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. 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. 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. 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. Submission Requirements. If the Commission requires an application to be submitted by a particular date: 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 An application submitted after the deadline may not be accepted or considered by the Commission. An applicant may not submit an application less than 1 year after the Commission has: Taken final action on a license denial of a previous license application involving the applicant; Taken final action on a sanction resulting in revocation of a previous license involving the applicant; or Provided an individual with written notice of termination of a temporary license. Applications. An application submitted to the Commission shall: 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 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. An applicant shall include the applicable nonrefundable application fee with the license application. 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. 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. 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. 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. The Commission shall review and consider a timely, complete application submitted as required in this regulation. Changes in Application. 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. After an application has been filed by an applicant, the applicant may not amend the application except to: Address a deficiency in accordance with a notice sent under §B(4) of this regulation; Clarify information contained in the application as required by the Commission or the Commission staff; or 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. 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: The change in the circumstances surrounding the application that necessitates the amendment; The nature of the amendment; and The reason why the amendment is necessary to bring the application into compliance with the law or the regulations of the Commission. The Commission or Commission staff shall grant or deny each request submitted under §C(3) of this regulation and notify the applicant. A request shall be granted if the applicant establishes by clear and convincing evidence that: The circumstances requiring the amendment were outside the control of the applicant; Before the change in the circumstances surrounding the application, the application complied with the applicable provisions of law or regulations of the Commission; and The amendment is necessary to bring the application into compliance with the applicable provisions of the law or regulations of the Commission. An applicant may withdraw a license application if: The applicant submits a written request to the Commission to withdraw the application; and The written request is submitted before the Commission has: Denied the application; or Terminated a temporary license. If an applicant withdraws an application, the application fee will not be refunded. Notice of Intended Change in Licensed Sports Wagering Employee’s Employment Status. 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. The Commission shall conduct a background investigation of the individual to verify that the individual’s license remains in good standing. 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: Information, documentation, or assurances to establish, by clear and convincing evidence, that the licensee remains qualified to hold a license; and Any other information, documentation, or assurances required by the Commission. 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. 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. A sports wagering employee may not effect a change in employment status without prior Commission approval. 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. Administrative Costs of Background Investigations. 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: 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 Any payments made by the Commission to a person approved by the Commission to conduct background investigations. Failure to reimburse the Commission shall be grounds for disqualification of an applicant or disapproval of a licensee’s change in employment status. 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. 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. The Commission shall refund to an applicant any unused amount of the advance deposit. Payment and Collection. An applicant shall pay the administrative costs and fees required under this regulation by: Wire transfer; Money order; Certified check made payable to the “Maryland Lottery and Gaming Control Commission”; or Any other manner designated by the Commission. The Commission may address an applicant’s or licensee’s failure to pay a required fee, penalty, or proceeds: As provided in COMAR 36.10.12; or By filing a claim against the performance bond that covers the applicant. Continuing Obligations. 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. 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. 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. An applicant or licensee has an affirmative and continuing obligation to: 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; Provide the Commission with all information relating to qualifications in the form specified by the Commission; Provide assistance and information required by the Commission; Cooperate in a Commission inquiry, investigation, or hearing; On issuance of a request to answer or produce information, evidence, or testimony requested by the Commission, provide it; and 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. 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. 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: The applicant; A director, officer, or key management individual employed by the applicant; A partner of the applicant; Any other person who owns, controls, or directs a legal or beneficial interest of 5 percent or more in the applicant; A principal; A principal employee; A principal entity; A holding company of the applicant; or An affiliate of the applicant. An individual listed under §A of this regulation shall furnish the individual’s: Full name and any previous names or aliases; Date of birth; Physical description; Home and business addresses and telephone numbers; Driver’s license number and state of issuance; Social Security number; Photograph in a type and size required by the Commission; Fingerprints for a criminal records check: For a State resident, from an electronic fingerprinting service approved by the Commission; or 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 Any other document or information required by the Commission. A person listed under §A of this regulation that is not an individual shall furnish, with its application documents: 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; For a corporation, documentation showing the: State in which the applicant is incorporated; and Name and address of the applicant’s resident agent for service of process in Maryland; and 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. 