EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0942*
HOUSE BILL 942
C7, C6 2lr2517
CF SB 792
By: Delegate Luedtke
Introduced and read first time: February 10, 2022
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Horse Racing – Satellite Simulcast Betting Facilities and Permit Holders – 2
Alterations 3
FOR the purpose of providing that certain zoning approval is not required to use a facility 4
for satellite simulcast betting if the facility is properly zoned for certain gaming 5
activities; authorizing the State Racing Commission to waive review of an applicant 6
for a satellite simulcast betting permit if the applicant is licensed to conduct certain 7
gaming activities; repealing certain requirements for the standard of and amenities 8
offered by a satellite simulcast facility; altering certain requirements for the 9
operation of pari–mutuel betting equipment by certain horse racing licensees; and 10
generally relating to satellite simulcast betting on horse racing. 11
BY repealing and reenacting, without amendments, 12
Article – Business Regulation 13
Section 11–101(a), (d), and (i) 14
Annotated Code of Maryland 15
(2015 Replacement Volume and 2021 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Business Regulation 18
Section 11–817, 11–818, and 11–825 19
Annotated Code of Maryland 20
(2015 Replacement Volume and 2021 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – State Government 23
Section 9–1E–04(a) 24
Annotated Code of Maryland 25
(2021 Replacement Volume) 26
BY adding to 27 2 HOUSE BILL 942
Article – State Government 1
Section 9–1E–04(c) 2
Annotated Code of Maryland 3
(2021 Replacement Volume) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Business Regulation 7
11–101. 8
(a) In this title the following words have the meanings indicated. 9
(d) “Commission” means the State Racing Commission. 10
(i) “Licensee” means a person who has been awarded racing days for the current 11
calendar year. 12
11–817. 13
(a) A person must have a permit granted by the Commission whenever the person 14
holds satellite simulcast betting. 15
(b) (1) [Nothing] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 16
SUBSECTION, NOTHING in this Part III of this subtitle may preempt local zoning laws or 17
ordinances. 18
(2) THE USE OF A FACILITY FOR SATELLITE SIMULCAST BETTING IS 19
NOT REQUIRED TO BE S UBMITTED TO OR APPRO VED BY ANY COUNTY OR MUNICIPAL 20
ZONING BOARD , AUTHORITY, OR UNIT IF THE FACIL ITY IS PROPERLY ZONE D AND 21
OPERATING FOR THE FOLLOWING ACTIVI TIES: 22
(I) OPERATION OF A VIDEO LOTTERY FACILITY ; 23
(II) OPERATION OF A SPORT S WAGERING FACILITY ; OR 24
(III) OPERATION OF ELECTRO NIC BINGO OR ELECTRO NIC TIP 25
JAR MACHINES . 26
11–818. 27
(a) Any person may apply for a permit. 28
(b) An applicant for a permit shall submit to the executive director of the 29
Commission an application in the form that the Commission requires. 30 HOUSE BILL 942 3
(c) Except as provided in subsection (e) of this section, the Commission shall 1
conduct a personal and financial background check of an applicant for a permit including: 2
(1) a review, by a certified public accountant, of the certified financial 3
statements of the applicant, including contingent or pledged liabilities, sufficient to 4
determine the ability of the applicant to purchase or lease, and develop and maintain the 5
satellite simulcast facility for which the permit is sought; 6
(2) an income statement of the applicant for the most recent year; 7
(3) a statement of financial and related records of any person in which the 8
applicant has at least a majority interest; 9
(4) a disclosure of all financial interests in horse racing and any other 10
legalized betting activity; 11
(5) the disclosure of each person who is a beneficial owner of the applicant; 12
(6) with the assistance of federal, State, and local law enforcement 13
authorities, a criminal background review; and 14
(7) a character review. 15
(d) The Commission shall adopt regulations establishing uniform procedures for 16
conducting the personal and financial background check required by this section. 17
(e) The Commission may waive [portions] ALL OR ANY PORTION of the review 18
that it determines to be appropriate for any applicant that is: 19
(1) a licensee; 20
(2) A VIDEO LOTTERY OPER ATION LICENSEE UNDER TITLE 9, 21
