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)