Definition. Unless context or the individual regulation dictates otherwise, for purposes of this chapter, “sports wagering licensee” includes: Sports wagering facility licensee; Mobile sports wagering licensee; Sports wagering facility operator licensee; and Online sports wagering operator licensee. A sports wagering licensee shall maintain complete, accurate, and legible records of all transactions pertaining to the revenues and expenses of sports wagering operations. General ledger records shall be maintained on a double entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles in the United States. Subsidiary ledgers and records supporting general ledger records shall be prepared in accordance with generally accepted accounting principles in the United States. Subsidiary ledgers and records shall include, at a minimum, documents that: Support the financial statements and all transactions impacting the financial statements including contracts or agreements with sports wagering contractors; Identify all sports wagering activity on a week-to-date, month-to-date, and year-to-date basis for the following: Handle; Payout; Win amount; Win percentage; and Average payout percentage; Summarize the cost, by category of service, of complimentary services under Regulation .08 of this chapter; Identify all costs and expenses associated with the sports wagering operation; Are prepared in compliance with the internal controls approved by the Commission under Regulation .04 of this chapter; and Relate to: Loans and other amounts payable by a sports wagering licensee; Bettor disputes including bettor complaint forms filed with the Commission under Regulation .37 of this chapter; Negotiable instruments accepted, deposited, returned as uncollected or ultimately written-off by a sports wagering licensee under this chapter; and Investments in property and equipment for the benefit of a sports wagering licensee. A form or document required by this chapter, including stored data, shall have: All information placed on the form or document recorded in ink or another permanent form; and The title of the form or document and the name of the sports wagering licensee imprinted or preprinted on it. If under this chapter multiple copies are required of a form or document, all copies shall have the name of the intended recipient of the copy preprinted on the bottom of the copy in order to differentiate between the copies. If under this chapter a form or document is required to be accounted for by series number or copies of a form or document are required to be compared for agreement, the accounting department shall report exceptions in writing to the responsible department and sports wagering licensees’ internal audit department not later than 2 days after identification of the exception. A sports wagering licensee may prepare more copies of a form or document than required by this chapter. At least 60 days prior to commencing sports wagering and any time a change is made thereafter, a sports wagering licensee shall submit to the Commission for approval internal controls for: Sports wagering at the sports wagering licensee’s facility; or Online sports wagering. Each procedure or control submission shall, at a minimum, include both narrative and diagrammatic representations of the system to be utilized including the following: Administrative controls and record keeping that document the authorization of transactions; Accounting controls that provide reasonable assurance that: Transactions or financial events which occur in connection with the sports wagering operation are: Executed in accordance with the sports wagering licensee’s authorization protocols; Recorded to permit preparation of financial statements in conformance with generally accepted accounting principles in the United States and the requirements of this chapter; and Recorded to permit proper and timely reporting and calculation of proceeds and to maintain accountability for assets; Access to assets is permitted only in accordance with the sports wagering licensee’s authorization protocols; and The recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with regard to a discrepancy; User access controls for all personnel; Procedures and controls for ensuring: That systems accurately and timely communicate all required activities and financial details to the sports wagering platform; That all functions, duties, and responsibilities are segregated and performed in accordance with sound financial practices by qualified personnel; and Through the use of a surveillance and a security department, that the sports wagering licensee is secure at all times during normal operation and during any emergency due to malfunctioning equipment, loss of power, natural disaster, or any other cause; An organizational chart depicting appropriate functions and responsibilities of employees involved in sports wagering; A description of the duties and responsibilities of each position shown on the organizational chart; Access controls which address, at a minimum: Content of, and administrative responsibility over, the manual or computerized access control matrix governing employee access to restricted areas; Issuance of a temporary access credential; and Comprehensive key controls; Procedures and controls over the movement of cash and the count room; Procedures and standards for conducting internal audits; The record retention policy; Procedures to be utilized by the sports wagering licensee to prevent an individual younger than 21 years old, an excluded individual, and bettors outside the State from engaging in sports wagering; Procedures for the registration of a bettor and establishment of a sports wagering account, including a procedure for: Authenticating the age, identity and physical address of an applicant for a sports wagering account; and Determining whether the applicant is a person prohibited from establishing or maintaining an account under applicable laws or regulations; Procedures for terminating a registered bettor’s sports wagering account and the return of any funds remaining in the sports wagering account to the registered bettor; Procedures for suspending or terminating a dormant account and the return of any funds remaining in the dormant account to the registered bettor; Procedures for: The logging in and authentication of a registered bettor to enable the bettor to commence sports wagering; and The logging off of the registered bettor when the registered bettor has completed play; Procedures to automatically log a registered bettor out of the registered bettor’s sports wagering account after a specified period of inactivity; Procedures for the crediting and debiting of a registered bettor’s sports wagering account; Procedures for cashing checks, receiving electronic negotiable instruments and for redeeming cash equivalents; Procedures for withdrawing funds from a sports wagering account by the registered bettor; Procedures for the protection of a registered bettor’s funds, including the segregation of a registered bettor’s funds from operating funds of the sports wagering licensee; Procedures to account for and safeguard money generated from the conduct of sports wagering; Procedures for the security and sharing of personally identifiable information of a registered bettor, value of funds in a sports wagering account, and other information as required by the Commission; Procedures by which a sports wagering licensee will provide notice to a registered bettor related to the sharing of personally identifiable information; Procedures and security for the calculation and recordation of revenue; Procedures for the security of sports wagering equipment; Procedures and security standards as to receipt, handling and storage of sports wagering equipment; Procedures and appropriate measures implemented to deter, detect and prevent cheating; Procedures for identifying and reporting fraudulent, suspicious, or unusual wagering activity; Procedures to govern emergencies, including suspected or actual cyber-attacks, hacking or tampering with the sports wagering licensee’s sports wagering platform, sports wagering website and sports wagering equipment; Procedures for the reconciliation or repayment of a registered bettor’s sports wagering account; Procedures for automated and manual risk management; Procedures for compliance with AML standards; Description of all integrated third-party hardware, software, or systems; Procedures to identify a wager or attempts to wager above any maximum wager threshold set by the sports wagering licensee; Procedures to be utilized by an employee of a sports wagering licensee in the event of a malfunction of sports wagering licensee’s: Sports wagering website; Sports wagering platform; or Sports wagering equipment; and Any other items the Commission may request in writing to be included in the internal controls. Prior to authorizing a sports wagering licensee to commence the conduct of sports wagering, the Commission shall review and approve the system of internal controls, security protocols, and audit protocols submitted under this chapter to determine whether these controls and protocols conform to the requirements of this chapter and whether they provide adequate and effective controls for the conduct of sports wagering. A sports wagering licensee shall submit to the Commission a catalog of the type of events that it intends to accept wagers on as well as the type of wagers it intends to accept. A sports wagering licensee shall notify the Commission of any changes to the catalogue at least 72 hours in advance of implementation of these changes. A sports wagering licensee shall continually maintain a catalog of all prior and current events and the types of wagers it offered on the events. At least 60 days before sports wagering operations are to commence or another timeframe as approved by the Commission, a sports wagering licensee shall submit its internal controls to the Commission for review and written approval. The internal controls shall be accompanied by: A certification by the sports wagering licensee’s chief executive officer or chief legal officer that the submitted internal controls conform to the requirements of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this chapter; A certification by the sports wagering licensee’s director of finance that the submitted internal controls: Establish a consistent overall system of internal controls; Provide reasonable assurance that financial reporting conforms to generally accepted accounting principles in the United States; and Conform to the requirements of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this chapter; and An opinion letter by an independent certified public accountant expressing an opinion as to: The effectiveness of the design of the submitted system of internal controls over financial reporting; Whether the submitted system of internal controls conforms to the requirements of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this chapter; and If applicable, whether a deviation from the requirements of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, or this chapter identified by the independent certified public accountant in the course of its review of the submitted system of internal controls is material. A sports wagering licensee may not commence operations until its internal controls are approved in writing by the Commission. If the Commission determines that a submitted internal control is deficient, the Commission shall: Provide the sports wagering licensee with written notice of the deficiency; Require the sports wagering licensee to revise the internal control as appropriate; and Request the sports wagering licensee to resubmit the internal controls to the Commission for review and approval. A sports wagering licensee may not implement a change or amendment in its approved internal controls without the prior written approval of the Commission. A sports wagering licensee’s initial internal controls submission and a change or amendment to its approved internal controls shall be reviewed and approved in accordance with a process and time frame developed and implemented by the Commission. The process developed by the Commission under §F of this regulation shall, at a minimum, require the sports wagering licensee to: Submit a redlined copy of any section of the approved internal controls to be changed or amended with added text underlined and deleted text lined out; Document on the redlined copy the date the Commission approved the section to be changed or amended and the date the revision was submitted to the Commission for review; Submit a narrative explaining the reason for the change or amendment which includes the sports wagering licensee’s target date for implementation; Submit the written representations required in §B(1) and (2) of this regulation with regard to the proposed change or amendment; and Mark each page of approved internal controls with the date on which it was approved by the Commission. The Commission may require a sports wagering licensee to submit daily, weekly, monthly, quarterly, and annual reports of financial and statistical data. Reports required under this regulation shall be in a form and submitted in accordance with a time frame specified by the Commission. Unless otherwise specified by the Commission, reports to the Commission shall be signed by the: Chief executive officer if the sports wagering licensee is a corporation; General partner if the sports wagering licensee is a partnership; Manager if the sports wagering licensee is a limited liability company; Chief executive officer or functional equivalent if the sports wagering licensee is any other form of business association; or Owner if the sports wagering licensee is a sole proprietorship. A sports wagering licensee shall submit a report to the Commission on the due date specified by the Commission unless an extension has been approved in writing by the Commission. The Commission may, on written notice to a sports wagering licensee, require an interim report to be submitted in a form and in accordance with a time frame specified by the Commission. A sports wagering licensee shall cause its annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant. The annual financial statements shall be: Prepared on a comparative basis for the current and prior fiscal year and present financial position and results of operations in conformity with generally accepted accounting principles in the United States; and If the revenue and assets of the Maryland sports wagering licensee operations are less than 75 percent of the combined total of the sports wagering licensee’s parent, Maryland specific audited annual financial statements of the sports wagering licensee revenue and assets. The audited financial statements shall include a footnote reconciling and explaining any difference between the financial statements included in any report submitted to the Commission under Regulation .06 of this chapter and the audited financial statements. A sports wagering licensee shall with regard to adjustments resulting from the annual audit: Disclose to the Commission all adjustments whether or not recorded in the accounting records; and Record the adjustment in the accounting records of the year to which the adjustment relates. No later than 90 days after the end of its fiscal year, a sports wagering licensee shall submit to the Commission: A copy of its audited financial statements; and Any management letter or report prepared with regard to the financial statements by its independent certified public accountant. A sports wagering licensee shall require the independent certified public accountant auditing its financial