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<chapter num="02" heading="All Applicants and Awardees" title_num="36" subtitle_num="11">
  <regulation prefix="Regulation" num=".01" heading="Scope.">
    <paragraph num="A.">
      <text>All applicants shall comply with the requirements set forth in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this subtitle, to establish, by clear and convincing evidence, their eligibility for a license award and that the award is in the public interest.</text>
    </paragraph>
    <paragraph num="B.">
      <text>For the term of any initial and renewed license, an awardee:</text>
      <paragraph num="(1)">
        <text>Shall comply with the contents of its SWARC application; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Shall bear the burden of proving, by clear and convincing evidence, its continued qualifications for a license award.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="General.">
    <paragraph num="A.">
      <text>This chapter includes requirements for all SWARC applications for the award of a competitive license.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Unless SWARC has awarded an applicant a license:</text>
      <paragraph num="(1)">
        <text>The Commission may not issue the applicant a license; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The applicant may not offer or conduct sports wagering, or engage in an activity for which a license is required.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Separate Applications and Fees.">
    <paragraph num="A.">
      <text>Each SWARC application submitted to SWARC shall be accompanied by payment of the applicable nonrefundable SWARC application fee, which shall be paid to the Commission as provided in Regulation .04A(2) of this chapter.</text>
    </paragraph>
    <paragraph num="B.">
      <text>The nonrefundable SWARC application fee is separate and distinct from any administrative costs for background investigations that are required to be submitted to the Commission under COMAR 36.10.02.03 to determine an applicant’s qualification for a license.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Unless an applicant submits to the Commission the applicant’s written consent for the release of information from its Commission application to SWARC, SWARC may not review, receive, or consider information that an applicant submits to the Commission in its Commission application.</text>
    </paragraph>
    <paragraph num="D.">
      <text>Upon request to SWARC, the Commission may receive, review, or consider information that an applicant submits to SWARC in its application that the Commission deems necessary for determining whether the applicant can prove, by clear and convincing evidence, its qualifications for a license.</text>
    </paragraph>
    <paragraph num="E.">
      <text>During its term, SWARC shall retain, separate from the Commission’s records, any document the applicant submitted with its SWARC application.</text>
    </paragraph>
    <paragraph num="F.">
      <text>At the conclusion of SWARC’s term, the Commission shall retain any document the applicant submitted with its SWARC application:</text>
      <paragraph num="(1)">
        <text>For applicants not awarded a license, for a period of 5 years from the time SWARC decided not to award a license; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>For applicants awarded a license, for a period of 5 years from the latest of:</text>
        <paragraph num="(a)">
          <text>The expiration of the license;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The revocation of the license; or</text>
        </paragraph>
        <paragraph num="(c)">
          <text>The surrender of the license.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Process for the Submission of Applications and Fees.">
    <paragraph num="A.">
      <text>SWARC Applications and Fees. By the date and time and in the manner specified by SWARC in the SWARC application, an applicant shall submit:</text>
      <paragraph num="(1)">
        <text>To SWARC, the SWARC application; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>To the Commission by electronic funds transfer, the nonrefundable SWARC application fee for the concurrently submitted SWARC application.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Commission Applications and Fees. Separate from its SWARC application, within the period provided in §C(4)(a) of this regulation, an applicant shall comply with the requirements of COMAR 36.10.02 for the submission of its:</text>
      <paragraph num="(1)">
        <text>Commission application through the eLicensing Portal; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Administrative costs for background investigations.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>SWARC and Commission Review of Applications.</text>
      <paragraph num="(1)">
        <text>SWARC and the Commission shall separately review the applications each receives.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>For each application submitted to SWARC:</text>
        <paragraph num="(a)">
          <text>The applicant shall submit the required Commission application and the administrative costs for background investigation no later than 14 calendar days after the date the applicant submitted its SWARC application; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Within 5 days of the date specified in §C(4)(a) of this regulation, the Commission staff shall notify SWARC by email of any applicant that fails to timely submit its Commission application or the administrative costs for background investigation.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(5)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(6)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(7)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(8)">
        <text>SWARC may not award a license to an applicant unless the Commission has determined that the applicant is qualified.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Submission of Commission Application.">
    <paragraph num="A.">
