Maryland Lawmakers Advance Sweepstakes Casino Ban

Maryland lawmakers have taken significant steps toward restricting sweepstakes casinos, advancing multiple legislative efforts aimed at tightening oversight of online gambling platforms. One proposal has already cleared the House of Representatives, while another measure is nearing a crucial legislative deadline.

House Advances Bill Targeting Online Gaming Models

House Bill 295 passed the Maryland House with a 105-24 vote, moving the proposal to the Senate for further consideration. The legislation focuses on so-called “interactive games,” defining them as platforms that operate with multiple forms of currency and allow users to exchange those currencies for prizes or cash equivalents.

The bill specifies that such games include those that “utilizes multiple currency systems of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents” and “simulates casino-style gaming… lottery games… or sports wagering.” Games that only offer noncash rewards would not fall under the ban.

Lawmakers designed the measure to apply broadly to individuals or companies involved in running or promoting these platforms. Violations could result in criminal penalties, including fines ranging from $10,000 to $100,000 and prison sentences of up to three years.

The proposal moved forward after a period of inactivity following its initial February 5 hearing before the Ways and Means Committee. Supporters argued that sweepstakes casinos operate outside current legal frameworks and present enforcement challenges. Industry voices countered that their operations comply with existing laws and should be regulated rather than prohibited.

Lawmakers clarified that the measure excludes purely free games and instead focuses on platforms offering rewards tied to gameplay.

Enforcement Bill Faces Deadline Pressure

A separate proposal, House Bill 1226, is also progressing through the legislature. The House approved it on March 23 with a 134-2 vote, pushing it toward the next stage. This bill emphasizes enforcement rather than definitions, targeting those who facilitate illegal online gambling activities.

If enacted, it would grant regulators expanded authority to issue cease-and-desist orders, restrict payment processing, and block access to prohibited platforms. It also allows for both civil and criminal penalties against operators and service providers involved in such activities.

However, the measure faces a timing challenge tied to Maryland’s legislative calendar. To remain viable, it must advance before the crossover deadline, which determines whether bills can move between chambers during the session.

Senate Considers Broader Crackdown Efforts

In parallel, Senate Bill 652 outlines another approach to combating sweepstakes casinos and similar platforms. Introduced in early February, the proposal seeks to strengthen enforcement by providing clear definitions for illegal gambling operations and granting additional authority to the Attorney General’s office.

The bill has received backing from the state’s gaming regulator, which has already issued dozens of cease-and-desist notices to unregulated operators. Supporters argue that the legislation would enhance the state’s ability to act against offshore and dual-currency platforms.

Maryland’s actions reflect a broader national trend, as several states have recently moved to prohibit or regulate sweepstakes casinos. Lawmakers across the country continue to debate whether stricter bans or regulatory frameworks offer the most effective response to the growing sector.

Source:

“Maryland House Passes Sweepstakes Ban Bill, Advances Another”, gamblinginsider.com, March 23, 2026