The Commission may issue a sports wagering license that is a: Class A-1; Class A-2; Class B-1; or Class B-2. Unless a person holds a valid sports wagering facility license awarded by the SWARC and issued by the Commission, the person may not conduct, offer, or operate in-person sports wagering at a location in the State. This chapter contains the Commission’s sports wagering facility licensing requirements for a person that offers and conducts sports wagering at premises it owns, leases, or occupies. Except as designated in State Government Article, §9-1E-09(a)(1)(ii) Annotated Code of Maryland, a sports wagering facility license authorizes the licensee to conduct, offer, or operate sports wagering at a single facility in the State. The Commission shall issue a license to a person covered in this chapter, on an award of a license by the Sports Wagering Application Review Commission to an applicant that meets the requirements for licensure under State Government Article Title 9, Subtitle 1E, Annotated Code of Maryland. A sports wagering license issued by the Commission authorizes the licensee to, within the scope of its license, conduct or operate sports wagering under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commission’s regulations. An applicant for a sports wagering license shall submit an application to: The SWARC in a format and time specified by the SWARC; and As specified in COMAR 36.10.02, the Commission. If an application submitted to the Commission is timely and complies with the requirements in COMAR 36.10.02, the Commission staff shall: Determine whether the applicant meets qualification requirements as described in COMAR 36.10.03 including any license category specific requirements and qualifications; and Notify the SWARC of the Commissions qualification determination. The SWARC may not award a license to an applicant that the Commission has found not qualified. After the Commission notifies SWARC that it has determined an applicant is qualified, the SWARC shall: Evaluate an applicant for license award; and Notify the Commission of its license award decision. The Commission may not issue a sports wagering license to an applicant until SWARC has notified the Commission that it has awarded a license to the applicant. After SWARC awards a license, the applicant is an awardee. Agency staff shall determine whether the awardee has met applicable technical and operational requirements in this chapter for a Class A-1, A-2, B-1, or B-2 sports wagering facility license, and determine whether it meets the Commission’s requirements for: Payment of the application fee in the amount specified for the license category; Evidence of a performance bond in the amount specified for the license category; Fees and qualification requirements under COMAR 36.10.02 and 36.10.03; Hours of operation; Facility specifications; Applicable zoning laws under State Government Article, §9-1E-03, Annotated Code of Maryland; Internal controls under COMAR 36.10.13; Sports wagering platform; Sports wagering equipment; Sports wagering operations; Types of sporting event wagers to be offered; Testing and controlled demonstrations; Unless the awardee already has a collective bargaining agreement, the awardees labor peace agreement as required under State Government Article, §9-1E-07(e)(6)(v), Annotated Code of Maryland; Awardees employees are: Licensed as sports wagering employees; and Trained in the performance of their responsibilities; Awardees and facilities preparations to receive the public and conduct safe and secure sports wagering; and Awardee has complied with any additional pre-opening conditions imposed by the Commission. If Commission staff determines that the awardee meets the requirements of §G of this regulation, staff shall issue the license. Renewal. A sports wagering facility licensee may apply for renewal by submitting a renewal application as specified in this chapter. The renewal fee for a sports wagering facility license is the amount equal to 1 percent of the licensees average annual proceeds from sports wagering for the preceding 3-year period, less any proceeds the licensee remitted in accordance with State Government Article, §91E12, Annotated Code of Maryland. The Commission shall issue a Class A-1 Sports Wagering Facility License to an applicant that meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations. A Class A-1 Sports Wagering Facility License may only be issued to: A video lottery operator with more than 1,000 video lottery terminals; For a stadium in Prince Georges County that is primarily used for professional football (NFL), a license applicant that is: The owner; or The designee if an applicant designated an entity to hold the license; The owner, or the designee of the owner, of a professional football franchise that is a lessee of a stadium in Baltimore City; The owner, or the designee of the owner, of a professional major league baseball franchise that is a lessee of a stadium in Baltimore City; The owner, or the designee of the owner, of a professional hockey league franchise, that is a lessee of a stadium in the State; The owner, or the designee of the owner, of a professional basketball association franchise, that is a lessee of a stadium in the State; or The owner, or the designee of the owner, of a professional soccer league franchise, that is a lessee of a stadium in the State. The non-refundable application fee for a Class A-1 sports wagering facility is $2,000,000. The performance bond for a Class A-1 sports wagering facility license is: $2,000,000 for annual sports wagering revenue of $0 to $2,000,000; $4,000,000 for annual sports wagering revenue of $2,000,001 to $4,000,000; and $6,000,000 $4,000,000 for annual sports wagering revenue above $4,000,000. Designee Designation. If an applicant that is an owner identified under §B(2)(7) of this regulation identifies a designee, the owner shall: Complete and execute an Affidavit of Owner of a Professional Sports Franchise or Stadium Supporting the Owners Designee to be the Applicant for, and Holder of, a Sports Wagering Facility License that: Identifies the designee; Acknowledges that the sports wagering law authorizes the Commission to issue a Class A-1 sports wagering facility license to an owner of a specified professional sports franchise or stadium, or to the owners designee, if the applicant meets all applicable requirements; Understands, acknowledges, and certifies that the designee is required to meet all applicable requirements for: