MD
Maryland Senate Bill SB627

Maryland 2024 Regular Session

Maryland Senate Bill SB627 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11
22
33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *sb0627*
66
77 SENATE BILL 627
88 C6, C7 4lr1614
99
1010 By: Senator McKay
1111 Introduced and read first time: January 26, 2024
1212 Assigned to: Budget and Taxation
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Horse Racing – Satellite Simulcast Betting – Alterations 2
1919
2020 FOR the purpose of transferring the regulation of satellite simulcast betting facilities in 3
2121 the State from the State Racing Commission to the State Lottery and Gaming 4
2222 Control Agency; altering the definition of “satellite simulcast betting”, for purposes 5
2323 of provisions of law governing satellite simulcast betting and permits to hold satellite 6
2424 simulcast betting, to authorize pari–mutuel betting at a satellite simulcast facility 7
2525 in the State on a race that is simulcast from a sending track located in certain states; 8
2626 repealing certain limitations on the location and operation of satellite simulcast 9
2727 facilities; authorizing certain satellite simulcast betting facilities to own or lease, and 10
2828 operate, pari–mutuel betting equipment under certain circumstances; providing that 11
2929 all money bet at a satellite simulcast facility where the sending track is licensed in 12
3030 another state is subject to the State racing tax; and generally relating to horse racing 13
3131 and satellite simulcast betting. 14
3232
3333 BY repealing and reenacting, with amendments, 15
3434 Article – Business Regulation 16
3535 Section 11–210(b), 11–815 through 11–820, 11–822 through 11–826, 11–828, 11–831, 17
3636 and 11–832 18
3737 Annotated Code of Maryland 19
3838 (2015 Replacement Volume and 2023 Supplement) 20
3939
4040 BY repealing and reenacting, without amendments, 21
4141 Article – Business Regulation 22
4242 Section 11–821 and 11–827 23
4343 Annotated Code of Maryland 24
4444 (2015 Replacement Volume and 2023 Supplement) 25
4545
4646 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
4747 That the Laws of Maryland read as follows: 27
4848 2 SENATE BILL 627
4949
5050
5151 Article – Business Regulation 1
5252
5353 11–210. 2
5454
5555 (b) The Commission may not adopt regulations that allow: 3
5656
5757 (1) racing a breed of horse not now authorized by law; or 4
5858
5959 (2) holding currently unauthorized: 5
6060
6161 (i) intertrack betting; OR 6
6262
6363 (ii) [off–track betting; or 7
6464
6565 (iii)] telephone betting other than telephone account betting. 8
6666
6767 11–815. 9
6868
6969 (a) In this part the following words have the meanings indicated. 10
7070
7171 (b) “AGENCY” MEANS THE STATE LOTTERY AND GAMING CONTROL 11
7272 AGENCY. 12
7373
7474 (C) “Permit” means a permit granted under this part to hold satellite simulcast 13
7575 betting. 14
7676
7777 [(c)] (D) “Satellite simulcast betting” means: 15
7878
7979 (1) pari–mutuel betting at a satellite simulcast facility in the State on a 16
8080 race that is simulcast from a sending track by: 17
8181
8282 (I) a mile thoroughbred racing licensee, a harness racing licensee, 18
8383 or the State Fair Society; OR 19
8484
8585 (II) AN ENTITY LICENSED T O CONDUCT HORSE RACING IN 20
8686 DELAWARE, PENNSYLVANIA , VIRGINIA, OR WEST VIRGINIA; and 21
8787
8888 (2) transmission of the pari–mutuel information regarding bets at the 22
8989 satellite simulcast facility to the sending track. 23
9090
9191 11–816. 24
9292
9393 (a) The [Commission] AGENCY may approve satellite simulcast facilities that 25
9494 may conduct satellite simulcast betting. 26
9595 SENATE BILL 627 3
9696
9797
9898 (b) This part does not authorize satellite simulcast betting at or through the 1
9999 direct use of lottery terminals in the State. 2
100100
101101 (c) The Commission has jurisdiction over all satellite simulcast betting and other 3
102102 activities at a satellite simulcast facility to the same extent as when live racing is held by 4
103103 a licensee. 5
104104
105105 11–817. 6
106106
107107 (a) A person must have a permit granted by the [Commission] AGENCY 7
108108 whenever the person holds satellite simulcast betting. 8
109109
110110 (b) (1) Except as provided in paragraph (2) of this subsection, nothing in this 9
111111 Part III of this subtitle may preempt local zoning laws or ordinances. 10
112112
113113 (2) The use of a facility for satellite simulcast betting is not required to be 11
114114 submitted to or approved by any county or municipal zoning board, authority, or unit if the 12
115115 facility is properly zoned and operating for the following activities: 13
116116
117117 (i) operation of a video lottery facility; 14
118118
119119 (ii) operation of a sports wagering facility; or 15
120120
