Md. Code Regs. 36.11.02.08

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

Section 36.11.02.08 - Requirements for a Completed SWARC Application

A. An applicant shall ensure that its SWARC application is complete and timely when submitted.

B. A completed SWARC application shall:

(1) Be submitted in the form and format set forth in §D of this regulation;

(2) Contain all required information set forth in §E of this regulation;

(3) If applicable, contain the information pertaining to the applicant's efforts to solicit and interview minority and women investors, as set forth in §F of this regulation;

(4) Be accompanied by all required documents as set forth in §§G and H of this regulation;

(5) Be executed by the applicant, or if the applicant is not an individual, the Chief Executive Officer or other authorized representative of the applicant; and

(6) Be signed and sworn to before a notary public.

C. Incomplete Applications. A SWARC application that, as determined by SWARC in its sole discretion, fails to comply with all or substantially all of the requirements of §B of this regulation:

(1) Shall be deemed incomplete; and

(2) May only be changed as provided in Regulation .09 or .10 of this chapter.

D. Form and Format. As specified in the SWARC application, an application submitted pursuant to §A of this regulation shall include:

(1) One paper original of the SWARC application;

(2) Ten paper copies of the original SWARC application;

(3) Two copies in an electronic format or other format as required by SWARC on a medium selected by SWARC; and

(4) Two paper copies, and one copy in electronic format, or other format required by SWARC, of the SWARC application that identifies, on each page, any information the applicant views as exempt from disclosure under General Provisions Article, § 4-101 et seq., Annotated Code of Maryland, and a letter enumerating the specific grounds for any such exemptions.

E. Required Information. A completed SWARC application shall include documents that verify information about the applicant, including the:

(1) Applicant's legal name, business address, and taxpayer identification number;

(2) Applicant's good standing with the State Department of Assessments and Taxation;

(3) Date the applicant established the business that would conduct the applicant's sports wagering business;

(4) Form of business organization that would conduct the applicant's sports wagering business;

(5) Name under which the applicant intends to conduct sports wagering;

(6) Individual who is the primary contact for the applicant, including the contact individual's:

(a) Name;

(b) Email address;

(c) Mailing address;

(d) Telephone number; and

(e) Title or basis of authority to represent applicant;

(7) Names and titles of principals;

(8) Number of employees and work locations of such employees who are currently employed by the applicant within Maryland and whether these employees are full-time or part-time employees;

(9) If applying for a competitive license that is a Class B-1 or Class B-2 facility license, the number of full-time equivalent employees employed by the applicant in Maryland as of the end of the most recent calendar quarter;

(a) Calculated by dividing the total hours worked during the calendar quarter (13 weeks) by 520 (13 weeks x 40 hours per week); and

(b) Rounded to the nearest whole number;

(10) Number, and proposed work locations, of individuals identified within Maryland expected to be employed by the applicant in its sports wagering business and whether these employees are to be full-time or part-time employees;

(11) For the business that would be licensed to conduct sports wagering, the business's revenue, expenses, and profit for the 2 most recent tax reporting years;

(12) Sources of funding for:

(a) The SWARC application fee;

(b) The Commission's administrative cost of background investigations;

(c) All construction or renovation costs;

(d) All startup costs; and

(e) Continuing operations during the initial 5 years after commencement of sports wagering operations;

(13) Capitalization table of the applicant identifying;

(a) Direct and indirect owners of the applicant;

(b) Amount invested;

(c) Type of equity owned;

(d) Percentage ownership of the applicant;

(e) Terms, conditions, and rights of the equity interests owned, including voting rights;

(f) Whether sports wagering would be conducted by the applicant; and

(g) If the applicant is applying for a:

(i) Facility license, its facility operator, if identified; or

(ii) A mobile license, its online sports wagering operator, if identified;

(14) Whether any person identified in the SWARC application has:

(a) Experience in the operation of sports wagering;

