </paragraph> <paragraph num="(c)"> <text>May not be used to submit a SWARC application.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>“License” means a competitive license that SWARC awards to an applicant.</text> </paragraph> <paragraph num="(9)"> <text>“Person” has the meaning stated in State Government Article, §1-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>Personal Net Worth.</text> <paragraph num="(a)"> <text>“Personal net worth” means the net value of the assets held by an individual, including the individual’s share of assets held jointly or as community property with the individual’s spouse, after total liabilities are deducted.</text> </paragraph> <paragraph num="(b)"> <text>“Personal net worth” does not include:</text> <paragraph num="(i)"> <text>The individual’s ownership interest in the applicant;</text> </paragraph> <paragraph num="(ii)"> <text>The individual’s equity in the individual’s primary place of residence;</text> </paragraph> <paragraph num="(iii)"> <text>Any mortgage or loan secured by the individual’s primary place of residence as a liability; or</text> </paragraph> <paragraph num="(iv)"> <text>The cash value of any qualified retirement savings plans or individual retirement accounts.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(11)"> <text>“Sports wagering law” means the law codified at State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, COMAR 36.10, and this subtitle, by which sports wagering is regulated in the State.</text> </paragraph> <paragraph num="(12)"> <text>“Submit” means to deliver any document requested by SWARC or the Commission to SWARC or the Commission, as applicable:</text> <paragraph num="(a)"> <text>To the address and in the manner specified by SWARC or the Commission that ensures its receipt by SWARC or the Commission, as applicable; and</text> </paragraph> <paragraph num="(b)"> <text>Which is considered delivered only upon actual receipt by SWARC or the Commission, as applicable.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“SWARC”:</text> <paragraph num="(a)"> <text>Means the Sports Wagering Application Review Commission established by State Government Article, §9-1E-15, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>Unless context dictates otherwise, includes staff to SWARC as provided in State Government Article, §9-1E-15, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“SWARC application”:</text> <paragraph num="(a)"> <text>Means the forms, information, and documentation that an applicant is required to submit to SWARC to be considered for the award of a competitive license; and</text> </paragraph> <paragraph num="(b)"> <text>Does not mean any form, information, or documentation that a prospective applicant completes in, or uploads to, the eLicensing Portal.</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>“SWARC application fee” means the nonrefundable application fee specified in State Government Article, §9-1E-06(b), Annotated Code of Maryland, that is:</text> <paragraph num="(a)"> <text>$250,000 for a Class B-1 facility license;</text> </paragraph> <paragraph num="(b)"> <text>$50,000 for a Class B-2 facility license; and</text> </paragraph> <paragraph num="(c)"> <text>$500,000 for a mobile license.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 adopted as an emergency provision effective September 2, 2022 (49:20 Md. R. 912); adopted permanently effective November 14, 2022 (49:23 Md. R. 998)</annotation> </annotations> </chapter> <chapter num="02" heading="All Applicants and Awardees"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>All applicants shall comply with the requirements set forth in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this subtitle, to establish, by clear and convincing evidence, their eligibility for a license award and that the award is in the public interest.</text> </paragraph> <paragraph num="B."> <text>For the term of any initial and renewed license, an awardee:</text> <paragraph num="(1)"> <text>Shall comply with the contents of its SWARC application; and</text> </paragraph> <paragraph num="(2)"> <text>Shall bear the burden of proving, by clear and convincing evidence, its continued qualifications for a license award.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="General."> <paragraph num="A."> <text>This chapter includes requirements for all SWARC applications for the award of a competitive license.</text> </paragraph> <paragraph num="B."> <text>Unless SWARC has awarded an applicant a license:</text> <paragraph num="(1)"> <text>The Commission may not issue the applicant a license; and</text> </paragraph> <paragraph num="(2)"> <text>The applicant may not offer or conduct sports wagering, or engage in an activity for which a license is required.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Separate Applications and Fees."> <paragraph num="A."> <text>Each SWARC application submitted to SWARC shall be accompanied by payment of the applicable nonrefundable SWARC application fee, which shall be paid to the Commission as provided in Regulation .04A(2) of this chapter.</text> </paragraph> <paragraph num="B."> <text>The nonrefundable SWARC application fee is separate and distinct from any administrative costs for background investigations that are required to be submitted to the Commission under COMAR 36.10.02.03 to determine an applicant’s qualification for a license.</text> </paragraph> <paragraph num="C."> <text>Unless an applicant submits to the Commission the applicant’s written consent for the release of information from its Commission application to SWARC, SWARC may not review, receive, or consider information that an applicant submits to the Commission in its Commission application.</text> </paragraph> <paragraph num="D."> <text>Upon request to SWARC, the Commission may receive, review, or consider information that an applicant submits to SWARC in its application that the Commission deems necessary for determining whether the applicant can prove, by clear and convincing evidence, its qualifications for a license.</text> </paragraph> <paragraph num="E."> <text>During its term, SWARC shall retain, separate from the Commission’s records, any document the applicant submitted with its SWARC application.</text> </paragraph> <paragraph num="F."