121121 (iii) operation of electronic bingo or electronic tip jar machines. 16
122122
123123 11–818. 17
124124
125125 (a) Any person may apply for a permit. 18
126126
127127 (b) An applicant for a permit shall submit to the [executive director] DIRECTOR 19
128128 of the [Commission] AGENCY an application in the form that the [Commission] AGENCY 20
129129 requires. 21
130130
131131 (c) Except as provided in subsection (e) of this section, the [Commission] 22
132132 AGENCY shall conduct a personal and financial background check of an applicant for a 23
133133 permit including: 24
134134
135135 (1) a review, by a certified public accountant, of the certified financial 25
136136 statements of the applicant, including contingent or pledged liabilities, sufficient to 26
137137 determine the ability of the applicant to purchase or lease, and develop and maintain the 27
138138 satellite simulcast facility for which the permit is sought; 28
139139
140140 (2) an income statement of the applicant for the most recent year; 29
141141
142142 (3) a statement of financial and related records of any person in which the 30
143143 applicant has at least a majority interest; 31
144144 4 SENATE BILL 627
145145
146146
147147 (4) a disclosure of all financial interests in horse racing and any other 1
148148 legalized betting activity; 2
149149
150150 (5) the disclosure of each person who is a beneficial owner of the applicant; 3
151151
152152 (6) with the assistance of federal, State, and local law enforcement 4
153153 authorities, a criminal background review; and 5
154154
155155 (7) a character review. 6
156156
157157 (d) The [Commission] AGENCY shall adopt regulations establishing uniform 7
158158 procedures for conducting the personal and financial background check required by this 8
159159 section. 9
160160
161161 (e) The [Commission] AGENCY may waive all or any portion of the review that it 10
162162 determines to be appropriate for any applicant that is: 11
163163
164164 (1) a licensee; 12
165165
166166 (2) a video lottery operation licensee under Title 9, Subtitle 1A of the State 13
167167 Government Article; or 14
168168
169169 (3) a sports wagering facility licensee under Title 9, Subtitle 1E of the State 15
170170 Government Article. 16
171171
172172 11–819. 17
173173
174174 (a) The factors that the [Commission] AGENCY shall consider in deciding 18
175175 whether to grant a permit shall include: 19
176176
177177 (1) the needs and convenience of the public; 20
178178
179179 (2) whether the satellite simulcast facility: 21
180180
181181 (i) would be expected to interfere unreasonably with attendance at 22
182182 tracks; and 23
183183
184184 (ii) meets the requirements of § 11–825(a) of this subtitle; 24
185185
186186 (3) the desires of the political subdivision where the proposed satellite 25
187187 simulcast facility is to be located; 26
188188
189189 (4) the interests of the racing industry; and 27
190190
191191 (5) other matters that the [Commission] AGENCY finds appropriate. 28
192192
193193 (b) Before granting a permit, the [Commission] AGENCY shall: 29 SENATE BILL 627 5
194194
195195
196196
197197 (1) hold a public hearing within 10 miles of the proposed satellite simulcast 1
198198 facility; 2
199199
200200 (2) advertise the date, time, and location of the public hearing in a local 3
201201 publication at least 30 days before the public hearing; 4
202202
203203 (3) provide written notice of the date, time, and location of the public 5
204204 hearing to each of the Senators, Delegates, and county–elected officials that represent the 6
205205 jurisdiction within which the proposed satellite simulcast betting facility is to be located; 7
206206
207207 (4) post notice of the public hearing on the [Commission’s Web site] 8
208208 AGENCY’S WEBSITE at least 30 days before the public hearing; 9
209209
210210 (5) require the applicant, at least 30 days before the public hearing, to post 10
211211 a sign in a conspicuous location at the facility for which the application for the permit was 11
212212 submitted stating that an application is pending for use of the facility for satellite simulcast 12
213213 betting and specifying the date, time, and location of the public hearing; and 13
214214
215215 (6) request from the applicant a list of community associations that were 14
216216 notified of the public hearing. 15
217217
218218 11–820. 16
219219
220220 (a) The [Commission] AGENCY shall grant a permit to each applicant whose 17
221221 application the [Commission] AGENCY approves after the applicant pays the permit fee 18
222222 that the [Commission] AGENCY requires. 19
223223
224224 (b) A permit shall state the specific location where the permit applies. 20
225225
226226 (c) If the [Commission] AGENCY approves, an applicant for a permit may change 21
