Sports Wagering - Wagers on Historical Horse Races - Authorization

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1240*

HOUSE BILL 1240
C7, C6 6lr0860
HB 1048/25 – W&M CF SB 639
By: Delegates Fair and Buckel
Introduced and read first time: February 11, 2026
Assigned to: Ways and Means and Appropriations

A BILL ENTITLED

AN ACT concerning 1

Sports Wagering – Wagers on Historical Horse Races – Authorization 2

FOR the purpose of altering the definition of “sporting event” for purposes of provisions of 3
law governing sports wagering to include historical horse races; authorizing certain 4
sports wagering facility licensees to accept wagers on historical horse races in a 5
certain manner and subject to certain limitations; providing for the distribution of 6
proceeds from sports wag ering on historical horse races; submitting this Act to a 7
referendum of the qualified voters of the State; and generally relating to sports 8
wagering on historical horse races. 9

BY repealing and reenacting, without amendments, 10
Article – Economic Development 11
Section 5–1501(b) 12
Annotated Code of Maryland 13
(2024 Replacement Volume and 2025 Supplement) 14

BY repealing and reenacting, with amendments, 15
Article – Economic Development 16
Section 5–1501(c)(1) 17
Annotated Code of Maryland 18
(2024 Replacement Volume and 2025 Supplement) 19

BY repealing and reenacting, without amendments, 20
Article – State Government 21
Section 9–1A–28(a), 9–1E–01(a), (b), (d), (h), (j) through ( n), and (p), and 22
9–1E–06(a)(1) and (2) 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2025 Supplement) 25

BY repealing and reenacting, with amendments, 26
Article – State Government 27
2 HOUSE BILL 1240

Section 9–1A–28(b)(1), 9–1E–01(i), 9–1E–09(a) and (b), and 9–1E–12 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2025 Supplement) 3

BY adding to 4
Article – State Government 5
Section 9–1E–09(f) and 9–1E–09.1 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2025 Supplement) 8

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10

Article – Economic Development 11

5–1501. 12

(b) There is a Small, Minority, and Women–Owned Businesses Account under the 13
authority of the Department. 14

(c) (1) The Account shall receive money as required under [§ 9 –1A–27] §§ 15
9–1A–27 AND 9–1E–12 of the State Government Article. 16

Article – State Government 17

9–1A–28. 18

(a) There is a Purse Dedication Account under the authority of the State Racing 19
Commission. 20

(b) (1) The Account shall receive money as required under § 9 –1A–27 of this 21
subtitle AND § 9–1E–12 OF THIS TITLE. 22

9–1E–01. 23

(a) In this subtitle the following words have the meanings indicated. 24

(b) “Commission” has the meaning stated in § 9–1A–01 of this title. 25

(d) “Horse racing licensee” means the holder of a license issued by the State 26
Racing Commission under § 11–510 of the Business Regulation Article. 27

(h) “Proceeds” means the amount of money wagered on a sporting event, less: 28

(1) the amount returned to successful bettors; 29

HOUSE BILL 1240 3

(2) the cash equivalents of any merchandise or thing of value awarded as 1
a prize to successful bettors; 2

(3) free bets and promotional credits redeemed by bettors; and 3

(4) all excise taxes paid by a sports wagering licensee in accordance with 4
federal law. 5

(i) (1) “Sporting event” means: 6

(i) a professional sports or athletic event; 7

(ii) a collegiate sports or athletic event; 8

(iii) an Olympic or international sports or athletic event; 9

(iv) an electronic sports or video game competition in which each 10
participant is at least 18 years old; 11

(v) a motor race event sanctioned by a motor racing governing entity; 12

(vi) except as otherwise prohibited under Title 11 of the Business 13
Regulation Article or the federal Interstate Horse Racing Act, a LIVE horse race, held in or 14
out of the State, if consented to and approved by: 15

1. the horse racing licensee of the applicable breed; 16

2. the organization representing the majority of the owners 17
and trainers of the applicable breed in the State; 18

