Chapter 07. License Denial Procedures
Regulation .01 Applicability.LinkCopy Citation
A.
This chapter applies to all licenses the Commission is authorized to issue under State Government Article, §9-1E-05, Annotated Code of Maryland, to implement the State’s Sports Wagering Program.
B.
The chapter explains the process by which a license application may be denied, and the process available to an applicant after the Commission determines that the applicant:
(1)
For a sports wagering contractor or sports wagering employee license, does not meet the general requirements in COMAR 36.10.02 and 36.10.03;
(2)
For a sports wagering facility, sports wagering facility operator license, mobile sports wagering license, or online sports wagering operator license, does not meet:
(a)
The general qualification requirements in COMAR 36.10.02 and 36.10.03;
(b)
Specific license requirements; or
(c)
Technical and operational standards; and
(3)
Should be denied the license.
Regulation .02 Sports Wagering Contractors and Sports Wagering Employees.LinkCopy Citation
A.
In this regulation, “application,” “applicant,” “license,” and “licensee” refer to an applicant for a sports wagering contractor or sports wagering employee license.
B.
Commission staff shall conduct the license application review and denial process in a manner consistent with this regulation.
C.
Commission staff shall review a license application to determine whether it meets all the requirements of COMAR 36.10.02 and 36.10.03 and:
(1)
For an applicant for a sports wagering contractor license, the requirements in COMAR 36.10.06.04; or
(2)
For an applicant for a sports wagering employee license, the requirements in COMAR 36.10.06.05.
D.
After reviewing an application submitted for a license, staff may:
(1)
Issue the license; or
(2)
Recommend that the license not be issued to the applicant, and that the license application be denied.
E.
If staff recommends denial of the license application, staff shall promptly provide the applicant with written notice of the:
(1)
Recommendation for denial;
(2)
Basis for the recommendation; and
(3)
Applicant’s right to request a reconsideration meeting.
F.
An applicant may submit to the Commission a written request for a reconsideration meeting within 15 days of the date of the notice described under §E of this regulation.
G.
If an applicant fails to timely submit a request under §F of this regulation, the staff’s recommendation is the Commission’s final action on the license application.
Regulation .03 Sports Wagering Facility License, Sports Wagering Facility Operator License, Mobile Sports Wagering License, or Online Sports Wagering Operator License.LinkCopy Citation
A.
In this regulation, “application”, “applicant”, “license”, and “licensee” refer to an applicant for a sports wagering facility, sports wagering facility operator, mobile sports wagering, or online sports wagering operator license.
B.
Unless the SWARC has first awarded the license, the Commission may not issue a license to an applicant for a:
(1)
Sports wagering facility license; or
(2)
Mobile sports wagering license.
C.
Commission staff shall conduct the license application review and recommended denial process in a manner consistent with this regulation.
D.
After the SWARC has awarded a license to an applicant, Commission staff shall review the application and the applicant’s submissions to the Commission, and determine whether it meets all the requirements of COMAR 36.10.02 and 36.10.03, and:
(1)
For an applicant for a sports wagering facility license, the requirements in COMAR 36.10.04 that pertain to the license class;
(2)
For an applicant for a sports wagering facility operator license, the requirements in COMAR 36.10.06.03;
(3)
For an applicant for a mobile sports wagering license, the requirements in COMAR 36.10.05; or
(4)
For an applicant for an online sports wagering operator license, the requirements in COMAR 36.10.06.02.
E.
Staff’s review of applications for all licenses in this regulation shall include the requirements specified in the regulations for each license category, and also include:
(1)
Evaluating the applicant’s equipment, facility and data information center;
(2)
Conducting tests and controlled demonstrations,
(3)
Reviewing the awardee’s operational and technical submissions; and
(4)
Determining whether the awardee is prepared to receive the public and to conduct safe and secure sports wagering.
F.
Staff may not issue the license if it determines that the awardee:
(1)
Does not meet the requirements in §D of this regulation; or
(2)
Under §E of this regulation, the awardee is otherwise not prepared to conduct safe and secure sports wagering.