      <text>An applicant shall submit a Commission application only to the Commission through the eLicensing Portal.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Access to Portal.</text>
      <paragraph num="(1)">
        <text>A prospective applicant may request access to the Commission’s eLicensing Portal before its SWARC application is submitted or due.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>A prospective applicant’s use of the eLicensing Portal does not constitute the submission of its Commission application.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>Expires and is automatically archived from the Portal; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Shall be again entered or uploaded through the Portal to be considered.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(5)">
        <text>The Commission may not begin to conduct an applicant’s background investigation, or consider its Commission application in any way, until the applicant submits:</text>
        <paragraph num="(a)">
          <text>A completed Commission application; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The related administrative costs for background investigations.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>The Commission may not conduct, or continue to conduct, an applicant’s background investigation, or determine the applicant’s qualifications, after SWARC notifies the Commission that the:</text>
      <paragraph num="(1)">
        <text>SWARC application was determined to be ineligible for an award under Regulation .07 of this chapter; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Applicant has withdrawn its SWARC application.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>The Commission shall refund to an applicant any unused portion of its background investigation costs:</text>
      <paragraph num="(1)">
        <text>After SWARC notifies the Commission that the:</text>
        <paragraph num="(a)">
          <text>SWARC application was determined to be ineligible for an award under Regulation .07 of this chapter; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Applicant has withdrawn its SWARC application;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>If, before the Commission issues the license, the applicant has surrendered its license award; or</text>
      </paragraph>
      <paragraph num="(3)">
        <text>If, before the Commission determines the applicant’s qualifications, the applicant withdraws its Commission application.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Submission of SWARC Application.">
    <paragraph num="A.">
      <text>An applicant shall submit a SWARC application only to SWARC.</text>
    </paragraph>
    <paragraph num="B.">
      <text>To be considered for the award of a license, an applicant shall:</text>
      <paragraph num="(1)">
        <text>Complete the SWARC application as required in Regulation .08 of this chapter;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Timely submit its completed SWARC application, which means ensuring that SWARC receives the application as specified in its application instructions:</text>
        <paragraph num="(a)">
          <text>Through delivery by any means SWARC specifies;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>At the location SWARC specifies; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Before 5 p.m. on the date that SWARC specifies; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>Timely submit the nonrefundable application fee as required under Regulation .04A(2) of this chapter as specified in SWARC’s application instructions.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>SWARC may not accept or consider a SWARC application:</text>
      <paragraph num="(1)">
        <text>That is not timely submitted; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>For which the SWARC application fee was not timely submitted to the Commission as required under Regulation .04A(2) of this chapter.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".07" heading="SWARC Application — Determination of Ineligibility.">
    <text>Without conducting a hearing, SWARC shall determine that a SWARC application is ineligible for an award of a license if:</text>
    <paragraph num="A.">
      <text>The completed SWARC application was not timely submitted to SWARC;</text>
    </paragraph>
    <paragraph num="B.">
      <text>The nonrefundable SWARC application fee was not timely submitted to the Commission;</text>
    </paragraph>
    <paragraph num="C.">
      <text>The applicant’s required Commission application or administrative costs for background investigation was not timely submitted to the Commission; or</text>
    </paragraph>
    <paragraph num="D.">
      <text>The SWARC application seeks the award of a facility license to an applicant:</text>
      <paragraph num="(1)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Who holds a Class A-1 or A-2 sports wagering facility license; or</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Whose sports wagering facility will be located:</text>
        <paragraph num="(a)">
          <text>Within a 15-mile radius of a Class A-1 or A-2 sports wagering facility located in Cecil County or Worcester County;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>For an application submitted before June 1, 2025, within a 15-mile radius of a Class B-1 or B-2 sports wagering facility located in Charles County;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>For an application submitted before June 1, 2025, within a 10-mile radius of a Class B-1 or B-2 sports wagering facility located in Carroll County;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>For an application submitted before June 1, 2025, within a 5-mile radius of a Class B-1 or B-2 sports wagering facility located in Frederick County; or</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Within a 1.5-mile radius of:</text>
          <paragraph num="(i)">
            <text>A Class A-1 or A-2 sports wagering facility located in a county not described under §D(3)(a) of this regulation; or</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Any other existing or operating Class B-1 or B-2 sports wagering facility.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".08" heading="Requirements for a Completed SWARC Application.">