> <text>At the conclusion of SWARC’s term, the Commission shall retain any document the applicant submitted with its SWARC application:</text> <paragraph num="(1)"> <text>For applicants not awarded a license, for a period of 5 years from the time SWARC decided not to award a license; and</text> </paragraph> <paragraph num="(2)"> <text>For applicants awarded a license, for a period of 5 years from the latest of:</text> <paragraph num="(a)"> <text>The expiration of the license;</text> </paragraph> <paragraph num="(b)"> <text>The revocation of the license; or</text> </paragraph> <paragraph num="(c)"> <text>The surrender of the license.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Process for the Submission of Applications and Fees."> <paragraph num="A."> <text>SWARC Applications and Fees. By the date and time and in the manner specified by SWARC in the SWARC application, an applicant shall submit:</text> <paragraph num="(1)"> <text>To SWARC, the SWARC application; and</text> </paragraph> <paragraph num="(2)"> <text>To the Commission by electronic funds transfer, the nonrefundable SWARC application fee for the concurrently submitted SWARC application.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Commission Applications and Fees. Separate from its SWARC application, within the period provided in §C(4)(a) of this regulation, an applicant shall comply with the requirements of COMAR 36.10.02 for the submission of its:</text> <paragraph num="(1)"> <text>Commission application through the eLicensing Portal; and</text> </paragraph> <paragraph num="(2)"> <text>Administrative costs for background investigations.</text> </paragraph> </paragraph> <paragraph num="C."> <text>SWARC and Commission Review of Applications.</text> <paragraph num="(1)"> <text>SWARC and the Commission shall separately review the applications each receives.</text> </paragraph> <paragraph num="(2)"> <text>Within 5 calendar days of receipt of a timely SWARC application, SWARC staff shall submit to the Commission, by email, the name and other identifying information of the applicant.</text> </paragraph> <paragraph num="(3)"> <text>Within 5 calendar days of receipt of the information set forth in §C(2) of this regulation, the Commission staff shall notify SWARC by email if the applicant may be ineligible under Regulation .07 of this chapter.</text> </paragraph> <paragraph num="(4)"> <text>For each application submitted to SWARC:</text> <paragraph num="(a)"> <text>The applicant shall submit the required Commission application and the administrative costs for background investigation no later than 14 calendar days after the date the applicant submitted its SWARC application; and</text> </paragraph> <paragraph num="(b)"> <text>Within 5 days of the date specified in §C(4)(a) of this regulation, the Commission staff shall notify SWARC by email of any applicant that fails to timely submit its Commission application or the administrative costs for background investigation.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>SWARC shall reject and may not consider a SWARC application that it determines to be ineligible for an award under Regulation .07 of this chapter.</text> </paragraph> <paragraph num="(6)"> <text>SWARC staff shall notify the Commission by email of those applicants whom SWARC determines to be ineligible for award of a license and the basis for the determination.</text> </paragraph> <paragraph num="(7)"> <text>After the Commission has investigated the applicant and determined whether it is qualified to hold a license, the Commission shall notify SWARC by email of its determination.</text> </paragraph> <paragraph num="(8)"> <text>SWARC may not award a license to an applicant unless the Commission has determined that the applicant is qualified.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Submission of Commission Application."> <paragraph num="A."> <text>An applicant shall submit a Commission application only to the Commission through the eLicensing Portal.</text> </paragraph> <paragraph num="B."> <text>Access to Portal.</text> <paragraph num="(1)"> <text>A prospective applicant may request access to the Commission’s eLicensing Portal before its SWARC application is submitted or due.</text> </paragraph> <paragraph num="(2)"> <text>Access to the Commission’s eLicensing Portal permits the prospective applicant to begin completing information and uploading documentation required for the applicant’s submission of a Commission application, so that the Commission may conduct an investigation to determine the applicant’s qualifications for a license.</text> </paragraph> <paragraph num="(3)"> <text>A prospective applicant’s use of the eLicensing Portal does not constitute the submission of its Commission application.</text> </paragraph> <paragraph num="(4)"> <text>If a Commission application is not submitted within 180 calendar days after it is started in the eLicensing Portal, information that a prospective applicant has provided, and any documents it uploaded to, the Commission’s eLicensing Portal:</text> <paragraph num="(a)"> <text>Expires and is automatically archived from the Portal; and</text> </paragraph> <paragraph num="(b)"> <text>Shall be again entered or uploaded through the Portal to be considered.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The Commission may not begin to conduct an applicant’s background investigation, or consider its Commission application in any way, until the applicant submits:</text> <paragraph num="(a)"> <text>A completed Commission application; and</text> </paragraph> <paragraph num="(b)"> <text>The related administrative costs for background investigations.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission may not conduct, or continue to conduct, an applicant’s background investigation, or determine the applicant’s qualifications, after SWARC notifies the Commission that the:</text> <paragraph num="(1)"> <text>SWARC application was determined to be ineligible for an award under Regulation .07 of this chapter; or</text> </paragraph> <paragraph num="(2)"> <text>Applicant has withdrawn its SWARC application.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Commission shall refund to an applicant any unused portion of its background investigation costs:</text> <paragraph num="(1)"> <text>After SWARC notifies the Commission that the:</text> <paragraph num="(a)"> <text>SWARC application was determined to be ineligible for an award under Regulation .07 of this chapter; or</text> </paragraph> <paragraph num="(b)"> <text>Applicant has withdrawn its SWARC application;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If, before the Commission issues the license, the applicant has surrendered its license award; or</text> </paragraph> <paragraph num="(3)"> <text>If, before the Commission determines the applicant’s qualifications, the applicant withdraws its Commission application.