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Maryland Alcohol, Tobacco, and Cannabis Commission

Alcohol Licensing, Regulation, and Compliance

Maryland’s alcohol industry operates under a structured system designed to ensure fairness, transparency, and public safety.

ATCC licenses, regulates, and enforces alcohol laws at the state level, working with local liquor boards that issue local licenses and approvals.

How the system works

Alcohol businesses must operate within a structured three-tier system. Understanding your role helps ensure compliance and avoid violations.

Who regulates alcohol?

Alcohol regulation in Maryland is shared across state and local agencies.

  • ATCC: Licensing, regulation, and enforcement
  • Local Liquor Boards: Issue local licenses and approvals
  • Comptroller: Collects alcohol taxes 

The three-tier system

The alcohol industry is structured into three tiers. Each tier has a distinct role and must operate separately.

Tier 1: manufacturers

Distilleries, Breweries, Wineries

What they do:

  • Produce alcohol products
  • Sell to licensed wholesalers

What to know:

  • Cannot sell directly to retailers or consumers without proper licensing

Tier 2: wholesalers

What they do:

  • Purchase alcohol from manufacturers
  • Distribute to licensed retailers across Maryland

What to know:

  • Must follow all regulatory and tax requirements

Tier 3: retailers

Bars, Restaurants, Liquor Stores

What they do:

  • Sell alcohol directly to consumers

What to know:

  • Must purchase from licensed wholesalers
  • Must follow state and local laws, including age restrictions 

What this means for businesses

To operate legally in Maryland, businesses must:

  • Obtain the required licenses
  • Operate within their designated tier
  • Follow state and local laws
  • Pay all applicable taxes

Compliance and enforcement

[VIDEO PROMO - Clip from 3-tier series webinar about compliance]

ATCC’s Field Enforcement Division conducts inspections and compliance checks across Maryland to ensure alcohol laws are followed and businesses operate safely.

During an inspection, officers may:

  • Review records and business practices
  • Verify compliance with the three-tier system
  • Answer questions and provide guidance

ATCC takes a compliance-first approach and works with businesses to help them meet requirements. If violations are found, enforcement actions may include citations or referrals to local liquor boards.

Learn more about enforcement and what to expect.

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