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.
Italics indicate opposite chamber/conference committee amendments.
*hb0942*
HOUSE BILL 942
C7, C6 (2lr2517)
ENROLLED BILL
— Ways and Means/Budget and Taxation —
Introduced by Delegate Luedtke
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Horse Racing – Satellite Simulcast Betting Facilities and Permit Holders and 2
Sports Wagering Facilities – 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; 10
altering certain provisions of law governing the awarding of certain sports wagering 11
facility licenses to facilities located within a certain distance of certain other sports 12
wagering facilities; and generally relating to satellite simulcast betting on horse 13
racing and sports wagering. 14
2 HOUSE BILL 942
BY repealing and reenacting, without amendments, 1
Article – Business Regulation 2
Section 11–101(a), (d), and (i) 3
Annotated Code of Maryland 4
(2015 Replacement Volume and 2021 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Business Regulation 7
Section 11–817, 11–818, and 11–825 8
Annotated Code of Maryland 9
(2015 Replacement Volume and 2021 Supplement) 10
BY repealing and reenacting, without amendments, 11
Article – State Government 12
Section 9–1E–04(a) and 9–1E–06(a)(2)(i) 13
Annotated Code of Maryland 14
(2021 Replacement Volume) 15
BY adding to 16
Article – State Government 17
Section 9–1E–04(c) 18
Annotated Code of Maryland 19
(2021 Replacement Volume) 20
BY repealing and reenacting, with amendments, 21
Article – State Government 22
Section 9–1E–06(a)(3) 23
Annotated Code of Maryland 24
(2021 Replacement Volume) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27
Article – Business Regulation 28
11–101. 29
(a) In this title the following words have the meanings indicated. 30
(d) “Commission” means the State Racing Commission. 31
(i) “Licensee” means a person who has been awarded racing days for the current 32
calendar year. 33
11–817. 34
HOUSE BILL 942 3
(a) A person must have a permit granted by the Commission whenever the person 1
holds satellite simulcast betting. 2
(b) (1) [Nothing] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 3
SUBSECTION, NOTHING in this Part III of this subtitle may preempt local zoning laws or 4
ordinances. 5
(2) THE USE OF A FACILITY FOR SATELLITE SIMULC AST BETTING IS 6
NOT REQUIRED TO BE S UBMITTED TO OR APPRO VED BY ANY COUNTY OR MUNICIPAL 7
ZONING BOARD , AUTHORITY, OR UNIT IF THE FACIL ITY IS PROPERL Y ZONED AND 8
OPERATING FOR THE FO LLOWING ACTIVITIES : 9
(I) OPERATION OF A VIDEO LOTTERY FACILITY ; 10
(II) OPERATION OF A SPORT S WAGERING FACILITY ; OR 11
(III) OPERATION OF ELECTRO NIC BINGO OR ELECTRO NIC TIP 12
JAR MACHINES . 13
11–818. 14
(a) Any person may apply for a permit. 15
(b) An applicant for a permit shall submit to the executive director of the 16
Commission an application in the form that the Commission requires. 17
(c) Except as provided in subsection (e) of this section, the Commission shall 18
conduct a personal and financial background check of an applicant for a permit including: 19
(1) a review, by a certified public accountant, of the certified financial 20
statements of the applicant, including contingent or pledged liabilities, sufficient to 21
determine the ability of the applicant to purchase or lease, and develop and maintain the 22
satellite simulcast facility for which the permit is sought; 23
(2) an income statement of the applicant for the most recent year; 24
(3) a statement of financial and related records of any person in which the 25
applicant has at least a majority interest; 26
(4) a disclosure of all financial interests in horse racing and any other 27
legalized betting activity; 28
(5) the disclosure of each person who is a beneficial owner of the applicant; 29
(6) with the assistance of federal, State, and local law enforcement 30
authorities, a criminal background review; and 31 4 HOUSE BILL 942