statements or other qualified entity approved by the Commission to render the following additional reports: A report identifying: Material weaknesses or significant deficiencies in the sports wagering licensee’s Commission-approved internal controls noted in the course of the examination of the financial statements; and Recommendations as to how to eliminate each material weakness or significant deficiency identified; and A report assessing the adequacy and effectiveness of the sports wagering licensee’s information technology security controls and system configurations with recommendations as to how to eliminate each material weakness or significant deficiency identified. A sports wagering licensee shall prepare a written response to the reports required by §F of this regulation which includes details as to any corrective action taken. No later than 120 days after the end of its fiscal year, a sports wagering licensee shall submit to the Commission a copy of: The reports required under §F of this regulation; The response required under §G of this regulation; and Any other report on internal controls or other matters relative to its accounting or operating procedures rendered by its independent certified public accountant. If a sports wagering licensee or any of its affiliates are publicly held, the sports wagering licensee shall submit to the Commission a copy of: Any report required to be filed with the Securities and Exchange Commission including: Form S-1; Form 8-K; Form 10-Q; Form 10-K; Proxy statement; Information statement; and Registration statement; and Any other report required to be filed with a domestic or foreign securities regulatory agency. A report required to be filed under §I of this regulation shall be submitted to the Commission no later than 10 days after the date of filing with the applicable agency. A sports wagering licensee shall submit a written report to the Commission if an independent certified public accountant who is engaged as the principal accountant to audit its financial statements: Resigns; Is dismissed as the sports wagering licensee’s principal accountant; or Is replaced by another independent certified public accountant as principal accountant. A report required to be filed under §K of this regulation shall include: The date of the resignation, dismissal, or new engagement; Whether in connection with the audits of the two most recent years preceding a resignation, dismissal, or new engagement there were any disagreements, resolved or unresolved, with the former accountant on: Accounting principles or practices; Financial statement disclosure; or Auditing scope or procedure; The nature of any disagreement disclosed in §L(2) of this regulation; Whether the principal accountant’s report on the financial statements for either of the past 2 years contained an adverse opinion or disclaimer of opinion or was qualified; The nature of any adverse opinion, disclaimer of opinion, or qualification; and A letter from the former principal accountant addressed to the Commission stating whether the principal accountant concurs with the statements made by the sports wagering licensee in the report to the Commission submitted under this section. A report required to be filed under §K of this regulation shall be submitted to the Commission no later than 10 days after the end of the month in which the resignation, dismissal, or new engagement occurred. No later than 7 days after the date of filing with the Financial Crimes Enforcement Network, a sports wagering licensee shall provide the Commission with access to each Suspicious Activity Report filed under 31 CFR §103.21. A sports wagering licensee or a director, officer, employee, or agent of a sports wagering licensee who reports suspicious activity under 31 CFR §103.21 may not notify an individual involved in the suspicious activity that the suspicious activity has been reported. No later than 7 days after the date of filing with the Financial Crimes Enforcement Network, a sports wagering licensee provide with the Commission with access to each Currency Transaction Report filed under 31 CFR §103.22. At least 30 days before sports wagering operations are to commence, a sports wagering licensee shall submit to the Commission a copy of its compliance program required under 31 CFR §103.64. On or before the effective date, a sports wagering licensee shall submit to the Commission any change or amendment to its compliance program required under 31 CFR §103.64. All original books and records shall be: Prepared and maintained in a complete, accurate, and legible form; Stored in a format that ensures readability, regardless of whether the technology or software that created or maintains it has become obsolete; Retained in a secure location equipped with a fire notification system: At the sports wagering licensee’s facility; or An off-site location approved by the Commission under §F of this regulation for the express purpose of document storage; Kept immediately available for inspection by the Commission during all hours of operation; Organized and indexed in a manner designed to provide immediate accessibility to the Commission; and Destroyed only after expiration of the minimum retention period required under this regulation. The Commission may, on submission of a written request or alternate record retention schedule by a sports wagering licensee, authorize destruction prior to the expiration of the minimum retention period required under this regulation. Unless a request for destruction or alternate record retention schedule is submitted in writing and approved in writing by the Commission, a sports wagering licensee shall retain indefinitely original books and records documenting: Ownership of the sports wagering licensee’s facility if applicable; Internally initiated investigations and due diligence; Personnel matters; Signature cards of current employees; and Destruction of documents, including: The identity of the document; Period of retention; and Date of destruction. Unless a request for destruction or alternate record retention schedule is submitted in writing and approved in writing by the Commission, a sports wagering licensee shall retain for a minimum of 5 years all original books and records not: Identified for indefinite retention under §C of this regulation; or Subject to an exception under §E of this regulation. Exceptions. The following exceptions apply to the retention period in §D of this regulation: A minimum retention period of 5 years shall apply to documentation pertaining to cashiers’ cage transactions; A minimum retention period of 5 years shall apply to: Signature cards of terminated employees; Insurance records relating to claims by bettors; Surveillance and security department: Employee duty logs; Visitor logs; Incident logs; Recording logs; and Equipment malfunction reports; and Documentation pertaining to sports wagering tickets or promotional play instruments reported to the Commission as possibly counterfeit, altered, or tampered with; A minimum retention period of 30 days shall apply to: Cancelled promotional play instruments for which all reconciliations required by the sports wagering licensee’s approved internal controls have been conducted and resolved; Voided sports wagering tickets; and Sports wagering tickets and vouchers redeemed at a facility other than through a ticket redemption unit or kiosk. On submission of a written request by the sports wagering licensee, the Commission may approve a location outside the facility to store original books and records. A sports wagering licensee requesting to store original books and records outside the facility shall submit to the Commission: A description of the proposed location, including details with regard to security and fire notification systems; Details with regard to the ownership of the proposed location; and Procedures for Commission access to original books and records retained at the proposed location. A sports wagering licensee may not store books and records outside the facility without the prior written approval of the Commission. On submission of a written request by a sports wagering licensee, the Commission may approve a suitable media system for the copying and storage of original books and records. A sports wagering licensee submitting a system for the copying and storage of original books and records shall demonstrate to the satisfaction of the Commission that the: Processing, preservation, and maintenance methods to be utilized will make books and records readily available for review and reproduction; Inspection and quality control methods to be utilized will ensure that when books and records are viewed or reproduced they will exhibit a high degree of legibility and readability; Equipment necessary to readily locate, read, and reproduce books and records is available to the Commission at the location or approved off-site location; and Detailed index of all stored data maintained and arranged to facilitate the immediate location of particular books and records is available to the Commission at the location or approved off-site location. A sports wagering licensee may not utilize a media system for the copying and storage of original books and records without the prior written approval of the Commission. A sports wagering licensee may utilize the services of a contractor for the destruction of books and records permitted to be destroyed under this regulation. Nothing in this regulation shall be construed as relieving a sports wagering licensee of any obligation to prepare or maintain books and records required by any other federal, State, or local governmental entity. Requirements. A sports wagering licensee shall be under the authority of the County Alcoholic Beverages Licensing Authority for the county in which the facility is located with regard to the sale to individuals of food and alcoholic beverages. Except as provided in this section, a sports wagering licensee may not provide food or alcoholic beverages to individuals at no cost. Food or alcoholic beverages offered by a sports wagering licensee for sale to individuals may be offered only at prices that are determined by the County Alcoholic Beverages Licensing Authority to be commensurate with the price of similar types of food and alcoholic beverages at restaurants in the county in which the facility is located. A sports wagering licensee may provide food at no cost to individuals to the same extent allowed under Alcoholic Beverages Article §5-303, Annotated Code of Maryland, for a person engaged in the sale or barter of spirituous, malt, or intoxicating liquors and licensed in Maryland. A sports wagering licensee shall develop, maintain, and implement adequate written internal controls over the authorization and provision of complimentary services. A sports wagering licensee shall at all times make available to the Commission the internal controls required under §B of this regulation but is not required to include them in the system of internal controls submitted to the Commission for approval under Regulation .05 of this chapter. A sports wagering licensee shall collect and retain data pertaining to the cost of, and number of individuals provided with, each category of complimentary services. Report. A sports wagering licensee shall submit to the Commission a quarterly report summarizing complimentary services provided during the reporting period. The report shall include calendar year-to-date totals of complimentary services provided. The report shall be submitted: On or before the 15th day of the month following the end of each quarter; or At the request of the Commission. The report required under §E of this regulation shall: Separate complimentary services into the following categories: Rooms; Food and Beverage; Travel; Gifts: Cash; and Noncash; and Other; and Determine the cost of complimentary services provided to a bettor as follows: Complimentary services offered by a sports wagering licensee in the normal course of business shall be reported at an amount based upon the full retail price normally charged for the service by the sports wagering licensee; Complimentary services not offered for sale by the sports wagering licensee in the normal course of business but provided directly by the sports wagering licensee to the bettor shall be reported at an amount based upon the actual cost to the sports wagering licensee of providing the service; Complimentary services provided directly or indirectly on behalf of a sports wagering licensee by a third party not related to the sports wagering licensee shall be reported at an amount based upon the actual cost to the sports wagering licensee of having the third party provide the service; and Complimentary services provided directly or indirectly on behalf of a sports wagering licensee by a third party related to the sports wagering licensee shall be reported at an amount based upon the actual cost to the third party of providing the service. A sports wagering licensee shall submit to the Commission a report identifying a bettor who, together with guests, received $5,000 or more in complimentary services within a period of 5 consecutive days. The report required by §G of this regulation shall: State the reason complimentary services were provided; Include the bettor’s rating in the sports wagering licensee’s bettor rating system at the time the complimentary services were provided; Disclose the total amount, including year-to-date totals, provided in complimentary services separated into the following categories: Rooms; Food and beverage; Travel; Gifts: Cash; and Noncash; and Other; and Be submitted: At least quarterly, by the 15th day of the month following the end of each quarter; or At the request of the Commission. For the purposes of this regulation, the title used to describe a department head is intended to indicate responsibility for the functions of the enumerated department and does not obligate the sports wagering licensee to the use of that particular title. Subject to the requirements of this regulation, a sports wagering licensee shall tailor its table of organization to meet its needs and policies. At least 30 days before sports wagering operations are to commence, a sports wagering licensee shall submit to the Commission for review and written approval a table of organization depicting all direct and indirect reporting lines for: The chief executive officer required under §E(5) of this regulation; Mandatory departments required under §E(6) of this regulation; and If applicable, the cashiers’ cage manager required under §M of this regulation. A sports wagering licensee may not commence operations until the table of organization submitted under §C of this regulation is approved in writing by the Commission. The holder of a Class A sports wagering facility license’s table of organization shall include: A system of personnel and chain of command which permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility; The segregation of incompatible functions, duties, and responsibilities so that no individual is in a position to both: Commit an error or to perpetrate a fraud; and Conceal the error or fraud in the normal course of the individual’s duties; All functions, duties, and responsibilities of qualified personnel; Areas of responsibility which are not so extensive as to be impractical for one individual to monitor; A chief executive officer: Based for employment purposes at the facility; Licensed as a principal employee; and Ultimately responsible for the daily conduct of all sports wagering business; and The following mandatory departments and supervisors: A surveillance department supervised by a director of surveillance: Based for