Md. Code Regs. 36.03.03.10

Current through Register Vol. 51, No. 12, June 14, 2024

Section 36.03.03.10 - Renewal of Operation License

A. General.

(1) Unless otherwise specified, nothing in this chapter changes a requirement set forth in applicable law or regulation.

(2) Unless the Commission finds that the licensee is not qualified to hold a license, the Commission shall renew an operation license.

B. Notice of Intent to Apply for Renewal.

(1) If a licensee seeks renewal of its operation license, the licensee shall submit to the Commission a timely and proper notice of intent to apply for renewal:

(a) At least 2 years, but not more than 5 years, before the expiration of a license term; and

(b) In a form and format required by the Commission.

(2) The notice of intent shall include:

(a) Name under which the licensee operates;

(b) Identification of all persons that are legal or beneficial owners as defined in State Government Article, § 9-1A-05(d), Annotated Code of Maryland, and COMAR 36.03.01;

(c) An affidavit signed by an authorized representative affirming that the licensee:

(i) Intends to apply for license renewal;

(ii) Is currently in compliance with all applicable requirements in State Government Article, Title 9, Subtitle 1A, Annotated Code of Maryland, and this subtitle;

(iii) Acknowledges that the Agency may begin investigating the licensee's qualifications upon receiving the notice of intent;

(iv) Acknowledges that the licensee is responsible for reimbursing the Agency for the cost of the investigation;

(v) Attests to the truth and accuracy of the notice of intent; and

(vi) Agrees to the release of information; and

(d) Any other information the Commission requires.

C. Application to Renew Video Lottery Operation License.

(1) If a licensee submitted a timely and proper notice of intent to apply for renewal of the operation license, the licensee may submit an application to renew the license.

(2) A licensee shall submit an application to renew:

(a) At least 1 year, but not more than 5 years, before the expiration of a license term; and

(b) In a form and format required by the Commission.

(3) The application shall include:

(a) Proof of the $1,000,000 performance bond;

(b) Proof of the $2,000,000 payment bond;

(c) Proof of the $100,000 fidelity bond; and

(d) Any other information the Commission requires.

(4) After completing the investigation of qualifications under §D of this regulation, the Agency shall provide the Commission with the investigation results and a recommendation about the licensee's qualifications.

(5) If the Agency recommends the Commission find the licensee qualified, the Commission shall issue a license renewal.

(6) If the Agency recommends that the Commission find the licensee not qualified, the Commission shall notify the licensee of the recommendation and provide the licensee with due process required for denial of a license application in COMAR 36.03.02.16.B.

D. Investigation of Qualifications.

(1) The Commission may choose to commence its investigation no sooner than 2 years before expiration of the licensee's current license.

(2) If an application is submitted prior to 2 years before the expiration of the licensee's existing license, the licensee shall:

(a) Update its license application within 2 years of the expiration of the existing license; and

(b) Provide any additional information required by the Commission.

(3) The Agency shall:

(a) Conduct the investigation of the licensee's qualifications in the same manner as under COMAR 36.03.02; and

(b) Apply the qualification criteria in Regulation .04B and C of this chapter.

(4) A licensee shall pay a deposit and submit reimbursement to the Commission for the costs of the investigation.

E. License Renewal Fee.

(1) If the Commission renews a video lottery facility operation license, the licensee shall pay the license renewal fee in equal annual installments, as provided in State Government Article, § 9-1A-13(d)(6), Annotated Code of Maryland.

(2) For each 5-year period of the 15-year renewal term, the video lottery licensee shall pay an amount calculated as the most recent 3-year average of:

(a) 0.75 percent of the amounts wagered less the amounts paid as prizes for VLTs and banked table games; and

(b) plus 0.75 percent of the facility share of non-banked table game revenues.

(3) On or before the date the Commission renews the license, the licensee shall pay the first installment of the license renewal fee, representing 20 percent of the total fee due.

(4) Subsequent payments shall be paid on the anniversary of the license renewal.

(5) At the conclusion of each 5-year period, a new 3-year average will be calculated as the basis for the renewal fee payments over the next 5 years.

Md. Code Regs. 36.03.03.10

Regulation .10 adopted 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.