Md. Code Regs. 36.03.10.09

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

Section 36.03.10.09 - Complimentary Services

A. Definition.

(1) A facility operator shall be under the authority of the County Alcoholic Beverages Licensing Authority for the county in which the facility is located with regard to the sale to individuals of food and alcoholic beverages;

(2) Except as provided in this section, a facility operator may not provide food or alcoholic beverages to individuals at no cost;

(3) Food or alcoholic beverages offered by a facility operator for sale to individuals may be offered only at prices that are determined by the County Alcoholic Beverages Licensing Authority to be commensurate with the price of similar types of food and alcoholic beverages at restaurants in the county in which the facility is located; and

(4) A facility operator may provide food at no cost to individuals to the same extent allowed under Article 2B, § 12-106, Annotated Code of Maryland, for a person engaged in the sale or barter of spirituous, malt, or intoxicating liquors and licensed in Maryland.

B. A facility operator shall develop, maintain in writing, and implement adequate internal controls over the authorization and provision of complimentary services.

C. A facility operator shall at all times make available to the Commission the internal controls required under §C of this regulation but is not required to include them in the system of internal controls submitted to the Commission for approval under Regulation .05 of this chapter.

D. A facility operator shall collect and retain data pertaining to the cost of, and number of individuals provided with, each category of complimentary services.

E. Report.

(1) A facility operator shall submit to the Commission a quarterly report summarizing complimentary services provided during the reporting period.

(2) The report shall include year-to-date totals of complimentary services provided.

(3) The report must be submitted:

(i) On or before the 15th day of the month following the end of each quarter; or

(ii) At the request of the Commission.

F. The report required under §F of this regulation shall:

(1) Separate complimentary services into the following categories:

(a) Rooms;

(b) Food and Beverage;

(c) Travel;

(d) Gifts:

(i) Cash; and

(ii) Noncash; and

(e) Other; and

(2) Determine the cost of complimentary services provided to a player as follows:

(a) Complimentary services offered by a facility operator in the normal course of business shall be reported at an amount based upon the full retail price normally charged for the service by the facility operator;

(b) Complimentary services not offered for sale by the facility operator in the normal course of business but provided directly by the facility operator to the player shall be reported at an amount based upon the actual cost to the facility operator of providing the service;

(c) Complimentary services provided directly or indirectly on behalf of a facility operator by a third party not related to the facility operator shall be reported at an amount based upon the actual cost to the facility operator of having the third party provide the service; and

(d) Complimentary services provided directly or indirectly on behalf of a facility operator by a third party related to the facility operator shall be reported at an amount based upon the actual cost to the third party of providing the service.

G. A facility operator shall submit to the Commission a report identifying a player who, together with guests, received $5,000 or more in complimentary services within a period of 5 consecutive days.

H. The report required by § G of this regulation shall:

(1) State the reason complimentary services were provided;

(2) Include the player's rating in the facility operator's player rating system at the time the complimentary services were provided;

(3) Disclose the total amount, including year-to-date totals, provided in complimentary services separated into the following categories:

(a) Rooms;

(b) Food and Beverage;

(c) Travel;

(d) Gifts:

(i) Cash; and

(ii) Noncash; and

(e) Other; and

(4) Be submitted:

(a) At least quarterly, by the 15th day of the month following the end of each quarter; or

(b) At the request of the Commission.

Md. Code Regs. 36.03.10.09

Effective date:
Regulations .09 adopted as an emergency provision effective March 1, 2013 (40:6 Md. R. 470); emergency action expired effective July 20, 2013
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Regulations .09 adopted effective adopted effective August 19, 2013 (40:16 Md. R. 1347)
Regulation .09 amended effective 42:6 Md. R. 515, eff.3/30/2015