Lottery Laws and Regulations. A retailer shall: Comply with all lottery laws and regulations of the Agency; Be aware of all lottery laws and regulations pertaining to the duties and responsibilities of a retailer; and Inform the Director of an act or omission that the retailer knows or should know constitutes a violation of lottery laws and regulations. Assume the cost of any repairs to the retailer’s location arising from the removal of the Agency’s equipment. Services. A retailer shall: Provide specified services for the Agency, including the sale, cashing, and issuance of lottery tickets and coupons or vouchers, as directed by the Agency; Sell a ticket for cash only; Sell a ticket only at the location specified on the retailer’s license. 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; Exercise courteous and fair treatment to lottery players; Sell all lottery games as directed by the Agency; Except for those requiring submission of a claim form to the Agency, pay every winning ticket upon validation under COMAR 36.02.06; 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; Charge no fee for the issuance or cashing of checks for lottery winnings; Display the retailer’s license in a prominent location; Keep playslips in stock and available to players; Not sell any ticket or lottery-style ticket other than those made available for sale by the Agency; 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; Prominently post point-of-sale and other promotional or player-related materials supplied by the Agency; Free of charge, provide the latest winning game data; Properly manage customer data; and 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. Care of Terminals. A retailer shall: Place terminals within the retailer’s premises only on a site approved by the Agency; Provide sufficient space for the proper operation of the terminal; Before installation of the terminal, provide electrical requirements as prescribed in the Lottery Central System contractor pre-site form; Participate in training approved by the Agency; Replace ticket stock when necessary; Provide reasonable care and security for ticket stock, tickets, and supplies; 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; Except as directed by the Agency or the Lottery Central System operator, not perform mechanical or electrical maintenance on the terminal or lottery equipment; As directed by the Agency, immediately notify the Lottery Central System contractor’s technical support operations center in the event of a terminal malfunction; As directed by the Agency, make the terminal available for the sale and cashing of tickets; 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; Pay the electrical utility charges in connection with the operation of the terminal; and Assume the cost of the repairs to the terminal, other lottery equipment, or the retailer’s property related to: Unauthorized attempts to modify or repair the terminal or other lottery equipment; Unauthorized attempts to move the terminal or other lottery equipment; and Other damage to the terminal, lottery equipment or the retailer’s property including: Intentional damage; Defacement of the property; and Negligence resulting in damage to the property. 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. A retailer may not: Sell a ticket at any price higher than that established by the Director; Sell to or cash a ticket for an individual younger than 18 years old; Allow an employee younger than 18 years old to sell or cash a ticket or operate lottery equipment; Extend credit in any manner for the sale of a ticket; Offer customers alcoholic beverages or cannabis to induce them to purchase or redeem a ticket; Charge a player a fee for any lottery related service or convenience; Sell an instant ticket prior to activation; Fail to secure ticket stock, tickets, or lottery equipment; Resell a ticket; Exchange terminal game ticket stock with another retailer; Misuse terminal game ticket stock; Sell any ticket or lottery-style ticket other than those made available for sale by the Agency; or Offer a game of chance on the retailer’s premises, unless the retailer is: A video lottery facility; A special licensee for instant ticket lottery machines; 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; An operator of a device that is subject to regulation by the Comptroller under Criminal Law Article, §12-304, Annotated Code of Maryland; A legal operator of instant bingo under Criminal Law Article, §12-308, Annotated Code of Maryland; or Authorized to offer paper tip jar gaming under Criminal Law Article, Title 13, Annotated Code of Maryland. 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. Void Ticket. A ticket may not be sold for a drawing after that drawing has occurred. A ticket sold for a drawing after that drawing has occurred is void. Nothing prevents a person from giving a ticket as a gift. Only a licensed retailer or the retailer’s employee may sell a ticket. The Agency may sell a ticket or a lottery subscription. A retailer shall require that a person pay for a ticket at the time of purchase. 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. If a person ceases to be a retailer, the person shall: 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; Be financially liable for the repair or replacement of Agency equipment lost or damaged; and Assume the cost of repairs to the retailer’s location arising from the removal of the equipment in §B(1) of this regulation. Retailers shall activate an instant ticket pack before selling an instant ticket from that pack. 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. Playslip or ePlayslip Purchase Procedure. If a player wishes to purchase a ticket using a playslip or an ePlayslip: A player shall complete a playslip and give it to the retailer; and The retailer shall: Process the playslip or ePlayslip using the terminal; and Issue to the player the specified draw game ticket for the game being played. Vocalized Purchase Procedure. Randomly Selected Game Data. 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. 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. Player Selected Game Data. If the player wishes to provide playable game data, a retailer may allow a player to vocalize the game data. The retailer shall enter the information provided by the player, including: The game type; The dollar amount the player wants to play; The game data the player selects; The number of games the player wishes to play; and Any other information required by the Agency. 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. Retailer Assisted Purchase Procedure. 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. 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. Player-Activated Terminal. 