This chapter establishes a framework within which the Commission may take enforcement action against a licensee that results in a reprimand, penalty, or condition placed on a licensee, or a suspension or revocation of a license. A licensee may not: Violate: A provision of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; A regulation adopted under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; or A directive of the Commission or the Director; Take, or attempt to take, any action that is: Cheating; Influence the governing entity of a sporting event; Influence any person or unit of government that is involved in implementing or enforcing State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; or Interfere with the regular operation of: A sports wagering platform or its software; Sports wagering equipment; or A sports wagering website; or Fail to: Conform to the information contained in its license application; Meet a licensing requirement; Promptly submit to the Commission a change to the information contained in its license application; Adequately remedy a deficiency of which the licensee has received notice under Regulation .03(B) of this chapter; or Maintain a sports wagering employee license in good standing. After receiving a report of a licensee’s alleged violation of Regulation .02 of this chapter, the Agency shall: Investigate the report; and Provide the licensee with written notice of the alleged violation, including: Description of the law, regulation, condition, or directive allegedly violated: and Staff recommendation for addressing the alleged violation. Nothing in this chapter shall be construed to require that the licensee receives an opportunity to meet with staff to discuss an informal settlement of a violation. The Agency may undertake a corrective action plan or attempt to reach a settlement with the licensee before the Director, or the Director’s designee, initiates proceedings for imposition of a sanction against a licensee. If the Director, or the Director’s designee, directs staff to implement a corrective action plan with a licensee, Agency staff shall give written notice to a licensee that includes: A description of the alleged violation; A description of the possible sanctions; and The requirement for the licensee to submit a corrective action plan to the Director. Contents of Corrective Action Plan. A corrective action plan shall include: Periodic monitoring or progress reports; Timelines for completing corrective action; Implementation of measures to guard against recurrence of the alleged violation; and Any other measures necessary to resolve the alleged violation. Time for Implementing a Corrective Action Plan. Within 10 days of receipt of a notice under §A of this regulation, the licensee shall submit a corrective action plan to the Director, or the Director’s designee. The Director, or the Director’s designee, shall review the corrective action plan and inform the licensee whether the corrective action plan is acceptable and: If the corrective action plan is acceptable, the licensee shall execute it immediately; or If the corrective action plan is not acceptable, the licensee shall submit a revised plan within 7 days of being notified by the Director or the Director’s designee. If the licensee fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the Director, or the Director’s designee, may: Provide the licensee with additional time within which to submit a revised corrective action plan; or Recommend the imposition of a sanction available in Regulation .10 of this chapter on the licensee in accordance with Regulation .06 of this chapter. If the Director, or the Director’s designee, provided a licensee with a notice under §A of this regulation and did not receive a timely written response, the Commission may adopt a recommendation made pursuant to §C(3)(b) as the final action by the Commission on the license. Corrective Action Plan Outcome. After a licensee has completed a corrective action plan, to the satisfaction of the Director or the Director’s designee, the alleged violation will be deemed resolved, except that the alleged violation may be: The basis of a subsequent corrective action plan, settlement, penalty, or sanction if a similar violation occurs; or Raised during a Commission hearing as part of the Agency’s enforcement record for the licensee. If at any time during the corrective action period the Director, or the Director’s designee, determines that the licensee has not made sufficient progress toward fulfilling a requirement of the corrective action plan, the Director may: For good cause, extend the time for completion of a corrective action plan; or Recommend the imposition of a sanction on the licensee pursuant to Regulation .06A of this chapter. If at the end of the corrective action period the licensee has failed to satisfactorily complete the corrective action plan, the Director, or the Director’s designee, may recommend the imposition of a sanction on the licensee under Regulation .06A of this chapter. The Commission may provide a licensee with the opportunity to discuss with staff a means of entering into a settlement agreement between the licensee and the Commission by which the violation is settled without a sanction. A settlement agreement: Shall be signed by an authorized representative of the licensee and the Director or the Director’s designee; and May not be considered final and binding until approved by the Commission. If a licensee violates a term of a settlement agreement, nothing in this regulation shall be construed to prevent the Commission from imposing a sanction against the licensee for violating a term of the agreement or the underlying violation. General. The Director or the Director’s designee may recommend the imposition of any sanction deemed appropriate against a licensee if the licensee: Violates a provision of Regulation .02 of this chapter; Fails to timely or satisfactorily complete a corrective action plan required by the Commission; Violates a term of a settlement agreement; or Engages in any conduct that exposes the State’s Sports Wagering Program to a serious and imminent risk of harm to its integrity, security, or profitability. Notice of Recommended Sanction. The Director, or the Director’s designee shall provide the licensee written notice of a recommended sanction, including