An applicant for, and a holder of, a license necessary for the State’s Sports Wagering Program, shall meet the same qualification requirements for licensees that the Commission issues under State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland. This chapter includes the qualification requirements, and process for the issuance of a license, for all applicants for licenses related to sports wagering that the Commission is authorized to issue under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland. Additional qualifications and license requirements may apply based on license category and are specified in succeeding chapters. The Commission or Agency staff may consider an applicant’s qualifications if the applicant has: Paid the applicable nonrefundable application fee; Unless exempt, provided documentation that: The applicant has obtained the required performance bond; or A person authorized to provide a performance bond in the State has approved the applicant for a performance bond; and Provided the Commission with all required information and documentation. The Commission shall determine whether an applicant has presented sufficient information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence: The applicants financial stability, integrity, and responsibility; The integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bear a relation to the application; The applicants good character, honesty, and integrity; and Sufficient business ability and experience. Mandatory Disqualification. The Commission shall disqualify an applicant from licensure, or find the applicant unqualified, on the basis of: Failure of the applicant to establish by clear and convincing evidence that the applicant and each person who owns or controls the applicant are qualified; Failure of the applicant or any person required to be qualified to provide information, documentation, or assurances required by or requested by the Commission or SWARC; Failure of the applicant or any person required to be qualified to reveal any fact material to qualification; Supplying, by the applicant or any person required to be qualified, information that is untrue or misleading as to a material fact concerning the qualification criteria; Conviction of the applicant or of any person required to be qualified of an offense under the laws of any jurisdiction that is a criminal offense involving moral turpitude or a gambling or sports wagering offense; Current prosecution of the applicant or a person who is required to be qualified for an offense described under §C(5) of this regulation, provided that: An applicant may request that the Commission defer its qualification decision during the pendency of the charge; and The Commission may exercise its discretion whether to defer its qualification decision during the pendency of the charge; Pursuit by the applicant or a person who is required to be qualified of economic gain in an occupational manner or context that violates a State law, if the pursuit creates a reasonable belief by the Commission that participation of the applicant in sports wagering operations would be inimical to the States interests; Identification of the applicant or a person who is required to be qualified as a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in a manner that creates a reasonable belief by the Commission that the association is of a nature that would be inimical to the States interests; Commission of an act within the prior 7 years by the applicant or a person who is required to be qualified that would constitute an offense described in §C(5) of this regulation, even if the act was not, or may not be prosecuted under the criminal laws of any jurisdiction; Willful defiance by the applicant or a person who is required to be qualified of a legislative investigatory body or other official investigatory body of the United States or a jurisdiction within the United States when the body is engaged in the investigation of crimes relating to sports wagering, gambling, official corruption, or organized crime activity; or Engaging in conduct that would bring the State into disrepute. Permissive Denial. The Commission may deny a license to an applicant or find an applicant unqualified if the applicants application for a license related to sports wagering in another jurisdiction was denied, suspended, or revoked. The Director shall designate staff to oversee the license application review process in a manner consistent with this subtitle. Designated staff may determine qualifications of an applicant and issue a license without a Commission hearing. Designated staff shall review a timely and complete application to determine whether it: Contains all required information; Meets all application and qualification requirements; Is accompanied by all required fees; and Unless exempt, provides evidence of a performance bond. All applicants shall meet the general requirements of COMAR 36.10.02 and 36.10.03. Applicants shall also meet the specific requirements of the license category for which the applicant submits an application. After reviewing an application, and subject to the specific requirements of the applicant’s license category, if designated staff determines that the applicant meets all applicable requirements, the designee shall issue the license, or find the applicant qualified. After designated staff issues a license, the applicant may commence operations under the authority, terms, and conditions of the license. If designated staff determines that the applicant does not meet all applicable requirements: The designee shall recommend denial of the application; and The recommended denial of a license application shall follow the process described under COMAR 36.10.07. The requirements in this regulation pertain to all licensees, the failure to comply with any of these requirements may subject the licensee to enforcement action under COMAR 36.10.08. Throughout the license term and any renewal, a licensee: Remains under a continuing obligation to conform to all of the information contained in their license application; and Shall comply with all applicable requirements in State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland, and the Commissions regulations. A licensee shall: Comply with all State and federal data security laws; and Maintain all sports wagering data securely for at least 5 years from the date of the wager. A licensee may not: Share any personally identifiable information with any third parties without permission, except as needed to operate sports wagering and administer the licensees obligations under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; Knowingly target advertising to individuals who are prohibited from participating in sports wagering and other atrisk individuals; or Engage in false or deceptive advertising. A sports wagering licensee may not assign, delegate, subcontract, or transfer to another person its duties or responsibilities as a licensee without the prior approval of the Commission, except: To a related entity; or Pursuant to a transfer of its interest approved in advance by the Commission under §F of this regulation. Other than an individual, a sports wagering licensee may sell or transfer an interest in the ownership of the license, if: Before the proposed sale or transfer, the licensee submits to the Commission notification of the proposed sale or transfer; and The Commission determines that the proposed sale or transfer of an interest is consistent, and complies, with State Government Article, §§9-1A-18 and 9-1A-19, Annotated Code of Maryland. License Forfeiture. A license is forfeited when: The licensee ceases operations prior to the renewal of their license; and The licensee is unable to transfer the license in accordance with §F of this regulation. A sports wagering license that has been forfeited may be reissued by the Commission using the criteria established in this subtitle. The term of an initial license is 5 years from the date of initial licensure. The term of a renewal license is 5 years. Staff may stagger the issuance and renewal terms of licenses. At an applicant’s request, staff may exempt an applicant from an application or qualification requirement, if: The applicant is applying for a license that is identical to a license the applicant already holds; and The applicant’s license term of the license has not expired. Staff may merge the term of a new license into the term of an existing identical license. Unless the Commission by regulation specifies otherwise, the licensee shall submit an application for renewal to the Commission at least 6 months before the license expires. The Commission shall renew the license if the licensee: Establishes, by clear and convincing evidence, that the licensee meets applicable license qualification requirements; Submits to a background investigation as required by the Commission; Reimburses the Commission for all costs associated with the background investigation; and Pays the required license renewal fee. The renewal fee is based on license category and is specified in succeeding chapters. State Government Article, §§9-1A-02—9-1A-04, 9-1A-07, 9-1A-08 9-1A-14, 9-1A-18—9-1A-20, 9-1A-24, 9-1A-25, and 9-1E-01—9-1E-15; Annotated Code of Maryland Effective date: Regulations .01—.06 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 .02A 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 .04F 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)