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Submission of SWARC Application."> <paragraph num="A."> <text>An applicant shall submit a SWARC application only to SWARC.</text> </paragraph> <paragraph num="B."> <text>To be considered for the award of a license, an applicant shall:</text> <paragraph num="(1)"> <text>Complete the SWARC application as required in Regulation .08 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Timely submit its completed SWARC application, which means ensuring that SWARC receives the application as specified in its application instructions:</text> <paragraph num="(a)"> <text>Through delivery by any means SWARC specifies;</text> </paragraph> <paragraph num="(b)"> <text>At the location SWARC specifies; and</text> </paragraph> <paragraph num="(c)"> <text>Before 5 p.m. on the date that SWARC specifies; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Timely submit the nonrefundable application fee as required under Regulation .04A(2) of this chapter as specified in SWARC’s application instructions.</text> </paragraph> </paragraph> <paragraph num="C."> <text>SWARC may not accept or consider a SWARC application:</text> <paragraph num="(1)"> <text>That is not timely submitted; or</text> </paragraph> <paragraph num="(2)"> <text>For which the SWARC application fee was not timely submitted to the Commission as required under Regulation .04A(2) of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="SWARC Application — Determination of Ineligibility."> <text>Without conducting a hearing, SWARC shall determine that a SWARC application is ineligible for an award of a license if:</text> <paragraph num="A."> <text>The completed SWARC application was not timely submitted to SWARC;</text> </paragraph> <paragraph num="B."> <text>The nonrefundable SWARC application fee was not timely submitted to the Commission;</text> </paragraph> <paragraph num="C."> <text>The applicant’s required Commission application or administrative costs for background investigation was not timely submitted to the Commission; or</text> </paragraph> <paragraph num="D."> <text>The SWARC application seeks the award of a facility license to an applicant:</text> <paragraph num="(1)"> <text>Who is eligible to apply for a Class A-1 or A-2 sports wagering facility license under State Government Article, §9-1E-06(a)(1), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Who holds a Class A-1 or A-2 sports wagering facility license; or</text> </paragraph> <paragraph num="(3)"> <text>Whose sports wagering facility will be located:</text> <paragraph num="(a)"> <text>Within a 15-mile radius of a Class A-1 or A-2 sports wagering facility located in Cecil County or Worcester County;</text> </paragraph> <paragraph num="(b)"> <text>For an application submitted before June 1, 2025, within a 15-mile radius of a Class B-1 or B-2 sports wagering facility located in Charles County;</text> </paragraph> <paragraph num="(c)"> <text>For an application submitted before June 1, 2025, within a 10-mile radius of a Class B-1 or B-2 sports wagering facility located in Carroll County;</text> </paragraph> <paragraph num="(d)"> <text>For an application submitted before June 1, 2025, within a 5-mile radius of a Class B-1 or B-2 sports wagering facility located in Frederick County; or</text> </paragraph> <paragraph num="(e)"> <text>Within a 1.5-mile radius of:</text> <paragraph num="(i)"> <text>A Class A-1 or A-2 sports wagering facility located in a county not described under §D(3)(a) of this regulation; or</text> </paragraph> <paragraph num="(ii)"> <text>Any other existing or operating Class B-1 or B-2 sports wagering facility.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Requirements for a Completed SWARC Application."> <paragraph num="A."> <text>An applicant shall ensure that its SWARC application is complete and timely when submitted.</text> </paragraph> <paragraph num="B."> <text>A completed SWARC application shall:</text> <paragraph num="(1)"> <text>Be submitted in the form and format set forth in §D of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Contain all required information set forth in §E of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>If applicable, contain the information pertaining to the applicant’s efforts to solicit and interview minority and women investors, as set forth in §F of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>Be accompanied by all required documents as set forth in §§G and H of this regulation;</text> </paragraph> <paragraph num="(5)"> <text>Be executed by the applicant, or if the applicant is not an individual, the Chief Executive Officer or other authorized representative of the applicant; and</text> </paragraph> <paragraph num="(6)"> <text>Be signed and sworn to before a notary public.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Incomplete Applications. A SWARC application that, as determined by SWARC in its sole discretion, fails to comply with all or substantially all of the requirements of §B of this regulation:</text> <paragraph num="(1)"> <text>Shall be deemed incomplete; and</text> </paragraph> <paragraph num="(2)"> <text>May only be changed as provided in Regulation .09 or .10 of this chapter.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Form and Format. As specified in the SWARC application, an application submitted pursuant to §A of this regulation shall include:</text> <paragraph num="(1)"> <text>One paper original of the SWARC application;</text> </paragraph> <paragraph num="(2)"> <text>Ten paper copies of the original SWARC application;</text> </paragraph> <paragraph num="(3)"> <text>Two copies in an electronic format or other format as required by SWARC on a medium selected by SWARC; and</text> </paragraph> <paragraph num="(4)"> <text>Two paper copies, and one copy in electronic format, or other format required by SWARC, of the SWARC application that identifies, on each page, any information the applicant views as exempt from disclosure under General Provisions Article, §4-101 et seq., Annotated Code of Maryland, and a letter enumerating the specific grounds for any such exemptions.