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License Cost

Application fees vary by license type (e.g., sports betting ranges from $50,000 to $2 million; casinos substantially higher)

Annual Fees

Paid for renewal; sports betting renewal is 1% of average annual proceeds over last three years, excluding the 15% state share

Income Taxes

15% of gross revenue for sports betting; casinos and lottery subject to state tax regulations

Player Winnings Taxes

State and federal withholding requirements on large wins

Financial Guarantees

Sports betting licensees must maintain a minimum $500,000 reserve in cash or equivalent

Liquidity Requirements

Sufficient reserves required for all liabilities/winnings

Financial Reporting Requirements

Timely submission of revenue and operational reports as required by regulation

Application Processing Time

Dependent on license; rigorous vetting can extend processing time

Required Documents

Complete application, personal and business background, financial statements, compliance attestations

Business Plan Requirements

May be required depending on license type and scale

Internal Policy Requirements

AML, KYC, responsible gaming, and security policies mandatory

Testing Requirements

Technical and compliance testing for systems and games

Certification Requirements

Certification required for key equipment, software, and RNGs

Staff Qualifications

Key personnel subject to background and suitability review

Physical Office Requirements

Requirement varies by size and type of operation

Local Representative Requirements

Required for certain licenses and locations

Marketing Restrictions

Prohibitions regarding minors and problem gambling messaging requirements

Responsible Gaming Measures

Operator responsible for responsible gaming tools, self-exclusion, and problem gambling assistance

Self-Exclusion System

Statewide self-exclusion programs administered by regulator

Age Verification Procedures

21+ licensee area restrictions for casino and sports betting

KYC Procedures

Comprehensive procedures required

Player Funds Protection

Licensees required to maintain sufficient reserves and separation of player funds

Payout Timelines

Timely payments mandated by state law

Permitted Games List

Approved games and bet types published by regulatory body

Betting Limits

Prescribed for certain categories; casino and sports betting limits per license conditions

RTP Requirements

Not specified for all game types; must not be misleading

Jackpot Regulations

Progressive and pooled jackpots permitted subject to state regulation

Live Game Requirements

Live dealer and on-site game approval required

Affiliate Program Rules

Affiliates/vendors subject to registration and background checks

Security Standards

Systems must meet state-mandated controls and standards

Encryption Requirements

Data transmission must employ robust encryption

Backup Requirements

Regular system and data backups required

Monitoring Systems

Real-time monitoring for compliance and anti-fraud required

Operation Logging

Comprehensive logging required for all gaming operations

Anti-Fraud Systems

Systems for detecting and preventing fraudulent activity required

API Integration Standards

Must comply with regulator standards for interoperability and security

Hosting Requirements

Subject to regulator review; Maryland location required for certain servers

Scalability Requirements

Systems must be able to handle test volumes and peak demand

Technical Support Availability

Required for major real-money operators

License Duration

5 years for sports betting and many gaming licenses

Renewal Procedure

Renewal application, compliance review, and payment of renewal fee

Penalties for Non-Compliance

License denial, suspension, fines, and/or criminal prosecution

Ownership Change Rules

Material changes to ownership must be approved by regulator

Mergers and Acquisitions Rules

Subject to review and approval by the commission

Subcontractor Regulations

Certain vendor relationships must be disclosed and registered/certified

Branding Requirements

Strictly controlled use of state logos, trademarks, or promotional materials

Intellectual Property Protection

Must hold lawful rights to operate software and games; compliance with US IP law

Dispute Arbitration

Disputes subject to state administrative and judicial remedies

Insurance Requirements

Insurance coverage for liability and business continuity required for some licenses

Social Responsibility Programs

Participation in problem gambling and responsible gaming initiatives mandatory

Staff Training Requirements

Ongoing training for compliance and responsible gaming

Accessibility Standards

Operators encouraged to meet accessibility guidelines for services and platforms

Multilingual Support

English mandatory; other languages recommended for customer service

Esports Betting Regulations

Permitted under sports betting license with regulator approval

Fantasy Sports Regulations

Regulated by the commission, including licensing for operators

Social Gaming Regulations

Not regulated if no real-money prizes, otherwise requires compliance

Official Address

Maryland Lottery and Gaming Control Agency, 1800 Washington Blvd, Suite 330, Baltimore, MD 21230

Work Hours

Monday–Friday, 8:00 AM–4:30 PM

Facebook URL

https://www.facebook.com/mdlottery

Twitter/X URL

https://twitter.com/mdlottery

YouTube URL

https://www.youtube.com/@marylandlottery

Departments

Administration, Finance & IT; Gaming & Operations; Lottery; Marketing

FAQ Question 1

What is Maryland Lottery and Gaming License?

FAQ Answer 1

The Maryland Lottery and Gaming License covers the legal operation of casinos, sports betting, and lottery products under strict state regulatory supervision. It requires applicants to meet financial, operational, and suitability requirements backed by ongoing compliance reporting and responsible gaming measures. The license is issued by the Maryland Lottery and Gaming Control Commission.

FAQ Question 2

Which jurisdiction issues Maryland Lottery and Gaming License?

FAQ Answer 2

The Maryland Lottery and Gaming License is issued by the State of Maryland, through the Maryland Lottery and Gaming Control Agency/Commission.

FAQ Question 3

What is the cost of obtaining Maryland Lottery and Gaming License?

FAQ Answer 3

Costs vary by license type. For example, casino licenses require significant investment; mainline sports betting licenses range from $50,000 (B-2) to $2 million (A-1), with mobile licenses at $500,000, plus required bonds and a 15% revenue tax.

FAQ Question 4

What are the main requirements for Maryland Lottery and Gaming License?

FAQ Answer 4

Applicants must demonstrate integrity, financial stability, submit to extensive background checks, maintain proper reserves, adopt AML and responsible gaming policies, provide regular reporting, and adhere to state technical, operational, and social responsibility requirements. Non-compliance may result in license denial or revocation.