3. the organization representing the majority of the 19
applicable breeders in the State; and 20

4. the State Racing Commission; 21

(VII) A HISTORICAL HORSE RACE; 22

[(vii)] (VIII) any portion of a sporting event, including the individual 23
performance statistics of athletes or competitors in a sporting event; or 24

[(viii)] (IX) an award event or competition of national or international 25
prominence if expressly authorized by the Commission. 26

(2) “Sporting event” does not include: 27

(i) a high school sports or athletic event; or 28

4 HOUSE BILL 1240

(ii) a fantasy competition regulated under Subtitle 1D of this title. 1

(j) “Sports wagering” means the business of accepting wagers on any sporting 2
event by any system or method of wagering, including single –game bets, teaser bets, 3
parlays, over –under, moneyline, pools, exchange wagering, in –game wagering, in –play 4
bets, proposition bets, and straight bets. 5

(k) (1) “Sports wagering facility licensee” means a sports wagering licensee 6
who is authorized to conduct and operate sports wagering at the sports wagering facility 7
owned, leased, or occupied by the sports wagering licensee. 8

(2) “Sports wagering facility licensee” includes the holder of a Class A –1, 9
A–2, B–1, or B–2 sports wagering facility license issued under § 9–1E–06 of this subtitle. 10

(l) “Sports wagering license” means a license issu ed by the Commission under 11
this subtitle that authorizes the holder to accept wagers on sporting events. 12

(m) “Sports wagering licensee” means the holder of a sports wagering license. 13

(n) “Video lottery facility” has the meaning stated in § 9–1A–01 of this title. 14

(p) “Video lottery operator” has the meaning stated in § 9–1A–01 of this title. 15

9–1E–06. 16

(a) (1) On an award of a license by the Sports Wagering Application Review 17
Commission established under § 9–1E–15 of this subtitle, the Commission shall: 18

(i) issue a Class A–1 sports wagering facility license to an applicant 19
that meets the requirements for licensure under this subtitle who is: 20

1. a video lottery operator with more than 1,000 video lottery 21
terminals; or 22

(ii) issue a Class A–2 sports wagering facility license to an applicant 23
that meets the requirements for licensure under this subtitle who is: 24

1. a video lottery operator with 1,000 or fewer video lottery 25
terminals; or 26

2. a horse racing licensee; 27

(iii) subject to paragraphs (2) and (3) of this subsection, issue a Class 28
B–1 sports wagering facility license to any applicant who meets the requirements for 29
licensure under this subtitle and who is not eligible for a Class B–2 sports wagering facility 30
license; 31

HOUSE BILL 1240 5

(iv) subject to paragraphs (2) and (3) of this subsection, issue a Class 1
B–2 sports wagering facility license to any applicant who is a person with less than: 2

1. 25 full–time equivalent employees; or 3

2. $3,000,000 in annual gross receipts; and 4

(v) issue not more than 60 mobile sports wagering licenses to any 5
applicant who meets the requirements for licensure under this subtitle. 6

(2) (i) The Commission shall issue a Class B –1 or Class B –2 sports 7
wagering facility license to an applicant that meets the requirements for licensure under 8
this subtitle who is: 9

1. the holder of a license issued by the State Racing 10
Commission under § 11 –524 of the Business Regulation Article, including a subsidiary of 11
the license holder; 12

2. a person who is the o wner or lessee of a facility approved 13
for satellite simulcast betting before January 1, 2021, unless the satellite simulcast facility 14
is located at a video lottery facility or a racetrack; and 15

3. a person who holds a commercial bingo license, if the 16
facility at which the person operates commercial bingo was permitted to operate at least 17
200 electronic bingo machines or electronic tip jar machines on January 1, 2021. 18

(ii) In addition to the Class B –1 and B –2 sports wagering facility 19
licenses issued in accordance with subparagraph (i) of this paragraph, the Commission may 20
issue not more than 30 Class B –1 and Class B –2 sports wagering facility licenses under 21
paragraph (1) of this subsection. 22

