EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable
House action: Adopted
Read second time: March 9, 2022
CHAPTER ______
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 2 HOUSE BILL 942
Article – State Government 1
Section 9–1E–04(a) 2
Annotated Code of Maryland 3
(2021 Replacement Volume) 4
BY adding to 5
Article – State Government 6
Section 9–1E–04(c) 7
Annotated Code of Maryland 8
(2021 Replacement Volume) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Business Regulation 12
11–101. 13
(a) In this title the following words have the meanings indicated. 14
(d) “Commission” means the State Racing Commission. 15
(i) “Licensee” means a person who has been awarded racing days for the current 16
calendar year. 17
11–817. 18
(a) A person must have a permit granted by the Commission whenever the person 19
holds satellite simulcast betting. 20
(b) (1) [Nothing] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 21
SUBSECTION, NOTHING in this Part III of this subtitle may preempt local zoning laws or 22
ordinances. 23
(2) THE USE OF A FACILITY FOR SATELLITE SIMULCAST BETTING IS 24
NOT REQUIRED TO BE S UBMITTED TO OR APPRO VED BY ANY COUNTY OR MUNICIPAL 25
ZONING BOARD , AUTHORITY, OR UNIT IF THE FACIL ITY IS PROPERLY ZONE D AND 26
OPERATING FOR THE FO LLOWING ACTIVITIES : 27
(I) OPERATION OF A VIDEO LOTTERY FACILI TY; 28
(II) OPERATION OF A SPORT S WAGERING FACILITY ; OR 29
(III) OPERATION OF ELECTRO NIC BINGO OR ELECTRO NIC TIP 30
JAR MACHINES . 31
HOUSE BILL 942 3
11–818. 1
(a) Any person may apply for a permit. 2
(b) An applicant for a permit shall submit to the executive director of the 3
Commission an application in the form that the Commission requires. 4
(c) Except as provided in subsection (e) of this section, the Commission shall 5
conduct a personal and financial background check of an applicant for a permit including: 6
(1) a review, by a certified public accountant, of the certified financial 7
statements of the applicant, including contingent or pledged liabilities, sufficient to 8
determine the ability of the applicant to purchase or lease, and develop and maintain the 9
satellite simulcast facility for which the permit is sought; 10
(2) an income statement of the applicant for the most recent year; 11
(3) a statement of financial and related records of any person in which the 12
applicant has at least a majority interest; 13
(4) a disclosure of all financial interests in horse racing and any other 14
legalized betting activity; 15
(5) the disclosure of each person who is a beneficial owner of the applicant; 16
(6) with the assistance of federal, State, and local law enforcement 17
authorities, a criminal background review; and 18
(7) a character review. 19
(d) The Commission shall adopt regulations establishing uniform procedures for 20
conducting the personal and financial background check required by this section. 21
(e) The Commission may waive [portions] ALL OR ANY PORTION of the review 22
that it determines to be appropriate for any applicant that is: 23
(1) a licensee; 24
(2) A VIDEO LOTTERY OPER ATION LICENSEE UNDER TITLE 9, 25
SUBTITLE 1A OF THE STATE GOVERNMENT ARTICLE; OR 26
(3) A SPORTS WAGERING FA CILITY LICENSEE UNDE R TITLE 9, 27
SUBTITLE 1E OF THE STATE GOVERNMENT ARTICLE. 28
11–825. 29
4 HOUSE BILL 942
(a) A satellite simulcast facility: 1
(1) shall be in premises owned or leased by a permit holder; 2
(2) may not be within a 35–mile radius of any mile thoroughbred track or 3
harness track unless approved by the track licensee, the group that represents a majority 4
of the applicable owners and trainers licensed in the State and the group that represents a 5
majority of the applicable breeders in the State, considered separately; 6
