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*sb0557*
SENATE BILL 557
C7 6lr2414
By: Senator Beidle
Introduced and read first time: February 4, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 2, 2026
CHAPTER ______
AN ACT concerning 1
Gaming – Definition of “Own” – Alterations 2
FOR the purpose of altering the definition of “own” for purposes of certain provisions of law 3
governing the regulation of video lottery facilities and sports wagering to exclude a 4
certain interest in the property or business of a certain applicant or licen see under 5
certain circumstances; and generally relating to the regulation of video lottery 6
facilities and sports wagering in the State. 7
BY repealing and reenacting, without amendments, 8
Article – State Government 9
Section 9–1A–01(a), 9–1A–05(b) and (d)(1) through (3), 9 –1A–08(a)(5), (6), and (10) 10
and (d)(1), 9–1A–12, and 9–1E–03(a)(1) 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2025 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – State Government 15
Section 9–1A–01(s) 16
Annotated Code of Maryland 17
(2021 Replacement Volume and 2025 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – State Government 21
2 SENATE BILL 557
9–1A–01. 1
(a) In this subtitle the following words have the meanings indicated. 2
(s) (1) “Own” means having a beneficial or proprietary interest of at least 5% 3
in the property or business of an applicant or licensee. 4
(2) “OWN” DOES NOT INCLUDE HAV ING A BENEFICIAL OR 5
PROPRIETARY INTEREST OF 25% 15% OR LESS IN THE PROPE RTY OR BUSINESS OF 6
AN APPLICANT OR LICENSEE, IF THE INTEREST: 7
(I) THE INTEREST DOES NOT CONFER ANY VOTING RIGHTS; AND 8
(II) 1. THE INTEREST IS HELD DIRECTLY BY A PERSON; OR 9
2. THE INTEREST IS HELD IN TRUST FOR THE BENEFIT 10
OF A PERSON , PROVIDED THAT THE TR USTEE DOES NOT EXERC ISE ANY VOTING 11
RIGHTS OR CONTROL OVER THE APPLICANT OR LICENSEE; AND 12
(III) BEFORE THE TRANSFER OR ISSUANCE OF THE I NTEREST, 13
THE APPLICANT OR LICENSEE SUBMITS: 14
1. WRITTEN NOTICE AND C ERTIFICATION TO THE 15
COMMISSION, IN THE FORM REQUIRED BY THE COMMISSION, THAT THE PERSON 16
DESCRIBED IN ITEM (II) OF THIS PARAGRAPH IS NOT DISQUALIFIED FOR A VIDEO 17
LOTTERY EMPLOYEE LIC ENSE UNDER § 9–1A–14(C)(1)(III) AND (IV) OF THIS 18
SUBTITLE; AND 19
2. A STATE AND NATIONAL CRIMINAL HI STORY 20
RECORDS CHECK, INCLUDING THE SUBMISSION OF FINGERPRINTS, IN ACCORDANCE 21
WITH TITLE 10, SUBTITLE 2, PART III OF THE CRIMINAL PROCEDURE ARTICLE. 22
9–1A–05. 23
(b) An owner or operator of a video lottery destination location described under § 24
9–1A–01 of this subtitle may submit an application for a video lottery operation license. 25
(d) (1) In this subsection, “owner” includes any type of owner or beneficiary of 26
a business entity, including an officer, director, principal employee, part ner, investor, 27
stockholder, or beneficial owner of the business entity and, notwithstanding any other 28
provisions of this subtitle, including a person having any ownership interest regardless of 29
the percentage of ownership interest. 30
SENATE BILL 557 3
(2) An individual or business entity may not own an interest in more than 1
one video lottery facility. 2
(3) A member of the Senate of Maryland or the House of Delegates may not 3
be an owner or an employee of any business entity that holds a video lottery operation 4
license. 5
9–1A–08. 6
(a) In addition to other information required by this subtitle, a business entity 7
applying for a video lottery operation license shall provide the following information: 8
(5) the rights and privileges acquired by the holders of different classes of 9
authorized securities, partnership interests, or other similar ownership interests of the 10
business entity and its holding, intermediary, and subsidiary companies or other similar 11
business entities; 12
(6) the terms on which the securities, partnership interests, or other 13
similar ownership interests have been or are to be offered; 14
(10) the names of persons who own or control the business entity; 15
(d) The Commission shall disqualify an applicant for a video lottery operation 16
license on the basis of any of the following criteria: 17
(1) failure of the applicant to prove by clear and convincing evidence that 18
the applicant and each person who owns or controls the application are qualified under the 19
provisions of this subtitle; 20
9–1A–12. 21
If a video lotte ry operation licensee contracts with another person other than an 22
employee of the video lottery operation licensee to provide any of the services related to 23
operating a video lottery facility, each person and each other person who owns or controls 24
the person or management and supervisory personnel and other principal employees of the 25
person shall qualify under the standards and provisions set forth in §§ 9 –1A–07 and 26
9–1A–08 of this subtitle for video lottery operation licensees. 27
9–1E–03. 28
(a) (1) Unless the context requires otherwise, the requirements under §§ 29
9–1A–04, 9–1A–06, 9–1A–07, 9–1A–08, 9–1A–12, 9–1A–14, 9–1A–18, 9–1A–19, 9–1A–20, 30
and 9 –1A–25 of this title apply to the authority, duties, and responsibilities of the 31
Commission, a sports wa gering licensee, and an employee or a contractor of a sports 32
wagering licensee under this subtitle. 33
4 SENATE BILL 557
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2026. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.