The Small, Minority-Owned, Women-Owned Business Sports Wagering Assistance Fund (SWAF) goal is to maximize the opportunity for small businesses, including small minority-owned and small women-owned businesses, to participate in the sports wagering industry. Five percent of Class A sports wagering licensing fees funds the Sports Wagering Assistance Fund program.
Sports Wagering Assistance Fund may be used to provide grants or loans to small, minority-owned or women-owned businesses for the following:
- Sports wagering license application assistance
- Assistance with sports wagering operations
- Targeted training to support participation in the sports wagering industry
ELIGIBILITY
General Eligibility
To be eligible for the Sports Wagering Assistance Fund, businesses must meet all applicable sports wagering licensing requirements, which can be located on the
Maryland Lottery and Gaming website. Businesses must be registered and in Good Standing with the State.
For assistance with operating and training cost must have sports wagering license.
Eligible Types of Applicants
- Class B1 or B2 sports wagering facility license
- Online mobile sports wagering operators
- Contractors or vendors for sports wagering services
- Mobile sports wagering licensee (will be considered after B1 of B2 applicants)
- Must be registered with State Department of Assessment and Taxation and in Good Standing with the State of Maryland
Targets and Priorities
The Sports Wagering Assistance Fund is targeted to assist Maryland based small, minority-owned, and women-owned businesses* entering the sports wagering market. Priority will be given to applicants pursuing class B1 or B2 sports wagering facility license. Secondary consideration will be given to applicants pursuing a mobile sports wagering license.
* A "small business" for purposes of the Program, of a Fund, and of a Contract, is a concern, business, enterprise, or firm ("a business") that is organized for profit, is independently owned and operated, is not a subsidiary of another business entity, is not dominant in its field, is not a broker, and meets the small business size standards established by the U.S. Small Business Administration (SBA) under the criteria and size standards in Title 13, Code of Federal Regulations, part 121 (13 CFR 121), the "Program definition of Small Business". Generally, size standards are measured by average annual gross receipts (ranging from $750,000 to $35,500,000, depending on the industry and as established from time to time by the SBA) or average number of employees (ranging from 500 to 1,000, depending on the industry and as established from time to time by the SBA). Depending on the particular industry or industry segment, size standard eligibility is based on the average number of employees for the preceding 12 months or on annual sales volume (receipts) averaged over a three-year period. Fund managers shall apply the SBA's general upper limit size standards for small businesses as established by the SBA from time to time. Affiliation of businesses for the purpose of determining whether a business is a Small Business for Program purposes will be determined in accordance with 13 CFR § 121.103.
Repeat Participation in Sports Wagering Assistance Fund
The Department has discretion to award additional funding to operators who have participated in the program based on funding availability. However, the Department discourages repeat usage.
REQUIREMENTS AND FUNDS
Eligible Types of Training
-
Sports Wagering Application Assistance Grant up to $10,000 not to exceed 50% of the application assistance provided.
Support will be in the form of a Grant of up to 50% of consulting fees not to exceed $10,000 for application assistance. Applicants must provide evidence of a consulting contract to assist with the application process and final invoice for services provided.
-
Sports Wagering Licensing Support and Background Checks. Reimbursable Grant Amount up to $25,000 not to exceed 50% of the License Fee or published Background Check fee (net of any refunds).
Must meet all applicable sports wagering licensing requirements, which can be located on the
Maryland Lottery and Gaming website.
Support will be in the form of a reimbursable Grant of up to 50% of the published license fee and/or published background check fees net of any refunds not to exceed $25,000. Evidence must be provided to demonstrate that the application and final approval of background payment has been submitted net of any refunds to the Sports Wagering Application Review Commission (SWARC) and Maryland Lottery and Gaming Control Agency (MLGCA) for approval.
Grantees must provide evidence of a license issued by Sports Wagering Application Review Commission (SWARC) and issued by MLGCA.
-
Sports Wagering Operating Support Grant up to $50,000.
Reimbursable Grant up to 50% of eligible operating costs. Funding can be used to support eligible expenses related to establishing a sports wagering business.
Examples of Eligible Operating Expenses covered under the Grant include the following:
- software
- equipment
- payment processing and settlement fees
- IT support
- corporate service provider fees
- hosting
- web design and development
- surety bonding
- accounting and auditing fees
- signage
- marketing
- inventory
- other services to support the industry as approved by Commerce
Prohibited uses of funds: rent, staff salaries, utility bills.
Grantees must provide evidence of a license issued by Sports Wagering Application Review Commission (SWARC) and issued by MLGCA. Grantees must submit paid invoices for reimbursement.
-
Sports Wagering Training Assistance Support Grant up to $50,000.
Reimbursable Grant of 50% of eligible training costs not to exceed $50,000. Grantee must be approved and provide evidence of a license issued by (SWARC).
Examples of Eligible Types of training:
- Rules for Sports Wagering
- Sports wagering software platforms
- Sports Wagering and Integrity Certification
- Security technology related to sports wagering
- Conference Registration fees related to the industry
- Maintaining proper financial records for sports wagering; and
- Any other training Commerce deems appropriate and related to the sports wagering industry.
Training must be completed with 12 months of Grant approval.
Grantees must provide evidence of a license issued by Sports Wagering Application Review Commission (SWARC) and issued by MLGCA. Grantees must submit paid invoices for reimbursement.
FOR MORE INFORMATION
For more information about Sports Wagering Assistance Fund, please contact:
Darla M. Garrett
Director, Finance Programs
Maryland Department of Commerce
Email: darla.garrett@maryland.gov
