# COMAR Title 36 — Maryland State Lottery and Gaming Control Agency

## Subtitle 03 — Gaming Provisions

### Chapter 08 — Collection of Taxes, Fees, and Penalties

**Authority:** State Government Article, §§9-1A-01, 9-1A-04, 9-1A-13, 9-1A-26, and 9-1A-33, Annotated Code of Maryland

**Administrative History:** Effective date:

**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

**Administrative History:** Regulations .01—.04 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)

**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)

**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)

**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)

**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)

**Administrative History:** Regulation .03C amended effective August 13, 2018 (45:16 Md. R. 776)

**Administrative History:** Regulation .04B amended effective January 7, 2016 (42:26 Md. R. 1597)

**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)

#### Regulation .01 General.

*COMAR 36.03.08.01*

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.

#### Regulation .02 Definitions.

*COMAR 36.03.08.02*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Fee” means an amount established by the Commission that an applicant or licensee is required to pay and includes:

    (a) A license fee under State Government Article, §9-1A-07(b), Annotated Code of Maryland;

    (b) A fee associated with an applicant's criminal history records check under State Government Article, §9-1A-20(d), Annotated Code of Maryland;

    (c) An application, license, or renewal fee under COMAR 36.03.02, 36.03.03, and 36.04.02;

    (d) 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;

    (e) 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;

    (f) 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

    (g) A renewal of a video lottery facility license under COMAR 36.03.03.10.

  (2) “Penalty” has the meaning stated in COMAR 36.03.04.02.

  (3) “Proceeds” has the meaning stated in State Government Article, §9-1A-01, Annotated Code of Maryland.

#### Regulation .03 Obligation to Pay.

*COMAR 36.03.08.03*

A. A tax that is due and payable shall be paid by an applicant or licensee and collected in accordance with State and federal law.

B. For a fee or penalty:

  (1) The Commission shall issue an invoice or other order to pay; and

  (2) An applicant or licensee shall remit payment to the Commission within 30 days after the date of the invoice or order to pay.

C. Reconciliation of Proceeds.

  (1) In reconciling proceeds as described in this section, a facility operator shall account for video lottery terminal proceeds separately from table game proceeds.

  (2) 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.

  (3) A facility operator may not subtract losses pursuant to §C(2) of this regulation for more than 7 consecutive gaming days.

#### Regulation .04 Collection and Deposit of Payments.

*COMAR 36.03.08.04*

A. An applicant or licensee shall pay a fee or civil penalty by:

  (1) Wire transfer;

  (2) Money order;

  (3) Certified check made payable to the “State of Maryland”; or

  (4) Any other manner designated by the Commission.

B. The Commission shall deposit payment of:

  (1) 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;

  (2) 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:

    (a) An annual fee of $425 for a video lottery terminal; and

    (b) An annual fee of $500 for a table game; and

  (3) 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.

C. The Commission may recover from an applicant or licensee whose payment of a fee or penalty is overdue:

  (1) The unpaid amount of the fee or penalty;

  (2) Revenues lost to the State as the result of the nonpayment;

  (3) Attorney's fees; and

  (4) Any other penalty, interest, cost, and expense allowable by law.

D. The failure of a licensee to timely pay a fee or penalty is a violation of a directive of the Commission.

E. 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.

F. 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:

  (1) Failure to pay a fee or penalty;

  (2) Unsatisfactory performance;

  (3) Failure to timely fulfill all of the Commission's requirements; or

  (4) Material breach of a term or condition of a license.

G. The Commission shall account for collection of a fee or penalty in accordance with applicable law.