Fantasy Competitions - Alterations and Voluntary Exclusion Requirements

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0456*

SENATE BILL 456
C7 6lr1502
CF HB 731
By: Senator Rosapepe
Introduced and read first time: February 2, 2026
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Fantasy Competitions – Alterations and Voluntary Exclusion Requirements 2

FOR the purpose of altering the definition of “fantasy competition” for purposes of 3
provisions of law governing fantasy competitions to include certain competitions; 4
requiring, rather than authorizing, the State Lottery and Gaming Control 5
Commission to impose a certain annual fee for the registration of a fantasy 6
competition operator; requiring the Commission to establish a certain voluntary 7
exclusion program; prohibiting a fantasy competition operator from permitting an 8
individual on the mandatory exclusion list to establish a fantasy competition account 9
or participate in fantasy competitions; prohibiting a fantasy competition operator 10
from paying a prize or an award to certain excluded individuals; altering the 11
definitions of “sporting event” and “sports wagering” for purposes of provisions of law 12
governing the conduct of sports wagering; and generally relating to fantasy 13
competitions and sports wagering. 14

BY repealing and reenacting, without amendments, 15
Article – State Government 16
Section 9–1D–01(a), (b), (e), and (f) and 9–1E–01(a) 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2025 Supplement) 19

BY repealing and reenacting, with amendments, 20
Article – State Government 21
Section 9–1D–01(d), 9–1D–02, 9–1D–03, 9–1D–05, and 9–1E–01(i) and (j) 22
Annotated Code of Maryland 23
(2021 Replacement Volume and 2025 Supplement) 24

BY adding to 25
Article – State Government 26
Section 9–1D–05 27
Annotated Code of Maryland 28
2 SENATE BILL 456

(2021 Replacement Volume and 2025 Supplement) 1

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2
That the Laws of Maryland read as follows: 3

Article – State Government 4

9–1D–01. 5

(a) In this subtitle the following words have the meanings indicated. 6

(b) “Commission” has the meaning stated in § 9–1A–01 of this title. 7

(d) “Fantasy competition” includes any online fantasy or simulated game or 8
contest such as fantasy sports, in which: 9

(1) participants [own, manage, or coach] ASSEMBLE imaginary teams OR 10
ROSTERS; 11

(2) (I) THE VALUE OF all prizes and awards offered to winning 12
participants are established and made known to participants in advance of the game or 13
contest; 14

(II) MULTIPLE WINNING PARTICIPANTS MAY SHARE A PRIZE OR 15
AWARD; AND 16

(III) PRIZES MAY CONSIST O F FIXED AMOUNTS , TIERED 17
PAYOUTS, OR ANY OTHER CONDITI ONAL BONUS PAYOUTS , PROVIDED THAT ALL 18
PRIZE STRUCTURES ARE DISCLOSED IN ADVANCE BY THE FANTASY COMPE TITION 19
OPERATOR; 20

(3) A PARTICIPANT COMPET ES AGAINST OTHER PAR TICIPANTS, 21
INCLUDING PARTICIPATION IN CONTESTS WHERE THE PARTICIPANTS ASSEMBLE 22
ROSTERS OR TEAMS OF TWO OR MORE INDIVIDUAL REAL –LIFE ATHLETES AND 23
SELECT BETWEEN THE H IGHER OR LOWER OF PR OJECTED OR ACTUAL 24
PERFORMANCE STATISTICS FOR EACH ATHLETE; 25

[(3)] (4) the winning outcome of the game or contest reflects the relative 26
skill of the participants and is determined by statistics generated by actual individuals 27
(players or teams in the case of a professional sport); and 28

[(4)] (5) no winning outcome is based: 29

(i) solely on the performance of an individual athlete; or 30

SENATE BILL 456 3

(ii) on the score, point spread, or any performances of any single 1
real–world team or any combination of real–world teams. 2

(e) (1) “Fantasy competition operator” means any person that offers services 3
in connection with fantasy competitions to individuals by means of: 4

(i) the Internet; 5

(ii) a smart phone application; or 6

(iii) any other electronics, digital media, communication technology, 7
or device. 8

(2) “Fantasy competition operator” includes, for purposes of the federal 9
Bank Secrecy Act of 1970 and its related regulations, a gaming establishment having at 10
least $1,000,000 in annual gross revenue. 11

