Chapter 05. Specific Requirements for Mobile Sports Wagering Licenses
Regulation .01 General.LinkCopy Citation
A.
The Commission shall issue a mobile sports wagering 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.
B.
Unless a person holds a valid mobile sports wagering license awarded by the Sports Wagering Application Review Commission and issued by the Commission, the person may not conduct, offer, or operate online sports wagering in the State.
C.
A mobile sports wagering license issued by the Commission authorizes the licensee to, within the scope of its license, conduct or operate online sports wagering under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations.
D.
An applicant for or holder of a Class A-1, A-2, B-1, or B-2 sports wagering facility license may apply for a mobile sports wagering license.
E.
The non-refundable application fee for a mobile sports wagering license is $500,000.
F.
The performance bond for a mobile sports wagering license is $1,500,000.
Regulation .02 Process for Obtaining a Mobile Sports Wagering License.LinkCopy Citation
A.
An applicant for a mobile sports wagering license shall submit an application to:
(1)
The SWARC in the format and time specified by the SWARC; and
(2)
As specified in COMAR 36.10.02, the Commission.
B.
If an application submitted to the Commission is timely and complies with the requirements in COMAR 36.10.02, the Commission staff shall:
(1)
Determine whether the applicant meets qualification requirements as described in COMAR 36.10.03, and this chapter; and
(2)
Notify the SWARC of the Commissions qualification determination.
C.
The SWARC may not award a license to an applicant that the Commission has found not qualified.
D.
After the Commission notifies SWARC that it has determined an applicant is qualified, the SWARC shall:
(1)
Evaluate an applicant for license award; and
(2)
Notify the Commission of its license award decision.
E.
The Commission may not issue a mobile sports wagering license to an applicant until SWARC has notified the Commission that it has awarded a license to the applicant.
F.
After SWARC awards a license, the applicant is an awardee.
G.
Agency staff shall determine whether the awardee has met applicable technical and operational requirements in this chapter for a mobile sports wagering license, and determine whether it meets the Commission’s requirements for:
(1)
Payment of the application fee of $500,000;
(2)
Evidence of a performance bond in the amount of $1,500,000;
(3)
Fees and qualification requirements under COMAR 36.10.02 and 36.10.03;
(4)
Hours of operation;
(5)
Technical specifications;
(6)
Internal controls under COMAR 36.10.13;
(7)
Sports wagering platform;
(8)
Sports wagering equipment;
(9)
Sports wagering data information center;
(10)
Sports wagering operations;
(11)
Types of sporting event wagers to be offered;
(12)
Testing and controlled demonstrations;
(13)
Awardees employees are:
(a)
Licensed as sports wagering employees; and
(b)
Trained in the performance of their responsibilities;
(14)
Awardees preparations to conduct safe and secure sports wagering; and
(15)
Awardee has complied with any additional pre-commencement conditions imposed by the Commission.
H.
If Commission staff determines that the awardee meets the requirements of §G of this regulation, staff shall issue the license.
I.
Renewal.
(1)
A mobile sports wagering licensee may apply for renewal, and the Commission may renew the license if the licensee:
(a)
Submits an application for renewal to the Commission at least 6 months before the mobile sports wagering licensees license expires;
(b)
Continues to comply with all licensing requirements;
(c)
Submits to a background investigation under COMAR 36.10.02, and pays all associated fees; and
(d)
Pays a license renewal fee.
(2)
The renewal fee for a mobile sports wagering license is the amount equal to 1 percent of the licensees average annual gross sports wagering revenues proceeds from sports wagering for the preceding 3year period, less any proceeds the licensee remitted in accordance with State Government Article, §9-1E-12, Annotated Code of Maryland.
Regulation .03 In-State Wagering Through a Mobile Sports Wagering Licensee.LinkCopy Citation
A.
A mobile sports wagering licensee may accept wagers from bettors on sporting events that are made exclusively through online sports wagering by an individual physically located in the State.
B.
To participate in online sports wagering, an individual shall register:
(1)
If the mobile sports wagering licensee is also a sports wagering facility licensee, in person at a facility or location identified in State Government Article, §9-1E-09(a)(1), Annotated Code of Maryland; or
(2)
Online, using a website or mobile application approved in advance by the Commission.