(7) a character review. 1
(d) The Commission shall adopt regulations establishing uniform procedures for 2
conducting the personal and financial background check required by this section. 3
(e) The Commission may waive [portions] ALL OR ANY PORTION of the review 4
that it determines to be appropriate for any applicant that is: 5
(1) a licensee; 6
(2) A VIDEO LOTTERY OPER ATION LICENSEE UNDER TITLE 9, 7
SUBTITLE 1A OF THE STATE GOVERNMENT ARTICLE; OR 8
(3) A SPORTS WAGERING FA CILITY LICENSEE UNDE R TITLE 9, 9
SUBTITLE 1E OF THE STATE GOVERNMENT ARTICLE. 10
11–825. 11
(a) A satellite simulcast facility: 12
(1) shall be in premises owned or leased by a permit holder; 13
(2) may not be within a 35–mile radius of any mile thoroughbred track or 14
harness track unless approved by the track licensee, the group that represents a majority 15
of the applicable owners and trainers licensed in the State and the group that represents a 16
majority of the applicable breeders in the State, considered separately; 17
(3) unless the track agrees otherwise, may not operate during hours on 18
those days that racing with pari–mutuel betting is permitted at a racetrack located in this 19
State within a 35–mile radius of the satellite simulcast facility; and 20
(4) shall offer pari–mutuel betting facilities and amenities that the 21
Commission finds are[: 22
(i) comparable to those available in the sports palace facilities of the 23
mile thoroughbred racing licensees including: 24
1. high quality dining, lounge, and seating areas that are of 25
a manner generally found in fine restaurants; and 26
2. teletheatre screen capacity; and 27
(ii)] appropriate for the area where the satellite simulcast facility is 28
located. 29
HOUSE BILL 942 5
(b) (1) A mile thoroughbred racing licensee or a harness racing licensee: 1
(I) shall own or lease the pari–mutuel betting equipment at a 2
satellite simulcast facility; and 3
(II) EXCEPT AS PROVIDED I N PARAGRAPH (2) OF THIS 4
SUBSECTION, shall, with its employees, operate the equipment. 5
(2) (I) IN THIS PARAGRAPH , “SPORTS WAGERING LICE NSEE” HAS 6
THE MEANING STATED I N § 9–1E–01 OF THE STATE GOVERNMENT ARTICLE. 7
(II) SUBJECT TO THE APPROV AL OF THE COMMISSION AND TH E 8
STATE LOTTERY AND GAMING CONTROL COMMISSION: 9
1. A SELF–SERVICE KIOSK AT A S ATELLITE SIMULCAST 10
FACILITY THAT IS LOC ATED IN A SPORTS WAG ERING FACILITY MAY A CCEPT BOTH 11
SATELLITE SIMULCAST BETS AND SPORTS WAGE RS, PROVIDED THAT THE KI OSK 12
SEPARATELY ACCOUNTS FOR THE DIF FERENT TYPES OF WAGE RS AND MEETS ALL 13
SPECIFICATIONS AND R EQUIREMENTS ESTABLIS HED BY REGULATION BY THE STATE 14
LOTTERY GAMING CONTROL COMMISSION; AND 15
2. A MILE THOROUGHBRED RACING LICENSEE OR A 16
HARNESS RACING LICEN SEE MAY ENTER INTO AN AGREEMENT WITH A SPORTS 17
WAGERING LICENSEE AU THORIZING THE EMPLOY EES OF THE SPORTS WA GERING 18
LICENSEE TO OPERATE THE PARI–MUTUEL BETTING EQUIP MENT AND TO ACCEPT 19
PARI–MUTUEL BETS ON HORSE RACING IN A SATELLIT E SIMULCAST FACILITY . 20
(c) A mile thoroughbred racing licensee or a harness racing licensee shall submit 21
to the Commission all contracts and agreements relating to satellite simulcast betting 22
under this subtitle. 23
(d) (1) The Commission shall periodically be assured by permit holders that 24
facilities continue to meet the requirements of this section. 25
(2) (i) The Commission shall inspect satellite simulcast facilities at 26
least four times each year to determine if the permit holders are continuing to comply with 27
the provisions of this section. 28
(ii) The inspections under this subsection shall include evaluations 29
of the financial and physical conditions of each satellite simulcast facility. 30
(3) If the Commission finds that a permit holder is not complying with the 31
provisions of this section, the Commission may impose a penalty on the permit holder 32
similar to those penalties levied on licensees as provided under § 11–308 of this title. 33