SUBTITLE 1A OF THE STATE GOVERNMENT ARTICLE; OR 22
(3) A SPORTS WAGERING FA CILITY LICENSEE UNDE R TITLE 9, 23
SUBTITLE 1E OF THE STATE GOVERNMENT ARTICLE. 24
11–825. 25
(a) A satellite simulcast facility: 26
(1) shall be in premises owned or leased by a permit holder; 27
(2) may not be within a 35–mile radius of any mile thoroughbred track or 28
harness track unless approved by the track licensee, the group that represents a majority 29 4 HOUSE BILL 942
of the applicable owners and trainers licensed in the State and the group that represents a 1
majority of the applicable breeders in the State, considered separately; 2
(3) unless the track agrees otherwise, may not operate during hours on 3
those days that racing with pari–mutuel betting is permitted at a racetrack located in this 4
State within a 35–mile radius of the satellite simulcast facility; and 5
(4) shall offer pari–mutuel betting facilities and amenities that the 6
Commission finds are[: 7
(i) comparable to those available in the sports palace facilities of the 8
mile thoroughbred racing licensees including: 9
1. high quality dining, lounge, and seating areas that are of 10
a manner generally found in fine restaurants; and 11
2. teletheatre screen capacity; and 12
(ii)] appropriate for the area where the satellite simulcast facility is 13
located. 14
(b) (1) A mile thoroughbred racing licensee or a harness racing licensee: 15
(I) shall own or lease the pari–mutuel betting equipment at a 16
satellite simulcast facility; and 17
(II) EXCEPT AS PROVIDED I N PARAGRAPH (2) OF THIS 18
SUBSECTION, shall, with its employees, operate the equipment. 19
(2) (I) IN THIS PARAGRAPH , “SPORTS WAGERING LICE NSEE” HAS 20
THE MEANING STATED I N § 9–1E–01 OF THE STATE GOVERNMENT ARTICLE. 21
(II) SUBJECT TO THE APPROV AL OF THE COMMISSION AND THE 22
STATE LOTTERY AND GAMING CONTROL COMMISSION: 23
1. A SELF–SERVICE KIOSK AT A SATELLITE SIMULCAST 24
FACILITY THAT IS LOC ATED IN A SPORTS WAG ERING FACILITY MAY ACCEPT BOTH 25
SATELLITE SIMULCAST BETS AND SPORTS WAGERS , PROVIDED THAT THE KI OSK 26
SEPARATELY ACCOUNTS FOR THE DIFFERENT TY PES OF WAGERS AND ME ETS ALL 27
SPECIFICATIONS AND R EQUIREMENTS ESTABLIS HED BY REGULATION BY THE STATE 28
LOTTERY GAMING CONTROL COMMISSION; AND 29
2. A MILE THOROUGHBRED RACING LICENSEE OR A 30
HARNESS RACING LICEN SEE MAY ENTER INTO A N AGREEMENT WITH A S PORTS 31
WAGERING LICENSEE AU THORIZING THE EMPLOY EES OF THE SPORTS WA GERING 32 HOUSE BILL 942 5
LICENSEE TO OPERATE THE PARI –MUTUEL BETTING EQUIP MENT AND TO ACCEPT 1
PARI–MUTUEL BETS ON HORSE RACING IN A SATELLITE SIMULCAST FA CILITY. 2
(c) A mile thoroughbred racing licensee or a harness racing licensee shall submit 3
to the Commission all contracts and agreements relating to satellite simulcast betting 4
under this subtitle. 5
(d) (1) The Commission shall periodically be assured by permit holders that 6
facilities continue to meet the requirements of this section. 7
(2) (i) The Commission shall inspect satellite simulcast facilities at 8
least four times each year to determine if the permit holders are continuing to comply with 9
the provisions of this section. 10
(ii) The inspections under this subsection shall include evaluations 11
of the financial and physical conditions of each satellite simulcast facility. 12
(3) If the Commission finds that a permit holder is not complying with the 13
provisions of this section, the Commission may impose a penalty on the permit holder 14
similar to those penalties levied on licensees as provided under § 11–308 of this title. 15
Article – State Government 16
9–1E–04. 17
(a) Except as otherwise provided in this subtitle, the Commission shall regulate 18
sports wagering and the conduct of sports wagering to the same extent that the Commission 19
regulates the operation of video lottery terminals and table games under Subtitle 1A of this 20
title. 21
(C) THE COMMISSION MAY ADOPT REGULATIONS AUTHORIZING A SPORTS 22
WAGERING LICENSEE , IF A SATELLITE SIMUL CAST FACILITY IS LOCATED IN THE 23
LICENSEE’S SPORTS WAGERING FA CILITY, TO ALLOW ITS EMPLOYEES TO: 24
(1) ACCEPT SATELLITE SIMULCAST BETS ON HORSE RACING ; AND 25
(2) OPERATE KIOSKS CAPAB LE OF ACCEPTING BOTH SPORTS WAGER S 26
AND SATELLITE SIMULCAST BETS. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
1, 2022. 29