9–1E–09. 23

(a) [A] EXCEPT AS PROVIDED IN SUBSECTION (F) OF THIS SECTION, A sports 24
wagering facility licensee may accept wagers on sporting events that are made: 25

(1) by an individual physically present: 26

(i) at a video lottery facility, if the sports wagering licensee is a video 27
lottery operator; 28

(ii) at Pimlico Race Course or a race track located at Laurel Park, if 29
the sports wagering licensee is a horse racing licensee; 30

(iii) subject to subsection (d) of this section, at a stadium primarily 31
used for professional football (NFL), professional major leag ue baseball, professional 32
hockey (NHL), professional basketball (NBA), or professional soccer (MLS), if the sports 33
6 HOUSE BILL 1240

wagering licensee is the owner or a lessee or the designee of the owner or lessee of the 1
stadium; 2

(iv) at the Maryland State Fairgrounds in Timonium, if the sports 3
wagering licensee is the holder of a license issued by the State Racing Commission under § 4
11–524 of the Business Regulation Article, or a subsidiary of the license holder; 5

(v) at a satellite simulcast facility, if the sports wagering licensee is 6
the owner or lessee of a satellite simulcast facility described under § 9 –1E–06(a)(2) of this 7
subtitle; 8

(vi) at a commercial bingo facility with at least 200 electronic bingo 9
machines or electronic tip jar machines, if the sports wagering licensee is a commercial 10
bingo operator described under § 9–1E–06(a)(2) of this subtitle; or 11

(vii) subject to subsection (e) of this section, at the facility identified 12
in the application approved by the Sports Wagering Application Review Commission, if the 13
sports wagering licensee is a holder of a Class B –1 or B–2 sports wagering facility license; 14
or 15

(2) on a self –service kiosk, device, or machine, approved by the 16
Commission, located in a facility or at a location identified under item (1) of this subsection. 17

(b) [A] EXCEPT AS PROVIDED IN SUBSECTION (F) OF THIS SECTION, A mobile 18
sports wagering licensee may accept wagers on sporting events that are made through 19
online sports wagering by an individual physically located in the State. 20

(F) (1) SUBJECT TO § 9–1E–09.1 OF THIS SUBTITLE, A SPORTS WAGERING 21
FACILITY LICENSEE MAY ACCEPT WAGERS ON HISTORICAL HORSE RACES THAT ARE 22
MADE BY AN INDIVIDUAL PHYSICALLY PRESENT: 23

(I) AT A VIDEO LOTTERY F ACILITY, IF THE SPORTS WAGERI NG 24
LICENSEE IS THE HOLD ER OF A CLASS A–1 OR A–2 SPORTS WAGERING FACI LITY 25
LICENSE UNDER § 9–1E–06(A)(1)(I) OR (II) OF THIS SUBTITLE; 26

(II) AT A THOROUGHBRED OR STANDARDBRED RACE COURSE, IF 27
THE SPORTS WAGERING LICENSEE IS THE HOLD ER OF A CLASS A–2 SPORTS 28
WAGERING FACILITY LI CENSE ISSUED UNDER § 9–1E–06(A)(1)(II) OF THIS 29
SUBTITLE; 30

(III) AT THE MARYLAND STATE FAIRGROUNDS IN TIMONIUM, IF 31
THE SPORTS WAGERING LICENSEE IS THE HOLD ER OF A LICENSE ISSU ED BY THE 32
STATE RACING COMMISSION UNDER § 11–524 OF THE BUSINESS REGULATION 33
ARTICLE, OR A SUBSIDIARY OF THE LICENSE HOLDER; OR 34

HOUSE BILL 1240 7

(IV) AT A SATELLITE SIMUL CAST FACILITY , IF THE SPORTS 1
WAGERING LICENSEE IS THE OWNER OR LESSEE OF A SATELLITE SIMUL CAST 2
FACILITY DESCRIBED UNDER § 9–1E–06(A)(2) OF THIS SUBTITLE. 3

