![[photo, Montgomery Park Business Center, 1800 Washington Blvd., Baltimore, Maryland]](/msa/mdmanual/14doe/images/1198-1-654.jpg)
Authorized by the General Assembly, the State Lottery and Gaming Control Agency was formed as the State Lottery Agency by constitutional amendment in 1972 (Chapter 365, Acts of 1972, ratified November 7, 1972). The Agency began operation on January 2, 1973. In October 2012, it reformed under its present name with added responsibilities as regulator of casinos in Maryland (Chapter 1, Acts of 2012, 2nd Special Session).
The Maryland Lottery and gambling casinos in the State are overseen by the Agency (Code State Government Article, secs. 9-101 through 9-125).
Montgomery Park Business Center, 1800 Washington Blvd., Baltimore, Maryland, February 2004. Photo by Diane F. Evartt.
Within the Agency are five divisions: Administration, Finance, and Information Technology; Communications; Gaming, Operations and Regulatory Oversight; Lottery; and Marketing. The Agency is aided by the State Lottery and Gaming Control Commission.
The Commission oversees lottery and gaming operations and regulations and must conduct studies to determine the competitiveness of Maryland's gaming program within the gaming industry nationwide, and detect potential abuses in the operation of the program. In conjunction with the State Lottery and Gaming Control Agency, the Commission is responsible for regulating table games, and the operations of the State's video lottery terminals.
Seven members constitute the Commission. They are appointed to four-year terms by the Governor with Senate advice and consent. The Governor also appoints a liaison member from the Maryland Racing Commission (Chapter 1, Acts of 2012 2nd Special Session; Code Business Regulation, sec. 11-202(g); Code State Government Article, secs. 9-104 through 9-109).
The Commission is assisted by the Maryland Amusement Game Advisory Committee.
The Committee advises the State Lottery and Gaming Control Commission on the conduct and technical aspects of the amusement game industry, including recommendations for the legality of skill-based amusement games.
Seven members make up the Committee. Appointed by the Governor, six are voting members. The Director of the State Lottery and Gaming Control Agency serves ex officio as a nonvoting member. The Governor names the chair (Code Criminal Law Article, sec. 12-301.1).
MARYLAND AMUSEMENT GAME ADVISORY COMMITTEE
In June 2014, the Maryland Amusement Game Advisory Committee was established by the General Assembly (Chapter 464, Acts of 2014).
Under the Division are seven units: Communications, Customer Relations, Financial Operations, Human Resources, Information Technology, Procurement and Minority Business Enterprise, and Special Projects.
INFORMATION TECHNOLOGY
Information Technology began as the Electronic Data Processing, Research and Development Division, and reorganized as the Information Technology Division in 1997. It merged with Administration, Finance and Operations Division in 2014 to form the Administration, Finance, Operations and Information Technology Division, and became a subunit of that division in November 2015.
The operation of data processing systems that support Lottery gaming activities is managed by Information Technology. It also provides technical assistance to the Agency, and develops and supports internal data systems, the local area network, and website infrastructure.
The Communications Division oversees Lottery drawings and functions, including: public and media relations; public affairs; second-chance drawings; promotions and special events; website services; and VIP Club initiatives. Annual reports, newsletters, and special publications are produced by the Office.
Under the Division are three units: Communications, Promotions, and Events; Drawings; and Public Affairs.
In Maryland, the Division regulates casino gambling. The Division conducts audits; monitors slot machine ownership and compliance; manages the central monitor and control system; and administers responsible gambling programs.
MARYLAND CASINO GAMING (SLOT MACHINES & TABLE GAMES)
In 2008, Maryland voters ratified a constitutional amendment allowing installation of slot machines in Baltimore City and four counties: Allegany, Anne Arundel, Cecil and Worcester (Chapter 5, Acts of 2007 Special Session, ratified Nov. 4, 2008; Constitution, Art. XIX, sec. 1). On November 6, 2012, voters approved by referendum the addition of a sixth casino in Prince George's County, table games at casinos, and 24-hour gaming operations at all locations.
![[photo, Horseshoe Casino Baltimore, 1525 Russell St., Baltimore, Maryland]](/msa/mdmanual/36loc/bcity/images/buildings/1198-1-09242c.jpg)
The State Lottery and Gaming Control Agency regulates gaming operations at Maryland cainos [Maryland Video Lottery Program (slots gambling), & table games]. The process by which licenses were issued to operate video lottery facilities in those jurisdictions, however, was conducted by the Video Lottery Facility Location Commission. Current law also allows video lottery terminal licensees to operate certain table games, such as roulette, baccarat, blackjack, and poker (Code State Government Article, secs. 9-1A-01 through 9-1A-38).
Horseshoe Casino Baltimore, 1525 Russell St., Baltimore, Maryland, September 2018. Photo by Diane F. Evartt.
![[photo, Rocky Gap Casino Resort, Flintstone (Allegany County), Maryland]](/msa/mdmanual/36loc/al/images/1198-1-06647c.jpg)
State casinos operate in six Maryland counties:
Rocky Gap Casino Resort, Flintstone (Allegany County), Maryland, October 2014. Photo by Diane F. Evartt.
