1. A. A sports wagering licensee may:

   1. (1) Issue promotional play if it is not awarded as cashable credit; and
   2. (2) Utilize a promotional play system meeting the requirements of this subtitle.
2. B. A sports wagering licensee may not issue to a bettor promotional play equaling or exceeding $5,000 per wagering day without approval from the chief executive or the chief executive’s designee.
3. C. A sports wagering licensee shall immediately report to the Commission evidence that a promotional play instrument has been counterfeited, tampered with, or altered in any way which would affect the integrity, fairness, or reliability of the promotional play instrument.

4. D. A sports wagering licensee shall submit to the Commission in a form and in accordance with a time frame specified by the Commission a quarterly report summarizing:

   1. (1) Promotional play awarded for the period including:

      1. (a) Total amount in promotional play awarded in noncashable credits; and
      2. (b) Other forms of promotional play; and

   2. (2) Promotional play redeemed by players for the period including:

      1. (a) Total amount in promotional play redeemed in noncashable credits; and
      2. (b) Other forms of promotional play redeemed.

5. E. A sports wagering licensee shall develop and include in the internal controls submitted to and approved by the Commission under Regulation .04 of this chapter procedures addressing:

   1. (1) Methods utilized to:

      1. (a) Issue promotional play; and
      2. (b) Redeem promotional play; and

   2. (2) A promotion play instrument including a requirement that it document:

      1. (a) Name or trade name of the sports wagering licensee;
      2. (b) Amount in noncashable credits;
      3. (c) Unique series number automatically generated by the promotional play system;
      4. (d) Locations where a promotional instrument may be redeemed and any restrictions applicable to redemption;
      5. (e) If applicable, a bar code or magnetic strip which enables the promotional play system to identify the numeric information required by this section; and
      6. (f) Notice to the player of the terms of expiration.

6. F. Limitation on Free Promotional Play.

   1. (1) Through the first full fiscal year of a sports wagering licensee’s operations, a licensee’s proceeds exclude money given away by the licensee as free promotional play and used by bettors to make a sports wager.
   2. (2) After the first full fiscal year of a sports wagering licensee’s operations, the amount of money given away as free promotional play in a fiscal year may not exceed a percentage of the licensee’s proceeds received in the prior fiscal year that equates to 20 percent of total sports wagering proceeds that the sports wagering licensee generated in the prior fiscal year.
   3. (3) After the first fiscal year of sports wagering activity, the 20 percent cap specified under §F(2) of his regulation includes all revenues generated by casino sports wagering and gaming activities.
   4. (4) An amount of money given away as free promotional play in a fiscal year exceeding the percentage defined in §F(2) of this regulation of the sports wagering licensee’s proceeds of the prior fiscal year shall be allocated as proceeds.

7. G. No later than 90 days after the end of the fiscal year, a sports wagering licensee shall submit to the Commission a written:

   1. (1) Report of its use of free promotional play during the prior fiscal year; and
   2. (2) Recommendation for any adjustment to the limitation on free promotional play established under §F(2) of this regulation.
8. H. For purposes of §§F and G of this regulation, “fiscal year” means the fiscal year of the sports wagering licensee.

Authority: Education Article §§ 10-101 and 26-801; State Government Article, §§ 9-1A- 02, 9-1A- 04, 9-1A- 33, 9-1E-01—9-1E-15; Annotated Code of Maryland

Effective date:

Regulations .01— .44 adopted as an emergency provision effective August 5, 2021 (48:18 Md. R. 690); adopted permanently effective January 13, 2022 (49:1 Md. R. 16)

Regulation .06B amended effective July 7, 2025 (52:13 Md. R. 657)

Regulation .06P amended effective November 14, 2022 (49:23 Md. R. 997)

Regulation .20F amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)

Regulation .29B amended effective May 25, 2026 (53:10 Md. R. 459)

Regulation .29D, E, F adopted effective May 25, 2026 (53:10 Md. R. 459)

Regulation .34 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)

Regulation .34L adopted effective April 27, 2026 (53:8 Md. R, 356)

Regulation .37 amended effective July 7, 2025 (52:13 Md. R. 657)

Regulation .40 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)

Regulation .40E amended as an emergency provision effective January 26, 2022 (49:5 Md. R. 364); amended permanently effective July 25, 2022 (49:15 Md. R. 740)

Regulation .40B amended effective July 7, 2025 (52:13 Md. R. 657)

Regulation .41 amended as an emergency provision effective December 12, 2023 (50:26 Md. R. 1130); amended permanently effective May 27, 2024 (51:10 Md. R. 529)

Regulation .41E adopted effective May 25, 2026 (53:10 Md. R. 459)

Regulation .45 adopted effective July 7, 2025 (52:13 Md. R. 657)