(2) A SPORTS WAGERING FACILITY LICENSEE TH AT IS NOT 4
DESCRIBED UNDER PARA GRAPH (1) OF THIS SUBSECTION O R A MOBILE SPORTS 5
WAGERING LICENSEE MAY NOT ACCEPT WAGERS ON HISTORICAL HORSE RACES. 6

9–1E–09.1. 7

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 8
INDICATED. 9

(2) “MINUS POOL” MEANS A MUTUEL POOL IN WHICH THE AMOUNT 10
OF MONEY TO BE DISTR IBUTED ON WINNING WA GERS EXCEEDS THE AMO UNT OF 11
MONEY CONTAINED IN THAT MUTUEL POOL. 12

(3) “MUTUEL POOL” HAS THE MEANING STATED IN § 11–101 OF THE 13
BUSINESS REGULATION ARTICLE. 14

(4) “PARI–MUTUEL BETTING” HAS THE MEANING STATED IN § 11–101 15
OF THE BUSINESS REGULATION ARTICLE. 16

(B) THIS SECTION APPLIES ONLY TO A SPORTS WAG ERING FACILITY 17
LICENSEE AUTHORIZED TO OFFER SPORTS WAGE RING ON HISTORICAL H ORSE 18
RACING IN ACCORDANCE WITH § 9–1E–09 OF THIS SUBTITLE. 19

(C) SPORTS WAGERING ON HISTORICAL HORSE RACES: 20

(1) SHALL BE CONDUCTED AS PARI–MUTUEL BETTING; AND 21

(2) MAY BE CONDUCTED ON HISTORICAL HORSE RAC ES OF ANY 22
BREED. 23

(D) (1) SPORTS WAGERING ON HI STORICAL HORSE RACES MAY BE 24
PERMITTED ONLY IN A DESIGNAT ED AREA ON THE PREMI SES OF THE SPORTS 25
WAGERING FACILITY LICENSEE THAT IS APPROVED BY THE COMMISSION. 26

(2) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE 27
SPORTS WAGERING FACI LITY LICENSEE SHALL POST IN CONSPICUOUS PLACES IN 28
THE DESIGNATED AREA A GENERAL EXPLANATION OF PARI –MUTUEL BETTING 29
OFFERED ON HISTORICA L HORSE RACES AND AN EXPLANATION OF EACH 30
PARI–MUTUEL POOL OFFERED. 31
8 HOUSE BILL 1240

(II) THE SPORTS WAGERING FACILITY LICENSEE SHALL SUBMIT 1
THE EXPLANATION TO T HE COMMISSION FOR APPROV AL BEFORE POSTING THE 2
EXPLANATION. 3

(E) A SPORTS WAGERING FACILITY LICENSEE MAY CONDUCT WAGERING ON 4
HISTORICAL HORSE RAC ES ONLY ON THE DAYS AND HOURS APPROVED B Y THE 5
COMMISSION. 6

(F) BEFORE OFFERING WAGERING ON HISTORICAL HORSE RACES, A SPORTS 7
WAGERING FACILITY LICENSEE SHALL FIRST OBTAIN THE COMMISSION’S WRITTEN 8
APPROVAL OF ALL TYPES OF WAGERS OFFERED. 9

(G) (1) (I) AN INDIVIDUAL MAY WAGER ON HISTORICAL HORSE RACES 10
ONLY ON A TERMINAL APPROVED BY THE COMMISSION. 11

(II) SUBJECT TO SUBPARAGRA PH (III) OF TH IS PARAGRAPH , 12
THE COMMISSION SHALL APPROVE THE TOTAL NUMBER OF TERMINALS THAT MAY 13
BE AVAILABLE AT THE SPORTS WAGERING FACILITY. 14

(III) THE COMMISSION MAY NOT AUTHORIZE THE OPERATION OF 15
MORE THAN 4,000 TERMINALS UNDER THIS SECTION. 16

(2) APPROXIMATE ODDS OR PAYOUTS FOR EACH PARI–MUTUEL POOL 17
SHALL BE POSTED OR M ADE AVAILABLE ON EAC H TERMINAL FOR VIEWI NG BY 18
INDIVIDUAL BETTORS. 19

