Maryland lawmakers did not pass legislation to ban sweepstakes casinos before the state’s legislative session concluded this month, a respite for operators as they face ongoing regulatory headwinds nationwide.
- Maryland lawmakers failed to pass sweeps casino prohibition bills after they stalled in the Senate, giving operators a temporary reprieve.
- State officials say hundreds of operators remain active, with only about 25% complying with cease-and-desist orders.
- While Maryland pauses its ban, other states are advancing their own, underscoring growing opposition to dual-currency systems.
A pair of bills to prohibit online dual-currency casino-style games passed the Maryland House with overwhelming bipartisan support. Neither bill gained a vote in the Senate, meaning the bills could not pass after the legislature adjourned in April.
Maryland’s gaming regulators had pushed lawmakers to pass the bills, which they argued where necessary tools to counter the hundreds of unlicensed sites operating the state. The Maryland Lottery and Gaming Commission sent out dozens of cease-and-desist letters; officials estimated only around 25% of operators complied.
Sweeps-style casino advocacy groups, including the Social Gaming Leadership Alliance (SGLA), testified that their operating structure, which allows users to play for free or to purchase a separate type of currency to use for sweepstakes, was not violating Maryland law. Operators have maintained their payment structure was akin to the Monopoly Sweepstakes promotion at McDonald’s, not an illegal form of gambling.
“SGLA is pleased that neither (bill) became law in Maryland,” wrote Sean Ostrow, SGLA managing director, in a statement provided to Covers. “While efforts to stamp out illegal gambling are commendable, these two bills went far beyond illegal operators and would have penalized responsible Social Plus companies that offer strong consumer protections and contribute to the Maryland economy.
“Ultimately, our goal is to work with Maryland lawmakers and agencies to regulate Social Plus, protect consumers, and generate tax revenue, and we look forward to these productive conversations heading into the 2027 Maryland legislative session.”
The failed legislation also comes as Maryland was unable to seriously consider bills to legalize real-money online casino gaming. Maryland online casino gaming has been opposed by members of both parties who fear these games will spark gambling addiction problems, as well as some of the state’s gaming stakeholders who have argued online gaming will hurt tax revenues and cost jobs.
Nationwide sweeps opposition remains
Maryland’s failure to pass formal ban legislation was welcome news for sweeps operators. Significant opposition remains in a growing number of statehouses.
Minnesota later this month could join Maine and Indiana among states to pass sweeps bans. Minnesota’s proposal has received little push back, though, like Maryland, it could fall short before the state’s legislative session concludes.
Tennessee has also considered a sweeps casino ban.
These states could join a half-dozen that enacted bans last year. Many major sweeps casinos have already halted operations in states with bans or that have proposed them.
Policymakers have largely resisted any form of online casino gaming. While legislative efforts to prohibit dual-currency casinos have been broadly popular, pushes to legalize, regulate and tax real-money versions have gained comparatively little support. Only eight states have approved iCasinos, with only four of those (Pennsylvania, New Jersey, Michigan, and West Virginia) licensing more than four operators.
