STATE LOTTERY & GAMING CONTROL AGENCY

ORIGIN & FUNCTIONS


[photo, Montgomery Park Business Center, 1800 Washington Blvd., Baltimore, Maryland] 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, and by April 1973 began selling lottery tickets and awarding prizes. 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).


Montgomery Park Business Center, 1800 Washington Blvd., Baltimore, Maryland, February 2004. Photo by Diane F. Evartt.


The Maryland Lottery and gambling casinos in the State are overseen by the State Lottery and Gaming Control Agency (Code State Government Article, secs. 9-101 through 9-125; & 9-1A-01 through 9-1A-34). The Agency also regulates sports wagering and on-line fantasy competitions (Code State Government Article, secs. 9-1E-01 through 9-1E-16, & 9-1D-01 through 9-1D-05).

The State Lottery and Gaming Control Agency operates the Maryland Lottery through a combination of employees and vendor services, and oversees casinos and sports wagering entities, which are privately held independent businesses. In addition, the Agency regulates a number of smaller ancillary gaming programs.

MARYLAND LOTTERY
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 and self-service vending machines that are connected to a computerized real-time system.

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, and the Baltimore City Public School Construction Financing Fund. The remaining monies are deposited into the State General Fund (Code State Government Article, sec. 9-120).

Lottery income is the State's fourth-largest source of revenue, after income taxes, sales taxes, and corporate taxes. Approximately 60% of what the Lottery makes from ticket sales goes back to players in the form of prize money. Some 7% goes to retailer commissions, and 3% to operational expenses. The remaining 25% of revenues from the State Lottery are deposited in the General Fund of the State Treasury to support Maryand government programs, including those in education, public health, public safety and the environment. Detailed breakdowns by year are available at www.mdgaming.com

With Senate advice and consent, the Director of the State Lottery and Gaming Control Agency is appointed by the Governor (Code State Government Article, sec. 9-106). With the approval of the State Lottery and Gaming Control Commission and the Legislative Policy Committee of the General Assembly, the Agency's Director may enter into agreements to operate multijurisdictional lotteries with any other political entity outside the State or outside the United States, or with a private licensee of a state or other nation (Chapter 449, Acts of 2002; Code State Government Article, sec. 9-111).


COMMUNICATIONS DIVISION

The Communications Division began as the Communications and Customer Relations Division, and later assumed its current name.

Communications staff oversees the Lottery’s daily drawings. The Division regularly issues press releases listing the Lottery’s top prizes, and reporting monthly revenues for casino gaming and sports wagering. The Division also interacts with the public, responding to a wide variety of inquiries from Lottery players and news outlets. Staff keeps the public updated on Lottery promotions and engages in winner awareness efforts by interviewing Lottery winners and publishing their stories on mdlottery.com.

The Division plans and manages the Lottery’s presence at approximately 100 community events each year, including fairs and festivals, and sports and charity events. In coordination with the Sales and Marketing Division, the Communications Division produces a quarterly newsletter for Maryland Lottery retailers.


FINANCE DIVISION

In 1977, the Finance Division started as Administration, Finance, and Operations. It reformed as the Administration, Finance, Operations and Information Technology Division by June 2014. Renamed the Administration, Finance and Information Technology Division in 2015, the Division through a later reorganization became the Finance Division.

Under the Division is the Budget Unit, Gaming Accounting, and General Ledger Accounting.

GAMING ACCOUNTING
Gaming Accounting oversees all accounting for Gaming (casinos), Sports Wagering and Fantasy competition.

GENERAL LEDGER ACCOUNTING
General Ledger Accounting oversees and manages day-to-day operations of the Accounting Unit. Oversees and manages maintenance and reconciliation of the general ledger for the Lottery, Video Lottery Terminals, Sports Wager and Fantasy Gaming.


GAMING & REGULATORY OVERSIGHT DIVISION

The Gaming and Regulatory Oversight Division started as the Gaming Division in July 2011, and reformed as the Gaming and Operations Division in November 2015. It was renamed the Gaming, Operations and Regulatory Oversight Division in 2017, and later adopted its present name.

In Maryland, the Division regulates casino gambling. The Division also 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 Prin


[photo, Horseshoe Casino Baltimore, 1525 Russell St., Baltimore, Maryland] The State Lottery and Gaming Control Agency regulates gaming operations at Maryland casinos, including the 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] State casinos operate in six Maryland counties:
Hollywood Casino in Perryville (Cecil County) opened in September 2010;
Ocean Downs Casino in Berlin (Worcester County) opened in January 2011;
Maryland Live! at Arundel Mills (Anne Arundel County) opened in June 2012;
Rocky Gap Casino Resort in Flintstone (Allegany County) opened in May 2013;
Horseshoe Casino Baltimore (Baltimore City) opened in August 2014; and
MGM National Harbor in Oxon Hill (Prince George's County) opened on December 8, 2016.

Rocky Gap Casino Resort, Flintstone (Allegany County), Maryland, October 2014. Photo by Diane F. Evartt.


In 2008, the Education Trust Fund was established as a special nonlapsing fund, the money from which is invested and reinvested by the State Treasurer with interest and earnings accrued to the Fund (Chapter 4, Acts of 2007 Special Session; Code State Government Article, sec. 9-1A-30). From the nearly $2.002 billion in gaming revenue in Fiscal Year 2022, the Education Trust Fund received 30.5%, totaling an all-time record of $611.6 million. Casino operators received 57.8%. Remaining funds were divided among the state's horse-racing industry (4.5%); local impact grants and local jurisdictions (5.3%); small, minority and women-owned businesses (1%); responsible gaming (0.2%); and operational expenses (0.7%).

The three main units under the Division are Gaming, Gaming and Regulatory Oversight, and Operations.

GAMING
Gaming oversees three units: Audit and Regulatory Compliance; Gaming Operations; and Responsible Gambling.

OPERATIONS
Operations is responsible for Agent Administration, Contract Management, Facilities Operation and Records Management, and Information Technology.

REGULATORY OVERSIGHT
In December 2010, Regulatory Oversight began as the Enforcement Division. In November 2015, the Division reorganized as Regulatory Oversight within the Gaming and Operations Division and then reformed as Gaming and Regulatory Oversight within the Gaming and Regulatory Oversight Division. By January 2022, It had been renamed Regulatory Oversight.

Three units are overseen by Regulatory Oversight: Casino Compliance, Casino Licensing, and Investigations and Security.


SALES & MARKETING DIVISION

The Sales and Marketing 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. In 2015, the Marketing Division re-emerged as a separate division. When the Lottery Division was abolished in November 2021, functions of sales and marketing were joined together to form the Sales and Marketing Division.

The Division plans and manages broadcast, digital and social media ads and promotions; as well as print and out-of-home advertising and promotional efforts. New Lottery games and products also are launched by the Division.

The Division seeks 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 Agency regulations.

Under the Division are eight units: Corporate Sales; Creative Services; Field Sales; Product Development; Retail Recruitment; Sales; Sales Force Automation; and Sales Support.

CREATIVE SERVICES
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. In 2015, the Marketing Division re-emerged as a separate division and oversaw Creative Services, which became part of the Sales and Marketing Division in November 2021.

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 unit. To inform consumers about Lottery products, promotions, and programs, Creative Services 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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