Maryland lawmakers have taken a significant step toward restricting sweepstakes casinos, with the House approving one proposal and moving another closer to a final vote. The legislative activity reflects a broader push to address online gambling platforms that operate outside state oversight.
House Bill 295 cleared the chamber in a 105-24 vote and now heads to the Senate. The measure focuses on what it defines as “interactive games,” targeting platforms that use multiple forms of digital currency and offer rewards resembling cash or prizes. Lawmakers designed the bill to cover online or mobile games that simulate casino-style play, lottery offerings, or sports betting, while excluding games that provide only noncash rewards.
Under the proposal, individuals or companies that operate or promote such platforms could face criminal penalties. The bill outlines fines ranging from $10,000 to $100,000 and potential prison sentences of up to three years.
The legislation moved forward after a delay of more than a month following its initial hearing on February 5 before the Ways and Means Committee. That panel later advanced the bill on March 18 with changes to enforcement provisions. During floor debate, Del. Jefferson Ghrist questioned whether the measure would affect players using free-to-play options or those receiving prizes. Committee Chair Del. Jheanelle K. Wilkins responded that the bill excludes free games while focusing on those involving rewards, describing sweepstakes casinos as unlicensed gambling operations.
Separate Enforcement Measure Adds Regulatory Tools
House Bill 1226, focused on enforcement, has reached third reading but faces the March 23 crossover deadline. The bill would allow regulators to issue cease-and-desist orders, block payments and access, and pursue civil and criminal penalties against operators, promoters, and service providers involved in illegal online gambling.
The Senate is considering related legislation, including Senate Bill 652, the Maryland Illegal Online Gambling Enforcement Act. Introduced by Senators Jeffrey D. Waldstreicher and Chris West, the measure strengthens the state’s ability to target unregulated operators, including offshore platforms. The Maryland Lottery and Gaming Control Agency has endorsed SB 652, having already issued 89 cease-and-desist letters to illegal sites.
SB 652 provides precise definitions to aid enforcement, stating: “SWEEPSTAKES GAMES” MEANS A GAME, CONTEST, OR PROMOTION
23 THAT:
24 (1) UTILIZES A DUAL–CURRENCY SYSTEM OF PAYMENT ALLOWING
25 THE PLAYER TO EXCHANGE THE CURRENCY FOR ANY PRIZE, AWARD, CASH OR CASH
26 EQUIVALENTS, OR CHANCE TO WIN ANY PRIZE, AWARD, CASH OR CASH
27 EQUIVALENTS; AND
28 (2) SIMULATES ANY FORM OF GAMBLING, INCLUDING:
29 (I) CASINO–STYLE GAMES, INCLUDING SLOT MACHINES, VIDEO
30 POKER, AND TABLE GAMES SUCH AS BLACKJACK, ROULETTE, CRAPS, AND POKER;
4 SENATE BILL 652
1 (II) LOTTERY GAMES INCLUDING DRAW GAMES, INSTANT WIN
2 GAMES, KENO, AND BINGO; AND SPORTS WAGERING.”
Lawmakers continue debating whether prohibition or regulation is the better approach. Maryland joins a broader national trend: Indiana recently approved a similar ban, while California and New York have enacted laws prohibiting sweepstakes casinos. Florida has also introduced measures to address the sector, highlighting growing concern over unregulated gambling platforms in the United States.
Source:
“Maryland House Passes Sweepstakes Ban Bill, Advances Another”, gamblinginsider.com, March 23, 2026
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