EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0627*
SENATE BILL 627
C6, C7 4lr1614
By: Senator McKay
Introduced and read first time: January 26, 2024
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Horse Racing – Satellite Simulcast Betting – Alterations 2
FOR the purpose of transferring the regulation of satellite simulcast betting facilities in 3
the State from the State Racing Commission to the State Lottery and Gaming 4
Control Agency; altering the definition of “satellite simulcast betting”, for purposes 5
of provisions of law governing satellite simulcast betting and permits to hold satellite 6
simulcast betting, to authorize pari–mutuel betting at a satellite simulcast facility 7
in the State on a race that is simulcast from a sending track located in certain states; 8
repealing certain limitations on the location and operation of satellite simulcast 9
facilities; authorizing certain satellite simulcast betting facilities to own or lease, and 10
operate, pari–mutuel betting equipment under certain circumstances; providing that 11
all money bet at a satellite simulcast facility where the sending track is licensed in 12
another state is subject to the State racing tax; and generally relating to horse racing 13
and satellite simulcast betting. 14
BY repealing and reenacting, with amendments, 15
Article – Business Regulation 16
Section 11–210(b), 11–815 through 11–820, 11–822 through 11–826, 11–828, 11–831, 17
and 11–832 18
Annotated Code of Maryland 19
(2015 Replacement Volume and 2023 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – Business Regulation 22
Section 11–821 and 11–827 23
Annotated Code of Maryland 24
(2015 Replacement Volume and 2023 Supplement) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27
2 SENATE BILL 627
Article – Business Regulation 1
11–210. 2
(b) The Commission may not adopt regulations that allow: 3
(1) racing a breed of horse not now authorized by law; or 4
(2) holding currently unauthorized: 5
(i) intertrack betting; OR 6
(ii) [off–track betting; or 7
(iii)] telephone betting other than telephone account betting. 8
11–815. 9
(a) In this part the following words have the meanings indicated. 10
(b) “AGENCY” MEANS THE STATE LOTTERY AND GAMING CONTROL 11
AGENCY. 12
(C) “Permit” means a permit granted under this part to hold satellite simulcast 13
betting. 14
[(c)] (D) “Satellite simulcast betting” means: 15
(1) pari–mutuel betting at a satellite simulcast facility in the State on a 16
race that is simulcast from a sending track by: 17
(I) a mile thoroughbred racing licensee, a harness racing licensee, 18
or the State Fair Society; OR 19
(II) AN ENTITY LICENSED T O CONDUCT HORSE RACING IN 20
DELAWARE, PENNSYLVANIA , VIRGINIA, OR WEST VIRGINIA; and 21
(2) transmission of the pari–mutuel information regarding bets at the 22
satellite simulcast facility to the sending track. 23
11–816. 24
(a) The [Commission] AGENCY may approve satellite simulcast facilities that 25
may conduct satellite simulcast betting. 26
SENATE BILL 627 3
(b) This part does not authorize satellite simulcast betting at or through the 1
direct use of lottery terminals in the State. 2
(c) The Commission has jurisdiction over all satellite simulcast betting and other 3
activities at a satellite simulcast facility to the same extent as when live racing is held by 4
a licensee. 5
11–817. 6
(a) A person must have a permit granted by the [Commission] AGENCY 7
whenever the person holds satellite simulcast betting. 8
(b) (1) Except as provided in paragraph (2) of this subsection, nothing in this 9
Part III of this subtitle may preempt local zoning laws or ordinances. 10
(2) The use of a facility for satellite simulcast betting is not required to be 11
submitted to or approved by any county or municipal zoning board, authority, or unit if the 12
facility is properly zoned and operating for the following activities: 13
(i) operation of a video lottery facility; 14
(ii) operation of a sports wagering facility; or 15
(iii) operation of electronic bingo or electronic tip jar machines. 16
11–818. 17
