STATE LOTTERY & GAMING CONTROL AGENCY

ORIGIN & FUNCTIONS

The Maryland State Lottery as well as State gambling casinos 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 four divisions: Administration, Finance, and Information Technology; Gaming and Operations; Lottery; and Marketing. The Agency also is aided by the State Lottery and Gaming Control Commission.

PUBLIC INFORMATION OFFICE
As the Public Affairs Division, the Public Information Office 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.

The Public Information Office 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 Office are three units: Communications, Promotions and Events; Drawings; and Public Affairs.

STATE LOTTERY & GAMING CONTROL COMMISSION
The State Lottery and Gaming Control Commission serves as an advisory board to the State Lottery and Gaming Control Agency. In November 2008, the Commission also was assigned responsibility for regulating the operation of video lottery terminals (slot machines) in Maryland (Chapter 4, Acts of 2007 Special Session; Code State Government Article, sec. 9-1A-04).

The Commission oversees lottery and gaming 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.

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.

MARYLAND AMUSEMENT GAME ADVISORY COMMITTEE
In June 2014, the Maryland Amusement Game Advisory Committee was authorized (Chapter 464, Acts of 2014).

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.

The Committee consists of seven members. 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).

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 and sales taxes. Sixty percent of Lottery revenue goes to pay prizes to players, with the remaining funds going to retailer commissions and operational expenses. Thirty percent of revenues from the State Lottery are deposited in the General Fund of the State Treasury to support Maryland government programs in education, public health, public safety and the environment.

ON-LINE LOTTERY GAMES
The State Lottery and Gaming Control Agency provides a variety of on-line games which include Pick 3, Pick 4, Bonus Match 5, Keno, Mega Millions, Multi-Match, Powerball, and Racetrax. In addition, the Agency offers an assortment of instant ticket games. Subscriptions are offered for Multi-Match and Mega-Millions. Official winning numbers are drawn on live television and are posted on the State Lottery Agency website.

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.

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 from one to twelve horses to win prizes ranging from $1.20 to $31,454. Drawings are held approximately every five minutes.

Mega Millions (formerly The Big Game). Mega Millions is a multi-state game with multi-million dollar jackpots that start at $12 million. Players select six numbers from two different fields: five out of 56 and one Gold Mega Ball number out of 46. Winning numbers are drawn on Tuesday and Friday evenings; the game costs $1 to play. Forty-one 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 evenings. The game offers a minimum jackpot of $500,000.

Powerball. Since January 31, 2010, Maryland and forty-one other states, the District of Columbia and the U.S. Virgin Islands in offering Powerball. Players select or request the computer to generate 6 numbers from two different fields: five out of 59 and one powerball number out of 39. Drawings are held Wednesday and Saturday evenings for jackpots starting at $20 million.

Prizes. Prizes of $600 or less may be claimed through any Lottery retail location. Winning tickets up to $5,000 can be cashed at Agent Plus retail locations. Winning tickets of any amount may be redeemed at the Maryland State Lottery Claim Centers in Baltimore. Retail locations also provide how-to-play brochures and other game information.

MARYLAND VIDEO LOTTERY (SLOTS GAMBLING)
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).

The State Lottery and Gaming Control Agency regulates this Maryland Video Lottery Program (slots gambling). 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).

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

ADMINISTRATION, FINANCE, & INFORMATION TECHNOLOGY DIVISION

Under the Division are five units: Customer Relations; Financial Operations; Human Resources; Information Technology; and Procurement and Minority Business Enterprise.

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.

GAMING & OPERATIONS DIVISION

In Maryland, the Division regulates casino gambling. The Division conducts audits; monitors slot machine ownership and compliance; and manages the central monitor and control system; and administers responsible gambling programs.

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

GAMING
Under Gaming are three units: Auditing and Regulatory Compliance; Gaming Operations; and Responsible Gambling.

AUDITING & REGULATORY COMPLIANCE
Auditing and Regulatory Compliance was established as Casino Auditing under the Gaming Division in July 2011. It received its present name in September 2014.

To ensure the integrity of casino gambling in Maryland, Auditing 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, Auditing and Regulatory Compliance also oversees field audits of casinos statewide.

GAMING OPERATIONS
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.

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
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.

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.

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.

At each Maryland casino, the Division maintains staff who work to resolve customer complaints and to ensure that the Maryland State Lottery and the State gambling casinos comply with regulations.

Three units are overseen by the Division: Casino Compliance, Lottery Investigations, and Video Lottery Terminal (VLT) Licensing.

LOTTERY DIVISION

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 Lottery sales throughout Maryland. 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.

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

MARKETING DIVISION

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.

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