Md. Code Regs. 36.10.06.11

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

Section 36.10.06.11 - Sports Wagering Vendor Registration and Certification

A. Definitions.

B. Terms Defined.

(1) "Commission" means Agency staff in this regulation.

(2) Sports Wagering Vendor.

(a) "Sports wagering vendor" means a person:

(i) That provides goods or services or anticipates providing, within a calendar year, goods or services to a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor of $50,000 or more and is not required to be issued a sports wagering license or sports wagering contractor license under State Government Article, Title 9, Subtitle 1E, Annotated Code of Maryland; or

(ii) For whom the Commission determines registration as a sports wagering vendor is necessary.

(b) "Sports wagering vendor" does not include:

(i) Public utilities that provide water, sewerage, electricity; or natural gas;

(ii) Insurance companies that provide insurance to a sports wagering license applicant or licensee or its employees;

(iii) Employee benefit and retirement plans, including 401(k) plans and employee stock purchase programs;

(iv) Professional associations that receive funds from the sports wagering license applicant or licensee for the cost of enrollment, activities, and membership;

(v) Units of federal, State, county, or municipal government;

(vi) Manufacturers of alcoholic beverages;

(vii) State-chartered or federally chartered banks or savings and loan associations;

(viii) Providers of professional services, including accountants, attorneys, engineers or architects, and others identified by Agency staff to be providers of professional services;

(ix) Telecommunication, satellite, or internet services;

(x) Parcel shipping and delivery services;

(xi) Persons that engage in efforts to influence legislative or administrative action on behalf of a sports wagering license applicant or licensee for economic consideration;

(xii) Educational or training opportunities for facility employees;

(xiii) Unless the individual is an independent evaluator, professional or amateur entertainers, sports figures, social media personalities, or other celebrities engaged by a sports wagering licensee to appear at a licensee-sponsored entertainment or promotional event;

(xiv) Representatives of a media outlet or provider of a simulcast service;

(xv) A vendor that provides, or anticipates providing, within a calendar year a combined total value of nongaming related goods and services to a State-licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor of less than $50,000; or

(xvi) A vendor for which the Commission determines registration is not necessary.

C. Except as provided in §§D and G of this regulation, a sports wagering vendor that conducts business with a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor, or an applicant for such a license, shall be registered with the Commission.

D. Certain Sports Wagering Vendors Exempt from Registration Requirements.

(1) A sports wagering vendor is exempt from registration requirements if it provides, or anticipates providing, goods or services that a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor purchases solely to be given to a bettor.

(2) A sports wagering vendor exempt under this section may only provide the following goods and services to a licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor:

(a) Leisure or recreational travel;

(b) Lodging;

(c) Vehicles;

(d) Entertainment;

(e) Dining;

(f) Clothing;

(g) Jewelry;

(h) Gift cards; or

(i) Other gift items.

(3) A licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor that purchases goods or services from a sports wagering vendor exempted under this section:

(a) Is subject to the requirements of COMAR 36.10.13.08; and

(b) Shall identify in a report submitted under COMAR 36.10.13.08 each exempted sports wagering vendor from which it purchased goods or services during the reporting period.

E. Sports Wagering Vendor Registration.

(1) A sports wagering vendor that provides, or anticipates providing, goods or services that are not related to a sports wagering operation to a single licensed sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor shall be registered with the Commission.

(2) The sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee to which a sports wagering vendor provides, or anticipates providing, goods and services that are not related to sports wagering shall submit to the Commission a completed registration form in a format designated by the Commission that includes:

(a) Sports wagering vendor name;

(b) Sports wagering vendor business address;

(c) Type of goods or services provided;

(d) Total value of goods or services provided to the sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee in the State within a calendar year;

(e) Documentation that:

(i) The sports wagering vendor's business is in good standing or active with the Maryland State Department of Assessments and Taxation; or

(ii) The sports wagering vendor is not a legal entity that is required to register with the Maryland State Department of Assessments and Taxation;

(f) Registration fee of $100; and

(g) Any other information the Commission requires.

(3) Upon receipt of the registration fee and completed registration form, the Commission shall provide the applicant or licensee with written notification of whether it has registered the sports wagering vendor.

F. Except as provided in §G of this regulation, a sports wagering vendor may not provide goods or services related to a sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee until it is registered with the Commission.

G. Emergency Notification. A sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee may accept goods or services from a sports wagering vendor that is not registered with the Commission if:

(1) The sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee encounters an emergent threat to public health, safety, or welfare that is outside its control and requires immediate provision of goods or services by a sports wagering vendor; and

(2) Except as provided in §D of this regulation:

(a) No later than the next State work day after the sports wagering vendor's emergency provision of goods or services, the sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee shall submit to the Commission a sports wagering vendor emergency notification form that includes an explanation of the need for its emergency use of a sports wagering vendor that is not registered with the Commission; and

(b) Within 20 work days of submitting the sports wagering vendor emergency notification form, the sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee shall submit to the Commission a sports wagering vendor registration form.

H. Term, Renewal, and Cancellation. A sports wagering vendor's registration or certification:

(1) Remains in effect for 5 years from the date the Commission approves the registration;

(2) May be renewed by the Commission if the vendor submits the required form, and renewal fee, at least 90 days before the expiration of the registration;

(3) Shall automatically expire if a sports wagering vendor does not comply with renewal requirements under this regulation; and

(4) Is subject to cancellation by the Commission, at any time and without advance notice, if the Commission determines that the sports wagering vendor's continued conduct of business with a sports wagering applicant or licensee is contrary to the public interest of the State or the policies in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, or the Commission's regulations.

I. Renewal Fee.

The renewal fee for a sports wagering vendor is $100.

J. The Commission's decision to deny or cancel a sports wagering vendor registration or to deny the renewal of a sports wagering vendor registration, does not give rise to an appeal right under the contested case provisions of the Maryland Administrative Procedure Act.

K. The Commission may maintain and make publicly available a list of:

(1) Registered sports wagering vendors; and

(2) Sports wagering vendors that are prohibited from doing business with a sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee because the Commission has denied or cancelled their application or registration.

L. A sports wagering facility, mobile sports wagering licensee, online sports wagering operator, sports wagering facility operator, or sports wagering contractor applicant or licensee shall:

(1) Submit to the Commission a quarterly sports wagering vendor payments report in a format prescribed by the Commission; and

(2) Ensure that a sports wagering vendor appearing on its quarterly sports wagering vendor payments report is:

(a) Registered; or

(b) Exempt.

Md. Code Regs. 36.10.06.11

Regulation .11 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.