Md. Code Regs. 36.10.06.04

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

Section 36.10.06.04 - Sports Wagering Contractor Licenses

A. In this regulation, "license", "licensee", and "applicant" refer to the sports wagering contractor licensee or applicant.

B. Unless a person holds a valid sports wagering contractor license issued by the Commission, the person may not conduct, offer, or operate sports wagering contractor services for a sports wagering licensee under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland.

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

D. If a sports wagering licensee under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, engages a person to provide services as a sports wagering contractor, the person shall meet the requirements of this regulation.

E. A sports wagering contractor license authorizes a licensee to contract with a sports wagering licensee to conduct, offer, or operate sports contractor services for a sports wagering licensee.

F. All sports wagering contractor applicants and licensees shall meet the license requirements specified for a sports wagering contractor in State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland, and COMAR 36.03.02.14, and unless context dictates otherwise:

(1) COMAR 36.10.02;

(2) COMAR 36.10.03; and

(3) This regulation.

G. Application and License Fees.

(1) For a Tier 1 sports wagering contractor, the:

(a) Application fee is $1,500;

(b) License fee is $2,500; and

(c) Background investigation deposit is $2,000.

(2) For a Tier 2 sports wagering contractor, the:

(a) Application fee is $750;

(b) License fee is $800; and

(c) Background investigation deposit is $2,000.

H. Renewal. The Commission may renew the license 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;

(3) Submits to a background investigation under COMAR 36.10.02; and

(4) Pays a license renewal fee.

I. Exemptions from Certain Requirements. A sports wagering contractor is exempt from:

(1) Except as provided in §K of this regulation, if a sports wagering contractor is covered by the performance bond of the sports wagering licensee with which it contracts, bond requirements; and

(2) Unless the sports wagering contractor is engaged under a management agreement or as a lessee or tenant, labor peace agreement requirements under State Government Article, § 9-1E-07(6)(e)(v), Annotated Code of Maryland.

J. If a sports wagering contractor is not covered by the performance bond of the sports wagering licensee with which it contracts, the Commission may require a performance bond in an amount that relates to the work performed by the sports wagering contractor.

K. Independent Evaluator.

(1) In addition to complying with requirements for all applicants for a Tier 1 sports wagering contractor license, an applicant for a Tier 1 contractor license that is an independent evaluator:

(a) Shall have demonstrated experience and expertise in evaluating and rating sports wagering content;

(b) Shall have an audit process constructed and maintained by in-house, licensed certified public accountants;

(c) Shall have evaluation and rating procedures that are unable to be adjusted, duplicated, or altered by the persons subject to evaluation;

(d) May not have any direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests in any sports wagering activities;

(e) May not receive or share in, directly or indirectly, the receipts or proceeds of any sports wagering activities; and

(f) May not have any revenue-sharing relationship with, or other financial interest in, a sports wagering licensee or sports wagering operator.

(2) Notwithstanding any other requirement in COMAR 36.10, the Commission may require a performance bond in an amount that relates to the work performed by the independent evaluator.

(3) Prohibition on Wagering.

(a) A wager on a sporting event may not be placed by an independent evaluator or a person that is:

(i) Regardless of percentage of ownership, a legal or beneficial owner of an independent evaluator;

(ii) Regardless of compensation amount or type, an employee of an independent evaluator;

(iii) An affiliate of an independent evaluator;

(iv) A person that provides a paid or free service to an independent evaluator that is related to sports wagering; or

(v) An agent or representative of an independent evaluator.

(b) A wager on a sporting event may not be placed by:

(i) An immediate family member or affiliate of a person described in §K(3)(a) of this regulation; or

(ii) A person that Agency staff determines would, if the person wagered, compromise the independence of an independent evaluator.

(4) Compensation of independent evaluator.

(a) Except as provided in §K(4)(b) of this regulation, an independent evaluator may not be compensated by a sports wagering licensee that utilizes the independent evaluator's evaluation services solely for marketing materials.

(b) A sports wagering licensee that advertises in the State may contract with a licensed independent evaluator to evaluate and rate the licensee's:

(i) Sports wagering content;

(ii) Sports wagering influencers; and

(iii) Content partners.

(5) Required Submission. For every person described in §K(3) of this regulation, an applicant for licensure as an independent evaluator shall submit to Agency staff documentation that:

(a) Identifies the person;

(b) Explains the means by which the applicant will notify the person of the prohibition; and

(c) Attests that the submission is accurate and complete to the best of the knowledge of the authorized individual who signed the attestation.

(6) Issuance of License. Agency staff may issue a license for a Tier 1 contractor that is an independent evaluator.

Md. Code Regs. 36.10.06.04

Regulation .04 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.