(3) unless the track agrees otherwise, may not operate during hours on 7
those days that racing with pari–mutuel betting is permitted at a racetrack located in this 8
State within a 35–mile radius of the satellite simulcast facility; and 9
(4) shall offer pari–mutuel betting facilities and amenities that the 10
Commission finds are[: 11
(i) comparable to those available in the sports palace facilities of the 12
mile thoroughbred racing licensees including: 13
1. high quality dining, lounge, and seating areas that are of 14
a manner generally found in fine restaurants; and 15
2. teletheatre screen capacity; and 16
(ii)] appropriate for the area where the satellite simulcast facility is 17
located. 18
(b) (1) A mile thoroughbred racing licensee or a harness racing licensee: 19
(I) shall own or lease the pari–mutuel betting equipment at a 20
satellite simulcast facility; and 21
(II) EXCEPT AS PROVIDED I N PARAGRAPH (2) OF THIS 22
SUBSECTION, shall, with its employees, operate the equipment. 23
(2) (I) IN THIS PARAGRAPH , “SPORTS WAGERING LICE NSEE” HAS 24
THE MEANING STATED I N § 9–1E–01 OF THE STATE GOVERNMENT ARTICLE. 25
(II) SUBJECT TO THE APPROV AL OF THE COMMISSION AND THE 26
STATE LOTTERY AND GAMING CONTROL COMMISSION: 27
1. A SELF–SERVICE KIOSK AT A SATELLITE SIMULCAST 28
FACILITY THAT IS LOC ATED IN A SPORTS WAG ERING FACILITY MAY ACCEPT BOTH 29
SATELLITE SIMULCAST BETS AND SPORTS WAGERS , PROVIDED THAT THE KI OSK 30
SEPARATELY ACCOUNTS FOR THE DIFFERENT TY PES OF WAGERS AND ME ETS ALL 31 HOUSE BILL 942 5
SPECIFICATIONS AND REQUIREMENTS ESTABLI SHED BY REGULATION BY THE STATE 1
LOTTERY GAMING CONTROL COMMISSION; AND 2
2. A MILE THOROUGHBRED RACING LICENSEE OR A 3
HARNESS RACING LICEN SEE MAY ENTER INTO A N AGREEMENT WITH A S PORTS 4
WAGERING LICENSEE AU THORIZING THE EMPLOY EES OF THE SPORTS WAGERING 5
LICENSEE TO OPERATE THE PARI –MUTUEL BETTING EQUIP MENT AND TO ACCEPT 6
PARI–MUTUEL BETS ON HORSE RACING IN A SATELLITE SIMUL CAST FACILITY. 7
(c) A mile thoroughbred racing licensee or a harness racing licensee shall submit 8
to the Commission all contracts and agreements relating to satellite simulcast betting 9
under this subtitle. 10
(d) (1) The Commission shall periodically be assured by permit holders that 11
facilities continue to meet the requirements of this section. 12
(2) (i) The Commission shall inspect satellite simulcast facilities at 13
least four times each year to determine if the permit holders are continuing to comply with 14
the provisions of this section. 15
(ii) The inspections under this subsection shall include evaluations 16
of the financial and physical conditions of each satellite simulcast facility. 17
(3) If the Commission finds that a permit holder is not complying with the 18
provisions of this section, the Commission may impose a penalty on the permit holder 19
similar to those penalties levied on licensees as provided under § 11–308 of this title. 20
Article – State Government 21
9–1E–04. 22
(a) Except as otherwise provided in this subtitle, the Commission shall regulate 23
sports wagering and the conduct of sports wagering to the same extent that the Commission 24
regulates the operation of video lottery terminals and table games under Subtitle 1A of this 25
title. 26
(C) THE COMMISSION MAY ADOPT REGULATIONS AUTHORIZING A SPORTS 27
WAGERING LICENSEE , IF A SATELLITE SIMUL CAST FACILITY IS LOCATED IN THE 28
LICENSEE’S SPORTS WAGERING FA CILITY, TO ALLOW ITS EMPLOYEES TO: 29
(1) ACCEPT SATELLITE SIMULCAST BETS ON HORSE RACING ; AND 30
(2) OPERATE KIOSKS CAPAB LE OF ACCEPTING BOTH SPORTS WAGER S 31
AND SATELLITE SIMULCAST BETS. 32
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 33 6 HOUSE BILL 942
1, 2022. 1
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.