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.
*hb0328*
HOUSE BILL 328
C7 5lr1242
CF SB 541
By: Delegate Ebersole Delegates Ebersole, Griffith, and Vogel
Introduced and read first time: January 10, 2025
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 4, 2025
CHAPTER ______
AN ACT concerning 1
State Lottery – Instant Ticket Lottery Machines – Veterans’ and Fraternal 2
Organizations 3
FOR the purpose of authorizing the Director of the State Lottery and Gaming Control 4
Agency to issue certain fraternal organizations a license for not more than a certain 5
number of instant ticket lottery machines; altering the distribution of proceeds from 6
certain instant ticket lottery machine sales by veterans’ organizations; providing for 7
the distribution of proceeds from certain instant ticket lottery machine sales by 8
fraternal organizations; authorizing, instead of requiring, the Director to consider 9
certain information before issuing certain licenses; repealing a requirement that 10
certain veterans’ organizations purchase or lease certain instant ticket lottery 11
machines; prohibiting certain fraternal organizations from operating an instant 12
ticket lottery machine in certain locations; altering certain requirements concerning 13
the conduct of gaming through instant ticket lottery machines; and generally 14
relating to the operation of instant ticket lottery machines in the State. 15
BY repealing and reenacting, with amendments, 16
Article – State Government 17
Section 9–112 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2024 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
2 HOUSE BILL 328
Article – State Government 1
9–112. 2
(a) (1) In this section[, “veterans’] THE FOLLOWING WORDS HAVE THE 3
MEANINGS INDICATED . 4
(2) “ACTIVE MEMBERS ” MEANS INDIVIDUALS WH O ARE RECOGNIZED 5
BY A FRATERNAL ORGAN IZATION AS DUES –PAYING MEMBERS OR LI FETIME 6
MEMBERS. 7
(3) (I) “FRATERNAL ORGANIZATIO N” MEANS A NONPROFIT 8
ORGANIZATION THAT : 9
1. A. IS TAX EXEMPT AND OR GANIZED AS A 10
FRATERNAL OR SORORAL ORGANIZATION UNDER § 501(C)(7) OR § 501(C)(8) OF THE 11
INTERNAL REVENUE CODE; 12
B. OWNS OR LEASES A PRO PERTY; AND 13
C. HAS A BONA FIDE MEMB ERSHIP OF AT LEAST 300 14
ACTIVE MEMBERS OR HA S BEEN LOCATED IN A COUNTY IN WHICH SUBS ECTION (D) 15
OF THIS SECTION APPL IES FOR AT LEAST 5 YEARS BEFORE THE ORG ANIZATION 16
APPLIES FOR A LICENS E UNDER SUBSECTION (D) OF THIS SECTION; OR 17
2. IS INDEPENDENT AND T HE MEMBERSHIP OF WHI CH 18
COMPRISES SOLELY GRA DUATE MEMBERS OF A N ATIONWIDE FRATERNITY OR 19
SORORITY THAT IS TAX EXEMPT UNDER § 501(C)(7) OR § 501(C)(8) OF THE 20
INTERNAL REVENUE CODE. 21
(II) “FRATERNAL ORGANIZATIO N” DOES NOT INCLUDE : 22
1. ANY COLLEGE OR HIGH SCHOOL FRATERNITY OR 23
SORORITY; OR 24
2. ANY OTHER FRATERNITY OR SORORITY THE 25
MEMBERSHIP OF WHICH IS RESTRICTED IN WHO LE OR IN PART TO STU DENTS OR 26
GRADUATES OF AN EDUC ATIONAL INSTITUTION OR A PROFESSIONAL SC HOOL. 27
(4) “VETERANS’ organization” means an organization that is tax exempt 28
and organized as a veterans’ organization under § 501(c)(19) or § 501(c)(4) of the Internal 29
Revenue Code. 30
(b) Except as provided in subsection (d) of this section, in accordance with the 31
regulations of the Agency and this subtitle, the Director shall issue licenses to the persons 32 HOUSE BILL 328 3
