Chapter 02. All Applicants and Awardees

Shall comply with the contents of its SWARC application; and

Shall bear the burden of proving, by clear and convincing evidence, its continued qualifications for a license award.

The Commission may not issue the applicant a license; and

The applicant may not offer or conduct sports wagering, or engage in an activity for which a license is required.

For applicants not awarded a license, for a period of 5 years from the time SWARC decided not to award a license; and

For applicants awarded a license, for a period of 5 years from the latest of:

To SWARC, the SWARC application; and

To the Commission by electronic funds transfer, the nonrefundable SWARC application fee for the concurrently submitted SWARC application.

Commission application through the eLicensing Portal; and

Administrative costs for background investigations.

SWARC and the Commission shall separately review the applications each receives.

Within 5 calendar days of receipt of a timely SWARC application, SWARC staff shall submit to the Commission, by email, the name and other identifying information of the applicant.

Within 5 calendar days of receipt of the information set forth in §C(2) of this regulation, the Commission staff shall notify SWARC by email if the applicant may be ineligible under Regulation .07 of this chapter.

For each application submitted to SWARC:

SWARC shall reject and may not consider a SWARC application that it determines to be ineligible for an award under Regulation .07 of this chapter.

SWARC staff shall notify the Commission by email of those applicants whom SWARC determines to be ineligible for award of a license and the basis for the determination.

After the Commission has investigated the applicant and determined whether it is qualified to hold a license, the Commission shall notify SWARC by email of its determination.

SWARC may not award a license to an applicant unless the Commission has determined that the applicant is qualified.

A prospective applicant may request access to the Commission’s eLicensing Portal before its SWARC application is submitted or due.

Access to the Commission’s eLicensing Portal permits the prospective applicant to begin completing information and uploading documentation required for the applicant’s submission of a Commission application, so that the Commission may conduct an investigation to determine the applicant’s qualifications for a license.

A prospective applicant’s use of the eLicensing Portal does not constitute the submission of its Commission application.

If a Commission application is not submitted within 180 calendar days after it is started in the eLicensing Portal, information that a prospective applicant has provided, and any documents it uploaded to, the Commission’s eLicensing Portal:

The Commission may not begin to conduct an applicant’s background investigation, or consider its Commission application in any way, until the applicant submits:

SWARC application was determined to be ineligible for an award under Regulation .07 of this chapter; or

Applicant has withdrawn its SWARC application.

After SWARC notifies the Commission that the:

If, before the Commission issues the license, the applicant has surrendered its license award; or

If, before the Commission determines the applicant’s qualifications, the applicant withdraws its Commission application.

Complete the SWARC application as required in Regulation .08 of this chapter;

Timely submit its completed SWARC application, which means ensuring that SWARC receives the application as specified in its application instructions:

Timely submit the nonrefundable application fee as required under Regulation .04A(2) of this chapter as specified in SWARC’s application instructions.

That is not timely submitted; or

For which the SWARC application fee was not timely submitted to the Commission as required under Regulation .04A(2) of this chapter.

Who is eligible to apply for a Class A-1 or A-2 sports wagering facility license under State Government Article, §9-1E-06(a)(1), Annotated Code of Maryland;

Who holds a Class A-1 or A-2 sports wagering facility license; or

Whose sports wagering facility will be located:

Be submitted in the form and format set forth in §D of this regulation;

Contain all required information set forth in §E of this regulation;

If applicable, contain the information pertaining to the applicant’s efforts to solicit and interview minority and women investors, as set forth in §F of this regulation;

Be accompanied by all required documents as set forth in §§G and H of this regulation;

Be executed by the applicant, or if the applicant is not an individual, the Chief Executive Officer or other authorized representative of the applicant; and

Be signed and sworn to before a notary public.

Shall be deemed incomplete; and

May only be changed as provided in Regulation .09 or .10 of this chapter.

One paper original of the SWARC application;

Ten paper copies of the original SWARC application;

Two copies in an electronic format or other format as required by SWARC on a medium selected by SWARC; and

Two paper copies, and one copy in electronic format, or other format required by SWARC, of the SWARC application that identifies, on each page, any information the applicant views as exempt from disclosure under General Provisions Article, §4-101 et seq., Annotated Code of Maryland, and a letter enumerating the specific grounds for any such exemptions.

Applicant’s legal name, business address, and taxpayer identification number;

Applicant’s good standing with the State Department of Assessments and Taxation;

Date the applicant established the business that would conduct the applicant’s sports wagering business;

Form of business organization that would conduct the applicant’s sports wagering business;

Name under which the applicant intends to conduct sports wagering;

Individual who is the primary contact for the applicant, including the contact individual’s:

Names and titles of principals;

Number of employees and work locations of such employees who are currently employed by the applicant within Maryland and whether these employees are full-time or part-time employees;

If applying for a competitive license that is a Class B-1 or Class B-2 facility license, the number of full-time equivalent employees employed by the applicant in Maryland as of the end of the most recent calendar quarter;

Number, and proposed work locations, of individuals identified within Maryland expected to be employed by the applicant in its sports wagering business and whether these employees are to be full-time or part-time employees;

For the business that would be licensed to conduct sports wagering, the business’s revenue, expenses, and profit for the 2 most recent tax reporting years;

Sources of funding for:

Capitalization table of the applicant identifying;

Whether any person identified in the SWARC application has:

Business plans for 5 years for the proposed sports wagering operations, including revenue estimates, for sports wagering and other business revenue, and all ongoing expenses, including:

Any other information SWARC may, in its discretion, request whether in the SWARC application or by written request to the applicant.

