1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *sb1033* |
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6 | 6 | | |
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7 | 7 | | SENATE BILL 1033 |
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8 | 8 | | C7 5lr3506 |
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9 | 9 | | |
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10 | 10 | | By: Senator Benson |
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11 | 11 | | Introduced and read first time: February 9, 2025 |
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12 | 12 | | Assigned to: Rules |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Gaming – Online Sports Wagering – Repeal 2 |
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19 | 19 | | |
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20 | 20 | | FOR the purpose of repealing online sports wagering; requiring the State Lottery and 3 |
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21 | 21 | | Gaming Control Commission, notwithstanding a certain provision of law, to refund 4 |
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22 | 22 | | the application fee submitted by certain applicants for and holders of mobile sports 5 |
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23 | 23 | | wagering licenses under certain circumstances; and generally relating to the repeal 6 |
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24 | 24 | | of online sports wagering. 7 |
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25 | 25 | | |
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26 | 26 | | BY repealing 8 |
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27 | 27 | | Article – State Government 9 |
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28 | 28 | | Section 9–1E–01(e) through (g) and (k) and 9–1E–10 10 |
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29 | 29 | | Annotated Code of Maryland 11 |
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30 | 30 | | (2021 Replacement Volume and 2024 Supplement) 12 |
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31 | 31 | | |
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32 | 32 | | BY renumbering 13 |
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33 | 33 | | Article – State Government 14 |
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34 | 34 | | Section 9–1E–01(h) through (j) and (l) through (p) and 9–1E–11 through 9–1E–17 15 |
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35 | 35 | | to be Section 9–1E–01(e) through (l) and 9–1E–10 through 9–1E–16, respectively 16 |
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36 | 36 | | Annotated Code of Maryland 17 |
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37 | 37 | | (2021 Replacement Volume and 2024 Supplement) 18 |
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38 | 38 | | |
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39 | 39 | | BY repealing and reenacting, with amendments, 19 |
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40 | 40 | | Article – Business Regulation 20 |
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41 | 41 | | Section 11–818(e)(3) 21 |
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42 | 42 | | Annotated Code of Maryland 22 |
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43 | 43 | | (2024 Replacement Volume) 23 |
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44 | 44 | | |
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45 | 45 | | BY repealing and reenacting, with amendments, 24 |
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46 | 46 | | Article – State Government 25 |
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47 | 47 | | Section 9–1E–04(b)(1), 9–1E–05(a), (c)(2)(ii), and (d)(3), 9–1E–06(a), (b), and (c)(3), 26 |
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48 | 48 | | 9–1E–07(a)(2)(v), (c), (d)(2), and (i), and 9–1E–09 27 2 SENATE BILL 1033 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | Annotated Code of Maryland 1 |
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52 | 52 | | (2021 Replacement Volume and 2024 Supplement) 2 |
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53 | 53 | | |
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54 | 54 | | BY repealing and reenacting, with amendments, 3 |
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55 | 55 | | Article – State Government 4 |
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56 | 56 | | Section 9–1E–10, 9–1E–11(b), 9–1E–13(c), and 9–1E–14(f) and (h) 5 |
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57 | 57 | | Annotated Code of Maryland 6 |
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58 | 58 | | (2021 Replacement Volume and 2024 Supplement) 7 |
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59 | 59 | | (As enacted by Section 2 of this Act) 8 |
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60 | 60 | | |
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61 | 61 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9 |
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62 | 62 | | That Section(s) 9–1E–01(e) through (g) and (k) and 9–1E–10 of Article – State Government 10 |
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63 | 63 | | of the Annotated Code of Maryland be repealed. 11 |
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64 | 64 | | |
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65 | 65 | | SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 9–1E–01(h) 12 |
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66 | 66 | | through (j) and (l) through (p) and 9–1E–11 through 9–1E–17 of Article – State Government 13 |
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67 | 67 | | of the Annotated Code of Maryland be renumbered to be Section(s) 9–1E–01(e) through (l) 14 |
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68 | 68 | | and 9–1E–10 through 9–1E–16, respectively. 15 |
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69 | 69 | | |
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70 | 70 | | SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 16 |
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71 | 71 | | as follows: 17 |
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72 | 72 | | |
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73 | 73 | | Article – Business Regulation 18 |
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74 | 74 | | |
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75 | 75 | | 11–818. 19 |
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76 | 76 | | |
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77 | 77 | | (e) The Commission may waive all or any portion of the review that it determines 20 |
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78 | 78 | | to be appropriate for any applicant that is: 21 |
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79 | 79 | | |
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80 | 80 | | (3) a sports wagering [facility] licensee under Title 9, Subtitle 1E of the 22 |
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81 | 81 | | State Government Article. 23 |
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82 | 82 | | |
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83 | 83 | | Article – State Government 24 |
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84 | 84 | | |
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85 | 85 | | 9–1E–04. 25 |
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86 | 86 | | |
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87 | 87 | | (b) In accordance with this subtitle, the Commission shall adopt regulations that 26 |
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88 | 88 | | establish: 27 |
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89 | 89 | | |
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90 | 90 | | (1) subject to [§ 9–1E–15] § 9–1E–14 of this subtitle, the form and content 28 |
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91 | 91 | | of an application for any license required under this subtitle; 29 |
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92 | 92 | | |
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93 | 93 | | 9–1E–05. 30 |
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94 | 94 | | |
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95 | 95 | | (a) The following persons shall be licensed under this subtitle: 31 |
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96 | 96 | | |
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97 | 97 | | (1) a person that operates sports wagering; 32 SENATE BILL 1033 3 |
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98 | 98 | | |