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Required Information. A completed SWARC application shall include documents that verify information about the applicant, including the:</text> <paragraph num="(1)"> <text>Applicant’s legal name, business address, and taxpayer identification number;</text> </paragraph> <paragraph num="(2)"> <text>Applicant’s good standing with the State Department of Assessments and Taxation;</text> </paragraph> <paragraph num="(3)"> <text>Date the applicant established the business that would conduct the applicant’s sports wagering business;</text> </paragraph> <paragraph num="(4)"> <text>Form of business organization that would conduct the applicant’s sports wagering business;</text> </paragraph> <paragraph num="(5)"> <text>Name under which the applicant intends to conduct sports wagering;</text> </paragraph> <paragraph num="(6)"> <text>Individual who is the primary contact for the applicant, including the contact individual’s:</text> <paragraph num="(a)"> <text>Name;</text> </paragraph> <paragraph num="(b)"> <text>Email address;</text> </paragraph> <paragraph num="(c)"> <text>Mailing address;</text> </paragraph> <paragraph num="(d)"> <text>Telephone number; and</text> </paragraph> <paragraph num="(e)"> <text>Title or basis of authority to represent applicant;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Names and titles of principals;</text> </paragraph> <paragraph num="(8)"> <text>Number of employees and work locations of such employees who are currently employed by the applicant within Maryland and whether these employees are full-time or part-time employees;</text> </paragraph> <paragraph num="(9)"> <text>If applying for a competitive license that is a Class B-1 or Class B-2 facility license, the number of full-time equivalent employees employed by the applicant in Maryland as of the end of the most recent calendar quarter;</text> <paragraph num="(a)"> <text>Calculated by dividing the total hours worked during the calendar quarter (13 weeks) by 520 (13 weeks x 40 hours per week); and</text> </paragraph> <paragraph num="(b)"> <text>Rounded to the nearest whole number;</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Number, and proposed work locations, of individuals identified within Maryland expected to be employed by the applicant in its sports wagering business and whether these employees are to be full-time or part-time employees;</text> </paragraph> <paragraph num="(11)"> <text>For the business that would be licensed to conduct sports wagering, the business’s revenue, expenses, and profit for the 2 most recent tax reporting years;</text> </paragraph> <paragraph num="(12)"> <text>Sources of funding for:</text> <paragraph num="(a)"> <text>The SWARC application fee;</text> </paragraph> <paragraph num="(b)"> <text>The Commission’s administrative cost of background investigations;</text> </paragraph> <paragraph num="(c)"> <text>All construction or renovation costs;</text> </paragraph> <paragraph num="(d)"> <text>All startup costs; and</text> </paragraph> <paragraph num="(e)"> <text>Continuing operations during the initial 5 years after commencement of sports wagering operations;</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>Capitalization table of the applicant identifying;</text> <paragraph num="(a)"> <text>Direct and indirect owners of the applicant;</text> </paragraph> <paragraph num="(b)"> <text>Amount invested;</text> </paragraph> <paragraph num="(c)"> <text>Type of equity owned;</text> </paragraph> <paragraph num="(d)"> <text>Percentage ownership of the applicant;</text> </paragraph> <paragraph num="(e)"> <text>Terms, conditions, and rights of the equity interests owned, including voting rights;</text> </paragraph> <paragraph num="(f)"> <text>Whether sports wagering would be conducted by the applicant; and</text> </paragraph> <paragraph num="(g)"> <text>If the applicant is applying for a:</text> <paragraph num="(i)"> <text>Facility license, its facility operator, if identified; or</text> </paragraph> <paragraph num="(ii)"> <text>A mobile license, its online sports wagering operator, if identified;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(14)"> <text>Whether any person identified in the SWARC application has:</text> <paragraph num="(a)"> <text>Experience in the operation of sports wagering;</text> </paragraph> <paragraph num="(b)"> <text>Ever had a sports wagering or gaming-related license, or application for any such license, rejected or denied in any jurisdiction;</text> </paragraph> <paragraph num="(c)"> <text>In any jurisdiction, ever held a license related to sports wagering or gaming that was revoked, suspended, or surrendered; or</text> </paragraph> <paragraph num="(d)"> <text>In any jurisdiction in which it held a sports wagering or gaming-related license, within the past 3 years, ever been subject to any disciplinary matter, judgment, settlement, order, or decree pertaining to a violation of any state or federal statute, regulation, or rule that resulted in a fine, penalty, or payment of more than $5,000;</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>Business plans for 5 years for the proposed sports wagering operations, including revenue estimates, for sports wagering and other business revenue, and all ongoing expenses, including:</text> <paragraph num="(a)"> <text>Pre-launch expenses, to include marketing campaigns;</text> </paragraph> <paragraph num="(b)"> <text>Projected capital investments and expenses for site improvements and equipment acquisitions at, or planned for, the location where the applicant would conduct sports wagering;</text> </paragraph> <paragraph num="(c)"> <text>Projected operating expenses;</text> </paragraph> <paragraph num="(d)"> <text>Other revenue-generating activities at, or planned for, the location where the applicant would conduct sports wagering;</text> </paragraph> <paragraph num="(e)"> <text>Projected balance sheet at the time of licensure;</text> </paragraph> <paragraph num="(f)"> <text>If applying for a facility license, facility floorplans designating age-controlled wagering areas, public areas, and nonpublic areas; and</text> </paragraph> <paragraph num="(g)"> <text>The applicant’s estimated timeline from award of a license to the acceptance of wagers; and</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>Any other information SWARC may, in its discretion, request whether in the SWARC application or by written request to the applicant.