(a) Any person may apply for a permit. 18
(b) An applicant for a permit shall submit to the [executive director] DIRECTOR 19
of the [Commission] AGENCY an application in the form that the [Commission] AGENCY 20
requires. 21
(c) Except as provided in subsection (e) of this section, the [Commission] 22
AGENCY shall conduct a personal and financial background check of an applicant for a 23
permit including: 24
(1) a review, by a certified public accountant, of the certified financial 25
statements of the applicant, including contingent or pledged liabilities, sufficient to 26
determine the ability of the applicant to purchase or lease, and develop and maintain the 27
satellite simulcast facility for which the permit is sought; 28
(2) an income statement of the applicant for the most recent year; 29
(3) a statement of financial and related records of any person in which the 30
applicant has at least a majority interest; 31
4 SENATE BILL 627
(4) a disclosure of all financial interests in horse racing and any other 1
legalized betting activity; 2
(5) the disclosure of each person who is a beneficial owner of the applicant; 3
(6) with the assistance of federal, State, and local law enforcement 4
authorities, a criminal background review; and 5
(7) a character review. 6
(d) The [Commission] AGENCY shall adopt regulations establishing uniform 7
procedures for conducting the personal and financial background check required by this 8
section. 9
(e) The [Commission] AGENCY may waive all or any portion of the review that it 10
determines to be appropriate for any applicant that is: 11
(1) a licensee; 12
(2) a video lottery operation licensee under Title 9, Subtitle 1A of the State 13
Government Article; or 14
(3) a sports wagering facility licensee under Title 9, Subtitle 1E of the State 15
Government Article. 16
11–819. 17
(a) The factors that the [Commission] AGENCY shall consider in deciding 18
whether to grant a permit shall include: 19
(1) the needs and convenience of the public; 20
(2) whether the satellite simulcast facility: 21
(i) would be expected to interfere unreasonably with attendance at 22
tracks; and 23
(ii) meets the requirements of § 11–825(a) of this subtitle; 24
(3) the desires of the political subdivision where the proposed satellite 25
simulcast facility is to be located; 26
(4) the interests of the racing industry; and 27
(5) other matters that the [Commission] AGENCY finds appropriate. 28
(b) Before granting a permit, the [Commission] AGENCY shall: 29 SENATE BILL 627 5
(1) hold a public hearing within 10 miles of the proposed satellite simulcast 1
facility; 2
(2) advertise the date, time, and location of the public hearing in a local 3
publication at least 30 days before the public hearing; 4
(3) provide written notice of the date, time, and location of the public 5
hearing to each of the Senators, Delegates, and county–elected officials that represent the 6
jurisdiction within which the proposed satellite simulcast betting facility is to be located; 7
(4) post notice of the public hearing on the [Commission’s Web site] 8
AGENCY’S WEBSITE at least 30 days before the public hearing; 9
(5) require the applicant, at least 30 days before the public hearing, to post 10
a sign in a conspicuous location at the facility for which the application for the permit was 11
submitted stating that an application is pending for use of the facility for satellite simulcast 12
betting and specifying the date, time, and location of the public hearing; and 13
(6) request from the applicant a list of community associations that were 14
notified of the public hearing. 15
11–820. 16
(a) The [Commission] AGENCY shall grant a permit to each applicant whose 17
application the [Commission] AGENCY approves after the applicant pays the permit fee 18
that the [Commission] AGENCY requires. 19
(b) A permit shall state the specific location where the permit applies. 20
(c) If the [Commission] AGENCY approves, an applicant for a permit may change 21
the location for which a satellite simulcast facility is being applied. 22
11–821. 23