the: Recommended sanction; Basis for the recommended sanction; Consequences of the recommended sanction if it becomes the Commission’s final action on the license; and Licensee’s applicable hearing rights. If a licensee is dissatisfied with the recommended sanction, the applicant may submit a written request to the Commission to contest the recommended sanction: Within 15 days of the date of the recommended sanction; and That states the licensee’s legal and factual bases for contesting the sanction. If a licensee fails to timely submit a written hearing request under §C of this regulation, the recommended sanction: Becomes final; and Constitutes the Commission’s final action on the license. The Director may emergently suspend a license if the Director determines that suspension is necessary in order to protect the State’s Sports Wagering Program against a serious and imminent risk of harm to its integrity, security, or profitability. Emergency Suspension — Process. If the Director emergently suspends a license, the Director shall promptly schedule a hearing before the Commission in accordance with COMAR 36.01.02.06 on the emergency suspension and provide the licensee with the written notice required under Regulation .06A of this chapter, along with notice directing the licensee that: The licensee shall immediately cease performing operations under the license; and Failure to comply with the Director’s directive to cease performing operations under the license constitutes a separate violation of Regulation .02 of this chapter for which an additional sanction may be imposed. The Commission shall provide the applicant a hearing notice for a hearing held under COMAR 36.01.02.06: Upon receipt of a timely written hearing request submitted under Regulation .06C of this chapter; or For hearings held under Regulation .07B of this chapter. Hearings Before the Commission. For any hearing under this regulation held before the Commission, the Commission shall: Determine if the licensee is subject to sanction pursuant to the: Notice of recommended sanction issued under Regulation .06B of this chapter; or Notice of emergency suspension issued under Regulation .07B of this chapter; Impose the sanction the Commission deems appropriate, if the Commission determines that a licensee is subject to sanction; If a sanction is imposed, prepare an order stating the Commission’s findings of fact, conclusions of law, and basis for the sanction; and Provide the licensee with written notification of the sanction as the Commission’s final action on the license. Hearings Delegated to the Office of Administrative Hearings. For any hearing held under this regulation and delegated to the Office of Administrative Hearings for a final action on the license under COMAR 36.01.02.06O: The decision issued by Office of Administrative Hearings is the Commission’s final action on the license; and The Commission reserves the right to seek judicial review of the decision issued by Office of Administrative Hearings under Regulation .09 of this chapter. For any hearing delegated to the Office of Administrative Hearings for a recommended decision under COMAR 36.01.02.06O: The Director may designate a staff member to review the recommended decision who has not reviewed the license under Regulations .02—.06 of this chapter; and 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: Provide the applicant and staff an opportunity to present exceptions pursuant to State Government Article §10-216, Annotated Code of Maryland; and After reviewing any exceptions filed by the applicant and staff, issue an order pursuant to State Government Article §10-220, Annotated Code of Maryland, that constitutes the Commission’s final action on the license. The Commission’s final action on a license is subject to judicial review as provided in State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. Permissible Sanctions. The Commission may: Impose a penalty on the licensee not exceeding $5,000 for each day and each violation; and In addition to any penalty assessed: Revoke the licensee’s license; Suspend the licensee’s license for a period of time; Reprimand the licensee; or Impose conditions upon the licensee that must be met within a specified time as to: Training; Staffing; Supervision; Compliance with internal controls; Probationary periods; or Any other directive to address the violation. Penalty — Required Considerations. To determine the amount of a penalty to impose on a licensee, the Commission shall consider: The seriousness of the violation; The harm caused by the violation; and Whether the person who committed the violation acted in good faith. Sanction — Considerations. To determine the appropriate sanction to impose on a licensee, the Commission may consider the factors in §B of this regulation, and: Whether a violation was willful; Whether the licensee had, or should have had, control of the situation; Whether the violation may have occurred in connection with unclear or insufficient: Information; Training; Communication; or Requirements; Any extraordinary circumstances; Prior disciplinary history with the Commission; Profit that resulted, or may have resulted, from the violation; Harm that resulted, or may have resulted, from the violation; How the violation was detected; Action taken by the licensee to prevent recurrence of the violation; Action taken by the Commission to address similar violations; and Any other information that the Commission finds relevant. Ignorance No Defense. A licensee is presumed to be familiar with applicable statutes and regulations governing the State’s Sports Wagering Program, and a claim of ignorance of the statutes and regulations may not be used as a defense to a finding of a violation or to the imposition of a sanction. Imposition of Sanction. A separate sanction may be imposed for each violation. A licensee whose license has been suspended or revoked by the Commission’s final action on the license shall immediately cease sports wagering activity. A licensee against whom the Commission imposed a penalty shall remit to the Commission payment in full of the penalty within 30 calendar days. State Government Article, §§9-1A-02, 9-1A-04, 9-1A-20, 9-1A-25 and 9-1E-01—9-1E-15, Annotated Code of Maryland Effective date: Regulations .01—.11 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)