employment purposes at the facility; Subject to the reporting requirements of §I of this regulation; Licensed as a principal employee; and Responsible for the surveillance of all aspects of sports wagering operations; An internal audit department supervised by a director of internal audit: Based for employment purposes at the facility if applicable; Subject to the reporting requirements of §G of this regulation; Licensed as a principal employee; and Responsible for assessing compliance with approved internal controls, applicable laws and regulations, the reliability of financial reporting, deterring and investigating fraud, and the safeguarding of assets; An information technology department supervised by a director of information technology: Based for employment purposes at the facility if applicable; Licensed as a principal employee; and Responsible for the quality, reliability, accuracy, and security of all sports wagering platforms and associated equipment and software utilized by the sports wagering licensee; A security department supervised by a director of security: Based for employment purposes at the facility; Licensed as a principal employee; and Responsible for the overall security of the facility; An accounting department supervised by a director of finance: Based for employment purposes at the facility; Licensed as a principal employee; and Responsible for all accounting and finance functions including the control and supervision of the cashiers’ cage, satellite cages, and count room; and A sports wagering department supervised by a director of sports wagering operations: Based for employment purposes at the facility if applicable; Licensed as a principal employee; and Responsible for the operation and conduct of sports wagering. The Commission may require the holder of a Class B-1 sports wagering facility license to comply with any or all of the requirements set forth in §E of this regulation. The director of surveillance and the director of internal audit required under §E(6) of this regulation shall be independent of the chief executive officer regarding matters of policy, purpose, responsibility, and authority and shall report directly to: An individual based for employment purposes at the facility, if applicable, with no incompatible functions; or An audit committee of: The sports wagering licensee; or A Commission-authorized licensed affiliate of the sports wagering licensee. The individual or audit committee to whom the director of surveillance and the director of internal audit report under §G of this regulation shall also control the hiring, termination, and salary of the director. The director of surveillance and the director of internal audit may report to the chief executive officer with regard to daily operations. Mandatory departments and the supervisors over them shall cooperate with, yet perform independently of, all other mandatory departments and supervisory positions. A sports wagering licensee may designate more than one individual to serve jointly as the director of a mandatory department required by §E of this regulation. A joint director of a mandatory department under §K of this regulation shall be: Based for employment purposes at the facility if applicable; and Individually and jointly accountable and responsible for the operation of the department. A department that is not mandatory may operate under, or in conjunction with, a mandatory department where the table of organization is consistent with the requirements of §E of this regulation. A sports wagering licensee’s cashiers’ cage manager shall be licensed as a principal employee for: The holder of a Class A sports wagering facility license; and The holder of a Class B-1 sports wagering facility license if required by the Commission. On any shift for which the cashiers’ cage manager is not present in the facility, the cashiers’ cage shift manager responsible for the cashiers’ cage shall be licensed as a principal employee unless another principal employee required by this regulation is present at the facility for: The holder of a Class A sports wagering facility license; and The holder of a Class B-1 sports wagering facility license if required by the Commission. A sports wagering licensee may not implement a change in the table of organization approved by the Commission under §E or F of this regulation without the prior written approval of the Commission. A sports wagering licensee shall ensure that an employee is trained in the policies, procedures, and internal controls relevant to the individual’s function. Vacancy. If there is a vacancy in the chief executive officer position or any mandatory department director position required by §E or F of this regulation, the following shall apply: No later than 5 days after the date of a vacancy, a sports wagering licensee shall notify the Commission in writing of: The vacant position; The date on which the position will become or became vacant; and The date on which the sports wagering licensee anticipates that the vacancy will be filled on a permanent basis; No later than 30 days after the date of a vacancy, a sports wagering licensee shall fill the vacant position on a temporary basis; No later than 120 days after the original date of the vacancy, a sports wagering licensee shall fill the vacant position on a permanent basis; and No later than 5 days after filling a vacancy, a sports wagering licensee shall notify the Commission in writing of: The vacant position filled; The name of the individual designated to fill the position; The date that the vacancy was filled; and Whether the vacancy has been filled on a temporary or permanent basis. Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license. The Commission may require the holder of a Class B-1 sports wagering facility license to comply with any or all of the requirements of this regulation. A sports wagering licensee shall install in its facility a surveillance system that complies with the requirements of this regulation. A sports wagering licensee’s surveillance system shall be reviewed and approved by the Commission under Regulation .11 of this chapter. A sports wagering licensee’s surveillance system shall include: Light sensitive cameras enabled by: Lenses of sufficient magnification to monitor activity at each betting window, kiosk and other sports wagering related areas and activities in a facility; Lighting which is continuous and of sufficient quality to produce clear video recordings and still pictures; and 360-degree pan, tilt, and zoom capability, without camera stops, configured to clandestinely monitor and record: Transactions conducted at each betting window, kiosk and other sports wagering related areas and activities in a facility; Transactions conducted in the cashiers’ cage and any satellite cage including the face of each individual transacting business with a cashier; Transactions conducted at ticket redemption units and automated teller machines; Activity in the count room; Movement of cash and cash storage boxes within the facility; Entrances and exits to the facility; Activities in all other restricted areas; and Other areas and events designated by the Commission; A monitor room located in the facility: Staffed by employees of the sports wagering licensee’s surveillance department 24 hours per day; and Equipped with: A communication system capable of monitoring all security department communications; Connections, direct or through a documented communication protocol with the security department, to all facility alarm systems; A surveillance failure notification system that provides an audible, as well as a visual notification, of any failure in the surveillance system or the digital video recording media storage system; An emergency power system, tested by the sports wagering licensee in the presence of the Commission at least once a year, which can be used to operate the surveillance system in the event of a power failure; Computer terminals permitting event notification to, and read only access by authorized surveillance department employees to, the Class A licensee’s sports wagering platform; An updated photo library, consisting of photographs that are no more than 5 years old, of all current employees of the facility; A copy of the Class A sport wagering facility licensee’s floor plan required under COMAR 36.03.10.17.04B; A copy of the procedures addressing the evacuation of the facility in the event of fire or other emergency required under Regulation .13 of this chapter; and Copies of the surveillance system contingency plans required under Regulation .11 of this chapter; Digital video recording capability equipped to: Superimpose the date and time on all monitoring and recording; Identify and locate, through the use of a meter, counter, or other device or method, a particular event which was recorded; Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images; and Be authenticated through use of an embedded video verification encryption code or watermark; Audio recording capability in the count room that is: Installed and disclosed to employees of the facility; and Consistent with the Courts and Judicial Proceedings Article, §§10-401—10-414, Annotated Code of Maryland; and An access system which: Controls: Physical and logical access to the surveillance system; and Physical access to the surveillance monitor room; and Restricts access to the security administration capabilities of the system. A sports wagering licensee shall configure its surveillance system to record all areas and transactions enumerated in §E(1) of this regulation with a resolution of 4 common image format at a minimum of: For a standard definition camera, 30 frames per second; or For a high-definition camera, 15 frames per second. A sports wagering licensee may configure its surveillance system to record activity in areas of the facility not covered by §E of this regulation at a reduced frame rate with a resolution of 4 common image format, as follows: Public areas shall be recorded at a minimum frame rate of 15 frames per second; and Areas not accessible to the public shall be recorded at a minimum frame rate of 7.5 frames per second. Except as provided in §I of this regulation, a sports wagering licensee shall retain surveillance recordings: For a minimum of 7 days for transactions or events in the areas covered under §E of this regulation; and For a minimum of 14 days for transactions or events in the areas covered under §F of this regulation. Upon the request of the Commission or a law enforcement agency that has proper jurisdiction over the facility, a recording shall be retained and stored in accordance with the directives of the Commission or law enforcement agency pertaining to that recording. Except as provided in this regulation, a surveillance system shall be under the exclusive control of a sports wagering licensee’s surveillance department. A sports wagering licensee shall provide the Commission with timely and unfettered access to its surveillance monitor room, surveillance system, and all transmissions. A sports wagering licensee shall timely comply with a request from the Commission to: Use, as necessary, any monitor room in the facility; Display on the monitors in its monitor room or in the Commission’s on-site monitor room any event capable of being captured by the surveillance system; Relinquish control of a camera or monitor; Discontinue monitoring a particular camera or recording activity captured by it; Make a video recording or photograph of any event capable of being captured by the surveillance system; and Restrict or deny access to a recording or photograph. A surveillance system may not be remotely accessed from a facility outside the surveillance monitor room without the prior written approval of the Commission. An entrance to a surveillance monitor room may not be visible from the facility floor. Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license. The Commission may require the holder of a Class B-1 sports wagering license to comply with any or all of the requirements of this regulation. At least 60 days before sports wagering operations are to commence, a sports wagering licensee shall submit to the Commission for review and written approval: A surveillance system meeting the requirements of Regulation .10 of this chapter including, at a minimum, details pertaining to: Camera configuration inside and outside the facility; Monitor room configuration; Video recording format and configuration specifications; Authentication of digital recordings, including Commission access to the system’s video verification encryption code or watermark; Audio recording format; and System access controls; and Surveillance department operating procedures conforming to this regulation. A sports wagering licensee may not commence operations until its surveillance system and surveillance department operating procedures are approved in writing by the Commission. A sports wagering licensee’s surveillance department operating procedures shall, at a minimum, require: Coverage of all areas and transactions enumerated in Regulation .10 of this chapter; Contingency plans addressing: Full and partial failure of the surveillance system including: A contact list with telephone numbers for individuals required to be notified in the event of a failure; and Facility closure protocols; and Planned shutdown of the surveillance system; A surveillance incident log to: Be maintained by monitor room employees in: A book with bound numbered pages that cannot be readily removed; or An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and Document the scheduled coverage in §D(1) of this regulation and all other non-routine surveillance activity as follows: Date and time surveillance is commenced; Name and Commission license number of the individual initiating, performing, or supervising the surveillance; Reason for the surveillance; Whether the suspicious activity involves an alleged regulatory violation or criminal activity; Name, if known, alias, or description of an individual being monitored; Description of the activity in which the individual being monitored is engaged; Reading on a meter, counter, or device that identifies the point on the video recording at which the event occurred; Time at which a video recording is commenced and terminated, if different than when surveillance is commenced or terminated; Date and time surveillance is terminated; Summary of the results of the surveillance; and Description of the time, date, and cause of any equipment or camera malfunction which occurred during the conduct of surveillance; A surveillance room entry log to: Be Signed by an individual entering the surveillance monitor room who is not a surveillance department employee assigned to the monitor room’s work shift at the time of entry; Be maintained by monitor room employees in: A book with bound numbered pages that cannot be readily removed; or An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and Document the following: Date and time of entering the monitor room; The entering individual’s name and department or affiliation; The reason for entering the monitor room; The name of the individual authorizing the individual’s entry into the monitor room; and The date and time of exiting the monitor room; That surveillance monitor room employees notify: Security department supervisory personnel within 5 minutes of an incident of equipment failure affecting coverage of the facility; and The Commission within 30 minutes of an incident of equipment failure affecting coverage of the facility citing: Date and time; Cause of the malfunction; and Time a sports wagering licensee’s security department was notified of the malfunction; That a sports wagering licensee confirm in writing a notice given verbally to the Commission under §D(5) of this regulation; and That, on a daily basis, a sports wagering licensee synchronize the date and time on the surveillance system to the date and time on a public time server. A sports wagering licensee may not implement a change or amendment in its surveillance system or surveillance department operating procedures approved by the Commission under §C of this regulation without the prior written approval of the Commission. Surveillance department employees shall be reasonably segregated and independent of all other departments at the facility. A surveillance department employee may not transfer to any other department in the facility without the prior written approval of the Commission. Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license. The Commission may require the holder of a Class B-1 sports wagering facility license to comply with any or all of the requirements of this regulation. At least 60 days before sports wagering operations are to commence, a sports wagering licensee shall submit its surveillance department minimum staffing plan to the Commission for review and written approval. A sports wagering licensee may not commence operations until its surveillance department minimum staffing plan is approved in writing by the Commission. A surveillance department minimum staffing plan shall assess, on a per-shift basis, the minimum number of on duty surveillance department employees necessary to: Provide adequate and effective surveillance of all activities in and outside the facility; Ensure the physical safety of employees of and invitees to the facility; Comply with all applicable laws and regulations including Commission-approved internal controls and operating procedures; Monitor the facility to ensure that the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility: An intoxicated individual; or An excluded individual; and Monitor the facility floor to ensure that an individual younger than 21 years old is identified, prohibited from accessing the facility floor in accordance with State Government Article, §9-1E-11(a)(1), Annotated Code of Maryland, and, if necessary, immediately removed from the facility floor. A sports wagering licensee’s proposed surveillance department minimum staffing plan shall consider: Square footage and layout of the facility; Use of fixed and roving security posts; Activity level on a per-shift basis and identify it as slow, normal, or peak; Department supervisory needs; and A limit of one employee per monitor station. A sports wagering licensee may not implement a change or amendment in the surveillance department minimum staffing plan approved by the Commission under §C of this regulation without the prior written approval of the Commission. This regulation is only applicable to the holder of a Class B sports wagering facility license. A sports wagering licensee shall install in its facility a surveillance system that complies with the requirements of this regulation. A sports wagering licensee’s surveillance system shall be reviewed and approved by the Commission under Regulation .14 of this chapter. A sports wagering licensee’s surveillance system shall include: Light sensitive cameras that are: Enabled by lenses of sufficient magnification to monitor activity at each betting window, kiosk and other sports wagering related areas and activities in the facility; Enabled by lighting which is continuous and of sufficient quality to produce clear video recordings and still pictures; and Configured to clandestinely monitor and record: Transactions conducted at each betting window, kiosk and other sports wagering related areas and activities in the facility; Transactions conducted at cashier locations including the face of each individual transacting business with a cashier; Transactions conducted at automated teller machines; Activity in the count room; Movement of cash and cash storage boxes within the facility; Entrances and exits to the facility; Activities in all other restricted areas; and Other areas and events designated by the Commission; and Digital video recording capability equipped to: Superimpose the date and time on all monitoring and recording; Identify and locate, through the use of a meter, counter or other device or method, a particular event which was recorded; and Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images. Except as provided in §F of this regulation, a sports wagering licensee shall retain surveillance recordings for a minimum of 7 days. Upon the request of the Commission or a law enforcement agency that has proper jurisdiction over the facility, a recording shall be retained and stored in accordance with the directives of the Commission or law enforcement agency pertaining to that recording. A sports wagering licensee shall provide the Commission with timely and unfettered access to its surveillance monitor room, surveillance system and all transmissions. A sports wagering licensee shall comply in a timely fashion with a request from the Commission to: Use, as necessary, any monitor room in the facility; Display on the monitors in its monitor room any event capable of being captured by the surveillance system; Relinquish control of a camera or monitor; Discontinue monitoring a particular camera or recording activity captured by it; Make a video recording or photograph of any event capable of being captured by the surveillance system; and Restrict or deny access to a recording or photograph. A surveillance system may not be remotely accessed from a location outside the surveillance monitor room without the prior written approval of the Commission. This regulation is only applicable to the holder of a Class B sports wagering facility license. At least 60 days before sports wagering operations are to commence, a sports wagering licensee shall submit to the Commission for review and written approval: A surveillance system meeting the requirements of Regulation .13 of this chapter including, at a minimum, details pertaining to: Camera configuration inside and outside the facility; Monitor room configuration; Video recording format and configuration specifications; Authentication of digital recordings, including Commission access to the system’s video verification encryption code or watermark; Audio recording format; and System access controls; and Surveillance department operating procedures conforming to this regulation. A sports wagering licensee may not commence operations until its surveillance system and surveillance department operating procedures are approved in writing by the Commission. A sports wagering licensee’s surveillance department operating procedures shall, at a minimum, require: Coverage of all areas and transactions as enumerated in Regulation .13 of this chapter; Contingency plans addressing a full or partial failure of the surveillance system; A surveillance system access log that documents: The date and time the surveillance system is accessed by an individual; The accessing individual’s name and department or affiliation; The reason for accessing the surveillance system; and The date and time the individual ended their access of the surveillance system; The sports wagering licensee to notify the Commission within 12 hours of an equipment failure affecting coverage of the facility citing: The date and time of the failure; The cause of the failure; The length of time the surveillance system was inoperable or malfunctioning; and The length of time the before the surveillance system is expected to be operable or have the malfunction to be corrected; The sports wagering licensee to confirm in writing a notice given verbally to the Commission under §D(4) of this regulation; and On a daily basis, the sports wagering licensee to synchronize the date and time on the surveillance system to a public time server. A sports wagering licensee may not implement a change or amendment in its surveillance system or surveillance department operating procedures approved by the Commission under §B of this regulation without the prior written approval of the Commission. This regulation is only applicable to the holder of a mobile sports wagering license. A sports wagering licensee shall install in each of the licensee’s data information centers and operations centers a surveillance system that complies with the requirements of this regulation. A sports wagering licensee’s surveillance system shall be reviewed and approved by the Commission under Regulation .16 of this chapter. A sports wagering licensee’s surveillance system shall include: Light sensitive cameras that are: Enabled by lenses of sufficient magnification to observe front and back of each server cabinet that house all servers that collectively are the online wagering and associated systems; Enabled by lighting which is continuous and of sufficient quality to produce clear video recordings and still pictures; and Configured to monitor and record physical access to the online wagering and associated systems; and Digital video recording capability equipped to: Superimpose the date and time on all monitoring and recording; Through the use of a meter, counter or other device or method, identify and locate a particular event which was recorded; and Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images. Except as provided in §F of this regulation, a sports wagering licensee shall retain surveillance recordings for a minimum of 90 days. Upon the request of the Commission or a law enforcement agency that has proper jurisdiction over the sports wagering licensee, a recording shall be retained and stored in accordance with the directives of the Commission or law enforcement agency pertaining to that recording. A sports wagering licensee shall provide the Commission with timely and unfettered remote access to its surveillance system and all transmissions. A sports wagering licensee shall comply in a timely fashion with a request from the Commission to: Display on monitors any event capable of being captured by the surveillance system; Make a video recording or photograph of any event capable of being captured by the surveillance system; and Restrict or deny access to a recording or photograph. A surveillance system may not be directly accessible from a location outside a mobile sports wagering licensee’s local network. This regulation is only applicable to the holder of a mobile sports wagering license. At least 60 days before sports wagering operations are to commence, a sports wagering licensee shall submit to the Commission for review and written approval: A surveillance system meeting the requirements of Regulation .15 of this chapter including, at a minimum, details pertaining to: Camera configuration inside and outside the data information centers and operations centers; Monitor room configuration; Video recording format and configuration specifications; Authentication of digital recordings, including Commission access to the system’s video verification encryption code or watermark; Audio recording format; and System access controls; and Surveillance department operating procedures conforming to this regulation. A sports wagering licensee may not commence operations until its surveillance system and surveillance department operating procedures are approved in writing by the Commission. A sports wagering licensee’s surveillance department operating procedures shall, at a minimum, require: Coverage of all areas and transactions as enumerated in Regulation .15 of this chapter; Contingency plans addressing a full or partial failure of the surveillance system; A surveillance system access log that documents: The date and time the surveillance system is accessed by an individual; The accessing individual’s name and department or affiliation; The reason for accessing the surveillance system; and The date and time the individual ended their access of the surveillance system; The sports wagering licensee to notify the Commission within 12 hours of an equipment failure affecting coverage of the facility citing: The date and time of the failure; The cause of the failure; The length of time the surveillance system was inoperable or malfunctioning; and The length of time the before the surveillance system is expected to be or operable or the malfunction to be corrected; The sports wagering licensee to confirm in writing a notice given verbally to the Commission under §D(4) of this regulation; and On a daily basis, the sports wagering licensee to synchronize the date and time on the surveillance system to Eastern Standard Time. A sports wagering licensee may not implement a change or amendment in its surveillance system or surveillance department operating procedures approved by the Commission under §B of this regulation without the prior written approval of the Commission. Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license. The Commission may require the holder of a Class B-1 sports wagering facility license to comply with any or all of the requirements of this regulation. At least 60 days before sports wagering operations are to commence or another time approved by the Commission, a sports wagering licensee shall submit to the Commission for review and written approval its security department operating procedures. A sports wagering licensee may not commence operations until its security department operating procedures are approved in writing by the Commission. A sports wagering licensee’s security department operating procedures shall, at a minimum, include: A security zone plan for the facility, employing fixed security posts and roving security officers designed to ensure: The physical safety of employees of and invitees to the facility; The safeguarding of assets; Compliance with all applicable laws and regulations including Commission approved internal controls and operating procedures; That the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility: An intoxicated individual; or An excluded individual; and That an individual younger than 21 years old is identified, prohibited from accessing the facility floor in accordance with State Government Article, §9-1E-11(a)(1), Annotated Code of Maryland, and, if necessary, immediately removed from the facility floor; Procedures and controls addressing: Facility access controls including: An access badge system; If utilized, specifications pertaining to a computerized access control system; and Administrative responsibility over a manual or computerized access control system; A temporary access credential; Key controls; Emergency alarm and fire command responsibilities including communication protocols with the surveillance department; Evacuation of the facility in the event of fire or other emergency; The identification and immediate removal of an intoxicated individual, an individual younger than 21 years old, an excluded individual; Bettor disputes under Regulation .37 of this chapter; and The notice requirements of §E(4) of this regulation; A security department incident log: Maintained by security department employees in: A book with bound numbered pages that cannot be readily removed; or An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and Documenting the following: Assignment number of the incident; Date and time; Name and Commission license of the department member covering the incident; Nature of the incident; and Resolution of the incident; and A requirement that a sports wagering licensee notice the Commission on detection of: An individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities; or An individual who is: Younger than 21 years old; Intoxicated; or An excluded individual. Except as set forth in §B, this regulation is