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99 | 99 | | |
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100 | 100 | | |
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101 | 101 | | (2) a person that operates sports wagering on behalf of a sports wagering 1 |
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102 | 102 | | licensee[, including an online sports wagering operator]; 2 |
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103 | 103 | | |
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104 | 104 | | (3) a person not licensed under item (1) or (2) of this subsection that 3 |
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105 | 105 | | manages, operates, supplies, provides security for, or provides service, maintenance, or 4 |
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106 | 106 | | repairs for sports wagering equipment and devices; and 5 |
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107 | 107 | | |
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108 | 108 | | (4) an individual directly employed in the operation of sports wagering by 6 |
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109 | 109 | | a sports wagering licensee if the individual does not otherwise hold a valid license under 7 |
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110 | 110 | | Subtitle 1A of this title. 8 |
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111 | 111 | | |
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112 | 112 | | (c) (2) Except as provided under this subtitle or in regulation, the Commission 9 |
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113 | 113 | | may not waive a requirement under paragraph (1) of this subsection that relates to: 10 |
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114 | 114 | | |
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115 | 115 | | (ii) a requirement of the Sports Wagering Application Review 11 |
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116 | 116 | | Commission under [§ 9–1E–15] § 9–1E–14 of this subtitle. 12 |
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117 | 117 | | |
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118 | 118 | | (d) (3) Except as provided under this subtitle or in regulation, the Commission 13 |
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119 | 119 | | may not grant an exemption or a waiver of a licensing requirement adopted by the Sports 14 |
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120 | 120 | | Wagering Application Review Commission in accordance with [§ 9–1E–15(h)(2)] § 15 |
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121 | 121 | | 9–1E–14(H)(2) of this subtitle to implement remedial measures based on the findings of 16 |
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122 | 122 | | a study of the sports wagering industry and market. 17 |
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123 | 123 | | |
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124 | 124 | | 9–1E–06. 18 |
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125 | 125 | | |
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126 | 126 | | (a) (1) On an award of a license by the Sports Wagering Application Review 19 |
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127 | 127 | | Commission established under [§ 9–1E–15] § 9–1E–14 of this subtitle, the Commission 20 |
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128 | 128 | | shall: 21 |
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129 | 129 | | |
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130 | 130 | | (i) issue a Class A–1 sports wagering [facility] license to an 22 |
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131 | 131 | | applicant that meets the requirements for licensure under this subtitle who is: 23 |
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132 | 132 | | |
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133 | 133 | | 1. a video lottery operator with more than 1,000 video lottery 24 |
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134 | 134 | | terminals; or 25 |
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135 | 135 | | |
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136 | 136 | | 2. A. the owner, or the designee of the owner, of a 26 |
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137 | 137 | | stadium in Prince George’s County that is primarily used for professional football (NFL); 27 |
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138 | 138 | | |
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139 | 139 | | B. the owner, or the designee of the owner, of a professional 28 |
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140 | 140 | | football (NFL) franchise that is a lessee of a stadium in Baltimore City; 29 |
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141 | 141 | | |
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142 | 142 | | C. the owner, or the designee of the owner, of a professional 30 |
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143 | 143 | | major league baseball franchise that is a lessee of a stadium in Baltimore City; 31 |
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144 | 144 | | 4 SENATE BILL 1033 |
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145 | 145 | | |
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146 | 146 | | |
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147 | 147 | | D. the owner, or the designee of the owner, of a professional 1 |
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148 | 148 | | hockey league (NHL) franchise, that is a lessee of a stadium in the State; 2 |
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149 | 149 | | |
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150 | 150 | | E. the owner, or the designee of the owner, of a professional 3 |
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151 | 151 | | basketball association (NBA) franchise, that is a lessee of a stadium in the State; or 4 |
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152 | 152 | | |
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153 | 153 | | F. the owner, or the designee of the owner, of a professional 5 |
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154 | 154 | | soccer league (MLS) franchise, that is a lessee of a stadium in the State; 6 |
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155 | 155 | | |
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156 | 156 | | (ii) issue a Class A–2 sports wagering [facility] license to an 7 |
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157 | 157 | | applicant that meets the requirements for licensure under this subtitle who is: 8 |
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158 | 158 | | |
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159 | 159 | | 1. a video lottery operator with 1,000 or fewer video lottery 9 |
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160 | 160 | | terminals; or 10 |
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161 | 161 | | |
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162 | 162 | | 2. a horse racing licensee; 11 |
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163 | 163 | | |
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164 | 164 | | (iii) subject to paragraphs (2) and (3) of this subsection, issue a Class 12 |
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165 | 165 | | B–1 sports wagering [facility] license to any applicant who meets the requirements for 13 |
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166 | 166 | | licensure under this subtitle and who is not eligible for a Class B–2 sports wagering 14 |
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167 | 167 | | [facility] license; AND 15 |
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168 | 168 | | |
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169 | 169 | | (iv) subject to paragraphs (2) and (3) of this subsection, issue a Class 16 |
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170 | 170 | | B–2 sports wagering [facility] license to any applicant who is a person with less than: 17 |
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171 | 171 | | |
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172 | 172 | | 1. 25 full–time equivalent employees; or 18 |
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173 | 173 | | |
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174 | 174 | | 2. $3,000,000 in annual gross receipts[; and 19 |
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175 | 175 | | |
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176 | 176 | | (v) issue not more than 60 mobile sports wagering licenses to any 20 |