227227 the location for which a satellite simulcast facility is being applied. 22
228228
229229 11–821. 23
230230
231231 A permit entitles the holder to hold satellite simulcast betting at the satellite 24
232232 simulcast facility specified in the permit, but does not give the permit holder an ownership 25
233233 right to the permit or the simulcast signal. 26
234234
235235 11–822. 27
236236
237237 (a) The [Commission] AGENCY shall set the term of each permit. 28
238238
239239 (b) If the [Commission] AGENCY approves, a permit may be transferred to 29
240240 another person if: 30
241241 6 SENATE BILL 627
242242
243243
244244 (1) the satellite simulcasting facility remains at the same location; and 1
245245
246246 (2) the person complies with all regulations of the Commission established 2
247247 under § 11–316 of this title for the purchase or transfer of an entity licensed to conduct 3
248248 racing. 4
249249
250250 11–823. 5
251251
252252 [A] THE AGENCY SHALL ADOPT RE GULATIONS REQUIRING A permit holder 6
253253 [shall] TO keep records of ownership and submit annual reports of ownership [as required 7
254254 under] IN A MANNER CONSISTENT WITH § 11–314 of this title. 8
255255
256256 11–824. 9
257257
258258 [Applicants for and holders of permits are subject to] THE AGENCY SHALL ADOPT 10
259259 REGULATIONS CONCERNI NG the denial of [license] LICENSES and disciplinary 11
260260 provisions [of] THAT ARE CONSISTENT WITH § 11–308 of this title. 12
261261
262262 11–825. 13
263263
264264 (a) A satellite simulcast facility: 14
265265
266266 (1) shall be in premises owned or leased by a permit holder; AND 15
267267
268268 (2) [may not be within a 35–mile radius of any mile thoroughbred track or 16
269269 harness track unless approved by the track licensee, the group that represents a majority 17
270270 of the applicable owners and trainers licensed in the State and the group that represents a 18
271271 majority of the applicable breeders in the State, considered separately; 19
272272
273273 (3) unless the track agrees otherwise, may not operate during hours on 20
274274 those days that racing with pari–mutuel betting is permitted at a racetrack located in this 21
275275 State within a 35–mile radius of the satellite simulcast facility; and 22
276276
277277 (4)] shall offer pari–mutuel betting facilities and amenities that the 23
278278 [Commission] AGENCY finds are appropriate for the area where the satellite simulcast 24
279279 facility is located. 25
280280
281281 (b) (1) (I) [A] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 26
282282 PARAGRAPH , A mile thoroughbred racing licensee [or], a harness racing licensee, OR AN 27
283283 ENTITY LICENSED TO C ONDUCT HORSE RACING IN DELAWARE, PENNSYLVANIA , 28
284284 VIRGINIA, OR WEST VIRGINIA: 29
285285
286286 [(i)] 1. shall own or lease the pari–mutuel betting equipment at a 30
287287 satellite simulcast facility; and 31
288288 SENATE BILL 627 7
289289
290290
291291 [(ii)] 2. except as provided in paragraph (2) of this subsection, 1
292292 shall, with its employees, operate the equipment. 2
293293
294294 (II) A SATELLITE SIMULCAST FACILITY WITH AN AGREEMENT 3
295295 OR CONTRACT WITH A SENDING TRACK IN ANOTHER STATE MAY: 4
296296
297297 1. OWN OR LEASE THE PAR I–MUTUEL BETTING 5
298298 EQUIPMENT; AND 6
299299
300300 2. EXCEPT AS PROVIDED I N PARAGRAPH (2) OF THIS 7
301301 SUBSECTION, OPERATE THE EQUIPMEN T. 8
302302
303303 (2) (i) In this paragraph, “sports wagering licensee” has the meaning 9
304304 stated in § 9–1E–01 of the State Government Article. 10
305305
306306 (ii) Subject to the approval of the Commission and the State Lottery 11
307307 and Gaming Control Commission: 12
308308
309309 1. a self–service kiosk at a satellite simulcast facility that is 13
310310 located in a sports wagering facility may accept both satellite simulcast bets and sports 14
311311 wagers, provided that the kiosk separately accounts for the different types of wagers and 15
312312 meets all specifications and requirements established by regulation by the State Lottery 16
313313 and Gaming Control Commission; and 17
314314
315315 2. a mile thoroughbred racing licensee or a harness racing 18
316316 licensee may enter into an agreement with a sports wagering licensee authorizing the 19
317317 employees of the sports wagering licensee to operate the pari–mutuel betting equipment 20
318318 and to accept pari–mutuel bets on horse racing in a satellite simulcast facility. 21
319319
320320 (c) A mile thoroughbred racing licensee or a harness racing licensee shall submit 22
321321 to the [Commission] AGENCY all contracts and agreements relating to satellite simulcast 23
322322 betting under this subtitle. 24
323323
324324 (d) (1) The [Commission] AGENCY shall periodically be assured by permit 25
325325 holders that facilities continue to meet the requirements of this section. 26