applicable only to the holder of a Class A sports wagering facility license. The Commission may require the holder of a Class B-1 sports wagering facility license to comply with any or all of the requirements of this regulation. At least 60 days before sports wagering operations are to commence or another time approved Commission, a sports wagering licensee shall submit its security department minimum staffing plan to the Commission for review and written approval. A sports wagering licensee may not commence operations until its security department minimum staffing plan is approved in writing by the Commission. This regulation is only applicable to the holder of a Class B sports wagering facility license. A sports wagering licensee shall submit to the Commission for review and written approval its security operating procedures. A sports wagering licensee’s security operating procedures shall, at a minimum, include: A security zone plan for the facility designed to ensure: The physical safety of employees and invitees to the facility; The safeguarding of assets; Compliance with all applicable laws and regulations including Commission approved internal controls and operating procedures; That intoxicated individuals are identified, prohibited from entering the facility and, if necessary, immediately removed from the facility; and That an individual younger than 21 years old is identified, prohibited from sports wagering and, if necessary immediately removed from the facility; Procedures and controls addressing: Facility access controls including: An access badge or key system; If utilized, specifications pertaining to a computerized access control system; and Administrative responsibility over a manual or computerized access control system; A temporary access credential; Key controls; Emergency alarm and fire command responsibilities; Evacuation of the facility in the event of fire or other emergency; The identification and immediate removal of an intoxicated individual, and, if applicable, an individual younger than 21 years old; and The notice requirements of §C(4) of this regulation; A security incident log: Maintained in: A book with bound numbered pages that cannot be readily removed; or An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and Documenting: The assignment number of the incident; The date and time of the incident; The name of the person covering the incident; The nature of the incident; and The resolution of the incident; and A requirement that a Class B licensee notify the Commission upon detection of: An individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities; and An individual who is: Younger than 21 years old and has engaged in sports wagering; or Intoxicated. Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license. The Commission may require the holder of a Class B sports wagering facility license to comply with any or all of the requirements of this regulation. At least 60 days before sports wagering operations are set to commence or another time approved Commission, a sports wagering licensee shall submit to the Commission for review and approval internal audit department operating standards and procedures that: Meet the requirements of Regulation .09E(6)(b) of this chapter; Conform to this regulation; and Ensure that an internal audit is conducted in accordance with generally accepted auditing standards in the United States. A sports wagering licensees internal audit department operating procedures and standards shall, at a minimum, require the internal audit department to: Work independently of the departments of the sports wagering licensee that are subject to audit; Assess whether the sports wagering licensees internal controls comply with applicable law and Commission directives; Test the sports wagering licensees compliance with its internal controls; Immediately report a deficiency in, or noncompliance with, the sports wagering licensees internal controls to: The audit committee; The chief executive officer; Management; and The Commission; Recommend resolution for eliminating a deficiency in, or noncompliance with, the sports wagering licensees internal control system; Meet periodically with the audit committee or director of internal audit; Perform audits of: Unless an alternate risk assessment and audit plan is submitted in writing and approved in writing by the Commission, all departments of the sports wagering licensee that are designated under §§C and D of this regulation; and A department of the sports wagering licensee designated by the Commission; Prepare an audit report for each audit conducted; Accurately document the audit process and results in an audit report that, at a minimum, shall include: Audit objectives; Audit procedures and scope; Findings and conclusions; A recommendation for addressing a deficiency in, or noncompliance with, the sports wagering licensees internal controls; Resolution of all exceptions; and Managements response; Submit audit reports to the Commission on a schedule specified by the Commission; and Verify that: A deficiency or noncompliance revealed during an audit has been corrected; and An exception disclosed during an audit has been resolved. If applicable, the audit department shall audit at least semiannually the functions and operations of the sports wagering licensees: Cashiers cage; Collection of cash storage boxes; Cash count; Revenue audit; Sports wagering operations department; and Key control; If applicable, the audit department shall audit at least annually: Responsible gaming program; Security department; Currency transaction reporting; Suspicious activity reporting; Information technology controls; Surveillance department; Bettor tracking system; and Sports wagering platform. The internal audit department shall conduct an audit on an unannounced basis when possible. The sports wagering licensee shall limit and control administrative access to the sports wagering platform and associated equipment by ensuring the following: Maintain access configurations and procedures that meet industry best practices and adhere to nationally recognized information technology compliance standards; Maintain logs of user access and review the logs daily to identify security incidents and unusual transactions; Coordinate and develop an education and training program on information security and privacy matters for employees and other authorized users; Ensure compliance with all State and federal information security policies and rules; Prepare and maintain security-related reports and data; Develop and implement an incident response plan to address security breaches, policy violations and complaints from external parties; Develop and implement an ongoing risk assessment program that targets information security and privacy matters by identifying methods for vulnerability detection and remediation and overseeing the testing of those methods; and Ensure remote access to a sports wagering licensee’s sports wagering platform and associated equipment is only permitted from within the local network and not directly accessible from the internet unless secured and monitored and approved by the MLGCC on a case-by-case basis. All sports wagering licensee’s sports wagering platforms and associated equipment shall be available for independent testing by the Commission or the Commission’s designee. Except as set forth in §B, this regulation is only applicable to the holder of a Class A sports wagering facility license. The Commission may require the holder of a Class B sports wagering facility license to comply with any or all of the requirements of this regulation. A sports wagering licensee shall have on, adjacent, or proximate to the facility floor a physical structure known as a cashiers’ cage to house the cashiers in the facility for: The custody of the cash, accounting records, and forms and documents required under this chapter to conduct sports wagering operations; The initial financial consolidation of all transactions pertaining to sports wagering activity; and Other functions normally associated with the operation of a cashiers’ cage. A cashiers’ cage shall include a manually triggered silent alarm system connected: Directly to the security department; or Directly, or through a documented communication protocol, to the monitor room of the surveillance department. A sports wagering licensee shall make readily available to the Commission: An access control matrix indicating which employee job descriptions are authorized to have access to the cashiers’ cage; and A list of employees, with license number, who are authorized to: Have access to the Cashiers’ cage; Activate or deactivate alarm systems for the cashiers’ cage; and Grant access to the cashiers’ cage through the access control matrix or a computerized access control system. This regulation is only applicable to the holder of a Class A or Class B sports wagering facility license. A sports wagering licensee may only conduct transactions with individuals at its cashiers’ cage and any satellite cage during the hours of operation approved by the Commission for the facility under COMAR 36.10.17.02. A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the segregation of the cashiers’ cage and the general conduct of cashiers’ cage transactions. A sports wagering licensee’s internal controls shall require: The cashiers’ cage and any satellite cage to be physically segregated by personnel and function as follows: General cashiers shall be responsible for: An individual imprest inventory of cash; Receipt and payout of cash, negotiable instruments, sports wagering tickets, and other documentation from and to bettors subject to the limitations imposed under this chapter; and Other functions designated by the sports wagering licensee which are not incompatible with the functions of a general cashier; and Main bank cashiers shall be responsible for: Receipt of cash, negotiable instruments, sports wagering tickets, and other documentation from general cashiers in exchange for cash or documentation; Replenishment of kiosks; Receipt of unsecured cash and unsecured sports wagering tickets; Receipt of cash and documentation from the count room; Preparation of the overall cashiers’ cage reconciliation; Preparation of bank deposits; and Other functions designated by the sports wagering licensee which are not incompatible with the functions of a main bank cashier; Each general cashier and main bank cashier to prepare a cashiers’ count sheet on each shift: Recording the amount of the inventory in the window or bank; Reconciling the total closing inventory with the total opening inventory; and Including the signature of the: Outgoing general or main bank cashier; and Incoming general or main bank cashier; At the end of the wagering day, the cashiers’ cage to forward a copy of each cashiers’ count sheet and related documentation to the accounting department for: Agreement of opening and closing inventories; and Comparison of forms or documents; and No more than 48 hours after the discovery of an employee’s unresolved cage or count room overage or shortage of $500 or more, a sports wagering licensee shall submit a written report to the Commission describing: The reason for the overage or shortage and corrective action taken or adjustment made; or That a notice of investigation is ongoing and the written report will be submitted within the following 48 hours. A sports wagering licensee may accept a negotiable instrument in the form of a check meeting the requirements of this regulation from a bettor to enable the bettor to take part in sports wagering. A sports wagering licensee may accept a check only during the hours of operation approved by the Commission for the facility under COMAR 36.10.17.02. A sports wagering licensee may accept a personal check that is: Made payable to the sports wagering licensee; Drawn on a bank, savings and loan association, or credit union subject to federal or State banking regulation; Drawn for a specific amount; Currently dated, not postdated; and Payable on demand. Subject to the requirements of §E of this regulation, a sports wagering licensee may accept a check issued by: A Sports wagering licensee; The Agency; and A person that: Is an affiliate of the sports wagering licensee; and Holds a valid sports wagering license in another jurisdiction. A sports wagering licensee shall only accept a check under §D of this regulation which has been issued to an individual as: Employment compensation; or A payout in connection with: Sports wagering activity; Casino activity; or Maryland lottery prizes. A sports wagering licensee may not: Except as provided under §C of this regulation, accept a check that is payable to an individual, including: A Social Security check; An unemployment insurance check; A disability payment check; or A public assistance check; or Except for a check issued under §E of this regulation, accept from a bettor under this regulation a check or multiple checks which in the aggregate exceed $30,000 during a wagering day. For a personal check equaling or exceeding $5,000, a sports wagering licensee shall confirm the availability of funds by: Directly contacting the bank, savings and loan association, or credit union upon which the check is drawn; Obtaining an authorization and guarantee of the check from a check verification and warranty service licensed as a contractor under COMAR 36.10.06.04; or Alternate procedures addressing acceptance and verification of personal checks submitted in writing and approved by the Commission. A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter, procedures addressing the acceptance and verification of checks meeting the requirements of this regulation. A sports wagering licensee’s internal controls shall require a check accepted from a bettor by a general cashier to be: If a personal check other than an electronic check, restrictively endorsed “for deposit only” to the bank account designated for this purpose by the sports wagering licensee and: Initialed by the accepting general cashier; Date and time stamped; Documented on the face of the check the number on the bettor’s government-issued photographic identification; and If a personal check equaling or exceeding $5,000, confirmed for availability of funds under §G of this regulation; Verified for signature authenticity by a general cashier who shall: Obtain from the bettor one form of identification that is a valid, unexpired government-issued photographic identification; and Satisfactorily compare the: Signature of the bettor on the personal check or endorsing the payroll or payout check with the signature on an identification credential; and Bettor’s physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the bettor; If presented by a bettor as a payroll or payout check under §E of this regulation, confirmed to have been issued as employment compensation or as a payout in connection with sports wagering activity; and Immediately exchanged for: Cash; If the sports wagering licensee has the capability, a sports wagering ticket; or Funding for a sports wagering account in accordance with this chapter. Subject to the limit in §F(2) of this regulation, a sports wagering licensee may accept a check issued to an individual as a payout in connection with sports wagering activity from a sports wagering licensee that holds a valid sports wagering license in another jurisdiction. A sports wagering licensee may accept a negotiable instrument in the form of a wire transfer from a bettor to enable the bettor to take part in sports wagering. A sports wagering licensee shall record in its cashiers’ cage accountability or other accounting records any funds accepted by wire transfer with no documented