Anyone who wants to run a casino, take sports bets, or hold certain charitable gaming events in Maryland needs a state-issued license. The Maryland gaming license requirements are set by two bodies: the Maryland Lottery and Gaming Control Agency (MLGCA), which handles casino operators, employee licensing, and day-to-day compliance, and the Sports Wagering Application Review Commission (SWARC), which awards sports wagering licenses.1Maryland Lottery and Gaming. Maryland Lottery and Gaming2Maryland Manual On-Line. Sports Wagering Application Review Commission, Maryland Getting a license means paying a statutory fee, passing a background and financial investigation, and posting bonds where the license class requires them. Keeping the license means meeting ongoing responsible-gaming, marketing, and federal anti-money-laundering rules.
Which License You Need
Maryland issues licenses in four main tracks. The right one depends entirely on what you plan to run.
Video Lottery and Table Game Operation
A video lottery facility operation license covers slot machines, electronic gaming terminals, and table games at one of Maryland’s authorized casino locations. The term is 15 years. Operators must maintain a $1,000,000 performance bond, a $2,000,000 payment bond, and a $100,000 fidelity bond.3Library of Maryland Regulations. COMAR 36.03.03.05 – Issuance of License; Term
Sports Wagering
Sports wagering is split into five classes, and the application fees are set by statute and non-refundable.4Maryland General Assembly. Maryland State Government Article 9-1E-06 – Issuance of Licenses, Application Fees, Term of License
- Class A-1, for the largest video lottery operators and certain major sports franchises: $2,000,000 application fee.
- Class A-2, also for large operators and franchises: $1,000,000 application fee.
- Class B-1, for qualifying horse-racing, simulcast betting, and commercial bingo entities: $250,000 application fee.
- Class B-2, a lower-tier facility license: $50,000 application fee.
- Mobile, for online and mobile platforms: $500,000 application fee.
A holder of a Class A-1, A-2, B-1, or B-2 facility license may apply separately for a mobile sports wagering license.5Legal Information Institute. Maryland Code of Regulations 36.10.05.01 – General
Employee Licenses
No one may work as a video lottery employee without a valid license from the MLGCA. There are five categories: principal employee, gaming employee, nongaming employee, temporary principal employee, and temporary gaming employee.6Library of Maryland Regulations. COMAR 36.03.02.12 – Video Lottery Employee Licenses
A gaming employee license costs $437.25 in total: a $250 application fee, a $150 license fee, and a $37.25 criminal history records check fee. You must have at least a conditional offer of employment from a licensed operator before you apply, and you have to show by clear and convincing evidence that you meet the state’s character and integrity standards.6Library of Maryland Regulations. COMAR 36.03.02.12 – Video Lottery Employee Licenses
Charitable Gaming
Nonprofits can run raffles, bingo, and other small-scale gaming under Maryland’s charitable gaming rules. A charity may raffle real property if it holds title (or can transfer title) and the proceeds go entirely to the organization. Charities are capped at two real-property raffles per calendar year and must file a disclosure statement with the Charitable Organizations Division before advertising or holding the raffle.7Maryland Secretary of State. Raffles of Real Property and Personal Property
What You Have to Prove to Get One
For every sports wagering facility license, mobile license, or operator designation, the MLGCA conducts a criminal and financial background investigation. It looks at the business and its principals to determine whether they have the honesty, integrity, good character, and financial stability the state demands.8Sports Wagering Application Review Commission. FAQ – Sports Wagering Application Review Commission
The application covers the business entity, its ownership structure, its financial standing, and the background of every principal stakeholder. You must reimburse the MLGCA for the cost of the background investigation, and those costs vary depending on how complex the applicant’s personal or business finances are.9Maryland Lottery and Gaming. Maryland Sports Wagering A large corporate applicant with layered multi-state ownership will pay far more than a smaller one. Financial stability is typically shown through audited financial statements and proof of capital reserves. An entity that already holds a Maryland gaming license runs through a somewhat streamlined process, submitting updated applications and current financials rather than a full investigation from scratch.
How Long the License Lasts and How You Renew It
Video lottery facility operation licenses run 15 years from issue, and each renewal term is another 15 years. The renewal timeline starts well before expiration: a licensee must file a notice of intent to renew no earlier than five years and no later than two years before the current term ends, followed by a formal renewal application at least one year before expiration.3Library of Maryland Regulations. COMAR 36.03.03.05 – Issuance of License; Term
Renewal fees are a percentage of gaming revenue rather than a flat charge. For each five-year period of the 15-year renewal term, the licensee pays 0.75% of the amounts wagered minus prizes for video lottery terminals and banked table games, plus 0.75% of the facility’s share of non-banked table game revenues, averaged over the three most recent years. The first installment (20% of the total fee) is due on the renewal date, and the remaining payments come on each anniversary. Current performance, payment, and fidelity bonds must also be in place at renewal.3Library of Maryland Regulations. COMAR 36.03.03.05 – Issuance of License; Term
What You Have to Keep Doing Once Licensed
The license is not a one-time hurdle. The MLGCA conducts regular audits and inspections, and operators are expected to cooperate. Compliance runs across responsible gaming, marketing, and equipment.
