EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0796*
SENATE BILL 796
C7 2lr1415
By: Senator Guzzone
Introduced and read first time: February 7, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Instant Ticket Lottery Machines – Veterans’ Organizations – Repeal of the 2
Pre–Printed Ticket Requirement 3
FOR the purpose of altering a requirement that the State Lottery and Gaming Control 4
Agency ensure that certain instant ticket lottery machines operate in a certain 5
manner; and generally relating to instant ticket lottery machines. 6
BY repealing and reenacting, with amendments, 7
Article – State Government 8
Section 9–112 9
Annotated Code of Maryland 10
(2021 Replacement Volume) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – State Government 14
9–112. 15
(a) In this section, “veterans’ organization” means an organization that is tax 16
exempt and organized as a veterans’ organization under § 501(c)(19) or § 501(c)(4) of the 17
Internal Revenue Code. 18
(b) Except as provided in subsection (d) of this section, in accordance with the 19
regulations of the Agency and this subtitle, the Director shall issue licenses to the persons 20
and governmental units that will best serve the public convenience and promote the sale of 21
State lottery tickets or shares. 22
(c) Before issuing a license to an applicant, the Director shall consider such 23
factors as: 24 2 SENATE BILL 796
(1) the financial responsibility and security of the applicant and the 1
business or activity of the applicant; 2
(2) the accessibility of the place of business or activity to the public; 3
(3) the sufficiency of existing licenses to serve the public convenience; and 4
(4) the volume of expected sales. 5
(d) (1) This subsection does not apply in: 6
(i) Caroline County; 7
(ii) Cecil County; 8
(iii) Dorchester County; 9
(iv) Kent County; 10
(v) Queen Anne’s County; 11
(vi) Somerset County; 12
(vii) Talbot County; 13
(viii) Wicomico County; and 14
(ix) Worcester County. 15
(2) (i) Subject to subparagraph (ii) of this paragraph, the Director may 16
issue a license under this subtitle for not more than five instant ticket lottery machines to 17
an applicant that is a veterans’ organization. 18
(ii) A veterans’ organization that is issued a license under this 19
subsection shall locate and operate its instant ticket lottery machines at its principal 20
meeting hall in the county in which the veterans’ organization is located. 21
(3) After deduction of any commission and validation prize payout as 22
provided under § 9–117 of this subtitle, a veterans’ organization issued a license under this 23
subsection shall credit the remaining receipts from the sale of tickets from instant ticket 24
lottery machines to the State Lottery Fund established under § 9–118 of this subtitle. 25
(4) (i) Subject to subparagraph (ii) of this paragraph, a veterans’ 26
organization issued a license under this subsection shall purchase or lease the instant 27
ticket lottery machines to be used by the veterans’ organization. 28
SENATE BILL 796 3
(ii) An organization may not use receipts from the sale of tickets 1
from instant ticket lottery machines that would otherwise be credited to the State Lottery 2
Fund for the costs of purchasing or leasing instant ticket lottery machines. 3
(5) The Director may adopt regulations to implement the provisions of this 4
subsection that include restricting the location of instant ticket lottery machines in areas 5
of a veterans’ organization’s public meeting hall that is accessible to the public. 6
[(6) The Agency shall ensure that the element of chance in the conduct of 7
the gaming through the instant ticket lottery machines established under this subsection 8
is consistent with the holding in the case of Chesapeake Amusements Inc. v. Riddle, 363 9
Md. 16 (2001), in that the element of chance must be wholly within the pre–printed instant 10
lottery ticket, and that player enhancements in an instant ticket lottery machine may not 11
affect the element of chance being wholly within the pre–printed instant lottery ticket.] 12
(6) THE AGENCY SHALL ENSURE T HAT THE INSTANT TICK ET 13
LOTTERY MACHINES AUTHORIZED UNDER THI S SUBSECTION OPERATE IN THE SAME 14
MANNER AS THE ELECTRONIC INSTA NT BINGO MACHINES AL LOWED UNDER § 12–308 15
OF THE CRIMINAL LAW ARTICLE. 16
(e) The Director may not issue a license to: 17
(1) a person or governmental unit to engage in business primarily as a 18
licensed agent; or 19
(2) an individual who is under the age of 21 years. 20
(f) The Commission may hear and decide an appeal of a denial of a license. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
1, 2022. 23