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. The PAT shall generate and dispense the ticket. If a ticket is lost, stolen, or missing from a retailer, the Director may offset an amount due from the retailer for the ticket. The Director may require the party responsible for a lost, stolen, or missing ticket to reimburse the Agency. The Agency is not liable to a retailer or player for a lost or stolen ticket. A ticket is void if it: Is mutilated; Is altered; Is irregular; Is expired; Fails to meet validation standards; or Fails to meet security requirements. If a retailer is reimbursed for a lost, stolen, or missing ticket, the retailer shall: Hold the Agency harmless; and Provide the Director with as much information considered necessary to process the claim. A retailer may not seek indemnification from another source if reimbursed by the Director for a lost, stolen, or missing ticket. As soon as practical after each drawing, a retailer may: Post in a prominent and conspicuous location within the retailer’s business location the winning game data; and Keep the winning game data posted until the next drawing. A retailer shall display active winning game data as requested by the Agency. The Agency is not responsible for a retailer’s failure to post or properly post current official winning game data. A retailer shall pay the holder of a valid winning lottery ticket up to $600. A retailer shall pay the holder of a valid winning ticket regardless of whether the retailer sold the ticket. 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. Validated and Paid Tickets. Unless a ticket is cashed at a PAT, after a ticket is validated and paid, the retailer: May not return the ticket to the winner; and Shall secure the ticket. Cashing Period. A retailer or Agency claim center may not cash or otherwise process a winning ticket more than 182 days after the: Drawing date; Date of sale of a Fast Play game ticket; or Announced end of game for an instant game. Unusual Claims. The Agency shall use an analytics tool to identify an unusual claim. If the Agency identifies an unusual claim, the Agency may: Require the claimant to claim a prize at the Agency’s headquarters; Delay payment of the prize; Investigate the circumstances surrounding the purchase of the ticket and claiming of Interviewing the claimant; and Interviewing the retailer that sold the ticket; and Require future claims made by the same claimant to be reviewed as an unusual claim. Establishment. The Director may establish an Expanded Cashing Authority Program. Retailers selected by the Director may pay cash prizes up to $5,000. Participation. Before authorizing a retailer to participate in the Expanded Cashing Authority Program, the Director may consider: The length of time the retailer has been licensed; The financial record and responsibility of the retailer; The retailer’s compliance with the requirements of this subtitle; The need for expanded cashing authority within a specific geographical location; The number of existing retailers with expanded cashing authority; The overall performance of the retailer since the license was issued; and Any other factor deemed relevant by the Director. Retailer Requirements. A retailer in the Expanded Cashing Authority Program shall: Maintain a separate bank account solely for lottery monies to the credit of the State Lottery Fund; 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; 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; For prizes over $600, utilize the terminal to determine, whether a holder of a winning ticket: Owes a State obligation; or Is on the Commission’s Voluntary Exclusion List described in COMAR 36.01.03; and 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. Recertification for the Program. The Director may establish a periodic recertification process for retailers in the Expanded Cashing Authority Program. Removal from the Program. A retailer participating in the Expanded Cashing Authority Program may be removed from the Program at any time by the Director. Removal from the program does not automatically otherwise terminate a retailer’s license. The Director's decision to remove a retailer from the program is final and not subject to appeal. A retailer shall: Be financially responsible to the Agency for all: Revenues derived from the sale of tickets based on the ticket price established by the Director; Tickets in the possession of the retailer; and Except for tickets cashed through a PAT, tickets that the retailer cashed or canceled which are later submitted to the Agency for payment; Make regular weekly settlement and payment in the manner, in the place, and on the day of the week specified by the Agency; Make more frequent settlement and payment remittances when required by the Director; Pay a service charge to the Agency for any dishonored check or electronic transfer; Promptly pay a bonding fee in such amount as the Director determines, when required; and Promptly pay any fees under this subtitle. Any payment due to the Agency not made within 10 days after the due date shall be charged interest until paid. The Agency may refer delinquent accounts to the Central Collection Unit of the Department of Budget and Management. Delinquent accounts shall be increased by any additional fees authorized by State Finance and Procurement Article, §3-304(a)(2), Annotated Code of Maryland. Definitions. In this regulation, the following terms have the meanings indicated. Terms Defined. ADA means the certain law commonly known as the Americans with Disabilities Act of 1990, as amended. “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. “Applicant” means a person that applies for a new retailer license or a change of ownership of a retailer. “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. “Disability” has the meaning stated in the ADA. Compliance. The Agency shall: Inspect the site of an applicant for compliance with the ADA for player accessibility; 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 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. The Agency may impose a sanction or take an action on a license for failing to comply with this regulation. Waivers. 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 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. General. A retailer license may not be transferred. A change in ownership of a retailer’s business: Automatically voids the existing retailer license; and Requires an application for a new license. A change of ownership includes: A transfer of ownership of the retailer’s business; The addition of an owner that was not on the original license application; or Except as provided in §A(4) of this regulation, a change to the retailer’s business 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. Retailer Responsibilities. A retailer that transfers ownership: Is responsible for all tickets, lottery equipment, and receipts from lottery sales; and Remains responsible for fulfilling all obligations to the Agency until the change of ownership is approved and the Agency issues a new license. A new owner of the business may apply for a license under COMAR 36.02.02 or relinquish lottery equipment remaining on the premises. 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 Effective date: May 13, 2013 (40:9 Md. R. 790) Regulation .02C amended effective January 7, 2016 (42:26 Md. R. 1597) Chapter revised effective January 14, 2019 (46:1 Md. R. 13) Chapter revised effective December 2, 2019 (46:24 Md. R. 1104) Regulation .02 amended effective September 21, 2020 (47:19 Md. R. 850) Regulation .12 amended effective March 9, 2020 (47:5 Md. R. 313) Chapter revised effective May 26, 2025 (52:10 Md. R. 439)