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<chapter num="09" heading="Unannounced Inspections" title_num="36" subtitle_num="10">
  <regulation prefix="Regulation" num=".01" heading="General.">
    <text>This chapter establishes the manner and method by which the Commission may conduct an unannounced inspection of the premises, records, and equipment of a sports wagering licensee and related entities in order to evaluate and verify a licensee’s compliance with State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the regulations promulgated by the Commission for the Sports Wagering Program.</text>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Inspections.">
    <paragraph num="A.">
      <text>A licensee is subject to unannounced inspections conducted by the Commission in order to evaluate and verify the licensee’s compliance with State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the regulations promulgated by the Commission for the Sports Wagering Program.</text>
    </paragraph>
    <paragraph num="B.">
      <text>The Commission or a designee may conduct an unannounced inspection without a warrant and take any of the following actions:</text>
      <paragraph num="(1)">
        <text>Conduct an inspection of licensed sports wagering facilities, sports wagering facility operators, mobile sports wagering licensees, online sports wagering operators, and sports wagering contractors in which:</text>
        <paragraph num="(a)">
          <text>Sports wagering is conducted, offered or operated;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Authorized sports wagering equipment or associated equipment or software are:</text>
          <paragraph num="(i)">
            <text>Designed;</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Assembled;</text>
          </paragraph>
          <paragraph num="(iii)">
            <text>Manufactured;</text>
          </paragraph>
          <paragraph num="(iv)">
            <text>Sold;</text>
          </paragraph>
          <paragraph num="(v)">
            <text>Distributed;</text>
          </paragraph>
          <paragraph num="(vi)">
            <text>Serviced; or</text>
          </paragraph>
          <paragraph num="(vii)">
            <text>Physically located; or</text>
          </paragraph>
        </paragraph>
        <paragraph num="(c)">
          <text>Records are prepared or maintained for activities referenced in §B(1)(a) or (b) of this regulation;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>Conduct an inspection of sports wagering equipment or associated equipment in, about, on, or around the premises specified in §B(1) of this regulation;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>From the premises specified in §B(1) of this regulation, summarily seize, remove, impound, or assume physical control of, for the purposes of examination and inspection:</text>
        <paragraph num="(a)">
          <text>Sports wagering equipment; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Associated equipment and software;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>Inspect, examine, and audit books, records, and documents concerning a sports wagering licensee’s sports wagering operation, including the financial records of:</text>
        <paragraph num="(a)">
          <text>A principal or principal corporation;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>A subsidiary corporation; or</text>
        </paragraph>
        <paragraph num="(c)">
          <text>An affiliated entity; or</text>
        </paragraph>
      </paragraph>
      <paragraph num="(5)">
        <text>Seize, impound, copy, or assume physical control of:</text>
        <paragraph num="(a)">
          <text>Books;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Records;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Ledgers;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Cash boxes and their contents;</text>
        </paragraph>
        <paragraph num="(e)">
          <text>A counting room or its equipment;</text>
        </paragraph>
        <paragraph num="(f)">
          <text>Other physical objects relating to sports wagering operations; or</text>
        </paragraph>
        <paragraph num="(g)">
          <text>Any record or object that a licensee is required by law, regulation, or license terms to maintain.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>During an inspection, a licensee and its employees, agents, and representatives:</text>
      <paragraph num="(1)">
        <text>Shall:</text>
        <paragraph num="(a)">
          <text>Make available for inspection, copying, or physical control a record that a licensee is required to maintain;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Authorize any person having financial records relating to the licensee to provide those records to the Commission; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Otherwise cooperate with the activities of the Commission described in this chapter; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>May not knowingly interfere with the authorized activity of the Commission during an unannounced inspection.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>An unannounced inspection may be conducted at any time as determined by the Commission.</text>
    </paragraph>
    <paragraph num="E.">
      <text>The refusal of a licensee or a licensee’s employees or agents to provide the Commission with the access necessary to perform an unannounced inspection may be the basis for enforcement action under COMAR 36.10.08.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Records and Reports.">
    <paragraph num="A.">
      <text>Within a reasonable time after the conclusion of the unannounced inspection, the Commission’s inspectors shall submit a written report of the inspection to:</text>
      <paragraph num="(1)">
        <text>The Commission;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The Director; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The licensee who was the subject of the Commission’s unannounced inspection.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>A written report of an unannounced inspection shall be considered a public record to the extent allowable under the General Provisions Article, Title 4, Annotated Code of Maryland.</text>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">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</annotation>
    <annotation type="History" subtype="Administrative History">Effective date:</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.03 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>