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. The Commission may require an applicant to furnish the information listed in §B of this regulation for the applicant’s family and associates. 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. An individual or authorized representative of a person that is required to submit an application, or be investigated, shall: Submit to the Commission a complete legible set of the individual’s fingerprints for: The Federal Bureau of Investigation; and The Maryland Criminal Justice Information System; Complete a background form supplied by the Commission which includes a statement disclosing whether the individual has ever been: Arrested; Convicted of, pled nolo contendere to, or received probation before judgment for, a felony or misdemeanor, other than a misdemeanor traffic offense; Sanctioned by a government agency related to gaming or sports wagering; Found liable in connection with a civil action related to gaming or sports wagering; A debtor in a bankruptcy proceeding; or Denied a bond; and Complete any acknowledgement forms required by law including an FBI Privacy Act notice. The forms submitted in compliance with this regulation shall be accompanied by the: Fee authorized under Criminal Procedure Article, §10-221(b)(7), Annotated Code of Maryland, for access to Maryland criminal history records; and Mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check. 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. 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: Verify all information provided in all documents or forms submitted to the Commission or the SWARC; and Conduct a background investigation of the individual. A person who is required to provide information under this chapter shall: As applicable, execute these forms: An irrevocable Acknowledgment and Disclosure; Affidavit of Representative of Applicant; An Irrevocable Authorization for Release of Information; Certificate of Business Relationship; and Any other release or authorization required by the Commission to investigate the qualifications of the applicant; and 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: Information the person provided to the jurisdiction while being investigated for a gaming or sports wagering-related license or qualification; Information that the jurisdiction obtained while investigating the person for a gaming or sports wagering-related license or qualification; and Any other information about the person pertaining to the person’s license or qualifications related to gaming or sports wagering in another jurisdiction. If the applicant is a corporation, the application documents shall include a: Statement of when the corporation was organized; Copy of the articles of incorporation and bylaws of the corporation; 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 Statement and documentation of whether the corporation has filed restated articles of incorporation. If the applicant is an unincorporated business association, the application documents shall include a: Copy of each organizational document of the applicant, including any partnership agreement; and Description of any oral agreements involving the organization of the applicant. An applicant shall disclose all: Principals; Principal entities, as defined in COMAR 36.03.01.02; and Persons who have, or exercise, voting rights in or as to the applicant. In addition to the requirements in §A of this regulation, the applicant shall disclose the following: If authorized to issue capital stock, for each class of stock authorized: Total number of shares; Par value, if any; Voting rights; Current rate of dividend; and Number of shares outstanding and the market value of each share; and If a corporation: Include a certified copy of each voting trust or voting agreement in which capital stock of the applicant is held, and describe the: Name and address of each stockholder participating in the trust or agreement; Class of stock involved; and Total number of shares held by the trust or agreement; Provide the terms of any proxy by which any capital stock may be voted, and provide the: Name and address of the person holding the proxy; Name and address of the stockholder who granted the proxy; Class of stock for which the proxy may vote; and Total number of shares voted by the proxy; 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; State whether the: Applicant’s stock may be traded through options; and 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; Include a copy or a description of each agreement or contract disclosed under §B(2)(d) of this regulation; 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 Fully disclose any stock options that may exist or have been granted. 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. For each individual listed under §A of this regulation, the applicant shall provide: The individual’s name and address; Each position or office of the applicant held by the individual; The individual’s principal occupation during the 5-year period preceding the date on which the application documents are submitted to the Commission; and The nature and extent of any ownership interest that the individual has in the applicant. The application documents shall identify any principal entity of an applicant, and for each: Describe the principal entity’s ownership of the applicant; Describe the extent of the principal entity’s control over the applicant; and Include information and documents required under Regulations .03 through .07 of this chapter. Principal Entities as Approved Institutional Investors. A principal entity may request the Commission to waive the requirement of conducting a full background investigation of the principal entity. The Commission may approve a principal entity’s request for a waiver if the principal entity: Meets one of the definitions of institutional investor in Chapter .01 of this subtitle; and Satisfactorily completes and submits an institutional investor waiver application as required by the Commission. A principal entity for which the Commission has approved a waiver request under §B(2) of this regulation is an approved institutional investor. An institutional investor may maintain an approved waiver as an institutional investor by: Maintaining an ownership interest in an applicant or licensee; and Providing the Commission with the statement of ownership percentage it reported to the Securities and Exchange Commission: Annually, before the last day of April; or As otherwise directed by the Commission. 