This subtitle applies to fantasy competitions regulated by the Commission under State Government Article, §§9-1D-01—9-1D-05, Annotated Code of Maryland. This subtitle applies to fantasy competitions that are offered to individuals by means of a fantasy competition platform. In addition to the terms defined in COMAR 36.01.01, in this chapter the following terms have the meanings indicated. Terms Defined. “Beginner player” means a fantasy competition player who: Has entered fewer than 51 fantasy competitions offered by a single fantasy competition operator; and Is not a highly experienced player. “Entry fee” has the meaning stated in State Government Article, §9-1D-01, Annotated Code of Maryland. Fantasy Competition. “Fantasy competition” means any online fantasy or simulated game or contest such as fantasy sports, in which: Participants own, manage, or coach imaginary teams; All prizes and awards offered to winning participants are established and made known to participants in advance of the game or contest; 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); 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; Players may pay an entry fee; The operator offering the competition receives compensation for organizing the fantasy competition; and Fantasy competition players compete against other fantasy competition players and not the operator. “Fantasy competition” does not include: Sports wagering under State Government Article, §§ 9-1E-01 et seq., Annotated Code of Maryland; A fantasy competition where a player competes directly or only against another player’s fantasy lineup; 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; 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; A wager the involves two or more wagers combined into one wager an commonly referred to as a parlay; or 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. “Fantasy competition operator”, or operator has the meaning stated in State Government Article, §9-1D-01, Annotated Code of Maryland. “Fantasy competition 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 fantasy competitions; or Hardware, software, firmware, communications technology, or other equipment that a registered fantasy competition operator uses to: Allow a player to participate in fantasy competitions; Display the fantasy competition outcomes and other similar information necessary to facilitate fantasy competitions; Review player accounts and generate financial reports; Suspend a fantasy competition; Input outcomes for fantasy competitions; and Set any configurable parameters. “Fantasy competition player”, or “player” means an individual who participates in a fantasy competition offered by an operator.. “Fantasy contractor” means any person or entity who: Is registered to do business in the State; Operates in the State; Manages a fantasy competition platform; Works under a contract with a fantasy competition operator; and Has regular access to: Nonpublic portions of a fantasy competition operator’s system; Information on an operator’s computer network that is not publicly available; or An operator’s proprietary information that may affect the outcome of a competition. “Highly experienced player” means a fantasy competition player who has: Entered more than 1,000 fantasy competitions offered by a single operator; or Won more than three fantasy competition prizes valued at $1,000 or more. “Location percentage” has the meaning stated in State Government Article §9-1D-01, Annotated Code of Maryland. “Minor” means any individual younger than 18 years old. “Player funds” means funds deposited by a fantasy competition player into an account to facilitate entry into a fantasy competition. “Private fantasy competition” means a fantasy sports competition that is only open to: Employees of an operator; Immediate family members of an employee of an operator; and Friends of an employee of an operator. “Prize” means anything of monetary value, including: Cash; Competition credits; Merchandise; Monetary equivalents, subject to the approval of the Commission; or Admission to another competition in which a prize may be awarded. “Proceeds” has the meaning stated in State Government Article, §9-1D-01, Annotated Code of Maryland. “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. “Scripts” means commands that a computer program can execute to automate processes on a fantasy competition platform created by: A fantasy competition player; or A third party for use by a fantasy competition player. “Segregated account” means a financial account that separates funds owned by a fantasy player from the operational funds of an operator. 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 Effective date: January 14, 2019 (46:1 Md. R. 13) Regulation .06 amended effective October 7, 2019 (46:20 Md. R. 848) Regulation .07 amended effective October 7, 2019 (46:20 Md. R. 848) Regulation .09 amended effective October 7, 2019 (46:20 Md. R. 848) Regulation .11A amended effective October 7, 2019 (46:20 Md. R. 848) Regulation .13 amended effective October 7, 2019 (46:20 Md. R. 848) 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) 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) Regulation .02B amended effective July 7, 2025 (52:13 Md. R. 657) Unless an operator is registered with the Commission, the operator may not offer a fantasy competition in the State. 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. A request for registration shall include: The name and principal address of the operator; The name and address of each fantasy competition contractor, if applicable; The name and address of the operator’s resident agent in the State; The name and address of the fantasy competition contractor’s resident agent in the State, if applicable; A point of contact for the operator and each named fantasy competition contractor; If information in the registration application changes the operator shall notify the Commission within 10 work days after the change occurs. 