The three main units under the Division are Gaming, Operations, and Regulatory Oversight.
GAMING
To ensure the integrity of casino gambling in Maryland, Audit and Regulatory Compliance collects and reviews operational forms, financial statements, and statistical and performance data. It applies auditing standards to account for and safeguard assets and ensure that the operations, financial position, and cash flows of casinos are reflected accurately. To monitor compliance with internal control systems, Audit and Regulatory Compliance also oversees field audits of casinos statewide.
GAMING OPERATIONS
Gaming Operations manages project planning for the opening of casinos. This includes oversight of purchase, installation, testing, maintenance, and compliance to specifications of State-owned slot machines. To ensure maximum revenue generation for the State, the unit works with casino facilities to determine an appropriate mix of slot machine types on the gaming floor.
With casinos, the unit reviews slot machine performance, and seeks to ensure that facilities meet requirements for opening and continuing operations. It also oversees any slot machine conversions, movements, or changes.
RESPONSIBLE GAMBLING
The Voluntary Exclusion Program is administered by Responsible Gambling. Individuals who wish to ban themselves from Maryland casinos will be excluded from entering any facility, cashing checks, or using credit cards. Participants also are removed from all casino mailing lists and are not eligible for promotions, credit, or casino complimentary services.
OPERATIONS
REGULATORY OVERSIGHT
Three units are overseen by Regulatory Oversight: Casino Compliance, Casino Licensing, and Investigations and Security.
CASINO LICENSING
INVESTIGATIONS & SECURITY
Origins of the Creative Product Services and Communications Division trace to June 2005, when the Product Development Division, the Creative Services Division, and the Research and Planning Division all joined to form the Product Development, Creative Services and Research Division. In January 2008, the Communications Division was added to make the Product Development, Creative Services and Communications Division. In 2009, it was renamed as the Creative Product Services and Communications Division. In July 2011, it merged with the Sales Division to form the Lottery Division.
The Lottery Division works to maximize Maryland Lottery sales throughout the State. The Division recruits new outlets and ensures that all locations have sufficient products and materials available for players. It also informs the public and Lottery agents about new games, and monitors the compliance of retailers with Lottery Agency regulations.
MARYLAND LOTTERY
Revenues from the Lottery are credited to the State Lottery Fund (Code State Government Article, secs. 9-118 through 9-120). Monies in the State Lottery Fund are deposited into the Maryland Stadium Facilities Fund, the Maryland Veterans Trust Fund, the Baltimore City Public School Construction Financing Fund, and the remaining monies are deposited into the State General Fund (Code State Government Article, sec. 9-120).
Lottery income is the State's third largest source of revenue, after income taxes, sales taxes, and corporate taxes. In Fiscal Year 2017, some 61.9% of Lottery revenue went to pay prizes to players; 7.5% went to retailer commissions; and 3.5% to operational expenses. The remaining 27.1% of revenues from the State Lottery were deposited in the General Fund of the State Treasury to support Maryland government programs, including those in education, public health, public safety and the environment.
Drawings for most games are conducted off-air and the results are displayed during televised drawings. Cash4Life drawings are shown live on the Maryand Lottery website. Official winning numbers are posted on the Maryland Lottery website; via mobile phone apps and the winning numbers phone line ((410) 230-8830).
Cash4Life. Cash4Life is a multi-state game with a top prize of $1,000 a day for life and a second prize of $1,000 a week for life. Players select six number from two different fields: five out of 60 and one Cash Ball number out of four. Sold in nine states, tickets cost $2. Drawings are held Monday and Thursday nights in Trenton, New Jersey, using lottery balls and air-mix machines.
Daily Drawings. The Agency holds twice-daily drawings for Pick 3 (a three-digit game, with prizes ranging from $25 to $500) and Pick 4 (a four-digit game, with winners receiving between $100 and $5,000). Bonus Match 5 (a pick 5-of-39 game) drawings also are held daily, offering a top prize of $50,000. 5 Card Cash is based on a standard poker game using a 52-card deck. By combining an instant win feature with a daily evening drawing, each $2 ticket has two chances to win. Winners are drawn using numbered lottery balls and manually operated air-mix machines.
Monitor Games. Keno is a monitor-style game with drawings held every four minutes. Players select up to ten numbers from a field of eighty and match them to a computer-generated group of twenty numbers displayed on a Keno monitor. Prizes range from $2 to $100,000. Racetrax is a computer-animated monitor game featuring horseracing. Players select horses numbered from one to twelve to win prizes ranging from $1.20 to $650,248. Drawings are held approximately every four minutes.
Mega Millions (formerly The Big Game). Mega Millions is a multi-state game with jackpots that start at $40 million. Players select six numbers from two different fields: five out of 70 and one Gold Mega Ball number out of 25. Winning numbers are drawn on Tuesday and Friday nights in Atlanta, Georgia, using lottery balls and air-mix machines. The game costs $2 to play. Forty-four lottery states plus the District of Columbia and the U.S. Virgin Islands participate in this game. A portion of the proceeds from Mega Millions is designated for the Maryland Stadium Authority.