business purpose other than to enable a bettor to take part in sports wagering within 24 hours of receipt of the wire transfer. A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the acceptance, verification, and sending of wire transfers meeting the requirements of this regulation. A sports wagering licensee’s internal controls shall: Require preparation of a wire transfer log to record the following information pertaining to a wire transfer accepted by a sports wagering licensee on behalf of a bettor: A sequential number assigned by the sports wagering licensee to the wire transfer accepted; Date and time notice of the wire transfer was received; Name of the financial institution to which the funds were sent; Amount transferred; Name of the bettor for whose benefit the funds were accepted; The name of the financial institution from which the funds were transferred; The method by which the sports wagering licensee was notified of the receipt of the wire transfer; If noticed by telephone, the name and title of the individual providing notice; and The signature of the employee receiving and recording the information required by this section; Require that a supervisor other than the employee who initially documented acceptance of the wire transfer: Independently confirm date, time, and method by which the sports wagering licensee was notified of the wire transfer; Record the date and time of confirmation in the wire transfer log; and Sign the wire transfer log as completing the confirmation process; Document the procedures used to: Establish, verify, and document the identity of a bettor sending a wire transfer; Make the wire transfer proceeds available to a bettor at the cashiers’ cage or any other means as approved by the Commission; and Adjust the cashiers’ cage accountability or other accounting records; Require preparation of a wire transfer log to record the following information pertaining to a wire transfer sent by a sports wagering licensee on behalf of a bettor: A sequential number assigned by the sports wagering licensee to the wire transfer sent; Name of the bettor; Date of the transaction; Amount wired; Source of funds; The name and address of the financial institution to which the funds were wired; Account number to which the funds are credited; If the request to send a wire transfer is made in person at the cashiers’ cage, the signature of the bettor; If the request to send a wire transfer is not made in person at the cashiers’ cage, documentation supporting the receipt of a request by the sports wagering licensee to send a wire transfer on behalf of a bettor; The signature of the cashiers’ cage employee or accounting department employee receiving and recording the information required by this regulation; and The signature of the cashiers’ cage supervisor or accounting department supervisor authorizing the wire transfer; and Document the procedures used to: Establish, verify, and document the identity of a bettor requesting that a wire transfer be sent; Send the wire transfer; and Adjust the cashiers’ cage accountability or other accounting records. A sports wagering licensee may accept a negotiable instrument in the form of a cash equivalent from a bettor to enable the bettor to take part in sports wagering. If applicable, a sports wagering licensee may accept a cash equivalent only during the hours of operation approved by the Commission for a sports wagering facility under COMAR 36.10.15.02. A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the acceptance and verification of cash equivalents meeting the requirements of this chapter. A sports wagering licensee’s internal controls shall: Enumerate the type of cash equivalents complying with this chapter to be accepted; Detail the specific verification procedures required by each issuer; Require that a general cashier: Perform the specific verification procedures required by each issuer; Prepare and maintain documentation evidencing the verification of a cash equivalent accepted; and Examine a cash equivalent for counterfeiting, forgery, or alteration; If applicable, detail the criteria for cashiers’ cage supervisor or accounting department supervisor involvement in the verification process; and Include procedures for verifying the authenticity of a bettor’s signature on a cash equivalent in conformance with the signature authentication procedures in Regulation .19 of this chapter. A sports wagering licensee may establish a customer deposit account for a bettor to enable the bettor to take part in sports wagering. A sports wagering licensee shall perform all procedures required by this chapter before depositing funds accepted by means of check, wire transfer, cash equivalent, or other negotiable instrument into a customer deposit account. If applicable, a sports wagering licensee may accept a customer deposit only during the hours of operation approved by the Commission for the facility under COMAR 36.10.15.02. A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the acceptance of customer deposits meeting the requirements of this regulation. A sports wagering licensee’s internal controls shall: Require acceptance of customer deposits at the cashiers’ cage or by any other means as approved by the Commission; Require preparation of a receipt documenting: Amount deposited; Date of the deposit; and If applicable, the signature of the general cashier accepting the customer deposit; Provide for full or partial withdrawal of a customer deposit: By a bettor at the cashiers’ cage or by any other means as approved by the Commission; or Upon receipt by the sports wagering licensee of a written request for withdrawal for which validity has been established; and Include procedures for documenting acceptance and withdrawal of customer deposits including a verification of the authenticity of a bettor’s signature on a customer deposit withdrawal document in conformance with the signature authentication procedures in Regulation .24 of this chapter. Except for an online sports wagering licensee, a sports wager may not be accepted in any way by use of a: Credit card; or Electronic transfer of funds from a credit card. If an online sports wagering licensee accepts credit cards to fund a sports wagering account, the licensee shall require a bettor to acknowledge that the transaction may be treated as a cash advance and be subject to additional fees. A sports wagering licensee shall utilize a bettor tracking system meeting the requirements of this subtitle. Participation in a bettor tracking system: Subject to §B(2) of this regulation, is voluntary; A bettor using a mobile betting application shall be included in the tracking system. A sports wagering licensee shall provide a bettor with a record of sports wagering spending levels if: The bettor: Has registered with the licensee for inclusion in the bettor tracking system; and Submits a request for the spending level documentation at: The cashiers’ cage; or By any other means approved by the Commission; and For requests made at a sports wagering facility, the identification of the bettor and the authenticity of the bettor’s signature on the request is established by an employee satisfactorily comparing the: Bettor’s information recorded on the spending level request documentation with the information contained on the valid, unexpired government-issued photographic identification presented by the bettor; and Bettor’s physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the bettor. A sports wagering licensee may use a player rewards program that allows a bettor to exchange reward credits for complimentary service in accordance with Regulation .08 of this chapter. Limitation on Reward Programs at Sports Wagering Facilities. Subject to the limitations in this section, a Class A Sports Wagering Facility Licensee that provides sports wagering services on behalf of a Class B Sports Wagering Facility may allow a bettor to: Use reward credits from the rewards program of the Class A Sports Wagering Facility at the Class B Sports Wagering Facility for non-wagering activity; Earn reward credits for the reward program of the Class A Sports Wagering Facility at the Class B Sports Wagering Facility; and Use reward credits from the reward program earned at the Class B Sports Wagering Facility at the Class A Sports Wagering Facility. A Class A sports wagering licensee may not allow a bettor to use: The account wallet of a Class A Sports Wagering Facility Licensee for wagering at a Class B Sports Wagering Facility; Reward credits earned in §E(1)(b) of this regulation to be applied in the bettor’s wallet; and Reward credits of the Class A Sports Wagering Facility for wagering at the Class B Sports Wagering Facility. A sports wagering licensee shall submit a description of the player reward program to the Commission for review and written approval. A sports wagering licensee may issue a sports wagering ticket or voucher and utilize a sports wagering ticket system meeting the requirements of this subtitle. A sports wagering licensee shall issue a sports wagering ticket or voucher which expires 182 days after the date of the sporting event or voucher issuance. Except for mobile sports wagering, a sports wagering licensee shall: Configure its sports wagering ticket system to: Prevent issuance of a sports wagering ticket from a kiosk exceeding $10,000; and Require sports wagering tickets or vouchers of $3,000 or more to be redeemed only at the cashiers’ cage; Configure a ticket redemption unit under Regulation .31 of this chapter to: Redeem only a sports wagering ticket or voucher of less than $3,000; and Direct a bettor attempting to redeem a sports wagering ticket or voucher of $3,000 or more to the cashiers’ cage; and Redeem at its cashiers’ cage a sports wagering ticket or voucher of $3,000 or more by: Cash or check; or Check on the request of a bettor. A sports wagering licensee shall immediately report to the Commission evidence that a sports wagering ticket or voucher has been counterfeited, tampered with, or altered in any way which would affect the integrity, fairness, or reliability of the sports wagering ticket. A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the issuance and redemption of a sports wagering ticket or voucher. A sports wagering licensee’s internal controls shall: Require a sports wagering ticket or voucher to include: Name or trade name of the sports wagering licensee; Date and time of issuance; A description of the wager; Amount of the sports wagering ticket; Unique series number automatically generated by the sports wagering ticket system; Asset number of the ticket redemption unit or point of sale device dispensing the sports wagering ticket; Sports wagering facilities where the sports wagering ticket may be redeemed and any restrictions applicable to redemption; A bar code which enables the sports wagering ticket system to identify the numeric information required by this section; and Notice to the bettor of the terms of expiration; and Include procedures and controls which: Require a sports wagering ticket system to perform the following prior to payment: Verify the validity of the ticket number and amount of the sports wagering ticket or voucher; and Electronically cancel the sports wagering ticket or voucher; Require the sports wagering ticket system to be configured to: Permit access to the complete ticket number of an unredeemed sports wagering ticket or voucher only to sports wagering ticket system administrative employees and accounting department employees not assigned to the cashiers’ cage; and Maintain a record of all unredeemed sports wagering tickets or vouchers for a minimum of 2 years from the date of the sporting event or issuance of the sports wagering voucher unless a request to remove or relocate system records is submitted in writing and approved in writing by the Commission; Address the following events: Calculation and transmittal by the sports wagering licensee of its outstanding expired unredeemed sports wagering ticket or voucher balance to the State; and An election by a sports wagering licensee to pay a sports wagering ticket or voucher when the sports wagering ticket system is inoperable or otherwise unable to verify the validity of the sports wagering ticket at the time of payment; and Require generation, at the conclusion of each wagering day, of reports detailing: Sports wagering tickets or vouchers issued; Sports wagering tickets or vouchers redeemed and cancelled by redemption facility; Unredeemed liability for sports wagering tickets or vouchers; and Any exceptions. A sports wagering licensee may utilize a ticket redemption unit or kiosk meeting the requirements of this subtitle. A sports wagering licensee shall locate a ticket redemption unit or kiosk in the sports wagering facility subject to the surveillance coverage requirements of Regulation .11 of this chapter. A ticket redemption unit or kiosk: Shall, in accordance with this regulation, be configured to: Redeem a sports wagering ticket or voucher of less than $3,000; and Direct a bettor attempting to redeem a sports wagering ticket or voucher of $3,000 or more to the cashiers’ cage; and May be configured to function as a bill breaker changing bills of one denomination into bills of a smaller denomination. A sports wagering licensee shall develop and include in the internal controls submitted under Regulation .04 of this chapter, procedures addressing a ticket redemption unit or kiosk. A sports wagering licensee’s internal controls shall address: Distribution of cash to a ticket redemption unit; Removal of sports wagering tickets and cash accepted by a ticket redemption unit; Reconciliations associated with the replenishment process; Generation of the following reports by a ticket redemption unit or ancillary system or application for the reconciliation period, which may be by wagering day, shift, or drop cycle: A sports wagering ticket transaction report which details: Disposition, as paid, partially paid, or unpaid, of sports wagering tickets or vouchers accepted by a ticket redemption unit; Sports wagering ticket validation number or voucher identification number; Date and time of redemption; Amount requested; and Amount dispensed; A reconciliation report which details: Date and time; Unique asset identification number of the ticket redemption unit; Total amount of cash in the currency and coin cassettes; Total number of bills accepted by denomination; Total amount of sports wagering tickets accepted; and Total amount of sports wagering vouchers accepted; and A sports wagering ticket and currency storage box report which details the following data whenever a storage box is removed from the ticket redemption unit: Date and time; Unique asset identification number of the ticket redemption unit; Unique identification number for each storage box in the ticket redemption unit; Total amount of currency dispensed; Total number of bills dispensed by denomination; Total amount of sports wagering tickets accepted; Total count of sports wagering tickets accepted; Total amount of sports wagering vouchers accepted; Total count of sports wagering vouchers accepted; and Details required to be included in the sports wagering ticket transaction report required under §E(4)(a) of this regulation; and A transaction history report which details all critical bettor transaction history including the date, time, amount, and disposition of each complete and incomplete transaction. A sports wagering licensee shall prepare and timely file IRS Form W-2G, Certain Gambling Winnings, in accordance with IRS rules and regulations. A sports wagering licensee shall pay a sports wager payout of $50,000 or more: By cash or check; or On the request of a