and governmental units that will best serve the public convenience and promote the sale of 1
State lottery tickets or shares. 2
(c) Before issuing a license to an applicant, the Director [shall] MAY consider 3
such factors as: 4
(1) the financial responsibility and security of the applicant and the 5
business or activity of the applicant; 6
(2) the accessibility of the place of business or activity to the public; 7
(3) the sufficiency of existing licenses to serve the public convenience; and 8
(4) the volume of expected sales. 9
(d) (1) This subsection does not apply in: 10
(i) Caroline County; 11
(ii) Cecil County; 12
(iii) Dorchester County; 13
(iv) Kent County; 14
(v) Queen Anne’s County; 15
(vi) Somerset County; 16
(vii) Talbot County; 17
(viii) Wicomico County; and 18
(ix) Worcester County. 19
(2) (i) Subject to subparagraph (ii) of this paragraph, the Director may 20
issue a license under this subtitle for not more than five instant ticket lottery machines to 21
an applicant that is a veterans’ organization OR FRATERNAL ORGANIZ ATION. 22
(ii) A veterans’ organization OR FRATERNAL ORGANIZ ATION that 23
is issued a license under this subsection shall locate and operate its instant ticket lottery 24
machines at its principal meeting hall in the county in which the veterans’ organization OR 25
FRATERNAL ORGANIZATI ON is located. 26
4 HOUSE BILL 328
(III) AS A RETAILER UNDER T HE INSTANT TICKET LO TTERY 1
MACHINE PROGRAM , A VETERANS’ ORGANIZATION OR FRATERNAL ORGANIZATI ON 2
SHALL BE COMPENSATED BASED ON A PERCENTAG E OF PROCEEDS . 3
(3) (I) After deduction of any [commission and] validation prize payout 4
as provided under § 9–117 of this subtitle, a veterans’ organization issued a license under 5
this subsection shall RETAIN 50% OF THE NET PROCEEDS AND credit the remaining 6
receipts NET PROCEEDS from the sale of tickets from instant ticket lottery machines to 7
the State Lottery Fund established under § 9–118 of this subtitle. 8
(II) ON A PROPERLY APPROVE D TRANSMITTAL, THE AGENCY 9
SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 10
TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A VE TERANS’ 11
ORGANIZATION : 12
1. 50% TO VETERANS ’ ORGANIZATIONS 5% TO THE 13
MARYLAND VETERANS TRUST FUND ESTABL ISHED UNDER § 9–913 OF THIS TITLE; 14
2. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 15
THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 16
AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 17
3. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 18
FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 19
(III) AFTER DEDUCTION OF A VALIDATION PRIZE PAY OUT, A 20
FRATERNAL ORGANIZATI ON ISSUED A LICENSE UNDER THIS SUBSECTIO N SHALL 21
REMIT THE PROCEEDS F ROM THE SALE OF TICK ETS FROM INSTANT TIC KET LOTTERY 22
MACHINES: 23
1. RETAIN 25% OF THE NET PROCEEDS FOR 24
UNDERGRADUATE , GRADUATE, OR TRADE SCHOOL SCHO LARSHIPS OR CAPITAL 25
IMPROVEMENTS , CAPITAL OUTLAYS , ACQUISITIONS, OR EXISTING COMMUNIT Y 26
OUTREACH PROGRAMS AN D RESOURCES ; AND 27
2. REMIT THE REMAINDER TO THE AGENCY TO BE 28
DISTRIBUTED AS PROVI DED IN SUBPARAGRAPH (IV) OF THIS PARAGRAPH . 29
(IV) ON A PROPERLY APPROVE D TRANSMITTAL , THE AGENCY 30
SHALL PAY THE FOLLOW ING AMOUNTS FROM THE NET PROCEEDS OF SALE S OF 31
TICKETS FROM INSTANT TICKET LOTTERY MACHI NES OPERATED BY A FR ATERNAL 32
ORGANIZATION : 33