(3) “Fantasy competition operator” does not include an individual who: 12

(i) organizes a fantasy competition in which the individual also 13
participates; and 14

(ii) receives no compensation for organizing the fantasy competition. 15

(f) “Fantasy competition player” means an individual who participates in a 16
fantasy competition offered by a fantasy competition operator. 17

9–1D–02. 18

(a) [Notwithstanding the provisions of Title 12 of the Criminal Law Article or any 19
other title, and except as provided under subsection (b) of this section, the prohibitions 20
against] A FANTASY COMPETITION CONDUCTED IN COMPLIA NCE WITH THE 21
PROVISIONS OF THIS S UBTITLE DOES NOT CON STITUTE betting, wagering, [and] OR 22
gambling [do not apply to participation in a fantasy competition] FOR ANY PURPOSE. 23

(b) A person may not operate a kiosk or machine that offers f antasy competition 24
to the public in a place of business physically located in the State. 25

9–1D–03. 26

(a) A fantasy competition operator shall register with the Commission before the 27
fantasy competition operator may offer a fantasy competition or services in connection with 28
a fantasy competition in the State. 29

(b) Unless a registration is renewed for a 1–year term, the registration expires 1 30
year from the initial date of registration. 31

4 SENATE BILL 456

(c) (1) The Commission [may] SHALL impose [a] AN ANNUAL fee OF $50,000 1
for the registration of a fantasy competition operator in accordance with this section. 2

(2) THE COMMISSION SHALL DIST RIBUTE THE REGISTRAT ION FEE 3
COLLECTED UNDER THIS SUBSECTION TO THE BLUEPRINT FOR MARYLAND’S 4
FUTURE FUND ESTABLISHED UNDER § 5–206 OF THE EDUCATION ARTICLE. 5

9–1D–05. 6

(A) EACH FANTASY COMPETITION OPERATOR SHALL: 7

(1) DEVELOP AND MAINTAIN A PROGRAM TO MITIGATE AND CURTAIL 8
COMPULSIVE PLAY; AND 9

(2) INCLUDE A STATEMENT REGARDING OBTAINING ASSISTANCE 10
WITH REAL–MONEY GAMING PROBLEMS ON: 11

(I) THE FANTASY COMPETIT ION OPERATOR ’S PORTAL , 12
WEBSITE, OR COMPUTER OR MOBILE APPLICATION; AND 13

(II) ALL MARKETING MATERIALS AND ADVERTISEMENTS OF THE 14
FANTASY COMPETITION OPERATOR. 15

(B) (1) THE COMMISSION SHALL: 16

(I) ESTABLISH A VOLUNTARY EXCLUSION LIST OF INDIVIDUALS 17
WHO HAVE REQUESTED T O BE EXCLUDED FROM A NY FANTASY COMPETITI ON 18
LICENSED UNDER THIS SUBTITLE; AND 19

(II) PROVIDE A SIMPLE MECHANISM FOR AN INDIVIDUAL WHO IS 20
SOBER AND INFORMED T O REQUEST PLACEMENT ON THE VOLUNTARY EXC LUSION 21
LIST FOR A SPECIFIED PERIOD OF TIME. 22

(2) THE COMMISSION SHALL INCO RPORATE THE VOLUNTAR Y 23
SELF–EXCLUSION PROGRAM ESTABLISHED IN ACCORDA NCE WITH PARAGRAPH (1) 24
OF THIS SUBSECTION I NTO ANY OTHER SELF –EXCLUSION PROGRAM TH AT THE 25
COMMISSION OPERATES. 26

(C) A FANTASY COMPETITION OPERATOR: 27

(1) MAY NOT PERMIT AN INDIVIDUAL ON THE VOLUNTARY EXCLUSION 28
LIST TO ESTABLISH A FANTASY COMPETITION ACCOUNT OR PARTICIPA TE IN 29
FANTASY COMPETITIONS; AND 30

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(2) MAY PERMIT AN INDIVIDUAL ON THE VOLUNTARY EXCLUSION LIST 1
WHO PREVIOUSLY ESTABLISH ED A FANTASY COMPETI TION ACCOUNT TO ACCE SS 2
THE ACCOUNT ONLY FOR THE PURPOSE OF VIEWI NG AND DOWNLOADING T HE 3
INDIVIDUAL’S TRANSACTION HISTORY. 4