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Requirements for Applicants Seeking Investors.</text> <paragraph num="(1)"> <text>As required by State Government Article, §9-1E-15(i), Annotated Code of Maryland, if an applicant sought investors, the applicant shall have made serious, good-faith efforts to solicit and interview a reasonable number of minority and women investors, and submit with its SWARC application a statement that lists the names and addresses of all minority and women investors interviewed and whether or not any of those investors have acquired an equity share in the applicant.</text> </paragraph> <paragraph num="(2)"> <text>Each applicant shall submit an acknowledgement that, if SWARC awards it a license, the awardee shall sign a memorandum of understanding with SWARC that requires the awardee to 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.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Required Documents. When submitted, a completed SWARC application shall include:</text> <paragraph num="(1)"> <text>A statement that the entire SWARC application has been sworn to before a notary public, as to the application’s truth and validity, by the applicant or, if the applicant is not an individual, by the Chief Executive Officer of the applicant or other authorized representative of the applicant;</text> </paragraph> <paragraph num="(2)"> <text>Certification and acknowledgment by the applicant that the:</text> <paragraph num="(a)"> <text>Business offering or conducting sports wagering shall comply with all applicable zoning requirements;</text> </paragraph> <paragraph num="(b)"> <text>Business offering or conducting sports wagering shall comply with all other applicable federal, State or local requirements; and</text> </paragraph> <paragraph num="(c)"> <text>Applicant recognizes that sports wagering is a competitive business and has an inherent risk of instability and unprofitability; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An affidavit of the applicant pursuant to which the applicant, for itself and its successor and assigns, expressly waives, releases, discharges, and forever holds harmless and agrees to indemnify SWARC, the State of Maryland, and their respective members, employees, agents, consultants, and representatives from all liability for any and all claims or legal action arising from or relating to any actions that SWARC or the State of Maryland may take related to the collection of information from the applicant and the use of that information in connection with evaluating the applicant for the award or issuance (or nonaward or nonissuance) of a sports wagering license.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Required Documentation for Sports Wagering Facility License Applicants. In addition to the documentation in §§F and G of this regulation, if the applicant does not own the business location, a completed SWARC application for the award of a facility license shall be accompanied by:</text> <paragraph num="(1)"> <text>A lease, or other documentation, showing that the applicant lawfully possesses, or may possess, the property, and the term of the lawful possession; and</text> </paragraph> <paragraph num="(2)"> <text>A notarized acknowledgement by the person who owns or controls the property that:</text> <paragraph num="(a)"> <text>The premises may be used for a sports wagering facility without violating the lease or other term by which the applicant possesses the property; and</text> </paragraph> <paragraph num="(b)"> <text>If the applicant is issued a license, the property may be used as a sports wagering facility for at least the applicant’s initial 5-year license term.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Required Submission of Additional Documents."> <paragraph num="A."> <text>SWARC may request an applicant to submit additional documents to clarify the contents of its SWARC application so that SWARC may decide whether to award a license.</text> </paragraph> <paragraph num="B."> <text>SWARC shall notify the applicant in writing that additional documents are required.</text> </paragraph> <paragraph num="C."> <text>An applicant notified in accordance with §A of this regulation shall submit to SWARC the required documents no later than 14 calendar days after SWARC issues the notice.</text> </paragraph> <paragraph num="D."> <text>Notice to Applicant.</text> <paragraph num="(1)"> <text>If SWARC notifies an applicant that additional documents are required pursuant to §A of this regulation and the applicant is unable to timely submit the required documents:</text> <paragraph num="(a)"> <text>Before the expiration of 14 calendar days from the date of SWARC’s notice, the applicant shall provide SWARC good cause as to why it is unable to timely provide the required documents; or</text> </paragraph> <paragraph num="(b)"> <text>After the expiration of 14 calendar days from the date of SWARC’s notice, the applicant shall provide SWARC good cause for its failure to:</text> <paragraph num="(i)"> <text>Provide the required documents; and</text> </paragraph> <paragraph num="(ii)"> <text>Respond to SWARC within 14 calendar days of SWARC’s notice.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>After receiving notification from the applicant pursuant to this section, SWARC may:</text> <paragraph num="(a)"> <text>Determine that good cause was shown and extend the deadline by which the applicant may submit the required documents; or</text> </paragraph> <paragraph num="(b)"> <text>Determine that good cause was not shown and decline to extend the deadline.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>SWARC shall make the determination required in §D(2) of this regulation within 7 calendar days of SWARC’s receipt of notification from the applicant.</text> </paragraph> </paragraph> <paragraph num="E."> <text>SWARC may not award a license to an applicant that has failed to provide all required documents to SWARC in a timely manner.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Limitation on Changing a SWARC Application — Changed Circumstance."> <paragraph num="A."> <text>If any information submitted by an applicant as part of a SWARC application changes or becomes inaccurate before SWARC has awarded or denied a license sought by the submission of the SWARC application, the applicant shall immediately submit to SWARC written notification of the change or inaccuracy.