STATE LOTTERY & GAMING CONTROL AGENCY

ORIGIN & FUNCTIONS


[photo, Montgomery Park Business Center, 1800 Washington Blvd., Baltimore, Maryland] 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.


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).

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.


ADMINISTRATION, FINANCE & INFORMATION TECHNOLOGY DIVISION

The Administration, Finance and Information Technology Division started as Administration, Finance, and Operations in 1977, and reformed as the Administration, Finance, Operations and Information Technology Division by June 2014. It restructured under its present name in 2015.

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.


COMMUNICATIONS DIVISION

As the Public Affairs Division, the Communications Division originated in 1997, and became the Communications Division in 2001. The Division joined with the Product Development, Creative Services and Research Division in January 2008 to form the Product Development, Creative Services and Communications Division, which reorganized in 2009 as the Creative Product Services and Communications Division. With the Sales Division it merged to become the Lottery Division in July 2011, and reformed as the Public Information Office in November 2015. As it transferred to the Administration, Finance and Information Technology Division in 2017, the Office was renamed the Communications Division.

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.


GAMING, OPERATIONS & REGULATORY OVERSIGHT DIVISION

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

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] 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] 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 $1.421 billion in gaming revenue in Fiscal Year 2017, the Education Trust Fund received 31.8 percent, and casino operators received 53.3 percent. Remaining funds were divided among horse-racing activities (4.4%); local impact grants and local jurisdictions (4.6%); small, minority and women-owned businesses (.9%); responsible gaming (.3%); and operational expenses (.7%).

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

GAMING
Under Gaming are 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.

REGULATORY OVERSIGHT
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.

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


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.

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
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.

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.

Under the Division are four sections: Analysis and Reporting, Corporate Sales, Retail Recruitment, and Sales.


MARKETING DIVISION

The Marketing Division is responsible for three units: Communications, Promotions, and Events; Creative Services; and Product Development.

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.

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.

Maryland Constitutional Offices & Agencies
Maryland Departments
Maryland Independent Agencies
Maryland Executive Commissions, Committees, Task Forces, & Advisory Boards
Maryland Universities & Colleges
Maryland Counties
Maryland Municipalities
Maryland at a Glance


Maryland Manual On-Line

Search the Manual
e-mail: mdmanual@mdarchives.state.md.us


This information resource of the Maryland State Archives is presented here for fair use in the public domain. When this material is used, in whole or in part, proper citation and credit must be attributed to the Maryland State Archives. PLEASE NOTE: Rights assessment for associated source material is the responsibility of the user.


Tell Us What You Think About the Maryland State Archives Website!


[ Archives' Home Page  ||  All About Maryland  ||  Maryland Manual On-Line  ||  Reference & Research
||  Search the Archives   ||  Education & Outreach  ||  Archives of Maryland Online ]

Governor     General Assembly    Judiciary     Maryland.Gov

© Copyright October 02, 2018 Maryland State Archives