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<chapter num="05" heading="Specific Requirements for Mobile Sports Wagering Licenses" title_num="36" subtitle_num="10">
  <regulation prefix="Regulation" num=".01" heading="General.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>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.</text>
    </paragraph>
    <paragraph num="C.">
      <text>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.</text>
    </paragraph>
    <paragraph num="D.">
      <text>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.</text>
    </paragraph>
    <paragraph num="E.">
      <text>The non-refundable application fee for a mobile sports wagering license is $500,000.</text>
    </paragraph>
    <paragraph num="F.">
      <text>The performance bond for a mobile sports wagering license is $1,500,000.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Process for Obtaining a Mobile Sports Wagering License.">
    <paragraph num="A.">
      <text>An applicant for a mobile sports wagering license shall submit an application to:</text>
      <paragraph num="(1)">
        <text>The SWARC in the format and time specified by the SWARC; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>As specified in COMAR 36.10.02, the Commission.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>If an application submitted to the Commission is timely and complies with the requirements in COMAR 36.10.02, the Commission staff shall:</text>
      <paragraph num="(1)">
        <text>Determine whether the applicant meets qualification requirements as described in COMAR 36.10.03, and this chapter; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Notify the SWARC of the Commissions qualification determination.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>The SWARC may not award a license to an applicant that the Commission has found not qualified.</text>
    </paragraph>
    <paragraph num="D.">
      <text>After the Commission notifies SWARC that it has determined an applicant is qualified, the SWARC shall:</text>
      <paragraph num="(1)">
        <text>Evaluate an applicant for license award; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Notify the Commission of its license award decision.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>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.</text>
    </paragraph>
    <paragraph num="F.">
      <text>After SWARC awards a license, the applicant is an awardee.</text>
    </paragraph>
    <paragraph num="G.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>Payment of the application fee of $500,000;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Evidence of a performance bond in the amount of $1,500,000;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Fees and qualification requirements under COMAR 36.10.02 and 36.10.03;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Hours of operation;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Technical specifications;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Internal controls under COMAR 36.10.13;</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Sports wagering platform;</text>
      </paragraph>
      <paragraph num="(8)">
        <text>Sports wagering equipment;</text>
      </paragraph>
      <paragraph num="(9)">
        <text>Sports wagering data information center;</text>
      </paragraph>
      <paragraph num="(10)">
        <text>Sports wagering operations;</text>
      </paragraph>
      <paragraph num="(11)">
        <text>Types of sporting event wagers to be offered;</text>
      </paragraph>
      <paragraph num="(12)">
        <text>Testing and controlled demonstrations;</text>
      </paragraph>
      <paragraph num="(13)">
        <text>Awardees employees are:</text>
        <paragraph num="(a)">
          <text>Licensed as sports wagering employees; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Trained in the performance of their responsibilities;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(14)">
        <text>Awardees preparations to conduct safe and secure sports wagering; and</text>
      </paragraph>
      <paragraph num="(15)">
        <text>Awardee has complied with any additional pre-commencement conditions imposed by the Commission.</text>
      </paragraph>
    </paragraph>
    <paragraph num="H.">
      <text>If Commission staff determines that the awardee meets the requirements of §G of this regulation, staff shall issue the license.</text>
    </paragraph>
    <paragraph num="I.">
      <text>Renewal.</text>
      <paragraph num="(1)">
        <text>A mobile sports wagering licensee may apply for renewal, and the Commission may renew the license if the licensee:</text>
        <paragraph num="(a)">
          <text>Submits an application for renewal to the Commission at least 6 months before the mobile sports wagering licensees license expires;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Continues to comply with all licensing requirements;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Submits to a background investigation under COMAR 36.10.02, and pays all associated fees; and</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Pays a license renewal fee.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="In-State Wagering Through a Mobile Sports Wagering Licensee.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>To participate in online sports wagering, an individual shall register:</text>
      <paragraph num="(1)">
        <text>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</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Online, using a website or mobile application approved in advance by the Commission.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Ongoing Requirements for a Mobile Sports Wagering Licensee.">
    <paragraph num="A.">
      <text>A mobile sports wagering licensee shall:</text>
      <paragraph num="(1)">
        <text>Use technical and operational measures to prevent online wagering by individuals who are underage or physically located outside the State, including:</text>
        <paragraph num="(a)">
          <text>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</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Geolocation technology to accurately verify a bettor’s geographic location within the State as determined by U.S. Census Map;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>Include on its sports wagering website a description of the possible consequences for unauthorized wagering by an:</text>
        <paragraph num="(a)">
          <text>Underage bettor; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Out–of–state bettor;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>Provide a description of consequences required under §A(2) of this regulation, which may include:</text>
        <paragraph num="(a)">
          <text>Immediate stoppage of play;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Account closure; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Forfeiture and confiscation of winnings or unredeemed items;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Comply with all State and federal data security laws; and</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Maintain all sports wagering data securely for at least 5 years from date of the wager.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>A mobile sports wagering licensee may enter into a contract with only one online sports wagering operator at a time.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Minority Business Enterprise Participation Goals and Reporting Requirements.">
    <paragraph num="A.">
      <text>These requirements pertain to all mobile sports wagering licensees.</text>
    </paragraph>
    <paragraph num="B.">
      <text>In this regulation, “license” and “licensee” refers to the mobile sports wagering licensee.</text>
    </paragraph>
    <paragraph num="C.">
      <text>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.</text>
    </paragraph>
    <paragraph num="D.">
      <text>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.</text>
    </paragraph>
    <paragraph num="E.">
      <text>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.</text>
    </paragraph>
    <paragraph num="F.">
      <text>To the extent practicable and authorized by the United States Constitution, a licensee shall comply with the State’s Minority Business Program.</text>
    </paragraph>
    <paragraph num="G.">
      <text>Annual Required Reporting.</text>
      <paragraph num="(1)">
        <text>On or before July 1 of each year, a licensee shall report to the Commission:</text>
        <paragraph num="(a)">
          <text>The number of minority and women owners of the licensee;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The ownership interest of any minority and women owners of the licensee;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>The number of minority and women employees of the licensee;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>The number of current contracts the licensee has with minority- and women-owned subcontractors; and</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Any other information the Commission requires.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>The operation of sports wagering in the State; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Sports wagering revenues from the immediately preceding fiscal year, including:</text>
          <paragraph num="(i)">
            <text>Handle;</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Hold;</text>
          </paragraph>
          <paragraph num="(iii)">
            <text>Hold percentage; and</text>
          </paragraph>
          <paragraph num="(iv)">
            <text>Proceeds.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="H.">
      <text>December 1, 2025 Report to the General Assembly.</text>
      <paragraph num="(1)">
        <text>The Commission is required to submit a report concerning licenses and sports wagering facility licenses, the subject of which includes:</text>
        <paragraph num="(a)">
          <text>The racial, ethnic, gender, and geographic diversity of licensees and Class B-1 and B-2 sports facility licensees;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The level of market saturation of sports wagering in the State; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Whether the number of licenses and Class B-1 and B-2 sports wagering facility licenses that may be issued should be increased.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>In order to carry out the requirements of §H(1), licensees shall provide information requested by the Commission on or before June 1, 2025.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date:</annotation>
    <annotation type="History" subtype="Administrative 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)</annotation>
    <annotation type="History" subtype="Administrative 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)</annotation>
    <annotation type="History" subtype="Administrative 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)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .04A amended effective November 14, 2022 (49:23 Md. R. 997)</annotation>
  </annotations>
</chapter>