Md. Code Regs. 36.10.06.02

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

Section 36.10.06.02 - Online Sports Wagering Operator License

A. Unless a person holds a valid online sports wagering operator license issued by the Commission, the person may not conduct, offer, or operate online sports wagering on behalf of a mobile sports wagering licensee.

B. The Commission may issue an online sports wagering operator license to an applicant that meets all applicable licensing requirements for a mobile sports wagering licensee under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the Commission's regulations.

C. An online sports wagering operator license authorizes a licensee to contract with a mobile sports wagering licensee to conduct online sports wagering on behalf of the mobile sports wagering licensee.

D. An applicant for an online sports wagering operator license shall:

(1) Pay a nonrefundable application fee of $25,000;

(2) Provide evidence of a performance bond in the amount of $1,500,000;

(3) If not covered under the online sports wagering licensee's performance bond for which the sports wagering facility operator licensee is conducting sports wagering, obtain the same performance bond amount that is required for that sports wagering facility license class as provided in COMAR 36.10.05;

(4) Meet all license application requirements under COMAR 36.10.02; and

(5) Meet all qualification requirements under COMAR 36.10.03.

E. In this regulation, "license", "licensee" and "applicant" refers to the online sports wagering operator licensee or applicant.

F. Agency staff shall determine whether the applicant has met applicable technical and operational requirements for a license, and determine whether it meets the Commission's requirements for:

(1) Payment of the application fee as set forth in §D of this regulation;

(2) Evidence of a performance bond in the amount as set forth in §D of this regulation;

(3) Fees and qualification requirements under COMAR 36.10.02 and 36.10.03;

(4) Hours of operation;

(5) Technical specifications;

(6) Internal controls under COMAR 36.10.13;

(7) Sports wagering platform;

(8) Sports wagering equipment;

(9) Sports wagering data information center;

(10) Types of sporting event wagers to be offered;

(11) Testing and controlled demonstrations;

(12) Applicant's employees are:

(a) Licensed as sports wagering employees; and

(b) Trained in the performance of their responsibilities;

(13) Applicant's preparations to conduct secure sports wagering; and

(14) Applicant has complied with any additional pre commencement conditions imposed by the Commission.

G. Commission staff may issue a license to an applicant it has determined is qualified under §F of this regulation.

H. Application for an Additional Online Sports Wagering Operator License.

(1) An online sports wagering operator may conduct online sports wagering on behalf of more than one mobile sports wagering licensees.

(2) For an online sports wagering operator licensee that applies for a second, or successive, license with a different mobile sports wagering licensee within the term of an existing license that is in good standing, the applicant shall:

(a) Submit an application to the Commission; and

(b) Meet the requirements of §D of this regulation.

(3) The Commission's approval of online sports wagering operator's qualifications is valid for 5 years from the date that the Agency issues the online sports wagering operator license.

(4) Staff may issue additional online sports wagering operator licenses to a qualified licensee.

(5) If the existing term of an online sports wagering operator license is not expired, Agency staff may:

(a) Allow the online sports wagering operator to submit an abbreviated license application for an additional location in a form specified by the Commission;

(b) Qualify the online sports wagering operator for an additional operator license; and

(c) If no problems are identified, issue an additional license without necessity of a qualification hearing.

I. Renewal. An online sports wagering operator license may be renewed by the Commission if the licensee:

(1) Submits an application for renewal to the Commission at least 1 year before the license expires;

(2) Continues to comply with all licensing requirements, including obtaining a performance bond for the renewal term;

(3) Submits to a background investigation under COMAR 36.10.02, and pays all associated fees; and

(4) Pays a license renewal fee of $25,000 for each online sports wagering operator license for which it seeks renewal.

Md. Code Regs. 36.10.06.02

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.