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177 | 177 | | applicant who meets the requirements for licensure under this subtitle]. 21 |
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178 | 178 | | |
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179 | 179 | | (2) (i) The Commission shall issue a Class B–1 or Class B–2 sports 22 |
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180 | 180 | | wagering [facility] license to an applicant that meets the requirements for licensure under 23 |
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181 | 181 | | this subtitle who is: 24 |
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182 | 182 | | |
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183 | 183 | | 1. the holder of a license issued by the State Racing 25 |
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184 | 184 | | Commission under § 11–524 of the Business Regulation Article, including a subsidiary of 26 |
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185 | 185 | | the license holder; 27 |
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186 | 186 | | |
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187 | 187 | | 2. a person who is the owner or lessee of a facility approved 28 |
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188 | 188 | | for satellite simulcast betting before January 1, 2021, unless the satellite simulcast facility 29 |
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189 | 189 | | is located at a video lottery facility or a racetrack; and 30 |
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190 | 190 | | SENATE BILL 1033 5 |
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191 | 191 | | |
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192 | 192 | | |
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193 | 193 | | 3. a person who holds a commercial bingo license, if the 1 |
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194 | 194 | | facility at which the person operates commercial bingo was permitted to operate at least 2 |
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195 | 195 | | 200 electronic bingo machines or electronic tip jar machines on January 1, 2021. 3 |
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196 | 196 | | |
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197 | 197 | | (ii) In addition to the Class B–1 and B–2 sports wagering [facility] 4 |
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198 | 198 | | licenses issued in accordance with subparagraph (i) of this paragraph, the Commission may 5 |
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199 | 199 | | issue not more than 30 Class B–1 and Class B–2 sports wagering [facility] licenses under 6 |
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200 | 200 | | paragraph (1) of this subsection. 7 |
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201 | 201 | | |
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202 | 202 | | (3) (i) The Sports Wagering Application Review Commission 8 |
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203 | 203 | | established under [§ 9–1E–15] § 9–1E–14 of this subtitle may not award a Class B–1 or 9 |
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204 | 204 | | B–2 sports wagering [facility] license to an applicant: 10 |
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205 | 205 | | |
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206 | 206 | | 1. who is eligible to apply for a Class A–1 or A–2 sports 11 |
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207 | 207 | | wagering [facility] license under paragraph (1) of this subsection; 12 |
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208 | 208 | | |
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209 | 209 | | 2. who holds a Class A–1 or A–2 sports wagering [facility] 13 |
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210 | 210 | | license; or 14 |
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211 | 211 | | |
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212 | 212 | | 3. whose sports wagering facility will be located: 15 |
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213 | 213 | | |
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214 | 214 | | A. except as provided under subparagraph (ii) of this 16 |
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215 | 215 | | paragraph, within a 15–mile radius of a Class A–1 or A–2 sports wagering facility located 17 |
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216 | 216 | | in Allegany County, Cecil County, or Worcester County; 18 |
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217 | 217 | | |
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218 | 218 | | B. with respect to an application for a sports wagering 19 |
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219 | 219 | | [facility] license submitted before June 1, 2025, within a 15–mile radius of a Class B–1 or 20 |
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220 | 220 | | B–2 sports wagering facility licensed to a person described under paragraph (2)(i) of this 21 |
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221 | 221 | | subsection and located in Charles County; 22 |
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222 | 222 | | |
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223 | 223 | | C. with respect to an application for a sports wagering 23 |
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224 | 224 | | [facility] license submitted before June 1, 2025, within a 10–mile radius of a Class B–1 or 24 |
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225 | 225 | | B–2 sports wagering facility licensed to a person described under paragraph (2)(i) of this 25 |
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226 | 226 | | subsection and located in Carroll County; 26 |
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227 | 227 | | |
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228 | 228 | | D. with respect to an application for a sports wagering 27 |
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229 | 229 | | [facility] license submitted before June 1, 2025, within a 5–mile radius of a Class B–1 or 28 |
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230 | 230 | | B–2 sports wagering facility licensed to a person described under paragraph (2)(i) of this 29 |
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231 | 231 | | subsection and located in Frederick County; or 30 |
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232 | 232 | | |
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233 | 233 | | E. within a 1.5–mile radius of a Class A–1 or A–2 sports 31 |
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234 | 234 | | wagering facility located in a county not described under item A, B, C, or D of this item or 32 |
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235 | 235 | | any other Class B–1 or B–2 sports wagering facility. 33 |
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236 | 236 | | 6 SENATE BILL 1033 |
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237 | 237 | | |
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238 | 238 | | |
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239 | 239 | | (ii) 1. The prohibition under subparagraph (i)3A of this 1 |
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240 | 240 | | paragraph does not apply in Allegany County prior to the issuance of a Class A–1 or A–2 2 |
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241 | 241 | | sports wagering [facility] license in Allegany County. 3 |
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242 | 242 | | |
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243 | 243 | | 2. A Class B–1 or B–2 sports wagering [facility] license 4 |
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244 | 244 | | issued within a 15–mile radius of a Class A–1 or A–2 sports wagering facility in Allegany 5 |
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245 | 245 | | County may be renewed if the license was initially issued prior to the issuance of the Class 6 |
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246 | 246 | | A–1 or A–2 license. 7 |
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247 | 247 | | |
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248 | 248 | | (4) A for–profit entity, nonprofit organization, or public–private 8 |
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249 | 249 | | partnership operating at the racing location described under Title 11, Subtitle 7 of the 9 |
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250 | 250 | | Business Regulation Article located on lands owned by the Department of Natural 10 |