</text> </paragraph> <paragraph num="B."> <text>An applicant may not change a SWARC application after it has been submitted except:</text> <paragraph num="(1)"> <text>As provided in Regulations .09 or .11 of this chapter; or</text> </paragraph> <paragraph num="(2)"> <text>To address a change in the circumstances surrounding the SWARC application that was outside the control of the applicant and that affects the ability of the applicant to comply with the sports wagering law or this subtitle .</text> </paragraph> </paragraph> <paragraph num="C."> <text>To request approval to change a SWARC application under §B(2) of this regulation, an applicant shall submit to SWARC a written request for its proposed change to the application that describes the:</text> <paragraph num="(1)"> <text>Change in the circumstances surrounding the application that would necessitate the change;</text> </paragraph> <paragraph num="(2)"> <text>Nature of the proposed change;</text> </paragraph> <paragraph num="(3)"> <text>Reason why the proposed change is necessary to bring the SWARC application into compliance with applicable law or regulations; and</text> </paragraph> <paragraph num="(4)"> <text>Law or regulation applicable to the proposed change.</text> </paragraph> </paragraph> <paragraph num="D."> <text>SWARC shall grant or deny each request to change an application within 7 calendar days of receiving the request.</text> </paragraph> <paragraph num="E."> <text>SWARC may grant the request if the applicant demonstrates, to the satisfaction of SWARC, that:</text> <paragraph num="(1)"> <text>The circumstances requiring the change are outside the control of the applicant;</text> </paragraph> <paragraph num="(2)"> <text>Before the change in the circumstances the applicant describes under §C of this regulation, the application complied with applicable law or regulation; and</text> </paragraph> <paragraph num="(3)"> <text>The change is necessary to bring the application into compliance with applicable law or regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Limitation on Changing a SWARC Application — Omission or Mistake."> <paragraph num="A."> <text>SWARC may permit an applicant to change its SWARC application to remedy an omission or a mistaken failure to comply with an applicable law or regulation, if SWARC determines the failure to be inadvertent or nonsubstantive.</text> </paragraph> <paragraph num="B."> <text>To request a change to a SWARC application under this regulation, an applicant shall submit to SWARC a written request for its proposed change to the application that describes:</text> <paragraph num="(1)"> <text>The omission or mistake was promptly reported to SWARC after its discovery;</text> </paragraph> <paragraph num="(2)"> <text>The nature of the proposed change;</text> </paragraph> <paragraph num="(3)"> <text>Why the proposed change is necessary to bring the application into compliance with applicable law or regulation; and</text> </paragraph> <paragraph num="(4)"> <text>The law or regulation applicable to the proposed change.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Within 7 calendar days of SWARC’s receipt of an applicant’s request to make a change as provided in §B of this regulation, SWARC shall:</text> <paragraph num="(1)"> <text>Grant the request;</text> </paragraph> <paragraph num="(2)"> <text>Deny the request and state the reason for the denial; or</text> </paragraph> <paragraph num="(3)"> <text>Request additional information.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Withdrawal of Application."> <paragraph num="A."> <text>Before SWARC has awarded or denied a license, an applicant may withdraw a SWARC application by submitting a written notice to SWARC.</text> </paragraph> <paragraph num="B."> <text>An applicant that withdraws a SWARC application may not:</text> <paragraph num="(1)"> <text>Receive a refund of its SWARC application fee; or</text> </paragraph> <paragraph num="(2)"> <text>Have its SWARC application or any documents submitted to SWARC in support of the application returned.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Evaluation of Applications."> <text>In evaluating an application for the award of a license, SWARC will consider all information concerning the applicant, including information concerning its officers, principals, affiliates, online sports wagering operator, or other representatives, based upon the following criteria, in no particular order and with no particular weight assigned:</text> <paragraph num="A."> <text>Experience, business ability, and track record that evidences the applicant’s, or the applicant’s identified sports wagering operator’s, ability to establish and operate a successful sports wagering operation;</text> </paragraph> <paragraph num="B."> <text>Demonstrated ability to comply with applicable sports wagering laws and regulations, including regulatory compliance in other jurisdictions and past cooperation with regulatory authorities;</text> </paragraph> <paragraph num="C."> <text>Demonstrated culture of and investments in responsible gaming programs, and an effective governance and compliance program;</text> </paragraph> <paragraph num="D."> <text>Demonstrated financial stability, resources, integrity, and business ability and acumen and applicant’s ability to compete in the Maryland sports wagering market;</text> </paragraph> <paragraph num="E."> <text>If an applicant sought investors, evidence of applicant’s serious, good-faith efforts to solicit and interview a reasonable number of minority and women investors and whether or not any of those investors have purchased an equity share in the applicant;</text> </paragraph> <paragraph num="F."> <text>The maximization of sports wagering revenues, including projected proceeds to the State;</text> </paragraph> <paragraph num="G."> <text>Ability to commence sports wagering operations within a reasonable period of time after the award of the license;</text> </paragraph> <paragraph num="H."> <text>The extent to which the proposed sports wagering operation preserves existing Maryland jobs and creates new Maryland jobs;</text> </paragraph> <paragraph num="I."> <text>The anticipated wages and benefits for new Maryland jobs that would be created;</text> </paragraph> <paragraph num="J."> <text>Demonstrated willingness and commitment to make investments in Maryland;</text> </paragraph> <paragraph num="K."