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--- version:First - Gaming - Problem Gambling - Prevalence Study and Fund Revenue
+++ version:(document, no version)
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-EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
-        [Brackets] indicate matter deleted from existing law.
-           *sb0862*
-
-SENATE BILL 862
-C7, J1   6lr3489
-SB 706/25 – B&T   CF 6lr3499
-By: Senator Zucker
-Introduced and read first time: February 6, 2026
-Assigned to: Budget and Taxation
-
-A BILL ENTITLED
-
-AN ACT concerning 1
-
-Gaming – Problem Gambling – Prevalence Study and Fund Revenue 2
-
-FOR the purpose of requiring the Maryland Department of Health to conduct certain 3
-prevalence studies concerning problem and pathological mobile gambling; altering 4
-the distribution of certain fantasy competition and sports wagering proceeds; and 5
-generally relating to problem gambling and the Problem Gambling Fund. 6
-
-BY repealing and reenacting, with amendments, 7
- Article – Health – General 8
-Section 19–804 9
- Annotated Code of Maryland 10
- (2023 Replacement Volume and 2025 Supplement) 11
-
-BY adding to 12
- Article – State Government 13
-Section 9–1A–33(b)(7) 14
- Annotated Code of Maryland 15
- (2021 Replacement Volume and 2025 Supplement)  16
-
-BY repealing and reenacting, with amendments, 17
- Article – State Government 18
-Section 9–1D–04 and 9–1E–12(b) 19
- Annotated Code of Maryland 20
- (2021 Replacement Volume and 2025 Supplement) 21
-
-BY repealing and reenacting, without amendments, 22
- Article – State Government 23
- Section 9–1E–12(a) 24
- Annotated Code of Maryland 25
- (2021 Replacement Volume and 2025 Supplement) 26
-
-2 SENATE BILL 862
-
- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
-That the Laws of Maryland read as follows: 2
-
-Article – Health – General 3
-
-19–804. 4
-
- (a) (1) The Secretary shall make grants from or agreements for the use of State 5
-funds, including the funds provided under § 9–1A–33 of the State Government Article, and 6
-federal funds to help public agencies or nonprofit organizations operate the network of 7
-clinically appropriate services for problem gamblers who reside in the State to provide the 8
-following: 9
-
-   (i) Inpatient and residential services; 10
-
-   (ii) Outpatient services; 11
-
-   (iii) Intensive outpatient services; 12
-
-   (iv) Continuing care services; 13
-
-   (v) Educational services; 14
-
-   (vi) Services for victims of domestic violence; and 15
-
-   (vii) Other preventive or rehabilitative services or treatment. 16
-
-  (2) Research and training that are designed to improve or extend these 17
-services are proper items of expense. 18
-
- (b) The Secretary shall conduct [a]: 19
-
-  (1) A prevalence study and replication prevalence studies to measure the 20
-rate of problem and pathological IN–PERSON gambling in the State; AND 21
-
-  (2) A PREVALENCE STUDY AND REPLICATION PREVALENCE STUDIES 22
-TO MEASURE THE RATE OF PROBLEM AND PATHOLOGICAL MOBILE GAMBLING IN 23
-THE STATE. 24
-
- (c) (1) Subject to paragraph (2) of this subsection, the Secretary shall contract 25
-with an independent researcher to conduct the prevalence studies. 26
-
-  (2) The Secretary shall utilize the most current psychiatric  or diagnostic 27
-criteria for problem and pathological gambling as the basis for the prevalence studies. 28
-
- SENATE BILL 862 3
-
- (d) (1) The initial prevalence study  ON PROBLEM AND PATHO LOGICAL  1
-IN–PERSON GAMBLING IN THE STATE shall be completed on or before July 1, 2009. 2
-
-  (2) THE INITIAL PREVALENC E STUDY ON PROBLEM A ND 3
-PATHOLOGICAL MOBILE GAMBLING IN THE STATE SHALL BE COMPLE TED ON OR 4
-BEFORE JULY 1, 2031. 5
-
- (e) Replication prevalence studies shall be conducted no less than every 5 years 6
-with measures taken to permit comparisons  between the initial prevalence study and 7
-subsequent replication prevalence studies. 8
-
- (f) Services under this subtitle shall be provided by public agencies or, under 9
-contract, by nonprofit organizations. 10
-
-Article – State Government 11
-
-9–1A–33. 12
-
- (b) (7) ON OR BEFORE NOVEMBER 1, 2027, AND EACH NOVEMBER 1 13
-THEREAFTER, THE SECRETARY OF HEALTH SHALL SUBMIT A  REPORT TO THE 14
-GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THIS ARTICLE , ON HOW 15
