Bill
SB 850
The bill authorizes licensed lottery agents to contract with third‑party entities to purchase and deliver physical lottery tickets to Maryland residents, with possible service fees
Status snapshot
- Bill number: SB 850 (Senator Katie Fry Hester / Senator Zucker appears in text)
- Subject: State Lottery — authorization for licensed agents to contract with third‑party entities to purchase and deliver lottery tickets to Maryland residents
- Introduced: January 2025 (first reading late Jan/Feb 2025)
- Committee assignment (per documents): Budget & Taxation; cross‑file HB 539
- Hearing noted in bill information: 3/05 at 1:00 p.m.
- Effective date stated in fiscal note/bill text: July 1, 2025 (bill text adds the new law to take effect on that date)
Purpose and intent
- To authorize the State Lottery and Gaming Control Agency (SLGCA) to permit licensed retail lottery agents to enter into agreements with third‑party entities that will buy State lottery tickets on behalf of individuals in Maryland and deliver the physical tickets to those purchasers. The bill also authorizes those third‑party entities to charge a service fee.
Key provisions
- Adds Section 9‑111(g) to the State Government Article (Annotated Code of Maryland):
- SLGCA may allow a licensed agent to contract with a third‑party entity to purchase and deliver State lottery tickets to an individual located in Maryland.
- The third‑party entity may charge a service fee for providing this service.
- Does not expressly change other existing State Lottery restrictions (see fiscal note): current prohibitions, including the prohibition on establishing systems that allow lottery ticket purchases via Internet‑connected electronic devices, remain in force unless separately amended.
Who is affected
- Consumers: Maryland residents who wish to use a third‑party service to obtain lottery tickets. They may pay convenience/service fees in addition to ticket cost.
- Licensed lottery agents/retailers: may enter into business arrangements with third‑party delivery purchasers, subject to SLGCA authorization and any regulatory requirements.
- Third‑party delivery/service companies: potential new business opportunity, subject to SLGCA rules and agent agreements.
- SLGCA: gains discretion to authorize and regulate these arrangements; will need to update licensing/oversight practices and contracts.
Fiscal and regulatory impact
- Fiscal note (Department of Legislative Services): the bill authorizes but does not require SLGCA to allow these agreements; because online ticket sales remain prohibited, the Department assumes limited change to lottery revenues and concludes there is no material fiscal impact to the State. Local impact: none. Small business effect: minimal (may create limited new service business opportunity).
- Regulatory implications: SLGCA would need to adopt terms, oversight practices, and possibly conditions to address fraud prevention, prize validation, agent responsibilities, and consumer protections.
Procedural/timeline notes
- Introduced in early 2025, referred to Budget & Taxation; had hearings in spring 2025 (documented hearing scheduling around March).
- Companion bill: HB 539.
- If enacted, the bill’s stated effective date is July 1, 2025.
Practical considerations (summary)
- The bill permits a regulated, agent‑based third‑party delivery model for physical lottery tickets (not Internet sales). Implementation details (what SLGCA requires of agents and third‑party vendors, consumer protections, fee disclosure, and prize validation procedures) will be established by agency rules and by the terms that licensed agents negotiate with third‑party entities.
Compiled from official sources — confirm details with the bill’s official record.
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