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251 | 251 | | Resources may apply for a Class B–1 or B–2 sports wagering [facility] license. 11 |
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252 | 252 | | |
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253 | 253 | | (5) If an applicant designates an entity to hold the license under paragraph 12 |
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254 | 254 | | (1)(i)2 of this subsection, the designee shall be considered the applicant and subject to the 13 |
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255 | 255 | | requirements of the application process. 14 |
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256 | 256 | | |
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257 | 257 | | [(6) In addition to any other person, an applicant for or holder of a Class 15 |
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258 | 258 | | A–1, A–2, B–1, or B–2 sports wagering facility license may apply for a mobile sports 16 |
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259 | 259 | | wagering license under this subsection.] 17 |
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260 | 260 | | |
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261 | 261 | | (b) (1) Except as provided in paragraph (2) of this subsection, an applicant for 18 |
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262 | 262 | | a sports wagering license shall pay to the Commission an application fee of: 19 |
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263 | 263 | | |
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264 | 264 | | (i) $2,000,000 for a Class A–1 sports wagering [facility] license; 20 |
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265 | 265 | | |
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266 | 266 | | (ii) $1,000,000 for a Class A–2 sports wagering [facility] license; 21 |
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267 | 267 | | |
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268 | 268 | | (iii) $250,000 for a Class B–1 sports wagering [facility] license; AND 22 |
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269 | 269 | | |
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270 | 270 | | (iv) $50,000 for a Class B–2 sports wagering [facility] license[; and 23 |
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271 | 271 | | |
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272 | 272 | | (v) $500,000 for a mobile sports wagering license]. 24 |
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273 | 273 | | |
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274 | 274 | | (2) The requirement to pay an application fee to the Commission under 25 |
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275 | 275 | | paragraph (1) of this subsection does not apply to an applicant for a Class A–2 sports 26 |
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276 | 276 | | wagering [facility] license that is a horse racing licensee described under § 11–510(b)(3) of 27 |
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277 | 277 | | the Business Regulation Article. 28 |
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278 | 278 | | |
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279 | 279 | | (c) (3) The license renewal fee is equal to 1% of the licensee’s average annual 29 |
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280 | 280 | | proceeds from sports wagering for the preceding 3–year period less any proceeds remitted 30 |
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281 | 281 | | by the licensee in accordance with [§ 9–1E–12] § 9–1E–11 of this subtitle. 31 |
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282 | 282 | | |
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283 | 283 | | 9–1E–07. 32 |
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284 | 284 | | SENATE BILL 1033 7 |
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285 | 285 | | |
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286 | 286 | | |
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287 | 287 | | (a) An applicant for a license under this subtitle shall submit to the Commission: 1 |
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288 | 288 | | |
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289 | 289 | | (2) if the applicant is applying for a sports wagering license, an affidavit 2 |
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290 | 290 | | attesting to: 3 |
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291 | 291 | | |
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292 | 292 | | (v) any other information considered necessary by the Commission 4 |
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293 | 293 | | or the Sports Wagering Application Review Commission established under [§ 9–1E–15] § 5 |
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294 | 294 | | 9–1E–14 of this subtitle. 6 |
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295 | 295 | | |
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296 | 296 | | (c) (1) This subsection does not apply to the application or license renewal fees 7 |
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297 | 297 | | for a sports wagering license required under § 9–1E–06 of this subtitle. 8 |
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298 | 298 | | |
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299 | 299 | | (2) [(i) Subject to subparagraph (ii) of this paragraph, the] THE 9 |
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300 | 300 | | Commission shall adopt regulations that establish an application fee and license renewal 10 |
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301 | 301 | | fee for a license under this subtitle. 11 |
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302 | 302 | | |
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303 | 303 | | [(ii) The application fee for an online sports wagering operator license 12 |
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304 | 304 | | may not be less than $5,000.] 13 |
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305 | 305 | | |
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306 | 306 | | (3) An applicant shall submit the application fee with the application. 14 |
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307 | 307 | | |
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308 | 308 | | (4) The term of the license is 5 years. 15 |
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309 | 309 | | |
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310 | 310 | | (d) On a properly approved transmittal prepared by the Commission, the 16 |
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311 | 311 | | Comptroller shall pay the following amounts from the application fees and license renewal 17 |
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312 | 312 | | fees collected by the Commission under this section and § 9–1E–06 of this subtitle: 18 |
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313 | 313 | | |
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314 | 314 | | (2) 5% of the fees collected for each Class A–1 and A–2 sports wagering 19 |
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315 | 315 | | [facility] license to the Small, Minority–Owned, and Women–Owned Business Sports 20 |
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316 | 316 | | Wagering Assistance Fund established under [§ 9–1E–16] § 9–1E–15 of this subtitle; and 21 |
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317 | 317 | | |
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318 | 318 | | (i) (1) The holder of a Class B–1 or B–2 sports wagering [facility] license [or 22 |
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319 | 319 | | a mobile sports wagering license] may only sell or transfer ownership of the license if the 23 |
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320 | 320 | | licensee was actively engaged in operating sports wagering in the State for at least 3 years 24 |
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321 | 321 | | immediately preceding the sale or transfer of the ownership of the license. 25 |
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322 | 322 | | |
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323 | 323 | | (2) Nothing in paragraph (1) of this subsection may be construed to limit 26 |
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324 | 324 | | the ability of the Commission to enforce this subtitle. 27 |
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325 | 325 | | |
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326 | 326 | | 9–1E–09. 28 |
