Maryland lawmakers ended their latest legislative session without approving a prohibition on sweepstakes platforms, leaving operators active in the state as regulatory efforts continue elsewhere.
Despite earlier momentum in the House, the proposal failed to receive a Senate vote before adjournment in April, halting what had been a broader push to restrict dual-currency gaming systems. The outcome extends uncertainty over how Maryland will approach unlicensed online gambling operations.
Legislative Stall On Sweepstakes Ban
Two bills targeting online dual-currency casino-style games passed the Maryland House with strong bipartisan support, including a 105-24 vote on House Bill 295. The measures defined “interactive games” as online products simulating casino, lottery, or sports wagering formats using multiple digital currencies tied to prizes. They included fines from $10,000 to $100,000 and possible prison sentences of up to three years.
After committee changes in March, both proposals stalled in the Senate and failed to reach a final vote before adjournment. Gaming regulators had backed the legislation, citing concerns over widespread unlicensed activity.
The Maryland Lottery and Gaming Control Commission issued numerous cease-and-desist orders, though officials estimated only about 25% of targeted operators complied. One of the measures advanced after more than a month of delay following its initial hearing.
Enforcement Debate And Operator Response
Regulators estimate hundreds of sweepstakes-style operators remain active in Maryland, with compliance to cease-and-desist orders limited to roughly a quarter of cases.
Industry groups opposed the legislation, arguing their models allow free participation alongside optional purchases of alternative currency used for sweepstakes entries, which they say differs from illegal gambling under state law. They compared the structure to promotional sweepstakes used by retailers.
“SGLA is pleased that neither (bill) became law in Maryland,” wrote Sean Ostrow, SGLA managing director in a statement.
He said the proposals extended beyond illegal operators and would have affected companies that maintain consumer safeguards and contribute economically, while expressing interest in continued discussions on regulation and taxation ahead of the 2027 session.
Wider Gambling Policy Shifts Across Maryland
The failed ban coincides with broader gambling policy activity. Lawmakers advanced sports betting legislation restricting credit card deposits, requiring user-set deposit limits enforced by operators, and limiting certain college prop wagers while expanding responsible gaming rules.
Separately, proposals would authorize online casino gaming under a regulated framework covering slots, table games, and bingo. Another measure establishes online poker licensing with potential multistate agreements and revenue-sharing rules, while a referendum proposal would let voters decide on online gambling expansion in 2026.
Some casino stakeholders and lawmakers have also raised concerns about tax impacts and employment effects from online gaming expansion.
Maryland’s debate mirrors wider national trends. Several states, including Minnesota, Indiana, and Maine, have pursued or passed sweepstakes restrictions, while multiple jurisdictions enacted bans in the prior year. However, regulated online casino markets remain limited across the country.
Source:
“Maryland Fails to Pass Sweeps Casino Ban as Session Ends”, finance.yahoo.com, April 20, 2026
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