As required by State Government Article, §9-1E-15(i), Annotated Code of Maryland, if an applicant sought investors, the applicant shall have made serious, good-faith efforts to solicit and interview a reasonable number of minority and women investors, and submit with its SWARC application a statement that lists the names and addresses of all minority and women investors interviewed and whether or not any of those investors have acquired an equity share in the applicant.

Each applicant shall submit an acknowledgement that, if SWARC awards it a license, the awardee shall sign a memorandum of understanding with SWARC that requires the awardee to make serious, good–faith efforts to interview minority and women investors in any future attempts to raise venture capital or attract new investors to the entity awarded the license.

A statement that the entire SWARC application has been sworn to before a notary public, as to the application’s truth and validity, by the applicant or, if the applicant is not an individual, by the Chief Executive Officer of the applicant or other authorized representative of the applicant;

Certification and acknowledgment by the applicant that the:

An affidavit of the applicant pursuant to which the applicant, for itself and its successor and assigns, expressly waives, releases, discharges, and forever holds harmless and agrees to indemnify SWARC, the State of Maryland, and their respective members, employees, agents, consultants, and representatives from all liability for any and all claims or legal action arising from or relating to any actions that SWARC or the State of Maryland may take related to the collection of information from the applicant and the use of that information in connection with evaluating the applicant for the award or issuance (or nonaward or nonissuance) of a sports wagering license.

A lease, or other documentation, showing that the applicant lawfully possesses, or may possess, the property, and the term of the lawful possession; and

A notarized acknowledgement by the person who owns or controls the property that:

If SWARC notifies an applicant that additional documents are required pursuant to §A of this regulation and the applicant is unable to timely submit the required documents:

After receiving notification from the applicant pursuant to this section, SWARC may:

SWARC shall make the determination required in §D(2) of this regulation within 7 calendar days of SWARC’s receipt of notification from the applicant.

As provided in Regulations .09 or .11 of this chapter; or

To address a change in the circumstances surrounding the SWARC application that was outside the control of the applicant and that affects the ability of the applicant to comply with the sports wagering law or this subtitle .

Change in the circumstances surrounding the application that would necessitate the change;

Nature of the proposed change;

Reason why the proposed change is necessary to bring the SWARC application into compliance with applicable law or regulations; and

Law or regulation applicable to the proposed change.

The circumstances requiring the change are outside the control of the applicant;

Before the change in the circumstances the applicant describes under §C of this regulation, the application complied with applicable law or regulation; and

The change is necessary to bring the application into compliance with applicable law or regulation.

The omission or mistake was promptly reported to SWARC after its discovery;

The nature of the proposed change;

Why the proposed change is necessary to bring the application into compliance with applicable law or regulation; and

The law or regulation applicable to the proposed change.

Grant the request;

Deny the request and state the reason for the denial; or

Request additional information.

Receive a refund of its SWARC application fee; or

Have its SWARC application or any documents submitted to SWARC in support of the application returned.

Whether the proposed facility is located within an opportunity zone or an enterprise zone;

The extent to which the proposed facility encourages Maryland wagering participants to remain in the State when placing sports wagers; and

The extent to which the proposed facility will attract out-of-State visitors;

The Commission shall evaluate and approve the awardee’s sports wagering operations before issuing a license to the applicant;

The awardee may begin sports wagering operations only after it has been issued a license to do so by the Commission; and

The awardee may not transfer the award to another person.

SWARC’s decision to deny an application is a final action of SWARC;

The decision may be appealed to the Maryland State Board of Contract Appeals in accordance with COMAR 21.10.07.02;

If appealed, the written notice of appeal to the Maryland State Board of Contract Appeals shall be filed within 10 days from the date the unsuccessful applicant receives SWARC’s written decision; and

The written notice of appeal to the Appeals Board may be filed:

Receive a refund of its SWARC application fee; or

Have its SWARC application or any documents submitted to SWARC in support of the application returned.

SWARC may award a surrendered, lapsed, or revoked sports wagering license to another applicant utilizing the criteria established in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this subtitle; and

The Commission may issue the license to the applicant in accordance with State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland, COMAR 36.10, and this subtitle.

SWARC may award a surrendered, lapsed, or revoked license to another applicant utilizing the criteria established in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; and

The Commission may issue the license to the applicant in accordance with State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland, COMAR 36.10, and this subtitle.

Shall conform to all documents it submitted in support of its SWARC application and Commission application;

Shall conform to the terms and conditions of its memorandum of understanding submitted to SWARC pursuant to State Government Article, §9-1E-15(i)(2), Annotated Code of Maryland; and

May not discriminate against a person who in good faith informs SWARC of an act or omission that the person believes constitutes a violation of:

Inform SWARC and the Commission of an act or omission that the applicant, awardee, or licensee knows or should have known, constitutes a violation of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; and

Provide SWARC and the Commission with all information relating to its license eligibility in any form that SWARC or the Commission may request.

Reverse its determination; and

Deny the license award.

An awardee of a Class B-2 sports wagering facility license may submit to SWARC and the Commission a request to amend the application for the sole purpose of altering the proposed location of the sports wagering facility, if:

The awardee shall submit its written request to the Commission and SWARC so that the request is received by both commissions on or before December 31, 2023.

The awardee shall submit its request in a form required by both commissions, and shall provide:

SWARC may:

Nothing in this section may be construed to change or supersede any other provision or requirement in State Government Article, §9-1E-01, et seq., Annotated Code of Maryland, or in this title.