bettor, any combination of cash, sports wagering ticket or voucher, check, or other method of payment approved by the Commission. A sports wagering licensee shall develop procedures to obtain personal identifying information from any individual who places any single wager in an amount of $10,000 or greater on a sporting event while physically present in a facility. To ensure compliance with §C of this regulation, a sports wagering licensee shall, prior to accepting any sports wager in excess of $3,000 or making a payout in excess of $3,000 on a winning sports wager: Create a bettor identification file and identify the bettor; Obtain and record the bettor’s Social Security number in the bettor identification file; and Record, on a log, the following information: Date of the wager or payout; Name of the bettor; Name and signature of the sports wagering employee authorizing the acceptance of the wager; and Name and signature of the sports wagering employee identifying the bettor and generating the sports wagering ticket or making the payout. A sports wagering licensee shall monitor for and report all suspicious activity related to sports wagering transactions. Access. A sports wagering licensee shall control access to a bill validator and a cash storage box housed in a sports wagering kiosk in accordance with this regulation. Access to a bill validator shall be controlled by: At least one lock; and Requiring the key to the lock to be maintained by the security department. The cash storage box shall be secured to a bill validator by two separate locks, the keys to which are different from each other, and, for the lock on the belly door or main door of the sports wagering kiosk: The key shall be controlled by the sports wagering department in: A manual key box; or An automated key tracking system; Immediately prior to the commencement of the drop, the sports wagering department may issue its belly door or main door key to the accounting department; A key transferred from the sports wagering department to the accounting department shall be returned immediately following the conclusion of the drop; The sports wagering licensee shall establish sign in and sign out procedures in its internal controls documenting the transfers; and If an automated key tracking system is used, a sports wagering licensee shall require dual access from the security department and accounting department to obtain keys. The lock on the release mechanism securing the cash storage box to the bill validator shall be controlled by the security department. Access to the contents of a cash storage box shall be controlled by: At least one lock; and Requiring the key to the lock to be maintained by the accounting department. Control. A sports wagering licensee shall either: Assign to a cash storage box an asset number that: Is permanently imprinted or affixed to the outside of the cash storage box; and Corresponds to the asset number of the kiosk in which the cash storage box is installed; or With the written approval of the Commission, utilize a computerized system for: Assigning a unique identification number to a cash storage box; and Attributing it to the sports wagering kiosk in which the cash storage box is currently installed. Unique Identification Number. A sports wagering licensee shall ensure that an asset number or unique identification number on a cash storage box is clearly visible to: An employee involved in removing or replacing a cash storage box; and If applicable, the surveillance department. Emergency Cash Storage Box. A sports wagering licensee may maintain an emergency cash storage box without an asset number or a unique identification number if: The word “emergency” is permanently imprinted or affixed on the box; and When put into use, the cash storage box is temporarily marked with the asset number of the kiosk in which it is installed. At least 30 days before sports wagering operations are to commence or other time period approved by the Commission, a sports wagering licensee shall submit to the Commission in writing a drop schedule setting forth specific pick-up days and times for collection of cash storage drop boxes, including: Specifications as to what areas of the sports wagering facility will be covered on each pick-up day; and Specific transportation routes to be utilized from the sports wagering facility floor to the count room on each pick-up day. A sports wagering licensee shall notify the Commission: In writing, of a permanent change in the drop schedule including a pick-up day or time, area of the floor to be dropped, or transportation route; and Prior to any temporary deviation from the drop schedule. A sports wagering licensee shall make readily available to the Commission: An access control matrix indicating which employee job descriptions are authorized to participate in the cash storage drop box collection process; and A list of employees, with license numbers, who are authorized to participate in the cash storage drop box collection process. A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the collection of cash storage drop boxes. A sports wagering licensees internal controls shall: Detail the actual procedures to be performed and documentation to be generated by drop team employees collecting cash storage drop boxes: In accordance with the drop schedule; and On an emergency basis; and Require: Cash storage drop boxes to be transported directly to, and secured in: The count room; or A trolley storage area approved by the Commission under COMAR 36.10.15.04B; Except as provided in §F of this regulation, the cash storage drop box collection process to involve the participation of at least three employees, at least one of whom is an employee of the: Security department or other department approved by the Commission; and Accounting department; Prior to the movement of a trolley containing cash storage boxes from the sports wagering facility floor into the count room, an accounting department supervisor to verify that the number of cash storage boxes being transported from the facility floor equals the number of cash storage boxes scheduled for collection that day; and Prior to changing the type of a kiosk, or removing a kiosk from the sports wagering facility floor, that an emergency drop shall be conducted. The Commission may allow the holder of a Class B-2 sports wagering license to perform the cash storage drop box collection process with at least two employees, one of whom is an employee of the: Security department or other department approved by the Commission; and Accounting department. A sports wagering licensee shall transport cash storage drop boxes in an enclosed trolley secured by one lock that has a key which is controlled by the security department. A sports wagering licensee shall store cash storage drop boxes not attached to a bill validator, including emergency cash storage drop boxes that are not actively in use: In the count room in an area approved by the Commission; In a trolley storage area approved by the Commission under COMAR 36.10.15.04B; or In another location at the sports facility approved by the Commission. The cabinet or trolley used for storage under §G of this regulation shall be secured by one lock that has a key which is controlled by the security department in: A manual key box; or An automated key tracking system. Immediately prior to the commencement of the count process, the security department may issue its key to the storage cabinet or trolley required under §G of this regulation to a count room supervisor for the purpose of allowing count room personnel to gain access to the cash storage drop boxes to be counted. A trolley storage area utilized to store cash storage drop boxes prior to the count process shall meet the design standards for a count room under Regulation .35 of this chapter. Except for security officers, the drop and count team members assigned to the collection of cash storage drop boxes shall wear a one-piece, pocketless jumpsuit. This regulation is only applicable to the holder of a sports wagering facility licensee. A licensee shall have a count room designated, designed, and used for counting the contents of cash storage drop boxes at a sports wagering facility approved by the Commission. A count room or space used for counting the contents of cash storage drop boxes area used for counting shall conform to the following standards: Meet the surveillance requirements of Regulations .10 and .13 of this chapter including audio coverage of the count process; If used during normal operating business hours, be separate and not visible from the public areas of the facility; and Any other requirements imposed by the Commission. A sports wagering licensee shall install in its count room a table constructed of clear glass or similar transparent material to be used for the emptying, counting, and recording of the contents of cash storage drop boxes. This regulation is only applicable to the holder of a sports wagering facility licensee. Count Schedule. At least 30 days before sports wagering operations are to commence or other time period as approved by the Commission, a licensee shall submit to the Commission a count schedule setting forth the specific times during which cash storage drop boxes are to be counted and recorded. Notifications. Within 24 hours of the change or deviation, a licensee shall: Notify the Commission in writing of any permanent change in the count schedule; and Notify the Commission of any temporary deviation from the count schedule. Count Frequency. A licensee shall count the contents of each cash storage box at least once daily unless an alternative count schedule is submitted in writing to and approved in writing by the Commission. Procedures. A licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing the counting and recording of cash storage drop boxes. Internal Controls. A sports wagering licensee’s internal controls shall: Detail all hardware, software, and related equipment utilized by the sports wagering licensee to conduct the count; Detail the actual procedures to be performed and documentation to be generated; Require equipment utilized to count and strap currency, winning sports wagering tickets, sports wagering vouchers, and promotional play instruments to: Conduct two separate counts; If the separate counts are not in agreement, document the discrepancy; and If a sports wagering platform, point of sale system, or promotional play system is utilized to obtain the amount of a winning sports wagering ticket, sports wagering voucher or promotional play instrument, require the system to perform a calculation or integrity check to ensure that the amount of a sports wagering ticket or promotional play instrument has not been altered in the system in any manner since the time of issuance; and Require a count room employee to wear a one-piece, pocketless garment. A winning sports wagering ticket, sports wagering voucher or promotional play instrument accepted by a cash storage drop box shall be counted and included in the calculation of proceeds without regard to the validity of the sports wagering ticket or promotional play instrument. A promotional play instrument which is not cancelled upon acceptance or during the count process shall be cancelled prior to the conclusion of the count. Within 72 hours of the count, a licensee shall report in writing to the Commission: Any variance between: The actual count of cash, winning sports wagering tickets, sports wagering vouchers and promotional play instruments in a cash storage box as determined in the count room; and The amount for the cash storage box recorded on the sports wagering licensee’s sports wagering platform or point of sale system; The reason for the variance; and Corrective action taken or adjustments made. A sports wagering licensee shall attempt to timely resolve a dispute with a bettor concerning the licensee’s sports wagering operation or payment of alleged winnings within 7 days after receiving the complaint. A sports wagering licensee shall maintain, in a retrievable format approved by the Commission, a copy of all bettor complaints and all documentation of the licensee’s response. On receipt of a complaint, the Commission shall investigate and notify the bettor and sports wagering licensee of its determination. Except as otherwise provided in this regulation: A supervisory sports wagering employee of a sports wagering licensee is prohibited from soliciting or accepting a tip or gratuity directly from a bettor; and A sports wagering employee is prohibited from soliciting a tip or gratuity from a bettor. A sports wagering licensee may permit an employee who is authorized to accept a gratuity from a bettor to accept a sports wagering ticket if the sports wagering ticket is redeemed: At the cashiers’ cage; and With approval of the sports wagering employee’s department supervisor, if the amount of the sports wagering ticket exceeds $100. A sports wagering licensee may: Issue promotional play if it is not awarded as cashable credit; and Utilize a promotional play system meeting the requirements of this subtitle. A sports wagering licensee may not issue to a bettor promotional play equaling or exceeding $5,000 per wagering day without approval from the chief executive or the chief executive’s designee. A sports wagering licensee shall immediately report to the Commission evidence that a promotional play instrument has been counterfeited, tampered with, or altered in any way which would affect the integrity, fairness, or reliability of the promotional play instrument. A sports wagering licensee shall submit to the Commission in a form and in accordance with a time frame specified by the Commission a quarterly report summarizing: Promotional play awarded for the period including: Total amount in promotional play awarded in noncashable credits; and Other forms of promotional play; and Promotional play redeemed by players for the period including: Total amount in promotional play redeemed in noncashable credits; and Other forms of promotional play redeemed. A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing: Methods utilized to: Issue promotional play; and Redeem promotional play; and A promotion play instrument including a requirement that it document: Name or trade name of the sports wagering licensee; Amount in noncashable credits; Unique series number automatically generated by the promotional play system; Locations where a promotional instrument may be redeemed and any restrictions applicable to redemption; If applicable, a bar code or magnetic strip which enables the promotional play system to identify the numeric information required by this section; and Notice to the player of the terms of expiration. Limitation on Free Promotional Play. Through the first full fiscal year of a sports wagering licensee’s operations, a licensee’s proceeds exclude money given away by the licensee as free promotional play and used by bettors to make a sports wager. After the first full fiscal year of a sports wagering licensee’s operations, the amount of money given away as free promotional play in a fiscal year may not exceed a percentage of the licensee’s proceeds received in the prior fiscal year that equates to 20 percent of total sports wagering proceeds that the sports wagering licensee generated in the prior fiscal year. After the first fiscal year of sports wagering activity, the 20 percent cap specified under §F(2) of his regulation includes all revenues generated by casino sports wagering and gaming activities. An amount of money given away as free promotional play in a fiscal year exceeding the percentage defined in §F(2) of this regulation of the sports wagering licensee’s proceeds