(3) ONCE A BETTOR DEPOSIT S AN AMOUNT IN THE T ERMINAL 20
OFFERING WAGERING ON HISTORICAL HORSE RAC ES, ONE OR MORE HISTORIC AL 21
HORSE RACES SHALL BE MADE AVAILABLE FOR WAGERING. 22

(4) BEFORE THE BETTOR MAK ES ANY WAGER SELECTI ONS, THE 23
TERMINAL MAY NOT DISPLAY ANY INFORMATION THAT WOULD ALLOW THE BETTOR 24
TO IDENTIFY THE HIST ORICAL HORSE RACE OR RACES ON WHICH THE B ETTOR IS 25
WAGERING, INCLUDING THE LOCATION O F THE RACE OR RACES , THE DATE ON 26
WHICH THE RACE OR RA CES WERE RUN, THE NAMES OF THE HOR SES IN THE RACE 27
OR RACES, OR THE NAMES OF THE JOCKEYS OR DRIVERS T HAT RODE THE HORSES 28
IN THE RACE OR RACES. 29

(5) (I) THE TERMINAL SHALL MA KE AVAILA BLE TRUE AND 30
ACCURATE PAST PERFOR MANCE INFORMATION ON THE HISTORICAL HORSE RACE 31
TO THE BETTOR BEFORE THE BETTOR MAKES THE BETTOR’S WAGER SELECTIONS. 32

HOUSE BILL 1240 9

(II) THE INFORMATION PROVI DED UNDER SUBPARAGRA PH (I) 1
OF THIS PARAGRAPH SHALL BE: 2

1. CURRENT AS OF THE DAY THE HISTORIC AL HORSE 3
RACE WAS ACTUALLY RUN; AND 4

2. DISPLAYED ON THE TER MINAL IN DATA OR 5
GRAPHICAL FORM. 6

(6) (I) AFTER A BETTOR FINALI ZES THE BETTOR ’S WAGER 7
SELECTIONS, THE TERMINAL SHALL DISPLAY: 8

1. THE BETTOR’S SELECTIONS; 9

2. THE OFFICIAL RESULTS OF EACH RACE; AND 10

3. A REPLAY OF THE RACE OR RACES , OR A PORTION 11
THEREOF, WHETHER BY DIGITAL OR ANIMATED DEPICTION OR BY WAY OF A VIDEO 12
RECORDING. 13

(II) THE IDENTITY OF EACH RACE SHALL BE REVEALED TO THE 14
BETTOR AFTER THE BETTOR HAS PLACED THE BETTOR’S WAGER. 15

(H) (1) A WAGER ON A HISTORICA L HORSE RACE OR ON MULTIPLE 16
HISTORICAL HORSE RACES SHALL BE PLACED I N PARI–MUTUEL POOLS APPROVED 17
BY THE COMMISSION. 18

(2) A PAYOUT TO A WINNING BETTOR SHALL BE PAID FROM MONEY 19
WAGERED BY BETTORS AND MAY NOT CONSTITUTE A WAGER AGAINST T HE SPORTS 20
WAGERING FACILITY LICENSEE. 21

(3) A SPORTS WAGERING FACI LITY LICENSEE CONDUC TING 22
WAGERING ON HISTORIC AL HORSE RACES MAY N OT CONDUCT WAGERING IN A 23
MANNER THAT RESULTS IN BETTORS WAGERING AGAINST THE SPORTS WAGERING 24
FACILITY LICENSEE , OR IN A MANNER SO TH AT THE AMOUNT RETAIN ED BY THE 25
SPORTS WAGERING FACI LITY LICENSEE IS DEP ENDENT ON THE OUTCOM E OF ANY 26
PARTICULAR RACE OR THE SUCCESS OF ANY PARTICULAR WAGER. 27

(I) (1) A SPORTS WAGERING FACI LITY SHALL OPERATE A HISTORICAL 28
HORSE RACING PARI –MUTUEL POOL OR POOLS IN A MANNER AND METH OD 29
APPROVED BY THE COMMISSION. 30

