SB 79
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 79 (Chair, Budget and Taxation Committee)(By Request -
Departmental - Lottery and Gaming Control Agency)
Budget and Taxation Ways and Means
Gaming - Video Lottery Facilities and Licenses - Definitions
This departmental bill alters the definition of a “video lottery facility” to include a casino
for the purposes of the federal Bank Secrecy Act of 1970 (BSA) and its related regulations.
Video lottery facility and video lottery operation license definitions are also broadened to
include table games to reflect current practice.
Fiscal Summary
State Effect: None. The change is procedural in nature and does not directly affect
governmental finances, although it creates operational efficiencies by enabling the
U.S. Department of Treasury to share specified financial transaction data with the State
Lottery and Gaming Control Agency (SLGCA) to combat money laundering. The inclusion
of table games in specified definitions clarifies current law.
Local Effect: None.
Small Business Effect: SLGCA has determined that this bill has minimal or no impact on
small business (attached). The Department of Legislative Services concurs with this
assessment.
Analysis
Current Law: A video lottery facility is a facility at which players play video lottery
terminals. A video lottery operation license is a license awarded by the Video Lottery
Facility Location Commission and issued by SLGCA to a person that allows players to
operate video lottery terminals.
Background: The Financial Crimes Enforcement Network (FinCEN), a bureau of the
U.S. Department of the Treasury, administers and issues regulations pursuant to BSA.
Through certain BSA reporting and recordkeeping requirements, paper trails of
transactions are created that law enforcement and others can use in criminal, tax, and
regulatory investigations. The reporting and recordkeeping provisions of BSA apply to
banks, savings and loans, credit unions, and other depository institutions and to other
businesses defined as financial institutions, including casinos, brokers and dealers in
securities, and money services businesses. BSA regulations require certain Money Services
Businesses (MSB) to register with FinCEN and prepare and maintain a list of agents, if
any. In addition, BSA regulations require certain MSBs to report suspicious activity to
FinCEN.
SLGCA is responsible for ensuring compliance with FinCEN’s requirements. FinCEN is
permitted to share specified information with regulators of “casinos”; however, SLGCA
advises FinCEN is currently not permitted to share this information with SLGCA since a
video lottery facility is not defined as a casino under statute. SLGCA advises that this bill
would enable FinCEN to share specified financial transaction data with SLGCA.
Appendix – Maryland Gaming provides detailed background on gaming in Maryland.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Comptroller’s Office; Maryland State Lottery and Gaming
Control Agency; U.S. Department of the Treasury; Department of Legislative Services
Fiscal Note History: First Reader - January 7, 2020
rh/jrb Third Reader - January 17, 2020
Analysis by: Heather N. MacDonagh Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 79/ Page 2
 Appendix – Maryland Gaming
The State of Maryland has authorized and awarded six video lottery operation licenses in
Baltimore City and Allegany, Anne Arundel, Cecil, Prince George’s, and
Worcester counties with a maximum number of 16,500 video lottery terminals (VLTs)
allotted in the State. The opening date and the number of VLTs and table games for each
facility as of November 2019 are shown in Exhibit 1.
Exhibit 1
Number of VLTs and Table Games in Maryland
Casino County Opening Date VLTs Table Games
Hollywood Casino Cecil September 2010 821 21
Ocean Downs Worcester January 2011 892 18
Maryland Live! Anne Arundel June 2012 3,737 195
Rocky Gap Casino Allegany May 2013 665 18
Horseshoe Casino Baltimore City August 2014 2,174 158
MGM National Harbor Prince George’s December 2016 3,102 207
VLT: video lottery terminal
Source: State Lottery and Gaming Control Agency; Department of Legislative Services
VLT and Table Game Revenues
The estimated revenues from VLTs and table games in fiscal 2021 through 2025 are shown
in Exhibit 2. A total of $1.8 billion in gross gaming revenues is projected in fiscal 2021,
including $541.9 million to be distributed to the Education Trust Fund.
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 Exhibit 2
Distribution of Estimated VLT and Table Game Revenues in Maryland
Current Law
($ in Millions)
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
VLTs Distribution
Education Trust Fund $447.3 $452.4 $458.2 $464.0 $469.9
Lottery Operations 11.7 11.8 12.0 12.1 12.3
Purse Dedication Account 68.4 69.2 70.1 72.9 73.8
Racetrack Renewal Account 11.2 11.3 11.5 12.1 12.3
Local Impact Grants 63.5 64.2 65.0 66.8 67.6
Business Investment 17.2 17.4 17.6 18.2 18.4
Licensees 550.9 557.3 564.5 568.0 575.3
Total VLTs $1,170.1 $1,183.7 $1,198.8 $1,214.2 $1,229.7
Table Games Distribution
Education Trust Fund $94.6 $95.8 $97.0 $98.3 $99.5
Local Impact Grants 31.5 31.9 32.3 32.8 33.2
Licensees 504.7 511.1 517.6 524.1 530.8
Total Table Games $630.9 $638.9 $646.9 $655.2 $663.5
Total VLTs and Table Games $1,801.0 $1,822.6 $1,845.8 $1,869.3 $1,893.2
Total Education Trust Fund $541.9 $548.3 $555.2 $562.3 $569.5
VLT: video lottery terminal
Source: Board of Revenue Estimates; Department of Budget and Management; Department of Legislative
Services
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 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Gaming – Video Lottery Facility – Definition
BILL NUMBER: SB0079
PREPARED BY: Maryland Lottery Gaming and Control Agency
(Dept./Agency)
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
__X__ WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESSES
OR
____WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
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