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<regulation prefix="Regulation" num=".04" citation="COMAR 36.10.06.04" title_num="36" subtitle_num="10" chapter_num="06" heading="Sports Wagering Contractor Licenses.">
  <paragraph num="A.">
    <text>In this regulation, license, licensee, and applicant refer to the sports wagering contractor licensee or applicant.</text>
  </paragraph>
  <paragraph num="B.">
    <text>Unless a person holds a valid sports wagering contractor license issued by the Commission, the person may not conduct, offer, or operate sports wagering contractor services for a sports wagering licensee under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text>
  </paragraph>
  <paragraph num="C.">
    <text>The Commission may issue a sports wagering contractor license to an applicant that meets all applicable licensing requirements for a sports wagering contractor under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commissions regulations.</text>
  </paragraph>
  <paragraph num="D.">
    <text>If a sports wagering licensee under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, engages a person to provide services as a sports wagering contractor, the person shall meet the requirements of this regulation.</text>
  </paragraph>
  <paragraph num="E.">
    <text>A sports wagering contractor license authorizes a licensee to contract with a sports wagering licensee to conduct, offer, or operate sports contractor services for a sports wagering licensee.</text>
  </paragraph>
  <paragraph num="F.">
    <text>All sports wagering contractor applicants and licensees shall meet the license requirements specified for a sports wagering contractor in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and COMAR 36.03.02.14, and unless context dictates otherwise:</text>
    <paragraph num="(1)">
      <text>COMAR 36.10.02;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>COMAR 36.10.03; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>This regulation.</text>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>Application and License Fees.</text>
    <paragraph num="(1)">
      <text>For a Tier 1 sports wagering contractor, the:</text>
      <paragraph num="(a)">
        <text>Application fee is $1,500;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>License fee is $2,500; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Background investigation deposit is $2,000.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>For a Tier 2 sports wagering contractor, the:</text>
      <paragraph num="(a)">
        <text>Application fee is $750;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>License fee is $800; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Background investigation deposit is $2,000.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="H.">
    <text>Renewal. The Commission may renew the license if the licensee:</text>
    <paragraph num="(1)">
      <text>Submits an application for renewal to the Commission at least 1 year before the license expires;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Continues to comply with all licensing requirements;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Submits to a background investigation under COMAR 36.10.02; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Pays a license renewal fee.</text>
    </paragraph>
  </paragraph>
  <paragraph num="I.">
    <text>Exemptions from Certain Requirements. A sports wagering contractor is exempt from:</text>
    <paragraph num="(1)">
      <text>Except as provided in §K of this regulation, if a sports wagering contractor is covered by the performance bond of the sports wagering licensee with which it contracts, bond requirements; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Unless the sports wagering contractor is engaged under a management agreement or as a lessee or tenant, labor peace agreement requirements under State Government Article, §9-1E-07(6)(e)(v), Annotated Code of Maryland.</text>
    </paragraph>
  </paragraph>
  <paragraph num="J.">
    <text>If a sports wagering contractor is not covered by the performance bond of the sports wagering licensee with which it contracts, the Commission may require a performance bond in an amount that relates to the work performed by the sports wagering contractor.</text>
  </paragraph>
  <paragraph num="K.">
    <text>Independent Evaluator.</text>
    <paragraph num="(1)">
      <text>In addition to complying with requirements for all applicants for a Tier 1 sports wagering contractor license, an applicant for a Tier 1 contractor license that is an independent evaluator:</text>
      <paragraph num="(a)">
        <text>Shall have demonstrated experience and expertise in evaluating and rating sports wagering content;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Shall have an audit process constructed and maintained by in-house, licensed certified public accountants;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Shall have evaluation and rating procedures that are unable to be adjusted, duplicated, or altered by the persons subject to evaluation;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>May not have any direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests in any sports wagering activities;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>May not receive or share in, directly or indirectly, the receipts or proceeds of any sports wagering activities; and</text>
      </paragraph>
      <paragraph num="(f)">
        <text>May not have any revenue-sharing relationship with, or other financial interest in, a sports wagering licensee or sports wagering operator.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Notwithstanding any other requirement in COMAR 36.10, the Commission may require a performance bond in an amount that relates to the work performed by the independent evaluator.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Prohibition on Wagering.</text>
      <paragraph num="(a)">
        <text>A wager on a sporting event may not be placed by an independent evaluator or a person that is:</text>
        <paragraph num="(i)">
          <text>Regardless of percentage of ownership, a legal or beneficial owner of an independent evaluator;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Regardless of compensation amount or type, an employee of an independent evaluator;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>An affiliate of an independent evaluator;</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>A person that provides a paid or free service to an independent evaluator that is related to sports wagering; or</text>
        </paragraph>
        <paragraph num="(v)">
          <text>An agent or representative of an independent evaluator.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>A wager on a sporting event may not be placed by:</text>
        <paragraph num="(i)">
          <text>An immediate family member or affiliate of a person described in §K(3)(a) of this regulation; or</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>A person that Agency staff determines would, if the person wagered, compromise the independence of an independent evaluator.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>Compensation of independent evaluator.</text>
      <paragraph num="(a)">
        <text>Except as provided in §K(4)(b) of this regulation, an independent evaluator may not be compensated by a sports wagering licensee that utilizes the independent evaluator’s evaluation services solely for marketing materials.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>A sports wagering licensee that advertises in the State may contract with a licensed independent evaluator to evaluate and rate the licensee’s:</text>
        <paragraph num="(i)">
          <text>Sports wagering content;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Sports wagering influencers; and</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Content partners.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>Required Submission. For every person described in §K(3) of this regulation, an applicant for licensure as an independent evaluator shall submit to Agency staff documentation that:</text>
      <paragraph num="(a)">
        <text>Identifies the person;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Explains the means by which the applicant will notify the person of the prohibition; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Attests that the submission is accurate and complete to the best of the knowledge of the authorized individual who signed the attestation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(6)">
      <text>Issuance of License. Agency staff may issue a license for a Tier 1 contractor that is an independent evaluator.</text>
    </paragraph>
  </paragraph>
</regulation>