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 for gaming, especially table games (Chapter 1, Acts of 2012 2nd Special Session).

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.


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 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.

MARYLAND STATE LOTTERY
Through the Maryland State 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 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.

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).


[photo, Rocky Gap Casino Resort, Flintstone (Allegany County), Maryland] Six State casinos operate in Maryland:
Hollywood Casino in Perryville (Cecil County) opened in September 2010;
Casino at Ocean Downs 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 gambling revenue in Fiscal Year 2014, the Education Trust Fund received 39.4 percent, and casino operators received 48.7 percent. Remaining funds were divided among horse-racing activities; local impact grants; small, minority and women-owned businesses; and operational expenses.


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 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

Gaming and Operations started as the Gaming Division in July 2011, and reformed under its present name in November 2015.

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.

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

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 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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