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: The waiver may apply to one or more applicants or licensees in which the entity is an institutional investor; and The institutional investor shall submit an institutional waiver application every 5 years from the date of the Commissions last approval. 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: The approved institutional investor shall notify the Commission in writing if the institutional investors ownership interest falls below 5 percent; and 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. Qualified Principal Entities. This section does not apply to a principal entity that is an approved institutional investor under §B of this regulation. If the Commission investigates a principal entity’s application for qualification and determines that the principal entity is qualified: The Commission will recognize the qualification determination for 5 years from the date that the principal entity is found qualified; and 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. A qualified principal entity shall comply with the continuing obligation requirements described in Regulation .03 of this chapter. If a qualified principal entity no longer meets a qualification requirement, the Commission may require the principal entity to: File a new principal entity disclosure form; Submit to a new background investigation; and Pay all fees and costs associated with the new principal entity disclosure form and investigation. An applicant shall disclose in its application documents whether the applicant, or a principal or partner of the applicant: Has ever held an ownership interest in a licensee of the Commission; or Is currently engaged in the business of sports wagering in another jurisdiction, and the nature and extent of that involvement. General. 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: Are comprehensive; Are thorough; and Provide similar safeguards to those in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland. The Commission may not waive a requirement that: Relates to minority business enterprise participation goals and procedures established under State Government Article, §9-1E-07, Annotated Code of Maryland; or Is a requirement of SWARC under State Government Article, §9-1E-15, Annotated Code of Maryland, or regulations promulgated by the SWARC. If the Commission has established an abbreviated process for licensing, the Commission may: Waive some or all of the requirements in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; and Issue a license to a person having a similar license from a jurisdiction described in §A(1) of this regulation. The Commission may delegate its authority to decide whether to apply an alternative licensing standard to staff. Process. 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. A written request shall contain at least the following: The state in which the applicant holds a valid sports wagering or related license; An explanation of the unique circumstances justifying the request; and Any other information requested by staff or the Commission. Upon receipt of a request that fails to comply with §B(1) and (2) of this regulation, staff shall notify the requestor: Of any deficiency; and That the waiver request will not be considered unless the identified deficiency is corrected. Decision. Upon receipt of a request that complies with §B of this regulation, staff shall: Present the request to the Commission as soon as practicable; or If the Commission has delegated to staff the authority to decide the request, decide the request as soon as practicable. After the Commission or staff decides whether to grant the request, staff shall notify the requestor. The decision of the Commission or staff regarding an alternative licensing requirement is final and not appealable. General. 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. The Commission may grant an exemption from, or waiver of, a regulatory licensing requirement, so that an applicant or licensee is not: Required to comply with a regulatory licensing requirement; or Subject to specific regulatory basis for denial of a license. The Commission may delegate to staff its authority to grant an exemption from, or waiver of, a regulatory licensing requirement. Process. A person requesting an exemption or waiver under this regulation shall submit a written request in a format specified by the Commission. A written request shall contain at least the following: The COMAR section for the standard for which the applicant seeks the exemption or waiver; Detailed facts in support of the request; An explanation of the unique circumstances justifying the request; and Any other information requested by staff or the Commission. 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: Of any deficiency; and That the request will not be considered unless the identified deficiency is corrected. Decision. Upon receipt of a request that complies with §§A and B of this regulation, staff shall: Submit the request to the Commission as soon as practicable; or If the Commission has delegated to staff the authority to decide the request, make a decision on the request as soon as practicable. At any time before or after a waiver or exemption request has been granted, the Commission may: Limit or place restrictions on the exemption or waiver as the Commission considers necessary in the public interest; and Require the applicant or licensee who is granted the exemption or waiver to: Cooperate with the Commission; and Provide the Commission with any additional information required as a condition of the exemption or waiver. After the Commission or staff decides whether to grant or deny the request, staff shall notify the requestor of the decision. The decision of the Commission or staff regarding an exemption or waiver of a licensing requirement is final and not appealable. The Commission may require an applicant or licensee to obtain a performance bond before the Commission issues or renews a license. The performance bond shall: 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 Identify the Agency as the obligee. If a performance bond is required for a license, the Commission may not issue or renew a license unless it has: Exempted the applicant or licensee from the performance bond requirement; or Received satisfactory documentation of the performance bond. 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. Performance bond amounts and exemptions are specified in regulations that pertain to a specific license. 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 Effective date: 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) 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) 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)