Maryland Sports Wagering Requires State Gaming Commission License

Maryland's Sports Wagering Law, codified at State Government Article §§ 9-1E-01 through 9-1E-33, defines sports wagering as 'the business of accepting wagers on any sporting event by any system or method of wagering, including single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, and straight bets' (§ 9-1E-01(j)). Section 9-1E-05(a) requires a license for anyone who operates sports wagering, operates it on behalf of a licensee (including an online sports wagering operator), supplies or services wagering equipment, or is directly employed in sports wagering operations.

The Maryland Lottery and Gaming Control Commission issues licenses in five classes: a Class A-1 sports wagering facility license (casinos/racetracks with the largest video lottery operations) costs $2,000,000 to apply for; Class A-2 costs $1,000,000; Class B-1 costs $250,000; Class B-2 costs $50,000; and a standalone mobile sports wagering license costs $500,000. Licenses run for five years and renew for another five upon payment of a fee equal to 1% of the licensee's average annual retained proceeds over the prior three years. The Sports Wagering Application Review Commission (SWARC) independently reviews and scores every application, with minority business enterprise participation goals it cannot waive.

Under § 9-1E-12, retail (in-person) licensees keep 85% of wagering proceeds and remit 15% to the state; mobile licensees keep 80% and remit 20% (raised from 15% by the 2025 Budget Reconciliation and Financing Act, effective June 1, 2025). Starting in fiscal year 2026, 5 percentage points of the mobile contribution go to the state's General Fund, with the rest flowing monthly to the Blueprint for Maryland's Future Fund. Unclaimed winnings older than 182 days go to the Problem Gambling Fund.

The Commission can fine a licensee up to $5,000 for each violation of the sports wagering law or its regulations, and treats every day a violation continues as a separate violation (§ 9-1E-08). That civil penalty doesn't replace criminal exposure: accepting or placing a wager with anyone not licensed under this subtitle is unlawful gambling under Criminal Law § 12-102, a misdemeanor punishable by up to 6 months in jail, a $5,000 fine, or both.