Regulation .04 Ongoing Requirements for a Mobile Sports Wagering Licensee.LinkCopy Citation
A.
A mobile sports wagering licensee shall:
(1)
Use technical and operational measures to prevent online wagering by individuals who are underage or physically located outside the State, including:
(a)
Age verification procedures, which may require the use of a third party acceptable to Commission staff that is in the business of verifying an individual’s personally identifiable information; and
(b)
Geolocation technology to accurately verify a bettor’s geographic location within the State as determined by U.S. Census Map;
(2)
Include on its sports wagering website a description of the possible consequences for unauthorized wagering by an:
(a)
Underage bettor; or
(b)
Out–of–state bettor;
(3)
Provide a description of consequences required under §A(2) of this regulation, which may include:
(a)
Immediate stoppage of play;
(b)
Account closure; and
(c)
Forfeiture and confiscation of winnings or unredeemed items;
(4)
Establish procedures to prevent excluded individuals from engaging in wagering activity or being paid winnings as provided in COMAR 36.10.10 and 36.10.11;
(5)
Comply with all State and federal data security laws; and
(6)
Maintain all sports wagering data securely for at least 5 years from date of the wager.
B.
A mobile sports wagering licensee may enter into a contract with only one online sports wagering operator at a time.
(1)
For purposes of enforcing the limitation, the Commission shall treat all mobile sports wagering licensees that are related entities as the single mobile sports wagering licensee.
(2)
Except for a person conducting testing of a licensee’s sports wagering platform, as required by the Commission, only a person to which the Commission has issued a mobile sports wagering license, or an online sports wagering operator license with which the mobile sports wagering licensee has a current contract, may access the online sports wagering operating system or associated equipment.
C.
Only a mobile sports wagering licensee, or its licensed online sports wagering operator, may operate or offer online sports wagering on behalf of the mobile sports wagering licensee.
Regulation .05 Minority Business Enterprise Participation Goals and Reporting Requirements.LinkCopy Citation
A.
These requirements pertain to all mobile sports wagering licensees.
B.
In this regulation, “license” and “licensee” refers to the mobile sports wagering licensee.
C.
If a licensee contracts with an online sports wagering operator licensee to conduct its mobile sports wagering operations, the licensee remains responsible for compliance with the requirements in this regulation.
D.
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.
E.
The licensee shall provide all information required or requested by the Governor’s Office of Small, Minority, and Women Business Affairs, the Office of the Attorney General, and the Commission.
F.
To the extent practicable and authorized by the United States Constitution, a licensee shall comply with the State’s Minority Business Program.
G.
Annual Required Reporting.
(1)
On or before July 1 of each year, a licensee shall report to the Commission:
(a)
The number of minority and women owners of the licensee;
(b)
The ownership interest of any minority and women owners of the licensee;
(c)
The number of minority and women employees of the licensee;
(d)
The number of current contracts the licensee has with minority- and women-owned subcontractors; and
(e)
Any other information the Commission requires.
(2)
On 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:
(a)
The operation of sports wagering in the State; and
(b)
Sports wagering revenues from the immediately preceding fiscal year, including:
(i)
Handle;
(ii)
Hold;
(iii)
Hold percentage; and
(iv)
Proceeds.
H.
December 1, 2025 Report to the General Assembly.
(1)
The Commission is required to submit a report concerning licenses and sports wagering facility licenses, the subject of which includes:
(a)
The racial, ethnic, gender, and geographic diversity of licensees and Class B-1 and B-2 sports facility licensees;
(b)
The level of market saturation of sports wagering in the State; and
(c)
Whether the number of licenses and Class B-1 and B-2 sports wagering facility licenses that may be issued should be increased.
(2)
In order to carry out the requirements of §H(1), licensees shall provide information requested by the Commission on or before June 1, 2025.
Chapter annotations
Authority: State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland
History: Effective date:
History: Regulations .01—.05 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)
History: Regulation .01F 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)
History: 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)
History: Regulation .04A amended effective November 14, 2022 (49:23 Md. R. 997)