> <text>For facility licenses:</text> <paragraph num="(1)"> <text>Whether the proposed facility is located within an opportunity zone or an enterprise zone;</text> </paragraph> <paragraph num="(2)"> <text>The extent to which the proposed facility encourages Maryland wagering participants to remain in the State when placing sports wagers; and</text> </paragraph> <paragraph num="(3)"> <text>The extent to which the proposed facility will attract out-of-State visitors;</text> </paragraph> </paragraph> <paragraph num="L."> <text>Whether the applicant’s proposed sports wagering business would appeal to a unique market;</text> </paragraph> <paragraph num="M."> <text>Responsiveness of the applicant to requests of SWARC and Commission;</text> </paragraph> <paragraph num="N."> <text>Whether an award of the license is in the public interest and is consistent with the purposes of the sports wagering law; and</text> </paragraph> <paragraph num="O."> <text>Any other criteria deemed by SWARC to be in the public interest and consistent with the sports wagering law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="License Award Decision."> <paragraph num="A."> <text>The Commission shall review all eligible applicants and notify SWARC by email of the applicants determined to be qualified.</text> </paragraph> <paragraph num="B."> <text>SWARC may not award a license to an applicant that has not been found qualified by the Commission.</text> </paragraph> <paragraph num="C."> <text>SWARC may not award a license unless it determines and declares in writing that award of the license to the applicant is in the public interest and is consistent with the purposes of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>For each qualified applicant, SWARC shall make a license award determination in writing based on the requirements and criteria set forth in this chapter.</text> </paragraph> <paragraph num="E."> <text>Promptly after making an award decision, SWARC shall provide written notification of its decision to the applicant and Commission.</text> </paragraph> <paragraph num="F."> <text>If SWARC awards the applicant a license, SWARC’s notice of award to the successful applicant shall include notice that:</text> <paragraph num="(1)"> <text>The Commission shall evaluate and approve the awardee’s sports wagering operations before issuing a license to the applicant;</text> </paragraph> <paragraph num="(2)"> <text>The awardee may begin sports wagering operations only after it has been issued a license to do so by the Commission; and</text> </paragraph> <paragraph num="(3)"> <text>The awardee may not transfer the award to another person.</text> </paragraph> </paragraph> <paragraph num="G."> <text>If SWARC denies an application, SWARC’s written notice to the unsuccessful applicant shall include the applicant’s right to seek, under State Finance and Procurement Article, Title 15, Annotated Code of Maryland, review by the Maryland State Board of Contract Appeals as provided in State Government Article, §9-1E-15(n), Annotated Code of Maryland.</text> </paragraph> <paragraph num="H."> <text>SWARC shall notify the unsuccessful applicant, in writing, that:</text> <paragraph num="(1)"> <text>SWARC’s decision to deny an application is a final action of SWARC;</text> </paragraph> <paragraph num="(2)"> <text>The decision may be appealed to the Maryland State Board of Contract Appeals in accordance with COMAR 21.10.07.02;</text> </paragraph> <paragraph num="(3)"> <text>If appealed, the written notice of appeal to the Maryland State Board of Contract Appeals shall be filed within 10 days from the date the unsuccessful applicant receives SWARC’s written decision; and</text> </paragraph> <paragraph num="(4)"> <text>The written notice of appeal to the Appeals Board may be filed:</text> <paragraph num="(a)"> <text>Pursuant to COMAR 21.10.05.01B; or</text> </paragraph> <paragraph num="(b)"> <text>By mail, to The Maryland State Board of Contract Appeals, 6 St. Paul Street, Suite 601, Baltimore, Maryland 21202.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Nothing in this subtitle may be construed to require SWARC to award any or all sports wagering licenses authorized under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text> </paragraph> <paragraph num="J."> <text>If SWARC does not award all available licenses, SWARC may, in its sole discretion, offer unawarded, available licenses through a subsequent competitive process as outlined in the sports wagering law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Surrender of License Award."> <paragraph num="A."> <text>An awardee may surrender a license award by notifying SWARC in writing of its surrender.</text> </paragraph> <paragraph num="B."> <text>Upon an awardee’s notification to SWARC of its surrender of the award, the awarded license is terminated, and the awardee may not:</text> <paragraph num="(1)"> <text>Receive a refund of its SWARC application fee; or</text> </paragraph> <paragraph num="(2)"> <text>Have its SWARC application or any documents submitted to SWARC in support of the application returned.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If an awardee surrenders a license award before the Commission issues the applicant’s license, SWARC may award the license to another applicant utilizing the criteria established in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this subtitle.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="License Awards — Surrendered, Lapsed, or Revoked Licenses."> <paragraph num="A."> <text>Before January 1, 2028:</text> <paragraph num="(1)"> <text>SWARC may award a surrendered, lapsed, or revoked sports wagering license to another applicant utilizing the criteria established in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this subtitle; and</text> </paragraph> <paragraph num="(2)"> <text>The Commission may issue the license to the applicant in accordance with State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland, COMAR 36.10, and this subtitle.</text> </paragraph> </paragraph> <paragraph num="B."> <text>On or after January 1, 2028, and if SWARC has been reconstituted pursuant to State Government Article, §9-1E-15(q)(2), Annotated Code of Maryland:</text> <paragraph num="(1)"> <text>SWARC may award a surrendered, lapsed, or revoked license to another applicant utilizing the criteria established in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>The Commission may issue the license to the applicant in accordance with State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland, COMAR 36.10, and this subtitle.