Md. Code Regs. 36.10.09.02

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

Section 36.10.09.02 - Inspections

A. A licensee is subject to unannounced inspections conducted by the Commission in order to evaluate and verify the licensee's compliance with State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and the regulations promulgated by the Commission for the Sports Wagering Program.

B. The Commission or a designee may conduct an unannounced inspection without a warrant and take any of the following actions:

(1) Conduct an inspection of licensed sports wagering facilities, sports wagering facility operators, mobile sports wagering licensees, online sports wagering operators, and sports wagering contractors in which:

(a) Sports wagering is conducted, offered or operated;

(b) Authorized sports wagering equipment or associated equipment or software are:

(i) Designed;

(ii) Assembled;

(iii) Manufactured;

(iv) Sold;

(v) Distributed;

(vi) Serviced; or

(vii) Physically located; or

(c) Records are prepared or maintained for activities referenced in §B(1)(a) or (b) of this regulation;

(2) Conduct an inspection of sports wagering equipment or associated equipment in, about, on, or around the premises specified in §B(1) of this regulation;

(3) From the premises specified in §B(1) of this regulation, summarily seize, remove, impound, or assume physical control of, for the purposes of examination and inspection:

(a) Sports wagering equipment; and

(b) Associated equipment and software;

(4) Inspect, examine, and audit books, records, and documents concerning a sports wagering licensee's sports wagering operation, including the financial records of:

(a) A principal or principal corporation;

(b) A subsidiary corporation; or

(c) An affiliated entity; or

(5) Seize, impound, copy, or assume physical control of:

(a) Books;

(b) Records;

(c) Ledgers;

(d) Cash boxes and their contents;

(e) A counting room or its equipment;

(f) Other physical objects relating to sports wagering operations; or

(g) Any record or object that a licensee is required by law, regulation, or license terms to maintain.

C. During an inspection, a licensee and its employees, agents, and representatives:

(1) Shall:

(a) Make available for inspection, copying, or physical control a record that a licensee is required to maintain;

(b) Authorize any person having financial records relating to the licensee to provide those records to the Commission; and

(c) Otherwise cooperate with the activities of the Commission described in this chapter; and

(2) May not knowingly interfere with the authorized activity of the Commission during an unannounced inspection.

D. An unannounced inspection may be conducted at any time as determined by the Commission.

E. The refusal of a licensee or a licensee's employees or agents to provide the Commission with the access necessary to perform an unannounced inspection may be the basis for enforcement action under COMAR 36.10.08.

Md. Code Regs. 36.10.09.02

Amended effective 49:1 Md. R.16, eff. 1/13/2022