<?xml version='1.0' encoding='utf-8'?>
<chapter num="07" heading="License Denial Procedures" title_num="36" subtitle_num="10">
  <regulation prefix="Regulation" num=".01" heading="Applicability.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>For a sports wagering facility, sports wagering facility operator license, mobile sports wagering license, or online sports wagering operator license, does not meet:</text>
        <paragraph num="(a)">
          <text>The general qualification requirements in COMAR 36.10.02 and 36.10.03;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Specific license requirements; or</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Technical and operational standards; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>Should be denied the license.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Sports Wagering Contractors and Sports Wagering Employees.">
    <paragraph num="A.">
      <text>In this regulation, “application,” “applicant,” “license,” and “licensee” refer to an applicant for a sports wagering contractor or sports wagering employee license.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Commission staff shall conduct the license application review and denial process in a manner consistent with this regulation.</text>
    </paragraph>
    <paragraph num="C.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>For an applicant for a sports wagering contractor license, the requirements in COMAR 36.10.06.04; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>For an applicant for a sports wagering employee license, the requirements in COMAR 36.10.06.05.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>After reviewing an application submitted for a license, staff may:</text>
      <paragraph num="(1)">
        <text>Issue the license; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Recommend that the license not be issued to the applicant, and that the license application be denied.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>If staff recommends denial of the license application, staff shall promptly provide the applicant with written notice of the:</text>
      <paragraph num="(1)">
        <text>Recommendation for denial;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Basis for the recommendation; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Applicant’s right to request a reconsideration meeting.</text>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>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.</text>
    </paragraph>
    <paragraph num="G.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Sports Wagering Facility License, Sports Wagering Facility Operator License, Mobile Sports Wagering License, or Online Sports Wagering Operator License.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Unless the SWARC has first awarded the license, the Commission may not issue a license to an applicant for a:</text>
      <paragraph num="(1)">
        <text>Sports wagering facility license; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Mobile sports wagering license.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Commission staff shall conduct the license application review and recommended denial process in a manner consistent with this regulation.</text>
    </paragraph>
    <paragraph num="D.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>For an applicant for a sports wagering facility license, the requirements in COMAR 36.10.04 that pertain to the license class;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>For an applicant for a sports wagering facility operator license, the requirements in COMAR 36.10.06.03;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>For an applicant for a mobile sports wagering license, the requirements in COMAR 36.10.05; or</text>
      </paragraph>
      <paragraph num="(4)">
        <text>For an applicant for an online sports wagering operator license, the requirements in COMAR 36.10.06.02.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>Evaluating the applicant’s equipment, facility and data information center;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Conducting tests and controlled demonstrations,</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Reviewing the awardee’s operational and technical submissions; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Determining whether the awardee is prepared to receive the public and to conduct safe and secure sports wagering.</text>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>Staff may not issue the license if it determines that the awardee:</text>
      <paragraph num="(1)">
        <text>Does not meet the requirements in §D of this regulation; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Under §E of this regulation, the awardee is otherwise not prepared to conduct safe and secure sports wagering.</text>
      </paragraph>
    </paragraph>
    <paragraph num="G.">
      <text>After conducting the review described in §§D and E of this regulation, staff may:</text>
      <paragraph num="(1)">
        <text>Issue the license; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Recommend that the Commission not issue the license, and deny the license application.</text>
      </paragraph>
    </paragraph>
    <paragraph num="H.">
      <text>If staff recommends the denial of an application under this regulation, staff shall promptly provide the applicant with written notice of the:</text>
      <paragraph num="(1)">
        <text>Recommendation for denial;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Basis for the recommendation; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Applicant’s right to request a reconsideration meeting.</text>
      </paragraph>
    </paragraph>
    <paragraph num="I.">
      <text>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.</text>
    </paragraph>
    <paragraph num="J.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Reconsideration Process.">
    <paragraph num="A.">
      <text>Commission staff shall conduct the reconsideration process in a manner consistent with this regulation.</text>
    </paragraph>
    <paragraph num="B.">
      <text>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.</text>
    </paragraph>
    <paragraph num="C.">
      <text>A reconsideration meeting is not a hearing under COMAR 36.01.02.06.</text>
    </paragraph>
    <paragraph num="D.">
      <text>During a reconsideration meeting, the applicant or awardee:</text>
      <paragraph num="(1)">
        <text>Meets with Commission staff;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>May be represented by counsel; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>May present its views to staff as to why the license should be issued.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>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.</text>
    </paragraph>
    <paragraph num="F.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>Within 15 days of the date of staff’s notice under §E of this regulation; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>That states the applicant’s or awardee’s legal and factual bases for disagreeing with the result of the reconsideration meeting.</text>
      </paragraph>
    </paragraph>
    <paragraph num="G.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Hearings.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Hearings Before the Commission. For any hearing under this regulation and held before the Commission:</text>
      <paragraph num="(1)">
        <text>The Commission shall:</text>
        <paragraph num="(a)">
          <text>Grant the license after determining that the applicant is qualified; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Deny the license;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>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</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The Commission shall provide the applicant with written notification of the Commission’s final action on the license application.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Hearings Delegated to the Office of Administrative Hearings.</text>
      <paragraph num="(1)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>The decision issued by Office of Administrative Hearings is the Commission’s final action on the license application; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The Commission reserves the right to seek judicial review of the decision issued by Office of Administrative Hearings under Regulation .06 of this chapter.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>For any hearing delegated to the Office of Administrative Hearings for a recommended decision under COMAR 36.01.02.06O:</text>
        <paragraph num="(a)">
          <text>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</text>
        </paragraph>
        <paragraph num="(b)">
          <text>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:</text>
          <paragraph num="(i)">
            <text>Provide the applicant and staff an opportunity to present exceptions under State Government Article, §10-216, Annotated Code of Maryland; and</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>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.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Petition for Judicial Review.">
    <text>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.</text>
  </regulation>
  <annotations>
    <annotation type="Authority">State Government Article, §§9-1A-02, 9-1A-04 and 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—.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)</annotation>
  </annotations>
</chapter>