Maryland lawmakers have revived legislation that would prohibit online sweepstakes casinos, reintroducing proposals that stalled during the previous legislative session. The measures would expand the state’s authority to act against unregulated online gaming while adding criminal penalties and stricter licensing requirements tied to sweepstakes-style operations.
Senate Bill 112 has been prefiled and assigned to the Senate Budget and Taxation Committee, while its companion,House Bill 295, is before the House Ways and Means Committee. Both measures were introduced at the request of the Maryland Lottery and Gaming Control Agency ahead of the 2026 session, which begins Jan. 14. The bills carry the title “Gaming — Prohibition on Interactive Games and Revenue From Illegal Markets.”
Definition Of Prohibited Interactive Games
SB 112 establishes a ban on certain “interactive games,” defined as online contests, games, or promotions 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 simulate casino-style gaming, lottery games, or sports wagering. The scope includes slots, table games, video poker, online sports betting, and lottery platforms that rely on dual-currency payment structures.
The definition directly aligns with the operating model used by sweepstakes casinos, which sell one virtual currency while awarding another that can be redeemed. The legislation includes a limited exception for games that “solely award noncash prizes,” excluding sweepstakes platforms that allow cash redemptions.
Penalties And Expanded Regulator Authority
The bills make it illegal to operate, conduct, or promote interactive games in Maryland. Anyone who “operate[s], conduct[s], or promote[s] an interactive game in the State” would face “imprisonment not exceeding 3 years or a fine not less than $10,000 and not exceeding $100,000 or both.”
Regulators would also gain broader authority over licensing. The Maryland Lottery and Gaming Control Commission could deny or revoke licenses for violations or for failing to disclose business ties to sweepstakes activity. Applicants and licensees must report relationships with entities such as “a financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate that is known to support, operate, conduct, or promote an interactive game in the State.” Failure to disclose allows regulators to “deny the person’s license application or revoke a license held by the person.”
Revenue Restrictions And Prior Enforcement
The legislation further targets revenue sources connected to illegal markets. Licenses could be denied if applicants or affiliates accept revenue derived from online casino gaming in jurisdictions where such activity is prohibited, or from jurisdictions considered high risk. Violations of these provisions carry misdemeanor penalties, including possible prison terms and fines of up to $5,000.
The renewed effort follows enforcement actions taken last year. In January, the Maryland Lottery and Gaming Control Agency sent 11 cease-and-desist letters to unlicensed operators. Six companies responded—Fortune Coins, Golden Hearts Games, McLuck Casino, Zula Casino, Stake.US and Rebet—yet all 11 continued serving Maryland customers.
The proposals place Maryland among several states considering sweepstakes casino bans in 2026. Whether SB 112 and HB 295 advance will depend on upcoming committee hearings, following multiple unsuccessful attempts in 2025.
Source:
“Maryland to consider two bills that aim to ban sweepstakes casinos”, sbcamericas.com, January 13, 2026
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