Multi-Match (formerly Lotto). Multi-Match is a lotto-style, pick 6-of-43 game with drawings held on Monday and Thursday nights. The game offers a minimum jackpot of $500,000. Nine other prize levels range from $2 to $2,000. Multi-Match is played only in Maryland and is drawn using lottery balls and an air-mix machine.
Powerball. Since January 31, 2010, Maryland and forty-four other states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands offer Powerball. Players select 6 numbers from two different fields: five out of 69 and one powerball number out of 26. Tickets are $2 and drawings are held Wednesday and Saturday nights in Tallahassee, Florida, using lottery balls and air-mix machines for jackpots starting at $40 million.
LOTTERY INSTANT GAMES
PRIZES
Under the Division are four sections: Analysis and Reporting, Corporate Sales, Retail Recruitment, and Sales.
CREATIVE SERVICES
Under the Marketing Division, Creative Services develops advertising strategies to achieve the sales and revenue objectives of the State Lottery and Gaming Control Agency. Creative Services evaluates the effectiveness of advertising in terms of reach, frequency, and impression on audiences. Advertising time and space for jackpot announcements, product introductions, promotions, and winner awareness are purchased by this section. To inform consumers about Lottery products, promotions, and programs, the section manages the development and production of advertising materials for television, radio, and print media, as well as at retail sales outlets.
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Under Gaming are three units: Audit and Regulatory Compliance; Gaming Operations; and Responsible Gambling.
AUDIT & REGULATORY COMPLIANCE
Audit and Regulatory Compliance was established as Casino Auditing under the Gaming Division in July 2011. It was renamed Auditing and Regulatory Compliance in September 2014, and Audit and Regulatory Compliance in 2017.
Under the Gaming Division, Gaming Operations was organized in July 2011 as Video Lottery Terminal Operations It reformed as Electronic Gaming Device Operations in January 2014, and received its present name in November 2015.
Responsible Gambling formed as a unit of the Gaming Division in July 2011. For persons who suffer from pathological or problem gambling, the unit provides education and connections to statewide resources to combat problems through the Maryland Alliance for Responsible Gambling.
Operations is responsible for Agent Administration, Contract Management, Facilities Operation, and Records Management.
RECORDS MANAGEMENT
Since October 1, 2017, the State Lottery and Gaming Control Agency has had a program for the continual, economical and efficient management of its records. The Agency's Records Officer develops and oversees the program, and serves as liaison to the Records Management Division of the Department of General Services, and to the State Archives (Chapter 539, Acts of 2017; Code State Government Article, secs. 10-608 through 10-611).
In December 2010, Regulatory Oversight began as the Enforcement Division. In November 2015, the Division reorganized under its present name within the Gaming and Operations Division.
CASINO COMPLIANCE
At each Maryland casino, Casino Compliance maintains staff who work to resolve customer complaints and to ensure that the Maryland State Lottery and the State gambling casinos comply with regulations.
Formerly Casino Licensing was named Video Lottery Terminal (VLT) Licensing.
Under Regulatory Oversight, Investigations and Security formerly was called Lottery Investigations.
LOTTERY DIVISION
The Lottery Division started as the Marketing Division, reformed as the Marketing and Advertising Division in 1997, and reverted to its original name - Marketing Division - in 1998. It reorganized as the Sales Division in 2001, and merged with the Creative Product Services and Communications Division to form the Lottery Division in July 2011.
Through the Maryland Lottery, lottery tickets are sold and cashed at licensed retail establishments throughout Maryland. These lottery agents are private businesses that receive commissions and fees to sell the games to the public. Transactions are conducted through terminals connected to a computerized on-line real-time system.
LOTTERY DRAWING GAMES
The State Lottery and Gaming Control Agency provides a variety of terminal-based games which include Pick 3, Pick 4, Bonus Match 5, 5-Card Cash, Cash4Life, Keno, Mega Millions, Multi-Match, Powerball, and Racetrax. Subscriptions are offered for Multi-Match and Mega-Millions.
The Lottery offers more than 50 instant (scratch-off) games at prices ranging from $1 to $30. Each instant game launch includes thousands of winning tickets, with prizes of varying amounts, including top prizes as high as $2 million.
Prizes of $600 or less may be claimed at any Lottery retail location. Winning tickets up to $5,000 can be cashed at Expanded Cashing Authority Program (XCAP) retail locations. Winning tickets of any amount may be redeemed at the Maryland State Lottery headquarters in Baltimore. Retail locations also provide how-to-play brochures and other game information.
MARKETING DIVISION
The Marketing Division is responsible for three units: Communications, Promotions, and Events; Creative Services; and Product Development.
In 2001, Creative Services was initiated as the Creative Services Division. It merged in June 2005 with the Product Development Division and the Research and Planning Division to form the Product Development, Creative Services and Research Division. In January 2008, it reformed as the Product Development, Creative Services and Communications Division, and in 2009 reorganized as the Creative Product Services and Communications Division. With the Sales Division it joined to form the Lottery Division in July 2011.
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e-mail: mdmanual@mdarchives.state.md.us