Bicounty Commissions - Public Ethics - Financial Disclosure Statements PG/MC 105-26
HB0328 expands and restructures Maryland’s rules for instant ticket lottery machines operated by veterans’ organizations and newly eligible fraternal organizations. The bill authorizes the State Lottery and Gaming Control Agency to issue licenses to certain fraternal organizations, sets a cap of up to three machines for fraternal organizations and up to five for veterans’ organizations, and requires both types of organizations to operate the machines at their principal meeting hall in the county where they are located. It also adds new definitions for “fraternal organization” and “active members,” and bars fraternal organizations from placing machines in locations tied to higher education campuses or student housing.
The bill changes how proceeds from machine sales are distributed. Veterans’ organizations would retain 50% of net proceeds, with the remainder split among the Maryland Veterans Trust Fund, agency costs, and the Education Trust Fund. Fraternal organizations would retain 25% of net proceeds for scholarships, capital improvements, acquisitions, or community outreach, while the rest would be distributed to the Homelessness Solutions Program, the Maryland Veterans Trust Fund, agency costs, and the Education Trust Fund. The bill also removes a prior requirement that veterans’ organizations purchase or lease the machines themselves and instead allows the agency to recover purchase/lease and administrative costs from proceeds. It takes effect July 1, 2025.
In state-law terms, HB0328 amends State Government Article § 9-112 governing the instant ticket lottery machine program. It broadens eligibility beyond veterans’ organizations, adjusts licensing standards from mandatory to discretionary consideration of applicant factors, and modifies operational and payout rules for the program. The bill also clarifies that the element of chance must remain wholly within the pre-printed lottery ticket, consistent with existing case law, and preserves the agency’s authority to adopt implementing regulations.
The overall sentiment reflected in the bill text is pragmatic and expansion-oriented, with the measure appearing designed to create a new revenue stream for fraternal organizations while preserving support for veterans, education, and state-administered programs. Because there were no committee transcripts or recorded votes provided, there is no direct evidence of floor or committee debate, but the structure of the bill suggests an attempt to balance charitable gaming access with restrictions on location and distribution of proceeds.
The main points of potential contention are likely to be the expansion of gaming privileges to fraternal organizations, the allocation of proceeds away from the State Lottery Fund toward multiple designated beneficiaries, and the prohibition on operating machines in higher-education-related locations. Questions may also arise about whether the new revenue-sharing formula and licensing rules fairly treat veterans’ organizations versus fraternal organizations, and about the policy implications of allowing charitable gaming in more nonprofit settings.
HB0328 amends Maryland’s State Government Article § 9-112 to expand the instant ticket lottery machine program to certain fraternal organizations, establish new licensing and location rules, and revise how proceeds are divided among organizations and state funds. It affects veterans’ organizations, fraternal organizations, the State Lottery and Gaming Control Agency, the Maryland Veterans Trust Fund, the Homelessness Solutions Program, and the Education Trust Fund, while also changing the agency’s licensing discretion and operational oversight for charitable gaming machines.
No committee transcripts or vote tallies were provided, so there is no direct record of debate or opposition in the supplied materials. Based on the bill’s structure, the measure appears generally supportive of charitable gaming expansion and targeted funding for veterans, homelessness services, education, and nonprofit community uses, while also imposing safeguards on machine placement and operation.
Likely areas of contention include whether fraternal organizations should be granted access to instant ticket lottery machines at all, whether the bill’s revenue split appropriately balances nonprofit and state interests, and whether the restrictions on campus-adjacent locations are sufficient. Another possible point of dispute is the shift from mandatory to discretionary licensing factors and the removal of the prior requirement that veterans’ organizations purchase or lease the machines themselves, which may affect program costs and administrative control.