    <paragraph num="A.">
      <text>An applicant shall ensure that its SWARC application is complete and timely when submitted.</text>
    </paragraph>
    <paragraph num="B.">
      <text>A completed SWARC application shall:</text>
      <paragraph num="(1)">
        <text>Be submitted in the form and format set forth in §D of this regulation;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Contain all required information set forth in §E of this regulation;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Be accompanied by all required documents as set forth in §§G and H of this regulation;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>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</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Be signed and sworn to before a notary public.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Incomplete Applications. A SWARC application that, as determined by SWARC in its sole discretion, fails to comply with all or substantially all of the requirements of §B of this regulation:</text>
      <paragraph num="(1)">
        <text>Shall be deemed incomplete; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>May only be changed as provided in Regulation .09 or .10 of this chapter.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Form and Format. As specified in the SWARC application, an application submitted pursuant to §A of this regulation shall include:</text>
      <paragraph num="(1)">
        <text>One paper original of the SWARC application;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Ten paper copies of the original SWARC application;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Two copies in an electronic format or other format as required by SWARC on a medium selected by SWARC; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>Required Information. A completed SWARC application shall include documents that verify information about the applicant, including the:</text>
      <paragraph num="(1)">
        <text>Applicant’s legal name, business address, and taxpayer identification number;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Applicant’s good standing with the State Department of Assessments and Taxation;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Date the applicant established the business that would conduct the applicant’s sports wagering business;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Form of business organization that would conduct the applicant’s sports wagering business;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Name under which the applicant intends to conduct sports wagering;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Individual who is the primary contact for the applicant, including the contact individual’s:</text>
        <paragraph num="(a)">
          <text>Name;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Email address;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Mailing address;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Telephone number; and</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Title or basis of authority to represent applicant;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(7)">
        <text>Names and titles of principals;</text>
      </paragraph>
      <paragraph num="(8)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(9)">
        <text>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;</text>
        <paragraph num="(a)">
          <text>Calculated by dividing the total hours worked during the calendar quarter (13 weeks) by 520 (13 weeks x 40 hours per week); and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Rounded to the nearest whole number;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(10)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(11)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(12)">
        <text>Sources of funding for:</text>
        <paragraph num="(a)">
          <text>The SWARC application fee;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The Commission’s administrative cost of background investigations;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>All construction or renovation costs;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>All startup costs; and</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Continuing operations during the initial 5 years after commencement of sports wagering operations;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(13)">
        <text>Capitalization table of the applicant identifying;</text>
        <paragraph num="(a)">
          <text>Direct and indirect owners of the applicant;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Amount invested;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Type of equity owned;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Percentage ownership of the applicant;</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Terms, conditions, and rights of the equity interests owned, including voting rights;</text>
        </paragraph>
        <paragraph num="(f)">
          <text>Whether sports wagering would be conducted by the applicant; and</text>
        </paragraph>
        <paragraph num="(g)">
          <text>If the applicant is applying for a:</text>
          <paragraph num="(i)">
            <text>Facility license, its facility operator, if identified; or</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>A mobile license, its online sports wagering operator, if identified;</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="(14)">
        <text>Whether any person identified in the SWARC application has:</text>
        <paragraph num="(a)">
          <text>Experience in the operation of sports wagering;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Ever had a sports wagering or gaming-related license, or application for any such license, rejected or denied in any jurisdiction;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>In any jurisdiction, ever held a license related to sports wagering or gaming that was revoked, suspended, or surrendered; or</text>
        </paragraph>
        <paragraph num="(d)">