Qualification by the Commission; License award by SWARC; License issuance by the Commission; and Continuing obligations for the term of the license; Understands, acknowledges, and certifies that the owner is prohibited from controlling or influencing the designee in the designees capacity as an applicant for or holder of a sports wagering facility license; and Understands, acknowledges, and certifies that the owner is prohibited from receiving from the designee any interest, percentage, or share of handle, proceeds, or profit, that is based on sports wagering; and Submit to the Commission documentation establishing that it has no control or influence over an owners designee. Designee Responsibilities. The designee shall complete and execute an Affidavit of Designee of an Owner of a Professional Sports Franchise or Stadium Supporting the Owners Designee to be the Applicant for, and Holder of, a Sports Wagering Facility License that meets the same requirements in §E(1) of this regulation. The designee shall submit to the Commission documentation that the owner has no control or influence over it. Designee Substitution. If an owner seeks to replace the named designee, the owner and the designee shall submit to the Commission a request to replace the designee as the holder of the license. The new designee shall submit to the Commission an application for a sports wagering facility license. The Commission may transfer the sports wagering facility license to the new designee after the Commission determines the new designee meets all applicable requirements for a sports wagering facility license, and issues the license. The Commission shall issue a Class A-2 Sports Wagering Facility License to an applicant that meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations. A Class A-2 Sports Wagering Facility License may only be issued to: A Video lottery operator with 1,000 or fewer video lottery terminals; or A horse racing licensee under Business Regulation Article, §11-510(b) that is licensed by the Racing Commission to hold racing at: A race track located at Laurel Park; and Pimlico Race Course. The nonrefundable application fee for a Class A-2 sports wagering facility license is $1,000,000. The performance bond for a Class A-2 sports wagering facility license is $3,000,000. The Commission shall issue a Class B-1 sports wagering facility license to an applicant that: Meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations; and Is not eligible for a Class B-2 sports wagering facility license under State Government Article, §9-1E-06(a)(iv), Annotated Code of Maryland. The Class B-1 sports wagering facility license is one license category of the 30 licenses the Commission may issue to Class B-1 or Class B-2 sports wagering facility applicants under State Government Article, §9-1E-06(a)(2)(ii), Annotated Code of Maryland. The nonrefundable application fee for a Class B-1 sports wagering facility license is $250,000. The performance bond for a Class B-1 sports wagering facility license is $750,000. The Commission shall issue a Class B-2 sports wagering facility license to an applicant that meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations, and has less than either: 25 full-time equivalent employees; or $3,000,000 in annual aggregate gross receipts of the applicants businesses. The nonrefundable application fee for a Class B-2 sports wagering facility license is $50,000. The performance bond for a Class B-2 sports wagering facility license is $150,000. Request to Change Proposed Facility Location. An applicant for a Class B-2 sports wagering facility license may submit to the Commission and SWARC a request to amend the application for the sole purpose of altering the proposed location of the sports wagering facility, if: The Commission qualified the applicant on or before February 15, 2023; SWARC awarded the applicant’s sports wagering facility license on or before February 15, 2023; and The Commission has not yet issued the license. The applicant shall submit its written request to the Commission and SWARC so that the request is received by both commissions on or before December 31, 2023. If SWARC approves the request, the Commission may: Consider a timely written request; In the Commission’s discretion, grant or deny the request; and Notify the applicant of the outcome. Nothing in this section may be construed to change or supersede any provision of State Government Article, §9-1E-01, et seq., Annotated Code of Maryland, or any other provision in this subtitle or COMAR 36.11. The Commission shall issue a Class B-1 or B-2 sports wagering facility license to an applicant that meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commission’s regulations, and is: The holder of a license issued by the State Racing Commission to the Maryland State Fair Society to hold a race meeting specified under Business Regulation Article, §11–524, Annotated Code of Maryland: Known as the Maryland State Fair and Agricultural Society, Inc.; or A subsidiary of the license holder; Unless a satellite simulcast facility is located at a video lottery facility or a racetrack, a person who is the owner or lessee of a satellite simulcast facility that was granted a permit for satellite simulcast betting before January 1, 2021; or A person who holds a commercial bingo license, if the facility at which the person operates commercial bingo was permitted to operate at least 200 electronic bingo machines or electronic tip jar machines on January 1, 2021, who is: Arundel Amusement, Inc. T/A Bingo World; or Chesapeake Amusements, Inc. d/b/a Rod-N-Reel Bingo. A person that is operating at the racing location at Fair Hill, under Business Regulation Article, Title 11, Subtitle 7, Annotated Code of Maryland, on lands owned by the Department of Natural Resources may apply for a Class B license. The person that applies for the Class B license shall be a: For-profit entity; Nonprofit organization; or Public-private partnership. If the Commission issues the person a sports wagering facility license, the licensee may only accept wagers in the facility’s special event zone. Not including the Class B-1 and Class B-2 licenses that shall be issued under §A of this regulation, the Commission may issue no more than a cumulative total of 30 Class B-1 and B-2 sports wagering facility licenses described under State Government Article, §9-1E-06(a)(2)(ii), Annotated Code of Maryland. The Commission shall deny an application for any of the 30 Class B-1 and Class B-2 