![[photo, Montgomery Park Business Center, 1800 Washington Blvd., Baltimore, Maryland]](/msa/mdmanual/14doe/images/1198-1-654.jpg)
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 is overseen by the Agency. 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.
Montgomery Park Business Center, 1800 Washington Blvd., Baltimore, Maryland, February 2004. Photo by Diane F. Evartt.
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.
From slots gambling revenue, the Education Trust Fund receives almost fifty percent, and the facility operators receiving thirty-three percent. The remaining funds are divided among horse racing activities; small, minority and women-owned businesses; and operational expenses.
The Director of the Agency is appointed by the Governor with Senate advice and consent (Code State Government Article, secs. 9-101 through 9-125). 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).
Within the Agency are five divisions: Administration, Finance and Operations; Enforcement; Gaming; Information Technology; and Lottery. The Agency also is aided by the State Lottery and Gaming Control Commission.
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).
ON-LINE LOTTERY GAMES
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.
Four units comprise the Division: Casino Compliance; Casino Licensing and Background Investigation; Lottery Investigations; and Lottery Security.
Under the Division are three units: Casino Auditing; Responsible Gambling; and Video Lottery Terminal Operations.
CASINO AUDITING
To ensure the integrity of casino gambling operations in Maryland, the unit 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, Casino Auditing also oversees field audits of casino operations statewide.
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 fro promotions, credit, or casino complimentary services.
VIDEO LOTTERY TERMINAL (VLT) OPERATIONS
VLT 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. It also oversees any slot machine conversions, movements, or changes. With casinos, the unit reviews slot machine performance, and seeks to ensure that facilities meet requirements for opening and continuing operations.
Two units are directed by the Division: Contract Services, and Data Processing.
In June 2005, the Product Development Division, the Creative Services Division, and the Research and Planning Division 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 Creative Product Services and Communications. In 2011, it joined the Sales Division to form the Lottery Division.
The Division works to maximize Lottery sales throughout Maryland. It recruits new outlets and ensures that all locations have sufficient products and materials available for players. The Division 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: Communications; Creative Services; Product Development; and Sales.
COMMUNICATIONS
Communications oversees Lottery drawing operations 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 Division.
Under Communications are three units: Lottery Drawings; Promotions and Special Events; and Public Affairs.
CREATIVE SERVICES
Under the 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.
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 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.
ADMINISTRATION, FINANCE & OPERATIONS DIVISION
Under the Administration, Finance and Operations Division are nine units: Budget; Building Services; Customer Relations and Agent Administration; Finance and Accounting; Human Resources; Legislative and Policy Affairs; Procurement and Minority Business Enterprise; Special Projects; and Warehouse Operations.
ENFORCEMENT DIVISION
The Enforcement Division formed in December 2010. At each Maryland casino, the Division maintains staff who work to resolve customer complaints and to ensure that the casinos comply with regulations.
GAMING DIVISION
The Gaming Division was created in July 2011. The Division oversees administration of the Agency's responsibilities for regulating casino gambling in the State, including audits; responsible gambling; slot machine ownership and compliance; and managing the central monitor and control system.
Casino Auditing was established under the Gaming Division in July 2011.
Responsible Gambling formed as a unit of the Gaming Division in July 2011. For persons who suffer from problem or pathological gambling, the unit provides education and connections to statewide resources to combat problems through the Maryland Alliance for Responsible Gambling.
Under the Gaming Division, Video Lottery Terminal Operations was organized in July 2011.
INFORMATION TECHNOLOGY DIVISION
The Information Technology Division began as the Electronic Data Processing, Research and Development Division, and reorganized under its present name in 1997. The Division manages the operation of data processing systems that support Lottery gaming activities. It also provides technical assistance to the Agency, and develops and supports internal data systems, the local area network, and website infrastructure.
LOTTERY DIVISION
The Lottery Division began as the Marketing Division, reformed as the Marketing and Advertising Division in 1997, 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 2011.
As the Public Affairs Division, Communications originated in 1997, and became the Communications Division in 2001. In January 2008, it joined the Product Development, Creative Services and Research Division to form the Product Development, Creative Services and Communications Division.
In 2001, Creative Services was initiated as the Creative Services Division. It merged with the Product Development Division and the Research and Planning Division to form the Product Development, Creative Services and Research Division in June 2005.
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