326326
327327 (2) (i) The [Commission] AGENCY shall inspect satellite simulcast 27
328328 facilities at least four times each year to determine if the permit holders are continuing to 28
329329 comply with the provisions of this section. 29
330330
331331 (ii) The inspections under this subsection shall include evaluations 30
332332 of the financial and physical conditions of each satellite simulcast facility. 31
333333
334334 (3) If the [Commission] AGENCY finds that a permit holder is not 32
335335 complying with the provisions of this section, the [Commission] AGENCY may impose a 33 8 SENATE BILL 627
336336
337337
338338 penalty on the permit holder similar to those penalties levied on licensees as provided under 1
339339 § 11–308 of this title. 2
340340
341341 11–826. 3
342342
343343 (a) [All] FOR A SATELLITE SIMUL CAST FACILITY WHERE THE SENDING 4
344344 TRACK IS IN THE STATE: 5
345345
346346 (1) ALL money bet at a satellite simulcast facility shall be included in the 6
347347 applicable mutuel pools at the sending track[.]; AND 7
348348
349349 [(b)] (2) [Except] EXCEPT as provided in § 11–827 of this part, the breakage, 8
350350 State tax, and takeout on all satellite simulcast betting shall be computed in the way 9
351351 normally applicable to pari–mutuel betting on a race at the sending track. 10
352352
353353 (B) FOR A SATELLITE SIMUL CAST FACILITY WHERE THE SENDING TRACK IS 11
354354 LICENSED IN ANOTHER STATE, ALL MONEY BET AT THE SATELLITE SIMULCAST 12
355355 FACILITY SHALL BE SU BJECT TO THE STATE TAX. 13
356356
357357 11–827. 14
358358
359359 After the respective portions have been retained by each person listed below, those 15
360360 persons may allocate, from the takeout at the satellite simulcast facility, the costs of 16
361361 operating a satellite simulcast facility and holding satellite simulcast betting: 17
362362
363363 (1) the licensee of the sending track, from the licensee’s share; 18
364364
365365 (2) the group that represents a majority of the applicable owners and 19
366366 trainers licensed in the State, from the purse share; and 20
367367
368368 (3) the group that represents a majority of the applicable breeders in the 21
369369 State, from the bred fund share. 22
370370
371371 11–828. 23
372372
373373 (a) A satellite simulcast facility shall transmit directly to the sending track IN 24
374374 THE STATE all pari–mutuel information about the money bet at the satellite simulcast 25
375375 facility. 26
376376
377377 (b) A sending track IN THE STATE shall incorporate this information with 27
378378 information on pari–mutuel betting at the sending track. 28
379379
380380 11–831. 29
381381
382382 The [Commission] AGENCY shall include in its annual report to the [Legislative 30
383383 Policy Committee of the Maryland General Assembly] GOVERNOR: 31 SENATE BILL 627 9
384384
385385
386386
387387 (1) the effect of satellite simulcast betting on the racing industry in the 1
388388 State; 2
389389
390390 (2) an appraisal of each permit holder, taking into consideration the results 3
391391 of inspections required under this section and any financial information that is submitted 4
392392 to the [Commission] AGENCY; 5
393393
394394 (3) if any additional permit has been granted under this section: 6
395395
396396 (i) the reasons for granting the permit; and 7
397397
398398 (ii) the anticipated impact of the new facility on existing permit 8
399399 holders and racing licensees; and 9
400400
401401 (4) if an application for a permit or permit renewal has been denied: 10
402402
403403 (i) the reasons for denying the permit or renewal; and 11
404404
405405 (ii) the impact on racing licensees if the [Commission] AGENCY 12
406406 denied a permit renewal application. 13
407407
408408 11–832. 14
409409
410410 The [Commission] AGENCY shall adopt regulations to: 15
411411
412412 (1) define the criteria for applicants for a satellite simulcast betting permit, 16
413413 which may include a nonrefundable application fee; 17
414414
415415 (2) define allowable costs of operations under § 11–827 of this part; and 18
416416
417417 (3) otherwise carry out this part. 19
418418
419419 SECTION 2. AND BE IT FURTHER ENACTED, That : 20
420420
421421 (a) Except as provided in subsection (b) of this section, this Act shall be construed 21
422422 to apply only prospectively and may not be interpreted to affect the validity or term of any 22
423423 permit for a satellite simulcast betting facility issued or renewed before the effective date 23
424424 of this Act. 24
425425
426426 (b) This Act shall apply to and be interpreted to affect an application for a permit 25
427427 for a satellite simulcast betting facility in process on the effective date of this Act. 26
428428
429429 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
430430 October 1, 2024. 28