A permit entitles the holder to hold satellite simulcast betting at the satellite 24
simulcast facility specified in the permit, but does not give the permit holder an ownership 25
right to the permit or the simulcast signal. 26
11–822. 27
(a) The [Commission] AGENCY shall set the term of each permit. 28
(b) If the [Commission] AGENCY approves, a permit may be transferred to 29
another person if: 30
6 SENATE BILL 627
(1) the satellite simulcasting facility remains at the same location; and 1
(2) the person complies with all regulations of the Commission established 2
under § 11–316 of this title for the purchase or transfer of an entity licensed to conduct 3
racing. 4
11–823. 5
[A] THE AGENCY SHALL ADOPT RE GULATIONS REQUIRING A permit holder 6
[shall] TO keep records of ownership and submit annual reports of ownership [as required 7
under] IN A MANNER CONSISTENT WITH § 11–314 of this title. 8
11–824. 9
[Applicants for and holders of permits are subject to] THE AGENCY SHALL ADOPT 10
REGULATIONS CONCERNI NG the denial of [license] LICENSES and disciplinary 11
provisions [of] THAT ARE CONSISTENT WITH § 11–308 of this title. 12
11–825. 13
(a) A satellite simulcast facility: 14
(1) shall be in premises owned or leased by a permit holder; AND 15
(2) [may not be within a 35–mile radius of any mile thoroughbred track or 16
harness track unless approved by the track licensee, the group that represents a majority 17
of the applicable owners and trainers licensed in the State and the group that represents a 18
majority of the applicable breeders in the State, considered separately; 19
(3) unless the track agrees otherwise, may not operate during hours on 20
those days that racing with pari–mutuel betting is permitted at a racetrack located in this 21
State within a 35–mile radius of the satellite simulcast facility; and 22
(4)] shall offer pari–mutuel betting facilities and amenities that the 23
[Commission] AGENCY finds are appropriate for the area where the satellite simulcast 24
facility is located. 25
(b) (1) (I) [A] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 26
PARAGRAPH , A mile thoroughbred racing licensee [or], a harness racing licensee, OR AN 27
ENTITY LICENSED TO C ONDUCT HORSE RACING IN DELAWARE, PENNSYLVANIA , 28
VIRGINIA, OR WEST VIRGINIA: 29
[(i)] 1. shall own or lease the pari–mutuel betting equipment at a 30
satellite simulcast facility; and 31
SENATE BILL 627 7
[(ii)] 2. except as provided in paragraph (2) of this subsection, 1
shall, with its employees, operate the equipment. 2
(II) A SATELLITE SIMULCAST FACILITY WITH AN AGREEMENT 3
OR CONTRACT WITH A SENDING TRACK IN ANOTHER STATE MAY: 4
1. OWN OR LEASE THE PAR I–MUTUEL BETTING 5
EQUIPMENT; AND 6
2. EXCEPT AS PROVIDED I N PARAGRAPH (2) OF THIS 7
SUBSECTION, OPERATE THE EQUIPMEN T. 8
(2) (i) In this paragraph, “sports wagering licensee” has the meaning 9
stated in § 9–1E–01 of the State Government Article. 10
(ii) Subject to the approval of the Commission and the State Lottery 11
and Gaming Control Commission: 12
1. a self–service kiosk at a satellite simulcast facility that is 13
located in a sports wagering facility may accept both satellite simulcast bets and sports 14
wagers, provided that the kiosk separately accounts for the different types of wagers and 15
meets all specifications and requirements established by regulation by the State Lottery 16
and Gaming Control Commission; and 17
2. a mile thoroughbred racing licensee or a harness racing 18
licensee may enter into an agreement with a sports wagering licensee authorizing the 19
employees of the sports wagering licensee to operate the pari–mutuel betting equipment 20
and to accept pari–mutuel bets on horse racing in a satellite simulcast facility. 21
(c) A mile thoroughbred racing licensee or a harness racing licensee shall submit 22
to the [Commission] AGENCY all contracts and agreements relating to satellite simulcast 23
betting under this subtitle. 24
(d) (1) The [Commission] AGENCY shall periodically be assured by permit 25
holders that facilities continue to meet the requirements of this section. 26