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(2) A SPORTS WAGERING FACI LITY LICENSEE OFFERI NG WAGERING 1
ON HISTORICAL HORSE RACES MAY OPERATE A PLAYER–FUNDED POOL OR POOLS IN 2
A MANNER AND METHOD APPROVED BY THE COMMISSION FOR THE PU RPOSE OF 3
ENSURING THAT SUFFIC IENT FUNDS ARE AVAIL ABLE AT ALL TIMES TO PAY ANY 4
WINNING WAGERS IN SITUATIONS WHERE A PARI–MUTUEL POOL BECOMES A MINUS 5
POOL. 6

(3) FOR EACH WAGER MADE , A SPORTS WAGERING FA CILITY 7
LICENSEE MAY ASSIGN A PERCENTAGE OF THE WAGER TO A PLAYER–FUNDED POOL 8
OR POOLS. 9

(J) (1) THE MINIMUM WAGER THA T A SPORTS WAGERING FACILITY 10
LICENSEE MAY ACCEPT ON A WAGER BASED ON THE OUTCOME OF A HIS TORICAL 11
HORSE RACE OR RACES IS 10 CENTS. 12

(2) THE MINIMUM PAYOUT O N ANY WAGER MAY NOT BE LESS THAN 13
THE AMOUNT WAGERED. 14

9–1E–12. 15

(a) [(1)] The Commission shall account to the Comptroller for all of the revenue 16
under this subtitle. 17

[(2)] (B) (1) The proceeds from sports wagering ON ANY SPORTING 18
EVENT OTHER THAN HIS TORICAL HORSE RACES , less the amount retained by the 19
licensee under [subsection (b)(1) of this section] PARAGRAPH (2) OF THIS SUBSECTION, 20
shall be under the control of the Comptroller and distributed as provided under 21
PARAGRAPH (3) OF THIS subsection [(b) of this section]. 22

[(b) (1)] (2) (i) Except as provided in subparagraphs (ii), (iii), and (iv) of 23
this paragraph, all proceeds from sports wagering shall be electronically transferred 24
monthly into the State Lottery Fund established under Subtitle 1 of this title. 25

(ii) A Class A –1 and A –2 sports wagering facility licensee shall 26
retain 85% of the proceeds from sports wagering conducted at the locations described in § 27
9–1E–09(a) of this subtitle. 28

(iii) A Class B –1 and B –2 sports wagering facility licen see shall 29
retain 85% of the proceeds from sports wagering conducted at the location described in the 30
licensee’s application. 31

(iv) A mobile sports wagering licensee shall retain 80% of the 32
proceeds from online sports wagering received by the licensee. 33

HOUSE BILL 1240 11

[(2)] (3) (i) Except as provided in subparagraph (ii) of this paragraph, 1
all proceeds from sports wagering in the State Lottery Fund established under Subtitle 1 2
of this title shall be distributed on a monthly basis, on a properly approved transmittal 3
prepared by the Commission to the Blueprint for Maryland’s Future Fund established 4
under § 5–206 of the Education Article. 5

(ii) For fiscal year 2026 and each fiscal year thereafter, 5% of the 6
proceeds attributable to mobile sports wagering shall be deposited in the General Fund. 7

(c) (1) THE PROCEEDS FROM SPORTS WAGERING ON HISTORICAL HORSE 8
RACES, LESS THE AMOUNT RETAINED BY THE LICENSEE UNDER PARAGRAPH (2) OF 9
THIS SUBSECTION , SHALL BE UNDER THE C ONTROL OF THE COMPTROLLER AND 10
DISTRIBUTED AS PROVIDED UNDER PARAGRAPH (3) OF THIS SUBSECTION. 11

(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPHS (II) AND (III) OF 12
THIS PARAGRAPH, ALL PROCEEDS FROM SPORTS WAGERING ON HISTORICAL HORSE 13
RACES SHALL BE TRANS FERRED ELECTRONICALLY MONTHLY INTO THE STATE 14
LOTTERY FUND ESTABLISHED UNDER SUBTITLE 1 OF THIS TITLE. 15

