Md. Code Regs. 36.10.03.02

Current through Register Vol. 51, No. 24, December 2, 2024

Section 36.10.03.02 - Qualification Requirements

A. The Commission or Agency staff may consider an applicant's qualifications if the applicant has:

(1) Paid the applicable nonrefundable application fee;

(2) Unless exempt, provided documentation that:

(a) The applicant has obtained the required performance bond; or

(b) A person authorized to provide a performance bond in the State has approved the applicant for a performance bond; and

(3) Provided the Commission with all required information and documentation.

B. The Commission shall determine whether an applicant has presented sufficient information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence:

(1) The applicant's financial stability, integrity, and responsibility;

(2) The integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bear a relation to the application;

(3) The applicant's good character, honesty, and integrity; and

(4) Sufficient business ability and experience.

C. Mandatory Disqualification. The Commission shall disqualify an applicant from licensure, or find the applicant unqualified, on the basis of:

(1) Failure of the applicant to establish by clear and convincing evidence that the applicant and each person who owns or controls the applicant are qualified;

(2) Failure of the applicant or any person required to be qualified to provide information, documentation, or assurances required by or requested by the Commission or SWARC;

(3) Failure of the applicant or any person required to be qualified to reveal any fact material to qualification;

(4) Supplying, by the applicant or any person required to be qualified, information that is untrue or misleading as to a material fact concerning the qualification criteria;

(5) Conviction of the applicant or of any person required to be qualified of an offense under the laws of any jurisdiction that is a criminal offense involving moral turpitude or a gambling or sports wagering offense;

(6) Current prosecution of the applicant or a person who is required to be qualified for an offense described under §C(5) of this regulation, provided that:

(a) An applicant may request that the Commission defer its qualification decision during the pendency of the charge; and

(b) The Commission may exercise its discretion whether to defer its qualification decision during the pendency of the charge;

(7) Pursuit by the applicant or a person who is required to be qualified of economic gain in an occupational manner or context that violates a State law, if the pursuit creates a reasonable belief by the Commission that participation of the applicant in sports wagering operations would be inimical to the State's interests;

(8) Identification of the applicant or a person who is required to be qualified as a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in a manner that creates a reasonable belief by the Commission that the association is of a nature that would be inimical to the State's interests;

(9) Commission of an act within the prior 7 years by the applicant or a person who is required to be qualified that would constitute an offense described in §C(5) of this regulation, even if the act was not, or may not be prosecuted under the criminal laws of any jurisdiction;

(10) Willful defiance by the applicant or a person who is required to be qualified of a legislative investigatory body or other official investigatory body of the United States or a jurisdiction within the United States when the body is engaged in the investigation of crimes relating to sports wagering, gambling, official corruption, or organized crime activity; or

(11) Engaging in conduct that would bring the State into disrepute.

D. Permissive Denial. The Commission may deny a license to an applicant or find an applicant unqualified if the applicant's application for a license related to sports wagering in another jurisdiction was denied, suspended, or revoked.

Md. Code Regs. 36.10.03.02

Regulation .02 amended effective 49:1 Md. R.16, eff. 1/13/2022; amended effective 50:26 Md. R. 1130, effective 12/12/2023, exp. 6/9/2024 (Emergency); amended effective 51:10 Md. R. 529, eff. 5/27/2024.