HOUSE BILL 328 5
1. 20% TO THE HOMELESSNESS SOLUTIONS PROGRAM 1
IN THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT , TO BE USED, 2
IN CONSULTATION WITH THE DEPARTMENT OF VETERANS AND MILITARY 3
FAMILIES, TO ASSIST VETERANS A ND FAMILIES OF VETER ANS, WITH PRIORITY 4
GIVEN TO: 5
A. WOMEN VETERANS WHO A RE HOMELESS OR AT RI SK 6
OF HOMELESSNESS ; 7
B. SINGLE–PARENT VETERAN FAMIL IES; AND 8
C. VETERANS WHO ARE VIC TIMS OF DOMESTIC 9
VIOLENCE; AND 10
2. FROM THE REMAINING P ROCEEDS OF SALES OF 11
TICKETS FROM INSTANT TICKET LOTTE RY MACHINES OPERATED BY A FRATERNAL 12
ORGANIZATION : 13
A. 25% TO THE FRATERNAL ORG ANIZATION TO BE USED 14
FOR UNDERGRADUATE , GRADUATE, OR TRADE SCHOOL SCHO LARSHIPS OR CAPITAL 15
IMPROVEMENTS , CAPITAL OUTLAY , ACQUISITIONS, OR EXISTING COMMUNIT Y 16
OUTREACH PROGRAMS AN D RESOURCES ; 17
2. 5% TO THE MARYLAND VETERANS TRUST FUND 18
ESTABLISHED UNDER § 9–913 OF THIS TITLE; 19
B. 3. TO THE AGENCY, AN AMOUNT NECESSARY TO PAY FOR 20
THE PURCHASE OR LEAS E OF THE INSTANT TIC KET LOTTERY MACHINES AND 21
AGENCY ADMINISTRATION FEES FOR THE PROGRAM ; AND 22
C. 4. ANY REMAINING AMOUNT TO THE EDUCATION TRUST 23
FUND ESTABLISHED UNDE R § 9–1A–30 OF THIS TITLE. 24
(4) [(i) Subject to subparagraph (ii) of this paragraph, a veterans’ 25
organization issued a license under this subsection shall purchase or lease the instant 26
ticket lottery machines to be used by the veterans’ organization. 27
(ii)] An organization may not use receipts NET PROCEEDS from the 28
sale of tickets from instant ticket lottery machines that would otherwise be [credited to the 29
State Lottery Fund] DISTRIBUTED AS REQUI RED UNDER PARAGRAPH (3) OF THIS 30
SUBSECTION for the costs of purchasing or leasing instant ticket lottery machines. 31
(5) (I) The Director may adopt regulations to implement the provisions 32
of this subsection that include restricting the location of instant ticket lottery machines in 33 6 HOUSE BILL 328
areas of a veterans’ organization’s OR A FRATERNAL ORGAN IZATION’S public meeting 1
hall that is accessible to the public. 2
(II) A FRATERNAL ORGANIZATI ON MAY NOT LOCATE OR 3
OPERATE ITS INSTANT TICKET LOTTERY MACHI NES IN A MEETING HAL L THAT IS: 4
1. LOCATED ON OR AFFILI ATED WITH THE CAMPUS OF 5
AN INSTITUTION OF HI GHER EDUCATION ; OR 6
2. LOCATED IN A BUILDIN G WHERE STUDENTS OF AN 7
INSTITUTION OF HIGHE R EDUCATION RESIDE . 8
(6) The Agency shall ensure that the element of chance in the conduct of 9
the gaming through the instant ticket lottery machines established under this subsection 10
is consistent with the holding in the case of Chesapeake Amusements Inc. v. Riddle, 363 11
Md. 16 (2001), in that the element of chance must be CONTAINED wholly within the 12
pre–printed PREDETERMINED instant lottery ticket, and that player enhancements in an 13
instant ticket lottery machine may not affect the element of chance being wholly within the 14
pre–printed instant lottery ticket. 15
(e) The Director may not issue a license to: 16
(1) a person or governmental unit to engage in business primarily as a 17
licensed agent; or 18
(2) an individual who is under the age of 21 years. 19
(f) The Commission may hear and decide an appeal of a denial of a license. 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
1, 2025. 22
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.