          <text>In any jurisdiction in which it held a sports wagering or gaming-related license, within the past 3 years, ever been subject to any disciplinary matter, judgment, settlement, order, or decree pertaining to a violation of any state or federal statute, regulation, or rule that resulted in a fine, penalty, or payment of more than $5,000;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(15)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>Pre-launch expenses, to include marketing campaigns;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Projected capital investments and expenses for site improvements and equipment acquisitions at, or planned for, the location where the applicant would conduct sports wagering;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Projected operating expenses;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Other revenue-generating activities at, or planned for, the location where the applicant would conduct sports wagering;</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Projected balance sheet at the time of licensure;</text>
        </paragraph>
        <paragraph num="(f)">
          <text>If applying for a facility license, facility floorplans designating age-controlled wagering areas, public areas, and nonpublic areas; and</text>
        </paragraph>
        <paragraph num="(g)">
          <text>The applicant’s estimated timeline from award of a license to the acceptance of wagers; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(16)">
        <text>Any other information SWARC may, in its discretion, request whether in the SWARC application or by written request to the applicant.</text>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>Requirements for Applicants Seeking Investors.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="G.">
      <text>Required Documents. When submitted, a completed SWARC application shall include:</text>
      <paragraph num="(1)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Certification and acknowledgment by the applicant that the:</text>
        <paragraph num="(a)">
          <text>Business offering or conducting sports wagering shall comply with all applicable zoning requirements;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Business offering or conducting sports wagering shall comply with all other applicable federal, State or local requirements; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Applicant recognizes that sports wagering is a competitive business and has an inherent risk of instability and unprofitability; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="H.">
      <text>Required Documentation for Sports Wagering Facility License Applicants. In addition to the documentation in §§F and G of this regulation, if the applicant does not own the business location, a completed SWARC application for the award of a facility license shall be accompanied by:</text>
      <paragraph num="(1)">
        <text>A lease, or other documentation, showing that the applicant lawfully possesses, or may possess, the property, and the term of the lawful possession; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>A notarized acknowledgement by the person who owns or controls the property that:</text>
        <paragraph num="(a)">
          <text>The premises may be used for a sports wagering facility without violating the lease or other term by which the applicant possesses the property; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>If the applicant is issued a license, the property may be used as a sports wagering facility for at least the applicant’s initial 5-year license term.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".09" heading="Required Submission of Additional Documents.">
    <paragraph num="A.">
      <text>SWARC may request an applicant to submit additional documents to clarify the contents of its SWARC application so that SWARC may decide whether to award a license.</text>
    </paragraph>
    <paragraph num="B.">
      <text>SWARC shall notify the applicant in writing that additional documents are required.</text>
    </paragraph>
    <paragraph num="C.">
      <text>An applicant notified in accordance with §A of this regulation shall submit to SWARC the required documents no later than 14 calendar days after SWARC issues the notice.</text>
    </paragraph>
    <paragraph num="D.">
      <text>Notice to Applicant.</text>
      <paragraph num="(1)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>Before the expiration of 14 calendar days from the date of SWARC’s notice, the applicant shall provide SWARC good cause as to why it is unable to timely provide the required documents; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>After the expiration of 14 calendar days from the date of SWARC’s notice, the applicant shall provide SWARC good cause for its failure to:</text>
          <paragraph num="(i)">
            <text>Provide the required documents; and</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Respond to SWARC within 14 calendar days of SWARC’s notice.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>After receiving notification from the applicant pursuant to this section, SWARC may:</text>
        <paragraph num="(a)">
          <text>Determine that good cause was shown and extend the deadline by which the applicant may submit the required documents; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Determine that good cause was not shown and decline to extend the deadline.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>SWARC may not award a license to an applicant that has failed to provide all required documents to SWARC in a timely manner.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".10" heading="Limitation on Changing a SWARC Application — Changed Circumstance.">
    <paragraph num="A.">
      <text>If any information submitted by an applicant as part of a SWARC application changes or becomes inaccurate before SWARC has awarded or denied a license sought by the submission of the SWARC application, the applicant shall immediately submit to SWARC written notification of the change or inaccuracy.</text>
    </paragraph>
    <paragraph num="B.">