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327 | 327 | | |
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328 | 328 | | (a) A sports wagering [facility] licensee may accept wagers on sporting events 29 |
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329 | 329 | | that are made: 30 |
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330 | 330 | | |
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331 | 331 | | (1) by an individual physically present: 31 |
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332 | 332 | | 8 SENATE BILL 1033 |
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333 | 333 | | |
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334 | 334 | | |
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335 | 335 | | (i) at a video lottery facility, if the sports wagering licensee is a video 1 |
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336 | 336 | | lottery operator; 2 |
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337 | 337 | | |
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338 | 338 | | (ii) at Pimlico Race Course or a race track located at Laurel Park, if 3 |
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339 | 339 | | the sports wagering licensee is a horse racing licensee; 4 |
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340 | 340 | | |
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341 | 341 | | (iii) subject to subsection [(d)] (B) of this section, at a stadium 5 |
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342 | 342 | | primarily used for professional football (NFL), professional major league baseball, 6 |
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343 | 343 | | professional hockey (NHL), professional basketball (NBA), or professional soccer (MLS), if 7 |
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344 | 344 | | the sports wagering licensee is the owner or a lessee or the designee of the owner or lessee 8 |
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345 | 345 | | of the stadium; 9 |
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346 | 346 | | |
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347 | 347 | | (iv) at the Maryland State Fairgrounds in Timonium, if the sports 10 |
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348 | 348 | | wagering licensee is the holder of a license issued by the State Racing Commission under § 11 |
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349 | 349 | | 11–524 of the Business Regulation Article, or a subsidiary of the license holder; 12 |
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350 | 350 | | |
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351 | 351 | | (v) at a satellite simulcast facility, if the sports wagering licensee is 13 |
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352 | 352 | | the owner or lessee of a satellite simulcast facility described under § 9–1E–06(a)(2) of this 14 |
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353 | 353 | | subtitle; 15 |
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354 | 354 | | |
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355 | 355 | | (vi) at a commercial bingo facility with at least 200 electronic bingo 16 |
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356 | 356 | | machines or electronic tip jar machines, if the sports wagering licensee is a commercial 17 |
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357 | 357 | | bingo operator described under § 9–1E–06(a)(2) of this subtitle; or 18 |
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358 | 358 | | |
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359 | 359 | | (vii) subject to subsection [(e)] (C) of this section, at the facility 19 |
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360 | 360 | | identified in the application approved by the Sports Wagering Application Review 20 |
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361 | 361 | | Commission, if the sports wagering licensee is a holder of a Class B–1 or B–2 sports 21 |
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362 | 362 | | wagering [facility] license; or 22 |
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363 | 363 | | |
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364 | 364 | | (2) on a self–service kiosk, device, or machine, approved by the 23 |
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365 | 365 | | Commission, located in a facility or at a location identified under item (1) of this subsection. 24 |
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366 | 366 | | |
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367 | 367 | | (b) [A mobile sports wagering licensee may accept wagers on sporting events that 25 |
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368 | 368 | | are made through online sports wagering by an individual physically located in the State. 26 |
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369 | 369 | | |
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370 | 370 | | (c) To participate in online sports wagering under this section, an individual shall 27 |
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371 | 371 | | register: 28 |
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372 | 372 | | |
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373 | 373 | | (1) in person at a facility or location identified under subsection (a)(1) of 29 |
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374 | 374 | | this section; or 30 |
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375 | 375 | | |
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376 | 376 | | (2) online using a website or mobile application approved by the 31 |
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377 | 377 | | Commission. 32 |
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378 | 378 | | |
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379 | 379 | | (d)] (1) Subject to paragraph (2) of this subsection, a sports wagering [facility] 33 |
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380 | 380 | | licensee may contract with any other sports wagering [facility] licensee to provide sports 34 SENATE BILL 1033 9 |
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381 | 381 | | |
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382 | 382 | | |
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383 | 383 | | wagering services on behalf of the licensee at a location where the licensee is authorized to 1 |
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384 | 384 | | accept wagers on sporting events. 2 |
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385 | 385 | | |
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386 | 386 | | (2) If a sports wagering licensee authorized to accept wagers at a stadium 3 |
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387 | 387 | | under subsection (a)(1)(iii) of this section contracts with a video lottery operator, or an 4 |
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388 | 388 | | affiliate or a subsidiary of that video lottery operator, to provide sports wagering services 5 |
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389 | 389 | | at the stadium, the licensee may contract only with a video lottery operator, or an affiliate 6 |
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390 | 390 | | or a subsidiary of that video lottery operator, that operates a video lottery facility located 7 |
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391 | 391 | | in the same county as the stadium. 8 |
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392 | 392 | | |
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393 | 393 | | [(e)] (C) A sports wagering [facility] licensee authorized to accept in–person 9 |
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394 | 394 | | wagers at the racing location described under Title 11, Subtitle 7 of the Business Regulation 10 |
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395 | 395 | | Article located on lands owned by the Department of Natural Resources may only accept 11 |
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396 | 396 | | wagers in the special event zone. 12 |
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397 | 397 | | |
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398 | 398 | | 9–1E–10. 13 |
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399 | 399 | | |
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400 | 400 | | (a) An individual may not wager on a sporting event and a sports wagering 14 |
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401 | 401 | | licensee may not accept a wager from an individual on a sporting event if the individual: 15 |