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. An operator shall ensure that Agency staff may access the fantasy competition platform to: Test the fantasy competition offering; Verify that the fantasy competition’s terms, instructions, and rules are: Consistent with applicable laws and Agency regulations; Consistent with State Government Article, Title 9-1D, Annotated Code of Maryland and this subtitle; and Prominently displayed; Verify that the fantasy competition operates in compliance with State Government Article, Title 9, Subtitle 1D, Annotated Code of Maryland and this subtitle; and Monitor the fantasy competition to verify ongoing compliance with State Government Article, § 9-1D-01(d), Annotated Code of Maryland and this subtitle. An operator shall provide evidence satisfactory to the Commission that it has established and will implement procedures to: Restrict fantasy competition play as required under COMAR 36.09.03.03; Comply with financial standards as required under COMAR 36.09.04; Comply with its Agency-approved responsible gaming plan as required under COMAR 36.09.05; and Any additional information required by the Commission. 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. A determination under this regulation is final and not appealable. The Commission may maintain a publicly available list of approved registered fantasy competition operators. New Fantasy Competition. 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. An operator may not offer a fantasy competition until the Commission has approved the offering. Modifications. 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. Minor modifications to an approved fantasy competition are permitted and may include: A previously offered competition that is in the same format; The prize value or entry fee of for the fantasy competition; The number of entries permitted; Adjustments to a scoring system related to number of points a player may obtain for a particular event; and Adjustments to a salary cap or budget related to the fantasy team a player creates. An operator shall pay the Commission a nonrefundable registration fee of $1,000 with the operator’s registration application. Unless a registration is renewed, an operator’s registration expires 1 year from the last date of registration. 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. 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. Enforcement action may include: Suspension of an operator’s registration; or Termination of an operator’s registration. An operator whose registration is suspended or terminated shall: Cease offering fantasy competitions in the State; and Take action directed by the Commission. 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. 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 Effective date: 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) 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) Chapter revised effective July 7, 2025 (52:13 Md. R. 657) Participation in a fantasy competition is prohibited for: An individual under the age of 18; A Commission member; An employee of the Agency; 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: Spouse; Child; Sibling; or Parent or parent-in-law; or An individual who has under COMAR 36.09.05. 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. An affiliated individual may participate in a fantasy competition if: Participation is for testing purposes; or The competition is a private fantasy competition. 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. 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. Scripts. 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: Facilitating changes in many lineups at one time; Facilitating use of a commercial product designed to identify advantageous game strategies; Submitting entry fees or adjusting the athletes selected by a fantasy competition player; or Gathering information about the performance of others for the purpose of identifying or entering competitions against other less successful fantasy competition players. Scripts shall be available to all fantasy competition players by incorporation as a game feature or prominently displayed. Beginner Games and Identification of Highly Experienced Players. An operator may offer fantasy competitions that are limited to beginner players and exclude highly experienced players. 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. Fantasy Competition Entries. An operator shall identify the number of entries a fantasy competition player may submit for each fantasy competition. Limit on Number of Accounts. An operator may not permit a player to establish more than one account. Disputes. An operator shall provide a mechanism for a player to raise a dispute with an operator. Data. An operator shall prominently display the source of the data utilized in determining results. An operator may not offer a fantasy competition based on a sporting event featuring amateur athletes who are primarily under 18 years old. Except for professional athletes and professional sports, an operator’s advertisement may not depict: Minors; Students; or Schools or colleges. 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 Effective date: 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) 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) 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) 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) 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) 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) 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) Chapter revise effective July 7, 2025 (52:13 Md. R. 657) An operator shall hold a fantasy competition player’s funds: In a segregated account that separates player funds from the operator’s operational funds; or In a special-purpose, segregated account that is maintained and controlled by a properly constituted corporate entity that: Is not the fantasy competition operator; 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; Requires a unanimous vote of all corporate directors to file for bankruptcy; 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; 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; 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 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. An operator shall comply with all applicable State and federal requirements for data security. This regulation does not apply to season-long fantasy competition. 