      <text>An applicant may not change a SWARC application after it has been submitted except:</text>
      <paragraph num="(1)">
        <text>As provided in Regulations .09 or .11 of this chapter; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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 .</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>To request approval to change a SWARC application under §B(2) of this regulation, an applicant shall submit to SWARC a written request for its proposed change to the application that describes the:</text>
      <paragraph num="(1)">
        <text>Change in the circumstances surrounding the application that would necessitate the change;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Nature of the proposed change;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Reason why the proposed change is necessary to bring the SWARC application into compliance with applicable law or regulations; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Law or regulation applicable to the proposed change.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>SWARC shall grant or deny each request to change an application within 7 calendar days of receiving the request.</text>
    </paragraph>
    <paragraph num="E.">
      <text>SWARC may grant the request if the applicant demonstrates, to the satisfaction of SWARC, that:</text>
      <paragraph num="(1)">
        <text>The circumstances requiring the change are outside the control of the applicant;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Before the change in the circumstances the applicant describes under §C of this regulation, the application complied with applicable law or regulation; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The change is necessary to bring the application into compliance with applicable law or regulation.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".11" heading="Limitation on Changing a SWARC Application — Omission or Mistake.">
    <paragraph num="A.">
      <text>SWARC may permit an applicant to change its SWARC application to remedy an omission or a mistaken failure to comply with an applicable law or regulation, if SWARC determines the failure to be inadvertent or nonsubstantive.</text>
    </paragraph>
    <paragraph num="B.">
      <text>To request a change to a SWARC application under this regulation, an applicant shall submit to SWARC a written request for its proposed change to the application that describes:</text>
      <paragraph num="(1)">
        <text>The omission or mistake was promptly reported to SWARC after its discovery;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The nature of the proposed change;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Why the proposed change is necessary to bring the application into compliance with applicable law or regulation; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The law or regulation applicable to the proposed change.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Within 7 calendar days of SWARC’s receipt of an applicant’s request to make a change as provided in §B of this regulation, SWARC shall:</text>
      <paragraph num="(1)">
        <text>Grant the request;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Deny the request and state the reason for the denial; or</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Request additional information.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".12" heading="Withdrawal of Application.">
    <paragraph num="A.">
      <text>Before SWARC has awarded or denied a license, an applicant may withdraw a SWARC application by submitting a written notice to SWARC.</text>
    </paragraph>
    <paragraph num="B.">
      <text>An applicant that withdraws a SWARC application may not:</text>
      <paragraph num="(1)">
        <text>Receive a refund of its SWARC application fee; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Have its SWARC application or any documents submitted to SWARC in support of the application returned.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".13" heading="Evaluation of Applications.">
    <text>In evaluating an application for the award of a license, SWARC will consider all information concerning the applicant, including information concerning its officers, principals, affiliates, online sports wagering operator, or other representatives, based upon the following criteria, in no particular order and with no particular weight assigned:</text>
    <paragraph num="A.">
      <text>Experience, business ability, and track record that evidences the applicant’s, or the applicant’s identified sports wagering operator’s, ability to establish and operate a successful sports wagering operation;</text>
    </paragraph>
    <paragraph num="B.">
      <text>Demonstrated ability to comply with applicable sports wagering laws and regulations, including regulatory compliance in other jurisdictions and past cooperation with regulatory authorities;</text>
    </paragraph>
    <paragraph num="C.">
      <text>Demonstrated culture of and investments in responsible gaming programs, and an effective governance and compliance program;</text>
    </paragraph>
    <paragraph num="D.">
      <text>Demonstrated financial stability, resources, integrity, and business ability and acumen and applicant’s ability to compete in the Maryland sports wagering market;</text>
    </paragraph>
    <paragraph num="E.">
      <text>If an applicant sought investors, evidence of applicant’s serious, good-faith efforts to solicit and interview a reasonable number of minority and women investors and whether or not any of those investors have purchased an equity share in the applicant;</text>
    </paragraph>
    <paragraph num="F.">
      <text>The maximization of sports wagering revenues, including projected proceeds to the State;</text>
    </paragraph>
    <paragraph num="G.">
      <text>Ability to commence sports wagering operations within a reasonable period of time after the award of the license;</text>
    </paragraph>
    <paragraph num="H.">
      <text>The extent to which the proposed sports wagering operation preserves existing Maryland jobs and creates new Maryland jobs;</text>