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402 | 402 | | |
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403 | 403 | | (1) is under the age of 21 years; 16 |
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404 | 404 | | |
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405 | 405 | | (2) is not physically present in the State; 17 |
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406 | 406 | | |
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407 | 407 | | (3) is an athlete, a coach, a referee, or a director or an employee of a sports 18 |
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408 | 408 | | governing entity or any of its member teams; 19 |
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409 | 409 | | |
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410 | 410 | | (4) is the direct or indirect legal or beneficial owner of 10% or more of a 20 |
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411 | 411 | | sports governing entity or any of its member teams if any member team of that sports 21 |
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412 | 412 | | governing entity participates in the sporting event; 22 |
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413 | 413 | | |
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414 | 414 | | (5) has access to certain types of exclusive information on any sporting 23 |
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415 | 415 | | event overseen by that individual’s sports governing entity; 24 |
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416 | 416 | | |
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417 | 417 | | (6) holds a position of authority or influence sufficient to exert influence 25 |
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418 | 418 | | over the participants in a sporting event, including coaches, managers, handlers, or athletic 26 |
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419 | 419 | | trainers; 27 |
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420 | 420 | | |
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421 | 421 | | (7) is identified on a mandatory or voluntary sports wagering exclusion list 28 |
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422 | 422 | | maintained by the Commission; 29 |
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423 | 423 | | |
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424 | 424 | | (8) is the operator, director, officer, owner, or employee of the sports 30 |
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425 | 425 | | wagering licensee [or online sports wagering operator] or any relative of the licensee [or 31 |
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426 | 426 | | operator] living in the same household as the licensee [or operator]; 32 |
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427 | 427 | | |
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428 | 428 | | (9) has access to nonpublic confidential information held by the sports 33 |
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429 | 429 | | wagering licensee [or online sports wagering operator]; or 34 10 SENATE BILL 1033 |
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430 | 430 | | |
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431 | 431 | | |
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432 | 432 | | |
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433 | 433 | | (10) is a category of individuals prohibited by the Commission under 1 |
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434 | 434 | | subsection [(e)] (D) of this section from wagering on a sporting event. 2 |
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435 | 435 | | |
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436 | 436 | | (b) [For online sports wagering, a mobile sports wagering licensee shall: 3 |
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437 | 437 | | |
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438 | 438 | | (1) have in place technical and operational measures to prevent access by 4 |
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439 | 439 | | individuals who are underage or physically located outside the State, including: 5 |
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440 | 440 | | |
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441 | 441 | | (i) age verification procedures, which may require the use of a 6 |
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442 | 442 | | reputable independent third party that is in the business of verifying an individual’s 7 |
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443 | 443 | | personally identifiable information; and 8 |
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444 | 444 | | |
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445 | 445 | | (ii) the use of geolocation technology to verify a bettor’s geographic 9 |
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446 | 446 | | location; 10 |
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447 | 447 | | |
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448 | 448 | | (2) include on its online sports wagering website a description of the 11 |
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449 | 449 | | possible repercussions for an underage or out–of–state bettor, which may include 12 |
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450 | 450 | | immediate stoppage of play, account closure, and forfeiture and confiscation of winnings; 13 |
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451 | 451 | | and 14 |
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452 | 452 | | |
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453 | 453 | | (3) establish procedures to prevent prohibited individuals from wagering 15 |
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454 | 454 | | on sporting events. 16 |
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455 | 455 | | |
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456 | 456 | | (c)] A sports wagering licensee shall: 17 |
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457 | 457 | | |
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458 | 458 | | (1) promptly report to the Commission: 18 |
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459 | 459 | | |
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460 | 460 | | (i) any criminal or disciplinary proceedings against the licensee or 19 |
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461 | 461 | | its employees in connection with the licensee’s sports wagering operation; 20 |
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462 | 462 | | |
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463 | 463 | | (ii) any abnormal betting activity or patterns that may indicate a 21 |
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464 | 464 | | concern about the integrity of a sporting event; 22 |
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465 | 465 | | |
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466 | 466 | | (iii) any other conduct with the potential to corrupt the outcome of a 23 |
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467 | 467 | | sporting event for purposes of financial gain, including match fixing; and 24 |
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468 | 468 | | |
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469 | 469 | | (iv) any suspicious or illegal wagering activities, including the use of 25 |
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470 | 470 | | funds derived from illegal activity, wagers to conceal or launder funds derived from illegal 26 |
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471 | 471 | | activity, use of agents to place wagers, or use of false identification; and 27 |
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472 | 472 | | |
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473 | 473 | | (2) maintain records of sports wagering operations in accordance with 28 |
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474 | 474 | | regulations adopted by the Commission. 29 |
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475 | 475 | | |
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476 | 476 | | [(d)] (C) The Commission is authorized to share any information under this 30 |
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477 | 477 | | section with any law enforcement agency, sports team, sports governing entity, or 31 |
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478 | 478 | | regulatory agency the Commission deems appropriate. 32 SENATE BILL 1033 11 |
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479 | 479 | | |