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. A player may request an operator to temporarily or permanently increase the player’s deposit limit above $5,000 per calendar month if: 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 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. A fantasy competition operator may not extend credit to a fantasy competition player. 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. The certified public accountant that conducts the financial audit shall: Comply with generally accepted accounting principles; and Submit the financial audit report to the Commission within 180 days after the operator’s fiscal year end. Auditor Exception. The same certified public accountant may not perform more than five consecutive financial audits for a fantasy competition operator unless: The fantasy competition operator requests and obtains preapproval of the Commission; and A different audit partner manages the audit after 5 years. If a different audit partner cannot be assigned, a fantasy competition operator shall advise the Agency prior to the beginning of the audit. 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. An operator shall retain 85 percent of its fantasy competition proceeds and pay the remaining 15 percent to the Commission. A fantasy competition operator shall submit its 15 percent share of proceeds and tax return to the Commission quarterly: No later than the 15th day of the month that follow the end of each quarter; For the tax return, by email as designated by the Commission; and For the tax, by wire transfer. 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. 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. For a fantasy competition prize paid that is $600 or greater, the operator shall: Report the prize to the Comptroller of Maryland and the Internal Revenue Service in accordance with applicable tax laws; and. Provide the player a 1099 MISC. tax form. A fantasy competition operator shall comply with all applicable tax laws and regulations. A fantasy competition operator shall provide a player with notice of State and federal tax reporting and withholding requirements: Before a fantasy competition begins; and When a player receives winnings in excess of $600. 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 Effective date: 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) Regulation .01 amended effective July 7, 2025 (52:13 Md. R. 657) 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) Regulation .02 amended effective July 7, 2025 (52:13 Md. R. 657) 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) Regulation .03 amended effective July 7, 2025 (52:13 Md. R. 657) 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) Regulation .04 amended effective July 7, 2025 (52:13 Md. R. 657) 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) Regulation .05A, B amended effective July 7, 2025 (52:13 Md. R. 657) Regulation .05C, D adopted effective July 7, 2025 (52:13 Md. R. 657) 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) Regulation .06 amended effective July 7, 2025 (52:13 Md. R. 657) 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) Regulation .07B amended effective July 7, 2025 (52:13 Md. R. 657) 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. An operator shall implement and prominently display procedures for players to self-exclude themselves. Self-excluded persons may not collect a prize or recover a loss. A request for self-exclusion from a fantasy competition may result in exclusion from other gaming platforms that the operator offers. A request for exclusion submitted to an operator: Is not a request to be placed on the Commission’s Voluntary Exclusion List for participating in fantasy competitions under COMAR 36.01.03; Will not result in inclusion on the Commission's Voluntary Exclusion List for participating in fantasy competitions; and Is not administered or maintained by the Commission. An operator shall establish a responsible gaming plan that includes at least the following elements: Goals; Procedures and deadlines for implementation; Identification of personnel responsible for implementation; Responsibilities of personnel identified as responsible for implementation; Training for personnel on problem gambling and identifying compulsive play; Means of educating fantasy competition players about: Problem gambling, including compulsive play; and Problem gambling treatment resources, including treatment and prevention programs; Placement of responsible gambling awareness materials on the fantasy competition platform; and Any other element required by the Commission. An operator shall submit to the Commission the responsible gaming plan required under §A of this regulation for review and approval. An operator shall submit any amendments to a responsible gaming plan to the Commission prior to implementation. An operator shall submit to the Commission an annual report describing the operation of the responsible gaming plan. An operator shall: Prevent the participation in fantasy competitions by individuals who have self-excluded themselves from participating in a fantasy competition; and Train employees on compulsive play. If an individual is directly self-excluded or on the Commission’s Voluntary Exclusion List for fantasy competition play, an operator may not: Market a fantasy competition by phone, text, email; or Knowingly direct any form of individually targeted advertisement or marketing material to the individual. 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 Effective date: 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) Regulation .01 amended effective July 7, 2025 (52:13 Md. R. 657) 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) Regulation .02 amended effective July 7, 2025 (52:13 Md. R. 657) 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) Regulation .03 amended effective July 7, 2025 (52:13 Md. R. 657)