(b) Ever had a sports wagering or gaming-related license, or application for any such license, rejected or denied in any jurisdiction;

(c) In any jurisdiction, ever held a license related to sports wagering or gaming that was revoked, suspended, or surrendered; or

(d) In any jurisdiction in which it held a sports wagering or gaming-related license, within the past 3 years, ever been subject to any disciplinary matter, judgment, settlement, order, or decree pertaining to a violation of any state or federal statute, regulation, or rule that resulted in a fine, penalty, or payment of more than $5,000;

(15) Business plans for 5 years for the proposed sports wagering operations, including revenue estimates, for sports wagering and other business revenue, and all ongoing expenses, including:

(a) Pre-launch expenses, to include marketing campaigns;

(b) Projected capital investments and expenses for site improvements and equipment acquisitions at, or planned for, the location where the applicant would conduct sports wagering;

(c) Projected operating expenses;

(d) Other revenue-generating activities at, or planned for, the location where the applicant would conduct sports wagering;

(e) Projected balance sheet at the time of licensure;

(f) If applying for a facility license, facility floorplans designating age-controlled wagering areas, public areas, and nonpublic areas; and

(g) The applicant's estimated timeline from award of a license to the acceptance of wagers; and

(16) Any other information SWARC may, in its discretion, request whether in the SWARC application or by written request to the applicant.

F. Requirements for Applicants Seeking Investors.

(1) As required by State Government Article, § 9-1E-15(i), Annotated Code of Maryland, if an applicant sought investors, the applicant shall have made serious, good-faith efforts to solicit and interview a reasonable number of minority and women investors, and submit with its SWARC application a statement that lists the names and addresses of all minority and women investors interviewed and whether or not any of those investors have acquired an equity share in the applicant.

(2) Each applicant shall submit an acknowledgement that, if SWARC awards it a license, the awardee shall sign a memorandum of understanding with SWARC that requires the awardee to make serious, good faith efforts to interview minority and women investors in any future attempts to raise venture capital or attract new investors to the entity awarded the license.

G. Required Documents. When submitted, a completed SWARC application shall include:

(1) A statement that the entire SWARC application has been sworn to before a notary public, as to the application's truth and validity, by the applicant or, if the applicant is not an individual, by the Chief Executive Officer of the applicant or other authorized representative of the applicant;

(2) Certification and acknowledgment by the applicant that the:

(a) Business offering or conducting sports wagering shall comply with all applicable zoning requirements;

(b) Business offering or conducting sports wagering shall comply with all other applicable federal, State or local requirements; and

(c) Applicant recognizes that sports wagering is a competitive business and has an inherent risk of instability and unprofitability; and

(3) An affidavit of the applicant pursuant to which the applicant, for itself and its successor and assigns, expressly waives, releases, discharges, and forever holds harmless and agrees to indemnify SWARC, the State of Maryland, and their respective members, employees, agents, consultants, and representatives from all liability for any and all claims or legal action arising from or relating to any actions that SWARC or the State of Maryland may take related to the collection of information from the applicant and the use of that information in connection with evaluating the applicant for the award or issuance (or nonaward or nonissuance) of a sports wagering license.

H. Required Documentation for Sports Wagering Facility License Applicants.

In addition to the documentation in §§F and G of this regulation, if the applicant does not own the business location, a completed SWARC application for the award of a facility license shall be accompanied by:

(1) A lease, or other documentation, showing that the applicant lawfully possesses, or may possess, the property, and the term of the lawful possession; and

(2) A notarized acknowledgement by the person who owns or controls the property that:

(a) The premises may be used for a sports wagering facility without violating the lease or other term by which the applicant possesses the property; and

(b) If the applicant is issued a license, the property may be used as a sports wagering facility for at least the applicant's initial 5-year license term.

Md. Code Regs. 36.11.02.08

Regulation .08 adopted effective 49:23 Md. R. 998, eff. 11/14/2022