described in §C of this regulation to an applicant: Who is eligible to apply for a Class A-1 or A-2 sports wagering facility license; Who holds a Class A-1 or A-2 sports wagering facility license; or Whose sports wagering facility would be located: Within a 15-mile radius of a Class A-1 or A-2 sports wagering facility located in Allegany County, Cecil County, or Worcester County; In a county other than Allegany County, Cecil County, or Worcester County, within a 1.5-mile radius of a Class A-1 or A-2 sports wagering facility; or Within a 1.5-mile radius of any other Class B-1 or B-2 sports wagering facility. A sports wagering facility licensee may accept a wager made by an individual who is physically present at the sports wagering facility at a betting window. A sports wagering facility licensee may accept a wager made by an individual who is physically present at a sports wagering facility on sports wagering equipment that is a self-service device approved by the Commission including a: Kiosk; Machine; or Other device. Unless a sports wagering facility licensee has obtained a mobile sports wagering license, a sports wagering licensee may: Offer or conduct only in-person wagering on its premises; and Offer or conduct sports wagering at its facility, or otherwise on its premises, by using an in-house WiFi network only on devices provided by the sports wagering licensee for use on the gaming or wagering floor. A sports wagering facility licensee may apply for a mobile sports wagering license. Local Zoning Laws. Except as provided in §A(2) of this regulation, a sports wagering facility is subject to local zoning laws. The use of a facility for sports wagering is not required to be submitted to, or approved by, a county or municipal zoning board, authority, or unit if, on May 18, 2021, it was properly zoned and operating: A video lottery facility; Pari–mutuel betting on horse racing; or Electronic bingo or electronic tip jar machines. A sports wagering facility licensee shall: Comply with all State and federal data security laws; and Maintain all sports wagering data securely for at least 5 years from date of licensure or most recent renewal. A sports wagering facility shall conduct wagering only during the hours approved by the Commission. Except as provided in Regulation .10 of this chapter, after prior written notification to, and approval by, the Commission, a sports wagering facility licensee may contract with a sports wagering facility operator licensee to operate its sports wagering facility. A sports wagering facility licensee that is a stadium described under State Government Article, §9-1E-09(a)(1)(iii), Annotated Code of Maryland, may contract with a video lottery operator, or its affiliate or subsidiary, to provide sports wagering operation services at the stadium. Subject to notification and approval requirements of Regulation .09D of this chapter, a video lottery operator, or its affiliate or subsidiary, described in §A of this regulation may only be a sports wagering facility operator, if it operates a video lottery facility in the same county as the stadium. These requirements pertain to all sports wagering facility licensees. In this regulation, “license” and “licensee” refers to the sports wagering facility licensee. If a licensee contracts with a sports wagering facility operator licensee to conduct its sports wagering operations, the licensee remains responsible for compliance with the requirements in this regulation. On or before 6 months after the Commission issues a license, the Governor’s Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General and the licensee, shall establish a clear plan for setting reasonable and appropriate minority business enterprise participation goals and procedures for the procurement of goods and services related to sports wagering, including procurement of construction, equipment, and ongoing services. The licensee shall provide all information required by the Governor’s Office of Small, Minority, and Women Business Affairs, the Office of the Attorney General, and the Commission. To the extent practicable and authorized by the United States Constitution, a licensee shall comply with the State’s Minority Business Program. Annual Required Reporting. On or before July 1 of each year, a licensee shall report to the Commission: The number of minority and women owners of the licensee; The ownership interest of any minority and women owners of the licensee; The number of minority and women employees of the licensee; The number of current contracts the licensee has with minority-owned and women-owned subcontractors; and Any other information the Commission requires. Or before September 1 of each year, all licensees shall report to the Commission the following data, broken down by categories defined by the Commission: The operation of sports wagering in the State; and Sports wagering revenues from the immediately preceding fiscal year, including: Handle; Hold; Hold percentage; and Proceeds. December 1, 2025 Report to the General Assembly. The Commission is required to submit a report concerning licenses and mobile sports wagering licenses, the subject of which includes: The racial, ethnic, gender, and geographic diversity of Class B-1 and B-2 licensees and mobile sports wagering licensees; The level of market saturation of sports wagering in the State; and Whether the number of Class B-1 and B-2 sports wagering facility licenses and mobile sports wagering licenses that may be issued should be increased. In order to carry out the requirements of §H(1), licensees shall provide information requested by the Commission on or before June 1, 2025. State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland; Ch. 638, Acts of 2023 Effective date: Regulations .01—.11 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 .02G 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 .03D 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); April 27, 2026 (53:8 Md. R 356) Regulation .03E—G adopted as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); adopted permanently effective July 25, 2022 (49:15 Md. R. 740) Regulation .04D 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 .05D 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 .06C 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 .06D adopted as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); adopted permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .08A amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)