(D) IF A SELF –EXCLUDED INDIVIDUAL PARTICIPATES IN A FA NTASY 5
COMPETITION, THE FANTASY COMPETITION OPERATOR SHALL REPORT TO THE 6
COMMISSION, AT MINIMUM: 7

(1) THE NAME OF THE SELF–EXCLUDED INDIVIDUAL; 8

(2) THE DATE OF THE PARTICIPATION; 9

(3) THE AMOUNT OR VALUE OF ANY MONEY , PRIZES, OR AWARDS 10
FORFEITED, IF ANY; AND 11

(4) ANY OTHER ACTIO N TAKEN BY THE FANTA SY COMPETITION 12
OPERATOR. 13

(E) (1) A FANTASY COMPETITION OPERATOR MAY NOT PAY ANY PRIZE OR 14
AWARD TO AN INDIVIDUAL WHO IS ON THE COMMISSION’S SELF–EXCLUSION LIST. 15

(2) ANY PRIZE OR AWARD WO N BY AN INDIVIDUAL O N THE 16
SELF–EXCLUSION LIST IS FORFEITED AND SHA LL BE TRANSFERRED BY THE 17
FANTASY COMPETITION OPERATOR TO THE PROBLEM GAMBLING FUND 18
ESTABLISHED UNDER § 9–1A–33 OF THIS TITLE ON A Q UARTERLY BASIS , AS 19
SPECIFIED BY THE COMMISSION. 20

(F) THE COMMISSION MAY IMPOSE SANCTIONS ON A FANTA SY 21
COMPETITION OPERATOR THAT KNOWINGLY FAILS TO EXCLUDE AN INDIVIDUAL ON 22
THE VOLUNTARY EXCLUS ION LIST FROM PARTIC IPATING IN FANTASY 23
COMPETITIONS. 24

[9–1D–05.] 9–1D–06. 25

[(a)] The Commission shall adopt regulations to carry out the provisions of this 26
subtitle. 27

[(b) The regulations adopted under this section may include requirements for the 28
establishment of a voluntary exclusion list.] 29

9–1E–01. 30

(a) In this subtitle the following words have the meanings indicated. 31
6 SENATE BILL 456

(i) (1) “Sporting event” means: 1

(i) a professional sports or athletic event; 2

(ii) a collegiate sports or athletic event; 3

(iii) an Olympic or international sports or athletic event; 4

(iv) an electronic sports or video game competition in which each 5
participant is at least 18 years old; 6

(v) a motor race event sanctioned by a motor racing governing entity; 7

(vi) except as otherwise prohibited under Title 11 of the Business 8
Regulation Article or the federal Interstate Horse Racing Act, a horse race, held in or out 9
of the State, if consented to and approved by: 10

1. the horse racing licensee of the applicable breed; 11

2. the organization representing the majority of the owners 12
and trainers of the applicable breed in the State; 13

3. the organization representing the majority of the 14
applicable breeders in the State; and 15

4. the State Racing Commission; 16

(vii) EXCEPT AS PROVIDED I N SUBTITLE 1D OF THIS TITLE, any 17
portion of a sporting event, including the individual performance statistics of athletes or 18
competitors in a sporting event; or 19

(viii) an award event or competition of national or international 20
prominence if expressly authorized by the Commission. 21

(2) “Sporting event” does not include: 22

(i) a high school sports or athletic event; or 23

(ii) a fantasy competition regulated under Subtitle 1D of this title. 24

(j) (1) “Sports wagering” means the business of accepting wagers on any 25
sporting event by any system or method of wagering, including single –game bets, teaser 26
bets, parlays, over –under, moneyline, po ols, exchange wagering, in –game wagering, 27
in–play bets, proposition bets, and straight bets. 28

SENATE BILL 456 7

(2) “SPORTS WAGERING ” DOES NOT INCLUDE A F ANTASY 1
COMPETITION CONDUCTED IN COMPLIANCE WITH SUBTITLE 1D OF THIS TITLE. 2

SECTION 2. AND BE IT FURTHER ENACTED, Th at this Act shall take effect 3
October 1, 2026. 4