Maryland Renewed Efforts to Shut Down Sweepstakes Casinos
Maryland Legislators Renew Effort to Ban Sweepstakes Casinos
Maryland lawmakers have initiated a new legislative push to eliminate online sweepstakes casinos. At the start of the 2026 session, two identical bills were introduced, aiming to clamp down on interactive gaming platforms that operate with dual-currency systems allowing players to exchange digital credits for cash or prizes.
Details of the Proposed Legislation
The bills, known as House Bill 295 and Senate Bill 112, emerged on January 14 and were assigned to separate committees for review. The coordinated introduction demonstrates a focused effort to pass these measures before the session concludes in mid-April. These proposals follow earlier unsuccessful attempts in 2025 and come at the request of Governor Wes Moore, influenced by concerns raised by the Maryland Lottery and Gaming Control Agency.
Officials have noted that many sweepstakes companies continued operating casino-like games in Maryland despite cease and desist orders, often labeling their offerings as promotional sweepstakes or social games. The new bills seek to criminalize the operation and promotion of such interactive sweepstakes platforms within the state.
If convicted under these laws, individuals or businesses could face fines ranging from $10,000 to $100,000 and imprisonment for up to three years. Additionally, the legislation tightens licensing requirements, mandating applicants and license holders to disclose any financial, technological, or business affiliations with entities involved in sweepstakes-style gaming. Regulators are granted the authority to refuse or revoke licenses based on ties to unlicensed gaming operations or high-risk sources as designated by federal or international bodies.
Maryland’s Position Within a Broader National Crackdown
This tougher regulatory approach aligns with a growing national movement to address sweepstakes casinos. In 2025, states like California and New York enacted laws banning sweepstakes casinos outright, prompting other states to reconsider their legal frameworks. States such as Tennessee and Louisiana have also aggressively enforced related laws, with official opinions characterizing these platforms as illegal gambling.
Maryland officials share this perspective, viewing the dual-currency model common to sweepstakes sites as equivalent to gambling. They emphasize that these platforms involve paying money, involve chance, and offer the potential for valuable prizes, meeting the legal definition of gambling.
Industry Response and Future Outlook
The sweepstakes industry and advocacy groups have opposed the new legislation, warning lawmakers that vague language could inadvertently impact legitimate promotional campaigns by non-gambling businesses. Some companies have attempted to rebrand their services under terms like “Social Plus,” emphasizing consumer protections and advocating for regulation over prohibition.
Despite these arguments, the simultaneous progression of two bills and increased support from state officials suggests Maryland is poised to adopt a firmer stance against the emerging gray-market sweepstakes casino industry that has expanded significantly in recent years.
