Page 1 80 Calvert Street i P.O. Box 466,

							Peter Franchot Comptroller

June 11, 2008

Dear Retail Alcohol Licensee: One of the responsibilities of my office is the regulation and enforcement of certain alcohol laws in the state of Maryland. Annually, thousands of licensed alcohol premises are inspected by my staff and determined to be operating lawfully. However, there is a growing issue of illegal gaming in licensed alcohol establishments, and my office is taking aggressive steps to address it. As you know, in obtaining or renewing your liquor license you agree to certain requirements in accordance with Article 2B Section 10-103 (b). In one requirement specifically, you must affirm, under penalty of perjury, that you have not been adjudged guilty of violating the laws governing the sale of alcoholic beverages or for the prevention of gambling in the State of Maryland. This letter is to serve notice that inspectors and agents of the Comptroller’s Office will be aggressively conducting inspections of licensed facilities. These inspectors and agents have been instructed to look for indications of illegal gaming in addition to any alcohol violations using Maryland Criminal Law as a guide. Maryland Criminal Law, Section 12-302 (a), states very simply that a person may not locate, possess, keep, or operate a slot machine in the State as an owner, lessor, lessee, licensor, licensee, or in any other capacity. Maryland case law, as determined by the State of Maryland v. One Hundred and Fifty-Eight Gaming Devices, broadens the definition of slot machines to include other devices such as video poker machines. As provided in Article 2B, Section 16-405, any evidence discovered during an inspection of your licensed establishment that indicates a violation of Article 2B or any other article shall be admissible in any prosecution or in any hearing for revocation, suspension or restriction of your alcohol license. It is our intention to fully investigate and report any violations, especially concerning illegal gaming, to local law enforcement, the state’s attorney, and the liquor board regulating your license which could lead to criminal prosecution and/or a suspension, revocation, or restriction of your license and/or a fine. Additionally, gaming violations may subject you to an in depth audit and assessment conducted by the Compliance Division of the Comptroller’s Office coupled with penalties and interest. The Comptroller’s office expects that licensed alcoholic beverage providers will abide by all laws and regulations of Maryland, and we look forward to continuing a mutually respectful and supportive relationship with licensees throughout the State. Sincerely,

Comptroller
80 Calvert StreetiP.O. Box 466, Annapolis, Maryland 21404-0466i410-260-7801i1-800-552-3947 (MD) Fax: 410-974-3808iMaryland Relay 711iTTY 410-260-7157ipfranchot@comp.state.md.us