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480 | 480 | | |
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481 | 481 | | |
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482 | 482 | | [(e)] (D) (1) In this subsection, “interested party” means: 1 |
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483 | 483 | | |
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484 | 484 | | (i) a sports wagering licensee; 2 |
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485 | 485 | | |
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486 | 486 | | (ii) a professional sports team, league, association, or governing 3 |
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487 | 487 | | entity; or 4 |
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488 | 488 | | |
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489 | 489 | | (iii) an institution of higher education. 5 |
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490 | 490 | | |
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491 | 491 | | (2) If an interested party believes that a type or form of wagering or a 6 |
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492 | 492 | | category of individuals wagering on sporting events is contrary to public policy, is unfair to 7 |
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493 | 493 | | consumers, or affects the integrity of a particular sport or the sports wagering industry, the 8 |
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494 | 494 | | interested party may submit to the Commission, in writing, a request to prohibit the type 9 |
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495 | 495 | | or form of sports wagering or the category of individuals from wagering on sporting events. 10 |
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496 | 496 | | |
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497 | 497 | | (3) After conducting a public hearing on a request submitted under 11 |
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498 | 498 | | paragraph (2) of this subsection, the Commission may grant the request on a showing of 12 |
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499 | 499 | | good cause by the interested party. 13 |
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500 | 500 | | |
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501 | 501 | | (4) The Commission shall respond to a request under this subsection 14 |
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502 | 502 | | concerning a particular sporting event before the start of the sporting event to the greatest 15 |
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503 | 503 | | extent feasible, or as soon as practicable. 16 |
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504 | 504 | | |
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505 | 505 | | 9–1E–11. 17 |
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506 | 506 | | |
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507 | 507 | | (b) (1) (i) Except as provided in [subparagraphs] SUBPARAGRAPH (ii)[, 18 |
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508 | 508 | | (iii), and (iv)] of this paragraph, all proceeds from sports wagering shall be electronically 19 |
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509 | 509 | | transferred monthly into the State Lottery Fund established under Subtitle 1 of this title. 20 |
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510 | 510 | | |
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511 | 511 | | (ii) [A Class A–1 and A–2 sports wagering facility licensee shall 21 |
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512 | 512 | | retain 85% of the proceeds from sports wagering conducted at the locations described in § 22 |
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513 | 513 | | 9–1E–09(a) of this subtitle. 23 |
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514 | 514 | | |
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515 | 515 | | (iii)] A [Class B–1 and B–2] sports wagering [facility] licensee shall 24 |
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516 | 516 | | retain 85% of the proceeds from sports wagering conducted at the location described in the 25 |
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517 | 517 | | licensee’s application. 26 |
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518 | 518 | | |
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519 | 519 | | [(iv) A mobile sports wagering licensee shall retain 85% of the 27 |
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520 | 520 | | proceeds from online sports wagering received by the licensee.] 28 |
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521 | 521 | | |
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522 | 522 | | (2) All proceeds from sports wagering in the State Lottery Fund 29 |
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523 | 523 | | established under Subtitle 1 of this title shall be distributed on a monthly basis, on a 30 |
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524 | 524 | | properly approved transmittal prepared by the Commission to the Blueprint for Maryland’s 31 |
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525 | 525 | | Future Fund established under § 5–206 of the Education Article. 32 |
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526 | 526 | | 12 SENATE BILL 1033 |
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527 | 527 | | |
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528 | 528 | | |
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529 | 529 | | 9–1E–13. 1 |
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530 | 530 | | |
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531 | 531 | | (c) (1) Subject to paragraph (2) of this subsection, on or before December 1, 2 |
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532 | 532 | | 2025, the Commission shall report to the General Assembly, in accordance with § 2–1257 3 |
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533 | 533 | | of [the State Government Article] THIS ARTICLE, on the racial, ethnic, gender, and 4 |
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534 | 534 | | geographic diversity of holders of Class B–1 and B–2 sports wagering [facility] licenses 5 |
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535 | 535 | | [and mobile sports wagering licenses] under this subtitle, the level of market saturation of 6 |
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536 | 536 | | sports wagering in the State, and whether the number of Class B–1 and B–2 sports 7 |
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537 | 537 | | wagering [facility] licenses [and mobile sports wagering licenses] that may be issued under 8 |
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538 | 538 | | this subtitle should be increased in order to address the demand for sports wagering in the 9 |
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539 | 539 | | State. 10 |
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540 | 540 | | |
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541 | 541 | | (2) Before the Commission submits the report described under paragraph 11 |
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542 | 542 | | (1) of this subsection, the Commission shall provide the Legislative Policy Committee with 12 |
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543 | 543 | | at least 30 days to submit comments to the Commission. 13 |
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544 | 544 | | |
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545 | 545 | | 9–1E–14. 14 |
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546 | 546 | | |
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547 | 547 | | (f) The Sports Wagering Application Review Commission: 15 |
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548 | 548 | | |
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549 | 549 | | (1) shall review applications for sports wagering licenses submitted in 16 |
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550 | 550 | | accordance with § 9–1E–06 of this subtitle; 17 |
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551 | 551 | | |
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552 | 552 | | (2) shall award: 18 |
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553 | 553 | | |
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554 | 554 | | (i) a Class A–1 or A–2 [facility] SPORTS WAGERING license to any 19 |
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555 | 555 | | applicant that meets the requirements for licensure under this subtitle; and 20 |
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556 | 556 | | |