(2) (i) The [Commission] AGENCY shall inspect satellite simulcast 27
facilities at least four times each year to determine if the permit holders are continuing to 28
comply with the provisions of this section. 29
(ii) The inspections under this subsection shall include evaluations 30
of the financial and physical conditions of each satellite simulcast facility. 31
(3) If the [Commission] AGENCY finds that a permit holder is not 32
complying with the provisions of this section, the [Commission] AGENCY may impose a 33 8 SENATE BILL 627
penalty on the permit holder similar to those penalties levied on licensees as provided under 1
§ 11–308 of this title. 2
11–826. 3
(a) [All] FOR A SATELLITE SIMUL CAST FACILITY WHERE THE SENDING 4
TRACK IS IN THE STATE: 5
(1) ALL money bet at a satellite simulcast facility shall be included in the 6
applicable mutuel pools at the sending track[.]; AND 7
[(b)] (2) [Except] EXCEPT as provided in § 11–827 of this part, the breakage, 8
State tax, and takeout on all satellite simulcast betting shall be computed in the way 9
normally applicable to pari–mutuel betting on a race at the sending track. 10
(B) FOR A SATELLITE SIMUL CAST FACILITY WHERE THE SENDING TRACK IS 11
LICENSED IN ANOTHER STATE, ALL MONEY BET AT THE SATELLITE SIMULCAST 12
FACILITY SHALL BE SU BJECT TO THE STATE TAX. 13
11–827. 14
After the respective portions have been retained by each person listed below, those 15
persons may allocate, from the takeout at the satellite simulcast facility, the costs of 16
operating a satellite simulcast facility and holding satellite simulcast betting: 17
(1) the licensee of the sending track, from the licensee’s share; 18
(2) the group that represents a majority of the applicable owners and 19
trainers licensed in the State, from the purse share; and 20
(3) the group that represents a majority of the applicable breeders in the 21
State, from the bred fund share. 22
11–828. 23
(a) A satellite simulcast facility shall transmit directly to the sending track IN 24
THE STATE all pari–mutuel information about the money bet at the satellite simulcast 25
facility. 26
(b) A sending track IN THE STATE shall incorporate this information with 27
information on pari–mutuel betting at the sending track. 28
11–831. 29
The [Commission] AGENCY shall include in its annual report to the [Legislative 30
Policy Committee of the Maryland General Assembly] GOVERNOR: 31 SENATE BILL 627 9
(1) the effect of satellite simulcast betting on the racing industry in the 1
State; 2
(2) an appraisal of each permit holder, taking into consideration the results 3
of inspections required under this section and any financial information that is submitted 4
to the [Commission] AGENCY; 5
(3) if any additional permit has been granted under this section: 6
(i) the reasons for granting the permit; and 7
(ii) the anticipated impact of the new facility on existing permit 8
holders and racing licensees; and 9
(4) if an application for a permit or permit renewal has been denied: 10
(i) the reasons for denying the permit or renewal; and 11
(ii) the impact on racing licensees if the [Commission] AGENCY 12
denied a permit renewal application. 13
11–832. 14
The [Commission] AGENCY shall adopt regulations to: 15
(1) define the criteria for applicants for a satellite simulcast betting permit, 16
which may include a nonrefundable application fee; 17
(2) define allowable costs of operations under § 11–827 of this part; and 18
(3) otherwise carry out this part. 19
SECTION 2. AND BE IT FURTHER ENACTED, That : 20
(a) Except as provided in subsection (b) of this section, this Act shall be construed 21
to apply only prospectively and may not be interpreted to affect the validity or term of any 22
permit for a satellite simulcast betting facility issued or renewed before the effective date 23
of this Act. 24
(b) This Act shall apply to and be interpreted to affect an application for a permit 25
for a satellite simulcast betting facility in process on the effective date of this Act. 26
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
October 1, 2024. 28