-THE FUNDS IN THE PROBLEM GAMBLING FUND HAVE BEEN EXPEND ED ON 16
-PROBLEM GAMB LING TREATMENT AND P REVENTION PROGRAMS U NDER THIS 17
-SUBSECTION. 18
-
-9–1D–04. 19
-
- (a) A fantasy competition operator shall retain [85%] 84% of the proceeds and 20
-pay the remainder to the Commission. 21
-
- (b) (1) [The] EXCEPT AS PROVIDED IN  PARAGRAPH (2) OF THIS 22
-SUBSECTION, THE Commission shall distribute the proceeds paid under subsection (a) of 23
-this section to the Blueprint for Maryland’s Future Fund established under § 5–206 of the 24
-Education Article. 25
-
-  (2) THE COMMISSION SHALL DIST RIBUTE 1% OF THE PROCEEDS 26
-FROM FANTASY COMPETITIONS TO THE PROBLEM GAMBLING FUND ESTABLISHED 27
-UNDER § 9–1A–33 OF THIS TITLE. 28
-
-9–1E–12. 29
-
- (a) (1) The Commission shall account to the Comptroller for all of the revenue 30
-under this subtitle. 31
-
-4 SENATE BILL 862
-
-  (2) The proceeds from sports wagering, less the amount retained by the 1
-licensee under subsection (b)(1) of this section, shall be under the control of the Comptroller 2
-and distributed as provided under subsection (b) of this section. 3
-
- (b) (1) (i) Except as provided in subparagraphs (ii), (iii), and (iv) of this 4
-paragraph, all proceeds from sports wagering shall be electronically transferred monthly 5
-into the State Lottery Fund established under Subtitle 1 of this title. 6
-
-   (ii) A Class A –1 and A–2 sports wagering facility licensee shall 7
-retain [85%] 84% of the proceeds from sports wagering conducted at the locations described 8
-in § 9–1E–09(a) of this subtitle. 9
-
-   (iii) A Class B –1 and B –2 sports wagering facility licensee shall 10
-retain [85%] 84% of the proceeds from sports wagering conducted at the location described 11
-in the licensee’s application. 12
-
-   (iv) A mobile sports wagering licensee shall retain [80%] 79% of the 13
-proceeds from online sports wagering received by the licensee. 14
-
-  (2) (i) Except as provided in subparagraph (ii) of this paragraph, all 15
-proceeds from sports wagering in the State Lottery Fund established under Subtitle 1 of 16
-this title shall be distributed on a monthly basis, on a properly approved transmittal 17
-prepared by the Commiss ion to the Blueprint for Maryland’s Future Fund established 18
-under § 5–206 of the Education Article. 19
-
-   (ii) 1. THE COMMISSION SHALL DIST RIBUTE 1% OF ALL 20
-SPORTS WAGERING PROC EEDS TO THE PROBLEM GAMBLING FUND ESTABLISHED 21
-UNDER § 9–1A–33 OF THIS TITLE. 22
-
-    2. For fiscal year 2026 and each fiscal year thereafter, 5% of 23
-the proceeds [attributable to mobile] FROM ONLINE sports wagering shall be deposited in 24
-the General Fund. 25
-
- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 26
-1, 2026. 27
+  SB 862
+Department of Legislative Services
+Maryland General Assembly
+2026 Session
+
+FISCAL AND POLICY NOTE
+First Reader
+Senate Bill 862 (Senator Zucker)
+Budget and Taxation
+
+Gaming - Problem Gambling - Prevalence Study and Fund Revenue
+
+This bill requires a percentage point of fantasy competition and sports wagering proceeds
+to be deposited into the Problem Gambling Fund. The bill specifies that the prevalence
+study and replication prevalence studies that the Secretary of Health must cond uct under
+current law are for problem and pathological in-person gambling in the State, and the bill
+requires an additional study and replication studies on problem and pathological mobile
+gambling with the first study being completed by July 1, 2031, and subsequent replication
+prevalence studies conducted at least every five years. By November 1, 2027, and annually
+thereafter, the Secretary of Health must submit a report to the General Assembly on how
+funds in the Problem Gambling Fund have been expended on problem gambling treatment
+and prevention programs. The bill takes effect July 1, 2026.
+
+Fiscal Summary
+
+State Effect:  Special fund revenues and expenditures for the Problem Gambling Fund
+increase by at least $5.9 million annually beginning in FY 2027.
+
+($ in millions) FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
+SF Revenue $5.9 $6.1 $6.2 $6.3 $6.3
+SF Expenditure $5.9 $6.1 $6.2 $6.3 $6.3
+Net Effect $0.0 $0.0 $0.0 $0.0 $0.0
+Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
+
+Local Effect:  None.
+
+Small Business Effect:  Potential meaningful.