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Continuing Obligations."> <paragraph num="A."> <text>At all times, an applicant, awardee, and sports wagering licensee:</text> <paragraph num="(1)"> <text>Shall conform to all documents it submitted in support of its SWARC application and Commission application;</text> </paragraph> <paragraph num="(2)"> <text>Shall conform to the terms and conditions of its memorandum of understanding submitted to SWARC pursuant to State Government Article, §9-1E-15(i)(2), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(3)"> <text>May not discriminate against a person who in good faith informs SWARC of an act or omission that the person believes constitutes a violation of:</text> <paragraph num="(a)"> <text>State Government Article, Title 9, Subtitles 1E, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>Regulations promulgated by SWARC or the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>If information submitted to SWARC or the Commission by an applicant, awardee, or licensee changes, the applicant shall, within 5 calendar days of the date that the applicant, awardee, or licensee knew or should have known of the change, submit written notification of the change to SWARC or the Commission.</text> </paragraph> <paragraph num="C."> <text>An applicant, awardee, or licensee has an affirmative and continuing obligation to:</text> <paragraph num="(1)"> <text>Inform SWARC and the Commission of an act or omission that the applicant, awardee, or licensee knows or should have known, constitutes a violation of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>Provide SWARC and the Commission with all information relating to its license eligibility in any form that SWARC or the Commission may request.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If, before the Commission issues a license, SWARC becomes aware of an awardee’s failure to comply with an applicable law or regulation, SWARC may:</text> <paragraph num="(1)"> <text>Reverse its determination; and</text> </paragraph> <paragraph num="(2)"> <text>Deny the license award.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If SWARC reverses its determination to award a license pursuant to §D of this regulation, SWARC shall notify the former awardee in writing of its determination and the basis for the determination.</text> </paragraph> <paragraph num="F."> <text>The notice of SWARC’s decision to reverse a license award shall include the notice of the former awardee’s appeal rights as set forth in Regulation .14H of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Burden of Proof."> <text>At all times, the burden of proof shall be on the applicant, awardee, or licensee to establish, by clear and convincing evidence, that the applicant, awardee, or licensee meets requirements under State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland, COMAR 36.10, and this subtitle.</text> </regulation> <regulation prefix="Regulation" num=".19" heading="Ownership Criteria."> <paragraph num="A."> <text>SWARC may not award a license to an applicant that has not demonstrated direct or indirect ownership of not less than 5 percent by individuals with personal net worth of less than $1,847,000 each.</text> </paragraph> <paragraph num="B."> <text>Owners of the applicant intended to satisfy this ownership criteria shall provide to the applicant a signed, notarized certification stating that the individual’s personal net worth is less than $1,847,000 and such certifications shall be submitted with the applicant’s SWARC application.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Request to Change Proposed Facility Location."> <paragraph num="A."> <text>This regulation pertains only to awardees of a Class B-2 sports wagering facility license.</text> </paragraph> <paragraph num="B."> <text>Notwithstanding any other provision of COMAR 36.11:</text> <paragraph num="(1)"> <text>An awardee of a Class B-2 sports wagering facility license may submit to SWARC and the Commission a request to amend the application for the sole purpose of altering the proposed location of the sports wagering facility, if:</text> <paragraph num="(a)"> <text>The Commission qualified the applicant on or before February 15, 2023;</text> </paragraph> <paragraph num="(b)"> <text>SWARC awarded the applicant’s sports wagering facility license on or before February 15, 2023; and</text> </paragraph> <paragraph num="(c)"> <text>The Commission has not yet issued the license.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The awardee shall submit its written request to the Commission and SWARC so that the request is received by both commissions on or before December 31, 2023.</text> </paragraph> <paragraph num="(3)"> <text>The awardee shall submit its request in a form required by both commissions, and shall provide:</text> <paragraph num="(a)"> <text>The reason for the request;</text> </paragraph> <paragraph num="(b)"> <text>The new proposed location;</text> </paragraph> <paragraph num="(c)"> <text>Documentation verifying the new proposed location has appropriate zoning;</text> </paragraph> <paragraph num="(d)"> <text>An affidavit attesting to the accuracy of the information in its request; and</text> </paragraph> <paragraph num="(e)"> <text>Any other information SWARC requires.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>SWARC may:</text> <paragraph num="(a)"> <text>Consider a timely written request;</text> </paragraph> <paragraph num="(b)"> <text>In SWARC’s discretion, grant or deny the request; and</text> </paragraph> <paragraph num="(c)"> <text>Notify the applicant and the Commission of the outcome.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Nothing in this section may be construed to change or supersede any other provision or requirement in State Government Article, §9-1E-01, et seq., Annotated Code of Maryland, or in this title.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.19 adopted as an emergency provision effective September 2, 2022 (49:20 Md. R. 912); adopted permanently effective November 14, 2022 (49:23 Md. R. 998)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20 adopted as an emergency provision effective December 12, 2023 (50:26 Md. R 1130); adopted permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> </subtitle>