Chapter 12. Collection of Taxes, Fees, and Penalties
Regulation .01 General.LinkCopy Citation
This chapter establishes the manner and method by which the Commission may collect from an applicant or licensee a tax, fee or civil penalty established under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the manner by which a sports wagering licensee may reconcile proceeds under State Government Article, §9-1E-07, Annotated Code of Maryland.
Regulation .02 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Fee” means an amount established by the Commission that an applicant or licensee is required to pay and includes:
(a)
An application or renewal fee; and
(b)
A fee associated with an applicant’s criminal history records check.
(2)
“Proceeds” has the meaning stated in State Government Article, §§9-1E-01 and 9-1E-12, Annotated Code of Maryland.
Regulation .03 Obligation to Pay.LinkCopy Citation
A.
A tax that is due and payable shall be paid by an applicant or licensee and collected in accordance with State and federal law.
B.
A sports wagering licensee shall submit monthly sports wagering tax returns to the Commission by the 5th day of the following month.
C.
If monthly sports wagering taxes are due, the licensee shall pay them to the Commission by wire transfer by the 7th day of the following month.
D.
If, by the 10th calendar day of the month, a sports wagering licensee fails to submit a properly completed sports wagering tax return and all taxes due to the Commission, the sports wagering license shall be automatically suspended.
E.
If a sports wagering license is suspended under of this regulation, the Commission may lift the license suspension after the licensee submits the tax return and the tax payment.
F.
For a fee or penalty:
(1)
The Commission shall issue an invoice or other order to pay; and
(2)
An applicant or licensee shall remit payment to the Commission within 30 days after the date of the invoice or order to pay.
G.
Reconciliation of Gross Sports Wagering Receipts.
(1)
If a sports wagering licensee returns to successful bettors more than the amount of money wagered on a sporting event, the sports wagering licensee may subtract the difference between the amount wagered and the amount returned to bettors from its proceeds of up to 3 months.
(2)
A sports wagering licensee may not subtract losses under §G(1) of this regulation for more than 3 consecutive months.
Regulation .04 Collection and Deposit of Payments.LinkCopy Citation
A.
An applicant or licensee shall pay a fee or civil penalty by:
(1)
Wire transfer;
(2)
Money order;
(3)
Certified check made payable to the “State of Maryland”; or
(4)
Any other manner designated by the Commission.
B.
The Commission shall deposit payment of:
(1)
An application, license, renewal, or other fee into a bank account that the State Treasurer designates to the credit of the State Lottery and Gaming Control Agency Fund and distribute the funds as described under:
(a)
State Government Article, §9-1E-07, Annotated Code of Maryland; and
(b)
State Government Article, §9-1E-12, Annotated Code of Maryland;
(2)
Expired winnings into the Problem Gambling Fund established in the Maryland Department of Health under State Government Article, §9-1A-33, Annotated Code of Maryland; and
(3)
Funds surrendered under COMAR 03.10.10 or COMAR 03.10.11.
C.
The Commission may recover from an applicant or licensee whose payment of a fee or penalty is overdue:
(1)
The unpaid amount of the fee or penalty;
(2)
Revenues lost to the State as the result of the nonpayment;
(3)
Attorney’s fees; and
(4)
Any other penalty, interest, cost, and expense allowable by law.
D.
The failure of a licensee to timely pay a fee or penalty is a violation of an order of the Commission.
E.
The Commission’s election to seek recovery under §C of this regulation for a licensee’s failure to pay a fee or penalty does not preclude the Commission or the State from enforcing other rights, or seeking other remedies, for the same failure to pay.
F.
The Commission shall account for collection of a fee or penalty in accordance with applicable law.
Chapter annotations
Authority: State Government Article, §§9-1A-02, 9-1A-04, 9-1A-33 and 9-1E-01—9-1E-15, Annotated Code of Maryland
History: Effective date:
History: Regulations .01—.04 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)
History: Regulation .03 amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)
History: Regulation .03C, D amended effective July 7, 2025 (52:13 Md. R. 657)