Md. Code Regs. 36.10.04.03

Current through Register Vol. 51, No. 22, November 1, 2024

Section 36.10.04.03 - Class A-1 Sports Wagering Facility License

A. The Commission shall issue a Class A-1 Sports Wagering Facility License to an applicant that meets all applicable licensing requirements under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commission's regulations.

B. A Class A-1 Sports Wagering Facility License may only be issued to:

(1) A video lottery operator with more than 1,000 video lottery terminals;

(2) For a stadium in Prince George's County that is primarily used for professional football (NFL), a license applicant that is:

(a) The owner; or

(b) The designee if an applicant designated an entity to hold the license;

(3) The owner, or the designee of the owner, of a professional football franchise that is a lessee of a stadium in Baltimore City;

(4) The owner, or the designee of the owner, of a professional major league baseball franchise that is a lessee of a stadium in Baltimore City;

(5) The owner, or the designee of the owner, of a professional hockey league franchise, that is a lessee of a stadium in the State;

(6) The owner, or the designee of the owner, of a professional basketball association franchise, that is a lessee of a stadium in the State; or

(7) The owner, or the designee of the owner, of a professional soccer league franchise, that is a lessee of a stadium in the State.

C. The non-refundable application fee for a Class A-1 sports wagering facility is $2,000,000.

D. The performance bond for a Class A-1 sports wagering facility license is $6,000,000.

E. Designee Designation. If an applicant that is an owner identified under §B(2)-(7) of this regulation identifies a designee, the owner shall:

(1) Complete and execute an Affidavit of Owner of a Professional Sports Franchise or Stadium Supporting the Owner's Designee to be the Applicant for, and Holder of, a Sports Wagering Facility License that:

(a) Identifies the designee;

(b) Acknowledges that the sports wagering law authorizes the Commission to issue a Class A-1 sports wagering facility license to an owner of a specified professional sports franchise or stadium, or to the owner's designee, if the applicant meets all applicable requirements;

(c) Understands, acknowledges, and certifies that the designee is required to meet all applicable requirements for:

(i) Qualification by the Commission;

(ii) License award by SWARC;

(iii) License issuance by the Commission; and

(iv) Continuing obligations for the term of the license;

(d) Understands, acknowledges, and certifies that the owner is prohibited from controlling or influencing the designee in the designee's capacity as an applicant for or holder of a sports wagering facility license; and

(e) Understands, acknowledges, and certifies that the owner is prohibited from receiving from the designee any interest, percentage, or share of handle, proceeds, or profit, that is based on sports wagering; and

(2) Submit to the Commission documentation establishing that it has no control or influence over an owner's designee.

F. Designee Responsibilities.

(1) The designee shall complete and execute an Affidavit of Designee of an Owner of a Professional Sports Franchise or Stadium Supporting the Owner's Designee to be the Applicant for, and Holder of, a Sports Wagering Facility License that meets the same requirements in §E(1) of this regulation.

(2) The designee shall submit to the Commission documentation that the owner has no control or influence over it.

G. Designee Substitution.

(1) If an owner seeks to replace the named designee, the owner and the designee shall submit to the Commission a request to replace the designee as the holder of the license.

(2) The new designee shall submit to the Commission an application for a sports wagering facility license.

(3) The Commission may transfer the sports wagering facility license to the new designee after the Commission determines the new designee meets all applicable requirements for a sports wagering facility license, and issues the license.

Md. Code Regs. 36.10.04.03

Regulation .03 amended effective 49:1 Md. R.16, eff. 1/13/2022; amended effective 49:15 Md. R. 740, eff. 7/25/2022; 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.