of the prior fiscal year shall be allocated as proceeds. No later than 90 days after the end of the fiscal year, a sports wagering licensee shall submit to the Commission a written: Report of its use of free promotional play during the prior fiscal year; and Recommendation for any adjustment to the limitation on free promotional play established under §F(2) of this regulation. For purposes of §§F and G of this regulation, “fiscal year” means the fiscal year of the sports wagering licensee. A sports wagering licensee shall comply with all applicable state and federal requirements for data security. Unless a bettor provides documentable consent to the sports wagering licensee, the licensee may not share information that could be used to personally identify a bettor or their gaming habits with any third party other than the Commission, law enforcement with a warrant or subpoena, or a credit-reporting agency when determining whether an individual is credit-worthy. Funds in a bettors user account shall be held either: In trust for the bettor in a segregated account; or In a special-purpose segregated account that is maintained and controlled by a properly constituted corporate entity that is not the sports wagering licensee and whose governing Commission includes one or more corporate directors who are independent of the sports wagering licensee and of any corporation related to or controlled by the sports wagering licensee. A sports wagering licensee shall maintain a reserve in the form of cash, cash equivalents, an irrevocable letter of credit, surety bond set forth in COMAR 36.10.14, or a combination of these in an amount approved by the Commission and sufficient to pay all winnings and awards offered to a winning bettor as described in COMAR 36.10.14.06. A sports wagering licensee shall implement and prominently publish the following on its platform: Policies that prevent unauthorized withdrawals from a bettors account by a sports wagering licensee or others; Notices that make clear that the funds in the segregated account do not belong to the sports wagering licensee and are not available to creditors other than the bettor whose funds are being held; Policies that prevent commingling of funds in the segregated account with other funds, including funds of the sports wagering licensee; Procedures for responding to and reporting on complaints by bettors that their accounts have been misallocated, compromised, or otherwise mishandled; Procedures that allow a bettor to request withdrawal of funds from their user account, whether such account is open or closed, including: The sports wagering licensee shall honor any bettors request to withdraw funds by the later of 5 days after receipt of the request or 5 days after submission of any tax reporting paperwork required by law; The sports wagering licensee may decline to honor the request for withdrawal of funds for a reasonable investigatory period if it provides notice of the nature of the investigation to the bettor it believes has engaged in either: Fraudulent conduct; or Other conduct that would put the sports wagering licensee in violation of COMAR 36.10.18; and A request for withdrawal shall be considered honored if it is processed by the sports wagering licensee but delayed by a payment processor or the custodian of a segregated account; and Procedures that allow a bettor to permanently close a user account at any time, for any reason, and by any reasonable means, including on any platform the bettor uses to make deposits into a segregated account. If winnings are awarded to a bettor with a closed account, the winnings shall be distributed by the sports wagering licensee within 7 days. If an account is closed on the basis of the sports wagering licensee’s good faith belief, after investigation, that the bettor has engaged in fraud or has attempted to engage in behavior that would put the sports wagering licensee in violation of this chapter, these winnings may be withheld and redistributed in a manner that reflects the outcome that would have resulted had that bettor not participated. If a bettors segregated account remains unclaimed for 3 years after the balances are payable or deliverable to the bettor, the sports wagering licensee shall presume the account to be abandoned and shall report and remit all segregated accounts presumed abandoned to the State Comptroller. A sports wagering licensee shall prominently publish all contractual terms and conditions and rules of general applicability that affect a bettors segregated account. Presentation of such terms, conditions, and rules at the time a bettor initially acquires a segregated account may not be deemed sufficient to satisfy the provisions of this subsection. Automated Teller Machines. Withdrawal Limits. Exclusive of transaction fees or surcharges, the maximum amount that a bettor may withdraw from a bank account by using an automated teller machine at the location is no more than $2,500 per sports wagering day. Temporary Cash Assistance Prohibited. An automated teller machine or online sports wagering platform may not accept an electronic benefit card, debit card, or similar instrument issued by the Department of Human Services for the purpose of accessing temporary cash assistance. Promotional Offers. A sports wagering licensee shall, at least 2 days prior to implementing a promotion, submit terms and conditions of each promotion to the Commission and shall include, at a minimum, all of the following: A description of what is being offered as part of the promotion; The dates and times that the promotion is being conducted; The persons who are eligible to participate in the promotion; The required action to receive whatever is being offered as part of the promotion; The procedure to claim or redeem the promotional offer, if applicable; Registration procedures; Limitations on participation; Wagering requirements and limitations by type of game; The order in which funds are used for wagering; Eligible wagers; Any restrictions on the withdrawal of funds; Rules regarding cancellation; The statement If you or someone you know has a gambling problem, help is available. Call 1-800-GAMBLER.; and Any other information the Commission may require. Promotional Offers — Responsibility of Licensee. A sports wagering licensee is responsible for the terms, conditions, and conduct of promotions it offers, and those that are offered on behalf of the licensee, directly or indirectly, by a sports wagering contractor or marketing affiliate vendor, including: Ensuring that the terms and conditions of all promotions are communicated to bettors by a link posted on the licensee’s home website, and on the home website or any website operated on behalf the licensee by a contractor or vendor; Stating the terms and conditions clearly and in plain language, and displaying them conspicuously so they are readily accessible and available for bettors’ review for the duration of the promotion; Providing a clear and conspicuous method for a bettor to cancel the bettor’s participation in a promotion that utilizes restricted sports wagering credits; When a bettor requests cancellation, informing the bettor of the amount of unrestricted funds that will be returned upon cancellation, and the value of restricted funds that will be removed from the bettor’s sports wagering account; and If a bettor elects to proceed with cancellation, returning unrestricted funds remaining in the bettor’s sports wagering account in accordance with the terms and conditions. A sports wagering licensee, directly or through a contractor or vendor on behalf of the licensee, may not: Offer or conduct a promotion which violates any federal, State or local law or regulation; When a bettor has met the terms of a promotion, cap or limit a bettor’s winnings earned while participating in the promotion; Include in an advertisement language that suggests the outcome is guaranteed or without risk; or Advertise, market, promote, offer, or conduct sports wagering in a manner that may adversely impact the public or the integrity of sports wagering. If Agency staff determine that a sports wagering licensee’s promotion may or does adversely impact the public or the integrity of sports wagering, staff may direct the licensee to immediately cease some or all activities related to the promotion, and may take other enforcement action against a licensee, contractor, or vendor. Sports Wagering Contracts. Defined Terms. In addition to the terms defined in State Government Article, §9-1E-01, Annotated Code of Maryland, and terms defined in this subtitle, in this section the following terms have the meanings indicated: “Agent of a regulated gaming entity” includes a marketing firm or other similar entity contracted to perform gaming-related services for a regulated gaming entity. “Institution of higher education” has the meaning stated in Education Article, §10–101, Annotated Code of Maryland. “Regulated gaming entity” means: A mobile sports wagering licensee; An online sports wagering operator; or A sports wagering licensee. “Sports marketing entity” means a person that contracts with a sports wagering licensee or regulated entity to provide advertising or marketing services for the sports wagering operations of a regulated entity. Prohibitions. An institution of higher education may not enter into a contract with a regulated gaming entity or an agent of a regulated gaming entity if, under the terms of the contract, the institution of higher education receives a commission, a bonus, or any other incentive payment based on the success of securing student participation in sports wagering or online sports wagering. An institution of higher education may not enter into a contract with a sports marketing entity that enters into a contract with a regulated gaming entity or an agent of a regulated gaming entity if, under the terms of the contract, either the sports marketing entity or the institution of higher education receives a commission, a bonus, or any other incentive payment based on the success of securing student participation in sports wagering or online sports wagering. A regulated gaming entity may not enter into a contract described in §D (2) of this regulation. The prohibition described in §D (2) of this regulation do not preclude contract formation between an institution of higher education and: A regulated gaming entity; An agent of a regulated gaming entity; or A sports marketing entity. Notwithstanding any other provision of law, a contract formed in accordance with §D(4) of this regulation is subject to public inspection in accordance with the Maryland Public Information Act, General Provisions Article, §4-101, et seq., Annotated Code of Maryland. Mobile sports wagering licensees and online sports wagering operator licensees shall submit written notification to the Commission of any contract it has, or plans to enter into, with a public institution of higher education. Signage. A sports wagering licensee shall clearly and conspicuously display the licensee’s branding. A Sports Wagering Facility Operator may not display its branding in a manner that provides greater prominence than the Sports Wagering Facility Licensee’s branding. A Sports Wagering Facility Licensee may not advertise in a manner that misleads the public. All signage shall be approved by the Agency. A sports wagering licensee shall ensure that its house rules are: Conspicuously displayed in or immediately adjacent to its wagering location; Posted on its website; Included in the terms and conditions of use on its sports wagering platform; and In hard copy, readily available to bettors. Predatory marketing as defined in COMAR 36.10.01.02B(57) is prohibited. Sports wagering by an individual younger than 21 years old is prohibited. Definitions. In this regulation, the following terms have the meaning indicated: “Cease operations” or “cessation of operations” means the date and time after which a sports wagering licensee temporarily or permanently stops accepting wagers in Maryland. “Wind down” means the process before and after a cessation of operations by which a sports wagering licensee ends its sports wagering operations in Maryland. A sports wagering licensee that intends to cease operations shall submit to the Commission notice of its intent to cease operations at least 7 days before its proposed cessation of operations. No more than 5 business days after submitting notice of its intent to cease operations, a sports wagering licensee shall submit to the Commission a wind down plan that specifies how the licensee will: Announce to its bettors, vendors, and the public when it will cease operations and wind down, including timelines; In clear and conspicuous terms, explain to bettors their rights and remedies associated with the licensee’s cessation of operations and wind down; Distribute winnings to a bettor holding an unredeemed winning sports wagering ticket; Distribute winnings to a bettor holding a sports wagering ticket for sporting events with outcomes that have not yet been determined; Pay all amounts in a bettor’s sports wagering account to the bettor; Close a bettor’s account; Close its platform to further public access; Distribute funds representing unredeemed winning tickets to the Problem Gambling Fund 182 days after the wager outcome has been determined; Transfer funds from bettor accounts to the State Comptroller if funds cannot be paid to the account owner; Satisfy current and future financial and reporting obligations related to its sports wagering operations; and Ensure the Commission has all information necessary to access and use a letter of credit, bond, or similar assurance mechanism to satisfy financial obligations, if needed. A sports wagering licensee’s submissions required under §B of this regulation shall include verbatim, the communications it proposes to use to notify bettors of rights and remedies associated with its cessation of operations and wind down. The Commission may: Approve a sports wagering licensee’s wind down plan; Approve submissions required in the wind down plan; Require changes to a wind down plan; or Reject the wind down plan. A sports wagering licensee may only notify a bettor after the Commission approves the wind down plan. At the conclusion of the wind down, a sports wagering licensee shall submit a report to the Commission as notification that it has completed all actions necessary and is terminating all operations in the State. Nothing in this regulation is intended to change a requirement or obligation imposed under another statute or regulation. Education Article §§ 10-101 and 26-801; State Government Article, §§ 9-1A- 02, 9-1A- 04, 9-1A- 33, 9-1E-01—9-1E-15; Annotated Code of Maryland Effective date: Regulations .01— .44 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) Regulation .06B amended effective July 7, 2025 (52:13 Md. R. 657) Regulation .06P amended effective November 14, 2022 (49:23 Md. R. 997) Regulation .20F amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .29B amended effective May 25, 2026 (53:10 Md. R. 459) Regulation .29D, E, F adopted effective May 25, 2026 (53:10 Md. R. 459) Regulation .34 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .34L adopted effective April 27, 2026 (53:8 Md. R, 356) Regulation .37 amended effective July 7, 2025 (52:13 Md. R. 657) Regulation .40 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .40E 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) Regulation .40B amended effective July 7, 2025 (52:13 Md. R. 657) Regulation .41 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529) Regulation .41E adopted effective May 25, 2026 (53:10 Md. R. 459) Regulation .45 adopted effective July 7, 2025 (52:13 Md. R. 657)