+
+SB 862/ Page 2
+Analysis
+
+Bill Summary:  Fantasy competition operators and retail sports wagering licensees retain
+84%, instead of 85%, of their respective proceeds and the Problem Gambling Fund receives
+1% of proceeds. Mobile sports wagering licensees retain 79%, instead of 80%, of their
+proceeds, and the Problem Gambling Fund receives 1% of proceeds.
+
+Current Law:
+
+Sports Wagering and Fantasy Competitions
+
+Chapter 492 of 2020, a constitutional amendment approved by the voters at the
+November 2020 general election, authorized sports and event  wagering, contingent upon
+implementation legislation passed by the General Assembly. Chapter 356 of 2021
+implemented sports wagering in the State and provides for regulation of sports wagering
+and fantasy gaming competitions. Chapter 604 of 2025 increased  the mobile sports
+wagering tax rate from 15% to 20%. Mobile sports wagering licensees receive 80% of
+mobile sports wagering proceeds, while all other licensees receive 85% of proceeds from
+sports wagering and fantasy gaming. Beginning in fiscal 2026, 5% o f mobile sports
+wagering proceeds ( i.e., 25% of State mobile sports wagering revenues) is distributed to
+the general fund and the remainder is distributed to the Blueprint for Maryland ’s Future
+Fund, which supports public education. Any winnings on a sports event not claimed within
+182 days after the wager is won revert to the Problem Gambling Fund.
+
+Problem Gambling
+
+Video lottery operation licensees must pay an annual fee of $425 per video lottery terminal
+for a Problem Gambling Fund administered by the Maryland Department of Health
+(MDH), and the State Lottery and Gaming Control Commission has established an annual
+fee of $500 per table game for the Problem Gambling Fund. The Problem Gambling Fund
+is used to fund programs to treat and prevent gambling addiction. After satisfying specified
+requirements, any unspent funds in the Problem Gambling Fund may be expended by MDH
+on drug and other addiction treatment services.
+
+MDH is required to conduct a problem and pathological gambling prevalence study to
+measure the rate of problem and pathological gambling in the State. Replication prevalence
+studies must be conducted at least every five years with measures taken to permit
+comparisons between the initial prevalence study and subsequent replication prevalence
+studies.
+
+Appendix – Maryland Gaming  provides the status of gaming in Maryland as of
+December 2025.
+
+SB 862/ Page 3
+State Fiscal Effect:  Based upon December 2025 projections of sports wagering revenues,
+special fund revenues to the Problem Gambling Fund increase by at least $5.9 million
+annually beginning in fiscal 2027, as shown in Exhibit 1. Special fund expenditures from
+the Problem Gambling Fund increase correspondingly for prevalence studies and to fund
+programs to treat and prevent gambling addiction. MDH can likely report on how funds in
+the Problem Gambling Fund have been expended on problem gambling treatment and
+prevention programs with existing resources.
+
+Exhibit 1
+Estimated Revenue Distributed to the Problem Gambling Fund Under the Bill
+($ in Millions)
+
+ FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
+Sports Wagering Revenue – Retail $0.14 $0.14 $0.14 $0.14 $0.13
+Sports Wagering Revenue – Mobile 5.70 5.85 5.95 6.04 6.13
+Fantasy Competitions 0.08 0.08 0.08 0.08 0.08
+Total $5.91 $6.06 $6.16 $6.25 $6.34
+
+Source:  Department of Legislative Services
+
+Small Business Effect:  Small businesses that are sports wagering licensees or fantasy
+competition operators must pay an additional percentage point of proceeds to the State.
+
+Additional Information
+
+Recent Prior Introductions:  Similar legislation has been introduced within the last
+three years. See SB 706 and HB 700 of 2025 and SB 878 and HB 1029 of 2024.
+
+Designated Cross File:  HB 1409 (Delegate Ross, et al.) - Ways and Means.
+
+Information Source(s):  Comptroller’s Office; Department of Budget and Management;
+Maryland Department of Health; Maryland State Lottery and Gaming Control Agency;
+Department of Legislative Services
+
+Fiscal Note History:  First Reader - March 2, 2026
+ js/jrb
+
+Analysis by:  Heather N. MacDonagh  Direct Inquiries to:
+(410) 946-5510
+(301) 970-5510
+
+SB 862/ Page 4
+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 in
+operation for each facility as of December 2025 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 654  18
+Ocean Downs Worcester January 2011 900  18
+Maryland Live! Anne Arundel June 2012 3,878  179
+Rocky Gap Casino Allegany May 2013 628  12
+Horseshoe Casino Baltimore City August 2014 1,365  115
+MGM National Harbor Prince George’s December 2016 2,268  214
+
+VLT:  video lottery terminal
+
+Source:  State Lottery and Gaming Control Agency; Department of Legislative Services
+
+Video Lottery Terminals and Table Game Revenues
+
+The estimated revenues from VLTs and table games in fiscal 2027 through 2031 are shown
+in Exhibit 2. A total of $2.0 billion in gross gaming revenues is projected in fiscal  2027,
+including $607.4 million to be distributed to the Education Trust Fund.