G.
After conducting the review described in §§D and E of this regulation, staff may:
(1)
Issue the license; or
(2)
Recommend that the Commission not issue the license, and deny the license application.
H.
If staff recommends the denial of an application under this regulation, staff shall promptly provide the applicant with written notice of the:
(1)
Recommendation for denial;
(2)
Basis for the recommendation; and
(3)
Applicant’s right to request a reconsideration meeting.
I.
An applicant may submit to the Commission a written request for a reconsideration meeting within 15 days of the date of the notice described §H of this regulation.
J.
If an applicant fails to timely submit a request under §I of this regulation, the staff’s recommendation is the Commission’s final action on the license application.
Regulation .04 Reconsideration Process.LinkCopy Citation
A.
Commission staff shall conduct the reconsideration process in a manner consistent with this regulation.
B.
If an applicant timely submits a request under Regulation .02F or .03I of this chapter, staff shall notify the applicant of a date and time for the reconsideration meeting.
C.
A reconsideration meeting is not a hearing under COMAR 36.01.02.06.
D.
During a reconsideration meeting, the applicant or awardee:
(1)
Meets with Commission staff;
(2)
May be represented by counsel; and
(3)
May present its views to staff as to why the license should be issued.
E.
After the reconsideration meeting, the staff person who attended the reconsideration meeting shall issue a written notice to the applicant or awardee describing the result of the reconsideration meeting.
F.
If the applicant or awardee is dissatisfied with the result of the reconsideration meeting, the applicant or awardee may submit a written request for a hearing to the Commission:
(1)
Within 15 days of the date of staff’s notice under §E of this regulation; and
(2)
That states the applicant’s or awardee’s legal and factual bases for disagreeing with the result of the reconsideration meeting.
G.
If the applicant or awardee fails to timely submit a written hearing request under §F of this regulation, the staff’s determination is the Commission’s final action on the license application.
Regulation .05 Hearings.LinkCopy Citation
A.
Upon receipt of a timely, written hearing request submitted under Regulation .04F of this chapter, the Commission shall provide the applicant a notice for a hearing held under COMAR 36.01.02.06.
B.
Hearings Before the Commission. For any hearing under this regulation and held before the Commission:
(1)
The Commission shall:
(a)
Grant the license after determining that the applicant is qualified; or
(b)
Deny the license;
(2)
If the Commission denies the license, the Commission shall prepare an order stating its findings of fact, conclusions of law, and reasons why the denial is appropriate; and
(3)
The Commission shall provide the applicant with written notification of the Commission’s final action on the license application.
C.
Hearings Delegated to the Office of Administrative Hearings.
(1)
For a hearing held under this regulation and delegated to the Office of Administrative Hearings for a final action on the license pursuant to COMAR 36.01.02.06O:
(a)
The decision issued by Office of Administrative Hearings is the Commission’s final action on the license application; and
(b)
The Commission reserves the right to seek judicial review of the decision issued by Office of Administrative Hearings under Regulation .06 of this chapter.
(2)
For any hearing delegated to the Office of Administrative Hearings for a recommended decision under COMAR 36.01.02.06O:
(a)
The Director may designate a staff member to review the recommended decision who has not been previously designated to review the license application under Regulations .02—.04 of this chapter; and
(b)
The Director or the Director’s designee shall review the Administrative Law Judge’s Recommended Decision consistent with the terms of the delegation made and:
(i)
Provide the applicant and staff an opportunity to present exceptions under State Government Article, §10-216, Annotated Code of Maryland; and
(ii)
After reviewing any exceptions filed by the applicant and staff, issue an order under State Government Article, §10-220, Annotated Code of Maryland, that constitutes the Commission’s final action on the license application.
Regulation .06 Petition for Judicial Review.LinkCopy Citation
The Commission’s final action on a license application is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.
Chapter annotations
Authority: State Government Article, §§9-1A-02, 9-1A-04 and 9-1E-01—9-1E-15, Annotated Code of Maryland
History: Effective date:
History: 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)