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557 | 557 | | (ii) a Class B–1 or B–2 [facility] SPORTS WAGERING license to any 21 |
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558 | 558 | | applicant that is described under § 9–1E–06(a)(2)(i) of this subtitle and meets the 22 |
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559 | 559 | | requirements for licensure under this subtitle; and 23 |
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560 | 560 | | |
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561 | 561 | | (3) may not award a Class B–1 or B–2 sports wagering [facility] license, 24 |
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562 | 562 | | other than to an applicant described under § 9–1E–06(a)(2)(i) of this subtitle, [or a mobile 25 |
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563 | 563 | | sports wagering license] until after the Sports Wagering Application Review Commission 26 |
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564 | 564 | | adopts the regulations required under subsection (h) of this section. 27 |
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565 | 565 | | |
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566 | 566 | | (h) (1) This subsection applies only to Class B–1 or B–2 sports wagering 28 |
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567 | 567 | | [facility] licenses, other than licenses issued to an applicant described under § 29 |
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568 | 568 | | 9–1E–06(a)(2)(i) of this subtitle[, and mobile sports wagering licenses]. 30 |
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569 | 569 | | |
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570 | 570 | | (2) Subject to paragraph (3) of this subsection, the Sports Wagering 31 |
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571 | 571 | | Application Review Commission shall adopt regulations governing the evaluation of 32 |
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572 | 572 | | applications for Class B–1 or B–2 sports wagering [facility] licenses, other than licenses 33 |
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573 | 573 | | issued to an applicant described under § 9–1E–06(a)(2)(i) of this subtitle, [and mobile sports 34 |
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574 | 574 | | wagering licenses] submitted in accordance with § 9–1E–06 of this subtitle. 35 SENATE BILL 1033 13 |
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575 | 575 | | |
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576 | 576 | | |
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577 | 577 | | |
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578 | 578 | | (3) The Sports Wagering Application Review Commission, in consultation 1 |
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579 | 579 | | with the certification agency as defined in § 14–301 of the State Finance and Procurement 2 |
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580 | 580 | | Article, the Governor’s Office of Small, Minority, and Women Business Affairs, and the 3 |
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581 | 581 | | Office of the Attorney General, shall: 4 |
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582 | 582 | | |
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583 | 583 | | (i) evaluate a study of the sports wagering industry and market to 5 |
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584 | 584 | | determine whether there is a compelling interest to implement remedial measures, in 6 |
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585 | 585 | | addition to the application of the State Minority Business Enterprise Program under Title 7 |
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586 | 586 | | 14, Subtitle 3 of the State Finance and Procurement Article or a similar program, to assist 8 |
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587 | 587 | | minorities and women in the sports wagering industry; 9 |
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588 | 588 | | |
---|
589 | 589 | | (ii) evaluate race–neutral programs or other methods that may be 10 |
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590 | 590 | | used to address the needs of minorities, women, and minority and women –owned 11 |
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591 | 591 | | businesses seeking to participate in the sports wagering industry, including through the 12 |
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592 | 592 | | ownership of entities licensed to conduct sports wagering under this subtitle; 13 |
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593 | 593 | | |
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594 | 594 | | (iii) consider whether an applicant for a Class B–1 or B–2 sports 14 |
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595 | 595 | | wagering [facility] license intends to conduct sports wagering at a facility located in an 15 |
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596 | 596 | | opportunity zone or an enterprise zone; AND 16 |
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597 | 597 | | |
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598 | 598 | | (iv) [consider allowing early access to the mobile sports wagering 17 |
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599 | 599 | | market to entities with a meaningful partnership with minorities, wom en, and 18 |
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600 | 600 | | minority– and women–owned businesses; and 19 |
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601 | 601 | | |
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602 | 602 | | (v)] adopt emergency regulations to implement remedial measures, 20 |
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603 | 603 | | if necessary and to the extent permitted by State and federal law, based on the findings of 21 |
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604 | 604 | | the study evaluated under item (i) of this paragraph. 22 |
---|
605 | 605 | | |
---|
606 | 606 | | (4) The Sports Wagering Application Review Commission shall: 23 |
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607 | 607 | | |
---|
608 | 608 | | (i) to the extent permitted by federal and State law, actively seek to 24 |
---|
609 | 609 | | achieve racial, ethnic, and gender diversity when awarding licenses; and 25 |
---|
610 | 610 | | |
---|
611 | 611 | | (ii) encourage applicants who qualify as a minority business 26 |
---|
612 | 612 | | enterprise, as defined in § 14–301 of the State Finance and Procurement Article, or who 27 |
---|
613 | 613 | | are small, minority, or women–owned business entities to apply for sports wagering 28 |
---|
614 | 614 | | licenses under this subtitle. 29 |
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615 | 615 | | |
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616 | 616 | | SECTION 4. AND BE IT F URTHER ENACTED, That , notwithstanding § 30 |
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617 | 617 | | 9–1E–06(d)(2) of the State Government Article, the State Lottery and Gaming Control 31 |
---|
618 | 618 | | Commission shall refund the application fee submitted in accordance with § 32 |
---|
619 | 619 | | 9–1E–06(b)(1)(v) of the State Government Article by: 33 |
---|
620 | 620 | | |
---|
621 | 621 | | (1) an applicant for a mobile sports wagering license whose application is 34 |
---|
622 | 622 | | still pending on or after July 1, 2025, if the applicant rescinds the application; and 35 |
---|
623 | 623 | | 14 SENATE BILL 1033 |
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624 | 624 | | |
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625 | 625 | | |
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626 | 626 | | (2) the holder of a mobile sports wagering license, if the licensee surrenders 1 |
---|
627 | 627 | | the license before accepting any sports wagers under that license. 2 |
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628 | 628 | | |
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629 | 629 | | SECTION 5. AND BE IT FURTHER ENACTED, That Sections 1, 2, and 3 of this 3 |
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630 | 630 | | Act shall take effect January 1, 2026. 4 |
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631 | 631 | | |
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632 | 632 | | SECTION 6. AND BE IT FURTHER ENACTED, That , except as provided in Section 5 |
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633 | 633 | | 5 of this Act, this Act shall take effect July 1, 2025. 6 |
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