6 HOUSE BILL 942
Article – State Government 1
9–1E–04. 2
(a) Except as otherwise provided in this subtitle, the Commission shall regulate 3
sports wagering and the conduct of sports wagering to the same extent that the Commission 4
regulates the operation of video lottery terminals and table games under Subtitle 1A of this 5
title. 6
(C) THE COMMISSION MAY ADOPT REGULATIONS AUTHORIZ ING A SPORTS 7
WAGERING LICENSEE , IF A SATELLITE SIMUL CAST FACILITY IS LOC ATED IN THE 8
LICENSEE’S SPORTS WAGERING FA CILITY, TO ALLOW ITS EMPLOYE ES TO: 9
(1) ACCEPT SATELLITE SIM ULCAST BETS ON HORSE RACING; AND 10
(2) OPERATE KIOSKS CAPAB LE OF ACCEPTING BOTH SPORTS WAG ERS 11
AND SATELLITE SIMULC AST BETS. 12
9–1E–06. 13
(a) (2) (i) The Commission shall issue a Class B–1 or Class B–2 sports 14
wagering facility license to an applicant that meets the requirements for licensure under this 15
subtitle who is: 16
1. the holder of a license issued by the State Racing 17
Commission under § 11–524 of the Business Regulation Article, including a subsidiary of 18
the license holder; 19
2. a person who is the owner or lessee of a facility approved 20
for satellite simulcast betting before January 1, 2021, unless the satellite simulcast facility 21
is located at a video lottery facility or a racetrack; and 22
3. a person who holds a commercial bingo license, if the 23
facility at which the person operates commercial bingo was permitted to operate at least 200 24
electronic bingo machines or electronic tip jar machines on January 1, 2021. 25
(3) (I) The Sports Wagering Application Review Commission 26
established under § 9–1E–15 of this subtitle may not award a Class B–1 or B–2 sports 27
wagering facility license to an applicant: 28
[(i)] 1. who is eligible to apply for a Class A–1 or A–2 sports 29
wagering facility license under paragraph (1) of this subsection; 30
[(ii)] 2. who holds a Class A–1 or A–2 sports wagering facility 31
license; or 32
HOUSE BILL 942 7
[(iii)] 3. whose sports wagering facility will be located: 1
[1.] A. EXCEPT AS PROVIDED U NDER SUBPARAGRAPH 2
(II) OF THIS PARAGRAPH , within a 15–mile radius of a Class A–1 or A–2 sports wagering 3
facility located in Allegany County, Cecil County, or Worcester County; [or] 4
B. WITH RESPECT TO AN A PPLICATION FOR A SPO RTS 5
WAGERING FACILITY LI CENSE SUBMITTED BEFO RE JUNE 1, 2025, WITHIN A 15–MILE 6
RADIUS OF A CLASS B–1 OR B–2 SPORTS WAGERING FACI LITY LICENSED TO A 7
PERSON DESCRIBED UND ER PARAGRAPH (2)(I) OF THIS SUBSECTION A ND LOCATED 8
IN CHARLES COUNTY; 9
C. WITH RESPECT TO AN A PPLICATION FOR A SPO RTS 10
WAGERING FACILITY LI CENSE SUBMITTED BEFO RE JUNE 1, 2025, WITHIN A 10–MILE 11
RADIUS OF A CLASS B–1 OR B–2 SPORTS WAGERING FACI LITY LICENSED TO A 12
PERSON DESCRIBED UND ER PARAGRAPH (2)(I) OF THIS SUBSECTION A ND LOCATED 13
IN CARROLL COUNTY; 14
D. WITH RESPECT TO AN A PPLICATION FOR A SPO RTS 15
WAGERING FACILITY LI CENSE SUBMITTED BEFO RE JUNE 1, 2025, WITHIN A 5–MILE 16
RADIUS OF A CLASS B–1 OR B–2 SPORTS WAGERING FACI LITY LICENSED TO A 17
PERSON DESCRIBED UNDER PARA GRAPH (2)(I) OF THIS SUBSECTION A ND LOCATED 18
IN FREDERICK COUNTY; OR 19
[2.] E. within a 1.5–mile radius of a Class A–1 or A–2 20
sports wagering facility located in a county not described under [item 1] ITEM A, B, C, OR 21
D of this item or any other Class B–1 or B–2 sports wagering facility. 22
(II) 1. THE PROHIBITION UNDER SUBPARAGRAPH (I)3A OF 23
THIS PARAGRAPH DOES NOT APPLY IN ALLEGANY COUNTY PRIOR TO THE I SSUANCE 24
OF A CLASS A–1 OR A–2 SPORTS WAGERING FACI LITY LICENSE IN ALLEGANY 25
COUNTY. 26
2. A CLASS B–1 OR B–2 SPORTS WAGERING FACI LITY 27
LICENSE ISSUED WITHI N A 15–MILE RADIUS OF A CLASS A–1 OR A–2 SPORTS 28
WAGERING FACILITY IN ALLEGANY COUNTY MAY BE RENEWED IF THE LICENSE WAS 29
INITIALLY ISSUED PRI OR TO THE ISSUANCE O F THE CLASS A–1 OR A–2 LICENSE. 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31
1, 2022. 32