+
+SB 862/ Page 5
+
+Exhibit 2
+Distribution of Estimated VLT and Table Game Revenues in Maryland
+Current Law
+($ in Millions)
+
+ FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
+VLTs Distribution
+Education Trust Fund $517.7 $523.4 $533.5 $538.8 $544.9
+Lottery Operations 13.6 13.8 13.9 14.0 14.2
+Purse Dedication Account 81.8 82.7 83.5 84.2 85.0
+Racetrack Renewal Account 12.0 12.2 6.9 6.5 5.3
+Local Impact Grants 75.0 75.8 76.5 77.2 77.9
+Business Investment 20.5 20.7 20.9 21.1 21.2
+Licensees  643.2 650.1 655.9 661.8 667.8
+Total VLTs  $1,363.9 $1,378.7 $1,391.1 $1,403.6 $1,416.2
+Table Games Distribution
+Education Trust Fund $89.7 $90.4 $91.0 $91.7 $92.4
+Local Impact Grants 29.9 30.1 30.3 30.6 30.8
+Licensees 478.4 482.0 485.6 489.2 492.9
+Total Table Games  $598.0 $602.4 $607.0 $611.5 $616.2
+Total VLTs and Table Games $1,961.8 $1,981.1 $1,998.0 $2,015.1 $2,032.4
+Total Education Trust Fund $607.4 $613.8 $624.5 $630.5 $637.3
+
+VLT:  video lottery terminal
+
+Note:  Numbers may not sum to total due to rounding.
+
+Source:  Board of Revenue Estimates; Department of Budget and Management; Department of Legislative
+Services
+
+Chapter 492 of 2020, a constitutional amendment approved by the voters at the
+November 2020 general election, authorized sports and event wagering, contingent upon
+implementation legislation passed by the General Assembly. Chapter 356 of 2021
+implemented sports wagering in the State and provides for regulation of sports wagering
+and fantasy gaming competitions. Chapter 604 of 2025 increased the mobile sports
+wagering tax rate from 15% to 20%. Mobile sports wagering licensees receive 80% of
+mobile sports wagering proceeds, while all other licensees receive 85% of proceeds from
+
+SB 862/ Page 6
+sports wagering and fantasy gaming. Beginning in fiscal 2026, 5% of mobile sports
+wagering proceeds ( i.e., 25% of State mobile sports wagering revenues) is distributed to
+the general fu nd and the remainder is distributed to the Blueprint for Maryland’s Future
+Fund, which supports public education. State revenues from sports wagering and fantasy
+gaming and their distributions in fiscal 2027 through 2031 are shown in Exhibit 3.
+
+Exhibit 3
+Distribution of Estimated State Sports Wagering and Fantasy Competition Revenues
+Current Law
+($ in Millions)
+
+ FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
+State Revenues
+Sports Wagering – Retail $2.1  $2.1  $2.1  $2.0  $2.0
+Sports Wagering – Mobile 113.9  117.0  119.0  120.8  122.6
+Sports Wagering License Fees 4.0  0.0  0.0  0.0  0.0
+Fantasy Competition 1.1  1.1  1.1  1.1  1.1
+Total $121.1  $120.2  $122.2  $123.9  $125.7
+
+Distribution
+Blueprint for Maryland’s Future Fund1 $92.7  $91.0  $92.4  $93.8  $95.1
+General Fund 28.5  29.2  29.7  30.2  30.6
+SMWOBSWA Fund2 0.0  0.0  0.0  0.0  0.0
+Problem Gambling Fund3 1.4  1.3  1.3  1.3  1.3
+
+SMWOBSWA:  Small, Minority-Owned, and Women-Owned Business Sports Wagering Assistance
+
+1 The Blueprint for Maryland’s Future Fund is intended to assist in providing adequate funding for early
+childhood education and primary and secondary education to provide a world -class education to students
+in Maryland.
+2 Five percent of the class A-1 license fees ($2.0 million each) and of the class A-2 license fees ($1.0 million
+each) are paid into the SMWOBSWA Fund. Five percent of renewal fees are transferred to the
+SMWOBSWA Fund.
+3 Player winnings not claimed within 182 days are distributed to the Problem Gambling Fund.
+
+Note:  Numbers may not sum to total due to rounding.
+
+Source:  Board of Revenue Estimates; Department of Legislative Services