(II) IF THE SPORTS WAGERIN G FACILITY LICENSEE IS A VIDEO 16
LOTTERY OPERATOR, THE SPORTS WAGERING FACI LITY LICENSEE SHALL RETAIN 17
THE SAME PERCENTAGE OF THE PROCEEDS FROM HISTORICAL HORSE RACES THAT 18
THE VIDEO LOTTERY OP ERATOR RETAINS FROM PROCEEDS FROM VIDEO LOTTERY 19
TERMINALS UNDER § 9–1A–27(A)(2), (7), AND (8), (B), AND (C)(1)(II) AND (2) OF THIS 20
TITLE. 21

(III) A SPORTS WAGERING FACI LITY LICENSEE THAT IS NOT A 22
VIDEO LOTTERY OPERAT OR SHALL RETA IN 60% OF THE PROCEEDS FROM 23
HISTORICAL HORSE RACES WAGERS AT THE SPORTS WAGERING FACILITY. 24

(3) ON A MONTHLY BASIS , THE COMPTROLLER SHALL DISTRIBUTE 25
THE PROCEEDS FROM SPORTS WAGERING ON HISTORIC AL HORSE RACES IN TH E 26
STATE LOTTERY FUND ESTABLISHED UNDE R SUBTITLE 1 OF THIS TITLE IN THE 27
FOLLOWING MANNER: 28

(I) THE SAME PERCENTAGE OF PROCEEDS SHALL BE 29
DISTRIBUTED AS LOCAL IMPACT GRANTS AND TO THE STATE LOTTERY AND GAMING 30
CONTROL AGENCY, THE PURSE DEDICATION ACCOUNT, AND THE SMALL, 31
MINORITY, AND WOMEN–OWNED BUSINESSES ACCOUNT IN THE SAME MANNER AS 32
PROCEEDS FROM VIDEO LOTTERY TERMINALS UNDER § 9–1A–27 OF THIS TITLE; 33

(II) 5% OF THE PROCEEDS SHAL L BE DEPOSITED IN TH E 34
GENERAL FUND; AND 35

12 HOUSE BILL 1240

(III) THE REMAINDER OF THE PROCEEDS SHAL L BE 1
DISTRIBUTED TO THE BLUEPRINT FOR MARYLAND’S FUTURE FUND ESTABLISHED 2
UNDER § 5–206 OF THE EDUCATION ARTICLE. 3

(D) A winning wager on a sporting event that is not claimed by the winner within 4
182 days after the wager is won shall: 5

(1) become the property of the State; and 6

(2) be distributed to the Problem Gambling Fund established under § 7
9–1A–33 of this title. 8

[(d)] (E) If a sports wagering licensee returns to successful players more than 9
the amount of money wagered in any month, the licensee may subtract that amount fr om 10
the proceeds of up to the three following months. 11

[(e)] (F) The admissions and amusement tax may not be imposed on any 12
proceeds from sports wagering. 13

SECTION 2. AND BE IT FURTHER ENACTED, That before this Act, which 14
authorizes additional forms or expansion of commercial gaming, becomes effective, it first 15
shall be submitted to a referendum of the qualified voters of the State at the general 16
election to be held in November 2026, in accordance with Article XIX, § 1(e) of the Maryland 17
Constitution. The State Board of Elections shall do those things necessary and proper to 18
provide for and hold the referendum required by this section. If a majority of the votes cast 19
on the question are “For the referred law”, this Act shall become effective on January 1, 20
2027, but if a majority of the votes cast on the question are “Against the referred law”, this 21
Act, with no further action required by the General Assembly, shall be null and void. 22

SECTION 3. AND BE IT FURTHER ENACTED, That, subject to Section 2 of this 23
Act and for the sole purpose of providing for the referendum required by Section 2 of this 24
Act, this Act shall take effect July 1, 2026. 25