    </paragraph>
    <paragraph num="I.">
      <text>The anticipated wages and benefits for new Maryland jobs that would be created;</text>
    </paragraph>
    <paragraph num="J.">
      <text>Demonstrated willingness and commitment to make investments in Maryland;</text>
    </paragraph>
    <paragraph num="K.">
      <text>For facility licenses:</text>
      <paragraph num="(1)">
        <text>Whether the proposed facility is located within an opportunity zone or an enterprise zone;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The extent to which the proposed facility encourages Maryland wagering participants to remain in the State when placing sports wagers; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The extent to which the proposed facility will attract out-of-State visitors;</text>
      </paragraph>
    </paragraph>
    <paragraph num="L.">
      <text>Whether the applicant’s proposed sports wagering business would appeal to a unique market;</text>
    </paragraph>
    <paragraph num="M.">
      <text>Responsiveness of the applicant to requests of SWARC and Commission;</text>
    </paragraph>
    <paragraph num="N.">
      <text>Whether an award of the license is in the public interest and is consistent with the purposes of the sports wagering law; and</text>
    </paragraph>
    <paragraph num="O.">
      <text>Any other criteria deemed by SWARC to be in the public interest and consistent with the sports wagering law.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".14" heading="License Award Decision.">
    <paragraph num="A.">
      <text>The Commission shall review all eligible applicants and notify SWARC by email of the applicants determined to be qualified.</text>
    </paragraph>
    <paragraph num="B.">
      <text>SWARC may not award a license to an applicant that has not been found qualified by the Commission.</text>
    </paragraph>
    <paragraph num="C.">
      <text>SWARC may not award a license unless it determines and declares in writing that award of the license to the applicant is in the public interest and is consistent with the purposes of State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text>
    </paragraph>
    <paragraph num="D.">
      <text>For each qualified applicant, SWARC shall make a license award determination in writing based on the requirements and criteria set forth in this chapter.</text>
    </paragraph>
    <paragraph num="E.">
      <text>Promptly after making an award decision, SWARC shall provide written notification of its decision to the applicant and Commission.</text>
    </paragraph>
    <paragraph num="F.">
      <text>If SWARC awards the applicant a license, SWARC’s notice of award to the successful applicant shall include notice that:</text>
      <paragraph num="(1)">
        <text>The Commission shall evaluate and approve the awardee’s sports wagering operations before issuing a license to the applicant;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The awardee may begin sports wagering operations only after it has been issued a license to do so by the Commission; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The awardee may not transfer the award to another person.</text>
      </paragraph>
    </paragraph>
    <paragraph num="G.">
      <text>If SWARC denies an application, SWARC’s written notice to the unsuccessful applicant shall include the applicant’s right to seek, under State Finance and Procurement Article, Title 15, Annotated Code of Maryland, review by the Maryland State Board of Contract Appeals as provided in State Government Article, §9-1E-15(n), Annotated Code of Maryland.</text>
    </paragraph>
    <paragraph num="H.">
      <text>SWARC shall notify the unsuccessful applicant, in writing, that:</text>
      <paragraph num="(1)">
        <text>SWARC’s decision to deny an application is a final action of SWARC;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The decision may be appealed to the Maryland State Board of Contract Appeals in accordance with COMAR 21.10.07.02;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The written notice of appeal to the Appeals Board may be filed:</text>
        <paragraph num="(a)">
          <text>Pursuant to COMAR 21.10.05.01B; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>By mail, to The Maryland State Board of Contract Appeals, 6 St. Paul Street, Suite 601, Baltimore, Maryland 21202.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="I.">
      <text>Nothing in this subtitle may be construed to require SWARC to award any or all sports wagering licenses authorized under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.</text>
    </paragraph>
    <paragraph num="J.">
      <text>If SWARC does not award all available licenses, SWARC may, in its sole discretion, offer unawarded, available licenses through a subsequent competitive process as outlined in the sports wagering law.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".15" heading="Surrender of License Award.">
    <paragraph num="A.">
      <text>An awardee may surrender a license award by notifying SWARC in writing of its surrender.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Upon an awardee’s notification to SWARC of its surrender of the award, the awarded license is terminated, and the awardee may not:</text>
      <paragraph num="(1)">
        <text>Receive a refund of its SWARC application fee; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Have its SWARC application or any documents submitted to SWARC in support of the application returned.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>If an awardee surrenders a license award before the Commission issues the applicant’s license, SWARC may award the license to another applicant utilizing the criteria established in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and this subtitle.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".16" heading="License Awards — Surrendered, Lapsed, or Revoked Licenses.">
    <paragraph num="A.">
      <text>Before January 1, 2028:</text>
      <paragraph num="(1)">