Responsible Gaming
Every facility operator must post MLGCA-approved signage at each customer entrance to the gaming floor showing a gambling assistance message and an underage warning. The gambling assistance message must also appear on any advertisement encouraging play. Operators must place responsible gambling awareness materials throughout the premises under a responsible gaming plan filed with the MLGCA.10Code of Maryland Regulations. COMAR 36.03.06.03 – Requirements Sports wagering licensees face the same entrance-signage requirement.11Legal Information Institute. Maryland Code of Regulations 36.10.10.03 – Requirements
Maryland runs a voluntary exclusion program that lets a person ban themselves from all Maryland casinos, from the Maryland Lottery, or from both, for either two years or life. A person on the list has their name pulled from casino direct marketing lists and their player card deactivated, and entering a casino after enrolling exposes them to arrest for criminal trespassing.12Maryland Lottery and Gaming. Voluntary Exclusion Program Operators must train staff to recognize signs of problem gambling and actively support the program. Sports wagering licensees are notified when someone is added to the exclusion list and are responsible for keeping that person from placing wagers.
Marketing Rules
Maryland prohibits predatory marketing. An advertisement or promotion is predatory if it is false or deceptive, illegal, or knowingly directed at someone under 21, someone on the voluntary or mandatory exclusion list, or someone otherwise prohibited by law or court order from entering a gaming facility. Ads may not use or depict anyone who is, or appears to be, under 21. An ad that obscures a material condition or limiting factor of a promotion, or that buries the required gambling assistance message, also qualifies. Operators cannot engage in predatory marketing themselves or hire anyone else to do it on their behalf.13Library of Maryland Regulations. COMAR 36.03.03.08 – Predatory Marketing
Equipment
All gaming equipment and software must meet the MLGCA’s technical standards, with regular testing and certification to confirm fair outcomes and system integrity. Any change to gaming systems or processes must be reported to and approved by the MLGCA before it goes live. Running unapproved equipment can force a shutdown until the operator is back in compliance.
Federal Rules That Ride on Top
Federal law adds a second layer of obligations that state licensure does not replace.
Currency Transaction Reports
Casinos and card clubs must file a Currency Transaction Report (CTR) for any cash transaction over $10,000 by or on behalf of a single person. The threshold also applies to multiple transactions totaling more than $10,000 in a single day. The casino must collect the individual’s Social Security number and a government-issued ID.14Financial Crimes Enforcement Network. Notice to Customers: A CTR Reference Guide
Breaking up transactions to stay under $10,000 is a federal crime called structuring, carrying up to five years in prison and fines up to $250,000. Those penalties double if the structuring involves more than $100,000 within a 12-month period or occurs during another federal violation.14Financial Crimes Enforcement Network. Notice to Customers: A CTR Reference Guide
Suspicious Activity Reports
Casinos must file a Suspicious Activity Report (SAR) with FinCEN for any transaction involving at least $5,000 when the casino knows or suspects it involves proceeds of illegal activity, is designed to evade reporting requirements, has no apparent lawful purpose, or is being used to facilitate crime. The SAR must be filed within 30 calendar days of initial detection. If no suspect has been identified, the casino may take another 30 days to identify one, but filing cannot be delayed beyond 60 days total.15eCFR. 31 CFR 1021.320
A casino cannot tip off anyone involved that a report has been filed. Supporting documentation must be kept for five years. In exchange, federal law gives the casino full civil immunity for filings, whether mandatory or voluntary.16Financial Crimes Enforcement Network. FinCEN Form 102a SAR – Casinos and Card Clubs Instructions
Federal Wagering Excise Tax
Under 26 U.S.C. ยง 4401, wagers authorized under state law are taxed at 0.25% of the amount wagered; unauthorized wagers are taxed at 2%.17Office of the Law Revision Counsel. 26 USC 4401 Maryland’s licensed operators pay the 0.25% rate. The tax applies to handle, not revenue, so it is owed whether or not the operator profits on those wagers.
What Non-Compliance Costs
The MLGCA has broad enforcement authority, and consequences scale with the violation. Recordkeeping failures or late filings draw financial penalties. Failing to maintain responsible gaming programs, running unapproved equipment, or engaging in predatory marketing can bring larger fines and license action.
When non-compliance threatens gaming integrity or consumer safety, the MLGCA can suspend a license until the operator corrects the problem. A suspended operation earns nothing while overhead continues. For repeated or especially serious violations, the agency can revoke the license outright, permanently barring the entity from gaming in Maryland. Application fees, investigation costs, and infrastructure spending are not recoverable.
Federal violations bring separate exposure. Failing to file required CTRs or SARs, or structuring transactions to duck the reporting threshold, can lead to criminal prosecution with prison time and fines up to $250,000 per offense.14Financial Crimes Enforcement Network. Notice to Customers: A CTR Reference Guide FinCEN can also impose civil money penalties on the casino itself, on top of any charges against individuals.