        <text>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</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>On or after January 1, 2028, and if SWARC has been reconstituted pursuant to State Government Article, §9-1E-15(q)(2), Annotated Code of Maryland:</text>
      <paragraph num="(1)">
        <text>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</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".17" heading="Continuing Obligations.">
    <paragraph num="A.">
      <text>At all times, an applicant, awardee, and sports wagering licensee:</text>
      <paragraph num="(1)">
        <text>Shall conform to all documents it submitted in support of its SWARC application and Commission application;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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</text>
      </paragraph>
      <paragraph num="(3)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>State Government Article, Title 9, Subtitles 1E, Annotated Code of Maryland; or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Regulations promulgated by SWARC or the Commission.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>If information submitted to SWARC or the Commission by an applicant, awardee, or licensee changes, the applicant shall, within 5 calendar days of the date that the applicant, awardee, or licensee knew or should have known of the change, submit written notification of the change to SWARC or the Commission.</text>
    </paragraph>
    <paragraph num="C.">
      <text>An applicant, awardee, or licensee has an affirmative and continuing obligation to:</text>
      <paragraph num="(1)">
        <text>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</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Provide SWARC and the Commission with all information relating to its license eligibility in any form that SWARC or the Commission may request.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>If, before the Commission issues a license, SWARC becomes aware of an awardee’s failure to comply with an applicable law or regulation, SWARC may:</text>
      <paragraph num="(1)">
        <text>Reverse its determination; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Deny the license award.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>If SWARC reverses its determination to award a license pursuant to §D of this regulation, SWARC shall notify the former awardee in writing of its determination and the basis for the determination.</text>
    </paragraph>
    <paragraph num="F.">
      <text>The notice of SWARC’s decision to reverse a license award shall include the notice of the former awardee’s appeal rights as set forth in Regulation .14H of this chapter.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".18" heading="Burden of Proof.">
    <text>At all times, the burden of proof shall be on the applicant, awardee, or licensee to establish, by clear and convincing evidence, that the applicant, awardee, or licensee meets requirements under State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland, COMAR 36.10, and this subtitle.</text>
  </regulation>
  <regulation prefix="Regulation" num=".19" heading="Ownership Criteria.">
    <paragraph num="A.">
      <text>SWARC may not award a license to an applicant that has not demonstrated direct or indirect ownership of not less than 5 percent by individuals with personal net worth of less than $1,847,000 each.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Owners of the applicant intended to satisfy this ownership criteria shall provide to the applicant a signed, notarized certification stating that the individual’s personal net worth is less than $1,847,000 and such certifications shall be submitted with the applicant’s SWARC application.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".20" heading="Request to Change Proposed Facility Location.">
    <paragraph num="A.">
      <text>This regulation pertains only to awardees of a Class B-2 sports wagering facility license.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Notwithstanding any other provision of COMAR 36.11:</text>
      <paragraph num="(1)">
        <text>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:</text>
        <paragraph num="(a)">
          <text>The Commission qualified the applicant on or before February 15, 2023;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>SWARC awarded the applicant’s sports wagering facility license on or before February 15, 2023; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>The Commission has not yet issued the license.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The awardee shall submit its request in a form required by both commissions, and shall provide:</text>
        <paragraph num="(a)">
          <text>The reason for the request;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The new proposed location;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Documentation verifying the new proposed location has appropriate zoning;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>An affidavit attesting to the accuracy of the information in its request; and</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Any other information SWARC requires.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>SWARC may:</text>
        <paragraph num="(a)">
          <text>Consider a timely written request;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>In SWARC’s discretion, grant or deny the request; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Notify the applicant and the Commission of the outcome.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(5)">
        <text>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.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">State Government Article, Title 9, Subtitles 1A and 1E, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date:</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.19 adopted as an emergency provision effective September 2, 2022 (49:20 Md. R. 912); adopted permanently effective November 14, 2022 (49:23 Md. R. 998)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .20 adopted as an emergency provision effective December 12, 2023 (50:26 Md. R 1130); adopted permanently effective May 27, 2024 (51:10 Md. R. 529)</annotation>
  </annotations>
</chapter>